TAINAN - Audit Report / Information 2021

TAINAN ENTERPRISES CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2021 AND 2020

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Tainan Enterprises Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Tainan Enterprises Co., Ltd. (the “Company”) as of December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of the other auditors (refer to Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company. in accordance with the Norm of Professional Ethics for Certified Public Accountant in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of the other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2021 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2021 parent company only financial statements of the current

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period are stated as follows:

Cut-off of operating revenue from export sales

Description

Refer to Notes 4(28) and 6(19) for the accounting policy and the details of revenue. Exports sales comprise a significant portion of the Company’s revenues, which are recognized base on the terms and the conditions of the transaction agreed with the customer. As the revenue recognition process involves manual process and judgements, there exists a risk of material misstatement that may arise from improper timing in revenue recognition for transactions that occur near the balance sheet date. Thus, we considered the cut-off of operating revenue from export sales a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Obtained an understanding and assessed the accounting policies on revenue recognition.
Confirmed the completeness of the sales revenue transaction details for the export sales in a certain period before or after the balance sheet date and performed cut-off tests on a sampling basis to inspect the supporting documents (including confirming transaction conditions, checking orders, shipping documents, export declarations and bills of lading, etc.) to ascertain whether sales revenue was recognized in the proper period.

Other matter –Report of other auditors

We did not audit the financial statements of certain investments accounted for under equity method that are included in the parent company only financial statements. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the parent company only financial statements and the information disclosed relative to these investments, is based solely on the audit reports of other auditors. The balance of these investments accounted for under equity method amounted to $61,840 thousands and $48,832 thousands, both representing 1% of the related totals as of December 31, 2021 and 2020, and the share of profit or loss amounted to $13,811 thousands and $5,812 thousands, constituting (7%) and (1%) of the comprehensive income for the years then ended, respectively.

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Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,

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as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Tien, Chung-Yu

Independent Accountants

Lin, Tzu-Shu

PricewaterhouseCoopers, Taiwan

Republic of China

March 22, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2021 AMOUNT % `$` `212,173` `4` `-` `-` `380` `-` `1,097,887` `23` `2,183` `-` `117,724` `2` `207` `-` `745,330` `16` `121,089` `3` `2,296,973` `48` `86,954` `2` `639` `-` `30,230` `1` `1,794,164` `37` `385,909` `8` `134,633` `3` `15,731` `-` `46,701` `1` `1,528` `-` `186` `-` `9,924` `-` `2,506,599` `52` `$` `4,803,572` `100`	December 31, 2020	December 31, 2020
	AMOUNT `$` `212,173` `-` `380` `1,097,887` `2,183` `117,724` `207` `745,330` `121,089` `2,296,973` `86,954` `639` `30,230` `1,794,164` `385,909` `134,633` `15,731` `46,701` `1,528` `186` `9,924` `2,506,599` `$` `4,803,572`	AMOUNT `$` `292,991` `38,026` `378` `988,125` `5,623` `231,300` `447` `441,495` `14,921` `2,013,306` `87,084` `476` `30,421` `2,074,043` `390,816` `136,549` `19,761` `44,100` `1,994` `186` `10,436` `2,795,866` `$` `4,809,172`	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortized cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 130X Inventories 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`6` `1` `-` `21` `-` `5` `-` `9` `-`
			`42`
			`2` `-` `1` `43` `8` `3` `-` `1` `-` `-` `-`
			`58`
			`100`

(Continued)

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TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity December 31, 2021
December 31, 2020
Notes
AMOUNT
%
AMOUNT
%
6(12) and 8
$
834,707
17
$
488,280
10
6(13)
149,972
3
174,938
4
6(2)
-
-
218
-
6(19)
7,474
-
8,035
-
8,447
-
5,108
-
243,406
5
212,069
5
7
118,159
3
193,917
4
111,889
2
91,521
2
7
226,234
5
298,421
6
384
-
384
-
1,700,672
35
1,472,891
31
6(26)
39,742
1
39,742
1
6(14)
9,073
-
16,209
-
331
-
331
-
49,146
1
56,282
1
1,749,818
36
1,529,173
32
6(15)
1,471,535
31
1,471,535
31
6(7)(16)
845,412
17
874,643
17
6(17)
766,835
16
766,835
16
162,805
3
63,280
1
41,921
1
289,174
6
6(6)(7)(18)
(
212,091) (
4) (
162,805) (
3 )
6(15)
(
22,663)
- (
22,663)
-
3,053,754
64
3,279,999
68
9
$
4,803,572
100
$
4,809,172
100

Current liabilities
2100
Short-term borrowings
2110
Short-term notes and bills payable
2120
Financial liabilities at fair value
through profit or loss - current
2130
Contract liabilities - current
2150
Notes payable
2170
Accounts payable
2180
Accounts payable - related parties
2200
Other payables
2220
Other payables - related parties
2310
Advance receipts
21XX
Total current liabilities
Non-current liabilities
2570
Deferred income tax liabilities
2640
Net defined benefit liabilities - non-
current
2645
Guarantee deposits received
25XX
Total non-current liabilities
2XXX
Total liabilities
Equity
Share capital
3110
Common stock
3200
Capital surplus
Retained earnings
3310
Legal reserve
3320
Special reserve
3350
Unappropriated retained earnings
3400
Other equity interest
3500
Treasury stocks
3XXX
Total equity
Contingent Liabilities and
Commitments
3X2X
Total liabilities and equity

Liabilities and Equity	December 31, 2021 December 31, 2020 Notes AMOUNT % AMOUNT % 6(12) and 8 `$` `834,707` `17` `$` `488,280` `10` 6(13) `149,972` `3` `174,938` `4` 6(2) `-` `-` `218` `-` 6(19) `7,474` `-` `8,035` `-` `8,447` `-` `5,108` `-` `243,406` `5` `212,069` `5` 7 `118,159` `3` `193,917` `4` `111,889` `2` `91,521` `2` 7 `226,234` `5` `298,421` `6` `384` `-` `384` `-` `1,700,672` `35` `1,472,891` `31` 6(26) `39,742` `1` `39,742` `1` 6(14) `9,073` `-` `16,209` `-` `331` `-` `331` `-` `49,146` `1` `56,282` `1` `1,749,818` `36` `1,529,173` `32` 6(15) `1,471,535` `31` `1,471,535` `31` 6(7)(16) `845,412` `17` `874,643` `17` 6(17) `766,835` `16` `766,835` `16` `162,805` `3` `63,280` `1` `41,921` `1` `289,174` `6` 6(6)(7)(18) `(` `212,091) (` `4) (` `162,805) (` `3 )` 6(15) `(` `22,663)` `- (` `22,663)` `-` `3,053,754` `64` `3,279,999` `68` 9 `$` `4,803,572` `100` `$` `4,809,172` `100`
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2310 Advance receipts 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2640 Net defined benefit liabilities - non- current 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Contingent Liabilities and Commitments 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for loss per share data)

Items Year ended December 31
2021
2020
Notes
AMOUNT
%
AMOUNT
%
6(19) and 7
$
5,599,470
100
$
5,907,901
100
6(5)(14)(24)(25) and
7
(
5,100,360) (
91) (
5,514,472) (
93)
499,110
9
393,429
7
6(10)(11)(14)(24)(25)
, 7 and 12
(
183,973) (
4) (
160,383) (
3)
(
206,324) (
4) (
199,392) (
4)
(
70,672) (
1) (
72,960) (
1)
(
7,044)
-
(
124,052) (
2)
(
468,013) (
9) (
556,787) (
10)
31,097
-
(
163,358) (
3)
6(3)(20) and 7
4,384
-
12,670
-
6(9)(10)(21) and 7
10,346
-
14,219
-
6(2)(3)(7)(22)(24)
and 12
205
-
(
96,944) (
1)
6(23)
(
6,208)
-
(
16,116)
-
6(7)
(
178,105) (
3) (
135,592) (
2)
(
169,378) (
3) (
221,763) (
3)
(
138,281) (
3) (
385,121) (
6)
6(26)
3,177
-
26,515
-
($
135,104) (
3) ($
358,606) (
6)
6(14)
$
3,927
-
($
5,944)
-
6(6)(18)
163
-
(
94)
-
6(7)
(
16,376)
-
(
1,406)
-
6(26)
(
786)
-
1,189
-
6(7)(18)
(
48,852) (
1) (
95,669) (
2)
6(7)(18)
14
-
(
160)
-
($
61,910) (
1) ($
102,084) (
2)
($
197,014) (
4) ($
460,690) (
8)
6(27)
($
0.92) ($
2.45)
($
0.92) ($
2.45)

4000
Operating revenue
5000
Operating costs
5900
Net operating margin
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6450
Expected credit losses
6000
Total operating expenses
6900
Operating profit (loss)
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7070
Share of loss of subsidiaries, associates
and joint ventures accounted for under
equity method
7000
Total non-operating income and
expenses
7900
Loss before income tax
7950
Income tax benefit
8200
Loss for the year
Other comprehensive income (loss)
Components of other comprehensive
income (loss) that will not be reclassified
to profit or loss
8311
Actuarial gains (losses) on defined
benefit plan
8316
Unrealized gains (losses) on valuation of
investments in equity instruments
measured at fair value through other
comprehensive income
8330
Share of other comprehensive loss of
subsidiaries, associates and joint ventures
accounted for under equity method - will
not be reclassified to profit or loss
8349
Income tax related to components of
other comprehensive (loss) income that
will not be reclassified to profit or loss
Components of other comprehensive
income (loss) that will be reclassified to
profit or loss
8361
Financial statements translation
differences of foreign operations
8380
Share of other comprehensive income
(loss) of subsidiaries, associates and joint
ventures accounted for under equity
method - will be reclassified to profit or
loss
8300
Total other comprehensive loss for the
year
8500
Total comprehensive loss for the year
Loss per share (in dollars)
9750
Basic
9850
Diluted

Items	Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(19) and 7 `$` `5,599,470` `100` `$` `5,907,901` `100` 6(5)(14)(24)(25) and 7 `(` `5,100,360) (` `91) (` `5,514,472) (` `93)` `499,110` `9` `393,429` `7` 6(10)(11)(14)(24)(25) , 7 and 12 `(` `183,973) (` `4) (` `160,383) (` `3)` `(` `206,324) (` `4) (` `199,392) (` `4)` `(` `70,672) (` `1) (` `72,960) (` `1)` `(` `7,044)` `-` `(` `124,052) (` `2)` `(` `468,013) (` `9) (` `556,787) (` `10)` `31,097` `-` `(` `163,358) (` `3)` 6(3)(20) and 7 `4,384` `-` `12,670` `-` 6(9)(10)(21) and 7 `10,346` `-` `14,219` `-` 6(2)(3)(7)(22)(24) and 12 `205` `-` `(` `96,944) (` `1)` 6(23) `(` `6,208)` `-` `(` `16,116)` `-` 6(7) `(` `178,105) (` `3) (` `135,592) (` `2)` `(` `169,378) (` `3) (` `221,763) (` `3)` `(` `138,281) (` `3) (` `385,121) (` `6)` 6(26) `3,177` `-` `26,515` `-` `($` `135,104) (` `3) ($` `358,606) (` `6)` 6(14) `$` `3,927` `-` `($` `5,944)` `-` 6(6)(18) `163` `-` `(` `94)` `-` 6(7) `(` `16,376)` `-` `(` `1,406)` `-` 6(26) `(` `786)` `-` `1,189` `-` 6(7)(18) `(` `48,852) (` `1) (` `95,669) (` `2)` 6(7)(18) `14` `-` `(` `160)` `-` `($` `61,910) (` `1) ($` `102,084) (` `2)` `($` `197,014) (` `4) ($` `460,690) (` `8)` 6(27) `($` `0.92) ($` `2.45)` `($` `0.92) ($` `2.45)`
4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit losses 6000 Total operating expenses 6900 Operating profit (loss) Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of loss of subsidiaries, associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Loss before income tax 7950 Income tax benefit 8200 Loss for the year Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Actuarial gains (losses) on defined benefit plan 8316 Unrealized gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for under equity method - will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive (loss) income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8380 Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for under equity method - will be reclassified to profit or loss 8300 Total other comprehensive loss for the year 8500 Total comprehensive loss for the year Loss per share (in dollars) 9750 Basic 9850 Diluted

The accompanying notes are an integral part of these parent company only financial statements.

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TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2020 Balance at January 1, 2020 Net loss for the year ended December 31, 2020 Other comprehensive loss for the year ended December 31, 2020 Total comprehensive loss for the year ended December 31, 2020 Distribution of 2019 net income: Legal reserve Special reserve Cash dividends Adjustment for change in capital surplus of investee companies Difference between the acquisition price and carrying amounts of subsidiaries Balance at December 31, 2020 Year ended December 31, 2021 Balance at January 1, 2021 Net loss for the year ended December 31, 2021 Other comprehensive loss for the year ended December 31, 2021 Total comprehensive loss for the year ended December 31, 2021 Distribution of 2020 net income: Special reserve Cash distribution from capital surplus Balance at December 31, 2021	Notes		Common stock		Capital surplus				Retained Earnings	Retained Earnings		Other equity interest	Other equity interest	Other equity interest	Treasury stocks		Total equity
							Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
	6(7)(18) 6(17) 6(7)(16) 6(7)(16) 6(7)(18) 6(16)		`$ 1,471,535` `-` `-` `-` `-` `-` `-` `-` `-` `$ 1,471,535` `$ 1,471,535` `-` `-` `-` `-` `-` `$ 1,471,535`	`$` `880,971` `-` `-` `-` `-` `-` `-` `(` `1,604 )` `(` `4,724 )` `$` `874,643` `$` `874,643` `-` `-` `-` `-` `(` `29,231 )` `$` `845,412`			`$ 758,787` `-` `-` `-` `8,048` `-` `-` `-` `-` `$ 766,835` `$ 766,835` `-` `-` `-` `-` `-` `$ 766,835`		`$` `3,979` `-` `-` `-` `-` `59,301` `-` `-` `-` `$` `63,280` `$` `63,280` `-` `-` `-` `99,525` `-` `$` `162,805`	`$` `790,765` `(` `358,606 )` `(` `2,559 )` `(` `361,165 )` `(` `8,048 )` `(` `59,301 )` `(` `73,077 )` `-` `-` `$` `289,174` `$` `289,174` `(` `135,104 )` `(` `12,624 )` `(` `147,728 )` `(` `99,525 )` `-` `$` `41,921`		`(` `$` `63,372 )` `-` `(` `95,829 )` `(` `95,829 )` `-` `-` `-` `-` `-` `(` `$ 159,201 )` `(` `$ 159,201 )` `-` `(` `48,838 )` `(` `48,838 )` `-` `-` `(` `$ 208,039 )`	`$` `92` `-` `(` `3,696 )` `(` `3,696 )` `-` `-` `-` `-` `-` `($` `3,604 )` `($` `3,604 )` `-` `(` `448 )` `(` `448 )` `-` `-` `($` `4,052 )`		`($` `22,663 )` `-` `-` `-` `-` `-` `-` `-` `-` `($` `22,663 )` `($` `22,663 )` `-` `-` `-` `-` `-` `($` `22,663 )`	`$ 3,820,094` `(` `358,606 )` `(` `102,084 )` `(` `460,690 )` `-` `-` `(` `73,077 )` `(` `1,604 )` `(` `4,724 )` `$ 3,279,999` `$ 3,279,999` `(` `135,104 )` `(` `61,910 )` `(` `197,014 )` `-` `(` `29,231 )` `$ 3,053,754`

The accompanying notes are an integral part of these parent company only financial statements.

~10~

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax
Adjustments
Adjustments to reconcile profit (loss)
Gain on financial assets and liabilities at fair value
through profit or loss

Loss on disposal of investments
Expected credit losses (including listed as “Other
income”)

Share of loss of subsidiaries, associates and joint
ventures accounted for under equity method

Impairment loss on investments accounted for under
equity method

Depreciation

Loss on disposal of property, plant and equipment

Loss on disposal of investment property

Amortisation

Dividend income

Interest income

Interest expense

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable
Accounts receivable
Other receivables
Other receivables - related parties
Inventories
Prepayments
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Advance receipts
Net defined benefit liabilities - non-current
Cash (outflow) inflow generated from operations
Dividends received
Interest received
Interest paid
Income tax received
Income tax paid
Net cash flows (used in) from operating activities YearendedDecember 31,
Notes
2021
2020
($
138,281 ) ($
385,121 )
6(22)
(
218 ) (
9,805 )
-
1,016
12
6,055
124,052
6(7)
178,105
135,592
6(7)(22)
-
49,970
6(8)(10)(24)
12,814
12,510
6(22)
105
192
6(22)
3
3
6(11)(24)
7,219
6,073
6(21)
- (
8 )
6(20)
(
4,384 ) (
12,670 )
6(23)
6,208
16,116
(
2 ) (
335 )
(
115,817 )
43,240
2,029 (
2,593 )
2,833 (
3,973 )
(
303,835 )
98,853
(
106,168 )
2,799
(
561 )
6,867
3,339 (
400 )
31,337
33,902
(
75,758 ) (
25,730 )
20,471 (
10,647 )
(
72,187 ) (
977 )
-
354
(
3,209 ) (
5,232 )
(
549,902 )
74,048
-
72,138
7,802
12,632
(
5,985 ) (
17,395 )
30
-
- (
14,602 )
(
548,055 )
126,821

(Continued)

~11~

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at amortised cost
Decrease in other receivables - related parties
Return from capital reduction of financial assets at fair
value through profit or loss

Acquisition of investments accounted for under equity
method

Return capital in advance from investments accounted for
under equity method

Proceeds from liquidation of investments accounted for
under equity method

Cash paid for acquisition of property, plant and equipment
Cash paid for investment property

Acquisition of intangible assets

Increase in prepayments for equipment
Decrease in other non-current assets
Net cash flows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Repayments of short-term borrowings

Increase in short-term notes and bills payable

Decrease in short-term notes and bills payable

Decrease in guarantee deposit received

Cash distribution from capital surplus

Payment of cash dividends

Net cash flows from (used in) financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year YearendedDecember 31,
Notes
2021
2020
$
38,217 $
103,054
108,736
134,835
12
130
153
6(7)
- (
52,500 )
6(7)
33,612
-
6(7)
2,948
-
6(28)
(
4,397 ) (
8,992 )
6(10)
- (
1,540 )
6(11)
(
3,189 ) (
4,565 )
(
1,528 ) (
1,994 )
512
64
175,041
168,515
6(29)
774,707
438,280
6(29)
(
428,280 ) (
578,664 )
6(29)
-
175,000
6(29)
(
25,000 ) (
100,000 )
6(29)
- (
4 )
6(16)
(
29,231 )
-
6(17)
- (
73,077 )
292,196 (
138,465 )
(
80,818 )
156,871
6(1)
292,991
136,120
6(1)
$
212,173 $
292,991

The accompanying notes are an integral part of these parent company only financial statements.

~12~

TAINAN ENTERPRISES CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

(1) Tainan Enterprises Co., Ltd. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) and other relevant laws and regulations in August 1961. The Company is primarily engaged in manufacturing, retail and export various of apparels (including woven and knitted garments).
(2) The common shares of the Company had been listed on the Taipei Exchange since April 1999, and have been transferred to be listed on the Taiwan Stock Exchange since September 2000.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 22, 2022.

APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board (“IASB”) Amendments to IFRS 4, ‘Extension of the temporary exemption from January 1, 2021 applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, January 1, 2021 ‘Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond April 1, 2021 (Note) 30 June 2021’

Note: Earlier application from January 1, 2021 is allowed by the FSC. The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

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----- Start of picture text -----

Effective date by
New Standards, Interpretations and Amendments IASB
----- End of picture text -----

New Standards,Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment:	January 1, 2022
proceeds before intended use’
Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

FRSs issued by IASB but not yet endorsed by the FSC New standards, interpretations and amendments issued by IASB but not endorsed by the FSC are as follows:	yet included in the IFRSs
	Effective date by
New Standards, Interpretations and Amendments	IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	IASB
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9	January 1, 2023
– comparative information’
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2023
non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through

~14~

profit or loss.

  - (b) Financial assets at fair value through other comprehensive income.

  - (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5, ‘CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY’.
(3) Foreign currency translation
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and presentation currency.
A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon retranslation at the balance sheet date are recognized in profit or loss.
C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
D. All foreign exchange gains and losses are presented in the parent company only statement of comprehensive income within ‘other gains and losses’.

(4) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realized, or are intended to be

~15~

sold or consumed within the normal operating cycle;

(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realized within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than 12 months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within 12 months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
B. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Company recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Financial assets at amortized cost

A. Financial assets at amortized cost are those that meet all of the following criteria:
(a) The objective of the Company’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction

~16~

costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.

(8) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(9) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. If the cost exceeds net realizable value, valuation loss is accrued and recognized in operating costs. If the net realizable value reverses, valuation is eliminated within credit balance and is recognized as deduction of operating costs.

(10) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:
The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(11) Impairment of financial assets

For financial assets at amortized cost, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase

~17~

in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

`－` (13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(14) Investments accounted for under equity method / subsidiaries, associates and joint ventures

A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
C. After acquisition of subsidiaries, the Company recognizes proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company’s interest in that subsidiary, the Company continues to recognize its share in the subsidiary's loss proportionately.
D. As long as the change in shareholding in the subsidiaries does not lead to loss of control (transactions with non-controlling interest), it is to be treated as equity transaction that is to be treated as transactions between the owners. The difference between non-controlling equity adjustment amount and the fair value of payment and receipt is to be recognized as equity.
E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.
F. Associates are all entities over which the Company has significant influence but not control. In

~18~

general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

G. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes all changes in ‘capital surplus’ in proportion to its ownership.
I. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then “Capital surplus” and “Investments accounted for under the equity method” shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
L. The Company accounts for its interest in a joint venture using equity method. Unrealized profits and losses arising from the transactions between the Company and its joint venture are eliminated to the extent of the Company’s interest in the joint venture. However, when the transaction provides evidence of a reduction in the net realisable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Company’s share of losses in a

~19~

joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

M. According to “Regulations Governing the Preparation of Financial Statements by Securities Issuers”, “Profit for the year” and “Other comprehensive income for the year” reported in an entity's parent company only statement of comprehensive income, shall equal to “profit for the year” and “Other comprehensive income” attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in an entity's parent company only financial statements, shall equal to equity attributable to owners of parent reported in that entity's consolidated financial statements.

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Except for land, other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

re as follows:
Assets	Useful lives
Buildings ( including accessory equipment ) Machinery equipment Utilities equipment Transportation equipment Office equipment	9 ~ 55 years 3 ~ 5 years 5 ~ 10 years 4 ~ 5 years 3 ~ 5 years

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful

~20~

life of 18 ~ 55 years.

(17) Intangible assets

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 2 ~ 5 years.

(18) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognied.

(19) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

(20) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.
B. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(21) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(22) Derecognition of financial liabilities

Financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(23) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

~21~

(24) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

B. Pensions
(a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans
- i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date).
- ii. Remeasurements arising on defined benefit plan are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
C. Employees’ compensation and directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employees’ compensation is paid by shares, the Company calculates the number of shares based on the closing market price at the previous day of the board meeting resolution.

(25) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is

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levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

(26) Share capital

A. Ordinary shares are classified as equity.
B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(27) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(28) Revenue recognition

A. Sales of goods

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  - (a) Sales are recognized when control of the products has transferred, being when the products are delivered to the client, the client has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the client’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the client, and either the client has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

  - (b) A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Service revenue
- The Company provides processing and business consulting services. Revenue from delivering services is recognized under the percentage-of-completion method when the outcome of services provided can be estimated reliably. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognized only to the extent that contract costs incurred are likely to be recoverable.
(29) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes expenses for the related costs for which the grants are intended to compensate.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies
None.

(2) Critical accounting estimates and assumptions

－
Financial assets fair value measurement of unlisted stocks without active market
A. The fair value of unlisted stocks held by the Company that are not traded in an active market is determined considering those companies’ financial information, operational planning or prediction of future application. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the financial

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instruments fair value information.

B. As of December 31, 2021, the carrying amount of unlisted stocks without active market was $86,954.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

$86,954. TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash: Cash on hand Checking accounts and demand deposits Cash equivalents: Time deposits	December31,2021 `250` `$` `159,795` `160,045` `52,128` `212,173` `$`	December31,2020
		`250` `$` `214,831` `215,081`
		`77,910`
		`292,991` `$`

A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Company has no cash and cash equivalents pledged to others as of December 31, 2021 and 2020.

(2) Financial assets and liabilities at fair value through profit or loss

==> picture [483 x 153] intentionally omitted <==

----- Start of picture text -----

Assets December 31, 2021 December 31, 2020
Non-current items:
Financial assets mandatorily measured at fair value
through profit or loss
Unlisted stocks $ 86,954 $ 87,084
Liabilities
Current items:
Financial assets mandatorily measured at fair value
through profit or loss
-
Derivatives - forward foreign exchange contracts $ $ 218
----- End of picture text -----

A. Amounts recognized in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

through profit or loss are listed below:
		Forthe years ended		December31,
		2021		2020
Financial assets and liabilities mandatorily
measured at fairvalue through profit or loss	`($`	`896)`	`($`	`13,091)`

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B. The Company entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

December 31, 2020 Contract amount (notional principal Derivative instruments in thousands) Contract period Forward foreign exchange selling contracts USD 2,000 Dec., 2020 ~ March, 2021

None of above situation in 2021.

The Company entered into forward foreign exchange contracts to hedge exchange rate risk of operating activities’ proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

C. The Company has no financial assets at fair value through profit or loss pledged to others as of December 31, 2021 and 2020.
D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2), ‘Financial instruments’.

(3) Financial assets at amortized cost

in Note 12(2), ‘Financial instruments’. Financial assets at amortized cost
Current items: Bonds Non-current items: Bonds	December31,2021 `-` `$` `30,230` `$`	December31,2020
		`38,026` `$`
		`30,421` `$`

A. Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

Interest income Loss on disposal of investment	`2021` `2020` `1,539` `$` `4,858` `$` `-` `1,016)` `(` `1,539` `$` `3,842` `$` For theyears ended December31,

B. As of December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Company were approximately equal to its carrying amounts.
C. The Company has no financial assets at amortized cost pledged to others as of December 31, 2021 and 2020.
D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2), ‘Financial instruments’.

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(4) Notes and accounts receivable

Notes receivable Accounts receivable Less: Allowance for uncollectible accounts (Note)	December31,2021 December31,2020 `380` `$` `378` `$` `1,102,197` `$` `1,112,177` `$` `4,310)` `(` `124,052)` `(` `1,097,887` `$` `988,125` `$`

Note: The uncollectible accounts have been written-off for the three months ended March 31, 2021.

A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

is as follows:
Notes receivable Accounts receivable Not past due `380` `$` `1,073,106` `$` Up to 30 days `-` `9,953` 31 to 90 days `-` `3,192` Over 91 days `-` `15,946` `380` `$` `1,102,197` `$` December31,2021	Notes receivable Accounts receivable `378` `$` `926,253` `$` `-` `21,628` `-` `10,465` `-` `153,831` `378` `$` `1,112,177` `$` December31,2020
	`378` `$` `-` `-` `-` `378` `$`	`926,253` `$` `21,628` `10,465` `153,831` `1,112,177` `$`

The above ageing analysis was based on past due date.

B. As of December 31, 2021 and 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $1,155,460.
C. The Company does not hold any collateral pledged for notes and accounts receivable as of December 31, 2021 and 2020.
D. The Company has no notes and accounts receivable pledged to others as of December 31, 2021 and 2020.
E. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2), ‘Financial instruments’.

(5) Inventories

nventories
Raw materials Work in progress		December31,2021
	Cost `365,577` `$` `379,753` `745,330` `$`	Allowance for valuation loss `-` `$` `-` `-` `$`	Bookvalue `365,577` `$` `379,753` `745,330` `$`

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December 31, 2020

			D	ecember31,2020
				Allowance for
		Cost		valuation loss		Book value
Raw materials	`$`	`111,855`	`$`	`-`	`$`	`111,855`
Work in progress		`329,640`		`-`		`329,640`
	`$`	`441,495`	`$`	`-`	`$`	`441,495`

The cost of inventories recognized as expense:

		For the years ended	For the years ended	December 31,
		2021		2020
Cost of goods sold	`$`	`5,106,391`	`$`	`5,520,814`
Income from sale of scrap	`(`	`6,031)`	`(`	`6,342)`
	`$`	`5,100,360`	`$`	`5,514,472`

(6) Financial assets at fair value through other comprehensive income – non-current

Items December31,2021 Equity instruments Listed stocks `1,452` Valuation adjustment `813)` `(` `639` `$`	December31,2020
	`1,452` `976)` `(` `476` `$`

A. The Company has elected to classify equity investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $639 and $467 as of December 31, 2021 and 2020, respectively.
B. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Fair value change	2021 2020 `163` `$` `94)` `($` For theyears ended December31,

C. As of December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was the book value.
D. The Company has no financial assets at fair value through other comprehensive income pledged to others as of December 31, 2021 and 2020.
E. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2), ‘Financial instruments’.

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(7) Investments accounted for under equity method

A. Movements of investments accounted for under equity method:

Details of investments accounted for under equity method are as follows: 2021 2020 At January 1 `2,074,043` `$` `2,391,434` `$` Acquisition of investments accounted for under equity method `-` `52,500` Return capital in advance from liquidation of investments accounted for under equity method `2,948)` `(` `-` Proceeds from liquidation of investments accounted for under equity method `33,612)` `(` `-` Share of loss of subsidiaries, associates and joint ventures accounted for under equity method `178,105)` `(` `135,592)` `(` Share of other comprehensive loss of associates and joint ventures accounted for under equity method `16,362)` `(` `1,566)` `(` Dividends received from investments of associates and joint ventures accounted for under equity method `-` `72,130)` `(` Changes in equity of investment of associates and joint ventures accounted for under equity method `-` `1,604)` `(` Exchange differences on translation of foreign financial statements `48,852)` `(` `95,669)` `(` Impairment loss recognized in investments accounted for under equity method `-` `49,970)` `(` Difference between the acquisition price and carrying amount of subsidiaries `-` `4,724)` `(` Credit balance of investments transferred from other non-current liabilities `-` `8,636)` `(` At December 31 `1,794,164` `$` `2,074,043` `$` For the years ended December 31, December31,2021 December31,2020 Subsidiaries `1,784,769` `$` `2,027,584` `$` Joint ventures `9,395` `46,459` `1,794,164` `$` `2,074,043` `$`		For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
		2021		2020 `2,391,434` `$` `52,500` `-` `-` `135,592)` `(` `1,566)` `(` `72,130)` `(` `1,604)` `(` `95,669)` `(` `49,970)` `(` `4,724)` `(` `8,636)` `(` `2,074,043` `$` December31,2020 `2,027,584` `$` `46,459` `2,074,043` `$`
			`1,784,769` `$` `9,395` `1,794,164` `$`		`2,027,584` `$` `46,459` `2,074,043` `$`

B. Details of investments accounted for under equity method are as follows:

C. Subsidiaries

(a) For more information regarding the subsidiaries of the Company, please refer to Note 4(3) ‘‘Basis of consolidation’’ of the Company and subsidiaries’ consolidated financial statements of 2021
(b) The Company acquired 30% of the share capital of the subsidiary, Beyoung Fashion Co., Ltd., for $2,500 from the non-controlling interest shareholders in the fourth quarter of 2020. After Beyoung Fashion Co., Ltd. became a wholly-owned subsidiary of the Company, it reduced its capital to offset accumulated deficits amounting to $80,311 and increased its capital

~29~

amounting to $50,000 as resolved by the Board of Directors in the fourth quarter of 2020.

(c) The subsidiary of the Company, Fortune International Co., Ltd., returned the Company's remaining capital amounting to $2,948 on May 19, 2021 after the liquidation and dissolution procedures had been completed.
D. Joint venture
(a) In the fourth quarter of 2020, the Board of Directors resolved to shut down JEI JOM Enterprise Co., Ltd., a subsidiary of the Company’s joint venture, New Premium Enterprise Co., Ltd. The Company recognized an impairment loss of $49,970 (shown as other gains and losses) for the year ended December 31, 2020.
(b) The Company’s joint venture, New Premium Enterprise Co., Ltd., returned capital from liquidation amounting to $33,612 in advance in the second quarter of 2021 due to the liquidation and dissolution of its subsidiary. The amount will be settled after the subsidiary is liquidated and dissolved. However, the liquidation and dissolution process has not yet been completed as of December 31, 2021.
E. As of December 31, 2021 and 2020, the Company has no investment accounted for under equity method pledged to others as collateral.

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(8) Property, plant and equipment

January 1, 2021 Cost Accumulated depreciation For the year ended December 31, 2021 At January 1 Additions Transferred from prepayment for equipment Depreciation Disposals - cost - accumulated depreciation At December 31 December 31, 2021 Cost Accumulated depreciation	Land `258,971` `$` `-` `258,971` `$` `258,971` `$` `-` `-` `-` `-` `-` `258,971` `$` `258,971` `$` `-` `258,971` `$`	Buildings and structures Machinery `242,638` `$` `10,675` `$` `128,116)` `(` `5,650)` `(` `114,522` `$` `5,025` `$` `114,522` `$` `5,025` `$` `648` `1,666` `1,994` `-` `5,452)` `(` `1,729)` `(` `6,010)` `(` `2,053)` `(` `6,004` `1,975` `111,706` `$` `4,884` `$` `239,270` `$` `10,288` `$` `127,564)` `(` `5,404)` `(` `111,706` `$` `4,884` `$`	Utilities equipment	Transportation and office equipment Total `32,475` `$` `545,002` `$` `20,263)` `(` `154,186)` `(` `12,212` `$` `390,816` `$` `12,212` `$` `390,816` `$` `1,791` `4,105` `-` `1,994` `3,684)` `(` `10,901)` `(` `3,097)` `(` `11,160)` `(` `3,076` `11,055` `10,298` `$` `385,909` `$` `31,169` `$` `539,941` `$` `20,871)` `(` `154,032)` `(` `10,298` `$` `385,909` `$`
			`243` `$` `157)` `(` `86` `$` `86` `$` `-` `-` `36)` `(` `-` `-` `50` `$` `243` `$` `193)` `(` `50` `$`

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January 1, 2020 Cost Accumulated depreciation For the year ended December 31, 2020 At January 1 Additions Depreciation Disposals - cost - accumulated depreciation At December 31 December 31, 2020 Cost Accumulated depreciation	Land `258,971` `$` `-` `258,971` `$` `258,971` `$` `-` `-` `-` `-` `258,971` `$` `258,971` `$` `-` `258,971` `$`	Buildings and structures Machinery `242,828` `$` `12,208` `$` `122,759)` `(` `5,830)` `(` `120,069` `$` `6,378` `$` `120,069` `$` `6,378` `$` `-` `530` `5,544)` `(` `1,697)` `(` `190)` `(` `2,063)` `(` `187` `1,877` `114,522` `$` `5,025` `$` `242,638` `$` `10,675` `$` `128,116)` `(` `5,650)` `(` `114,522` `$` `5,025` `$`	Utilities equipment	Transportation and office equipment Total `23,986` `$` `538,236` `$` `17,287)` `(` `145,997)` `(` `6,699` `$` `392,239` `$` `6,699` `$` `392,239` `$` `8,854` `9,384` `3,338)` `(` `10,615)` `(` `365)` `(` `2,618)` `(` `362` `2,426` `12,212` `$` `390,816` `$` `32,475` `$` `545,002` `$` `20,263)` `(` `154,186)` `(` `12,212` `$` `390,816` `$`
			`243` `$` `121)` `(` `122` `$` `122` `$` `-` `36)` `(` `-` `-` `86` `$` `243` `$` `157)` `(` `86` `$`

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A. The Company’s property, plant and equipment are all occupied by the owner for operating purpose as of December 31, 2021 and 2020.
B. The Company has not capitalised any interest for the years ended December 31, 2021 and 2020.
C. Please refer to Note 8, ‘Pledged assets’ for information on the Company’s property, plant and equipment that were pledged as collateral as at December 31, 2021 and 2020.
(9) Leasing arrangements – lessor
A. The Company leases various assets including investment property. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To protect the lessor’s ownership rights on the leased assets, leased assets may not be used as security for borrowing purposes, or a residual value guarantee was required.
B. For the years ended December 31, 2021 and 2020, the Company recognized rent income in the amounts of $2,703 and $2,767, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

Within 1 year 1 ~ 5 years Over 5 years	December 31, 2021 `2,280` `$` `1,724` `481` `4,485` `$`	December 31, 2020
		`2,261` `$` `2,684` `601` `5,546` `$`

(10) Investment property - net

January 1, 2021 Cost Accumulated depreciation For the year ended December 31, 2021 At January 1 Depreciation Disposals - cost - accumulated depreciation At December 31 December 31, 2021 Cost Accumulated depreciation	Land Buildings Total `95,130` `$` `70,162` `$` `165,292` `$` `-` `28,743)` `(` `28,743)` `(` `95,130` `$` `41,419` `$` `136,549` `$` `95,130` `$` `41,419` `$` `136,549` `$` `-` `1,913)` `(` `1,913)` `(` `-` `534)` `(` `534)` `(` `-` `531` `531` `95,130` `$` `39,503` `$` `134,633` `$` `95,130` `$` `69,628` `$` `164,758` `$` `-` `30,125)` `(` `30,125)` `(` `95,130` `$` `39,503` `$` `134,633` `$`

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==> picture [470 x 276] intentionally omitted <==

----- Start of picture text -----

Land Buildings Total
January 1, 2020
Cost $ 95,130 $ 69,058 $ 164,188
-
Accumulated depreciation ( 27,281) ( 27,281)
$ 95,130 $ 41,777 $ 136,907
For the year ended December 31, 2020
At January 1 $ 95,130 $ 41,777 $ 136,907
-
Additions 1,540 1,540
-
Depreciation ( 1,895) ( 1,895)
-
Disposals - cost ( 436) ( 436)
-
- accumulated depreciation 433 433
At December 31 $ 95,130 $ 41,419 $ 136,549
December 31, 2020
Cost $ 95,130 $ 70,162 $ 165,292
-
Accumulated depreciation ( 28,743) ( 28,743)
$ 95,130 $ 41,419 $ 136,549
----- End of picture text -----

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
Rental income from investment property (listed as “Other income”) Direct operating expenses arising from the investment property that generated rental income during the year		For the years ended December 31,
		2021 `2,546` `$` `1,913` `$`	2020 `2,551` `$` `1,895` `$`

B. The fair value of the investment property held by the Company as of December 31, 2021 and 2020 was $412,147 and $355,967, respectively. Valuations were made based on most recent transaction prices of similar and comparable properties and official price, which is categorised within Level 2 in the fair value hierarchy.

C. The Company has not capitalized any interest for the years ended December 31, 2021 and 2020.

D. The Company has no investment property pledged to others as of December 31, 2021 and 2020.

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(11) Intangible assets

ntangible assets
		For the years ended		December 31,
		2021		2020
January 1, 2021
Cost	`$`	`26,731`	`$`	`20,593`
Accumulated amortization	`(`	`6,970)`	`(`	`2,276)`
	`$`	`19,761`	`$`	`18,317`
For the year ended December 31, 2021
At January 1	`$`	`19,761`	`$`	`18,317`
Additions`－`acquired separately		`3,189`		`4,565`
Reclassifications (Note)		`-`		`2,952`
Amortization	`(`	`7,219)`	`(`	`6,073)`
Disposals - cost	`(`	`900)`	`(`	`1,379)`
- accumulated amortization		`900`		`1,379`
At December 31	`$`	`15,731`	`$`	`19,761`
December 31, 2021
Cost	`$`	`29,020`	`$`	`26,731`
Accumulated amortization	`(`	`13,289)`	`(`	`6,970)`
	`$`	`15,731`	`$`	`19,761`

Note: Transferred from prepayment for equipment.

A. The Company has not capitalised any borrowing costs for the years ended December 31, 2021 and 2020.

B. Details of amortization on intangible assets are as follows:

	and 2020. B. Details of amortization on intangible assets are as follows:	follows:	follows:	follows:	follows:
(12)	Short-term borrowings 2021 2020 General and administrative expenses `7,219` `$` `6,073` `$` Forthe years endedDecember31, Type of borrowings December31,2021 Interest rate range Collateral Bank borrowings Unsecured bank borrowings `834,707` `$` `0.43%~0.90%` None Type of borrowings December31,2020 Interest rate range Collateral Bank borrowings Unsecured bank borrowings `488,280` `$` `0.81%~1.10%` None	Forthe years endedDecember31,
			2021 `7,219` `$` Interest rate range `0.43%~0.90%` Interest rate range `0.81%~1.10%`		2020
		`$`		`$`	`6,073`
					Collateral None Collateral None

Please refer to Note 6(23), “Finance costs” for more information about interest expense recognized by the Company for the years ended December 31, 2021 and 2020.

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(13) Short-term notes and bills payable

Type of borrowings December 31, 2021 Interest rate range Collateral Commercial paper payable $ 150,000 0.91%~0.92% None Less: Unamortized discount ( 28) $ 149,972 Type of borrowings December 31, 2020 Interest rate range Collateral Commercial paper payable $ 175,000 0.92%~0.97% None Less: Unamortized discount ( 62) $ 174,938

A. The above commercial papers were issued and secured by China Bills Finance Co., Ltd., etc., for short-term capital financing.
B. Please refer to Note 6(23), “Finance costs” for more information about interest expense recognized by the Company for the years ended December 31, 2021 and 2020.

(14) Pensions

A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 7.5% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. The information on the Company’s defined benefit pension plan is as follows:
(a) The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December31,2021	December31,2020
	`81,021)` `($` `71,948` `9,073)` `($`	`97,769)` `($` `81,560` `16,209)` `($`

(b) Movements in present value of defined benefit obligations are as follows:

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At January 1, 2021 Current service cost Interest (expense) income Remeasurements: Return on plan assets Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31, 2021 At January 1, 2020 Current service cost Interest (expense) income Remeasurements: Return on plan assets Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31, 2020	Present value of defined benefit obligations	Fair value of planassets `81,560` `$` `-` `245` `81,805` `1,233` `-` `-` `-` `1,233` `3,600` `14,690)` `(` `71,948` `$` Fair value of planassets	Net defined benefitliability `16,209)` `($` `342)` `(` `49)` `(` `16,600)` `(` `1,233` `58)` `(` `2,569` `183` `3,927` `3,600` `-` `9,073)` `($` Net defined benefitliability
	`97,769)` `($` `342)` `(` `294)` `(` `98,405)` `(` `-` `58)` `(` `2,569` `183` `2,694` `-` `14,690` `81,021)` `($` Present value of defined benefit obligations `91,651)` `($` `360)` `(` `641)` `(` `92,652)` `(` `-` `3,133)` `(` `5,332)` `(` `8,465)` `(` `-` `3,348` `97,769)` `($`
		`76,154` `$` `-` `533` `76,687` `2,521` `-` `-` `2,521` `5,700` `3,348)` `(` `81,560` `$`	`15,497)` `($` `360)` `(` `108)` `(` `15,965)` `(` `2,521` `3,133)` `(` `5,332)` `(` `5,944)` `(` `5,700` `-` `16,209)` `($`

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual

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distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(d) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	For the years ended December 31,	For the years ended December 31,
	2021	2020 `0.03%`
	`0.07%`
	`3.00%`	`3.00%`

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience according to Taiwan Life Insurance Industry 6[th] and 5[th] Mortality Table for the years ended December 31, 2021 and 2020, respectively.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [446 x 155] intentionally omitted <==

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(e) Expected contributions to the defined benefit pension plan of the Company for the next year amount to $3,600.

(f) As of December 31, 2021, the weighted average duration of the retirement plan is 8 years.

B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the

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“New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2021 and 2020 were $11,766 and $12,402, respectively.

(15) Share capital

A. Movements in the number of the Company’s ordinary shares outstanding are as follows: (Units: in thousand shares)

(Units: in thousand shares)
	For the years ended December 31,
	2021 2020
Beginning and ending balance	`146,154` `146,154`

B. As of December 31, 2021, the Company’s authorized capital was $2,000,000 (including $100,000 thousand shares reserved for employee stock options) and paid-in capital was $1,471,535, consisting of 147,154 thousand shares of ordinary stock with a par value of NT$10 (in dollars) per share. All proceeds from shares issued have been collected.
C. Treasury shares
(a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows: (Units: in thousand shares)

Reason for reacquisition	Beginning Balance Additions Decrease Ending Balance `1,000` `-` `-` `1,000` Forthe yearendedDecember31,2021 Forthe yearendedDecember31,2020	Beginning Balance Additions Decrease Ending Balance `1,000` `-` `-` `1,000` Forthe yearendedDecember31,2021 Forthe yearendedDecember31,2020	Beginning Balance Additions Decrease Ending Balance `1,000` `-` `-` `1,000` Forthe yearendedDecember31,2021 Forthe yearendedDecember31,2020	Beginning Balance Additions Decrease Ending Balance `1,000` `-` `-` `1,000` Forthe yearendedDecember31,2021 Forthe yearendedDecember31,2020
To be reissued to employees Reason for reacquisition
	Beginning Balance	Additions	Decrease	Ending Balance
To be reissued to employees	`1,000`	`-`	`-`	`1,000`

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus. The balance of treasury shares after reacquisition and reissue to employees of the Company for the years ended December 31, 2021 and 2020 was both $22,663.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the

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five-year period are to be retired.

(16) Capital surplus

A. Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.
B. Movements of the Company’s capital surplus for the years ended December 31, 2021 and 2020 are as follows:

For the year ended December31,2021		Share premium		Difference between the acquisition or disposal price and carrying amount of subsidiaries	Changes in ownership interests in subsidiaries	Changes in ownership interests in subsidiaries	Change in net equity of subsidiaries, associates and joint ventures accounted for under equity method Expired employee stock option `12,814` `$` `1,252` `$` `-` `-` `12,814` `$` `1,252` `$`		Others		Total
At January 1 Cash distribution from capital surplus At December 31		`785,295` `$` `29,231)` `(` `756,064` `$`		`20,166` `$` `-` `20,166` `$`		`46,042` `$` `-` `46,042` `$`			`9,074` `$` `-` `9,074` `$`		`874,643` `$` `29,231)` `(` `845,412` `$`

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For the year ended December31,2020 At January 1 Transanctions with non-controlling interests of subsidiaries Adjustment for change in capital surplus of investee companies (note) At December 31		Share premium Difference between the acquisition or disposal price and carrying amount of subsidiaries `785,295` `$` `26,499` `$` `-` `4,724)` `(` `-` `1,609)` `(` `785,295` `$` `20,166` `$`	Changes in ownership interests in subsidiaries	Changes in ownership interests in subsidiaries	Change in net equity of subsidiaries, associates and joint ventures accounted for under equity method Expired employee stock option `12,809` `$` `1,252` `$` `-` `-` `5` `-` `12,814` `$` `1,252` `$`		Others Total `9,074` `$` `880,971` `$` `-` `4,724)` `(` `-` `1,604)` `(` `9,074` `$` `874,643` `$`
				`46,042` `$` `-` `-` `46,042` `$`

Note: Refers to the difference between consideration and carrying amount arising from equity transactions between the subsidiary, Tainan Enterprise (BVI) Co., Limited, and the noncontrolling interest shareholders of the second-tier subsidiary and the expired portion of cash capital increase reserved for employee preemption of the subsidiary, Beyoung Fashion Co., Ltd., which the Company recognized in proportion to its ownership.
C. The Company recognized the cash disbursement from capital surplus as $29,231 ($0.2 (in dollars) per share) in 2021. On March 22, 2022 the Board and Directors proposed for the distribution of dividends from the capital surplus in the amount of $14,615 ($0.1 (in dollars) per share).

(17) Retained earnings

A. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
B. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After that, special reserve shall be set aside or reversed in accordance with the related laws or the regulations. The remainder, if any, shall be the current distributable earnings. The current distributable earnings along with the unappropriated earnings in the prior year shall be the accumulated distributable earnings which shall be proposed by the Board of Directors and resolved by the shareholders as dividends to shareholders. The Company’s dividend policy shall

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take into account current and future development plan, investment environment, capital needs, domestic and foreign competition, and capital budget, etc. along with shareholders’ interests. Each year, at least 30% of the current distributable earnings shall be appropriated as dividends. The dividends can be distributed in the form of cash or shares and cash dividends shall account for at least 10% of the total dividends distributed.

C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
D. For the years ended December 31, 2021 and 2020, the Company recognized cash dividends －
distributed to owners amounting to $ and $73,077 ($0.5 (in dollars) per share), respectively. On March 22, 2022, the Board of Directors proposed not to distribute from 2021 earnings except setting aside special surplus reserve in the amount of $41,919.
(18) Other equity items

For theyear ended December31,2021	Currency translation difference	Financial assets at fair value through other comprehensive income `3,604)` `($` `-` `-` `163` `611)` `(` `4,052)` `($`	Total `162,805)` `($` `48,852)` `(` `14` `163` `611)` `(` `212,091)` `($`
At January 1 Currency translation differences: –Company –Subsidiaries Unrealized valuation profit or loss of financial assets at fair value through other comprehensive income –Company –Subsidiaries At December 31	`159,201)` `($` `48,852)` `(` `14` `-` `-` `208,039)` `($`

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For theyear ended December31,2020 At January 1 Currency translation differences: –Company –Subsidiaries Unrealized valuation profit or loss of financial assets at fair value through other comprehensive income –Company –Subsidiaries At December 31	Currency translation difference Financial assets at fair value through other comprehensive income Total `63,372)` `($` `92` `$` `63,280)` `($` `95,669)` `(` `-` `95,669)` `(` `160)` `(` `-` `160)` `(` `-` `94)` `(` `94)` `(` `-` `3,602)` `(` `3,602)` `(` `159,201)` `($` `3,604)` `($` `162,805)` `($`

(19) Operating revenue

A. The Company derives revenue from the transfer of goods and services over time and at a point in time, and mainly come from various products of apparels and consultation services.

			Forthe years ended	Forthe years ended	Forthe years ended	December31,	December31,
				2021			2020
Timing of revenue recognition
At a point in time
Sales revenue		`$`		`5,362,192`	`$`		`5,649,700`
Over time
Services revenue				`237,278`			`258,201`
		`$`		`5,599,470`	`$`		`5,907,901`
B. The Company has recognized	the following revenue-related contract				liabilities:
	December 31,	2021	December31,2020				January1,	2020
Contract liabilities - current	`7,474` `$`		`$`	`8,035`		`$`		`1,168`
			For the years ended			December 31,
				2021			2020
Revenue recognized that was	included in the
contract liability balance at the beginning
of the year - receipts in advance		`$`		`8,035`	`$`		`1,168`

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(20) Interest income

nterest income
		Forthe years endedDecember			31,
		`2021`		`2020`
Interest income from bank deposits	`$`	`1,912`		`$`	`751`
Interest income from financial assets
measured at amortised cost		`1,539`			`4,858`
Others		`933`			`7,061`
	`$`	`4,384`		`$`	`12,670`
Other income
		Forthe years endedDecember			31,
		`2021`		`2020`
Rental income	`$`	`2,703`		`$`	`2,767`
Government grants income		`1,730`			`1,010`
Dividend income		`-`			`8`
Others		`5,913`			`10,434`
	`$`	`10,346`		`$`	`14,219`
Other gains and losses
		Forthe years endedDecember			31,
		`2021`		`2020`
Net gains on financial assets and liabilities
at fair value through profit or loss	`$`	`218`		`$`	`9,805`
Net currency exchange gain (loss)		`3,122`	`(`		`29,959)`
Loss on disposal of investments	`(`	`1,114)`	`(`		`24,730)`
Net loss on disposal of property, plant	`(`	`105)`	`(`		`192)`
and equipment
Net loss on disposal of investment property	`(`	`3)`	`(`		`3)`
Impairment loss		`-`	`(`		`49,970)`
Other losses	`(`	`1,913)`	`(`		`1,895)`
	`$`	`205`	`($`		`96,944)`

(21) Other income

(22) Other gains and losses

(23) Finance costs

Finance costs
Interest expense: Bank borrowings	Forthe years endedDecember31,
	`2021` `6,208` `$`	`2020` `16,116` `$`

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(24) Expenses by nature

Employee benefit expenses Depreciation charges on property, plant and equipment Depreciation charges on investment property (note) Amortisation charges on intangible assets Employee benefit expenses Depreciation charges on property, plant and equipment Depreciation charges on investment property (note) Amortisation charges on intangible assets		Operating cost Operating expense Total `36,818` `$` `274,084` `$` `310,902` `$` `1,200` `9,701` `10,901` `-` `1,913` `1,913` `-` `7,219` `7,219` `38,018` `$` `292,917` `$` `330,935` `$` For theyear ended December 31,2021 For the year ended December 31, 2020	Operating cost Operating expense Total `36,818` `$` `274,084` `$` `310,902` `$` `1,200` `9,701` `10,901` `-` `1,913` `1,913` `-` `7,219` `7,219` `38,018` `$` `292,917` `$` `330,935` `$` For theyear ended December 31,2021 For the year ended December 31, 2020	Operating cost Operating expense Total `36,818` `$` `274,084` `$` `310,902` `$` `1,200` `9,701` `10,901` `-` `1,913` `1,913` `-` `7,219` `7,219` `38,018` `$` `292,917` `$` `330,935` `$` For theyear ended December 31,2021 For the year ended December 31, 2020
		Operatingcost	Operatingexpense `269,100` `$` `9,415` `1,895` `6,073` `286,483` `$`	Total
		`32,784` `$` `1,200` `-` `-` `33,984` `$`		`301,884` `$` `10,615` `1,895` `6,073` `320,467` `$`

Note: shown as ‘other gains and losses’.

(25) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance expenses Pension costs Other personnel expenses	For the year ended December 31, 2021
	Operating cost	Operating expense `236,298` `$` `22,812` `11,057` `3,917` `274,084` `$`	Total
	`30,780` `$` `3,312` `1,100` `1,626` `36,818` `$`		`267,078` `$` `26,124` `12,157` `5,543` `310,902` `$`

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Wages and salaries Labor and health insurance expenses Pension costs Other personnel expenses		Operatingcost Operatingexpense Total `27,440` `$` `230,128` `$` `257,568` `$` `2,942` `22,955` `25,897` `990` `11,880` `12,870` `1,412` `4,137` `5,549` `32,784` `$` `269,100` `$` `301,884` `$` For theyear ended December 31,2020

A. For the years ended December 31, 2021 and 2020, the average number of employees of the Company were 437 and 467 employees, respectively, including 8 non-employee directors for both years.
B. The average employee benefit expenses per employee were $725 and $658, while average wages and salaries per employee were $623 and $561 for the years ended December 31, 2021 and 2020, respectively. The average wages and salaries for the year ended December 31, 2021 increased approximately by 11.05% compared to the year ended December 31, 2020.
C. Since the Company has set up an audit committee, there was no supervisors’ remuneration for the years ended December 31, 2021 and 2020.
D. In accordance with the Articles of Incorporation of the Company and relevant internal management regulations, for remuneration of directors and managerial officers, the remuneration committee of the Company shall evaluate performance assessments and compensation levels of directors and managerial officers by taking into account the general pay levels in the industry and the reasonableness of the correlation between the individual’s performance, the Company’s operational performance and future risk exposure; compensation of employees was set according to personal ability, participation and value of contribution in the Company’s operations and has positive correlations to operation performance.
E. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 5% for directors’ remuneration.
F. The Company did not accrue employees’ compensation and directors’ remuneration as it incurred a loss for the year ended December 31, 2021. According to the resolution of the Board of Directors on March 23, 2021, the Company did not accrue employees’ compensation and directors’ remuneration as it incurred a loss for the year ended December 31, 2020. The resolution was in agreement with those amounts recognized in the 2020 financial statements.
Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as proposed by the Board Directors and resolved by the stockholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(26) Income tax

A. Income tax benefit

(a) Components of income tax benefit:

me tax Income tax benefit (a) Components of income tax benefit:
			Forthe	years endedDecember			31,
			`2021`			`2020`
Current income tax:
Income tax incurred in current year		`$`		`518`		`$`	`2,394`
(Over) under provision of prior year's
income tax payable	`(`			`308)`			`7,921`
				`210`			`10,315`
Deferred income tax:
Origination and reversal of temporary
differences	`(`			`3,387)`	`(`		`36,830)`
Income tax benefit	`($`			`3,177)`	`($`		`26,515)`
(b) The income tax relating to components of other			comprehensive income is as follows:
			For the	years ended December			31,
			`2021`			`2020`
Remeasurement on defined benefit
obligations	`$`			`786`	`($`		`1,189)`
Reconciliation between income tax benefit and accounting loss:
			For the	years ended December			31,
			`2021`			`2020`
Tax calculated based on loss before tax and
statutory tax rate	`($`		`27,656)`		`($`		`77,024)`
Effect from items disallowed by tax regulation			`24,977`				`42,590`
Effect from tax exempt income by tax
regulation	`(`			`190)`	`(`		`2)`
(Over) under provision of prior year's income
tax payable	`(`			`308)`			`7,921`
Income tax benefit	`($`			`3,177)`	`($`		`26,515)`

(b) The income tax relating to components of other comprehensive income is as follows:

B. Reconciliation between income tax benefit and accounting loss:

C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

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For the year ended December 31, 2021

								Recognized	Recognized
					Recognized				in other
					in	profit or	comprehensive				December
		January1				loss			income			31
Deferred tax assets:
Temporary differences:
Unused compensated
absences		`$`	`1,891`		`$`	`9`		`$`	`-`		`$`	`1,900`
Pensions			`4,950`	`(`		`642)`	`(`		`786)`			`3,522`
Unrealized loss on
currency exchange			`3,134`			`1,404`			`-`			`4,538`
Unrealized loss on
investment			`14,774`			`-`			`-`			`14,774`
Tax losses			`19,351`			`2,616`			`-`			`21,967`
	`$`		`44,100`	`$`		`3,387`	`($`		`786)`	`$`		`46,701`
Deferred tax liabilities:
Temporary differences:
Incremental tax on land
revaluation	`($`		`33,178)`		`$`	`-`		`$`	`-`	`($`		`33,178)`
Unrealized gain on investment	`(`		`6,564)`			`-`			`-`	`(`		`6,564)`
	`($`		`39,742)`	`$`		`-`		`$`	`-`	`($`		`39,742)`
	`$`		`4,358`	`$`		`3,387`	`($`		`786)`	`$`		`6,959`

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			For	the	the	year ended	December 31,	December 31,	2020	2020
							Recognized
					Recognized			in other
					in	profit or	comprehensive			December
		January1				loss		income			31
Deferred tax assets:
Temporary differences:
Unused compensated
absences		`$`	`1,703`		`$`	`188`	`$`	`-`		`$`	`1,891`
Pensions			`4,807`	`(`		`1,046)`		`1,189`			`4,950`
Unrealized loss on
currency exchange			`3,592`	`(`		`458)`		`-`			`3,134`
Unrealized loss on
investment			`4,780`			`9,994`		`-`			`14,774`
Tax losses			`-`			`19,351`		`-`			`19,351`
Investment tax credits	`$`		`14,882`	`$`		`28,029`	`$`	`1,189`	`$`		`44,100`
Deferred tax liabilities:
Temporary differences:
Incremental tax on land
revaluation	`($`		`33,178)`		`$`	`-`	`$`	`-`	`($`		`33,178)`
Unrealized gain on
investment income	`(`		`15,365)`			`8,801`		`-`	`(`		`6,564)`
	`($`		`48,543)`	`$`		`8,801`	`$`	`-`	`($`		`39,742)`
	`($`		`33,661)`	`$`		`36,830`	`$`	`1,189`	`$`		`4,358`

D. Expiration dates of unused tax losses and amounts of unrecognized deferred tax assets are as follows:

December 31, 2021

Year incurred	Amount filed	Unused amount	Unrecognized deferred tax assets	Expiry year
2020 2021	`98,249` `$` `11,584` `109,833` `$`			2030 2031
Year incurred	Amount filed	Unused amount	Unrecognized deferred tax assets	Expiry year
2020	`96,754` `$`	`96,754` `$`	`-` `$`	2030

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E. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

are as follows:
	December 31, 2021		December31,2020
Deductible temporary differences
Unrealized loss on investment	`$`	`1,150,385`	`$`	`972,332`
Allowance for doubtful accounts
that exceeded the allowable
tax limit		`55,670`		`116,250`
	`$`	`1,206,055`	`$`	`1,088,582`

F. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority. There were no disputes existing between the Company and the Tax Authority as of March 22, 2022.

(27) Loss per share

March 22, 2022. Loss per share
		Year	endedDecember31,2021
			Weighted average
			number of ordinary
			shares outstanding	Loss per share
	Amount aftertax		(sharesinthousands)		(indollars)
Basic and diluted loss per share
Loss attributable to ordinary
shareholders of the parent	`($`	`135,104)`	`146,154`	`($`	`0.92)`
		Year	endedDecember31,2020
			Weighted average
			number of ordinary
			shares outstanding	Loss per share
	Amount aftertax		(shares in thousands)		(in dollars)
Basic and diluted loss per share
Loss attributable to ordinary
shareholders of the parent	`($`	`358,606)`	`146,154`	`($`	`2.45)`

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(28) Supplemental cash flow information

A. Investing activities with partial cash payments:

		For the years ended	For the years ended	December 31,
		2021		2020
Acquisition of property, plant and equipment	`$`	`4,105`	`$`	`9,384`
Add: Beginning balance of payable for
equipment (listed as “Other payables”)		`593`		`201`
Less: Ending balance of payable for
equipment (listed as “Other payables”)	`(`	`301)`	`(`	`593)`
Cash paid for acquisition of property, plant
and equipment	`$`	`4,397`	`$`	`8,992`

B. Operating and investing activities with no cash flow effects:

For the years ended December 31,

							edDece	mber31,
Changes in liabilities from financing activities (a) Write-off of allowance for doubtful accounts (b) Prepayments for equipment reclassified to property, plant and equipment (c) Prepayments for equipment reclassified to intangible assets (d) Prepayments for equipment reclassified to other non-current assets Short-term borrowings At January 1, 2021 `488,280` `$` Changes in cash flow from financing activities `346,427` Changes in other non-cash items `-` At December 31, 2021 `834,707` `$` Short-term borrowings At January 1, 2020 `628,664` `$` Changes in cash flow from financing activities `140,384)` `(` Changes in other non-cash items `-` At December 31, 2020 `488,280` `$`								`2020` `-` `-` `2,952` `1,536` Total liabilities from financing activities `663,549` `$` `321,427` `34` `985,010` `$` Total liabilities from financing activities `728,944` `$` `65,388)` `(` `7)` `(` `663,549` `$`
							`$`
							`$`
				`$`			`$`
				`$`			`$`

At January 1, 2021 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2021 At January 1, 2020 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2020
		`488,280` `$` `346,427` `-` `834,707` `$` Short-term borrowings				`331` `$` `-` `-` `331` `$` Guarantee deposits received
	`628,664` `$` `140,384)` `(` `-` `488,280` `$`		`99,945` `$` `75,000` `7)` `(` `174,938` `$`		`335` `$` `4)` `(` `-` `331` `$`

(29) Changes in liabilities from financing activities

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Namesmeses of relatedf relatedelatedlatedated partiesrtiestiesieses

Namesmeses of relatedf relatedelatedlatedated partiesrtiestiesieses Relationship with the Company P.T.Tainan Enterprises Indonesia Subsidiary Tainan Enterprises (Vietnam) Co., Ltd. Subsidiary PT. ANDALAN MANDIRI BUSANA Subsidiary TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. Subsidiary Beyoung Fashion Co., Ltd. Subsidiary Yixing Gaoqing Garments Co., Ltd. Subsidiary Gin-Sovann Fashion (Cambodia) Limited. Subsidiary Tainan Enterprise (Cayman) Co., Ltd. Associate TONY WEAR (Shanghai) Fashion Co., Ltd. Associate New Premium Enterprise Co., Ltd. Joint ventures JEI JOM Enterprise Co., Ltd. Joint ventures Nelson Sport Co., Ltd. Other related party

(2) Significant related party transactions

A. Operating revenue

nificant related party transactions Operating revenue
Sales of goods (note): P.T.Tainan Enterprises Indonesia Beyoung Fashion Co., Ltd. Subsidiaries Other related parties Sales of services: TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. P.T.Tainan Enterprises Indonesia PT. ANDALAN MANDIRI BUSANA Yixing Gaoqing Garments Co., Ltd. Tainan Enterprises (Vietnam) Co., Ltd. Subsidiaries Joint ventures	For the years ended December 31,
	2021	2020
	`5,609` `$` `4,029` `50` `-` `9,688` `65,880` `60,367` `41,518` `25,609` `25,118` `18,783` `-` `237,275` `246,963` `$`	`6,447` `$` `2,028` `-` `2,206` `10,681` `73,977` `71,916` `42,984` `19,912` `26,073` `21,773` `1,555` `258,190` `268,871` `$`

The collection period for related parties was 4 months after sales of goods, and for the third parties was 30 ~ 120 days after the end of each month. Except for the collection periods mentioned above, other terms of sales were the same for related and third parties.

Note: Sales of goods refer to export of materials purchased domestically to overseas plants. The

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Company does not recognize the amount as sales revenue. Related costs and expenses are also not recorded as profit or loss of the Company.

B. Purchases

Purchases
		For the years ended December 31,
		2021		2020
Purchases of goods:
P.T.Tainan Enterprises Indonesia	`$`	`1,249,510`	`$`	`1,508,340`
The terms of purchases and payments (due within 4 months) to related			parties were the same with
third party suppliers.

C. Processing cost of outsourcing

third party suppliers. Processing cost of outsourcing
TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. PT. ANDALAN MANDIRI BUSANA Yixing Gaoqing Garments Co., Ltd. Tainan Enterprises (Vietnam) Co., Ltd. Gin-Sovann Fashion (Cambodia) Limited.		2021 2020 `736,978` `$` `946,309` `$` `381,858` `418,450` `307,779` `246,620` `260,937` `279,090` `201,367` `147,164` `1,888,919` `$` `2,037,633` `$` For the years ended December 31,
			`946,309` `$` `418,450` `246,620` `279,090` `147,164` `2,037,633` `$`

D. Other income

Other income
TONY WEAR (Shanghai) Fashion Co., Ltd. Associates Subsidiaries		For the years ended December 31,
		2021 `2,187` `$` `228` `54` `2,469` `$`	2020 `2,267` `$` `228` `96` `2,591` `$`

E. Investment transactions

The Company participated in the capital increase of the subsidiary, Beyoung Fashion Co., Ltd., in the amount of $50,000.

F. Ending balance of sales of goods and services

Accounts receivable: Subsidiaries			For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
			2021		2020
			`6,310` `$`		`2,130` `$`

The receivables from related parties arise mainly from sale transactions and management service income. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

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G. Ending balance of purchases of goods and services

Accounts payable to related parties: Purchases of goods: P.T.Tainan Enterprises Indonesia Purchases of services: PT. ANDALAN MANDIRI BUSANA Yixing Gaoqing Garments Co., Ltd. Tainan Enterprises (Vietnam) Co., Ltd. TAINAN ENTERPRISES (CAMBODIA) CO., LTD. Subsidiaries	2021 2020 `118,159` `$` `193,917` `$` `89,142` `62,184` `88,743` `174,984` `48,349` `27,318` `-` `31,270` `-` `2,262` `226,234` `$` `298,018` `$` For the years ended December 31,

The payables to related parties arise mainly from purchase transactions and processing cost	The payables to related parties arise mainly from purchase transactions and processing cost	The payables to related parties arise mainly from purchase transactions and processing cost	The payables to related parties arise mainly from purchase transactions and processing cost	The payables to related parties arise mainly from purchase transactions and processing cost
of outsourcing. The payables bear no interest.
H.Prepayments
	December31,2021		December31,2020
TAINAN ENTERPRISES (CAMBODIA)
CO., LTD.	`$`	`48,458`	`$`	`-`
Gin-Sovann Fashion (Cambodia) Limited		`44,056`		`-`
	`$`	`92,514`	`$`	`-`
I.Ending balance of advance payments
	December31,2021		December31,2020
Accounts receivable to related parties:
PT. ANDALAN MANDIRI BUSANA	`$`	`1,340`	`$`	`3,817`
P.T.Tainan Enterprises Indonesia		`128`		`484`
	`$`	`1,468`	`$`	`4,301`
Accounts payable to related parties:
Subsidiaries	`$`	`-`	`$`	`403`
J.Loans to related parties
	December31,2021		December31,2020
Accounts receivable to related parties:
Tainan Enterprises (Vietnam) Co., Ltd.
(Note)	`$`	`116,256`	`$`	`226,999`
The loans to associates are repayable over 1 years and the interest income was				$932 and $3,084
for the years ended December 31, 2021 and 2020, respectively.

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－ Note: The interest receivables from loans to related parties was $ and $2,007 as of December 31, 2021 and 2020, respectively.

(3) Key management compensation

2021 and 2020, respectively. Key management compensation
		For the years ended		December 31,
		2021		2020
Salaries and other short-term employee benefits	`$`	`22,883`	`$`	`22,630`
Post-employment benefits		`643`		`663`
	`$`	`23,526`	`$`	`23,293`

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

==> picture [490 x 93] intentionally omitted <==

----- Start of picture text -----

Pledged asset December 31, 2021 December 31, 2020 Purpose
Land (Note) $ 92,549 $ 92,549 Guarantee for short
-term borrowings
Buildings and structures, net Guarantee for short
(Note) 36,962 36,566 -term borrowings
$ 129,511 $ 129,115
----- End of picture text -----

Note: listed as “property, plant and equipment”.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

(1) As of December 31, 2021 and 2020, the remaining balance due for construction in progress was － $2,272 and $ , respectively.

(2) As of December 31, 2021 and 2020, the unused letters of credit amounted to $102,369 and $99,097, respectively.

(3) Please refer to Note 6(9), ‘Leasing arrangements - lessor’ for more information regarding operating lease agreements.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the number of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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(2) Financial instruments

A. Financial instruments by category

December 31, 2021 December 31, 2020

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables (including related parties) Guarantee deposits paid Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables (including related parties) Guarantee deposits received	`86,954` `$` `639` `$` `212,173` `$` `30,230` `380` `1,097,887` `119,907` `186` `1,460,763` `$` `-` `$` `834,707` `$` `149,972` `8,447` `361,565` `338,123` `331` `1,693,145` `$`	`87,084` `$`
		`476` `$`
		`292,991` `$` `68,447` `378` `988,125` `236,923` `186`
		`1,587,050` `$`
		`218` `$`
		`488,280` `$` `174,938` `5,108` `405,986` `389,942` `331`
		`1,464,585` `$`

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk, and interest rate swaps are used to fix variable future cash flows. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

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(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2), “Financial assets and liabilities at fair value through profit or loss”.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Company treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchases.
iii.The Company hedges foreign exchange rate by using forward exchange contracts. However, the Company does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2), “Financial assets and liabilities at fair value through profit or loss”.
iv. The Company risk management policy is to hedge anticipated cash flows (mainly purchase of inventory that are priced in USD) in major foreign currency to reduce the risk position of major currencies.
v. The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Company’s foreign operations is managed primarily through liabilities denominated in the relevant foreign currencies.
vi. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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			December31,2021	December31,2021	December31,2021
		Foreign
		currency
		amount
	(in	thousands)	Exchange rate			Bookvalue
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD	`$`	`47,613`		`27.68`	`$`	`1,317,918`
RMB:NTD		`19,719`		`4.344`		`85,660`
Investment accounted for
under equity method
USD:NTD		`64,084`		`27.68`		`1,773,834`
Financial liabilities
Monetary items
USD:NTD		`43,081`		`27.68`		`1,192,486`
RMB:NTD		`20,429`		`4.344`		`88,745`
			December31,2020
		Foreign
		currency
		amount
	(in	thousands)	Exchangerate			Bookvalue
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD	`$`	`52,245`		`28.48`	`$`	`1,487,949`
RMB:NTD		`35,118`		`4.377`		`153,712`
Investment accounted for
under equity method
USD:NTD		`72,037`		`28.48`		`2,051,613`
Financial liabilities
Monetary items
USD:NTD		`29,151`		`28.48`		`830,232`
RMB:NTD		`39,995`		`4.377`		`175,051`
Sensitivity analysis of foreign exchange risk mainly focuses on the foreign currency
monetary items at the end of the financial reporting period.				If the exchange rate of NTD to
all foreign currencies had appreciated or depreciated by 1% with all other variables held
constant, post-tax profit would have increased/decreased				by $1,223 and $6,364 for the
years ended December 31, 2021 and 2020, respectively.

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vii.The total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Company, amounted to $3,122 and ($29,959) for the years ended December 31, 2021 and 2020, respectively.

Price risk

i. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
ii. The Company’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had decreased/increased by 1% with all other variables held constant, post-tax profit would have decreased/increased by $870 and $871 for the years ended December 31, 2021 and 2020, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $6 and $5, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value Interest rate risk

i. The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rate. During 2021 and 2020, the Company’s borrowings at variable rate were mainly denominated in New Taiwan dollars and US Dollars.
ii. If the borrowing interest rate had increased/decreased by 1% or with all other variables held constant, profit, net of tax would have decreased/increased by $50 and $129 for the years ended December 31, 2021 and 2020, respectively. The main factor is that changes in interest expense result from floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost.
ii. The Company manages its credit risk taking into consideration the entire entity's concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered.

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Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

iii.The Company adopts management of credit risk, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument.
iv. The Company adopts the assumptions under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.
v. The Company classifies customer’s accounts receivable in accordance with credit rating of customer, collaterals, credit risk on trade, etc. The Company applies the simplified approach using the provision matrix, loss rate methodology to estimate expected credit loss. The Company uses the forecastability of conditions to adjust historical and timely information to assess the default possibility of accounts receivable. Movements in relation to the Company applying the simplified approach to provide loss allowance for notes receivable, accounts receivable and other receivables are as follows:

==> picture [423 x 214] intentionally omitted <==

----- Start of picture text -----

Expected loss rate Book value Allowance
At December 31, 2021
-
Individual D 0.00% $ 56,640 $
Group A 0.41% 1,045,557 4,310
Total $ 1,102,197 $ 4,310
At December 31, 2020
Individual A 39.15% $ 95,693 $ 37,459
Individual B 14.55% 183,274 26,672
Individual C 67.97% 13,980 9,503
Individual D 74.35% 67,813 50,418
-
Group A 0.07% 751,417
Total $ 1,112,177 $ 124,052
----- End of picture text -----

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vi. Movements in relation to the Company applying the modified approach to provide loss allowance for accounts receivable are as follows:

		Forthe years ended	Forthe years ended	December31,
		2021		2020
At January 1	`$`	`124,052`	`$`	`-`
Provision for impairment		`7,044`		`124,052`
Transferred to income ( listed as ‘Other
income’ )	`(`	`989)`		`-`
Write-offs	`(`	`125,797)`		`-`
At December 31	`$`	`4,310`	`$`	`124,052`

(c) Liquidity risk

i. Cash flow forecasting is performed in operating entities of the Company and aggregated by the Company’s Finance Department. Company’s Finance Department monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any if its borrowing facilities.
ii. Surplus cash held by the Company treasury over and above the balance required for working capital management are transferred to the Company’s treasury. Company’s treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above mentioned forecasts.
iii.The Company has the following undrawn borrowing facilities:

December 31, 2021 December 31, 2020 Floating rate: Expiring within one year $ 2,502,859 $ 2,391,900 iv. The table below analyses the Company’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows:

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December31,2021	Less than 1 year	Between 1 and3 years	Between 3 and5 years	Over 5 years
Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Guarantee deposit received December31,2020	`835,905` `$` `150,000` `8,447` `243,406` `118,159` `111,889` `226,234` `-` Less than 1 year	`-` `$` `-` `-` `-` `-` `-` `-` `331` Between 1 and 3 years	`-` `$` `-` `-` `-` `-` `-` `-` `-` Between 3 and 5 years	`-` `$` `-` `-` `-` `-` `-` `-` `-` Over 5 years
Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Guarantee deposit received Derivative financial liabilities: Forward foreign exchange contracts	`$489,191` `175,000` `5,108` `212,069` `193,917` `91,521` `298,421` `-` `218`	`$ -` `-` `-` `-` `-` `-` `-` `331` `-`	`$ -` `-` `-` `-` `-` `-` `-` `-` `-`	`$ -` `-` `-` `-` `-` `-` `-` `-` `-`

v. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a

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market in which transactions for the asset or liability take place with enough frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in forward exchange is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(10) “Investment property - net”.
C. The carrying amounts of the Company’s financial instruments not measured at fair value including cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, other receivables (including related parties), guarantee deposits paid, short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties), other payables (including related parties) and guarantee deposits received are approximate to their fair values.
D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
(a) The related information of the nature of the assets and liabilities are as follows:

December31,2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities	Level 1 `-` `$` `639` `639` `$`	Level 2 `-` `$` `-` `-` `$`	Level3 `86,954` `$` `-` `86,954` `$`	Total
				`86,954` `$` `639`
				`87,593` `$`

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==> picture [453 x 278] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ $ $ 87,084 $ 87,084
Financial assets at fair value
through other comprehensive
income
- -
Equity securities 476 476
-
$ 476 $ $ 87,084 $ 87,560
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
Forward foreign
- -
$ $ 218 $ $ 218
exchange contract
----- End of picture text -----

(b)The methods and assumptions the Company used to measure fair value are as follows:
i. The instruments the Company used market quoted prices (closing price of listed shares) as their fair values (that is, Level 1).
ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
iii.When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Company adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
iv. For high-complexity financial instruments, the fair value is measured by using selfdeveloped valuation model based on the valuation method and technique widely used within the same industry. The valuation model is normally applied to derivative financial instruments, debt instruments with embedded derivatives or securitised instruments. Certain inputs used in the valuation model are not observable at market, and the Company must make reasonable estimates based on its assumptions.
v. The valuation of derivative financial instruments is based on valuation model widely

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accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

vi. The market approach (Price-to-Book Ratio, P/B ratio) and asset approach (net book value adjustment) are used by the Company to measure its certain equity investment without active market, which is calculating the ratio of recent identical or similar transaction price to book as an observable input to project the fair value of the disposal group.
(c) For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2, and there was also no transfer into or out from Level 3.
(d) The following chart is the movement of Level 3 for the years ended December 31, 2021 and 2020:

2020:
For theyear ended December31,2021 At January 1 Proceeds from capital reduction At December 31 For the year ended December 31, 2020	Equity securities (Note)
	`87,084` `$` `130)` `(` `86,954` `$` Equity securities (Note)
At January 1 Gain recognized in profit or loss Proceeds from capital reduction At December 31	`87,237` `$` `-` `153)` `(` `87,084` `$`

Note: There is no adjustment of equity securities in Level 3 for the years ended December 31, 2021 and 2020 because the fair value change was insignificant .
(e) The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

~65~

==> picture [434 x 48] intentionally omitted <==

----- Start of picture text -----

Fair value at Significant Range Relationship of
December 31, Valuation unobservable (weighted inputs to fair
2021 technique input average) value
----- End of picture text -----

		2021	technique	input	average)	value
Non-
derivative
equity
instrument:
Unlisted	`$`	`92,894`	The market	Discount for	`30%`	The higher the
shares			approach	lack of		discount for
			(Price-to-	marketability		lack of
			Book Ratio)	/ Discount		marketability,
			/ Asset	for lack of		the lower the
			approach (net	control		fair value and
			book value			the higher the
			adjustment)			discount for
						lack of control,
						the lower the
						fair value.

Non- derivative equity instrument: Unlisted shares	Fair value at December 31, 2020	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	`89,089` `$`	The market approach (Price-to- Book Ratio) / Asset approach (net book value adjustment)	Discount for lack of marketability / Discount for lack of control	`30%`	The higher the discount for lack of marketability, the lower the fair value and the higher the discount for lack of control, the lower the fair value.

(f) The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation

~66~

models have changed:

December 31, 2021

Input	Change	Recognised in profit or loss	Recognised in profit or loss	Recognised in other comprehensive income	Recognised in other comprehensive income
		Favourable change	Unfavourable change	Favourable change	Unfavourable change

==> picture [445 x 115] intentionally omitted <==

December 31, 2020

Recognised in Recognised in other profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change

Financial assets Equity Discount for instruments lack of marketability and discount for lack of - - control ±10% $ 8,526 ($ 8,526) $ $

(4) Other information

Due to the impact of the Covid-19 pandemic and the government’s multiple pandemic prevention measures, the Company has implemented measures related to work place sanitation management, continued to manage related matters and implemented a staggered work schedule to operate all its plants in compliance with the “Guidelines for Enterprise Planning of Business Continuity in Response to the Coronavirus Disease 2019 (COVID-19)”. There were no significant adverse effects on various operations. However, the Company is a multinational corporation. Due to the impact of the Covid-19, the orders and the recovery of receivables have been affected to a certain extent as some governments such as the United States and Canada have implemented multiple pandemic prevention measures. The Company has also reduced the cancellation of orders by coordinating with its customers to defer the delivery. In addition, being impacted by the Covid-19 pandemic, certain

~67~

receivables amounting to $125,383 were provisioned for impairment for the year ended December 31, 2020. Later in the first quarter of 2021, the amount was fully written-off as it was unlikely to be recovered based on the assessment.

13. SUPPLEMENTARY DISCLOSURES

According to the current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2021.

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (excluding subsidiaries, associates and joint ventures): Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital or more: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 4.
I. Trading in derivative instruments undertaken during the reporting periods: All transactions had been cleared.
J. Significant inter-company transactions during the reporting periods: Please refer to table 5.

(2) Information on investees

Names, locations and other information of investee companies (excluding investees in Mainland China) ： Please refer to table 6.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 8.

(4) Major shareholders information

Major shareholders information: Please refer to table 9.

14. SEGMENT INFORMATION

Not applicable.

~68~

Tainan Enterprises Co., Ltd.

Loans to others

For the year ended December 31, 2021

Table 1

Expressed in thousands of NTD

Number	Name	Name of counterparty	Account	Related parties	Maximum balance	Ending balance	Actual amount drawn down	Interest rate	Nature of financial activity	Total transaction amount	Reason for financing	Allowance for doubtful accounts	Assetspledged	Assetspledged	Loan limit per entity (Note 2)	Maximum amount available for loan (Note 2)	Footnote
													Item	Value
0 1	Tainan Enterprises Co., Ltd. Tainan Enterprise (BVI) Co., Limited	Tainan Enterprises (Vietnam) Co., Ltd. TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. PT. ANDALAN MANDIRI BUSANA Tainan Enterprises (Vietnam) Co., Ltd. YONG JENG INTERNATIONAL CO., LTD.	Other receivables Other receivables Other receivables Other receivables Other receivables	Y Y Y Y Y	249,120 $ 41,520 179,920 110,720 83,040	193,760 $ 41,520 152,240 110,720 69,200	116,256 $ 41,520 119,024 110,720 56,663	0～2.5% －－－ 4%	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1)	- $ - - - -	Financing use Financing use Financing use Financing use Financing use	- $ - - - -	`－` `－` `－` `－` `－`	- $ - - - -	916,126 $ 972,736 972,736 972,736 364,776	916,126 $ 972,736 972,736 972,736 364,776	`－` `－` `－` `－` `－`

Note 1: Nature of loans to others is filled for short-term financing.

Note 2: In accordance with the provisions of the operating procedures for loaning to others, the calculation of the capital loan limit of individual objects and the total limit of capital loan is as follows:

Loan total limit: 40% of the net worth in the most recent financial report, but only if financing is necessary, 30% of the net worth in the most recent financial report.
Limit for a single company
(1) Trading partner: each company does not exceed the amount of business transactions.
(2) Short-term financing: each company does not exceed 30% net worth of its most recent financial report.

(3) Capital loans to foreign companies of the Republic of China that directly or indirectly hold 100% of the voting shares by the same parent company shall not exceed 80% of the net worth of the company's most recent financial report.

(4) In the case of (1) and (2) above, the limit shall be calculated in combination, but shall not exceed the total limit of loans.

Note 3: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 1, Page 1

Tainan Enterprises Co., Ltd.

Table 2

Expressed in thousands of NTD

Holding of marketable securities at the end of the period (excluding subsidiaries, associates and joint ventures)

December 31, 2021

Investor	Type and name of securities	Relationship with the securities issuer	General ledger account (Note 1)		Endingbalance	Endingbalance		Footnote
				Number of shares (in thousands)	Bookvalue	Ownership (%)	Fairvalue
Tainan Enterprises Co., Ltd. Tainan Enterprise (BVI) Co., Limited	Bonds: DEUTSCHE BANK AG 3.6615% DUE 10 APR 2025, etc. Stocks: EUROC VENTURE CAPITAL CORP. SPLENDOR ACTIVEWEAR CO., LTD. KOCHE DEVELOPMENT CO., LTD. KOCHE GLOBAL CO., LTD. DELTAMAC (TAIWAN) CO., LTD. Bonds: SBERBANK 5.125% DUE 29 OCT 2022 BANCO DO BRASIL SA 4.625% DUE 15 JAN 2025, etc. Stocks: NETSOL TECH-NOLOGIES INC.	`－` `－` `－` Substantive related parties Substantive related parties `－` `－` `－` `－`	2 3 3 3 3 4 1 2 3	- 2 10 4,888 4,270 40 - - 44	30,230 $ 129 - 60,939 25,886 639 39,730 322,133 -	- 0.25% 17.86% 13.58% 10.42% 0.11% - - 0.27%	30,230 $ 129 - 61,293 31,472 639 39,730 322,133 -	`─` `─` `─` `─` `─` `─` `─` `─` `─`

Note 1: There are four types of account items as follows:

Financial assets at amortized cost - current
Financial assets at amortized cost - non-current
Financial assets at fair value through profit or loss - non-current
Financial assets at fair value through other comprehensive income - non-current
Note 2: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 2, Page 1

Expressed in thousands of NTD

Tainan Enterprises Co., Ltd.

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid in capital or more For the year ended December 31, 2021

Table 3

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Note
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Tainan Enterprises Co., Ltd. P.T.Tainan Enterprises Indonesia	P.T.Tainan Enterprises Indonesia Tainan Enterprises Co., Ltd.	Subsidary The Company	Purchases (Sales)	1,249,510 $ 1,249,510) (	36% (100%)	(Note 1) (Note 1)	$ - -	`－` `－`	118,159) ($ 118,159	(32%) 99%	`－` `－`

Note 1: Receipt and payment terms for purchases and sales to related parties is closes its accounts in 4 months.

Note 2: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68).

Table 3, Page 1

Table 4

Expressed in thousands of NTD

Tainan Enterprises Co., Ltd.

- Receivables from related parties reaching $100 million or 20% of paid in capital or more

December 31, 2021

CompanyName	Counterparty	Relationship	Receivable from relatalparty	Receivable from relatalparty	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
			Items	Amount		Amount	Action taken
Tainan Enterprises Co., Ltd. P.T.Tainan Enterprises Indonesia Tainan Enterprise (BVI) Co., Limited Tainan Enterprise (BVI) Co., Limited	Tainan Enterprises (Vietnam) Co., Ltd. Tainan Enterprises Co., Ltd. PT. ANDALAN MANDIRI BUSANA Tainan Enterprises (Vietnam) Co., Ltd.	Subsidary The Company Subsidary Subsidary	Other receivables Accounts receivable Other receivables Other receivables	116,256 $ 118,159 119,024 110,720	`－` 8.01 `－` `－`	- $ - - -	`－` `－` `－` `－`	41,520 $ 118,159 - -	- $ - - -

Note : The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 4, Page 1

Tainan Enterprises Co., Ltd.

Significant inter company transactions during the reporting periods For the year ended December 31, 2021

Table 5

Expressed in thousands of NTD

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transactions	Transactions
				General ledger account	Amount	Terms	Percentage of total operating revenues or total assets(Note 3)
0 1 2	Tainan Enterprises Co., Ltd. Tainan Enterprises (BVI) Co., Limited Beyoung Fashion Co., Ltd.	P.T.Tainan Enterprises Indonesia PT. ANDALAN MANDIRI BUSANA TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. Tainan Enterprises (Vietnam) Co., Ltd. Yixing Gaoqing Garments Co., Ltd. Gin-Sovann Fashion (Cambodia) Limited. TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. PT. ANDALAN MANDIRI BUSANA Tainan Enterprises (Vietnam) Co., Ltd. Gin-Sovann Fashion (Cambodia) Limited.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3	Purchases Accounts payable Services revenue External processing cost Services revenue Other payables External processing cost Services revenue Prepayments External processing cost Services revenue Other receivables Other payables External processing cost Services revenue Other payables External processing cost Services revenue Prepayments Other receivables Other receivables Other receivables External processing cost Prepayments	1,249,510 $ 118,159 60,367 381,858 41,518 89,142 736,978 65,880 48,458 260,937 25,118 116,256 48,349 307,779 25,609 88,743 201,367 18,783 44,056 41,520 119,024 110,720 137,430 22,767	Closes its accounts 4 months after the end of each transaction `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－`	`22%` `2%` `1%` `7%` `1%` `2%` `13%` `1%` `1%` `5%` `－` `2%` `1%` `5%` `－` `2%` `3%` `－` `1%` `1%` `2%` `2%` `2%` `－`

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) The company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) The company to subsidiary.

(2) Subsidiary to the company.

(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Significant inter-company transactions during the reporting periods are not disclosed since these were corresponding transactions.

Note 5: The disclosure standard for important transactions is more than NT$10 million.

Note 6: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 5, Page 1

Tainan Enterprises Co., Ltd.

Table 6

Expressed in thousands of NTD

Names, locations and other information of investee companies ( excluding investees in Mainland China)

For the year ended December 31, 2021

Investor	Investee	Location	Main business	Original investment amount	Original investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net income (loss) of the investee	Investment income (loss) recogniszed by the Company	Note
				Balance as at December 31,2021	Balance as at December 31,2020	Number of shares	Ownership (%)	Book value
Tainan Enterprises Co., Ltd. Tainan Enterprise (BVI) Co., Limited T&G FASHION CO., LTD.	Tainan Enterprise (BVI) Co., Limited P.T.Tainan Enterprises Indonesia PT. ANDALAN MANDIRI BUSANA TAI NAN ENTERPRISE (CAMBODIA) CO., LTD Tainan Enterprises (Vietnam) Co., Ltd. Fortune International Co., Ltd. Beyoung Fashion Co., Ltd. New Premium Enterprise Co., Ltd. T&G FASHION CO., LTD. Tainan Enterprise (Cayman) Co., Limited Gin-Sovann Fashion (Cambodia) Limited. CAMITEX (CAMBODIA) MFG CO LTD. Golden Harbor Garment (Cambodia) Limited.	British Virgin Islands Indonesia Indonesia Cambodia Vietnam Taiwan Taiwan Samoa Seychelles Cayman Islands Cambodia Cambodia Cambodia	Professional investments Garment processing, production and selling Garment processing, production and selling Garment processing, production and selling Garment processing, production and selling Garment and cloth selling and trading service Garment processing, production and selling Professional investments Professional investments Professional investments Garment processing, production and selling Garment processing, production and selling Garment processing, production and selling	517,058 $ 64,446 182,024 29,585 319,090 - 141,742 123,525 108,500 194,623 27,680 16,971 -	517,058 $ 64,446 182,024 29,585 319,090 3,000 141,742 157,137 108,500 194,623 27,680 16,971 -	170,000 $ 2,400,000 6,000 1,000 - - 5,050,000 5,000,000 3,300,000 4,336,515 - 100 -	100.00 100.00 100.00 100.00 100.00 - 100.00 50.00 100.00 13.39 100.00 100.00 100.00	1,218,510 $ 288,219 116,140 24,210 117,360 - 20,330 9,395 9,997 61,840 20,602) ( 738) ( 118) (	42,633) ($ 20,777) ( 1,105 96,906) ( 15,442) ( 2) ( 850 5,147) ( 18,798) ( 104,735 18,362) ( - -	44,322) ($ 20,777) ( 1,105 96,944) ( 15,442) ( 2) ( 850 2,573) ( - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 1) Subsidiary Joint venture (Note 2) Subsidiary (Note 3) (Note 3) Subsidiary (Note 3) Subsidiary (Note 3) (Note 4) Subsidiary (Note 3) (Note 4)

Note 1: The liquidation had been completed in the second quarter of 2021.

Note 2: The investee returned proceeds from shares in advance as the Board of Directors resolved to shut down its subsidiary in the second quarter of 2021. The amount will be settled after the subsidiary is liquidated and dissolved. Note 3: According to regulations, the amount of investment (loss) recognized in the current period may be exempted from disclosure.

Note 4: The subsidiary has ceased business and was pending for liquidation process.

Note 5: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 6, Page 1

Tainan Enterprises Co., Ltd.

For the year ended December 31, 2021

Table 7

Expressed in thousands of NTD

Information on investments in Mainland China `－` Basic information

Investee in MainlandChina	Main business	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the the year ended December31,2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the the year ended December31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2021	Net income of investee	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company `（`Note 2`）`	Book value of investments in Mainland China as of December 31, 2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	Note
					Remitted to MainlandChina	Remitted back to Taiwan
Yixing Gaoqing Garments Co., Ltd. Zhoukou Tainan Garment Co., Ltd.	Garment processing, production and selling Garment processing, production and selling	124,560 $ 138,400	`（`Note 1`）` `（`Note 1`）`	83,040 $ -	- $ -	- $ -	83,040 $ -	51,047) ($ -	100% 100%	51,047) ($ -	156,159 $ 3,840	- $ -	(Note 3) (Note 4) (Note 5)

Accumulated amount of Investment amount approved Ceiling on investments in remittance from Taiwan by the Investment Commission Mainland China imposed by the to Mainland China of the Ministry of Economic Investment Commission of Company name as of December 31, 2021 Affairs (MOEA) MOEA Tainan Enterprises $ 267,142 $ 1,076,715 (Note 6) Co., Ltd.

Note 1: Indirect investment in Mainland China through a company set up in a third region, Tainan Enterprises (BVI) Co., Limited.

Note 2: Investment gains or losses were recognized based on andited financial statements.

Note 3: Among them, $41,520 (USD1,500 thousand dollars) was indirect investment in Mainland China through a company set up in a third region, Tainan Enterprises (BVI) Co., Limited.

Note 4: Indirect investment in Mainland China through a company set up in a third region, Tainan Enterprises (BVI) Co., Limited. Note 5: The subsidiary has ceased business and was pending for liquidation process. Note 6: Enterprises that have been approved by the Ministry of Economic Affairs to operate their headquarters are not subject to monetary or proportional limits. Note 7: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 7, Page 1

Table 8

Expressed in thousands of NTD

Tainan Enterprises Co., Ltd.

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas For the year ended December 31, 2021

Investee in MainlandChina	Sale(purchase)	Sale(purchase)	Propertytransaction	Propertytransaction	Accounts receivable (payable)	Accounts receivable (payable)	Provision of endorsements/guarantees or collaterals	Provision of endorsements/guarantees or collaterals		Financing			Others(Note)
	Amount	%	Amount	%	Balance at December 31, 2021	%	Balance at December 31, 2021	Purpose	Maximum balance during the year ended December 31,2021	Balance at December31,2021	Interest rate	Interest during the year ended December 31,2021
Yixing Gaoqing Garments Co., Ltd.	- $	`-`	- $	-	- $	`-`	- $		- $	- $	`-`	- $	External process cost $ 307,779 Service revenue $ 25,609 Other payables $ 88,743

Note: The numbers in the table that involves foreign currencies are expressed in New Taiwan dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:27.68; CNY:USD 1:0.1569).

Table 8, Page 1

Tainan Enterprises Co., Ltd.

Major shareholders information

December 31, 2021

Table 9

Expressed in shares

Name of the keyshareholder	Number of	shares	Ownership (%)	Note
	Common stock	Preferred stock
KOCHE GLOBAL CO., LTD. CMC Magnetics Co., Ltd. CHC International Investment Corporation	12,660,000 12,261,000 9,521,000	`－` `－` `－`	8.60% 8.33% 6.47%	`－` `－` `－`

Note: The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation.

The share capital which was recorded in the financial statements is different from the actual number of shares issued in dematerialised form because of the difference in the calculation basis.

Table 9 Page 1

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item
Description
Cash:
Cash on hand
Checking accounts – NTD
– Foreign currency USD 47 thousands @ 27.68
HKD 44 thousands @ 3.549
Demand deposits – NTD
– Foreign currency USD 3,892 thousands @ 27.68
CNY 427 thousands @ 4.344
Other foreign currency
Time deposits – Foreign currency Expiration by Jan. 17, 2022 ~ Jan. 29, 2022,
interest rate at 2.60% ~ 2.76%,
including CNY 12,000 thousands
@ 4.344 Amount

250
$
24,825
1,290
155
22,864
107,724
1,853
1,084
52,128

212,173
$

~69~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

==> picture [502 x 15] intentionally omitted <==

----- Start of picture text -----

Client Name Item Amount Note
----- End of picture text -----

Client Name	Item		Amount	Note
MGF SOURCING FAR EAST, Limited	Accounts receivable	`$`	`374,417`	`－`
MACY MERCHANDISING GROUP INC.	"		`165,355`	`－`
THE GAP INC.	"		`101,103`	`－`
ERALDA INDUSTRIES LTD.	"		`72,624`	`－`
(Brand: EILEEN FISHER)
REITMANS (Canada) Limited	"		`56,640`	`－`
Others (less than 5%)	"		`332,058`	`－`
			`1,102,197`
Less: Allowance for uncollectible accounts		`(`	`4,310)`
		`$`	`1,097,887`

~70~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF OTHER RECEIVABLES – RELATED PARTIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Client Name Item Receivables of loans to related parties Tainan Enterprises (Vietnam) Co., Ltd. Other receivables PT. ANDALAN MANDIRI BUSANA P.T.Tainan Enterprises Indonesia	Amount `116,256` `$` `1,340` `128` `117,724` `$`	Note
		`－` `－` `－`

~71~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

==> picture [490 x 108] intentionally omitted <==

----- Start of picture text -----

Amount
Item Description Cost Net Realisable Value Note
－
Raw materials
$ 365,577 $ 365,577 (Note)
－〞
Work in progress 379,753 393,478
$ 745,330 $ 759,055
----- End of picture text -----

Note: Please refer to Note 4 (9) "Inventories" for determining net realizable value.

~72~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF PREPAYMENTS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item	Description		Amount
Prepayments to suppliers	`－`	`$`	`114,313`
Others (less than 5%)	`－`		`6,776`
		`$`	`121,089`

~73~

TAINAN ENTERPRISES CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Stock: Euroc Venture Capital Corp. KOCHE DEVELOPMENT CO., LTD. KOCHE GLOBAL CO., LTD. Name of Financial Instrument	Beginning	Balance	Balance	Addition	Addition	Decrease	Decrease	Ending Balance	Ending Balance	Ending Balance	Accumulated impairment	Accumulated impairment	Note Collateral
	Shares (in thousands)		Carrying amount	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)		Carrying amount
	`15` `4,798` `4,212`		`259` `$` `60,939` `25,886` `87,084` `$`	`-` `90` `58`	`-` `$` `-` `-` `-` `$`	`13)` `(` `-` `-`	`130)` `($` `-` `-` `130)` `($`	`2` `4,888` `4,270`		`129` `$` `60,939` `25,886` `86,954` `$`		`-` `$` `-` `-` `-` `$`	None `－` None `－` None `－`

~74~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF FINANCIAL ASSETS AT AMORTIZED COST - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Name	Shares (inthousands) Carrying Amount Shares (in thousands) Amount `-` `30,421` `$` `-` `-` `$` BeginningBalance Addition	Shares (inthousands) Carrying Amount Shares (in thousands) Amount `-` `30,421` `$` `-` `-` `$` BeginningBalance Addition	Shares (inthousands) Carrying Amount Shares (in thousands) Amount `-` `30,421` `$` `-` `-` `$` BeginningBalance Addition	Shares (inthousands) Carrying Amount Shares (in thousands) Amount `-` `30,421` `$` `-` `-` `$` BeginningBalance Addition	Decrease	Decrease	Ending Balance	Ending Balance	Ending Balance	Accumulated Impairment	Accumulated Impairment	Collateral	Note
	Shares (inthousands)				Shares (in thousands)	Amount	Shares (inthousands)		Carrying Amount
DEUTSCHE BANK AG 3.6615% DUE 10 APR 2025 etc. bonds	`-`			`-` `$`	`-`	`191)` `($`	`-`		`30,230` `$`		`-` `$`	None	`－`

~75~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Name		Shares (in thousands) `170` `2,400` `-` `6` `1` `5,050` `5,000` `300` `12,927` Beginning	Amount `1,292,756` `$` `334,559` `136,452` `117,910` `123,477` `33,378` `96,429` `2,950` `2,137,911` `63,868)` `(` `2,074,043` `$` Balance		Addition	Addition	Addition		Decrease	Decrease		EndingBalance	EndingBalance	EndingBalance		Unit Price Total Amount `7,152` `$` `1,215,920` `$` `120` `288,219` `-` `117,360` `19,357` `116,140` `24,100` `24,100` `4` `20,330` `2` `9,395` `-` `-` `1,791,464` `$` Market Value or Net Assets Value	Collateral	Note
					Shares (in thousands)		Amount		Shares (in thousands)	Amount		Shares (in thousands)	Percentage of Ownership		Amount
Tainan Enterprise (BVI) Co., Limited P.T.Tainan Enterprises Indonesia Tainan Enterprises (Vietnam) Co., Ltd. PT. ANDALAN MANDIRI BUSANA TAI NAN ENTERPRISES (CAMBODIA) CO., LTD. Beyoung Fashion Co., Ltd. New Premium Enterprise Co., Ltd. Fortune International Co., Ltd. Less: Accumulated impairment					`-` `-` `-` `-` `-` `-` `-` `-` `-`		`384` `$` `-` `-` `1,561` `-` `850` `-` `-` `2,795` `$`		`-` `-` `-` `-` `-` `-` `-` `300)` `(` `300)` `(`	`74,630)` `($` `46,340)` `(` `19,092)` `(` `3,331)` `(` `99,267)` `(` `-` `37,064)` `(` `2,950)` `(` `282,674)` `($`		`170` `2,400` `-` `6` `1` `5,050` `5,000` `-` `12,627`	`100.00%` `100.00%` `100.00%` `100.00%` `100.00%` `100.00%` `50.00%` `－`		`1,218,510` `$` `288,219` `117,360` `116,140` `24,210` `34,228` `59,365` `-` `1,858,032` `63,868)` `(` `1,794,164` `$`		None `〞` `〞` `〞` `〞` `〞` `〞` `〞`	`－` `－` `－` `－` `－` `－` `－` (Note)

(Note) The liquidation had been completed on May 19, 2021.

~76~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Please refer to Note 6(8) for the information related to property, plant and equipment.

~77~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - ACCUMULATED DEPRECIATION

FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Please refer to Note 6(8) for the information related to property, plant and equipment. The depreciation methods and the estimated useful lives of property, plant and equipment, please refer to Note 4(15) for the details of property, plant and equipment.

~78~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN INVESTMENT PROPERTY - COST FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

[Please refer to Note 6(10) for the information related to investment property, net.]

~79~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN INVESTMENT PROPERTY - ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Please refer to Note 6(10) for the information related to investment property, net. The depreciation methods and the estimated useful lives of investment property, please refer to Note 4(16) for the details of investment property.

~80~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN DEFERRED INCOME TAX ASSETS FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

[Please refer to Note 6(26) for the information related to income tax.]

~81~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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Type of loan Descriptions Ending Balance Period of Contract Range of Interest Rate Credit Facility Collateral
----- End of picture text -----

Unsecured borrowings
Taipei Fubon Commercial Bank
HSBC Bank (Taiwan)
Taiwan Business Bank
First Commercial Bank
The Shanghai Commercial & Savings Bank
Mega International Commercial Bank
ChinaTrust Commercial Bank 212,240
$
2021.09.08～2022.04.01
0.81%~0.83%
USD 23,500 in thousands
None
180,720
2021.11.26～2022.03.29
0.78%~0.80%
USD 10,000 in thousands
〞
138,400

2021.12.20～2022.02.28
0.80%
150,000
$ 〞
129,122
2021.11.08～2022.06.27
0.73%~0.80%
300,000
$ 〞
124,560
2021.11.02～2022.01.31
0.70%
300,000
$ 〞
39,986
2021.12.01～2022.06.01
0.77%~0.90%
USD 5,000 in thousands
〞
9,679
2021.11.22～2022.05.20
0.43%
360,000
$ 〞
834,707
$

~82~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Commercial Paper China Bills Finance Corporation `〞` The Shanghai Commercial & Savings Bank Item Guarantor or Accepting Institution	Period of Contract	Range of Interest Rate		Issurance Amount (note) Discounts of Short- term Transaction Instruments `100,000` `$` `8)` `($` `50,000` `20)` `(` `150,000` `$` `28)` `($` Amount		CarryingAmount `99,992` `$` None `49,980` `〞` `149,972` `$` Collateral
	2021.11.05～2022.01.04 2021.12.16～2022.01.07	0.91% 0.92%

(Note) The issurance amount of The Shanghai Commercial & Savings Bank was from its' banking facility of $300,000.

~83~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Suppliers Name	Description		Amount	Note
WING	CHENG TEXTILE CO., LTD.	Accounts payable	`$`	`10,665`	`－`
Others	(less than 5%)	`〞`		`232,741`	`－`
			`$`	`243,406`

~84~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF ACCOUNTS PAYABLE – RELATED PARTIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Client Name P.T.Tainan Enterprises Indonesia	Description Accounts payable		Amount `118,159` `$`	Note
				`－`

~85~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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Item Description Amount
----- End of picture text -----

Item Description	Amount
Wages and salaries payable `－` Labor and health insurance premiums payable `－` Others (less than 5%) `－`	`65,766` `$` `5,772` `40,351`
	`111,889` `$`

~86~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF OTHER PAYABLES– RELATED PARTIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

==> picture [440 x 14] intentionally omitted <==

----- Start of picture text -----

Item Description Amount
----- End of picture text -----

Item Description	Amount
Processing fee payable PT. ANDALAN MANDIRI BUSANA Yixing Gaoqing Garments Co., Ltd. Tainan Enterprises (Vietnam) Co., Ltd.	`89,142` `$` `88,743` `48,349`
	`226,234` `$`

~87~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF CHANGES IN DEFFERED INCOME TAX LIABILITIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

[Please refer to Note 6(26) for the information related to income tax.]

~88~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item Sales revenue: Garments `18,890 (in thousands) pcs` Others Less: Sales discounts and allowances Service revenue Operating revenue, net Quantity	Subtotal Total `5,364,868` `$` `4,187` `5,369,055` `$` `6,863)` `(` `5,362,192` `237,278` `5,599,470` `$` Amount

~89~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item			Amount
Merchandise at January 1, 2021		`$`	`-`
Add: Merchandise purchased			`1,256,976`
Merchandise at December 31, 2021			`-`
Merchandise sold during this period			`1,256,976`
Raw materials at January 1, 2021			`111,855`
Add: Raw materials purchased			`2,196,510`
Less: Transferred to expenses	`(`		`8,186)`
Raw materials at December 31, 2021	`(`		`365,577)`
Raw materials used during this period			`1,934,602`
Direct labor			`16,829`
Manufacturing overhead			`1,948,097`
Manufacturing cost			`3,899,528`
Work in progress at January 1, 2021			`329,640`
Work in progress at December 31, 2021	`(`		`379,753)`
Cost of finished goods			`3,849,415`
Cost of production and marketing			`3,849,415`
Cost of inventory sold			`5,106,391`
Income from sale of scrap	`(`		`6,031)`
Operating costs		`$`	`5,100,360`

~90~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF MANUFACTURING OVERHEAD FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item		Amount
Processing fee	`$`	`1,910,486`
Other expenses (less than 2%)		`37,611`
	`$`	`1,948,097`

~91~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item Wages and salaries Freight Export expenses Commission expenses Others (less than 5%)	Amount
	`68,778` `$` `50,029` `29,137` `22,263` `13,766`
	`183,973` `$`

~92~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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----- Start of picture text -----

Item Amount
Wages and salaries
$ 126,542
Service fees
12,197
Insurance expenses
11,951
Others (less than 5%) 55,634
$ 206,324
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~93~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item Wages and salaries Insurance expenses Others (less than 5%)	Amount
	`52,035` `$` `5,927` `12,710`
	`70,672` `$`

~94~

TAINAN ENTERPRISES CO., LTD. STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTIZATION EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Please refer to Note 6(24) for the details of expenses by nature, and Note 6(25) for the details of employee benefit expense.

~95~

AI assistant

TAINAN — Audit Report / Information 2021

51830_rns_2021-11-10_6b86b3f3-98be-4048-8c9b-e58ca8492c4d.pdf

TAINAN ENTERPRISES CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Cut-off of operating revenue from export sales

Description

How our audit addressed the matter

Other matter –Report of other auditors

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

Independent Accountants

PricewaterhouseCoopers, Taiwan

Republic of China

March 22, 2022

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

TAINAN ENTERPRISES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

TAINAN ENTERPRISES CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(4) Classification of current and non-current items

(5) Cash equivalents

(6) Financial assets at fair value through profit or loss

(7) Financial assets at amortized cost

(8) Accounts and notes receivable

(9) Inventories

(10) Financial assets at fair value through other comprehensive income

(11) Impairment of financial assets

(12) Derecognition of financial assets

－ (13) Leasing arrangements (lessor) operating leases

(15) Property, plant and equipment

(16) Investment property

(17) Intangible assets

(18) Impairment of non-financial assets

(19) Borrowings

(20) Financial liabilities at fair value through profit or loss

(21) Notes and accounts payable

(22) Derecognition of financial liabilities

(23) Offsetting financial instruments

(24) Employee benefits

A. Short-term employee benefits

(25) Income tax

(26) Share capital

(27) Dividends

(28) Revenue recognition

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

(2) Critical accounting estimates and assumptions

6. DETAILS OF SIGNIFICANT ACCOUNTS

(3) Financial assets at amortized cost

(4) Notes and accounts receivable

(5) Inventories

December 31, 2020

(7) Investments accounted for under equity method

C. Subsidiaries

(8) Property, plant and equipment

(11) Intangible assets

(13) Short-term notes and bills payable

(14) Pensions

(15) Share capital

(16) Capital surplus

(17) Retained earnings

(19) Operating revenue

(20) Interest income

(21) Other income

(22) Other gains and losses

TAINAN Audit Report / Information 2021

`－` (13) Leasing arrangements (lessor) operating leases

Information on investments in Mainland China `－` Basic information