TSRC - Interim / Quarterly Report 2021

Stock Code:2103

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 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 12～46 46～49 49 50 50 50 50～51 52～55 56 56～57 57 58

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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2021 and 2020, as well as the changes in equity and cash flows for the nine 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 $3,494,340 thousand and $3,060,983 thousand, both constituting 11% of the consolidated total assets; and the total liabilities amounting to $722,068 thousand and $670,124 thousand, constituting 6% and 5% of the consolidated total liabilities as of September 30, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $95,302 thousand, $162,868 thousand, $352,200 thousand and $135,502 thousand, constituting 7%, (46)%, 9% and (28)% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 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(g), the other equity accounted investments of the Group in its investee companies of $1,995,869 thousand and $1,044,601 thousand as of September 30, 2021 and 2020, respectively, and its equity in net earnings (loss) on these investee companies of $255,450 thousand, $102,018 thousand, $782,186 thousand and $38,122 thousand for the three months and nine months ended September 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 September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months ended September 30, 2021 and 2020, as well as its consolidated cash flows for the nine 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) November 4, 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 September 30, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31 and September 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 (note 6(d)) 1200 Other receivables (notes 6(e) and 7) 1220 Current income tax assets 130x Inventories (note 6(f)) 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(g) and 7) 1600 Property, plant and equipment (notes 6(i), 8 and 9) 1755 Right-of-use assets (note 6(j)) 1760 Investment property (note 6(k)) 1780 Intangible assets (note 6(l)) 1840 Deferred income tax assets 1900 Other non-current assets (note 8) Total non-current assets Total assets	September 30, 2021 Amount % $ 3,759,755 12 13,783 - 933,168 3 3,377,184 11 68,789 - - - 5,872,938 18 760,075 2 14,785,692 46 1,294,250 4 1,995,869 6 9,971,933 31 933,887 3 1,555,829 5 920,515 3 261,719 1 143,896 1 17,077,898 54 $ 31,863,590 100	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	September 30, 2020 Amount % 4,148,487 15 2,622 - 599,185 2 2,340,491 8 177,605 1 10,503 - 4,137,898 14 667,266 2 12,084,057 42 971,685 3 1,044,601 4 10,307,120 36 1,039,121 4 1,570,555 5 1,058,639 4 275,787 1 219,064 1 16,486,572 58 28,570,629 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(m)) 2322 Current portion of long-term borrowings (notes 6(m) and 8) 2120 Current financial liabilities at fair value through profit or loss (note 6(b)) 2170 Accounts payable 2180 Accounts payable－related parties (note 7) 2230 Current income tax liabilities 2219 Other payables (notes 6(s) and 7) 2280 Current lease liabilities (note 6(n)) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2541 Long-term bank borrowings (notes 6(m) and 8) 2542 Other long-term borrowings (note 6(m)) 2550 Non-current provision liabilities (note 7) 2570 Deferred income tax liabilities 2580 Non-current lease liabilities (note 6(n)) 2600 Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to shareholders of the Company (note 6(q)) : 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 (note 6(h)) Total equity Total liabilities and equity	September 30, 2021 Amount % $ 3,959,453 12 1,383,828 4 8 - 1,346,567 4 32,328 - 294,225 2 1,375,300 4 143,819 1 185,774 2 8,721,302 29 2,038,303 6 349,834 1 27,412 - 964,088 3 397,669 1 130,486 - 3,907,792 11 12,629,094 40 8,257,099 26 49,531 - 4,073,680 13 4,522,324 14 8,596,004 27 (491,505) (2) 901,733 3 (37,906) - 372,322 1 17,274,956 54 1,959,540 6 19,234,496 60 $ 31,863,590 100	December 31, 2020 Amount % 3,789,276 13 2,784,129 10 32,628 - 1,643,264 6 - - 172,787 1 1,204,135 4 139,263 - 128,285 - 9,893,767 34 1,679,735 5 349,341 1 31,819 - 807,700 3 492,827 2 154,534 1 3,515,956 12 13,409,723 46 8,257,099 28 49,531 - 4,068,862 14 1,483,970 5 5,552,832 19 (198,125) (1) 558,902 2 (81,119) - 279,658 1 14,139,120 48 1,719,539 6 15,858,659 54 29,268,382 100	September 30, 2020 Amount % 4,248,900 15 1,130,577 4 10,010 - 916,161 3 - - 198,384 - 1,031,299 4 157,036 1 213,948 1 7,906,315 28 3,433,787 12 349,910 1 44,189 - 769,086 3 495,122 2 131,369 - 5,223,463 18 13,129,778 46 8,257,099 29 47,140 - 4,068,862 14 1,230,626 4 5,299,488 18 (281,122) (1) 576,762 2 (82,215) - 213,425 1 13,817,152 48 1,623,699 6 15,440,851 54 28,570,629 100

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 nine months ended September 30, 2021 and 2020

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

4000 Revenue (notes 6(t) and 7) 5000 Operating costs (notes 6(f), 6(i), 6(j), 6(l), 6(n), 6(o), 6(s) and 7) 5910 Gross profit 6000 Operating expenses (notes 6(d), 6(i), 6(j), 6(n), 6(o) 6(s) 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(u) and 7) 6900 Operating profit Non-operating income and expenses (notes 6(g), 6(i), 6(l), 6(n), 6(v) 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 (loss) before tax 7950 Less: tax expenses (note 6(p)) 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(r)) 9810 Diluted earnings (losses) per share (in New Taiwan dollars) (note 6(r))	For the three months	ended September 30	For the nine months e	nded September 30 2020 Amount % 17,636,545 100 15,496,814 88 2,139,731 12 681,714 4 773,413 4 265,767 2 1,419 - 1,722,313 10 122,428 1 539,846 3 39,073 - 62,339 - (492,830) (3) (95,911) - 38,122 - (449,207) (3) 90,639 - 197,506 1 (106,867) (1) (50,009) - - - (50,009) - (328,156) (2) 3,935 - - - (324,221) (2) (374,230) (2) (481,097) (3) (289,482) (2) 182,615 1 (106,867) (1) (645,685) (4) 164,588 1 (481,097) (3) (0.35)
	2021 Amount % $ 7,672,862 100 6,548,201 85 1,124,661 15 414,288 5 270,223 4 99,891 1 (4) - 784,398 10 83,122 1 423,385 6 6,140 - 37,987 - 1,001,660 13 (27,172) - 255,450 3 1,274,065 16 1,697,450 22 202,390 3 1,495,060 19 (234,580) (3) - - (234,580) (3) 4,451 - 15,101 - - - 19,552 - (215,028) (3) $ 1,280,032 16 $ 1,441,531 19 53,529 - $ 1,495,060 19 $ 1,225,646 16 54,386 - $ 1,280,032 16 $ 1.75 $ 1.74	2020 Amount % 5,607,360 100 4,843,241 86 764,119 14 235,656 4 244,722 4 86,050 2 (12) - 566,416 10 39,979 - 237,682 4 9,176 - 34,054 - (500,998) (9) (23,300) - 102,018 2 (379,050) (7) (141,368) (3) 12,423 - (153,791) (3) (304,811) (5) - - (304,811) (5) 51,825 1 50,494 1 - - 102,319 2 (202,492) (3) (356,283) (6) (231,268) (4) 77,477 1 (153,791) (3) (463,997) (8) 107,714 2 (356,283) (6) (0.28) (0.28)	2021 Amount % 24,410,388 100 19,302,064 79 5,108,324 21 1,263,213 5 791,385 3 279,693 2 304 - 2,334,595 10 193,691 1 2,967,420 12 22,028 - 66,272 - 934,317 4 (85,530) - 782,186 3 1,719,273 7 4,686,693 19 934,786 4 3,751,907 15 342,831 1 - - 342,831 1 (318,500) (1) 37,515 - - - (280,985) (1) 61,846 - 3,813,753 15 3,340,428 13 411,479 2 3,751,907 15 3,433,092 13 380,661 2 3,813,753 15 4.05 4.03
				(0.35)

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 nine months ended September 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 - - - (304,505)	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) (289,482) -	5,917,502 - (412,855) (289,482) -		711,094 - - - (50,009)	(80,526) - - - (1,689)	653,951 - - - (356,203)	14,875,692 - (412,855) (289,482) (356,203)	1,577,031 - (117,920) 182,615 (18,027)	16,452,723 - (530,775) (106,867) (374,230)
-	-	-	(289,482)	(289,482)	(304,505)	(50,009)	(1,689)	(356,203)	(645,685)	164,588	(481,097)
-	-	-	84,323	84,323	-	(84,323)	-	(84,323)	-	-	-
$ 8,257,099	47,140	4,068,862	1,230,626	5,299,488	(281,122)	576,762	(82,215)	213,425	13,817,152	1,623,699	15,440,851
$ 8,257,099 - - - -	49,531 - - - -	4,068,862 4,818 - - -	1,483,970 (4,818) (297,256) 3,340,428 -	5,552,832 - (297,256) 3,340,428 -	(198,125) - - - (293,380)	558,902 - - - 342,831	(81,119) - - - 43,213	279,658 - - - 92,664	14,139,120 - (297,256) 3,340,428 92,664	1,719,539 - (140,660) 411,479 (30,818)	15,858,659 - (437,916) 3,751,907 61,846
-	-	-	3,340,428	3,340,428	(293,380)	342,831	43,213	92,664	3,433,092	380,661	3,813,753
$ 8,257,099	49,531	4,073,680	4,522,324	8,596,004	(491,505)	901,733	(37,906)	372,322	17,274,956	1,959,540	19,234,496

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 nine months ended September 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 profit of associates and joint ventures accounted for under equity method Loss (gain) on disposal of property, plant and equipment Impairment loss on non-financial assets Amortization to operating costs and inventories Gain on lease modification 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 flows from (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 used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the nine months ended September 30 2021 2020 $ 4,686,693 90,639 823,082 749,000 91,565 107,253 304 1,419 85,530 95,911 (22,028) (39,073) (66,272) (62,339) (782,186) (38,122) (926,238) 27,848 - 500,247 61,147 62,037 - (8,860) (735,096) 1,395,321 (10,323) (2,608) (359,296) 267,162 (575,137) 417,707 84,263 (58,144) (1,100,474) 2,276,781 18,143 (173,716) (1,942,824) 2,727,182 (32,620) 4,338 (296,697) (1,476,185) 32,328 (59,418) 159,997 (323,239) 54,836 (5,290) (16,789) (55,929) (7,258) 8,022 (106,203) (1,907,701) (2,049,027) 819,481 (2,784,123) 2,214,802 1,902,570 2,305,441 15,147 34,882 (81,750) (94,283) (618,099) (273,014) 1,217,868 1,973,026 - 135,404 (647,977) (975,540) 1,214,765 386 - (25,448) 36,905 (142,062) 150,119 100,680 73,138 - 826,950 (906,580) 18,276,032 26,889,758 (18,032,063) (27,443,666) 1,194,664 217,986 (2,212,831) (582,209) (147,034) (129,799) (436,834) (530,286) (1,358,066) (1,578,216) (205,460) (35,023) 481,292 (546,793) 3,278,463 4,695,280 $ 3,759,755 4,148,487	For the nine months ended September 30 2021 2020 $ 4,686,693 90,639 823,082 749,000 91,565 107,253 304 1,419 85,530 95,911 (22,028) (39,073) (66,272) (62,339) (782,186) (38,122) (926,238) 27,848 - 500,247 61,147 62,037 - (8,860) (735,096) 1,395,321 (10,323) (2,608) (359,296) 267,162 (575,137) 417,707 84,263 (58,144) (1,100,474) 2,276,781 18,143 (173,716) (1,942,824) 2,727,182 (32,620) 4,338 (296,697) (1,476,185) 32,328 (59,418) 159,997 (323,239) 54,836 (5,290) (16,789) (55,929) (7,258) 8,022 (106,203) (1,907,701) (2,049,027) 819,481 (2,784,123) 2,214,802 1,902,570 2,305,441 15,147 34,882 (81,750) (94,283) (618,099) (273,014) 1,217,868 1,973,026 - 135,404 (647,977) (975,540) 1,214,765 386 - (25,448) 36,905 (142,062) 150,119 100,680 73,138 - 826,950 (906,580) 18,276,032 26,889,758 (18,032,063) (27,443,666) 1,194,664 217,986 (2,212,831) (582,209) (147,034) (129,799) (436,834) (530,286) (1,358,066) (1,578,216) (205,460) (35,023) 481,292 (546,793) 3,278,463 4,695,280 $ 3,759,755 4,148,487	For the nine months ended September 30 2021 2020 $ 4,686,693 90,639 823,082 749,000 91,565 107,253 304 1,419 85,530 95,911 (22,028) (39,073) (66,272) (62,339) (782,186) (38,122) (926,238) 27,848 - 500,247 61,147 62,037 - (8,860) (735,096) 1,395,321 (10,323) (2,608) (359,296) 267,162 (575,137) 417,707 84,263 (58,144) (1,100,474) 2,276,781 18,143 (173,716) (1,942,824) 2,727,182 (32,620) 4,338 (296,697) (1,476,185) 32,328 (59,418) 159,997 (323,239) 54,836 (5,290) (16,789) (55,929) (7,258) 8,022 (106,203) (1,907,701) (2,049,027) 819,481 (2,784,123) 2,214,802 1,902,570 2,305,441 15,147 34,882 (81,750) (94,283) (618,099) (273,014) 1,217,868 1,973,026 - 135,404 (647,977) (975,540) 1,214,765 386 - (25,448) 36,905 (142,062) 150,119 100,680 73,138 - 826,950 (906,580) 18,276,032 26,889,758 (18,032,063) (27,443,666) 1,194,664 217,986 (2,212,831) (582,209) (147,034) (129,799) (436,834) (530,286) (1,358,066) (1,578,216) (205,460) (35,023) 481,292 (546,793) 3,278,463 4,695,280 $ 3,759,755 4,148,487
		2021 $ 4,686,693 823,082 91,565 304 85,530 (22,028) (66,272) (782,186) (926,238) - 61,147 - (735,096) (10,323) (359,296) (575,137) 84,263 (1,100,474) 18,143 (1,942,824) (32,620) (296,697) 32,328 159,997 54,836 (16,789) (7,258) (106,203) (2,049,027) (2,784,123) 1,902,570 15,147 (81,750) (618,099) 1,217,868 - (647,977) 1,214,765 - 36,905 150,119 73,138 826,950 18,276,032 (18,032,063) 1,194,664 (2,212,831) (147,034) (436,834) (1,358,066) (205,460) 481,292 3,278,463 $ 3,759,755

			749,000 107,253 1,419 95,911 (39,073) (62,339) (38,122) 27,848 500,247 62,037 (8,860)
			1,395,321
			(2,608) 267,162 417,707 (58,144) 2,276,781 (173,716)
			2,727,182
			4,338 (1,476,185) (59,418) (323,239) (5,290) (55,929) 8,022
			(1,907,701)
			819,481
			2,214,802
			2,305,441 34,882 (94,283) (273,014)
			1,973,026
			135,404 (975,540) 386 (25,448) (142,062) 100,680 -
			(906,580)
			26,889,758 (27,443,666) 217,986 (582,209) (129,799) (530,286)
			(1,578,216)
			(35,023)
			(546,793) 4,695,280
			4,148,487

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 nine months ended September 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 November 4, 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. 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”

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

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(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 January 1, 2022, would not have a significant impact on its consolidated financial statements:

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
(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 Effective date per Interpretations Content of amendment IASB Amendments to IAS 1 The amendments aim to promote January 1, 2023 “Classification of Liabilities consistency in applying the requirements as Current or Non-current” 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.

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 September 30, 2021 December 31, 2020 September 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 September 30, 2021 December 31, 2020 September 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)
			September 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) 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.

(d) 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	September 30, 2021 December 31, 2020 $ 383 432 1,323,172 961,937 2,436,200 2,316,094 $ 3,759,755 3,278,463 through profit or loss September 30, 2021 December 31, 2020 $ 13,783 3,460 September 30, 2021 December 31, 2020 $ 8 32,628	September 30, 2020
		435 686,156 3,461,896
		4,148,487
		September 30, 2020
		2,622
		September 30, 2020
		10,010

(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 Forward contracts Swap contracts Swap contracts Forward contracts Forward contracts Swap contracts Swap contracts Swap contracts	September 30, 2021	September 30, 2021
	Contract amount (thousand dollars) Currency Maturity dates EUR USD 500 / 588 EUR/USD 2021.10.22 EUR USD 23,350 / 27,600 EUR/USD 2021.10.1~2021.12.30 USD CNH 3,839 / 24,888 USD/CNH 2021.10.8~2021.10.26 December 31, 2020
	Contract amount (thousand dollars) Currency Maturity dates EUR USD 450 / 551 EUR/USD 2021.2.19~2021.2.26 TWD USD 238,846 / 8,500 TWD/USD 2021.1.15~2021.1.22 EUR USD 21,050 / 24,753 EUR/USD 2021.1.6~2021.2.3 September 30, 2020
	Contract amount (thousand dollars) EUR TWD 150 / 5,109 EUR USD 240 / 281 EUR USD 20,900 / 24,254 USD EUR 7,939 / 6,800 JPY USD 2,000 / 19	Currency Maturity dates EUR/TWD 2020.10.13 EUR/USD 2020.10.6 EUR/USD 2020.10.6~2021.1.6 USD/EUR 2020.10.6 JPY/USD 2020.10.13

(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	September 30, 2021 $ 609,830 684,420 $ 1,294,250	December 31, 2020 - 952,645 952,645	September 30, 2020
			- 971,685
			971,685

(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 nine month ended September 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(w).

(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:

September 30, 2021 THB December 31, 2020 THB September 30, 2020 THB	Foreign currency amount (thousand dollars) $ 401,921 205,493 315,291	Exchange rate NTD 0.8284 332,951 0.9556 196,370 0.9242 291,392

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Notes and accounts receivable

Notes receivable Accounts receivable Less: allowance for impairment	September 30, 2021 $ 933,168 3,382,582 5,398 $ 4,310,352	December 31, 2020 571,220 2,807,545 5,194 3,373,571	September 30, 2020
			599,185 2,350,654 10,163
			2,939,676

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:

September 30, 2021	September 30, 2021
Gross carrying amount Weighted- average expected credit loss rate $ 4,244,603 0.09%~0.17% 52,561 2.18%~4.58% 18,586 6.59%~34.6% $ 4,315,750 December 31, 2020		Loss allowance provision
		2,582 1,315 1,501
		5,398

		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%	Loss allowance provision
		7,870 2,244 49
		10,163

(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 nine months ended September 30 2021 2020 $ 5,194 8,935 304 1,419 (100) (191) $ 5,398 10,163
	2021 $ 5,194 304 (100) $ 5,398

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

(e) Other receivables (including related parties)

Other receivables－related parties Other	September 30, 2021 $ 44,652 24,137 $ 68,789	December 31, 2020 39,572 106,599 146,171	September 30, 2020
			36,428 141,177
			177,605

The aformentioned financial assets were not past due or impaired. For other credit risk information, please refers to note 6(w).

(f) Inventories

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

Raw materials Supplies Work in progress Finished goods Merchandise Total	September 30, 2021 $ 1,903,993 8,584 286,617 3,046,666 627,078 $ 5,872,938	December 31, 2020 1,719,583 9,476 297,435 2,258,866 487,104 4,772,464	September 30, 2020
			1,092,762 104,016 266,628 2,190,278 484,214
			4,137,898

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:

For the three months ended September 30 2021 2020 $ 3,898 (14,948) (6,773) (5,610) 123 (20) 142,681 119,034 $ 139,929 98,456	For the nine months ended September 30	For the nine months ended September 30
2021 $ 3,898 (6,773) 123 142,681 $ 139,929	2021 (81,062) (19,541) 123 299,198 198,718	2020
		40,341 (15,032) 3,268 311,180
		339,757

(g) Investments accounted for under equity method

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

Associates Joint ventures	September 30, 2021 $ 774,166 1,221,703 $ 1,995,869	December 31, 2020 732,531 571,256 1,303,787	September 30, 2020
			651,787 392,814
			1,044,601

(i) Associates

For the three months and nine months ended September 30, 2021 and 2020, the Group recognized its share of gain from the associates of $36,017 thousand, $66,112 thousand, $137,456 thousand and $102,913 thousand, respectively.

The details of the significant associates are as follows:

Name of associates	Existing relationship with the Group	The main operating place / register country	Proportion of equity and voting right	Proportion of equity and voting right
			September 30, 2021	December 31, 2020 September 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

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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.

		September 30,		December 31,	September 30,
		2021		2020	2020
Current assets	$	588,522		478,937	435,636
Non-current assets		599,389		668,836	676,123
Current liabilities		(297,872)		(471,579)	(536,987)
Non-current liabilities		(29,584)		(31,085)	(30,675)
Equity	$	860,455		645,109	544,097
Equity attributable to the
Group	$	430,228		322,554	272,048
		For the three months For the nine			months
		ended September 30 ended September 30
		2021	2020 2021		2020
Revenue	$	600,473	398,739 1,589,427		1,076,381
Net income of continued
operations	$	87,357		80,980 227,922	95,075
Other comprehensive income
(loss)		-		- -	-
Total comprehensive income
(loss)	$	87,357		80,980 227,922	95,075
Total comprehensive income
attributable to the Group	$	43,678		40,490 113,961	47,537
				For the nine months	ended
				September 30
				2021	2020
Beginning balance of the equity of the associate
attributable to the Group			$	323,287	231,111
Current total comprehensive income of the
associate attributable to the Group				113,961	47,537
Other				(6,687)	(4,906)
Ending balance of the equity of the associate
attributable to the Group			$	430,561	273,742

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

		September 30,		December 31,	September 30,
		2021		2020	2020
Current assets	$	449,912		625,218	640,018
Non-current assets		938,474		1,011,338	1,010,752
Current liabilities		(456,507)		(529,361)	(625,869)
Non-current liabilities		(8,744)		(10,318)	(10,604)
Equity	$	923,135		1,096,877	1,014,297
Equity attributable to the
Group	$	348,760		414,400	383,201
		For the three months For the nine			months
		ended September 30 ended September 30
		2021	2020 2021		2020
Revenue	$	393,299	365,038 1,104,066		813,308
Net income (loss) of
continued operations	$	(20,276)		67,819 62,190	146,574
Other comprehensive income
(loss)		-		- -	-
Total comprehensive income
(loss)	$	(20,276)		67,819 62,190	146,574
Total comprehensive income
attributable to the Group	$	(7,661)		25,622 23,495	55,376
				For the nine months	ended
				September 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				23,495	55,376
Other				(89,134)	(81,839)
Ending balance of the equity of the associate
attributable to the Group			$	343,605	378,045

(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
			September 30, 2021	December 31, 2020 September 30, 2020 % 50.00 % 50.00
Indian Synthetic Rubber Private Limited	Strategic alliance of production and sales of synthetic rubber products	India	% 50.00

The comprehensive financial information of Indian Synthetic Rubber Private Limited,which is the joint venture material to the Consolidated company, is as follows:

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	September 30, 2021

(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 nine months ended September 30	For the nine months ended September 30
	2021 $ 512,624 679,367 (27,200) $ 1,164,791	2020
		396,539 (63,527) 2,089
		335,101

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)	September 30, 2021 $ 56,912 For the three months ended September 30	September 30, 2021 $ 56,912 For the three months ended September 30
	2021 $ 295 - $ 295	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.

(h) 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
		September 30, 2021	December 31, 2020 September 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.

		September 30,		December 31,	September 30,
		2021		2020	2020
Current assets	$	2,954,164		2,569,212	2,260,465
Non-current assets		922,262		904,877	877,804
Current liabilities		(471,390)		(582,827)	(410,252)
Non-current liabilities		(22,605)		(17,878)	(16,843)
Net assets	$	3,382,431		2,873,384	2,711,174
Non-controlling interests	$	1,168,968		993,042	936,982
		For the three	months For the nine		months
		ended September 30 ended September 30
		2021	2020 2021		2020
Revenue	$	1,823,236	1,274,477 6,286,208		4,427,043
Net income	$	77,630	140,571 813,361		404,257
Other comprehensive income (loss)		2,100		52,703 (52,321)	(30,706)
Total comprehensive income (loss)	$	79,730	193,274 761,040		373,551
Total net income attributable to
non-controlling interests	$	26,830		48,581 281,098	139,711
Total comprehensive income
attributable to non-controlling
interests	$	27,555		66,795 263,015	129,099
				For the nine months	ended
				September 30
				2021	2020
Net Cash flow from operating activities			$	193,582	891,257
Net Cash used in investing activities				(100,893)	(60,478)
Net Cash used in financing activities				(251,789)	(341,193)
Effect on exchange rate changes on cash and cash
equivalents				(7,848)	421
Increase (decrease) in cash and cash	equivalents		$	(166,948)	490,007

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

		September 30,		December 31,	September 30,
		2021		2020	2020
Current assets	$	1,171,513		1,051,480	773,292
Non-current assets		854,837		922,652	937,587
Current liabilities		(264,534)		(355,169)	(178,815)
Non-current liabilities		(4,989)		(4,524)	(6,027)
Net assets	$	1,756,827		1,614,439	1,526,037
Non-controlling interests	$	790,572		726,497	686,717
		For the three months For the nine			months
		ended September 30 ended September 30
		2021	2020 2021		2020
Revenue	$	783,012	520,260 2,402,142		1,615,825
Net income	$	59,333		64,218 289,736	95,347
Other comprehensive income (loss)		291		26,718 (28,302)	(16,478)
Total comprehensive income (loss)	$	59,624		90,936 261,434	78,869
Total net income attributable to
non-controlling interests	$	26,699		28,898 130,381	42,906
Total comprehensive income
attributable to non-controlling
interests	$	26,830		40,921 117,645	35,491
				For the nine months	ended
				September 30
				2021	2020
Net Cash flow from operating activities			$	171,150	330,854
Net Cash used in investing activities				(41,974)	(19,461)
Net Cash used in financing activities				(80,109)	(284,701)
Effect on exchange rate changes on cash and cash
equivalents				1,085	(437)
Increase in cash and cash equivalents			$	50,152	26,255

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

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

Cost: Balance at January 1, 2021 Additions Disposals Reclassification Effect on changes in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Disposals Reclassification Effect on changes in exchange rates Balance at September 30, 2020 Depreciation and impairment loss: Balance at January 1, 2021 Depreciation Disposals Reclassification Effect on changes in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Depreciation Disposals Effect on changes in exchange rates Balance at September 30, 2020 Carrying value: January 1, 2021 September 30, 2021 January 1, 2020 September 30, 2020	Land $ 841,829 - (201,665) - (458) $ 639,706 $ 614,101 140,061 - 67,307 - $ 821,469 $ - - - - - $ - $ - - - - $ - $ 841,829 $ 639,706 $ 614,101 $ 821,469	Land improvements 142,168 - - 953 (1,294) 141,827 143,699 - - 1,549 (1,949) 143,299 94,229 4,116 - - (558) 97,787 90,293 3,920 - (783) 93,430 47,939 44,040 53,406 49,869	Buildings 4,672,369 - (4,860) 236,931 (61,049) 4,843,391 4,051,022 - (6,619) 19,714 (37,520) 4,026,597 2,464,473 119,040 (3,314) - (26,949) 2,553,250 2,314,620 100,355 (3,448) (17,768) 2,393,759 2,207,896 2,290,141 1,736,402 1,632,838	Machinery 21,983,009 4,255 (115,793) 863,933 (240,903) 22,494,501 20,332,811 3,105 (216,155) 387,872 (216,559) 20,291,074 15,857,095 611,310 (97,584) (20) (158,083) 16,212,718 15,614,341 544,015 (191,653) (166,896) 15,799,807 6,125,914 6,281,783 4,718,470 4,491,267	Furniture and fixtures and other equipment 247,058 87 (2,379) 10,692 (2,810) 252,648 244,989 - (5,410) 12,889 (2,943) 249,525 182,165 13,045 (2,160) - (2,099) 190,951 174,944 13,183 (4,849) (2,241) 181,037 64,893 61,697 70,045 68,488	Construction in progress 1,228,046 653,480 (66,888) (1,146,745) (13,327) 654,566 2,844,971 879,536 - (438,381) (42,937) 3,243,189 - - - - - - - - - - - 1,228,046 654,566 2,844,971 3,243,189	Total 29,114,479 657,822 (391,585) (34,236) (319,841) 29,026,639 28,231,593 1,022,702 (228,184) 50,950 (301,908) 28,775,153 18,597,962 747,511 (103,058) (20) (187,689) 19,054,706 18,194,198 661,473 (199,950) (187,688) 18,468,033 10,516,517 9,971,933 10,037,395 10,307,120

To optimize the Group’s asset, the Group disposed its real estate located in Kaohsiung City, Renwu Dist. to a non-related party for $1,220,000 thousands, with a book value of $201,665 thousand based on the resolution approved during the board meeting held on March 11, 2021. All relevant transactions amounting to $909,118 thousands, recognized as gain, had been completed in July 2021.

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

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Right-of-use assets

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

Cost: Balance at January 1, 2021 Additions Lease modification Reclassify to construction in progress Amortization to operating costs and inventories Effect on changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Lease modification Amortization to operating costs and inventories Reclassification to construction in progress Effect on changes in foreign exchange rates Balance at September 30, 2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation Lease modification Effect on changes in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Depreciation Lease modification Effect on changes in exchange rates Balance at September 30, 2020 Carrying value: January 1, 2021 September 30, 2021 January 1, 2020 September 30, 2020	Land $ 569,782 - - - - (10,107) $ 559,675 $ 663,708 - - - (94,596) (8,743) $ 560,369 $ 145,489 10,272 - (2,559) $ 153,202 $ 130,190 10,343 - (1,655) $ 138,878 $ 424,293 $ 406,473 $ 533,518 $ 421,491	Building 255,467 12,979 (1,757) (63) (3,742) (5,060) 257,824 383,925 20,970 (143,115) (5,137) - (5,264) 251,379 111,766 46,215 (1,781) (2,574) 153,626 68,316 54,664 (21,692) (1,411) 99,877 143,701 104,198 315,609 151,502	Machinery 457,714 28,744 (16,972) - (57,405) (7,166) 404,915 471,843 56,885 - (56,900) - (5,330) 466,498 17,224 - (16,972) (252) - 14,551 3,608 - (562) 17,597 440,490 404,915 457,292 448,901	Transportation equipment 32,827 12,172 (1,047) - - (11,475) 32,477 34,216 2,523 (2,548) - - (928) 33,263 18,339 8,040 (1,047) (11,156) 14,176 9,064 7,868 (510) (386) 16,036 14,488 18,301 25,152 17,227	Total 1,315,790 53,895 (19,776) (63) (61,147) (33,808) 1,254,891 1,553,692 80,378 (145,663) (62,037) (94,596) (20,265) 1,311,509 292,818 64,527 (19,800) (16,541) 321,004 222,121 76,483 (22,202) (4,014) 272,388 1,022,972 933,887 1,331,571 1,039,121

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

(k) Investment property

Carrying value: January 1, 2021 September 30, 2021 January 1, 2020 September 30, 2020	Owned property
	Buildings
	$ 1,566,873 $ 1,555,829 $ 1,581,599 $ 1,570,555

(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 nine months ended September 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.

(l) Intangible assets

The cost, amortization and impairment losses of the intangible assets of the Group were as follows:

Costs: Balance at January 1, 2021 Reclassification Effect of changes in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Reclassification Effect of changes in exchange rates Balance at September 30, 2020 Amortization and impairment losses: Balance at January 1, 2021 Amortization Reclassification Effect of changes in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Amortization Impairment loss Effect of changes in exchange rates Balance at September 30, 2020 Carrying value: January 1, 2021 September 30, 2021 January 1, 2020 September 30, 2020	Industrial technology and know- how $ 980,299 8,000 (21,818) $ 966,481 $ 995,035 25,300 - (29,611) $ 990,724 $ 587,443 47,297 - (14,321) $ 620,419 $ 491,771 37,301 67,186 (16,784) $ 579,474 $ 392,856 $ 346,062 $ 503,264 $ 411,250	Computer software 261,995 12,553 (1,267) 273,281 246,832 148 9,103 (851) 255,232 247,082 7,994 19 (1,230) 253,865 234,745 9,397 - (816) 243,326 14,913 19,416 12,087 11,906	Goodwill 195,817 - (4,410) 191,407 206,793 - - (6,731) 200,062 195,817 - - (4,410) 191,407 - - 205,109 (5,047) 200,062 - - 206,793 -	Patent and trademark 561,090 - (12,636) 548,454 592,543 - - (19,290) 573,253 348,361 11,961 - (7,942) 352,380 200,235 17,515 143,021 (10,470) 350,301 212,729 196,074 392,308 222,952	Customer relationship 1,023,437 - (23,048) 1,000,389 1,080,805 - - (35,182) 1,045,623 631,530 24,313 - (14,417) 641,426 525,372 43,040 84,931 (20,251) 633,092 391,907 358,963 555,433 412,531	Non- compete agreement 8,553 - (193) 8,360 9,032 - - (294) 8,738 8,553 - - (193) 8,360 9,032 - - (294) 8,738 - - - -	Total 3,031,191 20,553 (63,372) 2,988,372 3,131,040 25,448 9,103 (91,959) 3,073,632 2,018,786 91,565 19 (42,513) 2,067,857 1,461,155 107,253 500,247 (53,662) 2,014,993 1,012,405 920,515 1,669,885 1,058,639

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Amortization of intangible assets

For the nine months ended September 30, 2021 and 2020, the amortization of intangible assets are included in the statement of comprehensive income:

Operating costs Operating expenses	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 4,810 86,755 $ 91,565	2020
		3,852 103,401
		107,253

(ii) Impairment Testing

The goodwill and other intangible assets, which were mainly from the expected production of Dexco Polymers LP Synthetic rubber products' revenue growth in the United States and Europe market amounting to USD90,569 thousand, were generated and recognized by TSRC (USA) Investment Corporation when acquiring Dexco Polymers LP and Dexco Polymers Operating LLC in April 2011. In 2020, the global economic recession caused by COVID-19, as well as the delay of customers' shipments resulted in a decline in operations and profits, and indication of impairment.

For the purposes of impairment testing, goodwill is allocated to each of the acquirer’s cashgenerating units that are expected to benefit from the synergies of the combination. TSRC (USA) Investment Corporation itself is not a separate cash-generating unit that cannot generate independent cash inflows; therefore, the impairment of goodwill and other intangible assets (including technical know-hows, patents, trademarks and customer relationships) are calculated at fair value after the merger of Dexco Polymers LP by TSRC (USA) Investment Corporation, minus the cost of disposal and the book value of net assets, in assessing whether impairment should be recognized.

For the abovementioned impairment testing for the year ended September 30, 2020, the fair value of intangible assets, minus disposal costs, were lower than the book value of net assets, wherein the amount of impairment loss were recognized as follows:

Goodwill $ 205,109	Know-how 67,186	Patent 96,503	Trademark 46,518	Customer relationship 84,931	Total
					500,247

The cash-generating unit used the financial data of July 31, 2020 as the measurement base date, wherein the measurement of the recoverable amount was determined using the fair value, less disposal cost, based on the market and income approach. The amount of fair value, less disposal cost, was estimated by using the discounted cash flow. The measurement of fair value uses the significant unobservable input classified into the third level.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following are the key assumptions used in estimating the recoverable amount. The values of these key assumptions represent the management's assessment of the future trends of related industries and the consideration of historical information from internal and external sources.

Discount rate Revenue growth rate	2020.7.31
	10.2% 0.9%~7%

The discount rate and the cash flow were estimated based on the industry weighted average capital cost and the five-year financial forecast approved by the management, respectively. In addition, the cash flow over five years was estimated based on different growth rates for each product over the subsequent years.

The intangible assets of the Group had not been impaired for the nine month ended September 30, 2021.

(iii) The Group did not pledge any collateral on intangible assets.

(m) Short-term and long-term borrowings

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

(i) Short-term bank borrowings

	September 30, 2021
Range of interest rates (%)	Year of maturity	The unused credit facilities
0.40~3.85		15,733,099

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	The unused credit facilities
0.38~4.35	2020~2021	18,290,086

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term borrowings

1) Long-term bank borrowings

Secured loans Unsecured loans Total Current Non-current Total Secured loans Unsecured loans Total Current Non-current Total Secured loans Unsecured loans Total Current Non-current Total	September 30, 2021	September 30, 2021
	Range of interest rates (%)
	Range of interest rates (%)	Year of maturity Amount 2021~2023 $ 621,709 2020~2025 3,942,655 $ 4,564,364 $ 1,130,577 3,433,787 $ 4,564,364
	1.55~4.38 1~5.08

For the nine months ended September 30, 2021 and 2020, the Group repaid the amounts of $2,212,831 thousand and $582,209 thousand, respectively, for its long-term borrowings, wherein the proceeds amounting to $1,196,664 thousand and $217,986 thousand bore the interest rates of 0.95%~1.65% and 1.00%~5.08%, 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	September 30, 2021 $ 350,000 166 $ 349,834 1.1573%	December 31, 2020 350,000 659 349,341 1.2060%	September 30, 2020
			350,000 90
			349,910
			1.1777%

(n) Lease liabilities

The Group's lease liabilities were as follow:

Current Non-current	September 30, 2021 $ 143,819 $ 397,669	December 31, 2020 139,263 492,827	September 30, 2020
			157,036
			495,122

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

The amounts recognized in profit or loss were as follows:

For the three months ended September 30 2021 2020 $ 1,007 1,241 $ 3,626 336 $ 8,735 13,921	For the nine months ended September 30	For the nine months ended September 30
2021 $ 1,007 $ 3,626 $ 8,735	2021 3,046 11,900 18,153	2020
		5,497
		1,501
		25,605

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

Total cash outflow for leases	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 180,133	2020
		162,402

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) 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 September 30 2021 2020 $ 848 997 565 685 $ 1,413 1,682	For the nine months ended September 30	For the nine months ended September 30
2021 $ 848 565 $ 1,413	2021 2,558 1,680 4,238	2020
		3,003 2,044
		5,047

(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 September 30 2021 2020 $ 17,734 7,791 7,688 6,354 $ 25,422 14,145	For the nine months ended September 30	For the nine months ended September 30
2021 $ 17,734 7,688 $ 25,422	2021 49,195 21,898 71,093	2020
		24,300 19,649
		43,949

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) 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 September 30 2021 2020 $ 157,465 128,155 21 (38) 157,486 128,117 44,904 (115,694) $ 202,390 12,423	For the nine months ended September 30 2021 2020 752,405 334,779 (717) 4,470 751,688 339,249 183,098 (141,743) 934,786 197,506
	2021 $ 157,465 21 157,486 44,904 $ 202,390	2021 752,405 (717) 751,688 183,098 934,786

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

(q) Capital and other equity

Except as explained in the following paragraphs, there were no significant changes in the capital and other equity during the nine months ended September 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.

The distribution of 2020 and 2019 earnings as dividends to stockholders that were approved by the Company's shareholders' general meetings on August 4, 2021 and June 19, 2020, respectively, were 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 (287,682) Exchange differences on translation financial statements from investments accounted for using equity method (5,698) 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 September 30, 2021 $ (491,505) Balance as of January 1, 2020 $ 23,383 Foreign exchange differences arising from foreign operations (310,129) Exchange differences on translation financial statements from investments accounted for using equity method 5,624 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 September 30, 2020 $ (281,122)	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) - - - - 342,831 - - 43,213 901,733 (37,906) 711,094 (80,526) - - - - (50,009) - (84,323) - - (1,689) 576,762 (82,215)		2019 412,855 Total 279,658 (287,682) (5,698) 342,831 43,213 372,322 653,951 (310,129) 5,624 (50,009) (84,323) (1,689) 213,425

(ii) Other equities (net for tax)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) 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 September 30 2021 2020 $ 1,441,531 (231,268) 825,710 825,710 $ 1.75 (0.28) For the three months ended September 30 2021 2020 $ 1,441,531 (231,268) 825,710 825,710 2,977 - 828,687 825,710 $ 1.74 (0.28)	For the nine months ended September 30 2021 2020 3,340,428 (289,482) 825,710 825,710 4.05 (0.35) For the nine months ended September 30 2021 2020 3,340,428 (289,482) 825,710 825,710 3,335 - 829,045 825,710 4.03 (0.35)
		2021 3,340,428 825,710 3,335 829,045 4.03

(ii) Diluted earnings (losses) per share
(s) 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 nine months ended September 30, 2021 and 2020, the Company recognized the employees' compensation of $32,000 thousand, $0 thousand, $93,619 thousand and $0 thousand, respectively, and the directors' remuneration of $7,299 thousand, $0 thousand, $18,593 thousand and $0 thousand, respectively. The amounts were estimated based on the profit-sharing percentages set by the Articles of Incorporation and were recorded as operating cost or operating expenses in the respective periods. If the distribution in the following year is different from the estimate, the difference is treated as a change in accounting estimate and will be recognized as profit or loss for the following year.

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.

(t) Revenue from contracts with customers

For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021
Synthetic rubber $ 5,183,510 1,290,991 791,017 168,943 $ 7,434,461 7,339,443 - 95,018 $ 7,434,461	Non-synthetic rubber 236,168 2,168 65 - 238,401 - 238,242 159 238,401	Total
		5,419,678 1,293,159 791,082 168,943
		7,672,862
		7,339,443 238,242 95,177
		7,672,862

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
Synthetic rubber Non-synthetic rubber Total $ 3,905,680 210,939 4,116,619 780,821 (3) 780,818 567,419 26 567,445 142,478 - 142,478 $ 5,396,398 210,962 5,607,360 5,204,644 - 5,204,644 - 206,975 206,975 191,754 3,987 195,741 $ 5,396,398 210,962 5,607,360 For the nine months ended September 30, 2021		Total
		4,116,619 780,818 567,445 142,478
		5,607,360
		5,204,644 206,975 195,741
		5,607,360
Synthetic rubber $ 17,009,314 3,514,300 2,422,364 586,917 $ 23,532,895 23,327,170 - 205,725 $ 23,532,895	Non-synthetic rubber 864,085 13,343 65 - 877,493 - 876,866 627 877,493	Total
		17,873,399 3,527,643 2,422,429 586,917
		24,410,388
		23,327,170 876,866 206,352
		24,410,388

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020
Synthetic rubber $ 12,096,431 2,648,070 1,872,733 429,219 $ 17,046,453 16,526,675 - 519,778 $ 17,046,453	Non-synthetic rubber 584,775 5,291 26 - 590,092 - 577,852 12,240 590,092	Total
		12,681,206 2,653,361 1,872,759 429,219
		17,636,545
		16,526,675 577,852 532,018
		17,636,545

(u) 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 September 30 2021 2020 $ 18,480 16,246 58,139 22,705 3,330 2,558 (3,682) (3,681) 6,855 2,151 $ 83,122 39,979	For the nine months ended September 30 2021 2020 56,977 48,310 116,605 59,365 9,118 9,230 (11,044) (11,044) 22,035 16,567 193,691 122,428
	2021 $ 18,480 58,139 3,330 (3,682) 6,855 $ 83,122	2021 56,977 116,605 9,118 (11,044) 22,035 193,691

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

Interest income from bank deposits Other gains Dividend income	For the three months ended September 30 2021 2020 $ 6,140 9,176 For the three months ended September 30 2021 2020 $ 37,987 34,054	For the nine months ended September 30	For the nine months ended September 30
		2021 2020 22,028 39,073 For the nine months ended September 30	2020
			39,073
		2021 66,272	2020
			62,339

(ii) Other gains

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Other gains and losses

Gains or losses 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 Impairment loss on intangible assets Other gains and losses Other gains and losses, net Finance costs Interest expense	For the three months ended September 30 2021 2020 $ 995,606 (12,282) (14,341) 21,193 19,806 (17,746) - (500,247) 589 8,084 $ 1,001,660 (500,998) For the three months ended September 30 2021 2020 $ 27,172 23,300	For the nine months ended September 30 2021 2020 926,238 (27,848) (44,474) 34,277 45,788 (12,262) - (500,247) 6,765 13,250 934,317 (492,830) For the nine months ended September 30 2021 2020 85,530 95,911
		2021 85,530

(iv) Finance costs

(w) 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 September 30, 2021 Non-derivative financial liabilities Short-term borrowings $ 3,974,707 Accounts payable (including related parties) 1,378,895 Other payables 1,375,300 Long-term borrowings (including other long- term borrowings and current portion) 3,840,168 Lease liabilities 565,424 Deposits received 49,707 Derivative financial liabilities Other swap contracts: Outflow 8 $ 11,184,209	Within 6 months 3,421,350 1,378,895 1,375,300 672,303 73,966 - 8 6,921,822	6-12 months 553,357 - - 749,029 69,224 - - 1,371,610	1-2 years - - - 983,681 99,120 35,340 - 1,118,141	2-5 years - - - 1,435,155 170,410 11,247 - 1,616,812	Over 5 years
					- - - - 152,704 3,120 -
					155,824

(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 September 30, 2020 Non-derivative financial liabilities Short-term borrowings $ 4,257,932 Accounts payable (including related parties) 916,161 Other payables 1,031,299 Long-term borrowings (including other long- term borrowings and current portion) 5,055,101 Lease liabilities 659,469 Deposits received 60,741 Derivative financial liabilities Other swap contracts/other forward contracts: Outflow 10,010 $ 11,990,713	Within 6 months 3,675,788 1,643,264 1,204,135 1,239,315 71,505 - 32,628 7,866,635 4,098,590 916,161 1,031,299 561,669 71,881 - 10,010 6,689,610	6-12 months 119,654 - - 1,593,226 71,505 - - 1,784,385 159,342 - - 653,527 71,881 - - 884,750	1-2 years - - - 1,084,767 120,293 46,461 - 1,251,521 - - - 2,545,568 118,001 60,741 - 2,724,310	2-5 years - - - 993,488 191,367 12,536 - 1,197,391 - - - 1,294,337 194,619 - - 1,488,956	Over 5 years
					- - - - 198,736 3,121 -
					201,857
					- - - - 203,087 - -
					203,087

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:

September 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) $ 93,262 $ 14,476 $ 163,863 $ 38,001 $ 92,592 $ 11,485 $ 145,151 $ 76,191 $ 8,197 $ 36,134 $ 22,490 $ 84,000 $ 6,212 $ 27,409	Exchange rate NTD 27.8660 2,598,839 32.3385 468,132 0.2491 40,818 4.3078 163,701 27.8660 2,580,169 32.3385 371,408 0.2491 36,157 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

September 30, 2020 Financial assets: Monetary assets: USD EUR JPY CNY Financial liabilities: Monetary liabilities: USD EUR JPY	Foreign currency (thousand dollars) $ 64,348 $ 8,002 $ 49,955 $ 19,437 $ 64,222 $ 6,173 $ 30,753	Exchange rate NTD 29.1260 1,874,200 34.1706 273,433 0.2758 13,778 4.2733 83,060 29.1260 1,870,530 34.1706 210,935 0.2758 8,482

The Group's exposure to foreign currency risk arose from cash and cash equivalents, accounts and other receivables, borrowings, and accounts and other payables that were denominated in foreign currencies. If the NTD against the forgin currencies had depreciated / appreciated by 1%, the Group's net income before tax would have increased / decreased by $2,838 thousand and $1,545 thousand for the nine months ended September 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 nine months ended September 30, 2021 and 2020, foreign exchange gain (loss) (including Derivative financial instruments for non-hedging profit and loss) amounting to $1,314 thousand and $22,015 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 $57,986 thousand and $68,724 thousand for the nine months ended September 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.

	September 30, 2021	September 30, 2021	September 30, 2021
Carrying amount $ 13,783 609,830 684,420 1,294,250 $ 1,308,033 $ 8		Fair value
	Level 1 Level 2 Level 3 - 13,783 - 609,830 - - - - 684,420 609,830 - 684,420 609,830 13,783 684,420 - 8 - December 31, 2020			Total
				13,783
				609,830 684,420
				1,294,250
				1,308,033
				8

		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

	September 30, 2020	September 30, 2020	September 30, 2020
Carrying amount $ 2,622 971,685 $ 974,307 $ 10,010		Fair value
	Level 1 - - - -	Level 2 2,622 - 2,622 10,010	Level 3 - 971,685 971,685 -	Total
				2,622
				971,685
				974,307
				10,010

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 September 30, 2021 Balance at January 1, 2020 Total gains: Recognized in other comprehensive income Balance at September 30, 2020	Unquoted equity instruments $ 952,645 315,365 (583,590) $ 684,420 $ 1,022,688 (51,003) $ 971,685

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

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Quantified information of significant unobservable inputs was as follows:

Valuation Significant Item technique unobservable inputs ‧ Financial assets at Comparative Multipliers of pricefair value through listed company to-earnings ratios as other of September 30, comprehensive 2021, December 31, income-equity 2020 and September investments 30, 2020 was all without an active 13.14~18.25, market 15.62~17.80 and 17.07~17.35, respectively ‧ Multipliers of pricebook ratios as of December 31, 2020 and September 30, 2020 were 1.38 and 1.18, 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:

September 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% $ 8,559 (8,559) 1% $ 11,912 (11,912)

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

September 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% $ 12,149 (12,149)	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.

(x) 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.

(y) 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.

(z) 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 nine months ended September 30, 2021 and 2020.

(aa) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities arising from financing activities for the nine months ended September 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 (1,018,167) - 243,969 (147,034) (921,232)	N Foreign exchange movement (23,566) - (73,792) (533) (97,891)	on-cash changes	Others - - - 53,919 53,919	September 30, 2021 3,422,131 349,834 3,959,453 541,488
				Amortization of commercial paper discount - 493 - 3,046 3,539
						8,272,906

(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 (364,223) - (553,908) (129,799) (1,047,930)	N Foreign exchange movement (31,353) - 73,660 (2,479) 39,828	on-cash changes	Others - - - (81,123) (81,123)	September 30, 2020 4,564,364 349,910 4,248,900 652,158
				Amortization of commercial paper discount - 623 - 3,928 4,551
						9,815,332

(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 September 30 2021 2020 $ (24) (3)	For the nine months ended September 30	For the nine months ended September 30
	2021 $ (24)	2021 6,223	2020
			5,776

(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 September 30 2021 2020 $ 100,936 13,294	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 100,936	2021 223,387	2020
			103,116

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 September 30 2021 2020 $ 37,707 36,924 18,710 9,967 2,036 693 (3,323) (4,328) $ 55,130 43,256	For the nine months ended September 30 2021 2020 111,381 106,383 51,267 27,816 4,555 2,095 (11,516) (12,116) 155,687 124,178
	2021 $ 37,707 18,710 2,036 (3,323) $ 55,130	2021 111,381 51,267 4,555 (11,516) 155,687

－ (iv) Lease Rent income

Other related parties	For the three months ended September 30 2021 2020 $ 1,118 1,118	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 1,118	2021 3,354	2020
			3,360

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

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Receivables from related parties

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

Account Other receivables Other receivables	Type of related parties Associates ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd. Joint ventures Indian Synthetic Rubber Private Limited Others	September 30, 2021 $ 18,661 25,298 693 $ 44,652	December 31, 2020 September 30, 2020 22,154 21,320 17,183 14,876 235 232 39,572 36,428

(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	September 30, 2021 $ 32,328 788 $ 33,116	December 31, 2020 - 1,226 1,226	September 30, 2020
				- 1,185
				1,185

(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	September 30, 2021 $ 748,856 927,938 $ 1,676,794	December 31, 2020 1,577,416 949,316 2,526,732	September 30, 2020
			768,996 969,896
			1,738,892

(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	September 30, 2021 $ 334 27,078 $ 27,412	December 31, 2020 733 31,086 31,819	September 30, 2020
			1,695 32,950
			34,645

The compensation of the key management personnel comprised the following:

For the three months ended September 30 2021 2020 $ 29,915 29,907 282 341 $ 30,197 30,248	For the nine months ended September 30	For the nine months ended September 30
2021 $ 29,915 282 $ 30,197	2021 90,048 943 90,991	2020
		88,438 910
		89,348

(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	September 30, 2021 $ 1,163 158,550 $ 159,713	December 31, 2020 1,173 269,284 270,457	September 30, 2020
				1,194 283,309
				284,503

(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	September 30, 2021 $ 865,306	December 31, 2020 1,284,162	September 30, 2020 919,369

(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	September 30, 2021 $ 552,749 $ 411,010	December 31, 2020 2,851,593 2,342,971	September 30, 2020 2,817,975 1,918,722

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events: None.

(12) Other

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

By function By nature	Three months ended September 30, 2021	Three months ended September 30, 2021	Three months ended September 30, 2021	Three months ended September 30, 2020	Three months ended September 30, 2020	Three months ended September 30, 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits
Salary	206,113	199,195	405,308	187,003	153,861	340,864
Labor and health insurance	23,335	14,951	38,286	20,899	13,832	34,731
Pension	18,582	8,253	26,835	8,788	7,039	15,827
Others (note 1)	49,725	31,749	81,474	34,596	13,005	47,601
Depreciation (note 2)	232,978	33,391	266,369	190,057	49,230	239,287
Amortization	1,753	28,774	30,527	1,271	30,974	32,245

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

By function By nature	Nine months ended September 30, 2021	Nine months ended September 30, 2021	Nine months ended September 30, 2021	Nine months ended September 30, 2020	Nine months ended September 30, 2020	Nine months ended September 30, 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits
Salary	701,272	557,342	1,258,614	607,338	485,050	1,092,388
Labor and health insurance	69,437	44,967	114,404	60,880	42,225	103,105
Pension	51,753	23,578	75,331	27,303	21,693	48,996
Others (note 1)	150,975	100,872	251,847	101,222	36,775	137,997
Depreciation (note 2)	699,228	112,810	812,038	594,946	143,010	737,956
Amortization	4,810	86,755	91,565	3,852	103,401	107,253

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 $3,682 thousand, $3,681 thousand, $11,044 thousand and $11,044 thousand for the three months and nine months ended September 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 nine months ended September 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	228,313	228,313	3.698%	2	-	Operating capital	-		-	295,155	590,310
2	Polybus Corporation Pte Ltd	TSRC	Account receivable- related parties	Yes	684,744	668,784	83,598	0.288%	2	-	Operating capital	-		-	4,385,821	8,771,642
3	TSRC (Hong Kong) Limited	TSRC	Account receivable- related parties	Yes	171,186	167,196	55,732	0.284%	2	-	Operating capital	-		-	1,821,699	3,643,397
4	TSRC Specialty Materials LLC	TSRC (USA) Investment Corporation	Account receivable- related parties	Yes	427,965	417,990	208,995	0.12%~0.19%	2	-	Operating capital	-		-	1,155,547	2,311,094

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)	835,980	835,980	136,543	-	% 4.84	(Note 3)	Y
0	TSRC	ARLANXEO- TSRC (Nantong) Chemical Industries Co., Ltd.	6	(Note 2)	1,561,828	748,856	5,118	-	% 4.33	(Note 3)			Y
0	TSRC	Indian Synthetic Rubber Private Limited	6	(Note 2)	950,082	927,938	494,622	-	% 5.37	(Note 3)
0	TSRC	TSRC (Vietnam) Co., Ltd.	4	(Note 2)	504,999	493,229	420,777	-	% 2.86	(Note 3)	Y
0	TSRC	TSRC Specialty Materials LLC	4	(Note 2)	285,310	278,660	132,949	-	% 1.61	(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 $10,364,974 thousand.

Note 3: The aggregate amount of guarantee by the Company is limited to 1.5 times its stockholders' equity, amounting to $25,912,434 thousand.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Securities held as of September 30, 2021 (excluding investment in subsidiaries, associates and joint ventures):

Unit: thousand NTD

Name of holder	Nature and name of security	Relationship with the security issuer	Account name		Ending balance	Ending balance
				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	609,830 138,966 351,469 193,985 1,294,250	2.89 % 5.42 % 3.90 % 7.57 %	609,830 138,966 351,469 193,985
							1,294,250

(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 Shen Hua Chemical Industries Co., Ltd. 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 TSRC (Lux.) Corporation S.A R.L Marubeni Corporation 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	Parent and subsidiary companies Parent and subsidiary companies A director of Shen Hua Chemical Industries Co., Ltd. Parent and subsidiary companies Parent and subsidiary companies Related parties Related parties Related parties Related parties Related parties	Purchase Sale Purchase Purchase Sale Purchase Sale Purchase Sale Purchase	194,511 (194,511) 150,416 200,448 (200,448) 195,879 (195,879) 260,148 (260,148) 494,226	10.67 % (2.44) % 3.25 % 10.22 % (2.51) % 40.32 % (4.54) % 53.55 % (4.14) % 27.11 %	70 days 70 days 14 days 70 days 70 days 40 days 40 days 40 days 40 days 90 days	- - - - - - - - - -		(3,948) 3,948 (19,735) (24,248) 24,248 (25,967) 25,967 (37,749) 37,749 (106,376)	% (1.07) % 0.33 % (7.65) % (10.03) % 2.03 % (35.18) % 3.88 % (51.15) % 2.80 % (28.80)

(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 Specialty Materials LLC TSRC (Lux.) Corporation S.A R.L TSRC (Nantong) Industries Ltd.	TSRC (Lux.) Corporation S.A R.L TSRC (Nantong) Industries Ltd. TSRC (Lux.) Corporation S.A R.L	Related parties Related parties Related parties	Sale Purchase Sale	(494,226) 1,150,642 (1,150,642)	(15.16) % 63.12 % (26.67) %	90 days 70 days 70 days	- - -		106,376 (264,148) 264,148	% 18.18 % (71.50) % 39.49

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

Name of related party	Counter-party	Relationship	Balance of receivables from related party	Turnover rate	Overdue amount	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	264,148	8.57	-		93,210	-
TSRC Specialty Materials LLC	TSRC (USA) Investment Corporation	Related parties	208,995	-	-		-	-
TSRC Specialty Materials LLC	TSRC (Lux.) Corporation S.A R.L	Related parties	106,376	8.51	-		-	-
TSRC (Shanghai) Industries Ltd.	TSRC (Nantong) Industries Ltd.	Related parties	228,313	-	-		-	-

Note 1: Transactions within the Group were eliminated in the consolidated financial statements. Note 2: Until November 4, 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 1 1	TSRC TSRC TSRC TSRC TSRC TSRC 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 (Nantong) Industries Ltd. TSRC (Shanghai) Industries Ltd. Polybus Corporation Pte Ltd	1 1 1 1 1 1 3 3	Sales revenue Other income and expenses Sales revenue Sales revenue Sales revenue Other income and expenses Sales revenue Sales revenue	70,709 52,148 194,511 29,833 200,448 46,509 36,787 195,879	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 〃	0.29 % 0.21 % 0.80 % 0.12 % 0.82 % 0.19 % 0.15 % 0.80 %

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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----- 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 (Lux.) 3 Sales revenue 1,150,642 The transaction is not 4.71 %
Industries Ltd. Corporation S.A R.L significantly different
from normal transactions,
and the collection terms
were about two months
1 TSRC (Nantong) TSRC (Lux.) 3 Accounts receivable 264,148 〃 0.83 %
Industries Ltd. Corporation S.A R.L
1 TSRC (Nantong) TSRC-UBE (Nantong) 3 Other income and 182,632 〃 0.75 %
Industries Ltd. Industries Ltd. expenses
1 TSRC (Nantong) TSRC Specialty 3 Sales revenue 29,550 〃 0.12 %
Industries Ltd. Materials LLC
2 TSRC Specialty TSRC (Lux.) 3 Sales revenue 494,226 The transaction is not 2.02 %
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 106,376 〃 0.33 %
Materials LLC Corporation S.A R.L
3 Shen Hua Chemical Polybus Corporation 3 Sales revenue 260,148 The transaction is not 1.07 %
Industries Co., Ltd. Pte Ltd significantly different
from normal transactions,
and the collection terms
were about two months
3 Shen Hua Chemical Polybus Corporation 3 Accounts receivable 37,749 〃 0.12 %
Industries Co., Ltd. Pte Ltd
3 Shen Hua Chemical TSRC-UBE (Nantong) 3 Sales revenue 24,894 〃 0.10 %
Industries Co., Ltd. Industries Ltd.
3 TSRC (Lux.) TSRC 2 Other income and 35,238 The transaction is not 0.14 %
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 26,503 The transaction is not 0.11 %
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 228,313 One year based on the 0.72 %
Industries Ltd. Industries Ltd. contract of entrusted loans
0 TSRC TSRC(Hong Kong) 1 Accounts payable- 55,732 One year base on contract 0.17 %
Limited related parties of loan
0 TSRC Polybus Corporation 1 Accounts payable- 83,598 〃 0.26 %
Pte Ltd related parties
2 TSRC Specialty TSRC(USA) 3 Accounts receivable- 208,995 〃 0.66 %
Materials LLC Investment Corporation related parties
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----- Start of picture text -----

Note 1: Company numbering is as follows:
(1) Parent company - 0.
(2) Subsidiary starts from 1.
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Note 2: The number of the relationship with the transaction counterparty represents the following: (1) 1 represents downstream transactions.

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

(2) 2 represents upstream transactions.
----- End of picture text -----

(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.

(Continued)

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the nine months ended September 30, 2021 (excluding information on investees in Mainland China):

in Mainland China):	in Mainland China):	in Mainland China):	in 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
				September 30, 2021	December 31, 2020	Shares	Percentage of ownership	Book value
TSRC TSRC TSRC TSRC Trimurti Holding Corporation Trimurti Holding Corporation Trimurti Holding Corporation TSRC (Hong Kong) Limited TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation Hardison International Corporation Hardison International Corporation Dymas Corporation	Trimurti Holding Corporation Hardison International Corporation Dymas Corporation TSRC (Vietnam) Co., Ltd. Polybus Corporation Pte Ltd TSRC (Hong Kong) Limited Indian Synthetic Rubber Private Limited TSRC (Lux.) Corporation S.A R.L TSRC (USA) Investment Corporation TSRC Specialty Materials LLC Triton International Holdings Corporation Dymas Corporation Asia Pacific Energy Development Co., Ltd.	Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. 8 VSIP II-A Street 31, Vietnam Singapore Industrial Park II-A, Tan Uyen Town, Binh Duong Province, Vietnam 100 Peck Seah Strect #09-16 Singapore 079333 15/F Boc Group Life Assurance Tower 136 Dses Voeus Road Central Room No.702, Indian Oil Bhawan, 1 Sri Aurobindo Marg, Yusuf Sarai, New Delhi 110016, India 39-43 avenue de la Liberte L-1931 Luxembourg 2711 Centerville Road, Suite 400, County of New Castle, Wilmington, Delaware, USA 12012 Wickchester Lane, Suite 280, Houston, TX, USA Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Palm Grove House, P.O. BOX 438, Road Town, Tortola, B.V.I. Cayman Islands	Investment corporation Investment corporation Investment corporation Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products International commerce and investment corporation Investment corporation Production and sale of synthetic rubber products International commerce and investment corporation Investment corporation Production and sale of TPE Investment corporation Investment corporation Consulting for electric power facilities management and electrical system design	1,005,495 109,442 38,376 278,280 1,814,104 (USD65,101) 2,893,884 (USD103,850) 821,295 (USD29,473) 2,421,171 (EUR74,870) 2,676,529 (USD96,050) 6,091,981 (USD218,617) 1,393 (USD50) 133,729 (USD4,799) 314,468 (USD11,285)	1,005,495 109,442 38,376 278,280 1,814,104 (USD65,101) 2,169,368 (USD77,850) 821,295 (USD29,473) 2,421,171 (EUR74,870) 2,676,529 (USD96,050) 6,091,981 (USD218,617) 1,393 (USD50) 133,729 (USD4,799) 314,468 (USD11,285)	86,920,000 3,896,305 1,161,004 - 105,830,000 103,850,000 222,861,375 74,869,617 130 - 50,000 4,798,566 7,522,337	% 100.00 % 100.00 % 19.48 % 100.00 % 100.00 % 100.00 % 50.00 % 100.00 % 100.00 % 100.00 % 100.00 % 80.52 % 37.78	14,470,760 634,635 134,072 177,240 8,771,642 3,643,397 1,164,791 2,902,374 2,749,395 2,311,094 57,231 575,496 343,605	1,944,718 23,772 30,587 (16,057) 988,912 319,687 1,290,945 255,532 132,385 254,350 (789) 30,587 62,190	1,944,718 23,772 5,958 (16,057) 988,912 319,687 645,472 255,532 132,385 254,350 (789) 24,629 23,495	Subsidiary Subsidiary Subsidiary (note 2) Subsidiary Indirectly owned subsidiary Indirectly owned subsidiary - Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary Indirectly owned subsidiary -

Note 1: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (USD1 to NTD27.866; EUR1 to NTD32.3385).

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 September 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	1,148,637 (USD41,220)	(2)a.	-	-	-	-	813,361	65.44 %	532,263	2,229,024	4,786,340
Changzhou Asia Pacific Co-generation Co., Ltd.	Power generation and sale of electricity and steam	643,705 (USD23,100)	(2)c.	106,783 (USD3,832)	-	-	106,783 (USD3,832)	143,993	28.34 %	40,808	366,983	358,308
TSRC (Shanghai) Industries Ltd.	Production and sale of compounding materials	153,263 (USD5,500)	(2)b.	109,235 (USD3,920)	-	-	109,235 (USD3,920)	70,753	100.00 %	70,753	650,615	-
Nantong Qix Storage Co., Ltd.	Storehouse for chemicals	83,598 (USD3,000)	(2)d.	41,799 (USD1,500)	-	-	41,799 (USD1,500	(1,485)	50.00 %	(742)	56,912	74,060
TSRC-UBE (Nantong) Chemical Industrial Co., Ltd.	Production and sale of synthetic rubber products	1,114,640 (USD40,000)	(2)a.	27,866 (USD1,000)	-	-	27,866 (USD1,000)	289,736	55.00 %	159,355	966,255	-
TSRC (Nantong) Industries Ltd.	Production and sale of TPE	2,929,413 (USD105,125)	(2)a.	185,253 (USD6,648)	-	-	185,253 (USD6,648)	222,923	100.00 %	222,923	4,213,073	440,864
ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	Production and sale of NBR	1,248,397 (USD44,800)	(2)a.	-	-	-	-	227,922	50.00 %	113,961	430,561	-

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 NTD27.866).
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 September 30, 2021	Investment (amount) approved by Investment Commission, Ministry of Economic Affairs	Maximum investment amount set by Investment Commission, Ministry of Economic Affairs
TSRC	470,935 (USD16,900)	5,220,277 (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 18, 2021. 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 12, 2021 to August 11, 2024.

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 NTD27.866).
(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 September 30, 2021 Revenue: Revenue from external customers Income from operations Three months ended September 30, 2020 Revenue: Revenue from external customers Income from operations Nine months ended September 30, 2021 Revenue: Revenue from external customers Income from operations Nine months ended September 30, 2020 Revenue: Revenue from external customers Income from operations	Synthetic rubber $ 7,434,461 $ 676,402 $ 5,396,398 $ (209,607) $ 23,532,895 $ 3,608,102 $ 17,046,453 $ 26,202	Non-synthetic rubber 238,401 (10,877) 210,962 29,390 877,493 52,655 590,092 (4,632)	Others - 1,031,925 - 38,831 - 1,025,936 - 69,069	Total 7,672,862 1,697,450 5,607,360 (141,386) 24,410,388 4,686,693 17,636,545 90,639

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_d2a6695a-055d-4eb0-a19e-becc1a95d81d.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

KPMG

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 September 30, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31 and September 30, 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

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 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

Consolidated Statements of Changes in Equity

(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 nine months ended September 30, 2021 and 2020

TSRC CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the nine months ended September 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

(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) Employee benefits

(d) 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

(e) Other receivables (including related parties)

(f) Inventories

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

(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

(i) Property, plant and equipment

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Right-of-use assets

(k) Investment property

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Intangible assets

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Short-term and long-term borrowings

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Long-term borrowings

1) Long-term bank borrowings

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TSRC CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Employee benefits

(i) Defined benefit plans

TSRC Interim / Quarterly Report 2021