TTC - Audit Report / Information 2021

Taita Chemical Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The entities that are required to be included in the combined financial statements of Taita Chemical Co., Ltd. as of and for the year ended December 31, 2021, under the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises”, are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standard 10, “Consolidated Financial Statements”. In addition, the information required to be disclosed in the combined financial statements of affiliates is included in the consolidated financial statements of Taita Chemical Co., Ltd. and subsidiaries. Consequently, we did not prepare a separate set of combined financial statements of affiliates.

Very truly yours,

TAITA CHEMICAL CO., LTD. Chairman: Wu, Yi-Gui

March 9, 2022

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Taita Chemical Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Taita Chemical Co., Ltd. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters identified in the Group’s consolidated financial statements for the year ended December 31, 2021 are stated as follows:

Authenticity of the Recognition of Sales Revenue from Customers of Specific Products

Due to the market demand and the fluctuation of international crude oil price, the sales revenue of the Group has increased significantly in 2021, compared to 2020. However, the sales revenue of 2021 was mainly from specific products, and the sales revenue from some customers has increased significantly in great amounts. Whether these sales revenues are recognized when the contractual obligations are actually met will have a significant impact on the consolidated financial statements and is therefore the key audit matter for the year.

For relevant accounting policies and disclosures of the recognition of sales revenue, please refer to Notes 4 and 24 of the consolidated financial statements.

We performed the corresponding audit procedures, for the authenticity of the recognition of sales revenue, as follows:

We understand and test the Group’s internal control procedures on the recognition of sales revenue and its effectiveness. Also, we evaluate the appropriateness of the accounting policies used by management for the recognition of sales revenue.
We verify the authenticity of the recognition of sales revenue by examining the certificate of sales transactions, including purchase orders, shipping orders, export documents and collection information.
We review any occurrence of sales returns, discounts and allowances, and whether there are any abnormalities in the collections after the balance sheet date.

Other Matter

We have also audited the financial statements of Taita Chemical Co., Ltd. for the years ended December 31, 2021 and 2020 on which we have issued an unmodified report.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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 IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Hsiu-Chun Huang and Cheng-Chun Chiu.

Deloitte & Touche

Taipei, Taiwan, Republic of China

March 9, 2022

Notice to Readers:

The consolidated financial statement (Chinese version) of our company is audited by the CPA Huang, Hsiu-Chun and CPA Chiu, Cheng-Chun of Deloitte Taiwan. For the convenience of reading, the statement has been translated from Chinese to English. If there is any difference regarding the context or interpretation in the English version, the Chinese version shall prevail.

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

Code 1100 1110 1140 1150 1170 1180 1200 1210 130X 1410 11XX 1520 1550 1600 1755 1760 1780 1840 1990 15XX 1XXX Code 2100 2120 2170 2180 2200 2220 2230 2280 2365 2399 21XX 2540 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3XXX	ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at amortized cost - current (Notes 4, 9 and 31) Notes receivable (Notes 4 and 10) Accounts receivable (Notes 4, 5 and 10) Accounts receivable from related parties (Notes 4, 5, 10 and 30) Other receivables (Notes 4 and 10) Other receivables from related parties (Notes 4, 10 and 30) Inventories (Notes 4, 5 and 11) Prepayments and other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non- current (Notes 4 and 8) Investments accounted for using the equity method (Notes 4, 5, and 13) Property, plant and equipment (Notes 4, 14, 18, 30 and 31) Right-of-use assets (Notes 4, 15, 18, 30 and 31) Investment properties, net (Notes 4, 16, 18 and 31) Intangible assets (Notes 4 and 17) Deferred tax assets (Notes 4 and 26) Other non-current assets (Note 31) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 14, 15, 18 and 31) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Accounts payable (Note 19) Accounts payable from related parties (Notes 19 and 30) Other payables (Note 20) Other payables from related parties (Note 30) Current tax liabilities (Notes 4 and 26) Lease liabilities - current (Note 4, 15 and 30) Refund liabilities - current (Note 21) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 14, 16, 18 and 31) Deferred tax liabilities (Notes 4 and 26) Lease liabilities - non-current (Note 4, 15 and 30) Net defined benefit liabilities - non-current (Note 22) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 13 and 23) Share capital Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		December 31,2021 Amount ％ $ 2,598,283 24 695,975 7 3,809 - 255,365 2 2,213,149 21 - - 112,786 1 3,536 - 1,185,759 11 221,674 2 7,290,336 68 476,731 4 693,810 6 2,007,587 19 73,370 1 108,178 1 4,094 - 65,703 1 24,850 - 3,454,323 32 $ 10,744,659 100 $ 350,000 3 - - 1,029,476 10 28 - 429,580 4 6,795 - 456,961 4 4,564 - 897 - 64,859 1 2,343,160 22 300,000 3 209,012 2 38,374 - 186,419 2 5,881 - 739,686 7 3,082,846 29 3,786,541 35 992 - 273,706 3 308,061 3 2,943,210 27 3,524,977 33 349,303 3 7,661,813 71 $ 10,744,659 100		December 31,2020	December 31,2020
			Amount $ 2,598,283 695,975 3,809 255,365 2,213,149 - 112,786 3,536 1,185,759 221,674 7,290,336 476,731 693,810 2,007,587 73,370 108,178 4,094 65,703 24,850 3,454,323 $ 10,744,659 $ 350,000 - 1,029,476 28 429,580 6,795 456,961 4,564 897 64,859 2,343,160 300,000 209,012 38,374 186,419 5,881 739,686 3,082,846 3,786,541 992 273,706 308,061 2,943,210 3,524,977 349,303 7,661,813 $ 10,744,659		Amount $ 2,458,506 361,424 3,000 342,964 1,875,137 27 65,473 1,748 740,852 92,989 5,942,120 341,497 604,638 2,076,043 79,351 108,178 5,406 64,582 24,055 3,303,750 $ 9,245,870 $ 150,000 434 1,179,603 498 408,773 4,178 392,544 4,514 879 28,754 2,170,177 300,000 170,735 42,938 201,796 4,418 719,887 2,890,064 3,442,310 816 81,781 308,061 2,326,852 2,716,694 195,986 6,355,806 $ 9,245,870	％
						26 4 - 4 20 - 1 - 8 1 64 4 7 22 1 1 - 1 - 36 100 2 - 13 - 4 - 4 - - - 23 3 2 1 2 - 8 31 37 - 1 4 25 30 2 69 100

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

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Code 4100 NET REVENUE (Notes 4, 21, 24 and 30) 5110 COST OF GOODS SOLD (Notes 11, 22, 25 and 30) 5900 GROSS PROFIT OPERATING EXPENSES (Notes 10, 22, 25 and 30) 6100 Selling and marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 7, 9, 13, 25 and 30) 7100 Interest income 7010 Other income 7020 Other gains and losses 7060 Share of profit of associates 7510 Finance costs 7000 Total non-operating income and expenses		2021		％ 100 84 16 4 1 - 5 11 - - - 1 - 1		2020
								％
								100 80 20 3 1 - 4 16 - - - - - -

(Continued)

Code 7900 PROFIT BEFORE INCOME TAX 7950 INCOME TAX EXPENSE (Notes 4 and 26) 8200 NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) (Notes 8, 13, 22, 23 and 26) 8310 Items that will not be reclassified subsequently to profit or loss: 8311 Remeasurement of defined benefit plans 8316 Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income 8320 Share of the other comprehensive income (loss) of associates accounted for using the equity method - unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income 8330 Share of the other comprehensive income (loss) of associates accounted for using the equity method - remeasurement of defined benefit plans 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss (Continued)		2021		％ 12 3 9 - 1 - - - 1		2020
								％
								16 4 12 - 1 - - - 1

(Continued from the previous page)

(Continued from the previous page)
Code 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translating the financial statements of foreign operations 8371 Share of the other comprehensive loss of associates accounted for using the equity method - exchange differences on translating the financial statements of foreign operations 8399 Income tax relating to items that may be reclassified subsequently to profit or loss 8300 Other comprehensive income for the year, net of income tax 8500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 27) 9710 Basic 9810 Diluted	2021	％ - - - - 1 10		2020
	Amount ( $ 20,716 ) ( 2,734 ) 4,559 ( 18,891) 144,361 $ 1,994,293 $ 4.89 $ 4.88			Amount $ 85,673 160 17,148) 68,685 236,480 $ 2,156,298 $ 5.07 $ 5.06	％
			(		1 - - 1 2 14

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

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

				Equityattributable to owners of the company (Notes 13 and 23)	Equityattributable to owners of the company (Notes 13 and 23)	Equityattributable to owners of the company (Notes 13 and 23)	Equityattributable to owners of the company (Notes 13 and 23)							Total equity
Share capital Shares (In Thousands) Amount 334,205 $ 3,342,048 - - - - 10,026 100,262 - - - - - - - - 344,231 3,442,310 - - - - 34,423 344,231 - - - - - - - - 378,654 $ 3,786,541		Capital surplus		Total $ 810 - - - 6 - - - 816 - - - 176 - - - $ 992		Retained earnings			Total $ 997,971 - 100,261 ) 100,262 ) - 1,919,818 572) 1,919,246 2,716,694 - 688,462 ) 344,231 ) - 1,849,932 8,956) 1,840,976 $ 3,524,977		Other equity
										Exchange differences on translating the financial statements of foreign operations ( $ 194,326 ) - - - - - 68,685 68,685 ( 125,641 ) - - - - - ( 18,891) ( 18,891) ($ 144,532)	Unrealized gain (loss) on financial assets at fair value through other comprehensive income $ 153,260 - - - - - 168,367 168,367 321,627 - - - - - 172,208 172,208 $ 493,835
Shares (In Thousands) 334,205 - - 10,026 - - - - 344,231 - - 34,423 - - - - 378,654	Long-tern equity investment $ 514 - - - 6 - - - 520 - - - 33 - - - $ 553		Other capital surplus $ 296 - - - - - - - 296 - - - 143 - - - $ 439		Legal reserve $ 42,017 39,764 - - - - - - 81,781 191,925 - - - - - - $ 273,706	Special reserve $ 308,061 - - - - - - - 308,061 - - - - - - - $ 308,061	Unappropriated earnings $ 647,893 ( 39,764 ) ( 100,261 ) ( 100,262 ) - 1,919,818 ( 572) 1,919,246 2,326,852 ( 191,925 ) ( 688,462 ) ( 344,231 ) - 1,849,932 ( 8,956) 1,840,976 $ 2,943,210
							( ( ( ( ( ( ( (	( ( ( ( ( (		( ( ( ( (		(	( (	$ 4,299,763 - 100,261 ) - 6 1,919,818 236,480 2,156,298 6,355,806 - 688,462 ) - 176 1,849,932 144,361 1,994,293 $ 7,661,813

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

Notice to Readers:

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TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Profit before income tax A20010 Adjustments for: A20100 Depreciation expenses A20200 Amortization expenses A20300 Gain on reversal of expected credit loss A20400 Net gain on fair value change of financial assets and liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A21300 Dividend income A22300 Share of profit of associates A22500 Loss on disposal of property, plant and equipment A23200 Loss on disposal on investments accounted for using the equity method A23700 (Reversal of) write-down of inventories A23800 Impairment loss recognized on property, plant and equipment A29900 Recognition of refund liabilities A30000 Changes in operating assets and liabilities A31115 Financial assets at fair value through profit or loss A31130 Notes receivable A31150 Accounts receivable A31160 Accounts receivable from related parties A31180 Other receivables A31190 Other receivables from related parties A31200 Inventories A31230 Prepayments and other current assets A32150 Accounts payable A32160 Accounts payable from related parties A32180 Other payables A32190 Other payables from related parties (Continued)	2021 $ 2,407,444 199,749 1,752 ( 1,697 ) ( 1,254 ) 5,163 ( 41,853 ) ( 19,077 ) ( 74,888 ) 729 ( 153 ) 2,005 39 6,944 ( 333,731 ) 85,307 ( 344,733 ) 27 ( 45,298 ) ( 1,789 ) ( 518,345 ) ( 58,214 ) ( 149,859 ) ( 470 ) 20,675 2,617	2020
		$ 2,481,989 203,757 2,042 ( 5,334 ) ( 22,139 ) 21,003 ( 33,052 ) ( 7,555 ) ( 56,841 ) 19,635 173 ( 359 ) 22,078 7,576 ( 32,379 ) ( 51,664 ) 62,381 9,367 12,190 5,989 6,595 36,980 495,096 ( 324 ) 103,812 ( 3,883 )

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Code
A32230
Other current liabilities
A32240
Net defined benefit liabilities
A33000
Cash generated from operations
A33100
Interest received
A33300
Interest paid
A33500
Income tax paid
AAAA
NET CASH GENERATED FROM
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING
ACTIVITIES
B00040
Purchase of financial assets at amortized
cost
B00050
Proceeds from disposal of financial assets
at amortized cost
B02700
Payments for property, plant and equipment
B02800
Proceeds from disposal of property, plant
and equipment
B03700
Increase in refundable deposits
B04500
Payments for intangible assets
B07600
Dividends received
B09900
Proceeds from liquidation of investments
accounted for using equity method
BBBB
Net cash used in investing activities
CASH FLOWS FROM FINANCING
ACTIVITIES
C00100
Increase in short-term borrowings
C00200
Decrease in short-term borrowings
C01600
Proceeds from long-term borrowings
C01700
Repayments of long-term borrowings
C04020
Repayments of the principal portion of
lease liabilities
C04300
Increase in other non-current liabilities
C04500
Cash dividends
C04400
Refund of unclaimed overdue cash
dividends
C09900
Claim for disgorgement
CCCC
Cash used in financing activities
DDDD
EFFECTS OF EXCHANGE RATE CHANGES
ON THE BALANCE OF CASH AND CASH
EQUIVALENTS HELD IN FOREIGN
CURRENCIES
EEEE
NET INCREASE IN CASH AND CASH
EQUIVALENTS
E00100
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR
E00200
CASH AND CASH EQUIVALENTS AT THE
END OF THE YEAR

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

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Notice to Readers:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

Taita Chemical Co., Ltd. (the “Company”) was established and began operations in April 1960. The Company designs, develops, and sells chemical products like EPS, ABS and PS plastic resins. Other products include SAN resins, glasswool and cubic printing, all of which are widely used in consumer-oriented and industrial applications. The ordinary shares of the Company has been listed on the Taiwan Stock Exchange since 1986. The Company’s parent company is USI Corporation, which held indirectly 36.79% of the ordinary shares of the Company as of December 31, 2021. USI Corporation has operational control over the Company.

The functional currency of the Company is the New Taiwan dollar, and the consolidated financial statements of the Company and its subsidiaries, collectively referred to as the “Group”, are presented in the Company’s functional currency.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on March 9, 2022.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC) and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the FSC.

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies.

b. FSC-endorsed IFRSs that are applicable from 2022 onward

FSC-endorsed IFRSs that are applicable from 2022 onward
New/Revised/Amended Standards and Interpretations Annual Improvements to IFRSs 2018-2020 Amendments to IFRS 3 "Reference to the Conceptual Framework" Amendments to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a Contract"	Effective Date of Issuance bythe IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1. The amendments to IFRS 9 apply prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 "Agriculture" apply prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 "First-time Adoptions of IFRSs" apply retrospectively for annual reporting periods beginning on or after January 1, 2022.
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Note 2. The amendments apply to the business combination of which the acquisition date falls on the annual reporting periods beginning on or after January 1, 2022.
Note 3. The amendments apply to property, plant, and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

Note 4. The amendments apply to contracts that will not have been completely fulfilled in the annual period beginning after January 1, 2022.

As of the date of authorization of the consolidated financial statements, the Group's assessment of the effects of amendments to other standards and interpretations should not cause material effects on the consolidated financial conditions and performance.

c. Standards issued by the IASB but not yet endorsed and issued into effect by the FSC

Effective Date of Issuance New/Revised/Amended Standards and Interpretations by the IASB (Note 1) Amendments to IFRS 10 and IAS 28 "Sale or Contribution To be determined of Assets between an Investor and Its Associate or Joint Venture" IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 17 January 1, 2023 and IFRS 9 ― Comparative Information” Amendments to IAS 1 "Classify Liabilities as Current or January 1, 2023 Non-current" Amendments to IAS 1 "Disclosure of Accounting Policies" January 1, 2023 (Note 2) Amendments to IAS 8 "Definition of Accounting January 1, 2023 (Note 3) Estimates" Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 4) Liabilities arising from a Single Transaction”

Note 1. Unless otherwise specified, the aforementioned New/Amended/Revised Standards and Interpretations shall be effective for the annual reporting period after the specified dates.
Note 2. The amendments prospectively apply to the annual reporting periods beginning on or after January 1, 2023.
Note 3. The amendments apply to changes in accounting estimates and in accounting policies which take place in the annual reporting periods beginning on or after January 1, 2023.
Note 4. Except for the temporary differences arising from leases and decommissioning obligations on January 1, 2022 are recognized in deferred income tax, the amendment applies to transactions occurring after January 1, 2022.

As of the date of authorization of the consolidated financial statements, the Group has continued to assess the effects of amendments to other standards and interpretations on its financial conditions and performance. Related impacts will be disclosed upon completion of the assessment.

4. Summary of Significant Accounting Policies

a. Statement of compliance
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The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligations less fair value of plan assets.

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities on the measurement date.
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. deduced from prices).
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate any the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

See Note 12 and Tables 7 and 8 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of the Group, transactions in currencies other than the Group’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items

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arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of nonmonetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

For the purpose of presenting consolidated financial statements, the functional currencies of the Group (including subsidiaries and associates in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

f. Inventories

Inventories consist of raw materials, production supplies, finished goods, and work in progress. Inventories are stated at the lower of cost or net realizable value. Inventory writedowns are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Investments in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group’s share of the equity of associates attributable to Group.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the amount of ownership interests in associates and joint ventures is not subscribed for or obtained in proportion to the shareholding ratio, the amount of the related assets or liabilities shall be recognized in other comprehensive income. The basis of the accounting treatment is the same as that of the associates and joint ventures. The difference in the balance of the capital reserve accounted for using the equity method shall be recognized in retained earnings.

When the Group’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group’s net

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investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group shall cease the use of equity method from the date when its investment is no longer an associate. Its retained interest in the associate is measured at fair value, and the difference between the fair value and the carrying amount of the investment and the carrying amount of the investment at the date of acquisition of the equity method is included in profit or loss for the current period.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent that interests in the associate are not related to the Group.

h. Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land, depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost and include transaction costs for land. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

j. Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

k. Impairment of property, plant, and equipment as well as right-of-use assets, investment property, and intangible assets

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant, and equipment as well as right-of-use assets, investment property and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

l. Financial instruments

Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to an acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and equity instruments at FVTOCI.

i. Financial assets at fair value through profit or loss

Financial asset is classified as at FVTPL when such a financial asset is mandatorily classified. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and derivatives and mutual fund that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at fair value through profit or loss are measured at fair value. Dividends and interest accrued are recognized in other income and interest

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income respectively, and profits or losses accrued from remeasurement are recognized in other gains and losses. Fair value is determined in the manner described in Note 29.

ii. FINANCIAL ASSETS AT AMORTIZED COST

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, other receivables, pledged financial assets and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A credit-impaired financial asset refers to the situation where the issuer or debtor has experienced significant financial difficulties or defaults and therefore the debtor is likely to file for bankruptcy or declare financial restructuring, or the disappearance of an active market for that financial asset due to financial difficulties has occurred.

Cash equivalents include highly liquid time deposits and reverse repurchase agreements collateralized by bonds that can be readily converted into fixed amount of cash with limited risk of change in value. Cash equivalents are held to meet short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

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Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable).

The Group always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purpose, if any internal or external information shows that the debtor is unlikely to pay its creditors, the Group will determine that a financial asset is in default (without taking into account any collateral held by the Group).

The impairment loss of financial assets is recognized in profit or loss by a reduction in their carrying amount through a loss allowance account.

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Financial liabilities
a) Subsequent measurement

Except the financial liabilities at fair value through profit or loss, all the financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 29.

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

3) Derivative instruments

The Group enters into a variety of derivative instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

m. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from sale of goods

Revenue from the sale of goods comes from sales of PS, ABS, SAN, glasswool products, plastic raw materials and the related processed products. The sale of goods above is recognized as revenue when goods are delivered to a customer because it is the time when the customer has full discretion over the manner of distribution and the price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable are recognized concurrently.

n. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

1) The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Rightof-use assets are subsequently measured at cost less accumulated depreciation and

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impairment losses and adjusted for any remeasurement of the lease liabilities. Rightof-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-useassets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

o. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the costs of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

p. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

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Net defined benefit liabilities represent the actual deficit in the Group’s defined benefit plans.

q. Income tax

Income tax expense represents the sum of the tax currently payables and deferred tax.

1) Current tax

The Group determines the income (loss) of the current year in accordance with the laws and regulations in each income tax declaration jurisdiction, and calculates the income tax payable (recoverable) accordingly.

According to the Income Tax Act in the ROC, an additional tax of unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profit against which to utilize the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group takes into account recent development of COVID-19 pandemic in Taiwan and its potential impacts on the economy, including cash flow projections, growth rates, discount rates, profitability, etc. in Group's critical accounting estimates and the management will continue to review the estimates and underlying assumptions. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Key Sources of Estimation Uncertainty

a. Estimated impairment of financial accounts receivable

The provision for impairment of accounts receivable is based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 10. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

b. Write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and disposal. The estimation of net realizable value is based on current market conditions and historical experience with product sales of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

c. Estimation of damage compensation for associate’s gas explosion incidents

The Company’s associate, China General Terminal & Distribution Corporation (hereinafter “CGTD”), recognized a provision for civil damages due to gas explosion. The management considered the progress of the relevant civil and criminal procedures, settlements achieved, and legal advice to estimate the amount of the provision. However, the actual amount might differ from the current estimation.

6. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Cash on hand and petty cash Checking accounts and demand deposits Cash equivalents Time deposits	December31,2021 $ 484 502,207 2,095,592	December31,2020
			$ 1,084 782,819 1,674,603

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$ 2,598,283

$ 2,458,506

The market rate or interval of market rates of cash equivalents at the end of the reporting period were as follows:

	were as follows:
7.	Time deposits FINANCIAL INSTRUMENTS AT FAIR	December31,2021 December31,2020 0.08%~2.30% 0.10%~2.30% VALUE THROUGH PROFIT OR LOSS	December31,2020
	(FVTPL) Financial assets mandatorily classified as at FVTPL Derivative financial liabilities (not under hedge accounting) －Foreign exchange forward contracts Non-derivative financial assets －Domestic listed shares －Foreign unlisted shares －Mutual funds －Beneficiary securities Subtotal Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) －Foreign exchange forward contracts	December31,2021 $ 1,037 73,438 - 562,034 59,466 694,938 $ 695,975 $ -	December31,2020
				$ 431 - - 300,185 60,808 360,993 $ 361,424 $ 434

At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

December 31, 2021 Sell December 31, 2020 Sell	Currency USD/NTD USD/NTD	MaturityDate 2022.01. 13- 2022.03.21 2021.01. 18- 2021.02.22	Notional Amount(In Thousands)
			USD 7,340 /TWD 204,227 USD 6,000 /TWD 170,073

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. As these contracts did not meet the criteria of hedge accounting, and therefore, the Group did not apply hedge accounting treatments for these derivative contracts.

The net gain arising from financial assets at FVTPL for the years ended December 31, 2021 and 2020 was $8,818 thousand and $27,750 thousand, respectively. The net loss arising from

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financial liabilities at FVTPL for the years ended December 31, 2021 and 2020 was $2,499 thousand and $4,299 thousand, respectively.

8. Financial assets at fair value through other comprehensive income - non-current

Investments in equity instruments Domestic investments Listed ordinary shares - USI Corporation Unlisted ordinary shares - Harbinger Venture Capital Corp. Subtotal Foreign investments Unlisted ordinary shares －Budworth Investment Ltd	December31,2021 $ 476,718 7 476,725 6 $ 476,731	December31,2020	December31,2020
			$ 341,484 7 341,491 6 $ 341,497

These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

－ 9. FINANCIAL ASSETS AT AMORTIZED COST CURRENT

Pledged deposits (a) Pledged time deposits (b)	December31,2021 $ 3,000 809 $ 3,809	December31,2020	December31,2020
			$ 3,000 - $ 3,000

a. As of December 31, 2021 and 2020, the market interest rate of pledged deposits were both 0.37% to 0.69% per annum.
b. As of December 31, 2021, the range of market interest rates on the pledged time deposits was 0.35% per annum.
c. Refer to Note 31 for information related to the pledged financial assets at amortized cost.

10. Notes Receivable, Accounts Receivable, and Other Receivables

Notes Receivable, Accounts Receivable, and	Other Receivables
Notes receivable (a) Notes receivable - operating Accounts receivable (a) Amortized cost Gross carrying amount Less: Allowance for impairment loss Accounts receivable from related parties (a) (Note 30) Other receivables (b) VAT refund receivables	December31,2021 $ 255,365 $ 2,268,566 ( 55,417) $ 2,213,149 $ - $ 88,943	December31,2020
	(	(	$ 342,964 $ 1,932,281 57,144) $ 1,875,137 $ 27 $ 48,661

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Interest receivable Others Other receivables from related parties (Note 31)	18,334 5,509 $ 112,786 $ 3,536	16,300 512 $ 65,473 $ 1,748

a. Notes receivable and accounts receivable

The average credit period of sales of goods is 30-180 days. No interest is charged on receivables. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. For part of the accounts receivable, the Group entered into a credit insurance contract or obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. Before accepting new customers, the Group takes customer evaluation results generated by the internal system into consideration to measure the potential customer’s credit quality and define the customer’s credit limit. Customer credit limits and ratings are reviewed periodically. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of accounts receivable based on the Group’s provision matrix.

provision matrix.
December 31, 2021 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2020 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Credit Rating A $ 2,148 - $ 2,148 Credit Rating A $ - - $ -	Credit Rating B $ 478,933 - $ 478,933 Credit Rating B $ 674,241 - $ 674,241	Credit Rating C $ 76,787 ( 220) $ 76,567 Credit Rating C $ 122,001 ( 122) $ 121,879	Others $ 1,966,063 ( 55,197) $ 1,910,866 Others $ 1,479,030 ( 57,022) $ 1,422,008	Total
					$ 2,523,931 ( 55,417) $ 2,468,514 Total
					$ 2,275,272 ( 57,144) $ 2,218,128

The movements of the loss allowance of accounts receivable were as follows:

For the Year Ended For the Year Ended December 31, 2021 December 31, 2020

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Balance at January 1		$ 57,144		$ 63,625
Remeasurement of loss allowance	(	1,697 )	(	5,334 )
Amounts written off		-	(	1,170 )
Foreign exchange gains and losses	(	30)		23
Balance at December 31		$ 55,417		$ 57,144

The aging of receivables (including related parties) was as follows: December31,2021 Not Past Due $ 2,423,669 Past due within 60 days 45,448 Past due over 60 days 54,814 Total $ 2,523,931	December31,2020	December31,2020
		$ 2,197,025 23,121 55,126 $ 2,275,272

The above aging schedule was based on the number of days past due from the end of the credit term.

As of December 31, 2021 and 2020, except for specific customer’s accounts receivable exceeded 16% of the total amount of all receivables, none of other customer’s receivables exceeded 10% of the total amount of all receivables. The concentration of credit risk is limited because the Group’s customer base is vast and unrelated to each other.

b. Other receivables

As of December 31, 2021 and 2020, the Group assessed the impairment loss of other receivables using expected credit losses.

11. Inventories

Inventories
Finished goods Work in process Raw materials Production supplies Inventory in transit	December31,2021 $ 354,900 105,084 507,441 38,133 180,201 $ 1,185,759	December31,2020
			$ 265,382 62,258 233,411 31,609 148,192 $ 740,852

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $17,385,170 thousand and $12,353,031 thousand, respectively.

The cost of goods sold included write-down of $2,005 thousand and reversal of inventory writedown of $359 thousand, which resulted from inventory closeout, for the years ended December 31, 2021 and 2020, respectively.

12. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements

The entities included in the consolidated financial statements:

Investor Company The Company TAITA（BVI）	Name of Subsidiary TAITA (BVI) Holding Co., Ltd.（TAITA(BVI)） Taita Chemical (Zhongshan) Co., Ltd. (“TTC (ZS)”) Taita Chemical (Tianjin) Co., Ltd. (“TTC (TJ)”)	Nature of Activities Reinvestment Production and marketing of polystyrene derivatives Production and marketing of polystyrene derivatives	% of Ownership December 31,2021 December 31,2020 100% 100% 100% 100% 100% 100%	Remar k
			December 31,2021
			100% 100% 100%	1. 2. 3.

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a. In order to strengthen the operational capital of TAITA (BVI) and improve its financial structure, on November 3, 2020, the Board of Directors of the Company resolved to increase the Company's investment in TAITA (BVI) by US$28,000 thousand in cash, and as of December 31, 2021, the Company's accumulated investment in TAITA (BVI) amounted to US$89,738 thousand.
b. As of December 31, 2021, the amount invested in TTC (ZS) was US$43,000 thousand. TTC (ZS) distributed share dividends of US$3,250 thousand from retained earnings in 2007. As of December 31, 2021, the capital of TTC (ZS) was US$46,250 thousand. TTC (ZS) has resolved the earnings distribution from 2007 to 2020 in the amount to RMB 306,950 thousand at the board meeting held on October 14, 2021 and all the earnings have been distributed on March 8, 2022.
c. As of December 31, 2021, the amount invested in TTC (TJ) was US$26,000 thousand. TTC (TJ) distributed share dividends of US$1,350 thousand from retained earnings in 2012. As of December 31, 2021, the capital of TTC (TJ) was US$27,350 thousand. Due to the shrinking demand in the local market, the management decided to suspend TTC (TJ)’s production in from April 2019.
d. On December 3, 2020, the Board of Directors of the Company resolved to establish Zhangzhou Taita Chemical Company Ltd. (TTC (ZZ)) with a capital contribution of RMB314,000 thousand from TAITA (BVI). The main business of TTC (ZZ) is the production and sale of EPS. The establishment of TTC (ZZ) was registered on June 28, 2021 and TAITA (BVI) injected RMB306,950 thousand into TTC (ZZ) on March 8, 2022.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

December31,2021 Associates that are not individually material Listed company China General Plastics Corporation (“CGPC”) $ 221,245 Acme Electronics Corporation (“ACME”) 32,429 Unlisted company China General Terminal & Distribution Corporation (“CGTD”) 373,731 ACME Electronics (Cayman) Corp. （ACME (Cayman)） 66,405 $ 693,810 Aggregate information of associates that are not individually material For the Year Ended December31,2021 The Group’s share of: Profit from continuing operations $ 74,888 Other comprehensive gain (loss) 33,993 Total comprehensive (loss) income for the year $ 108,881	December31,2021 Associates that are not individually material Listed company China General Plastics Corporation (“CGPC”) $ 221,245 Acme Electronics Corporation (“ACME”) 32,429 Unlisted company China General Terminal & Distribution Corporation (“CGTD”) 373,731 ACME Electronics (Cayman) Corp. （ACME (Cayman)） 66,405 $ 693,810 Aggregate information of associates that are not individually material For the Year Ended December31,2021 The Group’s share of: Profit from continuing operations $ 74,888 Other comprehensive gain (loss) 33,993 Total comprehensive (loss) income for the year $ 108,881	December31,2020 $ 192,320 31,514 315,711 65,093 $ 604,638 For the Year Ended December31,2020 $ 56,841 36,963 $ 93,804	December31,2020 $ 192,320 31,514 315,711 65,093 $ 604,638 For the Year Ended December31,2020 $ 56,841 36,963 $ 93,804	December31,2020 $ 192,320 31,514 315,711 65,093 $ 604,638 For the Year Ended December31,2020 $ 56,841 36,963 $ 93,804

The Group’s share of: Profit from continuing operations Other comprehensive gain (loss) Total comprehensive (loss) income for the year
				$ 56,841 36,963 $ 93,804

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The group’s ownership interest and percentage of voting right in associate at the end of the reporting period were as follows:

Name of Associates CGPC ACME CGTD ACME（Cayman）	December31,2021 1.98% 2.43% 33.33% 5.39%	December31,2020 1.98% 2.43% 33.33% 5.39%

Refer to Table 6 “Information on Investees” for the nature of activities, principal places of business and countries of incorporation of the associates.

The Group with its affiliates jointly held more than 20% of the shareholdings of CGPC, ACME, ACME (Cayman) had significant influence over each entity. Therefore, the Group adopted the equity method to evaluate the above investments.

The Group formerly held 10% of shares of Thintec Materials Corporation (“TMC”) Since the Group and its affiliates jointly owned 95.8% of TMC’s shares, the Group adopted the equity method to evaluate the above investments. As TMC essentially has no production and sales business in recent years, the Board of Directors of TMC resolved on April 12, 2019 to conduct dissolution and liquidation starting from May 25, 2019 (dissolution date). The Group has recovered $1,274 thousand in May 2020 from the remaining property and recognized the investment disposal loss of of $173 thousand after TMC has completed dissolution and liquidation procedures in July, 2020. In February 2021, TMC received a refund of tax from the Taipei Bureau of Internal Revenue, Ministry of Finance, and in April 2021, the Group recovered $153 thousand in proportion to its shareholding before liquidation and recognized it as other income.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

summarized as follows:
Name of Associates CGPC ACME	December31,2021 $ 399,611 $ 237,809	December31,2020 $ 279,130 $ 84,011
			$ 279,130 $ 84,011

Except ACME and ACME (Cayman) whose financial statements were not audited by CPAs, the profit or loss of associates and joint ventures using the equity method and the share of other comprehensive income were recognized based on associates’ financial statements audited by CPAs in the same period. However, the Group's management considered that there was no material impact arising from ACME and ACME (Cayman)'s unaudited financial statements.

14. Property, plant and equipment

Cost BALANCE AT JANUARY 1, 2020 Additions Disposals Internal transfers Effect of foreign currency exchange differences Balance at December 31, 2020 Accumulated depreciation and impairment BALANCE AT JANUARY 1, 2020 Disposals Depreciation expenses Impairment losses Effect of foreign currency exchange differences Balance at December 31, 2020		Freehold Land		Buildings	Machinery and Equipment	Machinery and Equipment	Transportation Equipment	Transportation Equipment		Other Equipment	C	onstruction in Progress		Total
		$ 634,432 - - - - $ 634,432 $ - - - - - $ -	( (	$ 1,301,954 - 10,624 ) 1,817 6,529 $ 1,299,676 $ 905,030 9,573 ) 41,553 - 4,628 $ 941,638	( (	$ 4,806,079 4,657 393,223 ) 57,999 3,237 $ 4,478,749 $ 3,726,138 374,178 ) 144,091 19,891 1,456 $ 3,517,398	( (	$ 47,870 - 5,727 ) 96 300 $ 42,539 $ 35,390 4,773 ) 2,803 - 179 $ 33,599	( (	$ 359,701 1,075 22,834 ) 11,021 452 $ 349,415 $ 332,892 21,868 ) 9,522 568 289 $ 321,403	(	$ 24,306 133,074 - 70,933 ) 484 $ 86,931 $ 33 - - 1,619 9 $ 1,661	( (	$ 7,174,342 138,806 432,408 ) - 11,002 $ 6,891,742 $ 4,999,483 410,392 ) 197,969 22,078 6,561 $ 4,815,699

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Carrying amounts at December 31, 2020 Cost Balance at January 1, 2021 Additions Disposals Internal transfers Effect of foreign currency exchange differences Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Disposals Depreciation expenses Impairment losses Effect of foreign currency exchange differences Balance at December 31, 2021 Carrying amounts at December 31, 2021		Freehold Land		Buildings	Machinery and Equipment	Machinery and Equipment	Transportation Equipment $ 8,940 $ 42,539 12 ( 700 ) 141 ( 96) $ 41,896 $ 33,599 ( 700 ) 2,666 - ( 52) $ 35,513 $ 6,383	Transportation Equipment $ 8,940 $ 42,539 12 ( 700 ) 141 ( 96) $ 41,896 $ 33,599 ( 700 ) 2,666 - ( 52) $ 35,513 $ 6,383		Other Equipment $ 28,012 $ 349,415 1,091 6,443 ) 10,417 268) $ 354,212 $ 321,403 6,067 ) 7,531 - 200) $ 322,667 $ 31,545		Construction in Progress		Total
		$ 634,432 $ 634,432 - - - - $ 634,432 $ - - - - - $ - $ 634,432	( ( ( (	$ 358,038 $ 1,299,676 - 2,456 ) 6,012 2,312) $ 1,300,920 $ 941,638 2,317 ) 38,398 - 1,625) $ 976,094 $ 324,826	( ( ( (	$ 961,351 $ 4,478,749 5,623 122,109 ) 107,960 3,328) $ 4,466,895 $ 3,517,398 121,895 ) 145,351 39 2,675) $ 3,538,218 $ 928,677		$ 8,940 $ 42,539 12 700 ) 141 96) $ 41,896 $ 33,599 700 ) 2,666 - 52) $ 35,513 $ 6,383	( ( ( (		( ( (	$ 85,270 $ 86,931 121,127 - 124,530 ) 152) $ 83,376 $ 1,661 - - - 9) $ 1,652 $ 81,724	( ( ( (	$ 2,076,043 $ 6,891,742 127,853 131,708 ) - 6,156) $ 6,881,731 $ 4,815,699 130,979 ) 193,946 39 4,561) $ 4,874,144 $ 2,007,587

The management stopped the production of TAITA (TJ) in April 2019 as a result of the reduction in demand of EPS, which is the main product of Taita Chemical (Tianjin) Co., Ltd. (“TAITA (TJ)”) in the local market. TAITA (TJ) determined the recoverable amount of the property, plant and equipment, including right-of-use assets, on the basis of their fair value less cost of disposal and the fair value was measured by a third-party valuation expert with Level 3 inputs for the years ended December 31, 2021 and 2020. The valuation was based on the revaluation of the replacement cost and useful lives of each item of the above items of property, plant and equipment and results showed that the recoverable amount was lower than the carrying amount. The valuation led TAITA (TJ) to recognize impairment losses of $39 thousand and $22,078 thousand, which were recognized in operating costs for the year ended December 31, 2021 and 2020. Fair value from valuation are as follows:

Factories and right-of-use assets Equipment	December31,2021 $ 266,579 $ 2,086	December31,2020 $ 275,409 $ 2,689	December31,2020 $ 275,409 $ 2,689
			$ 275,409 $ 2,689

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings

Buildings
		20, 30, 35, 40 and 55
Factories		years
Offices and laboratories		26-35 Years
Storage rooms		20-25 Years
Storage tank rooms		8-20 Years
Others		2-9 Years
Machinery and equipment
Environmental	protection	15-20 Years
equipment
Monitoring equipment		11-15 Years
Storage tank and pipeline systems		10-15 Years
Production and	packaging	8-15 Years
equipment
Power systems		7-15 Years
Others		2-8 Years
Transportation equipment		5-15 Years
Other equipment		2-15 Years

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Part of the property, plant and equipment pledged as collateral for bank borrowing are set out in Notes 18 and 31.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

Right-of-use assets
Carrying amounts Land Depreciation charge for right-of-use assets Land	December31,2021 $ 73,370 For the Year Ended December31,2021 $ 5,803	December31,2020
		$ 79,351 For the Year Ended December31,2020
			$ 5,788

Except for the recognition of depreciation expenses, there was no significant increase, sublease or impairment of the Group’s right-of-use assets for the years ended December 31, 2021 and 2020. Part of the land use rights pledged as collateral for bank borrowing are set out in Notes 18 and 31.

b. Lease liabilities

Lease liabilities
December31,2021 Carrying amounts Current $ 4,564 Non-current $ 38,374 The discount rate for lease liabilities was as follows: December31,2021 Land 1.10%	December31,2020
	$ 4,514 $ 42,938 December31,2020
	1.10%

The Group leases land in Linyuan to build factories from related party. When rental period ends, the Group has no bargain purchase price option for the land leased. Transactions with related parties are set out in Notes 30.

c. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties and freehold property, plant and equipment are set out in Note 16.

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended December31,2021 $ 15,336 $ 17 $ 20,366	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 15,666 $ 153 $ 20,832

The Group leases certain office equipment, machinery equipment, transportation equipment which qualify as short-term leases and certain other equipment which qualify

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as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

16. INVESTMENT PROPERTIES, NET

INVESTMENT PROPERTIES, NET
Land	December31,2021 $ 108,178	December31,2020
			$ 108,178

Management was unable to reliably measure the fair value of investment properties located in Qianzhen District, Xingbang Section and Linyuan Industrial Park, because the fair value for comparable properties is inactive and alternative reliable measurements of fair value are not available. Therefore, the Group concluded that the fair value of the investment properties is not reliably measurable.

The property located in Qianzhan District has been leased to CGTD. The rental was $1,628 thousand per month, which is based on the actual usable area. Refer to Notes 25 and 30.

Part of above investment properties pledged as collateral for bank borrowing are set out in Notes 18 and 31.

17. INTANGIBLE ASSETS

Carrying amount by function Information systems Design expenses for factories	December31,2021 $ 493 3,601 $ 4,094	December31,2020	December31,2020
			$ 205 5,201 $ 5,406

Intangible assets are amortized on a straight-line over their estimated useful lives as follows: Information systems 3-5 Years Design expenses for factories 10 years

18. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Line of credit borrowings	December31,2021 $ 350,000	December31,2020	December31,2020
			$ 150,000

The range of interest rates on line of credit borrowings was 0.52%-0.74% and 0.52% per annum as of December 31, 2021 and 2020, respectively.

TTC (ZS) entered into a short-term financing contract with Bank of China Limited to increase working capital. The credit limit was RMB100,000 thousand and matured on April 30, 2019. The contract was extended to April 30, 2022. Refer to property, plant and equipment and land use rights pledged as collateral in Notes 14, 15 and 31. As of December 31, 2021 and 2020, TTC (ZS) has not borrowed from the bank.

b. Long-term borrowings

Unsecured borrowings Credit loans	December31,2021 $ 300,000	December31,2020	December31,2020
			$ 300,000

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The range of interest rates on long-term borrowings were as follows: December 31, 2021 December 31, 2020 Credit loans 0.81% 0.90%

In order to fund medium to long-term working capital needs, the Group signed medium to long-term loan agreements with banks with total lines of credit of $2,000,000 thousand. The loan agreements will subsequently expire before August 2024 and these lines of credit are used cyclically during the validity period. As of December 31, 2021, $300,000 thousand has been utilized. The Group provided lands and factories pledged as collateral for some long-term loan agreements (refer to Notes 14, 16 and 31).

Some of the Group's loan agreements stipulate that the current ratio and debt ratio as stated on the financial statements shall not be less than a specified percentage, and that if such a percentage fails to be met, the Group shall propose improvement measures to the banks concerned. As of December 31, 2021, the Group did not violate these financial ratios and terms.

19. Accounts payable

Accounts payable
Accounts payable (including related parties) Arising from operation (Note 30)	December31,2021 $ 1,029,504	December31,2020
			$ 1,180,101

The average payment period for the Group’s accounts payable is between 30 and 45 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

20. OTHER PAYABLES

Payables for salaries or bonuses Payables for freight fees Payables for utilities Payables for professional service expenses Payables for equipment Payables for insurance Payables for taxes Others	December31,2021 $ 219,918 113,422 29,337 9,651 9,607 8,922 3,613 35,110 $ 429,580	December31,2020	December31,2020
			$ 234,239 65,583 27,271 11,709 9,957 9,491 12,671 37,852 $ 408,773

21. REFUND PROVISIONS

REFUND PROVISIONS
Customer returns and rebates Balance at January 1, 2020 Provision for the current period Returns and rebates for the current period Balance at December 31, 2020	December31,2021 $ 897 For the Year Ended December31,2021 $ 879 6,944 ( 6,926) $ 897	December31,2020
		$ 879 For the Year Ended December31,2020
	(	(	$ 909 7,576 7,606) $ 879

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The refund provision is based on management’s judgments and other known reasons for which estimated product returns and rebates may occur for the year ended. The provision is recognized as a reduction of operating income in the periods in which the related goods are sold.

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The employees of the Group’s subsidiary, TTC (ZS) , in mainland China is the member of a state-managed retirement benefit plans operated by the government of mainland China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit schemes to fund the benefits. The only obligation of the Group with respect to the retirement benefit plans is to make the specified contributions.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Law is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. Since November 1986, the Company contributed a specific rate (currently 12%) of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

December31,2021 December31,2020 Present Value of Defined Benefit Obligation $ 543,761 $ 593,645 Fair Value of Plan Assets (357,342) (391,849) Net defined benefit liabilities $ 186,419 $ 201,796 Movements in net defined benefit liabilities were as follows: Present Value of Defined Benefit Obligation Fair Value of Plan Assets Net defined benefit liabilities BALANCE AT JANUARY 1, 2020 $ 632,201 ($ 402,287) $ 229,914 Service cost Current service cost 4,609 - 4,609 Net interest expense (income) 3,826 ( 2,461) 1,365 Recognized in Profit or Loss 8,435 ( 2,461) 5,974 Remeasurement Return on plan assets (excluding amounts included in net interest) $ - ( $ 14,814 ) ( $ 14,814 ) Actuarial loss	December31,2020	December31,2020	December31,2020
		(	$ 593,645 391,849) $ 201,796 Net defined benefit liabilities

			$ 229,914 4,609 1,365 5,974 ( $ 14,814 )

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－Changes in financial
assumptions		10,288		-		10,288
－Experience adjustments		6,026		-		6,026
Recognized in other comprehensive
income		16,314	(	14,814)		1,500
Contributions from the employer		-	(	35,592 )	(	35,592 )
Benefits paid on plan assets	(	63,305)		63,305		-
Balance at December 31, 2020		$ 593,645	($	391,849)		$ 201,796
Balance at January 1, 2021		$ 593,645	($	391,849)		$ 201,796
Service cost
Current service cost		3,949		-		3,949
Net interest expense (income)		2,184	(	1,476)		708
Recognized in Profit or Loss		6,133	(	1,476)		4,657
Remeasurement
Return on plan assets (excluding
amounts included in net interest)		-	(	5,646 )	(	5,646 )
Actuarial loss
－Changes in demographic
assumptions		12,124		-		12,124
－Changes in financial
assumptions	(	4,379 )		-	(	4,379 )
－Experience adjustments		8,787		-		8,787
Recognized in Other Comprehensive
Income		16,532	(	5,646)		10,886
Contributions from the employer		-	(	29,142 )	(	29,142 )
Benefits paid on plan assets	(	70,771 )		70,771		-
Provisions	(	1,778)		-	(	1,778)
Balance at December 31, 2021		$ 543,761	($	357,342)		$ 186,419

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

benefit plans is as follows:
Cost of goods sold Selling and marketing expenses General and administrative expenses Research and development expenses	For the Year Ended December31,2021 $ 3,925 261 346 125 $ 4,657	For the Year Ended December31,2020
			$ 4,841 461 495 177 $ 5,974

Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic or foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate of a 2-year time deposit with local banks.
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2) Interest risk: A decrease in government bond interest rates will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

actuarial valuations were as follows:
Discount rate Expected rate of salary increase	December31,2021 0.500% 2.250%	December31,2020
		0.375% 2.250%

If possible reasonable changes in each of the significant actuarial assumptions were to occur and all other assumptions were to remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease	December31,2021 ($ 8,781) $ 9,027 $ 8,718 ($ 8,526)	December31,2020	December31,2020
	( (	( (	$ 10,289) $ 10,585 $ 10,208 $ 9,975)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that changes in the assumptions would occur in isolation of one another as some of the assumptions may be correlated.

The Company expects to make contributions of $20,000 thousand and $25,900 thousand to the defined benefit plans in the next year starting from December 31, 2021 and 2020, respectively. The weighted average duration of the defined benefit obligation are 6.6 and 7.1 years, respectively.

23. EQUITY

a. Ordinary shares

Ordinary shares
Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	December31,2021 400,000 $ 4,000,000 378,654 $ 3,786,541	December31,2020
			400,000 $ 4,000,000 344,231 $ 3,442,310

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

b. Capital surplus
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Capital surplus which arises from the consideration received from issuance of shares (including consideration from issuance of ordinary shares) and donations may be used to offset a deficit, in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

Capital surplus arising from unpaid dividends due to overdue may be used to offset a deficit only. Capital surplus arising from investments in subsidiaries and associates accounted for using the equity method may not be used for any purpose.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors after the amendment, refer to employees’ compensation and remuneration of directors in Note 26-h.

According to the provisions of the Company’s Articles, the Company in order to take R&D needs and diversification of operations into consideration, dividends shall not be less than 10% of the distributable earnings in the current year, of which the cash dividends shall not be less than 10% of the total dividends. However, if the distributable retained earnings per share of the current year are less than $0.1, the retained earnings are not to be distributed.

An appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1090150022 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2020 and 2019 approved in the shareholders’ meetings on July 26, 2021 and June 18, 2020, respectively, were as follows:

Legal reserve Cash dividends Share dividends	Appropriation of Earnings For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 $ 191,925 $ 39,764 688,462 100,261 344,231 100,262	Dividends PerShare(NT$)	Dividends PerShare(NT$)
	For the Year Ended December 31, 2020 $ 191,925 688,462 344,231	For the Year Ended December 31,2020 $ 2.0 1.0	For the Year Ended December 31,2019
			$ 0.3 0.3

The appropriation of earnings for 2021 had been proposed by the Company’s board of directors on March 9, 2022 were as follows:

Legal reserve Cash dividends	Appropriation of Earnings $ 184,098 757,308	Dividends Per Share(NT$)
		$ - 2.0

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0.5

Share dividends

189,327

The appropriation of earnings for 2021 is subject to resolution in the shareholders’ meeting to be held on May 27, 2022.

d. Special reserve

Special reserve	Special reserve	Special reserve
The Company reserved a special reserve on the first-time adoption of IFRSs as follows: December31,2021 December31,2020 Special reserve $ 308,061 $ 308,061
		$ 308,061

The Company’s amount of unrealized revaluation gain and cumulative adjustments transferred into retained earnings were $279,270 thousand and $160,233 thousand, respectively. The increase in retained earnings arising from the first-time adoption of IFRSs was not sufficient for the special reserve appropriation; thus, the Company appropriated a special reserve in the amount of $308,061 thousand which was the net increase of retained earnings arising from the first-time adoption of IFRSs. December 31, 2021, there was no change in the special reserve.

e. Other equity items
1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1, 2020 Recognized for the year Exchange differences on translating the financial statements of foreign operations Share from associates accounted for using the equity method Related income tax Balance at December 31, 2020	For the Year Ended December31,2021 ( $ 125,641 ) ( 20,716 ) ( 2,734 ) 4,559 ($ 144,532)	For the Year Ended December31,2020
		( $ 194,326 ) 85,673 160 (17,148) ($ 125,641)

Exchange differences on translating net assets of foreign operations are translated into the presentation currency, the New Taiwan dollar. The resulting currency translation differences are recognized in other comprehensive income as exchange differences on translating the financial statements of foreign operations in the respective period.

2) Unrealized gain (loss) on financial assets at FVTOCI

Balance at January 1, 2020 Recognized for the year Unrealized Gain (Loss) Equity instruments Share from associates accounted for using the equity method Balance at December 31, 2020	For the Year Ended December31,2021 $ 321,627 135,234 36,974 $ 493,835	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 153,260 132,192 36,175 $ 321,627

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24. REVENUE

REVENUE
Revenue from contracts with customers Revenue from sale of goods	For the Year Ended December31,2021 $ 20,771,165	For the Year Ended December31,2020
			$ 15,498,381

Refer to Note 4 for description related to contracts with customers. Refer to Note 35 for revenue of major products and operation results.

25. PROFIT BEFORE INCOME TAX

Net profit before income tax includes the following:

a. Interest income

Interest income
Cash and cash equivalents Financial assets at FVTPL (Note 7) Financial assets at amortized cost (Note 9) Others	For the Year Ended December31,2021 $ 40,611 1,098 17 127 $ 41,853	For the Year Ended December31,2020
			$ 30,725 1,312 835 180 $ 33,052

b. Other income

Other income
Rental income - operating lease (Notes 16 and 30) Dividend income Others	For the Year Ended December31,2021 $ 44,356 19,077 7,963 $ 71,396	For the Year Ended December31,2020
			$ 37,695 7,555 9,639 $ 54,889

c. Other gains and losses

Gain on financial assets at FVTPL (Note 7) Loss on financial assets at FVTPL (Note 7) Net foreign exchange losses Loss on disposal and retirement of property, plant and equipment (Note 14) Expenses from rental assets Others	For the Year Ended December31,2021 $ 3,753 ( 2,499 ) ( 15,349 ) ( 729 ) ( 6,484 ) ( 1,594) ($ 22,902)	For the Year Ended December31,2020
		$ 26,438 ( 4,299 ) ( 55,673 ) ( 19,635 ) ( 8,458 ) ( 1,626) ($ 63,253)

d. Foreign exchange losses
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Total foreign exchange gains Total foreign exchange losses Net loss	For the Year Ended December31,2021 $ 115,211 (130,560) ($ 15,349)	For the Year Ended December31,2020	For the Year Ended December31,2020
	( (	( (	$ 41,354 97,027) $ 55,673)

e. Finance costs

Finance costs
Interest on bank loans Interest on lease liabilities (Note 30) Less: Capitalized interest (included in construction in progress)	For the Year Ended December31,2021 $ 4,785 499 ( 121) $ 5,163	For the Year Ended December31,2020
	(	(	$ 20,570 550 117) $ 21,003

Information about capitalized interest is as follows: For the Year Ended December31,2021 Capitalized interest $ 121 Capitalization rate 0.80%~0.90% Depreciation and amortization For the Year Ended December31,2021 Property, plant and equipment (Note 14) $ 193,946 Right-of-use assets (Note 15) 5,803 Intangible assets (Note 17) 1,752 Total $ 201,501 An analysis of depreciation by function Cost of goods sold $ 188,773 Operating expenses 7,604 Other gains and losses 3,372 $ 199,749 An analysis of amortization by function Cost of goods sold $ 1,600 General and administrative expenses 152 $ 1,752	For the Year Ended December31,2020	For the Year Ended December31,2020
	$ 117 0.90%~1.05% For the Year Ended December31,2020
		$ 197,969 5,788 2,042 $ 205,799 $ 190,556 7,857 5,344 $ 203,757 $ 1,600 442 $ 2,042

f. Depreciation and amortization

g. Employee benefits expense
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For the Year Ended For the Year Ended December 31, 2021 December 31, 2020

Post-employment benefits (Note 22) Defined contribution plans Defined benefit plans Insurance expenses Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Cost of goods sold Operating expenses	$ 21,443 4,657 26,100 36,111 633,917 $ 696,128 $ 565,078 131,050 $ 696,128	$ 14,835 5,974 20,809 32,798 647,015 $ 700,622 $ 561,807 138,815 $ 700,622

Due to the impact of COVID-19, TTC (ZS)’s contributions of pension, unemployment and work injury insurance were exempted from February to December 2020 in accordance with the local government's announcement.

h. Employees’ compensation and remuneration of directors

According to Articles of Incorporation of the Company, the Company accrued employees’ compensation and remuneration of directors at the rates of no less than 1% and no higher than 1%, respectively. However, the Company’s accumulated deficits should be offset in advance. The employees’ compensation can be distributed in the form of shares or cash. When the employees of the Company’s subsidiaries meet specific requirements they are also entitled to receive compensation in shares or cash. These requirements are set by the board of directors.

The employees’ compensation and remuneration of directors for the years ended December 31, 2021 and 2020, which were approved by the Company’s board of directors on March 9, 2022 and March 5, 2021, respectively, were as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31,2021 Accrual Rate Amount 1% $ 23,534 - $ -	For the Year Ended December 31,2021 Accrual Rate Amount 1% $ 23,534 - $ -	For the Year Ended December 31,2020	For the Year Ended December 31,2020	For the Year Ended December 31,2020
	Accrual Rate 1% -		Accrual Rate 1% -		Amount
					$ 22,812 $ -

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2020 and 2019.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

26. Income Tax

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a. Major components of income tax expense recognized in profit or loss were as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior years Deferred tax In respect of the current year Adjustments for prior years Income tax expense recognized in profit or loss	For the Year Ended December31,2021 $ 480,192 34,731 ( 1,287) 513,636 43,538 338 43,876 $ 557,512	For the Year Ended December31,2020	For the Year Ended December31,2020
	(	( (	$ 534,917 7,867 2,536) 540,248 22,101 178) 21,923 $ 562,171

A reconciliation of accounting profit and income tax expense is as follows:

Profit before income tax Income tax expense calculated at the statutory rate Nondeductible expenses in determining taxable income Tax-exempt income Income tax on unappropriated earnings Unrecognized deductible temporary differences Unrecognized loss carryforwards Adjustments for prior years Others Income tax expense recognized in profit or loss	For the Year Ended December31,2021 $ 2,407,444 $ 537,520 909 ( 17,235 ) 34,731 ( 2,546 ) 5,080 ( 949 ) 2 $ 557,512	For the Year Ended December31,2020
		$ 2,481,989 $ 664,968 1,103 ( 14,974 ) 7,867 ( 80,505 ) ( 12,794 ) ( 2,714 ) ( 780) $ 562,171

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year －Exchange differences on translating the financial statements of foreign operations －Remeasurement of defined benefit plans Income tax recognized in other comprehensive income	For the Year Ended December31,2021 $ 4,559 2,177 $ 6,736	For the Year Ended December31,2020
		( $ 17,148 ) 300 ($ 16,848)

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c. Current income tax assets and liabilities

urrent income tax assets and liabilities
Current tax liabilities Income tax payable	December31,2021 $ 456,961	December31,2020
			$ 392,544

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the Year Ended December 31, 2021

Deferred tax assets Temporary differences Allowance for inventory valuation Allowance for impaired receivables Unrealized foreign exchange losses Defined benefit plans Payables for annual leave Unrealized net gain on sale of goods Others Deferred tax liabilities Temporary differences Exchange differences on translating the financial statements of foreign operations Share of profit of foreign subsidiaries accounted for using the equity method Differences on depreciation between finance and tax Reserve for land revaluation increment tax Others		Opening Balance $ 896 11,018 7,070 40,012 4,024 - 1,562 $ 64,582 $ 9,055 17,472 348 143,860 - $ 170,735	Recognized in Profit or Loss $ 449 ( 1,413 ) ( 328 ) ( 5,252 ) ( 118 ) 5,628 ( 6 ) ($ 1,040) $ - 42,257 ( 65 ) - 644 $ 42,836	Recognized in Other Comprehensi ve Income $ - - - 2,177 - - - $ 2,177 ( $ 4,559 ) - - - - ($ 4,559)	Exchange Differences $ 2 ( 18 ) - - - - - ($ 16) $ - - - - - $ -		Closing Balance
							$ 1,347 9,587 6,742 36,937 3,906 5,628 1,556 $ 65,703 $ 4,496 59,729 283 143,860 644 $ 209,012

For the Year Ended December 31, 2020

Deferred tax assets Temporary differences Allowance for inventory valuation Allowance for impaired receivables Unrealized foreign exchange losses Defined benefit plans Payables for annual leave Exchange differences on translating the financial	Balance at January 1, 2020 $ 968 11,287 5,869 45,635 4,293 8,093	Recognized in Profit or Loss ( $ 73 ) ( 317 ) 1,201 ( 5,923 ) ( 269 ) -	Recognized in Other Comprehensi ve Income $ - - - 300 - ( 8,093 )	Exchange Differences $ 1 48 - - - -	Balance at December 31, 2020
					$ 896 11,018 7,070 40,012 4,024 -

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statements of foreign operations Others Deferred tax liabilities Temporary differences Exchange differences on translating the financial statements of foreign operations Share of profit of foreign subsidiaries accounted for using the equity method Differences on depreciation between finance and tax Reserve for land revaluation increment tax Others	1,397 165 $ 77,542 ($ 5,216) ( $ - $ - - 17,472 504 ( 156 ) 143,860 - 609 ( 609) $ 144,973 $ 16,707	- $ 7,793) $ 9,055 - - - - $ 9,055	- $ 49 $ - - - - - $ -	1,562
				$ 64,582
				$ 9,055 17,472 348 143,860 -
				$ 170,735

e. Deductible temporary differences and unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets

Loss carryforwards Expiry in 2021 Expiry in 2022 Expiry in 2023 Expiry in 2024 Expiry in 2026 Deductible temporary differences －Impairment losses from accounts receivable －Impairment loss of property, plant and equipment －Others	December31,2021 $ - 62,532 124,213 124,333 20,327 $ 331,405 $ 65,123 84,735 1,296 $ 151,154	December31,2020	December31,2020
			$ 139,745 62,532 124,213 124,333 - $ 450,823 $ 68,236 95,126 1,609 $ 164,971

f. Income tax assessments

The Company’s income tax returns through 2019 have been assessed by the tax authorities.

g. Income tax related to subsidiaries were as follows:
1) TTC (BVI) had no income tax expense due to the relevant tax exemptions in compliance with the regulations of the location where it was established for the years ended December 31, 2021 and 2020.
2) TTC (ZS) and TTC (TJ), both located in mainland China, use the applicable income tax rate of 25%.

27. EARNINGS PER SHARE

Unit: NT$ Per Share For the Year Ended For the Year Ended December 31, 2021 December 31, 2020

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Basic earnings per share Diluted earnings per share	$ 4.89 $ 4.88	$ 5.07 $ 5.06

In calculating earnings per share, the impact of share dividend distribution has been adjusted retrospectively. The record date of new share issuance is set on September 10, 2021. Due to retrospective adjustment, the changes in basic and diluted earnings per share are as follows:

Unit: NT$ Per Share

		Unit: NT$ Per Share	Unit: NT$ Per Share
Basic earnings per share Diluted earnings per share	Before Retrospective Adjustment $ 5.58 $ 5.57	After Retrospective Adjustment
			$ 5.07 $ 5.06

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share from continuing operations were as follows:

NET PROFIT FOR THE YEAR

NET PROFIT FOR THE YEAR
Earnings used in the computation of basic and diluted earnings per share Number of Shares Weighted average number of ordinary shares in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended December31,2021 For the Year Ended December31,2020 $ 1,849,932 $ 1,919,818 Unit: In Thousand Shares For the Year Ended December31,2021 For the Year Ended December31,2020 378,654 378,654 793 674 379,447 379,328	For the Year Ended December31,2020
			378,654 674 379,328

If the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

28. CAPITAL MANAGEMENT

The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged from the past year.

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The capital structure of the Group consists of net debt and equity.

The senior management of the Group regularly reviews the Group’s capital structure. The review includes the consideration of the cost of various types of capital and related risks. The Group balances its overall capital structure by paying dividends, borrowing new debt or repaying old debt, based on the recommendations of the senior management.

29. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The Group’s management believes that the carrying amount of financial assets and financial liabilities that are not measured at fair value approximates their fair value. Otherwise, the fair value cannot be measured appropriately.

b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December 31, 2021 Financial assets at FVTPL Derivative instruments Investments in equity instruments －Domestic listed shares －Foreign unlisted shares Mutual funds Beneficiary securities Total Financial assets at FVTOCI Investments in equity instruments －Domestic listed shares －Domestic unlisted shares －Foreign unlisted shares Total December 31, 2020 Financial assets at FVTPL Derivative instruments Investments in equity instruments －Foreign unlisted shares Mutual funds Beneficiary securities Total Financial assets at FVTOCI Investments in equity instruments －Domestic listed shares －Domestic unlisted shares －Foreign unlisted shares Total Financial liabilities at FVTPL Derivative instruments		Level 1 $ - 73,438 - 562,034 59,466 $ 694,938 $ 476,718 - - $ 476,718 Level 1 $ - - 300,185 60,808 $ 360,993 $ 341,484 - - $ 341,484 $ -		Level 2 $ 1,037 - - - - - $ 1,037 $ - - - $ - Level 2 $ 431 - - - $ 431 $ - - - $ - $ 434		Level 3 $ - - - - - - $ - $ - 7 6 $ 13 Level 3 $ - - - - $ - $ - 7 6 $ 13 $ -		Total
								$ 1,037 73,438 - 562,034 59,466 $ 695,975 $ 476,718 7 6 $ 476,731 Total
								$ 431 - 300,185 60,808 $ 361,424 $ 341,484 7 6 $ 341,497 $ 434

There were no transfers between Levels 1 and 2 for the years ended December 31, 2021 and 2020.

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

Financial assets at FVTOCI - equity instruments

Balance at January 1 Recognized in other comprehensive income (included in unrealized gain on financial assets at FVTOCI) Balance at December 31	For the Year Ended December31,2021 $ 13 - $ 13	For the Year Ended December31,2020	For the Year Ended December31,2020
		(	$ 33 20) $ 13

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Valuation Techniques and Inputs Derivatives - foreign exchange Discounted cash flow: Future cash flows are forward contracts estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

To determine the fair value for Level 3 financial instruments, the Group’s investment department conducts independent fair value verification using external resources so as to better reflect the market conditions, as well as periodically reviewing the valuation results in order to guarantee the rationality of the measurement. For unlisted domestic equity investments, the Group utilizes the asset approach and takes into account the most recent net asset value, observable financial status as well as the financing activities of investees in order to determine their net asset value. The unobservable input used was a discount for the lack of marketability of 15% on December 31, 2021 and 2020.

c. Categories of financial instruments

Categories of financial instruments
Financial assets Financial assets at FVTPL－ Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI - Equity instruments Financial liabilities Financial liabilities at FVTPL－ Held for trading Financial liabilities at amortized cost (Note 2)	December31,2021 $ 695,975 5,122,835 476,731 - 1,891,220	December31,2020
		$ 361,424 4,722,248 341,497 434 1,795,576

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Note 1. The balance includes financial assets at amortized cost, which includes cash and cash equivalents, notes and accounts receivable (including related parties), other receivables (including related parties and excluding VAT refund receivables) and pledged deposits.
Note 2. The balance includes financial liabilities at amortized cost, which includes shortterm and long-term loans, short-term bills payable, accounts payable (including related parties) and other payables (including related parties and excluding payables for taxes).

d. Financial risk management objectives and policies

The Group’s risk control and hedging strategy are influenced by its operational environment. The Group properly monitors and manages the risks related to business nature and according to the principle of risk diversification. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The main financial risks the Group is exposed to in the business activities are foreign exchange risk, interest rate risk, and other price risk.

There has been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group conducted foreign currency sales and purchases, which exposed the Group to foreign currency risk. In order to avoid the impact of foreign currency exchange rate changes, which lead to deductions in foreign currency denominated assets and fluctuations in their future cash flows, the Group used foreign exchange forward contracts to eliminate foreign currency exposure and thus mitigate the impact of the risk. The use of foreign exchange forward contracts was governed by the Group’s policies approved by the board of directors. Compliance with policies and exposure limits was reviewed by internal auditors on a continuous basis. The Group did not enter into or trade foreign exchange forward contracts for speculative purposes.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 33. The derivatives exposing the Group to foreign currency risk are set out in Note 7.

Sensitivity analysis

The Group’s sensitivity analysis mainly focuses on the foreign currency risk of U.S. dollars at the end of the reporting period. Assuming a 3% strengthening/weakening of the functional currency against U.S. dollars, the net income before tax for the years ended December 31, 2021 and 2020 would have decreased/increased by $39,622 thousand and $29,125 thousand, respectively.

In management’s opinion, this sensitivity analysis is unrepresentative of the Group’s inherent foreign exchange risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Group was exposed to the fair value risk of interest rate fluctuations for the fixed interest rate bearing financial assets and financial liabilities; the Group was exposed to the cash flow risk of interest rate fluctuations for the floating interest

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rate bearing financial assets and financial liabilities. The Group’s management regularly monitors the fluctuations on market rates and then adjusted its balance of floating rate bearing financial liabilities to make the Group’s interest rates more closely approach market rates in response to the interest rate risk.

The carrying amount of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

December 31, 2021 December 31, 2020

Fair value interest rate risk
－Financial assets	$	2,114,020	$	1,692,108
－Financial liabilities		542,938		347,452
Cash flow interest rate risk
－Financial assets		502,512		781,793
－Financial liabilities		150,000		150,000

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rate risk of cash flow for both financial assets and liabilities at the end of the reporting period. The fixed-rate financial assets and liabilities held by the Group are not included in the analysis as they are all measured at amortized cost. A 50 point fluctuation in interest rate was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2021 and 2020 would have decreased/increased by $1,763 thousand and $3,159 thousand, respectively.

c) Other price risk

The Group was exposed to price risk through its investments in domestic listed shares, foreign and domestic unlisted shares, beneficiary securities and mutual funds. The Group manages this exposure by maintaining a portfolio of investments with different risks. In addition, the Group has appointed a special team to monitor price risk.

Sensitivity analysis

The following sensitivity analysis was based on the prices of securities as of the balance sheet date. However, in the financial assets at fair value through profit or loss in which the Group invested, the risk of price fluctuation of money market funds was very limited, so it was not included in the analysis.

If the equity price increases / decreases by 5%, the net profit before tax for the years ended December 31, 2021 and 2020 would increase / decrease by $6,645 thousand and $3,040 thousand respectively due to the increase / decrease in the fair value of financial assets (excluding investment in money market funds) at FVTPL. Other comprehensive income before tax for the years ended December 31, 2021 and 2020 would increase / decrease by $23,837 thousand and $17,075 thousand respectively due to the increase / decrease in the fair value of financial assets at FVTOCI, respectively.

2) Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group adopted a policy of only

51 -

dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.

As of December 31, 2021, except for specific customer’s accounts and notes receivable exceeded 16% of the total amount of all receivables, and the rest of the Group’s accounts receivable included numerous customers distributed over a variety of areas, and were not centered on a single customer or location. Furthermore, the Group mitigates credit concentration risk by obtaining letters of credit issued by financial institutions prior to shipment for the sales transactions to the aforementioned specific customers and continuously assesses the financial condition of its customers, and then the Group’s credit risk was limited. As at the end of the reporting period, the Group’s largest exposure of credit risk approximates to the carrying amount of financial assets.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.

a) Liquidity and interest rate risk table for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturity for its nonderivative financial liabilities with agreed repayment periods based on the probable earliest repayment dates. The table was drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

December 31, 2021

December 31, 2021
Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities Floating interest rate liabilities Fixed interest rate liabilities	Weighted Average Interest Rate 1.1000 0.5167 0.7820	On Demand or Less than 1 Year $ 1,243,885 5,013 150,000 200,000 $ 1,598,898		1-5 Years $ 2,743 20,052 - 300,000 $ 322,795		5+ Years
						$ - 20,052 - - $ 20,052

Additional information about the maturity analysis for lease liabilities:

Lease liabilities		Less than 1 Year $ 5,013		1-5 Years $ 20,052		5-10 Years
						$ 20,052

December 31, 2020

December 31, 2020
Non-derivative financial liabilities Non-interest bearing liabilities	Weighted Average Interest Rate	On Demand or Less than 1 Year $ 1,348,276	1-5 Years $ 2,700	5+ Years
				$ -

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Lease liabilities Floating interest rate liabilities Fixed interest rate liabilities	Weighted Average Interest Rate 1.1000 0.5158 0.9000	On Demand or Less than 1 Year 5,013 150,000 - $ 1,503,289		1-5 Years 20,052 - 300,000 $ 322,752		5+ Years
						25,065 - - $ 25,065

Additional information about the maturity analysis for lease liabilities:

Lease liabilities		Less than 1 Year $ 5,013		1-5 Years $ 20,052		5-10 Years
						$ 25,065

b) Financing facilities

Bank loans are an essential source of liquidity for the Group. The table below details the unused amount of bank loans at the end of the reporting period.

December 31, 2021 December 31, 2020 Bank loan facilities － Amount unused $ 5,432,374 $ 7,077,492

30. TRANSACTIONS WITH RELATED PARTIES

The Company’s ultimate parent is USI Corporation, which held 36.79% of the ordinary shares of the Company as of December 31, 2021 and 2020.

Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Names and relations of related parties

Related Party Name Relationship with the Group USI Corporation (“USI”) Ultimate parent company China General Plastics Corporation Associate Continental General Plastics (Zhongshan) Co., Ltd. Associate CGPC Consumer Products Corporation Associate CGPC Polymer Corporation Associate Taiwan VCM Corporation (“TVCM”) Associate China General Terminal & Distribution Associate Corporation (“CGTD”) Acme Electronics Corporation Associate Asia Polymer Corporation (“APC”) Fellow subsidiary USI Trading (Shanghai) Co., Ltd Fellow subsidiary Swanson Plastics Corporation Fellow subsidiary Swanson Plastics (Kunshan) Co., Ltd. Fellow subsidiary USI Management Consulting Corp. (“UM”) Fellow subsidiary Taiwan United Venture Management Corporation Fellow subsidiary USI Education Foundation (“USIF”) Substantial related party

b. Sales of goods
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Related Party Category/Name Ultimate parent company Fellow subsidiary	For the Year Ended December31,2021 $ 4,576 - $ 4,576	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 9,068 10,970 $ 20,038

The Group’s credit period of sales of goods to related parties was from 30 days to 90 days after delivering the products. The sales of goods between the Group and its related parties had no material differences from those of general sales transactions.

c. Purchase of goods

Purchase of goods
Related Party Category/Name Associate Ultimate parent company Fellow subsidiary	For the Year Ended December31,2021 $ 2,338 679 242 $ 3,259	For the Year Ended December31,2020
			$ 2,370 - 203 $ 2,573

The Group’s credit period of purchase of goods from related parties was from 30 days after acceptance. The purchase of goods between the Group and its related parties had no material differences from those of general purchase transactions.

d. Receivables from related parties (excluding loans to related parties)

Related Party Category/Name Ultimate parent company	December31,2021 $ -	December31,2020	December31,2020
			$ 27

The outstanding accounts receivable from related parties were unsecured. No impairment loss was recognized.

e. Payables to related parties (excluding loans from related parties)

Related Party Category/Name Fellow subsidiary Associate	December31,2021 $ 28 - $ 28	December31,2020	December31,2020
			$ 11 487 $ 498

The outstanding accounts payable from related parties are not overdue and not guaranteed.

f. Other transactions with related parties
1) Rental income (classified as other income, see Notes 16 and 25)

Related Party Category/Name Associate CGTD TVCM Ultimate parent company Fellow subsidiary	For the Year Ended December31,2021 $ 23,379 9,635 33,014 1,649 257 $ 34,920	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 24,082 9,635 33,717 1,666 253 $ 35,636

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2) Rental expenses (classified as operating costs, selling and marketing expenses and general and administrative expenses)

general and administrative expenses)
Related Party Category/Name Ultimate parent company USI Fellow subsidiary APC Associate	For the Year Ended December31,2021 $ 4,722 1,891 1,413 $ 8,026	For the Year Ended December31,2020
			$ 5,535 1,672 266 $ 7,473

The Group leased offices and parking spaces in Neihu from USI and APC. The rentals were set according to the actual rental area and paid on a monthly basis.

3) Lease arrangements

Lease arrangements
Related Party Category/Name Lease liabilities-current Fellow subsidiary APC Lease liabilities-non-current Fellow subsidiary APC	December31,2021 $ 4,564 $ 38,374	December31,2020
			$ 4,514 $ 42,938

Related Party Category/Name Lease expense Fellow subsidiary APC Interest expense Fellow subsidiary APC	For the Year Ended December31,2021 $ 5,013 $ 499	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 5,013 $ 550

The Group leased land in Linyuan from APC. The rental was paid on a monthly basis.

4) Storage tank operating expenses (classified as operating costs)

For the Year Ended For the Year Ended Related Party Category/Name December 31, 2021 December 31, 2020 Associate CGTD $ 18,784 $ 13,210

The Group appointed CGTD to handle the storage tank operating procedures of styrene monomer and butadiene, such as transportation, storage and loading. The storage tank operating expenses were paid on a monthly basis.

5) Management service income (classified as other income)

For the Year Ended For the Year Ended Related Party Category/Name December 31, 2021 December 31, 2020 Ultimate parent company USI $ 2,211 $ 2,122 - 55 -

6) Management service expenses (classified as general and administrative expenses and other gains and losses)

other gains and losses)
Related Party Category/Name Fellow subsidiary UM Others	For the Year Ended December31,2021 $ 48,067 - $ 48,067	For the Year Ended December31,2020
			$ 49,647 60 $ 49,707

The related contracts stated that the fellow subsidiary and parent company should provide labor support, equipment and other related services to the Group, and the service expenses were based on the actual quarterly expenses.

7) Donation (classified as general and administrative expenses)

Related Party Category/Name Substantial related party USIF	For the Year Ended December31,2021 $ 4,000	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 1,000

8) Other expenses (classified as operating costs)

Related Party Category/Name Associate	For the Year Ended December31,2021 $ 1,627	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 1,467

9) Payments for property, plant and equipment

Related Party Category/Name Ultimate parent company Commission expense Related Party Category/Name Fellow subsidiary Other receivables Related Party Category/Name Associate Ultimate parent company Fellow subsidiary	For the Year Ended December31,2021 $ 390 For the Year Ended December31,2021 $ 388 December31,2021 $ 2,862 599 75 $ 3,536	For the Year Ended December31,2020	For the Year Ended December31,2020
		$ 1,583 For the Year Ended December31,2020
		$ 827 December31,2020
			$ 976 623 149 $ 1,748

10) Commission expense
11) Other receivables

Other receivables included disbursement fee, management service receivables and office rentals.

12) Other payables

Related Party Category/Name December 31, 2021 December 31, 2020

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Associate Fellow subsidiary Ultimate parent company	$ 4,639 1,523 633 $ 6,795	$ 2,227 867 1,084 $ 4,178

Other payables included storage tank operating expense payables, rental expense payable and the allocation of service department costs payables.

g. Remuneration of key management personnel

Total remuneration for directors and other key management in 2021 and 2020 is as follows:

Salaries and others Retirement benefits	For the Year Ended December31,2021 $ 25,354 216 $ 25,570	For the Year Ended December31,2020	For the Year Ended December31,2020
			$ 22,136 216 $ 22,352

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

31. ASSETS PLEDGED AS COLLATERAL

The following assets were provided as collateral for line of credit borrowings, the tariffs of imported raw materials and good guarantees and borrowing credit amounts (Notes 9, 14, 15, 16 and 18):

Pledged deposits －Classified as financial assets at amortized cost - current Pledged time deposits －Classified as financial assets at amortized cost - current －Classified as other assets - non- current Property, plant and equipment, net Land use rights －Classified right-of-use assets Investment properties, net	December31,2021 $ 809 3,000 16,619 17,433 20,578 - $ 58,439	December31,2020	December31,2020
			$ - 3,000 16,505 462,792 21,482 108,178 $ 611,957

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group were as follows:

a. As of December 31, 2021 and 2020, unused letters of credit amounted to approximately $64,509 thousand and $252,996 thousand, respectively.
b. Explanation for the gas explosion in Kaohsiung:

Regarding the gas explosion of the propylene pipeline of Lee Chang Yung Chemical Industry Corporation (“Lee Chang Yung Chemical”) on the night of July 31, 2014 operated

57 -

by the invested company by the equity method, China General Terminal & Distribution Corporation (“CGTD”), the criminal case of the gas explosion incident was dismissed by the Supreme Court on September 15, 2021 and all three employees of CGTD were acquitted.

CGTD arrived at an agreement with the Kaohsiung City Government on February 12, 2015, pledging certificates of bank deposits of $227,540 thousand, interests included, to the Kaohsiung City Government as collateral for the loss caused by the gas explosion. The Kaohsiung City Government also filed civil procedure requests in succession against LCY Chemical Corp., CGTD and CPC Corporation, Taiwan (“CPC”). Taiwan Power Company applied to the court for sequestration of CGTD's property on August 27 and November 26, 2015 and CGTD has deposited cash of $99,207 thousand to the court to avoid sequestration. Taiwan Water Corporation also applied to the court for false seizure of CGTD's property on February 3 and March 2, 2017 respectively. At the end of February 2022, the provisionally attached property was worth $12,472 thousand.

As for the victims, CGTD, LCY Chemical Corp. and the Kaohsiung City Government signed a tripartite agreement for the compensation of the 32 victims’ families on July 17, 2015. Each victim’s family received $12,000 thousand, and the total compensation was $384,000 thousand. The compensation was advanced by LCY Chemical Corp. LCY Chemical Corp. was in charge of negotiating the compensation with the victims’ families and signing the settlement agreement on behalf of the three parties.

As for the seriously injured, CGTD, LCY Chemical Corp. and the Kaohsiung City Government signed a tripartite agreement for the compensation of the 65 seriously injured victims’ families on October 25, 2017. Compensation was paid by CGTD and the Kaohsiung City Government, and CGTD was in charge of negotiating the compensation with the seriously injured victims’ families and signing the settlement agreement on behalf of the three parties with the 64 seriously injured victims’ families.

As of February 28, 2022, the victims and victims’ families had written letters or filed civil procedures (and criminal procedures) against CGTD, LCY Chemical Corp. and CPC for compensation. To reduce the lawsuit costs, CGTD had reached a settlement on the original claim for $46,677 thousand, and the amount of the settlement was $4,519 thousand. Along with the case still in litigation and the above-mentioned compensation, the accumulated amount of compensation is $3,856,447 thousand. The first instance verdict of some of these civil cases (indemnity amount of $1,341,128 thousand) have been convicted since June 22, 2018 and most cases determined that the negligence liability ratio of Kaohsiun Municipal Government, Lee Chang Yung Chemical and CGTD was 4:3:3, and that CGTD, Lee Chang Yung Chemical and other defendants should pay compensation of about $401,979 thousand (of which $6,194 thousand was exempted from liability by the court). Currently CGTD has filed an appeal for the adjudicated but unsettled civil cases and proceeded with the second instance procedure successively. The rest of the cases are still under trial in the Court of First Instance (the amount of compensation requested is approximately $2,012,493 thousand). CGTD signed a claim agreement with an insurance company, according to the negligence liability ratio determined by the judgment of first instance, it is estimated the settlement amount of victims and seriously injured, the compensation amount of civil litigation cases (including the settled cases), and estimated amount to be borne by itself after deducting the upper limit of insurance claim was $136,375 thousand, which had been included into the account. However, the actual amount of such settlement and compensation shall not be confirmed until the proportion of liability to be shared by CGTD is determined in accordance with the civil action.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

58 -

The following summary is presented in foreign currencies other than the functional currency. The exchange rate disclosed in the summary refers to the exchange rate of a foreign currency to the functional currency. The significant impact on assets and liabilities recognized in foreign currencies is as follows:

December 31, 2021

December 31, 2021
Foreign currency assets Monetary items USD HKD RMB Non-monetary items Derivative instruments USD Foreign currency liabilities Monetary items USD USD December 31, 2020 Foreign currencyassets	Foreign Currency $ 83,753 1,345 287 7,340 26,790 9,249 Foreign Currency $ 67,321 894 586 287 3,000 $ 23,983 9,249 3,000	Exchange Rate 27.6800 (USD:NTD) 3.5490 (HKD:NTD) 0.1568 (RMB:USD) 27.6800 (USD:NTD) 27.6800 (USD:NTD) 6.3757 (USD: RMB) Exchange Rate 28.4800 (USD:NTD) 4.3648 (RMB:NTD) 3.6730 (HKD:NTD) 0.1533 (RMB:USD) 28.4800 (USD:NTD) 28.4800 (USD:NTD) 6.5249 (USD: RMB) 28.4800 (USD:NTD)	Functional Currency $ 2,318,279 4,773 45 1,037 741,536 58,969 Functional Currency $ 1,917,291 3,902 2,153 44 431 683,038 60,349 434	NTD $ 2,318,279 4,773 1,247 $ 2,324,299 $ 1,037 $ 741,536 256,014 $ 997,550 NTD

				$ 1,917,291 3,902 2,153 1,252 $ 1,924,598 $ 431 $ 683,038 263,412 $ 946,450 $ 434
Monetary items USD RMB HKD RMB Non-monetary items Derivative instruments USD Foreign currency liabilities
Monetary items USD USD Non-monetary items Derivative instruments USD

The unrealized and realized foreign exchange gains and losses were a loss of $15,349 thousand and a gain of $55,673 thousand for the years ended December 31, 2021 and 2020, respectively. Due to the numerous foreign currency transactions and functional currencies of each individual entity of the Group, foreign exchange gains and losses cannot be disclosed on the respective significant foreign currency.

34. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions:
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1) Financing provided to others. (None)
2) Endorsements/guarantees provided. (Table 1)
3) Marketable securities held (excluding investments in subsidiaries and associates). (Table 2)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital. (Table 3)
5) Acquisitions of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (None)
6) Disposals of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital. (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
9) Trading in derivative instruments. (Note 7)
10) Others: Intercompany relationships and significant intercompany transactions. (Table 8)
b. Information about investees. (Table 6)
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year. (None)
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year. (Notes 4, 5 and 8)
- c) The amount of property transactions and the amount of the resultant gains or losses. (None)
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes. (Table 1)
- e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to financing of funds. (None)
- f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services. (None)
d. Information on major shareholders (names of shareholders with a shareholding ratio of 5% or more as well as number and proportion of shares held). (Table 9)

35. SEGMENT INFORMATION

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Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. According to IFRS 8 “Operating Segments”, the Group should disclose the segment information of styrenic products and glasswool products (including cubic printing products).

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments.

Styrenic products Glasswool products (including cubic printing products). Total amount from continuing operations Interest income Other income Other gains and losses Share of profit of associates Finance costs Profit before tax from continuing operations	Segment	revenue For the Year Ended December 31, 2020 $ 15,006,638 491,743 $ 15,498,381	Segment income	Segment income	Segment income	Segment income
	For the Year Ended December 31, 2021 $ 20,235,524 535,641 $ 20,771,165		For the Year Ended December 31, 2021		For the Year Ended December 31, 2020 $ 2,390,306 31,157 2,421,463 33,052 54,889 ( 63,253 ) 56,841 ( 21,003) $ 2,481,989
			( (	$ 2,214,542 32,830 2,247,372 41,853 71,396 22,902 ) 74,888 5,163) $ 2,407,444		$ 2,390,306 31,157 2,421,463 33,052 54,889 63,253 ) 56,841 21,003) $ 2,481,989

The above of revenue reported is generated by trading with external customers. There were no inter-departmental transactions in 2021 and 2020.

Segment profit represents the profit before tax earned by each segment, excluding interest income, other income, other gains and losses, share of profit or loss of associates and finance costs, etc. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

Because the segment information reported to the chief operating decision maker didn’t include assets and liabilities of individual segments, the operating segment assets and liabilities are not disclosed.

b. Other segment information

Other segment information
Styrenic products Glasswool products (including cubic printing products).	Depreciation and Amortization
	For the Year Ended December31,2021 $ 176,540 24,961 $ 201,501	For the Year Ended December31,2020
			$ 181,702 24,097 $ 205,799

c. Revenue from major products

The following is an analysis of the Group’s revenue from continuing operations from its major products.

major products.
EPS ABS	For the Year Ended December31,2021 $ 8,793,820 7,435,425	For the Year Ended December31,2020
		$ 6,892,805 5,176,305

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GPS Glasswool products Cubic printing products IPS	3,990,846 494,522 41,119 15,433 $ 20,771,165	2,924,936 438,240 53,503 12,590 $ 15,498,381

d. Geographical information

The amounts of the Group’s revenue from continuing operations from external customers and non-current assets by location are detailed below.

NON-CURRENT ASSETS

Asia America Africa Europe Others	Revenue from External Customers For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 $ 17,891,441 $ 14,070,125 1,514,051 807,086 1,027,291 385,410 116,773 49,519 221,609 186,241 $ 20,771,165 $ 15,498,381	Revenue from External Customers For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 $ 17,891,441 $ 14,070,125 1,514,051 807,086 1,027,291 385,410 116,773 49,519 221,609 186,241 $ 20,771,165 $ 15,498,381		2021 December31 $ 2,193,229 - - - - $ 2,193,229		2020 December31
	For the Year Ended December 31, 2021 $ 17,891,441 1,514,051 1,027,291 116,773 221,609 $ 20,771,165
						$ 2,268,978 - - - - $ 2,268,978

Non-current assets included property, plant and equipment, right of use assets, investment assets, intangible assets, and prepayments for leases.

e. Major customers

No single customer contributed 10% or more to the Group’s revenue for both 2021 and 2020.

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TABLE 1

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/Guarantee Given on Behalf of Each Party (Note 2)	Maximum Amount Endorsed/Guaranteed During the Period (Note 1)	Outstanding Endorsement/Guarantee at the End of the Period (Note 1)	Actual Borrowing Amount	Amount Endorsed/Guaranteed by Collateral	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/Guarantee Limit (Note 2)	Endorsement/Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/Guarantee Given on Behalf of Companies in Mainland China
		Name of Associates	Relationship
0 0	Taita Chemical Co., Ltd. Taita Chemical Co., Ltd.	TAITA (BVI) Holding Co., Ltd. Taita Chemical (Zhongshan) Co., Ltd.	100% voting shares directly owned by the Company 100% voting shares directly owned by the Company’s subsidiary	$ 7,661,813 7,661,813	$ 876,800 (US$ 10,000 thousand) (NT$ 600,000 thousand) 564,395 (RMB 130,000 thousand)	$ 166,080 (US$ 6,000 thousand) 564,395 (RMB 130,000 thousand)	$ - -	$ - -	2.17% 7.37%	$ 11,492,720 11,492,720	Yes Yes	No No	No Yes

Note 1. The foreign currency amount is calculated based on the spot exchange rate as of December 31, 2021.

Note 2. The maximum total endorsement/guarantee shall not exceed 150% of the equity attributable to owners of the Company. The endorsement/guarantee on behalf of other company shall not exceed 100% of the equity attributable to owners of the Company. The maximum total endorsement/guarantee shall not exceed 200% of the equity attributable to owners of the Group. The endorsement/guarantee on behalf of other company shall not exceed 150% of the equity attributable to owners of the Group.

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TABLE 2

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES) DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31,2021	December 31,2021		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Taita Chemical Co., Ltd. TAITA (BVI) Holding Co., Ltd.	Ordinary shares USI Corporation Harbinger Venture Capital Corp. UPC Technology Corporation China Steel Corporation Tung Ho Steel Enterprise Corp. United Microelectronics Corp. Quanta Computer Inc. ShunSin Technology Holdings Limited Mutual funds FSITC Money Market Fund UPAMC James Bond Money Market Fund Hua Nan Phoenix Money Market Fund Yuanta De-Li Money Market Fund Capital Money Market Fund Taishin 1699 Money Market Fund KGI Victory Money Market Fund Beneficiary securities Cathay No. 1 Real Estate Investment Trust Fund Ordinary shares Budworth Investment Ltd. Teratech Corporation Sohoware Inc. - preference shares	Ultimate parent company －－－－－－－－－－－－－－－－－－	Financial assets at fair value through other comprehensive income - non- current 〃 Financial assets at FVTPL - current 〃〃〃〃〃 Financial assets at FVTPL - current 〃〃〃〃〃〃 Financial assets at FVTPL - current Financial assets at fair value through other comprehensive income - non- current Financial assets at FVTPL - non-current -	15,109,901 990 700,000 650,000 167,500 120,000 125,000 48,000 554,887 2,963,490 3,777,217 3,036,468 6,136,099 7,310,690 8,552,784 3,280,000 20,219 112,000 100,000	$ 476,718 7 15,120 22,978 11,239 7,800 11,837 4,464 100,000 50,001 62,020 50,012 100,001 100,000 100,000 59,466 6 (US$ thousand) - -	1.27% 0.50% 0.05% - 0.02% - - 0.04% - - - - - - - - 2.22% 0.73% -	$ 476,718 7 15,120 22,978 11,239 7,800 11,837 4,464 100,000 50,001 62,020 50,012 100,001 100,000 100,000 59,466 6 (US$ thousand) - -	Note 1 Note 3 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 3 Note 4 Note 4

Note 1. The fair value is calculated based on the closing prices at TWSE on the last trading day of December 2021.

Note 2. The fair value is calculated based on the net assets value of each fund on the last trading day of December 2021.

Note 3. The Group utilizes the asset approach and takes into account the most recent net asset value, observable financial status as well as the financing activities of investees in order to determine their net asset value. Note 4. As of December 31, 2021, the Group evaluates the fair value of the equity instrument as $0.

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TABLE 3

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	BeginningBalance(Note)	BeginningBalance(Note)	Acquisition	Acquisition		Disposal	Disposal		EndingBalance(Note)	EndingBalance(Note)
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
Taita Chemical Co., Ltd.	Mutual funds Hua Nan Phoenix Money Market Fund Hua Nan Kirin Money Market Fund Capital Money Market Fund CTBC Hwa-win Money Market Fund UPAMC James Bond Money Market Fund	Financial assets at FVTPL - current 〃〃〃〃	－－－－－	－－－－－	5,248,671 6,962,057 5,225,881 - -	$ 86,000 84,000 85,000 - -	36,399,248 37,264,857 18,423,866 33,288,910 21,822,997	$ 597,000 450,000 300,000 370,000 368,000	37,870,702 44,226,914 17,513,648 33,288,910 18,859,507	$ 621,110 534,088 285,109 370,034 318,049	$ 621,000 534,000 285,000 370,000 318,000	$ 110 88 109 34 49	3,777,217 - 6,136,099 - 2,963,490	$ 62,000 - 100,000 - 50,000

Note: The ending balance of mutual funds is the original purchase cost.

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TABLE 4

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Counterparty	Relationship		Transaction	Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable(Payable)	Notes/Accounts Receivable(Payable)	Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Financial Statement Account and EndingBalance	% of Total
Taita Chemical Co., Ltd.	Taita Chemical (Zhongshan) Co., Ltd.	Sub-subsidiary	Sale	( $ 1,049,003 ) (US$ 37,578 thousand)	( 6.67% )	30 days	No significant difference	No significant difference	Accounts receivable from related parties $ 542 (US$ 20 thousand)	0.03%	－

Note: The amount was eliminated upon consolidation and based on audited financial statements.

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TABLE 5

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Counterparty	Relationship	Ending Balance (Note 3)	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period （Note 2）	Allowance for Impairment Loss
					Amount	Actions Taken
Taita Chemical Co., Ltd.	Taita Chemical (Tianjin) Co., Ltd.	Sub-subsidiary	Other receivables from related parties $ 256,014 (US$ 9,249 thousand) （Note 1）	-	$ 256,014	Keep collecting the outstanding payment	$ -	$ -

Note 1. The total amount of Taita Chemical Co., Ltd. from selling raw materials to Taita Chemical (Tianjin) Co., Ltd. Was reclassified to other receivables owing to it was over due for a normal crediting period. Note 2. There was no amount received in the subsequent period as of March 9, 2022. Note 3. The amount was eliminated upon consolidation and based on audited financial statements.

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TABLE 6

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December	As of December	31,2021	Net Income (Loss) of the Investee	Share of Profits (Loss)	Note （Note 1）
				December 31, 2021	December 31, 2020	Number of Shares	%	Carrying Amount
Taita Chemical Co., Ltd. TAITA (BVI) Holding Co., Ltd.	TAITA (BVI) Holding Co., Ltd. China General Plastics Corporation China General Terminal & Distribution Corporation Acme Electronics Corporation ACME Electronics (Cayman) Corp.	British Virgin Islands Taipei, Taiwan Taipei, Taiwan Taipei, Taiwan British Cayman Islands	Reinvestment Manufacture and marketing of PVC plastic cloth and three- time processed products Warehousing and transportation of petro chemical raw materials Manufacture and marketing of manganese-zinc and ferrite core Reinvestment	$ 2,483,948 (US$89,738 thousand) 65,365 41,082 44,771 47,057 (US$1,700 thousand)	$ 2,483,948 (US$89,738 thousand) 65,365 41,082 44,771 47,057 (US$1,700 thousand)	89,738,000 11,516,174 22,009,592 4,445,019 2,695,619	100.00% 1.98% 33.33% 2.43% 5.39%	$ 3,142,621 (US$113,455 thousand) 221,245 373,731 32,429 66,405 (US$2,399 thousand)	$ 211,285 (Gain US$7,532 thousand) 2,468,676 63,389 59,329 62,808 (Gain US$2,252 thousand)	$ 211,285 (Gain US$7,352 thousand) 48,928 21,130 1,441 -	Subsidiary Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method

Note 1. Except for the calculation of ACME and ACME (Cayman) was based on the unaudited financial statements for the year ended December 31, 2021, the calculation of the rest investees was based on their audited financial statements for the same period. Note 2. The amount was eliminated upon consolidation and based on audited financial statements.

Note 3. Investments in mainland China are included in Table 7.

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TABLE 7

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Paid-in Capital	Method and Medium of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January1,2021	Accumulated Outward Remittance for Investment from Taiwan as of January1,2021	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investment from Taiwan as of December 31,2021	Net Income (Loss) of the Investee (Note 5)	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 5)	Carrying Amount as of December 31, 2021 (Note 5)	Accumulated Repatriation of Investment Income as of December 31,2021
							Outflow	Inflow
Taita Chemical (Zhongshan) Co., Ltd. (“TTC (ZS)”) (Note 7) Taita Chemical (Tianjin) Co., Ltd. (“TTC (TJ)”) (Note 8) ACME Electronics (Kunshan) Co., Ltd. (“ACME (KS)”)	Production and marketing of polystyrene derivatives Production and marketing of polystyrene derivatives Manufacturing and marketing of manganese-zinc soft ferrite core	$ 1,280,200 (US$ 46,250 thousand) (Note 1) 757,048 (US$ 27,350 thousand) (Note 2) 850,468 (US$ 30,725 thousand)		Investments through a holding company registered in a third region Investments through a holding company registered in a third region Investments through ACME Electronics (Cayman) Corp. registered in a third region	$ 1,190,240 (US$ 43,000 thousand) 719,680 (US$ 26,000 thousand) 37,479 (US$ 1,354 thousand)		$ - - -	$ - - -	$ 1,190,240 (US$ 43,000 thousand) 719,680 (US$ 26,000 thousand) 37,479 (US$ 1,354 thousand)	$ 218,742 (Gain US$7,795 thousand) ( 10,135 ) ( Loss US$ 361 thousand ) 45,024 (Gain US$1,616 thousand)	100.00% 100.00% 5.39%	$ 218,742 (Gain US$7,795 thousand) (Note 6) ( 10,135 ) (Loss US$ 361 thousand) (Note 6) 2,429 (Gain US$ 87 thousand)	$ 1,817,579 (US$ 65,664 thousand) (Note 6) ( 114,144 ) (US$ 4,124 thousand) (Note 6) 44,556 (US$ 1,610 thousand)	$ - - -

Accumulated Outward Remittance for Investment in Mainland China as of December 31,2021			Investment Amounts Authorized by Investment Commission,MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission,MOEA
$1,947,399 (US$ 70,354 thousand)			$2,098,623 (US$ 75,817 thousand) (Note 3)			$ - (Note 4)

Note 1. TTC (ZS) resolved to issue share dividends of US$3,250 thousand in 2007.

Note 2. TTC (TJ) resolved to issue share dividends of US$1,350 thousand in 2012.

Note 3. The amount distributed from share dividends included US$3,250 thousand from TTC (ZS), US$1,350 thousand from TTC (TJ) and US$802 thousand from ACME (KS).

Note 4. According to the Letter No. 10820415160 issued by the Ministry of Economic Affairs on June 6, 2019, the upper limit on investment in mainland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable.

Note 5. The basis for investment income (loss) recognition is from financial statements audited and attested by the parent company’s ROC-based CPA.

Note 6. The amount was eliminated upon consolidation and based on audited financial statements.

Note 7. TTC (ZS) has resolved the earnings distribution from 2007 to 2020 in the amount to RMB 306,950 thousand at the board meeting held on October 14, 2021 and the earnings have been distributed to Zhangzhou Taita Chemical Co., Ltd. on March 8, 2022.

Note 8. The Company’s management decided to suspend TTC (TJ)’s production in from April 2019, please refer to Note 12 for details.

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TABLE 8

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

No.	Investee Company	Counterparty	Relationship	Transactions Details	Transactions Details	Transactions Details
				Financial Statement Account	Amount (Note 2)	Transaction Details	% of Total Sales or Assets (Note 1)
0 1	Taita Chemical Co., Ltd. TAITA (BVI) Holding Co., Ltd.	TAITA (BVI) Holding Co.,Ltd. Taita Chemical (Zhongshan) Co., Ltd. Taita Chemical (Tianjin) Co., Ltd. Taita Chemical (Tianjin) Co., Ltd.	The parent company to subsidiaries The parent company to sub-subsidiaries The parent company to sub-subsidiaries The parent company to subsidiaries	Other receivables from related parties Sales revenue Accounts receivable from related parties Other receivables from related parties Other payables from related parties	$ 201 1,049,003 542 256,014 4,152	No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties No significant difference with non-related parties	- 5.05% 0.01% 2.38% 0.04%

Note 1. For the calculation of the ratio of the transaction amount to the consolidated total revenue or total assets, if it is an asset-liability account, it is calculated as the closing balance of the transaction amount to the consolidated total assets; if it is a profit and loss account, it is calculated as the accumulated amount at the end of the period to the consolidated total revenue.

Note 2. The amount was eliminated upon consolidation and based on audited financial statements.

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TABLE 9

TAITA CHEMICAL CO., LTD.

INFORMATION ABOUT SUBSTANTIAL SHAREHOLDERS DECEMBER 31, 2021

Name of substantial shareholders	Shares	Shares
	Number of sharesheld	%
Union Polymer International Investment Corporation	139,298,343	36.79%

Note: The information of major shareholders in this attachment refers to the information calculated by the Taiwan Depository & Clearing Corporation on the last business day at the end of the current quarter of which the total number of common stocks and special stocks of the Company held, amounting to more than 5%, by the shareholder has been delivered without physical registration (including treasury shares). The capital stock recorded in the consolidated financial statements of the Company and the actual number of shares delivered without physical registration may be different or discrepant due to different compilation and calculation basis.

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AI assistant

TTC — Audit Report / Information 2021

51768_rns_2021-11-11_cfa59515-ef9d-4720-b2ae-4a945e907b7a.pdf

Taita Chemical Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Authenticity of the Recognition of Sales Revenue from Customers of Specific Products

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

(Continued from the previous page)

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Notice to Readers:

TAITA CHEMICAL CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. Summary of Significant Accounting Policies

d. Basis of consolidation

f. Inventories

ii. FINANCIAL ASSETS AT AMORTIZED COST

iii. Investments in equity instruments at FVTOCI

Revenue from sale of goods

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

6. CASH AND CASH EQUIVALENTS

8. Financial assets at fair value through other comprehensive income - non-current

－ 9. FINANCIAL ASSETS AT AMORTIZED COST CURRENT

a. Notes receivable and accounts receivable

b. Other receivables

11. Inventories

12. SUBSIDIARIES

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. Property, plant and equipment

15. LEASE ARRANGEMENTS

16. INVESTMENT PROPERTIES, NET

17. INTANGIBLE ASSETS

18. BORROWINGS

19. Accounts payable

20. OTHER PAYABLES

21. REFUND PROVISIONS

22. RETIREMENT BENEFIT PLANS

23. EQUITY

24. REVENUE

25. PROFIT BEFORE INCOME TAX

e. Finance costs

f. Depreciation and amortization

26. Income Tax

c. Current income tax assets and liabilities

d. Deferred tax assets and liabilities

For the Year Ended December 31, 2021

For the Year Ended December 31, 2020

27. EARNINGS PER SHARE

NET PROFIT FOR THE YEAR

28. CAPITAL MANAGEMENT

29. FINANCIAL INSTRUMENTS

c. Categories of financial instruments

d. Financial risk management objectives and policies

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

c) Other price risk

Sensitivity analysis

2) Credit risk

TTC Audit Report / Information 2021