TEX YEAR - Audit Report / Information 2021

Stock Code: 4720

Tex Year Industries Inc.

Individual Financial Statements and Independent Auditor’s Review Report

2021 and 2020

Address: No. 9, Wuquan 6th Road, Wugu District, New Taipei City Telephone: (02)22992121

INDEPENDENT AUDITOR’S REVIEW REPORT

Tex Year Industries Inc.:

Audit Opinion

We have duly audited the individual balance sheet of Tex Year Industries Inc. as of December 31, 2021 and 2020, and the individual comprehensive income statement, individual statement of changes in equity and individual cash flow statement from January 1 to December 31, 2021 and 2020 as well as notes to the individual financial statements (including the summary of significant accounting policies).

In our opinion, based on our audits and the reports of the other auditors (see Other Matters), the individual financial statements referred to above have been prepared, in all material respects, in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and are fairly stated in terms of the individual financial position of Tex Year Industries Inc. as of December 31, 2021 and 2020, and the individual financial performance and individual cash flows for the years 2021 and 2020 from January 1 to December 31.

Basis of Audit Opinion

We conducted the audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountant and the Generally Accepted Auditing Standards. Our responsibility under these standards will be further explained in the paragraph of our responsibility to review the individual financial statements. The staff of the firm to which we are affiliated, who are subject to the independence regulation, have maintained superior independence from Tex Year in accordance with the Code of Ethics for Accountants, and have fulfilled other responsibilities under the Code. We believe that we have obtained sufficient and appropriate audit evidence to form the basis of our audit opinion.

Key Audit Matters

A key audit matter is one that, in our professional judgment, is material to the examination of the individual financial statements of Tex Year Industries Inc. for 2021. These matters have been considered in the process of examining the individual financial statements taken as a whole and forming an opinion thereon, and we do not express an opinion on these matters individually.

The key audit matters of the financial statements of Tex Year Industries Inc. for 2021 are summarized as follows:

Authenticity of sales revenue

The sales revenue of Tex Year Industries Inc. from selling products to some of the top ten customers in 2021 increased compared with that in the same period of last year. Whether the sales revenue is correctly recognized when meeting the performance obligations will have a significant impact on the individual financial report, and therefore it is listed as a key audit matter of this year.

For the accounting policies and relevant disclosure information related to sales revenue, please refer to notes 4 (13), 24 and 31 to the individual financial report.

Our audit procedures for assessing the authenticity of sales revenue in the course of the audit are as follows:

Understand and test the effectiveness of the design and implementation of the internal control system related to the authenticity of sales revenue.
Obtain on a sample basis the transaction documents of the aforementioned sales revenue, including sales orders, shipping documents and collection documents, to verify the authenticity of the sales revenue posted.

Other Matters

The individual financial statements of Tex Year Industries, Inc. certain subsidiaries and investment companies using the equity method have not been audited by us, but by other auditors. Accordingly, our opinion on the financial statements referred to above is based on our review of the amounts and disclosures in the notes to the financial statements of certain investees in respect of investments accounted for using the equity method. For these investments by the equity method, the balances of December 31, 2021 and 2020 were NTS873,386 thousand and NT$870,221 thousand respectively, representing 33% and 36% of the total assets respectively. From January 1 to December 31, 2021 and 2020, the share of joint venture profit and loss recognized by the equity method was NT$32,862 thousand and NT$70,116 thousand respectively, accounting for 94% and 91% of the net profit before tax respectively.

Responsibility of Management and Governance Unit to Individual Financial Statements

Management’s responsibility is to prepare fairly presented financial statements in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and to maintain such internal control relevant to the preparation of financial statements as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the individual financial statements, management’s responsibility also includes assessing Tex Year Industries Inc.’s ability to continue as a going concern, the disclosure of related matters, and the adoption of the going concern basis of accounting,

unless management intends to liquidate Tex Year Industries Inc. or cease operations, or there is no practical alternative to liquidation or cessation of operations.

The governance units (including supervisors) of Tex Year are responsible for overseeing the financial reporting process.

Responsibility of Accountants Auditing Individual Financial Statements

The purpose of our audit is to obtain reasonable assurance about whether the individual financial statements taken as a whole are free from material misstatement, whether due to fraud or error, and to issue a report thereon. However, an audit performed in accordance with generally accepted auditing standards does not provide assurance that material misstatements in the individual financial statements will be detected. Misrepresentation may be the result of fraud or error. Individual amounts or aggregates that are not true are considered material if they could reasonably be expected to affect the economic decisions made by users of the individual financial statements.

We conducted our audit in accordance with generally accepted auditing standards, exercising our professional judgment and maintaining our professional skepticism. We also perform the following tasks.

Identify and assess the risks of material misstatement of the individual financial statements arising from fraud or error; design and implement appropriate responses to the risks assessed; and obtain sufficient and appropriate evidence to provide a basis for an audit opinion. Because fraud may involve conspiracy, forgery, intentional omission, misrepresentation or a breach of internal control, the risk of not detecting material misstatement due to fraud is higher than that due to error.
We obtained an understanding of the internal control relevant to our 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 Tex Year Enterprises, Inc.' internal control.
Evaluate the appropriateness of the accounting policies used by management and the reasonableness of the accounting estimates and related disclosures made by management.
Based on the evidence obtained, we have made a conclusion on the appropriateness of management's adoption of the going concern basis of accounting and whether there is any material uncertainty about the events or circumstances that may cast significant doubt on the ability of Tex Year Industries Inc. to continue as a going concern. If we believe that there is a material uncertainty about such events or conditions, we should draw the attention of users of the individual financial statements to the relevant disclosures in the audit report

or revise our audit opinion if such disclosures are inappropriate. Our conclusion is based on the audit evidence obtained up to the date of the audit report. However, future events or circumstances may cause Tex Year Industries, to cease to have the ability to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the related notes, and whether the individual financial statements present fairly the related transactions and events.
We obtained sufficient and appropriate audit evidence on the financial information of the constituent entities of the Group to express an opinion on the individual financial statements. We are responsible for the direction, supervision and execution of the Company’s audits, and for forming an opinion on the Company's audits.

We will communicate with the governance unit regarding the scope and timing of the planned audit and significant audit findings, including significant deficiencies in internal control identified during the audit.

We also provide the governing body with a statement that the independence-regulated personnel of the firm to which we are affiliated have complied with the Code of Ethics for Accountants with respect to independence, and communicate with the governing body about all relationships and other matters (including related safeguards) that may be considered to affect the accountant's independence.

From the matters communicated with the governance unit, we decided on the key audit items for the audit of the annual consolidated financial statements of Tex Year Industries Inc. for 2021. We identified those matters in our auditor's report, except for those matters that are not permitted by law to be disclosed publicly or, in the rarest of circumstances, where we decided not to communicate those matters in our auditor's report because the negative effect of such communication could reasonably be expected to outweigh the public interest that would be served.

The engagement partners on the reviews resulting in this independent auditor’s review report are Pi-Yu Chuang and Ming-Yen Chien.

Deloitte & Touche Taipei, Taiwan Republic of China

March 31, 2022

Notice to Readers

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

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

Tex Year Industries Inc. Individual Balance Sheet

December 31, 2021 and 2020

In thousand of New Taiwan Dollars.

Code 1100 1110 1150 1170 1180 1200 1210 130X 1470 11XX 1510 1535 1550 1600 1755 1780 1840 1990 15XX 1XXX Code 2100 2170 2180 2200 2220 2230 2250 2280 2320 2399 21XX 2530 2540 2570 2580 2640 2670 25XX 2XXX 3110 3130 3100 3200 3310 3320 3350 3300 3410 3420 3400 3XXX	Asset Current asset Cash (notes 4 and 6) Current financial assets at fair value through profit or loss (notes 4, 7 and 18) Notes receivable, net (notes 4 and 10) Accounts receivable, net (notes 4, 5 and 10) Accounts receivable due from related parties, net (notes 4, 5, 10 and 31) Other receivables (notes 4 and 10) Other receivables due from related parties (notes 4, 10 and 31) Current inventories (notes 4, 5 and 11) Other current assets (note 16) Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current (notes 4 and 7) Financial assets at amortized cost - non-current (notes 4 and 9) Investment under the equity method (note 4 and 12) Property, plant and equipment (notes 4, 13, 17 and 32) Right-of-use assets (notes 4 and 14) Other intangible assets, net (notes 4 and 15) Deferred tax assets (notes 4 and 26) Other non-current assets, others (note 10 and 16) Total non-current assets Total assets Liabilities and equity Current liabilities Current borrowings (note 17) Accounts payable (note 19) Accounts payable to related parties (notes 19 and 31) Other payables (note 20) Other payables to related parties (note 31) Current tax liabilities (notes 4 and 26) Current provisions (notes 4 and 21) Current lease liabilities (notes 4 and 14) Long-term borrowings and corporate bonds payable -current portion (notes 13, 17, 18 and 32) Other current liabilities, others (note 20) Total current liabilities Non-current liabilities Corporate bonds payable (note 4 and 18) Non-current portion of non-current borrowings (notes 13, 17 and 32) Deferred tax liabilities (notes 4 and 26) Non-current lease liabilities (notes 4 and 14) Net defined benefit liability, non-current (notes 4 and 22) Other non-current liabilities, others (note 20) Total non-current liabilities Total liabilities Equity (notes 4, 8, 18, 22, 23 and 26) Share capital Common stock Certificates of rights to exchange bonds for shares Total Share Capital Capital from retained earnings Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity interest Foreign operating institute Translation of financial statements Exchange differences Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income Total other equity interest Total equity Total liabilities and equity		December 31,2021 Amount % $ 220,851 9 180 - 19,959 1 214,280 8 82,382 3 11,271 - 55,935 2 192,170 7 25,172 1 822,200 31 7,237 - 7,797 - 1,196,057 46 488,387 19 4,275 - 8,247 - 38,161 2 47,103 2 1,797,264 69 $ 2,619,464 100 $ 474,664 18 185,362 7 21,293 1 88,485 3 67 - 5,016 - 1,058 - 1,568 - 93,796 4 17,601 1 888,910 34 193,050 7 223,773 9 72,311 3 2,412 - 37,886 1 161 - 529,593 20 1,418,503 54 979,327 37 150 - 979,477 37 58,677 2 132,500 5 110,779 4 38,176 2 281,455 11 106,062 ) ( 4 ) 12,586) - 118,648) ( 4) 1,200,961 46 $ 2,619,464 100		December 31,2020	December 31,2020
			Amount $ 220,851 180 19,959 214,280 82,382 11,271 55,935 192,170 25,172 822,200 7,237 7,797 1,196,057 488,387 4,275 8,247 38,161 47,103 1,797,264 $ 2,619,464 $ 474,664 185,362 21,293 88,485 67 5,016 1,058 1,568 93,796 17,601 888,910 193,050 223,773 72,311 2,412 37,886 161 529,593 1,418,503 979,327 150 979,477 58,677 132,500 110,779 38,176 281,455 106,062 ) 12,586) 118,648) 1,200,961 $ 2,619,464		Amount $ 162,199 560 18,402 153,514 95,924 19,552 25,189 145,747 18,855 639,942 - 76 1,256,185 496,302 1,433 7,570 34,147 6,852 1,802,565 $ 2,442,507 $ 293,000 142,454 17,293 94,917 - - 1,046 739 110,851 12,972 673,272 261,082 244,602 79,806 301 42,491 186 628,468 1,301,740 893,857 12,143 906,000 48,570 125,834 95,226 75,916 296,976 98,193 ) 12,586) 110,779) 1,140,767 $ 2,442,507	%
		( ( (		( ( (		6 - 1 6 4 1 1 6 1 26 - - 52 20 - - 2 - 74 100 12 6 1 4 - - - - 4 - 27 11 10 3 - 2 - 26 53 37 - 37 2 5 4 3 12 ( 4 ) - ( 4) 47 100

The accompanying notes are an integral part of the individual financial statements. (please refer to the audit report of Deloitte & Touche Taiwan dated March 31, 2022)

Chairman: Hsiang-Chih Hsiao

President: Hsiang-Chih Hsiao

Accounting Manager: Chi-Wen Gao

Tex Year Industries Inc.

Individual Statement of Comprehensive Income January 1 to December 31, 2021 and 2020

In thousand of New Taiwan Dollars, Except earnings per share.

Code Operating revenue (notes 4, 24 and 31) 4110 Total operating income 4170 Less: sales return 4190 Less: sales discount 4000 Net operating income Operating costs (notes 4, 5, 11, 21, 22, 25 and 31) 5110 Total cost of sales 5900 Gross profit from operations 5910 Realized (unrealized) gains from subsidiaries and joint ventures (note 4) 5950 Gross profit from operations Operating expenses (notes 4, 5, 10, 15, 22, 25 and 31) 6100 Marketing expenses 6200 Administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Net operating income (loss)	2021		% 100 - - 100 83 17 - 17 9 4 4 17 -	2020
	Amount $ 1,567,115 ( 1,658 ) ( 724) 1,564,733 1,294,484 270,249 ( 5,949) 264,300 138,968 69,451 54,880 263,299 1,001			Amount $ 1,253,450 ( 1,649 ) ( 725) 1,251,076 988,901 262,175 559 262,734 124,446 74,946 79,009 278,401 ( 15,667)		%
					(	100 - - 100 79 21 - 21 10 6 6 22 1)

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Code Non-operating income and expenses 7060 Share of profit of associates and joint ventures accounted for using equity method, net (notes 4 and 12) 7100 Interest income (notes 4 and 25) 7010 Other income (notes 4, 25, 28 and 31) 7020 Other gains and losses, net (notes 4 and 25) 7510 Finance costs (notes 4, 17, 18 and 25) 7590 Miscellaneous disbursements 7630 Foreign exchange losses (note 4 and 34) 7000 Total non-operating income and expenses 7900 Net profit before tax 7950 Income tax expense (notes 4 and 26) 8200 Net profit of the current period Other comprehensive income (notes 4, 8, 12, 22 and 26) Components of other comprehensive income that will not be reclassified to profit or loss	2021	% 2 - 1 - ( 1 ) - - 2 2 - 2	2020
	Amount $ 32,199 1,416 18,446 1,964 ( 10,727 ) ( 3,507 ) ( 5,949) 33,842 34,843 5,966 28,877		Amount $ 84,170 896 31,838 532 ( 12,729 ) ( 3,572 ) ( 8,721) 92,414 76,747 7,007 69,740	%
				7 - 2 - ( 1 ) - ( 1) 7 6 - 6

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Code 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8361 Foreign operating institute Translation of financial statements Exchange differences (Continue)		2021

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Code 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss 8360 8300 Total other comprehensive income 8500 Total comprehensive income Earnings per Share (note 27) 9710 Basic 9810 Dilute	2021		% - - 1) 1) 1	2020
	Amount ( 892 ) 1,967 ( 7,869) ( 6,946) $ 21,931 $ 0.30 $ 0.28			Amount ( 2,347 ) 2,992 ( 11,967) ( 18,632) $ 51,108 $ 0.74 $ 0.65		%
		( (			( (	- - 1) 2) 4

The accompanying notes are an integral part of the individual financial statements. (please refer to the audit report of Deloitte & Touche Taiwan dated March 31, 2022)

Chairman: Hsiang-Chih Hsiao

President: Accounting Manager: Hsiang-Chih Hsiao Chi-Wen Gao

Tex Year Industries Inc.

Individual Statement of Changes in Equity January 1 to December 31, 2021 and 2020

Share capital Common stock Certificates of rights to exchange bonds for shares (notes 4 and 23) (notes 4 and 18) $ 885,767 $ 1,027 - - - - - - 7,063 12,143 1,027 ( 1,027 ) - - - - - - 893,857 12,143 - - - - 45,321 - 28,006 150 12,143 ( 12,143 ) - - - - - - $ 979,327 $ 150	Share capital Common stock Certificates of rights to exchange bonds for shares (notes 4 and 23) (notes 4 and 18) $ 885,767 $ 1,027 - - - - - - 7,063 12,143 1,027 ( 1,027 ) - - - - - - 893,857 12,143 - - - - 45,321 - 28,006 150 12,143 ( 12,143 ) - - - - - - $ 979,327 $ 150	Capital from retained earnings (notes 4 and 18 and 23) $ 68,494 - - ( 26,753 ) 6,829 - - - - 48,570 - - - 10,107 - - - - $ 58,677	Retained earnings(notes 4,8,18,22,23 and 26) Legal reserve Special reserve Undistributed earnings $ 121,416 $ 54,831 $ 54,068 4,418 - ( 4,418 ) - 40,395 ( 40,395 ) - - - - - - - - - - - 69,740 - - ( 3,079) - - 66,661 125,834 95,226 75,916 6,666 - ( 6,666 ) - 15,553 ( 15,553 ) - - ( 45,321 ) - - - - - - - - 28,877 - - 923 - - 29,800 $ 132,500 $ 110,779 $ 38,176	Retained earnings(notes 4,8,18,22,23 and 26) Legal reserve Special reserve Undistributed earnings $ 121,416 $ 54,831 $ 54,068 4,418 - ( 4,418 ) - 40,395 ( 40,395 ) - - - - - - - - - - - 69,740 - - ( 3,079) - - 66,661 125,834 95,226 75,916 6,666 - ( 6,666 ) - 15,553 ( 15,553 ) - - ( 45,321 ) - - - - - - - - 28,877 - - 923 - - 29,800 $ 132,500 $ 110,779 $ 38,176	Retained earnings(notes 4,8,18,22,23 and 26) Legal reserve Special reserve Undistributed earnings $ 121,416 $ 54,831 $ 54,068 4,418 - ( 4,418 ) - 40,395 ( 40,395 ) - - - - - - - - - - - 69,740 - - ( 3,079) - - 66,661 125,834 95,226 75,916 6,666 - ( 6,666 ) - 15,553 ( 15,553 ) - - ( 45,321 ) - - - - - - - - 28,877 - - 923 - - 29,800 $ 132,500 $ 110,779 $ 38,176	Other equityitems	In thousand of New Taiwan Dollars. (notes 4,8 and 26) Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income Total equity ( $ 9,000 ) $ 1,090,377 - - - - - ( 26,753 ) - 26,035 - - - 69,740 ( 3,586) ( 18,632) ( 3,586) 51,108 ( 12,586 ) 1,140,767 - - - - - - - 38,263 - - - 28,877 - ( 6,946) - 21,931 ($ 12,586) $ 1,200,961
						Foreign operating institute Translation of financial statements Exchange differences ( $ 86,226 ) - - - - - - ( 11,967) ( 11,967) ( 98,193 ) - - - - - - ( 7,869) ( 7,869) ($ 106,062)
Common stock (notes 4 and 23) $ 885,767 - - - 7,063 1,027 - - - 893,857 - - 45,321 28,006 12,143 - - - $ 979,327
			Legal reserve $ 121,416 4,418 - - - - - - - 125,834 6,666 - - - - - - - $ 132,500	Special reserve $ 54,831 - 40,395 - - - - - - 95,226 - 15,553 - - - - - - $ 110,779
	( (	(			( ( ( ( ( (	( ( ( ( ( ( (	( ( ( ( (

The accompanying notes are an integral part of the individual financial statements. (please refer to the audit report of Deloitte & Touche Taiwan dated March 31, 2022)

Chairman: Hsiang-Chih Hsiao

President: Hsiang-Chih Hsiao

Accounting Manager: Chi-Wen Gao

Tex Year Industries Inc. Individual Cash Flow Statement

January 1 to December 31, 2021 and 2020

In thousand of New Taiwan Dollars.

Code Cash flow from business activities A00010 Net profit before tax A20010 Adjustments to reconcile profit (loss) A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit impairment loss A20400 Net loss on financial assets and liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A22300 Share of loss (profit) of associates and joint ventures accounted for using equity method A22500 Losses (gains) on disposals of property, plant and equipment A23800 Losses (gains) on Loss on inventory valuation loss and sluggish inventory A23900 Unrealized (realized) gains from subsidiaries and joint ventures A24100 Unrealized foreign exchange loss (gain) A29900 Provision for (reversal of) liabilities A30000 Changes in operating assets and liabilities A31115 Financial assets at fair value through profit or loss, mandatorily measured at fair value A31130 Notes receivable A31150 Accounts receivable A31160 Accounts receivable - related parties (Continue)	2021 $ 34,843 35,038 2,404 ( 1,586 ) ( 1,934 ) 10,727 ( 1,416 ) ( 32,199 ) ( 30 ) ( 1,201 ) 5,949 1,748 12 77 ( 1,557 ) ( 60,682 ) 13,029	2020
		$ 76,747 31,560 2,415 7,721 ( 560 ) 12,729 ( 896 ) ( 84,170 ) 28 2,516 ( 559 ) 2,508 ( 620 ) - ( 654 ) ( 677 ) ( 1,615 )

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Code A31180 Other receivable A31190 Other receivables - related party A31200 Inventories A31240 Other current assets A32150 Accounts payable A32160 Accounts payable - related parties A32180 Other payable A32190 Other payable to related parties A32230 Decrease in other current liabilities A32240 Net defined benefit liability – non-current A33000 Cash inflow generated from operations (applications) A33100 Interest received A33300 Interest paid A33500 Income taxes refunded (paid) AAAA Net cash inflow (outflow) from operating activities Cash flows from (used in) investing activities B00040 Acquisition of financial assets at amortised cost B00050 Proceeds from disposal of financial assets at amortised cost B00100 Acquisition of financial assets at fair value through profit or loss B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Decrease (increase) in refundable deposits B04500 Acquisition of intangible assets B06700 Increase in other non-current assets B07100 Increase in prepayments for business facilities	2021 8,281 ( 30,879 ) ( 45,115 ) ( 6,317 ) 43,168 4,140 ( 10,135 ) $ 67 4,629 ( 3,452) ( 32,391 ) 1,416 ( 8,176 ) ( 10,722) ( 49,873) ( 7,721 ) - ( 5,000 ) ( 15,440 ) 30 174 ( 2,810 ) - ( 45,823 )	2020
		( 10,840 ) 14,991 17,006 ( 8,326 ) 2,568 8,135 17,027 ( $ 72 ) ( 11,247 ) ( 2,324) 73,391 943 ( 8,259 ) 2,622 68,697 - 19,924 - ( 40,300 ) - ( 1,700 ) ( 4,051 ) ( 469 ) ( 3,509 )

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Code
B07600
Dividends received
BBBB
Net cash flows from (used in)
investing activities
Cash flows from (used in) financing
activities
C00100
Increase in short-term loans
C01600
Proceeds from long-term debt
C01700
Repayments of long-term debt
C04020
Payments of lease liabilities
C04400
Decrease in other non-current
liabilities
C04500
Cash dividends paid
CCCC
Net cash inflow (outflow)
from financing activities
EEEE
Net increase in cash
E00100 Cash at beginning of period
E00200 Cash at end of period

The accompanying notes are an integral part of the individual financial statements. (please refer to the audit report of Deloitte & Touche Taiwan dated March 31, 2022)

Chairman: President: Hsiang-Chih Hsiao Hsiang-Chih Hsiao

Accounting Manager: Chi-Wen Gao

Tex Year Industries Inc.

Notes to Individual Financial Statements

January 1 to December 31, 2021 and 2020

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. Company History and Business Scope

Tex Year Industries Inc. (hereinafter referred to as the “Company”) was established on June 28, 1976 with the approval of the Ministry of Economic Affairs. The main business items are the manufacturing and trading of glues, adhesives, hot-melt glues and medical equipment.

The Company’s shares were listed and traded on the Taipei Exchange (OTC) Securities Market of the Republic of China on March 16, 2001, and delisted on the Taipei Exchange (OTC) Securities Market on June 24, 2015 and listed and traded on the Taiwan Stock Exchange on the same day.

The individual financial statements are expressed in NT$, the functional currency of the Company.

Date and Procedure of Adoption of Financial Statements

The individual financial statements were approved and issued by the board meeting on March 29, 2022.

3. Application of New and Revised Standards and Interpretations

(1) The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC) and Interpretations (SIC) (hereinafter referred to as “IFRSs”) recognized and issued by the Financial Supervisory Commission (hereinafter referred to as the “FSC”) are applied for the first time.

The application of the revised IFRSs approved and issued by the FSC will not result in significant changes in the accounting policies of the Company.

(2) Applicable IFRSs approved by the FSC in 2022

New/amended/revised criteria and

Effective date of IASB release

interpretation "Annual Improvement of IFRSs 2018~2020 Cycle"

January 1, 2022 (Note 1)

Amendment to IFRS 3 "Update of the Index of Conceptual Framework"

January 1, 2022 (Note 2) January 1, 2022 (Note 3)

Amendments to IAS 16, “Property, Plant and January 1, 2022 (Note 3) Equipment: Proceeds before Intended Use” Amendments to IAS 37, “Onerous Contracts — January 1, 2022 (Note 4) Cost of Fulfilling a Contract”

Note 1: The amendments to IFRS 9 are applicable to exchanges related to financial liabilities and modifications in terms/conditions incurring during annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applicable to fair value measurement incurring during annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoption of International Financial Reporting Standards (IFRSs)” are applicable retroactively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations of which the acquisition date falls in annual reporting periods beginning on or after January 1, 2022.
Note 3: The amendments are applicable to such plant, property and equipment of which the location and condition is capable of operating in a manner required necessarily by the management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which no obligations have been fulfilled until January 1, 2022.

As of the date of issuance of the individual financial report, the amendments to other standards and interpretations for the evaluation of the Company will not have a significant impact on the financial position and financial performance.

	financial performance.	financial performance.
(3)	IFRSs issued by IASB but not approved and effective by the FSC New/amended/revised criteria and interpretation Effective date of IASB release(note 1) Amendments to IFRS 10 and IAS 28 “Sale or investment of assets between investors and their affiliates or joint ventures” Undetermined IFRS 17 “Insurance contracts” January 01, 2023 Amendments to IFRS 17 January 01, 2023 Amendments to IFRS 17 "First Application of IFRS 17 and IFRS 9 - Comparative Information" January 01, 2023 Amendment to IAS 1 “Classification of liabilities as current or non-current” January 01, 2023 Amendments to IAS 1, “Property, Plant and Equipment: Proceeds before Intended Use” January 1, 2023 (Note 2) Amendments to IAS 8, “Definition of Accounting Estimates” January 1, 2023 (Note 3) Amendments to IAS 12 "Deferred Income Tax Related to Assets and Liabilities Arising from a Single Transaction” January 1, 2023 (Note 4)
		Undetermined January 01, 2023 January 01, 2023 January 01, 2023 January 01, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

Note 1: Unless otherwise noted, the above-mentioned new/ amended/ revised standards or interpretations shall come into effect during the annual reporting period starting after that date.
Note 2: The application of this amendment is deferred for annual reporting periods beginning after January 1, 2023.
Note 3: This amendment applies to changes in accounting estimates and changes in accounting policies that occur in annual reporting periods beginning after January 1, 2023.
Note 4: Except for the recognition of deferred income tax on temporary differences between lease and decommissioning obligations on January 1, 2022, the amendment applies to transactions that occur after January 1, 2022.

The Company continues to evaluate the impact of other standards and amendments to the interpretation on the financial status and financial performance as of the date of approval and publication of the individual financial statements, and the relevant impact shall be disclosed when the evaluation is completed.

4. Summary of Significant Accounting Policies

(1) Declaration of Compliance

The individual financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs approved and issued by the FSC.

(2) Basis of Preparation

In addition to financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligations less the fair value of planned assets, the individual financial statements are prepared based on historical cost.

Fair value measurement is divided into levels 1 to 3 according to the observability and importance of relevant input values:

Level 1 input value: refers to the quoted price (unadjusted) of the same assets or liabilities available in the active market on the measurement date.
Level 2 input value: refers to the directly (i.e. price) or indirectly (i.e. derived from price) observable input value of assets or liabilities other than the quotation of level 1.
Level 3 input value: refers to the unobservable input value of assets or liabilities.

The Company uses the equity method to account for its investment in subsidiaries or joint ventures in preparing its individual financial statements. In order to make the profit or loss for the year, other comprehensive income and equity in the individual financial statements the same as the profit or loss for the year, other comprehensive income and equity attributable to the owners of the Company in the consolidated financial statements, certain accounting differences between the individual basis and the consolidated basis are adjusted for "investments accounted for using the equity method", "share of profit or loss of subsidiaries and joint ventures accounted for using the equity method", "share of other comprehensive income of subsidiaries and joint ventures accounted for using the equity method" and related equity items. The "share of profit or loss of subsidiaries and joint ventures using the equity method" and the related equity items.

(3) Criteria for distinguishing between current and non-current assets and liabilities

Current assets include:

Assets held primarily for trading purposes.
Assets expected to be realized within 12 months of the balance sheet date; and
Cash (other than those restricted from being exchanged or settled more than 12 months after the balance sheet date). Current liabilities include:
Liabilities held primarily for trading purposes.
Liabilities due for settlement within 12 months of the balance sheet date, and
Liabilities that cannot be unconditionally deferred until at least 12 months after the balance sheet date.

Current assets or liabilities that are not classified as current assets or liabilities are classified as non-current assets or non-current liabilities.

(4) Foreign Currency

When preparing the individual financial statements, each individual is recorded in a currency other than the individual's functional currency (foreign currency) and is translated into the functional currency based on the exchange rate on the transaction date.

Monetary items denominated in foreign currencies are translated at the closing rate at each balance sheet date. Exchange differences arising from the settlement of monetary items or the translation of monetary items are recognized in profit or loss in the period in which they occur.

Non-monetary items denominated in foreign currencies that are measured at historical cost are translated at the exchange rates prevailing on the dates of transactions and are not retranslated.

For the purpose of preparing individual financial statements, the assets and liabilities of the Company and its foreign operations (including subsidiaries or joint ventures that operate in countries or currencies different from those of the Company) are translated into New Taiwan Dollars at the exchange rates prevailing on each balance sheet date. Income and expense items are translated at average exchange rates for the period, with the resulting exchange differences recorded in other comprehensive income. (5) Inventory

Inventory includes raw materials, supplies, finished goods and work-in-process. Inventories are measured at the lower of cost or net realizable value. Comparisons between cost and net realizable value are made on an item-by-item basis, except for inventories of the same type. The net realizable value is the estimated selling price under normal circumstances less the estimated costs still to be invested to completion and the estimated costs required to complete the sale. The cost of inventories is calculated using the weighted-average method.

(6) Invested subsidiaries

The Company uses the equity method to account for its investment in subsidiaries.

A subsidiary is an entity over which the Company has control.

Under the equity method, investments are initially recognized at cost, and the carrying amount is increased or decreased as the company’s share of the subsidiaries and other comprehensive income or loss and profit is distributed. In addition, changes in the Company’s other interests in subsidiaries are recognized in proportion to the Company’s shareholding.

Where the change of ownership rights of the subsidiaries of the Company does not result in a loss of control, it shall be treated as an equity transaction. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that are in substance a component of the Company’s net investment in the subsidiary), the Company continues to recognize losses in proportion to its equity in the subsidiary.

The excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business at the acquisition date is recorded as goodwill, which is included in the carrying amount of the investment and is not amortized; the excess of the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business at the acquisition date over the acquisition cost is recorded as current income.

The Company assesses impairment by considering the cash-generating units as a whole and comparing their recoverable amounts with their carrying amounts in the financial statements. If the recoverable amount of an asset subsequently increases, the reversal of the impairment loss is recognized as a gain, provided that the carrying amount of the asset after the reversal of the impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset, less amortization. Impairment losses attributable to goodwill are not reversed in subsequent periods.

When control over a subsidiary is lost, the Company measures its remaining investment in the former subsidiary at fair value at the date of loss of control. The difference between the fair value of the remaining investment and the carrying amount of the investment at the date of loss of control, if any, is recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income or loss related to the subsidiary are accounted for on the same basis as if the Company had directly disposed of the related assets or liabilities.

Unrealized gains or losses on downstream transactions with subsidiaries are eliminated in the individual financial statements. Gains or losses resulting from counter-current and side-stream transactions with subsidiaries are recognized in the individual financial statements only to the extent that they are not related to the Company’s interest in the subsidiary. (7) Joint ventures

A joint venture is a joint agreement between the Company and another company with joint control and rights to the net assets.

The Company applies the equity method to investment joint ventures.

Under the equity method, investments in joint ventures are initially recognized at cost, and the carrying amount is increased or decreased as the Company's share of the joint ventures and other comprehensive income or loss and profit is distributed. In addition, changes in the Company’s equity interest are recognized in proportion to the Company’s shareholding.

The excess of the acquisition cost over the Company's share of the net fair value of the identifiable assets and liabilities is recorded as goodwill, which is included in the carrying amount of the investment and is not amortized; the excess of the Company's share of the net fair value of the identifiable assets and liabilities over the acquisition cost is recorded as profit or loss for the period.

If the Company does not subscribe for new shares in proportion to its shareholding in a joint venture, resulting in a change in its shareholding and a resulting increase or decrease in the net equity of the investment, the increase or decrease is adjusted to capital surplus - change in net equity of the joint venture recognized under the equity method and the investment accounted for under the equity method. However, if the ownership interest in a joint venture is reduced as a result of not subscribing or acquiring shares in proportion to the ownership interest, the amount recognized in other comprehensive income or loss related to the joint venture is reclassified in proportion to the reduction, and the accounting treatment is based on the same basis as that required for a direct disposal of the related assets or liabilities. The difference is debited to retained earnings.

The recognition of further losses ceases when the Company's share of losses in a joint venture equals or exceeds its interest in the joint venture (including the carrying amount of the investment in the joint venture under the equity method and other long-term interests that are in substance a component of the Company's net investment in the joint venture). The Company recognizes additional losses and liabilities only to the extent that legal obligations, constructive obligations or payments made on behalf of the Consolidated Company are incurred.

In assessing impairment, the Company treats the entire carrying amount of an investment (including goodwill) as a single asset for the purpose of impairment testing by comparing the recoverable amount with the carrying amount. Any reversal of the impairment loss is recognized to the extent of the subsequent increase in the recoverable amount of the investment.

When the Company ceases to adopt the equity method from the date its investment ceases to be a joint venture, its retained interest in the original joint venture is measured at fair value, and the difference between such fair value and the disposal price and the carrying amount of the investment on the date it ceases to adopt the equity method is recognized in profit or loss for the current period. In addition, all amounts recognized in other comprehensive income or loss related to the joint venture are accounted for on the same basis as would be required if the joint venture were directly

disposed of as a related asset or liability. If an investment in a joint venture becomes an investment in an affiliate, the Company continues to use the equity method without remeasuring the retained interest.

Gains or losses resulting from counter-current, downstream and side-stream transactions between the Company and the joint venture are recognized in the individual financial statements only to the extent that they are not related to the Company's interest in the joint venture.

(8) Property, plant and equipment

Property, plant and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant and equipment under construction are recognized at cost less accumulated impairment losses. Costs include fees for professional services and borrowing costs that qualify for capitalization. Upon completion and attainment of their intended use, these assets are classified into the appropriate categories of property, plant and equipment and depreciation is commenced.

Except for land owned by the Company, which is not depreciated, property, plant and equipment are depreciated separately over their useful lives on a straight-line basis for each significant component. The Company reviews the estimated useful lives, residual values and depreciation methods at least at the end of each year and defers the effect of changes in applicable accounting estimates.

When property, plant and equipment are derecognized, the difference between the net disposal price and the carrying amount of the assets is recognized in profit or loss.

(9) Intangible assets

1. Single acquisition

Individually acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews the estimated useful lives, residual values and amortization methods at least at each year-end and defers the effect of changes in applicable accounting estimates.

2. Derecognition

When property, plant and equipment are derecognized, the difference between the net disposal price and the carrying amount of the assets is recognized in profit or loss.

(10) Impairment loss of property, plant and equipment, right-of-use assets and intangible assets

The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets and intangible assets may have been impaired. If any indication of impairment exists, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (net of amortization or depreciation) that would have been determined if the impairment loss had not been recognized in prior years for that asset or cash-generating unit. Reversal of impairment loss is recognized in profit or loss.

(11) Financial Instruments

Financial assets and financial liabilities are recognized in the individual balance sheet when the Company becomes a party to the contractual provisions of the instrument.

When financial assets and financial liabilities are recognized at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

Regular transactions of financial assets are recognized and derecognized using trade date accounting.

(1) Type of measurements

The types of financial assets held by the Company are financial assets at fair value through profit or loss, financial assets at amortized cost, and investments in equity instruments at fair value through other comprehensive income.

A. Financial assets measure at fair value through income statement

Financial assets at fair value through profit or loss are mandatory financial assets measured at fair value through profit or loss. Financial assets that are mandatorily measured at fair value through profit or loss include investments in equity instruments not designated by the Company as measured at fair value through other comprehensive income or loss, and derivatives and fund beneficiary certificates that do not qualify for classification as measured at amortized cost or at fair value through other comprehensive income or loss.

Financial assets carried at fair value through profit or loss are measured at fair value. Dividends and interest generated are recognized in other income and interest income, respectively, and gains or losses arising from remeasurement are recognized in other gains and losses. For the determination of fair value, please refer to note 30.

B. Financial assets measured at cost after amortization

The Company's investment financial assets are classified as financial assets carried at amortized cost if both of the following two conditions are met.

a. is held under an operating model in which financial assets are held for the purpose of receiving contractual cash flows; and
b. The terms of the contract generate cash flows on specific dates that are solely for the payment of principal and interest on the outstanding principal amount.

Financial assets carried at amortized cost (including cash and cash, accounts receivable and other receivables carried at amortized cost) are measured at amortized cost using the effective interest method to determine the total carrying amount less any impairment loss after initial recognition, with any foreign currency exchange gain or loss recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial assets, except for the following two cases.

a. Interest income on credit-impaired financial assets acquired or created is calculated by multiplying the credit-adjusted

effective interest rate by the amortized cost of the financial assets.

b. For financial assets that are not acquired or impaired but subsequently become impaired, interest income should be computed by multiplying the effective interest rate by the amortized cost of the financial assets from the next reporting period after the impairment is applied.

Credit-impaired financial assets are those for which the issuer or the debtor has experienced significant financial difficulties, defaulted, or where it is probable that the debtor will declare bankruptcy or other financial reorganization, or where an active market for the financial assets has disappeared due to financial difficulties.

C. Investments in equity instruments measured at fair value through other comprehensive income

At initial recognition, the Company has an irrevocable option to designate investments in equity instruments that are not held for trading and for which contingent consideration is recognized by the acquirer of the non-business combination to be measured at fair value through other comprehensive income.

Investments in equity instruments measured at fair value through other comprehensive income are measured at fair value, with subsequent changes in fair value reported in other comprehensive income and accumulated in other equity. Upon disposal of investments, the accumulated gains and losses are transferred directly to retained earnings and are not reclassified to profit or loss.

Dividends from investments in equity instruments measured at fair value through other comprehensive income or loss are recognized in profit or loss when the rights to receive payments from the Company are established, unless the dividends clearly represent a partial recovery of the cost of the investment.

(2) Impairment on financial assets

The Company assesses impairment losses on financial assets (including accounts receivable) measured at amortized cost based on expected credit losses at each balance sheet date.

Accounts receivable are recognized as an allowance for loss based on the expected credit loss over the period of survival.

Other financial assets are first evaluated to determine whether there is a significant increase in credit risk since initial recognition. If there is no significant increase, an allowance for loss is recognized based on the expected credit loss over 12 months, and if there is a significant increase, an allowance for loss is recognized based on the expected credit loss over the remaining period.

Expected credit loss is a weighted average credit loss weighted by the risk of default. The 12-month expected credit loss represents the expected credit loss arising from possible defaults within 12 months after the reporting date of the financial instrument, and the ongoing expected credit loss represents the expected credit loss arising from all possible defaults during the expected life of the financial instrument.

For internal credit risk management purposes, the Company determines, without regard to the collateral held, that a default on a financial asset has occurred in the following circumstances.

A. There is internal or external information that indicates that the debtor is unlikely to be able to pay its debts.
B. If more than 60 days past due, unless there is reasonable and supportable information indicating that the basis for delayed default is more appropriate.

All impairment losses on financial assets are reversed by reducing the carrying amount through an allowance account.

(3) Derecognition on financial assets

The Company derecognizes financial assets only when the contractual rights to the cash flows from the financial assets lapse or when the financial assets have been transferred and substantially all the risks and rewards of ownership of the assets have been transferred to other enterprises.

The difference between the carrying amount of the financial asset and the consideration received is recognized in profit or loss when the financial asset is derecognized as a whole at amortized cost. When investments in equity instruments measured at fair value through other comprehensive income are derecognized as a whole, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

2. Equity instrument

Debt and equity instruments issued by the Company are classified as financial liabilities or equity based on the substance of the

contractual agreements and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the Company are recognized at the acquisition price less direct issue costs.

The recapture of the Company's own equity instruments is recognized and deducted under equity. The purchase, sale, issuance or cancellation of the Company's own equity instruments is not recognized in profit or loss.

Financial liabilities
(1) Subsequent measurements

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

(2) Derecognition on financial assets

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

Convertible corporate bonds

The convertible bonds issued by the Company are classified as financial liabilities and equity in accordance with the substance of the contractual agreements and the definitions of financial liabilities and equity instruments, respectively, at the time of initial recognition.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument and is measured at amortized cost using the effective interest method until the date of conversion or maturity. The components of liabilities that are embedded in non-equity derivatives are measured at fair value.

The conversion right classified as equity is equal to the remaining amount of the fair value of the compound instrument as a whole less the fair value of the separately determined liability component, which is recognized in equity net of the income tax effect and is not subsequently measured. When the conversion right is exercised, the related liability component and the amount in equity will be transferred to equity and capital surplus - issue premium. If the conversion rights of convertible bonds are not exercised on the maturity date, the amount recognized in equity will be transferred to capital surplus - issue premium.

Transaction costs related to the issuance of convertible bonds are allocated to the liability (included in the carrying amount of the liability) and the equity component (included in equity) of the instrument in proportion to the total apportioned price.

Derivatives

The derivative instruments entered into by the Company are the sale/redemption rights of convertible bonds.

Derivatives are initially recognized at fair value upon entering into derivative contracts and subsequently remeasured at fair value at the balance sheet date, with gains or losses arising from subsequent measurements recognized directly in profit or loss. When the fair value of a derivative is positive, it is classified as a financial asset; when the fair value is negative, it is classified as a financial liability.

Derivatives that are embedded in asset master contracts within the scope of IFRS 9, "Financial Instruments", are used as a whole to determine the classification of financial assets. A derivative is considered to be a separate derivative if it is embedded in a master contract of an asset that is not within the scope of IFRS 9 (e.g., embedded in a master contract of a financial liability) and the embedded derivative meets the definition of a derivative, the risks and characteristics of which are not closely related to those of the master contract and the hybrid contract is not measured at fair value through profit or loss.

(12) Provision for liabilities

The amount recognized as provision for liabilities is the best estimate of the expense required to settle the obligation at the balance sheet date, taking into account the risk and uncertainty of the obligation. The provision for liabilities is measured as the discounted value of estimated cash flows to settle the obligation.

The warranty obligation to conform to the agreed-upon specifications is based on management's best estimate of the expenses required to settle the Company's obligations and is recognized as revenue from the related merchandise.

(13) Income recognition

The Company allocates the transaction price to each performance obligation after the performance obligation is identified in the customer contract and recognizes revenue when each performance obligation is satisfied.

Revenue from merchandise sales is mainly derived from sales of hot melt adhesive products. The Company recognizes revenue and accounts receivable at the time of delivery of hot melt adhesive products to the customer's designated location/shipment, when the customer has the right to set the price and use the products and has the primary responsibility for re-selling the products and bears the risk of obsolescence.

(14)

Therefore, no revenue is recognized when the product is removed. Lease

The Company assesses whether a contract is (or contains) a lease at the contract inception date.

The Company as lessee

Right-of-use assets and lease liabilities are recognized at the lease commencement date for all leases, except for leases of low-value underlying assets to which the recognition exemption applies and short-term leases, where lease payments are recognized as expenses on a straight-line basis over the lease term.

The right-of-use asset is measured initially at cost (consisting of the original measurement amount of the lease liability, lease payments made prior to the commencement date of the lease less lease incentives received, original direct cost and estimated cost of restoration of the subject asset) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, and the remeasurement of the lease liability is adjusted. Right-of-use assets are presented separately in the consolidated balance sheet.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the useful life or the end of the lease term.

Lease liabilities are measured initially at the present value of lease payments, primarily fixed payments. Lease payments are discounted using the interest rate implied by the lease if it is readily recognizable. If the rate is not readily identifiable, the lessee's incremental borrowing rate is used.

Subsequently, the lease liabilities are measured at amortized cost basis using the effective interest method and interest expense is allocated over the lease term. If there is a change in future lease payments due to changes in the lease period or rates, the Company remeasures the lease liability and adjusts the right-of-use asset accordingly. However, if the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately in the individual balance sheet.

(15) Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that meets the criteria are included as part of the cost of the asset until substantially all of the activities necessary to bring the asset to its intended use or sale condition have been completed.

(16)

Except for the above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred. Government subsidy

Government grants are recognized only when there is reasonable assurance that the Company will comply with the conditions attached to the government grant and that the grant will be received.

Government grants related to revenues are recognized as a reduction of related costs/other income on a systematic basis in the period in which the related costs for which they are intended to be reimbursed are recognized as expenses by the Company. Government grants conditioned on the acquisition, construction or other acquisition of non-current assets by the Company are recognized as deferred revenue and are transferred to profit or loss on a reasonable and systematic basis over the useful lives of the related assets.

Government grants are recognized in profit or loss in the period in which they become receivable if they are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Company and have no future related costs.

(17) Employee benefits

Short-term employee benefits

Short-term employee benefit-related liabilities are measured at the non-discounted amount expected to be paid in exchange for employee services.

Post-employment benefits

The defined contribution pension plan is an expense that recognizes the amount of pension benefits to be contributed during the employees' service period.

The defined benefit cost (including service cost, net interest and remeasurement) of the defined benefit pension plan is actuarially determined using the projected unit benefit method. Service cost and net interest on net defined benefit liabilities (assets) are recognized as employee benefit expense as incurred. Remeasurements (including actuarial gains and losses and return on plan assets, net of interest) are recognized in other comprehensive income as incurred and included in

retained earnings, and are not reclassified to profit or loss in subsequent periods.

The net defined benefit obligation represents the deficit in the defined benefit pension plan.

(18) Income tax

Income tax expense is the sum of current income tax and deferred income tax.

Income tax of the current period

The Company determines the current income (loss) in accordance with the regulations of the Republic of China and calculates the income tax payable (recoverable) accordingly.

Income tax on undistributed earnings calculated in accordance with the ROC Income Tax Act is recognized in the year when the shareholders resolve to retain the earnings.

Adjustments to prior years' income tax payable are included in the current period's income tax.

Deferred income tax

Deferred income tax is computed on temporary differences between the carrying amounts of assets and liabilities and the tax basis of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, and deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which income tax credits can be utilized for temporary differences.

Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and joint agreements, except where the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable income will be available to allow the temporary differences to be realized and to the extent that a reversal is expected in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient tax assets will be available to allow recovery of all or part of the asset. Deferred income tax assets that have not been

recognized are reviewed at each balance sheet date and the carrying amount is increased to the extent that it is probable that future taxable income will be available to recover all or part of the asset.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the liability is settled or the asset is realized, which are based on tax rates and tax laws that have been legislated or substantively legislated at the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences of the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

Income tax of the current period and deferred income tax

Current and deferred income taxes are recognized in profit or loss, except for current and deferred income taxes related to items recognized in other comprehensive income or directly in equity, which are recognized in other comprehensive income or directly in equity, respectively.

Main Sources of Uncertainty in Significant Accounting Judgments, Estimates and Assumptions

In adopting accounting policies, the Company's management is required to make judgments, estimates and assumptions that are based on historical experience and other relevant factors when relevant information is not readily available from other sources. Actual results may differ from estimates.

The Company takes the recent development of COVID-19 in the country and the possible impact on the economic environment into the consideration of major accounting estimates such as cash flow estimates, growth rates, discount rates, profitability, etc. Management will review estimates and underlying assumptions on an ongoing basis. If a revision of an estimate affects only the current period, it is recognized in the period in which it is revised. If a revision of an accounting estimate affects both the current and future periods, it is recognized in the period in which it is revised and in the future period.

Main Sources of Uncertainty in Estimates and Assumptions

(1) Estimated impairment loss on accounts receivable

The estimated impairment loss on accounts receivable is based on the company's assumptions about default rates and expected loss rates. The Company considers historical experience, current market conditions and forward-looking information to make assumptions and select the input value for the impairment assessment. Please refer to Note 10 for the significant

assumptions and inputs used. If actual future cash flows fall short of expectations, a material impairment loss could be incurred.

(2) Impairment of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less estimated costs to complete and estimated costs to complete the sale, which are based on current market conditions and historical sales experience of similar products.

Cash

Cash
Cash on hand and working capital Bank checks and demand deposits	December 31, 2021 $ 615 220,236 $ 220,851	December 31, 2020
			$ 814 161,385 $ 162,199

The interest rate ranges of bank deposits on the balance sheet date are as follows:

follows:
Bank deposits	December 31, 2021 0.001%`～`0.2%	December 31, 2020
		0.01%`～`0.6%

Financial instruments measure at fair value through income statement

Financial assets-current Mandatory adoption of fair value through profit or loss measured at Derivatives (not for specified hedging) - Call and redemption rights of convertible corporate bonds (note 18) Financial liabilities–non-current Mandatory adoption of fair value through profit or loss measured at Non-derivative financial assets - Limited partnership funds	December 31, 2021 $ 180 $ 7,237	December 31, 2020 $ 560 $ -	December 31, 2020 $ 560 $ -
			$ 560 $ -

8. Financial assets measured at fair value through other comprehensive income Equity investments – non-current

The Company invests in the common shares of Acute Touch Technology Co., Ltd. for medium and long-term strategic purposes, and expects to make profits through long-term investment. In the opinion of the management of the Company, if the short-term fair value fluctuation of such investment is included in the income, it is not consistent with the aforesaid long-term investment plan, so they chose to designate such investment as measured at fair value through other comprehensive income.

Considering the operation and net equity value of Acute Touch Technology Co., Ltd, the Company may have a significant impairment in the recoverable amount of its relevant investment. After evaluation, the impairment loss of NT$3,586 thousand was recognized for 2020, and the book values as of December 31, 2021 and 2020 were zero, respectively.

9. Financial assets measured at cost after amortization

Non-current Restricted bank deposits	December 31, 2021 $ 7,797	December 31, 2020	December 31, 2020
			$ 76

The restricted bank deposits were foreign exchange deposits of the Company under the Management, Utilization, and Taxation of Repatriated Offshore Funds Act.

10. Notes receivable, accounts receivable and other receivables (including those of

related parties) Notes receivable Measured at cost after amortization Total book value Accounts receivable Measured at cost after amortization Total book value Less: provision for loss	December 31, 2021 $ 19,959 $ 228,824 ( 14,544) $ 214,280	December 31, 2020	December 31, 2020
	(	(	$ 18,402 $ 169,805 16,291) $ 153,514

Accounts receivable-related parties Measured at cost after amortization Total book value Other receivable Tax refund receivable Others Less: provision for loss Other receivables - related party	December 31, 2021 $ 82,382 $ 8,431 2,964 ( 124) $ 11,271 $ 55,935	December 31, 2020	December 31, 2020
	(		$ 95,924 $ 4,356 15,196 - $ 19,552 $ 25,189

(1) Accounts receivable

The average credit period of the Company for commodity sales is 60 days, and the accounts receivable are not subject to interest.

In order to reduce credit risk, the management of the Company has assigned a special team to be responsible for the decision of credit facilities, credit approval and other monitoring procedures to ensure that appropriate actions have been taken for the recovery of overdue receivables. In addition, the Company will review the recoverable amounts of the receivables one by one on the balance sheet date to ensure that appropriate impairment loss has been provided for the receivables that cannot be recovered. Therefore, the management of the consolidated company thinks that the credit risk of the Company has been significantly reduced.

The Company shall recognize the provision for loss of accounts receivable according to the expected credit loss during the period of existence. The expected credit loss during the existence period is calculated by the preparation matrix, which considers the past default records of customers and their current financial situation, the industrial economic situation, as well as the GDP forecast and industrial outlook. As the historical experience of credit loss of the Company shows that there is no significant difference in the loss pattern of different customer groups, the preparation matrix does not further distinguish customer groups, and only uses the overdue days of accounts receivable to determine the expected credit loss rate.

If there is evidence that the counterparty is facing serious financial difficulties and the Company cannot reasonably expect the recoverable amount, for example, if the transaction counterparty is in liquidation, the Company will directly write off the relevant receivables, but will continue the recourse activities, and the amount recovered due to recourse will be recognized as income.

The Company measures the provision for loss of accounts receivable (including those of related parties) according to the preparation matrix as follows:

December 31, 2021

Not overdue Expected credit loss rate 0% Total book value $ 277,596 Provision for loss (expected credit loss during the period of existence) - Cost after amortization $ 277,596 December 31, 2020 Not overdue Expected credit loss rate 0% Total book value $ 232,806 Provision for loss (expected credit loss during the period of existence) - Cost after amortization $ 232,806	Not overdue		1~60 days overdue		61~120 days overdue		121~150 days overdue	151~180 days overdue		181~365 days overdue		More than 366 days overdue		Total
		(	0%`～`1% $ 16,405 31) $ 16,374 1~60 days overdue	(	5%`～`10% $ 3,506 1,579) $ 1,927 61~120 days overdue	(	20% $ 957 192) $ 765 121~150 days overdue	100% $ - - $ - 151~180 days overdue	(	100% $ 687 687) $ - 181~365 days overdue	(	100% $ 12,055 12,055) $ - More than 366 days overdue	(	$ 311,206 14,544) $ 296,662 Total
Expected credit loss rate Total book value Provision for loss (expected credit loss during the period of existence) Cost after amortization
	0% $ 232,806 - $ 232,806	(	0%`～`1% $ 15,095 15) $ 15,080	(	5%`～`10% $ 345 107) $ 238	(	20% $ 1,932 618) $ 1,314	100% $ - - $ -	(	100% $ 2,997 2,997) $ -	(	100% $ 12,554 12,554) $ -	(	$265,729 16,291) $ 249,438

Information on changes in provision for losses of accounts receivable (including those of related parties) is as follows:

Beginning balance Add: impairment loss in the current period Less: impairment loss of reversals in the current period Less: Allowance for loss reclassified as collections Ending balance	2021 $ 16,291 - ( 1,710 ) ( 37) $ 14,544		2020
			$ 8,568 7,723 - - $ 16,291

Compared with the balance at the beginning of the year, the total book values of accounts receivable as of December 31, 2021 and 2020 increased by

NT$45,477 thousand and decreased by NT$723 thousand respectively, and the allowance for losses decreased by NT$1,747 thousand and increased by NT$7,723 thousand respectively.

(2) Collection

The information about the change of provision for collection loss is as follows:

follows:
Beginning balance Add: Allowance for loss from reclassification of accounts receivable Ending balance		2021 $ 50 37 $ 87		2020
				$ 50 - $ 50

The collection amount is included in other assets and the provision for impairment losses has been made in full.

(3) Other receivables

Information about the change of provision for losses of other receivables (including those of related parties) is as follows:

Beginning balance Add: impairment loss in the current period Less: impairment loss of reversals in the current period Ending balance		2021 $ - 124 - $ 124		2020
			(	$ 2 - 2) $ -

11. Inventory

Inventory
Finished products Semi-finished products Raw materials Merchandise inventory	December 31, 2021 $ 63,679 14,003 89,969 24,519 $ 192,170	December 31, 2020
			$ 46,501 15,024 68,584 15,638 $ 145,747

The cost of goods sold related to inventory in 2021 and 2020 were NT$1,294,483 thousand and NT$988,901 thousand respectively. The cost of goods sold includes inventory falling price and dead stock loss (gain) of NT$(1,201) thousand and NT$2,516 thousand respectively.

12. Investment under the equity method

Invested subsidiaries Joint ventures Invested subsidiaries Tex Year International (SAMOA) Corp. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o. Name of subsidiary Tex Year International (SAMOA) Corp. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o.	December 31, 2021 December 31, 2020 $ 1,171,056 $ 1,233,825 25,001 22,360 $ 1,196,057 $ 1,256,185 December 31, 2021 December 31, 2020 $ 899,683 $ 947,398 75,542 80,294 69,851 69,190 125,980 136,943 $ 1,171,056 $ 1,233,825 Percentage of ownership interest and votingrights	December 31, 2020
		$ 1,233,825 22,360 $ 1,256,185 December 31, 2020
	December 31, 2021 100% 100% 80% 80%	December 31, 2020
		100% 100% 80% 80%

(1) Invested subsidiaries

For joint ventures of subsidiaries by the equity method, the recoverable amount is less than the book value because it is expected that some of the machinery and equipment used for production will have no future cash inflow, so impairment losses of NT$7,524 thousand and NT$9,522 thousand were recognized in 2021 and 2020 respectively.

For details of the investee subsidiaries indirectly held by the Company, please refer to Attachments 5 and 6.

The share of profit or loss and other comprehensive income or loss of subsidiaries accounted for under the equity method is recognized based on the audited financial statements of each subsidiary for the same period.

(2) Joint ventures

Joint ventures
Individual non-significant joint ventures Tex Year Industrial Adhesives Pvt. Ltd.	December 31, 2021 $ 25,001	December 31, 2020
			$ 22,360

Summary information of individual unimportant joint ventures

Share of the Company Net profit of the current period Other comprehensive income Total comprehensive income		2021 $ 3,450 892) $ 2,558		2020
	(			$ 2,314 ( 2,347) ($ 33)

The annual financial statements of Tex Year Industrial Adhesives Pvt. Ltd. ended on March 31. Since it is practically difficult to require the company to prepare additional financial statements with a reporting date of December 31, the Company used this company's financial statements on the balance sheet date of March 31, 2021 and March 31, 2020, and made adjustments for significant transactions between April 1, 2021 to December 31, 2021 and between April 1, 2020 to December 31, 2020.

The calculation of the equity-method investees and the Company's share of income or loss and other comprehensive income or loss is based on the unaudited financial statements of the investees for the same period; however, the Company's management believes that the unaudited financial statements of the investees are not material.

Please refer to Table 6 “Name, location, …. of the investee company” for the business nature, main business premises and country of incorporation of the joint ventures above.

13. Property, plant and equipment

Cost Balance on January 1, 2020 Addition Disposal Reclassification Balance on December 31, 2020 Accumulated depreciation and impairment Balance on January 1, 2020 Depreciation expenses Disposal Balance on December 31, 2020 Net amount on December 31, 2020		Self-own land	Revaluation and appreciation of land	Revaluation and appreciation of land	Houses and buildings	Machinery and equipment	Office equipment	Other equipment	Unfinished project	Unfinished project	Total
		$ 45,717 - - - $ 45,717 $ - - - $ - $ 45,717		$ 45,324 - - - $ 45,324 $ - - - $ - $ 45,324	$ 464,781 5,706 ( 400 ) 14,062 $ 484,149 $ 161,306 14,199 ( 372) $ 175,133 $ 309,016	$ 151,208 18,309 ( 316 ) 4,604 $ 173,805 $ 80,348 11,901 ( 316) $ 91,933 $ 81,872	$ 15,093 1,749 ( 455 ) - $ 16,387 $ 10,727 1,396 ( 455) $ 11,668 $ 4,719	$ 29,711 1,601 ( 259 ) - $ 31,053 $ 19,643 2,488 ( 259) $ 21,872 $ 9,181	(	$ 14,062 473 - 14,062) $ 473 $ - - - $ - $ 473	$ 765,896 27,838 ( 1,430 ) 4,604 $ 796,908 $ 272,024 29,984 ( 1,402) $ 300,606 $ 496,302

Cost Balance on January 1, 2021 Addition Disposal Reclassification Balance on December 31, 2021 Accumulated depreciation and impairment Balance on January 1, 2021 Depreciation expenses Disposal Reclassification Balance on December 31, 2021 Net amount on December 31, 2021		Self-own land	Revaluation and appreciation of land	Revaluation and appreciation of land		Houses and buildings	Machinery and equipment	Office equipment	Other equipment	Unfinished project	Unfinished project	Total
		$ 45,717 - - - $ 45,717 $ - - - - $ - $ 45,717		$ 45,324 - - - $ 45,324 $ - - - - $ - $ 45,324		$ 484,149 1,934 - 2,833 $ 488,916 $ 175,133 14,727 - - $ 189,860 $ 299,056	$ 173,805 6,633 ( 1,163 ) 9,024 $ 188,299 $ 91,933 14,026 ( 1,163 ) - $ 104,796 $ 83,503	$ 16,387 1,916 ( 226 ) 704 $ 18,781 $ 11,668 1,709 ( 226 ) - $ 13,151 $ 5,630	$ 31,053 898 ( 272 ) 543 $ 32,222 $ 21,872 2,285 ( 272 ) ( 106) $ 23,779 $ 8,443	(	$ 473 315 - 74) $ 714 $ - - - - $ - $ 714	$ 796,908 11,696 ( 1,661 ) 13,030 $ 819,973 $ 300,606 32,747 ( 1,661 ) ( 106) $ 331,586 $ 488,387

As there was no sign of impairment in 2021 and 2020, the Company did not conduct an impairment assessment.

Depreciation expenses are accrued on a straight-line basis based on the following number of years of service life:

number of years of service life:
Houses and buildings
Main building of plant	5 to 40 years
Electromechanical and other	3 to 15 years
Machinery and equipment	2 to 15 years
Office equipment	3 to 6 years
Other equipment	4 to 15 years

Please refer to note 32 for the amount of property, plant and equipment pledged by the Company for loans.

14. Lease agreements

(1) Right-of-use assets

edged by the Company for loans. agreements Right-of-use assets
Book amount of right-of-use assets Buildings Office equipment Transportation equipment	December 31, 2021 $ 2,149 341 1,785 $ 4,275	December 31, 2020
			$ 710 519 204 $ 1,433

2021 Addition of right-of-use assets $ 5,133 Depreciation expenses of right-of-use assets Buildings $ 1,425 Office equipment 178 Transportation equipment 688 $ 2,291 (2) Lease liabilities December 31, 2021 Book amount of lease liabilities Current $ 1,568 Non-current $ 2,412 The range of discount rate of lease liabilities is as follows: December 31, 2021 Buildings 1.27%~1.55% Office equipment 1.55% Transportation equipment 1.27%~1.55% (3) Other lease information 2021 Short term rental expenses $ 1,111 Total cash (outflow) from lease ($ 3,350)		2020
	$ - $ 1,010 180 386 $ 1,576 December 31, 2020
	$ 739 $ 301 December 31, 2020
		1.55% 1.55% 1.55% 2020
	(	$ 2,166 $ 3,705)

The Company chooses to exempt the recognition of buildings, office equipment and transportation equipment conforming to the short-term lease, and does not recognize the relevant right-of-use assets and lease liabilities.

15. Intangible assets

angible assets
Cost Balance on January 1, 2020 Acquisition Balance on December 31, 2020 Accumulated depreciation Balance on January 1, 2020 Amortization expenses Balance on December 31, 2020 Net amount on December 31, 2020 Cost Balance on January 1, 2021 Acquisition Balance on December 31, 2021 Accumulated depreciation Balance on January 1, 2021 Amortization expenses Balance on December 31, 2021 Net amount on December 31, 2021	Patent rights $ 1,312 - $ 1,312 $ 1,228 23 $ 1,251 $ 61 $ 1,312 - $ 1,312 $ 1,251 23 $ 1,274 $ 38	Computer software $ 24,262 4,051 $ 28,313 $ 19,058 1,746 $ 20,804 $ 7,509 $ 28,313 2,810 $ 31,123 $ 20,804 2,110 $ 22,914 $ 8,209		Total
				$ 25,574 4,051 $ 29,625 $ 20,286 1,769 $ 22,055 $ 7,570 $ 29,625 2,810 $ 32,435 $ 22,055 2,133 $ 24,188 $ 8,247

Amortization expenses are accrued on a straight-line basis based on the following number of years of service life:

Patent rights 10 to 20 years Computer software 2 to 8 years

Total amortization by function:

Total amortization by function:
Manufacturing Costs Marketing expenses Administrative expenses R&D expenses		2021 $ 57 366 1,585 125 $ 2,133		2020
				$ - 366 1,261 142 $ 1,769

16. Other assets

16.Other assets
Advance payment for goods Other prepaid expenses Refundable deposit Advance payment for equipment Others Current Non-current 17. Borrowings (1) Short-term borrowings Unsecured loans Credit loans Borrowing rates (2) Long-term loans Secured loans(note 32) The Export-Import Bank of the Republic of China (1) Taiwan Cooperative Bank (2) Taiwan Business Bank (3) Taiwan Cooperative Bank (4) Taiwan Business Bank (5) Taiwan Business Bank (6) Taiwan Business Bank (7) Taiwan Business Bank (8) Taiwan Cooperative Bank (9) Subtotal	December 31, 2021 $ 12,983 11,757 3,174 43,465 896 $ 72,275 $ 25,172 47,103 $ 72,275 December 31, 2021 $ 474,664 0.78%`～`1.09% December 31, 2021 $ - 14,550 9,167 10,977 55,000 36,667 36,667 16,500 48,990 228,518	December 31, 2020
		$ 14,376 4,094 3,348 2,768 1,121 $ 25,707 $ 18,855 6,852 $ 25,707 December 31, 2020
		$ 293,000 0.98%`～`1.04% December 31, 2020
			$ 14,250 31,908 10,000 18,807 60,000 40,000 40,000 18,000 60,000 292,965

(Continue)

Unsecured loans Export-Import Bank of the Republic of China (10) Hua Nan Bank credit loan (11) Hua Nan Bank credit loan (12) Subtotal Less: due within one year Long-term loan	December 31, 2021 $ 16,062 40,000 - 56,062 284,580 ( 60,807) $ 223,773	December 31, 2020	December 31, 2020
	(	(	$ 22,488 - 40,000 62,488 355,453 110,851) $ 244,602

(1) The period is from September 29, 2016 to September 28, 2021. From March 2018, every six months is one period, for totally eight periods. The principal and interest are amortized according to the average method. It has been fully repaid in September 2021. As of December 31, 2020, the effective annual interest rate is 1.2386%.
(2) The period is from December 28, 2017 to December 27, 2022. From January 2019, each month is one period, for totally 48 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.40%.
(3) The period is from December 28, 2017 to December 27, 2032. From January 2021, each month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.25%.
(4) The period is from June 28, 2018 to December 27, 2022. From January 2019, each month is one period, for totally 48 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.40%.
(5) The period is from September 14, 2018 to December 28, 2032. From January 2021, each month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.25%.
(6) The period is from October 8, 2018 to December 28, 2032. From January 2021, each month is one period, for totally 144 periods. The principal

and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.25%.

(7) The period is from November 6, 2018 to December 28, 2032. From January 2021, each month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.25%.
(8) The period is from December 31, 2019 to December 28, 2032. From January 2021, each month is one period, totally 144 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.25%.
(9) The period is from March 30, 2020 to March 29, 2025. From April 2020, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were both 1.40%.
(10) The period is from February 26, 2019 to February 25, 2024. From August 2020, six months is one period, for totally 8 periods. The principal and interest are amortized according to the average method. The effective annual interest rates as of December 31, 2021 and 2020 were 1.2350% and 1.2356% respectively.
(11) The period is from December 29, 2021 to December 28, 2023. From January 2022, one month is one period, for 24 periods. The interest was paid in each period, and the principal was repaid at one time when due. The effective annual interest rate as of December 31, 2021 was 1.23%.
(12) The period is from December 31, 2019 to December 29, 2021. From January 2020, each month is one period, for totally 24 periods. The interest was paid in each period, and the principal was repaid at one time when due. It has been fully repaid in December 2021. As of December 31, 2020, the effective annual interest rate was 1.12%.
The consolidated company has provided part of the land, houses and
buildings as collateral. Please refer to notes 13 and 32.

18. Corporate bonds payable

Corporate bonds payable
Domestic secured convertible corporate bonds Domestic unsecured convertible corporate bonds Less: convertible bond discounts Less: due within one year	December 31, 2021 $ 200,000 33,500 233,500 ( 7,461 ) ( 32,989) $ 193,050	December 31, 2020
		$ 200,000 72,900 272,900 ( 11,818 ) - $ 261,082

The relevant information of domestic convertible corporate bonds issued by the Company is as follows:

(1) The conditions for the issuance of the second domestic secured convertible corporate bonds of the Company are as follows: The Company has been approved by the competent authority to raise and issue the second domestic unsecured convertible corporate bonds, with a total issuance amount of NT$200,000 thousand and a coupon rate of 0%. The issuance period is 5 years, and the circulation period is from October 23, 2019 to October 23, 2024. It was listed on the Taipei Exchange (OTC) Securities Exchange of the Republic of China on October 23, 2019. When the convertible bond is due, it shall be paid in cash at one time according to the face value of the bonds. The holders of the convertible bond may, from three months after the day following the issuance date of this bond to the maturity date, request a conversion into the common shares of the company at any time, except for the period during which the transfer of ownership shall be suspended in accordance with the relevant measures or laws and regulations. The conversion price of the convertible corporate bond is set in accordance with the pricing model prescribed in the conversion method, with the conversion price of NT$15.7 per share. In case of any anti-dilution provisions of the Company, the subsequent conversion price shall be adjusted in accordance with the pricing model prescribed in the conversion method.

From the day following 3 months after the issuance of the convertible corporate bonds to 40 days before the expiry of the issuance period, if the closing price of the Company's ordinary shares exceeds the current conversion price by more than 30% (inclusive) for 30 consecutive business days, or if the outstanding balance of the convertible corporate bonds is less

than 10% of the original total amount, the Company may recall all the bonds in cash according to the bond’s face value.

The Company provided a demand deposit of NT$20,000 thousand as a guarantee for the issuance of corporate bonds, but on July 7, 2020, it was exempted from providing the guarantee after an agreement with the Taiwan Small and Medium Business Bank.

(2) The conditions for the issuance of the third domestic unsecured convertible corporate bonds of the Company are as follows: The Company has been approved by the competent authority to raise and issue the third domestic unsecured convertible corporate bonds, with a total issuance amount of NT$100,000 thousand and a coupon rate of 0%. The issuance period is 3 years, and the circulation period is from October 24, 2019 to October 24, 2022. It was listed on the Taipei Exchange (OTC) Securities Exchange of the Republic of China on October 24, 2019. When the convertible bond is due, it shall be paid in cash at one time according to the face value of the bonds. The holders of the convertible bond may, from three months after the day following the issuance date of this bond to the maturity date, request a conversion into the common shares of the company at any time, except for the period during which the transfer of ownership shall be suspended in accordance with the relevant measures or laws and regulations. The conversion price of the convertible corporate bond is set in accordance with the pricing model prescribed in the conversion method, with the conversion price of NT$14.3 per share. In case of any anti-dilution provisions of the Company, the subsequent conversion price shall be adjusted in accordance with the pricing model prescribed in the conversion method.

Due to the Company's stock ex-rights/dividend operations in 2021 and 2020, the conversion prices for the second secured and third unsecured convertible corporate bonds have been adjusted in accordance with the Issuance regulations on July 27, 2020, the ex-dividend date, to NT$15.4 and NT$14.0, respectively, and then adjusted to NT$14.7 and NT$13.4, respectively on September 15, 2021, the ex-rights date.

The above-mentioned convertible corporate bonds include the conversion right of the main contractual debt instrument, the sale/redemption derivative instrument and the equity component, which are expressed under the equity by additional capital from retained earnings - conversion rights. The effective interest rate originally recognized for the liability component is 1.26% ~ 1.89%. Changes in the main contract debt instruments are as follows:

		2021			2020
Component of liabilities at the
beginning of the year	$	261,082		$	283,058
Interest calculated at the
effective interest rate for the
current period		3,220			4,059
Common shares converted
from payable corporate
bonds	(	38,263)	(		26,035)
Year-end liability component	$	226,039		$	261,082
Changes in put/call derivatives are as		follows:
		2021			2020
Beginning balance	$	560		$	-
Changes in fair value benefits
(losses)	(	380)			560
Ending balance	$	180		$	560

Changes in the conversion rights of equity components (under capital reserve) are as follows:

reserve) are as follows:
Beginning balance Common shares converted from payable corporate bonds Ending balance		2021 $ 11,661 1,587) $ 10,074		2020
	(		(	$ 12,753 1,092) $ 11,661

As of December 31, 2021, the denomination of the bonds exercised by the holders of the third domestic unsecured conversion corporate bonds was NT$66,500 thousand in total, converted into 4,736,120 ordinary shares of the Company. A capital reserve of NT$16,936 thousand was recognized.

19. Accounts payable

19.	Accounts payable
20. 21.	Accounts payable Arising from business Accounts payable-related parties Arising from business Other liabilities Current Other payable Estimate other expense Bonus payable Salary payable Remuneration payable to employees, directors and supervisors Payable on machinery and equipment Leave payment payable Other expenses payable Other liabilities Other expenses payable Collection on behalf of others Non-current Other liabilities Long-term deferred income Provision for liabilities-current Warranty Beginning balance	December 31, 2021 $ 185,362 $ 21,293 December 31, 2021 $ 23,573 18,753 13,752 3,075 6,743 4,912 17,677 $ 88,485 $ 16,824 777 $ 17,601 $ 161 December 31, 2021 $ 1,058 2021 $ 1,046	December 31, 2020
			$ 142,454 $ 17,293 December 31, 2020

			$ 28,015 24,894 13,239 6,673 2,371 4,485 15,240 $ 94,917 $ 12,261 711 $ 12,972 $ 186 December 31, 2020
				$ 1,046 2020
				$ 1,666

Provision (reversal) of the year 12 ( 620 ) Ending balance $ 1,058 $ 1,046

The provision for warranty liabilities is the present value of the best estimate of the outflow of future economic benefits caused by the warranty obligation from the management of the Company in accordance with the contract for the sale of goods. This estimate is based on historical warranty experience, taking into account the adjustment for new raw materials, process changes or other factors affecting product quality.

22. Post-retirement benefit plans

(1) Defined contribution plan

The pension system of the “Labor Pension Act” is applicable to the Company, and is a defined contribution plan managed by the government. The pension is allocated to the individual account of the Labor Insurance Bureau at 6% of the employee’s monthly salary.

(2) Defined benefit plans

The Company implements a pension system of defined benefit plans managed by the government as prescribed in the “Labor Standards Act”. The employee's pension is calculated based on the length of service and the average salary for the six months before the approved retirement date. The Company allocates 8% of the total monthly salary of the employees to the pension, and hands it over to the Labor Retirement Reserve Supervision Committee to deposit it into the special account of the Bank of Taiwan in the name of the committee. Before the end of the year, if it is estimated that the balance of the special account is not sufficient to pay the workers who are expected to meet the retirement conditions in the next year, the difference will be provided in one go by the end of March of the next year. The management of the account is entrusted to the Bureau of Labor Fund Utilization, Ministry of Labor, and the Company has no right to influence the investment management strategy.

The amounts included in the individual balance sheet for defined benefit plans are as follows

plans are as follows
Current value of defined benefit obligation Fair value of planned assets Net defined benefit liabilities	December 31, 2021 $ 86,831 ( 48,945) $ 37,886	December 31, 2020
	(	(	$ 86,518 44,027) $ 42,491

Changes to net defined benefit liabilities (assets) are as follows:

		Current
		value of			Net defined
		defined	Fair value of			benefit
		benefit		planned		Liabilities
		obligation		assets		(assets)
Balance on January 1, 2020		$ 81,931		$ 40,195		$ 41,736
Service cost
Service cost of the current period		835		-		835
Interest expenses/interest income		604		309		295
Recognized as profit (loss)		1,439		309		1,130
Compensation for planned assets
(in addition to the amount
included in net interest)		-		1,366	(	1,366 )
Actuarial losses changes in
financial assumptions		3,784		-		3,784
Actuarial loss experience
adjustment		1,431		-		1,431
Recognized as Other comprehensive
income		5,215		1,366		3,849
Employer contribution		-		4,224	(	4,224 )
Benefit paid	(	2,067)	(	2,067)		-
Balance on December 31, 2020		$ 86,518		$ 44,027		$ 42,491
Balance on January 1, 2021		$ 86,518		$ 44,027		$ 42,491
Service cost
Service cost of the current period		686		-		686
Interest expenses/interest income		256		135		121
Recognized as profit (loss)		942		135		807
Compensation for planned assets
(in addition to the amount
included in net interest)		-		642	(	642 )
Actuarial loss - changes in
demographic assumptions		190		-		190
Actuarial gain - changes in
financial assumptions	(	3,261 )		-	(	3,261 )
Actuarial loss experience
adjustment		2,560		-		2,560
Recognized as Other comprehensive
income	(	511)		642	(	1,153)
Employer contribution		-		4,259	(	4,259 )
Benefit paid	(	118)	(	118)		-
Balance on December 31, 2021		$ 86,831		$ 48,945		$ 37,886

The amounts recognized in profit or loss for defined benefit plans are summarized by function as follows:

Operating cost Marketing expenses Administrative expenses R&D expenses		2021 $ 181 270 220 136 $ 807		2020
				$ 259 367 318 186 $ 1,130

The Company is exposed to the following risks as a result of the Labor Standards Law pension system.

Investment risk: The Bureau of Labor Fund of the Ministry of Labor invests labor pension funds in domestic (foreign) equity and debt securities and bank deposits through self-operation and entrusted management, but the Consolidated Company’s distributable amount of the plans’ assets is the income calculated at not lower than the 2-year fixed deposit interest rate of the local bank.
Interest rate risk: A decrease in interest rates on government bonds/corporate bonds will increase the present value of the defined benefit obligation, with a corresponding increase in the return on investment in plan assets, both of which have a partially offsetting effect on the net defined benefit obligation.
Salary Risk: The present value of the defined benefit obligation is calculated by reference to the future salary of the plan member. Therefore, increases in plan members' salaries will result in an increase in the present value of the defined benefit obligation.

The present value of the Company's defined benefit obligation was actuarially determined by a qualified actuary with the following significant assumptions as of the measurement date.

Discount rate Expected rate of salary increase Turnover rate	December 31, 2021 0.70% 3.00% 0.30%	December 31, 2020
		0.30% 3.00% 0.42%

The amount by which the present value of the defined benefit obligation would increase (decrease) if there were reasonably possible changes in significant actuarial assumptions, respectively, with all other assumptions held constant, is as follows

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease	December 31, 2021 ($ 1,982) $ 2,044 $ 2,005 ($ 1,954)	December 31, 2020	December 31, 2020
	( (	( (	$ 2,130) $ 2,202 $ 2,151 $ 2,093)

The sensitivity analysis above may not reflect actual changes in the present value of the defined benefit obligation because the actuarial assumptions may be correlated and changes in only one assumption are not probable.

probable.
Amount expected to be withdrawn within 1 year Average Period of Defined Benefit Obligation to maturity	December 31, 2021 $ 3,445 9 years	December 31, 2020
			$ 3,306 10 years

Equity

(1) Share capital 1. Common stock

capital Common stock
Authorized number of shares (1,000 shares) Authorized share capital Number of issued shares fully paid for (1,000 shares) Capital of issued shares	December 31, 2021 150,000 $ 1,500,000 97,933 $ 979,327	December 31, 2020
			150,000 $ 1,500,000 89,386 $ 893,857

The par value of each issued common share is NT$10. Each share has one voting right and the right to receive dividends.

2. Certificates of right to convert bonds for shares

	2. Certificates of right to convert bonds for shares
(2)	December 31, 2021 Number of shares converted but not yet registered for change (1,000 shares) 15 Share capital converted but not yet registered for change $ 150 Additional capital from retained earnings December 31, 2021 It may be used to cover losses, distribute cash or replenish share capital(1) Premium from share issuance $ 22,142 Premium from convertible bond conversion 18,538 The conversion right shall be paid off at maturity 6,307 can only be used to cover losses (2) Changes in net equity of subsidiaries and joint ventures recognized under the equity method 29 and cannot be used for any other purpose. Conversion right 11,661 $ 58,677	December 31, 2020
		1,214 $ 12,143 December 31, 2020
			$ 22,142 8,431 6,307 29 11,661 $ 48,570

This type of capital reserve may be used to make up for losses, and when the Company has no losses, it may also be used to distribute cash or for capital appropriation; when used for capital appropriation, it is limited to a certain percentage of the paid-in capital every year.
For the investment by the equity method, the capital reserve generated due to the change of the subsidiary's equity shall not be used for any purpose except to cover the loss.
(3) Retained earnings and dividend policy

According to the provisions of the earnings distribution policy in the Company's articles of association, if there is a surplus in the annual final

accounts, taxes shall be paid in accordance with the law, and after making up the cumulative loss, 10% shall be set aside as the legal reserve, and the rest shall be appropriated as or reversed from special reserve according to laws and regulations. If there is still a balance, the board meeting shall formulate an earnings distribution proposal for it together with the cumulative undistributed surplus, and submit it to the shareholders' meeting for a resolution to distribute dividends to shareholders. Please refer to note 25(7) employees’ remuneration and directors’ and supervisors’ remuneration for the distribution policy of employees’ remuneration and directors’ and supervisors’ remuneration stipulated in the Articles of Association.

The Company’s products are diversified, its profits are stable and its financial structure is sound. The dividend policy is based on the consideration of significant expansion plans and capital expenditures in the next few years. The actual distribution shall be proposed by the board of directors to the shareholders’ meeting according to the Company’s operating conditions. The distribution of ‘ dividends to shareholders shall be at least 50% of the distributable earnings of the current year after deducting the legal reserve and special reserve. The cash dividend shall account for more than 20% of the total amount of dividends, but if the cash dividend per share is less than NT$0.5 (inclusive), it may be distributed in the form of stock dividend instead.

The legal reserve shall be allocated until its balance reaches the total paid-in share capital of the Company. The legal reserve may be used to make up for losses. When the Company has no losses, the portion of the legal reserve exceeding 25% of the total paid-in share capital may be distributed in cash in addition to being appropriated as share capital.

The Company held general shareholders' meetings on July 26, 2021 and on June 16, 2020, respectively, and passed the following resolutions on the distribution of earnings for 2020 and 2019:

Legal reserve Special reserve Stock dividend Stock dividends per share (NT$)		2020 $ 6,666 $ 15,553 $ 45,321 $ 0.5		2019
				$ 4,418 $ 40,395 $ - $ -

In addition, on June 16, 2020, the Company’s board of directors’ meeting proposed to distribute a cash dividend of NT$0.3 per share from the additional capital from retained earnings due to the premium on the issuance of common shares, totaling NT$26,753 thousand.

The Company’s board meeting on March 29, 2022 proposed the following 2021 earnings distribution scheme:

following 2021 earnings distribution scheme:
Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)		2021
		$ 2,980 $ 7,869 $ 20,627 $ 0.2

The earnings distribution scheme for 2021 is pending the resolution of the general shareholders’ meeting expected to be held on June 27, 2022.

24. Revenue

Revenue
Revenue from goods sold		2021 $ 1,564,733		2020
				$ 1,251,076

See Note 10 and Note 20 for contract balances.

25. Net profit of the current period

(1) Interest income

Net profit of the current period (1) Interest income
Bank deposits Others (2) Other income Rental income Management and technical service income Government subsidy income Others (3) Other benefits and (loss) Net gain (loss) on current financial assets measured at fair value through profit or loss Gains (losses) from disposal of property, plant and equipment	2021 $ 92 1,324 $ 1,416 2021 $ 79 4,395 7,924 6,048 $ 18,446 2021 $ 1,934 30 $ 1,964		2020
			$ 196 700 $ 896 2020
			$ 78 9,783 12,187 9,790 $ 31,838 2020
		(	$ 560 28) $ 532

(4) Financial cost Convertible corporate bond interest (note 18) Interest on bank loan Interest on lease liabilities (5) Depreciation and amortization Property, plant and equipment Intangible assets Right-of-use assets Long-term prepaid expenses Depreciation expenses summary by function Operating cost Operating expenses Amortized expenses summary by function Operating cost Operating expenses (6) Employee benefits Short-term employee benefits Salary expense Labor and health insurance expenses Post-employment benefits Defined contribution plan Defined benefit plan (Note 22) Other employee benefits Total employee benefit expenses Summary by function Operating cost Operating expenses		2021 $ 3,220 7,461 46 $ 10,727 2021 $ 32,747 2,133 2,291 271 $ 37,442 $ 24,779 10,259 $ 35,038 $ 133 2,271 $ 2,404 2021 $ 182,483 18,093 200,576 8,493 807 9,300 11,151 $ 221,027 $ 72,620 148,407 $ 221,027		2020
				$ 4,059 8,635 35 $ 12,729 2020
				$ 29,984 1,769 1,576 646 $ 33,975 $ 22,208 9,352 $ 31,560 $ - 2,415 $ 2,415 2020
				$ 182,791 16,682 199,473 9,288 1,130 10,418 10,406 $ 220,297 $ 72,068 148,229 $ 220,297

(7) Remuneration payable to employees, directors and supervisors

In accordance with the Articles of Association, based on the net profit before tax of the current year minus the benefits before the distribution of the employees’ remuneration and the directors’ and supervisors’ remuneration, the Company allocates 1% to 10% as the employees’ remuneration and no more than 3% as the directors’ and supervisors’ remuneration after making up the losses. The resolutions on the employees’ remuneration and directors' and supervisors' remuneration for 2021 and 2020 by the board meeting on March 29, 2022 and March 26, 2021 are as follows:

Estimated proportion

Estimated proportion
Employees’ remuneration Directors and supervisors’ remuneration Amount Employees’ remuneration Directors and supervisors’ remuneration	2021 2020 6% 6% 2% 2% Cash	2020
	2021 $ 2,275 800	2020
		$ 5,005 1,668

If there is any change in the amount of the annual individual financial statements after the date of issuance, it shall be handled according to the change in accounting estimates and recorded in the next year.

There is no difference between the actual distribution amount of employees’ remuneration and directors' and supervisors' remuneration in 2020 and 2019 and the amount recognized in the consolidated financial statements in 2020 and 2019.

For information on the employees’ remuneration and directors' and supervisors' remuneration in accordance with the resolutions of the board meeting of the Company in 2021 and 2020, please go to the MOPS of the Taiwan Stock Exchange.

26. Income tax

(1) Major components of income tax expense recognized in profit or loss

Income tax (1) Major components of income tax expense recognized in profit or loss	fit or	loss
2021 2020 Income tax of the current period Generated in the current period $ 15,494 $ 262 Surtax on undistributed earnings 44 120 Adjustment for previous years 200 ( 9,735) 15,738 ( 9,353) Deferred income tax Generated in the current period ( 9,002 ) 16,276 Adjustment for previous years ( 770) 84 ( 9,772) 16,360 Income tax expenses recognized in income $ 5,966 $ 7,007 he adjustment of accounting income to income tax expense is as follows: 2021 2020 Net profit before tax $ 34,843 $ 76,747 Income tax expense on net income before income tax at statutory tax rate (20%) $ 6,969 $ 15,349 Non-deductible expenses for tax purposes 1,970 1,780 Surtax on undistributed earnings 44 120 Adjustment for previous years ( 570 ) ( 9,651 ) Others ( 2,447) ( 591) Income tax expenses recognized in income $ 5,966 $ 7,007 (2) Income tax recognized in other comprehensive income 2021 2020 Deferred income tax Generated in the current period - Remeasurements of defined benefits plans $ 230 ( 770 ) - Conversion of foreign operating organizations ( 1,967) ( 2,992) ($ 1,737) ($ 3,762)		2020
	$ 76,747 $ 15,349 1,780 120 ( 9,651 ) ( 591) $ 7,007 2020
	( 770 ) ( 2,992) ($ 3,762)

The adjustment of accounting income to income tax expense is as follows:

(3) Income tax assets and liabilities of the current period

Current income tax liabilities Income tax payable	December 31, 2021 $ 5,016	December 31, 2020	December 31, 2020
			$ -

(4) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities: January 1 to December 31, 2021

Deferred income tax assets Temporary differences Gross profit on unrealized sales Actuarial profit and loss Provision for loss Provisions for loss from inventory falling price and dead stock Exchange differences in foreign operating organizations Others Deferred income tax liabilities Temporary differences Investment under the equity method Provision for land appreciation tax Defined benefit retirement plan Unrealized profit on exchange		Beginning balance $ 667 4,308 3,501 2,578 21,207 1,886 $ 34,147 $ 69,454 9,558 283 511 $ 79,806	Recognized as profit (loss) $ 1,190 - 1,101 - - ( 14) $ 2,277 ( $ 8,488 ) - 1,460 ( 467) ($ 7,495)	Recognized as Other comprehensi ve income $ - ( 230 ) - - 1,967 - $ 1,737 $ - - - - $ -		Ending balance
			( ( ( (	(		$ 1,857 4,078 4,602 2,578 23,174 1,872 $ 38,161 $ 60,966 9,558 1,743 44 $ 72,311

January 1 to December 31, 2020

Deferred income tax assets Temporary differences Actuarial profit and loss Provision for loss Provisions for loss from inventory falling price and dead stock Exchange differences in foreign operating organizations Others Deferred income tax liabilities Temporary differences Investment under the equity method Provision for land appreciation tax Defined benefit retirement plan Unrealized profit on exchange		Beginning balance $ 3,538 1,967 2,339 18,215 4,121 $ 30,180 $ 53,683 9,558 - - $ 63,241	Recognized as profit (loss) $ - 1,534 239 - ( 1,568) $ 205 $ 15,771 - 283 511 $ 16,565	Recognized as Other comprehensi ve income $ 770 - - 2,992 - $ 3,762 $ - - - - $ -		Ending balance
			(			$ 4,308 3,501 2,578 21,207 2,553 $ 34,147 $ 69,454 9,558 283 511 $ 79,806

(5) Approved income tax situation

The Company’s declared cases up to 2018 have been approved by the tax collection authority.

27. Earnings per share

tax collection authority. nings per share
Basic earnings per share Diluted earnings per share		Unit: 2021 $ 0.30 $ 0.28		NT$ per share 2020 $ 0.74 $ 0.65

When calculating the earnings per share, the impact of the free allotment has been retroactively adjusted, and the book-close date of the free allotment is set on September 15, 2021. Due to retroactive adjustment, the changes of basic and diluted earnings per share for 2020 are as follows:

Basic earnings per share Diluted earnings per share	Unit: NT$ per share Before retroactive adjustment After retroactive adjustment $ 0.78 $ 0.74 $ 0.68 $ 0.65

The earnings used for calculating earnings per share and weighted average number of common shares are as follows:

Net profit of the current period

Net profit of the current period
Net profit used to calculate basic earnings per share Effect of potential common stock with dilution: After-tax interest on convertible bonds After-tax evaluation loss of convertible corporate bond put/call options Net profit used to calculate diluted earnings per share Number of shares To calculate the weighted average number of shares of common stock for basic earnings per share Effect of potential common stock with dilution: Corporate bond conversion Employees’ remuneration To calculate the weighted average number of shares of common stock for diluted earnings per share		2021 2020 $ 28,877 $ 69,740 2,576 3,247 304 - $ 31,757 $ 72,987 Unit: thousand shares 2021 2020 97,214 93,802 17,066 18,293 195 382 114,475 112,477

If the Company has the option to pay employees’ remuneration in shares or cash, the calculation of diluted earnings per share is based on the assumption that the employees’ remuneration will be issued in shares, and the weighted average number of outstanding shares will be included in the calculation of diluted earnings per share when the potential common shares are diluted.

When calculating the diluted earnings per share before the issuance of employees’ remuneration shares in the next annual resolution, the dilution effect of such potential common shares shall also be considered.

28. Government subsidies

In May 2020 and May 2021, due to the implementation of the R&D and innovation projects entrusted by the Ministry of Economic Affairs, the Company received subsidies of NT$5,900 thousand and NT$13,720 thousand respectively in accordance with the subsidy approval letters of the Taiwan Small & Medium Enterprise Counseling Foundation referenced Ji No. 1070001330B and the Institute for Information Industry referenced Zi-Chi No. 1090006916. The amounts have been listed as deferred government subsidy income, and the income is recognized according to the actual level of investment in the projects. The subsidy income of NT$6,711 thousand and NT$10,801 thousand were recognized in 2021 and 2020 respectively, and the remaining amount of NT$675 thousand of the projects was returned on August 20, 2021.

29. Capital risk management

The purpose of the Company’s capital management policy is to protect the Company’s ability to continue as a going concern in order to provide returns to shareholders and benefits to other equity holders as much as possible. To ensure that the above objectives are achieved, the Company must maintain a large amount of capital to meet the needs of the expansion and upgrading of plant and equipment. Therefore, the capital management of the Company is to ensure that necessary financial resources and operation plans are available to meet the needs of working capital, capital expenditure, research and development costs, debt repayment and dividend expenditure in the next 12 months. The Company is not subject to other external capital requirements. 30. Financial Instruments

(1) Fair value information - financial instruments not measured at fair value December 31, 2021

December 31, 2021
Financial liabilities Financial liabilities measured at cost after amortization - Second domestic secured convertible corporate bonds - Third domestic unsecured convertible corporate bonds	Carrying amount		Fair value
		Level I	Level II	Level III	Total
	$ 193,050 32,989 $ 226,039	$ - - $ -	$ 232,106 37,854 $ 269,960	$ - - $ -	$ 232,106 37,854 $ 269,960

December 31, 2020

December 31, 2020
Financial liabilities Financial liabilities measured at cost after amortization - Second domestic secured convertible corporate bonds - Third domestic unsecured convertible corporate bonds	Carrying amount		Fair value
		Level I	Level II	Level III	Total
	$ 190,638 70,444 $ 261,082	$ - - $ -	$ 223,629 85,243 $ 308,872	$ - - $ -	$ 223,629 85,243 $ 308,872

In addition to the above, the management of the Company believes that the book value of financial assets and financial liabilities not measured at fair value approaches their fair value or their fair value cannot be reliably measured.

(2) Fair value information - financial instruments measured at fair value on a recurring basis

Fair value hierarchy

ring basis Fair value hierarchy
December 31, 2021 Financial assets at fair value through profit or loss, mandatorily measured at fair value Limited partnership funds Derivatives December 31, 2020 Financial assets at fair value through profit or loss, mandatorily measured at fair value Derivatives	Level 1 $ - - $ - Level 1 $ -	Level 2 $ - - $ - Level 2 $ -	Level 3 $ 7,237 180 $ 7,417 Level 3 $ 560	Total
				$ 7,237 180 $ 7,417 Total
				$ 560

There was no transfer between level I and level II fair value measurements in 2021 and 2020.

Adjustment of financial instruments measured at level 3 fair value 2021

2021
Financial assets Beginning balance Purchase Recognized as profit (loss) Ending balance 2020 Financial assets Beginning balance Recognized as profit (loss) Recognized as Other comprehensive income Ending balance	Measured at fair value through profit and loss Derivatives Limited partnershipfunds $ 560 $ - - 5,000 ( 380) 2,237 $ 180 $ 7,237 Measured at fair value through profit and loss Derivatives Limited partnershipfunds $ - $ - 560 - - - $ 560 $ -		Financial assets measured at fair value through other comprehensive income
			Equityinstrument
			$ - - - $ - Financial assets measured at fair value through other comprehensive income
		Derivatives $ - 560 - $ 560	Equityinstrument
			(	$ 3,586 - 3,586) $ -

Evaluation technology and input value of level 3 fair value measurement
(1) The fair value of derivative instruments - put/call options is estimated by using the binary tree convertible bond evaluation model, and the significant unobservable input value is the stock price volatility. When volatility in stock price increases, the fair value of such derivative instruments increases relatively.
(2) Domestic unlisted (non-OTC) stocks and limited partnership funds are evaluated by the asset method, and their fair value is determined by reference to the latest net value of the investee companies/investment objects and the financial and operating conditions of the observable companies; the fair value of such investments will increase as the liquidity discount decreases.

(3) Types of financial instruments

Types of financial instruments
Financial assets Measured at fair value through profit and loss Measured at cost after amortization (note 1) Financial liabilities Measured at cost after amortization (note 2)	December 31, 2021 $ 7,237 607,218 1,280,490	December 31, 2020
		$ - 467,514 1,155,154

Note 1: Balance refers to financial assets measured at amortized cost, including cash and cash equivalents, financial assets measured at amortized cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties, excluding tax rebates receivable) and refundable deposits
Note 2: The balance includes short-term loans, accounts payable (including those of related parties), other payables (including those of related parties), corporate bonds payable and long-term loans (including the part due within one year) and other financial liabilities measured at cost after amortization.
(4) Purpose and policy of financial risk management

The main financial instruments of the Company include equity investment, accounts receivable, accounts payable, corporate bonds payable, loans and lease liabilities. The financial management department of the Company provides services for all business units, coordinates the entry into domestic and international financial markets, and supervises and manages the financial risks related to the operation of the consolidated company by analyzing the internal risk report of the exposure according to the risk level and breadth. These risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

1. Market risk

The main financial risk caused by the operating activities of the Company to the consolidated company are the foreign currency exchange rate change risk (refer to (1) below) and the interest rate change risk (refer to (2) below).

(1) Exchange rate risk

Part of the cash inflow and outflow of the Company is in foreign currency, so it has the effect of natural hedging; the

exchange rate risk management of the Company is for the purpose of hedging, not for the purpose of profit.

Please refer to note 34 for the book value of monetary assets and monetary liabilities of the Company denominated in non-functional currency on the balance sheet date.

Sensitivity analysis

The Company is mainly affected by the exchange rate fluctuations of US dollar , EUR and RMB.

The Table below details the sensitivity analysis of the Company when the exchange rate of New Taiwan Dollar (functional currency) changes 1% against relevant foreign currencies. The sensitivity analysis only includes the monetary items that are in circulation, and the conversion at the end of the period is adjusted by 1% of the exchange rate change. The positive number in the Table below refers to the amount that will reduce the pre-tax net loss/increase the pre-tax net profit when the New Taiwan Dollar depreciates by 1% relative to each related foreign currency; when the New Taiwan Dollar appreciates by 1% relative to each related foreign currency, its impact on the pre-tax net profit will be a negative number of the same amount.

==> picture [354 x 43] intentionally omitted <==

Note: It mainly comes from the consolidated company’s cash and cash equivalents, accounts receivable, other receivables, short-term loans, accounts payable and other payables denominated in foreign currencies that are still outstanding on the balance sheet date without cash flow hedging.

The management believes that the sensitivity analysis cannot represent the inherent risk of exchange rate, because the foreign currency exposure on the balance sheet date cannot reflect the medium-term exposure. Therefore, the management will still conduct exchange rate risk management in accordance with the policies of the Company.

(2) Interest rate risk

Interest rate exposure is caused by the fact that entities in the Company borrow funds at fixed and floating rates and hold current and foreign currency bank deposits. The management of

the Company shall regularly monitor the interest rate risk. If required, necessary measures shall be taken for significant interest rate risks to control risks arising from the change of market interest rate.

The carrying amounts of the financial assets and financial liabilities of the Company subject to interest rate exposure on the balance sheet date are as follows:

Interest rate risks with fair value - Financial liabilities Interest rate risks with cash flow - Financial assets - Financial liabilities	December 31, 2021 $ 671,694 227,964 317,569	December 31, 2020
		$ 555,122 161,410 355,453

Sensitivity analysis

The following sensitivity analysis is based on the interest rate exposure of non-derivative instruments on the balance sheet date. For floating rate assets and liabilities, it is assumed that the amount of assets and liabilities outstanding on the balance sheet date is also outstanding during the reporting period.

If the interest rate increases/decreases by 0.1%, and all other variables remain unchanged, the net profit before tax of the Company in 2021 and 2020 will increase/decrease by NT$90 thousand and NT$194 thousand respectively; this is mainly due to the risk of interest rate risk exposure of the floating rate assets and liabilities of the Consolidated Company.

2. Credit risk

Credit risk refers to the risk of financial loss caused by default of contractual obligations of the counterparty. As of the balance sheet date, the maximum credit risk exposures (excluding collateral or other credit enhancement tools, and the maximum amount of irrevocable exposure) of the Company that may cause financial losses due to the failure of the counterparty and the financial guarantee provided by the Company mainly come from:

(1) Book value of financial assets recognized in the individual balance sheet.

(2) The maximum amount that the Company may be required to pay for the provision of financial guarantees, regardless of the likelihood of occurrence.

Operation related credit risk and financial risk are managed separately.

Operation related credit risk

In order to maintain the quality of accounts receivable, the Company has established operations related procedures for credit risk management.

The risk assessment of an individual customer is to consider many factors that may affect the customer’s ability to pay, including the customer’s financial status, the credit rating by credit rating agencies, the Company’s internal credit rating, the historical transaction records and current economic conditions. The Company will also use certain credit enhancement tools, such as advance payment, at the appropriate time to reduce the credit risk of specific customers.

Financial credit risk

The credit risk of bank deposits, fixed income investments and other financial instruments is measured and monitored by the financial department of the Company. Since the trading partners and performing parties of the Company are all banks and financial institutions with good credit, company organizations and government agencies which have no significant performance concern, there is no significant credit risk.

Liquidity risk

The objective of the Company on the management of the liquidity risk is to maintain the cash and cash equivalents, high liquidity securities and sufficient bank credit facilities required for operation, so as to ensure that the Company has sufficient financial flexibility.

The Company shall regularly review the inventory level, turnover rate of various types of inventory, credit conditions of customers and turnover rate of accounts receivable to control the size of working capital. The cash and cash equivalent level of the group remains moderately loose, and funds are raised in advance according to capital demand and a low debt ratio and financial flexibility are maintained, so as to effectively control the liquidity risk.

(1) Statement of liquidity and interest rate risk of non-derivative financial liabilities

The maturity analysis of the remaining contracts of non-derivative financial liabilities is based on the undiscounted cash flow (including principal and estimated interest) of financial liabilities on the earliest possible repayment date of the Company. Therefore, the series of bank loans that the Company may be required to repay immediately shall not take into account the probability of the bank executing the right immediately in the earliest period in the table below; the maturity analysis of other non-derivative financial liabilities shall be prepared according to the agreed repayment date.

December 31, 2021

Less than 1 month	3 months~1 year	1 to 5years	More than 5 years	Total
	$ 67,970 1,024 45,569 133,911 $ 248,474 3 months~1 year	$ - 2,455 158,850 193,050 $ 354,355 1 to 5years	$ - - 72,248 - $ 72,248 More than 5 years	$ 300,223 4,098 294,170 701,426 $ 1,299,917 Total

$ 94,861 140 - 120,067 $ 215,068	$ 64,881 434 52,669 53,191 $ 171,175	$ - 303 197,408 272,900 $ 470,611	$ - - 87,194 - $ 87,194	$ 254,664 1,060 358,452 566,344 $ 1,180,520

(2) Credit facilities

Credit facilities
Short-term bank credit facilities - Amount used - Amount unused	December 31, 2021 $ 648,102 421,898 $ 1,070,000	December 31, 2020
			$ 469,378 310,622 $ 780,000

31. Related party transactions

Except as disclosed in other notes, significant transactions between the Company and its related parties are as follows.

(1) Name and relationship of related parties

Name of related art Relationshi with the Com an p y p p y Adhesive Technologies, Inc. Corporate director of the Company （ Adhesive Technologies ） Wuxi More Tex Technology Co., Joint venture Ltd. (Wuxi More Tex) Tex Year Industrial Adhesives Pvt. Joint venture Ltd. （ Tex Year Industrial Adhesives ） Wood Glue Industrial Co., Ltd. The chairman of this company is a director of the Company Taicera Enterprise Company The chairman of this company is a （ Taicera ） director of the Company Vic Hung Petroleum Chemical Co., The chairperson of this company is Ltd the spouse of a director of the Company. JPT Cooperation (JPT Cooperation) The chairman of this company is a director of the Company (Non-related party since July 1, 2020) Taiwan Tex Year Association for Other related parties Social Welfare (Tex Year Association) Tex Year Fine Chemical Subsidiary (Guangzhou) Co., Ltd. (Tex Year Guangzhou) Wuxi Tex Year International Subsidiary Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Subsidiary Ltd. (Tex Year Jiangsu) Tex Year Europe Sp. z o. o. （ Tex Year Subsidiary Europe ） Tex Year (Hong Kong) Ltd. （ Tex Subsidiary Year (Hong Kong) ） Tex Year Vietnam Co., Ltd. （ Tex Subsidiary Year Vietnam ） Shanghai Chuangzhi Environmental Subsidiary Tech Co., Ltd. (Shanghai C&M ) Jiangsu C&M Filtration Solutions Subsidiary Ltd. Huzhou Yachuang Tech Ltd. Subsidiary

(2) Operating income

Operating income
Account items Sales revenue	Category/name of relatedparty Subsidiary Tex Year Guangzhou Tex Year Europe Tex Year (Hong Kong) Others Corporate director of the Company Adhesive Technologies Joint venture The chairperson of this company is the spouse of a director of the Company. Other related parties		2021 $ 131,366 89,388 42,255 59,008 322,016 73,345 9,928 6 10 $ 405,305		2020
					$ 62,884 39,316 32,445 34,582 169,227 105,455 7,415 - - $ 282,097

For related parties, except part of the products which have the same selling prices as those of general customers, the selling prices of other products are increased by a certain proportion according to the product type and cost and based on the individual credit conditions of related parties. (3) Purchase

Category/name of related

Purchase Category/name of related
party Subsidiary Tex Year Vietnam Tex Year Guangzhou Others The chairman of this company is a director of the Company		2021 $ 42,941 24,161 1,234 68,336 74 $ 68,410		2020
				$ 53,276 14,340 826 68,442 41 $ 68,483

For related parties, except part of the products which have the same selling prices as those of general customers, the selling prices of other products are increased by a certain proportion.

(4) Receivables from related parties

Account items Accounts receivable - related parties	Category/name of relatedparty Subsidiary Tex Year Guangzhou Tex Year Europe Tex Year (Hong Kong) Tex Year Jiangsu Others Corporate director of the Company Adhesive Technologies Joint venture	December 31, 2021 $ 22,477 20,682 12,015 6,842 838 62,854 16,092 3,436 $ 82,382	December 31, 2020	December 31, 2020
				$ 27,514 15,764 12,039 1,274 6,999 63,590 29,838 2,496 $ 95,924

For sales to the Company’s corporate directors, the Company’s terms of payment are 75 days T/T on delivery; for sales to subsidiaries, the Company’s terms of payment are 120 days per month; for sales to joint ventures and subsidiaries, the Company’s terms of payment are 90 days T/T on delivery.

Guarantees for the outstanding receivables from related parties are not collected.

(5) Payables to related parties

Account items Accounts payable - related parties	Category/name of relatedparty Subsidiary Tex Year Vietnam Tex Year Guangzhou Others	December 31, 2021 $ 17,307 3,371 615 $ 21,293	December 31, 2020	December 31, 2020
				$ 15,927 1,217 149 $ 17,293

The payment terms are 120 days per month for purchases from a subsidiary and 40 days per month for purchases from a company whose chairman is a director of the Company.

Guarantees for the balance of outstanding payables to related parties are not collected.

(6) Others

The balance of other receivables from related parties on the balance sheet date is as follows:

sheet date is as follows:
Category/name of related party Subsidiary Tex Year Jiangsu Others Joint venture	December 31, 2021 $ 52,761 2,763 55,524 411 $ 55,935	December 31, 2020
			$ 21,769 2,360 24,129 1,060 $ 25,189

Other receivables consist of loans of funds (see Table 1), payments for technical management services, payments for equipment purchased on behalf of the Company, and advances on behalf of the Company.

The balance of other payables to related parties on the balance sheet date is as follows:

is as follows:
Category/name of related party Subsidiary Tex Year Europe	December 31, 2021 $ 67	December 31, 2020
			$ -

Other income:

income:
Category/name of related party Subsidiary Tex Year(Hong Kong) Tex Year Vietnam Tex Year Jiangsu Others Joint venture Wuxi More Tex Tex Year Industrial Adhesives		2021 $ 1,930 1,293 1,324 - 4,547 - 1,179 1,179 $ 5,726		2020
				$ 1,751 1,654 699 4 4,108 5,475 1,201 6,676 $ 10,784

Other income is mainly income from the provision of technical management services to subsidiaries and joint ventures and is recorded as management and technical service fees.

(7) Rewards to key management

Rewards to key management
Short-term employee benefits Post-employment benefits		2021 $ 17,994 1,427 $ 19,421		2020
				$ 19,967 2,595 $ 22,562

The compensation of directors and other key management is determined by the Compensation Committee in accordance with individual performance and market trends.

32. Pledged assets

The following assets of the Company have been provided as collateral for bank loans and letters of credit:

bank loans and letters of credit:
Land Houses and buildings - net	December 31, 2021 $ 91,041 299,056 $ 390,097	December 31, 2020
			$ 91,041 309,016 $ 400,057

33. Significant contingent liabilities and unrecognized contractual commitments

Except as stated in other notes, the Company has the following major commitments and contingencies on the balance sheet date:

(1) Amount of unused letter of credit opened:

Amount of unused letter of credit	opened:
NTD USD JPY	December 31, 2021 $ - 101 -	December 31, 2020
		$ 41,249 7,131 254

(2) The Company appointed banks as the guarantor of performance, customs duty and goods tax bookkeeping. The guarantee amounts as of December 31, 2021 and 2020 were NT$12,000 thousand and NT$29,620 thousand respectively.
Information on foreign currency financial assets and liabilities with significant impact

The following information is summarized and expressed in foreign currencies other than the functional currencies of each entity of the Company. The disclosed exchange rate refers to the exchange rate converted from such foreign currencies to the functional currencies. Foreign currency assets and liabilities with significant impact are as follows:

December 31, 2021

December 31, 2021
Foreign currency Exchange rate Foreign currency assets Monetary items USD $ 8,030 27.6600 (USD:NTD) EUR 2,256 31.2300 (EUR`：`NTD) JPY 42,845 0.2409 (JPY:NTD) RMB 31,776 4.3450 (RMB:NTD) Non-monetary items Joint venture under the equity method VND 58,209,167 0.0012 (VND:NTD) INR 67,607 0.3698 (INR:NTD) HKD 21,267 3.5520 (HKD:NTD) PLN 18,579 6.7809 (PLN:NTD) Foreign currency liabilities Monetary items USD 2,625 27.6600 (USD:NTD) JPY 5,654 0.2409 (JPY:NTD) RMB 706 4.3450 (RMB:NTD)		Carrying amount
		$ 222,117 70,468 10,321 138,068 $ 440,974 $ 69,851 25,001 75,542 125,980 $ 296,374 $ 72,612 1,362 3,067 $ 77,041

December 31, 2020

Foreign currency Exchange rate Carrying amount Foreign currency assets Monetary items USD $ 7,347 28.0900 (USD:NTD) $ 206,380 EUR 1,543 34.5600 (EUR:NTD) 53,317 JPY 9,735 0.2725 (JPY:NTD) 2,653 RMB 11,654 4.3160 (RMB:NTD) 50,299 $ 312,649 Non-monetary items Share of income of subsidiary and joint venture under the equity method VND 57,657,564 0.0012 (VND:NTD) $ 69,190 INR 58,274 0.3837 (INR:NTD) 22,360 HKD 22,156 3.6240 (HKD:NTD) 80,294 PLN 18,124 7.5558 (PLN:NTD) 136,943 $ 308,787		Carrying amount

(Continue)

Foreign currency liabilities Monetary items USD JPY RMB	Foreign currency $ 1,058 25,387 317	Exchange rate 28.0900 (USD:NTD) 0.2725 (JPY:NTD) 4.3160 (RMB:NTD)		Carrying amount
				$ 29,715 6,918 1,366 $ 37,999

The realized and unrealized foreign currency exchange losses of the Consolidated Company in 2021 and 2020 were NT$5,949 thousand and NT$8,721 thousand respectively. Due to the wide variety of foreign currency transactions and functional currencies of the Group’s entities, it is impossible to disclose the exchange gains and losses by each foreign currency with significant impact.

35. Disclosure in notes

(1) Major transactions and (2) related information on reinvested enterprises:
Loan of funds to others (Table 1)
Endorsements/guarantees for others (Table 2)
Securities held at the end of the period (excluding investment in subsidiaries and affiliated enterprises and equity of joint ventures) (Table 3)
The cumulative purchase or sale of the same securities amounted to NT$300 million or more than 20% of the paid-in capital: none.
The amount of real estate acquired is NT$300 million or more than 20% of the paid-in capital: none.
The amount of real estate disposed of is NT$300 million or more than 20% of the paid-in capital: none.
The amount of purchases and sales with related parties reaches NT$100 million or more than 20% of the paid-in capital: (Table 4)
Receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital: none.
Engagement in derivatives transactions: None.
Information of invested company. (Table 5)
(3) Mainland China Investment Information:
Name of the invested company in mainland China, main business items, paid-in capital, investment method, capital emitted in and out,

shareholding ratio, investment profit and loss, period-end investment book value, repatriated investment profit or loss and investment limit in mainland China (Table 6)

Major transactions with the mainland China invested company directly or indirectly through a third region, and their prices, payment terms, unrealized profits and losses: (Table 1, Table 2 and Table 4)
- (1) Purchase amount and percentage, and period-end balance and percentage of related payables.
- (2) Amount and percentage of goods sold, and period-end balance and percentage of related receivables.
- (3) The amount of asset transaction and the profit or loss arising therefrom.
- (4) The period-end balance and the purpose of bill endorsement / guarantee or provision of collateral.
- (5) The maximum balance of financing, the period-end balance, the interest rate range and the total interest of the current period.
- (6) Other transactions that have a significant impact on the current income or financial position.
(4) Information of major shareholders: names of shareholders with a shareholding ratio of more than 5%, the number of shares held and the percentage. (Table 7)

36. Segment Information

The Company’s individual financial statements are prepared in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and are exempt from the presentation of segment information under International Financial Reporting Standard No. 8.

Tex Year Industries Inc. Loans of funds to others January 1 to December 31, 2021

Table 1

In thousand of New Taiwan Dollars, unless otherwise noted.

Serial No. (Note 1)	Lending company	Loan recipient	Transaction item (Note 2)	Related party or not	Maximum balance of the current period (Note 3)	Ending balance (Note 8)	Actual drawdown amount (Note 9)	Interest rate range	Loan nature (Note 4)	Business transaction amount (Note 5)	Reason for short-term financing (Note 6)	Provisions for bad debts	Collateral	Collateral	Loans and limits to individual objects (Note 7)	Loan and total limit (Note 7)	Remarks
													Name	Value
0 0 0 1 2	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Technology Corp. Tex Year (Hong Kong) Ltd.	Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co.,Ltd.	Other receivables - related party - other Other receivables - related party - other Other receivables - related party - other Other receivables - related party - other Other receivables - related party - other	Yes Yes Yes Yes Yes	$ 34,000 34,000 50,000 20,000 43,000	$ 34,000 34,000 50,000 20,000 43,000	$ 21,725 (RMB5,000 thousand) 30,415 (RMB7,000 thousand) - 15,208 (RMB3,500 thousand) -	3% 2.5-3% 2.5-3% 2.5-3% 2.5-3%	Short term financing funds Short term financing funds Short term financing funds Short term financing funds Short term financing funds	$ - - - - -	Operation turnover Operation turnover Operation turnover Operation turnover Operation turnover	$ - - - - -	`－` `－` `－` `－` `－`	`－` `－` `－` `－` `－`	$ 240,192 240,192 240,192 940,733 76,144	$ 480,384 480,384 480,384 940,733 76,144

Note 1: The description of the number column is as follows:

(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting from Arabic numeral 1.

Note 2: This field must be filled in for accounts receivable from affiliated enterprises, receivables from related parties, transactions with shareholders, prepayments, provisional payments, etc. if the nature is loan to others. Note 3: The maximum balance of loans to others in the current year.

Note 4: The loan nature shall be filled in if it is a business transaction or if there is a need for short-term financing.

Note 5: Where the nature of the loan is a business transaction, the amount of the business transaction shall be filled in. The business transaction amount refers to the amount of business transactions between the lending company and the loan recipient in the most recent year.

Note 6: If the nature of the loan is necessary for short-term financing, the reason for the loan and the purpose of the loan borrower shall be specified, such as loan repayment, purchase of equipment, business turnover, etc.

Note 7: In accordance with the Company’s Procedures for Loans to Others, the total amount of loans shall not exceed 50% of the Company's net value, but the total amount of loans to others due to the need for short-term financing between companies or with firms shall not exceed 40% of the Company's net value. The amount of individual loans to companies or firms that have the need for short-term financing shall not exceed 20% of the net value of the Company. When fund lending is needed due to short-term financing by foreign companies in which the Company directly or indirectly holds 100% of the voting shares, the loan amount is not subject to the restrictions above, but shall not exceed the net value of the Company. Tex Year Technology Corp. has a net loan amount of NTD 940,733 thousand, which is NTD 4,020 thousand different from the book amount of NTD 936,713 thousand held by the Company in Table 6; the difference is the unrealized gross profit on sales; Tex Year (Hong Kong) Ltd. has a net loan amount of NTD 76,144 thousand, which is NTD 602 thousand different from the book amount of NTD 75,542 thousand held by the Company in Table 6; the difference is the unrealized gross profit on sales.
Note 8: If a public company submits its lending to the board of directors’ meeting for resolution one by one in accordance with paragraph 1, Article 14 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the amount of the resolution of the board of directors’ meeting shall be included in the announced balance to disclose the risks it bears before the funds are lent out; if the funds are repaid later, the balance after repayment shall be disclosed to reflect the adjustment of risks. If the board of directors’ meeting of a public company authorizes the chairman of the board to extend loans in several trenches or recycle the loan balance within a certain limit in a year in accordance with paragraph 2, Article 14 of the Regulations, the loan limit approved by the board of directors’ meeting shall still be used as the balance for the public announcement and declaration. Although the funds will be repaid later, other loans may still be extended again, so the loan limit approved by the board of directors’ meeting shall still be used as the balance for the public announcement and declaration.

Note 9: It is converted according to the exchange rate between RMB and USD as of December 31, 2021.

Tex Year Industries Inc.

Endorsements/guarantees for others January 1 to December 31, 2021

Table 2

In thousand of New Taiwan Dollars, unless otherwise noted.

Serial No. (Note 1)	Endorsement guarantor Name of the Company	Endorsement/guarantee object	Endorsement/guarantee object	Limit of endorsement/guarant ee to a single enterprise (note 3)	Highest endorsement/guarant ee balance of the period (Note 4)	Ending endorsement/guarant ee balance (Note 5)	Actual drawdown amount (Note 6)	Secured by property Amount of endorsements/ guarantees	Ratio of accumulated endorsements/ guarantees to the net value of the latest financial statements(%)	Endorsement/ guarantee limits (Note 3)	Parent company to subsidiaries endorsement/ guarantee (Note 7)	Subsidiary to parent company endorsement/ guarantee (Note 7)	For Mainland China endorsement/ guarantee (Note 7)	Remarks
		Name	Relationship (note 2)
0 0 0 0 0 0	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc.	Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Europe Sp. z o. o. Tex Year Vietnam Co., Ltd. Shanghai Chuangzhi Environmental Tech Co.,Ltd.	2 2 2 2 2 2	$ 360,288 360,288 360,288 240,192 240,192 240,192	$ 52,248 ( RMB 12,000 thousand ) 85,500 ( USD3,000 thousand) 86,680 ( RMB 20,000 thousand ) 67,860 ( EUR2,000 thousand) 75,525 ( USD2,650 thousand) 1,744 (RMB 400 thousand)	$ 52,140 ( RMB 12,000 thousand ) 82,980 ( USD3,000 thousand) 56,485 ( RMB 13,000 thousand ) 62,460 ( EUR2,000 thousand) 73,299 ( USD2,650 thousand) 1,738 (RMB 400 thousand)	$ 19,994 ( USD 723 thousand ) 55,320 ( USD2,000 thousand) 59,747 ( RMB 13,751 thousand ) 62,460 ( EUR2,000 thousand) 11,841 ( USD 428 thousand ) 1,738 (RMB 400 thousand)	$ - - - - - -	4.34% 6.91% 4.70% 5.20% 6.10% 0.14%	$ 600,481 600,481 600,481 600,481 600,481 600,481	Y Y Y Y Y Y	N N N N N N	Y Y Y N N Y	Note 8 Note 8 Note 8

Note 1: The description of the number column is as follows:
(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting from Arabic numeral 1.
Note 2: There are 7 kinds of relations between the endorsement guarantor and the endorsement/guarantee object indicated as follows:
(1) A company with business contacts.
(2) A company in which the Company directly or indirectly holds more than 50% of the voting shares.
(3) A company that directly or indirectly holds more than 50% of the voting shares of the Company.
(4) Between companies in which the Company directly or indirectly holds more than 90% of the voting shares.
(5) A company with mutual guarantees in accordance with the contract which is in the same industry or a joint producer for the purpose of contracting the project.
(6) A company that has been endorsed/guaranteed by all the contributing shareholders in accordance with their shareholding ratios due to a joint investment relationship.
(7) Joint and several guarantees for the performance of a contract for the sale of pre-sold houses among companies in the same industry in accordance with the provisions of the Consumer Protection Act.
Note 3: The Company's "Procedures for Endorsements/Guarantees" stipulates that the total amount of external endorsements/guarantees shall not exceed 50% of the Company's net value, and the limit of endorsements/guarantees for a single enterprise is 20% of the Company's net value; for subsidiaries in which the Company directly or indirectly holds 100% of the shares, the limit is 30% of the Company's net value.
Note 4: The maximum balance of endorsements/guarantees for others in the current year.
Note 5: The amount approved by the board of directors’ meeting shall be filled in. However, if the board of directors’ meeting authorizes the chairman of the board to make a decision in accordance with paragraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies, it refers to the amount decided by the chairman of the board.

Note 6: The actual amount of the Company’s disbursement within the range of using the balance of the endorsements/ guarantees shall be entered.

Note 7: Y is required only for those which are endorsements/guarantees of a listed parent company to subsidiaries, endorsements/guarantees of subsidiaries to a listed parent company, and endorsements/guarantees in mainland China.

Note 8: Among them, RMB13,000 thousand is the credit line E.Sun Bank shared by Tex Year Fine Chemical (Guangzhou) Co., Ltd. and Tex Year Technology (Jiangsu) Co., Ltd.

Tex Year Industries Inc.

Securities held at the end of the period December 31, 2021

Table 3

In thousand of New Taiwan Dollars, unless otherwise noted.

Holding company	Types and names of securities (note 1)	Relationship with the securities issuer (note 2)	Account items		End ofperiod	End ofperiod		Remarks
				Unit/share (thousand shares)	Book amount (Note 3)	Shareholdin gratio(%)	Fair value
Tex Year Industries Inc. Tex Year Industries Inc.	Acute Touch Technology Co., Ltd Innolux Development Venture Capital Limited partnership	- -	Financial assets measured at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current	1,500 5,000	$ - 7,237	3.00 1.75	$ - 7,237	Note 4 Note 4

Note 1: The term “securities” in this table refers to the stocks, bonds, beneficiary certificates and securities derived from the above items within the scope of IFRS 9 “Financial instruments.” Note 2: If the issuer of securities is not a related party, this column is not required to be filled in.

Note 3: If measured at fair value, the book amount is the book balance after adjustment of fair value evaluation and deduction of loss provision; if not measured at fair value, the book amount is the book balance of cost after amortization (after deduction of loss provision).

Note 4: There is no pledge.

Note 5: For information about the interests of investment in subsidiaries, affiliated enterprises and joint ventures, please refer to Attachments 5 and 6.

Tex Year Industries Inc.

The amount of goods purchased or sold with related parties is NT$100 million or more than 20% of the paid-in capital: January 1 to December 31, 2021

Table 4

In thousand of New Taiwan Dollars, unless otherwise noted.

Purchase (Sales) company	Transaction counterparty	Relationship		Transaction situation	Transaction situation		Trading conditions are different from normal trading Situation and reasons	Trading conditions are different from normal trading Situation and reasons	Accounts and notes receivable (payable)	Accounts and notes receivable (payable)	Remarks
			Purchase (Sales)	Amount	Amounted to purchase (sales) Percentage %	Credit period	Unit price	Credit period	Balance	Accounted to total accounts and notes receivable (payable) Percentage %
Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Industries Inc. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd.	Tex Year Industries Inc. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd.	Parent company 100% subsidiary of the Company 100% subsidiary of the Company Parent company Associated company Associated company Associated company Associated company	Purchase Sales Sales Purchase Purchase Sales Purchase Sales	$ 131,366 ( 131,366 ) ( 158,091 ) 158,091 125,239 ( 125,239 ) 227,960 ( 227,960 )	4% ( 4% ) ( 4% ) 4% 3% ( 4% ) 6% ( 7% )	`－` `－` `－` `－` `－` `－` `－` `－`	Cost markup Cost markup Cost markup Cost markup Cost markup Cost markup Cost markup Cost markup	Credit on 120 days Credit on 120 days Credit on 120 days Credit on 120 days Credit on 120 days Credit on 120 days Credit on 120 days Credit on 120 days	( $ 22,477 ) 22,477 15,350 ( 15,350 ) ( 34,775 ) 34,775 ( 17,805 ) 17,805	( 5% ) 3% 2% ( 3% ) ( 7% ) 5% ( 4% ) 3%

Tex Year Industries Inc.

Name of investment company, location, etc.

January 1 to December 31, 2021

Table 5

In thousand of New Taiwan Dollars, unless otherwise noted.

Name of investment company	Name of investee	Location	Main business items	Original investment amount(note 1)	Original investment amount(note 1)	Held at end of theperiod	Held at end of theperiod	Held at end of theperiod	Investee Profit (loss) of the current period	Recognized in the current period Investment profit (loss)	Remarks
				End of the period	End of last year	Number of shares (1,000 shares)	Percenta ge %	Carrying amount (Note 2)
Tex Year Industries Inc. Tex Year International (SAMOA) Corp. Tex Year (Hong Kong) Ltd.	Tex Year International (SAMOA) Corp. Tex Year(Hong Kong)Ltd. Tex Year Vietnam Co., Ltd. Tex Year Industrial Adhesives Pvt. Ltd. Tex Year Europe Sp. z o. o. Tex Year Technology (SAMOA) Corp. Tex Year Technology (SAMOA) Corp.	Samoa Hong Kong Vietnam India Poland Samoa Samoa	Holding company Sales of hot melt adhesive, adhesive and various appliances Manufacturing and trading of hot melt adhesives and water adhesives Sales and manufacturing of hot melt adhesive, sales of adhesive and various appliances R&D, production and sales of hot melt adhesives Holding company Holding company	$ 782,923 ( USD 24,500 thousand ) 33,735 ( USD1,000 thousand ) 44,920 ( USD1,440 thousand ) 15,029 ( USD 500 thousand ) 145,537 ( PLN 17,600 thousand ) 782,923 ( USD 24,800 thousand ) 34,501 ( USD1,000 thousand )	$ 782,923 ( USD 24,500 thousand ) 33,735 ( USD1,000 thousand ) 44,920 ( USD1,440 thousand ) 15,029 ( USD 500 thousand ) 145,537 ( PLN 17,600 thousand ) 782,923 ( USD 24,800 thousand ) 34,501 ( USD1,000 thousand )	- 8,010 - 72 17.6 - -	100.00 100.00 80.00 50.00 80.00 96.08 3.92	$ 899,683 75,542 69,851 25,001 125,980 936,713 37,034	$ 22,048 ( 2,990 ) ( HKD (831) thousand ) 3,536 ( VND 2,947,758 thousand ) 6,899 ( INR 18,264 thousand ) 8,577 ( PLN 1,185 thousand ) 22,047 22,047	$ 22,048 ( 2,990 ) ( HKD (831) thousand ) 2,829 ( VND 2,358,206 thousand ) 3,450 ( INR 9,132 thousand ) 6,862 ( PLN 948 thousand ) 22,047 -	(Note 3) (Note 3)

Note 1: It is calculated according to the original investment cost. Note 2: The unrealized gross profit of goods sold has been deducted.

Note 3: The total net profit of this period of Tex Year Technology (SAMOA) Corp. is recognized under Tex Year International (SAMOA) Corp. Note 4: Please refer to Table 6 for relevant information of the investee companies in mainland China.

Tex Year Industries Inc.

Mainland China Investment Information

2021

Table 6

In thousand of New Taiwan Dollars, unless otherwise noted.

Investee in mainland China Name of the Company	Main business items	Paid-in capital (Note 1)	Paid-in capital (Note 1)	Investment mode	Beginning of the period Remitted from Taiwan Accumulated investment amount	Remitted out or recovered in Amount of investment	Remitted out or recovered in Amount of investment	Remitted out or recovered in Amount of investment	End of the period Remitted from Taiwan Accumulated investment amount	Investee Profit and loss of the current period	Shareholding ratio of direct or indirect investment of the Company	Recognized in the current period Profit and loss (note 10)	Investment at the end of the period Carrying amount	As of the current period Investment income repatriated	Remarks
						Outward remittance		Recovery
Wuxi More Tex Technology Co., Ltd. Deyuan Chemical Technology (Shenzhen) Co., Ltd. Deyuan Business Machine (Shenzhen) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Shanghai Chuangzhi Environmental Tech Co., Ltd. Jiangsu C&M Filtration Solutions Ltd. Huzhou Yachuang Tech Ltd.	Development, production and sales of hot melt adhesives and lubricants Development, production and sales of hot melt adhesives and lubricants Development and production of laminators, shredders, and manufacturing and trading of various appliances. R&D, production and sales of hot melt adhesives Sales of chemical products and adhesives R&D, production and sales of hot melt adhesives R&D and sales of environmental protection filter materials Environmental protection filter material research and development and manufacturing Environmental protection filter material research and development and sales, and rental of self-owned houses	$ 100,581 ( USD 3,000 thousand ) - - 389,798 ( USD 12,000 thousand ) 14,265 ( RMB 3,000 thousand ) 308,108 ( USD 10,000 thousand ) 124,839 ( RMB 27,298 thousand ) 107,160 ( RMB 23,340 thousand ) 32,595 ( RMB 7,500 thousand )		Note 4 `－` `－` Note 5 Note 6 Note 7 Note 6 Note 12 Note 12	$ 50,291 ( USD 1,500 thousand ) 34,507 ( USD 1,000 thousand ) 34,726 ( USD 1,000 thousand ) 389,798 ( USD 12,000 thousand ) - 308,108 ( USD 10,000 thousand ) - - -	$	- - - - - - - - -	$ - - - - - - - - -	$ 50,291 ( USD 1,500 thousand ) 34,507 ( USD 1,000 thousand ) 34,726 ( USD 1,000 thousand ) 389,798 ( USD 12,000 thousand ) - 308,108 ( USD 10,000 thousand ) - - -	( $ 4,834 ) ( RMB(1,116) thousand) - - 19,506 ( RMB 4,526 thousand ) ( 5,854 ) ( RMB(1,352) thousand) 9,516 ( RMB 2,198 thousand ) 12,424 ( RMB 2,869 thousand ) 8,644 ( RMB 1,996 thousand ) -	50.00% - - 100.00% 100.00% 100.00% 50.10% 100.00% 100.00%	( $ 9,620 ) ( RMB(2,221) thousand) - - 19,734 ( RMB 4,557 thousand ) ( 5,854 ) ( RMB(1,352) thousand) 11,648 ( RMB 2,690 thousand ) 4,051 ( RMB 957 thousand ) 8,644 ( RMB 1,996 thousand ) -	$ 61,364 - - 561,555 55,384 294,839 93,218 121,032 32,587	$ 108,323(note 2) None. None. None. None. None. None. None. None.	Note 9 and 10 Note 8 Note 8 Note 10 and 13 Note 10 Note 10 and 14 Note 10 and 11 Note 10 Note 10

Accumulated amount of investment remitted from T mainland China at the end of the period		aiwan to	Investment amo of t	unt approved by the Investment Commi he Ministry of Economic Affairs		ssion	In compliance with the mainland China investment limit set by the Investment Commission of the Ministry of Economic Affairs
$817,430(USD25,500 thousand)			$894,394(USD27,500 thousand)				(Note 3)

Note 1: It is calculated based on the original investment cost.

Note 2: Wuxi More Tex Technology Co., Ltd. issued a cash dividend of NT$64,839 thousand (RMB14,899 thousand) through the resolution of the board meeting on March 23, 2021, and then remitted it back to the Company through Tex Year Technology Corp. As of December 31, 2021, NT$108,323 thousand had been remitted back cumulatively.

Note 3: According to the letter of the Ministry of Economic Affairs referenced Jing-Shen No. 09704604680, it is calculated at 60% of the net value of the Company on December 31, 2021, except for the enterprises or subsidiaries of multinational enterprises in Taiwan approved and issued by the Industrial Development Bureau of the Ministry of Economic Affairs supporting documents of compliance with the operation scope of the operation headquarters. The Company obtained the certificate of compliance with the operation scope of the operation headquarters (letter referenced Jing-Shou-Gong Zi No. 10820409330) issued by the Industrial Development Bureau of the Ministry of Economic Affairs on April 17, 2019. The period of validity is from April 11, 2019 to April 10, 2022, so it is not subject to the limit.

Note 4: The Company invested NT$50,291 thousand through Tex Year International (SAMOA) Corp., a third-region investment enterprise, and then indirectly invested in Wuxi More Tex Technology Co., Ltd. through Tex Year International (SAMOA) Corp.

Note 5: The Company invested NT$389,798 thousand through Tex Year International (SAMOA) Corp., a third-region investment enterprise, and then indirectly invested in Tex Year Fine Chemical (Guangzhou) Co. through Tex Year International (SAMOA) Corp.

Note 6: Tex Year Fine Chemical (Guangzhou) Co., Ltd. directly invested in Wuxi Tex Year International Trading Co., Ltd. and Shanghai Chuangzhi Environmental Tech Co., Ltd. for NT$14,265 thousand and NT$80,975 thousand respectively.

Note 7: The Company invested NT$308,108 thousand through Tex Year International (SAMOA) Corp., a third-region investment enterprise, and then indirectly invested in Tex Year Technology (Jiangsu) Co., Ltd. through Tex Year Technology (SAMOA) Corp.

Note 8: As the operation of Deyuan Chemical Technology (Shenzhen) Co., Ltd. was incorporated into Tex Year Fine Chemical (Guangzhou) Co., Ltd. and the liquidation was completed in December 2012; Deyuan Business Machine (Shenzhen) Co., Ltd. completed the liquidation in September 2014. Note 9: It is the balance after the realized income from investments adjusted for sidestream transactions in the current period of NT$322 thousand (RMB74 thousand) and the impairment loss of NT$7,524 thousand (RMB1,738 thousand). Note 10: The investment income or loss recognized in the current period is based on the financial statements audited by the accountants.

Note 11: The income from investments recognized in the current period is the balance after deducting NT$2,174 thousand (RMB481 thousand) of investment premium amortization according to the shareholding ratio.

Note 12: Tex Year Fine Chemical (Guangzhou) Co., Ltd. directly invested in Shanghai Chuangzhi Environmental Tech Co., Ltd. and then indirectly invested in Jiangsu C&M Filtration Solutions Ltd. and Huzhou Yachuang Tech Ltd. through Shanghai Chuangzhi Environmental Tech Co., Ltd.

Note 13: The realized income from investments adjusted for sidestream transactions in the current period is NT$228 thousand (RMB53 thousand), and the book value of the investment at the end of the period is the balance after deducting the unrealized sidestream transactions and downstream transactions at the end of the period.

Note 14: The realized income from investments adjusted for sidestream transactions in the current period is NT$2,132 thousand (RMB492 thousand), and the book value of the investment at the end of the period is the balance after deducting the unrealized sidestream transactions and downstream transactions at the end of the period.

Tex Year Industries Inc. Information of major shareholders December 31, 2021

Table 7

Name of major shareholders	Equity	Equity
	Number of shares held	Shareholding ratio
Chin-Tsung Hsiao Tex Yard Investment Co., Ltd. Tex Yuan Investment Co., Ltd. Hsiang-Chih Hsiao	16,237,570 8,826,382 7,805,119 5,080,681	16.57% 9.01% 7.96% 5.19%

Note: The information of major shareholders in this table is calculated based on the information from the Taiwan Depository & Clearing Corporation on the last business day at the end of the current quarter, and the shareholders’ holdings of more than 5% of the Company's common shares and special shares that have completed the scripless registration and delivery (including treasury shares). There may be a difference between the number of shares recorded in the Company’s consolidated financial statements and the number of shares actually delivered for scrip less registration due to different calculation basis.

§DETAILS OF SIGNIFICANT ACCOUNTING ITEMS§

SERIAL NO./INDEX

ITEM Breakdown of assets, liabilities and equity Statement of Cash and Cash Equivalents Schedule 1 Schedule of notes receivable Schedule 2 Schedule of accounts receivable Schedule 3 Schedule of Inventory Schedule 4 Schedule of other current asset Note 16 Schedule of financial assets at fair value Schedule 5 through profit or loss - non-current Schedule of Changes to financial assets Note 9 measured at cost after amortization - non-current Schedule of Changes to investment under the Schedule 6 equity method Schedule of Changes to property, plant and Note 13 equipment Schedule of Changes to right-of-use assets Schedule 7 Schedule of Changes in Accumulated Schedule 8 Depreciation of Right-of-Use Assets Schedule of Changes to intangible assets Note 15 Schedule of other non-current asset Note 16 Schedule of short-term borrowings Schedule 9 Schedule of accounts payable Schedule 10 Schedule of other payable Note 20 Schedule of provision for liabilities - current Note 21 Schedule of other current liabilities Note 20 Schedule of corporate bonds payable Note 18 Schedule of long-term borrowings Schedule 11 Schedule of lease liabilities Schedule 12 Schedule of profit and loss items Schedule of operating income Schedule 13 Schedule of operating costs Schedule 14 Schedule of manufacturing costs Schedule 15 Schedule of operating expenses Schedule 16 Summary of employee benefits, depreciation Schedule 17 and amortization expenses incurred during the year by function

Tex Year Industries Inc.

Statement of Cash and Cash Equivalents December 31, 2021

Schedule 1

In thousand of New Taiwan Dollars, unless otherwise noted.

Item Cash on hand and working capital Bank check deposits Bank demand deposits Total	Abstract Including EUR2 thousand, RMB14 thousand and JPY861 thousand (note) Including USD3,258 thousand, EUR1,243 thousand, RMB15,764 thousand and JPY41,024 thousand (note)		Amount
			$ 615 69 220,167 $ 220,851

Note 1: Exchange rate USD$1=NTD$ 27.66

＝ EUR$1 NTD$ 31.23 ＝ RMB$1 NTD$ 4.345 ＝ JPY$1 NTD$ 0.241

Tex Year Industries Inc. Schedule of notes receivable December 31, 2021

Schedule 2 In thousand of New Taiwan Dollars.

Name Non-related party Customer A Others (Note)		Amount
		$ 4,355 15,604 $ 19,959

Note: The balance of each account does not exceed 5% of the balance of this account.

Tex Year Industries Inc.

Schedule of accounts receivable

December 31, 2021

Schedule 3

In thousand of New Taiwan Dollars.

Name Non-related party Customer A Customer B Others (Note) Subtotal Less: provision for impairment Related party Adhesive Technologies Tex Year Guangzhou Tex Year Europe Tex Year Jiangsu Tex Year (Hong Kong) Others (Note) Subtotal Less: provision for impairment		Amount
	(	$ 17,561 17,185 194,078 228,824 14,544) 214,280 16,092 22,477 20,682 6,842 12,015 4,274 82,382 - 82,382 $ 296,662

Note: The balance of each account does not exceed 5% of the balance of this account.

Tex Year Industries Inc. Schedule of Inventory December 31, 2021

Schedule 4

In thousand of New Taiwan Dollars.

Item Raw materials Materials Semi-finished products Finished products Merchandise inventory Less: Provisions for loss from inventory falling price and dead stock Total		Amount	Amount	Amount
		Cost $ 88,866 4,101 16,838 64,678 29,378 203,861 11,691) $ 192,170	Market price (Note)
	(			$ 92,323 4,102 82,236 75,201 44,015 $ 297,877

Note: The market value of finished goods, merchandise inventory and semi-finished goods is estimated at net realizable value, and the market value of raw materials is estimated at replacement cost.

Tex Year Industries Inc. Schedule of financial assets at fair value through profit or loss - non-current January 1 to December 31, 2021

Schedule 5 Name of financial instrument Innolux Development Venture Capital Limited partnership	Beginning Number of shares (1,000 shares) Fair value - $ -	Increase in theyear(note) Number of shares (1,000 shares) Amount 5,000$ 7,237	Increase in theyear(note) Number of shares (1,000 shares) Amount 5,000$ 7,237	Decrease for theyear Number of shares (1,000 shares) Amount - $ -	In thousand of New Taiwan Dollars, unless otherwise noted. End Number of shares (1,000 shares) Fair value Accumulated impairment Remarks 5,000$ 7,237 Not applicable No pledge matters.	In thousand of New Taiwan Dollars, unless otherwise noted. End Number of shares (1,000 shares) Fair value Accumulated impairment Remarks 5,000$ 7,237 Not applicable No pledge matters.	In thousand of New Taiwan Dollars, unless otherwise noted. End Number of shares (1,000 shares) Fair value Accumulated impairment Remarks 5,000$ 7,237 Not applicable No pledge matters.
	Number of shares (1,000 shares) -	Number of shares (1,000 shares) 5,000		Number of shares (1,000 shares) -	Number of shares (1,000 shares) 5,000
							No pledge matters.

Note: The increase in the year includes the recognition of a net income of financial assets at fair value through profit or loss of NT$2,237 thousand.

Tex Year Industries Inc.

Schedule of Changes to investment under the equity method January 1 to December 31, 2021

Schedule 6

In thousand of New Taiwan Dollars, unless otherwise noted.

Investee Tex Year International (SAMOA) Corp. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Industrial Adhesives Pvt. Ltd. Tex Year Europe Sp. z o.o.	Beginningbalance Number of shares (1,000 shares) Amount - $ 947,398 8,010 80,294 - 69,190 72 22,360 18 136,943 $ 1,256,185	Beginningbalance Number of shares (1,000 shares) Amount - $ 947,398 8,010 80,294 - 69,190 72 22,360 18 136,943 $ 1,256,185	Increase in theyear(note 1) Number of shares (1,000 shares) Amount - $ - - - - - - 83 - - $ 83	Increase in theyear(note 1) Number of shares (1,000 shares) Amount - $ - - - - - - 83 - - $ 83	Decrease in the year (notes 1 and 2) Number of shares (1,000 shares) Amount - ( $ 76,693 ) - ( 380 ) - ( 2,215 ) - - - ( 3,286) ($ 82,574)	Decrease in the year (notes 1 and 2) Number of shares (1,000 shares) Amount - ( $ 76,693 ) - ( 380 ) - ( 2,215 ) - - - ( 3,286) ($ 82,574)	Foreign operating institute Translation of financial statements Exchange differences $ 6,930 ( 1,382 ) 47 ( 892 ) ( 14,539) ($ 9,836)		Investment profit(loss) $ 22,048 2,990 ) 2,829 3,450 6,862 $ 32,199	Endingbalance	Endingbalance	Endingbalance	Amount $ 899,683 75,542 69,851 25,001 125,980 $ 1,196,057		Net equity (Note 3) $ 903,704 76,144 70,481 25,171 129,842 $ 1,205,342	Provide guarantee or Pledge situation
	Number of shares (1,000 shares) - 8,010 - 72 18		Number of shares (1,000 shares) - - - - -		Number of shares (1,000 shares) - - - - -					Number of shares (1,000 shares) - 8,010 - 72 18	Sharehol ding ratio(%) 100 100 80 50 80
						( ( ( ( (	( ( ( (	(								None. None. None. None. None.

Note 1: The change includes gross profit on sales (unrealized). Note 2: This year, Tex Year International (SAMOA) Corp. and Tex Year (Hong Kong) Ltd. distributed cash dividends of NT$74,299 thousand and NT$2,243 thousand, respectively. Note 3: The net equity in the investees was calculated based on the financial statements of the investees and the Company's percentage of ownership.

Tex Year Industries Inc. Schedule of Changes to right-of-use assets January 1 to December 31, 2021

Schedule 7 Item Buildings Office equipment Transportation equipment	Beginning balance $ 2,730 1,963 976 $ 5,669	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 2,864 $ - $ 5,594 - - 1,963 2,269 - 3,245 $ 5,133 $ - $ 10,802	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 2,864 $ - $ 5,594 - - 1,963 2,269 - 3,245 $ 5,133 $ - $ 10,802	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 2,864 $ - $ 5,594 - - 1,963 2,269 - 3,245 $ 5,133 $ - $ 10,802
				$ 5,594 1,963 3,245 $ 10,802

Tex Year Industries Inc.

Schedule of Changes in Accumulated Depreciation of Right-of-Use Assets January 1 to December 31, 2021

Schedule 8 Item Buildings Office equipment Transportation equipment	Beginning balance $ 2,020 1,444 772 $ 4,236	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 1,425 $ - $ 3,445 178 - 1,622 688 - 1,460 $ 2,291 $ - $ 6,527	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 1,425 $ - $ 3,445 178 - 1,622 688 - 1,460 $ 2,291 $ - $ 6,527	In thousand of New Taiwan Dollars. Increase during the year Decrease for the year Ending balance $ 1,425 $ - $ 3,445 178 - 1,622 688 - 1,460 $ 2,291 $ - $ 6,527
				$ 3,445 1,622 1,460 $ 6,527

Tex Year Industries Inc.

Schedule of short-term borrowings December 31, 2021

Schedule 9

In thousand of New Taiwan Dollars, unless otherwise noted.

Debt Bank E.Sun Bank Bank SinoPac Hua Nan Bank Mega Bank Mega Bank Shin Kong Bank Jih Sun Bank Cathay Bank Taiwan Business Bank Taiwan Business Bank Taiwan Business Bank Taiwan Business Bank Taiwan Cooperative Bank Taiwan Cooperative Bank Taiwan Cooperative Bank Total	Abstract Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit certificate loans Credit certificate loans Credit certificate loans Credit certificate loans Credit certificate loans Credit certificate loans Credit certificate loans	BorrowingPeriod December 8, 2021 ~ March 8, 2022 December 8, 2021 ~ January 7, 2022 December 23, 2021 ~ March 23, 2022 September 28, 2021 ~ March 25, 2022 October 29, 2021 ~ April 27, 2022 October 20, 2021 ~ January 20, 2022 November 26, 2021 ~ February 25, 2022 October 27, 2021 ~ April 25, 2022 October 7, 2021 ~ January 5, 2022 November 10, 2021 ~ February 8, 2022 November 18, 2021 ~ February 16, 2022 November 22, 2021 ~ February 20, 2022 November 22, 2021 ~ February 20, 2022 November 22, 2021 ~ February 20, 2022 December 23, 2021 ~ March 23, 2022	Annual interest rate(%) 0.95% 1.05% 1.02% 1.02% 1.02% 1.00% 1.00% 0.98% 0.78% 0.84% 0.84% 0.84% 0.98% 0.98% 1.09%		Amount $ 90,000 100,000 30,000 14,000 66,000 50,000 70,000 30,000 8,597 5,118 1,618 1,612 1,550 1,556 4,613 $ 474,664	Mortgage or guarantee
						None. None. None. None. None. None. None. None. None. None. None. None. None. None. None.

Tex Year Industries Inc. Schedule of accounts payable

December 31, 2021

Schedule 10 In thousand of New Taiwan Dollars.

Factory Non-related party Others (Note) Related party Subsidiary Total		Amount
		$ 185,362 21,293 $ 206,655

Note: The balance of each account does not exceed 5% of the balance of this account.

Schedule 11 Debt Bank Taiwan Cooperative Bank Taiwan Business Bank Taiwan Cooperative Bank Taiwan Business Bank Taiwan Business Bank Taiwan Business Bank Taiwan Business Bank Taiwan Cooperative Bank The Export-Import Bank of the Republic of China Hua Nan Bank	Tex Year Industries Inc. Schedule of short-term borrowings December 31, 2021 Term and repayment method Annual interest rate(%) Due within one year The period is from December 28, 2017 to December 28, 2022. Since January 2019, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% $ 14,550 The period is from December 28, 2017 to December 28, 2032. From January 2021, each month is one period, for 144 periods. The principal and interest are amortized according to the average method. 1.25% 834 The period is from June 28, 2018 to December 28, 2022. From January 2019, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% 10,977 The period is from September 14, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 5,000 The period is from October 8, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 6,667 The period is from November 6, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% - The period is from December 31, 2019 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 1,500 The period is from March 30, 2020 to March 29, 2025. From April 2021, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% 14,854 The period is from February 26, 2019 to February 25, 2024. From August 2020, every six months is one period, for totally 8 periods. The principal and interest are amortized according to the average method. 1.2350% 6,425 The period is from December 29, 2021 to December 28, 2023. From January 2022, one month is one period, for 24 periods. The interest was paid in each period, and the principal was repaid at one time when due. 1.23% - $ 60,807	Tex Year Industries Inc. Schedule of short-term borrowings December 31, 2021 Term and repayment method Annual interest rate(%) Due within one year The period is from December 28, 2017 to December 28, 2022. Since January 2019, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% $ 14,550 The period is from December 28, 2017 to December 28, 2032. From January 2021, each month is one period, for 144 periods. The principal and interest are amortized according to the average method. 1.25% 834 The period is from June 28, 2018 to December 28, 2022. From January 2019, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% 10,977 The period is from September 14, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 5,000 The period is from October 8, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 6,667 The period is from November 6, 2018 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% - The period is from December 31, 2019 to December 28, 2032. From January 2021, every one month is one period, for totally 144 periods. The principal and interest are amortized according to the average method. 1.25% 1,500 The period is from March 30, 2020 to March 29, 2025. From April 2021, each month is one period, for 48 periods. The principal and interest are amortized according to the average method. 1.40% 14,854 The period is from February 26, 2019 to February 25, 2024. From August 2020, every six months is one period, for totally 8 periods. The principal and interest are amortized according to the average method. 1.2350% 6,425 The period is from December 29, 2021 to December 28, 2023. From January 2022, one month is one period, for 24 periods. The interest was paid in each period, and the principal was repaid at one time when due. 1.23% - $ 60,807	In thousand of New Taiwan Dollars, unless otherwise noted. Amount Due after one year Total Mortgage or guarantee $ - $ 14,550 Please refer to Note 32 8,333 9,167 Please refer to Note 32 - 10,977 Please refer to Note 32 50,000 55,000 Please refer to Note 32 30,000 36,667 Please refer to Note 32 36,667 36,667 Please refer to Note 32 15,000 16,500 Please refer to Note 32 34,136 48,990 Please refer to Note 32 9,637 16,062 None. 40,000 40,000 None. $ 223,773 $ 284,580	In thousand of New Taiwan Dollars, unless otherwise noted. Amount Due after one year Total Mortgage or guarantee $ - $ 14,550 Please refer to Note 32 8,333 9,167 Please refer to Note 32 - 10,977 Please refer to Note 32 50,000 55,000 Please refer to Note 32 30,000 36,667 Please refer to Note 32 36,667 36,667 Please refer to Note 32 15,000 16,500 Please refer to Note 32 34,136 48,990 Please refer to Note 32 9,637 16,062 None. 40,000 40,000 None. $ 223,773 $ 284,580	In thousand of New Taiwan Dollars, unless otherwise noted. Amount Due after one year Total Mortgage or guarantee $ - $ 14,550 Please refer to Note 32 8,333 9,167 Please refer to Note 32 - 10,977 Please refer to Note 32 50,000 55,000 Please refer to Note 32 30,000 36,667 Please refer to Note 32 36,667 36,667 Please refer to Note 32 15,000 16,500 Please refer to Note 32 34,136 48,990 Please refer to Note 32 9,637 16,062 None. 40,000 40,000 None. $ 223,773 $ 284,580
		Due within one year $ 14,550 834 10,977 5,000 6,667 - 1,500 14,854 6,425 - $ 60,807	Due after one year $ - 8,333 - 50,000 30,000 36,667 15,000 34,136 9,637 40,000 $ 223,773
					Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 Please refer to Note 32 None. None.

Tex Year Industries Inc. Schedule of lease liabilities December 31, 2021

Schedule 12 Item Buildings Transportation equipment Office equipment Less: Lease liabilities due within one year	Abstract	In thousand of New Taiwan Dollars. Lease Period Discount rate Ending balance February 21, 2018 ~ February 21, 2024 1.27%~1.55% $ 2,150 January 11, 2018 ~ October 27, 2024 1.27%~1.55% 1,784 1.55% 46 3,980 ( 1,568) $ 2,412	In thousand of New Taiwan Dollars. Lease Period Discount rate Ending balance February 21, 2018 ~ February 21, 2024 1.27%~1.55% $ 2,150 January 11, 2018 ~ October 27, 2024 1.27%~1.55% 1,784 1.55% 46 3,980 ( 1,568) $ 2,412	In thousand of New Taiwan Dollars. Lease Period Discount rate Ending balance February 21, 2018 ~ February 21, 2024 1.27%~1.55% $ 2,150 January 11, 2018 ~ October 27, 2024 1.27%~1.55% 1,784 1.55% 46 3,980 ( 1,568) $ 2,412
			(	$ 2,150 1,784 46 3,980 1,568) $ 2,412

Tex Year Industries Inc. Schedule of operating income January 1 to December 31, 2021

Schedule 13	In thousand of New Taiwan Dollars.
Item	Amount
Hot melt adhesives	$ 916,250
Other Glue Products	223,743
Other products	427,122
Total operating income	1,567,115
Less: sales return	( 1,658 )
Less: sales discount	( 724)
Net operating income	$ 1,564,733

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Tex Year Industries Inc. Schedule of operating costs January 1 to December 31, 2021

Schedule 14

In thousand of New Taiwan Dollars.

Item
Purchase Cost
Product in the beginning
Add: imports for the year
Transfer from raw materials
Less: End of year goods
Transfer Fees and Others
Subtotal
Product and sales cost
Raw materials at the beginning of the year
Add: imports for the year
Less: Raw materials at the end of the year
Transfer Fees and Others
Direct sale of raw materials
Price difference allowance
Transfer out to commodity
Raw materials consumed during the year
Direct manual
Manufacturing Costs
Add: Semi-finished products at the beginning of
the year
Materials purchased this year
Transfer from finished goods
Less: Semi-finished products for sale
Transfer Fees and Others
Semi-finished products at the end of the year
Manufacturing Cost
Finished products at the beginning of the year
Add: imports for the year
Others
Less: Transfer to expenses and others
Semi-finished products transferred out
Finished products at the end of the year
Cost of goods sold of finished goods
Add: raw materials for sale
Semi-finished products for sale

Amount

$ 20,029
361,859
1,281
(
29,378 )

376

354,167
71,809
789,743
(
92,967 )
502
(
116,583 )
(
13,767 )
(
1,281)
637,456
37,919
101,281
17,910
46
3,649
(
6,531 )
(
334 )
(
16,838)
774,558
48,890
71,454
216
5,982
(
3,676 )
(
64,678)
832,746
116,583
6,531

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Item Gains from reversal of loss from inventory falling price and dead stock Cost of goods sold adjustments Less sharing of manufacturing costs Less: Deprocessing Inventory surplus Subtotal Operating cost	Amount
	( $ 1,201 ) ( 13,352 ) 4,131 ( 3,933 ) ( 1,189) 940,316 $ 1,294,483

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Tex Year Industries Inc.

Schedule of manufacturing costs January 1 to December 31, 2021

Schedule 15

In thousand of New Taiwan Dollars.

Item Depreciation Salary Expenses Utilities, fuel costs Processing Fee Consumables fee Others (Note) Total		Amount
		$ 24,780 29,455 13,351 7,716 6,710 19,269 $ 101,281

Note: The balance of each account does not exceed 5% of the balance of this account.

103

Tex Year Industries Inc. Schedule of operating expenses January 1 to December 31, 2021

Schedule 16 Item Salary Expenses Shipping Fee Import and export expenses Insurance premium Depreciation expenses Research and development expenses Others (Note) Total		Marketing expenses $ 57,206 37,700 9,346 6,686 1,863 - 26,167 $ 138,968	In thousand of New Taiwan Dollars. Administrativ e expenses Research and development expenses Total $ 39,922 $ 34,138 $ 131,266 236 120 38,056 - - 9,346 3,673 3,260 13,619 3,927 4,468 10,258 1,834 6,000 7,834 19,859 6,894 52,920 $ 69,451 $ 54,880 $ 263,299

Note: The balance of each account does not exceed 5% of the balance of this account.

104

Tex Year Industries Inc.

Summary of employee benefits, depreciation and amortization expenses incurred during the year by function

2021 and 2020

Schedule 17 In thousand of New Taiwan Dollars.

Employee benefit expenses Salary expense Labor and health insurance expenses Pension Costs Directors' remuneration Others Employee benefit expenses Depreciation expenses Amortization expenses				2021		Total $ 182,483 18,093 9,300 1,275 9,876 $ 221,027 $ 35,038 $ 2,404				2020
		Business Cost $ 59,592 6,887 2,699 - 3,442 $ 72,620 $ 24,780 $ 133		Business Expenses $ 122,891 11,206 6,601 1,275 6,434 $ 148,407 $ 10,258 $ 2,271				Business Cost $ 59,221 6,679 2,791 - 3,377 $ 72,068 $ 22,208 $ -		Business Expenses $ 121,813 10,003 7,627 1,757 7,029 $ 148,229 $ 9,352 $ 2,415		Total
												$ 181,034 16,682 10,418 1,757 10,406 $ 220,297 $ 31,560 $ 2,415

The number of employees in the current year and the previous year is 235 and 245 respectively, of which the number of directors who were not concurrently employees was 6.
The average employee benefit expense of the current year is NT$960 thousand; the average employee benefit expense of the previous year was NT$914 thousand.
The average employee salary cost of the current year is NT$797 thousand; the average employee salary cost of the previous year is NT$757 thousand.
The average employee salary cost adjustment of the current year increased by 5.29%.
The supervisor's remuneration of the current year is NT$225 thousand, and the supervisor's remuneration in the previous year was NT$621 thousand.
The Company sets salary standards for its managers and employees with reference to market conditions, the Company's operating conditions and organizational structure, and adjusts them as necessary in light of market salary dynamics, changes in the overall economic and industrial climate, and government regulations, without regard to age, gender, race, religion, political affiliation, or marital status. In order to motivate employees and management team, the Company's Articles of Incorporation stipulate that if there is any remaining balance of the Company's pre-tax income before the distribution of employees' remuneration and directors' and supervisors' remuneration to cover losses, 1% to 10% of the employees' remuneration and no more than 3% of the directors' and supervisors' remuneration should be appropriated. Employee compensation is paid in stock or cash to employees of the subordinate companies who meet the required conditions.

105

AI assistant

TEX YEAR — Audit Report / Information 2021

52420_rns_2021-11-15_c271ae18-708b-45a7-b73b-fef957c1f4d4.pdf

Tex Year Industries Inc.

INDEPENDENT AUDITOR’S REVIEW REPORT

Audit Opinion

Basis of Audit Opinion

Key Audit Matters

Other Matters

Responsibility of Management and Governance Unit to Individual Financial Statements

Responsibility of Accountants Auditing Individual Financial Statements

Notice to Readers

Tex Year Industries Inc. Individual Balance Sheet

Tex Year Industries Inc.

Individual Statement of Comprehensive Income January 1 to December 31, 2021 and 2020

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Tex Year Industries Inc.

Tex Year Industries Inc. Individual Cash Flow Statement

January 1 to December 31, 2021 and 2020

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Tex Year Industries Inc.

Notes to Individual Financial Statements

January 1 to December 31, 2021 and 2020

1. Company History and Business Scope

3. Application of New and Revised Standards and Interpretations

4. Summary of Significant Accounting Policies

1. Single acquisition

2. Derecognition

(2) Impairment on financial assets

2. Equity instrument

(15) Borrowing Cost

Main Sources of Uncertainty in Estimates and Assumptions

8. Financial assets measured at fair value through other comprehensive income Equity investments – non-current

9. Financial assets measured at cost after amortization

10. Notes receivable, accounts receivable and other receivables (including those of

(1) Accounts receivable

December 31, 2021

11. Inventory

12. Investment under the equity method

Summary information of individual unimportant joint ventures

13. Property, plant and equipment

14. Lease agreements

15. Intangible assets

16. Other assets

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18. Corporate bonds payable

19. Accounts payable

22. Post-retirement benefit plans

2. Certificates of right to convert bonds for shares

24. Revenue

25. Net profit of the current period

(7) Remuneration payable to employees, directors and supervisors

Estimated proportion

26. Income tax

January 1 to December 31, 2020

(5) Approved income tax situation

27. Earnings per share

28. Government subsidies

29. Capital risk management

December 31, 2020

(3) Types of financial instruments

1. Market risk

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

December 31, 2021

(2) Credit facilities

31. Related party transactions

(2) Operating income

Category/name of related

(4) Receivables from related parties

(6) Others

32. Pledged assets

33. Significant contingent liabilities and unrecognized contractual commitments

December 31, 2021

December 31, 2020

35. Disclosure in notes

36. Segment Information

TEX YEAR Audit Report / Information 2021