TSRC - Interim / Quarterly Report 2021

Stock Code:2103

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Three Months Ended March 31, 2021 and 2020

Address: No. 2, Singgong Rd., Dashe Dist., Kaohsiung City Telephone: (07)351-3811

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～9 9～11 11 12～39 39～42 42 43 43 43 43 44～47 47 47～48 48 49

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses Due to Major Disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in Mainland China
(d) Major shareholders
(14) Segment information

Page

1
2
3
4
5
6
7
8
8
8～9
9～11
11
12～39
39～42
42
43
43
43
43
44～47
47
47～48
48
49

==> picture [169 x 19] intentionally omitted <==

KPMG

台北市110615信義路5段7號68樓(台北101大樓) Telephone 電話 + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax 傳真 + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet 網址 home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors of TSRC Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of TSRC Corporation (the "Company") and its subsidiaries (together referred to as the "Group") as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $3,444,667 thousand and $3,710,254 thousand, constituting 11% and 12% of the consolidated total assets; and the total liabilities amounting to $805,038 thousand and $1,001,638 thousand, constituting 6% and 7% of the consolidated total liabilities as of March 31, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $115,356 thousand and $(17,243) thousand, constituting 10% of the consolidated total comprehensive income (loss) for the three months ended March 31, 2021 and 2020, respectively.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Furthermore, as stated in Note 6(h), the other equity accounted investments of the Group in its investee companies of $1,527,641 thousand and $1,032,699 thousand as of March 31, 2021 and 2020, respectively, and its equity in net earnings (loss) on these investee companies of $215,608 thousand and $(15,839) thousand for the three months ended March 31, 2021 and 2020, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of TSRC Corporation and its subsidiaries as of March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Ming-Hung Huang and Lin Wu.

KPMG

Taipei, Taiwan (Republic of China) May 6, 2021

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of March 31, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31 and March 31, 2020 (Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1150 Notes receivable, net (note 6(d)) 1170 Accounts receivable, net (note 6(d)) 1200 Other receivables (notes 6(e) and 7) 1220 Current income tax assets 130x Inventories (note 6(f)) 1460 Non-current assets held for sale (note 6(g)) 1479 Other current assets Total current assets Non-current assets: 1518 Non-current financial assets at fair value through other comprehensive income (note 6(c)) 1550 Investments accounted for under equity method (notes 6(h) and 7) 1600 Property, plant and equipment (notes 6(i), 8 and 9) 1755 Right-of-use assets (note 6(j)) 1760 Investment property (note 6(k)) 1780 Intangible assets (note 6(l)) 1840 Deferred income tax assets 1900 Other non-current assets (note 8) Total non-current assets Total assets	March 31, 2021 Amount % $ 3,637,903 12 27,689 - 893,746 3 3,647,526 12 82,847 - 12,151 - 5,002,707 16 201,665 1 772,143 2 14,278,377 46 1,093,607 4 1,527,641 5 10,200,897 32 975,479 3 1,563,192 5 988,302 3 275,932 1 157,179 1 16,782,229 54 $ 31,060,606 100	December 31, 2020 Amount % 3,278,463 12 3,460 - 571,220 2 2,802,351 10 146,171 - 12,151 - 4,772,464 16 - - 851,356 3 12,437,636 43 952,645 4 1,303,787 4 10,516,517 36 1,022,972 3 1,566,873 5 1,012,405 3 288,429 1 167,118 1 16,830,746 57 29,268,382 100	March 31, 2020 Amount % 4,535,146 14 7,404 - 680,697 2 2,736,676 9 146,276 - 11,730 - 5,908,120 19 - - 547,860 2 14,573,909 46 916,887 4 1,032,699 3 10,069,372 32 1,250,651 4 1,577,917 5 1,671,034 5 280,786 1 89,000 - 16,888,346 54 31,462,255 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(m)) 2322 Current portion of long-term borrowings (notes 6(m) and 8) 2120 Current financial liabilities at fair value through profit or loss (note 6(b)) 2170 Accounts payable 2180 Accounts payable－related parties (note 7) 2230 Current income tax liabilities 2219 Other payables (notes 6(n), 6(t) and 7) 2280 Current lease liabilities (note 6(o)) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2541 Long-term bank borrowings (notes 6(m) and 8) 2542 Other long-term borrowings (note 6(m)) 2550 Non-current provision liabilities (note 7) 2570 Deferred income tax liabilities 2580 Non-current lease liabilities (note 6(o)) 2600 Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to shareholders of the Company (note 6(r)) : 3100 Common stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3350 Unappropriated earnings Other equity: 3410 Financial statement translation differences for foreign operations 3420 Unrealized gains or losses on financial assets measured at fair value through other comprehensive income 3450 Gains or losses on hedging instrument Total equity attributable to shareholders of the Company 36xx Non-controlling interests Total equity Total liabilities and equity	March 31, 2021 Amount % $ 4,212,684 14 2,383,421 8 932 - 1,601,743 5 46,758 - 357,360 1 1,175,449 4 123,892 - 173,658 1 10,075,897 33 2,073,559 7 349,744 1 32,279 - 932,505 3 461,246 1 131,612 - 3,980,945 12 14,056,842 45 8,257,099 27 49,531 - 4,068,862 13 2,380,940 8 6,449,802 21 (273,515) (1) 699,819 2 (71,165) - 355,139 1 15,111,571 49 1,892,193 6 17,003,764 55 $ 31,060,606 100	December 31, 2020 Amount % 3,789,276 13 2,784,129 10 32,628 - 1,643,264 6 - - 172,787 1 1,204,135 4 139,263 - 128,285 - 9,893,767 34 1,679,735 5 349,341 1 31,819 - 807,700 3 492,827 2 154,534 1 3,515,956 12 13,409,723 46 8,257,099 28 49,531 - 4,068,862 14 1,483,970 5 5,552,832 19 (198,125) (1) 558,902 2 (81,119) - 279,658 1 14,139,120 48 1,719,539 6 15,858,659 54 29,268,382 100	March 31, 2020
						Amount %
						5,833,899 19 836,375 3 2,476 - 1,037,878 3 30,900 - 145,007 - 943,705 3 167,608 - 199,046 1 9,196,894 29 3,885,066 12 349,721 1 16,221 - 909,400 3 693,456 2 124,186 - 5,978,050 18 15,174,944 47 8,257,099 26 47,140 - 3,977,141 13 2,084,024 7 6,061,165 20 (84,547) - 519,810 2 (101,882) - 333,381 2 14,698,785 48 1,588,526 5 16,287,311 53 31,462,255 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Share)

4000 Revenue (notes 6(u) and 7) 5000 Operating costs (notes 6(f), 6(i), 6(j), 6(n), 6(o), 6(p), 6(t) and 7) 5910 Gross profit 6000 Operating expenses (notes 6(d), 6(i),6(j), 6(o), 6(p), 6(t) and 7): 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss determined in accordance with IFRS 9 Total operating expenses 6500 Other income and expenses, net (notes 6(v) and 7) 6900 Operating profit Non-operating income and expenses (notes 6(h), 6(o), 6(w) and 7): 7100 Interest income 7020 Other gains and losses 7050 Finance costs 7370 Share of gain (loss) of associates and joint ventures accounted for under equity method Total non-operating income and expenses 7900 Net income before tax 7950 Less: tax expenses (note 6(q)) Net income 8300 Other comprehensive income: 8310 Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method 8399 Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income Total comprehensive income Net income (loss) attributable to: 8610 Shareholders of parent 8620 Non-controlling interests Total comprehensive income attributable to: 8710 Shareholders of parent 8720 Non-controlling interests 9710 Basic earnings per share (New Taiwan Dollars) (note 6(s)) 9810 Diluted earnings per share (in New Taiwan dollars) (note 6(s))	For the three month	s ended March 31 2020 Amount % 6,493,846 100 5,732,699 88 761,147 12 238,848 4 267,949 4 93,440 1 1,435 - 601,672 9 42,238 - 201,713 3 16,154 - 6,649 - (40,301) (1) (15,839) - (33,337) (1) 168,376 2 73,774 1 94,602 1 (106,961) (2) - - (106,961) (2) (99,251) (2) (53,802) - - - (153,053) (2) (260,014) (4) (165,412) (3) 59,340 35,262 1 94,602 1 (176,907) (3) 11,495 - (165,412) (3) 0.07
	2021 Amount % $ 8,216,811 100 6,211,295 76 2,005,516 24 415,692 5 258,926 3 89,031 1 311 - 763,960 9 55,346 1 1,296,902 16 6,118 - (3,852) - (29,372) - 215,608 2 188,502 2 1,485,404 18 399,273 5 1,086,131 13 140,917 2 - - 140,917 2 (87,300) (1) 5,357 - - - (81,943) (1) 58,974 1 $ 1,145,105 14 $ 896,970 11 189,161 2 $ 1,086,131 13 $ 972,451 12 172,654 2 $ 1,145,105 14 $ 1.09 $ 1.08
		0.07

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity For the three months ended March 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

			Equity attributable t	Equity attributable t	o owners of parent					Non-controlling interests	Total equity
Common stock	Capital surplus		Retained earnings			Total other equity interest			Total equity attributable to owners of parent
					Financial statements translation differences for foreign operations	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Gains (losses) on hedging instruments	Total
		Legal reserve	Unappropriated retained earnings	Total
$ 8,257,099 - -	47,140 - -	3,977,141 - -	1,940,361 59,340 -	5,917,502 59,340 -	23,383 - (107,930)	711,094 - (106,961)	(80,526) - (21,356)	653,951 - (236,247)	14,875,692 59,340 (236,247)	1,577,031 35,262 (23,767)	16,452,723 94,602 (260,014)
-	-	-	59,340	59,340	(107,930)	(106,961)	(21,356)	(236,247)	(176,907)	11,495	(165,412)
-	-	-	84,323	84,323	-	(84,323)	-	(84,323)	-	-	-
$ 8,257,099	47,140	3,977,141	2,084,024	6,061,165	(84,547)	519,810	(101,882)	333,381	14,698,785	1,588,526	16,287,311
$ 8,257,099 - -	49,531 - -	4,068,862 - -	1,483,970 896,970 -	5,552,832 896,970 -	(198,125) - (75,390)	558,902 - 140,917	(81,119) - 9,954	279,658 - 75,481	14,139,120 896,970 75,481	1,719,539 189,161 (16,507)	15,858,659 1,086,131 58,974
-	-	-	896,970	896,970	(75,390)	140,917	9,954	75,481	972,451	172,654	1,145,105
$ 8,257,099	49,531	4,068,862	2,380,940	6,449,802	(273,515)	699,819	(71,165)	355,139	15,111,571	1,892,193	17,003,764

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Consolidated net income before tax Adjustments: Adjustments to reconcile profit and loss: Depreciation Amortization Impairment loss determined in accordance with IFRS 9 Interest expense Interest income Share of loss (profit) of associates and joint ventures accounted for under equity method Loss on disposal of property, plant and equipment Amortization to operating costs and inventories Total adjustments to reconcile profit and loss Changes in operating assets and liabilities: Net changes in operating assets: Financial assets at fair value through profit or loss Notes receivable Accounts receivable Other receivables Inventories Other current assets Total changes in operating assets, net Net changes in operating liabilities: Financial liabilities at fair value through profit or loss Accounts payable Accounts payable－related parties Other payables Other current liabilities Net defined benefit liability Other non-current liabilities Total changes in operating liabilities, net Total changes in operating assets and liabilities, net Total adjustments Cash provided by operating activities Interest income received Interest paid Income taxes paid Net cash flow from (used in) operating activities Cash flows from (used in) investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in other non-current assets Increase in restricted assets Net cash used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of lease liabilities Cash dividends paid Net cash from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		For the three months ended March 31 2021 2020 $ 1,485,404 168,376 281,361 254,373 30,401 38,628 311 1,435 29,372 40,301 (6,118) (16,154) (215,608) 15,839 1,189 8,414 20,957 23,924 141,865 366,760 (24,229) (7,390) (322,526) 185,650 (845,486) 21,506 86,260 (26,018) (230,243) 506,559 18,944 (54,310) (1,317,280) 625,997 (31,696) (3,196) (41,521) (1,354,468) 46,758 (28,518) (13,126) (332,265) 45,373 (20,192) (17,413) (57,075) (5,509) 1,985 (17,134) (1,793,729) (1,334,414) (1,167,732) (1,192,549) (800,972) 292,855 (632,596) 2,434 11,166 (27,551) (38,841) (77,398) (68,571) 190,340 (728,842) - 135,404 (205,428) (327,331) 30 55 - (25,450) 10,265 (13,085) 41,017 - (154,116) (230,407) 7,354,922 9,110,077 (6,838,550) (7,994,469) 510,040 134,257 (513,938) (368,419) (40,301) (44,537) (65) (145) 472,108 836,764 (148,892) (37,649) 359,440 (160,134) 3,278,463 4,695,280 $ 3,637,903 4,535,146	For the three months ended March 31 2021 2020 $ 1,485,404 168,376 281,361 254,373 30,401 38,628 311 1,435 29,372 40,301 (6,118) (16,154) (215,608) 15,839 1,189 8,414 20,957 23,924 141,865 366,760 (24,229) (7,390) (322,526) 185,650 (845,486) 21,506 86,260 (26,018) (230,243) 506,559 18,944 (54,310) (1,317,280) 625,997 (31,696) (3,196) (41,521) (1,354,468) 46,758 (28,518) (13,126) (332,265) 45,373 (20,192) (17,413) (57,075) (5,509) 1,985 (17,134) (1,793,729) (1,334,414) (1,167,732) (1,192,549) (800,972) 292,855 (632,596) 2,434 11,166 (27,551) (38,841) (77,398) (68,571) 190,340 (728,842) - 135,404 (205,428) (327,331) 30 55 - (25,450) 10,265 (13,085) 41,017 - (154,116) (230,407) 7,354,922 9,110,077 (6,838,550) (7,994,469) 510,040 134,257 (513,938) (368,419) (40,301) (44,537) (65) (145) 472,108 836,764 (148,892) (37,649) 359,440 (160,134) 3,278,463 4,695,280 $ 3,637,903 4,535,146
		2021 $ 1,485,404 281,361 30,401 311 29,372 (6,118) (215,608) 1,189 20,957 141,865 (24,229) (322,526) (845,486) 86,260 (230,243) 18,944 (1,317,280) (31,696) (41,521) 46,758 (13,126) 45,373 (17,413) (5,509) (17,134) (1,334,414) (1,192,549) 292,855 2,434 (27,551) (77,398) 190,340 - (205,428) 30 - 10,265 41,017 (154,116) 7,354,922 (6,838,550) 510,040 (513,938) (40,301) (65) 472,108 (148,892) 359,440 3,278,463 $ 3,637,903

			254,373 38,628 1,435 40,301 (16,154) 15,839 8,414 23,924
			366,760
			(7,390) 185,650 21,506 (26,018) 506,559 (54,310)
			625,997
			(3,196) (1,354,468) (28,518) (332,265) (20,192) (57,075) 1,985
			(1,793,729)
			(1,167,732)
			(800,972)
			(632,596) 11,166 (38,841) (68,571)
			(728,842)
			135,404 (327,331) 55 (25,450) (13,085) -
			(230,407)
			9,110,077 (7,994,469) 134,257 (368,419) (44,537) (145)
			836,764
			(37,649)
			(160,134) 4,695,280
			4,535,146

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020

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

(1) Company history

TSRC Corporation (the original name was Taiwan Synthetic Rubber Corporation, hereinafter referred to as "the Company") was incorporated in the Republic of China (ROC) on November 22, 1973, as a corporation limited by shares in accordance with the ROC Company Act. In May 1999, Taiwan Synthetic Rubber Corporation was renamed TSRC Corporation as approved by the stockholders' meeting. In June 2016, the Company changed its registered address to be No.2, Singgong Rd., Dashe Dist., Kaohsiung City. The consolidated financial statements comprise the Company and its subsidiaries (the Group) and the interests of the Group in associate companies and in jointly controlled companies. The Group is mainly engaged in the manufacture, import and sale of various types of synthetic rubber, and the import, export, and sale of related raw materials.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were approved by to the Board of Directors and issued on May 6, 2021.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
－
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities
as Current or Non-current”

Content of amendment
Effective date per
IASB
The
amendments
aim
to
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
liabilities
with
an
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current.
The amendments include clarifying the
classification requirements for debt a
company might settle by converting it into
equity.
January 1, 2023

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements.

(4) Summary of significant accounting policies

Except for the following, the significant accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 4 to the consolidated financial statements for the year ended December 31, 2020.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and IAS 34 "Interim Financial Reporting" which was endorsed and issued into effect by FSC. These consolidated financial statements do not include all of the information required by the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the FSC (hereinafter referred to as the IFRSs endorsed by the FSC) for the year-end consolidated financial statements.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Basis of consolidation

The basis for consolidation applied in these consolidated financial statements is consistent with that applied in the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 4(c) to the consolidated financial statements for the year ended December 31, 2020.

List of the subsidiaries included in the consolidated financial statements:

Name of investor	Name of investee	Scope of business	Percentage of ownership March 31, 2021 December 31, 2020 March 31, 2020 Description % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 (notes 1,3) % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 2) % 65.44 % 65.44 % 65.44 % 55.00 % 55.00 % 55.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3)	Percentage of ownership March 31, 2021 December 31, 2020 March 31, 2020 Description % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 (notes 1,3) % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 2) % 65.44 % 65.44 % 65.44 % 55.00 % 55.00 % 55.00 (note 3) % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (note 3)
			March 31, 2021	December 31, 2020
TSRC TSRC TSRC & Hardison International Corporation TSRC Trimurti Holding Corporation Trimurti Holding Corporation TSRC (Hong Kong) Limited TSRC (Hong Kong) Limited TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation Polybus Corporation Pte Ltd Polybus Corporation Pte Ltd Polybus Corporation Pte Ltd Hardison International Corporation	Trimurti Holding Corporation Hardison International Corporation Dymas Corporation TSRC (Vietnam) Co., Ltd. Polybus Corporation Pte Ltd TSRC (Hong Kong) Limited TSRC (Shanghai) Industries Ltd. TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation TSRC Specialty Materials LLC Shen Hua Chemical Industrial Co,. Ltd. TSRC-UBE (Nantong) Chemical Industrial Co., Ltd. TSRC (Nantong) Industries Ltd. Triton International Holdings Corporation	Investment Investment Investment Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products International commerce and investment Investment Production and sale of reengineering plastic, plastic compound metal, and plastic elasticity engineering products International commerce and investment Investment Production and sale of TPE Production and sale of synthetic rubber products Production and sale of butadiene rubber Production and sale of TPE Investment	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 65.44 % 55.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 65.44 % 55.00 % 100.00 % 100.00

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1: TSRC directly owns 19.48% of Dymas's equity and indirectly owns 80.52% via Hardison International Corporation, total directly and indirectly owns of equity are 100%.
Note 2: On November 3, 2020, Dexco Polymers Operating Company LLC (Dexco LLC) merged with TSRC Specialty Materials LLC, which is the surviving company, and Dexco LLC being the dissolved entity. Therefore, the company's name was changed from Dexco Polymers L.P. to TSRC Specialty Materials LLC, wherein the investment structure was simplified. TSRC (USA) Investment Corporation directly holds 100% of TSRC Specialty Materials LLC.
Note 3: It is an insignificant subsidiary, and its financial statement have not been reviewed.

(c) Non-current assets held for sale

Non-current assets or disposal groups comprising assets and liabilities that are highly probable to be recovered primarily through sale rather than through continuing use, are reclassified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group’s accounting policies. Thereafter, generally, the assets or disposal groups are measured at the lower of their carrying amount and fair value less costs to sell.

(d) Employee benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other one-off events.

(e) Income tax

Income tax expense for the period are best estimated by multiplying pretax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be allocated to current and deferred taxes based on its proportionate size.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “Interim Financial Reporting” endorsed by the FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated financial statements, estimates and underlying assumptions are consistent with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 5 to the consolidated financial statements for the year ended December 31, 2020.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

Except as explained below, there are no significant differences in the description of significant accounts from the consolidated financial statements for the year ended December 31, 2020, and the related information is provided in note 6 to the consolidated financial statements for the year ended December 31, 2020.

(a) Cash and cash equivalents

Cash on hand Checking and savings deposits Time deposits Cash and cash equivalents per statements of cash flow Financial assets and liabilities at fair value Mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Forward contracts/Swap contracts Financial liabilities held for trading: Derivative instruments not used for hedging Forward contracts/Swap contracts	March 31, 2021 December 31, 2020 $ 402 432 1,281,809 961,937 2,355,692 2,316,094 $ 3,637,903 3,278,463 through profit or loss March 31, 2021 December 31, 2020 $ 27,689 3,460 March 31, 2021 December 31, 2020 $ 932 32,628	March 31, 2020
		428 1,734,963 2,799,755
		4,535,146
		March 31, 2020
		7,404
		March 31, 2020
		2,476

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

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group uses derivative financial instruments to manage the exposures due to fluctuations of foreign exchange risk from its operating activities. The Group reported the following derivatives financial instruments as financial assets and liabilities at fair value through profit or loss without the application of hedge accounting:

Swap contracts Swap contracts Swap contracts Forward contracts Swap contracts Swap contracts Forward contracts Swap contracts Swap contracts Swap contracts	March 31, 2021	March 31, 2021
	Contract amount (thousand dollars) Currency Maturity dates EUR USD 27,850 / 33,668 EUR/USD 2021.4.1~2021.7.1 USD CNH 3,134 / 20,394 USD/CNH 2021.4.7~2021.4.26 JPY USD 10,000 / 92 JPY/USD 2021.4.12 December 31, 2020
	Contract amount (thousand dollars) Currency Maturity dates EUR USD 450 / 551 EUR/USD 2021.2.19~2021.2.26 TWD USD 238,846 / 8,500 TWD/USD 2021.1.15~2021.1.22 EUR USD 21,050 / 24,753 EUR/USD 2021.1.16~2021.2.3 March 31, 2020
	Contract amount (thousand dollars) EUR TWD 200 / 6,757 TWD USD 388,358 / 12,800 EUR USD 12,100 / 13,578 USD TWD 1,670 / 50,000	Currency Maturity dates EUR/TWD 2020.04.17 TWD/USD 2020.4.23~2020.5.26 EUR/USD 2020.5.6~2020.6.9 USD/TWD 2020.04.10

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Equity investments at fair value through other comprehensive income: Unlisted stocks (domestic and overseas)	March 31, 2021 $ 1,093,607	December 31, 2020 952,645	March 31, 2020
			916,887

(i) Equity investments at fair value through other comprehensive income

The Group held equity instrument investment for long-term strategic purposes, not held for trading purposes, which have been designated as measured at fair value through other comprehensive income.

Due to the financial asset activation, the Group sold the share of Taiwan High Speed Railway Co., Ltd. at the fair value for the three month ended March 31, 2020, the fair value at that time of disposal was $114,323 thousand and accumulated gain on disposal was $84,323 thousand, which has been transferred from other equity to retained earnings.

(ii) For market risk, please refer to note 6(x).
(iii) The aforementioned financial assets were not pledged as collateral.
(iv) The significant financial assets at fair value through other comprehensive income denominated in foreign currency were as follows:

March 31, 2021 THB December 31, 2020 THB March 31, 2020 THB Notes and accounts receivable Notes receivable Accounts receivable Less: allowance for impairment	Foreign currency amount (thousand dollars) $ 182,817 205,493 380,183 March 31, 2021 $ 893,746 3,652,992 5,466 $ 4,541,272	Exchange rate 0.9149 0.9556 0.9270 December 31, 2020 571,220 2,807,545 5,194 3,373,571	NTD 167,259 196,370 352,430 March 31, 2020 680,697 2,747,029 10,353 3,417,373 (Continued)

(d) Notes and accounts receivable

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected credit loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward-looking information. The loss allowance provision was determined as follows:

	March 31, 2021
Gross carrying amount Weighted- average expected credit loss rate $ 4,507,367 0.09%~0.17% 37,822 2.18%~4.58% 1,549 6.35%~6.59% $ 4,546,738 December 31, 2020		Loss allowance provision
		4,465 900 101
		5,466

	Weighted- average expected credit loss rate 0.09%~0.17% 2.78%~5.18% March 31, 2020	Loss allowance provision
		4,055 1,139
		5,194

	Weighted- average expected credit loss rate 0.01%~0.65% 0.33%~6.16% 9.17%~20.68% 100%	Loss allowance provision
		4,555 3,869 430 1,499
		10,353

The movement in the allowance for notes and accounts receivable was as follows:

Balance at beginning of period Impairment losses recognized Foreign exchange gain or loss Balance at end of period	For the three months ended March 31 2021 2020 $ 5,194 8,935 311 1,435 (39) (17) $ 5,466 10,353
	2021 $ 5,194 311 (39) $ 5,466

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The aforementioned financial assets were not pledged as collateral. For other credit risk information, please refers to note 6(x).

(e) Other receivables (including related parties)

Other receivables－related parties Other	March 31, 2021 $ 50,162 32,685 $ 82,847	December 31, 2020 39,572 106,599 146,171	March 31, 2020
			44,711 101,565
			146,276

The aformentioned financial assets were not past due and no provisions for doubtful debt. For other credit risk information, please refers to note 6(x)

(f) Inventories

The components of the Group's inventories were as follows:

Raw materials Supplies Work in progress Finished goods Merchandise Total	March 31, 2021 $ 1,501,349 11,245 296,813 2,717,484 475,816 $ 5,002,707	December 31, 2020 1,719,583 9,476 297,435 2,258,866 487,104 4,772,464	March 31, 2020
			1,551,872 104,116 296,172 3,405,305 550,655
			5,908,120

The aformentioned inventories were not pledged as collateral.

Except for operating costs arising from the ordinary sale of inventories, other gains and losses directly recorded under operating cost were as follows:

Loss on (reversal of) decline in market value of inventory Income from sale of scrap Loss or gain on physical count Unallocated production overhead Total	For the three months ended March 31 2021 2020 $ (28,755) 48,464 (7,271) (4,434) - 3,299 79,105 112,330 $ 43,079 159,659
	2021 $ (28,755) (7,271) - 79,105 $ 43,079

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Non-current assets held for sale

In order to activate its assets, the Group disposed its land and building located in Kaohsiung City, Renwu Dist. to a non-related party, with a book value of $201,665 thousand, recognized as noncurrent assets for sale, amount for selling to $1,220,000 thousands, based on the resolution approved during the board meeting held on March 11, 2021.

(h) Investments accounted for under equity method

The details of the investments accounted for under the equity method were as follows:

Associates Joint ventures	March 31, 2021 $ 769,659 757,982 $ 1,527,641	December 31, 2020 732,531 571,256 1,303,787	March 31, 2020
			624,053 408,646
			1,032,699

(i) Associates

For the three months ended March 31, 2021 and 2020, the Group recognized its share of gain (loss) from the associates of $34,874 thousand and $(11,100) thousand, respectively.

The details of the significant associates are as follows:

Name of associates	Existing relationship with the Group	The main operating place / register country	Proportion of equity and voting right	Proportion of equity and voting right
			March 31, 2021	December 31, 2020 March 31, 2020 % 50.00 % 50.00 % 37.78 % 37.78
ARLANXEO-TSRC (Nantong) Chemicals Industries Co., Ltd. Asia Pacific Energy Development Co., Ltd.	Strategic alliance of production and sales of NBR Strategic alliance of investment	China Cayman Isiands	% 50.00 % 37.78

Summaries of the financial information of the significant associate were as follows:

1) Summary of financial information of ARLANXEO-TSRC (Nantong) Chemicals Industries Co., Ltd.

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to the Group	March 31, 2021 $ 678,036 642,210 (600,814) (30,579) $ 688,853 $ 344,427	December 31, 2020 478,937 668,836 (471,579) (31,085) 645,109 332,554	March 31, 2020
			402,138 722,316 (676,477) (28,601)
			419,376
			209,688
			(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

				For the three months ended	For the three months ended
				March 31
				2021	2020
Revenue			$	453,476	291,797
Net income (loss) of continued operations			$	49,752	(28,349)
Other comprehensive income (loss)				-	-
Total comprehensive income (loss)			$	49,752	(28,349)
Total comprehensive income attributable to the
Group			$	24,876	(14,174)
				For the three months ended
				March 31
				2021	2020
Beginning balance of the equity of the		associate
attributable to the Group			$	323,287	231,111
Current total comprehensive income (loss) of the
associate attributable to the Group				24,876	(14,174)
Other				(1,490)	(4,487)
Ending balance of the equity of the associate
attributable to the Group			$	346,673	212,450
Summary of financial information of Asia			Pacific Energy Development		Co., Ltd.
				December 31,
	March 31, 2021			2020	March 31, 2020
Current assets	$		673,545	625,218	534,672
Non-current assets			992,826	1,011,338	1,082,978
Current liabilities		(523,137)		(529,361)	(502,731)
Non-current liabilities			(9,980)	(10,318)	(11,797)
Equity	$	1,133,254		1,096,877	1,103,122
Equity attributable to the
Group	$		428,143	414,400	416,760
				For the three months ended
				March 31
				2021	2020
Revenue			$	271,865	126,825
Net income of continued operations			$	26,463	8,137
Other comprehensive income (loss)				-	-
Total comprehensive income (loss)			$	26,463	8,137
Total comprehensive income attributable to the
Group			$	9,998	3,074

2) Summary of financial information of Asia Pacific Energy Development Co., Ltd.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Beginning balance of the equity of the associate attributable to the Group Current total comprehensive income of the associate attributable to the Group Other Ending balance of the equity of the associate attributable to the Group	For the three months ended March 31 2021 2020 $ 409,244 404,508 9,998 3,074 3,744 4,021 $ 422,986 411,603	For the three months ended March 31 2021 2020 $ 409,244 404,508 9,998 3,074 3,744 4,021 $ 422,986 411,603
	2021 $ 409,244 9,998 3,744 $ 422,986
		411,603

(ii) Joint ventures

The details of the significant joint ventures are as follows:

Name ofjoint ventures	Existing relationship with the Group	The main operating place / register country	Proportion of equity and voting right	Proportion of equity and voting right
			March 31, 2021	December 31, 2020 March 31, 2020 % 50.00 % 50.00
Indian Synthetic Rubber Private Limited	Strategic alliance of production and sales of synthetic rubber products	India	% 50.00

Summaries of the financial information of the significant joint ventures were as follows:

1) Summary of financial information of Indian Synthetic Rubber Private Limited

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to the Group	March 31, 2021		December 31, 2020 1,119,957 3,089,725 (1,252,076) (1,869,712) 1,087,894 543,947	March 31, 2020 1,609,665 3,098,830 (2,613,643) (1,297,047)
				797,805
				398,902

Equity attributable to the Group $ 734,874	543,947 398,902	543,947 398,902
Revenue Net income of continued operations Other comprehensive income (loss) Total comprehensive income (loss) Total comprehensive income attributable to the Group	For the three months ended March 31 2021 2020 $ 1,701,019 1,125,667 $ 367,067 (3,544) 6,246 (50,011) $ 373,313 (53,555) $ 186,657 (26,778)
	2021 $ 1,701,019 $ 367,067 6,246 $ 373,313 $ 186,657
		(3,544) (50,011)
		(53,555)
		(26,778)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Beginning balance of the equity of the joint venture attributable to the Group Current total comprehensive income (loss) of the joint venture attributable to the Group Other Ending balance of the equity of the joint venture attributable to the Group	For the three months ended March 31 2021 2020 $ 512,624 396,539 186,657 (26,778) 3,350 (23,638) $ 702,631 346,123
	2021 $ 512,624 186,657 3,350 $ 702,631

Summary of respectively not significant joint ventures recognized under the equity method was as follows:

March 31, 2021 Balance of not significant joint venture's equity $ 55,351 Attributable to the Group: Income (loss) from continued operations Other comprehensive income (loss) Total comprehensive income (loss)	March 31, 2021

(iii) The unreviewed financial statements of investments accounted for using equity method

Aforementioned other equity accounted investments of the Group in its investee companies, and its equity in net earnings (loss) on these investee companies were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group were as follows:

Cost: Balance at January 1, 2021 Additions Reclassification to assets held for sale Disposals Reclassification Effect on changes in exchange rates Balance at March 31, 2021 Balance at January 1, 2020 Additions Disposals Reclassification Effect on changes in exchange rates Balance at March 31, 2020 Depreciation and impairment loss: Balance at January 1, 2021 Depreciation Disposal Effect on changes in exchange rates Balance at March 31, 2021 Balance at January 1, 2020 Depreciation Disposal Effect on changes in exchange rates Balance at March 31, 2020 Carrying value: January 1, 2021 March 31, 2021 January 1, 2020 March 31, 2020	Land $ 841,829 - (201,665) - - 17 $ 640,181 $ 614,101 - - - - $ 614,101 $ - - - - $ - $ - - - - $ - $ 841,829 $ 640,181 $ 614,101 $ 614,101	Land improvements 142,168 - - - - 46 142,214 143,699 - - - 289 143,988 94,229 1,361 - 23 95,613 90,293 1,275 - 113 91,681 47,939 46,601 53,406 52,307	Buildings 4,672,369 - - - 115,431 (27,172) 4,760,628 4,051,022 - (62) 15,805 (37,893) 4,028,872 2,464,473 39,632 - (12,869) 2,491,236 2,314,620 33,658 (48) (19,942) 2,328,288 2,207,896 2,269,392 1,736,402 1,700,584	Machinery 21,983,009 624 - (37,086) 139,352 (72,642) 22,013,257 20,332,811 93 (83,066) 151,248 (88,523) 20,312,563 15,857,095 210,500 (35,931) (38,701) 15,992,963 15,614,341 182,440 (74,730) (51,083) 15,670,968 6,125,914 6,020,294 4,718,470 4,641,595	Furniture and fixtures and other equipment 247,058 - - (634) - (679) 245,745 244,989 - (1,188) 9,593 (903) 252,491 182,165 4,211 (570) (477) 185,329 174,944 4,453 (1,069) (580) 177,748 64,893 60,416 70,045 74,743	Construction in progress 1,228,046 188,689 - - (248,905) (3,817) 1,164,013 2,844,971 361,981 - (188,603) (32,307) 2,986,042 - - - - - - - - - - 1,228,046 1,164,013 2,844,971 2,986,042	Total 29,114,479 189,313 (201,665) (37,720) 5,878 (104,247) 28,966,038 28,231,593 362,074 (84,316) (11,957) (159,337) 28,338,057 18,597,962 255,704 (36,501) (52,024) 18,765,141 18,194,198 221,826 (75,847) (71,492) 18,268,685 10,516,517 10,200,897 10,037,395 10,069,372

Please refer to note 8 for the pledged and collateral information of the property, plant and equipment.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Right-of-use assets

The Group leases its assets, including land, buildings, machinery and transportation equipment. Information about leases is presented below:

Cost: Balance at January 1, 2021 Additions Lease modification Amortization to operating costs and inventories Effect on changes in foreign exchange rates Balance at March 31, 2021 Balance at January 1, 2020 Additions Lease modification Amortization to operating costs and inventories Reclassification to construction in progress Balance at March 31, 2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation Lease modification Effect on changes in exchange rates Balance at March 31, 2021 Balance at January 1, 2020 Depreciation Lease modification Effect on changes in exchange rates Balance at March 31, 2020 Carrying value: January 1, 2021 March 31, 2021 January 1, 2020 March 31, 2020	Land $ 569,782 - - - (3,974) $ 565,808 $ 663,708 - - - (94,596) (6,324) $ 562,788 $ 145,489 3,456 - (1,189) $ 147,756 $ 130,190 3,486 - (1,859) $ 131,817 $ 424,293 $ 418,052 $ 533,518 $ 430,971	Building 255,467 - (865) (1,603) (1,352) 251,647 383,925 23,726 (4,668) (2,113) - (169) 400,701 111,766 15,747 321 (621) 127,213 68,316 19,303 (3,124) (271) 84,224 143,701 124,434 315,609 316,477	Machinery 457,714 - - (19,354) (3,584) 434,776 471,843 56,809 - (21,811) - (6,043) 500,798 17,224 - - 14 17,238 14,551 3,643 - 84 18,278 440,490 417,538 457,292 482,520	Transportation equipment 32,827 3,749 - - (4) 36,572 34,216 - (2,545) - - 16 31,687 18,339 2,773 - 5 21,117 9,064 2,433 (516) 23 11,004 14,488 15,455 25,152 20,683	Total 1,315,790 3,749 (865) (20,957) (8,914) 1,288,803 1,553,692 80,535 (7,213) (23,924) (94,596) (12,520) 1,495,974 292,818 21,976 321 (1,791) 313,324 222,121 28,865 (3,640) (2,023) 245,323 1,022,972 975,479 1,331,571 1,250,651

The Group did not pledge any collateral on right-of-use assets.

(k) Investment property

Carrying value: January 1, 2021 March 31, 2021 January 1, 2020 March 31, 2020	Owned property
	Buildings
	$ 1,566,873 $ 1,563,192 $ 1,581,599 $ 1,577,917

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

There were no significant additions to, disposals of, or provision (reversal) of impairment of, the Group's investment properties for the three months ended March 31, 2021 and 2020. The amortization of investment properties of the Group is provided in note 12(a), and the related information is provided in note 6(j) to the consolidated financial statements for the year ended December 31, 2020.

The fair value of the Group's investment properties does not significantly differ from the information disclosed in note 6(j) to the consolidated financial statements for the year ended December 31, 2020.

(l) Intangible assets

Intangible assets
Carrying value: January 1, 2021 March 31, 2021 January 1, 2020 March 31, 2020	Industrial technology and know- how $ 392,856 $ 382,312 $ 503,264 $ 517,944	Computer software 14,913 18,252 12,087 13,903	Goodwill - - 206,793 207,810	Patent and trademark 212,729 207,400 392,308 388,299	Customer relationship 391,907 380,338 555,433 543,078	Total 1,012,405
						988,302
						1,669,885
						1,671,034

There were no significant additions to, disposals of, or provision (reversal) of impairment of, the Group's intangible assets for the three months ended March 31, 2021 and 2020. The amortization of intangible assets of the Group is provided in note 12(a), and the related information is provided in note 6(k) to the consolidated financial statements for the year ended December 31, 2020.

(m) Short-term and long-term borrowings

The details of the Group's short-term and long-term borrowings were as follows:

(i) Short-term bank borrowings

	March 31, 2021	March 31, 2021
Range of interest rates (%)	Year of maturity		The unused credit facilities
0.38~3.70			14,945,395

Range of interest rates (%)	Year of maturity		The unused credit facilities
0.40~4.35			17,605,576

Range of interest rates (%)	Year of maturity	Amount $ 5,833,899	The unused credit facilities
0.21~4.57	2020		16,867,039

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term borrowings

1) Long-term bank borrowings

March 31, 2021	March 31, 2021	March 31, 2021
Range of interest rates (%)

Range of interest rates (%)	Year of maturity Amount 2021~2023 $ 626,285 2020~2023 4,095,156 $ 4,721,441 $ 836,375 3,885,066 $ 4,721,441	Amount
2.94~4.38 1.03~5.08

For the three months ended March 31, 2021 and 2020, the Group repaid the amounts of $513,938 thousand and $368,419 thousand, respectively, for its long-term borrowings, wherein the proceeds amounting to $510,040 thousand and $134,257 thousand bore the interest rates of 1.04%~1.20% and 2.43%, as well as maturities ranging from March 2024 to November 2025 and September 2022, respectively, and the related information is provided in note 6(l) to the consolidated financial statements for the year ended December 31, 2020.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Long-term commercial paper payable (recorded as other long-term borrowings)

Long-term commercial paper payable Less: discount on long-term commercial paper payable Total Interest rate	March 31, 2021 $ 350,000 256 $ 349,744 1.1600%	December 31, 2020 350,000 659 349,341 1.2060%	March 31, 2020
			350,000 279
			349,721
			1.2113%

(n) Current provisions (recorded as other payables)

Balance at January 1, 2021 Reversal of unused provisions Effect on changes in exchange rates Balance at March 31, 2021 Balance at January 1, 2020 Increase in provisions Reversal of unused provisions Effect on changes in exchange rates Balance at March 31, 2020	Provision for defective products $ 12,731 (4,072) (50) $ 8,609 $ 18,017 4,694 (7,939) (124) $ 14,648

(o) Lease liabilities

The Group's lease liabilities were as follow:

Current Non-current	March 31, 2021 $ 123,892 $ 461,246	December 31, 2020 139,263 492,827	March 31, 2020
			167,608
			693,456

For the maturity analysis, please refer to note 6(x).

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	For the three months ended March 31	For the three months ended March 31
	2021 $ 798 $ 4,031 $ 3,743	2020
		2,157
		582
		4,296

The amounts recognized in the statement of cash flows for the Group were as follows:

The amounts recognized in the statement of cash flows for the	Group were as follows:	Group were as follows:
Total cash outflow for leases	For the three months ended March 31
	2021 $ 48,873	2020
		51,572

(p) Employee benefits

(i) Defined benefit plans

The Group allocated the pension fund in accordance with the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund", and contributed $17,323 thousand and $57,226 thousand to the Bank of Taiwan labor pension reserve account in March 2021 and March 2020, respectively. Since there were no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2020 and 2019.

The Group recognized pension costs of the defined benefit plans in profit or loss as follows:

Operating costs Operating expenses	For the three months ended March 31	For the three months ended March 31
	2021 $ 846 567 $ 1,413	2020
		1,009 673
		1,682

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

According to the defined contribution plans, the Group made contributions to the Bureau of Labor Insurance and the local authorities of the consolidated overseas subsidiaries. The Group recognized pension costs of the defined contribution plans in profit or loss as follows:

Operating costs Operating expenses	For the three months ended March 31	For the three months ended March 31
	2021 $ 15,161 6,762 $ 21,923	2020
		9,405 7,380
		16,785

(q) Income tax

The components of income tax expense were as follows:

Current income tax expense Current period Adjustment for prior periods Deferred tax expense (benefit) Origination and reversal of temporary differences Income tax expenses of continued operations	For the three months ended March 31 2021 2020 $ 261,971 78,673 - 1,529 261,971 80,202 137,302 (6,428) $ 399,273 73,774
	2021 $ 261,971 - 261,971 137,302 $ 399,273

The tax returns of the Company have been assessed by the tax authorities for all years through 2019.

(r) Capital and other equity

Except as explained in the following paragraphs, there were no significant changes in the capital and other equity during the three months ended March 31, 2021 and 2020. Please refer to note 6(r) to the consolidated financial statements for the year ended December 31, 2020 for the related information.

－ (i) Retained earnings earnings distribution

In accordance with the Company's articles of incorporation amended on June 19, 2020, when allocating the earnings for each fiscal year, the Company may, after offsetting losses from previous years, and paying taxes, and setting aside any statutory and appropriated retained earnings of 10% by ordinary resolution, may draw up the allocation of the balance remaining as bonuses, dividends, retained earnings or otherwise. The allocation shall be proposed by the Board of Directors and shall be resolved at the shareholders' general meeting. However, dividends issued in cash may be passed by the Board of Directors with more than two-thirds of the directors’ attendance, and be resolved by more than half of the directors, then be reported to the shareholders' general meeting.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In accordance with the original Company's articles of incorporation, when allocating the earnings for each fiscal year, the Company may, after offsetting losses from previous years, after paying taxes as per the law, and after 10% of the statutory surplus reserve is raised before the special surplus reserve is set up or turned over under the Securities and Exchange Act, the balances, when added to the unallocated surplus in the preceding period, are thereafter available for distribution and a surplus allocation proposal is submitted.

For the distribution based on the above of paragraph, the cash dividend shall not be less than 20% of the total distribution.

The above-mentioned distribution of surplus shall be drawn up by the Board of Directors and shall be submitted to the shareholders' meeting for resolution.

On March 11, 2021, the Company's Board of Directors resolved to appropriate the 2020 earnings. On Jane 19, 2020, the shareholders' meeting resolved to distribute the 2019 earnings. These earnings were appropriated as follows:

Dividends distributed to common shareholders: Cash Other equities (net for tax) Foreign exchange differences arising from foreign operations Balance as of January 1, 2021 $ (198,125) Foreign exchange differences arising from foreign operations (70,793) Exchange differences on translation financial statements from investments accounted for using equity method (4,597) Unrealized gains or losses from financial assets measured at fair value through other comprehensive income - Share of cash flow hedges of associates and joint ventures accounted for under equity method - Balance as of March 31, 2021 $ (273,515) Balance as of January 1, 2020 $ 23,383 Foreign exchange differences arising from foreign operations (75,484) Exchange differences on translation financial statements from investments accounted for using equity method (32,446) Unrealized gains or losses from financial assets measured at fair value through other comprehensive income - Disposal of investments in equity instruments designated at fair value through other comprehensive income - Share of cash flow hedges of associates and joint ventures accounted for under equity method - Balance as of March 31, 2020 $ (84,547)	2020 $ 297,256 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Gains (losses) on hedging instruments 558,902 (81,119) - - - - 140,917 - - 9,954 699,819 (71,165) 711,094 (80,526) - - - - (106,961) - (84,323) - - (21,356) 519,810 (101,882)		2019 412,855 Total 279,658 (70,793) (4,597) 140,917 9,954 355,139 653,951 (75,484) (32,446) (106,961) (84,323) (21,356) 333,381

(ii) Other equities (net for tax)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Earnings per share

The calculation of the Company's basic earnings per share and diluted earnings per share for the three months ended March 31, 2021 and 2020 was as follows:

(i) Basic earnings per share

Net income attributable to common shareholders of the Company Weighted-average number of common shares (in thousands) Basic earnings per share (NTD)	For the three months ended March 31	For the three months ended March 31
	2021 $ 896,970 825,710 $ 1.09	2020
		59,340
		825,710
		0.07

(ii) Diluted earnings per share

Net income attributable to common shareholders of the Company (diluted) Weighted-average number of common shares (basic) (in thousands) Impact on potential common shares Effect of employees' compensation (in thousands) Weighted-average number of shares outstanding (diluted) (in thousands) Diluted earnings per share (NTD)	For the three months ended March 31	For the three months ended March 31
	2021 $ 896,970 825,710 1,876 827,586 $ 1.08	2020
		59,340
		825,710 3,481
		829,191
		0.07

(t) Remuneration to employees and directors

In accordance with the Company's articles of incorporation, if there is profit for the year, the Company should contribute more than 1% of its profit as employee remuneration, and less than 1% as directors' remuneration. The related regulations on the distribution of remunerations to employees and directors will have to be approved by the Board of Directors.

For the three months ended March 31, 2021 and 2020, the Company recognized the employees' compensation of $22,378 thousand and $9,000 thousand, respectively, and the directors' remuneration of $4,716 thousand and $304 thousand, respectively. The amounts were estimated based on the profit-sharing percentages set by the Articles of Incorporation and were recorded as operating cost or operating expenses in the respective periods. If the distribution in the following year is different from the estimate, the difference is treated as a change in accounting estimate and will be recognized as profit or loss for the following year.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the years ended December 31, 2020 and 2019, the Company recognized its employees' compensation of $40,750 thousand and $53,614 thousand, respectively, and its directors' remuneration of $616 thousand and $9,813 thousand, respectively. There was no difference between the distribution and the recognized amounts except that the Board of Directors resolved the remuneration to directors of 2019 to be $4,907 thousand, considering the Company's operating performance and regional market levels. The difference was recognized in profit and loss of 2020. For relevant information, please refer to Market Observation Post System.

(u) Revenue from contracts with customers

For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021
Synthetic rubber Non-synthetic rubber Total $ 5,874,866 287,990 6,162,856 1,002,892 4,535 1,007,427 828,487 - 828,487 218,041 - 218,041 $ 7,924,286 292,525 8,216,811 7,866,141 - 7,866,141 - 292,320 292,320 58,145 205 58,350 $ 7,924,286 292,525 8,216,811 For the three months ended March 31, 2020		Total
		6,162,856 1,007,427 828,487 218,041
		8,216,811
		7,866,141 292,320 58,350
		8,216,811
Synthetic rubber $ 4,330,325 1,007,053 744,985 198,713 $ 6,281,076 6,108,194 - 172,882 $ 6,281,076	Non-synthetic rubber 210,990 1,780 - - 212,770 - 207,746 5,024 212,770	Total
		4,541,315 1,008,833 744,985 198,713
		6,493,846
		6,108,194 207,746 177,906
		6,493,846

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Other income and expenses

Rental income Royalty income Net service income Depreciation of investment properties Net other income Other income and expenses	For the three months ended March 31 2021 2020 $ 19,107 15,885 27,305 23,770 3,651 2,142 (3,681) (3,682) 8,964 4,123 $ 55,346 42,238
	2021 $ 19,107 27,305 3,651 (3,681) 8,964 $ 55,346

(w) Non-operating income and expenses

(i) Interest income

Interest income from bank deposits (ii) Other gains and losses	For the three months ended March 31	For the three months ended March 31
	2021 $ 6,118	2020
		16,154

Loss on disposal of property, plant and equipment Foreign exchange gain or loss, net Gains or losses on financial assets (liabilities) at fair value through profit or loss Other gains and losses Other gains and losses, net Finance costs Interest expense	For the three months ended March 31 2021 2020 $ (1,189) (8,414) (42,999) 6,857 34,035 7,557 6,301 649 $ (3,852) 6,649 For the three months ended March 31 2021 2020 $ 29,372 40,301

(iii) Finance costs

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(x) Financial instruments

Except as noted below, there were no significant changes in the Group's exposure to credit risk, liquidity risk, and market risk due to financial instruments. Please refer to note 6(y) to the consolidated financial statements for the year ended December 31, 2020.

(i) Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments but excluding the impact of netting agreements.

Contractual cash flows March 31, 2021 Non-derivative financial liabilities Short-term borrowings $ 4,232,042 Accounts payable (including related parties) 1,648,501 Other payables 1,175,449 Long-term borrowings (including other long- term borrowings and current portion) 4,903,695 Lease liabilities 621,345 Deposits received 57,028 Derivative financial liabilities Other swap contracts: Outflow 932 $ 12,638,992 December 31, 2020 Non-derivative financial liabilities Short-term borrowings $ 3,795,442 Accounts payable 1,643,264 Other payables 1,204,135 Long-term borrowings (including other long- term borrowings and current portion) 4,910,796 Lease liabilities 653,406 Deposits received 62,118 Derivative financial liabilities Other swap contracts: Outflow 32,628 $ 12,301,789 March 31, 2020 Non-derivative financial liabilities Short-term borrowings $ 5,851,188 Accounts payable (including related parties) 1,068,778 Other payables 943,705 Long-term borrowings (including other long- term borrowings and current portion) 5,240,449 Lease liabilities 895,429 Deposits received 56,540 Derivative financial liabilities Other swap contracts/other forward contracts: Outflow 2,476 $ 14,058,565	Within 6 months 4,218,445 1,648,501 1,175,449 1,040,114 69,452 - 932 8,152,893 3,675,788 1,643,264 1,204,135 1,239,315 71,505 - 32,628 7,866,635 5,548,256 1,068,778 943,705 434,485 85,101 - 2,476 8,082,801	6-12 months 13,597 - - 1,386,885 69,452 - - 1,469,934 119,654 - - 1,593,226 71,505 - - 1,784,385 302,932 - - 480,849 85,101 - - 868,882	1-2 years - - - 1,637,614 111,781 41,371 - 1,790,766 - - - 1,084,767 120,293 46,461 - 1,251,521 - - - 2,519,108 143,839 56,540 - 2,719,487	2-5 years - - - 839,082 185,445 12,536 - 1,037,063 - - - 993,488 191,367 12,536 - 1,197,391 - - - 1,806,007 267,564 - - 2,073,571	Over 5 years
					- - - - 185,215 3,121 -
					188,336
					- - - - 198,736 3,121 -
					201,857
					- - - - 313,824 - -
					313,824

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Currency risk

1) Risk exposure

The Group's financial assets and financial liabilities exposed to significant currency risk were as follows:

March 31, 2021 Financial assets: Monetary assets: USD EUR JPY CNY Financial liabilities: Monetary liabilities: USD EUR JPY December 31, 2020 Financial assets: Monetary assets: USD EUR JPY CNY Financial liabilities: Monetary liabilities: USD EUR JPY	Foreign currency (thousand dollars) $ 106,684 $ 10,575 $ 138,883 $ 26,612 $ 104,993 $ 7,246 $ 115,151 $ 76,191 $ 8,197 $ 36,134 $ 22,490 $ 84,000 $ 6,212 $ 27,409	Exchange rate NTD 28.5310 3,043,801 33.4726 353,973 0.2576 35,776 4.3435 115,589 28.5310 2,995,555 33.4726 242,542 0.2576 29,663 28.5080 2,172,053 35.0563 287,356 0.2765 9,991 4.3813 98,535 28.5080 2,394,672 35.0563 217,770 0.2765 7,579

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

March 31, 2020 Financial assets: Monetary assets: USD EUR JPY CNY Financial liabilities: Monetary liabilities: USD EUR JPY	Foreign currency (thousand dollars) $ 69,563 $ 12,464 $ 226,999 $ 11,871 $ 68,618 $ 10,169 $ 167,610	Exchange rate NTD 30.2540 2,104,559 33.2703 414,681 0.2790 63,333 4.2592 50,561 30.2540 2,075,969 33.2703 338,326 0.2790 46,763

The Group's exposure to foreign currency risk arose from cash and cash equivalents, accounts and other receivables, borrowings, and accounts and other payables that were denominated in foreign currencies. If the NTD against the forgin currencies had depreciated / appreciated by 1%, the Group's net income before tax would have increased / decreased by $2,814 thousand and $1,721 thousand for the three months ended March 31, 2021 and 2020, respectively, with all other variable factors remaining constant. The analysis was performed on the same basis for both periods.

Since the Group has many kinds of functional currencies, the information on foreign exchange gain (loss) on monetary items is disclosed by gross amount. For the three months ended March 31, 2021 and 2020, foreign exchange gain (loss) (including Derivative financial instruments for non-hedging profit and loss) amounting to $(8,964) thousand and $14,414 thousand, respectively.

2) Interest rate risk analysis

Please refer to the note on liquidity risk management for the interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to interest rates of the non-derivative financial instruments at the reporting date. For floating-rate instruments, the sensitivity analysis assumes the floating-rate liabilities as of the reporting date are outstanding for the whole year.

If the interest rate had increased / decreased by 1%, the Group's net income before tax would have decreased / increased by $22,549 thousand and $27,263 thousand for the three months ended March 31, 2021 and 2020, respectively, with all other variable factors remaining constant. This is mainly due to the Group's borrowing at floating rates.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Fair value
1) Hierarchy and fair value of financial instruments

Except for the followings, carrying amounts of the Group's financial assets and liabilities are valuated approximately to their fair values. No additional fair value disclosure is required in accordance to the regulations.

	March 31, 2021	March 31, 2021	March 31, 2021
Carrying amount $ 27,689 1,093,607 $ 1,121,296 $ 932		Fair value
	Level 1 Level 2 Level 3 - 27,689 - - - 1,093,607 - 27,689 1,093,607 - 932 - December 31, 2020			Total
				27,689
				1,093,607
				1,121,296
				932

		Fair value
	Level 1 - - - -	Level 2 3,460 - 3,460 32,628	Level 3 - 952,645 952,645 -	Total
				3,460
				952,645
				956,105
				32,628

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	March 31, 2020	March 31, 2020	March 31, 2020
Carrying amount $ 7,404 916,887 $ 924,291 $ 2,476		Fair value
	Level 1 - - - -	Level 2 7,404 - 7,404 2,476	Level 3 - 916,887 916,887 -	Total
				7,404
				916,887
				924,291
				2,476

2) Valuation techniques and assumptions used in fair value determination

If the financial instruments held by the Group have the quoted market price in active market, the fair value of the assets is based on the quoted market price. However, if the instruments have no quoted market price in active market, the Group uses market comparison approach to evaluate the fair value. The main assumption is based on the investee’s earnings after tax and the listed (over the counter) company’s earnings used in computing the market price. The estimated price has been discounted due to the price of the securities lacks the liquidity. The liquidity discount is a significant unobservable input in valuing equity investment. Forward exchange contracts are normally priced based on the exchange rates provided by the world agencies.

3) Reconciliation of Level 3 fair values

Balance at January 1, 2021 Total gains: Recognized in other comprehensive income Balance at March 31, 2021 Balance at January 1, 2020 Total gains: Recognized in other comprehensive income Balance at March 31, 2020	Unquoted equity instruments $ 952,645 140,962 $ 1,093,607 $ 1,022,688 (105,801) $ 916,887

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income-equity investments without an active market	Valuation technique Comparative listed company	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧ Multipliers of price- to-earnings ratios as of March 31, 2021, December 31, 2020 and March 31, 2020 was all 13.87~17.80, 15.62~17.80 and 15.78~16.00, respectively ‧ Multipliers of price- book ratios as of March 31, 2021, December 31, 2020 and March 31, 2020 were 1.69, 1.38 and 0.89, respectively ‧ Market liquidity discount rate as of March 31, 2021, December 31, 2020 and March 31, 2020 was all 20% ‧ the estimated fair value would have been higher if the price-to-earnings and price-book ratios would be higher. ‧ the estimated fair value would have been higher if the market liquidity discount would be lower.

－
5) Fair value measurements in Level 3 sensitivity analysis of reasonably possible alternative assumptions

For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

March 31, 2021 Financial assets fair value through other comprehensive income Equity investments without an active market	Input Liquidity discount at 20%	Move up or Other comprehensive income down Favorable Unfavorable 1% $ 13,676 (13,676)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2020 Financial assets fair value through other comprehensive income Equity investments without an active market March 31, 2020 Financial assets fair value through other comprehensive income Equity investments without an active market	Input Liquidity discount at 20% Liquidity discount at 20%	Move up or Other comprehensive income down Favorable Unfavorable 1% $ 11,912 (11,912) 1% $ 11,459 (11,459)	Other comprehensive income

The favorable and unfavorable effects represent the changes in fair value, and the fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(y) Financial risk management

The objectives and policies of the Group's financial risk management are the same as those in note 6(z) to the consolidated financial statements for the year ended December 31, 2020.

(z) Capital management

The objectives, policies, and procedures of the Group's capital management are the same as those in the consolidated financial statements for the year ended December 31, 2020. There were no significant changes in the Group's quantitative information from that disclosed in the consolidated financial statements for the year ended December 31, 2020. For further information, please refer to note 6(aa) to the consolidated financial statements for the year ended December 31, 2020.

(aa) Investing and financing activities not affecting current cash flow

The Group did not have non-cash flow transactions on investing and financing activities for the three months ended March 31, 2021 and 2020.

(ab) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities arising from financing activities for the three months ended March 31, 2021 and 2020 was as follows:

Long-term borrowings (including current portion) Other long-term borrowings Short-term borrowings Lease liabilities Total liabilities from financing activities	January 1, 2021 $ 4,463,864 349,341 3,789,276 632,090 $ 9,234,571	Cash flows (3,898) - 516,372 (40,301) 472,173	N Foreign exchange movement (2,986) - (92,964) (10,011) (105,961)	on-cash changes	Others - - - 2,562 2,562	March 31, 2021 4,456,980 349,744 4,212,684 585,138
				Amortization of commercial paper discount - 403 - 798 1,201
						9,604,546

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Long-term borrowings (including current portion) Other long-term borrowings Short-term borrowings Lease liabilities Total liabilities from financing activities	January 1, 2020 $ 4,959,940 349,287 4,729,148 861,631 $ 10,900,006	Cash flows (234,162) - 1,115,608 (44,537) 836,909	N Foreign exchange movement (4,337) - (10,857) (6,074) (21,268)	on-cash changes	Others - - - 47,887 47,887	March 31, 2020 4,721,441 349,721 5,833,899 861,064
				Amortization of commercial paper discount - 434 - 2,157 2,591
						11,766,125

(7) Related-party transactions

(a) Names and relationship with related parties

In this consolidated financial report, the related parties having transactions with the Group are listed as below:

Name of related party Relationship with the Group Indian Synthetic Rubber Private Limited The Group recognized joint venture under equity method ARLANXEO-TSRC (Nantong) Chemical The Group recognized associates under equity Industries Co., Ltd. method Asia Pacific Energy Development Co., Ltd. 〃 Nantong Qix Storage Co., Ltd. The Group recognized joint venture under equity method Marubeni Corporation Corporate director of one consolidated entity UBE Industrial Ltd. 〃 Metropolis Property Management Other related parties of the Group Corporation Continental Engineering Corporation 〃 WFV Corporation 〃 UBE (Shanghai) Ltd. Subsidiary of corporate director of one consolidated entity

(b) Significant transactions with related parties
(i) Operating revenue

The amounts of significant sales by the Group to related parties were as follows:

Associates	For the three months ended March 31	For the three months ended March 31
	2021 $ -	2020
		5,769

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The sales price with related parties is not significantly different from normal transactions, and the payment terms were about one month.

(ii) Purchases

The amounts of purchase transactions with related parties were as follows:

Other related parties	For the three months ended March 31	For the three months ended March 31
	2021 $ 42,585	2020
		64,778

There were no significant differences between the pricing of purchase transactions with related parties and that with other suppliers. The payment terms ranged from one to two months, which were similar to other suppliers.

(iii) Service income and expenses

The Group provided and received warehouse, management, technologies and IT services to associates, joint ventures, and other related parties. The amounts recognized as revenue, other income and expenses were as follows:

Associates ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited Others Other related parties Others	For the three months ended March 31 2021 2020 $ 36,849 28,849 17,591 11,852 982 700 (3,869) (3,835) $ 51,553 37,566
	2021 $ 36,849 17,591 982 (3,869) $ 51,553

－ (iv) Lease Rent income

Other related parties	For the three months ended March 31	For the three months ended March 31
	2021 $ 1,119	2020
		1,121

The amount of rent is based on neighboring rent, and the rental is collected monthly from other related parties.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Receivables from related parties

The details of the Group's receivables from related parties were as follows:

Account Other receivables Other receivables	Type of related parties Associates ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited Others	March 31, 2021 $ 26,820 22,829 513 $ 50,162	December 31, 2020 March 31, 2020 22,154 25,308 17,183 18,945 235 458 39,572 44,711

(vi) Payables to related parties

The details of the Group's payables to related parties were as follows:

Account Accounts payable Other payables	Type of related parties Other related parties Other related parties	March 31, 2021 $ 46,758 1,188 $ 47,946	December 31, 2020 - 1,226 1,226	March 31, 2020
				30,900 843
				31,743

(vii) Guarantees

The credit limits of the guarantees the Group provided on the bank loans of related parties were as follows:

Associates ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited	March 31, 2021 $ 765,887 950,082 $ 1,715,969	December 31, 2020 1,577,416 949,316 2,526,732	March 31, 2020
			756,615 1,438,578
			2,195,193

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Accordingly, the amounts of the Group recognized provision liabilities and investments accounted for under the equity method were as follows:

Associates ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited	March 31, 2021 $ 2,247 30,032 $ 32,279	December 31, 2020 733 31,086 31,819	March 31, 2020
			2,762 13,459
			16,221

(c) Key management personnel transactions

The compensation of the key management personnel comprised the following:

Short-term employee benefits Post-employment benefits	For the three months ended March 31	For the three months ended March 31
	2021 $ 29,630 341 $ 29,971	2020
		29,395 308
		29,703

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets Restricted savings deposits (recorded as other non-current assets) Machinery etc. (recorded as property, plant and equipment)	Object Bank guarantee for electricity usage Guarantee for long- term borrowings	March 31, 2021 $ 1,175 260,485 $ 261,660	December 31, 2020 1,173 269,284 270,457	March 31, 2020
				1,240 316,867
				318,107

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(9) Commitments and contingencies

(a) The unused letters of credit outstanding

The Group's unused letters of credit outstanding	March 31, 2021 $ 1,247,663	December 31, 2020 1,284,162	March 31, 2020 733,208

(b) Total amounts and the cumulative payments of group’ s signed construction and design contracts with several vendors as follows:

Total amounts of construction in progress contracts Cumulative payments	March 31, 2021 $ 478,004 $ 283,298	December 31, 2020 2,851,593 2,342,971	March 31, 2020 2,234,030 1,803,007

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events: None.

(12) Other

(a) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

By function By nature	Three months ended March 31, 2021	Three months ended March 31, 2021	Three months ended March 31, 2021	Three months ended March 31, 2020	Three months ended March 31, 2020	Three months ended March 31, 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits
Salary	247,143	183,449	430,592	218,659	164,986	383,645
Labor and health insurance	23,702	15,354	39,056	20,997	15,533	36,530
Pension	16,007	7,329	23,336	10,414	8,053	18,467
Others (note 1)	46,623	25,999	72,622	39,228	17,731	56,959
Depreciation (note 2)	231,150	46,530	277,680	202,463	48,228	250,691
Amortization	1,415	28,986	30,401	1,621	37,007	38,628

Note 1: Other personnel expenses included meals, employee welfare, training expenses and employees' bonus.

Note 2: Depreciation expenses for investment property recognized under other income and expenses amounting to $3,681 thousand and $3,682 thousand for the three months ended March 31, 2021 and 2020 were excluded.

(b) Seasonality or cyclicality of interim operations

The Group's operations were not affected by seasonality or cyclicality factors.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures

(a) Information on significant transactions:

The following is the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Group for the three months ended March 31, 2021:

(i) Loans to other parties:

Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:	Loans to other parties:
													Unit: thousand NTD
No.	Name of lender	Name of borrower	Financial statement account	Related party	Highest balance of financing to other parties during the year	Ending balance	Amount actually drawn	Range of interest rates	Purposes of fund financing for the borrowers	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Financing limit for each borrowing company (Note 1)	Maximum financing limit for the lender (Note 2)
													Item	Value
1	TSRC (Shanghai) Industries Ltd.	TSRC (Nantong) Industries Ltd.	Loan	Yes	231,631	230,206	86,870	3.698%	2	-	Operating capital	-		-	295,155	590,310
2	Polybus Corporation Pte Ltd	TSRC	Account receivable- related parties	Yes	684,744	684,744	-	-	2	-	Operating capital	-		-	4,150,935	8,301,870
3	TSRC (Hong Kong) Limited	TSRC	Account receivable- related parties	Yes	171,186	171,186	-	-	2	-	Operating capital	-		-	1,750,533	3,501,066
4	TSRC Specialty Materials LLC	TSRC (USA) Investment Corporation	Account receivable- related parties	Yes	427,965	427,965	-	-	2	-	Operating capital	-		-	1,096,729	2,193,457

Note 1: The loan limit extended per party should not be over 10% of total equity. However, if the counterparty is a subsidiary 100% owned, directly or indirectly by TSRC, the loan limit extended per party should not be over 50% of the total equity of the most recent financial statements audited or reviewed by a CPA.

Note 2: The maximum loan extended to all parties should not be over 40% of total equity. However, if the counterparty is a subsidiary 100.00% owned, directly or indirectly by TSRC, the total loan limit should not be over 100% of total equity of the most recent financial statements audited or reviewed by a CPA .

Note 3:. The fund of loan and the loan to the other party are 100.00% owned by TSRC.

Note 4: Credit period: The financing period should not be over one year.

Note 5: Loans to other parties numbering is as follows:

(1) if it's ordinary business relationship, the number is "1".
(2) if it needs short-term financial funds, the number is "2".

Note 6: The transactions within the Group were eliminated in the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

		Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD
No.	Name of company	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for one party	Highest balance for guarantees and endorsements during the year	Ending balance of guarantees and endorsements	Amount actually drawn	Property pledged on guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum allowable amount for guarantees and endorsements	Parent company endorsement / guarantees to third parties on behalf of subsidiary	Subsidiary endorsement / guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of company in Mainland China
		Name	Relationship with the company
0	TSRC	TSRC (USA) Investment Corporation	4	(Note 2)	427,965	427,965	353,784	-	% 2.83	(Note 3)	Y
0	TSRC	ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd.	6	(Note 2)	1,561,828	765,887	69,222	-	% 5.07	(Note 3)			Y
0	TSRC	Indian Synthetic Rubber Private Limited	6	(Note 2)	950,082	950,082	848,797	-	% 6.29	(Note 3)
0	TSRC	TSRC (Vietnam) Co., Ltd.	4	(Note 2)	504,999	504,999	430,819	-	% 3.34	(Note 3)	Y
0	TSRC	TSRC Specialty Materials LLC	4	(Note 2)	285,310	285,310	164,597	-	% 1.89	(Note 3)	Y

Note 1: The guarantee's relationship with the guarantor is as follows:
(1) A company with which it does business.
(2) A company in which the public company directly and indirectly holds more than 50 percent of the voting shares.
(3) A company that directly and indirectly holds more than 50 percent of the voting shares in the public company.
(4) A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
(5) A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.
(7) Companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 2: The guaranteed amount by the Company is limited to 60% of total equity amounting to $9,066,943 thousand.

Note 3: The aggregate amount of guarantee by the Company is limited to 1.5 times its stockholders' equity, amounting to $22,667,357 thousand.
Note 4: The transactions within the Group were eliminated in the consolidated financial statements.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Securities held as of March 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):

							Unit: thousand NTD	Unit: thousand NTD
Name of holder	Nature and name of security	Relationship with the security issuer	Account name		Ending balance			Remarks
				Number of shares	Book value	Holding percentage	Market value
TSRC TSRC TSRC Dymas Corporation	Evergreen Steel Corporation Thai Synthetic Rubbers Co., Ltd. Hsin-Yung Enterprise Corporation Thai Synthetic Rubbers Co., Ltd.	- - - -	Financial assets at fair value through other comprehensive income－non- current Financial assets at fair value through other comprehensive income－non- current Financial assets at fair value through other comprehensive income－non- current Financial assets at fair value through other comprehensive income－non- current	12,148,000 599,999 5,657,000 837,552	583,590 69,810 342,758 97,449 1,093,607	3.04 % 5.42 % 3.90 % 7.57 %	583,590 69,810 342,758 97,449 1,093,607

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
(vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$300 million or 20% of the capital stock:

capital stock:	capital stock:
								Unit: thousand NTD
Name of company	Counter-party	Relationship	Transaction details				Status and deviation f length tr	reason for rom arm's- ansaction	Account / note receivable (payable)		Remarks
			Purchase / Sale	Amount	Percentage of total purchases / sales	Credit period	Unit price	Credit period	Balance	Percentage of total accounts / notes receivable (payable)
TSRC (Lux.) Corporation S.A R.L TSRC Specialty Materials LLC TSRC (Lux.) Corporation S.A R.L TSRC (Nantong) Industries Ltd.	TSRC Specialty Materials LLC TSRC (Lux.) Corporation S.A R.L TSRC (Nantong) Industries Ltd. TSRC (Lux.) Corporation S.A R.L	Related parties Related parties Related parties Related parties	Purchase Sale Purchase Sale	181,290 (181,290) 335,867 (335,867)	32.20 % (18.28) % 59.66 % (23.11) %	90 days 90 days 70 days 70 days	- - - -		(71,281) 71,281 (168,190) 168,190	% (29.28) % 14.03 % (69.09) % 26.65

Note 1: The transactions within the Group were eliminated in the consolidated financial statements.

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

					Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD	Unit: thousand NTD
Name of related party	Counter-party	Relationship	Balance of receivables from related party	Turnover rate	Overdue amount		Amounts received in subsequent period (Note 2)	Allowances for bad debts
					Amount	Action taken
TSRC (Nantong) Industries Ltd.	TSRC (Lux.) Corporation S.A R.L	Related parties	168,190	10.25	-		97,021	-

Note 1: Transactions within the Group were eliminated in the consolidated financial statements. Note 2: Until May 6, 2021.

(ix) Trading in derivative instruments: Please refer to note 6(b).

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(x) Business relationships and significant intercompany transactions:

Unit: thousand NTD

No.	Name of company	Name of counter- party	Existing relationship with the counter- party	Transaction details	Transaction details	Transaction details	Transaction details
				Account name	Amount	Trading terms	Percentage of the total consolidated revenue or total assets
0 0 0 0 0 0 0 1 1 1 1 1 2 2 3 3 4 4	TSRC TSRC TSRC TSRC TSRC TSRC TSRC TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd. TSRC Specialty Materials LLC TSRC Specialty Materials LLC Shen Hua Chemical Industries Co., Ltd. TSRC (Lux.) Corporation S.A R.L TSRC (Shanghai) Industries Ltd. TSRC (Shanghai) Industries Ltd.	TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd. TSRC (Lux.) Corporation S.A R.L Polybus Corporation Pte Ltd TSRC Specialty Materials LLC TSRC Specialty Materials LLC TSRC (Nantong) Industries Ltd. TSRC (Shanghai) Industries Ltd. Polybus Corporation Pte Ltd TSRC (Lux.) Corporation S.A R.L TSRC (Lux.) Corporation S.A R.L TSRC-UBE (Nantong) Industries Ltd. TSRC (Lux.) Corporation S.A R.L TSRC (Lux.) Corporation S.A R.L Polybus Corporation Pte Ltd TSRC TSRC (Nantong) Industries Ltd. TSRC (Nantong) Industries Ltd.	1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 2 3 3	Sales revenue Other income and expenses Sales revenue Sales revenue Sales revenue Accounts receivable Other income and expenses Sales revenue Sales revenue Sales revenue Accounts receivable Other income and expenses Sales revenue Accounts receivable Sales revenue Other income and expenses Sales revenue Entrusted loans	26,904 17,957 44,830 10,016 75,548 66,528 17,932 13,009 75,583 335,867 168,190 56,040 181,290 71,281 67,517 13,020 12,722 86,870	The transaction is not significantly different from normal transactions, and the collection terms were about two months 〃〃〃〃 The transaction is not significantly different from normal transactions, and the collection terms were about six months The transaction is not significantly different from normal transactions, and the collection terms were about two months 〃〃〃〃 The transaction is not significantly different from normal transactions, and the collection terms were about three months 〃 The transaction is not significantly different from normal transactions, and the collection terms were about two months The transaction is not significantly different from normal transactions, and the collection terms were about six months The transaction is not significantly different from normal transactions, and the collection terms were about two months One year based on the contract of entrusted loans	0.33 % 0.22 % 0.55 % 0.12 % 0.92 % 0.21 % 0.22 % 0.16 % 0.92 % 4.09 % 0.54 % 0.68 % 2.21 % 0.23 % 0.82 % 0.16 % 0.16 % 0.28 %

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1: Company numbering is as follows:

(1) Parent company - 0.

(2) Subsidiary starts from 1.

Note 2: The number of the relationship with the transaction counterparty represents the following: (1) 1 represents downstream transactions.

(2) 2 represents upstream transactions.

(3) 3 represents midstream transactions.

Note 3: For balance sheet items, over 0.1% of total consolidated assets, and for profit or loss items, over 0.1% of total consolidated revenue were selected for disclosure. Note 4: TSRC's guarantees for bank loans of investees. Note 5: The transactions within the Group were eliminated in the consolidated financial statements.

(b) Information on investees:

The following is the information on investees for the three months ended March 31, 2021 (excluding information on investees in Mainland China):

Mainland China):	Mainland China):	Mainland China):	Mainland China):
				Unit: thousand NTD/thousand USD/thousand EUR
Name of investor	Name of investee	Address	Scope of business	Original cost		Ending balance			Net income (losses) of investee	Investment income (losses)	Remarks
				March 31, 2021	December 31, 2020	Shares	Percentage of ownership	Book value
TSRC TSRC TSRC TSRC Trimurti Holding Corporation Trimurti Holding Corporation Trimurti Holding Corporation TSRC (Hong Kong) Limited TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation Hardison International Corporation Hardison International Corporation Dymas Corporation	Trimurti Holding Corporation Hardison International Corporation Dymas Corporation TSRC (Vietnam) Co., Ltd. Polybus Corporation Pte Ltd TSRC (Hong Kong) Limited Indian Synthetic Rubber Private Limited TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation TSRC Specialty Materials LLC Triton International Holdings Corporation Dymas Corporation Asia Pacific Energy Development Co., Ltd.	Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. 8 VSIP II-A Street 31, Vietnam Singapore Industrial Park II-A, Tan Uyen Town, Binh Duong Province, Vietnam 100 Peck Seah Strect #09-16 Singapore 079333 15/F Boc Group Life Assurance Tower 136 Dses Voeus Road Central Room No.702, Indian Oil Bhawan, 1 Sri Aurobindo Marg, Yusuf Sarai, New Delhi 110016, India 39-43 avenue de la Liberte L-1931 Luxembourg 2711 Centerville Road, Suite 400, County of New Castle, Wilmington, Delaware, USA 12012 Wickchester Lane, Suite 280, Houston, TX, USA Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Cayman Islands	Investment corporation Investment corporation Investment corporation Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products International commerce and investment corporation Investment corporation Production and sale of synthetic rubber products International commerce and investment corporation Investment corporation Production and sale of TPE Investment corporation Investment corporation Consulting for electric power facilities management and electrical system design	1,005,495 109,442 38,376 278,280 1,857,397 (USD65,101) 2,962,944 (USD103,850) 840,894 (USD29,473) 2,506,081 (EUR74,870) 2,740,403 (USD96,050) 6,237,362 (USD218,617) 1,427 (USD50) 136,920 (USD4,799) 321,972 (USD11,285)	1,005,495 109,442 38,376 278,280 1,857,397 (USD65,101) 2,962,944 (USD77,850) 840,894 (USD29,473) 2,506,081 (EUR74,870) 2,740,403 (USD96,050) 6,237,362 (USD218,617) 1,427 (USD50) 136,920 (USD4,799) 321,972 (USD11,285)	86,920,000 3,896,305 1,161,004 - 105,830,000 103,850,000 222,861,375 74,869,617 130 - 50,000 4,798,566 7,522,337	% 100.00 % 100.00 % 19.48 % 100.00 % 100.00 % 100.00 % 50.00 % 100.00 % 100.00 % 100.00 % 100.00 % 80.52 % 37.78	13,433,239 547,692 113,402 191,125 8,301,870 3,501,066 702,631 2,792,121 2,717,408 2,193,457 55,678 490,060 422,986	727,214 5,132 9,993 (6,621) 445,480 101,280 367,067 76,566 36,318 85,128 (2,846) 9,993 26,463	727,214 5,132 1,947 (6,621) 445,480 101,280 183,533 76,566 36,318 85,128 (2,846) 8,047 9,998	Subsidiary Subsidiary Subsidiary (note 2) Subsidiary Indirectly owned subsidiary Indirectly owned subsidiary - Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary -

Note 1: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531; EUR1 to NTD33.4726).

Note 2: TSRC directly owns 19.48% of Dymas's equity and indirectly owns 80.52% via Hardison International Corporation, total directly and indirectly owns of equity are 100%. Note 3: Transactions within the Group were eliminated in the consolidated financial statements.

(c) Information on investment in Mainland China:

(i) The names, main businesses and products, and other information of investees in Mainland China:

					Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD
Name of investee in Mainland China	Scope of business	Issued capital	Method of investment (Note 1)	Cumulative investment (amount) from Taiwan as of January 1, 2021	Investment flow during current period		Cumulative investment (amount) from Taiwan as of March 31, 2021	Net income (losses) of investee	Direct / indirect investment holding percentage	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Remittance amount	Repatriation amount
Shen Hua Chemical Industries Co., Ltd.	Production and sale of synthetic rubber products	1,176,048 (USD41,220)	(2)a.	-	-	-	-	397,605	65.44 %	260,193	2,137,952	4,786,340
Changzhou Asia Pacific Co-generation Co., Ltd.	Power generation and sale of electricity and steam	659,066 (USD23,100)	(2)c.	109,330 (USD3,832)	-	-	109,330 (USD3,832)	30,754	28.34 %	8,716	405,316	358,308
TSRC (Shanghai) Industries Ltd.	Production and sale of compounding materials	156,921 (USD5,500)	(2)b.	111,842 (USD3,920)	-	-	111,842 (USD3,920)	26,994	100.00 %	26,994	611,968	-
Nantong Qix Storage Co., Ltd.	Storehouse for chemicals	85,593 (USD3,000)	(2)d.	42,797 (USD1,500)	-	-	42,797 (USD1,500	(5,598)	50.00 %	(2,799)	55,351	74,060

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investee in Mainland China	Scope of business	Issued capital	Method of investment (Note 1)	Cumulative investment (amount) from Taiwan as of January 1, 2021	Investment flow during current period	Investment flow during current period	Cumulative investment (amount) from Taiwan as of March 31, 2021	Net income (losses) of investee	Direct / indirect investment holding percentage	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Remittance amount	Repatriation amount
TSRC-UBE (Nantong) Chemical Industrial Co., Ltd.	Production and sale of synthetic rubber products	1,141,240 (USD40,000)	(2)a.	28,531 (USD1,000)	-	-	28,531 (USD1,000)	114,997	55.00 %	63,248	942,966	-
TSRC (Nantong) Industries Ltd.	Production and sale of TPE	2,999,321 (USD105,125)	(2)a.	189,674 (USD6,648)	-	-	189,674 (USD6,648)	117,265	100.00 %	117,265	4,792,668	440,864
ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	Production and sale of NBR	1,278,189 (USD44,800)	(2)a.	-	-	-	-	49,752	50.00 %	24,876	346,673	-

Note 1: The method of investment is divided into the following four categories:
(1) Remittance from third-region companies to invest in Mainland China.
(2) Through the establishment of third-region companies then investing in Mainland China.
- a. Through the establishment of Polybus Corporation Pte Ltd then investing in Mainland China.
- b. Through the establishment of TSRC (Hing Kong) Limited then investing in Mainland China.
- c. Through the establishment of Asia Pacific Energy Development Co., Ltd. then investing in Mainland China.
- d. Through the establishment of Triton International Holdings Corporation then investing in Mainland China.
(3) Through transferring the investment to third-region existing companies then investing in Mainland China. (4) Other methods: EX: delegated investments.

Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531). Note 3: The transactions within the Group were eliminated in the consolidated financial statements.

(ii) Limitation on investment in Mainland China:

(3) Through transferring the investment to third-region existing companies then investing in Mainland China. (4) Other methods: EX: delegated investments. Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531). Note 3: The transactions within the Group were eliminated in the consolidated financial statements. Limitation on investment in Mainland China:	(3) Through transferring the investment to third-region existing companies then investing in Mainland China. (4) Other methods: EX: delegated investments. Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531). Note 3: The transactions within the Group were eliminated in the consolidated financial statements. Limitation on investment in Mainland China:	(3) Through transferring the investment to third-region existing companies then investing in Mainland China. (4) Other methods: EX: delegated investments. Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531). Note 3: The transactions within the Group were eliminated in the consolidated financial statements. Limitation on investment in Mainland China:	(3) Through transferring the investment to third-region existing companies then investing in Mainland China. (4) Other methods: EX: delegated investments. Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531). Note 3: The transactions within the Group were eliminated in the consolidated financial statements. Limitation on investment in Mainland China:
Unit: thousand NTD/thousand USD
Company name	Accumulated investment amount in Mainland China as of March 31, 2021	Investment (amount) approved by Investment Commission, Ministry of Economic Affairs	Maximum investment amount set by Investment Commission, Ministry of Economic Affairs
TSRC	482,174 (USD16,900)	5,344,855 (USD187,335) (Note 2)	- (Note 1)

Note 1: In accordance with the "Regulations on Permission for Investment or Technical Cooperation in Mainland China" and the "Principles for Examination of Applications for Investment or Technical Cooperation in Mainland China" amended and ratified by the Executive Yuan on August 22, 2008, the Company met the criteria for operational headquarters under the Statute for Industrial Innovation and obtained approval from the Industrial Development Bureau, Ministry of Economic Affairs, on August 23, 2018. As it has an operational headquarters status, the Company is not subject to the limitation as to the amount of investment in Mainland China during the period from August 20, 2018 to August 19, 2021.

Note 2: This amount includes capital increase out of earnings, approved by the Investment Commission, MOEA.

Note 3: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD28.531).

(iii) Significant transactions:

Related information is provided in note 13(a) 10.

(d) Major shareholders:

Shareholding Shareholder’s Name	Shares	Percentage
Panama Banco industrial company	69,524,417	% 8.41
Han-De Construction Co.,Ltd.	63,093,108	% 7.64
Wei Dah Development Co., Ltd.	53,708,923	% 6.50

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information

The Group's operating segment information and reconciliation were as follows:

Three months ended March 31, 2021 Revenue: Revenue from external customers Income from operations Three months ended March 31, 2020 Revenue: Revenue from external customers Income from operations	Synthetic rubber $ 7,924,286 $ 1,439,377 $ 6,281,076 $ 187,985	Non-synthetic rubber 292,525 33,245 212,770 (13,318)	Others - 12,782 - (6,291)	Total 8,216,811
				1,485,404
				6,493,846
				168,376

As the information on segment assets and liabilities was not provided to the chief operating decision maker, the information on segment assets and liabilities is not disclosed.

AI assistant

TSRC — Interim / Quarterly Report 2021

51969_rns_2021-11-05_85f0f088-62d8-40af-b893-0d1a0d8523ce.pdf

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of March 31, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020

(1) Company history

(2) Approval date and procedures of the consolidated financial statements

(3) New standards, amendments and interpretations adopted:

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

(4) Summary of significant accounting policies

(a) Statement of compliance

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Basis of consolidation

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Non-current assets held for sale

(d) Employee benefits

(e) Income tax

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

(a) Cash and cash equivalents

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Inventories

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Non-current assets held for sale

(h) Investments accounted for under equity method

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Right-of-use assets

(k) Investment property

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Intangible assets

(m) Short-term and long-term borrowings

(i) Short-term bank borrowings

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term borrowings

1) Long-term bank borrowings

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Defined benefit plans

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

(q) Income tax

(r) Capital and other equity

－ (i) Retained earnings earnings distribution

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC Interim / Quarterly Report 2021