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SFC Interim / Quarterly Report 2021

Nov 12, 2021

51753_rns_2021-11-12_77fb8323-a495-4bd8-9d79-16e05bb3c3a0.pdf

Interim / Quarterly Report

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Standard Foods Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Report for the Three Months Ended March 31, 2021 and 2020

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 March 31, 2021 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

By

TER-FUNG TSAO Chairman

May 5, 2021

  • 2 -

INDEPENDENT AUDITORS’ REVIEW REPOR

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 March 31, 2021 and 2020 and the related consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020 and for the nine months ended March 31, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, 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 non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2021 and 2020, combined total assets of these non-significant subsidiaries were NT$8,665,638 thousand and NT$7,541,126 thousand, respectively, representing 32% and 29%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$2,589,787 thousand NT$2,616,520 thousand, respectively, representing 32% and 32%, respectively, of the consolidated total liabilities; for the three-month periods ended March 31, 2020 and 2019, the amounts of combined comprehensive income of these subsidiaries were NT$146,948 thousand and NT$(5,585) thousand, respectively, representing 22% and (1%), respectively, of the consolidated total comprehensive income. As disclosed in Note 36 to the consolidated financial statements, the information on these subsidiaries were not reviewed.

  • 3 -

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 March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-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 Tza-Li Gung and Fang, Han-Ni.

Deloitte & Touche Taipei, Taiwan Republic of China

May 5, 2021

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.

  • 4 -

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS March 31, 2021, December 31, 2020, and March 31, 2020 (In Thousands of New Taiwan Dollars)










 ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 6)

Financial assets at fair value through profit or loss - current (Note 7)
Financial assets at fair value through other comprehensive income - current
(Note 8)
Financial assets at amortized cost - current (Note 9)
Notes receivable (Notes 10 and 25)
Trade receivables (Notes 10 and 25)
Trade receivables from related parties (Notes 25 and 32)
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 33)

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)
Financial assets at amortized cost - Non-current (Note 9)
Property, plant and equipment (Notes 15 and 33)
Right-of-use assets (Note 16)
Investment properties (Notes 17 and 33)
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 33)

Total non-current assets

TOTAL ASSETS

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 20 and 33)

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 32)
Other payables (Note 22)
Current tax liabilities
Lease liabilities - current (Note 16)
Other current liabilities (Note 22)

Total current liabilities

NON-CURRENT LIABILITIES
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 stock

Total equity attributable to owners of the Company
NON-CONTROLLING INTERESTS (Note 24)

Total equity

TOTAL LIABILITIES AND EQUITY
 March 31, 2021 (Reviewed)

Amount
%
$ 1,746,505
7

2,391,589
9
313,324
1
2,663,186 10
26,684
-
5,154,640 19
5,865
-
3,004
-
224,391
1
66,153
-
5,478,110 21
1,601,548
6
102,312

-

19,777,311
74

10,261
-
339,842
1
303,968
1
4,147,750 16
604,574
2
837,053
3
817
-
103,410
-
428,551
2
23,228
-
4,320
-
246,739

1

7,050,513
26

$ 26,827,824
100

$ 1,403,460
6

99,919
-
267,239
1
92,145
-
1,522,075
6
19,187
-
3,210,829 12
557,393
2
80,491
-
138,338

1

7,391,076
28

301,873
1
169,911
1
261,637
1
25,577

-

758,998

3

8,150,074
30

9,150,897
34

127,392

-

3,287,022 12
577,494
2
5,483,326
21

9,347,842
35


294,289)
(
1)


21,182)

-

18,310,660 68
367,090

2

18,677,750
70

$ 26,827,824
100
 December 31, 2020 (Audited)
Amount
%
$ 4,332,018 16

1,490,336
5
249,485
1
1,728,070
6
3,154
-
6,295,581 23
9,011
-
2,917
-
224,370
1
23,063
-
5,124,648 18
1,579,289
6

63,844

-


21,125,786
76

10,666
-
267,178
1
-
-
4,201,645 15
626,440
2
844,797
3
817
-
105,391
-
417,127
2
24,031
-
3,521
-

196,463

1


6,698,076
24

$ 27,823,862
100

$ 1,846,767
7

129,869
1
748,044
3
90,333
-
2,107,188
8
20,526
-
3,442,258 12
399,020
1
77,782
-

94,108

-


8,955,895
32

351,328
1
200,191
1
280,701
1

20,120

-


852,340

3


9,808,235
35


9,150,897
33


127,392

-

3,287,022 12
577,494
2

4,918,357
18


8,782,873
32

(
355,492)
(
1)

(
21,182)

-

17,684,488 64

331,139

1


18,015,627
65

$ 27,823,862
100
 December 31, 2020 (Audited)
Amount
%
$ 4,332,018 16

1,490,336
5
249,485
1
1,728,070
6
3,154
-
6,295,581 23
9,011
-
2,917
-
224,370
1
23,063
-
5,124,648 18
1,579,289
6

63,844

-


21,125,786
76

10,666
-
267,178
1
-
-
4,201,645 15
626,440
2
844,797
3
817
-
105,391
-
417,127
2
24,031
-
3,521
-

196,463

1


6,698,076
24

$ 27,823,862
100

$ 1,846,767
7

129,869
1
748,044
3
90,333
-
2,107,188
8
20,526
-
3,442,258 12
399,020
1
77,782
-

94,108

-


8,955,895
32

351,328
1
200,191
1
280,701
1

20,120

-


852,340

3


9,808,235
35


9,150,897
33


127,392

-

3,287,022 12
577,494
2

4,918,357
18


8,782,873
32

(
355,492)
(
1)

(
21,182)

-

17,684,488 64

331,139

1


18,015,627
65

$ 27,823,862
100
 March 31, 2020 (Reviewed) March 31, 2020 (Reviewed)
Amount
$ 1,746,505
2,391,589
313,324
2,663,186
26,684
5,154,640
5,865
3,004
224,391
66,153
5,478,110
1,601,548
102,312

19,777,311

10,261
339,842
303,968
4,147,750
604,574
837,053
817
103,410
428,551
23,228
4,320
246,739

7,050,513

$ 26,827,824

$ 1,403,460
99,919
267,239
92,145
1,522,075
19,187
3,210,829
557,393
80,491
138,338

7,391,076

301,873
169,911
261,637
25,577

758,998

8,150,074

9,150,897

127,392

3,287,022
577,494
5,483,326

9,347,842


294,289)


21,182)

18,310,660
367,090

18,677,750

$ 26,827,824
 Amount
$ 4,332,018
1,490,336
249,485
1,728,070
3,154
6,295,581
9,011
2,917
224,370
23,063
5,124,648
1,579,289
63,844

21,125,786

10,666
267,178
-
4,201,645
626,440
844,797
817
105,391
417,127
24,031
3,521
196,463

6,698,076

$ 27,823,862

$ 1,846,767
129,869
748,044
90,333
2,107,188
20,526
3,442,258
399,020
77,782
94,108

8,955,895

351,328
200,191
280,701
20,120

852,340

9,808,235

9,150,897

127,392

3,287,022
577,494
4,918,357

8,782,873


355,492)


21,182)

17,684,488
331,139

18,015,627

$ 27,823,862
 Amount
$ 3,104,877
1,481,192
154,091
3,502,009
12,798
4,592,437
5,312
2,810
266,331
98,760
4,024,498
1,531,341
26,001

18,802,457

5,328
138,006
-
5,038,850
674,064
121,746
817
67,529
474,803
26,233
1,882
249,625

6,798,883

$ 25,601,340

$ 1,996,340
50,000
322,688
455,166
1,346,175
22,581
2,441,241
667,032
80,428
45,567

7,427,218

221,909
234,057
267,977
22,454

746,397

8,173,615

9,150,897

109,718

2,945,412
330,945
5,349,317

8,625,674


696,077)


21,182)

17,169,030
258,695

17,427,725

$ 25,601,340
 %
















(
(















(
(















(
(


 12

6

-
14

-
18

-

-

1

-
16

6

-
73

-

1

-
20

3

-

-

-

2

-

-

1
27
100

8

-

1

2

5

-
10

3

-

-
29

1

1

1

-

3
32
36

-
11

1
21
33
(
2)

-
67

1
68
100

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

  • 5 -

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, not Audited)

OPERATING REVENUE
Sales (Notes 25 and 32)

OPERATING COSTS
Cost of goods sold (Notes 12, 26, and 32)
GROSS PROFIT

OPERATING EXPENSES (Note 26)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit losses (or reversal)

Total operating expenses

OPERATING INCOME

NON-OPERATING INCOME AND
EXPENSES (Note 26)
Interest income
Other income
Other gains and losses

Financial cost

Total non-operating income and
expenses
PROFIT BEFORE INCOME TAX
INCOME TAX EXPENSE (Note 27)
 For the Three Months Ended
March 31, 2021
Amount
%
$ 8,269,002
100

6,163,468

75

2,105,534

25

1,097,019
13
253,662
3
38,680
-
4,012)

-

1,385,349

16

720,185

9

31,291
-
8,764
-

23,529 )
-
11,525)

-

5,001

-

725,186
9
153,750

2
 For the Three Months Ended
March 31, 2021
Amount
%
$ 8,269,002
100

6,163,468

75

2,105,534

25

1,097,019
13
253,662
3
38,680
-
4,012)

-

1,385,349

16

720,185

9

31,291
-
8,764
-

23,529 )
-
11,525)

-

5,001

-

725,186
9
153,750

2
 For the Three Months Ended
March 31, 2020		 For the Three Months Ended
March 31, 2020		 For the Three Months Ended
March 31, 2020
Amount
$ 8,269,002

6,163,468

2,105,534

1,097,019
253,662
38,680
4,012)

1,385,349

720,185

31,291
8,764

23,529 )
11,525)

5,001

725,186
153,750
 Amount
$ 6,671,433

4,775,935

1,895,498

862,373
251,927
34,832
7,286

1,156,418

739,080

32,805
7,525
2,706
14,808)

28,228

767,308
159,821
 %



(


(
(













(







100
72
28
13
4
-
-
17
11
-
-
-
-
-
11
2

(Continued)

  • 6 -

(Continued from the previous page)

(Continued from the previous page)
NET PROFIT FOR THE PERIOD

OTHER COMPREHENSIVE INCOME
(LOSS)
Items that will not be reclassified
subsequently to profit or loss:
Unrealized gain (loss) on
investments in equity
instruments at fair value
through other comprehensive
income
Income tax relating to items that
will not be reclassified
subsequently to profit or loss
(Note 27)

Items that may be reclassified
subsequently to profit or loss:
Exchange differences on
translating the financial
statements of foreign operations
Income tax relating to the items
that may be reclassified
subsequently to profit or loss
(Note 27)

Other comprehensive income (net,
after tax)
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company

Non-controlling Interests


TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Owners of the Company

Non-controlling Interests


EARNINGS PER SHARE (Note 28)
Basic

Diluted
 For the Three Months Ended
March 31, 2021
Amount
%
$ 571,436

7

136,510
2
4)

-

136,506

2


57,216 )
(
1 )
11,397

-

45,819)
(
1)

90,687

1

$ 662,123

8

$ 564,969
7

6,467

-

$ 571,436

7

$ 626,172
8

35,951

-

$ 662,123

8

$ 0.62

$ 0.62
 For the Three Months Ended
March 31, 2020
Amount
$ 571,436

136,510
4)

136,506


57,216 )

11,397

45,819)

90,687

$ 662,123

$ 564,969
6,467

$ 571,436

$ 626,172
35,951

$ 662,123

$ 0.62
$ 0.62		 Amount
$ 607,487


84,299 )

4)

84,303)


57,613 )

11,463

46,150)

130,453)

$ 477,034

$ 609,486
1,999)

$ 607,487

$ 490,903
13,869)

$ 477,034

$ 0.67
$ 0.67		 %

(

(

(


(

(
(
(
(
(

(
(


(


(
(

(
(

(
(




 9

1 )
-
1)

1 )
-
1)
2)
7
9
-
9
7
-
7

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

  • 7 -

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars) (Reviewed, not Audited)



Balance at January 1, 2020

Net profit for the three months ended March
31, 2020
Other comprehensive income for the three
months ended March 31, 2020

Total comprehensive income for the three
months ended March 31, 2020

Balance at March 31, 2020

Balance at January 1, 2021

Net profit for the three months ended March
31, 2021
Other comprehensive income for the three
months ended March 31, 2021

Total comprehensive income for the three
months ended March 31, 2021

Balance at March 31, 2021
 Equity Attributable to Owners of Equity Attributable to Owners of Equity Attributable to Owners of the Company the Company Total
$ 16,678,127

609,486

118,583)


490,903

$ 17,169,030

$ 17,684,488

564,969

61,203


626,172

$ 18,310,660
 Non-controlling
Interests
$ 272,564
(
1,999 )
(
11,870)

(
13,869)

$ 258,695

$ 331,139

6,467

29,484


35,951

$ 367,090
 Total Equity
Ordinary Shares
$ 9,150,897
-

-

-
$ 9,150,897

$ 9,150,897
-

-

-
$ 9,150,897
 Capital surplus
$ 109,718
-

-


-

$ 109,718

$ 127,392
-

-


-

$ 127,392
 Retained earnings Total
$ 8,016,188

609,486

-


609,486

$ 8,625,674

$ 8,782,873

564,969

-


564,969

$ 9,347,842
 Other Equity Items
Total

( $ 577,494 )

-
(
118,583)

(
118,583)

($ 696,077)

( $ 355,492 )

-

61,203


61,203

($ 294,289)
 Treasury stock
( $ 21,182 )

-

-


-

($ 21,182)

( $ 21,182 )

-

-


-

($ 21,182)
Exchange
differences on
translating the
financial
statements of
foreign
operations
( $ 693,038 )

-
(
45,855)

(
45,855)

($ 738,893)

( $ 572,206 )

-
(
45,587)

(
45,587)

($ 617,793)
 Unrealized gain
(loss) on
financial assets
at FVTOCI
$ 115,544

-
(
72,728)

(
72,728)

$ 42,816

$ 216,714

-

106,790


106,790

$ 323,504
Legal reserve

$ 2,945,412

-

-


-

$ 2,945,412

$ 3,287,022

-

-


-

$ 3,287,022
 Special reserve
$ 330,945

-

-


-

$ 330,945

$ 577,494

-

-


-

$ 577,494
 Unappropriated
Earnings
$ 4,739,831

609,486

-


609,486

$ 5,349,317

$ 4,918,357

564,969

-


564,969

$ 5,483,326




















































(
(

(

(






 $ 16,950,691

607,487

130,453)

477,034
$ 17,427,725
$ 18,015,627

571,436

90,687

662,123
$ 18,677,750

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

  • 8 -

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars) (Reviewed, not Audited)


CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax


Adjustments for:

Depreciation expenses

Amortization expenses

Expected credit losses (or reversal)


Financial assets at fair value through profit or
loss and net loss of liabilities

Financial cost

Interest income


Dividend income


Net loss (profit) on disposal of property, plant,
and equipment

Others

Net changes in operating assets and liabilities

Financial assets mandatorily classified as
FVTPL

Notes receivable


Trade receivables - related parties

Trade receivables from related parties

Other receivables - related parties

Inventories


Prepayments


Other current assets


Net defined benefit assets


Contract liabilities


Notes payable

Trade payables - related parties


Trade payables to related parties


Other payables - related parties


Other current liabilities

Net defined benefit liabilities


Cash generated from operations


Interest received

Interest paid


Income tax paid


Net cash generated from/(used in) operating
activities		 For the three
months ended
March 31, 2021
$ 725,186

151,028
20,053
(
4,012 )
18,905
11,525
(
31,291 )

(
225 )

766

1,175
(
920,274 )

(
23,766 )

1,114,900
3,146

3,599

(
379,136 )

(
29,554 )

(
39,030 )
(
799 )

(
481,415 )

2,269
(
584,918 )

(
1,339 )

(
222,362 )

67,414
(
17,636)

(
615,791 )
27,532
(
11,779 )

(
89,156)

(
689,194)
 For the three
months ended
March 31, 2020
$ 767,308
147,623
13,745
7,286
5,116
14,808
(
32,805 )
(
225 )
(
1,376 )
-
(
816,389 )
(
9,976 )
1,835,649
(
5,312 )
(
63,282 )
(
395,201 )
(
155,398 )
3,384
(
963 )
(
1,775 )
142,877
(
669,081 )
(
3,560 )
(
406,220 )
17,300
(
31,471)
362,062
22,665
(
12,324 )
(
131,153)

241,250

(Continued)

  • 9 -

(Continued from the previous page)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at amortized cost

Disposal of financial assets at amortized cost
Acquisition of property, plant, and equipment

Proceeds from disposal of property, plant and
equipment
Payments for intangible assets

Decrease in finance lease receivables
Increase in other financial assets

Increase in other non-current assets

Dividends received

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings
Decrease in short-term borrowings

Decrease in short-term bills payable

Payments for long-term borrowings
Repayments of principal portion of lease liabilities

Increase in other financial liabilities
Decrease in other non-current liabilities

Net cash generated from/(used in) financing
activities
EFFECTS OF EXCHANGE RATE CHANGES ON THE
BALANCE OF CASH HELD IN FOREIGN
CURRENCIES
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF
THE PERIOD
CASH AND CASH EQUIVALENTS, END OF THE
PERIOD		 For the Three
Months Ended
March 31, 2021
( $ 1,961,974 )

710,377
(
83,186 )

440
(
6,727 )

716
(
55,112 )

(
14,303 )


225

(
1,409,544)

-
(
438,158 )
(
29,950 )

-

(
31,864 )

5,594

-

(
494,378)


7,603

(
2,585,513 )


4,332,018

$ 1,746,505
 For the Three
Months Ended
March 31, 2020
( $ 2,368,135 )
1,060,575
(
58,665 )
1,589
(
1,287 )
681
(
896 )
(
682 )

225
(
1,366,595)
631,377
-
(
49,968 )
(
6,000 )
(
34,453 )
117
(
565)

540,508
(
16,189)
(
601,026 )

3,705,903
$ 3,104,877

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

  • 10 -

STANDARD FOODS CORPORATION AND SUBSIDIARIES

Notes to consolidated financial statements For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, not Audited)

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 have been approved by the Board of Directors on May 5, 2021.

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

  • a. The first-time application of the amended International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (hereinafter referred to as "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The application of the IFRSs recognized and issued into effect by the FSC should not result in major changes in the accounting policies of the Company and the entities controlled by the Company (hereinafter referred to as the "Consolidated Company"):

  • b. IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC:
New/Amended/Revised StandardsandInterpretations
Annual improvement of IFRSs 2018-2020

Amendment to IFRIC 3 “References to the Conceptual Framework”

Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture"

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IAS 1 "Classify Liabilities as Current or Non-current"
Amendments to IAS 1 "Disclosure of Accounting Policies"

Amendment to IAS 8 “Definition of Accounting Estimate”

Amendments to IAS 16 Real estate, Plant, and Equipment - Proceeds
before Intended Use

Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a
Contract"
 Effective Date Announced by
IASB(Note1)
January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
To be determined
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 6)
January 1, 2023 (Note 7)
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

  • Notes 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.

  • 11 -

  • Notes 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.

  • Notes 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

  • Notes 5: This amendment applies to contracts that have not fulfilled all obligations on January 1, 2022.

  • Notes 6: This amendment prospectively applies to the annual reporting period beginning after January 1, 2023.

  • Notes 7: This amendment applies to changes in accounting estimates and changes in accounting policies that occur during the annual reporting period beginning after January 1, 2023.

As of the date of authorization of the Consolidated Financial Statements, the Group has continued to assess the effects of amendments to other standards and interpretations on its financial conditions and performance. Related impacts will be disclosed upon completion of the assessment.

4. 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" recognized and announced to enter into effect by 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:

  • 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.

  • 12 -

c. 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 combined company. 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 non-controlling interests having a deficit balance.

Changes in the combined company's ownership interests in subsidiaries that do not result in the combined company 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 detailed information on subsidiaries (including the percentages of ownership and main businesses).

  • d. Other Significant Accounting Policies

Except for the following, please refer to the summary of material accounting policies in the 2020 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.

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The key sources of major accounting judgments and uncertainty of estimation and assumptions adopted in these consolidated financial statements are the same as those in the consolidated financial statements for the year ended December 31, 2020.

  • 13 -

6. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
**March 31, 2021 ** December 31, **2020 ** March 31, 2020
Cash on hand $ 46,035
 $ 2,336
 $ 2,755
Checking accounts and demand deposits 1,646,107 4,258,398 2,692,651
Cash equivalents (investments with original
maturities of less than 3 months)
Time deposits 54,363 71,284 243,709
Repurchase agreements collateralized
by bonds -
 -
 165,762
$ 1,746,505
 $ 4,332,018
 $ 3,104,877
The ranges of annual interest rate of cash in bank at the end of the reporting period were as follows:
March 31, 2021 December 31, **2020 ** March 31, 2020
Bank deposits 0.001%-3.150% 0.001%-3.220%
 0.001%-3.730%
Repurchase agreements collateralized by
bonds - - 0.400%-0.420%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
March 31, 2021 December 31, **2020 ** March 31, 2020
Financial assets at FVTPL-current
Mandatorily measured at FVTPL
Non-derivative financial assets
- Fund beneficiary certificates $ 2,362,495
 $ 1,461,304
 $ 1,450,402
- Bonds 29,094
 29,032
 30,790
$ 2,391,589
 $ 1,490,336
 $ 1,481,192
Financial assets at FVTPL-non-current
Mandatorily measured at FVTPL
Non-derivative financial assets
- Non-listed stocks $ 10,261
 $ 10,666
 $ 5,328
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
March 31, 2021 **December 31, ** **2020 ** March 31, 2020
Current
Investments in equity instruments $ 313,324
 $ 249,485 $ 154,091
Non-current
Investments in equity instruments $ 339,842
 $ 267,178
$ 138,006
Investments in equity instruments
March 31, 2021
 December 31, 2020 March 31, 2020
Current
Listed stocks
Ordinary shares - Far Eastern
International Bank $ 15,161
 $
15,374
$ 13,859
Ordinary shares - Chunghwa Telecom
Co., Ltd 5,419 5,297 5,224
Ordinary shares - Formosa Plastics Corp. 9,236 8,815 6,867

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

(Continued)

  • 14 -

(Continued from the previous page)

March 31, 2021 December 31, 2020 March 31, 2020
Ordinary shares - China Steel Corp.
$ 20,804
$ 19,881
$ 15,222
Ordinary shares - Polytronics
Technology Corp.
209,874
152,418
88,259
Ordinary shares - Taiwan Semiconductor
Manufacturing Co., Ltd.

52,830

47,700

24,660
$ 313,324
$ 249,485
$ 154,091
Non-current
Listed shares and emerging market shares
Ordinary shares - GeneFerm
Biotechnology Co., Ltd. (GeneFerm)
$ 72,719
$ 62,423
$ 40,757
Unlisted shares
Ordinary shares - Dah Chung Bills
Finance Corp.
15,354
14,918
13,004
Ordinary shares - InnoComm Mobile
Technology Corp.
250,704
188,784
83,304
Ordinary shares - AsiaVest Liquidation
Co.

1,065

1,053

941
$ 339,842
$ 267,178
$ 138,006
These investments by the combined company are held for medium- to long-term strategic purposes and the
combined company expects to profit from long-term investments. Accordingly, the management elected to
designate these investments in equity instruments as at fair value through other comprehensive profit or loss
as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss
would not be consistent with the combined company's strategy of holding these investments for long-term
purposes.
FINANCIAL ASSETS AT AMORTIZED COST
March 31, 2021
December 31, 2020 March 31, 2020
Current
Time deposits with original maturities of
more than 3 months
$ 2,663,186
$ 1,728,070
$ 3,502,009
Non-current
Time deposits with original maturities of
more than 3 months
$ 303,968
$ -
$ -		 March 31, 2021 December 31, 2020 March 31, 2020
Ordinary shares - China Steel Corp.
$ 20,804
$ 19,881
$ 15,222
Ordinary shares - Polytronics
Technology Corp.
209,874
152,418
88,259
Ordinary shares - Taiwan Semiconductor
Manufacturing Co., Ltd.

52,830

47,700

24,660
$ 313,324
$ 249,485
$ 154,091
Non-current
Listed shares and emerging market shares
Ordinary shares - GeneFerm
Biotechnology Co., Ltd. (GeneFerm)
$ 72,719
$ 62,423
$ 40,757
Unlisted shares
Ordinary shares - Dah Chung Bills
Finance Corp.
15,354
14,918
13,004
Ordinary shares - InnoComm Mobile
Technology Corp.
250,704
188,784
83,304
Ordinary shares - AsiaVest Liquidation
Co.

1,065

1,053

941
$ 339,842
$ 267,178
$ 138,006
These investments by the combined company are held for medium- to long-term strategic purposes and the
combined company expects to profit from long-term investments. Accordingly, the management elected to
designate these investments in equity instruments as at fair value through other comprehensive profit or loss
as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss
would not be consistent with the combined company's strategy of holding these investments for long-term
purposes.
FINANCIAL ASSETS AT AMORTIZED COST
March 31, 2021
December 31, 2020 March 31, 2020
Current
Time deposits with original maturities of
more than 3 months
$ 2,663,186
$ 1,728,070
$ 3,502,009
Non-current
Time deposits with original maturities of
more than 3 months
$ 303,968
$ -
$ -		 March 31, 2021 December 31, 2020 March 31, 2020
Ordinary shares - China Steel Corp.
$ 20,804
$ 19,881
$ 15,222
Ordinary shares - Polytronics
Technology Corp.
209,874
152,418
88,259
Ordinary shares - Taiwan Semiconductor
Manufacturing Co., Ltd.

52,830

47,700

24,660
$ 313,324
$ 249,485
$ 154,091
Non-current
Listed shares and emerging market shares
Ordinary shares - GeneFerm
Biotechnology Co., Ltd. (GeneFerm)
$ 72,719
$ 62,423
$ 40,757
Unlisted shares
Ordinary shares - Dah Chung Bills
Finance Corp.
15,354
14,918
13,004
Ordinary shares - InnoComm Mobile
Technology Corp.
250,704
188,784
83,304
Ordinary shares - AsiaVest Liquidation
Co.

1,065

1,053

941
$ 339,842
$ 267,178
$ 138,006
These investments by the combined company are held for medium- to long-term strategic purposes and the
combined company expects to profit from long-term investments. Accordingly, the management elected to
designate these investments in equity instruments as at fair value through other comprehensive profit or loss
as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss
would not be consistent with the combined company's strategy of holding these investments for long-term
purposes.
FINANCIAL ASSETS AT AMORTIZED COST
March 31, 2021
December 31, 2020 March 31, 2020
Current
Time deposits with original maturities of
more than 3 months
$ 2,663,186
$ 1,728,070
$ 3,502,009
Non-current
Time deposits with original maturities of
more than 3 months
$ 303,968
$ -
$ -		 December 31, 2020 December 31, 2020 March 31, 2020 March 31, 2020

$ 2,663,186

$ 303,968
$ 1,728,070

$ -
$ 3,502,009
$ -

These investments by the combined company are held for medium- to long-term strategic purposes and the combined company expects to profit from long-term investments. Accordingly, the management elected to designate these investments in equity instruments as at fair value through other comprehensive profit or loss as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the combined company's strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

The ranges of interest rates for time deposits with original maturities of more than 3 months were 0.15%~4.13%, 0.35%~4.13%, and 0.56%~3.80% per annum as of March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

  • 15 -

10. NOTE RECEIVABLES, TRADE RECEIVABLES, AND OTHER RECEIVABLES

Notes receivable
Operating

Trade receivables-related parties
At amortized cost
Gross carrying amount

Less: Allowance for impairment loss


Other receivables-related parties
Accrued income

Receivables from payments on behalf of
others
Receivables from promotion subsidy
Others

 March 31, 2021
 March 31, 2021
 December 31, 2020 December 31, 2020 March 31, 2020 March 31, 2020


(



 $ 26,684

$ 5,179,586

24,946)

$ 5,154,640

$ 22,673

3,171
2,421
196,126

$ 224,391

(



 $ 3,154

$ 6,328,068

32,487)

$ 6,295,581

$ 19,033

3,259
19,543
182,535

$ 224,370

(



 $ 12,798
$ 4,620,466
28,029)
$ 4,592,437
$ 18,920
2,290
21,335
223,786
$ 266,331

The Group's credit period for commodity sales averages 30~90 days. To minimize credit risk, the management of the combined company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the combined company reviews the recoverable amount of each individual receivable on the balance sheet date to ensure that adequate allowances are made for possible irrecoverable amounts.

The combined company 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 combined company 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 combined company 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.

March 31, 2021

March 31, 2021
ECL rate
Gross carrying amount
Loss allowance (Lifetime ECL)
Amortized cost
December 31, 2020
ECL rate
Gross carrying amount
Loss allowance (Lifetime ECL)
Amortized cost		 Not Pass Due **Less than 30 Days ** **31 to 90 Days ** **91 to 180 Days ** Over 180 Days **Total **

(

 0.05%
$ 4,857,305


2,367)

$ 4,854,938

Not Pass Due
 2.18%
$ 159,299

(
3,469)

$ 155,830

**Less than 30 Days **		 4.57%
$ 157,102
(
7,187)

$ 149,915

**31 to 90 Days **		 26.90%
$ 14,630

(
3,935)

$ 10,695

**91 to 180 Days **		 44.54%
$ 17,934

(
7,988)

$ 9,946

Over 180 Days
(
 $ 5,206,270

24,946)
$ 5,181,324
**Total **

(
 0.01%
$ 5,855,491


537)

$ 5,854,954
(
 0.44%
$ 353,466


1,549)

$ 351,917
(
 2.97%
$ 74,259

2,207)

$ 72,052
(
 51.56%
$ 40,270


20,764)

$ 19,506
(
 96.04%
$ 7,736


7,430)

$ 306
(
 $ 6,331,222

32,487)
$ 6,298,735
  • 16 -

March 31, 2020

March 31, 2020
ECL rate
Gross carrying amount
Loss allowance (Lifetime ECL)
Amortized cost		 Not Pass Due Less than
30 Days
1.33%
$ 110,296


1,463)

$ 108,833
 Overdue
31 ~90 days		 Overdue
91 - 180 days		 Overdue
Over 180 Days		 **Total **

(
 0.03%
$ 4,248,457


1,097)

$ 4,247,360
(
(
 2.68%
$ 220,521

5,914)

$ 214,607
(
 14.14%
$ 24,205


3,423)

$ 20,782
(
 54.16%
$ 29,785


16,132)

$ 13,653
(
 $ 4,633,264
28,029)
$ 4,605,235

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

Balance at January 1
Add: Net remeasurement of loss allowance
Less: Reversal impairment loss of current period
Less: Actual write-off for the current period
Foreign exchange translation gains and losses
Balance at March 31		 For the Three Months
Ended March 31, 2021
$ 32,487
-
(
4,012 )
(
3,141 )
(
388)
$ 24,946		 For the Three Months
Ended March 31, 2020		 For the Three Months
Ended March 31, 2020

(
(
(
(
 $ 20,933
7,286
-
-
190)
$ 28,029

11. FINANCE LEASE RECEIVABLES

The composition of finance lease receivables was as follows:

Undiscounted lease payments
Year 1

Year 2
Year 3
Year 4
Year 5
Year 6 onwards

Less: Unearned finance income

Net investment in leases presented as
finance lease receivables		 March 31, 2021 March 31, 2021 **December 31, 2020 ** **December 31, 2020 ** March 31, 2020
$ 4,200
4,250
4,800
4,800
4,800

12,200
35,050
(
6,007)
$ 29,043		 March 31, 2020
$ 4,200
4,250
4,800
4,800
4,800

12,200
35,050
(
6,007)
$ 29,043


(
 $ 4,250

4,800
4,800
4,800
4,800
7,400

30,850

4,618)

$ 26,232

(
 $ 4,200
4,700
4,800
4,800
4,800
8,600
31,900

4,952)
$ 26,948		 $ 4,200
4,250
4,800
4,800
4,800
12,200
35,050

6,007)
$ 29,043

As of March 31, 2021 no finance lease receivable was past due. The combined company 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

 March 31, 2021 December 31, 2020 March 31, 2020
$ 553,518
1,167,098
625,742
1,619,334

58,806
$ 4,024,498


$ 554,287

1,359,141
1,036,330
2,453,391
74,961

$ 5,478,110

$ 640,373
1,977,416
350,629
2,092,141
64,089
$ 5,124,648		 $ 553,518
1,167,098
625,742
1,619,334
58,806
$ 4,024,498

Cost of goods sold for the three months ended March 31, 2021 includes loss in inventory value of NT$25,035 thousand and inventory obsolescence loss of NT$5,080 thousand, respectively. Cost of goods sold for the three months ended March 31, 2020 includes loss in inventory value of NT$9,999 thousand and inventory obsolescence loss of NT$6,726 thousand.

  • 17 -

13. PREPAYMENTS

PREPAYMENTS
Prepayments for purchases

Prepayments for rent
Prepayments for insurance
Excess business tax paid
Prepayments for advertisements
Others

 March 31, 2021 December 31, 2020 March 31, 2020


$ 995,355

8,367
12,741
314,331
17,291
253,463

$ 1,601,548

$ 1,025,145

5,274
980
212,798
19,490
315,602

$ 1,579,289

$ 909,831
9,267
12,983
355,979
12,147
231,134
$ 1,531,341

14. SUBSIDIARIES

Subsidiaries included in consolidated financial statements.

Entities of the consolidated financial statements were as follows:

Investor Company
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		 Name of Subsidiary
Standard Dairy Products Taiwan
Ltd. (Standard Dairy
Products)

Charng Hui Ltd.
(Charng Hui)

Domex Technology Corporation
(Domex Technology)

Standard Beverage Company
Ltd. (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)

Standard Foods (Xiamen) Co.,
Ltd. (Xiamen Standard)
 Main Business Proportion of Ownership Proportion of Ownership Proportion of Ownership Remark
March 31,
2021		 December 31,
2020		 March 31,
2020
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		 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%		 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%		 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 reduced
its capital by
NT$8,397 thousand
in March 2021.
The Company invested
US$300 thousand
and set up Standard
Foods, LLC. in June
2020.
-
-
Accession Limited
invested CHF 1,450
thousand in
Dermalab in March
2021.
-
-
-
-
-
-
-
-
-

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

  • 18 -

15. REAL ESTATE, PLANT, AND EQUIPMENT

Cost
Balance at January 1, 2020

Additions
Disposals
Reclassification
Effects of foreign currency exchange
differences
Balance at March 31, 2020

Accumulated depreciation and impairment
Balance at January 1, 2020

Disposals
Depreciation expenses
Effects of foreign currency exchange
differences
Balance at March 31, 2020

Carrying amount at March 31, 2020

Cost
Balance at January 1, 2021

Additions
Disposals
Reclassification
Reclassified as investment properties
Effects of foreign currency exchange
differences
Balance at March 31, 2021

Accumulated depreciation and impairment
Balance at January 1, 2021

Disposals
Depreciation expenses
Reclassified as investment properties
Effects of foreign currency exchange
differences
Balance at March 31, 2021

Carrying amount at December 31, 2020 and
January 1, 2021
Carrying amount at March 31, 2021
 Freehold Land Buildings Equipment Other
equipment		 Property in
Construction and
Equipment to Be
Tested		 Total














$ 702,405

-
-

-
-

$ 702,405

$ -

-

-
-

$ -

$ 702,405

$ 705,345

-
-

-
-

-

$ 705,345

$ -

-

-
-

-

$ -

$ 705,345

$ 705,345
 $ 4,078,150

326
(
7,201 )
1,051
(
19,386)

$ 4,052,940

$ 1,269,679

(
7,110 )
43,018
(
3,469)

$ 1,302,118

$ 2,750,822

$ 3,392,715

-
(
769 )
16,599
(
6,141 )
(
10,026)

$ 3,392,378

$ 1,410,765

(
745 )
40,149
(
560 )
(
2,963)

$ 1,446,646

$ 1,981,950

$ 1,945,732
 $ 4,069,198

1,290
(
31,077 )
50,063
(
8,845)

$ 4,080,629

$ 2,730,217

(
30,955 )
68,043
(
3,815)

$ 2,763,490

$ 1,317,139

$ 4,168,193

481
(
18,756 )
48,127

-
(
6,308)

$ 4,191,737

$ 2,914,753

(
17,576 )
67,930

-
(
3,140)

$ 2,961,967

$ 1,253,440

$ 1,229,770
 $ 561,938

613
(
8,192 )
12,486

(
1,542)

$ 565,303

$ 425,371

(
8,192 )
12,406
(
1,101)

$ 428,484

$ 136,819

$ 574,828

286
(
879 )
4,355

-
(
1,839)

$ 576,751

$ 440,921

(
877 )
10,986
-
(
1,240)

$ 449,790

$ 133,907

$ 126,961
 $ 138,888

56,436

-

(
63,600 )
(
59)

$ 131,665

$ -


-

-

-

$ -

$ 131,665

$ 127,003

82,419

-

(
69,081 )
-

(
399)

$ 139,942

$ -


-

-
-


-

$ -

$ 127,003

$ 139,942
 $ 9,550,579
58,665
(
46,470 )
-
(
29,832)
$ 9,532,942
$ 4,425,267
(
46,257 )
123,467
(
8,385)
$ 4,494,092
$ 5,038,850
$ 8,968,084
83,186
(
20,404 )
-
(
6,141 )
(
18,572)
$ 9,006,153
$ 4,766,439
(
19,198 )
119,065
(
560 )
(
7,343)
$ 4,858,403
$ 4,201,645
$ 4,147,750

From January 1, 2021 to March 31, 2021 and from January 1, 2020 to March 31, 2020, there were no signs of impairment, so the combined company did not conduct any impairment assessment.

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

Buildings
Main buildings 20 ~ 51 years
Electrical and mechanical equipment 8 ~ 20 years
Engineering system 3 ~ 39 years
Others 3 ~ 20 years
Equipment
Main equipment 2 ~ 20 years
Engineering system 3 ~ 20 years
Others 3 ~ 15 years
Other equipment 2 ~ 15 years

For the amount of real estate, plant, and equipment pledged as collateral, refer to Notes 33.

  • 19 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets

March 31, 2021 December 31, 2020 March 31, 2020
Carrying amounts
Land
$ 394,266
$ 399,166
$ 399,313
Buildings
203,364
218,696
264,546
Office equipment
421
444
373
Transportation equipment

6,523

8,134

9,832
$ 604,574
$ 626,440
$ 674,064
January 1, 2021 to
March 31
January 1, 2020 to
March 31
Additions to right-of-use assets
$ 31,710
$ 2,602
Depreciation charge for right-of-use assets
Land
$ 3,122
$ 3,094
Buildings
18,342
19,659
Office equipment
24
17
Transportation equipment

856

741
$ 22,344
$ 23,511		 March 31, 2021 March 31, 2021 March 31, 2021 **December 31, 2020 ** **December 31, 2020 ** **December 31, 2020 ** March 31, 2020 March 31, 2020
$ 394,266
203,364
421
6,523
$ 604,574



$ 31,710
$ 3,122
18,342
24
856
$ 22,344


$ 2,602
$ 3,094
19,659
17
741
$ 23,511
  • b. Lease liabilities
Carrying amounts
Current

Non-current
 March 31, 2021 March 31, 2021 **December 31, 2020 ** **December 31, 2020 ** March 31, 2020 March 31, 2020

$ 80,491

$ 169,911
$ 77,782

$ 200,191
$ 80,428
$ 234,057

Range of discount rate for lease liabilities was as follows:

Land
Buildings
Office equipment
Transportation equipment		 March 31, 2021 **December 31, 2020 ** March 31, 2020
1.07%~1.49%
1.07%~4.35%
1.07%
1.07%~3.77%		 1.07%~1.49%
1.07%~4.35%
1.07%
1.07%~3.77%
 1.07%~1.49%
1.07%~4.35%
1.07%
1.07%~12.04%
  • c. Material leasing activities and terms

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

  • 20 -

d. Other lease information

Lease arrangements under operating leases for leasing out the investment properties are set out in Notes 17. Lease arrangements for leasing out the assets under finance leases are set out in Notes 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
 March 31, 2021
 March 31, 2021
 December 31, 2020 December 31, 2020 March 31, 2020 March 31, 2020



(		 $ 29,897

$ 791

$ 20

$ 64,744)


(		 $ 92,994

$ 1,144

$ 77

$ 192,131)


(		 $ 22,148
$ 286
$ 20
$ 59,564)

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

17. INVESTMENT PROPERTY

Cost
Balance at January 1, 2020

Effects of foreign currency exchange
differences
Balance at March 31, 2020

Accumulated depreciation and impairment
Balance at January 1, 2020

Depreciation expenses
Effects of foreign currency exchange
differences
Balance at March 31, 2020

Carrying amount at March 31, 2020

Cost
Balance at January 1, 2021

From property, plant and equipment
Effects of foreign currency exchange
differences
Balance at March 31, 2021

Accumulated depreciation and impairment
Balance at January 1, 2021

Depreciation expenses
From property, plant and equipment
Effects of foreign currency exchange
differences
Balance at March 31, 2021

Carrying amount at December 31, 2020
and January 1, 2021
Carrying amount at March 31, 2021
 Completed
Investment Properties
$ 241,711

(
619)

$ 241,092

$ 124,434

536
(
555)

$ 124,415

$ 116,677

$ 1,009,740

6,141
(
4,375)

$ 1,011,506

$ 169,797

9,509
560
(
693)

$ 179,173

$ 839,943

$ 832,333
 Right-of-use assets Right-of-use assets Total

(


(



(


(
(


(



(


(


 $ 5,548
40)

$ 5,508

$ 333

109
3)

$ 439

$ 5,069

$ 5,635
-
28)

$ 5,607

$ 781
110
-
4)

$ 887

$ 4,854

$ 4,720
(


(




(




(


 $ 247,259
659)
$ 246,600
$ 124,767
645
558)
$ 124,854
$ 121,746
$ 1,015,375

6,141
4,403)
$ 1,017,113
$ 170,578

9,619

560
697)
$ 180,060
$ 844,797
$ 837,053
  • 21 -

The investment properties held by the Group are depreciated using the straight-line basis over the following estimated useful lives:


estimated useful lives:
Buildings
Main buildings 35-51 years
Electrical and mechanical equipment 24-25 years
Engineering system 28 years
Right-of-use assets 49 years
Others 24 years

The fair values of the investment properties were $1,092,945 thousand, $1,146,959 thousand, and $209,358 thousand as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively. In the absence of hiring independent appraiser, the management of the combined company determined the fair value with reference to market transaction prices of similar properties.

All of the combined company's investment properties are held under freehold interests. For the amount of investment real estate set by the combined company as a loan guarantee, please refer to Notes 33.

18. INTANGIBLE ASSETS

INTANGIBLE ASSETS
Cost
Balance at January 1, 2020

Additions
Disposals
Effects of foreign currency exchange
differences
Balance at March 31, 2020

Accumulated amortization and impairment
Balance at January 1, 2020

Disposals
Amortization expenses
Effects of foreign currency exchange
differences
Balance at March 31, 2020

Carrying amount at March 31, 2020

Cost
Balance at January 1, 2021

Additions
Disposals

Effects of foreign currency exchange
differences
Balance at March 31, 2021

Accumulated amortization and impairment
Balance at January 1, 2021

Disposals

Amortization expenses
Effects of foreign currency exchange
differences
Balance at March 31, 2021

Carrying amount at December 31, 2020
and January 1, 2021
Carrying amount at March 31, 2021
 Trademark Computer software
Total

$ 227,260

-
-

(
378)

$ 226,882



$ 163,442

-

1,285
(
1,140)

$ 163,587

$ 63,295


$ 261,737

59
(
185 )
(
3,276)

$ 258,335



$ 170,665

(
185 )
1,316

1,976

$ 173,772

$ 91,072

$ 84,563
$ 239,713

1,287
(
28,621 )


107

$ 212,486


$ 236,262

(
28,621 )

502

109

$ 208,252

$ 4,234


$ 225,239

6,668
-

(
4)

$ 231,903


$ 210,920

-

2,140
(
4)

$ 213,056

$ 14,319

$ 18,847
 $ 466,973
1,287
(
28,621 )
(
271)
$ 439,368
$ 399,704
(
28,621 )
1,787
(
1,031)
$ 371,839
$ 67,529
$ 486,976
6,727
(
185 )
(
3,280)
$ 490,238
$ 381,585
(
185 )
3,456

1,972
$ 386,828
$ 105,391
$ 103,410
  • 22 -

From January 1, 2021 to March 31, 2021 and from January 1, 2020 to March 31, 2020, there were no signs of impairment, so the combined company did not conduct any impairment assessment.

Amortization expenses are calculated on a straight-line basis over the following useful lives:

Trademark 10-20 years Computer software 2-3 years

19. OTHER ASSETS

OTHER ASSETS

Current
Pledged bank time deposits (Note 33)

Advances to officers
Temporary payments
Right of products to be returned
Others


Non-current
Prepayments for equipment

Refundable deposits
Pledged bank time deposits (Note 33)
Others

 March 31, 2021 December 31, 2020 March 31, 2020





$ 4,016

16,430
8,623
72,483
760

$ 102,312

$ 19,503

110,640
-
116,596

$ 246,739




$ 4,016

24,291
10,094
25,320
123

$ 63,844

$ 24,737

56,259
-
115,467

$ 196,463




$ 4,013
13,369
8,281
-
338
$ 26,001
$ 2,750
54,322
85,320
107,233
$ 249,625

20. BORROWINGS

  • a. Short-term borrowings
Short-term borrowings

Secured borrowings (Note 33)
Bank loans

Trade receivables financing
Unsecured borrowings
Bank loans
Other loans

 March 31, 2021 December 31, 2020 March 31, 2020


$ 150,000

-
1,238,323
15,137

$ 1,403,460

$ 180,000

-
1,650,614
16,153

$ 1,846,767

$ 100,000
404,112
1,492,228
-
$ 1,996,340

The annual interest rates of the aforementioned short-term borrowings or financing are 0.95%~3.20%, 0.95%~3.20%, and 0.95%~4.35% on March 31, 2021, December 31, and March 31, 2020, respectively.

  • b. Short-term bills payable

Commercial paper payable

Less: Discount on short-term bills payable
 March 31, 2021 March 31, 2021 December 31, 2020 December 31, 2020 March 31, 2020 March 31, 2020

(
 $ 100,000

81)

$ 99,919
(
 $ 130,000


131)

$ 129,869

$ 50,000
-
$ 50,000

The annual interest rates payable to commercial promissory notes as of March 31, 2021, December 31, and March 31, 2020 are 1.19%~1.29%, 1.19%~1.29%, and 1.36%, respectively.

  • 23 -

21. NOTES PAYABLE AND TRADE PAYABLES


Notes payable
Operating

Non-operating


Trade payables-related parties
Operating
 March 31, 2021 March 31, 2021 December 31, 2020 December 31, 2020 March 31, 2020 March 31, 2020



$ 92,145

-

$ 92,145

$ 1,522,075


$ 90,288

45

$ 90,333

$ 2,107,188


$ 455,166
-
$ 455,166
$ 1,346,175

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 pre-agreed credit terms.

22. OTHER LIABILITIES

OTHER LIABILITIES

Current
Other payables - related parties
Payable for salaries or bonuses

Payable for compensation of employees
Payable for remuneration to directors
Payable for commission and rebates
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

 March 31, 2021 December 31, 2020 March 31, 2020









$ 267,398


58,713
25,834
1,232,504
193,410
24,209
123,610
70,958
1,214,193

$ 3,210,829

$ 2,592

113,729
22,017

$ 138,338

$ 25,455

122

$ 25,577







$ 368,144

49,921
21,965
1,234,532
226,393
23,682
116,854
86,794
1,313,973

$ 3,442,258

$ 2,430

41,596
50,082

$ 94,108

$ 19,990

130

$ 20,120







$ 233,715
45,172
29,649
837,940
142,668
24,542
88,611
76,977
961,967
$ 2,441,241
$ 1,689
17,221
26,657
$ 45,567
$ 20,048
2,406
$ 22,454

The combined company accepts returns of sold goods according to the business practices. Taking into account the accumulated experience in the past, the Company and its mainland subsidiaries estimate the return rate based on the most probable amount, and recognize the return liability (other current liabilities in the account) and related pending returns. Product rights (other current assets are accounted for).

23. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Group’s defined benefit retirement plans for the three months ended March 31, 2021 and 2020 were $4,115 thousand and $2,871 thousand by the actuarially determined pension cost discount rate as of December 31, 2020 and 2019, respectively.

  • 24 -

24. EQUITY

  • a. Share capital

1) Ordinary shares

Ordinary shares

Number of shares authorized
(in thousands)

Shares authorized

Number of shares issued and fully
paid (in thousands)

Shares issued
 March 31, 2021 December 31, 2020 March 31, 2020



920,000

$ 9,200,000

915,089

$ 9,150,897


920,000

$ 9,200,000

915,089

$ 9,150,897


920,000
$ 9,200,000
915,089
$ 9,150,897
  • 2) Global depositary receipts

As of March 31, 2021, 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
Capital surplus
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
Treasury share transactions
May only be used to offset a deficit
Changes in percentage of ownership
interests in subsidiaries (2)

 March 31, 2021
 December 31, 2020 March 31, 2020


$ 1

126,925
466

$ 127,392

$ 1

126,925
466

$ 127,392

$ 1
109,251
466
$ 109,718

  • 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.

  • 25 -

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 Notes 26(i) "employees' compensation and remuneration of directors."

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

The board of directors and shareholders' meetings proposed and resolved the distribution of earnings for years ended December 31, 2020 and 2019 on March 22, 2021 and June 16, 2020 as follows:

Legal reserve

Special reserve

Cash dividends

Cash dividends per share (NT$)
 2020 2019







$ 319,167

$ -

$ 2,287,724

$ 2.5






$ 341,610
$ 246,549
$ 2,424,987
$ 2.65

The distribution of earnings for 2020 is subject to the resolution of the Stockholders' meeting to be held on June 11, 2021.

d. Special reserve

Beginning and ending balance For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020
$ 577,494 $ 330,945

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. If there is a subsequent reversal of the net deduction of other shareholders' equity, the special reserve reversed may be reverted to distribute the surplus.

  • 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 March 31		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
( $ 572,206 )

(
45,587)
(
45,587)
($ 617,793)		 ( $ 693,038 )
(
45,855)
(
45,855)
($ 738,893)
  • 26 -

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

Balance at January 1
Recognized for the year
Unrealized gain (loss)
equity instruments
Other comprehensive income for the period
Balance at March 31		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020



$ 216,714
106,790
106,790
$ 323,504
(
(
 $ 115,544

72,728)

72,728)
$ 42,816
  • f. Non-controlling interests
Balance at January 1
Net profit (Loss)
Other comprehensive income for the period
Exchange differences on translating the financial
statements of foreign operations
Unrealized gain (loss) on financial assets at
FVTOCI
Balance at March 31		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
$ 331,139
6,467
(
232 )

29,716
$ 367,090		 $ 272,564
(
1,999 )
(
295 )
(
11,575)
$ 258,695
  • g. Treasury shares
Purpose of Buy-back
Number of shares for the three months ended March 31, 2020
Number of shares for the three months ended March 31, 2021		 Shares Held by
Subsidiaries (In
Thousands of Shares)		 Shares Held by
Subsidiaries (In
Thousands of Shares)

6,669
6,669

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

Name of Subsidiary Number of shares held
(thousand shares)
 Carrying Amount Carrying Amount Market Price
March 31, 2021
Charng Hui
December 31, 2020
Charng Hui
March 31, 2020
Charng Hui		 6,669

6,669

6,669

$ 21,182

$ 21,182

$ 21,182

$ 390,831
$ 408,839
$ 406,838

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

For the Three Months For the Three Months Ended March 31, 2021 Ended March 31, 2020

Revenue from contracts with customers
Sale of goods
 $ 8,269,002
 $ 6,671,433
  • a. Contract balances
Notes receivable (Note 10)

Trade receivables (Note 10)
Trade receivables from
related parties (Note 10)
Contract liabilities - Current
Sale of goods
 March 31,
2021		 December 31,
2020		 March 31,
2020		 January 1,
2020




$ 26,684

$ 5,154,640

$ 5,865

$ 267,239


$ 3,154

$ 6,295,581

$ 9,011

$ 748,044


$ 12,798

$ 4,592,437

$ 5,312

$ 322,688


$ 2,977
$ 6,439,550
$ -
$ 326,644
  • b. Disaggregation of revenue

For the Three Months Ended March 31, 2021

Types of goods or services
Sale of goods
 Reportable Segments Reportable Segments Reportable Segments Reportable Segments Reportable Segments Total
Nutritious
Foods		 Cooking
products Food		 Others
$ 3,023,255
 $ 4,117,601
 $ 1,128,146
 $ 8,269,002

For the Three Months Ended March 31, 2020

Types of goods or services
Sale of goods
 Reportable Segments Reportable Segments Reportable Segments Reportable Segments Reportable Segments Total
Nutritious
Foods		 Cooking
products Food		 Others
$ 3,012,100
 $ 3,107,522
 $ 551,811
 $ 6,671,433

26. NET PROFIT

Net profit includes:

a. Interest income

Interest income
Bank deposits
Financial assets at amortized cost
Repurchase agreements collateralized by bonds
Others		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020



$ 15,044
15,927
-
320
$ 31,291

$ 17,108
14,951
386
360
$ 32,805
  • 28 -

b. Other income

Other income
Operating lease rental income
Investment properties
Others
Dividend income
Investments in equity instruments at FVTOCI		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020




$ 8,270
269
8,539
225
$ 8,764



$ 7,032
268
7,300
225
$ 7,525

c. Other profits and losses

Gains and losses of financial assets and financial
liabilities
Financial assets mandatorily classified as
FVTPL
Net foreign exchange gains (losses)
Net gains (losses) on disposal of property, plant and
equipment
Government grants
Others		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020
(
(
(

(		 $ 18,905 )

10,526 )

766 )
3,671
2,997
$ 23,529)		 (
(
 $ 5,116 )
7,051
1,376
6,745
7,350)
$ 2,706

d. Finance cost

Finance cost
Interest on bank loans
Interest on short-term bills payable
Interest on lease liabilities
Other interest expenses		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020


$ 9,107
237
2,172
9
$ 11,525

$ 11,898
241
2,657
12
$ 14,808
  • e. Derogation loss (or reversal)

Trade receivables - related parties Inventories (included in operating costs)

For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020
(
$ 4,012)
$ 25,035
$ 7,286
$ 9,999
  • 29 -

f. Depreciation and amortization

Depreciation and amortization
An analysis of depreciation by function
OPERATING COSTS
Operating expenses
Non-operating revenue and expenses
An analysis of amortization by function
OPERATING COSTS
Operating expenses		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020





$ 100,541
40,868
9,619
$151,028
$ 6,630
13,423
$ 20,053




$ 99,209
47,769
645
$ 147,623
$ 4,927
8,818
$ 13,745
  • g. Operating expenses directly related to investment properties
Direct operating expenses of investment properties
Direct operating expenses of investment
properties that generated rental income
Direct operating expenses of investment
properties that did not generated rental income		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020



$ 364
145
$ 509

$ 177
144
$ 321
  • h. Employee benefit expenses
Post-employment benefits
Defined contribution plans
Defined benefit plans (Note 23)
Other employee benefits
Total employee benefit expenses
An analysis of employee benefit expenses by function
OPERATING COSTS
Operating expenses		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020







$ 37,718
4,115
41,833
686,500
$ 728,333
$ 205,011
523,322
$ 728,333





$ 27,616
2,871
30,487
609,147
$ 639,634
$ 206,648
432,986
$ 639,634
  • 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. Compensation to employees and remuneration to directors for the three months ended March 31, 2021 and 2020 are as follows:

  • 30 -

Accrual rate

Compensation of employees
Remuneration of directors
Amount
Compensation of employees
Remuneration of directors		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020
1.25%
0.55%
For the Three Months
Ended March 31, 2021		 0.92%
0.61%

For the Three Months
Ended March 31, 2020

$ 8,792
$ 3,869
$ 6,950
$ 4,575

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.

Remunerations for employees and directors for 2020 and 2019 were resolved by the Board of Directors on March 22, 2021 and March 18, 2020, respectively.

Compensation of employees
Remuneration of directors		 2020 2019
Cash Cash
$ 49,921
21,965		 $ 52,013
25,073

The amounts of employee and directors' compensation distributed for the years ended December 31, 2020 and 2019 and those recognized in the consolidated financial statements are consistent.

Information on compensation to employees and remuneration to directors approved by the Board of Directors is available at the Market Observation Post System website of Taiwan Stock Exchange.

  • j. Profit or loss on foreign currency exchange
Foreign exchange gains
Foreign exchange losses
Net gains (losses)		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020

(
(		 $ 23,877
34,403)
$ 10,526)
(
 $ 21,665
14,614)
$ 7,051

27. INCOME TAX

  • a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax
In respect of the current year
Additional tax on undistributed earnings
Adjustments from previous years
Deferred tax
In respect of the current year
Income tax expense recognized in profit or loss		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020


(
 $201,898
323
1,543
203,764
50,014)
$ 153,750

(
 $208,466
-
-
208,466
48,645)
$ 159,821

  • 31 -

  • b. Income tax recognized in other comprehensive income

Deferred tax
Recognized for the year
- Exchange differences of foreign operations
- Unrealized gain (loss) on financial assets at
FVTOCI
Income tax recognized in other comprehensive
income		 For the Three Months
Ended March 31, 2021		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
For the Three Months
Ended March 31, 2020
(

(		 $ 11,397 )
4
$ 11,393)		 (

(		 $ 11,463 )
4
$ 11,459)
  • c. Income tax assessments

The income tax returns of the Company for the year ended December 31, 2018 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, 2019 had been assessed by the tax authorities.

28. EARNINGS PER SHARE EARNINGS PER SHARE

EARNINGS PER SHARE EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020

$ 0.62
$ 0.62
$ 0.67
$ 0.67

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

NET PROFIT FOR THE PERIOD

NET PROFIT FOR THE PERIOD
Net profit used in the computation of basic and diluted
earnings per share

Shares
Weighted average number of ordinary shares used in
computation of basic earnings per share
Effect of potentially dilutive ordinary shares:
Compensation of employees
Weighted average number of ordinary shares used in
the computation of diluted earnings per share		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
$ 564,969

For the Three Months
Ended March 31, 2021		 $ 609,486
Unit: Thousand shares

For the Three Months
Ended March 31, 2020


908,420
953
909,373

908,420
1,002
909,422

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.

  • 32 -

29. INFORMATION ON CASH FLOWS

Changes in liabilities arising from financing activities:

For the Three Months Ended March 31, 2021

Short-term borrowings

Short-term bills payable
Lease liabilities
Guarantee deposits
Other non-current liabilities

 January 1,
2021
Cash Flows		 Non-cash flow March 31,
2021
Adjustment of
changes in
exchange rates


$ 1,846,767
129,869
277,973
19,990
130

$ 2,274,729
 ( $ 438,158 )
(
29,950 )
(
31,864 )

5,594

-

($ 494,378)
 ( $ 5,149 )

-

4,293
(
129 )
(
8)

($ 993)



$ 1,403,460
99,919

250,402

25,455
122
$ 1,779,358

For the Three Months Ended March 31, 2020

Short-term borrowings

Short-term bills payable
Long-term borrowings
Lease liabilities
Guarantee deposits
Other non-current liabilities

 January 1,
2020		 Cash Flows Non-cash flow March 31,
2020
Adjustment of
changes in
exchange rates


$ 1,382,955
99,968
6,000
347,615
20,044
2,934

$ 1,859,516
 $ 631,377
(
49,968 )
(
6,000 )
(
34,453 )

117
(
565)

$ 540,508
 ( $ 17,992 )

-

-

1,323
(
113 )

37

($ 16,745)



$ 1,996,340
50,000
-

314,485

20,048
2,406
$ 2,383,279

30. CAPITAL RISK MANAGEMENT

The combined company's capital management objective is to ensure financial resources are available and operating plans are in place for working capital, capital expenditures, research and development expenses, repay liabilities and dividend disbursement, etc. in the next 12 months. The combined company manages its capital to ensure that entities in the combined company will be able to continue as going concerns while maximizing the return to shareholders through the optimization of debt and equity balance.

31. FINANCIAL INSTRUMENTS

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

  • 1) Fair value hierarchy

March 31, 2021

Financial assets at FVTPL
Unlisted shares

Mutual fund beneficiary certification
Debt securities

Total
 Level 1 Level 2 Level 3
$ 10,261

-

-

$ 10,261
 Total



$ -

2,362,495
-

$ 2,362,495

$ -

-
29,094

$ 29,094




$ 10,261
2,362,495
29,094
$ 2,401,850

(Continued)

  • 33 -

(Continued from the previous page)

Financial assets at FVTOCI
Investments in equity instruments
- Listed shares and emerging
market shares

- Unlisted shares

Total

December 31, 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

Total

March 31, 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

Total
 Level 1 Level 2 Level 3 Total


$ 386,043

-

$ 386,043

Level 1

$ -


-

$ -

Level 2

$ -

267,123

$ 267,123

Level 3

$ 386,043
267,123
$ 653,166
Total






$ -

1,461,304
-

$ 1,461,304

$ 311,908

-

$ 311,908

Level 1




$ -

-
29,032

$ 29,032

$ -


-

$ -

Level 2




$ 10,666

-

-

$ 10,666

$ -

204,755

$ 204,755

Level 3





$ 10,666
1,461,304
29,032
$ 1,501,002
$ 311,908
204,755
$ 516,663
Total






$ -

1,450,402
-

$ 1,450,402

$ 194,848

-

$ 194,848




$ -

-
30,790

$ 30,790

$ -


-

$ -




$ 5,328

-

-

$ 5,328

$ -

97,249

$ 97,249





$ 5,328
1,450,402
30,790
$ 1,486,520
$ 194,848
97,249
$ 292,097

For the three months ended March 31, 2021 and 2020, there was no transfer between Level 1 and Level 2 fair value measurement.

  • 34 -

  • 2) Reconciliation of financial instruments at Level 3 fair value measurement

For the Three Months Ended March 31, 2021

Financial assets Financial assets
at FVTPL		 Financial assets
at FVTPL		 Financial assets
**at FVTOCI **		 Financial assets
**at FVTOCI **		 Total
equity
instruments		 equity
instruments
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 March 31

Recognized in other gains and losses -
unrealized
(


(		 $ 10,666


405 )
-
-

$ 10,261

$ 405)

(
 $ 204,755


-

62,373
5)

$ 267,123
(
(

(		 $ 215,421

405 )
62,373
5)
$ 277,384
$ 405)

For the Three Months Ended March 31, 2020

Financial assets Financial assets
at FVTPL		 Financial assets
at FVTPL		 Financial assets
at FVTOCI		 Financial assets
at FVTOCI		 Total
equity
instruments		 equity
instruments
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 March 31

Recognized in other gains and losses -
unrealized
(


(		 $ 7,575


2,247 )
-

-

$ 5,328

$ 2,247)

(
(
 $ 124,055


-


26,799 )

7)

$ 97,249
(
(
(

(		 $ 131,630

2,247 )

26,799 )
7)
$ 102,577
$ 2,247)
  • 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.

  • 35 -

  • b. Categories of financial instruments

March 31, 2021 December 31, 2020 March 31, 2020

Financial assets
Financial assets at FVTPL
Mandatorily classified as at FVTPL $ 2,401,850
 $ 1,501,002 $ 1,486,520
Financial assets at amortized cost
(Note 1) 10,239,895 12,652,479 11,627,419
Financial assets at FVTOCI
Investments in equity instruments 653,166 516,663 292,097
Financial liabilities
Financial liabilities at amortized cost
(Note 2) 3,236,023 4,304,650 3,973,285

  • Notes 1: The balance includes financial assets measured at amortized cost, such as cash and cash equivalents, debt instrument investments, note receivables, account receivables, other receivables, and other financial assets.

  • Notes 2: The balance includes short-term borrowings, short-term bills payable, note payable, trade payables and other financial liabilities, which are financial liabilities measured at amortized cost.

  • c. Financial risk management objectives and policies

The combined company's major financial instruments include cash and cash equivalents, equity and debt investments, mutual funds, trade receivables, trade payables, and borrowings. The combined company's Financial Department provides services to the business, coordinates access to financial markets, monitors and manages the financial risks relating to the operations of the combined company 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.

  • 1) Market risk

The Group's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (1) below) and interest rates (see (2) below).

  • a) Foreign currency risk

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

For the monetary assets and liabilities of the combined company denominated in non-functional currencies on the balance sheet date (including those written off in the consolidated financial statements), refer to Notes 35.

Sensitivity analysis

The combined company is mainly exposed to the fluctuation of RMB, USD, EUR, AUD and CHF.

  • 36 -

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.

Profit or loss

Profit or loss

Profit or loss
 RMB Impact RMB Impact USD Impact USD Impact
For the Three
Months Ended
March 31, 2021		 For the Three
Months Ended
March 31, 2020
For the Three
Months Ended
March 31, 2021
For the Three
Months Ended
March 31, 2020
For the Three
Months Ended
March 31, 2021		 For the Three
Months Ended
March 31, 2020
For the Three
Months Ended
March 31, 2021
For the Three
Months Ended
March 31, 2020
$ 847 (iv)

 $ 679 (iv)
For the Three
Months Ended
March 31, 2021		 For the Three
Months Ended
March 31, 2020
$ 936 (v)
 $ 1,542 (v)

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

  • 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. Mainly derived from Euro-denominated bank deposits that were still outstanding at the company's balance sheet date and did not conduct cash flow hedging.

  • iv. Mainly derived from the AUD-denominated bank deposits and receivables that were still outstanding at the company's balance sheet date and did not carry out cash flow hedging.

  • 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 combined company was exposed to interest rate risk because entities in the combined company borrowed funds at both fixed and floating interest rates. The combined company 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 combined company's financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting periods were as follows.

March 31, 2021 December 31, 2020 March 31, 2020

Fair value interest rate risk
Financial assets $ 2,322,265 $ 1,136,118 $ 2,592,055
Financial liabilities 1,643,781 2,147,609 1,926,713
Cash flow interest rate risk
Financial assets 729,500 694,200 1,437,800
Financial liabilities 110,000 107,000 30,000
  • 37 -

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 the interest rate increases by 1% and all other variables remain unchanged, the combined company’s pre-tax profit for the nine-month period ended March 31, 2021 and 2020 would increase (decrease) by NT$1,549 thousand and NT$3,520 thousand, respectively; if the interest rate decreases by 1%, its impact on the pre-tax profit will be the negative of the same amount.

c) Other price risk

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

Sensitivity analysis

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

For the three months ended March 31, 2021, if prices rise/fall by 1%, the pre-tax income would increase/decrease by NT$24,019 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through profit or loss, while the pre-tax other comprehensive income for the three months ended March 31, 2020 would increase/decrease by NT$6,532 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income.

For the three months ended March 31, 2021, if prices rise/fall by 1%, the pre-tax income would increase/decrease by NT$14,865 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through profit or loss, while the pre-tax other comprehensive income for the three months ended March 31, 2021 would increase/decrease by NT$2,921 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income.

2) Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the combined company. As of the consolidated balance sheets date, the combined company's largest credit risk exposure from a counterparty's failure to fulfill obligations came from the carrying amount of financial assets recognized in the consolidated balance sheets.

The accounts receivable cover a number of customers in different industries and geographical areas. The combined company continuously evaluates the collateral and financial status obtained by accounts receivable customers.

  • 38 -

3) Liquidity risk

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

The combined company relies on bank borrowings as a significant source of liquidity. As of March 31, 2021, December 31, and March 31, 2020, the combined company had available bank loan facilities in the amounts of NT$4,797,991 thousand, NT$5,296,868 thousand, and NT$4,511,474 thousand, respectively.

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

The following table details the combined company's remaining contractual maturity for its non-derivative 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 combined company 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.

March 31, 2021

Non-derivative financial liabilities
Non-interest bearing

Lease liabilities
Variable interest rate liabilities
Fixed interest rate liabilities
Contract liabilities


December 31, 2020
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		 On Demand or
Less than
1 Month		 1-3 Months 3 Months to
1 Year		 3 Months to
1 Year		 1-5 Years
$ 550,382

5,356
34,011
497,601

89,080

$ 1,176,430

On Demand or
Less than
1 Month

$ 1,100,765

16,841
34,011
711,524
178,159

$ 2,041,300

1-3 Months		 $ 54,733
64,748
42,006
188,834

-

$ 350,321

3 Months to
1 Year




$ 25,455

180,350

-

-
-
$ 205,805
1-5 Years


$ 741,613
23,864
-
721,695
249,348

$ 1,736,520




$ 1,498,132

12,939

33,911

961,677
498,696

$ 3,005,355



$ 66,711

47,976
73,126

193,263
-

$ 381,076




$ 19,990

212,012

-

-
-
$ 232,002

December 31, 2020

  • 39 -

March 31, 2020

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		 On Demand or
Less than
1 Month		 1-3 Months
$ 1,233,357

14,980
-
1,365,587
215,125

$ 2,829,049
 3 Months to
1 Year		 3 Months to
1 Year		 1-5 Years


$ 609,812

5,917
-
656,148

107,563

$ 1,379,440




$ 59,304
68,256
30,002
-
-

$ 157,562




$ 20,048

250,645

-

-
-
$ 270,693

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.

32. RELATED PARTY TRANSACTIONS

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 combined company and other related parties are disclosed below.

  • a. Related parties and relationships
Name of Related Party
GeneFerm Biotechnology Co., Ltd. (GeneFerm)
 Relationship with the combined
company
The Company is one of the directors
  • b. Sales of goods
Sales of goods
Related Party Category For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
The Company is one of the directors $ 6,231 $ 5,059

Sales from related parties were conducted on normal commercial terms.

  • c. Purchases of goods
Purchases of goods
Related Party Category For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020
The Company is one of the directors $ 22,439 $ 21,505

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 March 31, 2021
 December 31, 2020 December 31, 2020 March 31, 2020
$ 5,312		 March 31, 2020
$ 5,312
GeneFerm $ 5,865 $ 9,011 $ 5,312

The outstanding receivables from related parties were unsecured. No loss allowances were set aside for receivables from related parties for the three months ended March 31, 2021 and 2020.

  • 40 -

  • e. Payables to related parties

Line Item
 Name of Related Party March 31, 2021

$ 19,187		 December 31, 2020
$ 20,526		 March 31, 2020 March 31, 2020
Trade payables to
related parties
 GeneFerm $ 22,581

The outstanding payables to related parties were unsecured.

  • f. Compensation of key management personnel
Compensation of key management personnel
Short-term employee benefits
Post-employment benefits		 For the Three Months
Ended March 31, 2021
For the Three Months
Ended March 31, 2020


$ 6,459
59
$ 6,518

$ 13,680
117
$ 13,797

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

33. PLEDGED ASSETS

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

 March 31, 2021 March 31, 2021 **December 31, 2020 ** **December 31, 2020 ** March 31, 2020 March 31, 2020


$ 4,016

-
84,596
60,210

$ 148,822

$ 4,016

-
121,362
55,122

$ 180,500

$ 4,013
85,320
133,450
56,462
$ 279,245

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

Except for those disclosed in other notes, significant commitments and contingencies of the combined company on March 31, 2021 are 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$3,589 thousand.

  • c. Unrecognized commitments for acquisition of property, plant, and equipment of approximately $165,910 thousand.

  • d. Unrecognized commitments for acquiring colostrum from dairymen were approximately 26,492 tons.

  • 41 -

35. INFORMATION ON FOREIGN CURRENCY-DENOMINATED ASSETS AND LIABILITIES OF SIGNIFICANT INFLUENCE

The following information is aggregated in foreign currencies other than the functional currency of the combined company. The exchange rate disclosed is the exchange rate of the foreign currency into the functional currency. Foreign currency assets and liabilities with significant influences are as follows:

March 31, 2021

Financial assets
Monetary items
USD

USD
RMB
AUD
CHF
CHF
Financial liabilities
Monetary items
USD
CHF		 Foreign Currencies
$ 5,424

1,358
207,135
1,301

2,050

360
3,158

1,379		 Exchange Rate

28.54 (USD:NTD)

6.57 (USD:RMB)
4.34 (RMB:NTD)
21.71 (AUD:NTD)
30.28 (CHF:NTD)
6.97 (CHF:RMB)


28.54 (USD:NTD)

6.97 (CHF:RMB)

 Carrying Amount Carrying Amount





$ 154,786
38,774
899,794
28,240
62,064
10,897
$ 1,194,555
$ 90,117
41,747
$ 131,864

December 31, 2020

Financial assets
Monetary items
USD

USD
RMB
AUD
CHF
CHF
Financial liabilities
Monetary items
USD
CHF		 Foreign Currencies
$ 12,230

2,785
206,642
1,576

1,450

754
2,294

1,086		 Exchange Rate

28.48 (USD:NTD)

6.52 (USD:RMB)
4.38 (RMB:NTD)
21.95 (AUD:NTD)
32.31 (CHF:NTD)
7.38 (CHF:RMB)


28.48 (USD:NTD)

7.38 (CHF:RMB)

 Carrying Amount Carrying Amount





$ 348,298
79,539
904,473
34,585
46,842
24,355
$ 1,438,092
$ 65,335
35,089
$ 100,424

March 31, 2020

Financial assets
Monetary items
USD

USD
EUR
RMB
AUD
CHF
CHF
Financial liabilities
Monetary items
USD
AUD
CHF		 Foreign Currencies
$ 25,164

6,426
937

23,223
1,775

1,450

457
1,133

560

269		 Exchange Rate

30.23 (USD:NTD)

7.09 (USD:RMB)
33.24 (EUR:NTD)
4.26 (RMB:NTD)
18.64 (AUD:NTD)
31.38 (CHF:NTD)
7.37 (CHF:RMB)


30.23 (USD:NTD)

18.64 (AUD:NTD)
7.37 (CHF:RMB)

 Carrying Amount Carrying Amount





$ 760,597
193,731
31,134
98,815
33,082
45,494
14,329
$ 1,177,182
$ 34,234
10,433
8,434
$ 53,101
  • 42 -

The combined company 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:


Functional
Currencies
NTD

RMB

CHF
 For the Three Months Ended March 31, 2021
Exchange Rate
Net Foreign
Exchange Gains
(Losses)
1 (NTD:NTD)
( $ 12,359 )

4.38 (RMB:NTD)
1,830

31.34 (CHF:NTD)

3

($ 10,526)		 For the Three Months Ended March 31, 2021
Exchange Rate
Net Foreign
Exchange Gains
(Losses)
1 (NTD:NTD)
( $ 12,359 )

4.38 (RMB:NTD)
1,830

31.34 (CHF:NTD)

3

($ 10,526)		 For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2020
Exchange Rate
1 (NTD:NTD)

4.38 (RMB:NTD)
31.34 (CHF:NTD)

 Exchange Rate
1 (NTD:NTD)

4.32 (RMB:NTD)
31.10 (CHF:NTD)

 Net Foreign
Exchange Gains
(Losses)
(

(
(
 $ 4,813
2,240
2)
$ 7,051

36. Supplementary Disclosures

  • a. Information on Significant Transactions

  • 1) Financing provided to others: See Table 1 attached.

  • 2) Endorsements/guarantees provided to others: See Table 2 attached.

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

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

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

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

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

  • 9) Trading in derivative instruments: None.

  • 10) Others: Intercompany relationships and significant intercompany transactions: Table 6.

  • b. Information on reinvestments (excluding investees in Mainland China): Table 7.

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

  • 43 -

37. 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 combined company's revenue and results from continuing operations by reportable segments:


by reportable segments:
For the Three Months Ended March 31, 2021
Sales from external customers

Sales among intersegments

Total sales

Interest income

Financial cost

Depreciation expenses

Amortization expenses

Operating segment income (loss)

Unallocated amount
Profit before income tax
For the Three Months Ended March 31, 2020
Sales from external customers

Sales among intersegments

Total sales

Interest income

Financial cost

Depreciation expenses

Amortization expenses

Operating segment income (loss)

Unallocated amount
Profit before income tax		 Standard Foods
Segment		 Standard Dairy
Products
Segment		 C hina Standard
Segment
 O ther Segments Adjustments
and
Eliminations		 Total















$ 3,178,330

263,449

$ 3,441,779

$ 3,965

$ 114

$ 56,126

$ 3,264

$ 842,087

$ 3,152,810

299,411

$ 3,451,221

$ 6,516

$ 258

$ 56,292

$ 1,804

$ 853,285














$ 493,539

170,262

$ 663,801

$ 818

$ 10

$ 12,552

$ 1,393

$ 101,323

$ 572,626

176,374

$ 749,000

$ 3,060

$ -

$ 12,200

$ 507

$ 119,936






(







(		 $ 3,781,451

497

$ 3,781,948

$ 28,448

$ 11,647

$ 59,549

$ 11,606

$ 230,804)

$ 2,552,345

173

$ 2,552,518

$ 21,414

$ 12,987

$ 59,318

$ 9,028

$ 191,814)






(







(		 $ 815,682

1,137

$ 816,819

$ 850

$ 2,544

$ 23,706

$ 3,790

$ 3,604)

$ 393,652

4,292

$ 397,944

$ 3,019

$ 2,767

$ 20,706

$ 2,406

$ 20,163)
(
(
(
(
(



(
(
(
(
(

 $ -


435,345)

$ 435,345)

$ 2,790)

$ 2,790)

$ 905)

$ -

$ 16,184



$ -


480,250)

$ 480,250)

$ 1,204)

$ 1,204)

$ 893)

$ -

$ 6,064


















$ 8,269,002
-
$ 8,269,002
$ 31,291
$ 11,525
$ 151,028
$ 20,053
$ 725,186
-
$ 725,186
$ 6,671,433
-
$ 6,671,433
$ 32,805
$ 14,808
$ 147,623
$ 13,745
$ 767,308
-
$ 767,308
  • 44 -

TABLE 1

STANDARD FOODS CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

No.
(Note 1)
Lender		 Borrower Financial
Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Balance at
March 31		 Amount Actually
Drawn		 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
Borrowing
Company		 Financing
Amount Limit		 Notes
Name Value
0
0
0
0
1
1
1
1
2
2
3
4
5		 Standard Foods
Corporation
Standard Foods
Corporation
Standard Foods
Corporation
Standard Foods
Corporation
Standard
Investment
(China) Co.,
Ltd.
Standard
Investment
(China) Co.,
Ltd.
Standard
Investment
(China) Co.,
Ltd.
Standard
Investment
(China) Co.,
Ltd.
Shanghai
Standard
Foods Co., Ltd
Shanghai
Standard
Foods 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
Standard
Beverage Ltd.
Shanghai
Dermalab
Corporation
Le Bonta
Wellness Co.,
Ltd.
Standard Foods
(Xiamen) Co.,
Ltd
Standard Foods
(China) Co.,
Ltd.

Standard
Investment
(China) Co.,
Ltd.

Standard Foods
(Xiamen) Co.,
Ltd
Standard
Investment
(China) Co.,
Ltd.
Standard
Investment
(China) Co.,
Ltd.

Standard
Investment
(China) Co.,
Ltd.		 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		 Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes		 $ 63,578
350,984
526,476
50,000
175,492
175,492
526,476
438,730
614,222
460,667
10,968
8,775
8,775		 $ 63,578
347,392
521,088
50,000
173,696
173,696
521,088
434,240
607,936
455,952
10,856
8,685
8,685		 $ 62,064
347,392
521,088
25,300
32,073
49,794
173,896
117,314
404,712
455,952
10,856
5,115
4,837		 1.000%
1.000%
1.000%
0.950%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%
1.000%		 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		 $ -
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-		 $ 7,073,795
(Note 3)
3,536,898
(Note 4)
3,536,898
(Note 4)
7,073,795
(Note 3)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,297,447
(Note 7)
1,297,447
(Note 7)
11,932
(Note 8)
197,622
(Note 9)
123,347
(Note 10)
$ 7,073,795
(Note 3)
7,073,795
(Note 5)
7,073,795
(Note 5)
7,073,795
(Note 3)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,972,527
(Note 6)
1,297,447
(Note 7)
1,297,447
(Note 7)
11,932
(Note 8)
197,622
(Note 9)
123,347
(Note 10)
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
Notes 11
  • 45 -

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.

Notes 3: The individual and total amount shall not exceed 40% of net value of Standard Foods Co., Ltd per the latest financial statements, which was calculated to be $7,073,795 thousand (the net value per financial statements of $17,684,488 thousand x 40% as of December 31, 2020).

Notes 4: The individual and total amount shall not exceed 20% of net value of Standard Foods Co., Ltd per the latest financial statements, which was calculated to be $3,536,898 thousand (the net value per financial statements of $17,684,488 thousand x 20% as of December 31, 2020).

Notes 5: The individual and total amount shall not exceed 40% of net value of Standard Foods Co., Ltd per the latest financial statements, which was calculated to be $7,073,795 thousand (the net value per financial statements of $17,684,488 thousand x 40% as of December 31, 2020).

Notes 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 $1,972,527 thousand (the net value per financial statements of $4,931,318 thousand x 40% as of December 31, 2020).

  • Notes 7: The individual and total amount shall not exceed 40% of the net value of Shanghai Standard Foods Co., Ltd. per the latest financial statements, which was calculated to be NT$1,297,447 thousand (the net value of NT$3,243,618 thousand per financial statements as of December 31, 2020 multiplied by 40%).

  • Notes 8: 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 $11,932 thousand (the net value per financial statements of $29,830 thousand x 40% as of December 31, 2020).

Notes 9: 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 $197,622 thousand (the net value per financial statements of $494,056 thousand x 40% as of December 31, 2020).

Notes 10: 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 $123,347 thousand (the net value per financial statements of $308,367 thousand x 40% as of December 31, 2020).

Notes 11: When the Consolidated Financial Statements are prepared, the amounts have been offset in a consolidated manner.

  • 46 -

TABLE 2

STANDARD FOODS CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

No.
(Note 1)		 Endorsement /
guarantee
Provider		 Guaranteed Party Guaranteed Party Endorse to single
entity Balance on
guarantee		 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)
Notes
Name Nature of
Relationships
(Note 2)
0 Standard Foods
Corporation		 Standard Beverage
Ltd.
(2)		 $ 14,147,590
(Note 3)		 $ 145,605 $ 145,605 $ - $ - 0.82% $ 17,684,488
(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 in which the Company holds, directly or indirectly, more than fifty percent (50%) of the voting shares.

c. The company that holds, directly or indirectly, more than fifty percent (50%) of the Company's voting shares.

d. The company in which the Company holds, directly or indirectly, more than fifty percent (50%) of the voting shares.

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.

Notes 3: The individual and total amount shall not exceed 80% of net value of Standard Foods Co., Ltd. per the latest financial statements, which was calculated to be $14,147,590 thousand (the net value per financial statements of $17,684,488 thousand x 40% as of December 31, 2020).

Notes 4: The individual and total amount shall not exceed 100% of net value of Standard Foods Co., Ltd. per the latest financial statements, which was calculated to be $17,684,488 thousand (the net value per financial statements of $17,684,488 thousand x 100% as of December 31, 2020).

Notes 5: Fill in Y if a listed parent company provides endorsements/guarantees for its subsidiary or if a subsidiary provides endorsements/guarantees for its listed parent company or if endorsements/guarantees involve mainland China.

  • 47 -

TABLE 3

STANDARD FOODS CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES) MARCH 31, 2021

(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 **March 31, ** 2021 Notes
Shares Carrying Amount Percentage of
Ownership		 Fair Value
Standard Foods Corporation Shares
Shares
Shares
Shares
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Debt
securities		 Far Eastern International Commercial Bank
Co., Ltd.
Chunghwa Telecom Co., Ltd.
GeneFerm Biotechnology Co., Ltd.
Dah Chung Bills Finance Corp.
Mega Diamond Money Market
Jih Sun Money Market Fund
Taishin 1699 Money Market Fund
CTBC Hwa-Win Money Market Fund
FSITC Taiwan Money Market Fund
Cathay Taiwan Money Market Fund
Cathay China Domestic Demand Growth Fund
Cathay Target Date 2029 Fund of Funds
Hua Nan Phoenix Money Market Fund
Cathay Glb Aggressive FOFs
Taishin Ta-Chong Money Market Fund
President Hang Seng TECH Index ETN
CODEIS Smart Cash Note		 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 -
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 -
current
Financial assets at FVTPL -
current		 1,416,950
48,600
2,145,110
1,243,213
12,512,356
4,019,723
24,922,335
23,680,651
30,989,574
8,213,389
2,621,859
4,720,915
9,149,689
2,284,844
9,773,943
5,900,000
10,000		 $ 15,161
5,419
72,719
15,354
158,394
60,142
340,324
263,158
478,634
103,009
81,435
57,580
150,013
57,350
140,056
60,062
29,094		 -
-
7.7%
0.3%
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 15,161
5,419
72,719
15,354
158,394
60,142
340,324
263,158
478,634
103,009
81,435
57,580
150,013
57,350
140,056
60,062
29,094

(Continued)

  • 48 -

(Continued from the previous page)

Holding Company Name Type of
Marketable
Securities		 Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account March 31, 2021 Notes
Shares Carrying Amount Percentage of
Ownership		 Fair Value
Standard Dairy Products
Taiwan Ltd.		 Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds
Mutual funds		 Techgains Pan-Pacific Corporation
Authenex, Inc.
Paradigm Venture Capital Corporation
U-Teck Environment Corporation, Ltd.
Octamer, Inc. - Series E Preferred Stock
Octamer, Inc. - Series F Preferred Stock
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
Mega Diamond Money Market Fund
Jih Sun Money Market Fund
Taishin 1699 Money Market Fund
FSITC Taiwan Money Market Fund
Cathay China Domestic Demand Growth Fund
Cathay Target Date 2029 Fund of Funds
Cathay Glb Aggressive FOFs		 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
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 FVTPL -
current
Financial assets at FVTPL -
current		 500,000
2,424,242
180,376
11,200
800,000
107,815
3,455
71,397
29,173
31,135
29,102
12,938
3,963,725
5,866,056
3,409,059
2,112,339
873,953
786,819
761,615		 $ -
-
1,876
-
-
-
-
-
-
-
-
-
50,177
87,767
46,552
32,625
27,145
9,597
19,116		 0.9%
5.5%
7.0%
0.2%
7.8%
1.0%
1.2%
1.2%
1.2%
1.3%
1.3%
1.2%
-
-
-
-
-
-
-		 $ -
-
1,876
-
-
-
-
-
-
-
-
-
50,177
87,767
46,552
32,625
27,145
9,597
19,116

(Continued)

  • 49 -
Holding Company Name Type of
Marketable
Securities		 Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account **March 31, ** 2021 Notes
Shares Carrying Amount Percentage of
Ownership		 Fair Value
Charng Hui Ltd.
Standard Beverage Ltd.
Domex Technology
Corporation
Accession Limited		 Shares
Shares
Shares
Shares
Shares
Mutual funds
Mutual funds
Mutual funds
Shares
Shares
Shares
Shares
Mutual funds
Mutual funds
Shares
Shares
Mutual funds		 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
Global Strategic Investment Co., Ltd.
Hong Da Leasing & Finance Co., Ltd.
CNEX Co., Ltd.
Amphastar Pharmaceuticals Inc. (AMPH)
Fuh Hwa Greater China Mid and Small Cap
Fund
Franklin Templeton SinoAm Franklin
Templeton Global Bond Fund of Funds -
Accu.
InnoComm Mobile Technology Corp.
AsiaVest Liquidation Co.
Term Liquidity Fund		 Parent of Charng Hui
Ltd.
Charng Hui Ltd. is one
of the directors
Charng Hui Ltd. is one
of the directors		 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
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 FVTOCI -
non-current
Financial assets at FVTOCI -
non-current
Financial assets at FVTPL -
current		 6,669,471
91,440
803,258
1,596,000
90,000
1,000,000
1,453,360
51,340
850,500
8,297,000
1,000,000
7,742
225,000
282,988
3,600,000
200
33,453		 $ 390,831
9,236
20,804
209,874
52,830
12,580
18,602
701
4,338
-
-
4,047
3,546
3,622
250,704
1,065
100,308		 0.7%
-
-
2.0%
-
-
-
-
1.9%
23.7%
6.0%
-
-
-
13.4%
0.7%
-		 $ 390,831
9,236
20,804
209,874
52,830
12,580
18,602
701
4,338
-
-
4,047
3,546
3,622
250,704
1,065
100,308		 Notes

Note: The amounts presented above were eliminated upon consolidation.

  • 50 -

TABLE 4

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 THREE MONTHS ENDED MARCH 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name Counter-party Nature of
Relationships		 Transaction Details Transaction Details **Abnormal Transaction ** **Abnormal Transaction ** Notes/Trade Receivable (Payable) Notes/Trade Receivable (Payable) Notes
Purchases
(Sales)		 Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance Ratio to Total
Notes or Accounts
Receivable
(payable)
Standard Foods
Corporation
Standard Dairy
Products Taiwan
Ltd.
Shanghai Standard
Foods Co., Ltd
Standard Investment
(China) Co., Ltd.
Standard Foods
(China) Co., Ltd.
Standard Investment
(China) Co., Ltd.
Standard Foods
(Xiamen) Co., Ltd
Standard Investment
(China) Co., Ltd.		 Standard Dairy
Products Taiwan Ltd.
Standard Foods
Corporation
Standard Investment
(China) Co., Ltd.
Shanghai Standard
Foods Co., Ltd
Standard Investment
(China) Co., Ltd.
Standard Foods (China)
Co., Ltd.
Standard Investment
(China) Co., Ltd.
Standard Foods
(Xiamen) Co., Ltd
The Company's
subsidiary
Parent company of
Standard Dairy
Products Taiwan
Ltd.
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		 Sales
Purchases
Purchases
Sales
Sales
Purchases
Purchases
Sales
Sales
Purchases
Sales
Purchases		 ( $ 263,449 )
170,262
263,449
(
170,262 )
(
434,577 )
102,592
434,577
(
102,592 )
(
1,203,492 )
1,203,492
(
995,571 )
995,571
7.65%
10.43%
56.64%

25.65%

75.21%

15.13%
16.51%

2.87%

99.52%

45.67%

84.86%

37.78%		 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		 -
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-		 $ 113,085
-
(
113,085 )
-
151,884
(
41,730 )
(
151,884 )
41,730
400,061
(
400,061 )
237,045
(
237,045 )		 4.97%
-

39.00%
-
96.94%

61.46%

12.40%

2.09%

47.90%

32.67%
100.00%

19.36%		 Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes

Note: The amounts presented above were eliminated upon consolidation.

  • 51 -

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 MARCH 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name Counter-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 loss
amount		 Allowance for loss
amount		 Notes
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)
Co., Ltd.
Standard Investment (China)
Co., Ltd.
Standard Foods (Xiamen) Co.,
Ltd		 Standard Dairy Products Taiwan
Ltd.
Standard Foods (China) Co., Ltd.
Standard Foods (Xiamen) Co., Ltd
Standard Investment (China) Co.,
Ltd.
Standard Foods (Xiamen) Co., Ltd
Standard Investment (China) Co.,
Ltd.
Standard Foods (China) Co., Ltd.
Standard Foods (Xiamen) Co., Ltd
Standard Investment (China) Co.,
Ltd.		 The Company's subsidiary
The Company's subsidiary
The Company's subsidiary
Brother company of Shanghai Standard Foods Co., Ltd.
Brother company of Shanghai Standard Foods Co., Ltd.
Parent company of Standard Foods (China) Co., Ltd.
Standard Investment (China) Co., Ltd.'s subsidiary
Company
Standard Investment (China) Co., Ltd.'s subsidiary
Company
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


Financing receivables

Other receivables


Trade receivables

Other receivables


Trade receivables

Finance receivables
Other receivables


Trade receivables

Finance receivables
Other receivables


Trade receivables

Other receivables

 $ 113,085

2,424
$ 115,509
$ 347,392

3,008
$ 350,400
$ 521,088

3,974
$ 525,062
$ 151,884
404,712

5,906
$ 562,502
$ 455,952

1,241
$ 457,193
$ 400,061

8,931
$ 408,992
$ 134
117,314

5,039
$ 122,487
$ 24
173,896

3,205
$ 177,125
$ 237,045

1,263
$ 238,308		 8.76
4.94
4.62
12.26
48.00
5.22		 $ -

-
$ -
$ -

-
$ -
$ -

-
$ -
$ -
-

-
$ -
-

-
$ -
$ -

-
$ -
$ -
-

-
$ -
$ -
-

-
$ -
$ -

-
$ -










$ 14,134 (Note 1)

2,424(Note 1)
$ 16,558(Note 1)
$ 347,392 (Note 1)

3,008(Note 1)
$ 350,400(Note 1)
$ - (Note 1)

- (Note 1)
$ - (Note 1)
$ 70,251 (Note 1)
- (Note 1)

2,897(Note 1)
$ 73,148(Note 1)
- (Note 1)

- (Note 1)
$ - (Note 1)
$ 146,134 (Note 1)

5,050(Note 1)
$ 151,184(Note 1)
$ - (Note 1)
- (Note 1)

- (Note 1)
$ - (Note 1)
$ - (Note 1)
- (Note 1)

- (Note 1)
$ - (Note 1)
$ 592 (Note 1)

1,263(Note 1)
$ 1,855(Note 1)		 $ -
-
$ -
$ -
-
$ -
$ -
-
$ -
$ -
-
-
$ -
-
-
$ -
$ -
-
$ -
$ -
-
-
$ -
$ -
-
-
$ -
$ -
-
$ -		 (Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)

Notes 1: Amount received as of May 5, 2021.

Notes 2: The amount was eliminated upon consolidation.

  • 52 -

TABLE 6

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021

(In Thousands of New Taiwan Dollars)

No.
(Note 1)		 Name of 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
0
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
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		 Standard Dairy Products
Standard Dairy Products
Standard Dairy Products
Standard Dairy Products
Standard Dairy Products
Standard Beverage
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		 1
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		 Trade receivables - related parties
Other receivables - related parties
Sales
Purchases
Royalty revenue
Other receivables - related parties
Financing receivables - related parties
Interest income
Service revenue (recognized under sundry revenue)
Financing receivables - related parties
Other receivables - related parties
Financing receivables - related parties
Interest income
Other receivables - related parties
Financing 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
Sales
Purchases		 $ 113,085
2,424
263,449
170,262
1,891
117
25,300
20
330
62,064
3,008
347,392
865
3,974
521,088
1,297
151,884
404,712
5,906
41,730
916
434,577
102,592
395
58
925
4,799
9,979
4,785		 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 0.950% per annum
Interest rate 0.950% per annum
According to the general conditions
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
Interest rate 1.000% per annum
According to the general conditions
Interest rate 1.000% 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 1.000% 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		 0.4%
-
3.2%
2.1%
-
-
0.1%
-
-
0.2%
-
1.3%
-
-
1.9%
-
0.6%
1.5%
-
0.2%
-
5.3%
1.2%
-
-
-
-
0.1%
0.1%

(Continued)

  • 53 -
No.
(Note 1)		 Name of 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)
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
2
2
2		 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
China Standard Investment
China Standard Investment
China Standard Investment		 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
Le Bonta Wellness
Shanghai Le Ho Industrial Co., Ltd.
Shanghai Le Ho Industrial Co., Ltd.		 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
1
3
3		 Other receivables - related parties
Financing receivables - related parties
Interest income
Trade receivables - related parties
Other receivables - related parties
Financing receivables - related parties
Trade payables - related parties
Other payables - related parties
Sales
Purchases
Interest income
Other income
Rental expenses
Other receivables - related parties
Financing receivables - related parties
Interest income
Expenses (social expenses and other expenses)
Trade receivables - related parties
Other receivables - related parties
Financing receivables - related parties
Trade payables - related parties
Other payables - related parties
Sales
Purchases
Interest income
Other income
Other receivables - related parties
Financing receivables - related parties
Trade payables - related parties
Sales
Purchases
Interest income
Other expenses
Other payables - related parties
Financing payables-related parties		 $ 1,241
455,952
1,149
134
5,039
117,314
400,061
8,931
213
1,203,492
1,180
5,086
24
300
32,073
305
82
24
3,205
173,896
237,045
1,263
162
995,571
4,307
3,236
206
49,794
110
2
925
209
78
36
5,115		 According to the general conditions
Interest rate 1.000% per annum
Interest rate 1.000% per annum
According to the general conditions
According to the general conditions
Interest rate 1.000% per annum
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
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
According to the general conditions
According to the general conditions
Interest rate 1.000% per annum
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
According to the general conditions
According to the general conditions
Interest rate 1.000% per annum
According to the general conditions
According to the general conditions
According to the general conditions
Interest rate 1.000% per annum
According to the general conditions
According to the general conditions
Interest rate 1.000% per annum		 -
1.7%
-
-
-
0.4%
1.5%
-
-
14.6%
-
0.1%
-
-
0.1%
-
-
-
-
0.6%
0.9%
-
-
12.0%
0.1%
-
-
0.2%
-
-
-
-
-
-
-

(Continued)

  • 54 -
No.
(Note 1)		 Name of 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)
2
2
2
2
2
2
2
3
3
4
4
4
4
4
4
4
4
5
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
China Standard Foods
Le Bonta Wellness
LeBonta Wellness		 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
Shanghai Le Ben De
Shanghai Le Ben De
Dermalab
Dermalab
Le Bonta Wellness
Le Bonta Wellness
Le Bonta Wellness
Le Bonta Wellness
Le Bonta Wellness
Xiamen Standard
Xiamen Standard
Xiamen Standard
Shanghai Le Ben De
Shanghai LeBen De		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Interest expenses
Other payables - related parties
Financing payables - related parties
Interest expenses
Other payables - related parties
Financing payables - related parties
Interest expenses
Trade payables - related parties
Purchases
Trade receivables - related parties
Other receivables - related parties
Sales
Rental income
Other expenses
Trade receivables - related parties
Other payables - related parties
Sales
Sales
Purchases		 $ 34
32
4,837
34
30
10,856
27
41,747
25,347
554
832
495
905
1,037
43
2,291
38
48
52		 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
Interest rate 1.000% 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
According to the generalconditions		 -
-
-
-
-
-
-
0.2%
0.3%
-
-
-
-
-
-
-
-
-
-

Notes 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.

Notes 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.

  • Notes 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.

Notes 4: The amount was eliminated upon consolidation.

  • 55 -

TABLE 7

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEE COMPANIES (EXCLUDING MAINLAND INVESTED COMPANIES) FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

Investor
Company		 Investee Company Location Main Businesses
and Products		 Original Investment Amount Original Investment Amount As of March 31, 2021 As of March 31, 2021 As of March 31, 2021 Net Income (Loss)
of the Investee
 Share of Profits
(Loss)		 Notes
March 30, 2021 December 31,
2020		 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 Ltd.
Charng Hui Ltd.
Domex Technology
Corporation
Standard Beverage Ltd.
Le Bonta Wellness
International Co.
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
5,953
9,056
379,489
96
4,708,566		 $3,936,267
4,710,865
300,853
230,000
114,116
79,072
14,350
9,056
335,215
96
4,708,566		 123,600,000
150,124,815
30,000,000
24,100,000
10,374,399
7,907,000
Notes 4
Notes 4
4,050
3,000
150,050,815		 100%
100%
100%
100%
52%
100%
100%
100%
100%
100%
100%		 $3,591,730
5,422,734
1,090,412
418,220
347,702
83,876
446
8,561
215,963
-
5,422,247		 ( $ 1,034 )
(
235,849 )
81,073
(
592 )
18,280
289
(
115 )
-
(
3,536 )
-
(
235,766 )		 ( $ 2,293 )
(Note 1)
(
235,849 )
83,822
(Note 2)
(
592 )
9,507
279
(Note 3)
(
115 )
-		 Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Subsidiary
(Note 5)
Sub-subsidiary
(Note 5)
Third-tier
subsidiary
(Note 5)
Sub-subsidiary
(Note 5)

Note 1: This amount was the share of profit from the investee of NT$1,034 thousand minus the unrealized gain on sidestream transactions of NT$1,259 thousand.

Note 2: This amount was the share of profit of the investee of $81,073 thousand plus the unrealized gain on upstream transactions of $2,749 thousand.

Note 3: This amount was the share of profit from the investee of NT$289 thousand plus the realized profit on upstream transactions of NT$10 thousand.

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

Note 5: The amount was eliminated upon consolidation.

  • 56 -

TABLE 8

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

Investee
Company in
Mainland China		 Main Businesses
and Products		 Paid-in Capital Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2021		 Remittance or Recovery of
Funds		 Remittance or Recovery of
Funds		 Remittance or Recovery of
Funds		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
March 31, 2021		 Net Income
(Loss) of the
Investee		 % of
Ownership of
Direct or
Indirect
Investment		 Investment Profit
(Loss)
Recognized
(Note 2)		 Carrying
Amount as of
March 31, 2021		 Accumulated
Repatriation
of Investment
Income as of
March 31,
2021		 Notes
Outward Inward
Shanghai Standard
Foods Co., Ltd
Standard
Investment
(China) Co., Ltd.
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)		 $ 8,095
(
230,601 )
(
4,906 )
2,189
(
11,930 )
97
(
29,019 )
(
4,619 )
(
2,814 )		 100.0%
99.0%
99.0%
99.0%
99.5%
100.0%
99.0%
100.0%
100.0%		 $ 9,243
(Note 9)
(
228,295 )
(Note 9)
(
689 )
(Note 9)
2,167
(Note 10)
(
11,872 )
(Note 10)
97
(Note 10)
(
18,192 )
(Note 10)
(
4,619 )
(Note 10)
(
2,814 )
(Note 10)		 $ 3,229,489
4,630,759
1,989,139
10,416
163,084
29,773
1,429,725
486,945
303,997		 $ -
-
-
-
-
-
-
-
-		 Notes 12
Notes 12
Notes 12
Notes 12
Notes 12
Notes 12
Notes 12
Notes 12
Notes 12
Accumulated Outward Remittance for Investment
in Mainland China as of March31,2021		 Investment Amounts Authorized by Investment
Commission,MOEA		 Upper Limit on the Amount of Investment
Stipulated byInvestmentCommission,MOEA
$8,919,525 $8,919,525 Unlimitedamountof investment(Note11)

  • 57 -

  • Notes 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.

  • Notes 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.

Notes 3: Accession Ltd. is the investor company in third region.

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

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

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

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

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

  • Notes 9: The basis for recognition of investment profit and loss is Note 2.(2). Item C is based on the financial statements of the investee reviewed by CPAs of the parent company in Taiwan during the same period.

  • Notes 10: The basis for recognition of investment profit and loss is Note 2.(2). Item C is based on the financial statements of the investee that have not been reviewed by any CPA during the same period.

  • Notes 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.

  • Notes 12: The amount was eliminated upon consolidation.

  • 58 -

TABLE 9

STANDARD FOODS CORPORATION

INFORMATION OF MAJOR SHAREHOLDERS March 31, 2021

Name of Major Shareholder Shares Shares
Number of Shares Held 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
Nan Shan Life Insurance Company, Ltd.		 157,008,400
133,125,408
108,503,160
46,406,000		 17.15%
14.54%
11.85%
5.07%

  • Notes 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.

  • Notes 2: If the shares above 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.

  • 59 -

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