TONLIN - Audit Report / Information 2020

Independent Auditor's Report

To stakeholders of Tonlin Department Store Co., Ltd.

Audit opinions

We have audited the accompanying consolidated balance sheet ofTonlin Department Store Co., Ltd. and subsidiaries (collectively referred to as Tonlin Group) as at December 31, 2020 and 2019, and the consolidated statement of comprehensive income, consolidated statement of changes in shareholders'equity, consolidated cash flow statement, and notes to consolidated financial statements (including summary of significant accounting policies) for the periods from January 1 to December 31, 2020 and 2019.

In our opinion, all material disclosures of the consolidated financial statements mentioned above were prepared in accordance with Regulations Governi g the Preparation of Financial Reports by Securities Issuers and the version oflntemational Financial Reporting Standards, International Accounting Standards and interpretations there of approved by the Financial Supervisory Commission, and presented a fair view of the consolidated financial position of Tonlin Group as at December 31, 2020 and 2019, and consolidated business performance and cash flow for the periods January 1 to December 31, 2020 and 2019.

Basis of audit opinion

We conducted our audits in accordance with Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the generally accepted auditing principles. Our responsibilities as an auditor for the consolidated financial statements under the abovementioned standards are explained in the Responsibilities paragraph. All relevant personnel of the accounting firm have followed CPA code of ethics and maintained independence from Tonlin Group when performing their duties. We believe that the evidence obtained provide an adequate and appropriate basis for our opinion.

Key audit issues

Key audit issues are matters that we considered to be the most important, based on professional judgment, when auditing the 2020 consolidated financial statements ofTonlin Group. These issues have already been addressed when we audited and formed our opinions on the consolidated financial statements. Therefore we do not provide opinions separately for individual issues.

Key audit issues concerning the 2020 consolidated financial statements of Tonlin Group are as follows:

Impairment assessment of investment properties

As at December 31, 2020, Tonlin Group had investment properties located at Xinzhuang District that were valued at NT$ l,059,951,000, representing 17% of total consolidated assets and constituted a si gnificant part of consolidated financial statements. The management follows IAS 36 - "Impairment of Assets" and assesses investment properties for signs of impairment at the end of each reporting period. Assets that exhibit any sign of impairment will have recoverable amount estimated in order to determine the amount of impairment. However, considering that real estate prices are affected by several factors including government policy, economic cycle, and market su p ly/demand, and that impairment assessment requires subjective」udgments, major estimates, and assumptions from the management, we have identified impairment assessment of investment properties as a key audit issue. Accounting policy on impairment assessment of investment properties, uncertainties associated with accounting estimates and assumptions, and related disclosures can be found in Notes 4, 5, and 15 of consolidated financial statements.

The following audit procedures were taken in relation to the key audit issues identified above:

Understanding and testing the design of key internal control system that is relevant to impairment assessment of investment properties.
Obtaining the independent valuation report used by the management, and evaluating the professional capacity, competence, and objectivity of independent valuers.
Determining the rationality of the valuation method, parameters, and assumptions used in the valuation of investment property and comparing transaction prices of properties in the vicinity.
Consulting our own experts about the independent valuer's choice of valuation method as well as inputs and historical market data used in the calculation, and making appropriate comparisons to determine the rationality of the assessed price.
Taking count and verifying records of investment properties, and checking title deeds for the lands owned.

Correctness of retail commission income

Tonlin Group reported retail commission income ofNT$109,471,000 in 2020, representing 20% of operating revenues and was considered significant to the presentation of consolidated financial statements. The department store operates by having merchants set up individual retail departments, and Tonlin Group earns a certain percentage or amount from each transaction made by merchants. Under this arrangement, the Company first collects payment from customers then deducts merchant's share of the proceeds and recognizes the remainder as sales revenue. Due to the vast number of merchants and the different commission rates involved, calculation of retail commission income depends heavily on the use of computer system, which we consider to be a key audit issue. Disclosures relating to retail commission income and accounting policy can be found in Notes 4 and 21 of consolidated financial statements.

The following audit procedures were taken in relation to the key audit issues identified above:

and Understanding and randomly testing the effectiveness of internal control design execution for retail commission income.
Making sample checks on current year's Merchant Settlement Master Report to determine whether the commission rates configured on the computer system are consistent with contract terms; and making separate calculations using the commission rate to verify the correctness of retail commission income.

Other Matters

Tonlin Department Store Co., Ltd. has prepared standalone financial statements for 2020 and 2019, which we have audited and issued independent auditor's reports with unqualified opm10ns.

Responsibilities of the management and governing body to the consolidated fmancial statements

Responsibilities of the management were to prepare and ensure fair presentation of consolidated financial statements in accordance with "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the version oflntemational Financial Reporting Standards, International Accounting Standards and interpretations thereof approved and published by the Financial Supervisory Commission, and to exercise proper internal control practices that are relevant to the preparation of consolidated financial statements so that the consolidated financial statements are free of material misstatements, whether caused by fraud or error.

The management's responsibilities when preparing consolidated financial statements also involved: assessing the ability of Tonlin Group to operate, disclose information, and account for transactions as a going concern unless the management intends to liquidate Tonlin Group or cease business operations, or is compelled to do so with no alternative solution.

The governing body ofTonlin Group (including the Audit Committee) is responsible for supervising the financial reporting process.

Responsibilities of the auditor when auditing consolidated fmancial statements

T?� purposes of our audit were to o?t_ain _reasonable assurance of whe�her the consolidated financial statements were prone to material misstatements, whether due to fraud or er or, and to issue a report of our audit opinions. We considered assurance to be reasonable only if it is highly credible. However, audit tasks conducted in accordance with generally accepted auditing principles do not necessarily guarantee detection of all material misstatements within the consolidated financial statements. Misstatements can arise from fraud or error. Misstatements are considered material if the individual amount or aggregate total is reasonably expected to affect economic decisions of the consolidated financial statement user.

When conducting audits in accordance with generally accepted auditing principles, we exercised judgments and raised doubts as deemed professionally appropriate. We also performed the following tasks as an auditor:

1. Identifying and assessing risks of material misstatement within the consolidated financial statements, whether due to fraud or error; designing and executing appropriate response measures for the identified risks; and obtaining adequate and appropriate audit evidence to support audit opinions. Fraud may involve conspiracy, forgery, intentional omission, untruthful declaration, or breach of internal control, and our audit did not find any material misstatement where the risk of fraud is greater than the risk of error.

2. Developing the required level of understanding on relevant internal controls and designing audit procedures that are appropriate under the prevailing circumstances, but without providing opinion on the effectiveness of internal control system ofTonlin Group.

3. Assessing the appropriateness of accounting policies adopted by the management, and the rationality of accounting estimates and related disclosures made.

4. Forming conclusions regarding the appropriateness of management's decision to account for r

the business as a going concen, and whether there are doubts or uncertainties about the ability of Tonlin Group to operate as a going concern, based on the audit evidence obtained. We are bound to remind users of consolidated financial statements and make related disclosures if uncertainties exist in regards to the abovemenetioned events or circumstances, and amend audit opinions when the disclosures are no longer appropriate. Our conclusions are based on the audit evidence obtained up to the date of audit report. However, future

events or change of circumstances may still render Tonlin Group no longer capable of operating as a going concern.

5. Assessing the overall presentation, structure, and contents of the consolidated financial statements (including related footnotes), and whether certain transactions and events are presented appropriately in the consolidated financial statements.

6. Obtaining sufficient and appropriate audit evidence on financial information of equity accounted investments held by the group, and expressing opinions on consolidated financial statements. Our responsibilities as auditor are to instruct, supervise, and execute audits and form audit opinions on the group.

We have communicated with the governing body about the scope, timing, and significant findings (including significant defects identified in the internal control) of our audit.

We have also provided the governing body with a declaration of independence stating that all relevant personnel of the accounting firm have complied with auditors'professional ethics, and communicated with the governing body on all matters that may affect the auditor's independence (including protection measures)

We have identified the key audit issues after communicating with the governing body regarding the 2020 consolidated financial statements ofTonlin Group. These issues have been addressed in our audit report except for: 1. Ce1iain topics that are prohibited by law from disclosing to the public; or 2. Under extreme circumstances, topics that we decided not to communicate in the audit report because of higher negative impacts they may cause than the benefits they bring to public interest.

Deloitte & Touche

CPA Huang Hsiu-Chun

CPA Jeff Chen

Approval reference of the Securities and Futures Bureau

Tai-Tsai-Cheng-(VI)-0920123784

The Financial Supervisory Commission R.O.C. Approved No. Jin-Guan-Zhgeng-Shen-0990031652

March 22, 2021

Notice to Readers

For the convenience ofreaders and for infonnation pu11Joses only, the auditors'report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English and the Chinese version or any differences in inte1-pretation between the two versions, the original Chinese version shall prevail.

The auditors'report and the accompanying financial statements have been translated into English from the original Chinese version, and the English version is not audited by certified public accountant.

d Subsidiaries et

Tonlin Department u

Consoli

Unit: NTD thousand

			December 3 I, 2020	December 3 I, 2020			December 31, 2019	December 31, 2019
Code	Asset CURNT ASSETS		Amount		％		Amount	％
1100	Cash and cash equivalents(Notes 4 and 6)	＄	98,787		2	＄	106,177		2
1110 1136	Financial assets at FVTPL(Notes 4 and 7) F i nancal assetscarriedat cost af i i ter amortization - current(otes4		417,247		7		310,385		5
	and 9)		20,731				45,703
1150	Notes receivable(Notes 4 and 10)		385
1172 1175 1200	Accounts receivable(Notes 4 and 10) Lease receivable(otes 4 and 10) Other receivables(otes 4, 10 and 23)		2,639 3,430 10,001				2,751 2,710 8,545
130X 1470 llXX	Inventory(Notes 4, 5, 11 and 28) Prepayments and other curent assets Ttal curent assets		881,153 68 174 1502.547		14 1 24		938,295 70 579 L485J45	15 1 二
	non-curent assets
1517	Financial assets at FVTOCI - non-current(Notes 4 and 8)		66,457		1		77,497		1
1550	Equity-accounted investments(Notes 4 and 13)		162,327		3		145,070		2
1600	Property, plant, and equipment(Notes 4, 5, 14 and 28)		2,309,908		37		2,360,568		38
1760 1780 1840 1935 1920 15:	Investment property, net(Notes 4, 5, 15 and 28) Intangible assets(ote 4) Defred income tax assets(Notes 4, 5 and 23) Long-term lease receivable(otes 4 and 10) Refndable deposits Total non-curent assets		2,165,053 9,015 24,774 18,406 1 188 4,757.128		35 76		2,159,642 9,060 38,737 16,771 1 205 4.808.550		34 76
1: X	Ttal assets	$	6 252,615	調		$	6.293.695	嶧
Code	LIABILITIES AND EQUITY
	CURRENT LIABILITIES
2100 2110 2150 2170 2209	Short-term borrowings(otes 4, 11, 14, 15, 16 and 28) Short-ter bills payable(otes 4, 11, 14, 15, 16 and 28) Note payable Accounts payable(Note 17) Accrued expenses(ote 18)	$	1,022,423 165,736 17,261 96,659 37,683		6 3 - 2 1	$	1,202,923 166,894 21,483 67,412 40,707		9 3 l
2213	Equipment purchase payable(Note 14)		77,226				62,579
2219	Other payables		3,618				10,094
2230 2399 21: 2540 2572 2645 2640 25XX	Curent income tax liabilities(Notes 4, 5 and 23) Other curent liabilities(Note 21) Total current liabilities non-curent liabilities Long-term borowings(otes 4, 14, 15, 16 and 28) Defrred income tax liabilities(Notes 4, 5 and 23) Guarantee deposits received(Note 21) Net defned beneft liabilities - non-curent(Notes 4 and 19) Total non-current liabilities		21,646 49,928 l,492,l8O 2,116,000 217,878 51,115 l9,469 2,4O4,462		l 4 2 4 3 1 - 8 3 了		33,157 1 2,95 l l,6 l 8,2OO 2,006,000 217,857 53,221 24,854 2,3Ol,932		26 2 3 3 36
2:	Total liabilities		3,896,642		2 6		3,920, l 3 2		62
3110 3200 3310 3320 3350 3300 3400 3500 3XXX	Equity(otes 4, 19 and 20) Common share capital Additional paid-in capital Retained earings Statutor reserves Special reserves Unappropriated earings Ttal retained earnings Other equities Treasury stock Total equity Ttal liabilities and equity	( ( $	2,087,25O 5O6,964 470,347 495,507 l 7O,6O2 l, l 36,456 84,096 ) 1,283,54l) 2,3 63,03 3 6,259,675	二嶧、丿） 3 8 7 8 3 8 1 O 8 3 1 2 3 ( (		( ( $	2,087,25O 483,638 459,275 672,223 1 lO,7l8 L242,2l6 1 56,0OO ) 1,283,54l) 2,373,563 6,293,695	＿＿四（（	33 8 7 20 吣 m 38
	The accompanying notes are an integral part of the consolidated fnancial			statements.
Cha;,man:	Su CMen-1驪 PresIdent:Weng Hua心1函萌If	Vke Pres;dent Chen	Wen-lo圄Head ofAccountmg				HuangSu-Chh

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Tonlin Department

. and Subsidiaries rehensive Income

Consolidated State For periods from Janua

er 31, 2020 and 2019

Unit: NTD thousands, except EPS which is in dollars

			2020				2019
Code			Aount		％		Amount		％
4000	Operating revenues(Notes 4
	and 21)		$ 554,440		100		$ 650,176		100
5000	Operating costs(Notes 4, 11
	and 22)		190,011		＿丑		323,950		－
5900	Gross proft		364,429		66		326,226		50
6000	Operating expenses(otes 4,
	19, 22 and 27)		202,611		—荳		218,954		之
6900	Operating proft		161,818		－設		107,272		＿垃
	Non-operating income and
7100	expense Interest income(otes 4
	and 22)		580				1,475
7010	Other income (Notes 4
	and 22)		17,453		3		18,253		3
7020	Other gains and losses
	(Notes 4, 7, 14, 15 and
	22)		7,326		1		39,644		6
7050 7060	Financial costs(Note 22) Share of gainloss fom	（	35,110)	（	6 )	（	36,751)	（	6 )
	associated companies
	accounted using the
	equity method(Notes
	4 and 13)		4176		-J		3 473		—j
7000	Ttal non-operating
	income and
	expenses	（	5 575 )	(－J)			26,094		-4
7900	Proft befre tax		156,243		28		133,366		20
7950	Income tax expenses(Notes 4, 5 and 23)		42,084		_＿2		21581		＿立
8200	Curent net income		114,159		＿沮		111785		—乜

(To be Continued)

(Continued)

				2020			2019
Code				Amount	％		Amount	％
	Other comprehensive income
8310	Items that will not be
	reclassifed subsequently to proft
	or loss
8311	Remeasurement of
	defned beneft plan(otes 4 and
	19)		＄	38		（＄	1,334)
8316	Unealized gain on
	valuation of
	equity
	instrments at FVTOCI(otes
	4, 8, 13 and 20)			7,996	1		898
8349	Income tax on items
	not reclassifed ito proft and loss(otes 4 and
	23)	（		10.374)	（二）		11,614	三
8300	。ther
	comprehensive income - curent	（		2.340)	(_)		11178	二
8500	Total comprehensive income -
	curent		＄	~~111819~~	一	$	122.963	－
9710	Eargs per share(ote 24) Baic		＄	0.65		＄	Q.64
9810	Diluted		＄	0.65		＄	0.64

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

ChaIrman Su cesideot, Weng H cePresIdent Ch Head of Accounting, Huang Su-Chi 鸕鵬龘長重

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Tonlin Department °"画 .'墨d Subsidiaries
Consolidated St
a [市]
For periods from January I to December 31, 2020 and 2019
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Unit: NTD thousand

Other equity item (Notes 4, 8, 13 and 20}

				Additional paid-in	Additional paid-in										Unrealized
Code Al	Balance at Januar I, 2019	Common share capital Qotes 4 and 20) ＄ 2,087,250		＄	capital 但ote 20) 483,638	Statuto立「eseres ＄ 450,265		Retained earings但otes 4, I 9 and 20) Unapproprated S�ecial reseres earings ＄ 441,850 ＄ 239,383				$	Total 1,131,498	gains/losses on fnancial assets at FVTOCI ($ 168,245)		Treasur stock (ote2O) ($ 1283,541)			$	Tota1 equiw 2,250,600
Bl B3	Appropriation and distrbution of 2018 earings Provision fr statutor reseres Provision fr special reseres Total appropration and distribut10n of 2018 earings						9,010 9 010		230 373 230 373		9,010) 230 373 ) 239 383)
DI	2019 net income										111,785		111,785							111,785
D3	2019 other comprehensive income - afer tax										1 067)	(	I,067 )		l2,245					l l, l 7 8
D5	2019 total comprehensive income										110 718		l I O, 7 l 8		12,245					l22,963
Zl	Balance as at December 31, 2019		2,087,250		483,638		459,275		672,223		110,718		1,242,216		156,000)		1,283,541 )			2,373,563
Bl	Appropration and distbution of 2019 earings Provision fr stattor reseres						11,072				11,072)
B3	Reversal of special reserves								[76,716)		176,716
B5	Cash dividends on common shares Total appropration and distribution of2019 earings						11 072		[76716)		146 108) 19 536	( (	l46,lO8) l46,IO8)					( (		l46,IO8) l46,lO8)
Ml	Adjustent to additional paid-in capital fr
	dividends paid to subsidianes				23 326															23,326
Dl	2020 net income										114,159		114,159							I 14,159
D3	2020 other comprehensive income - afer tax										30		30	(	2,37O)			(		2,34O)
D5	2020 total comprehensive income										I 14 189		l l4,l89	(	2,37O)					l I l,8 l 9
Ql	Disposal of equity instuments at FVTOCI										73 841)	(	73,84l)		74,274					433
Zl	Balance as at December 31, 2020	＄	2 087 250	＄	506,964	＄	47Q 347	＄	495 5Q2	＄	l2Q,6Q2	$	l,l36,456	(＄	84,096)	($	l,2 8 3,5 4 l )		$	21363,033
Chairman: Su Chien-I鸝			The accompanying President Weng Hua-Li鷗			notes	are an itegal	par of the consolidated fnancial statements. Vice President: Chen Wen+。量						Head of Accounting:		Huang Su-Chih

Tonlin Department Consolidated ash Flows For periods from January 1 to December 31, 2020 and 2019

Unit: NTD thousand

Code				2020			2019
	CASH FLOWS FROM OPERTIG
	ACTNITIES
AOOOIO A0010 A0100 A0200 A0400	Pre-tax proft fr the current period Adjustments fr: depreciation expense Aorization Net loss (gain) on fnancial assets		＄	156,243 81,590 595		＄	133,366 85,019 525
A0900 A1200 A1300 A9900	and liabilities at FVTPL Financial costs Iterest income Dividend in come Real estate inventor devaluation	（（		10,551 35,110 580) 3,902)	（（（		10,853) 36,751 1,475) 5,211)
	loss						3,000
A22300	Share of gain fom associated companes accounted using the
A 500	equity method Loss (gain) on disposal of propery,	（		4,176)	（		3,473)
A 600	plant and equipment Expenses reclassifed fom property,			3,948	（		12)
A 700	plant, and equipment Loss on disposal of investment						350
A3700 A30000 A31115	properties Reversal of impairment on non- fnancial assets Changes in operting assets and liabilities Financial assets mandator to be	（		372 15,000)	（		14,000)
	carried at FVTPL	（		117,413)			49,278
A31130	Note receivable	（		385)			285
A31150	Trade receivable			112			12,378
A31240	Lease receivable	（		2,355)			3,286
A31180 A31200 A31230	Other receivables Iventories Prepayments and other curent	（		1,487) 57,142			2,593 222,879
	assets			2,405			13,428
A32130	Note payable	（		4,222)	（		52,283)
A32150 A32220	Accounts payable Accred expenses	（		29,247 3,713)	（（		34,451) 17,455)
A32180 A32230 A32240	Other payables Other curent liabilities Net defned beneft liabilities	（（		6,476) 36,977 5 347)	（		7,700 4,627 l 472)

(To be Continued)

(Continued)

Code			2020		2019
A33000 A33100	Cash infow fom operating activities Iterest received	＄	249,236 600	＄	434,780 1,248
A33300	Interest paid	（	35,579)	（	36,751)
A33200	Dividends received		3,902		5,211
A33500 AAAA	Income tax paid Net cash infow fom operating	（	49 974)	（	5 508)
	activities		168,185		398 980
BOOO 10	Cash fows fom investing activities Proceeds fom liquidation or capital reduction of fnancial assets at
B00040 B02700	FVTOCI Disposal (acquisition) of fancial assets caried at cost afer amortization Acquisition of propery, plant, and		3,273 24,972	'· \|4,207 20,058)
B02800	equipment Proceeds fom disposal of property, plant	（	29,139)	(	38,599)
B03700 B05400 B05500 B07100	and equipment Decrease in refndable deposits Acquisition of investment propery Proceeds fom disposal of ivestment propery Icrease (decrease) i equipment		17 38	'． \	137 596 535)
B07600 BBBB	purchase payable Dividends received fom associated companes Net cash infow (outfow) fom		17,537 3 115	（	157,231) 3,096
	investing activities		19 813	(	2O8,387)
COOIOO C01600 C01700 C03000	Cash fows fom fnancing activities Decrease in shor-ter borowings Proceeds fom long-ter borowings Repayments of long-ter borowings Decrease in garantee deposits received	( ( (	180,500) 2,804,000 2,694,000) 2,106)	( ( (	218,577) 2,574,000 2,539,000) 5,362)
C04500 cccc	Payment of cash dividends Net cash outfow fom「inancing	(	1 22,782)
	activities	(	l 95,388)	(	1 88,939)
EEEE	Net increase (decrease) in cash and cash
	equivalents	（	7,390)		1,654
EOO l 00	Opening balance of cash and cash equivalents		lO6,177		l O4,523
E00200 Closig balance of cash and cash equivalents $ 98,787 $ l 0 6, l 7 7 hc us g s n t a n u e m H g e t a nti n St al oUc . 1 c c n A Of a a fm d e 昌 d w c e h n t e f h 0 C tn rt e a p d · al es gr pr te Ce ·｀ · n a are 酯贈 s g e n t e 。 w ng t n n · 1 e 薑 s na rm hc

Tonlin Department Store Co., Ltd. and Subsidiaries Notes to consolidated financial statements

For periods from January 1 to December 31, 2020 and 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

OrgamzaUon and operations

Tonlin Department Store Co., Ltd. (the "Company") was founded in August 1982 and commenced business operations in November 1984. Taoyuan Branch was later established in September 1995 and commenced operation in November 1995. The Company primarily operates as a retail departmental store. The Company's shares have been listed for trading on Taiwan Stock Exchange Corporation since December 1996. The Company closed down its Taipei Branch on September 20, 1999 out of concern for profit yield, and leased out buildings previously occupied by Taipei Branch for income on October 1. The Company currently has lease contracts established with multiple counterparties including World Fitness Asia Limited (H.K.) Taiwan Branch. Please refer to Note 21 for details. Furthermore, to facilitate the Company's transformation into an integrated entertainment complex, the board of directors passed a resolution to remodel Taoyuan Branch on October 24, 2016, which later commenced trial operation on September 15, 2018 and officially opened for business on October 3, 2018. In addition to retaining top revenue-generating merchants, Taoyuan Branch also brought in n1ajor quick fashion, restaurant, sports, leisure, entertainment, and cinema brands to support its new transformation.

The consolidated financial statements are presented using the Company's functional currency(NTD).

II. The Authorization of Financial Statements

This consolidated financial statements were was passed during the board of directors meeting dated March 22, 2021.

III. Aoolication of New and Revised International Financial Reoortin!! Standards

Initial application of the amendments to the Regulations Governi g the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC) Adopting the amended version of FSC-approved IFRSs will not result in any
material change to the consolidated entity's accounting policies.
(I)

(II) FSC-approved IFRSs applicable in 2021

New, Revised or Amended Standards and Interpretations Amended "Extension of the Temporary Exemption from Applying IFRS 9" in IFRS 4 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 regarding "Interest Rate Benchmark Reform - Phase 2" Amendments to IFRS 16 regarding "Covid-19-Related Rent Concessions"

Effective date ofIASB announcement Effective on the published date Effective from reporting periods that begin after January 1, 2021 Effective from reporting periods that begin after June 1, 2020

The consolidated entity continues to evaluate how revisions of the above standards and interpretations affect its consolidated financial position and business performance as of the publication date of this financial report. Outcomes of these assessments will be disclosed upon completion.

(III) The IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC

Effective Date Issued by IASB (Note l) January 1, 2022(Note 2)

�retations "Annual Improvement for the Cycle of2018-2020" Amended "Updating the Index to the Conceptual Framework" in IFRS 3 Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

January 1, 2022(Note 3) Undetermined

January 1, 2023 January 1, 2023 January 1, 2023

IFRS 17 "Insurance Contracts" Amendments ofIFRS 17 Amendments to !AS 1 "Classification of Liabilities as Current or Non-current'' Amendments to IAS 1 regarding "Disclosure of Accounting Policies" Amendments to IAS 8 regarding "Defi血tion of Accounting Estimates" 細endments to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" Amendments to IAS 37 - "Onerous Contracts - Cost of Fulfilling a Contract"

January 1, 2023(Note 6)

January 1, 2023(Note 7)

」anuary 1, 2022(Note 4) 」anuary l, 2022(Note 5)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.

Note 2: The amendment of IFRS 9 applies to the exchange of financial liabilities or modified terms incurring in the annual reported periods since January 1, 2022; the amendment of"Agriculture" in IAS 41 applies to the measurement at fair value in the annual reported periods since January 1, 2022; The amendment of"Initial application oflFRSs" in IFRS 1 applies the annual reported periods since January 1, 2022 retrospectively.

Note 3: The amendment applies to the merges whose acquisition dates after the annual reported periods since January 1, 2022.
Note 4: The amendment applies to the property, plant and equipment achieving the expected operations by the management after January 1, 2021.
Note 5: The amendment applies to the contracts yet performing all obligations as of January 1, 2022.
Note 6: These amendments will be applied prospectively in reporting periods starting from January 1, 2023.
Note 7: These amendments will be唧lied to changes in accounting estimates and accounting policies that take place in reporting periods after January 1, 2023.

IV. Summa�Policies

(I) Statement of compliance

This consolidated financial report has been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and FSC-approved IFRSs.

(II) Basis of preparation

This consolidated financial statement has been prepared based on historical cost, except for financial instruments carried at fair value and net defined benefit liabilities calculated by deducting fair value of plan assets from present value of defined benefit obligation.

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

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 inputs are unobservable inputs for the asset or liability.

(III) Classification of current and non-current assets and liabilities

Current assets include:

Assets that are held mainly for the purpose of trading;

2. Assets that are expected to be realized within 12 months after the balance sheet date; and

3. Cash and cash equivalents (except for those that are intended to be swapped or settled against debt more than 12 months after the balance sheet date, and those with restricted uses).

Current liabilities include:

1. Liabilities that are held mainly for the purpose of trading;

2. Liabilities that are expected to be settled within 12 months after the balance sheet date; and

3. Liabilities where the repayment terms can not be extended unconditionally beyond 12 months after the balance sheet date.

Assets and liabilities that do not satisfy the above criteria are classified into non current assets or non-current liabilities.

The consolidated entity's construction activities operate at business cycles that are longer than one year. For this reason, assets and liabilities that arise i� relation to construction activities are distinguished between current and non-current portions based on normal business cycle.

(IV) Basis of consolidation

This consolidated financial statement includes the Company and entities that the Company has control over (i.e. subsidiaries). Subsidiaries have had financial statements adjusted to ensure alignment of accounting policies with those of the consolidated entity. All transactions, account balances, income, expenses, and losses between entities of the consolidated financial statement have been eliminated during consolidation.

Refer to Note 12 and Appendix 2 for details, shareholding percentages, and business activities of subsidiaries.

(V) Foreign currency

During preparation of financial statement, transactions denominated in currencies other than the functional currency (i.e. foreign currency transactions) are converted and recorded in the functional currency using exchange rate as at the transaction date.

Monetary foreign currency accounts are converted using closing exchange rates as at every balance sheet date. Exchange differences arising from settlement or translation of monetary accounts are recognized in profit and loss in the year occurred.

Foreign currency-denominated non-monetary items carried at fair value are converted using exchange rates as at the date of fair value assessment, with exchange differences recognized in current profit and loss. However, items that have fair value changes recognized in other comprehensive income shall also have exchange differences recognized in other comprehensive income.

Foreign currency-denominated non-monetary items carried at historical cost are converted using exchange rate as at the date of initial transaction. No further re calculation shall be made.

(VI) Inventories

Proprietary inventory is valued at the lower of cost or net realizable value; the lower of cost or net realizable value is compared by retail departments, except for groups of items within the same category. Net realizable value refers to the balance of estimated selling price less any costs required to sell inventory under normal circumstances; cost is calculated using the retail inventory method.

Construction-in-progress is stated at the lower of cost or net realizable value. Down payments are paid for the purchase of construction land or properties pending sale, and borrowing interests accrued during the construction period are capitalized and recognized as cost of inventory.

Construction land is reclassified into construction-in-progress when construction activities be郾n. Upon completion, the amount of construction-in-progress is reclassified into operating cost and properties pending sale based on percentages of sold and unsold areas.

In joint construction arrangements where the Company contributes land in exchange for units of properties pending sale, no gain/loss is recognized at the time of exchange, and income is recognized only when properties are sold to buyers. (VII) In vestments in Associates

An associated company is an organization in which the consolidated entity has significant influence, but does not meet the criteria of a subsidiary.

The consolidated entity accounts for associated companies using the equity method.

Under the equity method, associated companies are recognized at cost at initiation; after the acquisition date, book value may be increased or decreased by the consolidated entity's share of profits/losses and other comprehensive income in associated companies. Furthermore, changes in the equity of associated companies are recognized based on the consolidated entity's shareholding percentage.

When assessing impairments, the consolidated entity treats the entire account as a single asset and tests for impairment by comparing book value with recoverable amount. Any impairment losses recognized are presented as part of the book value of the investment without amortization. Reversal of impairment loss can be recognized up to the sum of subsequent increases in the recoverable amount of the investment. (VIII) Property, Plant and Equipment

Property, plant, and equipment are initially recognized at cost, and subsequently presented at cost after accumulated depreciation and impairment.

Property, plant, and equipment in progress are carried at cost less cumulative impairments. Cost includes services expenses and borrowing costs that satisfy the capitalization criteria. These assets are classified into appropriate categories of property, plant, and equipment upon completion and reaching the expected usable state, at which time depreciation will also begin.

No depreciation is provided on land, whereas property, plant, and equipment are depreciated using the straight line method over their useful lives. Depreciation is provided separately for each major component. The consolidated entity reviews estimated useful life, residual value, and depreciation method at least once at the end of each year. Impacts of changes in accounting estimates are applied prospectively.

Gains or losses arising from decommissioned property, plant, and equipment are calculated as the difference between disposal proceeds and the asset's book value, and are recognized through profit and loss in the year occurred.

(IX) Investment Property

Investment properties are real estate properties held for rental income or capital gain, or both. Investment properties include land held on hand that the Company has r yet to detemine their future uses.

Investment properties are initially recognized at cost (including transaction cost) and subsequently presented at cost after accumulated depreciation and impairment. Investment properties are depreciated on a straight-line basis.

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Difference between the disposal proceed and book value of decommissioned investment property is recognized in profit and loss.

(X) Intangible asset

1. Acquisition by separate purchase

Intangible assets that are acquired through separate purchase with limited useful life are recognized at cost at initiation, and subsequently presented at cost less accumulated amortization and impairment. Intangible assets are amortized on a straight-line basis over their useful lives. The estimated useful life, residual value, and amortization method are reviewed at least once at the end of each year. Impacts of changes in accounting estimates are applied prospectively. 2. Decommissioning

Difference between the net disposal proceed and book value of intangible assets removed is recognized in current profit and loss.

(XI)

Impairment of property, pl ant, equipment, inves皿ent properties, and intangible assets

The consolidated entity evaluates all property, plant, equipment, investment properties, and intangible assets for signs of impairment every balance sheet date. Assets that exhibit any sign of impairment will have recoverable amount estimated. If the recoverable amou�t can not be estimated on an individual basis, the consolidated entity will instead estimate recoverable amount for the entire cash-g�nerating unit.

Recoverable amount is the higher between "fair value less selling costs" and the "utilization value." If recoverable amount of an asset or cash-generating unit falls below its book value, the book value of that particular asset/cash-generating unit shall be reduced to the recoverable amount with impairment losses recognized through profit and loss.

When impairment losses are reversed on a later date, the book value of corresponding assets/cash-generating units shall be adjusted upwards to the recoverable amount. However, the increased book value shall not exceed the book value (less amortization or depreciation) of the asset/cash-generating unit before impairment losses were recognized in the first place. Reversal of impairment loss is recognized through profit and loss.

(XII)

Fi inancial instruments

Financial assets and financial liabilities are recognized on consolidated balance sheet when the consolidated entity becomes a party of the contract.

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When recognizing financial assets and liabilities at initiation, those that are not designated to be carried at fair value through profit and loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of financial assets/liabilities. Transaction costs that are directly attributable to the acquisition or issuance of financial assets/liabilities carried at fair value through profit and loss are recognized immediately through profit and loss.

1. Financial asset Routine transactions of financial asset are recognized on or removed from balance sheet based on principles of trade date accounting.

(1) Measurement category

Financial assets held by the consolidated entity are distinguished into the following categories: financial assets at FVTPL, financial assets carried at cost after amortization, and equity instruments at FVTOCI. A. Financial assets at FVTPL

Financial assets at FVTPL mainly comprise financial assets that are mandatory to be measured at fair value with fair value changes reco 卽i zed through profit and loss. Financial assets that are mandatory to be measured at fair value with fair value changes recognized through_ profit and loss include: equity instruments that are not specified to be carried at FVTOCI, and debt instruments that do not satisfy the criteria to be carried at cost after amortization or at FVTOCI.

Financial assets at FVTPL are measured at fair value, with dividends and interests recognized as other income. Gains and losses from remeasurement are recognized as other gains and losses. See Note 26 for details regarding the fair value method.

B. Financial assets carried at cost after amortization

Financial asset investments that satisfy both the following conditions are carried at cost after amortization:

a. The financial asset is held for a specific business model, and the purpose of which is to hold the financial asset and collect contractual cash flow; and
b. The contractual terms give rise to cash flows on specific dates, and the cash flows are intended solely to pay principals and interests accruing on outstanding principals.

1 9

For financial assets car ied at cost after amortization (including cash and cash equivalents, accounts receivable and other receivables carried at cost after amortization etc), the effective interest method is used to determine the book value at initiation. They are subsequently presented net of impairments and amortization. Any gain/loss from cur ency exchange incurred on these financial assets is recognized through profit and loss.

Except for the two circumstances explained below, interest income is calculated by multiplying the book value of financial asset with effective interest rate:

a. Acquisition or creation of credit-impaired financial assets; in which case interest income is calculated by multiplying the cost of financial assets after amortization with credit-adjusted effective interest rate.
b. Financial assets that were not credit-impaired at the time of acquisition or origination, but become credit-impaired on a later date; in which case interest income is calculated by multiplying the cost of financial assets after amortization with the effective interest rate starting from the reporting period after credit impairment.

Financial assets are considered credit-impaired if the issuer or debtor exhibits major financial distress, default, likely bankruptcy, financial restructuring, or any financial difficulty that may render the financial asset no longer available on the active market.

Cash equivalents include time deposits with less than 3 months until maturity that are highly liquid, readily convertible into defined amounts of cash, and less prone to the risk of fair value changes. Cash equivalents are held for the purpose of meeting short-term cash commitments.

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C.Equity instruments at FVTOCI

For equity instruments that are neither held for trading nor recognized/received as a consideration for business acquisition, the consolidated entity is entitled to an irrevocable option to account them at FVTOCI at initial recognition.

Equity instruments at FVTOCI are measured at fair value; subsequent fair value changes are recognized through other comprehensive income and accumulated under other equity. At the time of disposal, cumulative gains/losses are transferred directly into retained earnings and not reclassified into profit and loss.

Dividends from equity instruments at FVTOCI are recognized in profit and loss when the entitlement to receive is confirmed, unless the dividends clearly represent a partial recovery of the investment cost.

(2) Impairment of financial assets

On each balance sheet date, the consolidated entity assesses impairment losses on financial assets carried at cost after amortization (including accounts receivable) and operating lease receivable based on expected credit losses.

Accounts receivable and operating lease receivable have loss provisions recognized based on expected credit losses over their duration. For other financial assets, the Company first evaluates whether there is significant increase in credit risk since initial recognition. If there is no significant increase in credit risk, loss provisions are recognized based on 12-month expected credit loss; if there is significant increase in credit risk, loss provisions are recognized based on expected credit loss over the remaining duration.

Expected credit losses are determined as average credit loss weighed against the risk of default. 12-month expected credit losses represent the amount of credit losses that the financial instn皿ent is likely to incur due to default event in the next 12 months, whereas expected credit losses for the remaining duration represent the amount of credit losses that the financial instrument is likely to incur due to all possible default events for the remaining duration.

All impairment losses on financial assets are recognized usmg allowance accounts, which reduce book value of the corresponding financial asset.

(3) Removal of financial assets

Financial assets can be removed from balance sheet only if all contractual cash flow entitlements have ended, or if the asset has been transferred with virtually all risks and returns assumed by another party.

Difference between the book value of financial asset carried at cost after amortization and the amount of consideration received for the asset's removal is recognized through profit and loss. When an equity instruments at FVTOCI is removed from balance sheet, the amount of cumulative gain/loss is transferred directly into retained earnings and is not reclassified to profit and loss.

2 . Equity instrument

Equity instruments issued by the consolidated entity are classified into equity depending on the terms of the underlying contract and the definitions of equity used.

Eq�ity instruments issued by the consolidated entity are recognized at the amount of proceeds received net of direct issuing costs.

Buyback of the Company's own equity instruments is recognized and deducted under equity. Acquisition, sale, issuance, or retirement of the Company's own equity instruments is not recognized through profit and loss. 3. Financial liability

(1) Subsequent measurement

All financial liabilities are carried at cost after amortization using the effective interest method.

(2) Removal of financial liabilities

When a financial liability is removed, the difference between book 叮ed value and the consideration paid (including any non-cash assets transfe or any additional liabilities borne) is recognized through profit and loss.

(XIII)

R evenue recognit10n

The consolidated entity first identifies performance obligations in a contract it signs with customer, then divides and allocates the transaction sum to various obligations, and recognizes revenue when each obligation is fulfilled.

Revenue from sale of merchandise

Revenue from sale of merchandise is generated from retail sale of goods in the departmental store, and is recognized as income at the time of customer's purchase. Proceeds collected in advance from the issuance of departmental store vouchers are recognized as contractual liabilities until the vouchers are redeemed by customers.

Customer loyalty program represents reward points granted to customers for merchandises sold that customers can spend to purchase merchandise in the future, and are a form of customers'entitlement. At the time of transaction, a percentage of the sales proceeds received or receivable is treated as reward point and recognized as contractual liability; this liability is reclassified into income when reward points are redeemed or voided on a later date.

Sales proceeds of real estate properties sold under normal terms of business are collected in instalments. Contractual liabilities are recognized at the time the proceeds are collected, which are later recognized as income upon completion and delivery of each property to the respective buyer.

(XIV) Leases

The consolidated entity evaluates whether a contract meets the criteria of (or includes arrangements characterized as) lease on the day of contract establishment. Where the consolidated entity_訌e_lessor

The consolidated entity does not have any lease arrangement that involves a transfer of virtually all risks and returns associated with ownership of the underlying asset to the lessee. All leases are classified as operating lease.

In an operating lease arrangement, the amount of proceeds received net of incentives are recognized as income on a straight-line basis over the lease tenor. Lease negotiation with a lessee is accounted as a new lease from the effective date of lease amendment.

(XV) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of qualified assets are treated as part of an asset's cost until virtually all activities needed to bring the asset to its designated usable or salable state have been completed.

For specific-purpose loans undertaken for qualified capital spending, any investment income earned on short-term investment of the proceeds before incurring the capital spending is deducted from capitalized borrowing costs.

Except for the above, all other b 。 rrowing costs are recognized through profit and loss in the year occurred.

(XVI) Employee benefits

1. Short-term employee benefits

Liabilities associated with short-term employee benefits are measured at non-discounted amount of cash that the Company expects to pay in exchange for employees'service.

2. Post-employment benefits

For defined contribution plans, the amount of contributions that has to be made to pension funds over the duration of employees'service is recognized as expense.

For defined benefit plans, the cost of benefit (including service cost, net interest, and effect of remeasurement) is estimated using the Projected Unit Credit Method. Service costs (including current and previous service costs) and net interests on net defined benefit liabilities (assets) are recognized as employee welfare expense at the time incurred or whenever the plan is amended or curtailed. Effects of remeasurement (including actuarial gains/losses, change in plan asset limits, and return on plan assets net of interest) are recognized under other comprehensive income and added to retained earnings at the time of occurrence. This amount is not reclassified into profit and loss in subsequent periods.

Net defined benefit liabilities(plan assets) represent the shortfall (surplus) of contributions made to the defined benefit plan. Net defined benefit plan assets may not exceed the amount of contributions refundable or the present value of reducible contributions in the future.

(XVII) Income tax

The income tax expense represents the sum of the tax currently payable and defe[r] red tax.

1. Tax currently payable

The consolidated entity reports current period income (loss) and calculates income tax payable (refundable) according to tax laws stipulated by the local tax jurisdiction.

Pursuant to the Income Tax Act of the Republic of China, undistributed earnings are subject to additional income tax, which is recognized in the year shareholders resolve to retain the earning.

Adjustments to income taxes reported in previous years are recognized as income tax expenses in the period the adjustment is made.

2. Deferred tax

Deferred income taxes are tax effects of temporary differences, given rise by the different book value of assets and liabilities presented in the financial statement and those reported for tax filing.

Tax impacts arising from taxable temporary differences are recognized as deferred income tax liabilities; deferred income tax assets are recognized under the condition that the Company is very likely to generate taxable income in the future to offset deductible temporary differences or losses carried forward.

Temporary differences that were not initially recognized as deferred income tax assets are also subject to re-assessment on every balance sheet date. These differences may be recognized to increase the book value of deferred income tax asset if the Company considers it highly likely to generate taxable income for full or partial recovery of such asset in the future. Temporary differences that were not initially recognized as deferr�d income tax assets are also subject to re assessment on every balance sheet date. These differences may be recognized to increase the book value of deferred income tax asset if the Company considers it highly likely to generate taxable income for full or partial recovery of such asset in the future.

Deferred income tax assets and liabilities are estimated using expected tax rate applicable at the time the liability/asset is expected to be settled/realized. This expected tax rate is determined based on the tax rate and tax laws prevailing as at the balance sheet date. Deferred income tax liabilities and assets represent tax impacts of the method by which the consolidated entity expects to recover/settle the book value of its assets and liabilities as at the balance sheet date.

3. Current and deferred income tax

Current and deferred income taxes are recognized through profit and loss, except for source accounts that are recognized under other comprehensive

income or directly as other equity item, where current and deferred income taxes are also recognized under other comprehensive income or directly as equity. V. S_g_urces of uncertaint�g judgments, estimates, and assumotions When applying accounting policies, the management is required to make judgments, estimates, and assumptions based on historical experience or other relevant factors in situations where information cannot be easily obtained from available sources. The actual outcome may differ from initial estimates.

The consolidated entity will take into consideration the economic impact of COVID19 when ma如ng major accounting estimates; meanwhile, the management will continually examine its estimates and basic assumptions. If a revision of accounting estimate affects only the current period, the effect shall be recognized only for the current period. If a revision of accounting estimate affects current and future periods, the effect shall also be recognized for current and future periods.

Sources of uncertaint�tions

(I) Income tax

As at December 31, 2020 and 2019, the Company had deferred income tax assets with book value of NT$24,774,000 and NT$38,737,000, respectively. Due to unpredictability of future profitability, the consolidated entity had NT$174,407,000 and NT$155,308,000 of tax losses as at December 31, 2020 and 2019, respectively, that were not recognized as deferred income tax asset. Realization of deferred income tax asset depends largely on whether the Company is able to generate sufficient profits or taxable temporary differences in the future. If actual profits are less than previously expected, there may be significant reversal of deferred income tax assets. This reversal is recognized in profit and loss in the period occurred.

(II) Impairment of inventory

Net realizable value of inventory is the estimated selling price less all estimated costs needed to completion and sale under normal circumstances. These estimates are made based on current market condition and previous experiences selling goods of similar nature. A change of market condition may significantly affect the outcome of such estimate.

(III) Impairment of tangible assets

When assessing asset impairment, the consolidated entity relies on the use of subjective judgment and determines the level of independent cash flow, useful life, and future income/expenses/losses for specific asset groups after taking into consideration the method in which assets are used and industry characteristics. Any change of economic circumstances and any change in estimate caused by the Company's strategies may result in significant impairment in the future.

VI. Cash and cash eguivalents

Cash and cash eguivalents
Pet cash and cash on hand Check and demand (curent) deposit	December 31, 2020 $ 294 98,493		December 31, 2019 $ 294 87,086
Cash equivalents Tie deposits with an orgial tenor of 3 monts or less.				18.797
	$	98,787	$	1O6,177

Range of market interest rates applicable to bank deposits as at the balance sheet date is shown below:

VII.

date is shown below:
	December 31, 2020		December 31, 2019
Cash in bans	0.01	%~0.05%	0.01	%�4.60%
Financial assets at FVTPL- Curent
	December 31, 2020		December 31, 2019
Financial assets designated as atFVTPL Non-dervative fnancial assets
- TWSE, TPEX, and Emerging Stock Market shaes - Fund benefcia cerifcates	$	120,667 251,446	$	95,825 190,084
- Foreign shares - Cororate bonds		6,688 23,697		8,006 2,278
- Bonds		14.749		14.192
	$	4l7,247	$	3 1 O, 3 8 5

Financial assets at FVTPL- Current

Please refer to Note 22 for gains/losses on financial assets at FVTPL.

VIII. Financial assets at FVTOCI

Financial assets at FVTOCI
Non-current	December 31, 2020		December 31, 2019
Domestic investments
Emerging Stock Market shares Common shares of Julien's International Entertainment Group Co.,
Ltd. Unlisted shares Common shares of WK Technology Fund VII Common shares of WK Technology Fund VIII Common shares of WK Technology Fund Common shares of WK Technology Fund V Common shares of Harbinger Venture Capital Corp. Subtotal	＄	4,563 14,100 13,300 9,315 10,175 51 453	＄	8,063 14,100 13,300 12,815 10,175 58,453
Foreign investments Unlisted shares Common shares of Wholesome Biopharm Pty
Ltd. Common shares of Fortune Technology Fund II Ltd. Common shares of KDH		14,630 374		14,630 4,414
Design CO., Ltd. Preferred shares of Phyto
Ceutica Inc.
Common shares of Budworth
Investment Limited
Subtotal		l5,0O4		19,044
	$	66A57	$	77,497

The consolidated entity invests in the above instruments by adopting a medium-long term strategy, and expects to profit over the long term. Management of the consolidated entity is of the opinion that recognizing short-term fair value changes through profit and loss on such investments does not conform with the long-term investment plans described above, and therefore has chosen to account such investments at FVTOCI.

Investee - Fortune Technology Fund II Ltd. made a cash refund of share capital in November 2020, and the consolidated entity recovered NT$2,840,000 of investment at the prevailing shareholding percentage.

Investee - Yo Fu Investment Co., Ltd. completed the liquidation procedure in January 2020 and refunded NT$433,000 of capital.

Investee - Julien's International Entertaimnent Group Co., Ltd. was registered on Emerging Stock Market on January 11, 2019.

Investees - Harbinger Venture Capital Corp. and Budworth Investment Limited made cash refunds of share capital in January 2019, and the consolidated entity recovered NT$1,717,000 and NT$2,490,000 of investment, respectively, at the prevailing shareholding percentage. NT$451,000 of the proceeds recovered were offset against financial assets, while the remainder were recognized as other comprehensive income and accumulated under other equities.

The consolidated entity recognized NT$8,200,000 and NT$19,177,000 of unrealized loss on valuation of equity instruments at FVTOCI in 2020 and 2019, respectively.

IX.

The consolidated entity received NT$285,000 of cash from Harbinger Venture Capital Corp. in 2019 (2020: none) and recognized this sum as dividend income. current Financial assets carried at cost after amortization -

	December 31, 2020	December 31, 2020	December 31, 2019	December 31, 2019
Domestic investments Time deposit with intial matrty
of more than 3 months	$	2O,73l	$	45,7O3

As at December 31, 2020 and 2019, time deposits with initial tenors of 3 months or longer accrued interests at 0.815%-3.200% and 1.065%-2.460% per annum, respectively.

X. Notes receivable� and other receivables

邸sig fom busiess activities	December 31, 2020	December 31, 2020	December 31, 2019	December 31, 2019
Note receivable	＄	385	＄
Trade receivable Operatig lease receivable - Cuent - Non-curent Subtotal		2 639 3,430 18 406 21836		2 751 2,710 16 771 19 481
Other receivables Aount receivable fom sale of securties Utility and management f s receivable		5,405 1,174		4,659 1,199
Rent receivable Tax refnd receivable(ote 23)		126 42		122 53
。thers		3 254		2 512
Subtotal Ttal	＄	10 001 34.861	＄	8 545 3O,777

(To be Continued)

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(Continued)

(I) Notes and accounts receivable

Notes receivable primarily represent rent that the consolidated entity collects for the leasing of investment properties. Accounts are generally recovered within 30 days. Accounts receivable primarily represent retail sales collectible from consumers on transactions paid with credit cards and third-party payment tools. The majority of accounts receivable are credit card balances to be collected from financial institutions. Credit term on sale of merchandise is generally 30 days, and most proceeds are collected within this duration.

The consolidated entity recognizes loss provisions on accounts receivable based on expected credit losses over the duration of the receivable account. Expected credit loss over the remaining duration takes into account customers'past payment records. Since previous credit loss records showed no significant difference in loss pattern across customer groups, the consolidated entity simply set the expected credit loss rate based on number of days overdue.

Ifthere is evidence to suggest that the counterparty is undergoing severe financial crisis and the recoverable amount can not be reasonably estimated, the consolidated entity will directly offset loss provisions against accounts receivable. In which case, the consolidated entity will continue collection efforts on the receivables, and any amounts recovered will be recognized through profit and loss.

The consolidated entity found no sign of impairment in accounts and notes receivable as at December 31, 2020 and 2019.

(II)

Operating lease receivable

Operating lease receivable represents lease incentives granted on operating leases. The total cost of incentives is amortized on a straight-line basis and allocated over the remaining lease tenor as deductions to rental income. Lease negotiations had taken place with some lessees in the current year due to COVID-19. The negotiations were accounted as new leases from the effective date of lease amendment.

For concentration of credit risks in lease receivables, please refer to Note 26.

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XI. Inventories

Inventores
	December 31, 2020		December 31, 2019
Propretary inventory
Cosmetics and women's
undergarents Properies pending sale	$	6 349 ，	$	12,556
Huagang Section, Shilin
District, Taipei City Jiaoxi Gongyan Section,		673,457		673,457
Yilan		2O1,347		252,282
	$	8 8 1, 1 5 3	$	938,295

Amount of cost of goods sold recognized from inventory totaled NT$ l 34,258,000 in 2020 and NT$259,565,000 in 2019. Cost of goods sold for 2019 includes inventory devaluation losses ofNT$3,000,000 (2020: none).

The consolidated entity's property pending sale at Jiaoxi Gongyuan Section, Yilan County, forms part of the joint construction agreement entered into by subsidiary - DeHome Development and a non-related party in January 2014. Under this agreement, the landlord contributed land located in Jiaoxi while DeHome Development contributed capital and technology to complete and share units of the construction project. A construction service contract was later signed with related and non-related parties in March 2015. This. contract involved a joint development and joint construction of project in Jiaoxi, for which a 5% construction management fe was charged on the construction cost. The joint construction project was completed in October 2017 and all ownership transfer has been completed to date.

The consolidated entity's property pending sale at Huagang Section, Shilin District, Taipei City, had net realizable value determined by an independent valuer using the comparative method and income method (direct capitalization method) as at the balance sheet date. Average income capitalization rate was one of the significant unobservable inputs used during valuation, and the rate was determined at 1.15% for 2020 and 1.24% for 2019.

The consolidated entity's property pending sale at Jiaoxi Gongyuan Section, Yilan County, did not have net realizable value determined by an independent valuer; instead, valuation was performed by the management using valuation model that was commonly accepted among market participants. This valuation had proceeded using market evidence similar to real estate transaction prices.

For disclosure on the amount of inventory pledged as loan collaterals, please refer to Note 28.

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XII. Subsidiaries

Subsidiaries included in the consolidated financial statements

This consolidated financial statement encompasses the following:

				% of Owne1-hi2	% of Owne1-hi2
				December	December
	Investor The Company	Investee GUAN QUA INVESTM ENT CO,	Mam Business Investment	31, 2020 100.0%	31,2019 100.0%	Explanation As at December 31, 2020, the entity held 8,750,000 share of the Company, representig 4.19% of outstandig
		LTD.				common shares.
	The Company The Company Te Compay	」IFONG IESTM ENTCO., LD SONG YA IVESTM ENT CO., LD. SHUN TAI IESTM ET CO.,	Invetment Ivestment Investment	100.0% 100.0% 100.0%	100.0% 100.0% I00.0%	As at December 31, 2020, the entity held 8,767,000 shares of the Company, representing 4.20% of outstandig comon share. As at December 31, 2020, the entit held 7,366,000 shares of the Company, 「eresentig 3.53% of outstandig co=on share. As at December 31, 2020, the entity held 8,439,000 shares of the Company, 「ereenting 4.04% of outstading
		LTD				co=on shares.
	The	DeHome	Housing and Building	100.0%	100.0%
	Company	Developme	Development and
		nt Co, Ltd	Rental
XIII.	Eaccounted investments
	Investents in Associates
				December 31, 2020 December 31, 2019
	Associated compaies with sigfcant infuence Chung Hsiao Enterrse Co.,
	Ltd.			$	162.327	$ 145,07O
				Percentage ofshare ownership/votingrghts
				December 31, 2020 December 31, 2019
	Chung Hsiao Enterrse Co., Ltd.				20%	20%

Nature of business activities, main places of business, and countries of registration for the above associated companies are disclosed in Appendix 2 - "Information of Investees."

Summary financial information of associated companies under the consolidated entity is presented below:

Summary fnancial infrmation entity is presented below:	of associated companies	of associated companies	under the consolidated	under the consolidated
	December 31, 2020		December 31, 2019
Curent asset	$	349,312	$	268,857
non-current assets		222,820		223,226
Curent liabilities non-curent liabilities	( (	37,117) 57,923)	( (	43,353) 57,923)
Equity	$	477,092	$	39O`8O7
Shareholding percentage of the
consolidated entty		2O%		2O%
Consolidated entity's share of
equity Adjustment to fir value of non	$	95,418	$	78,161
current assets due to acquisition
of shares		66,909		66,909
Book value of investment	$	162.327	$	145.070
		2020		2019
Current operating revenues Curent net income	$ $	241650 20.878	＄ $	252453 17.369
Other comprehensive income curent Share of curent net income	$ ＄	80!982 4.176	$ ＄	81 !587 3.73
Share of other comprehensive income - curent Dividends receved fom Chung Hsiao Enterrise Co., Ltd.	$ ＄	16.196 3. 5	$ ＄	16.318 3l096

Share of profit/loss and other comprehensive income from equity-accounted associated companies in 2020 and 2019 were recognized based on audited financial statements of the respective associated companies for the corresponding periods.

XIV Pro�ment

	December 31, 2020	December 31, 2020	December 31, 2019	December 31, 2019
Book valuefor each categorv
Land	$	853,457	$	853,457
Buildings, net		1,433,238		1,481,557
Computer and communication
equipment, net Transpor equipment, net		11,723 1,369		13,596 1,782
Other equipment, net Constrction in progess		6,885 3.236		8,440 1.736
	$	2,3O9.9O8	$	2, 3 6O, 5 6 8

2020
Openig
Increase I
Disposal in
Other
balance
cuent }ear
curent year
＿逋ustments
Cost
Land
$
853,457
＄
＄
＄
Buildings
1,896,990
27,249
（
10,000)
（
3,181)
Computer and
comunication
equipment
20,571
178
464)
2,570)
Transpor
Equipment
4,906
Other
Equipment
11,149
212
（
119)
Constrction in
progress
1 736
1 500
2,788,809
＄
22,139
（＄
lQ,583)
（＄
5,151)
accumulated
depreciation
Buildings
415,433
＄
68,828
（＄
6,150)
（＄
291)
Computer and
comunication
equipment
6,975
1,423
（
386)
（
2,020)
Transport
Equipment
3,124
413
Other
Equipment
2 709
1 747
（
99)
428,241
＄
1,411
（＄
6,635)
（＄
2,311)
Ttal
$ 2 3 6O ` 5 6 8
2019
Openg
Increase in
Disposal in
Other
balace
curent year
current year
adjustments
Cost
Land
$
853,457
＄
＄
＄
Buildigs
1,859,418
36,703
869
Computer and
comunication
equipment
20,253
233
227)
312
Transport
Equipment
5,484
（
578)
Other
Equipment
10,360
916
（
127)
Constrction in
progress
2,520
747
（
1 531)
2,751,492
＄
38,592
（＄
932)
（＄
35Q)
accumulated
depreciation
Buildings
343,141
＄
72,292
＄
＄
Computer and
comunication
equipment
5,557
1,638
（
220)
Transport
Equipment
3,192
413
（
481)
。ther
Equipment
1,231
1 584
（
106)
353,121
＄
75,927
（＄
8Q7)
＄
Total
$2,328,371

Closing
balance
$
853,457
1,911,058
17,715
4,906
11,242
3 236
2,801,614
477,820
5,992
3,537
4 357
491 706
$ 2.309.908
Closing
balace
$
853,457
1,896,990
20,571
4,906
11,149
1 736
2,788,809
415,433
6,975
3,124
2 709
428,241
$ 2,36Q,568

Remodeling of Taoyuan Branch began in February 2017 and ended in September 勾18. The project incurred a sum of approximately NT$1,112,410,000. As at December 31, 2020 and 2019, the project still had unpaid billings of NT$77,226,000 and NT$62,579,000, respectively, that were presented as equipment purchase payable. Taoyuan Branch commenced trial operation on September 15,叩18 and officially opened for business on October 3, 2018.

There was a delay in renovation works that caused Taoyuan Branch to postpone its 。fficial opening, and the Company has since been negotiating with the contractor according to the terms of the renovation contract to agree on the amount of losses, compensation, and construction billings payable. However, the two parties were unable to reach an agreement and sought resolution through arbitration in 2020. The arbitration tribunal then held inquisitions in May, July, and October later that year. According to the ruling made by Chinese Arbitration Association, Taipei in January 2021, the Company was required to pay the contractor the contracted sum of construction billing plus an additional billing of NT$139,071,000 fi or contract modification. A portion of the modification billing had already been accounted for; the unaccounted balance of NT$27,395,000 will be adjusted prospectively into buildings - NT$27,249,000 and repair expenses - NT$146,000 in the current year.

As per assessment, the consolidated entity's property, plant, and equipment showed no sign of impairment as at December 31, 2020 and 2019.

Property, plant, and equipment of the consolidated entity were depreciated on a straight-line basis over the number of useful years shown below:

basis over the number of useful y	ears shown below:
Buildings
Buildings	42 to 55 years
Building
improvements	3-10 years
Water treatment
system	55 years
Others	2 to 15 years
Computer and
communication
equipment	5 years
Transport Equipment	5 years
Other Equipment	5 to 8 years

For disclosure on the amount of property, plant and equipment pledged as collaterals, please refer to Note 28.

XV. Investment Property

December 31, 2020 December 31, 2019 Investment Property Xinzhuang District, New Taipei City $1,059,951 $ 1,045,451 Da'an District, Taipei City 1,1O5,1O2 1.114.191 , , $ 2J65,053 $ 2J59,642

==> picture [423 x 344] intentionally omitted <==

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

2020
Opening Increase in Decrease in Internal Closing
balance current year current year transfer balance
Cost
Land $ 2,016,189 ＄＄＄ $ 2,016,189
Buildings 325,810 （ 535) 325,275
2,341,999 ＄（＄ 535) ＄ 2,341,464
accumulated
depreciation
Buildings 167 357 ＄ 2,179 （＄ 125) ＄ 176 411
Curnulati ve
impairment
Land 15 000 ＄（＄ 15,000) ＄
Total $ 2.159.642 $ 2.165.053
2019
Opening Increase in Decrease in Internal Closing
balance current year current year transfer balance
Cost
Land $2,016,189 ＄＄＄ $ 2,016,189
Buildings 325,275 535 325,810
2,341,464 ＄ 535 ＄＄ 2,341,999
accumulated
depreciation
Buildings 158,265 ＄ 9,Q22 ＄＄ 167 357
Cumulative
impairment
Land 29,000 ＄（＄ 14,00Q) ＄ 15 000
Total $ 2,154,129 $ 2,159,642
----- End of picture text -----

Investment properties - buildings are depreciated on a straight-line basis over the number of useful years shown below:

Buildings
Buildings	42 to 55 years
Accessory
equipment of
buildings	10 to 15 years
Building
improvements	3 years

The consolidated entity owned several investment properties located at Qiongtai Section, Fuying Section, and Jianguo Section, Xinzhuang District, New Taipei City. Reversal of impairment losses on investment properties totaling NT$15 million and

NT$14 million were recognized based on fair values as at December 31, 2020 and 2019, respectively. These reversals represented differences between the book value and the amount of cash flow recoverable on real estate property, after taking into consideration 皿 ent changes in property price, goven policies, and market supply/demand. The fair values were determined by independent valuers using the comparative approach and the land development analysis approach as at the respective balance sheet dates. Discount rate was one of the significant unobservable inputs used during valuation, and the rate was determined at 1.17% and 2.04% as at December 31, 2020 and 2019, respectively.

The consolidated entity also owned several investment properties located at Renai Section, Da'an District, Taipei City, with fair values determined at NT$6,942,566,000 and NT$7,420,029,000 as at December 31, 2020 and 2019, respectively. These fair values were not established by an independent valuer; instead, valuation was performed by the management using valuation model that was commonly accepted among market participants. This valuation had proceeded using market evidence similar to real estate transaction prices.

All of the consolidated entity's investment properties are proprietary owned. For disclosure on the amount of investment property pledged as collaterals, please refer to Note 28.

. XVI Borrowmgs

(I) Short-term borrowings

December 31, 2020 December 31, 2019 Securedborrowings Bank borrowings $ L022,423 $ 1,2 O2,92 3

Working capital bank borrowings bore interest rates of 0.88%-1.85% and 0.99%2.05% as at December 31, 2020 and 2019, respectively.

(II) Short-term bills payable

December 31, 2020 December 31, 2019 Commercial paper $ 165,800 $ 167,000 Less: Unamortized discounts on bills payable 64 106 $ 1 65,736 $ 1 66,894

Commercial papers bore interest rates of 0.25%-0.65% and 0.66%-1.90% as at December 31, 2020 and 2019, respectively.

For disclosure on the amount of inventory, property, plant, equipment, and investment property pledged as collaterals for short-term borrowings and short-term bills payable, please refer to Note 28.

(III) Long-term borrowings

Long-term borowings
	December 31, 2020	December 31, 2019
Securedborowings Ban SinoPac
Credit line:
NT$1,400,000,000.
Contract tenor: Augst 22, 2017 to Augst 31,
2020. Extended to
Augst 31, 2022 on
November 27, 2019.	$1,100,000	$ 1,230,000
Bank of Taiwan
Credit line:
NT$600,000,000.
Contract tenor: May 23,
2018 to May 23, 2021. A new contract staring
」une 24, 2020 and
ending June 24, 2023 was siged on June 24,
2020. Hua Nan Ban	446,000	526,000
Credit line:
NT$293,000,000.
Contract tenor: January
11, 2019 to January 11,
2022. A new contract
staring March 20, 2020
and ending March 20, 2023 was siged on Mach 20, 2020.	290,000	150,000

(To be Continued)

(Continued)

December 31, 2020 December 31, 2019 First Commercial Bank Credit line: NT$3 50,000,000. Contract tenor: August 28, 2020 to August 28, 2022. Unsecured borrowings Bank of Taiwan Credit line: NT$ I 00,000,000. Contract tenor: May 23, 2018 to May 23, 2021. A new contract starting June 24, 2020 and ending June 24, 2023 was signed on June 24, 2020. 100.000 $ 2,116,0OO $ 2,0O6,0OO $ 280,000

Secured borrowings mentioned above are long-term in nature and bear interests at fixed rates that are reset once every 2 to 3 months.

Effective interest rate range for long-term borrowings:

December 31, 2020 December 31, 2019 Effective interest rate: Floating interest rate borrowing Fixed interest rate borrowing 0.80%~1.05% 0.99%~1.08% 0.99%

For disclosure on the amount of property, plant, equipment, and investment property placed as collateral for long-term borrowings, please refer to Note 28.

XVII. Accounts珥yable

December 31, 2020 December 31, 2019 Accounts pavable 邸sing from business activities $ 96,6 5 9 $ 67,4l2

The average credit term for trade purchases is 30 days.

XVIII. Accrued ex卫enses

Accrued ex卫enses
	December 31, 2020		December 31, 2019
Salary and bonus payable	$	16,348	$	16,642
Tax payale		8,987		8,872
Utility expenses payable		4,914		5,968
Others		7.434		9.225
	$	37,683	$	40,7O7

XIX. Post-em�lans

(I) Defined contribution plans

The pension scheme introduced under the "Labor Pension Act" that the Company and certain subsidiaries of the consolidated entity are subjected to is a government managed defined contribution plan, for which each participating entity is required to contribute an amount equal to 6% of employees'monthly salary into their individual pension accounts held with the Bureau of Labor Insurance. (II) defined benefit plan

The Company is also subject to the pension scheme introduced under the "Labor Standards Act," which is a government-managed defined benefit plan. Under this plan, employees'pension benefits are calculated based on their years of service and gross salary for the month of retirement (excluding allowances and festive bonuses). The Company makes monthly pension contributions eq�ivalent to 2% of employees' monthly salaries into an account held under Bank of Taiwan in the Labor Pension Supervisory Committee's name. In the event that the account is estimated to be short of balance to pay workers who are expected to meet their retirement criteria in the following year, the Company will reimburse the shortfall in one contribution by no later than the end of March next year. The account is managed by Bureau of Labor Funds, Ministry of Labor. The Company has no influence whatsoever over the investment strategy.

The following amounts relating to the defined benefit plan have been recognized on the consolidated balance sheet:

on the consolidated balance sheet:
	December 31, 2020		December 31, 2019
Present value of defned beneft
obligations		$ 43,545		$ 42,274
Fair value of plan assets Net defned beneft liabilities	(	24,076) $ 19,469	(	l7,42O) $ 24,854

Changes in net defined benefit liability:

	Present value	Present value
	of defned beneft		Fair		value of	Net defned beneft
	obligations			plan assets		liabilities
January 01, 2019	＄	39,596	（＄		14,604)	＄	24,992
servicing costs
Serice costs fr the curent
period		431					431
Interest expense (income) Recogized in proft or loss		396 827	（（		147) 147)		249 680
Remeasurement
Retur on plan assets
(excluding amounts already
included in net interest) Actuaal loss - change in demogaphic assumption Actuaral loss - change in fnancial assumption		58 942	（		517)	（	517) 58 942
Actuarial loss - adjustment based on past experence Recogized in other		851					851
comprehensive income Employer's contrbution		1,851	（（		517) 2,152)	（	1 334 2152)
December 31, 2019		42,274	（		17,20)		24,854
servicing costs
Serice costs fr the cuent
period		417					417
Interest expense (income) Recogized in proft or loss		318 735	（（		133) 133)		185 602
Remeasurement
Ret on plan assets
(excluding amounts already
included in net interest) Actuaral loss - chage in demogaphic assumption Actarial loss - change in		2	（		574)	（	574) 2
fnacial assumption Actuaal gain - adjustment based on past experence Recogized in other	（	1,322 788)				（	1,322 788)
comprehensive income Employer's contrbution		536	（（		574) 5 949)	（（	38) 5 949)
December 31, 2020	＄	4\545	（＄		24l076)	＄	19�469
Aounts of defned beneft	plan recogized though				proft and	loss, by fnction:
		2020				2019
Administrative expenses		�				�

The consolidated entity is exposed to the following risks due to adoption of pension scheme introduced under the "Labor Standards Act":

1. Investment risks: The Bureau of Labor Funds, Ministry of Labor, manages the labor pension fund either on its own or through mandate. The labor pension fund is being allocated into equity securities, debt securities, and bank deposits local and abroad; however, the consolidated entity estimates return on plan assets at a rate no less than the 2-year time deposit rate offered by local banks.

2. Interest rate risk: A decrease in government bond yield would increase the present value of defined benefit obligations while at the same time increase return of plan assets invested in debt instruments. The overall effect on net defined benefit obligation is partially offset.

3. Salary risk: The present value of defined benefit obligations is calculated by taking into consideration the participants'future salary levels. An increase in salary level would raise the present value of defmed benefit obligations.

The present value of defined benefit obligations is determined based on actuarial estimates made by certified actuaries. Below are the main assumptions used on the date of measurement:

date of measurement:
	December 31, 2020	December 31, 2019
Discount rate	0.375%	0.750%
Expected salary increase	2.000%	2.000%

A reasonable change in the main actuarial assumption would increase (decrease) the present value of defined benefit obligations by the following amounts, provided that all other assumptions remain unchanged:

	December	31, 2020	December	31, 2019
Discount rate
0.25% increase	(＄	889)	(＄	942 )
0.25% decrease	$	91 8	$	974
Expected salary increase
0.25% increase	$	886	$	945
0.25% decrease	(＄	863)	(＄	9l 9)

Actuarial assumptions tend to be intercorrelated. It is unlikely to see only one assumption changing at one time, therefore the above sensitivity analysis may not truly reflect changes in the present value of defined benefit obligation.

	December 31, 2020	December 31, 2019
Expected contrbutions in the
next year	$ 3 89	$ 367
Average matrty of defned
beneft obligations	8.1 years	8.9 years

4 2

XX. Eqmtv

(I) Common share capital

mtv Comon share capital
	December 31, 2020	December 31, 2019
Authorized and issued shares
(thousand shares)	2O8,725	208.725
Authorized and paid-in capital	$ 2,087,25O	$ 2,087,25O

All issued common shares have a face value of NT$ IO per share. Each share is entitled to one voting right and the right to receive dividends.

(II) Additional paid-in capital

entitled to one voting rght and the Additional paid-in capital	rigt to receive dividends.
	December 31, 2020	December 31, 2019
Shares premium fom issuace Teasury stock transaction	$ 71,028 435.936	$ 71,028 412.610
	$ 5O6,964	$ 483,638

This additional paid-in capital can be offset against losses, or distributed in cash or capitalized into share capital when the Company has no cumulative losses outstanding. However, capitalization of this additional paid-in capital is capped at a certain percentage of the Company's paid-in share capital each year.

(III) Retained earnings and dividends policy

According to the earnings唧ropriation policy stipulated in the Articles of Incorporation, annual surpluses concluded by the Company are first subject to taxation and reimbursement of previous losses, followed by a 10% provision for statutory reserves and provision or reversal of special reserves as the laws may require. Any surpluses remaining will be added to unappropriated earnings accumulated from previous years, for which the board of directors will propose an earni gs appropriation plan and seek resolution in a shareholder meeting before distribution. Refer to Note 22-(8) - Employee and director remuneration for the Company's employee and director remuneration policy outlined in the Art這es of Incorporation.

The Company passed a resolution during the shareholder meeting dated June 28, 2019 to amend its Articles of Incorporation. In addition to the terms described in the preceding paragraph, any cash distribution of dividend, profit, statutory reserve, or additional paid-in capital, whether in whole or in part, must be resolved in a board meeting with more than two-thirds of the board present, voted in favor by more than half of attending directors, and reported in the upcoming shareholder meeting.

As a conventional department store, the Company experiences no m<l:」or change in sales volume but foresees moderate growth. After taken into consideration its long term development plans and goals of maximizing shareholders'interest, the Company has adopted a dividend policy that makes consistent payouts primarily in cash; however, the Company may adjust its dividend policy for the following year depending on current year's profitability, capital availability, and capital plans for the following year. Overall, cash dividends shall not account for less than 50% of the sum of cash dividends plus stock dividends.

Appropriation of earni gs to legal reserve shall be made until the reserve equals the Company's paid-in capital. Legal reserves may be used to offset the deficit. If the Company has no deficit and the legal reserve has exceeded 2 5% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

Provision and reversal of special reserves are performed in accordance with Letter No. Jin-Guan-Zheng-Fa-1010012865, Letter No. Jin-Guan-Zheng-Fa101004 7 490, and "Q&A on Special Reserves Treatment after IFRSs Adoption" issued by the authority.

The following are details of the 2019 and 2018 earnings appropriation resolved during annual general meetings held on June 22, 2020 and June 28, 2019:

		2019		2018
Statutory reserves	$	1 1,072	$	9,0 1 O
Provision (reversal) of special	(＄	176,71 6)
reserves			$	23O,373
Cash dividends	$	146, 1O8	＄
Cash dividends per share(NT$)	$	0.7	＄

Details of the 2020 earnings appropriation plan proposed by the board of directors in meeting dated March 22, 2021 are as follows:

	Appropriation of
	Earnings
Provision for statutory reserves	$ 4,03 5
Reversal of special reserves	(＄ 3 9,22 5)
Cash dividends	$1O4,363
Cash dividends per share(NT$)	$ 0.5

For the above cash dividend, the board of directors has resolved to set April 28, 2021 as the baseline date, and May 20, 2021 as the expected cash dividend payment date. Appropriation of 2020 earni gs is still pending for shareholders'resolution in the annual general meeting scheduled on June 22, 2021.

(IV) Special reserves

The Company reclassified NT$372,185,000 of unrealized gain on revaluation into retained earnings when adopting IFRSs for the first time, and made provisions for special reserves of the same amount in accordance with the authority's instruction No. Jin-Guan-Zheng-Fa-1010012865 in 2013. This special reserve may be reversed when the underlying property is disposed or reclassified on a later date.

When 唧ropriating 2019 and訒18 earnings, the Compa[n] y made reversal and provision for special reserves totaling NT$176,716,000 and NT$230,373,000, respectively, for differences in the market price and book value of parent company shares held by subsidiaries, after taking into consideration the prevailing shareholding percentage. The amount of special reserve can be adjusted for increases in market price on a later date.

(V) Other items of equity

Unrealized gain(oss) on financial assets at FVTOCI

Opening balance Icured in the current yea Unealized loss - equity instment Equity instrument - Refund fom capita reduction (Note 8) Share of equity-accounted associated compaies Adjustment to previous years Unealized gain/(oss) Equity instruments Transfr of cuulative gains/losses to retained earings folowing disposal of equity instrument Closing balance	2020 2019 ($ 156,000) ($ 168,245) （ 7,960) （ 15,341) 3,005 16,196 16,318 （ 10,606) 8,263 74,274 ($ 84.096) ($ 156~~!~~000)

(VI) Treasury stock

Unit: Thousand Shares

Reason fr buyback	Shareholding
	at the			Shareholding
	beging of year	Icrease in curent year	Decrease in cuent year	at the end of year
顬
Subsidiaes'holding of the
Company's shares reclassifed fom mvestment into treasu
stock	33.322			33.322
2019
Subsidiares'holding of the
Company's shares reclassifed fom mvestment mto treasu
stock	33,322			33,322

Information relating to subsidiaries'holding of the Company's shares as at balance sheet date:

sheet date:
	No. of shares
	held
Ivestee	(thousand shares)	Acquisition cost		Market prce and book value
December 31, 2020
GUA QUA ISTMENT CO., LD. JA FONG IESTMENT CO.,LD. SONG YA IESTENT CO., LD. SH TA IESTMENT CO., LTD.	8,750 8,767 7,366 8,439	＄	337,066 337,787 283,545 325,143	＄	462,875 463,775 389,662 446,23
			1,283,541	＄	1,762,735
December31, 2O19
GUA QUA IESTMENT CO., LTD. JIA FONG IESTMENT CO.,LD. SONG YA IVESTMENT CO., LTD. SH TA IESTMENT CO., LD.	0 7 6 5 6 6 7 7 3 , ' ， 8 8 7 8,439	＄	337,066 337,787 283,545 325,143	＄	345,625 346,297 290,957 333,34l
		$	L283,541	$	1,3 l6,22O

Subsidiaries'holding of the Company's shares are treated as treasury stocks; subsidiaries are not entitled to participate in cash issue or vote, but are otherwise entitled to the same rights as ordinary shareholders.

Revenues XXI.

(I) Breakdown of operating revenues

venues Breakdown of operating revenues
	2020	2019
Net sales revenues	$ 201,207	$ 162,994
Rental income Constrction income	247,744 59,669	242,256 190,796
Other operating revenues	45,82O	54.130 ，
	$ 554,44O	$ 6 5 0, 1 7 6

(II)	Explanation and breakdown of income fom	Explanation and breakdown of income fom	customers'contracts
			2020		2019
	Net sales revenues
	Revenues fom sale of
	merchandise Retail comission income	$ $	91,736 109,71 201207	$ $	42,900 120,094 162.994
	Constrction income Income fom sale of
	prpery	＄	59.669	$	190.796
	Other operating revenues Merchants'subsidy fr deparent renovation
	Revenue Management f income	＄	5,359 30,073	＄	15,016 32,029
	Others		10388		7,085
		$	45.820	＄	54!130
	Aalysis of retail comission income:
			2020		2019
	Total depament sales Retail comission income	$ $	975'696 lO9,47l	$ 1,04U01 5 $ 1 20,094
(III)	Contrct balance
		December 31, 2020		December 31, 2019
	contract liability	$	46,996	$	l0,453

The change in contractual liabilities was mainly attributed to the discrepancy between the time obligation was fulfilled and the the time payment was made to customers.

(IV) Rental income

2020 2019 Rental income Investment Property $ 212,408 $ 204,433 Share of mall rental m｀ come 35.336 37,823 $ 247.744 $ 242,256

Operating lease arrangements involve leasing of investment properties and retail malls(presented as proper[t] y, plant, and equipment) owned by the consolidated entity, for tenors of 1-7 years and 1-13 years, respectively. The lessees are not entitled to any privileges to purchase the leased proper[t] ies at the end of the lease tenor.

As at December 31, 2020 and 2019, the consolidated entity had collected deposits totaling NT$50,965,000 and NT$53,071,000, respectively, in relation to the operating lease agreements.

Some of the consolidated entity's real estate leasing agreements contain contingent rent clauses that require the lessee to pay contingent rent at a certain percentage of monthly sales revenues.

Prof[i] t before tax XXII.

Pre-tax profit includes the following items:

(I) Breakdown of operating costs

Cost of sales Cost oflease Construction cost Oter operting costs	2020 $ 79,125 39,224 55,133 16,529 ~~$ 190.011~~ 2019 $ 35,470 40,241 224,095 24,144 $ 323!950

(II) Interest income

(II)	Interest income
			2020		2019
	Cash in banks	$	58O	$	l,475
(I )	Other income
			2020		2019
	Carark income	$	9,244	$	10,075
	Dividend income		3,902		5,211
	Others		4.307		2 967 ，
		$	17,453	$	18,253

Other gains or losses
		2020		2019
Gain (loss) on disposal of propery, plant, and
equipment	($	3,948)	$	12
Loss on disposal of investment prperies	(	372)
Net gain (loss) on currency exchage Gain (loss) on fnancial assets mandatory to be cared at		956	(	1,833)
FVTPL Sundry expenses Reversal of impairent loss on	r \ , \|、丿丶．＇ J3 7 6 4 5 7 ' ， 1 2	（	29,605 2,140)
investment property(Note
15)		15,0OO		14.000 ，
	$	7,326	$	39,644

Net gain/loss on financial assets mandatory to be carried at FVTPL includes: (A) 2019; and (B) Gain on disposal totaling NT$8,988,000 in 2020 and NT$18,752,000 in Gain on fair value changes totaling -NT$10,551,000 in 2020 and NT$10,853,000 in

	2019.
(V)	Finacial costs
			2020		2019
	Interest on ban loans	$	3 5, 1 l O	$	36,751
	There was no capitalzation of interest in		2020 and 2019.
(VI)	Depreciaton and amortization
			2020		2019
	Prperty, Plant ad Equipment Ivestent Prperty	$	72,411 9,179	$	75,97 9,092
	Intangible asset		595		525
	Total	$	82,1 85	$	85544
	A aalysis of depreciation by
	function
	Operting costs Opertig expenses	$	19,870 61.720	$	22,164 62,855
		$	81,59O	$	8 5,0 l 9
	A analysis of aortization by
	function
	Operting costs Operting expenses	$	149 446	$	150 375
		$	595	$	525

(VII) Employee benefits expense

Employee benefts expense
		2020		2019
Retirement benefts(Note 19) Defned contribution plans defned beneft plan	＄	2,133 602	＄	2,081 680
Subtotal		2,735		2,761
Other employee benefts Ttal	＄	70,173 72.908	＄	70,355 73J16
An analysis by fnction
Operating expenses	＄	72,9O8	＄	73,1 l6

(VIII) Employee and director remuneration

The Company provides for employee remuneration at 0.1 %-4%, and director remuneration at no more than 4%, of current year's pre-tax profit (before employee and director remuneration). 2020 and 2019 employee/director remuneration were resolved in board of directors meetings dated March 22, 2021 and March 23, 2020, respectively. Details are as follows:

Ratio

respectively. Details are as fllows: Ratio
	2020	2019
Remuneration to employees	0.63%	0.74%
Remuneration to directors	0.63%	0.74%

Aount
			2020					2019
		Cash			Stocks		Cash			Stocks
Remuneration to	$	1,000		＄		$	1,000		＄
employees
Remuneration to		1,000					1,000
directors

If the amount changes after annual consolidated financial statements are approved and announced to the public, the difference will be treated as a change in accounting estimate and recognized as a gain or loss in the following year.

The actual amounts of 2019 and 2018 employee remuneration and director remuneration paid were indifferent from the amounts recognized in the 2019 and 2018 financial statements.

Please visit "Market Observation Post System" for more information regarding employee/director remuneration resolved during the Company's board of director meetings.

(IX) Gains (losses) on foreign currency exchange

				2020		2019
	Foreig exchange gains Ttal loss on curency exchange	(	$	14,340 13,384)	$ (	I 0,552 1 2,385)
	Net gain (loss)		$	956	(＄	l. 83 3)
XIII.	Income tax
(I)	Income tax recogized in proft or loss
	Major components of tax expense	were as fllows:
				2020		2019
	Tax curently payable Incured in the curent year Levied on unapproprated earngs Pror yeas adjustment	$ (		33,730 5,131 387)	$ (	34,777 51 l4,653)
	Defred tax Incured in the curent yea Icome tax expense recogized in proft or loss		$	38,474 3,61 O 42.084	$	2O,175 1,4O6 21,581
	Reconciliation of accounting income		and income tax expense:
				2020		2019
	Proft befre tax		�		$	1 33,366
	Income tax derved by applyng the stattory tax rate to pre- tax net proft Loss on valuation of fnancial		＄	31,447	＄	12,992
	assets Levied on unapproprated earngs Tx-exempt income Unecogized losses cared frard Unecognized temporary diference	（		2,109 5,131 1,250) 3,820 1,214	（（	2,170) 50 11,515 15,401 1,554)
	Previous income taxes adjusted in the curent year Income tax expense recogzed in proft or loss	（＄		387) 422084	（＄	14,653) 21l581

Subsidiaries of the Company, namely GUAN QUAN INVESTMENT CO., LTD., JIA FONG INVESTMENT CO., LTD., and SONG YUAN INVESTMENT CO., LTD., were subject to the 19% profit-seeking business income tax rate in 2019, according to Subparagraph 3, Paragraph 5, Article 5 of the Income Tax Act.

5 1

(II) Income tax recognized in other comprehensive income

(II)	Income tax recognized in othe	r comprehensiv	e inco	me
			2020			2019
	Defred tax Incured in the current year
	- Remeasurement of
	defned beneft plan	（＄		8)	$	267
	- Equity instruments at
	FVTOCI		240			3,084
	Prior years adustment - Equity instrments at
	FVTOCI	(	lO,6O6)			8 263
		($	10.374)		$	1 1,6 1 4
(III)	Curent income tax assets and	liabilities
		December 31,		2020	December 31, 2019
	Curent income tax asset
	Tax refnds receivable
	(presented as other
	receivables)	$	42		$	53
	Curent tax liabilities
	Income tax payable	$	2l,646		$	3 3, 1 5 7

(IV) Deferred income tax assets and liabilities

Below are changes in deferred income tax assets and liabilities:

2020

Defred tax assets Temporar diference Impa皿1ent loss of fmacial assets at FVTOCI Impaient loss on investment properies Defned beneft plan 。ters Openg balance ＄ 25,840 3,000 9,269 628 ＄ 38,737	Recognized in other Recogned i comprehensive proft or loss icome ＄（＄ 10,366) （ 3,000) 8) （ 589) ~~（＄~~ 3,589) ~~（＄~~ lQ,374) Closing balace ＄ 15,474 9,261 39 ＄ 24 774

(To be Continued)

5 2

(Continued)

Defred tax liabilities Tempor吣'diference Provision fr land icrement value tax Adjustment fr rent- fee period 2019 Defred tax assets Tmporar diference Impaient loss of fnancial assets at FVTOCI Impaient loss on ivestment properies Defned beneft plan Others Defred tax liabilities Tmporar diference Provision fr land icrement value tax Adjustment fr rent-fee perod Others	Recognized in other Opening Recognized in comprehensive balance 」ft or loss mcome $ 213,961 ＄＄ 3 896 21 $ 217.857 ＄ 21 ＄ Recognized in other Openng Recognized in comrehensive balance 」ft or loss mcome ＄ 14,493 ＄＄ 11,347 5,800 （ 2,800) 9,002 267 272 356 ＄ 29.567 ~~（＄~~ 2. 4) ＄ 11614 $ 213,961 ＄＄ 4,554 （ 658) 380 （ 380) $ 218,895 （＄ 1，醞）＄	Closmg balance $ 213,961 3 917 $217.878
		Closing balance ＄ 25,840 3,000 9,269 628 ＄ 38.737 $ 213,961 3,896 $ 217,857

(V) Unused losses carried forward not recognized as deferred income tax asset in the consolidated balance sheet

consolidated balance sheet
	December 31, 2020		December 31, 2019
Loss cared frard Expig 2021 Expiig 2022 Expig 2023 Expig 2024 Expig 2025 Expirng 2026 Expirng 2027 Expig 2029 Expiig 2030	$	2,531 8,338 13,979 11,678 16,425 13,382 11,965 77,010 19.099	$	2,531 8,338 13,979 11,678 16,425 13,382 11,965 77,010
	$	l74,407	$	155,3O8

5 3

(VI) Income tax assessments

Income tax filings of the Company and subsidiaries DeHome Development, SHUN TAI INVESTMENT, JIA FONG INVESTMENT, and SONG YUAN INVESTMENT have been certified by the tax authority up until 2018; income tax filings of subsidiary GUAN QUAN INVESTMENT have been certified by the tax authority up until 2019.

XXIV. 耽§

		2020		2019
Basic earings per share Diluted earings per shae	$ $	O. 6 5 O. 6 5	$ $	0.64 O.64
The net income and weigted average number of			ordinary shaes outstanding in
calculating earings per share were as fllows:
Curent net income
		2020		2019
Curent net income	$	1 14,159	$	l 1 1,785
Number of shares			Unit: Thousand Shares
		2020		2019
Weighted average number of ordinary shaes in computation of basic earings per share Efect of potentially dilutive ordinary shaes:		175,403		175,403
Remuneration to employees Weigted average number of		26		46
ordinary shares used in the
computation of diluted ear gs
per share		175,429		175.449

If the consolidated entity has the option to distribute employee remuneration either in cash or in shares, then the calculation of diluted earni gs per share shall be made by assuming full share-based payment. In which case, the number of potential common shares is added to the calculation of weighted-average outstanding shares as soon as they become dilutive, and this is the basis used for calculating diluted earni gs per share. Such a dilutive effect of the potential shares is included in the computation of diluted earni gs per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

xxv. Capital nskmanagement

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The consolidated entity has maintained its overall strategies unchanged in past years.

The consolidated entity's capital structure comprises net debt (i.e. borrowings less cash and cash equivalents) and equity (i.e. sum of share capital, additional paid-in capital, retained earnings, and other equity items).

The Group is not subject to any externally imposed capital requirements. The management reviews the consolidated entity's capital structure on a regular basis to address the costs and risks associated with various types of capital. Depending on the recommendations of its management, the consolidated entity may balance its capital structure by paying dividends, raising new debts, or by repaying existing debts. XXVI. Financial instruments

(I) Fair value information - financial instruments that are not measured at fair value

In the management's opinion, all financial assets and liabilities that are not measured at fair value have been presented on the consolidated balance sheet at book values that resemble their fair values.

(II) Fair value information - financial instruments with fair value measured on a recurring basis

Degree of fair value measurements

December 31逞幽
Level 1
Fiancial assets at FVTPL
Domestic listed shares
- Equity
investments
＄
120,667
Foreign public-listed
(OTC-taded)
secun.tl. es
- Equity
ivestments
6,688
- Bond investments
38,446
Fund benefciar
cerifcates
251,446
Total
＄417.247
Fiancial assets at
FVTOCI
Investment in equity
istments
- Emerging Stock
Market shares
＄
- Domestic unlisted
shaes
- Foreign unisted
shares
Total
＄

Level2
Level 3
Total
＄
＄
＄
120,667
＄
6,688
－－＄
38,446
-
: ＄
251, 6
＄
＄
＄417.247
＄
＄
4,563
＄
4,563
＄
46,890
＄
46,890
＄
15,004
＄
15 004
＄
＄
66,457
＄
66,457

December 31 1 2019

Level 1
Financial assets at FVTPL
Domestic listed shat·es
- Equity
investments
＄
95,825
Foreign public-listed
(OTC-traded)
secun'ti. es
- Equity
investments
8,006
- Bond ivestments
16,470
Fund benefciar
cerifcates
190,084
Total
＄
310.385
Financial assets at
FVTOCI
Investment in equity
istrments
- Emerging Stock
Maket shares
＄
- Domestic unlisted
shares
- Foreign unlisted
shaes
Total
＄

Level2
Level 3
Total
＄
＄
＄
95,825
8,006
16,470
190,084
＄
＄
＄310.85
＄
＄
8,063
＄
8,063
50,390
50,390
19 044
19 044
＄
＄
22,497
＄
72,497

There was no change of fair value input between level 1 and level 2 in 2020 and 2019.

2. Reconciliation of Level 3 fair value measurements of financial instruments

Financial assets that involve the use oflevel 3 fair value inputs were equity instruments at FVTOCI. Reconciliation of 2020 and 2019 balances is explained below:

below:
		2020		2019
Opening balance		$ 77,497		$ 97,125
Recogzed as other
comprehensive income
(unealized loss on
valuation of fnancial
assets at FVTOCI)	(	8,200)	(	19,177)
Refnd fom capital
reduction	(	2,84O)	(	45l)
Closing balance		$ 66,457		$ 77.497

3. Level 3 fair value measurement technique and assumption

Fair value of domestic and foreign unlisted shares is determined based on investees'latest net worth after taking li quidity into consideration. Liquidity discount is used as a sigrrificant unobservable input; a lower liquidity discount would increase fair value of such investment.

(III) Categories of financial instruments

	December 31, 2020	December 31, 2020	December 31, 2019	December 31, 2019
Financial asset
AtFVTPL
Financial assets desigated
as atFVTPL	$	417,247	$	310,385
Financial assets at amorized cost(ote 1)		132,501		163,123
Financial assets at FVTOCI -
Investment in equity
instruments		66,457		77,497
Financial liabilitv
Financial liabilities cared at amorized cost(ote 2)		3,511,271		3,552,599

Note 1: The balance includes cash, cash equivalents, notes receivable, accounts receivable, other receivables (excluding tax refunds receivable), time deposits with initial maturity of more than 3 months, and other financial assets carried at cost after amortization.

Note 2: The balance includes short-term borrowing, short-term bills payable, notes payable, accounts payable, accrued expenses (excluding tax payable and salary & bonus payable), equipment purchase payable, other payables, long term borrowings, and other financial liabilities carried at cost after amortization.

(IV) Financial risk management objective and policies

Main financial instruments used by the consolidated entity include equity and debt instruments, fund beneficiary certificates, accounts receivable, accounts payable, and loans. The consolidated entity's Financial Management Department is responsible for supporting business units, making coordinated use of capital, and performing treasury transactions in local and international financial markets. It monitors and manages financial risks within the consolidated entity by preparing internal reports, which analyze the scope and severity of risk exposures. These risks include market risk (including currency risk, interest rate risk, and other price risks), credit risk, and liquidity risk.

I. Market risk

(1) Exchange rate risk

See Note 29 for information on financial assets denominated in non functional currencies as at the balance sheet date. No sensitivity analysis was provided as the effect of exchange rate variation was insignificant. (2) Interest rate risk

The consolidated entity is exposed to interest rate risks due to capital borrowed at both fixed and floating rates by various entities within the group.

was provided as the efect of exchange rate variation was insigifcant. Interest rate risk The consolidated entity is exposed to interest rate rsks due to capital borowed at both fxed and foating rates by various entities within the goup.	was provided as the efect of exchange rate variation was insigifcant. Interest rate risk The consolidated entity is exposed to interest rate rsks due to capital borowed at both fxed and foating rates by various entities within the goup.	was provided as the efect of exchange rate variation was insigifcant. Interest rate risk The consolidated entity is exposed to interest rate rsks due to capital borowed at both fxed and foating rates by various entities within the goup.	was provided as the efect of exchange rate variation was insigifcant. Interest rate risk The consolidated entity is exposed to interest rate rsks due to capital borowed at both fxed and foating rates by various entities within the goup.
The book value of fnancial assets and fnancial liabilities susceptible
to interest rate risks as at the balance sheet date is presented below:
	December 31, 2020	December 31, 2019
Fair value interest rate
rsk
-Financial assets	$ 331	$	44,100
-Financial liabilities Cash fow interest rate rsk	2,926,999		2,894,996
-Financial assets	118,781		107,379
-Financial liabilities	377,160		480,821

Bank deposits and loans that the consolidated entity has placed/borrowed at fixed rate are susceptible to interest rate risk in the form of fair value change. However, the management considers the impact of interest rate variation to be insignificant given the short borrowing tenor and low borrowing rate.

Time deposits, demand deposits, and loans that the consolidated entity has placed/borrowed at floating rate are susceptible to interest rate risk in the form of cash flow changes.

Sensitivitv analvsis

The following sensitivity analysis has been prepared to explain interest rate risk exposure of floating-rate financial assets and bank loans as at the balance sheet date. Calculations were made on financial assets and liabilities that were susceptible to interest rate risk in the form of cash flow changes as at the balance sheet date. Interest rate sensitivity analyses are reported to the management by applying a variance of 0.25% above and below. This variance conforms with the management's expectation about the possible and reasonable range of interest rate variation.

A 0.25% increase/decrease in interest rate would have reduced/increased the consolidated entity's 2020 and 2019 pre-tax profit by NT$646,000 and NT$934,000, respectively, if all other variables

remained unchanged. This variation is largely attributed to exposure of bank loans undertaken at floating rate.

There was no significant change in the consolidated entity's interest rate sensitivity from the previous year.

(3) Other price risk

The consolidated entity is exposed to the risk of equity price variation due to investment in domestic and foreign equity securities. The consolidated entity does not engage in active trading of such investment. Equity price risk of the consolidated entity is mainly concentrated in equity instruments issued within the Greater China Region.

Sensitivitvanalvsis

The following sensitivity analysis was conducted based on equity price risks as at the balance sheet date.

If equity prices increased/decreased by 10%, pre-tax profit for 2020 and 2019 would have increased/decreased by NT$12,736,000 and NT$10,383,000, respectively, due to a rise/fall in the fair value of financial assets at FVTPL. Meanwhile, pre-tax other comprehensive income for 2020 and 2019 would have increased/decreased by NT$6,646,000 and NT$7,750,000, respectively, due to a rise/fall in the fair value of financial assets at FVTOCI.

There was no significant change in the consolidated entity's equity price sensitivity from the previous year.

Credit risk

Credit risk refers to the risk of financial loss due to counterparties'failure in fulfilling contractual obligations. As at the balance sheet date, the consolidated entity's maximum exposure to the risk of loss due to counterparties' default on contractual obligations is represented by the book value of financial assets shown on the consolidated balance sheet.

Lease proceeds receivable by the consolidated entity were concentrated in three main customers, which accounted for 94% / and 95% /of the balance as at December 31, 2020 and 2019, respectively. However, the consolidated entity expects no significant credit risk as it has collected appropriate amounts of deposit.

Furthermore, due to the fact that the consolidated entity places liquid capital with banks of high credit rating issued by reputable inte[r] national rating agencies, there should be limited level of credit risk exposure.

3. Liquidity risk

The consolidated entity maintains adequate position of cash and cash equivalents as well as bank credit lines to support corporate operations and to mitigate effects of cash flow variation. The management constantly monitors use of bank limits and makes sure that borrowing terms are duly complied.

Maturity analysis for contracted non-derivative financial liabilities was prepared based on the earliest possible repayment dates, using undiscounted cash flows (including principal and estimated interest). Cash flows include interest and principal payments.

The following table shows the earliest times that the consolidated entity may be demanded to make immediate repayment of bank loans, without considering the likelihood of such demands. Maturity analysis of other non derivative financial liabilities is prepared based on the agreed repayment date.

Undiscounted amounts of floating interest cash flow are estimated using yield curve as at the balance sheet date.

December 31逞翦 9

December 31逞翦9
	Repayable
	upon demand or withi 1				3	months to 1
		month	1 to 3 months			year	1	to 5 years
Non-derivative fnancial liabilities Non-interest beag
liabilities	＄	232,447	＄		＄		＄
Floating rate instments		210,737				166,423
Fixed rate istrments	＄	290,999 734.183	＄	520,000 520.000	＄	166.23	$	2,116,000 2116.000
December 31 2019
	Repayable
	upon demand or witin 1				3	months to 1
		month	1 to 3 months			year	1	to 5 years
Non-derivative
fmancial liabilities
Non-iterest bearig
liabilities	＄	202,275	＄		＄		＄
Floating rate istrments		228,923		151,898				100,000
Fixed rate
instments		358,996		630,000				1,906,000
	＄	720,194	＄	781,898	＄		$	2,QQ6,QOO

Bank borrowing constitutes a main source of liquidity for the consolidated entity. As at December 31, 2020 and 2019, the consolidated entity had undrawn bank limits ofNT$1,533,201,000 and NT$1,552,077,000, respectively.

XXVII. Related四立transaction

All income, expenses, and losses between the Company and subsidiaries (being the Company's related parties) have been eliminated during consolidation, and therefore were not disclosed in the f tnote.

The consolidated entity had paid the following compensations to its directors and the executive management:

the executive management:
		2020		2019
Shor-ter employee benefts Post-employent benefts	$	15,649 180	$	15,690 180
	$	l5,829	$	1 5今87O

Compensation to directors and members of the executive management is determined by the Remuneration Committee based on individual performance and market trends. XXVIII. Pledged Assets

The consolidated entity has placed part of its inventory, property, plant, equipment, and investment property as collaterals to secure bank borrowings. Below is a summary of assets pledged as collaterals:

assets pledged as collaterals:
Inventores	December 31, 2020		December 31, 2019
- Properties pending sale Propery, Plant and Equipment	$	802,423	$	769,693
-Land		835,520		835,520
- Buildings Ivestment Propery		768,610 1.041.651 , ,		796,435 1,047,693
	$	3,448,2O4	$	3今449,34l

XXIX. Forei1m currencv-denominated financial assets of material imoact

The following information was aggregated by the foreign currencies other than functional currencies of the Group and the exchange rates between foreign currencies and respective functional currencies were disclosed. Foreign currency assets of material effect:

efect:
December 31 � 2020
	Foreig	curency	Exchange rate	Caning amount
Financial asset
Monetaritems
USD H	＄	647 161	28.480 3.673	$	18,443 590
				$	l 9,033

(To be Continued)

6 1

(Continued)

ed)
	Forei�		Exchan且e rate	Ca旦已amount
� items
USD HKD AUD	$	2,738 1,012 106	28.480 3.673 21.950	$	77,996 3,716 2,319
ZAR RMB		2,391 1,029	1.949 4.377		4,661 4,5O5
				$	93,197
December 31.,,2019
	Foreign	currency	Excha翌e rate	Carrying amount
Financial asset
Monetaryitems
USD HKD	＄	1,908 904	29.980 3.849	$	57,187 3.481
				$	6O,668
�items
USD HKD AUD		1,110 1,136 108	29.980 3.849 21.005	$	33,263 4,374 2,278
ZAR RMB		2,265 1,017	2.120 4.305		4,801 4.379
				$	49,095

The consolidated entity reported net gain (realized and unrealized) on exchange totaling NT$956,000 in 2020 and -NT$1,833,000 in 2019. Due to the broad diversity of foreign currencies used for transactions, the consolidated entity was unable to disclose exchange gains/losses separately for each significant foreign currency.

XXX. Additional Disclosures

(I) Information related to significant transactions:
Loans to external parties.(None)
Endorsements/guarantees to external parties.(None)
Marketable securities held at year-end. (Appendix 1)
Cumulative purchase or sale of a single security totaling more than NT$ 300 million or 20% of paid-in capital.(None)
Acquisition ofreal estate properties amounting to more than NT$ 300 million or 20% of paid-in capital. (None)
Disposal of real estate properties amounting to more than NT$ 300 million or 20% of paid-in capital.(None)

Sales and purchases to/from related parties amounting to more than NT$ 100 million or 20% of paid-in capital.(None)
Related party receivables amounting to more than NT$ 100 million or 20% of paid-in capital.(None)

9. Trading of derivatives.(None)

Others: Major business dealings between the parent company and subsidiaries, and transactions between subsidiaries.(None)
(II) Information on business investments. (Appendix 2)
(III) Information relating to investments in the Mainland.(None)
(IV) Major shareholders: Names of shareholders with more than 5% ownership interest,

and the number and percentage of shares held. (Appendix 3)

XXXI. Se 粵 ents Information

Information provided to the decision maker for resource allocation and performance evaluation; provide explanation by the types of product or service delivered. Reporting segments for the consolidated entity are as follows:

Department store segment -Taoyuan Branch

-Taipei Branch

Investment Segment

Construction Segment

Income and business performance of the Company and subsidiaries, reported by segments, are as follows:

Se醞ent revenues and results

The following was an analysis of the Group's revenue and results by the reporting department.

	Segent	Revenue			segent proft	segent proft	or loss
	2020	2019			2020		2019
Deparment store segent Taoyan Brach	$ 282,363	$ 254,947		$	34,142	$	36,412
- Taipei Branch Ivestment Segent Constrction Segent Total fom continuing	206,639 5,769 59,669	198,562 5,871 1 90,796	(		140,753 3,156 l 6,233)	(	127,124 3,245 59,5O9)
operations	$ 554,44O	$ 6 5 O ` 1 76			161,818		107,272

(To be Continued)

6 3

(Continued)

ed)
	Segent	Revenue		segment proft		or loss
	2020	2019		2020		2019
Other income and interest
mcome Other gains and losses			＄	18,033 7,326	$	19,728 39,644
Financial costs Share of proft/loss fom			(	35,110)	(	36,751)
equity-accounted associated
comparues Proft befre tax			$	4.176 156,243	$	3.473 1 33,366

The investment, construction, and fo d & beverage segments each paid the department store segment a rent of NT$600,000 in 2020 and 2019; these amounts have been eliminated upon consolidation. All income of the above reporting segments were generated from transactions with external customers.

Segment gain refers to profits made by each segment. It excludes other income and interest income, other gains and losses, financial cost, share of profit/loss from equity accounted associated companies, and income tax expense. These amounts are reported to the decision maker for allocating segment resources and evaluating segment performance.

6 4

Unit: NTD thousand

Tonlin Depaiiment Store Co., Ltd. and Subsidiaries

Marketable securities held

December 31, 2020

Table 1

								December 31, 2020	December 31, 2020
Holding Company Name		Name and type of marketable securty	Relationship with the Holding Company	Financial Statement Account	Shares / units		Sharehol ding Carrying amountpercentag				Fair value	Remarks
									e
Tonlin	Deparent	Comon share
Store Co.,				--、-．·一···•
Ltd.		WK Techology Fund VII WK Technology Fund VIII WK Tchology Fund WK Technology Fund V		Equity instrment at FVTOCI Non-curent Equity instrment at FVTOCI - Non-curent Equity instrument at FVTOCI - Non-curent Equity instrment at FVTOCI -	2,240,000 2,890,000 598,282 2,167,500		＄	14,100 13,300 9,315 10,175	5.32 6.67 3.00 4.17	＄	14,100 13,300 9,315 10,175
				Non-current
		Wolesome Biophar Pty Ltd. Forune Technology Fund II Ltd.		Equity instrment at FVTOCI Non-curent Equity instrment at FVTOCI	10,000,000 242,296			14,630 374	12.16 13.49		14,630 374
				Non-current
		Harbinger Ventre Capital Corp.		Equity instrument at FVTOCI -	3,367			－	1.70
				Non-current
		Budworth Investment Limited		Equity instrument at FVTOCI -	15,186				1.67
				Non-current
		Julien's Interational Enterairent Group Co., Ltd. KDH Desig CO., Ltd. Prefrred share Phyto Ceutica Inc.		Equity instrment at FVTOCI Non-curent Equity instrument at FVTOCI Non-curent Equity instnent at FVTOCI -	373,501 40,000 20,000	，：		4,563	1.30 2.03		4,563
				Non-current
		Benefciary cerifcate
		Jih Sun Money Market Fund		Financial assets at FVTPL -	2,022,622.43			30,238			30,238
				Current
		Fralin Templeton Sinoam Money Market		Financial assets at FVTPL-	2,058,507.27			21,467			21,467
		Fund		Cu叮ent
		FSITC Taiwan Money Market		Financial assets at FVTPL -	2,544,733.50			39,274			39,274
				Curent

(To be Continued)

(Continued)

						December 31,	2020
Holding Company Name	Name and type of marketable security	Relationship with the Holding Company	Financial Statement Account	Shares/ units	Carying amount		Sharehol ding percentag	Fair value		Remarks
							e
	Prudential Financial Money Market Fund		Financial assets at FVTPL -	1,883,681.50	＄	30,054		＄	30,054
			Curent
	Mega Diamond Money Market		Financial assets at FVTPL -	2,060,895.39		26,070			26,070
			cUlTent
	CTBC Asia Pacifc Real Income Fund		Financial assets at FVTPL -	200,000.00		2,124			2,124
			Current
	Taishin 1699 Money Market		Financial assets at FVTPL -	1,465,652.44		20,000			20,000
	Capital Potential Icome Mlt-Asst NA USD		Curent Financial assets at FVTPL -	11,062.62		3,873			3,873
			Curent
	Franklin Utilities Fund A		Financial assets at FVTPL -	2,145.00		1,202			1,202
			Current
	Franklin Templeton Investment Funds-		Financial assets at FVTPL -	7,692.31		1,970			1,970
	Franklin U.S. Goverent Fund Eastsprng Investments - US Ivestment Grade Bond Fund - AM		Curent Financial assets at FVTPL - Curent	14,483.79		5,365			5,365
	Pictet-Russian Equities R USD		Financial assets at FVTPL -	50.50		115			115
			Curent
	Franklin Templeton Investment Funds- Franklin U.S. Goverent Fund (dividend-		Financial assets at FVTPL - Curent	10,276.25		2,631			2,631
	paying) (FOF)
	Franlin Techology Fund (sub-fnd)		Financial assets at FVTPL -	715.85		789			789
			Current
	Franklin Biotechology Discovery Fund (sub- fnd) BlackRock Global Funds - World Techology		Financial assets at FVTPL - Curent Financial assets at FVTPL -	605.76 628.75		778 1,396			778 1,396
	FundA2		Current
	0202 JPMorgan ASEAN Fund		Financial assets at FVTPL -	367.32		1,503			1,503
			Current
	LionGlobal Vietnam Fund		Financial assets at FVTPL -	51,206.01		938			938
			Curent
	Allianz Global Investors Fund - Allianz		Financial assets at FVTPL -	244.83		1,476			1,476
	。riental Income A		Current
	JPMorgan Funds - US Aggegate Bond Fund		Financial assets at FVTPL -	11,554.62		6,299			6,299
			Curent
	JPMorgan Funds - China Fund		Financial assets at FVTPL -	128.95		454			454
			Curent

(To be Continued)

(Continued)

						December 31,	2020
Holding Company Name	Name and tye of marketable security	Relationship with the Holding Company	Financial Statement Account	Shares/ units	Carying amount		Sharehol ding percentag		Fair	value	Remaks
							e
	JPMorgan Asia Growth		Financial assets at FVTPL -	636.45	＄	442			＄	442
			Current
	Fuh Hwa South Afca Shor-Ter Income		Financial assets at FVTPL -	60,470.50		1,946				1,946
	ZAR Fund A		Current
	Fuh Hwa South Afca Short-Term Income ZARFundB Nomura Four Yeas Ladder Matty Emerging Market Bond Fund CNY Ace		Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	60,260.90 96,000.00		1,073 4,505				1,073 4,505
	- Bonds
	Saudi Iterational Bond (II) Brazilia Goverent Bonds (VII)		Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	2,000 2,000		6,826 6,281				6,826 6,281
	European Investment Bank Bonds (X)		Financial assets at FVTPL -	8,000		1,642				1,642
			Current
	- Corporate bonds AT&T Cororate Bonds (VI)		Financial assets at FVTPL -	2,000		6,546				6,546
			Current
	Walgeens Boots Alliance Corporate Bonds (IV)		Financial assets at FVTPL - Curent	2,000		5,957				5,957
	Pemex Corporate Bonds (VII) Apple Ic. Corporate Bonds (VII)		Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	1,200 1,700		3,067 5,808				3,067 5,808
	Common shares of domestic companies United Microelectronics Cororation		Financial assets at FVTPL - Curent	35,801		1,688		．．		1,688
	Lida Holdings Limited		Financial assets at FVTPL -	51,600		1,858				1,858
			Current
	China Petrochemical Development Cororation Taiwan Tea Corporation Asia Optical Co. Inc. Crystalve Medical Cororation		Financial assets at FVTPL - Cuent Finacial assets at FVTPL - Curent Finacial assets at FVTPL - Curent Financial assets at FVTPL - Curent	362,250 309,000 74,000 78,000		4,220 5,531 5,469 3,877				4,220 5,531 5,469 3,877

(To be Continued)

(Continued)

(Continued)
						December 31,	2020
Holding Company Nae	Name and type of marketable security	Relationship with the Holding Company	Financial Statement Account	Shares/ units	Carying amount			Sharehol ding percentag	Fair value		Remarks
								e
	Twoway Communications, Inc.		Financial assets at FVTPL -	35,000	＄	353			＄	353
			Current
	Y ageo Cororation		Financial assets at FVTPL- Curent	29,000		15,022				15,022
	Mutual-Tek industries Co., Ltd.		Financial assets at FVTPL -	196,000		2,064				2,064
			Current
	Powerech Techology Inc.		Financial assets at FVTPL - Curent	9,000		854				854
	CTBC Financial Holding Co., Ltd. Wistron Cororation Yeong Guan Energy Techology Group		Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent Financial assets at FVTPL -	235,000 188,000 84,962		4,629 5,828 7,001				4,629 5,828 7,001
	Company Limited		Current
	Ta Chen Stainless Pipe Co., Ltd.		Financial assets at FVTPL -	37,000		1,158				1,158
			Cu叮ent
	Zhen Ding Technology Holding Limited		Financial assets at FVTPL-	15,400		1,756				1,756
			Current
	P ANJIT Interational Inc.		Financial assets at FVTPL - Curent	16,000		866				866
	Mirle Automation Corp.		Financial assets at FVTPL - Curent	21,000		924				924
	King Yuan Electronics Co., Ltd.		Financial assets at FVTPL - Curent	91,000		3,162				3,162
	FuSheng Precision Co., Ltd.		Financial assets at FVTPL -	217,000		37,649				37,649
			Current
	Taiwan Hig Speed Rail Corporation		Financial assets at FVTPL - Curent	445,000		14,106				14,106
GUAN QUAN IVESTMENT	Common shares of domestic companies
co., Ltd.	Tonlin Department Store Co., Ltd.	Parent company	Equity instrument at FVTOCI Non-curent	8,750,000		462,875		4.19		462,875	(ote 1 and 2)
	United Microelectronics Corporation		Financial assets at FVTPL -	11,851		558				558
			Current
	Benefciary cerifcate
	」ih Sun Money Market Fund		Financial assets at FVTPL - Curent	103,455.50		1,547				1,547
	Mega Diamond Money Market		Financial assets at FVTPL -	167,610.60		2,120				2,120
			Current

(To be Continued)

(Continued)

						December 31,	2020
Holding Company Name	Name and type of marketable securty	Relationship with the Holding Company	Financial Statement Account	Shares/ units	Carrying amount		Sharehol ding percentag	Fair value		Remarks
							e
JIAFONG	Taishin 1699 Money Market Comon shares of domestic companies		Financial assets at FVTPL - Curent	470,114.66	＄	6,415		＄	6,415
INVESTMENT
co., Ltd.	Tonlin Deparment Store Co., Ltd. United Microelectronics Cororation Benefciary cerifcate	Parent company	Equity instrument at FVTOCI - Non-curent Financial assets at FVTPL - Curent	8,767,000 13,219		463,775 623	4.20		463,775 623	(Note 1 and 2)
	Mega Diamond Money Market	Financial assets at FVTPL -		616,885.62		7,803			7,803
			Current
SONG YUAN IVESTMENT	Common shares of domestic companies
co., Ltd.	Tonlin Deparment Store Co., Ltd. United Microelectronics Cororation - Cororate bonds COOPERTIE VE RABOB Benefciary cerifcate	Parent company	Equity instrment at FVTOCI Non-cuent Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	7,366,000 8,865 100,000		389,662 418 2,319	3.53		389,662 418 2,319	(Note 1 and 2)
	Jih Sun Money Market Fund	Financial assets at FVTPL- Curent		251,707.53		3,763			3,763
	FSITC Taiwan Money Market Mega Diamond Money Market	Financial assets at FVTPL- Cuent Financial assets a FVTPL -		98,890.60 188,454.23		1,526 2,384			1,526 2,384
			Current
	PIMCOGIS		Financial assets at FVTPL -	16,517.58		5,245			5,245
			Current
	FRNLINTEM PERAL MCRO HOLDINGS LTD	- ．．	Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	10,477.65 273.60		3,068 2,996	-		3,068 2,996
	- Foreig shares
	HK shares
	HSBC HOLDIGS PLC		Financial assets at FVTPL-	5,220		781			781
			Current
	KUNLUN ENERGY		Financial assets at FVTPL -	8,000		197			197
			Current

(To be Continued)

(Continued)

							December 31,	2020
Holding Company Name		Name and type of marketable securty	Relationship with the Holding Company	Financial Statement Account	Shares / units	Carying amount		Sharehol ding percentag	Fair value		Remarks
								e
		CAPITAL ESTATE LTD SINOFER HOLDIGS LIMITED ESPRIT HOLDIGS LTD. CHIA SHANSHUI CEMENT SHENGUAN HOLDIGS LIFESTYLE INTERNAIONAL CHIA COAL ENERGY CHINA COSCO	.	Financial assets at FVTPL - Current Financial assets at FVTPL- Current Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent Financial assets at FVTPL - Curent	57,000 50,000 12,499 7,000 16,000 10,500 11,000 18,000	＄	82 140 52 47 18 237 94 615		＄	82 140 52 47 18 237 94 615
		PIH MOBILE LTD LINIG CO LTD		Financial assets at FVTPL- Current Financial assets at FVTPL - Curent	13,000 7,188		46 1,407			46 1,407
		U.S. shares
		VANECK VEXTORS ETF TR	－	Financial assets at FVTPL - Curent	1,400		963			963
		RUSSIA ETF
		PROSHARES TR ULTRSHORT		Financial assets at FVTPL - Current	700		625			625
		TR TREAS
		PROSHARE TRII PROSHARES		Financial assets at FVTPL - Curent	2,950		1,384			1,384
		ULTRSHORT GOLD
SHUN	TAI	Common shares of domestic companies
INVESTMENT
CO., Ltd.		Tonlin Depaent Store Co., Ltd. United Microelectronics Cororation Benefciary cerifcate Jih Sun Money Maket Fund Taishin 1699 Money Market	Parent company	Equity instrment at FVTOCI - Non-curent Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Curent	8,439,000 22,337 172,753.17 440,732.50		446,423 1,053 2,583 6,014	4.04		446,423 1,053 2,583 6,014	(Note 1 and 2)

Note 1: Subsidiaries' holding of the Company's shares were reclassified as treasury stock, and accounted using the book value at which the Company was recognized as investment by the subsidiary in the beginning of 2002. Note 2: Fully eliminated when preparing consolidated financial statements.

Note 3: See Appendix 2 for information relating to investments in subs汕aries and associated companies.

Tonlin Department Store Co., Ltd. and Subsidiaries Information of Investees

2020

Table 2

Unit: NTD thousand

					Investment	Amount	Amount	As of	December 31, 2020	December 31, 2020				Investment gains	Investment gains
Investor	Investor Company	Location	Main Businesses and Products	December 31, 2020		December 31, 2019		Shares	Percentage （％）	Carying aount		Current period proft (loss) of the investee (ote 2)		(losses) recogized in the curent period (ote 2)		Remarks
Tonlin Department StoreDeHome Development		Taipei	General	＄	600,000	＄	600,000	60,000,000	100.00	＄	446,499	（＄	24,474)	（＄	24,474)	Subsidiary(Notes 2
Co., Ltd.	Co., Ltd. Chung Hsiao Enterrse	City Taipei	construction General leasing		101,952		101,952	3,776,000	20.00		162,327		20,878		4,176	and 3) Equity-accounted
	Co., Ltd.	City														investee
	SONG YUAN IVESTMENT CO.,	Taipei City	Investment		350,000		350,000	35,000,000	100.00		81,239		4,824	（	332)	Subsidiary(Notes 1, 2, 3, and 4)
	LTD.
SHU TAI IVESTMENT co.,LD. GUAN QUAN IVESTMENT CO., LD. JIAFONG		Tipei City Taipei City Tipei	Investment Investment Investment		350,000 350,000 350,000		350,000 350,000 350,000	35,000,000 35,000,000 35,000,000	100.00 100.00 100.00		43,498 30,418 29,915		7,362 6,576 6,707		1,454 451 570	Subsidiary(Notes 1, 2, 3, and 4) Subsidiar(Notes 1, 2, 3, and 4) Subsidiary(Notes 1,
	INVESTMENT CO., LD.	City														2, 3, and 4)

Note 1: Subsidiaries'holding of the Company's shares were reclassified as treasury stock, and accounted using the book value at which the Company was recognized as investment by the subsidiary in the beginning of 2002. Note 2: Calculated based on the entity's audited financial statements as at December 31, 2020.

Note 3: Fully eliminated when preparing consolidated financial statements.

JIA FONG INVESTMENT CO., LTD. and the amount of profit/loss reported by the respective investees were due to distribution of dividends. Note 4: Differences between investment gains/losses the Company had recognized on SONG YUAN INVESTMENT CO., LTD., SHUN TAI INVESTMENT CO., LTD., GUAN QUAN INVESTMENT CO., LTD., and

Tonlin Department Store Co., Ltd. and Subsidiaries

Information on main investors

December 31, 2020

Table 3

		Shares
Name of major shareholder	No. of shares held	Shareholding percentage (%)
SHUEN SHYANG CO.,LTD.	35,913,664	17.20
Weng Chun-Chih 」IN DUO LIH ENTERPRISES PTY LTD.	23,100,920 22,936,442	11.06 10.98
FlySun Development Co., Ltd.	12,579,333	6.02

Note 1: Information on major shareholders, as presented in this chart, was taken from records of Taiwan Depository & Clearing Corporation as at the final business day of the reported quarter, and included parties holding book-entry common and preferred shares (including treasury stock) for an aggregate ownership of 5% and above. Share capital reported in the Company's consolidated financial statements may differ from the number of shares delivered via book entry due to different basis of preparation/calculation.
Note 2: The aforementioned information will be disclosed by the trustors'personal accounts settled by the trustees If the shareholders put the shares into a trust. As for the insider declaration of the ownership percentage over 10%, including the shares· on hand and those being put in the trust and may be able to decide the usage of the trust assets, please refer to the declaration information on Market Observation Post System (MOPS).

AI assistant

TONLIN — Audit Report / Information 2020

52230_rns_2020-11-11_2c1f8be0-48a3-433a-94ed-a4b9c00da054.pdf

Audit opinions

Basis of audit opinion

Key audit issues

Impairment assessment of investment properties

Other Matters

Responsibilities of the management and governing body to the consolidated fmancial statements

Responsibilities of the auditor when auditing consolidated fmancial statements

Notice to Readers

Tonlin Department u

Consoli

Unit: NTD thousand

Tonlin Department

. and Subsidiaries rehensive Income

er 31, 2020 and 2019

Unit: NTD thousands, except EPS which is in dollars

(Continued)

Tonlin Department Consolidated ash Flows For periods from January 1 to December 31, 2020 and 2019

Tonlin Department Store Co., Ltd. and Subsidiaries Notes to consolidated financial statements

OrgamzaUon and operations

II. The Authorization of Financial Statements

III.

Aoolication of New and Revised International Financial Reoortin!! Standards

IV. Summa�Policies

(I) Statement of compliance

(III) Classification of current and non-current assets and liabilities

Current assets include:

Current liabilities include:

(IV) Basis of consolidation

(V) Foreign currency

1. Acquisition by separate purchase

(XI)

(XII)

(1) Measurement category

C.Equity instruments at FVTOCI

(2) Impairment of financial assets

2 . Equity instrument

(XIII)

Revenue from sale of merchandise

(XIV) Leases

(XV) Borrowing costs

(XVI) Employee benefits

1. Short-term employee benefits

(XVII) Income tax

1. Tax currently payable

2. Deferred tax

3. Current and deferred income tax

(I) Income tax

(III) Impairment of tangible assets

VI. Cash and cash eguivalents

VII.

Financial assets at FVTPL- Current

VIII. Financial assets at FVTOCI

IX.

X.

Notes receivable� and other receivables

(Continued)

(I) Notes and accounts receivable

(II)

XI. Inventories

XII. Subsidiaries

Subsidiaries included in the consolidated financial statements

This consolidated financial statement encompasses the following:

XIV Pro�ment

XV. Investment Property

XVIII. Accrued ex卫enses

XIX. Post-em�lans

(I) Defined contribution plans

Changes in net defined benefit liability:

XX. Eqmtv

(I) Common share capital

(IV) Special reserves

(V) Other items of equity

Unrealized gain(oss) on financial assets at FVTOCI

(VI) Treasury stock

Unit: Thousand Shares

Revenues XXI.

(I) Breakdown of operating revenues

TONLIN Audit Report / Information 2020