TSRC - Interim / Quarterly Report 2021

Stock Code:2103

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 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 12～44 44～47 47 48 48 48 48～49 50～53 53～54 54～55 55 56

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

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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 June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2021 and 2020, as well as the changes in equity and cash flows for the six 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 $3,430,631 thousand and $3,101,975 thousand, constituting 11% and 10% of the consolidated total assets; and the total liabilities amounting to $727,902 thousand and $762,019 thousand, both constituting 5% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $141,542 thousand, $(10,123) thousand, $256,898 thousand and $(27,366) thousand, constituting 10%, (25)%, 10% and 22% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 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 $1,715,467 thousand and $987,595 thousand as of June 30, 2021 and 2020, respectively, and its equity in net earnings (loss) on these investee companies of $311,128 thousand, $(48,057) thousand, $526,736 thousand and $(63,896) thousand for the three months and six months ended June 30, 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 June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020, as well as its consolidated cash flows for the six months then ended 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) August 3, 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 June 30, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31 and June 30, 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 (notes 6(d) and 7) 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(j), 8 and 9) 1755 Right-of-use assets (note 6(k)) 1760 Investment property (note 6(l)) 1780 Intangible assets (note 6(m)) 1840 Deferred income tax assets 1900 Other non-current assets (note 8) Total non-current assets Total assets	June 30, 2021 Amount % $ 4,554,978 14 7,787 - 989,639 3 3,357,739 10 162,730 1 - - 5,062,740 16 201,665 1 626,319 2 14,963,597 47 1,527,262 5 1,715,467 5 9,999,071 31 967,548 3 1,559,510 5 951,023 3 287,276 1 140,450 - 17,147,607 53 $ 32,111,204 100	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	June 30, 2020 Amount % 4,745,090 16 1,163 - 566,705 2 2,035,821 7 131,514 - 20,474 - 5,076,817 17 - - 410,405 1 12,987,989 43 1,277,516 5 987,595 3 10,025,719 34 1,182,546 4 1,574,236 5 1,603,547 5 276,568 1 82,539 - 17,010,266 57 29,998,255 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(n)) 2322 Current portion of long-term borrowings (notes 6(n) 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) 2216 Dividend payable (note 6(r)) 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(n) and 8) 2542 Other long-term borrowings (note 6(n)) 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 (notes 6(i) and (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	June 30, 2021 Amount % $ 3,836,769 12 2,325,078 7 2,735 - 1,346,866 4 50,898 - 304,676 1 469,318 1 1,370,024 4 149,248 - 150,936 - 10,006,548 29 2,135,109 7 349,405 1 29,518 - 944,741 3 424,528 1 126,231 - 4,009,532 12 14,016,080 41 8,257,099 26 49,531 - 4,073,680 14 3,080,793 10 7,154,473 24 (479,090) (1) 1,136,313 4 (69,016) - 588,207 3 16,049,310 53 2,045,814 6 18,095,124 59 $ 32,111,204 100	December 31, 2020 Amount % 3,789,276 13 2,784,129 10 32,628 - 1,643,264 6 - - 7,687 - 172,787 1 1,196,448 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	June 30, 2020 Amount % 4,272,257 14 848,878 3 37 - 1,160,426 4 24,971 - 422,222 1 192,999 1 943,153 4 165,255 - 208,067 1 8,238,265 28 3,804,839 13 349,807 1 37,499 - 885,561 3 637,245 2 129,985 - 5,844,936 19 14,083,201 47 8,257,099 27 47,140 - 4,068,862 14 1,461,894 5 5,530,756 19 (342,051) (1) 881,573 3 (93,368) - 446,154 2 14,281,149 48 1,633,905 5 15,915,054 53 29,998,255 100

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 and six months ended June 30, 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(j), 6(k), 6(n), 6(o), 6(p), 6(t) and 7) 5910 Gross profit 6000 Operating expenses (notes 6(d), 6(j), 6(k), 6(o), 6(p) 6(t) and 7): 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss (reversal of 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 7010 Other 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 (loss) 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 (losses) per share (New Taiwan Dollars) (note 6(s)) 9810 Diluted earnings (losses) per share (in New Taiwan dollars) (note 6(s))	For the three mont	hs ended June 30	For the six month	s ended June 30 2020 Amount % 12,029,185 100 10,653,573 89 1,375,612 11 446,058 4 528,691 4 179,717 1 1,431 - 1,155,897 9 82,449 1 302,164 3 29,897 - 28,285 - 8,168 - (72,611) (1) (63,896) - (70,157) (1) 232,007 2 185,083 2 46,924 - 254,802 2 - - 254,802 2 (379,981) (3) (46,559) - - - (426,540) (3) (171,738) (1) (124,814) (1) (58,214) (1) 105,138 1 46,924 (181,688) (1) 56,874 - (124,814) (1) (0.07)
	2021 Amount % $ 8,520,715 100 6,542,568 77 1,978,147 23 433,233 5 262,236 3 90,771 1 (3) - 786,237 9 55,223 1 1,247,133 15 9,770 - 28,285 - (63,491) (1) (28,986) - 311,128 4 256,706 3 1,503,839 18 333,123 4 1,170,716 14 436,494 5 - - 436,494 5 (235,651) (3) 17,057 - - - (218,594) (3) 217,900 2 $ 1,388,616 16 $ 1,001,927 12 168,789 2 $ 1,170,716 14 $ 1,234,995 14 153,621 2 $ 1,388,616 16 $ 1.21 $ 1.21	2020 Amount % 5,535,339 100 4,920,874 89 614,465 11 207,210 4 260,742 5 86,277 1 (4) - 554,225 10 40,211 1 100,451 2 13,743 - 28,285 - 1,519 - (32,310) - (48,057) (1) (36,820) (1) 63,631 1 111,309 2 (47,678) (1) 361,763 7 - - 361,763 7 (280,730) (5) 7,243 - - - (273,487) (5) 88,276 2 40,598 1 (117,554) (2) 69,876 1 (47,678) (1) (4,781) - 45,379 1 40,598 1 (0.14) (0.14)	2021 Amount % 16,737,526 100 12,753,863 76 3,983,663 24 848,925 6 521,162 3 179,802 1 308 - 1,550,197 10 110,569 1 2,544,035 15 15,888 - 28,285 - (67,343) - (58,358) - 526,736 3 445,208 3 2,989,243 18 732,396 4 2,256,847 14 577,411 3 - - 577,411 3 (322,951) (2) 22,414 - - - (300,537) (2) 276,874 1 2,533,721 15 1,898,897 12 357,950 2 2,256,847 14 2,207,446 13 326,275 2 2,533,721 15 2.30 2.29
				(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 six months ended June 30, 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 23,383 - - - (365,434)	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 91,721 - - -	1,940,361 (91,721) (412,855) (58,214) -	5,917,502 - (412,855) (58,214) -		711,094 - - - 254,802	(80,526) - - - (12,842)	653,951 - - - (123,474)	14,875,692 - (412,855) (58,214) (123,474)	1,577,031 - - 105,138 (48,264)	16,452,723 - (412,855) 46,924 (171,738)
-	-	-	(58,214)	(58,214)	(365,434)	254,802	(12,842)	(123,474)	(181,688)	56,874	(124,814)
-	-	-	84,323	84,323	-	(84,323)	-	(84,323)	-	-	-
$ 8,257,099	47,140	4,068,862	1,461,894	5,530,756	(342,051)	881,573	(93,368)	446,154	14,281,149	1,633,905	15,915,054
$ 8,257,099 - - - -	49,531 - - - -	4,068,862 4,818 - - -	1,483,970 (4,818) (297,256) 1,898,897 -	5,552,832 - (297,256) 1,898,897 -	(198,125) - - - (280,965)	558,902 - - - 577,411	(81,119) - - - 12,103	279,658 - - - 308,549	14,139,120 - (297,256) 1,898,897 308,549	1,719,539 - - 357,950 (31,675)	15,858,659 - (297,256) 2,256,847 276,874
-	-	-	1,898,897	1,898,897	(280,965)	577,411	12,103	308,549	2,207,446	326,275	2,533,721
$ 8,257,099	49,531	4,073,680	3,080,793	7,154,473	(479,090)	1,136,313	(69,016)	588,207	16,049,310	2,045,814	18,095,124

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 six months ended June 30, 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 Dividend 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 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 Dividends received 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 flow from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		For the six months ended June 30 2021 2020 $ 2,989,243 232,007 553,032 506,032 61,038 75,008 308 1,431 58,358 72,611 (15,888) (29,897) (28,285) (28,285) (526,736) 63,896 69,368 15,566 41,394 40,963 212,589 717,325 (4,327) (1,149) (418,419) 299,642 (555,696) 722,365 (8,050) (12,780) (290,276) 1,337,862 177,870 83,145 (1,098,898) 2,429,085 (29,893) (5,635) (296,398) (1,253,363) 50,898 (34,447) 179,892 (331,955) 22,651 (11,171) (17,118) (56,146) (11,185) 6,855 (101,153) (1,685,862) (1,200,051) 743,223 (987,462) 1,460,548 2,001,781 1,692,555 7,379 26,433 (55,892) (70,907) (285,520) (160,253) 1,667,748 1,487,828 - 135,404 (408,611) (594,795) 732 266 - (25,449) 23,648 (6,839) 28,285 28,285 47,167 - (308,779) (463,128) 14,127,619 19,225,015 (14,019,684) (19,635,119) 1,176,972 220,651 (1,159,103) (500,855) (99,565) (88,163) (267) (277) 25,972 (778,748) (108,426) (196,142) 1,276,515 49,810 3,278,463 4,695,280 $ 4,554,978 4,745,090	For the six months ended June 30 2021 2020 $ 2,989,243 232,007 553,032 506,032 61,038 75,008 308 1,431 58,358 72,611 (15,888) (29,897) (28,285) (28,285) (526,736) 63,896 69,368 15,566 41,394 40,963 212,589 717,325 (4,327) (1,149) (418,419) 299,642 (555,696) 722,365 (8,050) (12,780) (290,276) 1,337,862 177,870 83,145 (1,098,898) 2,429,085 (29,893) (5,635) (296,398) (1,253,363) 50,898 (34,447) 179,892 (331,955) 22,651 (11,171) (17,118) (56,146) (11,185) 6,855 (101,153) (1,685,862) (1,200,051) 743,223 (987,462) 1,460,548 2,001,781 1,692,555 7,379 26,433 (55,892) (70,907) (285,520) (160,253) 1,667,748 1,487,828 - 135,404 (408,611) (594,795) 732 266 - (25,449) 23,648 (6,839) 28,285 28,285 47,167 - (308,779) (463,128) 14,127,619 19,225,015 (14,019,684) (19,635,119) 1,176,972 220,651 (1,159,103) (500,855) (99,565) (88,163) (267) (277) 25,972 (778,748) (108,426) (196,142) 1,276,515 49,810 3,278,463 4,695,280 $ 4,554,978 4,745,090
		2021 $ 2,989,243 553,032 61,038 308 58,358 (15,888) (28,285) (526,736) 69,368 41,394 212,589 (4,327) (418,419) (555,696) (8,050) (290,276) 177,870 (1,098,898) (29,893) (296,398) 50,898 179,892 22,651 (17,118) (11,185) (101,153) (1,200,051) (987,462) 2,001,781 7,379 (55,892) (285,520) 1,667,748 - (408,611) 732 - 23,648 28,285 47,167 (308,779) 14,127,619 (14,019,684) 1,176,972 (1,159,103) (99,565) (267) 25,972 (108,426) 1,276,515 3,278,463 $ 4,554,978

			506,032 75,008 1,431 72,611 (29,897) (28,285) 63,896 15,566 40,963
			717,325
			(1,149) 299,642 722,365 (12,780) 1,337,862 83,145
			2,429,085
			(5,635) (1,253,363) (34,447) (331,955) (11,171) (56,146) 6,855
			(1,685,862)
			743,223
			1,460,548
			1,692,555 26,433 (70,907) (160,253)
			1,487,828
			135,404 (594,795) 266 (25,449) (6,839) 28,285 -
			(463,128)
			19,225,015 (19,635,119) 220,651 (500,855) (88,163) (277)
			(778,748)
			(196,142)
			49,810 4,695,280
			4,745,090

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 six months ended June 30, 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 published on August 3, 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”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on April 1, 2021, would not have a significant impact on its consolidated financial statements:

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) 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" (Regulations) 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 June 30, 2021 December 31, 2020 June 30, 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 June 30, 2021 December 31, 2020 June 30, 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)
			June 30, 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	June 30, 2021 December 31, 2020 $ 403 432 1,576,611 961,937 2,977,964 2,316,094 $ 4,554,978 3,278,463 through profit or loss June 30, 2021 December 31, 2020 $ 7,787 3,460 June 30, 2021 December 31, 2020 $ 2,735 32,628	June 30, 2020
		424 1,413,784 3,330,882
		4,745,090
		June 30, 2020
		1,163
		June 30, 2020
		37

(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:

Forward contracts Swap contracts Swap contracts Swap contracts	June 30, 2021	June 30, 2021
	Contract amount (thousand dollars) EUR USD 400 / 481 EUR USD 27,850 / 33,363 USD CNH 3,150 / 20,394 TWD USD 83,931 / 3,000	Currency Maturity dates EUR/USD 2021.7.12 EUR/USD 2021.7.1~2021.10.1 USD/CNH 2021.7.30~2021.9.24 TWD/USD 2021.7.26

Forward contracts Swap contracts Swap contracts Forward contracts Forward contracts Swap contracts	December 31, 2020	December 31, 2020
	Contract amount (thousand dollars) Currency Maturity dates EUR USD 450 / 551 EUR/USD 2021.02.19~2021.02. 26 TWD USD 238,846 / 8,500 TWD/USD 2021.01.15~2021.01. 22 EUR USD 21,050 / 24,753 EUR/USD 2021.01.06~2021.02. 03 June 30, 2020
	Contract amount (thousand dollars) EUR TWD 350 / 11,644 EUR USD 200 / 225 EUR USD 5,400 / 6,103	Currency Maturity dates EUR/TWD 2020.07.22 EUR/USD 2020.07.22 EUR/USD 2020.07.22~2020.08. 07

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Equity investments at fair value through other comprehensive income: Listed stocks (domestic) Unlisted stocks (domestic and overseas) Total	June 30, 2021 $ 846,716 680,546 $ 1,527,262	December 31, 2020 - 952,645 952,645	June 30, 2020
			- 1,277,516
			1,277,516

(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 six month ended June 30, 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:

June 30, 2021 THB December 31, 2020 THB June 30, 2020 THB	Foreign currency amount (thousand dollars) $ 368,259 205,493 636,800	Exchange rate NTD 0.8744 322,006 0.9556 196,370 0.9645 614,193

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Notes and accounts receivable

Notes receivable Accounts receivable Less: allowance for impairment	June 30, 2021 $ 989,639 3,363,153 5,414 $ 4,347,378	December 31, 2020 571,220 2,807,545 5,194 3,373,571	June 30, 2020
			566,705 2,046,033 10,212
			2,602,526

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:

	June 30, 2021
Gross carrying amount Weighted- average expected credit loss rate $ 4,302,107 0.09%~0.17% 46,278 2.18%~4.58% 4,407 6.59%~34.60% $ 4,352,792 December 31, 2020		Loss allowance provision
		3,750 1,339 325
		5,414

	Weighted- average expected credit loss rate 0.09%~0.17% 2.78%~5.18% June 30, 2020	Loss allowance provision
		4,055 1,139
		5,194

	Weighted- average expected credit loss rate 0.01%~0.65% 0.33%~6.16% 5.05%~18.34% 100%	Loss allowance provision
		6,599 1,338 2,269 6
		10,212

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 six months ended June 30 2021 2020 $ 5,194 8,935 308 1,431 (88) (154) $ 5,414 10,212
	2021 $ 5,194 308 (88) $ 5,414

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	June 30, 2021 $ 37,355 125,375 $ 162,730	December 31, 2020 39,572 106,599 146,171	June 30, 2020
			37,576 93,938
			131,514

The aformentioned financial assets were not past due or impaired. 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	June 30, 2021 $ 1,424,753 9,584 300,195 2,696,985 631,223 $ 5,062,740	December 31, 2020 1,719,583 9,476 297,435 2,258,866 487,104 4,772,464	June 30, 2020
			1,231,026 101,235 258,700 2,941,514 544,342
			5,076,817

The aformentioned inventories were not pledged as collateral.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 June 30 2021 2020 $ (56,205) 6,825 (5,497) (4,988) - (11) 77,412 79,816 $ 15,710 81,642	For the six months ended June 30 2021 2020 (84,960) 55,289 (12,768) (9,422) - 3,288 156,517 192,146 58,789 241,301
	2021 $ (56,205) (5,497) - 77,412 $ 15,710	2021 (84,960) (12,768) - 156,517 58,789

(g) Non-current assets held for sale

To optimize the Group’s asset value, the Group disposed its land and building located in Kaohsiung City, Renwu Dist. to a non-related party for $1,220,000 thousands, with a book value of $201,665 thousand, recognized as non-current assets-for-sale as of June 30, 2021, based on the resolution approved during the board meeting held on March 11, 2021. All relevant transactions amounting to $909,118 thousands, recognized as benefit, had been completed in July 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	June 30, 2021 $ 744,741 970,726 $ 1,715,467	December 31, 2020 732,531 571,256 1,303,787	June 30, 2020
			652,845 334,750
			987,595

(i) Associates

For the three months and six months ended June 30, 2021 and 2020, the Group recognized its share of gain from the associates of $66,565 thousand, $47,901 thousand, $101,439 thousand and $36,801 thousand, respectively.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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
			June 30, 2021	December 31, 2020 June 30, 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
Revenue
Net income (loss) of
continued operations
Other comprehensive income
(loss)
Total comprehensive income
(loss)
Total comprehensive income
attributable to the Group

June 30, 2021
December 31,
2020
June 30, 2020
$ 520,601
478,937
429,711
611,529
668,836
689,374
(328,431)
(471,579)
(634,089)
(29,977)
(31,085)
(30,464)
$
773,722
645,109
454,532
$
386,861
322,554
227,266
For the three months
ended June 30
For the six months
ended June 30
2021
2020
2021
2020
$
535,478
385,845
988,954
677,642
$ 90,813
42,444
140,565
14,095
-
-
-
-
$
90,813
42,444
140,565
14,095
$
45,407
21,221
70,283
7,047

(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 (loss) of the associate attributable to the Group Other Ending balance of the equity of the associate attributable to the Group	For the six months ended June 30 2021 2020 $ 323,287 231,111 70,283 7,047 (5,424) (8,290) $ 388,146 229,868
	2021 $ 323,287 70,283 (5,424) $ 388,146

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

				December 31,
		June 30, 2021		2020 June 30, 2020
Current assets	$	747,678		625,218	685,481
Non-current assets		965,953		1,011,338	1,018,114
Current liabilities		(746,714)		(529,361)	(559,491)
Non-current liabilities		(9,394)		(10,318)	(10,875)
Equity	$	957,523		1,096,877	1,133,229
Equity attributable to the
Group	$	361,752		414,400	428,134
		For the three months For the six months
		ended June 30 ended June 30
		2021	2020 2021		2020
Revenue	$	438,902	363,720 710,767		448,270
Net income of continued
operations	$	56,003		70,618 82,466	78,755
Other comprehensive income
(loss)		-		- -	-
Total comprehensive income
(loss)	$	56,003		70,618 82,466	78,755
Total comprehensive income
attributable to the Group	$	21,158		26,680 31,156	29,754
			For the six months ended June 30
				2021	2020
Beginning balance of the equity of the associate
attributable to the Group			$	409,244	404,508
Current total comprehensive income of the
associate attributable to the Group				31,156	29,754
Other				(83,805)	(11,285)
Ending balance of the equity of the associate
attributable to the Group			$	356,595	422,977

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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
			June 30, 2021	December 31, 2020 June 30, 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

					December 31,
			June 30, 2021		2020	June 30, 2020
Current assets		$		2,231,211	1,119,957	1,289,087
Non-current assets				2,752,478	3,089,725	2,955,984
Current liabilities			(1,525,099)		(1,252,076)	(2,265,829)
Non-current liabilities			(1,565,222)		(1,869,712)	(1,367,202)
Equity		$		1,893,368	1,087,894	612,040
Equity attributable to the Group		$		946,684	543,947	306,020
		For	the three months		For the six	months
		ended June 30			ended June 30
		2021		2020	2021	2020
Revenue	$	1,539,877		255,839	3,240,896	1,381,506
Net income (loss) of
continued operations	$	485,603		(186,254)	852,670	(189,798)
Other comprehensive income
(loss)			(942) 13,620		5,304	(36,391)
Total comprehensive income
(loss)	$	484,661		(172,634)	857,974	(226,189)
Total comprehensive income
attributable to the Group	$	242,330		(86,317)	428,987	(113,095)

(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 six months ended June 30	For the six months ended June 30
	2021 $ 512,624 428,987 (27,544) $ 914,067	2020
		396,539 (113,095 (7,466
		275,978

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

Balance of not significant joint venture's equity Attributable to the Group: Income (loss) from continued operations Other comprehensive income (loss) Total comprehensive income (loss)	June 30, 2021 $ 56,659 For the three months ended June 30	June 30, 2021 $ 56,659 For the three months ended June 30
	2021 $ 1,762 - $ 1,762	2020

(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.

(i) Material non-controlling interests of subsidiaries

The material non-controlling interests of subsidiaries were as follows:

Name of joint ventures	The main operating place / register country	Proportion of Non-controlling interests	Proportion of Non-controlling interests
		June 30, 2021	December 31, 2020 June 30, 2020 % 34.56 % 34.56 % 45.00 % 45.00
Shen Hua Chemical Industries Co., Ltd. TSRC-UBE(Nantong) Industries Ltd.	China China	% 34.56 % 45.00

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following information of the aforementioned subsidiaries have been prepared in accordance with the IFRSs endorsed by the FSC. Included in this information are the fair value adjustment made during the acquisition and the relevant difference in accounting principles between the Group and its subsidiaries as at the acquisition date. Intra-group transactions were not eliminated in this information.

(i) Summary of financial information of Shen Hua Chemical Industries Co., Ltd.

				December 31,	December 31,	December 31,
		June 30, 2021			2020		June 30, 2020
Current assets	$	3,292,287			2,569,212			2,637,800
Non-current assets		919,402				904,877		839,239
Current liabilities		(634,287)				(582,827)		(601,514)
Non-current liabilities		(22,706)				(17,878)		(16,412)
Net assets	$	3,554,696			2,873,384			2,859,113
Non-controlling interests	$	1,228,503				993,042		988,109
		For the three	months			For the six		months
		ended June 30				ended June 30
		2021	2020			2021		2020
Revenue	$	2,198,587	1,615,307			4,462,972		3,152,566
Net income	$	338,126	192,367			735,731		263,686
Other comprehensive income (loss)		(26,123)	(40,527) (54,421)					(83,409)
Total comprehensive income (loss)	$	312,003	151,840			681,310		180,277
Total net income attributable to
non-controlling interests	$	116,855		66,482		254,268		91,130
Total comprehensive income
attributable to non-controlling
interests	$	107,827		51,661		235,460		62,304
			For the			six months	ended June 30
					2021			2020
Net Cash flow from operating activities			$			384,570		886,027
Net Cash used in investing activities						(73,409)		(16,114)
Increase in cash and cash equivalents			$			311,161		869,913

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Summary of financial information of TSRC-UBE(Nantong) Industries Ltd.

			December 31,	December 31,	December 31,	December 31,
		June 30, 2021			2020		June 30, 2020
Current assets	$	1,207,317			1,051,480			761,684
Non-current assets		869,037				922,652		941,678
Current liabilities		(255,107)				(355,169)		(262,435)
Non-current liabilities		(5,000)				(4,524)		(5,825)
Net assets	$	1,816,247			1,614,439			1,435,102
Non-controlling interests	$	817,311				726,497		645,796
		For the three months				For the six		months
		ended June 30				ended June 30
		2021	2020			2021		2020
Revenue	$	830,512	560,187			1,619,130		1,095,565
Net income	$	115,406		7,542		230,403		31,129
Other comprehensive income (loss)		(13,642)	(21,696) (28,593)					(43,196)
Total comprehensive income (loss)	$	101,764	(14,154) 201,810					(12,067)
Total net income attributable to
non-controlling interests	$	51,934		3,394		103,682		14,008
Total comprehensive income
attributable to non-controlling
interests	$	45,794		(6,282) 90,815				(5,430)
			For the			six months	ended June 30
					2021			2020
Net Cash flow from operating activities			$			190,755		192,280
Net Cash used in investing activities						(26,611)		(10,113)
Net Cash flow from (used in) financing		activities				23,314		(242,271)
Increase (decrease) in cash and cash	equivalents		$			187,458		(60,104)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) 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 June 30, 2021 Balance at January 1, 2020 Additions Disposals Reclassification Effect on changes in exchange rates Balance at June 30, 2020 Depreciation and impairment loss: Balance at January 1, 2021 Depreciation Disposal Reclassification Effect on changes in exchange rates Balance at June 30, 2021 Balance at January 1, 2020 Depreciation Disposal Effect on changes in exchange rates Balance at June 30, 2020 Carrying value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Land $ 841,829 - (201,665) - - (455) $ 639,709 $ 614,101 140,061 - 67,307 - $ 821,469 $ - - - - - $ - $ - - - - $ - $ 841,829 $ 639,709 $ 614,101 $ 821,469	Land improvements 142,168 - - - - (1,278) 140,890 143,699 - - 1,375 (886) 144,188 94,229 2,712 - - (553) 96,388 90,293 2,591 - (351) 92,533 47,939 44,502 53,406 51,655	Buildings 4,672,369 - - (881) 236,988 (59,828) 4,848,648 4,051,022 - (107) 19,720 (81,001) 3,989,634 2,464,473 78,945 (242) - (26,014) 2,517,162 2,314,620 66,898 (83) (41,696) 2,339,739 2,207,896 2,331,486 1,736,402 1,649,895	Machinery 21,983,009 1,466 - (65,971) 777,337 (236,983) 22,458,858 20,332,811 708 (163,518) 292,097 (274,866) 20,187,232 15,857,095 412,211 (63,856) (19) (154,746) 16,050,685 15,614,341 363,959 (147,934) (188,052) 15,642,314 6,125,914 6,408,173 4,718,470 4,544,918	Furniture and fixtures and other equipment 247,058 11 - (1,882) 7,478 (2,706) 249,959 244,989 - (2,245) 12,241 (3,341) 251,644 182,165 8,417 (1,680) - (2,016) 186,886 174,944 8,851 (2,021) (2,365) 179,409 64,893 63,073 70,045 72,235	Construction in progress 1,228,046 400,485 - (67,144) (1,039,252) (10,007) 512,128 2,844,971 453,483 - (337,871) (75,036) 2,885,547 - - - - - - - - - - - 1,228,046 512,128 2,844,971 2,885,547	Total 29,114,479 401,962 (201,665) (135,878) (17,449) (311,257) 28,850,192 28,231,593 594,252 (165,870) 54,869 (435,130) 28,279,714 18,597,962 502,285 (65,778) (19) (183,329) 18,851,121 18,194,198 442,299 (150,038) (232,464) 18,253,995 10,516,517 9,999,071 10,037,395 10,025,719

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

(k) 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 June 30, 2021 Balance at January 1, 2020 Additions Write-off Lease modification Amortization to operating costs and inventories Reclassification to construction in progress Effect on changes in foreign exchange rates Balance at June 30, 2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation Lease modification Effect on changes in exchange rates Balance at June 30, 2021 Balance at January 1, 2020 Depreciation Write-off Lease modification Effect on changes in exchange rates Balance at June 30, 2020 Carrying value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Land $ 569,782 - - - (9,805) $ 559,977 $ 663,708 - - - - (94,596) (15,203) $ 553,909 $ 145,489 6,873 - (2,469) $ 149,893 $ 130,190 6,912 - - (3,871) $ 133,231 $ 424,293 $ 410,084 $ 533,518 $ 420,678	Building 255,467 12,927 (1,780) (3,029) (4,585) 259,000 383,925 23,385 (2,772) (6,589) (3,425) - (6,481) 388,043 111,766 30,939 (1,803) (2,266) 138,636 68,316 37,349 (2,772) (335) (2,192) 100,366 143,701 120,364 315,609 287,677	Machinery 457,714 28,744 - (38,365) (7,052) 441,041 471,843 55,961 - - (37,538) - (12,506) 477,760 17,224 - - (385) 16,839 14,551 7,261 - - (309) 21,503 440,490 424,202 457,292 456,257	Transportation equipment 32,827 4,245 (1,047) - (671) 35,354 34,216 - - (2,507) - - (559) 31,150 18,339 5,572 (1,047) (408) 22,456 9,064 4,848 - (510) (186) 13,216 14,488 12,898 25,152 17,934	Total 1,315,790 45,916 (2,827) (41,394) (22,113) 1,295,372 1,553,692 79,346 (2,772) (9,096) (40,963) (94,596) (34,749) 1,450,862 292,818 43,384 (2,850) (5,528) 327,824 222,121 56,370 (2,772) (845) (6,558) 268,316 1,022,972 967,548 1,331,571 1,182,546

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

(l) Investment property

Carrying value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Owned property
	Buildings
	$ 1,566,873 $ 1,559,510 $ 1,581,599 $ 1,574,236

(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 six months ended June 30, 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.

(m) Intangible assets

Carrying value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Industrial technology and know- how $ 392,856 $ 371,891 $ 503,264 $ 496,214	Computer software 14,913 21,994 12,087 11,121	Goodwill - - 206,793 203,730	Patent and trademark 212,729 197,222 392,308 374,855	Customer relationship 391,907 359,916 555,433 517,627	Total 1,012,405
						951,023
						1,669,885
						1,603,547

There were no significant additions to, disposals of, or provision (reversal) of impairment of, the Group's intangible assets for the six months ended June 30, 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.

(n) 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

	June 30, 2021	June 30, 2021
Range of interest rates (%)	Year of maturity		The unused credit facilities
0.35~3.85			15,862,475

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 $ 4,272,257	The unused credit facilities
0.40~4.57	2020~2021		17,948,324

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term borrowings

1) Long-term bank borrowings

June 30, 2021	June 30, 2021	June 30, 2021
Range of interest rates (%)

Range of interest rates (%)	Year of maturity Amount 2021~2023 $ 647,354 2020~2025 4,006,363 $ 4,653,717 $ 848,878 3,804,839 $ 4,653,717	Amount
1.92~4.38 0.45~5.08

For the six months ended June 30, 2021 and 2020, the Group repaid the amounts of $1,159,103 thousand and $500,855 thousand, respectively, for its long-term borrowings, wherein the proceeds amounting to $1,176,972 thousand and $220,651 thousand bore the interest rates of 0.95%~1.65% and 0.45%~1.93%, as well as maturities ranging from March 2024 to November 2025 and May 2022 to June 2025, 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	June 30, 2021 $ 350,000 595 $ 349,405 1.2407%	December 31, 2020 350,000 659 349,341 1.2060%	June 30, 2020
			350,000 193
			349,807
			1.1837%

(o) Lease liabilities

The Group's lease liabilities were as follow:

Current Non-current	June 30, 2021 $ 149,248 $ 424,528	December 31, 2020 139,263 492,827	June 30, 2020
			165,255
			637,245

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

The amounts recognized in profit or loss were as follows:

For the three months ended June 30 2021 2020 $ 1,241 2,099 $ 4,243 583 $ 5,675 7,388	For the six months ended June 30	For the six months ended June 30
2021 $ 1,241 $ 4,243 $ 5,675	2021 2,039 8,274 9,418	2020
		4,256
		1,165
		11,684

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

Total cash outflow for leases	For the six months ended June 30	For the six months ended June 30
	2021 $ 119,296	2020
		105,268

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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:

For the three months ended June 30 2021 2020 $ 864 997 548 686 $ 1,412 1,683	For the six months ended June 30	For the six months ended June 30
2021 $ 864 548 $ 1,412	2021 1,710 1,115 2,825	2020
		2,006 1,359
		3,365

(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:

For the three months ended June 30 2021 2020 $ 16,300 7,104 7,448 5,915 $ 23,748 13,019	For the six months ended June 30	For the six months ended June 30
2021 $ 16,300 7,448 $ 23,748	2021 31,461 14,210 45,671	2020
		16,509 13,295
		29,804

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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 June 30 2021 2020 $ 334,753 127,951 (738) 2,979 334,015 130,930 (892) (19,621) $ 333,123 111,309	For the six months ended June 30 2021 2020 594,940 206,624 (738) 4,508 594,202 211,132 138,194 (26,049) 732,396 185,083
	2021 $ 334,753 (738) 334,015 (892) $ 333,123	2021 594,940 (738) 594,202 138,194 732,396

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 six months ended June 30, 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.

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.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 June 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 (291,276) Exchange differences on translation financial statements from investments accounted for using equity method 10,311 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 June 30, 2021 $ (479,090) Balance as of January 1, 2020 $ 23,383 Foreign exchange differences arising from foreign operations (331,717) Exchange differences on translation financial statements from investments accounted for using equity method (33,717) 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 June 30, 2020 $ (342,051)	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) - - - - 577,411 - - 12,103 1,136,313 (69,016) 711,094 (80,526) - - - - 254,802 - (84,323) - - (12,842) 881,573 (93,368)		2019 412,855 Total 279,658 (291,276) 10,311 577,411 12,103 588,207 653,951 (331,717) (33,717) 254,802 (84,323) (12,842) 446,154

(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 (losses) per share and diluted earnings (losses) per share was as follows:

(i) Basic earnings (losses) per share

Net income (loss) attributable to common shareholders of the Company Weighted-average number of common shares (in thousands) Basic earnings (losses) per share (NTD) Diluted earnings (losses) per share Net income (loss) 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 (losses) per share (NTD)	For the three months ended June 30 2021 2020 $ 1,001,927 (117,554) 825,710 825,710 $ 1.21 (0.14) For the three months ended June 30 2021 2020 $ 1,001,927 (117,554) 825,710 825,710 1,714 - 827,424 825,710 $ 1.21 (0.14)	For the six months ended June 30 2021 2020 1,898,897 (58,214) 825,710 825,710 2.30 (0.07) For the six months ended June 30 2021 2020 1,898,897 (58,214) 825,710 825,710 2,253 - 827,963 825,710 2.29 (0.07)
		2021 1,898,897 825,710 2,253 827,963 2.29

(ii) Diluted earnings (losses) per share
(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.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months and six months ended June 30, 2021 and 2020, the Company recognized the employees' compensation of $39,241 thousand, $(9,000) thousand, $61,619 thousand and $0 thousand, respectively, and the directors' remuneration of $6,578 thousand, $(304) thousand, $11,294 thousand and $0 thousand, respectively. The amounts were estimated based on the profitsharing 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.

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 June 30, 2021	months ended June 30, 2021
Synthetic rubber $ 5,950,938 1,220,417 802,860 199,933 $ 8,174,148 8,121,586 - 52,562 $ 8,174,148	Non-synthetic rubber 339,927 6,640 - - 346,567 - 346,304 263 346,567	Total
		6,290,865 1,227,057 802,860 199,933
		8,520,715
		8,121,586 346,304 52,825
		8,520,715

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three	months ended June 30, 2020	months ended June 30, 2020
Synthetic rubber Non-synthetic rubber Total $ 3,860,426 162,846 4,023,272 860,196 3,514 863,710 560,329 - 560,329 88,028 - 88,028 $ 5,368,979 166,360 5,535,339 5,213,837 - 5,213,837 - 163,131 163,131 155,142 3,229 158,371 $ 5,368,979 166,360 5,535,339 For the six months ended June 30, 2021		Total
		4,023,272 863,710 560,329 88,028
		5,535,339
		5,213,837 163,131 158,371
		5,535,339
Synthetic rubber $ 11,825,804 2,223,309 1,631,347 417,974 $ 16,098,434 15,987,727 - 110,707 $ 16,098,434	Non-synthetic rubber 627,917 11,175 - - 639,092 - 638,624 468 639,092	Total
		12,453,721 2,234,484 1,631,347 417,974
		16,737,526
		15,987,727 638,624 111,175
		16,737,526

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
Synthetic rubber $ 8,190,751 1,867,249 1,305,314 286,741 $ 11,650,055 11,322,031 - 328,024 $ 11,650,055	Non-synthetic rubber 373,836 5,294 - - 379,130 - 370,877 8,253 379,130	Total
		8,564,587 1,872,543 1,305,314 286,741
		12,029,185
		11,322,031 370,877 336,277
		12,029,185

(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 June 30 2021 2020 $ 19,390 16,179 31,161 12,890 2,137 4,530 (3,681) (3,681) 6,216 10,293 $ 55,223 40,211	For the six months ended June 30 2021 2020 38,497 32,064 58,466 36,660 5,788 6,672 (7,362) (7,363) 15,180 14,416 110,569 82,449
	2021 $ 19,390 31,161 2,137 (3,681) 6,216 $ 55,223	2021 38,497 58,466 5,788 (7,362) 15,180 110,569

(w) Non-operating income and expenses
(i) Interest income

Interest income from bank deposits Other gains Dividend income	For the three months ended June 30 2021 2020 $ 9,770 13,743 For the three months ended June 30 2021 2020 $ 28,285 28,285	For the six months ended June 30	For the six months ended June 30
		2021 2020 15,888 29,897 For the six months ended June 30	2020
			29,897
		2021 28,285	2020
			28,285

(ii) Other gains

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Other gains and losses

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 June 30 2021 2020 $ (68,179) (7,152) 12,866 6,227 (8,053) (2,073) (125) 4,517 $ (63,491) 1,519 For the three months ended June 30 2021 2020 $ 28,986 32,310	For the six months ended June 30 2021 2020 (69,368) (15,566) (30,133) 13,084 25,982 5,484 6,176 5,166 (67,343) 8,168 For the six months ended June 30 2021 2020 58,358 72,611
		2021 58,358

(iv) Finance costs
(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 June 30, 2021 Non-derivative financial liabilities Short-term borrowings $ 3,852,292 Accounts payable (including related parties) 1,397,764 Dividend payable 304,676 Other payables 1,370,024 Long-term borrowings (including other long- term borrowings and current portion) 4,890,578 Lease liabilities 621,211 Deposits received 51,908 Derivative financial liabilities Other swap contracts: Outflow 2,735 $ 12,491,188	Within 6 months 3,457,936 1,397,764 304,676 1,370,024 1,168,635 82,908 - 2,735 7,784,678	6-12 months 394,356 - - - 1,203,184 70,571 - - 1,668,111	1-2 years - - - - 1,127,042 113,864 36,805 - 1,277,711	2-5 years - - - - 1,391,717 182,157 11,983 - 1,585,857	Over 5 years
					- - - - - 171,711 3,120 -
					174,831

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Contractual cash flows 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 June 30, 2020 Non-derivative financial liabilities Short-term borrowings $ 4,283,863 Accounts payable (including related parties) 1,185,397 Dividend payable 422,222 Other payables 943,153 Long-term borrowings (including other long- term borrowings and current portion) 5,155,596 Lease liabilities 898,288 Deposits received 61,754 Derivative financial liabilities Other swap contracts/other forward contracts: Outflow 37 $ 12,950,310	Within 6 months 3,675,788 1,643,264 1,204,135 1,239,315 71,505 - 32,628 7,866,635 4,113,987 1,185,397 422,222 943,153 458,563 88,168 - 37 7,211,527	6-12 months 119,654 - - 1,593,226 71,505 - - 1,784,385 169,876 - - - 497,196 88,167 - - 755,239	1-2 years - - - 1,084,767 120,293 46,461 - 1,251,521 - - - - 2,810,196 135,141 61,754 - 3,007,091	2-5 years - - - 993,488 191,367 12,536 - 1,197,391 - - - - 1,389,641 245,828 - - 1,635,469	Over 5 years
					- - - - 198,736 3,121 -
					201,857
					- - - - - 340,984 - -
					340,984

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:

June 30, 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) $ 99,690 $ 12,290 $ 165,137 $ 29,125 $ 103,471 $ 9,286 $ 117,091 $ 76,191 $ 8,197 $ 36,134 $ 22,490 $ 84,000 $ 6,212 $ 27,409	Exchange rate NTD 27.8700 2,778,360 33.1681 407,636 0.2521 41,631 4.3105 125,543 27.8700 2,883,737 33.1681 307,999 0.2521 29,519 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

June 30, 2020 Financial assets: Monetary assets: USD EUR JPY CNY Financial liabilities: Monetary liabilities: USD EUR JPY	Foreign currency (thousand dollars) $ 48,396 $ 12,792 $ 75,899 $ 9,341 $ 48,505 $ 10,902 $ 65,308	Exchange rate NTD 29.6600 1,435,425 33.2874 425,812 0.2753 20,895 4.1956 39,191 29.6600 1,438,658 33.2874 362,899 0.2753 17,979

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 $1,319 thousand and $1,018 thousand for the six months ended June 30, 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 six months ended June 30, 2021 and 2020, foreign exchange gain (loss) (including Derivative financial instruments for non-hedging profit and loss) amounting to $(4,151) thousand and $18,568 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 $43,232 thousand and $46,379 thousand for the six months ended June 30, 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.

	June 30, 2021	June 30, 2021	June 30, 2021
Carrying amount $ 7,787 846,716 680,546 1,527,262 $ 1,535,049 $ 2,735		Fair value
	Level 1 Level 2 Level 3 - 7,787 - 846,716 - - - - 680,546 846,716 - 680,546 846,716 7,787 680,546 - 2,735 - December 31, 2020			Total
				7,787
				846,716 680,546
				1,527,262
				1,535,049
				2,735

		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

	June 30, 2020	June 30, 2020	June 30, 2020
Carrying amount $ 1,163 1,277,516 $ 1,278,679 $ 37		Fair value
	Level 1 - - - -	Level 2 1,163 - 1,163 37	Level 3 - 1,277,516 1,277,516 -	Total
				1,163
				1,277,516
				1,278,679
				37

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 Transfer into level 1 Balance at June 30, 2021 Balance at January 1, 2020 Total gains: Recognized in other comprehensive income Balance at June 30, 2020	Unquoted equity instruments $ 952,645 311,491 (583,590) $ 680,546 $ 1,022,688 254,828 $ 1,277,516

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Since Evergreen Steel Corporation was listed in April 2021, its fair value measurement was transeferred from the level 3 to level 1.

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs

Financial assets at Comparative fair value through listed company other comprehensive income-equity investments without an active market

‧ Multipliers of priceto-earnings ratios as of June 30, 2021, December 31, 2020 and June 30, 2020 was all 18.62~21.75, 15.62~17.80 and 17.77~27.50, respectively
‧ Multipliers of pricebook ratios as of December 31, 2020 and June 30, 2020 were 1.38 and 1.08, respectively
‧ Market liquidity discount rate as of 20%

Inter-relationship between significant unobservable inputs and fair value measurement

‧ 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:

June 30, 2021 Financial assets fair value through other comprehensive income Equity investments without an active market December 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% $ 8,539 (8,539) 1% $ 11,912 (11,912)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2020 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% $ 15,967 (15,967)	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 six months ended June 30, 2021 and 2020.

(ab) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities arising from financing activities for the six months ended June 30, 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 17,869 - 107,935 (99,565) 26,239	N Foreign exchange movement (21,546) - (60,442) (6,758) (88,746)	on-cash changes	Others - - - 45,970 45,970	June 30, 2021 4,460,187 349,405 3,836,769 573,776
				Amortization of commercial paper discount - 64 - 2,039 2,103
						9,220,137

(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 (280,204) - (410,104) (88,163) (778,471)	N Foreign exchange movement (26,019) - (46,787) (17,125) (89,931)	on-cash changes	Others - - - 41,901 41,901	June 30, 2020 4,653,717 349,807 4,272,257 802,500
				Amortization of commercial paper discount - 520 - 4,256 4,776
						10,078,281

(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 June 30 2021 2020 $ 6,247 10	For the six months ended June 30	For the six months ended June 30
	2021 $ 6,247	2021 6,247	2020
			5,779

(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 June 30 2021 2020 $ 79,866 25,044	For the six months ended June 30	For the six months ended June 30
	2021 $ 79,866	2021 122,451	2020
			89,822

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 joint ventures Other related parties Others related parties	For the three months ended June 30 2021 2020 $ 36,825 40,610 14,966 5,997 1,537 702 (4,324) (3,953) $ 49,004 43,356	For the six months ended June 30 2021 2020 73,674 69,459 32,557 17,849 2,519 1,402 (8,193) (7,788) 100,557 80,922
	2021 $ 36,825 14,966 1,537 (4,324) $ 49,004	2021 73,674 32,557 2,519 (8,193) 100,557

－ (iv) Lease Rent income

Other related parties	For the three months ended June 30 2021 2020 $ 1,117 1,121	For the six months ended June 30	For the six months ended June 30
	2021 $ 1,117	2021 2,236	2020
			2,242

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 Accounts receivables Other receivables Other receivables	Type of related parties Associates Associates ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited Others	June 30, 2021 $ - 15,975 20,790 590 $ 37,355	December 31, 2020 June 30, 2020 - 56 22,154 17,627 17,183 19,722 235 227 39,572 37,632

(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	June 30, 2021 $ 50,898 1,380 $ 52,278	December 31, 2020 - 1,226 1,226	June 30, 2020
				24,971 840
				25,811

(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	June 30, 2021 $ 759,441 928,071 $ 1,687,512	December 31, 2020 1,577,416 949,316 2,526,732	June 30, 2020
			751,741 2,398,011
			3,149,752

(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	June 30, 2021 $ 1,285 28,233 $ 29,518	December 31, 2020 733 31,086 31,819	June 30, 2020
			2,602 34,897
			37,499

The compensation of the key management personnel comprised the following:

For the three months ended June 30 2021 2020 $ 30,503 29,136 320 261 $ 30,823 29,397	For the six months ended June 30	For the six months ended June 30
2021 $ 30,503 320 $ 30,823	2021 60,133 661 60,794	2020
		58,531 569
		59,100

(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	June 30, 2021 $ 1,150 173,279 $ 174,429	December 31, 2020 1,173 269,284 270,457	June 30, 2020
				1,214 288,503
				289,717

(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	June 30, 2021 $ 649,463	December 31, 2020 1,284,162	June 30, 2020 866,678

(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	June 30, 2021 $ 488,155 $ 307,761	December 31, 2020 2,851,593 2,342,971	June 30, 2020 2,204,617 1,778,031

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events

The Group disposed of the non-current assets held for sale in July, 2021. Please refer to note 6(g) for further explanation.

(12) Other

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

By function By nature	Three months ended June 30, 2021	Three months ended June 30, 2021	Three months ended June 30, 2021	Three months ended June 30, 2020	Three months ended June 30, 2020	Three months ended June 30, 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits
Salary	248,016	174,698	422,714	251,910	172,768	424,678
Labor and health insurance	22,400	14,662	37,062	18,984	12,860	31,844
Pension	17,164	7,996	25,160	8,101	6,601	14,702
Others (note 1)	54,627	43,124	97,751	27,398	6,039	33,437
Depreciation (note 2)	235,100	32,889	267,989	202,426	45,552	247,978
Amortization	1,642	28,995	30,637	2,206	34,174	36,380

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

By function By nature	Six months ended June 30, 2021	Six months ended June 30, 2021	Six months ended June 30, 2021	Six months ended June 30, 2020	Six months ended June 30, 2020	Six months ended June 30, 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits
Salary	495,159	358,147	853,306	420,335	331,189	751,524
Labor and health insurance	46,102	30,016	76,118	39,981	28,393	68,374
Pension	33,171	15,325	48,496	18,515	14,654	33,169
Others (note 1)	101,250	69,123	170,373	66,626	23,770	90,396
Depreciation (note 2)	466,250	79,419	545,669	404,889	93,780	498,669
Amortization	3,057	57,981	61,038	3,827	71,181	75,008

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, $3,681 thousand, $7,362 thousand and $7,363 thousand for the three months and six months ended June 30, 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 six months ended June 30, 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	228,457	228,457	3.698%	2	-	Operating capital	-		-	295,155	590,310
2	Polybus Corporation Pte Ltd	TSRC	Account receivable- related parties	Yes	684,744	668,880	83,610	0.288%	2	-	Operating capital	-		-	4,305,239	8,610,478
3	TSRC (Hong Kong) Limited	TSRC	Account receivable- related parties	Yes	171,186	167,220	55,740	0.284%	2	-	Operating capital	-		-	1,765,242	3,530,484
4	TSRC Specialty Materials LLC	TSRC (USA) Investment Corporation	Account receivable- related parties	Yes	427,965	418,050	167,220	0.12%~0.13%	2	-	Operating capital	-		-	1,105,060	2,210,120

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	418,050	178,368	-	% 2.60	(Note 3)	Y
0	TSRC	ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd.	6	(Note 2)	1,561,828	759,441	52,244	-	% 4.73	(Note 3)			Y
0	TSRC	Indian Synthetic Rubber Private Limited	6	(Note 2)	950,082	928,071	675,848	-	% 5.78	(Note 3)
0	TSRC	TSRC (Vietnam) Co., Ltd.	4	(Note 2)	504,999	493,299	420,837	-	% 3.07	(Note 3)	Y
0	TSRC	TSRC Specialty Materials LLC	4	(Note 2)	285,310	278,700	146,952	-	% 1.74	(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 $9,629,586 thousand.

Note 3: The aggregate amount of guarantee by the Company is limited to 1.5 times its stockholders' equity, amounting to $24,073,965 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 June 30, 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	846,716 135,318 358,540 186,688 1,527,262	2.89 % 5.42 % 3.90 % 7.57 %	846,716 135,318 358,540 186,688
							1,527,262

(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:

Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:
Unit: thousand NTD
Name of company	Type of property	Transaction date	Acquisition date	Book value	Transaction amount	Amount actually receivable	Gain from disposal	Counter- party	Nature of relationship	Purpose of disposal	Price reference	Other terms
TSRC	Kaohiung City, Renwu district's land and property	2021.03.11	1999.07.29	201,665	1,220,000	According to the signing contract of the sale and purchase of real estate	909,118	CHEN TA HSIUNG DEVELOPME NT CO., LTD.	Non-related parties	activates its assets	Appraisal of real estate report	None

(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$300 million or 20% of the capital stock:

Unit: thousand NTD

Name of company	Counter-party	Relationship	Transaction details	Transaction details	Transaction details	Transaction details	Status and reason for deviation from arm's- length transaction	Status and reason for deviation from arm's- length transaction	Account / note receivable (payable)	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 TSRC Specialty Materials LLC TSRC Polybus Corporation Pte Ltd TSRC (Nantong) Industries Ltd. Polybus Corporation Pte Ltd Shen Hua Chemical Industries Co., Ltd. TSRC (Lux.) Corporation S.A R.L TSRC Specialty Materials LLC	TSRC TSRC (Lux.) Corporation S.A R.L TSRC TSRC Specialty Materials LLC TSRC (Nantong) Industries Ltd. Polybus Corporation Pte Ltd Shen Hua Chemical Industries Co., Ltd. Polybus Corporation Pte Ltd TSRC Specialty Materials LLC TSRC (Lux.) Corporation S.A R.L	Parent and subsidiary companies Parent and subsidiary companies Parent and subsidiary companies Parent and subsidiary companies Related parties Related parties Related parties Related parties Related parties Related parties	Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale	111,220 (111,220) 162,645 (162,645) 140,830 (140,830) 155,175 (155,175) 353,546 (353,546)	8.78 % (2.04) % 12.07 % (2.99) % 44.91 % (4.69) % 49.48 % (3.48) % 27.90 % (16.63) %	70 days 70 days 70 days 70 days 40 days 40 days 40 days 40 days 90 days 90 days	- - - - - - - - - -		(7,580) 7,580 (58,118) 58,118 (15,696) 15,696 (14,090) 14,090 (84,880) 84,880	% (2.24) % 0.66 % (17.93) % 5.05 % (45.34) % 2.38 (40.70) 0.97 % (25.07) % 14.94

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of company	Counter-party	Relationship	Transaction details	Transaction details	Transaction details	Transaction details	Status and reason for deviation from arm's- length transaction	Status and reason for deviation from arm's- length transaction	Account / note receivable (payable)	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 (Nantong) Industries Ltd.	TSRC (Nantong) Industries Ltd. TSRC (Lux.) Corporation S.A R.L	Related parties Related parties	Purchase Sale	798,869 (798,869)	63.05 % (26.60) %	70 days 70 days	- -		(250,329) 250,329	% (73.94) % 37.88

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	250,329	9.28	-		71,139	-
TSRC Specialty Materials LLC	TSRC (USA) Investmenr Corporation	Related parties	167,220	-	-		-	-

Note 1: Transactions within the Group were eliminated in the consolidated financial statements. Note 2: Until August 3, 2021.

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

(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	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 (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	1 1 1 1 1 1 1 3 3 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	41,000 37,996 112,220 17,715 162,645 58,118 33,758 19,875 140,830 798,869 250,329	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 〃〃〃	0.24 % 0.23 % 0.67 % 0.11 % 0.97 % 0.18 % 0.20 % 0.12 % 0.84 % 4.77 % 0.78 %

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

==> picture [453 x 356] intentionally omitted <==

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

Existing Transaction details
No. Name of company Name of counter- relationship Percentage of the
party with the Account name Amount Trading terms total consolidated
counter- revenue or total
party assets
1 TSRC (Nantong) TSRC-UBE (Nantong) 3 Other income and 116,234 〃 0.69 %
Industries Ltd. Industries Ltd. expenses
2 TSRC Specialty TSRC (Lux.) 3 Sales revenue 353,546 The transaction is not 2.11 %
Materials LLC Corporation S.A R.L significantly different
from normal transactions,
and the collection terms
were about three months
2 TSRC Specialty TSRC (Lux.) 3 Accounts receivable 84,880 〃 0.26 %
Materials LLC Corporation S.A R.L
3 Shen Hua Chemical Polybus Corporation 3 Sales revenue 155,175 The transaction is not 0.93 %
Industries Co., Ltd. Pte Ltd significantly different
from normal transactions,
and the collection terms
were about two months
3 Shen Hua Chemical TSRC-UBE (Nantong) 3 Sales revenue 24,989 〃 0.15 %
Industries Co., Ltd. Industries Ltd.
3 TSRC (Lux.) TSRC 2 Other income and 24,444 The transaction is not 0.15 %
Corporation S.A R.L expenses significantly different
from normal transactions,
and the collection terms
were about six months
4 TSRC (Shanghai) TSRC (Nantong) 3 Sales revenue 19,544 The transaction is not 0.12 %
Industries Ltd. Industries Ltd. significantly different
from normal transactions,
and the collection terms
were about two months
4 TSRC (Shanghai) TSRC (Nantong) 3 Entrusted loans 228,457 One year based on the 0.71 %
Industries Ltd. Industries Ltd. contract of entrusted loans
0 TSRC TSRC(Hong Kong) 1 Accounts receivable- 55,740 One year base on contract 0.17 %
Limited related parties of loan
0 TSRC Polybus Corporation 1 Accounts receivable- 83,610 〃 0.26 %
Pte Ltd related parties
2 TSRC Specialty TSRC(USA) 3 Accounts receivable- 167,220 〃 0.52 %
Materials LLC Investment Corporation related parties
----- End of picture text -----

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: 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 six months ended June 30, 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
				June 30, 2021	December 31, 2020	Shares	Percentage of ownership	Book value
TSRC TSRC TSRC TSRC	Trimurti Holding Corporation Hardison International Corporation Dymas Corporation TSRC (Vietnam) 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	Investment corporation Investment corporation Investment corporation Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products	1,005,495 109,442 38,376 278,280	1,005,495 109,442 38,376 278,280	86,920,000 3,896,305 1,161,004 -	% 100.00 % 100.00 % 19.48 % 100.00	13,944,535 633,333 133,818 191,158	1,443,835 23,947 31,171 (2,062)	1,443,835 23,947 6,072 (2,062)	Subsidiary Subsidiary Subsidiary (note 2) Subsidiary

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of investee	Address	Scope of business	Original cost	Original cost	Ending balance	Ending balance	Ending balance	Net income (losses) of investee	Investment income (losses)	Remarks
				June 30, 2021	December 31, 2020	Shares	Percentage of ownership	Book value
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	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.	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	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	1,814,365 (USD65,101) 2,894,300 (USD103,850) 821,413 (USD29,473) 2,483,296 (EUR74,870) 2,676,914 (USD96,050) 6,092,856 (USD218,617) 1,394 (USD50) 133,748 (USD4,799) 314,513 (USD11,285)	1,814,365 (USD65,101) 2,169,680 (USD77,850) 821,413 (USD29,473) 2,483,296 (EUR74,870) 2,676,914 (USD96,050) 6,092,856 (USD218,617) 1,394 (USD50) 133,748 (USD4,799) 314,513 (USD11,285)	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 % 50.00 % 100.00 % 100.00 % 100.00 % 100.00 % 80.52 % 37.78	8,610,478 3,530,484 914,067 2,809,363 2,681,904 2,201,120 56,977 574,447 356,595	821,245 202,396 852,670 158,538 64,202 143,718 (1,084) 31,171 82,466	821,245 202,396 426,334 158,538 64,202 143,718 (1,084) 25,099 31,156	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 NTD27.870; EUR1 to NTD33.1681). 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 June 30, 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	1,148,801 (USD41,220)	(2)a.	-	-	-	-	735,731	65.44 %	481,463	2,341,756	4,786,340
Changzhou Asia Pacific Co-generation Co., Ltd.	Power generation and sale of electricity and steam	643,797 (USD23,100)	(2)c.	106,798 (USD3,832)	-	-	106,798 (USD3,832)	119,896	28.34 %	33,978	427,828	358,308
TSRC (Shanghai) Industries Ltd.	Production and sale of compounding materials	153,285 (USD5,500)	(2)b.	109,250 (USD3,920)	-	-	109,250 (USD3,920)	48,397	100.00 %	48,397	628,640	-
Nantong Qix Storage Co., Ltd.	Storehouse for chemicals	83,610 (USD3,000)	(2)d.	41,805 (USD1,500)	-	-	41,805 (USD1,500	(2,074)	50.00 %	(1,037)	56,659	74,060
TSRC-UBE (Nantong) Chemical Industrial Co., Ltd.	Production and sale of synthetic rubber products	1,114,800 (USD40,000)	(2)a.	27,870 (USD1,000)	-	-	27,870 (USD1,000)	230,403	55.00 %	126,721	998,936	-
TSRC (Nantong) Industries Ltd.	Production and sale of TPE	2,929,834 (USD105,125)	(2)a.	185,280 (USD6,648)	-	-	185,280 (USD6,648)	178,778	100.00 %	178,778	4,817,767	440,864
ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	Production and sale of NBR	1,248,576 (USD44,800)	(2)a.	-	-	-	-	140,565	50.00 %	70,283	388,146	-

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 (Hong 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 NTD27.870).

Note 3: The transactions within the Group were eliminated in the consolidated financial statements.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Limitation on investment in Mainland China:

Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD	Unit: thousand NTD/thousand USD
Company name	Accumulated investment amount in Mainland China as of June 30, 2021	Investment (amount) approved by Investment Commission, Ministry of Economic Affairs	Maximum investment amount set by Investment Commission, Ministry of Economic Affairs
TSRC	471,003 (USD16,900)	5,221,026 (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 NTD27.870).
(iii) Significant transactions:

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

(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 June 30, 2021 Revenue: Revenue from external customers Income from operations Three months ended June 30, 2020 Revenue: Revenue from external customers Income from operations Six months ended June 30, 2021 Revenue: Revenue from external customers Income from operations Six months ended June 30, 2020 Revenue: Revenue from external customers Income from operations	Synthetic rubber $ 8,174,148 $ 1,492,323 $ 5,368,979 $ 47,806 $ 16,098,434 $ 2,931,700 $ 11,650,055 $ 235,791	Non-synthetic rubber 346,567 30,287 166,360 (20,704) 639,092 63,532 379,130 (34,022)	Others - (18,771) - 36,529 - (5,989) - 30,238	Total 8,520,715
				1,503,839
				5,535,339
				63,631
				16,737,526
				2,989,243
				12,029,185
				232,007

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_7ee8a3d2-c543-4254-8afc-ac36768d12fa.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 June 30, 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 and six months ended June 30, 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 six months ended June 30, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the six months ended June 30, 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

(c) 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

(d) Notes and accounts receivable

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Investments accounted for under equity method

(i) Associates

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

(ii) Joint ventures

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

(j) Property, plant and equipment

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Right-of-use assets

(l) Investment property

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Intangible assets

(n) 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

(o) Lease liabilities

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Employee benefits

(i) Defined benefit plans

(ii) Defined contribution plans

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC Interim / Quarterly Report 2021