SFC - Interim / Quarterly Report 2021

Stock code: 1227

Standard Foods Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Report for the Nine Months Ended September 30, 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 September 30, 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

TER-FUNG TSAO Chairman

November 8, 2021

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Standard Foods Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Standard Foods Corporation and its subsidiaries (the “Group”) as of September 30, 2021 and 2020 and the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 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 September 30, 2021 and 2020, combined total assets of these non-significant subsidiaries were NT$9,380,275 thousand and NT$8,467,405 thousand, respectively, representing 35% and 33%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$3,728,414 thousand NT$3,291,028 thousand, respectively, representing 40% and 40%, respectively, of the consolidated total liabilities; for the three-month periods ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the amounts of combined comprehensive income of these subsidiaries were NT$113,391 thousand, NT$208,390 thousand, NT$421,370 thousand and NT$359,818 thousand, respectively, representing 18%, 18%, 20% and 14%, 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.

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 consolidated financial position of the Group as of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 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 Han-Ni Fang.

Deloitte & Touche Taipei, Taiwan Republic of China

November 8, 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.

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020, AND SEPTEMBER 30, 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) 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 shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS (Note 24) Total equity TOTAL LIABILITIES AND EQUITY	September 30, 2021(Reviewed) Amount ％ $ 2,688,422 10 963,363 4 304,515 1 2,532,113 9 43,236 - 4,969,007 18 7,654 - 3,383 - 269,782 1 1,462 - 6,167,735 23 1,748,854 7 73,857 - 19,773,383 73 10,582 - 449,751 2 601,202 2 4,072,831 15 692,162 2 786,477 3 558 - 98,965 - 463,583 2 21,391 - 6,116 - 200,163 1 7,403,781 27 $ 27,177,164 100 $ 1,959,576 7 249,882 1 216,935 1 662,664 2 1,806,427 7 10,966 - 3,116,958 12 245,888 1 102,779 - 116,753 - 8,488,828 31 340,966 1 253,125 1 250,286 1 23,972 - 868,349 3 9,357,177 34 9,150,897 34 144,066 - 3,606,189 13 577,494 2 4,282,644 16 8,466,327 31 ( 330,906) ( 1) ( 21,182) - 17,409,202 64 410,785 2 17,819,987 66 $ 27,177,164 100	September 30, 2021(Reviewed) Amount ％ $ 2,688,422 10 963,363 4 304,515 1 2,532,113 9 43,236 - 4,969,007 18 7,654 - 3,383 - 269,782 1 1,462 - 6,167,735 23 1,748,854 7 73,857 - 19,773,383 73 10,582 - 449,751 2 601,202 2 4,072,831 15 692,162 2 786,477 3 558 - 98,965 - 463,583 2 21,391 - 6,116 - 200,163 1 7,403,781 27 $ 27,177,164 100 $ 1,959,576 7 249,882 1 216,935 1 662,664 2 1,806,427 7 10,966 - 3,116,958 12 245,888 1 102,779 - 116,753 - 8,488,828 31 340,966 1 253,125 1 250,286 1 23,972 - 868,349 3 9,357,177 34 9,150,897 34 144,066 - 3,606,189 13 577,494 2 4,282,644 16 8,466,327 31 ( 330,906) ( 1) ( 21,182) - 17,409,202 64 410,785 2 17,819,987 66 $ 27,177,164 100		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	September 30, 2020(Reviewed)	September 30, 2020(Reviewed)	September 30, 2020(Reviewed)
		Amount $ 2,688,422 963,363 304,515 2,532,113 43,236 4,969,007 7,654 3,383 269,782 1,462 6,167,735 1,748,854 73,857 19,773,383 10,582 449,751 601,202 4,072,831 692,162 786,477 558 98,965 463,583 21,391 6,116 200,163 7,403,781 $ 27,177,164 $ 1,959,576 249,882 216,935 662,664 1,806,427 10,966 3,116,958 245,888 102,779 116,753 8,488,828 340,966 253,125 250,286 23,972 868,349 9,357,177 9,150,897 144,066 3,606,189 577,494 4,282,644 8,466,327 330,906) 21,182) 17,409,202 410,785 17,819,987 $ 27,177,164		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 $ 2,701,347 709,982 210,557 2,428,864 15,566 6,134,100 9,088 2,881 269,746 841 4,792,340 1,286,297 57,213 18,618,822 6,239 205,078 - 4,211,020 637,600 838,638 817 104,322 458,809 24,774 3,430 188,130 6,678,857 $ 25,297,679 $ 1,277,117 149,832 245,792 371,043 1,973,379 11,452 2,894,867 281,409 80,170 100,512 7,385,573 336,088 210,817 256,008 24,196 827,109 8,212,682 9,150,897 127,392 3,287,022 577,494 4,263,521 8,128,037 591,693) 21,182) 16,793,451 291,546 17,084,997 $ 25,297,679	％
	( (		( (		( (		11 3 1 10 - 24 - - 1 - 19 5 - 74 - 1 - 16 3 3 - - 2 - - 1 26 100 5 1 1 1 8 - 12 1 - - 29 1 1 1 - 3 32 36 1 13 2 17 32 ( 2) - 67 1 68 100

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

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (REVIEWED, NOT AUDITED)

(IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE)

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) 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 (loss) for the period, net of income 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 September 30, 2021 Amount ％ $ 8,668,586 100 6,581,863 76 2,086,723 24 962,188 11 268,082 3 45,712 1 1 - 1,275,983 15 810,740 9 22,147 - 22,550 - ( 30,666 ) - ( 12,323) - 1,708 - 812,448 9 203,352 2 609,096 7 45,526 - ( 1) - 45,525 - ( 41,737 ) - 8,304 - ( 33,433) - 12,092 - $ 621,188 7 $ 590,619 7 18,477 - $ 609,096 7 $ 566,718 7 54,470 - $ 621,188 7 $ 0.65 $ 0.65	For the Three Months Ended September 30, 2020 Amount ％ $ 9,600,461 100 6,800,345 71 2,800,116 29 1,231,506 13 274,235 3 39,885 - 630 - 1,546,256 16 1,253,860 13 24,366 - 9,414 - 41,011 - ( 9,224) - 65,567 - 1,319,427 13 350,727 3 968,700 10 54,205 - 6 - 54,211 - 183,429 2 ( 36,497) - 146,932 2 201,143 2 $ 1,169,843 12 $ 951,165 10 17,535 - $ 968,700 10 $ 1,136,594 12 33,249 - $ 1,169,843 12 $ 1.05 $ 1.05	For the Three Months Ended September 30, 2020 Amount ％ $ 9,600,461 100 6,800,345 71 2,800,116 29 1,231,506 13 274,235 3 39,885 - 630 - 1,546,256 16 1,253,860 13 24,366 - 9,414 - 41,011 - ( 9,224) - 65,567 - 1,319,427 13 350,727 3 968,700 10 54,205 - 6 - 54,211 - 183,429 2 ( 36,497) - 146,932 2 201,143 2 $ 1,169,843 12 $ 951,165 10 17,535 - $ 968,700 10 $ 1,136,594 12 33,249 - $ 1,169,843 12 $ 1.05 $ 1.05
			Amount $ 9,600,461 6,800,345 2,800,116 1,231,506 274,235 39,885 630 1,546,256 1,253,860 24,366 9,414 41,011 9,224) 65,567 1,319,427 350,727 968,700 54,205 6 54,211 183,429 36,497) 146,932 201,143 $ 1,169,843 $ 951,165 17,535 $ 968,700 $ 1,136,594 33,249 $ 1,169,843 $ 1.05 $ 1.05
		( (

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

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(REVIEWED, NOT AUDITED)

(IN THOUSANDS OF NEW TAIWAN DOLLARS)

				EquityAttributable to Owners ofthe Company	EquityAttributable to Owners ofthe Company	EquityAttributable to Owners ofthe Company	EquityAttributable to Owners ofthe Company			Non-controlling Interests $ 272,564 - - - - ( 23,932) 24,931 17,983 42,914 $ 291,546 $ 331,139 - - - ( 33,504) 31,780 81,370 113,150 $ 410,785	Total equity
Ordinary Shares $ 9,150,897 - - - - - - - - $ 9,150,897 $ 9,150,897 - - - - - - - $ 9,150,897	Capital surplus $ 109,718 - - - 17,674 - - - - $ 127,392 $ 127,392 - - 16,674 - - - - $ 144,066		Retained	earnings	Total $ 8,016,188 - - ( 2,424,987 ) - - 2,536,836 - 2,536,836 $ 8,128,037 $ 8,782,873 - ( 2,287,724 ) - - 1,971,178 - 1,971,178 $ 8,466,327	Other Equity Items		Total ( $ 577,494 ) - - - - - - ( 14,199) ( 14,199) ($ 591,693) ( $ 355,492 ) - - - - - 24,586 24,586 ($ 330,906)	Treasury shares ( $ 21,182 ) - - - - - - - - ($ 21,182) ( $ 21,182 ) - - - - - - - ($ 21,182)
						Exchange differences on translating the financial statements of foreign operations ( $ 693,038 ) - - - - - - ( 35,211) ( 35,211) ($ 728,249) ( $ 572,206 ) - - - - - ( 130,872) ( 130,872) ($ 703,078)	Unrealized gain (loss) on financial assets at FVTOCI $ 115,544 - - - - - - 21,012 21,012 $ 136,556 $ 216,714 - - - - - 155,458 155,458 $ 372,172
		Legal reserve $ 2,945,412 341,610 - - - - - - - $ 3,287,022 $ 3,287,022 319,167 - - - - - - $ 3,606,189	Special reserve $ 330,945 - 246,549 - - - - - - $ 577,494 $ 577,494 - - - - - - - $ 577,494	Unappropriated Earnings $ 4,739,831 ( 341,610 ) ( 246,549 ) ( 2,424,987 ) - - 2,536,836 - 2,536,836 $ 4,263,521 $ 4,918,357 ( 319,167 ) ( 2,287,724 ) - - 1,971,178 - 1,971,178 $ 4,282,644
										( (	$ 16,950,691 - - ( 2,424,987 ) 17,674 ( 23,932) 2,561,767 3,784 2,565,551 $ 17,084,997 $ 18,015,627 - ( 2,287,724 ) 16,674 ( 33,504) 2,002,958 105,956 2,108,914 $ 17,819,987

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

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (REVIEWED, NOT AUDITED) (IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit losses (or reversal) Net loss (gain) recognized on financial assets and liabilities measured at FVTPL Financial cost Interest income Dividend income Net loss on disposal of property, plant and equipment Net loss on disposal of investments Others Net changes in operating assets and liabilities Financial assets mandatorily classified as at FVTPL Notes receivable Trade receivables Trade receivables from related parties Other receivables Inventories Prepayments Other current assets Net defined benefit assets Contract liabilities Notes payable Trade payables Trade payables to related parties Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations	For the Nine Months Ended September 30, 2021 $ 2,518,560 451,114 57,388 ( 2,934 ) 34,333 38,302 ( 83,836 ) ( 23,812 ) 8,670 259 1,175 491,111 ( 40,537 ) 1,264,677 1,357 ( 38,566 ) ( 1,100,647 ) ( 190,647 ) ( 10,350 ) ( 2,595 ) ( 524,774 ) 579,299 ( 294,444 ) ( 9,560 ) ( 298,122 ) 45,824 ( 28,664) 2,842,581	For the Nine Months Ended September 30, 2020
		$ 3,394,579 443,858 45,767 8,734 ( 1,412 ) 40,541 ( 91,312 ) ( 9,584 ) 2,744 - - ( 39,294 ) ( 12,577 ) 278,123 ( 9,088 ) ( 71,564 ) ( 1,149,783 ) 92,938 ( 27,748 ) ( 2,512 ) ( 79,089 ) 56,282 ( 36,982 ) ( 14,690 ) 52,445 71,934 ( 43,553) 2,898,757

(Continued)

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Interest received Interest paid Income tax paid Net cash generated from operating activities 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 Decrease 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 Increase in short-term notes and bills payable Payments for long-term borrowings Payments for principal portion of lease liabilities Increase in other financial liabilities Decrease in other non-current liabilities Cash dividends distributed Net cash 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 FOR THE CURRENT PERIOD CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS, END OF THE PERIOD	For the Nine Months Ended September 30, 2021 $ 76,586 ( 38,605 ) ( 672,300) 2,208,262 ( 3,765,103 ) 2,343,897 ( 257,394 ) 8,172 ( 10,957 ) 2,174 ( 16,851 ) - ( 37,265 ) 23,812 ( 1,709,515) 137,250 - 120,013 - ( 66,192 ) 4,165 - ( 2,304,554) ( 2,109,318) ( 33,025) ( 1,643,596 ) 4,332,018 $ 2,688,422	For the Nine Months Ended September 30, 2020
		$ 86,152 ( 41,703 ) ( 962,664) 1,980,542 ( 3,248,766 ) 3,028,071 ( 212,235 ) 14,718 ( 41,236 ) 2,068 - 82,757 ( 50,742 ) 9,584 ( 415,781) - ( 99,136 ) 49,864 ( 6,000 ) ( 67,517 ) 1,812 ( 566 ) ( 2,431,245) ( 2,552,788) ( 16,529) ( 1,004,556 ) 3,705,903 $ 2,701,347

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

STANDARD FOODS CORPORATION AND SUBSIDIARIES

Notes to consolidated financial statements For the Nine Months Ended September 30, 2021 and 2020 (Reviewed, not Audited) (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. General Information

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

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

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

2. Approval of Financial Statements

The Consolidated Financial Statements have been approved by the Board of Directors on November 8, 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 "Group"):

b. IFRSs endorsed by the FSC and applicable from 2022 onward:

New/Amended/Revised Standards and Interpretations	Effective Date Announced by IASB
Annual improvement of IFRSs 2018-2020 Amendment to IFRS 3 “References to the Conceptual Framework” Amendments to IAS 16 Real estate, Plant, and Equipment - Proceeds before Intended Use Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a Contract"	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1. 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 2. The amendments are applicable to business combinations with acquisition dates in annual reporting periods beginning on or after January 1, 2022.
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Note 3. The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4. This amendment applies to contracts that have not fulfilled all obligations on January 1, 2022.

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

c. IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC:

Effective Date Announced New/Amended/Revised Standards and Interpretations by IASB (Note 1) Amendments to IFRS 10 and IAS 28 "Sale or Contribution of To be determined Assets between an Investor and its Associate or Joint Venture" IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1 "Classify Liabilities as Current or January 1, 2023 Non-current" Amendments to IAS 1 "Disclosure of Accounting Policies" January 1, 2023 (Note 2) Amendment to IAS 8 “Definition of Accounting Estimate” January 1, 2023 (Note 3) Amendments to IAS 12 "Deferred Tax Related to Assets and January 1, 2023 (Note 4) Liabilities Arising from a Single Transaction"

Note 1. Unless stated otherwise, the above New/Amended/Revised Standards and Interpretations are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2. This amendment prospectively applies to the annual reporting period beginning after January 1, 2023.
Note 3. This amendment applies to changes in accounting estimates and changes in accounting policies that occur during the annual reporting period beginning after January 1, 2023.
Note 4. Except for the recognition of deferred income tax on temporary differences between lease and decommissioning obligations on January 1, 2022, this amendment is applicable to transactions that occur after January 1, 2022.

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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.
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 Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

Refer to Note 14 and Tables 7 and 8 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

12 -

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 a 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 a 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.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of less than 3 months) Time deposits Repurchase agreements collateralized by bonds	September 30, 2021 $ 2,088 1,622,894 968,634 94,806 $ 2,688,422		December 31, 2020 $ 2,336 4,258,398 71,284 - $ 4,332,018	September 30, 2020	September 30, 2020
					$ 2,424 2,649,404 49,519 - $ 2,701,347

13 -

The ranges of annual interest rate of cash in the bank at the end of the reporting period were as follows:

	follows:
		September 30,	December 31,	September 30,
		2021	2020	2020
	Bank deposits	0.001%-3.000%	0.001%-3.220%	0.001%-3.500%
	Repurchase agreements collateralized
	by bonds	0.200%	-	-
7.	FINANCIAL INSTRUMENTS AT	FAIR VALUE THROUGH PROFIT		OR LOSS

8.	Financial assets at FVTPL-current Mandatorily classified as at FVTPL Non-derivative financial assets -Fund beneficiary certificate -Bonds Financial assets at FVTPL- non-current Mandatorily classified as at FVTPL Non-derivative financial assets -Listed shares -Unlisted shares FINANCIAL ASSETS AT FVTOCI Current Investments in equity instruments Non-current Investments in equity instruments Investments in equity instruments Current Listed shares Ordinary shares - Far Eastern International Bank Ordinary shares - Chunghwa Telecom Co., Ltd (Continued)	September 30, 2021 $ 934,956 28,407 $ 963,363 $ 4,099 6,483 $ 10,582 September 30, 2021 $ 304,515 $ 449,751 September 30, 2021 $ 15,090 5,370		December 31, 2020 $ 1,461,304 29,032 $ 1,490,336 $ 4,434 6,232 $ 10,666 December 31, 2020 $ 249,485 $ 267,178 December 31, 2020 $ 15,374 5,297	September 30, 2020
					$ 680,326 29,656 $ 709,982 $ - 6,239 $ 6,239 September 30, 2020
					$ 210,557 $ 205,078 September 30, 2020
					$ 14,135 5,200

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(Continued from the previous page)

September 30, 2021 December 31, 2020 September 30, 2020 Ordinary shares - Formosa Plastics Corp. $ 10,379 $ 8,815 $ 7,187 Ordinary shares - China Steel Corp. 29,158 19,881 16,427 Ordinary shares - Polytronics Technology Corp. 192,318 152,418 128,638 Ordinary shares - Taiwan Semiconductor Manufacturing Co., Ltd. 52,200 47,700 38,970 $ 304,515 $ 249,485 $ 210,557 Non-current Listed shares Ordinary shares - GeneFerm Biotechnology Co., Ltd. (GeneFerm) $ 71,539 $ 62,423 $ 44,297 Unlisted shares Ordinary shares - Dah Chung Bills Finance Corp. 17,181 14,918 14,471 Ordinary shares - InnoComm Mobile Technology Corp. 360,000 188,784 145,404 Ordinary shares - AsiaVest Liquidation Co. 1,031 1,053 906 $ 449,751 $ 267,178 $ 205,078 These investments by the Group are held for medium- to long-term strategic purposes and the Group expects to profit from long-term investments. Accordingly, the management elected to designate these investments in equity instruments as at fair value through other comprehensive income as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes. FINANCIAL ASSETS AT AMORTIZED COST September 30, 2021 December 31, 2020 September 30, 2020 Current Time deposits with original maturities of more than 3 months$ 2,532,113 $ 1,728,070 $ 2,428,864 Non-current Time deposits with original maturities of more than 3 months$ 601,202 $ - $ -	September 30, 2020	September 30, 2020
		$ 2,428,864 $ -

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

9. FINANCIAL ASSETS AT AMORTIZED COST

The ranges of interest rates for time deposits with original maturities of more than 3 months were 0.26%~4.13%, 0.35%~4.13%, and 0.25%~4.13% per annum as of September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

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10. NOTE RECEIVABLES, TRADE RECEIVABLES, AND OTHER RECEIVABLES

Notes receivable Operating Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Accrued income Receivables from payments on behalf of others Receivables from promotion subsidy Others	September 30, 2021 $ 43,236 $ 4,994,620 ( 25,613) $ 4,969,007 $ 25,981 201 9,975 233,625 $ 269,782		December 31, 2020 $ 3,154 $ 6,328,068 32,487) $ 6,295,581 $ 19,033 3,259 19,543 182,535 $ 224,370	September 30, 2020	September 30, 2020
	(	(		(	$ 15,566 $ 6,163,542 29,442) $ 6,134,100 $ 14,073 460 - 255,213 $ 269,746

The Group's credit period for commodity sales averages 30~90 days. To minimize credit risk, the management of the Group 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 Group 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 Group adopts the simplified approach of IFRS 9 to measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses (ECLs). The Group performs assessment using the three forward-looking factors, i.e., industrial index of the customer, GDP growth rate and unemployment rate, as the ECL rate.

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

The following table details the loss allowance of notes and trade receivables of the Group.

September 30, 2021

September 30, 2021
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
	(	0.01% $ 4,908,347 711) $ 4,907,636	(	0.98% $ 67,049 654) $ 66,395	(	14.88% $ 17,862 2,658) $ 15,204	(	39.76% $ 32,929 13,091) $ 19,838	(	72.83% $ 11,669 8,499) $ 3,170	(	$ 5,037,856 25,613) $ 5,012,243

(Continued)

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(Continued from the previous page)

December 31, 2020

Not Pass Due Less than 30 Days 31 to 90 Days 91 to 180 Days Over 180 Days Total ECL rate 0.01% 0.44% 2.97% 51.56% 96.04% Gross carrying amount $ 5,855,491 $ 353,466 $ 74,259 $ 40,270 $ 7,736 $ 6,331,222 Loss allowance (Lifetime ECL) ( 537) ( 1,549) ( 2,207) ( 20,764) ( 7,430) ( 32,487) Amortized cost $ 5,854,954 $ 351,917 $ 72,052 $ 19,506 $ 306 $ 6,298,735 September 30, 2020 Not Pass Due Less than 30 Days 31 to 90 Days 91 to 180 Days Over 180 Days Total ECL rate 0.03% 1.57% 4.46% 94.50% 53.26% Gross carrying amount $ 5,854,548 $ 213,723 $ 82,185 $ 13,144 $ 15,508 $ 6,179,108 Loss allowance (Lifetime ECL) ( 1,748) ( 3,345) ( 3,668) ( 12,421) ( 8,260) ( 29,442) Amortized cost $ 5,852,800 $ 210,378 $ 78,517 $ 723 $ 7,248 $ 6,149,666 The movements of the loss allowance of trade receivables were as follows: For the Nine Months Ended September 30, 2021 For the Nine Months Ended September 30, 2020 Balance as of January 1 $ 32,487 $ 20,933 Add: Impairment loss provided for the current period - 8,734 Less: Reversal impairment loss for the current period ( 2,934 ) - Less: Actual write-off for the current period ( 3,205 ) ( 195 ) Foreign exchange translation difference ( 735) ( 30) Balance as of September 30 $ 25,613 $ 29,442	31 to 90 Days	31 to 90 Days		91 to 180 Days	Over 180 Days	Over 180 Days		Total
	2.97% $ 74,259 ( 2,207) $ 72,052 31 to 90 Days		(	51.56% $ 40,270 20,764) $ 19,506 91 to 180 Days			(	$ 6,331,222 32,487) $ 6,298,735 Total
		$ 32,487 - ( 2,934 ) ( 3,205 ) ( 735) $ 25,613				$ 20,933 8,734 - ( 195 ) ( 30) $ 29,442

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	September 30, 2021 $ 4,550 4,800 4,800 4,800 4,800 5,000 28,750 ( 3,976) $ 24,774	December 31, 2020	December 31, 2020	September 30, 2020	September 30, 2020
	(	(	$ 4,200 4,700 4,800 4,800 4,800 8,600 31,900 4,952) $ 26,948	(	$ 4,200 4,550 4,800 4,800 4,800 9,800 32,950 5,295) $ 27,655

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

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12. INVENTORIES

INVENTORIES
Merchandise Finished goods Work in progress Raw materials Packing materials	September 30, 2021 $ 419,057 1,546,483 1,199,915 2,932,113 70,167 $ 6,167,735		December 31, 2020	September 30, 2020
			$ 640,373 1,977,416 350,629 2,092,141 64,089 $ 5,124,648		$ 692,893 1,272,451 589,335 2,181,017 56,644 $ 4,792,340

Cost of goods sold for the three and nine months ended September 30, 2021 and 2020 includes loss in inventory value (gain on recovery) of NT$(15,668) thousand, NT$7,739 thousand, NT$18,311 thousand, and NT$8,488 thousand, and inventory obsolescence loss of NT$3,984 thousand, NT$14,439 thousand, NT$23,174 thousand, and NT$32,236 thousand, respectively.

13. PREPAYMENTS

PREPAYMENTS
Prepayments for purchases Prepayments for rent Prepayments for insurance Excess business tax paid Prepayments for advertisements Others	September 30, 2021 $ 1,072,727 7,101 5,672 360,411 11,042 291,901 $ 1,748,854		December 31, 2020	September 30, 2020
			$ 1,025,145 5,274 980 212,798 19,490 315,602 $ 1,579,289		$ 743,522 8,770 5,877 277,710 13,391 237,027 $ 1,286,297

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14. SUBSIDIARIES

Subsidiaries included in consolidated financial statements.

Entities of the consolidated financial statements were as follows:

Investor Company	Name of Subsidiary Standard Dairy Products Taiwan Ltd. (Standard Dairy Products) (Note) Charng Hui Ltd.(Charng Hui) (Note) Domex Technology Corporation (Domex Technology) (Note) Standard Beverage Company Ltd. (Standard Beverage) (Note) Accession Ltd. Standard Investment (Cayman) Ltd. (Cayman Standard) Le Bonta Wellness International Corporation (Le Bonta Wellness) (Note) Standard Foods, LLC.(Note) Shanghai Standard Foods Co., Ltd. (Shanghai Standard) Shanghai Le Ben De Health Technology Co., Ltd. (Shanghai Le Ben De) (Note) Dermalab S.A. (Dermalab) (Note) Swissderma SL (Swissderma) (Note) Standard Corporation (Hong Kong) Ltd. (Hong Kong Standard) Standard Investment (China) Co., Ltd. (China Standard Investment) Shanghai Le Min Industrial Co., Ltd. (Shanghai Le Min) (Note) Shanghai Le Ho Industrial Co., Ltd. (Shanghai Le Ho) (Note) Standard Foods (China) Co., Ltd. (China Standard Foods) Shanghai Dermalab Corporation (Shanghai Dermalab) (Note) Le Bonta Wellness Co., Ltd. (Shanghai Le Bonta ) (Note) Standard Foods (Xiamen) Co., Ltd. (Xiamen Standard) (Note)	Main Business Manufacture and sale of dairy products and beverages Investing Manufacture and sale of computer peripherals and computer appliances Manufacture and sale of beverages Investing Investing Sale of health food Sale of health food Manufacture and sale of edible oils and nutritious foods Technical consultant on health technology, technical transfer and technical service Development and sale of cosmetics Sale of cosmetics Investing Investing and sale of edible oils and nutritious foods Management of properties Management of properties Manufacture and sale of edible oils and nutritious foods Sale of nutritional foods, cosmetics 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	Proportion of Ownership September 30, 2021 December 31, 2020 September 30, 2020 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 52.0% 52.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 99.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%	Proportion of Ownership September 30, 2021 December 31, 2020 September 30, 2020 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 52.0% 52.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 99.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%	Remark
			September 30, 2021 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%	December 31, 2020 100.0% 100.0% 52.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
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					- - - - - - Le Bonta Wellness was liquidated in August 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. - - - - - - - - -

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

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15. REAL ESTATE, PLANT, AND EQUIPMENT

Cost Balance as of January 1, 2020 Additions Disposals Reclassification Transferred to investment property Net foreign currency exchange differences Balance as of September 30, 2020 Accumulated depreciation and impairment Balance as of January 1, 2020 Disposals Depreciation expenses Transferred to investment property Net foreign currency exchange differences Balance as of September 30, 2020 Net amount as of September 30, 2020 Cost Balance as of January 1, 2021 Additions Disposals Reclassification From investment properties Net foreign currency exchange differences Balance as of September 30, 2021 Accumulated depreciation and impairment Balance as of January 1, 2021 Disposals Depreciation expenses Reclassification From investment properties Net foreign currency exchange differences Balance as of September 30, 2021 Net amount as of December 31, 2020 and January 1, 2021 Net amount as of September 30, 2021		FreeholdLand $ 702,405 - - 2,940 - - $ 705,345 $ - - - - - $ - $ 705,345 $ 705,345 - - 10,805 - - $ 716,150 $ - - - - - - $ - $ 705,345 $ 716,150	Buildings	Equipment $ 4,069,198 16,303 ( 92,133 ) 98,470 - ( 6,444) $ 4,085,394 $ 2,730,217 ( 87,434 ) 203,695 - ( 2,605) $ 2,843,873 $ 1,241,521 $ 4,168,193 4,240 ( 116,759 ) 123,349 - ( 20,006) $ 4,159,017 $ 2,914,753 ( 106,632 ) 201,437 ( 109 ) - ( 9,879) $ 2,999,570 $ 1,253,440 $ 1,159,447	Otherequipment $ 561,938 3,785 ( 26,783 ) 29,256 - ( 990) $ 567,206 $ 425,371 ( 25,204 ) 35,106 - ( 724) $ 434,549 $ 132,657 $ 574,828 1,015 ( 17,938 ) 31,687 - ( 4,552) $ 585,040 $ 440,921 ( 17,226 ) 32,228 109 - ( 3,184) $ 452,848 $ 133,907 $ 132,192	Property in Construction and Equipment to Be Tested	Total
			$ 4,078,150 322 ( 8,378 ) 28,248 ( 748,948 ) ( 16,636) $ 3,332,758 $ 1,269,679 ( 8,110 ) 131,925 ( 29,475 ) ( 2,288) $ 1,361,731 $ 1,971,027 $ 3,392,715 - ( 4,386 ) 44,004 36,012 ( 31,267) $ 3,437,078 $ 1,410,765 ( 4,362 ) 120,205 - 17,526 ( 9,046) $ 1,535,088 $ 1,981,950 $ 1,901,990			$ 138,888 191,825 ( 10,916 ) ( 158,914 ) - ( 413) $ 160,470 $ - - - - - $ - $ 160,470 $ 127,003 252,139 ( 5,979 ) ( 209,845 ) - ( 266) $ 163,052 $ - - - - - - $ - $ 127,003 $ 163,052	$ 9,550,579 212,235 ( 138,210 ) - ( 748,948 ) ( 24,483) $ 8,851,173 $ 4,425,267 ( 120,748 ) 370,726 ( 29,475 ) ( 5,617) $ 4,640,153 $ 4,211,020 $ 8,968,084 257,394 ( 145,062 ) - 36,012 ( 56,091) $ 9,060,337 $ 4,766,439 ( 128,220 ) 353,870 - 17,526 ( 22,109) $ 4,987,506 $ 4,201,645 $ 4,072,831

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

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 Note 33.

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16. LEASE ARRANGEMENTS

a. Right-of-use assets

September 30, 2021 December 31, 2020 September 30, 2020 Carrying amounts of right-of-use assets Land $ 384,269 $ 399,166 $ 393,750 Buildings 302,548 218,696 235,399 Office equipment 372 444 338 Transportation equipment 4,973 8,134 8,113 $ 692,162 $ 626,440 $ 637,600 For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2020 For the Nine Months Ended September 30, 2021 For the Nine Months Ended September 30, 2020 Additions to right-of-use assets$ 138,606 $ 2,440 $ 171,690 $ 11,789 Depreciation expenses for right-of-use assets Land $ 3,082 $ 3,069 $ 9,304 $ 9,200 Buildings 20,525 18,259 57,299 56,591 Office equipment 24 17 72 52 Transportation equipment 766 861 2,389 2,462 $ 24,397 $ 22,206 $ 69,064 $ 68,305	September 30, 2021 December 31, 2020 September 30, 2020 Carrying amounts of right-of-use assets Land $ 384,269 $ 399,166 $ 393,750 Buildings 302,548 218,696 235,399 Office equipment 372 444 338 Transportation equipment 4,973 8,134 8,113 $ 692,162 $ 626,440 $ 637,600 For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2020 For the Nine Months Ended September 30, 2021 For the Nine Months Ended September 30, 2020 Additions to right-of-use assets$ 138,606 $ 2,440 $ 171,690 $ 11,789 Depreciation expenses for right-of-use assets Land $ 3,082 $ 3,069 $ 9,304 $ 9,200 Buildings 20,525 18,259 57,299 56,591 Office equipment 24 17 72 52 Transportation equipment 766 861 2,389 2,462 $ 24,397 $ 22,206 $ 69,064 $ 68,305	December 31, 2020	September 30, 2020	September 30, 2020
			$ 393,750 235,399 338 8,113 $ 637,600 For the Nine Months Ended September 30, 2020 $ 11,789 $ 9,200 56,591 52 2,462 $ 68,305

$ 138,606 $ 3,082 20,525 24 766 $ 24,397	$ 2,440 $ 3,069 18,259 17 861 $ 22,206	$ 171,690 $ 9,304 57,299 72 2,389 $ 69,064		$ 11,789 $ 9,200 56,591 52 2,462 $ 68,305

b. Lease liabilities

Lease liabilities
Carrying amounts of lease liabilities Current Non-current	September 30, 2021			December 31, 2020	September 30, 2020
		$ 102,779 $ 253,125		$ 77,782 $ 200,191		$ 80,170 $ 210,817

Range of discount rate for lease liabilities was as follows:

Land Buildings Office equipment Transportation equipment	September 30, 2021	December 31, 2020	September 30, 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 Group leases land, buildings, and transportation equipment for the use of plants, offices and business cars with lease terms of 1 to 50 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor's consent.

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d. Other lease information

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

out in Note 11.
Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020 $ 68,244 $ 860 $ 57 ($ 144,080)
		$ 21,504 $ 658 $ 19		$ 25,993 $ 322 $ 19	(	$ 74,834 $ 2,020 $ 58 $ 149,418)		$ 68,244 $ 860 $ 57 $ 144,080)

The Group leases certain office equipment, production assets, and sale premises that qualify as short-term leases. The Group 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

INVESTMENT PROPERTY
Cost Balance as of January 1, 2020 From property, plant and equipment Net foreign currency exchange differences Balance as of September 30, 2020 Accumulated depreciation and impairment Balance as of January 1, 2020 Depreciation expenses From property, plant and equipment Net foreign currency exchange differences Balance as of September 30, 2020 Net amount as of September 30, 2020		Completed Investment Properties $ 241,711 748,948 1,173 $ 991,832 $ 124,434 4,503 29,475 357) $ 158,055 $ 833,777		Right-of-use assets $ 5,548 - 31) $ 5,517 $ 333 324 - 1) $ 656 $ 4,861		Total
	(		( (		(	$ 247,259 748,948 1,142 $ 997,349 $ 124,767 4,827 29,475 358) $ 158,711 $ 838,638

(Continued)

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(Continued from the previous page)

(Continued from the previous page)
Cost Balance as of January 1, 2021 Transferred to property, plant and equipment Net foreign currency exchange differences Balance as of September 30, 2021 Accumulated depreciation and impairment Balance as of January 1, 2021 Depreciation expenses Transferred to property, plant and equipment Net foreign currency exchange differences Balance as of September 30, 2021 Net amount as of December 31, 2020 and January 1, 2021 Net amount as of September 30, 2021	Completed Investment Properties $ 1,009,740 ( 36,012 ) ( 13,769) $ 959,959 $ 169,797 27,851 ( 17,526 ) ( 2,190) $ 177,932 $ 839,943 $ 782,027		Right-of-use assets $ 5,635 - 90) $ 5,545 $ 781 329 - 15) $ 1,095 $ 4,854 $ 4,450	Total
		( (		$ 1,015,375 ( 36,012 ) ( 13,859) $ 965,504 $ 170,578 28,180 ( 17,526 ) ( 2,205) $ 179,027 $ 844,797 $ 786,477

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

the following 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 Group’s investment properties are located in Suzhou City, Jiangsu Province, China. Due to the land is included in the industrial districts, the market for comparable properties is inactive and alternative reliable measurements of fair value are not available. Therefore, the fair value is not reliably measurable.

Except the abovementioned, the fair values of the investment properties were $1,102,261 thousand, $1,146,959 thousand, and $1,125,601 thousand as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. In the absence of hiring an independent appraiser, the management of the Group determined the fair value with reference to market transaction prices of similar properties.

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

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18. INTANGIBLE ASSETS

INTANGIBLE ASSETS
Cost Balance as of January 1, 2020 Additions Disposals Net foreign currency exchange differences Balance as of September 30, 2020 Accumulated amortization and impairment Balance as of January 1, 2020 Disposals Amortization expenses Net foreign currency exchange differences Balance as of September 30, 2020 Net amount as of September 30, 2020 Cost Balance as of January 1, 2021 Additions Disposals Net foreign currency exchange differences Balance as of September 30, 2021 Accumulated amortization and impairment Balance as of January 1, 2021 Disposals Amortization expenses Net foreign currency exchange differences Balance as of September 30, 2021 Net amount as of December 31, 2020 and January 1, 2021 Net amount as of September 30, 2021	Trademark $ 227,260 31,240 - 440 $ 258,940 $ 163,442 - 3,809 ( 1,093) $ 166,158 $ 92,782 $ 261,737 59 ( 185 ) ( 6,267) $ 255,344 $ 170,665 ( 185 ) 3,823 207 $ 174,510 $ 91,072 $ 80,834	Computer software $ 239,713 9,996 ( 28,294 ) ( 218) $ 221,197 $ 236,262 ( 28,294 ) 1,906 ( 217) $ 209,657 $ 11,540 $ 225,239 10,898 - ( 13) $ 236,124 $ 210,920 - 7,084 ( 11) $ 217,993 $ 14,319 $ 18,131	Total
			$ 466,973 41,236 ( 28,294 ) 222 $ 480,137 $ 399,704 ( 28,294 ) 5,715 ( 1,310) $ 375,815 $ 104,322 $ 486,976 10,957 ( 185 ) ( 6,280) $ 491,468 $ 381,585 ( 185 ) 10,907 196 $ 392,503 $ 105,391 $ 98,965

For the nine months ended September 30, 2021 and 2020, there were no signs of impairment, so the Group did not conduct any impairment assessment.

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

Trademark Computer software

10-20 years 2-3 years

24 -

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 Others	September 30, 2021			December 31, 2020	September 30, 2020
		$ 4,016 26,666 895 41,890 390 $ 73,857 $ 21,117 72,435 106,611 $ 200,163		$ 4,016 24,291 10,094 25,320 123 $ 63,844 $ 24,737 56,259 115,467 $ 196,463		$ 4,013 12,745 1,739 38,228 488 $ 57,213 $ 15,441 56,000 116,689 $ 188,130

20. BORROWINGS

a. Short-term borrowings

Secured borrowings(Note 33) Bank loans Unsecured borrowings Bank loans Other loans	September 30, 2021	September 30, 2021		December 31, 2020	September 30, 2020	September 30, 2020
		$ 200,000 1,744,668 14,908 $ 1,959,576		$ 180,000 1,650,614 16,153 $ 1,846,767		$ 180,000 1,081,324 15,793 $ 1,277,117

The annual interest rates of the aforementioned short-term borrowings or financing are 0.95%~3.00%, 0.95%~3.20%, and 0.95%~3.20% on September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

b. Short-term bills payable

Short-term bills payable
Commercial paper payable Less: Discount on short-term bills payable	September 30, 2021			December 31, 2020	September 30, 2020
	(	$ 250,000 118) $ 249,882	(	$ 130,000 131) $ 129,869	(	$ 150,000 168) $ 149,832

The annual interest rates payable to commercial promissory notes as of September 30, 2021, December 31, 2020, and September 30, 2020 are 1.19%~1.34%, 1.19%~1.29%, and 1.19%~1.29%, respectively.

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21. NOTES PAYABLE AND TRADE PAYABLES

Notes payable Operating Non-operating Trade payables Operating		September 30, 2021		December 31, 2020	September 30, 2020	September 30, 2020
		$ 662,664 - $ 662,664 $ 1,806,427		$ 90,288 45 $ 90,333 $ 2,107,188		$ 371,043 - $ 371,043 $ 1,973,379

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 Payable for salaries or bonuses Payable for compensation of employees Payable for remuneration to directors Payable for commission and rebates Payable for advertisement 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		September 30, 2021	December 31, 2020		September 30, 2020
		$ 373,704 31,950 13,530 1,175,884 141,391 21,723 78,066 68,359 1,212,351 $ 3,116,958 $ 3,092 84,536 29,125 $ 116,753 $ 23,852 120 $ 23,972		$ 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		$ 290,913 28,381 18,529 992,184 135,207 24,201 91,782 94,495 1,219,175 $ 2,894,867 $ 1,058 75,171 24,283 $ 100,512 $ 21,774 2,422 $ 24,196

The Group 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 (recorded as other current liabilities) and related pending returns. Product rights (recorded as other current assets).

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23. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Group’s defined benefit retirement plans for the three and nine months ended September 30, 2021 and 2020 were $7,777 thousand, $2,899 thousand, $19,723 thousand, and $8,638 thousand by the actuarially determined pension cost discount rate as of December 31, 2020 and 2019, respectively.

24. EQUITY

a. Share capital
1) Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		September 30, 2021	December 31, 2020 920,000 $ 9,200,000 915,089 $ 9,150,897	September 30, 2020	September 30, 2020
		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 September 30, 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

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)		September 30, 2021	December 31, 2020 $ 1 126,925 466 $ 127,392	September 30, 2020	September 30, 2020
		$ 1 143,599 466 $ 144,066			$ 1 126,925 466 $ 127,392

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1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and to once a year).
2) Such capital surplus arises from the effect of changes in ownership interests in subsidiaries that result from equity transactions other than actual disposals or acquisitions, or from changes in capital surplus of subsidiaries accounted for using the equity method.
c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Articles of Incorporation, where the Company made any profits in a fiscal year, the profits shall be appropriated, less any paying taxes and deficit, 10% thereof as legal reserve, special reserve provided or reversed in accordance with the regulations, and 30% to 100% of the sum of the remainder and prior years' unappropriated earnings as dividends. The Company's Articles of Incorporation also prescribe that 30% to 100% of dividends shall be paid in cash; however, if the Company has major investment plans for which external funds are not available, the percentage may be lowered to 5% to 20%. The distribution plan shall be proposed by the Company's board of directors and resolved in the shareholders' meeting for distribution of dividends and bonus to shareholders. For the policies on distribution of the compensation of employees and remuneration of directors in the Articles of Incorporation, please refer to Note 26(i) "employees' compensation and remuneration of directors."

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 July 22, 2021 and June 16, 2020 as follows:

2020 as follows:
	2020	2019
Legal reserve	$ 319,167	$ 341,610
Special reserve	$ -	$ 246,549
Cash dividends	$ 2,287,724	$ 2,424,987
Cash dividends per share (NT$)	$ 2.5	$ 2.65
Special reserve
	For the Nine	For the Nine
	Months Ended	Months Ended
	September 30, 2021	September 30, 2020
Balance as of January 1	$ 577,494	$ 330,945
Appropriation of special reserve
Appropriation for deductions in other equity
items	-	246,549
Balance as of September 30	$ 577,494	$ 577,494

d. Special reserve

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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 as of January 1 Recognized for the year Exchange differences on translating the financial statements of foreign operations Other comprehensive income for the period Balance as of September 30	For the Nine Months Ended September 30, 2021 ( $ 572,206 ) ( 130,872) ( 130,872) ($ 703,078)	For the Nine Months Ended September 30, 2020
		( $ 693,038 ) ( 35,211) ( 35,211) ($ 728,249)

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

Balance as of January 1 Recognized for the year Unrealized gain (loss) Equity instruments Other comprehensive income for the period Balance as of September 30	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
		$ 216,714 155,458 155,458 $ 372,172		$ 115,544 21,012 21,012 $ 136,556

f. Non-controlling Interests

Balance as of January 1 Net profit for the period Other comprehensive income for the period Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) on financial assets at FVTOCI Cash dividends distributed by subsidiaries to non-controlling interests Balance as of September 30	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020
	$ 331,139 31,780 ( 797 ) 82,167 ( 33,504) $ 410,785	$ 272,564 24,931 ( 244 ) 18,227 ( 23,932) $ 291,546

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g. Treasury shares

Treasury shares
Purpose of Buy-back Number of shares as of January 1 and September 30, 2020 Number of shares as of January 1 and September 30, 2021	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	Market Price	Market Price
September 30, 2021 Charng Hui December 31, 2020 Charng Hui September 30, 2020 Charng Hui	6,669 6,669 6,669		$ 21,182 $ 21,182 $ 21,182		$ 344,145 $ 408,839 $ 405,504

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.

25. REVENUE

REVENUE
Revenue from contracts with customers Sale of goods a. Contract balances Notes receivable (Note 10) Trade receivables (Note 10) Trade receivables from related parties (Note 10) Contract liabilities - current Sale of goods	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021 $ 24,345,093 September 30, 2020 $ 15,566 $ 6,134,100 $ 9,088 $ 245,792	For the Nine Months Ended September 30, 2020
		$ 8,668,586 September 30, 2021		$ 9,600,461 December 31, 2020			$ 24,224,530 January 1, 2020
		$ 43,236 $ 4,969,007 $ 7,654 $ 216,935		$ 3,154 $ 6,295,581 $ 9,011 $ 748,044			$ 2,977 $ 6,439,550 $ - $ 326,644

a. Contract balances

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b. Disaggregation of revenue

For the Nine Months Ended September 30, 2021

Types of goods or services Sale of goods		Reportable Segments	Reportable Segments	Reportable Segments	Reportable Segments			Total
		Nutritious Foods $ 8,382,154		Cooking products Food $ 12,117,002		Others
						$ 3,845,937		$ 24,345,093

For the Nine Months Ended September 30, 2020

Types of goods or services Sale of goods		Reportable Segments	Reportable Segments	Reportable Segments	Reportable Segments			Total
		Nutritious Foods		Cooking products Food		Others
		$ 8,914,489		$ 12,877,198		$ 2,432,843		$ 24,224,530

26. NET PROFIT

Components of net profit includes:

a. Interest income

Interest income Bank deposits Financial assets at amortized cost Repurchase agreements collateralized by bonds Others Other income Operating lease rental income Investment properties (Note 17) Others Dividend income Investments in equity instruments at FVTOCI		For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020
		$ 6,997 14,862 - 288 $ 22,147 For the Three Months Ended September 30, 2021		$ 6,609 17,393 36 328 $ 24,366 For the Three Months Ended September 30, 2020		$ 43,211 39,691 30 904 $ 83,836 For the Nine Months Ended September 30, 2021		$ 43,210 46,581 507 1,014 $ 91,312 For the Nine Months Ended September 30, 2020
		$ 6,309 284 6,593 15,957 $ 22,550		$ 7,137 397 7,534 1,880 $ 9,414		$ 22,996 919 23,915 23,812 $ 47,727		$ 21,139 932 22,071 9,584 $ 31,655

b. Other income

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c. Other gains and losses

	For the Three Months Ended September 30, 2021 $ 40,498 ) 1,792 ) 4,978 ) 7,706 8,896 $ 30,666) For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020 $ 345 5,910 3,328 ) 15,561 22,523 $ 41,011 For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021 ( $ 34,333 ) ( 20,938 ) ( 8,670 ) 18,657 18,991 ($ 26,293) For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021 ( $ 34,333 ) ( 20,938 ) ( 8,670 ) 18,657 18,991 ($ 26,293) For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
( ( ( (		(		( ( ( (		( (	$ 1,412 1,828 ) 2,744 ) 57,987 20,629 $ 75,456 For the Nine Months Ended September 30, 2020
			$ 6,499 394 2,319 12 $ 9,224 For the Three Months Ended September 30, 2020		$ 30,636 866 6,314 486 $ 38,302 For the Nine Months Ended September 30, 2021		$ 32,351 751 7,402 37 $ 40,541 For the Nine Months Ended September 30, 2020
			$ 630 $ 7,739 For the Three Months Ended September 30, 2020	(	$ 2,934) $ 18,311 For the Nine Months Ended September 30, 2021		$ 8,734 $ 8,488 For the Nine Months Ended September 30, 2020
	$ 100,038 41,094 9,237 $ 150,369 $ 5,798 12,838 $ 18,636		$ 99,069 46,416 3,540 $ 149,025 $ 4,642 13,099 $ 17,741		$ 301,717 121,217 28,180 $ 451,114 $ 18,349 39,039 $ 57,388		$	297,774 141,257 4,827 443,858 14,374 31,393 45,767
							$
							$
							$

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g. Direct operating expenses of investment properties

For the Three Months Ended September 30, 2021 Direct operating expenses of investment properties Direct operating expenses of investment properties that generated rental income $ 460 Direct operating expenses of investment properties that did not generated rental income 150 $ 610 Employee benefit expenses For the Three Months Ended September 30, 2021 Post-employment benefits Defined contribution plans $ 41,108 Defined benefit plans (Note 23) 7,777 48,885 Other employee benefits 643,816 Total employee benefit expenses $ 692,701 An analysis of employee benefit expenses by function Operating costs $ 241,781 Operating expenses 450,920 $ 692,701		For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
				$ 177 141 $ 318 For the Three Months Ended September 30, 2020		$ 1,310 446 $ 1,756 For the Nine Months Ended September 30, 2021	$ 528 427 $ 955 For the Nine Months Ended September 30, 2020
		$ 41,108 7,777 48,885 643,816 $ 692,701 $ 241,781 450,920 $ 692,701		$ 11,240 2,899 14,139 732,714 $ 746,853 $ 237,213 509,640 $ 746,853		$ 116,365 19,723 136,088 1,966,180 $ 2,102,268 $ 712,251 1,390,017 $ 2,102,268		$ 44,720 8,638 53,358 1,973,518 $ 2,026,876 $ 672,111 1,354,765 $ 2,026,876

h. Employee benefit expenses

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 and nine months ended September 30, 2021 and 2020 are as follows:

Accrual rate

Compensation of employees Remuneration of directors	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020 0.90% 0.59%
	1.25% 0.55%

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Amount

Amount
Compensation of employees Remuneration of directors		For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020
		$ 9,581 $ 4,215		$ 10,562 $ 6,836		$ 30,750 $ 13,530		$ 28,381 $ 18,529

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 September 30, 2021		For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
	( (	$ 16,000 17,792) $ 1,792)	(	$ 33,440 27,530) $ 5,910	( (	$ 65,095 86,033) $ 20,938)	( (	$ 78,426 80,254) $ 1,828)

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27. INCOME TAX

a. Income tax recognized in profit or loss Major components of income tax expense are as follows:

For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2020 Current tax In respect of the current year $ 170,167 $ 260,862 Additional tax on undistributed earnings 29,239 - Adjustments from previous years 210 5,089 199,616 265,951 Deferred tax In respect of the current year 3,736 84,776 Income tax expenses recognized in profit or loss $ 203,352 $ 350,727 Income tax recognized in other comprehensive income For the Three Months Ended September 30, 2021 For the Three Months Ended September 30, 2020 Deferred tax Recognized for the year - Exchange differences of foreign operations ( $ 8,304 ) $ 36,497 - Unrealized gain (loss) on financial assets at FVTOCI 1 ( 6) Income tax recognized in other comprehensive income ($ 8,303) $ 36,491		For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
					( (	$ 551,193 29,359 39,675) 540,877 25,275) $ 515,602 For the Nine Months Ended September 30, 2021	$ 738,846 18,783 ( 6,455) 751,174 81,638 $ 832,812 For the Nine Months Ended September 30, 2020
	( (	$ 8,304 ) 1 $ 8,303)	(	$ 36,497 6) $ 36,491	( (	$ 32,718 ) - $ 32,718)	( ( (	$ 8,802 ) 3) $ 8,805)

b. Income tax recognized in other comprehensive income

c. Income tax assessments

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

The income tax returns of Standard Dairy Products, Charng Hui, Standard Beverage, and Domex Technology for the year ended December 31, 2019 had been assessed by the tax authorities.

The income tax returns of Le Bonta Wellness International for the year ended December 31, 2020 had been assessed by the tax authorities.

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28. EARNINGS PER SHARE EARNINGS PER SHARE

Basic earnings per share Diluted earnings per share		For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
		$ 0.65 $ 0.65		$ 1.05 $ 1.05		$ 2.17 $ 2.17		$ 2.79 $ 2.79

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

Earnings 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 September 30, 2021		For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
		$ 590,619 For the Three Months Ended September 30, 2021		$ 951,165 For the Three Months Ended September 30, 2020
		908,420 626 909,046		908,420 488 908,908		908,420 889 909,309		908,420 781 909,201

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.

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29. INFORMATION ON CASH FLOWS

Changes in liabilities arising from financing activities:

For the Nine Months Ended September 30, 2021

Short-term borrowings Short-term bills payable Lease liabilities Guarantee deposits Other non-current liabilities	January 1, 2021	January 1, 2021		Cash Flows		Non-cash flow	Non-cash flow	Non-cash flow	September 30, 2021	September 30, 2021
						Addition of lease/ lease modification	Adjustment of changes in exchange rates
		$ 1,846,767 129,869 277,973 19,990 130 $ 2,274,729	(	$ 137,250 120,013 66,192 ) 4,165 - $ 195,236		$ - - 167,575 - - $ 167,575	( ( ( ( (	$ 24,441 ) - 23,452 ) 303 ) 10) $ 48,206)		$ 1,959,576 249,882 355,904 23,852 120 $ 2,589,334

For the Nine Months Ended September 30, 2020

Short-term borrowings Short-term bills payable Long-term borrowings Lease liabilities Guarantee deposits Other non-current liabilities	January 1, 2020	January 1, 2020		Cash Flows		Non-cash flow	Non-cash flow	Non-cash flow	September 30, 2020	September 30, 2020
						Addition of lease/ lease modification	Adjustment of changes in exchange rates
		$ 1,382,955 99,968 6,000 347,615 20,044 2,934 $ 1,859,516	( ( ( ( (	$ 99,136 ) 49,864 6,000 ) 67,517 ) 1,812 566) $ 121,543)		$ - - - 11,789 - - $ 11,789	( ( (	$ 6,702 ) - - 900 82 ) 54 $ 5,830)		$ 1,277,117 149,832 - 290,987 21,774 2,422 $ 1,742,132

30. CAPITAL RISK MANAGEMENT

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

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31. FINANCIAL INSTRUMENTS

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

1) Fair value hierarchy

September 30, 2021

Level 1	Level 2	Level 3	Total
$ 4,099 - 934,956 - $ 939,055 $ 376,054 - $ 376,054 Level 1	$ - - - 28,407 $ 28,407 $ - - $ - Level 2	$ - 6,483 - - $ 6,483 $ - 378,212 $ 378,212 Level 3	$ 4,099 6,483 934,956 28,407 $ 973,945 $ 376,054 378,212 $ 754,266 Total
$ 4,434 - 1,461,304 - $ 1,465,738 $ 311,908 - $ 311,908 Level 1	$ - - - 29,032 $ 29,032 $ - - $ - Level 2	$ - 6,232 - - $ 6,232 $ - 204,755 $ 204,755 Level 3	$ 4,434 6,232 1,461,304 29,032 $ 1,501,002 $ 311,908 204,755 $ 516,663 Total
$ - 680,326 - $ 680,326 $ 254,854 - $ 254,854	$ - - 29,656 $ 29,656 $ - - $ -	$ 6,239 - - $ 6,239 $ - 160,781 $ 160,781	$ 6,239 680,326 29,656 $ 716,221 $ 254,854 160,781 $ 415,635

For the nine months ended September 30, 2021 and 2020, there was no transfer between Level 1 and Level 2 fair value measurement.

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

For the Nine Months Ended September 30, 2021

Financial assets	Financial assets at FVTPL	Financial assets at FVTPL	Financial assets at FVTOCI	Financial assets at FVTOCI		Total
		Equity instruments		Equity instruments
			(	$ 204,755 - 173,474 17) $ 378,212 $ -	(	$ 210,987 251 173,474 17) $ 384,695 $ 251

Financial assets	Financial assets at FVTPL	Financial assets at FVTPL	Financial assets at FVTOCI	Financial assets at FVTOCI		Total
		Equity instruments		Equity instruments
Balance as of 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 as of September 30 Recognized in other gains and losses - unrealized	( (	$ 7,575 1,336 ) - - $ 6,239 $ 1,055)	(	$ 124,055 - 36,732 6) $ 160,781 $ -	( ( (	$ 131,630 1,336 ) 36,732 6) $ 167,020 $ 1,055)

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

Financial Instrument Valuation Technique and Inputs Debt securities 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.

39 -

b. Categories of financial instruments

Financial assets Financial assets at FVTPL Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Investments in equity instruments Financial liabilities Financial liabilities at amortized cost (Note 2)	September 30, 2021	December 31, 2020	September 30, 2020
	$ 973,945 11,187,867 754,266 4,784,462	$ 1,501,002 12,652,479 516,663 4,304,650	$ 716,221 11,618,724 415,635 3,901,485

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

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

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

40 -

Sensitivity analysis

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

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

RMB Impact	RMB Impact	USD Impact	USD Impact
For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020
For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020
		$ 630(iv)	( $ 354)(iv)
For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020
$ 810(v)	$ 1,099(v)

i. This was mainly derived from the outstanding RMB-denominated bank deposits which were not hedged at the end of the reporting period.
ii. This was mainly derived from the outstanding USD-denominated bank deposits, receivables and payables which were not hedged at the end of the reporting period.
iii. This was mainly derived from the outstanding EUR-denominated bank deposits and payables which were not hedged at the end of the reporting period.
iv. This was mainly derived from the outstanding AUD-denominated bank deposits and receivables which were not hedged at the end of the reporting period.
v. This was mainly derived from the outstanding CHF-denominated bank deposits which were not hedged at the end of the reporting period.
41 -

b) Interest rate risk

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

The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting periods were as follows.

Fair value interest rate risk - Financial assets - Financial liabilities Cash flow interest rate risk - Financial assets - Financial liabilities	September 30, 2021	December 31, 2020	September 30, 2020
	$ 3,245,645 2,372,984 979,900 192,378	$ 1,136,118 2,147,609 694,200 107,000	$ 1,866,051 1,621,936 644,000 96,000

Sensitivity analysis

The sensitivity analyses below were determined based on the Group's exposure to interest rate risk for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared by assuming that 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 Group’s pre-tax profit for the nine months period ended September 30, 2021 and 2020 would increase (decrease) by NT$5,906 thousand and NT$4,110 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 Group was exposed to equity price risk due to its investments in listed equity securities and mutual funds. The Group has appointed designated personnel to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

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

42 -

For the nine months ended September 30, 2021, if prices rise/fall by 1%, the pre-tax income would increase/decrease by NT$9,739 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 nine months ended September 30, 2021 would increase/decrease by NT$7,543 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income.

If equity prices had been 1% higher/lower, pre-tax profit for the nine months period ended September 30, 2020 would have increased/decreased by $7,162 thousand, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the nine months ended September 30, 2020 would have increased/decreased by $4,156 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Group. As of the end of the reporting period, the Group's maximum exposure to credit risk (the maximum irrevocable amount exposed at risk), which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation (without considering collaterals or other credit enhancement tools) was the carrying amount of financial assets recognized in the consolidated balance sheets.

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

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2021, December 31, 2020, and September 30, 2020, the Group has available bank loan facilities in the amounts of NT$5,488,814 thousand, NT$5,296,868 thousand, and NT$4,187,810 thousand, respectively.

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

The following table details the Group's remaining contractual maturity for its 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 Group may be required to pay. The table included both interest and principal cash flows. As a result, bank loans of the Group that are repayable on demand are included in the earliest period presented regardless of the probability of the banks exercising their right immediately. The maturity analysis for other non-derivative financial liabilities is prepared based on the agreed repayment dates.

43 -

September 30, 2021

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
		$ 831,711 7,712 40,013 1,254,278 72,312 $ 2,206,026		$ 1,665,436 17,675 8,000 201,241 144,623 $ 2,036,975		$ 52,760 83,940 144,407 264,510 - $ 545,617		$ 23,852 263,370 - 300,601 - $ 587,823

December 31, 2020

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities Contract liabilities September 30, 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	1-3 Months	3 Months to 1 Year	3 Months to 1 Year		1-5 Years
	$ 741,613 23,864 - 721,695 249,348 $ 1,736,520 On Demand or Less than 1 Month			$ 1,498,132 12,939 33,911 961,677 498,696 $ 3,005,355 1-3 Months	$ 66,711 47,976 73,126 193,263 - $ 381,076 3 Months to 1 Year			$ 19,990 212,012 - - - $ 232,002 1-5 Years
		$ 790,516 5,751 - 739,295 81,931 $ 1,617,493		$ 1,588,981 16,646 51,515 580,443 163,861 $ 2,401,446		$ 72,454 65,253 44,511 15,793 - $ 198,011		$ 21,774 224,028 - - - $ 245,802

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 Group and other related parties are disclosed below.

44 -

a. Related parties and relationships

Name of Related Party Relationship with the Group The Company is one of the directors

GeneFerm Biotechnology Co., Ltd. (GeneFerm)

b. Sales

Sales
Related Party Category	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020
The Company is one of the directors		$ 9,472		$ 8,656		$ 20,528		$ 15,238

Sales from related parties were conducted on normal commercial terms.

c. Purchases

Purchases
Related Party Category	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2021		For the Nine Months Ended September 30, 2020
The Company is one of the directors		$ 16,594		$ 11,854		$ 52,980		$ 46,796

Purchases from related parties were conducted on normal commercial terms.

d. Receivables from related parties

Receivables from related parties
Financial Statement Account	Name of Related Party	September 30, 2021		December 31, 2020		September 30, 2020
Trade receivables from related parties	GeneFerm		$ 7,654		$ 9,011		$ 9,088

The outstanding receivables from related parties were unsecured. No loss allowances were set aside for receivables from related parties for the nine months ended September 30, 2021 and 2020.

e. Payables to related parties

Payables to related parties
Financial Statement Account	Name of Related Party	September 30, 2021		December 31, 2020		September 30, 2020
Trade payables to related parties	GeneFerm		$ 10,966		$ 20,526		$ 11,452

The outstanding payables to related parties were unsecured.

f. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30, 2021	For the Three Months Ended September 30, 2021	For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2021	For the Nine Months Ended September 30, 2020	For the Nine Months Ended September 30, 2020
		$ 5,721 61 $ 5,782		$ 9,442 70 $ 9,512		$ 23,345 181 $ 23,526		$ 32,845 256 $ 33,101

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

45 -

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) Property, plant and equipment - net Investment properties - net	September 30, 2021	September 30, 2021	December 31, 2020	December 31, 2020	September 30, 2020	September 30, 2020
		$ 4,016 106,886 35,552 $ 146,454		$ 4,016 121,362 55,122 $ 180,500		$ 4,013 125,494 55,569 $ 185,076

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

Except for those disclosed in other notes, significant commitments and contingencies of the Group on September 30, 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$1,263 thousand.
c. Unrecognized commitments for acquisition of property, plant and equipment of approximately $298,901 thousand.
d. Unrecognized commitments for acquiring colostrum from dairymen were approximately 18,581 tons.

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 Group. 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:

46 -

September 30, 2021

Financial assets	Foreign Currencies $ 5,717 1,346 963 222,632 1,047 600 306 9,741 1,104 Foreign Currencies $ 12,230 2,785 206,642 1,576 1,450 754 2,294 1,086 Foreign Currencies	Carrying Amount	Carrying Amount
		$ 159,205 37,588 31,137 958,432 21,010 17,889 9,109 $ 1,234,370 $ 271,301 35,669 $ 306,970 Carrying Amount
Monetary items USD USD EUR RMB AUD CHF CHF Financial liabilities
Monetary items USD EUR December 31, 2020 Financial assets
		$ 348,298 79,539 904,473 34,585 46,842 24,355 $ 1,438,092 $ 65,335 35,089 $ 100,424 Carrying Amount
Monetary items USD USD RMB AUD CHF CHF Financial liabilities
Monetary items USD CHF September 30, 2020 Financial assets Monetary items USD USD EUR RMB CHF CHF Financial liabilities Monetary items USD AUD CHF
	$ 13,564 2,669 252 202,131 1,450 780 1,921 570 1,070		$ 394,722 77,583 8,602 862,897 45,798 24,623 $ 1,414,225 $ 55,900 11,805 33,793 $ 101,498

47 -

The Group is mainly exposed to RMB and USD. The following information was aggregated by the foreign functional currencies of the group entities, and the exchange rates between respective functional currencies and the presentation currency were disclosed. The significant realized and unrealized foreign exchange gains (losses) were as follows:

Functional Currencies	For the Three Months Ended September 30, 2021 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 1,679 ) 4.31 (RMB:NTD) ( 114 ) 30.34 (CHF:NTD) 1 ($ 1,792) For the Nine Months Ended September 30, 2021	For the Three Months Ended September 30, 2021 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 1,679 ) 4.31 (RMB:NTD) ( 114 ) 30.34 (CHF:NTD) 1 ($ 1,792) For the Nine Months Ended September 30, 2021	For the Three Months Ended September 30, 2021 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) ( $ 1,679 ) 4.31 (RMB:NTD) ( 114 ) 30.34 (CHF:NTD) 1 ($ 1,792) For the Nine Months Ended September 30, 2021	For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020	For the Three Months Ended September 30, 2020
	Exchange Rate			Exchange Rate	Net Foreign Exchange Gains (Losses)
NTD RMB CHF Functional Currencies
	Exchange Rate	Net Foreign Exchange Gains (Losses)		Exchange Rate	Net Foreign Exchange Gains (Losses)
NTD RMB CHF	1 (NTD:NTD) 4.34 (RMB:NTD) 30.79 (CHF:NTD)	( ( (	$ 21,148 ) 374 164) $ 20,938)	1 (NTD:NTD) 4.26 (RMB:NTD) 31.36 (CHF:NTD)	( ( (	$ 663 2,280 ) 211) $ 1,828)

36. SUPPLEMENTARY DISCLOSURES

a. Information on Significant Transactions
1) Financing provided to others: Table 1.
2) Endorsements/guarantees provided to others: Table 2.
3) Marketable securities held (excluding investments in subsidiaries): Table 3.
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None.
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4.
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5.
9) Trading in derivative instruments: None.
10) Others: Intercompany relationships and significant intercompany transactions: Table 6.
b. Information on reinvestments (excluding investees in mainland China): Table 7.
48 -
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: Table 8.
2) Significant direct or indirect (through a third region) transactions with the investee, its prices and terms of payment, unrealized gain or loss: None.
d. Information of major shareholders: List all shareholders with ownership of 5% or greater, showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder. (Table 9)

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 Group's revenue and results from continuing operations by reportable segments:

For the Nine Months Ended September 30, 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 Nine Months Ended September 30, 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	S	tandard Foods Segment	S	tandard Dairy Products Segment	C	hina Standard Segment	O	ther Segments		Adjustments and Eliminations		Total
		$ 8,379,760 1,064,123 $ 9,443,883 $ 14,464 $ 465 $ 169,324 $ 10,056 $ 2,132,410 $ 8,791,096 1,111,765 $ 9,902,861 $ 17,544 $ 869 $ 169,790 $ 5,554 $ 2,298,593		$ 1,921,578 637,312 $ 2,558,890 $ 2,148 $ 18 $ 37,266 $ 3,710 $ 425,764 $ 2,036,685 640,132 $ 2,676,817 $ 5,072 $ 19 $ 36,571 $ 2,468 $ 394,144	(	$ 11,043,136 3,689 $ 11,046,825 $ 72,581 $ 36,276 $ 176,458 $ 33,100 $ 47,153) $ 11,362,697 170 $ 11,362,867 $ 67,757 $ 37,932 $ 174,024 $ 27,905 $ 707,881		$ 3,000,619 4,302 $ 3,004,921 $ 2,225 $ 9,125 $ 70,753 $ 10,522 $ 9,916 $ 2,034,052 8,317 $ 2,042,369 $ 6,968 $ 7,750 $ 66,113 $ 9,840 $ 11,813	( ( ( ( ( ( ( ( ( ( ( (	$ - 1,709,426) $ 1,709,426) $ 7,582) $ 7,582) $ 2,687) $ - $ 2,377) $ - 1,760,384) $ 1,760,384) $ 6,029) $ 6,029) $ 2,640) $ - $ 17,852)		$ 24,345,093 - $24,345,093 $ 83,836 $ 38,302 $ 451,114 $ 57,388 $ 2,518,560 - $ 2,518,560 $ 24,224,530 - $ 24,224,530 $ 91,312 $ 40,541 $ 443,858 $ 45,767 $ 3,394,579 - $ 3,394,579

49 -

TABLE 1

STANDARD FOODS CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Balance as of September 30	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	Note
													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 Company 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	$ 63,578 350,984 651,045 50,000 175,492 175,492 526,476 438,730 614,222 460,667 10,968 8,775 21,472	$ 17,889 214,715 644,145 50,000 171,772 171,772 515,316 429,430 601,202 450,902 10,736 8,589 21,472	$ 17,889 214,715 644,145 50,000 80,003 104,510 453,083 411,652 40,512 450,902 10,736 6,721 14,163	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	$ - - - - - - - - - - - - -	- - - - - - - - - - - - -	$ - - - - - - - - - - - - -	$ 6,730,324 (Note 3) 3,365,162 (Note 4) 3,365,162 (Note 4) 6,730,324 (Note 3) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,287,785 (Note 7) 1,287,785 (Note 7) 11,906 (Note 8) 192,386 (Note 9) 120,096 (Note 10)	$ 6,730,324 (Note 3) 6,730,324 (Note 5) 6,730,324 (Note 5) 6,730,324 (Note 3) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,908,796 (Note 6) 1,287,785 (Note 7) 1,287,785 (Note 7) 11,906 (Note 8) 192,386 (Note 9) 120,096 (Note 10)	Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11

50 -

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 having business transactions.
b. Please fill in 2 for short-term financing.
Note 3. The individual and total amount shall not exceed 40% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be $6,730,324 thousand (the net value per financial statements of $16,825,810 thousand x 40% as of June 30, 2021).
Note 4. The individual amount shall not exceed 20% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be $3,365,162 thousand (the net value per financial statements of $16,825,810 thousand x 20% as of June 30, 2021).
Note 5. The total amount shall not exceed 40% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be $6,730,324 thousand (the net value per financial statements of $16,825,810 thousand x 40% as of June 30, 2021).
Note 6. The individual and total amount shall not exceed 40% of net value of Standard Investment (China) Co., Ltd. per the latest financial statements, which was calculated to be $1,908,796 thousand (the net value per financial statements of $4,771,990 thousand x 40% as of June 30, 2021).
Note 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$1,287,785 thousand (the net value per financial statements of $3,219,462 thousand x 40% as of June 30, 2021).
Note 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 $11,906 thousand (the net value per financial statements of $29,766 thousand x 40% as of June 30, 2021).
Note 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 $192,386 thousand (the net value per financial statements of $480,966 thousand x 40% as of June 30, 2021).
Note 10.The individual and total amount shall not exceed 40% of net value of Shanghai Le Min Industrial Co., Ltd. per the latest financial statements, which was calculated to be $120,096 thousand (the net value per financial statements of $300,239 thousand x 40% as of June 30, 2021).

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

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TABLE 2

STANDARD FOODS CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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)	Note
		Name	Nature of Relationships (Note 2)
0	Standard Foods Corporation	Standard Beverage Company Ltd.	(2)	$ 13,460,648 (Note 3)	$ 145,605	$ 143,550	$ 8,000	$ -	0.85%	$ 16,825,810 (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 ninety percent (90%) 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.

Note 3. The individual amount shall not exceed 80% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be $13,460,648 thousand (the net value per financial statements of $16,825,810 thousand x 80% as of June 30, 2021).
Note 4. The total amount shall not exceed 100% of net value of Standard Foods Corporation per the latest financial statements, which was calculated to be $16,825,810 thousand (the net value per financial statements of $16,825,810 thousand x 100% as of June 30, 2021).

Note 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.

52 -

TABLE 3

STANDARD FOODS CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES) SEPTEMBER 30, 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		End of the Period	End of the Period		Note
					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 Debt securities Shares Shares Shares Shares Shares	Far Eastern International Commercial Bank Co., Ltd. Chunghwa Telecom Co., Ltd. GeneFerm Biotechnology Co., Ltd. Dah Chung Bills Finance Corp. Mega Diamond Money Market Jih Sun Money Market Fund FSITC Taiwan Money Market Fund President Hang Seng TECH Index ETN Cathay China Domestic Demand Growth Fund Cathay Target Date 2029 Fund of Funds Cathay Glb Aggressive FOFs CODEIS Smart Cash Note Techgains Pan-Pacific Corporation Authenex, Inc. Paradigm Venture Capital Corporation U-Teck Environment Corporation, Ltd. Octamer, Inc. - Series E Preferred Stock	The Company is one of the directors	Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	1,444,013 48,600 2,145,110 1,243,213 8,566,555 4,019,723 5,173,774 5,900,000 3,585,869 4,720,915 2,284,844 10,000 500,000 2,424,242 153,320 11,200 800,000	$ 15,090 5,370 71,539 17,181 108,554 60,213 80,000 44,309 107,002 58,681 59,749 28,407 - - 2,145 - -	- - 5.3% 0.3% - - - - - - - - 0.9% 5.5% 7.0% 0.2% 7.8%	$ 15,090 5,370 71,539 17,181 108,554 60,213 80,000 44,309 107,002 58,681 59,749 28,407 - - 2,145 - -

(Continued)

53 -

(Continued from the previous page)

Holding Company Name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		End of the Period	End of the Period		Note
					Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Dairy Products Taiwan Ltd. Charng Hui Ltd.	Shares Shares Shares Shares Shares Shares Shares Mutual funds Mutual funds Mutual funds Mutual funds Mutual funds Mutual funds Mutual funds Shares Shares Shares Shares Shares Mutual funds	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 Standard Foods Corporation Formosa Plastics Corporation China Steel Corporation Polytronics Technology Corporation Taiwan Semiconductor Manufacturing Co., Ltd. Fuh Hwa Global Strategic Allocation FoF	Parent of Charng Hui Ltd. Charng Hui Ltd. is one of the directors	Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - 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 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	107,815 3,455 71,397 29,173 31,135 29,102 12,938 3,963,725 5,866,056 3,861,813 1,209,051 1,195,290 786,819 761,615 6,669,471 91,440 803,258 1,596,000 90,000 1,000,000	$ - - - - - - - 50,228 87,870 52,795 18,695 35,667 9,780 19,916 344,145 10,379 29,158 192,318 52,200 12,890	1.0% 1.2% 1.2% 1.2% 1.3% 1.3% 1.2% - - - - - - - 0.7% - - 2.0% - -	$ - - - - - - - 50,228 87,870 52,795 18,695 35,667 9,780 19,916 344,145 10,379 29,158 192,318 52,200 12,890	Note

(Continued)

54 -

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Holding Company Name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		End of the Period	End of the Period		Note
					Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Beverage Company Ltd. Domex Technology Corporation Accession Limited	Mutual funds Mutual funds Shares Shares Shares Shares Mutual funds Mutual funds Shares Shares Mutual funds	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 & Small Cap Fund Franklin Templeton SinoAm Franklin Templeton Global Bond Fund of Funds - Accu. InnoComm Mobile Technology Corp. AsiaVest Liquidation Co. Term Liquidity Fund	Charng Hui Ltd. is one of the directors	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	1,453,360 351,634 850,500 8,297,000 1,000,000 7,742 225,000 282,988 3,600,000 200 33,453	$ 18,588 4,807 4,338 - - 4,099 3,404 3,619 360,000 1,031 98,189	- - 1.9% 23.7% 6.0% - - - 13.4% 0.7% -	$ 18,588 4,807 4,338 - - 4,099 3,404 3,619 360,000 1,031 98,189

Note: The amounts presented above were eliminated upon consolidation.

55 -

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 NINE MONTHS ENDED SEPTEMBER 30, 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)	Note
			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	( $ 1,064,017 ) 637,312 1,064,017 ( 637,312 ) ( 1,323,831 ) 430,963 1,323,831 ( 430,963 ) ( 4,196,833 ) 4,196,833 ( 3,048,652 ) 3,048,652	11.27% 12.81% 58.16% 24.91% 72.66% 19.54% 15.41% 4.05% 99.58% 48.81% 88.29% 35.46%	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	- - - - - - - - - - - -	- - - - - - - - - - - -	$ 182,316 - ( 182,316 ) - 462,615 ( 155,832 ) ( 462,615 ) 155,832 1,364,684 ( 1,364,684 ) 1,099,296 ( 1,099,296 )	9.50% - 44.51% - 95.37% 86.82% 15.77% 6.74% 97.21% 46.52% 100.00% 37.47%	Note Note Note Note Note Note Note Note Note Note Note Note

Note: The amounts presented above were eliminated upon consolidation.

56 -

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 SEPTEMBER 30, 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	Note
							Amount	Actions Taken
Standard Foods Corporation Standard Foods Corporation Standard Foods Corporation Shanghai Standard Foods Co., Ltd. Shanghai Standard Foods Co., Ltd. Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Investment (China) 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 Shanghai Standard Foods 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 Standard Investment (China) Co., Ltd.'s subsidiary Brother company of Standard Investment (China) Co., Ltd.	Trade receivables Other receivables Financing receivables - related parties Other receivables Financing receivables - related parties Other receivables Trade receivables Financing receivables - related parties Other receivables Trade receivables Financing receivables - related parties Other receivables Trade receivables Notes receivable Other receivables Trade receivables Financing receivables - related parties Other receivables Trade receivables Financing receivables - related parties Other receivables Trade receivables Other receivables	$ 182,316 3,607 $ 185,923 $ 214,715 494 $ 215,209 $ 644,145 1,482 $ 645,627 $ 462,615 40,512 4,604 $ 507,731 $ 19,316 450,902 3,519 $ 473,737 $ 1,241,456 123,228 22,161 $ 1,386,845 $ 149 411,652 15,959 $ 427,760 $ 98 453,083 10,156 $ 463,337 $ 155,832 3,227 $ 159,059	9.16 3.48 2.48 3.67 3.67 7.72 11.35 5.42		$ - - $ - $ - - $ - $ - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - $ -		$ 41,206 (Note 1) 3,607 (Note 1) $ 44,813 (Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ 213,370 (Note 1) - (Note 1) 252 (Note 1) $ 213,622 (Note 1) $ 19,316 (Note 1) - (Note 1) - (Note 1) $ 19,316 (Note 1) $ 1,021,631 (Note 1) - (Note 1) 22,161 (Note 1) $ 1,043,792 (Note 1) $ 1 (Note 1) - (Note 1) - (Note 1) $ 1 (Note 1) $ 95 (Note 1) - (Note 1) - (Note 1) $ 95 (Note 1) $ 71,721 (Note 1) - (Note 1) $ 71,721 (Note 1)		$ - - $ - $ - - $ - $ - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - - $ - $ - - $ -	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)

(Continued)

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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	Note
Standard Investment (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd.	Le Bonta Wellness Co., Ltd. Standard Investment (China) Co., Ltd.	Standard Investment (China) Co., Ltd.'s subsidiary Parent company of Standard Foods (Xiamen) Co., Ltd.	Trade receivables Financing receivables - related parties Other receivables Trade receivables Notes receivable Other receivables	$ 2 104,510 596 $ 105,108 $ 949,532 149,764 9,351 $ 1,108,647	5.33 3.41 3.41		$ - - - $ - $ - - - $ -		$ - (Note 1) - (Note 1) - (Note 1) $ - (Note 1) $ 851,071 (Note 1) 149,764 (Note 1) 9,351 (Note 1) $ 1,010,186 (Note 1)		$ - - - $ - $ - - - $ -	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)

Note 1. The amount received as of November 8, 2021.

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

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TABLE 6

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 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 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 ShanghaiStandard	Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Dairy Products Standard Beverage Standard Beverage Standard Beverage Standard Beverage Dermalab 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 Investment China Standard Foods China StandardFoods	1 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 Other receivables Sales Purchases Royalty revenue Other receivables Financing receivables - related parties Interest income Service revenue (recognized under sundry revenue) Financing receivables - related parties Interest income Other receivables Financing receivables - related parties Interest income Other receivables Financing receivables - related parties Interest income Trade receivables Financing receivables - related parties Other receivables Trade payables Other payables Sales Purchases Interest income Other expenses Research and development expenses Trade payables Sales Purchases	$ 182,316 3,607 1,064,017 637,312 7,077 118 50,000 86 990 17,889 443 494 214,715 1,573 1,482 644,145 3,294 462,615 40,512 4,604 155,832 3,227 1,323,831 430,963 349 69 2,932 1 9,874 4,737	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 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 generalconditions	0.7% - 4.4% 2.6% - - 0.2% - - 0.1% - - 0.8% - - 2.4% - 1.7% 0.1% - 0.6% - 5.4% 1.8% - - - - - -

(Continued)

59 -

(Continued from the previous page)

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 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard Shanghai Standard China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment China Standard Investment	Shanghai Le Bonta Shanghai Le Bonta Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods China Standard Foods Shanghai Dermalab Shanghai Dermalab Shanghai Dermalab Shanghai Dermalab Shanghai Dermalab Xiamen Standard Xiamen Standard Xiamen Standard China Standard Foods China Standard Foods China Standard Foods Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard	3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Trade receivables Sales Trade receivables Other receivables Financing receivables - related parties Sales Interest income Trade receivables Other receivables Financing receivables - related parties Trade payables Notes payable Other payables Sales Purchases Interest income Other income Rental expenses Other receivables Financing receivables - related parties Trade payables Interest income Expenses (social expenses and other expenses) Trade receivables Other receivables Financing receivables - related parties Notes payable Trade payables Other payables Prepayments for purchases Sales Purchases Interest income Other income	$ 3,166 3,194 19,316 3,519 450,902 17,995 3,450 149 15,959 411,652 1,241,456 123,228 22,161 446 4,196,833 3,190 16,123 72 333 80,003 29 1,024 882 98 10,156 453,083 149,764 949,532 9,351 19,324 430 3,048,652 14,211 10,260	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 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 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 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 According to the general conditions According to the general conditions Interest rate 1.000% per annum According to the general conditions	- - 0.1% - 1.7% 0.1% - - 0.1% 1.5% 4.6% 0.5% 0.1% - 17.2% - 0.1% - - 0.3% - - - - - 1.7% 0.6% 3.5% - 0.1% - 12.5% 0.1% -

(Continued)

60 -

(Continued from the previous page)

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 2 2 2 2 2 2 2 2 2 2 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5	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 Shanghai Dermalab 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 Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta	Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd. Shanghai Le Ben De Shanghai Le Ben De Shanghai Le Ben De Dermalab Dermalab Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Shanghai Le Bonta Xiamen Standard Xiamen Standard Xiamen Standard Xiamen Standard Shanghai Le Ben De Shanghai Le Ben De Shanghai Le Ben De Shanghai Le Ben De	1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Trade receivables Other receivables Financing receivables - related parties Trade payables Sales Purchases Interest income Other expenses Other payables Financing payables - related parties Interest expenses Other payables Financing payables - related parties Interest expenses Other payables Financing payables - related parties Interest expenses Trade payables Purchases Other payables Other receivables Sales Rental income Other expenses Trade receivables Trade payables Sales Purchases Trade receivables Trade payables Sales Purchases	$ 2 596 104,510 127 4 1,641 848 1,291 108 6,721 110 122 14,163 123 84 10,736 82 2,988 51,592 16 1,359 490 2,686 3,651 46 6 226 54,373 29 37 476 489	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 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 general conditions According to the general conditions According to the general conditions According to the general conditions	- - 0.4% - - - - - - - - - 0.1% - - - - - 0.2% - - - - - - - - 0.2% - - - -

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

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

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

a. Parent company to its subsidiaries.
b. Subsidiaries to its parent company.
c. Subsidiaries to subsidiaries.
Note 3. The transaction amounts are calculated as percentage of consolidated total revenue or total assets; balance sheet accounts are calculated as percentage of consolidated total assets; amounts of income statement accounts are calculated as percentage of consolidated total revenues.

Note 4. The amounts presented above were eliminated upon consolidation.

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TABLE 7

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEE COMPANIES (EXCLUDING MAINLAND INVESTED COMPANIES) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (IN THOUSANDS OF NEW TAIWAN DOLLARS)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of	September 30, 2021	September 30, 2021	Net Income (Loss) of the Investee	Share of Profits (Loss)	Note
				September 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 Company Ltd. Le Bonta Wellness International Corporation Standard Foods, LLC. Dermalab S.A. Swissderma SL Standard Corporation (Hong Kong) Limited	Tortola, British Virgin Islands Grand Cayman , Cayman Islands Taipei, Taiwan Taipei, Taiwan Hsinchu, Taiwan Taipei, Taiwan Taipei, Taiwan U.S.A. Switzerland Spain Hong Kong	Investing Investing Manufacture and sale of dairy products and beverages Investing Manufacture and sale of computer peripherals and computer appliances Manufacture and sale of beverages Sale of health food Sale of health food Development and sale of cosmetics Sale of cosmetics Investing	$ 3,936,267 4,710,865 300,853 230,000 114,116 79,072 - 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 Note 4 Note 4 4,050 3,000 150,050,815	100% 100% 100% 100% 52% 100% - 100% 100% 100% 100%	$ 3,520,274 5,573,071 979,322 413,211 393,153 81,783 - 8,355 222,779 - 5,572,706	( $ 34,567 ) ( 20,895 ) 337,784 21,463 66,189 1,300 ( 115) - 8,830 - ( 20,694 )	( $ 32,616 ) (Note 1) ( 20,895 ) 334,292 (Note 2) 4,789 34,425 1,290 (Note 3) ( 115 ) - - - -	Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5, Note 6) Subsidiary (Note 5) Sub-subsidiary (Note 5) Third-tier subsidiary (Note 5) Sub-subsidiary (Note 5)

Note 1. This amount was the share of net loss from the investee of NT$34,567 thousand plus the unrealized gain or loss on sidestream transactions of NT$1,951 thousand.

Note 2. This amount was the share of net profit from the investee of NT$337,784 thousand minus the unrealized gain or loss on upstream transactions of NT$3,492 thousand.

Note 3. This amount was the share of net profit from the investee of NT$1,300 thousand minus the unrealized gain or loss on upstream transactions of NT$10 thousand.

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

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

Note 6. Le Bonta Wellness International Corporation was liquidated in August 2021.

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TABLE 8

STANDARD FOODS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

(IN THOUSANDS OF NEW TAIWAN DOLLARS)

Investee Company in Mainland China	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan at the Beginning of the Period	Accumulated Outward Remittance for Investment from Taiwan at the Beginning of the Period	Remittance or Recovery of Funds	Remittance or Recovery of Funds	Accumulated Outward Remittance for Investment from Taiwan at the End of the Period	Net Income (Loss) of the Investee	% of Ownership of Direct or Indirect Investment	Investment Profit (Loss) Recognized (Note 2)	Carrying Amount as of September 30, 2021	Accumulated Repatriation of Investment Income at the End of the Period	Note
						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, cosmetics 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) (Note 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)	( $ 33,006 ) 1,532 29,958 1,635 ( 74,127 ) 364 ( 54,395 ) ( 13,682 ) ( 8,412 )	100.0% 99.0% 99.0% 99.0% 99.5% 100.0% 99.0% 100.0% 100.0%	( $ 30,692 ) (Note 9 ) 1,517 (Note 9 ) 36,888 (Note 9 ) 1,619 (Note 10 ) ( 73,764 ) (Note 10 ) 364 (Note 10 ) ( 45,234 ) (Note 10 ) ( 13,682 ) (Note 10 ) ( 8,412 ) (Note 10 )	$ 3,154,170 4,804,653 2,004,266 9,780 99,896 29,709 1,386,953 472,532 295,060	$ - - - - - - - - -	Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12

Accumulated Outward Remittance for Investment in Mainland China at the End of the Period		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$8,919,525		$8,919,525			Unlimited amount of investment (Note11)

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

a. Direct investment in mainland China.
b. Indirect investment in mainland China through companies registered in a third region. (Please specify the investor company in a third region.) c. Other methods.

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

a. There was no investment income (loss) recognized due to the investment still being in the development stage.
b. The investment income (loss) was determined based on the following basis:

1) The financial statements were audited and certified by an international accounting firm in cooperation with an accounting firm in ROC.

2) The financial statements were audited by the CPA of the parent company in Taiwan.
3) Others.
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Note 3. Accession Ltd. is the investor company in a third region.

Note 4. The accumulated amount invested from Taiwan for the current period is $4,034,074 thousand, and amid the amount, $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. 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.
Note 5. Standard Corporation (Hong Kong) Ltd. is the investor company in a third region.
Note 6. The company in mainland China was reinvested through a company registered in mainland China, namely Standard Investment (China) Co., Ltd.
Note 7. The company in mainland China was invested directly by Standard Foods Corporation and was reinvested through a company registered in mainland China, namely Standard Investment (China) Co., Ltd. The amount invested directly was $181,048 thousand.
Note 8. This company was spun off from Shanghai Standard Foods Co., Ltd. Accession Ltd. is the investor company in a third region.
Note 9. The basis for recognition of investment profit and loss is Note 2. b. Item c) is based on the financial statements of the investee reviewed by CPAs of the parent company in Taiwan during the same period.
Note 10. The basis for recognition of investment profit and loss is Note 2. b. Item c) is based on the financial statements of the investee that have not been reviewed by any CPA during the same period.
Note 11. The Industrial Development Bureau of the MOEA issued the proofing document of operational headquarters to the Company; the document is still valid within the review period. Hence, according to the Investment Commission of the MOEA, there is no upper limit on the amount of investment.

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

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TABLE 9

INFORMATION OF MAJOR SHAREHOLDERS SEPTEMBER 30, 2021

STANDARD FOODS CORPORATION

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 Co., Ltd.	157,247,400 133,125,408 108,503,160 46,506,000	17.18% 14.54% 11.85% 5.08%

Note 1. The major shareholders in this table are shareholders holding more than 5% of the ordinary and preference shares that have completed delivery without physical registration (including treasury shares) on the last business day of each quarter calculated by the Taiwan Depository & Clearing Corporation. The share capital recorded in the Company's consolidated financial report and the number of shares actually delivered by the company without physical registration may differ due to calculation basis.

Note 2. If the 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.
65 -

AI assistant

SFC — Interim / Quarterly Report 2021

51753_rns_2021-11-12_5ce7764e-6c9e-4b17-a5df-9ac8463ceeda.pdf

Standard Foods Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020, AND SEPTEMBER 30, 2020 (IN THOUSANDS OF NEW TAIWAN DOLLARS)

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (REVIEWED, NOT AUDITED)

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

STANDARD FOODS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (REVIEWED, NOT AUDITED) (IN THOUSANDS OF NEW TAIWAN DOLLARS)

(Continued from the previous page)

STANDARD FOODS CORPORATION AND SUBSIDIARIES

1. General Information

2. Approval of Financial Statements

3. Application of New, Amended, and Revised Standards and Interpretations

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

d. Other Significant Accounting Policies

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

(Continued from the previous page)

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTE RECEIVABLES, TRADE RECEIVABLES, AND OTHER RECEIVABLES

September 30, 2021

December 31, 2020

11. FINANCE LEASE RECEIVABLES

12. INVENTORIES

13. PREPAYMENTS

14. SUBSIDIARIES

Subsidiaries included in consolidated financial statements.

15. REAL ESTATE, PLANT, AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

d. Other lease information

17. INVESTMENT PROPERTY

(Continued from the previous page)

18. INTANGIBLE ASSETS

19. OTHER ASSETS

20. BORROWINGS

a. Short-term borrowings

21. NOTES PAYABLE AND TRADE PAYABLES

22. OTHER LIABILITIES

23. RETIREMENT BENEFIT PLANS

24. EQUITY

d. Special reserve

f. Non-controlling Interests

g. Treasury shares

25. REVENUE

a. Contract balances

b. Disaggregation of revenue

For the Nine Months Ended September 30, 2020

26. NET PROFIT

a. Interest income

b. Other income

c. Other gains and losses

g. Direct operating expenses of investment properties

h. Employee benefit expenses

Accrual rate

Amount

27. INCOME TAX

b. Income tax recognized in other comprehensive income

c. Income tax assessments

28. EARNINGS PER SHARE EARNINGS PER SHARE

Net profit for the period

29. INFORMATION ON CASH FLOWS

Changes in liabilities arising from financing activities:

For the Nine Months Ended September 30, 2021

For the Nine Months Ended September 30, 2020

30. CAPITAL RISK MANAGEMENT

31. FINANCIAL INSTRUMENTS

1) Fair value hierarchy

September 30, 2021

SFC Interim / Quarterly Report 2021