SFC - Interim / Quarterly Report 2020

Stock code: 1227

Standard Foods Corporation and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2020 and 2019 and Independent Auditors' Report

Address: 5F., No. 136, Sec. 3, Renai Rd., Daan Dist., Taipei City 106, Taiwan (R.O.C.) Tel: (02)27092323

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the period ended June 30, 2020 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standards No. 10, “Consolidated Financial Statements.” Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we have not prepared a separate set of consolidated financial statements of affiliates.

Very truly yours,

STANDARD FOODS CORPORATION

TER-FUNG TSAO

Chairman

August 7, 2020

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders Standard Foods Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Standard Foods Corporation and its subsidiaries (the “Group”) as of June 30, 2020 and 2019 and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six-month periods then ended, and related notes, including a summary of significant accounting policies "(collectively referred to as the consolidated financial statements)". Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issues into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As disclosed in Note 14 to the consolidated financial statements, the financial statements of nonsignificant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2020 and 2019, combined total assets of these nonsignificant subsidiaries were NT$7,552,648 thousand and NT$7,673,604 thousand, respectively, representing 30% and 33%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$2,302,312 thousand NT$2,580,695

thousand, respectively, representing 24% and 31%, respectively, of the consolidated total liabilities; for the six months ended June 30, 2020 and 2019 and for the six months ended June 30, 2020 and 2019, the amounts of combined comprehensive income of these subsidiaries were NT$157,013 thousand, NT$137,571 thousand, NT$151,428 thousand and NT$296,743 thousand, respectively, representing 17%, 26%, 11% and 20%, respectively, of the consolidated total comprehensive income. As disclosed in Note 37 to the consolidated financial statements, the information on these subsidiaries were not reviewed.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the financial position of the Group as at June 30, 2020 and 2019, and of its consolidated financial performance and its consolidated cash flows for the six-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issues into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are TzaLi Gung and Chih-Yuan Chen.

Deloitte & Touche Taipei, Taiwan Republic of China August 7, 2020

Notice to Readers

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

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

Standard Foods Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS

June 30, 2020, December 31, 2019 and June 30, 2019

Code 1100 1110 1120 1136 1150 1172 1180 1197 1200 1220 130X 1410 1470 11XX 1510 1517 1600 1755 1760 1805 1821 1840 194D 1975 1990 15XX 1XXX Code 2100 2110 2130 2150 2170 2180 2200 2230 2280 2320 2399 21XX 2540 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	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 25) Trade receivables (Notes 10 and 25) Trade receivables from related parties (Notes 33) Finance lease receivables - current (Note 11) Other receivables (Note 10) Current tax assets Inventories (Note 12) Prepayments (Note 13) Other current assets (Notes 19 and 34) 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) Property, plant and equipment (Notes 15 and 34) Right-of-use assets (Note 16) Investment properties (Notes 17 and 34) Goodwill Other intangible assets (Note 18) Deferred tax assets Finance lease receivables - non-current (Note 11) Net defined benefit assets - non-current Other non-current assets (Notes 19 and 34) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 20 and 34) Short-term bills payable (Note 20) Contract liabilities - current (Note 25) Notes payable (Note 21) Trade payables (Note 21) Trade payables to related parties (Note 33) Other payables (Note 22) Current tax liabilities Lease liabilities - current (Note 16) Current portion of long-term borrowings (Notes 20 and 34) Other current liabilities (Note 22) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 20 and 34) Deferred tax liabilities Lease liabilities - non-current (Note 16) Net defined benefit liabilities - non-current Other non-current liabilities (Note 22) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS (Note 24) Total equity TOTAL		June 30, 2020 (Reviewed) Amount % $ 3,603,366 14 1,513,865 6 178,498 1 2,446,729 10 14,236 - 4,738,744 19 1,648 - 2,845 - 233,256 1 68,967 - 4,304,955 17 1,421,688 6 25,958 - 18,554,755 74 6,200 - 182,903 1 4,913,412 19 647,494 3 120,848 - 817 - 98,539 - 504,064 2 25,508 - 2,495 - 263,857 1 6,766,137 26 $ 25,320,892 100 $ 1,009,811 4 69,924 - 224,495 1 292,901 1 1,535,080 7 12,859 - 4,911,813 19 444,394 2 80,322 - - - 34,067 - 8,615,666 34 - - 297,694 1 219,173 1 261,795 1 29,084 - 807,746 3 9,423,412 37 9,150,897 36 109,718 1 3,287,022 13 577,494 2 3,312,356 13 7,176,872 28 777,122) ( 3) 21,182) - 15,639,183 62 258,297 1 15,897,480 63 $ 25,320,892 100		(In Thousands of New Taiwan Dollars) December 31, 2019 (Audited) June 30, 2019 (Reviewed) Amount % Amount % $ 3,705,903 15 $ 3,544,639 15 667,673 3 1,254,749 5 186,711 1 168,201 1 2,206,805 9 1,695,434 7 2,977 - 10,387 - 6,439,550 25 4,726,448 20 - - - - 2,775 - 2,707 - 193,083 1 183,963 1 46,114 - 12,600 - 3,646,984 14 3,505,117 15 1,385,226 5 1,347,771 6 29,384 - 17,265 - 18,513,185 73 16,469,281 70 7,575 - 7,664 - 189,695 1 178,251 1 5,125,312 20 5,363,516 23 699,679 3 537,889 2 122,492 - 129,024 1 818 - 817 - 67,269 - 72,690 - 473,398 2 381,026 2 26,948 - 28,353 - 919 - 3,932 - 260,975 1 266,112 1 6,975,080 27 6,969,274 30 $ 25,488,265 100 $ 23,438,555 100 $ 1,382,955 6 $ 1,078,485 5 99,968 1 99,912 - 326,644 1 148,560 1 316,444 1 217,386 1 2,014,619 8 1,186,920 5 26,141 - 9,194 - 2,850,674 11 4,428,040 19 547,018 2 395,590 2 83,119 - 89,441 - 6,000 - 12,000 - 28,501 - 40,637 - 7,682,083 30 7,706,165 33 - - 6,000 - 268,813 1 132,778 1 264,496 1 64,065 - 299,204 2 266,160 1 22,978 - 22,650 - 855,491 4 491,653 2 8,537,574 34 8,197,818 35 9,150,897 36 9,150,897 39 109,718 - 93,045 - 2,945,412 11 2,945,412 13 330,945 1 330,945 1 4,739,831 19 2,750,825 12 8,016,188 31 6,027,182 26 577,494) ( 2) ( 250,962) ( 1) 21,182) - ( 21,182) - 16,678,127 65 14,998,980 64 272,564 1 241,757 1 16,950,691 66 15,240,737 65 $ 25,488,265 100 $ 23,438,555 100	(In Thousands of New Taiwan Dollars) December 31, 2019 (Audited) June 30, 2019 (Reviewed) Amount % Amount % $ 3,705,903 15 $ 3,544,639 15 667,673 3 1,254,749 5 186,711 1 168,201 1 2,206,805 9 1,695,434 7 2,977 - 10,387 - 6,439,550 25 4,726,448 20 - - - - 2,775 - 2,707 - 193,083 1 183,963 1 46,114 - 12,600 - 3,646,984 14 3,505,117 15 1,385,226 5 1,347,771 6 29,384 - 17,265 - 18,513,185 73 16,469,281 70 7,575 - 7,664 - 189,695 1 178,251 1 5,125,312 20 5,363,516 23 699,679 3 537,889 2 122,492 - 129,024 1 818 - 817 - 67,269 - 72,690 - 473,398 2 381,026 2 26,948 - 28,353 - 919 - 3,932 - 260,975 1 266,112 1 6,975,080 27 6,969,274 30 $ 25,488,265 100 $ 23,438,555 100 $ 1,382,955 6 $ 1,078,485 5 99,968 1 99,912 - 326,644 1 148,560 1 316,444 1 217,386 1 2,014,619 8 1,186,920 5 26,141 - 9,194 - 2,850,674 11 4,428,040 19 547,018 2 395,590 2 83,119 - 89,441 - 6,000 - 12,000 - 28,501 - 40,637 - 7,682,083 30 7,706,165 33 - - 6,000 - 268,813 1 132,778 1 264,496 1 64,065 - 299,204 2 266,160 1 22,978 - 22,650 - 855,491 4 491,653 2 8,537,574 34 8,197,818 35 9,150,897 36 9,150,897 39 109,718 - 93,045 - 2,945,412 11 2,945,412 13 330,945 1 330,945 1 4,739,831 19 2,750,825 12 8,016,188 31 6,027,182 26 577,494) ( 2) ( 250,962) ( 1) 21,182) - ( 21,182) - 16,678,127 65 14,998,980 64 272,564 1 241,757 1 16,950,691 66 15,240,737 65 $ 25,488,265 100 $ 23,438,555 100	(In Thousands of New Taiwan Dollars) December 31, 2019 (Audited) June 30, 2019 (Reviewed) Amount % Amount % $ 3,705,903 15 $ 3,544,639 15 667,673 3 1,254,749 5 186,711 1 168,201 1 2,206,805 9 1,695,434 7 2,977 - 10,387 - 6,439,550 25 4,726,448 20 - - - - 2,775 - 2,707 - 193,083 1 183,963 1 46,114 - 12,600 - 3,646,984 14 3,505,117 15 1,385,226 5 1,347,771 6 29,384 - 17,265 - 18,513,185 73 16,469,281 70 7,575 - 7,664 - 189,695 1 178,251 1 5,125,312 20 5,363,516 23 699,679 3 537,889 2 122,492 - 129,024 1 818 - 817 - 67,269 - 72,690 - 473,398 2 381,026 2 26,948 - 28,353 - 919 - 3,932 - 260,975 1 266,112 1 6,975,080 27 6,969,274 30 $ 25,488,265 100 $ 23,438,555 100 $ 1,382,955 6 $ 1,078,485 5 99,968 1 99,912 - 326,644 1 148,560 1 316,444 1 217,386 1 2,014,619 8 1,186,920 5 26,141 - 9,194 - 2,850,674 11 4,428,040 19 547,018 2 395,590 2 83,119 - 89,441 - 6,000 - 12,000 - 28,501 - 40,637 - 7,682,083 30 7,706,165 33 - - 6,000 - 268,813 1 132,778 1 264,496 1 64,065 - 299,204 2 266,160 1 22,978 - 22,650 - 855,491 4 491,653 2 8,537,574 34 8,197,818 35 9,150,897 36 9,150,897 39 109,718 - 93,045 - 2,945,412 11 2,945,412 13 330,945 1 330,945 1 4,739,831 19 2,750,825 12 8,016,188 31 6,027,182 26 577,494) ( 2) ( 250,962) ( 1) 21,182) - ( 21,182) - 16,678,127 65 14,998,980 64 272,564 1 241,757 1 16,950,691 66 15,240,737 65 $ 25,488,265 100 $ 23,438,555 100	(In Thousands of New Taiwan Dollars) December 31, 2019 (Audited) June 30, 2019 (Reviewed) Amount % Amount % $ 3,705,903 15 $ 3,544,639 15 667,673 3 1,254,749 5 186,711 1 168,201 1 2,206,805 9 1,695,434 7 2,977 - 10,387 - 6,439,550 25 4,726,448 20 - - - - 2,775 - 2,707 - 193,083 1 183,963 1 46,114 - 12,600 - 3,646,984 14 3,505,117 15 1,385,226 5 1,347,771 6 29,384 - 17,265 - 18,513,185 73 16,469,281 70 7,575 - 7,664 - 189,695 1 178,251 1 5,125,312 20 5,363,516 23 699,679 3 537,889 2 122,492 - 129,024 1 818 - 817 - 67,269 - 72,690 - 473,398 2 381,026 2 26,948 - 28,353 - 919 - 3,932 - 260,975 1 266,112 1 6,975,080 27 6,969,274 30 $ 25,488,265 100 $ 23,438,555 100 $ 1,382,955 6 $ 1,078,485 5 99,968 1 99,912 - 326,644 1 148,560 1 316,444 1 217,386 1 2,014,619 8 1,186,920 5 26,141 - 9,194 - 2,850,674 11 4,428,040 19 547,018 2 395,590 2 83,119 - 89,441 - 6,000 - 12,000 - 28,501 - 40,637 - 7,682,083 30 7,706,165 33 - - 6,000 - 268,813 1 132,778 1 264,496 1 64,065 - 299,204 2 266,160 1 22,978 - 22,650 - 855,491 4 491,653 2 8,537,574 34 8,197,818 35 9,150,897 36 9,150,897 39 109,718 - 93,045 - 2,945,412 11 2,945,412 13 330,945 1 330,945 1 4,739,831 19 2,750,825 12 8,016,188 31 6,027,182 26 577,494) ( 2) ( 250,962) ( 1) 21,182) - ( 21,182) - 16,678,127 65 14,998,980 64 272,564 1 241,757 1 16,950,691 66 15,240,737 65 $ 25,488,265 100 $ 23,438,555 100
			Amount $ 3,603,366 1,513,865 178,498 2,446,729 14,236 4,738,744 1,648 2,845 233,256 68,967 4,304,955 1,421,688 25,958 18,554,755 6,200 182,903 4,913,412 647,494 120,848 817 98,539 504,064 25,508 2,495 263,857 6,766,137 $ 25,320,892 $ 1,009,811 69,924 224,495 292,901 1,535,080 12,859 4,911,813 444,394 80,322 - 34,067 8,615,666 - 297,694 219,173 261,795 29,084 807,746 9,423,412 9,150,897 109,718 3,287,022 577,494 3,312,356 7,176,872 777,122) 21,182) 15,639,183 258,297 15,897,480 $ 25,320,892		Amount $ 3,705,903 667,673 186,711 2,206,805 2,977 6,439,550 - 2,775 193,083 46,114 3,646,984 1,385,226 29,384 18,513,185 7,575 189,695 5,125,312 699,679 122,492 818 67,269 473,398 26,948 919 260,975 6,975,080 $ 25,488,265 $ 1,382,955 99,968 326,644 316,444 2,014,619 26,141 2,850,674 547,018 83,119 6,000 28,501 7,682,083 - 268,813 264,496 299,204 22,978 855,491 8,537,574 9,150,897 109,718 2,945,412 330,945 4,739,831 8,016,188 577,494) 21,182) 16,678,127 272,564 16,950,691 $ 25,488,265		Amount $ 3,544,639 1,254,749 168,201 1,695,434 10,387 4,726,448 - 2,707 183,963 12,600 3,505,117 1,347,771 17,265 16,469,281 7,664 178,251 5,363,516 537,889 129,024 817 72,690 381,026 28,353 3,932 266,112 6,969,274 $ 23,438,555 $ 1,078,485 99,912 148,560 217,386 1,186,920 9,194 4,428,040 395,590 89,441 12,000 40,637 7,706,165 6,000 132,778 64,065 266,160 22,650 491,653 8,197,818 9,150,897 93,045 2,945,412 330,945 2,750,825 6,027,182 250,962) 21,182) 14,998,980 241,757 15,240,737 $ 23,438,555	%
		( (		( (		( (		15 5 1 7 - 20 - - 1 - 15 6 - 70 - 1 23 2 1 - - 2 - - 1 30 100 5 - 1 1 5 - 19 2 - - - 33 - 1 - 1 - 2 35 39 - 13 1 12 26 ( 1) - 64 1 65 100

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

Standard Foods Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three-Month and Six-Month Periods Ended June 30, 2020 and 2019

(Reviewed, not Audited)

Code OPERATING REVENUE 4110 Sales (Note 25 and 33) OPERATING COSTS 5110 Cost of goods sold (Notes 12, 26 and 33) 5900 GROSS PROFIT OPERATING EXPENSES (Note 23 and 26) 6100 Selling and marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit loss 6000 Total operating expenses 6900 OPERATING INCOME NON-OPERATING INCOME AND EXPENSES (Note 26) 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 PROFIT BEFORE INCOME TAX 7950 INCOME TAX EXPENSE (Note 27) 8200 NET PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME (LOSS) 8310 Items that will not be reclassified subsequently to profit or loss: 8316 Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 27) 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translating the financial statements of foreign operations 8399 Income tax relating to the items that may be reclassified subsequently to profit or loss (Note 27) 8300 Other comprehensive loss for the period, net of income tax 8500 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET PROFIT ATTRIBUTABLE TO: 8610 Owners of the Company 8620 Non-controlling interests 8600 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: 8710 Owners of the Company 8720 Non-controlling interests 8700 EARNINGS PER SHARE (Note 28) 9710 Basic 9810 Diluted	For the Three-Month Period Ended June 30, 2020 Amount % $ 7,952,636 100 5,486,827 69 2,465,809 31 935,439 12 248,881 3 36,914 - 818 - 1,222,052 15 1,243,757 16 34,141 - 14,716 - 31,739 - ( 16,509) - 64,087 - 1,307,844 16 322,264 4 985,580 12 69,330 1 1 - 69,331 1 ( 170,073 ) ( 2 ) 33,836 - ( 136,237) ( 2) ( 66,906) ( 1) $ 918,674 11 $ 976,185 12 9,395 - $ 985,580 12 $ 895,140 11 23,534 - $ 918,674 11 $ 1.07 $ 1.07	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three-Month Period Ended June 30, 2019 For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 Amount % Amount % Amount % $ 6,070,454 100 $ 14,624,069 100 $ 13,407,620 100 4,218,210 69 10,262,762 70 9,319,511 69 1,852,244 31 4,361,307 30 4,088,109 31 810,359 13 1,797,812 13 1,723,714 13 250,780 4 500,808 3 520,851 4 36,655 1 71,746 - 72,266 1 30,013 1 8,104 - 33,750 - 1,127,807 19 2,378,470 16 2,350,581 18 724,437 12 1,982,837 14 1,737,528 13 12,935 - 66,946 - 31,921 - 6,699 - 22,241 - 11,564 - 43,708 1 34,445 - 48,855 - ( 10,835) - ( 31,317) - ( 21,402) - 52,507 1 92,315 - 70,938 - 776,944 13 2,075,152 14 1,808,466 13 159,944 3 482,085 3 393,202 3 617,000 10 1,593,067 11 1,415,264 10 ( 3,586 ) - ( 14,969 ) - 24,739 - ( 4) - ( 3) - 4 - ( 3,590) - ( 14,972) - 24,743 - ( 106,493 ) ( 2 ) ( 227,686 ) ( 1 ) 81,605 1 21,195 1 45,299 - ( 16,246) - ( 85,298) ( 1) ( 182,387) ( 1) 65,359 1 ( 88,888) ( 1) ( 197,359) ( 1) 90,102 1 $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 611,146 10 $ 1,585,671 11 $ 1,399,795 10 5,854 - 7,396 - 15,469 - $ 617,000 10 $ 1,593,067 11 $ 1,415,264 10 $ 522,120 9 $ 1,386,043 10 $ 1,479,778 11 5,992 - 9,665 - 25,588 - $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 0.67 $ 1.75 $ 1.54 $ 0.67 $ 1.74 $ 1.54	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three-Month Period Ended June 30, 2019 For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 Amount % Amount % Amount % $ 6,070,454 100 $ 14,624,069 100 $ 13,407,620 100 4,218,210 69 10,262,762 70 9,319,511 69 1,852,244 31 4,361,307 30 4,088,109 31 810,359 13 1,797,812 13 1,723,714 13 250,780 4 500,808 3 520,851 4 36,655 1 71,746 - 72,266 1 30,013 1 8,104 - 33,750 - 1,127,807 19 2,378,470 16 2,350,581 18 724,437 12 1,982,837 14 1,737,528 13 12,935 - 66,946 - 31,921 - 6,699 - 22,241 - 11,564 - 43,708 1 34,445 - 48,855 - ( 10,835) - ( 31,317) - ( 21,402) - 52,507 1 92,315 - 70,938 - 776,944 13 2,075,152 14 1,808,466 13 159,944 3 482,085 3 393,202 3 617,000 10 1,593,067 11 1,415,264 10 ( 3,586 ) - ( 14,969 ) - 24,739 - ( 4) - ( 3) - 4 - ( 3,590) - ( 14,972) - 24,743 - ( 106,493 ) ( 2 ) ( 227,686 ) ( 1 ) 81,605 1 21,195 1 45,299 - ( 16,246) - ( 85,298) ( 1) ( 182,387) ( 1) 65,359 1 ( 88,888) ( 1) ( 197,359) ( 1) 90,102 1 $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 611,146 10 $ 1,585,671 11 $ 1,399,795 10 5,854 - 7,396 - 15,469 - $ 617,000 10 $ 1,593,067 11 $ 1,415,264 10 $ 522,120 9 $ 1,386,043 10 $ 1,479,778 11 5,992 - 9,665 - 25,588 - $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 0.67 $ 1.75 $ 1.54 $ 0.67 $ 1.74 $ 1.54	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three-Month Period Ended June 30, 2019 For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 Amount % Amount % Amount % $ 6,070,454 100 $ 14,624,069 100 $ 13,407,620 100 4,218,210 69 10,262,762 70 9,319,511 69 1,852,244 31 4,361,307 30 4,088,109 31 810,359 13 1,797,812 13 1,723,714 13 250,780 4 500,808 3 520,851 4 36,655 1 71,746 - 72,266 1 30,013 1 8,104 - 33,750 - 1,127,807 19 2,378,470 16 2,350,581 18 724,437 12 1,982,837 14 1,737,528 13 12,935 - 66,946 - 31,921 - 6,699 - 22,241 - 11,564 - 43,708 1 34,445 - 48,855 - ( 10,835) - ( 31,317) - ( 21,402) - 52,507 1 92,315 - 70,938 - 776,944 13 2,075,152 14 1,808,466 13 159,944 3 482,085 3 393,202 3 617,000 10 1,593,067 11 1,415,264 10 ( 3,586 ) - ( 14,969 ) - 24,739 - ( 4) - ( 3) - 4 - ( 3,590) - ( 14,972) - 24,743 - ( 106,493 ) ( 2 ) ( 227,686 ) ( 1 ) 81,605 1 21,195 1 45,299 - ( 16,246) - ( 85,298) ( 1) ( 182,387) ( 1) 65,359 1 ( 88,888) ( 1) ( 197,359) ( 1) 90,102 1 $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 611,146 10 $ 1,585,671 11 $ 1,399,795 10 5,854 - 7,396 - 15,469 - $ 617,000 10 $ 1,593,067 11 $ 1,415,264 10 $ 522,120 9 $ 1,386,043 10 $ 1,479,778 11 5,992 - 9,665 - 25,588 - $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 0.67 $ 1.75 $ 1.54 $ 0.67 $ 1.74 $ 1.54	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three-Month Period Ended June 30, 2019 For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 Amount % Amount % Amount % $ 6,070,454 100 $ 14,624,069 100 $ 13,407,620 100 4,218,210 69 10,262,762 70 9,319,511 69 1,852,244 31 4,361,307 30 4,088,109 31 810,359 13 1,797,812 13 1,723,714 13 250,780 4 500,808 3 520,851 4 36,655 1 71,746 - 72,266 1 30,013 1 8,104 - 33,750 - 1,127,807 19 2,378,470 16 2,350,581 18 724,437 12 1,982,837 14 1,737,528 13 12,935 - 66,946 - 31,921 - 6,699 - 22,241 - 11,564 - 43,708 1 34,445 - 48,855 - ( 10,835) - ( 31,317) - ( 21,402) - 52,507 1 92,315 - 70,938 - 776,944 13 2,075,152 14 1,808,466 13 159,944 3 482,085 3 393,202 3 617,000 10 1,593,067 11 1,415,264 10 ( 3,586 ) - ( 14,969 ) - 24,739 - ( 4) - ( 3) - 4 - ( 3,590) - ( 14,972) - 24,743 - ( 106,493 ) ( 2 ) ( 227,686 ) ( 1 ) 81,605 1 21,195 1 45,299 - ( 16,246) - ( 85,298) ( 1) ( 182,387) ( 1) 65,359 1 ( 88,888) ( 1) ( 197,359) ( 1) 90,102 1 $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 611,146 10 $ 1,585,671 11 $ 1,399,795 10 5,854 - 7,396 - 15,469 - $ 617,000 10 $ 1,593,067 11 $ 1,415,264 10 $ 522,120 9 $ 1,386,043 10 $ 1,479,778 11 5,992 - 9,665 - 25,588 - $ 528,112 9 $ 1,395,708 10 $ 1,505,366 11 $ 0.67 $ 1.75 $ 1.54 $ 0.67 $ 1.74 $ 1.54
				Amount $ 13,407,620 9,319,511 4,088,109 1,723,714 520,851 72,266 33,750 2,350,581 1,737,528 31,921 11,564 48,855 21,402) 70,938 1,808,466 393,202 1,415,264 24,739 4 24,743 81,605 16,246) 65,359 90,102 $ 1,505,366 $ 1,399,795 15,469 $ 1,415,264 $ 1,479,778 25,588 $ 1,505,366 $ 1.54 $ 1.54	%
			( (		100 69 31 13 4 1 - 18 13 - - - - - 13 3 10 - - - 1 - 1 1 11 10 - 10 11 - 11

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

Standard Foods Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Six-Month Period Ended June 30, 2020 and 2019

(Reviewed, not Audited)

(In Thousands of New Taiwan Dollars)

				Equity Attributable to Owners of	Equity Attributable to Owners of	the Company				Non-controlling Interests $ 233,399 - - - ( 17,230) 15,469 10,119 25,588 $ 241,757 $ 272,564 - - - ( 23,932) 7,396 2,269 9,665 $ 258,297	Total Equity
Ordinary Shares $ 9,150,897 - - - - - - - $ 9,150,897 $ 9,150,897 - - - - - - - $ 9,150,897	Capital Surplus $ 93,045 - - - - - - - $ 93,045 $ 109,718 - - - - - - - $ 109,718		Retained	Earnings	Total $ 6,915,111 - - ( 2,287,724 ) - 1,399,795 - 1,399,795 $ 6,027,182 $ 8,016,188 - - ( 2,424,987 ) - 1,585,671 - 1,585,671 $ 7,176,872		Other Equity	Total ( $ 330,945 ) - - - - - 79,983 79,983 ($ 250,962) ( $ 577,494 ) - - - - - ( 199,628) ( 199,628) ($ 777,122)	Treasury Shares ( $ 21,182 ) - - - - - - - ($ 21,182) ( $ 21,182 ) - - - - - - - ($ 21,182)
						Exchange Differences on Translating the Financial Statements of Foreign Operation ( $ 412,869 ) - - - - - 64,984 64,984 ($ 347,885) ( $ 693,038 ) - - - - - ( 181,200) ( 181,200) ($ 874,238)	Unrealized Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income $ 81,924 - - - - - 14,999 14,999 $ 96,923 $ 115,544 - - - - - ( 18,428) ( 18,428) $ 97,116
		Legal Reserve $ 2,650,503 294,909 - - - - - - $ 2,945,412 $ 2,945,412 341,610 - - - - - - $ 3,287,022	Special Reserve $ 260,426 - 70,519 - - - - - $ 330,945 $ 330,945 - 246,549 - - - - - $ 577,494	Unappropriated Earnings $ 4,004,182 ( 294,909 ) ( 70,519 ) ( 2,287,724 ) - 1,399,795 - 1,399,795 $ 2,750,825 $ 4,739,831 ( 341,610 ) ( 246,549 ) ( 2,424,987 ) - 1,585,671 - 1,585,671 $ 3,312,356
							( (			( (	$ 16,040,325 - - ( 2,287,724 ) ( 17,230) 1,415,264 90,102 1,505,366 $ 15,240,737 $ 16,950,691 - - ( 2,424,987 ) ( 23,932) 1,593,067 ( 197,359) 1,395,708 $ 15,897,480

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

Standard Foods Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six-Month Period Ended June 30, 2020 and 2019

(Reviewed, not Audited)

(In Thousands of New Taiwan Dollars)

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Income before income tax A20010 Adjustments for: A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit loss recognized on trade receivables A20400 Net gain on fair value changes of financial assets and financial liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A21300 Dividend income A22500 Net loss (gain) on disposal of property, plant and equipment A29900 Others A30000 Net changes in operating assets and liabilities A31115 Financial assets mandatorily classified as fair value through profit or loss A31130 Notes receivable A31150 Trade receivables A31160 Trade receivables from related parties A31180 Other receivables A31200 Inventories A31230 Prepayments A31240 Other current assets A31990 Net defined benefit assets A32125 Contract liabilities A32130 Notes payable A32150 Trade payables A32160 Trade payables to related parties A32180 Other payables A32230 Other current liabilities A32240 Net defined benefit liabilities	For the Six-Month Period Ended June 30,2020 $ 2,075,152 294,833 28,026 8,104 ( 1,067 ) 31,317 ( 66,946 ) ( 7,704 ) ( 584 ) - ( 844,519 ) ( 11,541 ) 1,630,409 ( 1,648 ) ( 32,677 ) ( 704,138 ) ( 65,969 ) 3,426 ( 1,576 ) ( 95,946 ) ( 15,734 ) ( 467,923 ) ( 13,283 ) ( 358,543 ) 5,903 ( 37,512)	For the Six-Month Period Ended June 30,2019	For the Six-Month Period Ended June 30,2019
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( (	$ 1,808,466 272,621 25,757 33,750 5,402 ) 21,402 31,921 ) 1,615 ) 2,316 290 ) 631,906 ) 7,544 ) 1,436,269 - 38,990 717,729 281,704 4,646 1,368 ) 216,253 ) 85,245 985,877 ) 592 500,365 ) 6,103 92

(Continued)

(Continued from the previous page)

(Continued from the previous page)
Code A33000 Cash generated from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES B00040 Purchase of financial assets at amortized cost B00060 Refund of financial assets at amortized cost B02700 Payments for property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B04500 Payments for intangible assets B06100 Decrease in finance lease receivables B06500 Increase in other financial assets B06700 Increase in other non-current assets B07600 Dividends received BBBB Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES C00100 Decrease in short-term borrowings C00500 Decrease in short-term bills payable C01700 Payments for long-term borrowings C04020 Payments for principal portion of lease liabilities C04100 Increase in other financial liabilities C04200 Decrease in other financial liabilities C04400 Decrease in other non-current liabilities CCCC CASH FLOWS FROM FINANCING ACTIVITIES DDDD EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES EEEE NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS E00100 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD E00200 CASH AND CASH EQUIVALENTS, END OF THE PERIOD	For the Six-Month Period Ended June 30,2020 $ 1,349,860 59,019 ( 31,344 ) ( 565,154) 812,381 ( 1,985,992 ) 1,737,116 ( 113,952 ) 2,169 ( 34,664 ) 1,370 ( 8,184 ) ( 24,289 ) 7,704 ( 418,722) ( 349,061 ) ( 30,044 ) ( 6,000 ) ( 52,823 ) 7,051 - ( 564 ) ( 431,441) ( 64,755) ( 102,537 ) 3,705,903 $ 3,603,366	For the Six-Month Period Ended June 30,2019
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 2,353,141 32,005 21,668 ) 333,804) 2,029,674 1,498,354 ) 1,314,356 151,206 ) 6,428 4,915 ) 1,304 13,651 ) 2,835 ) 895 347,978) 670,847 ) 19,992 ) 9,000 ) 40,097 ) - 2,050 ) 249) 742,235) 15,226 954,687 2,589,952 $ 3,544,639

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

Standard Foods Corporation and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For THE SIX-MONTH PERIOD ENDED JUNE 30, 2020 and 2019

(Reviewed, not Audited)

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

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 consolidated financial statements of the Company and its subsidiaries, collectively referred to as the "Group," are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on August 7, 2020.
APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS
a. Initial application of the amendments to the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission ("FSC").
- Except for the following, the initial application of the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group's accounting policies:
- 1) Amendment to IFRS 3 "Definition of a Business" This amendment applies to transactions occurring to the Group after January 1, 2020. The amendment requires that business at least include inputs and material processes, both which make a significant contribution to the ability to create output. The determination of the materiality of the "process of acquisition" will depend on if there is any output on the acquisition date. In addition, a concentration test that permits a simplified assessment of whether an acquired set of activities and assets is a business is added. Enterprises may elect whether or not to apply the test.
- 2) Amendment to IAS 1 and IAS 8 "Definition of Materiality"
  - The Group has applied the amendment since January 1, 2020, and adopted "can be reasonably expected to affect users" as the threshold of materiality, and adjusted the disclosure of the consolidated financial report while deleting the immaterial information that may obscure material information.
9 -

b. New IFRSs issued by IASB but yet to be endorsed and issued into effect by the FSC

Effective Date Announced by New/Amended/Revised Standards and Interpretations IASB (Note 1) "Annual Improvements to IFRSs 2018-2020 Cycle" January 1, 2022 (Note 2) Amendments to IFRS 3 "Updating the Reference to the Conceptual Framework" January 1, 2022 (Note 3) Amendments to IFRS 10 and IAS 28 "Sale or Contribution To be determined of Assets between an Investor and its Associate or Joint Venture"

Amendments to IAS 1 "Classification of Liabilities as January 1, 2023 Current or Non-current"

  - Note 1. Unless stated otherwise, the above New/Amended/Revised Standards and Interpretations are effective for annual reporting periods beginning on or after their respective effective dates.

  - Note 2. The amendments to IFRS 9 are applicable to the exchange or term revisions of financial liabilities occurring in annual reporting periods beginning on or after January 1, 2022; the amendments to IAS 41 "Agriculture" are applicable to fair value measurements in annual reporting periods beginning on or after January 1, 2022; the amendments to IFRS 1 "First-Time Adoption of IFRSs" are applied retrospectively to annual reporting periods beginning on or after January 1, 2022.

  - Note 3. The amendments are applicable to business combinations with acquisition dates in annual reporting periods beginning on or after January 1, 2022.

  - Except for the above impact, as of the date the consolidated financial report was authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Statement of compliance

The consolidated financial report was formulated in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and IAS 34 "Interim Financial Reporting" endorsed and issued into effect by the FSC. The consolidated financial statements do not include all IFRSs disclosure information required by the annual financial report.

b. Basis of preparation

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

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

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1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities on the measurement date;
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.
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 (current liabilities include completed long term re-financing and rearranged payment agreement that took place between the date of balance sheet and publication of financial statements); and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least twelve months after the reporting period.

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

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statements of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company. Refer to Note 14 and Tables 7 and 8 for the detailed information on subsidiaries (including the percentages of ownership and main businesses).

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e. Other material accounting policies
- Except for the following, please refer to the summary of material accounting policies in the 2019 consolidated financial statements.
- 1) Pension benefit in defined benefit plan The pension cost for the interim period is calculated based on the actuarial cost ratio determined by the actuarial calculation at the end of the previous year. Calculation term is from the beginning of the period to the end of the period, and adjustments are made for major market fluctuations in the current period, major amendments to plans, settlement, or other significant one-time matters.
- 2) Other long-term employee benefits
  - Other long-term employee benefits have the same accounting treatment as the pension benefit in defined benefit plan, except that the relevant remeasurements are recognized in profit or loss.
- 3) Income tax
  - Income tax expenses are the sum of current income tax and deferred income tax. The interim income tax is evaluated on an annual basis and the interim profit before tax is applied with the tax rate applicable to the expected total annual earnings for calculations.
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group's accounting policies, the 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 management will continue to review the estimates and the basic assumptions. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Write-down of Inventory

Net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value was based on current market conditions and the historical experience of selling products of a similar nature. Changes in market conditions may have a material impact on the estimation of net realizable value.

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6. CASH AND CASH EQUIVALENTS

6.	CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS
7. 8.	June 30, 2020 December 31, 2019 June 30, 2019 Cash on hand $ 2,676 $ 2,940 $ 3,218 Checking accounts and demand deposits 3,118,645 3,198,093 2,421,927 Cash equivalents (investments with original maturities of less than 3 months) Time deposits 367,103 184,478 1,109,519 Repurchase agreements collateralized by bonds 114,942 320,392 9,975 $ 3,603,366 $ 3,705,903 $ 3,544,639 The ranges of annual interest rate of cash in bank at the end of the reporting period were as follows: June 30, 2020 December 31, 2019 June 30, 2019 Bank deposits 0.001%-3.500% 0.001%-3.220% 0.001%-3.100% Repurchase agreements collateralized by bonds 0.300%-0.340% 0.550%-0.560% 0.580% FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL) June 30, 2020 December 31, 2019 June 30, 2019 Financial assets at FVTPL- current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Mutual funds $ 1,483,675 $ 667,673 $ 1,254,749 Bonds $ 30,190 $ - $ - Financial assets at FVTPL-non- current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic unlisted shares $ 6,200 $ 7,575 $ 7,664 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI) June 30, 2020 December 31, 2019 June 30, 2019 Current Investments in equity instruments at FVTOCI $ 178,498 $ 186,711 $ 168,201 Non-current Investments in equity instruments at FVTOCI $ 182,903 $ 189,695 $ 178,251
	(FVTOCI) Current Investments in equity instruments at FVTOCI Non-current Investments in equity instruments at FVTOCI	June 30, 2020 $ 178,498 $ 182,903	December 31, 2019 $ 186,711 $ 189,695

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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 Ordinary shares - Formosa Plastics Corp. Ordinary shares - China Steel Corp. Ordinary shares - Polytronics Technology Corp. Ordinary shares - Taiwan Semiconductor Manufacturing Co., Ltd. Non-current Listed shares and emerging market shares Ordinary shares - GeneFerm Biotechnology Co., Ltd. (GeneFerm) Unlisted shares Ordinary shares - Dah Chung Bills Finance Corp. Ordinary shares - InnoComm Mobile Technology Corp. Ordinary shares - AsiaVest Liquidation Co.	June	30, 2020 $ 15,307 5,686 8,010 16,627 104,698 28,170 $ 178,498 $ 53,199 14,173 114,624 907 $ 182,903	December 31, 2019 $ 16,479 5,346 9,126 19,198 106,772 29,790 $ 186,711 $ 65,640 15,702 107,424 929 $ 189,695	June	30, 2019
					$ 16,524 5,492 10,470 20,041 94,164 21,510 $ 168,201 $ 77,653 15,938 83,664 996 $ 178,251

These investments by the Group are held for medium- to long-term strategic purposes and the Group expects to profit from long-term investments. 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 Group's strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

June 30, 2020 December 31, 2019 June 30, 2019

Current Time deposits with original maturities of more than 3 months $ 2,446,729 $ 2,206,805 $ 1,695,434 The ranges of interest rates for time deposits with original maturities of more than 3 months were 0.54%-3.80%, 0.65%-2.85% and 0.63%-2.97% per annum as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively.

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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 income Receivables from payments on behalf of others Others	June 30, 2020 $ 14,236 $ 4,767,204 ( 28,460) $ 4,738,744 $ 16,652 1,430 215,174 $ 233,256	December 31, 2019 $ 2,977 $ 6,460,483 ( 20,933) $ 6,439,550 $ 8,912 595 183,576 $ 193,083	June 30, 2019	June 30, 2019
		(	(	$ 10,387 $ 4,768,931 42,483) $ 4,726,448 $ 7,445 1,938 174,580 $ 183,963

The average collection period of receivables from sales of goods was 30-90 days. In order to control credit risk, the Group has established a department dedicated to credit risk management. The department is responsible for determining the credit limits of customers, credit approvals, and other monitoring procedures to ensure the collection of receivables. In addition, the Group 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 Group adopts the simplified approach of IFRS 9 to measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses (ECLs). The Group performs assessment using the three forward-looking factors, i.e., industrial index of the customer, GDP growth rate and unemployment rate, as the ECL rate.

When there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, the credit risk management department of the Group would continue to engage in enforcement activity in compliance with laws and regulations. The trade receivable will be written off when the amount due is collected.

The following table details the loss allowance of notes and trade receivables of the Group. June 30, 2020

June 30, 2020
ECL rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2019 ECL rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost June 30, 2019 ECL rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due		Less than 30 Days		31 to 90 Days		91 to 180 Days		Over 180 Days			Total
	0.01% $ 4,601,695 ( 331) $ 4,601,364 Not Past Due		1.27% $ 113,688 ( 1,443) $ 112,245 Less than 30 Days		6.57% $ 35,072 ( 2,304) $ 32,768 31 to 90 Days		70.98% $ 18,462 ( 13,104) $ 5,358 91 to 180 Days		90.06% $ 12,523 ( 11,278) $ 1,245 Over 180 Days		(	$ 4,781,440 28,460) $ 4,752,980 Total
	0.01% $ 6,340,444 ( 733) $ 6,339,712 Not Past Due		1.68% $ 54,029 ( 906) $ 53,124 Less than 30 Days		3.36% $ 36,932 ( 1,242) $ 35,689 31 to 90 Days		38.44% $ 6,717 ( 2,582) $ 4,135 91 to 180 Days		61.05% $ 25,338 ( 15,470) $ 9,867 Over 180 Days		(	$ 6,463,460 20,933) $ 6,442,527 Total
	(	0.03% $ 4,186,750 1,257) $ 4,185,493	(	0.87% $ 263,459 2,302) $ 261,157	(	2.20% $ 113,507 2,492) $ 111,015	(	6.28% $ 190,801 11,976) $ 178,825	(	98.61% $ 24,801 24,456) $ 345	(	$ 4,779,318 42,483) $ 4,736,835

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

11.	For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 Balance at January 1 $ 20,933 $ 8,792 Add: Net remeasurement of loss allowance 8,104 33,750 Foreign exchange translation gains and losses ( 577) ( 59) Balance at June 30 $ 28,460 $ 42,483 FINANCE LEASE RECEIVABLES The composition of finance lease receivables was as follows: June 30, 2020 December 31, 2019 June 30, 2019 Undiscounted lease payments Year 1 $ 4,200 $ 4,200 $ 4,200 Year 2 4,400 4,200 4,200 Year 3 4,800 4,700 4,400 Year 4 4,800 4,800 4,800 Year 5 4,800 4,800 4,800 Year 6 onwards 11,000 13,400 15,800 34,000 36,100 38,200 Less: Unearned finance income ( 5,647) ( 6,377) ( 7,140) Net investment in leases presented as finance lease receivables $ 28,353 $ 29,723 $ 31,060	For the Six-Month Period Ended June 30, 2020	For the Six-Month Period Ended June 30, 2019	For the Six-Month Period Ended June 30, 2019	For the Six-Month Period Ended June 30, 2019
				$ 8,792 33,750 59) $ 42,483 June 30, 2019
				(	$ 4,200 4,200 4,400 4,800 4,800 15,800 38,200 7,140) $ 31,060

As of June 30, 2020, no finance lease receivable was past due. The Group has not recognized a loss allowance for finance lease receivables after taking into consideration the historical default experience and the future prospects of the industries in which the lessees operate, together with the value of collateral held over these finance lease receivables.

12. INVENTORIES

INVENTORIES
Merchandise Finished goods Work in progress Raw materials Packing materials	June 30, 2020 $ 554,959 1,312,608 593,997 1,774,649 68,742 $ 4,304,955	December 31, 2019 $ 578,324 1,544,663 344,702 1,111,234 68,061 $ 3,646,984	June 30, 2019
				$ 503,638 1,063,671 425,284 1,451,530 60,994 $ 3,505,117

The cost of inventories recognized as cost of goods sold for the three-month and six-month periods ended June 30, 2020 and 2019 included loss on write-down of inventories (gain on recovery) of NT$(9,250) thousand, NT$2,868 thousand, NT$749 thousand and NT$7,767 thousand, loss on abandoned inventories of NT$11,071 thousand, NT$14,660 thousand, NT$17,797 thousand and NT$29,537 thousand, respectively.

16 -

13. PREPAYMENTS

PREPAYMENTS
Prepayments for purchases Prepayments for rent Prepayments for insurance Excess business tax paid Prepayments for advertisements Others	June 30, 2020 $ 873,400 9,810 10,012 $ 269,641 33,890 224,935 $ 1,421,688	December 31, 2019 $ 884,193 6,215 1,139 $ 255,952 13,578 224,149 $ 1,385,226	June 30, 2019
			$ 702,810 7,188 9,267 $ 382,169 12,448 233,889 $ 1,347,771

14. SUBSIDIARIES

Subsidiaries included in consolidated financial statements.

Entities of the consolidated financial statements were as follows:

Investor The Company The Company The Company The Company The Company The Company The Company The Company Accession Limited Accession Limited Accession Limited Dermalab Cayman Standard Hong Kong Standard Hong Kong Standard Hong Kong Standard China Standard Investment China Standard Investment The Company and China Standard Investment China Standard Investment	Investee Standard Dairy Products Taiwan Limited (Standard Dairy Products) Charng Hui Ltd. (Charng Hui) Domex Technology Corporation (Domex Technology) Standard Beverage Company Limited (Standard Beverage) Accession Limited Standard Investment (Cayman) Limited (Cayman Standard) Le Bonta Wellness International Corporation (Le Bonta Wellness) Standard Foods, LLC. Shanghai Standard Foods Co., Ltd. (Shanghai Standard) Shanghai Le Ben De Health Technology Co., Ltd. (Shanghai Le Ben De) Dermalab S.A. (Dermalab) Swissderma SL (Swissderma) Standard Corporation (Hong Kong) Limited (Hong Kong Standard) Standard Investment (China) Co., Ltd. (China Standard Investment) Shanghai Le Min Industrial Co., Ltd. (Shanghai Le Min) Shanghai Le Ho Industrial Co., Ltd. (Shanghai Le Ho) Standard Foods (China) Co., Ltd. (China Standard Foods) Shanghai Dermalab Corporation (Shanghai Dermalab) Le Bonta Wellness Co., Ltd. (Shanghai Le Bonta Wellness) Standard Foods (Xiamen) Co., Ltd. (Xiamen Standard)	Main Business Manufacture and sale of dairy products and beverages Investing Manufacture and sale of computer peripherals and computer appliances Manufacture and sale of beverages Investing Investing Sale of health food Sale of health food Manufacture and sale of edible oils and nutritious foods Technical consultant on health technology, technical transfer and technical service Development and sale of cosmetics Sale of cosmetics Investing Investing and sale of edible oils and nutritious foods Management of properties Management of properties Manufacture and sale of edible oils and nutritious foods Sale of nutritional foods, cosmetic and engage in import and export business Sale of nutritional foods and engage in import and export business Manufacture and sale of edible oils and nutritious foods	ProportionofOwnership June 30, 2020 December 31,2019 June 30, 2019 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 52.0% 52.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 99.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%	ProportionofOwnership June 30, 2020 December 31,2019 June 30, 2019 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 52.0% 52.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 99.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%	Remark
			June 30, 2020 100.0% 100.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%	December 31,2019 100.0% 100.0% 52.0% 100.0% 100.0% 100.0% 100.0% - 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
					－－－－－－－ The Company invested US$300 thousand and set up Standard Foods, LLC. in June 2020. －－－－－－－－－－－－

Note: It is a non-significant subsidiary, and its financial statements have not been reviewed by any CPA.

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The financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2020 and 2019, combined total assets of these non-significant subsidiaries were NT$7,552,648 thousand and NT$7,673,604 thousand, respectively, representing 30% and 33%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$2,302,312 thousand NT$2,580,695 thousand, respectively, representing 24% and 31%, respectively, of the consolidated total liabilities; for the three-month and six-month periods ended June 30, 2020 and 2019, the amounts of combined comprehensive income of these subsidiaries were NT$157,013 thousand, NT$137,571 thousand, NT$151,428 thousand and NT$296,743 thousand, respectively, representing 17%, 26%, 11% and 20%, respectively, of the consolidated total comprehensive income.

15. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2019 Impact of retrospective application of IFRS 9 Balance at January 1, 2019 (restated) Additions Disposals Reclassified Reclassified as investment properties Effects of foreign currency exchange differences Balance at June 30, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Impact of retrospective application of IFRS 9 Balance at January 1, 2019 (restated) Disposals Depreciation expenses Reclassified as investment properties Effects of foreign currency exchange differences Balance at June 30, 2019 Carrying amount at June 30, 2019 Cost Balance at January 1, 2020 Additions Disposals Reclassified Effects of foreign currency exchange differences Balance at June 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Disposals Depreciation expenses Effects of foreign currency exchange differences Balance at June 30, 2020 Carrying amount at December 31,2019 and January 1, 2020 Carrying amount at June 30, 2020		FreeholdLand		Buildings		Equipment	O	ther Equipment	Property in Construction and Equipment to Be Tested		Total
		$ 702,405 - 702,405 - - - - - $ 702,405 $ - - - - - - - $ - $ 702,405 $ 702,405 - - - - $ 702,405 $ - - - - $ - $ 702,405 $ 702,405	$ 3,447,188 - 3,447,188 - ( 10 ) 718,790 ( 132,405 ) 184,606 $ 4,218,169 $ 1,234,242 - 1,234,242 ( 4 ) 82,582 ( 118,667 ) 40,370 $ 1,238,523 $ 2,979,646 $ 4,078,150 322 ( 7,533 ) 17,293 ( 69,136) $ 4,019,096 $ 1,269,679 ( 7,266 ) 86,796 ( 12,136) $ 1,337,073 $ 2,808,471 $ 2,682,023		$ 4,153,208 - 4,153,208 - ( 34,710 ) 199,535 - 14,206 $ 4,332,239 $ 2,748,680 - 2,748,680 ( 27,369 ) 137,615 - 5,982 $ 2,864,908 $ 1,467,331 $ 4,069,198 1,590 ( 64,268 ) 82,878 ( 30,378) $ 4,059,020 $ 2,730,217 ( 63,219 ) 136,138 ( 13,203) $ 2,789,933 $ 1,338,981 $ 1,269,087		$ 610,658 ( 9,752) 600,906 - ( 20,183 ) 173,238 - ( 194,063) $ 559,898 $ 472,013 ( 3,863) 468,150 ( 18,786 ) 22,210 - ( 32,966) $ 438,608 $ 121,290 $ 561,938 3,239 ( 10,003 ) 20,271 ( 5,574) $ 569,871 $ 425,371 ( 9,734 ) 24,513 ( 4,036) $ 436,114 $ 136,567 $ 133,757		$ 1,019,714 - 1,019,714 151,206 - ( 1,091,544) - 13,468 $ 92,844 $ - - - - - - - $ - $ 92,844 $ 138,888 108,801 - ( 120,442 ) ( 1,107) $ 126,140 $ - - - - $ - $ 138,888 $ 126,140	$ 9,933,173 ( 9,752) 9,923,421 151,206 ( 54,903 ) 19 ( 132,405 ) 18,217 $ 9,905,555 $ 4,454,935 ( 3,863) 4,451,072 ( 46,159 ) 242,407 ( 118,667 ) 13,386 $ 4,542,039 $ 5,363,516 $ 9,550,579 113,952 ( 81,804 ) - ( 106,195) $ 9,476,532 $ 4,425,267 ( 80,219 ) 247,447 ( 29,375) $ 4,563,120 $ 5,125,312 $ 4,913,412

No impairment assessment was performed for the six-month periods ended June 30, 2020 and 2019 as there was no indication of impairment.

Depreciation expenses were recognized on a straight-line basis over the following estimated useful lives of the assets:

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Building
Main buildings	20-51 years
Electrical and mechanical equipment	8-20 years
Engineering	3-39 years
Others	3-20 years
Equipment
Main equipment	2-20 years
Engineering	3-20 years
Others	3-15 years
Other equipment	2-15 years

Refer to Note 34 for the carrying amount of property, plant and equipment pledged by the Group to secure borrowings granted to the Group.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

ASE ARRANGEMENTS Right-of-use assets
Carrying amounts Land Buildings Office equipment Transportation equipment	June 30, 2020 $ 389,700 248,470 355 8,969 $ 647,494	December 31, 2019 $ 404,964 286,147 390 8,178 $ 699,679	June 30, 2019
				$ 375,265 155,878 - 6,746 $ 537,889

	For the Three-	For	the Three-	For	the Six-	the Six-	For the Six-	For the Six-
	Month Period	Month Period		Month Period			Month Period
	Ended June 30,	Ended June 30,		Ended June		30,	Ended June 30,
	2020		2019		2020			2019
Additions to right-of-use assets	$ 6,747	$	58,514	$	9,349		$	58,514
Depreciation charge for right-of-
use assets
Land	$ 3,037	$	2,965	$	6,131		$	5,924
Buildings	18,673		12,136		38,332			21,444
Office equipment	18		-			35		-
Transportation equipment	860		898		1,601			1,797
	$ 22,588	$	15,999	$	46,099		$	29,165
Lease liabilities
	June 30, 2020		December 31,		2019		June	30, 2019
Carrying amounts
Current	$ 80,322		$	83,119			$	89,441
Non-current	$ 219,173		$ 264,496				$	64,065
Range of discount rate for lease liabilities was		as follows:
	June 30, 2020		December 31,		2019		June	30, 2019
Land	1.07%~1.49%		1.07%~1.49%				1.49%
Buildings	1.07%~4.35%		1.07%~4.35%				1.07%~4.35%
Office equipment	1.07%		1.07%					-
Transportation equipment	1.07%~ 12.04%		1.07%~ 12.04%			1.07%~ 12.04%

b. Lease liabilities

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c. Material leasing activities and terms

The Group leases land, buildings, and transportation equipment for the use of plants, offices and business cars with lease terms of 1 to 50 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor's consent.

d. Other lease information

Lease arrangements under operating leases for leasing out the investment properties are set out in Note 17. Lease arrangements for leasing out the assets under finance leases are set out in Note 11.

in Note 11.
Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Three- Month Period Ended June 30, 2020 $ 20,103 $ 252 $ 18	For the Three- Month Period Ended June 30, 2019 $ 28,320 $ 78 $ -	For the Six- Month Period Ended June 30, 2020 $ 42,251 $ 538 $ 38 ($ 100,733)	For the Six- Month Period Ended June 30, 2019
			(	(	$ 59,968 $ 150 $ - $ 100,215)

The Group leases certain office equipment, production assets, and sale premises that qualify as short-term leases. The Group has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

17. INVESTMENT PROPERTIES

INVESTMENT PROPERTIES
Cost Balance at January 1, 2019 From right-of-use assets From property, plant and equipment Effects of foreign currency exchange differences Balance at June 30, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation expenses From right-of-use assets From property, plant and equipment Effects of foreign currency exchange differences Balance at June 30, 2019		Completed Investment Properties $ 157,309 - 132,405 1,466) $ 288,248 $ 46,533 1,049 - 118,667 1,314) $ 164,935		Right-of-Use Assets $ - 5,898 - 65) $ 5,833 $ - - 123 - 1) $ 122		Total
	( (		( (		( (	$ 157,309 5,898 132,405 1,531) $ 294,081 $ 46,533 1,049 123 118,667 1,315) $ 165,057

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Completed Investment Properties Right-of-Use Assets Total Carrying amount at June 30, 2019 $ 123,313 $ 5,711 $ 129,024 Cost Balance at January 1, 2020 $ 241,711 $ 5,548 $ 247,259 Effects of foreign currency exchange differences ( 2,203) ( 144) ( 2,347) Balance at June 30, 2020 $ 239,508 $ 5,404 $ 244,912 Accumulated depreciation and impairment Balance at January 1, 2020 $ 124,434 $ 333 $ 124,767 Depreciation expenses 1,071 216 1,287 Effects of foreign currency exchange differences ( 1,978) ( 12) ( 1,990) Balance at June 30, 2020 $ 123,527 $ 537 $ 124,064 Carrying amount at December 31, 2019 and January 1, 2020 $ 117,277 $ 5,215 $ 122,492 Carrying amount at June 30, 2020 $ 115,981 $ 4,867 $ 120,848 The investment properties held by the Group are depreciated using the straight-line basis over the following estimated useful lives: Building Main buildings 35-51 years Electrical and mechanical equipment 24-25 years Engineering 28 years Right-of-use assets 49 years Others 24 years The fair values of the investment properties were NT$212,901 thousand, NT$212,653 thousand and NT$209,091 thousand as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively. In the absence of hiring independent appraiser, the management of the Group determined the fair value with reference to market transaction prices of similar properties. All of the Group's investment properties are held under freehold interests. The carrying amounts of investment properties pledged by the Group to secure borrowings granted to the Group are disclosed in Note 3, 4.		Total

18. OTHER INTANGIBLE ASSETS

disclosed in Note 3, 4. OTHER INTANGIBLE ASSETS
Cost Balance at January 1, 2019 Additions Effects of foreign currency exchange differences Balance at June 30, 2019 Accumulated amortization and impairment	Trademark $ 207,039 34 30,514 $ 237,587		Computer Software $ 233,269 4,881 270 $ 238,420		Total
					$ 440,308 4,915 30,784 $ 476,007

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Trademark Computer Software Total Balance at January 1, 2019 $ 137,269 $ 230,807 $ 368,076 Amortization expenses 2,544 3,209 5,753 Effects of foreign currency exchange differences 29,226 262 29,488 Balance at June 30, 2019 $ 169,039 $ 234,278 $ 403,317 Carrying amount at June 30, 2019 $ 68,548 $ 4,142 $ 72,690 Cost Balance at January 1, 2020 $ 227,260 $ 239,713 $ 466,973 Additions 31,002 3,662 34,664 Disposals - ( 28,268 ) ( 28,268 ) Effects of foreign currency exchange differences ( 4,510) ( 260) ( 4,770) Balance at June 30, 2020 $ 253,752 $ 214,847 $ 468,599 Accumulated amortization and impairment Balance at January 1, 2020 $ 163,442 $ 236,262 $ 399,704 Disposals - ( 28,268 ) ( 28,268 ) Amortization expenses 2,536 1,112 3,648 Effects of foreign currency exchange differences ( 4,773) ( 251) ( 5,024) Balance at June 30, 2020 $ 161,205 $ 208,855 $ 370,060 Carrying amount at December 31, 2019 and January 1, 2020 $ 63,818 $ 3,451 $ 67,269 Carrying amount at June 30, 2020 $ 92,547 $ 5,992 $ 98,539 The above intangible assets with definite useful are amortized on a straight-line basis over the following estimated lives: Trademark 10-20 years Computer software 2-3 years		Total

19. OTHER ASSETS

OTHER ASSETS
Current Pledged time deposits (Note 34) Advances to officers Temporary payments Others Non-current Prepayments for equipment Refundable deposits Pledged time deposits (Note 34) Others	June 30, 2020 $ 4,013 14,071 6,436 1,438 $ 25,958 $ 16,375 60,970 83,706 102,806 $ 263,857	December 31, 2019 $ 4,013 15,570 9,683 118 $ 29,384 $ 6,984 53,615 85,950 114,426 $ 260,975	June 30, 2019
				$ 1,010 15,785 - 470 $ 17,265 $ 26,538 55,529 90,360 93,685 $ 266,112

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20. BORROWINGS

a. Short-term borrowings

RROWINGS Short-term borrowings
Secured borrowings (Note 34) Bank loans Unsecured borrowings Bank loans	June 30, 2020 $ 120,000 889,811 $ 1,009,811	December 31, 2019 $ 150,000 1,232,955 $ 1,382,955	June 30, 2019
				$ 110,000 968,485 $ 1,078,485

The range of interest rates on short-term borrowings or financing was 0.95%-3.75%, 1.05%4.35% and 1.05%-4.35% per annum as of June 30, 2020, December 31, 2019, and June 30, 2019, respectively.

b. Short-term bills payable

2019, respectively. Short-term bills payable
Commercial paper payable Less: Discount on short-term bills payable	June 30, 2020 $ 70,000 ( 76) $ 69,924	December 31, 2019 $ 100,000 ( 32) $ 99,968	June 30, 2019
	(	(	(	$ 100,000 88) $ 99,912

The range of interest rates on commercial paper payable was 1.19%-1.31%, 1.34%-1.36% and 1.34%-1.36% per annum as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively.

c. Long-term borrowings

respectively. Long-term borrowings
Secured borrowings (Note 34) Bank loans (1) Less: Current portions Long-term borrowings	June 30, 2020 $ - - $ -	December 31, 2019 $ 6,000 ( 6,000) $ -	June 30, 2019
		(	(	$ 18,000 12,000) $ 6,000

1) As of December 31, 2019 and June 30, 2019, the interest rate of the bank borrowings secured by the Group's equipment (see Note 34) was 1.91% per annum. The bank borrowings were repayable quarterly from March 2018 and were paid off in February 2020.

21. NOTES PAYABLE AND TRADE PAYABLES

June 30, 2020 December 31, 2019 June 30, 2019 Notes payable Operating $ 292,901 $ 316,444 $ 217,386 Trade payables Operating $ 1,535,080 $ 2,014,619 $ 1,186,920

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

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22. OTHER LIABILITIES

OTHER LIABILITIES
Current Other payables Payable for salaries or bonuses Payable for compensation of employees Payable for remuneration to directors Payable for commission and rebates Payable for dividends Advertisement payable Payable for royalties Payable for freight Payable for equipment Others Other liabilities Advance receipts from customers Refund liability Others Non-current Other liabilities Guarantee deposits Others	June 30, 2020 $ 217,924 17,819 $ 36,767 831,369 2,448,919 139,326 21,208 103,945 77,684 1,016,852 $ 4,911,813 $ 305 15,495 18,267 $ 34,067 $ 26,698 2,386 $ 29,084	December 31, 2019 $ 306,728 52,013 $ 25,073 963,712 - 199,232 25,668 100,658 113,698 1,063,892 $ 2,850,674 $ 1,337 13,055 14,109 $ 28,501 $ 20,044 2,934 $ 22,978	June 30, 2019
			$ 206,030 15,674 $ 31,308 725,058 2,304,955 114,825 21,981 72,914 98,097 837,198 $ 4,428,040 $ 3,399 15,955 21,283 $ 40,637 $ 18,071 4,579 $ 22,650

23. RETIREMENT BENEFIT PLANS

For the three-month and six-month periods ended June 30, 2020 and 2019, the pension expenses of defined benefit plans were NT$2,868 thousand, NT$2,978 thousand, NT$5,739 thousand and NT$5,962 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2019 and 2018, respectively.

24. EQUITY

a. Share capital

1) Ordinary shares

Y capital Ordinary shares
Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	June 30, 2020 920,000 $ 9,200,000 915,089 $ 9,150,897	December 31, 2019 920,000 $ 9,200,000 915,089 $ 9,150,897	June 30, 2019
				920,000 $ 9,200,000 915,089 $ 9,150,897

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2) Global depositary receipts

As of June 30, 2020, 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 5 shares of the Company's ordinary shares, were traded on the Euro MTF Market of the Luxembourg Stock Exchange. Holders of the GDRs may request at any time to have their GDRs be converted into corresponding ordinary shares.

b. Capital surplus

June 30, 2020 December 31, 2019 June 30, 2019

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition $ 1 $ 1 $ 1 May only be used to offset a deficit Changes in percentage of ownership interests in subsidiaries (2) 466 466 466 Treasury share transactions 109,251 109,251 92,578 $ 109,718 $ 109,718 $ 93,045

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 Articles of Incorporation, where the Company made profit in a fiscal year, the profit shall be appropriated, less any paying taxes and deficit, 10% thereof as legal reserve, special reserve provided or reversed in accordance with the regulations, and 30% to 100% of 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 in the Articles of Incorporation, please refer to Note 26(i) "employees' compensation and remuneration of directors."

25 -

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.

The Company appropriates or reserves special reserve in accordance with Letter No. 1010012865 and Letter No. 1010047490 issued by the FSC and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs."

The appropriations of earnings for 2019 and 2018 that were approved in the shareholders' meetings on June 16, 2020 and June 13, 2019, respectively, were as follows:

Legal reserve Special reserve Cash dividends Cash dividends per share (NT$) Special reserve Balance at January 1 Appropriation of special reserve Appropriation for deductions in other equity items Balance at June 30		2019 $ 341,610 $ 246,549 $ 2,424,987 $ 2.65 For the Six-Month Period Ended June 30, 2020 $ 330,945 246,549 $ 577,494	2018 $ 294,909 $ 70,519 $ 2,287,724 $ 2.5 For the Six-Month Period Ended June 30, 2019	2018
				$ 260,426 70,519 $ 330,945

d. Special reserve

Appropriation for special reserve should be made in the amount equal to the net debit balance of other equity at the end of the reporting period. 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 translating the financial statements of foreign operations

Balance at January 1 Recognized for the year Exchange differences on translating the financial statements of foreign operations Other comprehensive income for the period Balance at June 30	For the Six-Month Period Ended June 30, 2020 ( $ 693,038 ) ( 181,200) ( 181,200) ($ 874,238)	For the Six-Month Period Ended June 30, 2019
		( $ 412,869 ) 64,984 64,984 ($ 347,885)

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

f. g.	Balance at January 1 Recognized for the year Unrealized gain (loss) equity instruments Other comprehensive income for the period Balance at June 30 Non-controlling interests Balance at January 1 Profit for the period Other comprehensive income for the period Exchange difference on translating the financial statements of foreign operation Unrealized gain (loss) on financial assets at FVTOCI Cash dividends distributed by subsidiaries to non-controlling interests Balance at June 30 Treasury shares Purpose of Buy-back	For the Six-Month Period Ended June 30, 2020 $ 115,544 ( 18,428) ( 18,428) $ 97,116 For the Six-Month Period Ended June 30, 2020	For the Six-Month Period Ended June 30, 2019
			$ 81,924 14,999 14,999 $ 96,923 For the Six-Month Period Ended June 30, 2019

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 June 30, 2020 Charng Hui December 31, 2019 Charng Hui June 30, 2019 Charng Hui	Number of Shares Held (In Thousands of Shares)		Carrying Amount	Market Price	Market Price
	6,669 6,669 6,669		$ 21,182 $ 21,182 $ 21,182		$ 420,177 $ 464,195 $ 404,837

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 shareholder's rights.

27 -

25. REVENUE

REVENUE
For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 Revenue from contracts with customers Revenue from sale of goods $ 7,952,636 $ 6,070,454 a. Contract balances June 30, 2020 December 31, 2019 Notes receivable (Note 10) $ 14,236 $ 2,977 Trade receivables (Note 10)$ 4,738,744 $ 6,439,550 Contract liabilities - current Sale of goods $ 224,495 $ 326,644 b. Disaggregation of revenue	For the Six- Month Period Ended June 30, 2020	For the Six- Month Period Ended June 30, 2019
	$ 14,624,069 June 30, 2019 $ 10,387 $ 4,726,448 $ 148,560	$ 13,407,620 January 1, 2019
			$ 2,887 $ 6,161,079 $ 360,115

For the Six Months Ended June 30, 2020

Types of goods or services Sale of goods		Reportable Segments	Reportable Segments	Reportable Segments	Reportable Segments	Others $ 1,194,455		Total
		Nutritious Foods $ 5,824,917		Cooking Products $ 7,604,697
								$ 14,624,069

For the Six-Month Period Ended June 30, 2019

Reportable Segments	Reportable Segments	Reportable Segments	Reportable Segments	Others $ 1,852,381 For the Six- Month Period Ended June 30, 2020		Total
Nutritious Foods $ 5,752,434 For the Three- Month Period Ended June 30, 2020 $ 19,493 14,237 85 326 $ 34,141		Cooking Products $ 5,802,805 For the Three- Month Period Ended June 30, 2019 $ 7,911 4,526 183 315 $ 12,935
$					$ 13,407,620 For the Six- Month Period Ended June 30, 2019

	$ 19,493 14,237 85 326 $ 34,141		$ 7,911 4,526 183 315 $ 12,935	$ 36,601 29,188 471 686 $ 66,946		$ 22,886 8,141 218 676 $ 31,921

26. NET PROFIT

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b. Other income

b. Other income
Operating lease rental income Investment properties (Note 17) Others Dividend income Investments in equity instruments at FVTOCI c. Other gains and losses Gains and losses of financial assets and financial liabilities Financial assets mandatorily classified as fair value through profit or loss Net foreign exchange gains (losses) Net gains (losses) on disposal of property, plant and equipment Government grants Others d. Finance costs Interest on bank loans Interest on short-term bills payable Interest on lease liabilities Other interest expenses e. Impairment losses recognized Trade receivables Inventories (included in operating costs)	For the Three- Month Period Ended June 30, 2020 $ 6,970 267 7,237 7,479 $ 14,716 For the Three- Month Period Ended June 30, 2020 $ 6,183 ( 14,789 ) ( 792 ) 35,681 5,456 $ 31,739 For the Three- Month Period Ended June 30, 2020 $ 13,954 116 2,426 13 $ 16,509 (reversed) For the Three- Month Period Ended June 30, 2020 $ 818 ($ 9,250)	For the Three- Month Period Ended June 30, 2019 $ 4,721 363 5,084 1,615 $ 6,699 For the Three- Month Period Ended June 30, 2019 $ 1,143 12,916 ( 1,527 ) 7,165 24,011 $ 43,708 For the Three- Month Period Ended June 30, 2019 $ 8,911 436 1,475 13 $ 10,835 For the Three- Month Period Ended June 30, 2019 $ 30,013 $ 2,868	For the Six- Month Period Ended June 30, 2020 $ 14,002 535 14,537 7,704 $ 22,241 For the Six- Month Period Ended June 30, 2020 $ 1,067 ( 7,738 ) 584 42,426 ( 1,894) $ 34,445 For the Six- Month Period Ended June 30, 2020 $ 25,852 357 5,083 25 $ 31,317 For the Six- Month Period Ended June 30, 2020 $ 8,104 $ 749	For the Six- Month Period Ended June 30, 2019
				$ 9,442 507 9,949 1,615 $ 11,564 For the Six- Month Period Ended June 30, 2019
				$ 5,402 9,568 ( 2,316 ) 7,165 29,036 $ 48,855 For the Six- Month Period Ended June 30, 2019
				$ 18,857 532 1,988 25 $ 21,402 For the Six- Month Periods Ended June 30, 2019
	(				$ 33,750 $ 7,767

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f. Depreciation and amortization

Depreciation and amortization
For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 An analysis of depreciation by function Operating costs $ 99,496 $ 98,945 Operating expenses 47,072 42,749 Non-operating revenue and expenses 642 525 $ 147,210 $ 142,219 An analysis of amortization by function Operating costs $ 4,805 $ 4,267 Operating expenses 9,476 9,441 $ 14,281 $ 13,708 Operating expenses directly related to investment properties For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 Direct operating expenses of investment properties Direct operating expenses of investment properties that generated rental income $ 174 $ 173 Direct operating expenses of investment properties that did not generated rental income 142 140 $ 316 $ 313 Employee benefit expenses For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 Post-employment benefits Defined contribution plans $ 5,864 $ 30,089 Defined benefit plans (see Note 23) 2,868 2,978 8,732 33,067 Other employee benefits 631,657 578,670 Total employee benefit expenses $ 640,389 $ 611,737 An analysis of employee benefit expenses by function Operating costs $ 228,250 $ 204,745 Operating expenses 412,139 406,992 $ 640,389 $ 611,737	For the Six- Month Period Ended June 30, 2020 $ 198,705 94,841 1,287 $ 294,833 $ 9,732 18,294 $ 28,026 For the Six- Month Period Ended June 30, 2020 $ 351 286 $ 637 For the Six- Month Period Ended June 30, 2020 $ 33,480 5,739 39,219 1,240,804 $ 1,280,023 $ 434,898 845,125 $ 1,280,023	For the Six- Month Period Ended June 30, 2019
		$ 195,189 76,383 1,049 $ 272,621 $ 9,368 16,389 $ 25,757 For the Six- Month Period Ended June 30, 2019
		$ 347 283 $ 630 For the Six- Month Period Ended June 30, 2019
			$ 62,292 5,962 68,254 1,151,459 $ 1,219,713 $ 409,373 810,340 $ 1,219,713

g. Operating expenses directly related to investment properties

h. Employee benefit expenses

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i. Employees' compensation and remuneration of directors
According to the Company's Articles, the Company accrued employees' compensation and remuneration of directors at rates of no less than 0.5% and no higher than 0.75%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. For the three-month and six-month period ended June 30, 2020 and 2019, the employees' compensation and the remuneration of directors accrued were as follows: Accrual rate

Accrual rate
Compensation of employees Remuneration of directors Amount Compensation of employees Remuneration of directors	For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 0.90% 0.90% 0.59% 0.59% For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 For the Six- Month Period Ended June 30, 2020 For the Six- Month Period Ended June 30, 2019 $ 10,869 $ 6,838 $ 17,819 $ 15,674 $ 7,118 $ 4,514 $ 11,693 $ 10,348
			$ 15,674 $ 10,348

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate and will be adjusted in the coming year.

The appropriations of compensation of employees and remuneration of directors for 2019 and 2018 that were resolved by the board of directors on March 18, 2020 and March 22, 2019, respectively, are as shown below:

respectively, are as shown below:
Compensation of employees Remuneration of directors	2019 Cash $ 52,013 25,073	2018
		Cash
		$ 31,723 20,960

There was no difference between the actual amounts of 2019 and 2018 compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2019 and 2018.

Information on the compensation of employees and remuneration of directors resolved by the Company's board of directors in 2020 and 2019 is available on the Market Observation Post System (MOPS) website of the Taiwan Stock Exchange.

j. Gain or loss on foreign currency exchange

Foreign exchange gains Foreign exchange losses Net gains (losses)	For the Three Months Ended June 30, 2020 $ 23,321 (38,110) ($ 14,789)	For the Three Months Ended June 30, 2019 $ 17,555 ( 4,639) $ 12,916	For the Six Months Ended June 30, 2020 $ 44,986 (52,724) ($ 7,738)	For the Six Months Ended June 30, 2019	For the Six Months Ended June 30, 2019
	( (	(	( (	(	$ 32,768 23,200) $ 9,568

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27. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

COME TAXES Income tax recognized in profit or loss Major components of income tax expense are as follows:	as follows:
For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 Current tax In respect of the current year $269,518 $ 170,650 Additional tax on undistributed earnings 18,783 12,941 Adjustments from previous years ( 11,544) ( 15) 276,757 183,576 Deferred tax In respect of the current year 45,507 ( 23,632) Income tax expense recognized in profit or loss $ 322,264 $ 159,944 Income tax recognized in other comprehensive income For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 Deferred tax In respect of the current year Exchange differences on translating the financial statements of foreign operations ( $ 33,836 ) ( $ 21,195 ) Unrealized gain (loss) on financial assets at FVTOCI ( 1) 4 Total income tax recognized in other comprehensive income ($ 33,837) ($ 21,191)	For the Three- Month Period Ended June 30, 2019	For the Six- Month Period Ended June 30, 2020	For the Six- Month Period Ended June 30, 2019
		$ 477,984 18,783 ( 11,544) 485,223 ( 3,138) $ 482,085 For the Six- Month Period Ended June 30, 2020 ( $ 45,299 ) 3 ($ 45,296)	$ 363,297 12,941 ( 15) 376,223 16,979 $ 393,202 For the Six- Month Period Ended June 30, 2019 $ 16,246 ( 4) $ 16,242
		( (	(

b. Income tax recognized in other comprehensive income

c. Income tax assessments

The income tax returns of the Company for the year ended December 31, 2017 had been assessed by the tax authorities.

The income tax returns of Standard Dairy Products, Charng Hui, Standard Beverage, Le Bonta Wellnessn International, and Domex Technology for the year ended December 31, 2018 had been assessed by the tax authorities.

28. EARNINGS PER SHARE

EARNINGS PER SHARE
Basic earnings per share Diluted earnings per share	For the Three-Month Period Ended June 30, 2020 $ 1.07 $ 1.07	For the Three-Month Period Ended June 30, 2019 $ 0.67 $ 0.67	For the Six- Month Period Ended June 30, 2020 $ 1.75 $ 1.74	For the Six- Month Period Ended June 30, 2019
					$ 1.54 $ 1.54

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

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Net profit for the period

Net profit for the period	Net profit for the period	Net profit for the period	Net profit for the period
For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 For the Six- Month Period Ended June 30, 2020 For the Six- Month Period Ended June 30, 2019 Earnings used in the computation of basic and diluted earnings per share $ 976,185 $ 611,146 $ 1,585,671 $ 1,399,795 Weighted average number of ordinary shares outstanding (in thousands of shares): For the Three- Month Period Ended June 30, 2020 For the Three- Month Period Ended June 30, 2019 For the Six- Month Period Ended June 30, 2020 For the Six- Month Period Ended June 30, 2019 Weighted average number of ordinary shares used in computation of basic earnings per share 908,420 908,420 908,420 908,420 Effect of potentially dilutive ordinary shares: Compensation of employees 295 269 736 552 Weighted average number of ordinary shares used in the computation of diluted earnings per share 908,715 908,689 909,156 908,972				For the Six- Month Period Ended June 30, 2019
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 Three- Month Period Ended June 30, 2020 908,420 295 908,715	For the Three- Month Period Ended June 30, 2019 908,420 269 908,689	For the Six- Month Period Ended June 30, 2020 908,420 736 909,156
					908,420 552 908,972

If the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were 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.

29. GOVERNMENT GRANTS

The Group received government grants, and recognized NT$35,681 thousand, NT$7,165 thousand, NT$42,426 thousand, and NT$7,165 thousand as government grants under other gains and losses for the three-month and six-month periods ended June 30, 2020 and 2019, respectively.

30. CASH FLOWS INFORMATION

Changes in liabilities arising from financing activities: For the Six-Month Period Ended June 30, 2020

Short-term borrowings Short-term bills payable Long-term borrowings Guarantee deposits Lease liabilities Other non-current liabilities		Opening Balance $ 1,382,955 99,968 6,000 20,044 347,615 2,934 $ 1,859,516	Cash Flows ( $ 349,061 ) ( 30,044 ) ( 6,000 ) 7,051 ( 52,823 ) ( 564) ($ 431,441)	Non-cash Changes Exchanging Rate Adjustments ( $ 24,083 ) - - ( 397 ) 4,703 16 ($ 19,761)		Closing Balance
						$ 1,009,811 69,924 - 26,698 299,495 2,386 $ 1,408,314

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For the Six-Month Period Ended June 30, 2019

Short-term borrowings Short-term bills payable Long-term borrowings Guarantee deposits Lease liabilities Other non-current liabilities		Opening Balance $ 1,731,478 119,904 27,000 19,961 139,110 4,734 $ 2,042,187	Cash Flows ( $ 670,847 ) ( 19,992 ) ( 9,000 ) ( 2,050 ) ( 40,097 ) ( 249) ($ 742,235)	Non-cash Changes Exchanging Rate Adjustments $ 17,854 - - 160 54,493 94 $ 72,601		Closing Balance
						$ 1,078,485 99,912 18,000 18,071 153,506 4,579 $ 1,372,553

31. CAPITAL MANAGEMENT

The Group'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, repay liabilities and dividend disbursement, etc. in the next 12 months. The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of debt and equity balance.

32. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy

June 30, 2020

Fair value hierarchy June 30, 2020
Financial assets at FVTPL Unlisted shares Mutual fund beneficiary certification Debt securities Total Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares December 31, 2019 Financial assets at FVTPL Unlisted shares Mutual fund beneficiary certification Total Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares	Level 1 $ - 1,483,675 - $ 1,483,675 $ 231,697 - $ 231,697 Level 1 $ - 667,673 $ 667,673 $ 252,351 - $ 252,351	Level 2 $ - - 30,190 $ 30,190 $ - - $ - Level 2 $ - - $ - $ - - $ -	Level 3 $ 6,200 - - $ 6,200 $ - 129,704 $ 129,704 Level 3 $ 7,575 - $ 7,575 $ - 124,055 $ 124,055	Total
				$ 6,200 1,483,675 30,190 $ 1,520,065 $ 231,697 129,704 $ 361,401 Total
				$ 7,575 667,673 $ 675,248 $ 252,351 124,055 $ 376,406

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June 30, 2019

June 30, 2019
Financial assets at FVTPL Unlisted shares Mutual fund beneficiary certification Total Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares		Level 1 $ - 1,254,749 $ 1,254,749 $ 245,854 - $ 245,854		Level 2 $ - - $ - $ - - $ -		Level 3 $ 7,664 - $ 7,664 $ - 100,598 $ 100,598		Total
								$ 7,664 1,254,749 $ 1,262,413 $ 245,854 100,598 $ 346,452

There were no transfers between Levels 1 and 2 for the six-month period ended June 30, 2020 and 2019.

2) Reconciliation of financial instruments at Level 3 fair value measurement For the Six-Month Period Ended June 30, 2020

For the Six-Month Period Ended June 30, 2020
Financial Assets Financial Assets at FVTPL Equity Instruments Balance at January 1 $ 7,575 Recognized in profit or loss (included in other gains and losses) ( 1,375 ) Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI) - Impact of exchange rates - Balance at June 30 $ 6,200 Recognized in other gains and losses - unrealized ($ 1,375) For the Six-Month Period Ended June 30, 2019 Financial Assets Financial Assets at FVTPL Equity Instruments Balance at January 1 $ 7,315 Recognized in profit or loss (included in other gains and losses) 349 Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI) - Impact of exchange rates - Balance at June 30 $ 7,664 Recognized in other gains and losses - unrealized $ 349	Financial Assets at FVTOCI Equity Instruments $ 124,055 - 5,673 ( 24) $ 129,704 $ - Financial Assets at FVTOCI Equity Instruments $ 77,165 - 23,423 10 $ 100,598 $ -		Total
		( ( (	$ 131,630 1,375 ) 5,673 24) $ 135,904 $ 1,375) Total
Financial Assets Balance at January 1 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) Impact of exchange rates Balance at June 30 Recognized in other gains and losses - unrealized
			$ 84,480 349 23,423 10 $ 108,262 $ 349

35 -

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

Financial Instrument Debt securities	Valuation Technique and Inputs
	Discounted cash flow: Future cash flows are discounted at a rate that reflects current borrowing interest rates of the bond issuers at the end of the reporting period.

4) Valuation techniques and inputs applied for Level 3 fair value measurement The valuation techniques of unlisted shares with no active market are mostly the market and asset valuation methods.

The market method takes into account the market prices and status of object similar to the investment objects to measure the latter's fair value.

The asset method mainly takes into account the investment objects' net asset values for fair value measurement.

b. Categories of financial instruments

Financial assets Financial assets at FVTPL Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Financial liabilities Financial liabilities at amortized cost (Note 2)	June 30, 2020 $ 1,520,065 11,186,668 361,401 5,477,343	December 31, 2019 $ 675,248 12,691,896 376,406 3,983,402	June 30, 2019
			$ 1,262,413 10,307,770 346,452 5,036,454

Note 1. The balances include financial assets at amortized cost, which comprise cash and cash equivalents, debt investments, notes receivable, trade receivables, other receivables and other financial assets.
Note 2. The balances include financial liabilities at amortized cost, which comprise shortterm borrowings, short-term bills payable, notes payables, long-term borrowings, and other financial liabilities.
c. Financial risk management objectives and policies

The Group's major financial instruments include cash and cash equivalents, equity and debt investments, mutual funds, trade receivables, trade payables, and borrowings. The Group'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 Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk, and other price risk), credit risk and liquidity risk.

36 -

1) Market risk

The Group'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 Group has monetary assets and monetary liabilities denominated in currencies other than the functional currency, which expose it to foreign currency risk. The Group monitors exchange rate fluctuations, and takes appropriate actions to manage the exchange rate risk.

The carrying amounts of the Group's monetary assets and monetary liabilities denominated in currencies other than the functional currency (including those eliminated on consolidation) at the end of the reporting period are set out in Note 36. Sensitivity analysis

The Group is mainly exposed to the fluctuation of RMB, USD, EUR, AUD and CHF. The following table details the Group's sensitivity to a 3% increase or decrease in 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%. The amount below indicates an increase (decrease) in pre-tax profit associated with the functional currency weakening by 3% against the relevant currency. For a 3% strengthening of the functional currency against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

RMB Impact For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 $ 20,806 (i) $ 3,306 (i) EUR Impact For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 $ 763 (iii) $ 2,802 (iii) CHF Impact For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 $ 2,112 (v) $ 641 (v)	USD Impact	USD Impact
	For the Six-Month Period Ended June 30, 2020 For the Six-Month Period Ended June 30, 2019 $ 18,681 (ii) $ 17,508 (ii) AUD Impact	For the Six-Month Period Ended June 30, 2019
	For the Six-Month Period Ended June 30, 2020 ($ 267) (iv)	For the Six-Month Period Ended June 30, 2019
		$ 2,445 (iv)
For the Six-Month Period Ended June 30, 2020 $ 2,112 (v)

(i) This was mainly attributable to the outstanding RMB bank deposits which were not hedged at the end of the reporting period.
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(ii) This was mainly attributable to the 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 outstanding EUR bank deposits and payables which were not hedged at the end of the reporting period.
(iv) This was mainly attributable to the outstanding AUD bank deposits and payables which were not hedged at the end of the reporting period.
(v) This was mainly attributable to the outstanding CHF bank deposits and payables which were not hedged at the end of the reporting period.
b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The Group pays attention to the fluctuations of interest rates in the market, and takes appropriate actions to manage the interest rate risk.

The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rate risk 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 Financial liabilities	June 30, 2020 $ 1,950,646 1,344,230 1,094,200 35,000	December 31, 2019 $ 1,658,861 1,791,538 1,172,500 45,000	June 30, 2019
			$ 872,618 1,299,903 2,064,740 50,000

Sensitivity analysis

The sensitivity analyses below were determined based on the Group's exposure to interest rate risk for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of the asset and liability outstanding at the end of the reporting period was outstanding for the reporting period. 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.

If interest rates had been 1% higher and all other variables were held constant, the Group's pre-tax profit for the six-month period ended June 30, 2020 and 2019 would increase (decrease) by NT$5,296 thousand and NT$10,074 thousand, respectively. If the interest rates had been 1% lower, there would be an equal and opposite impact on pre-tax profit.

c) Other price risk

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

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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 six-month period ended June 30, 2020 would have increased/decreased by NT$15,201 thousand, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the six months ended June 30, 2020 would have increased/decreased by NT$3,614 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

If equity prices had been 1% higher/lower, pre-tax profit for the six-month period ended June 30, 2019 would have increased/decreased by NT$12,624 thousand, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the six months ended June 30, 2019 would have increased/decreased by NT$3,465 thousand, 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 Group. As at the end of the reporting period, the Group's maximum exposure to credit risk (the maximum irrevocable amount exposed at risk) which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation (without considering collaterals or other credit enhancement tools) was the carrying amount of financial assets recognized in the consolidated balance sheets.

The table below analyzes the collaterals held as security and other credit enhancements, and their financial effect on the maximum exposure to risk, in respect of the financial assets recognized in the Group's consolidated balance sheets:

June 30, 2020

June 30, 2020
Credit-impaired financial instruments applicable based on IFRS 9	Carrying Amount $ 4,752,980 Carrying Amount $ 6,442,527 Carrying Amount $ 4,736,835	Maximum Exposure to Credit Risk Mitigated by
		Collateral Other Credit Enhancements Total $ 62,283 $ 2,494 $ 64,777 Maximum Exposure to Credit Risk Mitigated by		Total
Receivables December 31, 2019 Credit-impaired financial instruments applicable based on IFRS 9
		Collateral Other Credit Enhancements Total $ 76,270 $ 391 $ 76,661 Maximum Exposure to Credit Risk Mitigated by		Total
Receivables June 30, 2019 Credit-impaired financial instruments applicable based on IFRS 9
		Collateral $ 98,976	Other Credit Enhancements $ 12,202	Total
Receivables				$ 111,178

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3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2020, December 31, 2019 and June 30, 2019, the Group had available unutilized bank loan facilities in the amounts of NT$5,062,532 thousand, NT$5,186,434 thousand, and NT$9,009,839 thousand, respectively.

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

The following table details the Group's remaining contractual maturity for its nonderivative financial liabilities with agreed repayment periods. The table had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group may 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.

June 30, 2020

June 30, 2020
Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities Contract liabilities December 31, 2019 Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities Contract liabilities	On Demand or Less than 1 Month $ 619,402 5,651 - 868,871 74,832 $ 1,568,756 On Demand or Less than 1 Month $ 793,371 25,466 - 612,591 108,881 $ 1,540,309	1-3 Months $ 3,689,779 14,368 - 177,013 149,663 $ 4,030,823 1-3 Months $ 1,592,308 14,902 - 788,292 217,763 $ 2,613,265	3 Months to 1 Year $ 59,820 68,246 35,002 - - $ 163,068 3 Months to 1 Year $ 86,769 52,197 45,003 48,461 - $ 232,430	1-5 Years
				$ 26,698 233,840 - - - $ 260,538 1-5 Years
				$ 20,044 283,028 - - - $ 303,072

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June 30, 2019

June 30, 2019
Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities Contract liabilities	On Demand or Less than 1 Month $ 479,342 3,380 - 505,357 49,520 $ 1,037,599		1-3 Months $ 3,263,637 7,058 40,015 395,074 99,040 $ 3,804,824	3 Months to 1 Year $ 75,163 80,861 10,002 246,427 - $ 412,453		1-5 Years
						$ 18,071 65,108 - 6,005 - $ 89,184

The amounts included above for variable interest rate instruments of non-derivative financial liabilities were subject to change if variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

33. TRANSACTIONS WITH RELATED PARTIES

Transactions, balances, income and expenses between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides as disclosed elsewhere in other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related parties and relationships

Name of Related Party Relationship with the Group GeneFerm Biotechnology Co., Ltd. (GeneFerm) The Company is one of the directors

b. Sales of goods

Sales of goods
Related Party Category The Company is one of the directors	For the Three- Month Period Ended June 30, 2020		For the Three- Month Period Ended June 30, 2019		For the Six- Month Period Ended June 30, 2020		For the Six- Month Period Ended June 30, 2019
		$ 1,523		$ -		$ 6,582		$ -

Sales from related parties were conducted on normal commercial terms.

c. Purchases of goods

Purchases of goods
Related Party Category The Company is one of the directors	For the Three- Month Period Ended June 30, 2020		For the Three- Month Period Ended June 30, 2019		For the Six- Month Period Ended June 30, 2020		For the Six- Month Period Ended June 30, 2019
		$ 13,437		$ 8,756		$ 34,942		$ 13,632

Purchases from related parties were conducted on normal commercial terms.

d. Receivables from related parties

Line Item Trade receivables from related parties	Name of Related Party GeneFerm	June 30, 2020 $ 1,648	December 31, 2019 $ -	June 30, 2019 $ -

The outstanding receivables from related parties were unsecured.

41 -

e. Payables to related parties

Line Item Trade payables to related parties	Name of Related Party GeneFerm	June 30, 2020 $ 12,859	December 31, 2019 $ 26,141	June 30, 2019	June 30, 2019
					$ 9,194

The outstanding payables to related parties were unsecured.

f. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three- Month Period Ended June 30, 2020 $ 9,723 69 $ 9,792	For the Three- Month Period Ended June 30, 2019 $ 9,419 132 $ 9,551	For the Six- Month Period Ended June 30, 2020 $ 23,403 186 $ 23,589	For the Six- Month Period Ended June 30, 2019	For the Six- Month Period Ended June 30, 2019
					$ 23,258 260 $ 23,518

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

34. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings, issuance of bank acceptances, performance guaranty, and bond for customs clearance:

Pledge time deposits (included in other current assets) Pledge time deposits (included in other non-current assets) Property, plant and equipment - net Investment properties - net	June 30, 2020 $ 4,013 83,706 129,346 56,015 $ 273,080	December 31, 2019 $ 4,013 85,950 137,554 56,909 $ 284,426	June 30, 2019	June 30, 2019
				$ 1,010 90,360 145,671 57,803 $ 294,844

35. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of June 30, 2020 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$1,282 thousand.
c. Unrecognized commitments for acquisition of property, plant, and equipment of approximately NT$190,720 thousand.
d. Unrecognized commitments for acquiring approximately 38,117 tons of colostrum from dairymen.
SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Significant assets and liabilities denominated in foreign currencies other than functional currencies of the Group entities and the exchange rates between foreign currencies and respective
42 -

functional currencies were as follows: June 30, 2020

June 30, 2020
Financial assets Monetary items USD USD EUR RMB CHF CHF Financial liabilities Monetary items USD AUD	Foreign Currencies $ 17,494 4,656 765 165,481 1,450 812 1,141 438	Exchange Rate 29.63 (USD:NTD) 7.08 (USD:RMB) 33.27 (EUR:NTD) 4.19 (RMB:NTD) 31.12 (CHF:NTD) 7.42 (CHF:RMB) 29.63 (USD:NTD) 20.34 (AUD:NTD)	Carrying Amount
				$ 518,340 138,144 25,440 693,530 45,117 25,278 $ 1,445,849 $ 33,800 8,914 $ 42,714

December 31, 2019

December 31, 2019
Financial assets Monetary items USD USD EUR RMB AUD CHF CHF Financial liabilities Monetary items USD AUD SGD	Foreign Currencies	Exchange Rate 29.98 (USD:NTD) 6.98 (USD:RMB) 33.59 (EUR:NTD) 4.31 (RMB:NTD) 21.01 (AUD:NTD) 30.93 (CHF:NTD) 7.18 (CHF:RMB) 29.98 (USD:NTD) 21.01 (AUD:NTD) 22.28 (SGD:NTD)	Carrying Amount
	$ 26,052 6,480 2,331 10,142 2,058 1,341 591 1,003 762 520			$ 781,058 194,612 78,298 43,658 43,228 41,470 18,272 $ 1,200,596 $ 30,087 16,006 11,586 $ 57,679

43 -

June 30, 2019

	Foreign Currencies Exchange Rate	Foreign Currencies Exchange Rate	Carrying Amount	Carrying Amount
	Financial assets
Monetary items
USD	$	12,810 31.06 (USD:NTD)	$	397,846
USD		6,459 6.87 (USD:RMB)		200,631
EUR		2,640 35.38 (EUR:NTD)		93,406
RMB		24,373 4.52 (RMB:NTD)		110,191
AUD		3,739 21.80 (AUD:NTD)		81,499
CHF		900 31.86 (CHF:NTD)		28,670
CHF		635 7.05 (CHF:RMB)		20,233
			$	932,476
	Financial liabilities
Monetary items
USD		479 31.06 (USD:NTD)	$	14,884
CHF		865 7.05 (CHF:RMB)		27,541
			$	42,425
The Group is mainly exposed to RMB and USD. The following information			was aggregated by
the foreign functional currencies of the group entities, and the exchange rates			between respective
functional currencies and the presentation currency were disclosed. The significant				realized and
unrealized foreign exchange gains (losses)		were as follows:

For the Three-Month Period Ended June 30, 2020 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 14,780 ) 4.21 (RMB:NTD) ( 19 ) 30.99 (CHF:NTD) 10 ($ 14,789) For the Six-Month Period Ended June 30, 2020 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 9,967 ) 4.26 (RMB:NTD) 2,221 31.12 (CHF:NTD) 8 ($ 7,738)	For the Three-Month Period Ended June 30, 2020 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 14,780 ) 4.21 (RMB:NTD) ( 19 ) 30.99 (CHF:NTD) 10 ($ 14,789) For the Six-Month Period Ended June 30, 2020 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 9,967 ) 4.26 (RMB:NTD) 2,221 31.12 (CHF:NTD) 8 ($ 7,738)	For the Three-Month Period Ended June 30, 2019	For the Three-Month Period Ended June 30, 2019	For the Three-Month Period Ended June 30, 2019
		Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) $ 7,998 4.55 (RMB:NTD) 4,988 31.06 (CHF:NTD) ( 70) $ 12,916 For the Six-Month Period Ended June 30, 2019	Net Foreign Exchange Gains (Losses)
Exchange Rate 1 (NTD:NTD) 4.26 (RMB:NTD) 31.12 (CHF:NTD)		Exchange Rate 1 (NTD:NTD) 4.56 (RMB:NTD) 31.86 (CHF:NTD)	Net Foreign Exchange Gains (Losses)
	( (		( (	$ 10,754 1,129 ) 57) $ 9,568

37. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and b. Information about investees:
1) Financings provided to others: See Table I attached.
2) Endorsements/guarantees provided to others: See Table II attached.
3) Marketable securities held (excluding investments in subsidiaries): See Table III attached.
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.
44 -
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 paidin 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: See Table IV attached.
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table V attached.
9) Trading in derivative instruments: None.
10) Others: Intercompany relationships and significant intercompany transactions: See Table VI attached.
11) Information on investees (excluding investees of mainland China): See Table VII attached.
c. Information on investments in mainland China
1) The name of the investee in mainland China, the main businesses and products, its issued capital, the method of investment, information on inflow or outflow of capital, percentage of ownership, investment income (losses), ending balance of investment, amount repatriated as dividends from the investee, and the limit of investment on investee: See Table VIII attached.
2) Significant direct or indirect (through a third region) 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. See Table IX attached.

38. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of corporation. Accordingly, the Group's reportable segments were as follows:

Standard Foods segment - The Company

Standard Dairy Products segment - Standard Dairy Products

China Standard segment - Shanghai Standard, China Standard Investment, China Standard Foods, and Xiamen Standard Other segments - Other than the above subsidiaries

The following was an analysis of the Group's revenue and results from continuing operations by reportable segments:

45 -

Standard Foods Segment	Standard Dairy Products Segment	China Standard Segment		Other Segments	Adjustments and Eliminations	Adjustments and Eliminations	Total
$ 5,816,761 689,333 $ 6,506,094 $ 12,622 $ 501 $ 112,912 $ 3,580 $ 1,506,551 $ 5,685,254 706,593 $ 6,391,847 $ 10,795 $ 686 $ 106,004 $ 5,339 $ 1,494,441	$ 1,274,472 401,269 $ 1,675,741 $ 4,470 $ 10 $ 24,402 $ 1,515 $ 242,436 $ 1,250,145 434,485 $ 1,684,630 $ 2,724 $ 12 $ 20,886 $ 1,179 $ 262,166	$ 6,651,976 170 $ 6,652,146 $ 47,072 $ 28,612 $ 117,021 $ 17,532 $ 352,457 $ 5,280,254 102 $ 5,280,356 $ 17,716 $ 16,458 $ 111,352 $ 13,895 $ 73,035	(	$ 880,860 6,152 $ 887,012 $ 5,659 $ 5,071 $ 42,257 $ 5,399 $ 27,080) $ 1,191,967 1,472 $ 1,193,439 $ 3,079 $ 6,639 $ 37,183 $ 5,344 $ 1,766	( ( ( ( ( ( ( ( ( ( (	$ - 1,096,924) $ 1,096,924) $ 2,877) $ 2,877) $ 1,759) $ - $ 788 $ - 1,142,652) $ 1,142,652) $ 2,393) $ 2,393) $ 2,804) $ - $ 22,942)	$ 14,624,069 -
							$ 14,624,069
							$ 66,946
							$ 31,317
							$ 294,833
							$ 28,026
							$ 2,075,152 -

							$ 2,075,152
							$ 13,407,620 -
							$ 13,407,620
							$ 31,921
							$ 21,402
							$ 272,621
							$ 25,757
							$ 1,808,466 -
							$ 1,808,466

46 -

Standard Foods Corporation and Subsidiaries

FINANCING PROVIDED TO OTHERS

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 1

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Balance at June 30	Actual Borrowing Amount	Interest Rate	Nature of Financing (Note 2)	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debts	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limits	Note
													Item	Value
0 0 0 1 1 1 1 2 2 3 4 5 6	Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Investment (China) Limited Standard Investment (China) Limited Standard Investment (China) Limited Standard Investment (China) Limited Shanghai Standard Foods Co., Ltd. Shanghai Standard Foods Co., Ltd. Le Bonta Wellness Co., Ltd. Shanghai Le Ben De Health Technology Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd.	Dermalab S.A. Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd Shanghai Dermalab Corporation Standard Foods (Xiamen) Co., Ltd Standard Foods (China) Co., Ltd. Le Bonta Wellness Co., Ltd. Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Investment (China) Limited Standard Investment (China) Limited Standard Investment (China) Limited Standard Investment (China) Limited	Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties	Y Y Y Y Y Y Y Y Y Y Y Y Y	$ 47,070 336,752 505,128 167,412 701,312 438,320 167,412 635,564 460,236 21,916 10,463 175,328 87,664	$ 46,673 334,824 502,236 167,412 502,236 418,530 167,412 585,942 439,457 - 10,463 8,371 8,371	$ 45,117 334,824 292,971 84,317 312,261 58,364 87,494 122,700 439,457 - - 1,657 2,595	1.000% 1.000% 1.000% 2.500% 2.500% 2.500% 2.500% 2.500% 2.500% 2.500% 2.500% 2.500% 2.500%	2 2 2 2 2 2 2 2 2 2 2 2 2	$ - - - - - - - - - - - - -	Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation Need for operation	$ - - - - - - - - - - - - -	－－－－－－－－－－－－－	$ - - - - - - - - - - - - -	$ 6,867,612 (Note 3) 3,433,806 (Note 4) 3,433,806 (Note 4) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,198,923 (Note 7) 1,198,923 (Note 7) 83,135 (Note 8) 11,432 (Note 9) 200,824 (Note 10) 125,372 (Note 11)	$ 6,867,612 (Note 3) 6,867,612 (Note 5) 6,867,612 (Note 5) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,671,153 (Note 6) 1,198,923 (Note 7) 1,198,923 (Note 7) 83,135 (Note 8) 11,432 (Note 9) 200,824 (Note 10) 125,372 (Note 11)	Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12

Note 1: "0" for the Company. Subsidiaries are numbered in order from "1."

Note 2: Reasons for financing are as follows:

a. Please fill in 1 for need for operation.

b. Please fill in 2 for short-term financing.

Note 3: The individual and total amount shall not exceed 40% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be NT$6,867,612 thousand (the net value per financial statements of NT$17,169,030 thousand x 40% as of March 31, 2020). Note 4: The individual amount shall not exceed 20% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be NT$3,433,806 thousand (the net value per financial statements of NT$17,169,030 thousand x 20% as of March 31, 2020). Note 5: The total amount shall not exceed 40% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be NT$6,867,612 thousand (the net value per financial statements of NT$17,169,030 thousand x 40% as of March 31, 2020). Note 6: The individual and total amount shall not exceed 40% of net value of Standard Investment (China) Co., Ltd. per the latest financial statements, which was calculated to be NT$1,671,153 thousand (the net value per financial statements of NT$4,177,883 thousand x 40% as of March 31, 2020). Note 7: The individual and total amount shall not exceed 40% of net value of Shanghai Standard Foods Co., Ltd. per the latest financial statements, which was calculated to be NT$1,198,923 thousand (the net value per financial statements of NT$2,997,307 thousand x 40% as of March 31, 2020). Note 8: The individual and total amount shall not exceed 40% of net value of Le Bonta Wellness Co., Ltd. per the latest financial statements, which was calculated to be NT$83,135 thousand (the net value per financial statements of NT$207,837 thousand x 40% as of March 31, 2020). Note 9: The individual and total amount shall not exceed 40% of net value of Shanghai Le Ben De Health Technology Co., Ltd. per the latest financial statements, which was calculated to be NT$11,432 thousand (the net value per financial statements of NT$28,581 thousand x 40% as of March 31, 2020).

Note 10: The individual and total amount shall not exceed 40% of net value of Shanghai Le Ho Industrial Co., Ltd. per the latest financial statements, which was calculated to be NT$200,824 thousand (the net value per financial statements of NT$502,060 thousand x 40% as of March 31, 2020). Note 11: The individual and total amount shall not exceed 40% of net value of Shanghai Le Min Industrial Co., Ltd. per the latest financial statements, which was calculated to be NT$125,372 thousand (the net value per financial statements of NT$313,431 thousand x 40% as of March 31, 2020). Note 12: The amount was eliminated upon consolidation.

47 -

Standard Foods Corporation and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 2

(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 5)	Guarantee Provided by Subsidiary (Note 5)	Guarantee Provided to Subsidiaries in Mainland China (Note 5)	Note
		Name	Nature of Relationship (Note 2)
0	Standard Foods Corporation	Standard Beverage Ltd.	(2)	$ 13,735,224 (Note 3)	$ 208,150	$ 208,150	$ 22,500	$ -	1.21%	$ 17,169,030 (Note 4)	Y	-	-

Note 1: "0" for the Company. Subsidiaries are numbered in order from "1."

Note 2: There are seven types of relationships between the guaranteed party and the Company:

a. Trading partner.
b. The Company directly or indirectly holds more than 50 percent of the voting rights of the investee company.
c. A company that directly or indirectly holds more than 50 percent of the voting rights of the Company.
d. The Company directly or indirectly holds more than 90 percent of the voting rights of the investee company.
e. Guaranteed by construction contracts formed due to the need of construction projects, in which the companies in the same industry or joint builders provide endorsement/guarantee to one another.
f. The guarantees were provided by shareholders based on their proportionate share in a jointly invested company.
g. Companies in the same industry provided among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: The individual amount shall not exceed 80% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be NT$13,735,224 thousand (the net value per financial statements of NT$17,169,030 thousand x 80% as of March 31, 2020).
Note 4: The total amount shall not exceed 100% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be NT$17,169,030 thousand (the net value per financial statements of NT$17,169,030 thousand x 100% as of March 31, 2020).

Note 5: Guarantee provided by the listed parent company to a subsidiary, guarantee provided by the subsidiary to the listed parent company, and guarantee provided to subsidiaries in mainland China are coded "Y."

48 -

Standard Foods Corporation and Subsidiaries

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES)

JUNE 30, 2020

TABLE 3

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		JUNE 30, 2020	JUNE 30, 2020		Note
					Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Foods Corporation	Shares Shares Shares Shares Mutual funds Mutual funds Mutual funds Mutual funds Bonds Mutual funds Shares Shares Shares Shares Shares Shares Shares	Far Eastern International Commercial Bank Co., Ltd. Chunghwa Telecom Co., Ltd. GeneFerm Biotechnology Co., Ltd. Dah Chung Bills Finance Corp. Jih Sun Money Market Fund Mega Diamond Money Market Fund CTBC Hwa-Win Money Market Fund FSITC Taiwan Money Market Fund CODEIS Smart Cash Note Walden VC 2, L.P. Techgains Pan-Pacific Corporation Authenex, Inc. Global Strategic Investment Co., Ltd. Paradigm Venture Capital Corporation U-Teck Environment Corporation, Ltd. Octamer, Inc. - Series E Preferred Stock Octamer, Inc. - Series F Preferred Stock	The Company is one of the directors	Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	1,379,027 48,600 2,145,110 1,243,213 43,475,249 26,764,374 5,410,767 2,746,448 10,000 Note 1 500,000 2,424,242 850,500 180,376 11,200 800,000 107,815	$ 15,307 5,686 53,199 14,173 648,542 337,887 60,000 42,304 30,190 - - - 4,338 1,862 - - -	- - 7.8% 0.3% - - - - - 1.9% 0.9% 5.5% 1.9% 7.0% 0.2% 7.8% 1.0%	$ 15,307 5,686 53,199 14,173 648,542 337,887 60,000 42,304 30,190 - - - 4,338 1,862 - - -

(Continued)

49 -

(Continued from the previous page)

Holding Company Name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		JUNE30,2020	JUNE30,2020		Note
					Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Dairy Products Taiwan Limited Charng Hui Ltd.	Shares Shares Shares Shares Shares Shares Mutual funds Mutual funds Mutual funds Mutual funds Mutual funds Shares Shares Shares Shares Shares Mutual funds Mutual funds Mutual funds Shares Shares	Fortemedia, Inc. - Series D Preferred Stock Fortemedia, Inc. - Series E Preferred Stock Fortemedia, Inc. - Series F Preferred Stock Fortemedia, Inc. - Series G Preferred Stock Fortemedia, Inc. - Series I Preferred Stock Fortemedia, Inc. - Common Stock FSITC Taiwan Money Market Fund CTBC Hwa-Win Money Market Fund Mega Diamond Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund Standard Foods Corporation Formosa Plastics Corporation China Steel Corporation Polytronics Technology Corporation Taiwan Semiconductor Manufacturing Co., Ltd. Fuh Hwa Global Strategic Allocation FoF Franklin Templeton SinoAm Franklin Templeton Global Bond Fund of Funds Taishin 1699 Money Market Fund Hong Da Leasing & Finance Co., Ltd. CNEX Co., Ltd.	Parent of Charng Hui Ltd. Charng Hui Ltd. is one of the directors Charng Hui Ltd. is one of the directors	Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	3,455 71,397 29,173 31,135 29,102 12,938 4,222,649 4,509,746 3,960,961 5,866,056 4,128,231 6,669,471 91,440 803,258 1,596,000 90,000 1,000,000 1,453,360 470,179 8,297,000 1,000,000	$ - - - - - - 65,042 50,008 50,005 87,507 56,224 420,177 8,010 16,627 104,698 28,170 10,850 18,114 6,404 - -	1.2% 1.2% 1.2% 1.3% 1.3% 1.2% - - - - - 0.7% - - 2.0% - - - - 23.7% 6.0%	$ - - - - - - 65,042 50,008 50,005 87,507 56,224 420,177 8,010 16,627 104,698 28,170 10,850 18,114 6,404 - -	Note 2

(Continued)

50 -

(Continued from the previous page)

Holding Company Name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		JUNE 30, 2020	JUNE 30, 2020		Note
					Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Beverage Ltd. Domex Technology Corporation Accession Limited	Mutual funds Mutual funds Shares Shares Mutual funds	Fuh Hwa Greater China Mid & Small Cap Fund Franklin Templeton SinoAm Franklin Templeton Global Bond Fund of Funds - Accu. InnoComm Mobile Technology Corp. AsiaVest Liquidation Co. Term Liquidity Fund		Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current	225,000 282,988 3,600,000 200 14,351	$ 2,792 3,527 114,624 907 44,469	- - 13.4% 0.7%	$ 2,792 3,527 114,624 907 44,469

Note 1: The Fund had no number of unit.

Note 2: The amount was eliminated upon consolidation.

51 -

Standard Foods Corporation and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 4

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationships			Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Trade Receivable (Payable)	Notes/Trade Receivable (Payable)	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) Limited Standard Foods (China) Co., Ltd. Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Foods (China) Co., Ltd.	Standard Dairy Products Taiwan Limited Standard Foods Corporation Standard Investment (China) Limited Shanghai Standard Foods Co., Ltd. Standard Investment (China) Limited Standard Foods (China) Co., Ltd. Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Foods (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 Parent company of Standard Foods (Xiamen) Co., Ltd. Standard Investment (China) Co., Ltd.'s subsidiary Brother company of Standard Foods (Xiamen) Co., Ltd. Brother company of Standard Foods (China) Co., Ltd.	Sales Purchases Purchases Sales Sales Purchases Purchases Sales Sales Purchases Sales Purchases Sales Purchases	( $ 689,333 ) 401,270 689,333 ( 401,270 ) ( 802,714 ) 173,888 802,714 ( 173,888 ) ( 2,362,559 ) 2,362,559 ( 1,662,290 ) 1,662,290 ( 123,357 ) 123,357	10.60% 11.07% 57.17% 23.95% 74.01% 15.31% 16.61% 2.83% 99.55% 48.84% 75.42% 34.36% 5.60% 5.05%	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	－－－－－－－－－－－－－－	－－－－－－－－－－－－－－	$ 196,205 - ( 196,205 ) - 339,683 ( 64,191 ) ( 339,683 ) 64,191 1,021,377 ( 1,021,377 ) 632,525 ( 632,525 ) 84,627 ( 84,627 )	10.74% - 49.12% - 97.38% 38.41% 17.00% 3.11% 99.51% 51.11% 88.20% 31.65% 11.80% 29.82%	Note Note Note Note Note Note Note Note Note Note Note Note Note Note

Note: The amounts presented above were eliminated upon consolidation.

52 -

JUNE 30, 2020

TABLE 5

Standard Foods Corporation and Subsidiaries

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

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationships	Ending Balance for Trade Receivable - Related Parties	Ending Balance for Trade 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 Standard Foods Corporation Standard Foods Corporation Shanghai Standard Foods Co., Ltd. Shanghai Standard Foods Co., Ltd. Standard Foods (China) Co., Ltd. Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd	Standard Dairy Products Taiwan Limited Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Investment (China) Limited Standard Foods (Xiamen) Co., Ltd Standard Investment (China) Limited	The Company's subsidiary The Company's subsidiary The Company's subsidiary Brother company of Shanghai Standard Foods Co., Ltd. Brother company of Shanghai Standard Foods Co., Ltd. Parent company of Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd.'s subsidiary Parent company of Standard Foods (Xiamen) Co., Ltd.	Trade receivables Other receivables Financing receivables Other receivables Financing receivables Other receivables Trade 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	$ 196,205 $ 397,364 $ 593,569 $ 334,824 $ 385 $ 335,209 $ 292,971 $ 128 $ 293,099 $ 339,683 $ 122,700 $ 10,250 $ 472,633 $ 2,254 $ 439,457 $ 5,798 $ 447,509 $ 1,021,377 $ 15,783 $ 1,037,160 $ 78 $ 312,261 $ 4,514 $ 316,853 $ 632,525 $ 7,452 $ 639,977	8.17 3.86 2.38 3.52 10.11 3.84		$ - - $ - $ - - $ - $ - - $ - $ - - - $ - $ - - - $ - $ - - $ - $ - - - $ - $ - - $ -		$ 45,662 (Note 1) $3,204(Note 1) $ 48,866(Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ 181,038 (Note 1) - (Note 1) $ 5,503(Note 1) $ 186,541(Note 1) $ 2,254 (Note 1) - (Note 1) - (Note 1) $ 2,254(Note 1) $ 547,335 (Note 1) $9,585(Note 1) $ 556,920(Note 1) $ 15 (Note 1) - (Note 1) - (Note 1) $ 15(Note 1) $ 392,831 (Note 1) $ 9,053(Note 1) $ 401,884(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 1: Amounts received before August 7, 2020.

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

53 -

Standard Foods Corporation and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 6

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)		Transactions Details	Transactions Details
				Financial Statement Accounts	Amount (Note 4)	Payment Terms	% to Consolidated Total Sales or Assets (Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard ShanghaiStandard	Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Beverage Standard Beverage Standard Beverage Dermalab China Standard Foods China Standard Foods China Standard Foods Xiamen Standard Xiamen Standard Xiamen Standard China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Foods China Standard Foods China Standard Foods China StandardFoods	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Trade receivables - related parties Other receivables - related parties Sales Purchases Royalty revenue Other receivables - related parties Service revenue (recognized under sundry revenue) Purchases Financing receivables - related parties Financing receivables - related parties Other receivables - related parties Interest income Financing receivables - related parties Other receivables - related parties Interest income Trade receivables - related parties Financing receivables - related parties Other receivables - related parties Trade payables - related parties Other payables - related parties Sales Purchases Interest income Other expenses Research and development expenses Trade receivables - related parties Trade payables - related parties Sales Purchases	$ 196,205 397,364 689,333 401,270 4,413 116 660 586 45,117 334,824 385 388 292,971 128 129 339,683 122,700 10,250 64,191 9,505 802,714 173,888 1,082 87 3,913 6,870 4,901 9,571 9,289	According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions Interest rate 1.000% per annum Interest rate 1.000% per annum According to the general conditions Interest rate 1.000% per annum Interest rate 1.000% per annum According to the general conditions Interest rate 1.000% per annum According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the generalconditions	0.8% 1.6% 4.7% 2.7% - - - - 0.2% 1.3% - - 1.2% - - 1.3% 0.5% - 0.3% - 5.5% 1.2% - - - - - 0.1% 0.1%

(Continued)

54 -

(Continued from the previous page)

(Continued	from the previous page)
No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)		Transactions Details
				Financial Statement Accounts	Amount (Note 4)	Payment Terms	% to Consolidated Total Sales or Assets (Note 3)
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment	Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods Shanghai Dermalab Shanghai Dermalab Shanghai Dermalab Shanghai Dermalab Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness	3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Trade receivables - related parties Financing receivables - related parties Other receivables - related parties Sales Interest income Trade receivables - related parties Financing receivables - related parties Other receivables - related parties Trade payables - related parties Other payables - related parties Sales Purchases Interest income Other income Rental expenses Financing receivables - related parties Other receivables - related parties Interest income Expenses (social expenses and other expenses) Trade receivables - related parties Financing receivables - related parties Other receivables - related parties Trade payables - related parties Other payables - related parties Sales Purchases Interest income Other income Financing receivables - related parties Other receivables - related parties Trade payables - related parties Sales Purchases Interest income	$ 2,254 439,457 5,798 5,295 5,650 55 58,364 5,501 1,021,377 15,783 256 2,362,559 1,805 5,601 47 84,317 1,231 1,253 9 78 312,261 4,514 632,525 7,452 268 1,662,290 7,645 4,597 87,494 1,047 851 7 4,502 1,068	According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions Interest rate 2.500% per annum According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions Interest rate 2.500% per annum	- 1.7% - - - - 0.2% - 4.0% 0.1% - 16.2% - - - 0.3% - - - - 1.2% - 2.5% - - 11.4% 0.1% - 0.3% - - - - -

(Continued)

55 -

(Continued from the previous page)

(Continued	from the previous page)
No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)		Transactions Details
				Financial Statement Accounts	Amount (Note 4)	Payment Terms	% to Consolidated Total Sales or Assets (Note 3)
2 2 2 2 2 2 2 3 3 4 4 4 4 4 4 4 5	China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment Shanghai Dermalab Shanghai Dermalab China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods Le Bonta Wellness	Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Ben De Dermalab Dermalab Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness Le Bonta Wellness Xiamen Standard Xiamen Standard Xiamen Standard Shanghai Le Ben De	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Financing payables - related parties Other payables - related parties Interest expenses Financing payables - related parties Other payables - related parties Interest expenses Purchases Trade payables - related parties Purchases Other receivables - related parties Sales Rental income Other expenses Trade payables - related parties Sales Purchases Sales	$ 1,657 15 17 2,595 22 22 1,055 7,349 19,728 959 164 1,759 2,126 84,627 8 123,357 1,046	Interest rate 2.500% per annum According to the general conditions Interest rate 2.500% per annum Interest rate 2.500% per annum According to the general conditions Interest rate 2.500% per annum According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions According to the general conditions	- - - - - - - - 0.1% - - - - 0.3% - 0.8% -

Note 1: Where the parent company and its subsidiaries do business with each other, information shall be stated separately in the "No." column and numbered as follows:

a. Parent company is 0.
b. Subsidiaries are numbered in order by Arabic numerals from 1.

Note 2: The related parties have the following three relationships:

a. Parent company to its subsidiaries.

b. Subsidiaries to its parent company.

c. Subsidiaries to subsidiaries.

Note 3: The transaction amounts are calculated as percentage of consolidated total revenue or total assets; balance sheet accounts are calculated as percentage of consolidated total assets; amounts of income statement accounts are calculated as percentage of consolidated total revenues.

Note 4: The amount was eliminated upon consolidation.

56 -

Standard Foods Corporation and Subsidiaries

INFORMATION ON INVESTEES (EXCLUDING INVESTEES OF MAINLAND CHINA)

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 7

(In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of June 30, 2020	As of June 30, 2020	As of June 30, 2020	Net Income (Loss) of the Investee	Share of Profits (Loss)	Note
				June 30, 2020	December 31, 2019	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 Ltd. Le Bonta Wellness International Corporation Standard Foods, LLC. 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 Taipei, Taiwan U.S.A. Switzerland Spain Hong Kong	Investing Investing Manufacture and sale of dairy products and beverages Investing Manufacture and sale of computer peripherals and computer appliances Manufacture and sale of beverages Sale of health food Sale of health food Development and sale of cosmetics Sale of cosmetics Investing	$ 3,936,267 4,710,865 300,853 230,000 114,116 79,072 14,350 9,056 335,215 96 4,708,566	$ 3,936,267 4,710,865 300,853 230,000 114,116 79,072 14,350 - 266,587 96 4,708,566	123,600,000 150,124,815 30,000,000 24,100,000 10,374,399 7,907,000 Note 4 Note 4 2,600 3,000 150,050,815	100% 100% 100% 100% 52% 100% 100% 100% 100% 100% 100%	$ 3,387,430 5,225,815 802,633 286,012 231,950 83,805 8,712 8,889 180,007 - 5,225,104	$ 93,542 144,633 194,641 2,913 12,040 1,467 ( 70 ) - 6,189 - 144,743	$ 90,278 (Note 1) 144,633 196,667 (Note 2) 2,913 6,262 1,463 (Note 3) ( 70 ) -	Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Second-tier subsidiary (Note 5) Third-tier subsidiary (Note 5) Second-tier subsidiary (Note 5)

Note 1: This amount was the share of profit of the investee of NT$93,542 thousand minus the unrealized gain on sidestream transactions of NT$3,264 thousand.

Note 2: This amount was the share of profit of the investee of NT$194,641 thousand plus the realized gain on upstream transactions of NT$2,026 thousand.

Note 3: This amount was the share of loss of the investee of NT$1,467 thousand minus the unrealized gain on upstream transactions of NT$4 thousand. Note 4: This is a limited company with no issued shares.

Note 5: The amount was eliminated upon consolidation.

57 -

Standard Foods Corporation and Subsidiaries

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020

TABLE 8

(In Thousands of New Taiwan Dollars)

Investee Company in Mainland China	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2020	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2020	Remittance or Recovery of Funds	Remittance or Recovery of Funds	Accumulated Outward Remittance for Investment from Taiwan as of June 30, 2020	Net Income (Loss) of the Investee	% of Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of June 30, 2020	Accumulated Repatriation of Investment Income as of June 30, 2020	Note
						Outward	Inward
Shanghai Standard Foods Co., Ltd. Standard Investment (China) Limited Standard Foods (China) Co., Ltd. Shanghai Dermalab Corporation Le Bonta Wellness 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 Manufacture and sale of edible oil products and nutritional foods Sale of nutritional foods, cosmetic and engage in import and export business Sale of nutritional foods and engage in import and export business Sale of nutritional foods and engagement in export business Manufacture and sale of edible oil products and nutritional foods Management of properties Management of properties	$ 3,949,575 3,755,530 1,631,668 93,989 380,418 31,220 1,307,582 607,717 378,009	(2) (Note 3) (2) (Note 5) (3) (Note 6) (3) (Note 6) (1) and (3) (Note 7) (3) (Notes 4 and 8) (3) (Note 6) (2) (Note 5) (2) (Note 5)	$ 3,949,575 (Note 4) 3,718,677 (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 6) - (Note 6) 181,048 (Note 7) 31,220 (Note 4) - (Note 6) 607,717 (Note 5) 378,009 (Note 5)	$ 87,875 161,858 ( 42,837 ) ( 20,331 ) ( 14,613 ) 255 ( 20,211 ) ( 9,717 ) ( 5,707 )	100.0% 99.0% 99.0% 99.0% 99.5% 100.0% 99.0% 100.0% 100.0%	$ 87,281 (Note 9) 160,239 (Note 9) ( 42,841 ) (Note 9) ( 20,128 ) (Note 10) ( 14,541 ) (Note 10) 255 (Note 10) ( 17,547 ) (Note 10) ( 9,717 ) (Note 10) ( 5,707 ) (Note 10)	$ 3,000,069 4,434,119 1,744,112 4,953 191,394 28,153 1,277,026 486,468 303,741	$ - - - - - - - - -	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 June 30, 2020		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$8,919,525		$8,919,525			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. (Please specify the investor company in third region.)

c. Other methods.

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 statements were audited and certified by an international accounting firm in cooperation with an ROC accounting firm.
2) The financial statements were audited by the CPA of the parent company in Taiwan.
3) Others.
58 -

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 six-month period ended June 30, 2020. The investment remained at NT$4,034,074 thousand. Of the NT$4,034,074 thousand, NT$53,279 thousand has been retained in Accession Limited. The remaining balance thereof, amounting to NT$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 NT$3,980,795 thousand, NT$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 in Shanghai Standard Foods Co., Ltd. and Shanghai Le Ben De Health Technology Co., Ltd. was NT$3,949,575 thousand and NT$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 NT$181,048 thousand.

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

Note 9: Recognition of investment income (loss) is based on the financial statements of the investee reviewed by CPAs of the parent company in Taiwan during the same period, as described in Note 2(b)3.

Note 10: The recognition of investment income (loss) is based on the financial statements of the investee not reviewed by CPAs during the same period, as described in Note 2(b)3.

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 review period. Hence, according to the Investment Commission of the MOEA, there is no upper limit on the amount of investment.

Note 12: The amount was eliminated upon consolidation.

59 -

Standard Foods Corporation

INFORMATION OF MAJOR SHAREHOLDERS

JUNE 30, 2020

TABLE 9

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	157,008,400 133,125,408 108,503,160	17.15% 14.54% 11.85%

Note 1: The major shareholders in this table are shareholders holding more than 5% of the ordinary and preference shares that have completed delivery without physical registration (including treasury shares) on the last business day of each quarter calculated by the Taiwan Depository & Clearing Corporation. The share capital recorded in the Company's consolidated financial report and the number of shares actually delivered by the Company without physical registration may differ due to calculation basis.
Note 2: If the above shares are entrusted by the shareholders, the information thereto shall be disclosed by the individual trust account opened by the trustees. For information on shareholders, who declare to be insiders holding more than 10% of shares in accordance with the Securities and Exchange Act, and their shareholdings including their shareholdings plus their delivery of trust and shares with the right to make decisions on trust property, please refer to MOPS.
60 -

AI assistant

SFC — Interim / Quarterly Report 2020

51753_rns_2020-11-13_7f0f4d25-d252-4ff1-900e-3f4d4cae0272.pdf

Standard Foods Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

Standard Foods Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS

Standard Foods Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Standard Foods Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Standard Foods Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six-Month Period Ended June 30, 2020 and 2019

(Continued from the previous page)

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

Write-down of Inventory

6. CASH AND CASH EQUIVALENTS

Investments in equity instruments at FVTOCI

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

12. INVENTORIES

13. PREPAYMENTS

14. SUBSIDIARIES

Subsidiaries included in consolidated financial statements.

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

17. INVESTMENT PROPERTIES

18. OTHER INTANGIBLE ASSETS

19. OTHER ASSETS

20. BORROWINGS

a. Short-term borrowings

21. NOTES PAYABLE AND TRADE PAYABLES

22. OTHER LIABILITIES

23. RETIREMENT BENEFIT PLANS

24. EQUITY

a. Share capital

1) Ordinary shares

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

25. REVENUE

For the Six Months Ended June 30, 2020

26. NET PROFIT

b. Other income

f. Depreciation and amortization

g. Operating expenses directly related to investment properties

h. Employee benefit expenses

j. Gain or loss on foreign currency exchange

27. INCOME TAXES

a. Income tax recognized in profit or loss

b. Income tax recognized in other comprehensive income

c. Income tax assessments

28. EARNINGS PER SHARE

Net profit for the period

29. GOVERNMENT GRANTS

30. CASH FLOWS INFORMATION

Changes in liabilities arising from financing activities: For the Six-Month Period Ended June 30, 2020

For the Six-Month Period Ended June 30, 2019

31. CAPITAL MANAGEMENT

32. FINANCIAL INSTRUMENTS

June 30, 2020

June 30, 2019

2) Reconciliation of financial instruments at Level 3 fair value measurement For the Six-Month Period Ended June 30, 2020

1) Market risk

c) Other price risk

Sensitivity analysis

2)

June 30, 2020

3) Liquidity risk

June 30, 2019

33. TRANSACTIONS WITH RELATED PARTIES

a. Related parties and relationships

b. Sales of goods

c. Purchases of goods

d. Receivables from related parties

SFC Interim / Quarterly Report 2020