UCC - Audit Report / Information 2022

Universal Cement Corporation

Financial Statements for the Years Ended December 31, 2022 and 2021 and Independent Auditors’ Report

INDEPENDENT AUDITORS ’ REPORT

The Board of Directors and Shareholders Universal Cement Corporation

Opinion

We have audited the accompanying financial statements of Universal Cement Corporation (the Company), which comprise the balance sheets as of December 31, 2022 and 2021, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and its financial performance and its 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 (FSC) of Taiwan, the Republic of China (ROC).

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the ROC. Our responsibilities under those standards are further described in the Auditors ’ Responsibilities for the Audit of the 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 ROC, 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 financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the 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 matter of the Company ’ s financial statements for the year ended December 31, 2022 is stated as follows: Occurrence of sales of concrete products

Refer to Note 4(14) and Note 23, the Company mainly manufactures and sells cement, ready mixed concrete and gypsum board panels. The sales amount of some concrete products changed greatly in 2022 and the change can be due to changes in volume or price or both. Sales is the main source of the Company ’ s revenue and has a material impact on the Company ’ s financial statements. Consequently, occurrence of sales of concrete products is considered as a key audit matter.

Our audit procedures in respect of the above key audit matter are described as follows:

We understood the design of the Company ’ s internal controls on accounting for sales. We tested the implementation and operating effectiveness of the internal controls.
We selected samples from the sales records, and verified that the products and quantities listed on the delivery orders and the invoices are the same and for the same customers. We noted that the delivery orders are signed by the customers and confirmed that the payee matched the transaction counterparty.

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

Management is responsible for the preparation and fair presentation of the 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 FSC of the ROC, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company ’ 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 Company 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 Company ’ s financial reporting process.

Auditors ’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 ROC 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 financial statements.

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

Identify and assess the risks of material misstatement of the 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.
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 Company ’ 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 Company ’ 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 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 Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 Company to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the Company 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 financial statements for the year ended December 31, 2022 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 Chi Chen Lee and Chao Chin Yang.

Deloitte & Touche Taipei, Taiwan

Republic of China

March 16, 2023

Notice to Readers

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

For the convenience of readers, the auditors ’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors ’ report and financial statements shall prevail.

Universal Cement Corporation

BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - current (Notes 4 and 8) Financial assets at amortized cost - current (Notes 4, 9, 10 and 33) Contract assets - current (Notes 4 and 23) Contract assets from related parties - current (Notes 4, 23 and 32) Notes receivable (Notes 4 ,11 and 23) Net Accounts receivable (Notes 4,11 and 23) Accounts receivable from related parties (Notes 4, 11,23 and 32) Other receivables (Notes 4 and 32) Inventories (Notes 4 and 12) Prepayments Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Financial assets at amortized cost - non-current (Notes 4, 9, 10 ) Investments accounted for using equity method (Notes 4 and 13) Property, plant and equipment (Notes 4 and 14) Right - of - use assets (Notes 4 and 15) Investment properties (Notes 4 and 16) Other intangible assets (Notes 4 and 17) Deferred tax assets (Notes 4 and 25) Prepayments for equipment Net defined benefit assets(Notes 4 and 21) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4 and 18) Short-term bills payable (Note 4 and 18) Contract liabilities - current (Notes 4 and 23) Notes payable (Note 19) Accounts Payable (Note 19) Accounts Payable to related parties (Notes 19 and 32) Other payables (Note 20 and 32) Current tax liabilities (Notes 25) Lease liabilities - current (Notes 4, 15 and 32) Other current liabilities (Note 20) Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities (Notes 4 and 25) Lease liabilities - non-current (Notes 4, 15 and 32) Guarantee deposits Net defined benefit liabilities - non-current (Notes 4 and 21) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22) Capital stock - common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL	December 31, 2022 Amount % $ 306,017 1 7,535 - 1,858,020 7 67 - 1,759 - 4,437 - 399,898 2 1,216,542 5 44,977 - 221,862 1 304,870 1 19,562 - 3,907 - 4,389,453 17 2,076,812 8 4,657 - 12,640,982 48 6,326,916 24 58,557 - 634,706 3 11,324 - 11,251 - 30,031 - 6,697 - 21,801,933 83 $ 26,191,386 100 $ 2,210,000 9 799,261 3 240 - 30 - 609,753 2 47,288 - 316,494 1 112,632 1 10,587 - 21,674 - 4,127,959 16 1,088,991 4 48,170 - 8,362 - - - 1,145,523 4 5,273,482 20 6,536,092 25 123,499 - 2,715,883 11 3,185,793 12 7,372,038 28 13,273,714 51 984,599 4 20,917,904 80 $ 26,191,386 100	December 31, 2022 Amount % $ 306,017 1 7,535 - 1,858,020 7 67 - 1,759 - 4,437 - 399,898 2 1,216,542 5 44,977 - 221,862 1 304,870 1 19,562 - 3,907 - 4,389,453 17 2,076,812 8 4,657 - 12,640,982 48 6,326,916 24 58,557 - 634,706 3 11,324 - 11,251 - 30,031 - 6,697 - 21,801,933 83 $ 26,191,386 100 $ 2,210,000 9 799,261 3 240 - 30 - 609,753 2 47,288 - 316,494 1 112,632 1 10,587 - 21,674 - 4,127,959 16 1,088,991 4 48,170 - 8,362 - - - 1,145,523 4 5,273,482 20 6,536,092 25 123,499 - 2,715,883 11 3,185,793 12 7,372,038 28 13,273,714 51 984,599 4 20,917,904 80 $ 26,191,386 100		December 31, 2021
		Amount $ 306,017 7,535 1,858,020 67 1,759 4,437 399,898 1,216,542 44,977 221,862 304,870 19,562 3,907 4,389,453 2,076,812 4,657 12,640,982 6,326,916 58,557 634,706 11,324 11,251 30,031 6,697 21,801,933 $ 26,191,386 $ 2,210,000 799,261 240 30 609,753 47,288 316,494 112,632 10,587 21,674 4,127,959 1,088,991 48,170 8,362 - 1,145,523 5,273,482 6,536,092 123,499 2,715,883 3,185,793 7,372,038 13,273,714 984,599 20,917,904 $ 26,191,386		Amount % $ 104,869 - 6,866 - 2,081,210 9 67 - 2,545 - 4,437 - 395,276 2 1,000,841 4 36,742 - 106,365 1 266,451 1 16,310 - 3,686 - 4,025,665 17 1,709,936 7 4,707 - 11,111,932 46 6,629,770 27 39,323 - 685,616 3 8,051 - 16,702 - 23,287 - - - 20,229,324 83 $ 24,254,989 100 $ 1,780,000 7 1,059,292 4 1,224 - - - 578,635 3 43,229 - 258,827 1 107,052 1 13,445 - 18,590 - 3,860,294 16 1,088,997 5 26,072 - 8,827 - 37,334 - 1,161,230 5 5,021,524 21 6,536,092 27 66,950 - 2,607,075 11 3,185,793 13 6,092,023 25 11,884,891 49 745,532 3 19,233,465 79 $ 24,254,989 100

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

Universal Cement Corporation

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 23 and 32) OPERATING COSTS (Notes 12, 21, 24 and 32) GROSS PROFIT OPERATING EXPENSES (Notes 21, 24 and 32) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 13, 24 and 32) Interest income Other income Other gains and losses Interest expenses Share of profit or loss of associates Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 25) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (Notes 21, 22 and 25) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income or loss of associates accounted for using the equity method		2022
	( (

Universal Cement Corporation

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Share of the other comprehensive income of associates accounted for using the equity method Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 26) Basic Diluted		2022	% - 2 2 2 4 40		2021
		Amount $ - 93,777 146,367 146,367 240,144 $ 2,281,539 $ 3.12 3.11			Amount % $ 335 - 260,547 5 (53,545) (1) (53,545) (1) 207,002 4 $ 1,295,080 27 $ 1.66 1.66

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

(Concluded)

Universal Cement Corporation

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Capital Surplus Legal Reserve 65,822 2,491,500 - 115,575 - - 418 - 527 - 605 - ( 4 ) - - - - - - - $ 66,950 $ 2,607,075 108,808 - 56,211 - 340 - ( 2 ) - - - - - - $ 123,499 $ 2,715,883	Retained Earnings	Unappropriated Earnings 5,838,490 ( 115,575 ) ( 718,970 ) - - - - 1,088,078 - 1,088,078 $ 6,092,023 ( 108,808 ) ( 653,609 ) - 1,077 ( 40 ) - 2,041,395 - 2,041,395 $ 7,372,038			Other Equity				Total Equity
	Special Reserve 3,185,793 - - - - - - - - - $ 3,185,793 - - - - - - - - $ 3,185,793		Exchange Differences on Translating Foreign Operations ( 892,298 ) - - - - - - - ( 53,545) ( 53,545) ($ 945,843) - - - - - - 146,367 146,367 ($ 799,476))	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income 1,396,993 - - - - - - - 241,879 241,879 $ 1,638,872 - - - (1,077) - - - 74,103 74,103 $ 1,711,898	Remeasurement of Defined Benefit Plans 51,052 - - - - - - - 18,668 18,668 $ 69,720 - - - - - - 19,674 19,674 $ 89,394		other
		( ( ( ( (	( ( ( ( (			( ( (		( ( ( ( $	18,656,227 - 718,970 ) 418 527 605 4 ) 1,088,078 207,002 1,295,080 $19,233,465 - 653,609 ) 56,211 - 300 2 ) 2,041,395 240,144 2,281,539 20,917,904
(

$
(

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

(Concluded)

Universal Cement Corporation

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (gain) recognized Interest expenses Interest income Dividend income Share of profit of associates Loss (Gain) on disposal of property, plant and equipment net Net gain on fair value changes of financial assets designated as at fair value through profit or loss Gain on disposal of investment properties Gain on disposal of other intangible assets Regarded as gain on disposal of associate Inventory write-downs Impairment loss on assets Gain on lease modification Changes in operating assets and liabilities Contract assets (Including related parties) Notes receivable Accounts receivable (Including related parties) Other receivables Inventories Prepayments Other current assets Contract liabilities Notes payable (Including related parties) Accounts payable (Including related parties) Other payables Other current liabilities Net defined benefit liability Cash generated from operations Interest received Dividends received Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Financial assets at fair value through other comprehensive income Proceeds from the liquidation of financial assets at fair value through other comprehensive income Increase in financial assets at amortized cost Decrease in financial assets at amortized cost Acquisitions of financial assets at fair value through profit or loss		2022 $ 2,215,034 123,591 2,415 8,487 35,034 1,775 ) 193,444 ) 1,042,108 ) (3,950) 669 ) 107,131 ) - 373,540 ) - 274,161 93 ) 44,029 ) 983 4,622 ) 232,620 ) 4 38,419 ) 3,252 ) 221 ) 984 ) 30 35,177 60,983 3,084 2) 712,124 1,775 402,700 $ 162,614) 953,985 - - 1,160 ) 1,210 -		2021
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (			$ 1,201,101 114,763 2,992 (1,954) 20,939 (141) (142,112) (424,060) 17 (491) - (2,989) 752 - - 3,531 (33,224) (187,726) (772) (19,913) 29,608 1,473 659 (209) 98,201 (2,555) (92) (18,777) 639,021 141 689,375 (63,482) 1,265,055 (321,038) - (541) 11,029 (59,033) (Continued)

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Universal Cement Corporation

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Acquisitions of investments accounted for using equity method Refunds from financial assets at fair value through profit or loss Payments for property, plant and equipment Refunds from disposal of property, plant and equipment Payments for intangible assets Refunds from disposal of intangible assets Payments for investment properties Refunds from disposal of investment properties Increase in other receivables Dncrease in other receivables Dncrease in other non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Increase (decrease) in short-term bills payable Proceeds from guarantee deposits received Refund of guarantee deposits received Repayment of the principal portion of lease liabilities Dividends paid to owners of the Company Interest Paid Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	( (	( (

	( ( ( ( ( (

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

(Concluded)

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NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Universal Cement Corporation

1. GENERAL INFORMATION

Universal Cement Corporation (the Company) was incorporated in the Republic of China (ROC) in March 1960. The Company mainly manufactures and sells cement, ready mixed concrete and gypsum board panels.

The Company ’ s shares have been listed on the Taiwan Stock Exchange (TWSE) since February 1971.

The financial statements are presented in the Company ’ s functional currency, New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Company ’ s board of directors on March 16, 2023.

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

a. The initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “ IFRSs ” ) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

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

b. The IFRSs endorsed by the FSC for application starting from 2023

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB Amendments to IAS 1 “ Disclosure of Accounting Policies ” January 1, 2023 (Note 1) Amendments to IAS 8 “ Definition of Accounting Estimates ” January 1, 2023 (Note 2) Amendments to IAS 12 “ Deferred Tax related to Assets and January 1, 2023 (Note 3) Liabilities arising from a Single Transaction ”

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 2: The amendments will be applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 3: Except for deferred taxes that were recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments were applied prospectively to transactions that occur on or after January 1, 2022.
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1) Amendments to IAS 1 “ Disclosure of Accounting Policies ”

The amendments specify that the Group should refer to the definition of material to determine its material accounting policy information to be disclosed. Accounting policy information is material if it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments also clarify that:

Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;

The Group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and

Not all accounting policy information relating to material transactions, other events or conditions is itself material.

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The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

a) The Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;
b) The Group chose the accounting policy from options permitted by the standards;
c) The accounting policy was developed in accordance with IAS 8 “ Accounting Policies, Changes in Accounting Estimates and Errors ” in the absence of an IFRS that specifically applies;
d) The accounting policy relates to an area for which the Group is required to make significant judgements or assumptions in applying an accounting policy, and the Group discloses those judgements or assumptions; or
e) The accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.
2) Amendments to IAS 8 “ Definition of Accounting Estimates ”

The amendments define that accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. In applying accounting policies, the Group may be required to measure items at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, the Group uses measurement techniques and inputs to develop accounting estimates to achieve the objective. The effects on an accounting estimate of a change in a measurement technique or a change in an input are changes in accounting estimates unless they result from the correction of prior period errors.

As of the date the financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company ’ s financial position and financial performance.

c. The IFRSs in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations Amendments to IFRS 10 and IAS 28“Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” Amendments to IFRS 16“Leases Liability in a Sale and Leaseback” IFRS 17“Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17“Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 1“Classification of Liabilities as Current or Non-current” Amendments to IAS 1“Non-current Liabilities with Covenants”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2024 (Note 2) January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

New, Amended and Revised Standards and Interpretations
Amendments to IFRS 10 and IAS 28“Sale or Contribution of
Assets between an Investor and its Associate or Joint
Venture”
Amendments to IFRS 16“Leases Liability in a Sale and
Leaseback”
IFRS 17“Insurance Contracts”
Amendments to IFRS 17
Amendments to IFRS 17“Initial Application of IFRS 9 and IFRS
17 - Comparative Information”
Amendments to IAS 1“Classification of Liabilities as Current or
Non-current”
Amendments to IAS 1“Non-current Liabilities with Covenants”

Effective Date
Announced by IASB (Note
1)

To be determined by IASB
January 1, 2024 (Note 2)
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2024
January 1, 2024

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Note 1: Except for otherwise stated, the newly issued/revised/amended standards or interpretations become effective after the annual reporting period starting on the respective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

As of the date of approving the issuance of this consolidated financial report, the Group is still evaluating the effects of amendments to other standards and interpretations on the financial positions and financial performance; relevant effects are to be disclosed upon the completion of the evaluation..

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the 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;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing its financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in its financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, share of profit or loss of subsidiaries and associates, share of other comprehensive income of subsidiaries and associates and related equity items, as appropriate, in these financial statements.

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
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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 Company 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. Business combinations
Acquisitions of businesses are accounted for using the acquisition method. Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of the acquirer ’ s previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.If, after re-assessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, and the fair value of the acquirer ’ s previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

When a business combination is achieved in stages, the Company ’ s previously held equity interest in an acquiree is remeasured to fair value at the acquisition date, and the resulting gain or loss is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized on the same basis as would be required had those interests been directly disposed of by the Company.

e. Foreign currencies

In preparing the financial statements of each individual Company entity, transactions in currencies other than the entity ’ s functional currency (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 arising from settlement or translation are recognized in profit or loss in the period.

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 on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary 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 not retranslated.

For the purpose of presenting financial statements, the functional currencies of the Company entities (including subsidiaries in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan

16 -

dollars 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 (attributed to the owners of the Company and non-controlling interests as appropriate).

f. Inventories

Inventories consist of raw materials and supplies, merchandise, finished goods and work-in-process. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to Company 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 subsidiaries

Equity method is adopted for investments in subsidiaries.

A subsidiary is an entity in which that the Company has control.

Under the equity method, the investments are initially recognized at costs, and the subsequent carrying amount upon acquisition shall increase/decrease according to the share of profit or loss from subsidiaries and other comprehensive income, and profit allocation entitled to the Company. In addition, changes in other interests in subsidiaries entitled to the Company are recognized according to the shareholding.

Changes in the Company's ownership interests in subsidiaries not resulting in the loss of control are accounted for as equity transactions. The differences between the carrying amount of investments and the fair value of the paid or received consideration are directly recognized as equity.

Where the Company's share of loss from a subsidiary equal to or exceeds the interests in the subsidiary (including the carrying amount of the subsidiary using equity method and other long-term interests substantially are a part of net investments of the Company in the subsidiary), the Company continues to recognize losses according to the shareholding.

Where the acquisition costs exceed the share of net fair value of the subsidiary's identifiable assets and liabilities entitled to the Company on the date of acquisition, such amount is recognized as goodwill. Goodwill is included in the carrying amount of such investments and shall not be amortized. The exceeding amount of the share of net fair value of the subsidiary's identifiable assets and liabilities entitled to the Company on the date of acquisition to the acquisition costs is recognized as gains of the year.

For impairment evaluation, the Company considers cash-generating units (the "CGUs") and compares its recoverable amount based on the individual financial report, as a whole. Subsequently, where the recoverable amount of the assets increases, the Company recognizes the reversal of impairment loss as gains. However, the carrying amount of the assets less the reversal of impairment loss shall not exceed the carrying amount of the asset less the amortization should have been recognized under the condition where no impairment loss is recognized.

When losing control over a subsidiary, the Company measure its remaining investments in its former subsidiary based on the fair value on the date when control is lost. The differences between the fair value of the remaining investments and any consideration from disposals, and the carrying amount of the investment on the date when control is lost are recognized in profit

17 -

or loss for the year. Furthermore, the accounting for all amounts related to the subsidiary that is recognized in other comprehensive income shall be on the basis required for the Company in direct disposals of assets or liabilities.

The unrealized gain or loss from downstream transactions between the Company and its subsidiaries is written off in the individual financial report. Gain or loss from upstream and side stream transactions between the Company and its subsidiaries are recognized in the individual financial report, to the extent where the Company is not related to the interests of subsidiaries.

h. Investment in associates

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

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

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

Any excess of the cost of acquisition over the Company ’ s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company ’ s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Company subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company ’ s proportionate interest in the associate. The Company 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 Company ’ s ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

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

The entire carrying amount of the 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 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 Company discontinues the use of the equity method from the date on which its investment

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ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

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

i. 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 intended use.

Depreciation on 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 method are reviewed at the end of each reporting period, with the effect of any changes in estimate 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.

j. 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, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount at the end of owner-occupation.

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.

k. 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 life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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.

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l. Impairment of property, plant and equipment, investment properties, right-of-use assets and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, investment properties, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered any 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual 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.

m. Financial instruments

Financial assets and financial liabilities are recognized when a Corporation 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 the acquisition or issue 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 category

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

i. Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, with dividends

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or interest and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 31.

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 and financial assets at amortized cost, 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 financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not

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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.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company ’ 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 and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable), as well as contract assets.

The Company always recognizes lifetime expected credit losses (i.e. ECLs) on accounts receivable and contract assets. For all other financial instruments, the Company 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 Company 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 purposes, the Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.
ii. When a financial asset is more than 365 days past due unless the Company has reasonable and corroborative information to support a more lagged default criterion.

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

c) Derecognition of financial assets

The Company 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. However, on derecognition of an investment in an equity instrument at FVTOCI, 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.

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2) Equity instruments

Equity instruments issued by a Corporation entity are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

Equity instruments issued by a Corporation entity are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company ’ s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company ’ s own equity instruments.

3) Financial liabilities

All the financial liabilities are measured at amortized cost using the effective interest method.

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

n. Revenue recognition

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

Revenue from the sale of goods comes from sales of cement, ready mixed concrete and gypsum board panels. Sales of cement, ready mixed concrete and gypsum board panels are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable and contract assets are recognized concurrently. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Company adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Company satisfies its performance obligations. When the customer initially purchases cement, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.

o. 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.

When a lease includes both land and building elements, the Company assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of

23 -

each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Company as lessee

The Company 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 by applying 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. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-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. 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 Company 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. The Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. 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.

p. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost 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 stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

q. 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

24 -

service.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense 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 costs (including current service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company ’ s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

r. Taxation

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

1) Current tax

The Company determines its current income (loss) according to the regulations established by the jurisdictions of the tax return to calculate its income tax payable (recoverable).

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

Adjustments of prior years ’ tax liabilities are added to or deducted from the current years ’ 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 profits 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 Company 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 only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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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 profits will be available to allow all or part of the asset 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 Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred tax 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 tax 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 Company's accounting policies, management is required to make judgments, estimates 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 estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The accounting policies adopted by the Company do not involve material accounting judgments, estimations and assumptions.

6. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Cash on hand Checking accounts and demand deposits Cash equivalents(Time deposits with original maturities of less than 3 months) deposit account		December 31
		2022 $ 380 273,392 32,245 $ 306,017	2021 $ 282 104,587 - $ 104,869

The ranges of interest rates for time deposits were 4.75%~4.80% on December 31, 2022.

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

December 31 2022

2021

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Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic listed shares and emerging market shares

$ 7,535 $ 6,866

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in equity instruments at FVTOCI-Current Domestic investments Listed shares and emerging market shares Investments in equity instruments at FVTOCI-Non-current Domestic investments Privately placed listed shares and emerging market shares Unlisted shares			December 31	December 31	December 31
			2022 $ 1,858,020 $ 301,600 1,775,212 $ 2,076,812		2021 $ 2,081,210 $ 271,050 1,438,886 $ 1,709,936

These investments in equity instruments are held for medium to 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 Company ’ s strategy of holding these investments for strategic purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Pledged time deposits (a) Non-current Refundable deposits		December 31	December 31
		2022 $ 67 $ 4,657	2021 $ 67 $ 4,707

a. The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 1.44% and 0.815% per annum as of December 31, 2022 and 2021, respectively. The information on pledged time deposits is set out in Note 33.
b. Refer to Note 10 for information relating to the credit risk management and impairment of investments in financial assets at amortized cost.

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as at amortized cost.

Financial assets at amortized cost - current Financial assets at amortized cost - non-current		December 31	December 31
		2022 $ 67 4,657	2021 $ 67 4,707

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$ 4,724

4,774

The Company invests only in debt instruments that have low credit risk for the purpose of impairment assessment. The credit rating information is supplied by independent rating agencies. In determining the expected credit losses for debt instrument investments, the Company considers the historical default rates of each credit rating supplied by external rating agencies, the current financial condition of debtors, and the future prospects of the industries. Due to the debt instrument investments have low credit risk and sufficient ability to settle contractual cash flows, as of December 31, 2022 and 2021, no expected credit losses have been recognized in financial assets measured at amortized cost.

11. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

Notes receivable At amortized cost Notes receivable - operating Accounts receivable (Including related parties) At amortized cost Less: Allowance for impairment loss		December 31	December 31
		2022 $ 399,898 $ 1,273,493 11,974 $ 1,261,519	2021 $ 395,276 $ 1,040,873 3,290 $ 1,037,583

a. Notes receivable

The Company analyzed notes receivable was not past due based on past due status, and the Company did not recognize an expected credit loss for notes receivable as of December 31, 2022 and 2021.

b. Accounts receivable (Including related parties)

The average collection period for receivables due to sales was between 30 to 90 days. No interest was charged on accounts receivable.

In order to minimize credit risk, the management of the Company 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. In addition, the Company 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. In this regard, the management believes the Company ’ s credit risk was significantly reduced.

The Company applies the simplified approach to providing for expected credit losses prescribed, which permits the use of lifetime expected loss provision for all accounts receivable. The expected credit losses on accounts receivable are estimated using a provision matrix by reference to 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. As the Company ’ s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company ’ s different customer base.

The Company writes off an account receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For account receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are

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recognized in profit or loss.

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

December 31, 2022

	Less than	Less than		31 to 60		61 to 90		91 to 120	91 to 120	121 to 150	121 to 150	151 to 365	151 to 365		Over 365	Over 365
		30 Days		Days		Days			Days		Days		Days			Days		Total
Expected credit loss rate		0.1%		0.27%		0.67%			2.17%		10.58%	31.99%～				100%
													44.98%
Gross carrying amount		$ 943,250		$ 216,241		$ 80,809		$	8,436	$	714	$	22,195		$	1,848		$1,273,493
Loss allowance (Lifetime	(	425 )	(	579 )	(	543 )	(		183 )	(	76 )	(	8,320 )	(		1,848 )	(	11,974 )
ECL)
Amortized cost		$ 942,825		$ 215,662		$ 80,266		$	8,253	$	638	$	13,875		$	-		$1,261,519
December 31, 2021
	Less than			31 to 60		61 to 90		91 to 120		121 to 150		151 to 365			Over 365
		30 Days		Days		Days			Days		Days		Days			Days		Total
Expected credit loss rate		0.05%		0.14%		0.41%			1.52%		7.17%	16.16%～				100%
													23.42%
Gross carrying amount		$824,965		$136,489		$ 53,953		$	21,972	$	1,041	$	243		$	2,210		$1,040,873
Loss allowance (Lifetime	(	202 )	(	191 )	(	221 )	(		334 )	(	75 )	(	57 )	(		2,210 )	(	3,290)
ECL)
Amortized cost		$824,763		$136,298		$ 53,732		$	21,638	$	966	$	186		$	-		$1,037,583

The movements of the loss allowance of contract asset and accounts receivable (Including related parties) were as follows:

December 31, 2022

Contract Asset
(Including
related parties)
Accounts
Receivable
(Including
related parties)
Balance at January 1
$ 1,745
$ 3,290
Add:
Net
remeasurement
of
loss
allowance
(
197)
8,684
Balance at December 31
$ 1,548
$ 11,974
December 31,2021
Contract Asset
(Including
related parties)
Accounts
Receivable
(Including
related parties)
Balance at January 1
$ 2,452
$ 5,073
Add: Net remeasurement of loss
allowance
(
707 )
(1,247)
Less: Amounts written off
-
(
536)
(
Balance at December 31
$ 1,745
$ 3,290

Total
$ 5,035
8,487
$ 13,522
Total
$ 7,525
(1,954)
536)
$ 5,035

29 -

12. INVENTORIES

Finished goods Work in process Raw materials and supplies		December 31	December 31
		2022 $ 90,126 22,615 192,129 $ 304,870	2021 $ 81,421 9,872 175,158
			$ 266,451

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2022 and 2021 was $ 4,533,229 thousand and $ 3,863,835 thousand, respectively. For the years ended December 31, 2021, the cost of goods sold included inventory write-downs amounting to $752 thousand.

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments in subsidiaries Investments in associates a. Investments in subsidiaries Chiayi Concrete Industrial Corporation Huanchung Cement International Corporation Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation Uneo Incorporated Li Yong Development Corporation. Tainan Concrete Industrial Corporation		December 31	December 31
		2022 2021 $ 2,022,509 $ 1,219,359 10,618,473 9,892,573 $ 12,640,982 $ 11,111,932 December 31	2021 $ 1,219,359 9,892,573
			$ 11,111,932
		2022 $ 40,488 115,686 98,997 705,049 330,170 34,327 19,467 678,325 $ 2,022,509	2021 $ 40,619 112,282 97,490 768,307 137,759 43,336 19,566 -
			$ 1,219,359

Proportion of Ownership and Voting Rights Percentage Chiayi Concrete Industrial Corporation. Huanchung Cement International Corporation. Kaohsiung Harbor Transport Company. Universal Investment Corporation. Universal Concrete Industrial Corporation. Uneo Incorporated. Li Yong Development Corporation. Tainan Concrete Industrial Corporation.(note)	December 31
	2022 2021 86.63% 86.63% 69.99% 69.99% 100.00% 100.00% 100.00% 100.00% 58.12% 58.12% 100.00% 100.00% 100.00% 100.00% 67.45% -

Note ： The Company acquired 759 thousand shares and 120 thousand shares held by the non-controlling interest of Tainan Concrete Industrial Corp. between January to September in

30 -

2022, and October to November in 2021, resulting in an increase in shareholding ratio. In addition, the company acquired control of Tainan Concrete Industrial Corp. in March 2022 and included in subsidiaries. Please refer to Note 27.

b. Investments in Associates

Material associate Lioho Machine Works Ltd. Associates that are not individually material Tainan Concrete Industrial Corporation		December 31	December 31
		2022 $ 10,618,473 - $ 10,618,473	2021 $ 9,810,809 81,764
			$ 9,892,573

Note: The changes in investment on Tainan Concrete Industrial Corporation in Note 27.

Material associates

Name of Associate Lioho Machine Works Ltd.	Proportion of Ownership and Voting Rights
	December 31
	2022 2021 29.86% 29.86%

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

The share of net income and other comprehensive income from associates under equity method were accounted for based on the audited financial statements.

The summarized financial information below represents amounts shown in the financial statements of Lioho Machine Works Ltd. which were prepared in accordance with IFRSs and adjusted by the Company for equity accounting purposes.

Equity Operating revenue Net profit for the year Other comprehensive loss Dividends received from Lioho Machine Works Ltd.		December 31	December 31
	2022 2021 $ 35,561,344 $ 32,856,494 For the Year Ended December 31
			2022 2021 $ 12,040,246 $ 7,518,260 $ 2,756,092 $ 1,240,141 $ 547,750 $ (154,295) $ 179,162 $ 537,489

Associates that are not individually significant

Share of the company Net profit for the year Other comprehensive income	For the Year Ended December 31	For the Year Ended December 31
		2022 2021 $ 411 $ 2,594 - ( 589)

31 -

Total comprehensive income

411

2,005

Profit and Loss of affiliated enterprise of equity method and other comprehensive P&L are recognized according to the financial statements of respective affiliated enterprises under the same period which is audited by CPA.

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14. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Reclassification from investment properties Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Disposals Reclassification from investment properties Impairment loss Balance at December 31, 2021 Carrying amounts at December 31, 2021 Cost Balance at January 1, 2022 Additions Disposals ( Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Impairment loss Balance at December 31, 2022 Carrying amounts at December 31, 2022	Land $4,879,453 - - ( (491,945) $4,387,508 $ - - - ( - - $ - $4,387,508 $ 4,387,508 2,105 2,493) $ 4,387,120 $ - - - $ - $ 4,387,120	Buildings Machinery and equipment Transportatio n equipment Other equipment Constructio n in progress $1,648,906 $3,162,364 $ 404,659 $ 733,574 $672,915 358,602 64,748 104,134 25,226 249,380 39) ( 6,864) ( 5,812) ( 10,336) - - - - - $2,007,469 $3,220,248 $502,981 $748,464 $922,295 $1,113,553 $2,983,180 $ 350,125 $ 537,077 $ 103,005 22,619 33,272 20,006 19,118 - 12) ( 6,660) ( 5,812) ( 10,336) - - - - - - - - - $1,136,160 $3,009,792 $364,379 $545,859 $103,005 $871,309 $210,456 $138,602 $202,605 $819,290 $ 2,007,469 $ 3,220,248 $ 502,981 $ 748,464 $ 922,295 2,618 20,788 9,474 10,310 37,993 - ( 300) ( 179) ( 2,761) - $ 2,010,087 $ 3,240,736 $ 512,276 $ 756,013 $ 960,288 $ 1,136,160 $ 3,009,792 $ 364,379 $ 545,859 $ 103,005 28,532 33,356 27,581 20,019 - - ( 300) ( 179) ( 2,761) - 274,161 $ 1,164,692 $ 3,042,848 $ 391,781 $ 563,117 $ 377,166 $ 845,395 $ 197,888 $ 120,495 $ 192,896 $ 583,122	Total $11,501,871 802,090 ( 23,051) (491,945	Total $11,501,871 802,090 ( 23,051) (491,945
			( ( (	$11,788,965
				$5,086,940 95,075 22,820) $5,159,195 $6,629,770 $11,788,965 83,288 5,733) $11,866,520
				$ 5,159,195 109,488 3,240) 274,161 $ 5,539,604 $ 6,326,916

There are indications of impairment due to the expected lower production capacity of certain

equipment in our Lujhu gypsum board plant. Therefore, our company performed an impairment test in 2022 and recognized an impairment loss of $274,161 thousand in non-operating expenses.

The future recoverable amount is determined using the replacement cost method, taking into account all costs required to replace or build an entirely new asset under the current condition, less the physical depreciation, functional depreciation, and economic depreciation incurred to the assets of appraisal.

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

Buildings Main buildings 20-60 years Outbuildings and construction 2-16 years Engineering systems 9-16 years

33 -

Machinery and equipment Transportation equipment Other equipment

2-17 years 2-7 years 2-20 years

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31	December 31
2022 $ 47,282 11,275 $ 58,557 For the Year Ended		2021 $ 31,206 8,117
		$ 39,323
		December 31
	2022 $ 55,298 $ 9,868 3,668 $ 13,536	2021 $ 31,491
		$ 16,033 3,088
		$ 19,121

Except for depreciation expenses added and recognized above, the right-of-use asset did not encounter underlying sub-lease or loss in value. b. Lease liabilities

Carrying amounts Current Non-current		December 31	December 31
		2022 $ 10,587 $ 48,170	2021 $ 13,445
			$ 26,072

Ranges of discount rates for lease liabilities were as follows:

Buildings Machinery	December 31
	2022 2021 0.9% 0.9% 0.9%～1% 0.9%～1%

c. Other lease information

Expenses relating to short-term leases Expenses relating to low-value assets leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2022 $ 10,893 $ 208 $ 24,894	2021 $ 3,812
			$ 208
			$ 23,401

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

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16. INVESTMENT PROPERTIES

Cost Balance at January 1 , 2021 Disposals Reclassification to property, plant and equipment Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1 , 2021 Depreciation expense Disposals Balance at December 31, 2022 Carrying amounts at December 31, 2021 Cost Balance at January 1, 2022 Additions Disposals Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Balance at December 31, 2022 Carrying amounts at December 31, 2022		Land $ 239,939 210 491,945 $ 732,094 $ 61,135 - $ 61,135 $ 670,959 Land $ 732,094 3,956 72,201) $ 663,849 $ 61,135 - 17,903) $ 43,232 $ 620,617		Buildings $ 116,602 $ 116,602 $ 101,378 567 $ 101,945 $ 14,657 Buildings $ 116,602 - 18,375) ( $ 98,227 $ 101,945 567 18,374) ( $ 84,138 $ 14,089	Total $ 356,541 210 491,945 $ 848,696 $ 162,513 567 $ 163,080 $ 685,616 Total $ 848,696 3,956 90,576) $ 762,076 $ 163,080 567 36,277) $ 127,370 $ 634,706
	( (		( (

As of December 31, 2022 and 2021, the Company has not yet completed the property registration of the land both amounting to $95,548 thousand, because of the restriction in the regulations but the property has been secured with mortgage registration.

The investment properties are depreciated using the straight-line method over 61 years of useful lives.

The fair values of the investment properties of the company as at December 31, 2022 and 2021 were $1,928,769 thousand and $1,564,230 thousand respectively. The fair values were determined by the independent appraisal company on each balance sheet date in the past three years with reference to similar real estate The fair value of the transaction price is based on market

35 -

evidence, or the company's management refers to the actual transaction price in nearby areas.

The maturity analysis of lease payments receivable under operating leases of investment properties at December 31, 2022 and 2021 was as follows:

properties at December 31, 2022 and 2021 was as follows:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 onwards		December 31
		2022 $ 10,296 6,657 6,592 6,689 6,689 10,234 $ 47,157	2021 $ 13,645 10,254 8,801 6,628 6,689 16,923 $ 62,940

17. OTHER INTANGIBLE ASSETS

	Patents		Licenses and Franchises	Trademarks	Computer Software
							Total

Cost

Balance at January 1, 2021	$ 7,950		$ 5,000	$ 20	$ 3,336		$ 16,306

Additions	208		773	-	2,462		3,443
Disposals		(	11)			(	11)
Balance at December 31,	$ 8,158		$ 5,762	$ 20	$ 5,798		$ 19,738
2021

Accumulated amortization

Balance at January 1, 2021	$ 4,307		$ 2,869	$ 9	$ 1,510		$ 8,695

Amortization expense	563		999	2	1,428		2,992

Balance at December 31, 2021	$ 4,870		$ 3,868	$ 11	$ 2,938		$ 11,687


Carrying amounts at December 31, 2021	$ 3,288		$ 1,894	$ 9	$ 2,860		$ 8,051


Cost
Balance at January 1, 2022	$ 8,158		$ 5,762	$ 20	$ 5,798
							$ 19,738
Additions	270		-	24	5,394		5,688

Balance at December 31, 2022	$ 8,428		$ 5,762	$ 44	$ 11,192
							$ 25,426


Accumulated amortization
Balance at January 1, 2022	$ 4,870		$ 3,868	$ 11	$ 2,938
							$ 11,687
Amortization expense	735		236	3	1,441		2,415

Balance at December 31, 2022	$ 5,605		$ 4,104	$ 14	$ 4,379
							$ 14,102

Carrying amounts at December 31, 2022	$ 2,823		$ 1,658	$ 30	$ 6,813
							$ 11,324

36 -

Other intangible assets are amortized on a straight-line basis over the estimated useful lives as follows:

Patents 19 years Licenses and franchises 10 years Trademarks 10 years Computer Software 2-3 years

18. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Line of credit borrowings

December 31 2022 2021 $ 2,210,000 $ 1,780,000

The range of interest rates was 1.60% - 1.92% and 0.82% - 0.85% per annum as of December 31, 2022 and 2021.

b. Short-term bills payable

Commercial papers Less: Unamortized discount on bills payable		December 31	December 31
		2022 $ 800,000 739 $ 799,261	2021 $ 1,060,000 708
			$ 1,059,292

The Company did not provide any collateral over these balance.

Outstanding short-term bills payable as follows:

Promissory Institutions December 31, 2022 International Bills Finance Corporation Mega Bills Finance Corporation December 31, 2021 Taiwan Finance Co., Ltd. Ta Ching Bills Finance Co., Ltd. Taiwan Cooperative Bills Finance Co., Ltd. Mega Bills Finance Co., Ltd.	Nominal Amount $ 300,000 500,000 $ 800,000 $ 190,000 300,000 270,000 300,000 $1,060,000	Discount Amount Carrying Value Interest Rate $ 281 $ 299,719 2.138% 458 499,542 2.088% $ 739 $ 799,261 $ 88 $ 189,912 0.848% 91 299,909 0.848% 370 269,630 0.848% 159 299,841 0.808% $ 708 $1,059,292

19. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

37 -

Notes payable and accounts payable (including related parties) were resulted from operating activities. The average credit period on purchases is 30 to 65 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. Therefore, no interest was charged on the payables.

20. OTHER PAYABLES AND OTHER LIABILITIES

Current Other payable Payable for salaries or bonus Payable for freight Payable for remuneration to directors Payable for remuneration to employees Payable for promotion service fee Payable for business tax Payable for taxes Payable for equipment Payable for utility bills Payable for annual leave Others Other liabilities Temporary receipts Others		December 31	December 31
		2022 $ 101,311 38,922 31,290 31,290 26,635 23,027 17,658 10,336 7,958 6,247 21,820 $ 316,494 $ 21,616 58 $ 21,674	2021 $ 89,241 39,561 20,860 20,860 10,375 6,188 25,157 13,912 5,495 7,609 19,569
			$ 258,827
			$ 18,490 100
			$ 18,590

21. 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, the Company makes monthly contributions to employees ’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 3% 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. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. 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.

In 2022, our company fully settled all employee retirement benefits and applied to the Bureau

38 -

of Labor Insurance, MOL to close the pension fund. We are currently awaiting approval from the bureau to receive the remaining balance in the pension fund.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability		December 31	December 31
	(	2022 $ - 6,697) ( $ 6.697	2021 $ 223,889 186,555)
			$ 37,334

Movements in net defined benefit liability were as follows:

Present Value of the Defined Benefit Obligation Balance at December 31, 2021 249,305 Current service cost 3,590 Net interest expense (income) 873 Components of defined benefit costs recognized in profit or loss $ 4,463 Return on plan assets (excluding amounts included in net interest) - Actuarial loss - changes in demographic assumptions 11,422 Actuarial loss - changes in financial assumptions ( 15,462 ) Actuarial gain - experience adjustments ( 3,379) Recognized in other comprehensive income (7,419) Contributions from the employer - Benefits paid ( 22,460) Balance at December 31, 2021 $ 223,889 Service cost Current service cost 2,741 Settlement Benefit ( ( 29,800 ) Interest expenses (income) 1,679 Components of defined benefit costs recognized in profit or loss ( 25,380 ) Contributions from the employer - Settlement ( 198,509) Balance atDecember31, 2022 $ -	Fair Value of the Plan Assets ( 183,146) - ( 652) ($ 652) ( 2,629 ) - - - ( 2,629) ( 22,588) 22,460 ($ 186,555) - ( 14,229 ) ( 1,422 ) ( 15,651 ) ( 3,000 ) 198,509 ($ 6,697)	Net Defined Benefit Liability 66,159 3,590 221 $ 3,811 ( 2,629 ) 11,422 ( 15,462 ) ( 3,379) (10,048) ( 22,588 ) - $ 37,334 2,741 ( 44,029 ) 257 ( 41,031 ) ( 3,000 ) - ($ 6,697)
	(	(
	(	( (
	(

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

For the Year Ended December 31 2022 2021

39 -

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses	( ( ( (	$ 25,369 ) 6,804 ) 7,415 ) 1,443 ) $ 41,031	$ 2,281 612 791 127
	(		$ 3,811

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 and 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 for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan ’ s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary 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:

Discount rate Expected rate of salary increase	December 31
	2022 2021 1.4% 0.75% 4% 4%

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

would increase (decrease) as follows:
Discount rate 0.5% increase 0.5% decrease Expected rate of salary increase 0.5% increase 0.5% decrease	December 31
	2022 $ - ( $ - $ - $ - (	2021 $ 9,546) $ 10,172
		$ 9,575 $ 9,090)

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 the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

The expected contributions to the plan for the next year		December 31	December 31
		2022 $	2021 $ 6,000

40 -

The average duration of the defined benefit obligation

8years

22. EQUITY

a. Share capital

Number of shares authorized (thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2022 1,000,000 $ 10,000,000 653,609 $ 6,536,092	2021 653,609 $ 6,536,092 653,609 $ 6,536,092

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) Treasury share transactions Differences between the actual equity value of subsidiaries acquired or disposed and its carrying amounts. May be used to offset a deficit only Share of changes in capital surplus of associates Overdue dividends not collected by shareholders		December 31	December 31
		2022 $ 21,606 57,156 22,260 22,477 $ 123.499	2021 $ 21,606 945 21,920 22,479 $ 66,950

Note: Such capital surplus 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).

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Articles, where the Company makes profit in a fiscal year, the profit shall be first utilized to pay taxes, offset losses of previous years, set aside as legal reserve with 10% of the remaining profit, set aside or reverse a special reserve in accordance with the laws and regulations, and lastly, together with any undistributed retained earnings, serve as the basis of a distribution plan proposed by the Company ’ s board of directors in accordance with the resolution of the shareholders ’ meeting pertaining to the distribution of dividends and bonus to shareholders. For the policies on the distribution of employees ’ compensation and remuneration of directors and supervisors after the amendment, refer to employees ’ compensation and remuneration of directors and supervisors in Note 24-g.

According to the Company ’ s Articles, dividends can be distributed by way of stock dividends

41 -

and cash dividends. However, the ratio for stock dividend shall not exceed 50% of the total distribution unless the value of cash dividends is less than $ 0.5 per share. The distribution of dividends can be adjusted by shareholders based on the company ’ s profit, capital status, and operating requirement.

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.

When a special reserve is appropriated for cumulative net debit balance reserves from prior period and cumulative net increases in fair value measurement of investment properties from prior period, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings is not sufficient.

The appropriations of 2021 and 2020 earnings have been approved in the shareholders ’ meetings on June 14, 2022 and July 27, 2021, respectively. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)		2021 $ 108,808 $ 653,609 $ 1		2020
				$ 115,575 $ 718,970 $ 1.1

The appropriation of earnings for 2022 had been proposed by the Company ’ s board of directors on March 16, 2023. The appropriation and dividends per share were as follows:

	Appropriation	Appropriation	Dividends Per
	of	Earnings	Share (NT$)
Legal reserve	$	204,243
Cash dividends		980,414	$ 1.5

The appropriation of earnings for 2022 will subject to the resolution of the shareholders ’ meeting.

d. Special reserves

Special reserves
First-time adoption IFRSs		December 31
		2022 $ 3,185,793	2021 $ 3,185,793

Because the increase in the retained earnings caused by the first-time adoption of IFRSs was insufficient to be appropriated for provision, the Company had provided for special reserve based on the increase of the retained earnings, an adjustment that was recorded per company policy on first-time adoption.

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

Balance at January 1	For the year Ended December 31
	2022 2021 $ (945,843) $ (892,298)

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Share of exchange difference of associates accounted for using the equity method Balance at December 31 2) Unrealized gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Share from associates accounted for using the equity method Other comprehensive income The cumulative profit or loss arising from the disposals of equity instruments is transferred to retained earnings. Balance at December 31 3) Remeasurement of defined benefit plans Balance at January 1 Changes in tax rate Remeasurement of defined benefit plans Remeasurement on defined benefit plans related income tax Share of remeasurement of defined benefit plans of associates accounted for using the equity method Balance at December 31	(146,367) $ (799,476) For the year Ended	(146,367) $ (799,476) For the year Ended	(53,545) $ (945,843) December 31
	2022 2021 $ 1,638,872 $ 1,396,993 143,686 199,183 (69,583) 42,696 74,103 241,879 (1,077) $ 1,711,898 $ 1,638,872 For the Year Ended December 31
		2022 $ 69,720 - - 19,674 $ 89,394	2021 $ 51,052 10,048 335 8,285 $ 69,720

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4) Other equity items

Balance at January 1 Balance at December 31

	For the Year Ended December 31	For the Year Ended December 31
( (	2022 $ 17,217 ) ( $ 17,217) (	2021 $ 17,217 ) $ 17,217)

23. REVENUE

For the Year Ended December 31

Revenue from contracts with customers Revenue from sale of goods

2022 2021 $ 5,710,196 $ 4,826,439

a. Disaggregation of revenue

Disaggregation of revenue
Concrete Cement Gypsum Board panels Other	For the Year Ended		December 31
		2022 $ 3,952,238 800,911 934,356 22,691 $ 5,710,196	2021 $ 3,338,771 677,812 787,072 22,784
			$ 4,826,439

b. Contract balances

Accounts receivables (Including related parties) Contract assets - current Sale of goods Less: Allowance for impairment loss Contract assets from related parties Sale of goods Less: Allowance for impairment loss Contract liabilities - current Sale of goods		December 31 2022 2021 $1,661,417 $1,432,859 $ 2,198 $ 3,181 439 636 1,759 2,545 5,546 5,546 1,109 1,109 4,437 4,437 $ 6,196 $ 6,982 $ 240 $ 1,224		January 1
		2022 $1,661,417 $ 2,198 439 1,759 5,546 1,109 4,437 $ 6,196 $ 240		2021 $1,210,662 $ 6,973 1,395 5,578 5,285 1,057 4,228 $ 9,806 $ 565

In accordance with the terms of the contract, the customers retain a portion of contract price and the Company recognized the amount as contract assets before completing the contractual obligations. The Company considers the historical expected loss rates and the state of the industry in estimating expected loss.

December 31 2022 2021

44 -

Expected credit loss rate Gross carrying amount of retention receivable Allowance for impairment loss (Lifetime ECLs)

(	20% $ 7,744 1,548) ( $ 6,196	20% $ 8,727 1,745)
		$ 6,982

24. PROFIT BEFORE INCOME TAX

a. Interest income Bank deposits Related parties loans	For the Year Ended	For the Year Ended	December 31
		2022 $ 571 1,178 26 $ 1,775	2021 $ 63 78 - $ 141

b. Other income Dividend income Rental income - investment properties (note 16) Remuneration of directors Others c. Other gains and losses Net foreign exchange gains and losses Gain (loss) on disposal of property, plant and equipment Disposal of investment property interests Disposal of benefits of intangible assets Interest in financial assets Mandatory financial assets at fair value through profit or loss Gain on disposal of associates Impairment loss Development and design expenditure Others	For the Year Ended	For the Year Ended	December 31 2021 $ 142,112 16,566 9,027 10,028 $ 177,733 December 31 2021 $ 488 ) 17 ) 2,989 491 - - 6,286) 6,233) $ 9,544)
	2022 $ 193,444 15,419 7,624 7,729 $ 224,216 For the Year Ended
	( ( (	2022 $ 2,548 ( 3,950 ( 107,131 - 669 373,540 (274,161) 5,143) ( 4,554) ( $ 203,980) (

d. Interest expense

Interest on loans Interest on lease liabilities	For the Year Ended	For the Year Ended	December 31
		2022 $ 34,678 356 $ 35,034	2021 $ 20,690 249
			$ 20,939

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e. Depreciation and amortization

Property, plant and equipment Right-of-use assets Investment properties Intangible assets An analysis of depreciation - by function Operating costs Operating expenses Others (as non-operating income and expense) An analysis of amortization - by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2022 $ 109,488 13,536 567 2,415 $ 126,006 $ 95,036 27,988 567 $ 123,591 $ 378 2,037 $ 2,415	2021 $ 95,075 19,121 567 2,992
			$ 117,755
			$ 92,869 21,327 567
			$ 114,763
			$ 204 2,788
			$ 2,992

f. Employee benefits expense

For the Year Ended	For the Year Ended	December 31
2022 $ 417,440 38,682 50,570 506,692 17,086 (41,031) (23,945) $ 482,747 For the Year Ended		2021 $ 371,346 35,254 38,552
		445,152
		14,269 3,811
		18,080
		$ 463,232
		December 31
	2022 $ 301,763 180,984 $ 482,747	2021 $ 293,478 169,754
		$ 463,232

g. Employees ’ compensation and remuneration of directors

The Company accrued employees ’ compensation and remuneration of directors at the rates no less than 1% and no higher than 3%, respectively, of net profit before income tax, employees ’ compensation, and remuneration of directors.

The employees ’ compensation and remuneration of directors for the year ended December 31, 2022 and 2021 have been approved on March 16, 2023 and March 28, 2022 respectively as follows:

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Accrual rate Employees’compensation Remuneration of directors Amount Employees’compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2022 2021 1.37% 1.68% 1.37% 1.68% For the Year Ended December 31
		2022 $ 31,290 $ 31,290	2021 $ 20,860 $ 20,860

If there is a change in the amounts after the annual financial statements were authorized for issue, the differences will be recognized in the next year as a change in accounting estimate.

There was no difference between the actual amounts of employees ’ compensation and remuneration of directors and supervisors paid and the amounts recognized in the financial statements for the year ended December 31, 2021 and 2020.

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

25. INCOME TAX

a. Major components of tax expense recognized in profit or loss

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	For the Year Ended	For the Year Ended	December 31
		2022 $ 155,275 11,814 1,105 ( 168,194 5,445 - ( 5,445 ( $ 173,639	2021 $ 120,704 7,953 4,200)
			124,457
			6,673 18,107)
			11,434)
			$ 113,023

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

Profit before tax Income tax expense calculated at the statutory rate Nondeductible expenses in determining taxable income Realized investment loss	For the Year Ended	For the Year Ended	December 31
	(	2022 $ 2,215,034 $ 443,006 283,263) ( -	2021 $ 1,201,101
			$ 240,220 84,628 ) -

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Tax-exempt income		56,883)	(		28,704)
Temporary difference		54,210			489
Land value increment tax		3,650			-
Income tax on unappropriated earnings		11,814			7,953
Adjustments for prior years’tax		1,105	(		22,307)
	$	173,639		$	113,023

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Remeasurement of defined benefit plans	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ -	2021 $ 335

c. Current tax liabilities

Income tax payable	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 112,632	2021 $ 107,052

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, 2022

Deferred Tax Assets Temporary differences Payment received in advance Unrealized foreign exchange loss Unrealized payable promotion expenses Defined benefit obligation Deferred Tax Liabilities Temporary differences Land value increment tax Defined benefit obligation Cash surrender value of life insurance	Opening Balance $ 177 98 2,076 14,351 $ 16,702 $ 1,082,113 6,884 - $ 1,088,907	Recognized in Profit or Loss Recognized in Other Comprehensiv e Income $ 202 $ - (98) - 3,251 - (8,806) - $ (5,451) $ - ($ 623) $ - - - 617 - ($ 6) ($-)	Closing Balance $ 379 - 5,327 5,545
			$ 11,251
			$ 1,081,490 6,884 617
		(	$ 1,088,991

For the year ended December 31, 2021

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Deferred Tax Assets Payment received in advance Unrealized foreign exchange loss Unrealized payable promotion expenses Defined benefit obligation Deferred Tax Liabilities Temporary differences Land value increment tax Defined benefit obligation Cash surrender value of life insurance	Opening Balance $ 400 4 4,940 - $ 5,344 $ 1,082,113 7,219 76 $ 1,089,408	Recognized in Profit or Loss Recognized in Other Comprehensive Income ( $ 223) $ - 94 - ( 2,864) - 14,351 - $ 11,358 $ - $ - $ - - ( 335) ( 76) - ($ 76) ($ 335)	Closing Balance $ 177 98 2,076 14,351
			$ 16,702
			$ 1,082,113 6,884 -
		(	$ 1,088,997

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

Deductible temporary differences Allowance for impaired inventories Impairment losses on assets		December 31	December 31
		2022 $ 34,027 555,539 $ 589,386	2021 $ 34,027 281,199 $ 315,226

g. Income tax examinations

The tax returns of the Company through 2020 have been assessed by the tax authorities.

26. EARNINGS PER SHARE

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

Net Profit for the Year

Profit for the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 2,041,395	2021 $ 1,088,078

Weighted average number of ordinary shares outstanding (in thousand shares):

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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 December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 653,609 1,747 $ 655,356	2021 $ 653,609 1,197 $ 654,806

Since 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, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

27. ACQUISITION OF SUBSIDIARIES

The Company originally held an equity interest in Tainan Concrete Industrial Corporation, which was accounted for using the equity method as an associate. However, in March 2022, the Company acquired additional shares in Tainan Concrete for a cash consideration of $22,080 thousand, increasing its ownership interest from 48.75% to 51.95% (which has since increased to 67.45% as of December 31, 2022). With majority voting rights and control obtained, Tainan Concrete is now considered a subsidiary of the Company. For further details, please refer to Note 28 of the Company's console dated financial statements for the year ended 2022.

28. PARTIAL ACQUISITION OR DISPOSAL OF SUBSIDIARIES WITHOUT CHANGE OF CONTROL

During the period from May to July 2022 and from June to August 2021, the Company acquired a portion of the shares of Tainan Concrete and Universal Concrete, and its proportion of ownership interests from 51.95% to 67.45% and from 57.19% to 58.12%, respectively.

The above transactions were accounted for as equity transactions since there was no change in the Corporation ’ s control over these subsidiaries. Refer to the note 29 of the consolidated financial statements for the year ended December 31, 2022 for the disclosures of equity movements of subsidiaries.

29. CASH FLOWS INFORMATION

Cash used in obtaining property, plant and equipment by the Company during 2022 and 2021 was as below:

For the Year Ended December 31 2022 2021

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Increase in property, plant and equipment Payables on equipment Prepaid on equipment Total cash paid	$ 83,288 3,576 6,744 $ 93,608	$ 802,090 7,109 ( 617,665)	$ 802,090 7,109 ( 617,665)
			$ 191,534

30. CAPITAL MANAGEMENT

The Company requires significant amounts of capital to build and expand its production facilities and equipment. The Company manages its capital in a manner to ensure that it has sufficient and necessary financial resources for working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing and future operations.

31. FINANCIAL INSTRUMENTS

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

The Company believes that the carrying amounts of financial instruments that are not measured at fair value, including cash and cash equivalents, contract assets, notes and accounts receivable, financial assets at amortized cost, short-term loans, accounts payable, and guarantee deposits received, recognized in the financial statements approximate their fair value.

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

December 31, 2022

Financial assets at FVTPL Listed shares Financial assets at FVTOCI Investments in equity instruments at FVTOCI Listed shares Unlisted shares December 31, 2021 Financial assets at FVTOCI Listed shares Investments in equity instruments at FVTOCI	Level 1 $ 7,535 $ 1,858,020 - $ 1,858,020 Level 1 $ 6,866	Level 2 $ - $ 301,600 - $ 301,600 Level 2 $ -	Level 3 $ - $ - 1,775,212 $ 1,775,212 Level 3 $ -	Total $ 7,535
				$ 2,159,620 1,775,212
				$ 3,934,832
				Total $ 6,866

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Listed shares Unlisted shares	$ 2,081,210 - $ 2,081,210	$ 271,050- - $ 271,050-	$ - 1,438,886 $ 1,438,886	$ 2,352,260 1,438,886
				$ 3,791,146

There were no transfers between Level 1 and 2 in the current and prior years.

2) Adjustments for financial instruments measured using level 3 fair value

Financial assets at fair value through other comprehensive income.

Balance at January 1 Recognized in other comprehensive income (unrealized valuation gain or loss on financial assets at fair value through other comprehensive income) Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 1,438,886 336,326 $ 1,775,212	2021 $ 1,419,292 19,594 $ 1,438,886

3) Input and measurement technique of Level 2 fair value measurement.

Category of financial instrument Measurement technique and input value Investment of Equity Instrument Purchase of stock via private offering which is subject to a three-year-lock-up period. In light of the impact on the target to be measured due to the restriction of transaction, a discount is imposed to reflect the restricted liquidity of the stock. The target to be measure is the stock of a public listed company. The Closing price at the day of measurement was adopted as the fair value of an unrestricted stock price. The fair value of the restricted stock price is then derived via the Black-Scholes model.

4) Valuation techniques and inputs applied for Level 3 fair value measurement The fair values of unlisted equity securities in ROC was estimated based on the recent net equity or transaction price. The marketing valuation method is based on price of comparable company, and the value of the securities is estimated by comparing, analyzing and adjusting.
c. Categories of financial instruments

Financial assets Measured at fair value through profit or loss–mandatory measured at fair value through profit or loss Financial assets at amortized cost (1)	December 31
	2022 2021 $ 7,535 $ 6,866 2,194,020 1,648,867

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Financial assets at FVTOCI Equity instruments 3,934,832 3,791,146 Financial liabilities Financial liabilities at amortized cost (2) 3,991,188 3,728,810

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, contract assets (including related parties), notes and accounts receivable (including related parties), other receivables, and financial assets at amortized cost (current and non-current).
2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, short-term bills payable, notes and accounts payable (including related parties), other payables and deposits received.
d. Financial Risk Management Objectives and Policies

The Company ’ s major financial instruments include accounts receivable, accounts payables and short-term loans. The Company ’ s Corporate Treasury function provides services to the business departments, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze the exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Company ’ s activities exposed it primarily to the financial risks of changes in interest rate risk (see (a) below) and other price risk (see (b) below).

a) Interest rate risk

The Company was exposed to interest rate risk arising from short-term borrowing at New Taiwan dollar (NTD) market rates of overweight interest rates. Due to lower NTD borrowing rates and small borrowing position, the interest rate sensitivity is lower, and the interest rate risk is little risk to the Company.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2022 2021
	$ 36,969 $ 4,774 858,018 1,098,809 241,573 92,773 2,210,000 1,780,000

b) Other price risk

The Company was exposed to equity price risk through its investments in listed equity securities and mutual funds. The Company manages this exposure by maintaining a portfolio of investments with different risks. The Company ’ s equity price risk was mainly

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concentrated on equity instruments operating in shares and open-end mutual funds quoted in the Taiwan Stock Exchange. In addition, the Company will evaluate the price by the closing price of the equity investments and the net asset value of the fund every month.

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices of domestic listed equity securities (excluding private placement), which was hold by the Group calculated by $ 1,858,020 thousand and $ 2,081,210 thousand, had been 1% higher/lower, the pre-tax other comprehensive income for the year ended December 31, 2022 and 2021 would have increased/decreased by $ 18,580 thousand and $ 20,812 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Financial assets are exposed to the potential effects of outstanding contracts between the Company and its counterparty or other parties. Such effects include the credit risk concentration, components, contractual amounts, and other receivables of financial products engaged by the Company.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company ’ s maximum exposure to credit risk, which would cause a financial loss to the Company due to the failure of counterparties to discharge an obligation and financial guarantees provided by the Company, could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

In addition to the following paragraph, the main customers of its credit are good, and the Company will regularly annually review the customer ’ s credit status, appropriately adjust the of credit line, and will require customers to provide the necessary guarantees or trade by cash in special situation. The sales department through an external peer visits to understand customer ’ s credit status. The customers mentioned above, was no significant credit risk exposure.

Part of the concrete customers of the Company is individuals and small-scale enterprises, except for a few large customers are concrete construction companies, industry characteristics resulting in some small-scale enterprises. In addition to using credit limit controls to reduce credit risks and the relevant proceedings to protect their claims, the Company has set adequate allowance for bad debts for higher credit risk customers in accordance with company policy. The credit risk arising from its maximum possible amount is disclosed in the Note 10.

The Company has no significant concentration of credit risk. As of 31 December 2022 and 2021, the maximum exposure of the Company for engaging in endorsement/guarantee was NT$230,000 thousand and NT$100,000 thousand, respectively.

3) Liquidity risk
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The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company ’ s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

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

The following table details the Company ’ s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period. December 31, 2022

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities		On Demand or Less than 3 Month $ 973,565 2,810 2,219,702 800,000 230,000 $4,226,077	3 Months to 1 Year $ - 8,255 - - - $ 8,255	1 Year to 5 Year $ 8,362 35,088 - - - $ 43,450	6Year to 10ear
					$ - 14,272 - - - $ 14,272

December 31, 2021

On Demand or Less than 3 Month Non-derivative financial liabilities Non-interest bearing $ 880,691 Lease liabilities 3,884 Variable interest rate liabilities 1,781,972 Fixed interest rate liabilities 1,060,000 Guaranteed liabilities 100,000 $3,826,547	3 Months to 1 Year $ - 9,849 - - - $ 9,849	1 Year to 5 Year $ 8,827 26,455 - - - $ 35,282

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The amount included above for variable interest rate instruments for both non-derivative financial assets and liabilities was subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

b) Financing facilities

It is important for Company that loan is a resource of liquidity. As of December 31, 2022 and 2021, the Company has loan commitments $ 2,194,609 thousand, and $ 1,779,559 thousand, respectively.

32. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed below.

a. Name and relationship of related party

Related Party Name	Relationships of the Company
CHC Resources Corp.	The key management of the Company serves as
	a member of its board directors
Universal Construction Corp.	The key management of the Company serves as
	a member of its board directors
Sheng yuan Investment Corp.	The key management of the Company
Bo-Chih Investment Corp.	The key management of the Company
Yu-Sheng Investment Corp.	The key management of the Company
PAO GOOD INDUSTRIAL CO., LTD.	Other related parties
Pan Asia Corporation	Other related parties
Tainan Concrete Industrial Corp.	Associates(note)
Chiayi Concrete Industrial Corp	subsidiary corporation
Universal Concrete Industrial Corp	subsidiary corporation
Kaohsiung Harbor Transport Company.	subsidiary corporation
Uneo Incorporated	subsidiary corporation
Universal Investment Corp	subsidiary corporation

Note: Since March 2022, it has been a subsidiary of the Company.

b. Sales of goods

Account Items Sales revenue	Related Parties Category The key management of the Company serves as a member its board of directors Other related parties Subsidiaries	For the Year Ended December 31 2022 2021 $ 85,523 $ 62,364 65,968 52,864 22,692 22,784 $ 174,183 $ 138,012	For the Year Ended December 31 2022 2021 $ 85,523 $ 62,364 65,968 52,864 22,692 22,784 $ 174,183 $ 138,012	For the Year Ended December 31 2022 2021 $ 85,523 $ 62,364 65,968 52,864 22,692 22,784 $ 174,183 $ 138,012
				$ 62,364 52,864 22,784 $ 138,012

The prices and terms to related parties were not significantly different from transaction with

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third parties. The credit terms were 1 to 3 months.

c. Purchase of goods

Related Parties Category The Company is the key management of the company Other related parties	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 238,692 11,950 $ 250,642		2021 $ 217,957 9,634 $ 227,591

The purchased of goods is mainly gravel. The prices and terms to related parties were not significantly different from transaction with third parties. The credit terms were 30 to 65 days.

d. Contract assets

Related Party Category / Name The key management of the Company serves as a member its board of directors Pan Asia Corp. Less: Allowance for impairment loss		December 31	December 31
		2022 $ 5,546 1,109 $ 4,437	2021 $ 5,546 1,109 $ 4,437

e. Receivables from related parties (Excluding contract assets)

Account Items Accounts receivable from related parties Other receivables	Related Parties Category / Name Related parties The key management of the Company serves as a member its board of directors Subsidiaries Less: Allowance for impairment loss Subsidiaries Associates- Tainan Concrete Industrial Corp.(note)		December 31 2022 2021 $ 31,534 $ 26,432 10,183 5,309 3,293 5,013 33 12 $ 44,977 $ 36,742 $ 270 $ 580 $ 850 $	December 31 2022 2021 $ 31,534 $ 26,432 10,183 5,309 3,293 5,013 33 12 $ 44,977 $ 36,742 $ 270 $ 580 $ 850 $	December 31 2022 2021 $ 31,534 $ 26,432 10,183 5,309 3,293 5,013 33 12 $ 44,977 $ 36,742 $ 270 $ 580 $ 850 $
					$ 26,432 5,309 5,013 12 $ 36,742 $
					$

The outstanding receivables from related parties are unsecured.

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f. Payables to related parties

December 31	December 31	December 31
2022 $ 31,285 13,381 2,622 $ 47,288 $ 17,828	$ $	2021 26,611 13,918 2,700 43,229 19,203
	$

The outstanding payables from related parties are unsecured and would be paid in cash.

g. Lease arrangements - Company is lessee

The lease of the concrete plant leased by the Company from Associates expires in August 2022 and is renewed until August 2026. The concrete plant is for business use.

	December 31	December 31	December 31	December 31
2022 2021 $ - $ 25,785 265 717 $ 265 $ 26,502 For the Year Ended December 31		2021 $ 25,785 717
			$ 26,502
	2022 $ 126 4 $ 130			2021 $ 88 8 $ 96

The Company leased offices from related parties under lease contracts with normal terms and rentals payable monthly at market rates.

h. Lease arrangements - Company is lessor

The Company leased its office building, plant, machinery and equipment to related parties under operating leases for a term of 1 to 5 years. The rental prices are determined with reference to the market standards and charged on a monthly basis.

Total lease payment to be collected in the future is summarized as follows:

Category of the related The Company holding the position as chief management of another company Another company holding the position as chief	December 31
	2022 2021 $ 3,207 $ 3,207 92 23

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management of the Company Subsidiary corporation	468 $ 3,767	144
		$ 3,374

Total lease revenue is summarized as follows:

Related Party Category / Name The Company holding the position as chief management of another company Another company holding the position as chief management of the Company Subsidiary corporation	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 5,498 69 396 $ 5,963	2021 $ 5,498 23 396 $ 5,917

i. Loan to related parties

Line Item Other receivables Universal Concrete Industrial Corp Universal Investment Corp Tainan Concrete Industrial Corp.		December 31	December 31
		2022 $ - $ - $ 220,500	2021 $ 20,000 $ 85,000 $ -

Line Item Interest income Uneo Inc. Universal Concrete Industrial Corp Tainan Concrete Industrial Corp.	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 83 $ 515 $ 580	2021 $ 78 $ - $ -

The Company provided an insecure short-term loan to its subsidiary; interests accrued at

1.3%~2% and 1% based on the actual utilization amount during 2022 and 2021, and the settlement shall be made in a lump-sum upon expiry.

The loan to the subsidiary Universal Concrete is secured by collateral land, and to the subsidiary Uneo Inc. is an unsecured loan.

j. Endorsement/guarantee

Endorsement/guarantee to others

The endorsement/guarantee amount provided by the Company for bank facilities of associates is as follows:

Category/name of associates Subsidiary Universal Concrete Industrial Corp Universal Investment Corp Uneo Incorporated		December 31	December 31
		2022 $ 120,000 400,000 50,000 $ 570,000	2021 $ 120,000 400,000 50,000 $ 570,000

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Endorsement/guarantee acquired

The endorsement/guarantee amount provided by subsidiaries for the Company to undertake constructions according to contractual requirements is as follows:

Category/name of associates Subsidiary Kaohsiung Wharf Transportation Universal Investment Universal Investment Universal Investment Corp		December 31	December 31
		2022 $ 319,928 443,909 157,561 $ 921,398	2021 $ 319,928 279,816 - $ 599,744

k. Other transactions with related parties
1) Freight expense

Line item Cost of sales -freight expenses Cost of marketing - freight expenses	Category/name of associates Subsidiary Kaohsiung Wharf Transportation Subsidiaries	For the Year Ended December 31 2022 2021 $ 243,739 $ 217,512 $ 14,088 $ 14,360	For the Year Ended December 31 2022 2021 $ 243,739 $ 217,512 $ 14,088 $ 14,360	For the Year Ended December 31 2022 2021 $ 243,739 $ 217,512 $ 14,088 $ 14,360
				$ 217,512 $ 14,360

Regarding the freight transactions between the Company and its related parties, the prices are established according to the prices agreed by both parties, equivalent to that of the general suppliers.

The Company ’ s payment term for freight to related parties is approximately 45 to 60 days, equivalent to that of the general suppliers.

2) Management service income

Category/name of associates Subsidiary	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 15,627	2021 $ 15,042

The Company receives management service income from subsidiaries for employee dispatch and transfer, which is accounted for as a deduction item of salary expenses.

l. Compensation of key management personnel

For the Year Ended December 31

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Short-term employee benefits Post-employment benefits	2022 $ 37,853 482 $ 38,335	2021 $ 33,975 316
		$ 34,291

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

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for engineering performance bond.

Pledge deposits Current	December 31
	2022 2021 $ 67 $ 67

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Company as of December 31, 2022 and 2021 were as follows:

a. Unrecognized commitments are as follows:

Acquisition of property, plant and equipment		December 31	December 31
		2022 $ 93,003	2021 $ 82,593

b. As of December 31, 2022 and 2021, the promissory notes were $ 139,493 thousand and $ 104,183 thousand, respectively. These notes were provided as engineering performance bond, which could be refunded when the guarantee is terminated.
c. As of December 31, 2022 and 2021, unused letters of credit for purchase of raw materials amounting to $5,391 thousand and $ 26,756 thousand.
d. The Company entered into a contract with Chi-ying Inc. on the manufacturing and installation equipment and request a plan of change in accordance with the contract. Chi-ying Inc. contended that it has complete the manufacturing of the product and demand the payment of NTD 5.967Million, VAT included, and subsequently reduce to NTD 5.12 Million. Chi-Ying has brought a suit against the Company under the review of Chiao-Tou District Court. It is the assessment of the Company that the result of the legal proceeding is yet to be estimated, therefore no contingent liability is appropriated.
e. The Company has outsourced its transportation of ready-mixed concrete to Lian-Chin Enterprise Inc. in 2021. The driver was sued for wrongful death due to malpractice. The family of the victim brought a claim against the driver and held the Company jointly liable for the loss of 5.681 million. The case is now under trial at Feng-Shan Summary Court of Kaohsiung District Court. It is the assessment of the Company that the possible outcome of the legal proceeding is yet to be estimated, therefore no contingent liability is appropriated.

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

61 -

The Company entities ’ significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

December 31, 2022 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 1,095 30.71 $ 33,639 RMB 903 4.41 3,979 EUR 153 32.72 5,006 December 31, 2021 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 285 27.68 $ 7,871 RMB 902 4.344 3,918 EUR 136 31.32 4,244 The significant realized and unrealized foreign exchange gains (losses) were as follows: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Functional Currencies Exchange Rate Net Foreign Exchange Loss Exchange Rate Net Foreign Exchange Gain USD 30.71(USD:NTD) 2,038 27.68（USD：NTD） ( $ 39 ) RMB 4.41(RMB:NTD) 58 4.344（RMB：NTD） ( 53 ) JPY 0.23(JPY:NTD) ( 20 0.2405（JPY：NTD） ( 181 ) HKD 3.94（HKD：NTD） 87 3.549（HKD：NTD） ( 4 ) EUR 32.72（EUR：NTD） 42 31.32（EUR：NTD） ( 211 ) SGD 22.88（SGD:NTD） 343 - ($ 2,548) ($ 488)	December 31, 2022 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 1,095 30.71 $ 33,639 RMB 903 4.41 3,979 EUR 153 32.72 5,006 December 31, 2021 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 285 27.68 $ 7,871 RMB 902 4.344 3,918 EUR 136 31.32 4,244 The significant realized and unrealized foreign exchange gains (losses) were as follows: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Functional Currencies Exchange Rate Net Foreign Exchange Loss Exchange Rate Net Foreign Exchange Gain USD 30.71(USD:NTD) 2,038 27.68（USD：NTD） ( $ 39 ) RMB 4.41(RMB:NTD) 58 4.344（RMB：NTD） ( 53 ) JPY 0.23(JPY:NTD) ( 20 0.2405（JPY：NTD） ( 181 ) HKD 3.94（HKD：NTD） 87 3.549（HKD：NTD） ( 4 ) EUR 32.72（EUR：NTD） 42 31.32（EUR：NTD） ( 211 ) SGD 22.88（SGD:NTD） 343 - ($ 2,548) ($ 488)	December 31, 2022 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 1,095 30.71 $ 33,639 RMB 903 4.41 3,979 EUR 153 32.72 5,006 December 31, 2021 Foreign Currencies (In Thousand) Exchange Rate Carrying Amount (In Thousand) Financial assets Monetary items USD $ 285 27.68 $ 7,871 RMB 902 4.344 3,918 EUR 136 31.32 4,244 The significant realized and unrealized foreign exchange gains (losses) were as follows: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Functional Currencies Exchange Rate Net Foreign Exchange Loss Exchange Rate Net Foreign Exchange Gain USD 30.71(USD:NTD) 2,038 27.68（USD：NTD） ( $ 39 ) RMB 4.41(RMB:NTD) 58 4.344（RMB：NTD） ( 53 ) JPY 0.23(JPY:NTD) ( 20 0.2405（JPY：NTD） ( 181 ) HKD 3.94（HKD：NTD） 87 3.549（HKD：NTD） ( 4 ) EUR 32.72（EUR：NTD） 42 31.32（EUR：NTD） ( 211 ) SGD 22.88（SGD:NTD） 343 - ($ 2,548) ($ 488)
	Exchange Rate 27.68（USD：NTD） 4.344（RMB：NTD） 0.2405（JPY：NTD） 3.549（HKD：NTD） 31.32（EUR：NTD）	Net Foreign Exchange Gain ( $ 39 ) ( 53 ) ( 181 ) ( 4 ) ( 211 ) - ($ 488)
		(

36. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others. (Table 1)
62 -
2) Endorsements/guarantees provided. (Table 2)
3) Marketable securities held (excluding investment in subsidiaries and associates). (Table 3)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
5) Acquisition of individual real estate at cost of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
6) Disposal of individual real estate at a price of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
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. (N/A)
9) Trading in derivative instruments. (N/A)
b. Related information on 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 or loss of investee and investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment from the mainland China area. (N/A)
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 period: (N/A)
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: (N/A)
- c) The amount of property transactions and the amount of the resultant gains or losses: (N/A)
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: (N/A)
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: (N/A)
f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: (N/A)
d. Information on major shareholders: name, number and percentage of shareholding of shareholders with ownership achieving 5% and above. (Table 7)
63 -

TABLE 1

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the period	Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature for Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limits for Each Borrower （Note 2）	Aggregate Financing Limits (Note 3)
													Item	Value
0 0 0 0	The Company The Company The Company The Company	Uneo Incorporated Universal Investment Corporation Universal Concrete Industrial Corporation Tainan Concrete Industrial Corp.	Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes	$ 1,550,000 150,000 600,000 300,000	$ 800,000 100,000 300,000 300,000	$ - 220,500	2 2 2 2	For short-term financing For short-term financing For short-term financing For short-term financing	$ - - - -	Operating capital Operating capital Operating capital Operating capital	$ - - - -	None None Land None	$ - - 300,000 -	$ 8,367,162 8,367,162 8,367,162 8,367,162	$ 8,367,162 8,367,162 8,367,162 8,367,162

Note 1: a: “ 0 ” is the Company.

b: Subsidiaries are numbered from “ 1 ” .

Note 2: The upper limit for each borrower is 40% of the Company ’ s net asset value as stated in the latest financial statements.

Note 3: The aggregate limit for each borrower is 40% of the Company ’ s net asset value as stated in the latest financial statements.

64 -

TABLE 2

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorser / Guarantor	Endorsee /Guarantee	Endorsee /Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed / Guaranteed During the Period	Outstanding Endorsement / Guarantee at the End of the Period (Note 6)	Actual Borrowing Amount	Amount Endorsed / Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 4 , Note 5, Note 7)	Endorsemen t/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsemen t/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsemen t/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 2)
0 1 2	The Company Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation	Universal Concrete Industrial Corporation Universal Investment Corporation Uneo Incorporated Universal Concrete Industrial Corporation The Company Universal Concrete Industrial Corporation The Company The Company	(1) (1) (1) (3) (2) (3) (2) (2)	$ 132,329 750,000 60,000 487,450 487,450 3,841,535 3,841,535 235,618	$ 120,000 400,000 50,000 162,241 319,928 122,521 551,693 157,561	$ 120,000 400,000 50,000 162,241 319,928 122,521 443,909 157,561	$ - 230,000 - - - - - -	$ - - - - - - - -	1 2 - 166 328 16 58 67	$ 20,917,904 20,917,904 20,917,904 989,961 989,961 7,050,481 7,050,481 561,990	Y Y Y N N N N N	N N N N Y N Y Y	N N N N N N N N

Note 1: a: “ 0 ” is the Company.

b: Subsidiaries are numbered from “ 1 ” .

Note 2: (1) The endorser / guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed / guaranteed subsidiary.

(2) The endorser / guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed / guaranteed company.

(3) The endorsed / guaranteed company owns directly and indirectly more than 50% voting shares of the endorser / guarantor parent company.

Note 3: The upper limit for the Company is equivalent to the capital of the endorsee; the upper limit for subsidiaries is equivalent to the net asset value of the subsidiaries as stated in its latest financial statements except that it is five times of the net asset value of Kaohsiung Harbor Transport Company and Universal Investment Corporation.

Note 4: The upper limit for the Company is equivalent to the net asset value of the Company.

Note 5: The upper limit for the subsidiary is equivalent to the net asset value of the subsidiary as stated in its latest financial statements, unless the Company or other subsidiaries give more guarantee.

Note 6: The limits were approved by the board of directors.

Note 7: The upper limit for the subsidiary is equivalent to ten times of the net asset value of the subsidiary as stated in its latest financial statements.

65 -

TABLE 3

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2022		Note
				Shares/ Units	Carrying Value	Percentage of Ownership (%)	Fair Value Or Net Equity
The Company Universal Investment Corporation	Listed shares Prince Housing & Development Corp. CTBC Financial Holding Co., Ltd. Asia Pacific Telecom Corp. CHC Resources Co., Ltd. Creative Sensor Inc. Privately offered shares Creative Sensor Inc. Unlisted shares Grand Bills Finance Co., Ltd. Universal Cement Development Co., Ltd. Universal Venture Capital Co., Ltd. CTBC Investments Corp. Kaohsiung Rapid Transit Corp. Jie-Ho Development Co., Ltd. Huan Rong Hsin Resource Technology Corp. Mutual funds Cathay No. 2 Real Estate Investment Trust Listed shares Prince Housing & Development Corp. Tainan Spinning Co., Ltd. Teco Electric & Machinery Co., Ltd. Teco Image Systems Co., Ltd. Privately offered shares Creative Sensor Inc. Unlisted shares Pan Asia (Engineers & Constructors) Corporation. Chinese Products Promotion Center	The president of the Company serves as a member of its board of directors - - The Company serves as a member of its board of directors - - The Company serves as a member of its board of directors The Company serves as a member of its board of directors - - - - - - The president of the Company serves as a member of its board of directors. The legal entity as director and the president of the Company serve as representatives of the legal entity. - - - Subsidiary serves as supervisor -	Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non - current Financial assets at FVTPL - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current	40,621,948 28,441,983 3,277,157 17,020,254 273,000 13,000,000 43,999,488 24,864,000 1,400,000 3,303,325 1,286,063 171,133 600,000 24,000 38,316,900 55 2,300,000 602,000 9,000,000 3,102,803 7,540	$ 426.530 628,567 19,991 782,932 7,535 301,600 520,954 1,122,858 12,935 105,885 12,580 - - 427 402,328 1 63,365 10,084 208,800 41,733 632	2.50 0.15 0.08 6.85 0.18 8.72 8.14 16.44 1.16 1.05 0.46 0.16 30.00 - 2.36 - 0.11 0.53 6.04 2.71 1.98	$ 426,530 628,567 19,991 782,932 7,535 301,600 520,954 1,122,858 12,935 105,885 12,580 - - 427 402,328 1 63,365 10,084 208,800 41,733 632

66 -

TABLE 3

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2022		Note
				Shares/ Units	Carrying Value	Percentage of Ownership (%)	Fair Value Or Net Equity
Tainan Concrete Industrial Corporation	Da Jen Venture Capital Co., Ltd. DarChan Venture Capital Co., Ltd. Limited partnership Taiwania Capital Buffalo Fund V, LP. Listed shares CTBC Financial Holding Co., Ltd. preferred stock C of CTBC Financial Holding Co., Ltd.	The legal entity as director of the Company serves as a member of its board of directors. The legal entity as director of the Company serves as a member of its board of directors. - - -〞	Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - current 〞	1,683,000 4,000,000 - 60,000 2,987	33,055 39,972 43,733 1,327 177	8.06 3.64 3.23 - -	33,055 39,972 43,733 1,327 177

67 -

TABLE 4

UNIVERSAL CEMENT CORPORATION 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 YEARS ENDED DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Seller	Property	Event Date	Original Acquisition Date	Carrying Amount	Transaction Amount	Collection	Gain (Loss) on Disposal	Counterparty	Relationship	Purpose of Disposal	Price Reference	Other Terms
Universal Concrete Industrial Corporation.	Land: 8 parcels of land with the following lot numbers in Shalun section, Pitou Township, Changhua County: 988, and others. Building: Factory and equipment located at No. 553, Section 4, Changshui Road, Pitou Township, Changhua County.	2022.09.22	1980.08.31	$ 42,449	$ 343,500	the payment terms of the contract	$ 296,071	Jin Shan Co.,Ltd	Non-related party	Note 1	Note 2	－

Note 1: The sale of this investment property is part of the active management of funds.

Note 2: Professional appraiser: CBRE Real Estate Appraisal Co., Ltd. Appraised value: $ 277,140 thousand.

Note 3: "Transaction date" refers to the earlier of the signing date, payment date, commission date, transfer date, board resolution date, or any other date sufficient to determine the transaction counterparty and transaction amount.

TABLE 5

68 -

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEARS ENDED DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Company	Kaohsiung Harbor Transport Company CHC Resources Corp.	Subsidiary The key management of the Group serves as a member of its board of directors	Purchase (Freight) Purchase	$ 257,827 238,692	8 6	45 ~ 60 days after acceptance 30 ~ 65 days after acceptance	Note Equivalent	Equivalent Equivalent	($13,013) (31,285)	(2 ) (5 )

Note : The purchase prices have no comparison with those from third parties.

69 -

TABLE 6

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2022	Balance as of December 31, 2022	Balance as of December 31, 2022	Net Income (Loss) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2022	December 31, 2021	Shares	Percentag e of Ownership	Carrying Amount
The Company Universal Investment Corporation	Huanchung Cement International Corporation Chiayi Concrete Industrial Corporation Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation Uneo Incorporated Li Yong Development Corporation Lioho Machine Works Ltd. Tainan Concrete Industrial Corporation Universal Concrete Industrial Corporation Chiayi Concrete Industrial Corporation Huanchung Cement International Corporation Tainan Concrete Industrial Corporation Lioho Machine Works Ltd.	Taichung city Chiayi County Kaohsiung city Taipei city Taichung city Taipei city Taipei city Taoyuan city Tainan city Taichung city Chiayi County Taichung city Tainan city Taoyuan city	Import, export, and sale of cement, cement material, fuel, and production Manufacturing and marketing of ready-mixed concrete Trucking operation Investment activities Manufacturing and marketing of ready-mixed concrete and gravel Marketing of electronic Products Investment activities, trading for real estate and leasing business Manufacturing and marketing of metal parts and automotive components Manufacturing and marketing of ready-mixed concrete and cement material Manufacturing and marketing of ready-mixed concrete and gravel Manufacturing and marketing of ready-mixed concrete Import, export, and sale of cement, cement material, fuel, and production Manufacturing and marketing of ready-mixed concrete and cement material Manufacturing and marketing of metal parts and automotive components	$ 69,993 22,643 74,580 650,000 33,774 291,671 20,000 174,997 238,144 858 5 13 178 93	$ 69,993 22,643 74,580 650,000 33,774 291,671 20,000 174,997 68,454 858 5 13 178 93	6,999,333 2,252,378 7,560,000 75,000,000 7,691,411 6,000,000 2,000,000 89,581,468 2,023,624 115,494 361 667 10,000 1,680	69.99 86.63 100.00 100.00 58.12 100.00 100.00 29.86 67.45 0.87 0.01 0.01 0.33 -	$ 115,686 40,488 98,997 705,049 330,170 34,327 19,467 10,618,473 678,325 858 5 13 178 93	$ 18,539 (151) 2,935 15,323 332,238 (9,009) (99) 2,765,092 2,015 - - - - -	$ 12,977 (131) 2,935 15,323 195,987 (9,009) (99) 822,969 1,156 - - - - -

70 -

TABLE 7

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS DECEMBER 31, 2022

Name of the major shareholder	Shares	Shares
	Number of shares held (share)	Shareholding (%)
Sheng Yuan Investment Corp. Yu-Sheng Investment Inc. HOU, BO-YI PICTET investment account entrusted to HSBC	65,255,811 64,532,037 50,888,251 38,867,405	9.98% 9.87% 7.78% 5.94%

Note 1: The information on major shareholders in the table is information related to shareholders with aggregate ownership in the Company achieving 5% and above by holding ordinary shares and special shares that completed the non-physical registration and delivery (including treasury shares), calculated by the TDCC on the last business day at the end of the quarter. The share capital stated in the consolidated financial report of the Company may differ from the number of shares that completed the non-physical registration and delivery due to the differences in the basis of preparation and calculation.
Note 2: Regarding the information above, where shareholders entrust their shares with a trust, the information shall be disclosed in a separate personal account of the client in the nature of a trust account opened by the trustee. When shareholders with shareholding over 10% carrying out the insider’s equity report according to laws and regulations related to securities trading, the shareholding shall include its personal shareholding, plus shares entrusted with trust and possessing the right of utilization and decision-making. For information on the insider’s equity report, please refer to MOPS.
71 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item
Major Accounting Items in Assets, Liabilities and Equity
Statement of Cash
Statement of Financial Assets at FVTPL–Current
Statement of Financial assets at FVTOCI - Current
Statement of Note Receivables
Statement of Account Receivables
Statement of Inventories
Statement of Financial Assets at FVOCI–Non-current
Statement of Changes in Investments accounted for using
Equity Method
Statement of Changes in Property, Plant and equipment
Statement of Changes in Accumulated Depreciation of
Property, Plant and Equipment
Statement of Changes in Right-of-use Assets
Statement of Changes in Accumulated Depreciation of
Right-of-use Assets
Statement of Changes in Investment Properties
Statement of Changes in Accumulated Depreciation of
Investment Properties
Statement of Changes in Intangible Assets
Statement of Deferred Income Tax Assets
Statement of Short-term Borrowings
Statement of Short-term Bills Payable
Statement of Accounts Payable
Statement of Other Payables
Statement of Other Current Liabilities
Statement of Lease Liabilities
Statement of Deferred Income Tax Liabilities
Major Accounting Items in Profit or Loss
Statement of Net Revenue
Statement of Operating Costs
Statement of Operating Expenses
Function Summary for Employee’s Benefit, Depreciation,
and Amortization Expenses Incurred during the Year

No./Ref.

Schedule 1
Schedule 2
Schedule 3
Schedule 5
Schedule 5
Schedule 6
Schedule 7
Schedule 8
Note 14
Note 14
Schedule 9
Schedule 9
Note 16
Note 16
Note 17
Note 25
Schedule 10
Note 18
Schedule 11
Note 20
Note 20
Schedule 12
Note 25
Schedule 13
Schedule 14
Schedule 15
Schedule 16

72 -

SCHEDULE 1

Universal Cement Corporation

STATEMENT OF CASH DECEMBER 31, 2022

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

Item Expiry date Annual interest rate Cash on hand Bank deposits Checking accounts Demand deposits Foreign currency deposits (Note1) Cash Equivalents Foreign Currency Time Deposit (Note2) 2022.12.06~2023.03. 16 4.75%~4.80 %	Amount
	$ 380 31,819 230,274 11,299 273,392 32,245 $ 306,017

Note: Including US$ 43,898.5, € 152,995.36, RMB 902,675.71, HK$ 241,475.15 and JPY 64,948 Note:Including US$1,050,000

(US $1=NT$30.71, EUR $1=NT$32.72, RMB 1=NT$4.408, HKD $1=NT$3.938 and JPY 1=NT$0.2324)

73 -

SCHEDULE 2

Universal Cement Corporation

STATEMENTS OF FINANCIAL ASSETS AT FVTPL – CURRENT

DECEMBER 31, 2022

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

Shares of listed domestic companies Creative Sensor Inc.	Number of shares 273,000		Amount $ 7,535	Acquisition costs $ 7,785	Fair Value (Note) Unit price (NT$) Total $ 27.6 $ 7,535	Fair Value (Note) Unit price (NT$) Total $ 27.6 $ 7,535	Guarantee provided or pledge
					Unit price (NT$) $ 27.6
							None

Note: Please refer to Note 31.

74 -

SCHEDULE 3

Universal Cement Corporation

STATEMENTS OF FINANCIAL ASSETS AT FVTOCI – CURRENT

DECEMBER 31, 2022

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

Current Shares of listed domestic companies Prince Housing & Development Corp. CTBC Financial Holding Co., Ltd. Asia Pacific Telecom Co., Ltd. CHC Resources Co., Ltd	Number of shares 40,621,948 28,441,983 3,277,157 17,020,25 4	Amount $ 426,530 628,567 19,991 782,932 $ 1,858,020	Acquisition costs $ 601,561 455,560 32,772 108,500 $ 1,198,393	Fair Value (Note) Unit price (NT$) Total $ 10.5 $ 426,530 22.1 628,567 6.1 19,991 46.0 782,932 $ 1,858,020	Guarante e provided or pledge
				Unit price (NT$) $ 10.5 22.1 6.1 46.0
					None None None None

Note: Please refer to Note 31.

75 -

SCHEDULE 4

Universal Cement Corporation

STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Name Yung Ching Construction Co., Ltd. Bao Run Construction Co., Ltd. Dewon Construction Enterprise Co., Ltd. Others (Note)	Amount
	$ 32,308 24,925 20,781 321,884 $ 399,898

Note: The balance of each company is less than 5% of the balance under this item.

76 -

SCHEDULE 5

Universal Cement Corporation

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Name Non-related party Ta Chen Construction & Engineering Corp. Kedge Construction Co., Ltd. Hung Hsin Building Materials Co., Ltd. Others (Note) Less: loss allowance Related party Pan Asia (Engineers & Constructors) Corporation Others (Note) Less: loss allowance		Amount
		$ 111,236 83,400 74,170 959,677 1,228,483 11,941 $ 1,216,542 $ 31,534 13,476 45,010 33 $ 44,977

Note: The balance of each company is less than 5% of the balance under this item.

77 -

SCHEDULE 6

Universal Cement Corporation

STATEMENT OF INVENTORIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Finished goods Work in progress Raw materials		Amount	Amount	Amount
		Costs $ 90,126 22,615 192,129 $ 304,870	Net realizable value
				$ 105,879 22,990 201,933 $ 330,802

Note: Please refer to Note 4 for the basis of net realizable value.

78 -

SCHEDULE 7

Universal Cement Corporation

STATEMENT OF FINANCIAL ASSETS AT FVOCI-NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Name Privately offered shares of listed companies Creative Sensor Inc. Shares of unlisted companies Universal Venture Capital Co., Ltd CTBC Investments Corp. Universal Cement Development Co., Ltd. Grand Bills Finance Co., Ltd. Kaohsiung Rapid Transit Corp.	Opening balance Numberofshares Amount 13,000,000 $ 271,050 - 1,400,000 11,413 3,303,325 139,219 24,864,000 513,193 43,999,488 764,711 1,286,063 10,350 $ 1,709,936	Increase (decrease) during the year Numberofshares Amount - $ - - - - - - - - - - - $ -	Increase (decrease) during the year Numberofshares Amount - $ - - - - - - - - - - - $ -	Unrealized gain or loss on financial assets $ 30,550 1,522 ( 33,334 ) 609,665 ( 243,757 ) 2,230 $ 366,876	Closing balance Numberofshares Fair value 13,000,000 $ 301,600 1,400,000 12,935 3,303,325 105,885 24,864,000 1,122,858 43,999,488 520,954 1,286,063 12,580 $ 2,076,812	Closing balance Numberofshares Fair value 13,000,000 $ 301,600 1,400,000 12,935 3,303,325 105,885 24,864,000 1,122,858 43,999,488 520,954 1,286,063 12,580 $ 2,076,812	Guarantee provided orpledge
	Numberofshares	Numberofshares - - - - - -			Numberofshares 13,000,000 1,400,000 3,303,325 24,864,000 43,999,488 1,286,063
	13,000,000 1,400,000 3,303,325 24,864,000 43,999,488 1,286,063			( (			None None None None None None

79 -

SCHEDULE 8

Universal Cement Corporation

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

	Opening	balance	balance																					Closing balance
														Actuarial				Unrealized
														gains (loss)		Cumulative		gain	(loss) on		Gain	(loss) on							Guarantee
	Number of			Number of			Gain	(loss) on	Undistribute					from	defined	translation		financial			disposal of		Number of	Shareholding			Market price		provided
	shares	Amount		shares	Amount		investments		d earnings		Capital reserve			benefit plans		adjustments		products			associates		shares	(%)	Amount		or net equity		orpledge	No
Investment in subsidiary
Huanchung Cement International
Corporation	6,999,333	$	112,282	-	( $	11,059)	$	12,977	$		$	-		$	1,486	$	-	$		-	$	-	6,999,333	69.99	$	115,686	$	115,686	None	No
Universal Investment Corporation	75,000,000		768,307	-	(	9,000)		15,323				-			-		-	(	69,581)			-	75,000,000	100		705,049		705,049	None	No
Universal Concrete Industrial Corporation	7,691,411		137,759	-	(	3,538)		195,987				-	(		38)		-			-		-	7,691,411	58.12		330,170		330,170	None	No
Kaohsiung Harbor Transport Corporation	7,560,000		97,490	-	(	2,655)		2,935				-			1,227		-			-		-	7,560,000	100		98,997		98,997	None	No
Chiayi Concrete Industrial Corporation	2,252,378		40,619	-		-	(	131)				-			-		-			-		-	2,252,378	86.63		40,488		40,488	None
Uneo Incorporated	6,000,000		43,336	-		-	(	9,009)				-			-		-			-		-	6,000,000	100		34,327		34,327	None
Li Yong Development Corporation	2,000,000		19,566	-		-	(	99)				-			-		-			-		-	2,000,000	100		19,467		19,467	None
Tainan Concrete Industrial Corporation	1,265,000		81,764	758,624		165,847		1,156				56,211			-		-	(	193)			373,540	2,023,624	67.45		678,325		678,325	None	No
		1,301,123				139,595		219,139				56,211			2,675		-	(	69,774)			373,540			2,022,509		2,022,509
Investment in associate
Lioho Machine Works Co., Ltd.	89,581,468	9,810,809		-	(	179,162)		822,969	(	40)		340			16,999		146,367		191			-	89,581,468	29.86	10,618,473		10,618,473		None	No
		$11,111,932			($	39,567)	$1,042,108		($	40)	$	56,551		$	19,674	$	146,367	($	69,583)		$	373,540			$12,640,982		$12,640,982

Note 1: The decrease amount during the year was cash dividends received. Note 2. The increase amount during the year was the acquisition of shares of NT$169,690 thousand minus cash dividends received NT$3,843 thousand.

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SCHEDULE 9

Universal Cement Corporation

STATEMENT OF CHANGE IN RIGHT-OF-USE ASSETS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Costs Balance at January 1, 2022 Increase during the year Decrease during the year Balance at December 31, 2022 Cumulative depreciation Balance at January 1, 2022 Decrease during the year Depreciation expenses Balance at December 31, 2022 Carrying amount at December 31,2022		Building $ 49,853 48,472 46,601) $ 51,724 $ 18,647 24,073 ) 9,868 $ 4,442 $ 47,282	Transportation Equipment $ 12,879 6,826 ( 3,616) $ 16,089 $ 4,762 ( 3,616 ) 3,668 $ 4,814 $ 11,275		Total
	( (		( (	( (	$ 62,732 55,298 50,217) $ 67,813 $ 23,409 27,689 ) 13,536 $ 9,256 $ 58,557

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SCHEDULE 10

Universal Cement Corporation

STATEMENT OF SHORT-TERM LOANS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Credit borrowings First Commercial Bank Cathay United Bank Bank of Taiwan CTBC Bank Yuanta Commercial Bank Taipei Fubon Bank Taipei Fubon Bank Taipei Fubon Bank	Contract period (Note2) Rate per annum(%) December 30, 2022~ January 16, 2023 1.775 October 28, 2022~ January 13, 2023 1.793 December 21, 2022~ June 19, 2023 1.600 November30,2022~ March 31,2023 1.880 December 23,2022~March 23,2023 1.920 November25,2022~ February21,2023 1.895 November25,2022~ February23,2023 1.895 November28,2022~ February23,2023 1.895		Closing balance Financing limit (Note 1) $ 10.000 $ 500,000 300,000 300,000 500,000 500,000 600,000 610,000 500,000 500,000 20,000 300,000 140,000 300,000 140,000 300,000 $2,210,000	Pledge or guarantee
				NONE NONE NONE NONE NONE NONE NONE NONE

Note ： Refers to the period of utilization.

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SCHEDULE 11

Universal Cement Corporation

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Name of the supplier Non-related party Taiwan Cement Corp. Shiny Gravel Corp. Gaotai Gravel Corp. Fu Cheng Development Corp. Hsin Ling Industries Co., Ltd. Others (Note) Related party China Hi-Ment Co., Ltd Kaohsiung Wharf Transportation Pao Good Industrial Co., Ltd Others (Note)		Amount
		$ 237,452 46,256 40,419 34,617 34,583 216,426 $ 609,753 $ 31,285 13,013 2,622 368 $ 47.288

Note: The balance of each company is less than 5% of the balance under this item.

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SCHEDULE 12

Universal Cement Corporation

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Building Building Building Transportation equipment Transportation equipment Transportation equipment Transportation equipment Transportation equipment Transportation equipment Transportation equipment Transportation equipment Transportation equipment	Description Central Office Tainan Concrete Plant Fengshan Concrete Plant Service car for Tainan Office Service car for headquarters Service car for headquarters Service car for headquarters Service car for Ta-Fu Gypsum Board Plant Service car for Yeun Kung Gypsum Board Plant Service car for Ta-Fu Gypsum Board Plant Service car for Xiaogang Gypsum Board Plant Service car for Nantz Gypsum Board Plant	Lease period April 1, 2021~ March 31, 2025 September 1, 2022~ August 31, 2026 September 1, 2015~ August 31, 2022 June 29, 2021~ June 28, 2024 February 3, 2021~ February 3, 2024 October 12, 2021~ September 12, 2024 September 26, 2021~ September 26, 2025 December 30, 2020~ November 30, 2025 December 30, 2021~ November 30, 2025 December 30, 2021~ November 30, 2025 December 30, 2021~ November 30, 2025 December 30, 2021~ November 30, 2025	Discount rate (%) 0.9 0.9 0.9 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.9 0.9		Closing balances
					$ 886 265 46,289 768 601 853 1,597 751 843 1,687 1,687 2,530 $ 58,757

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SCHEDULE 13

Universal Cement Corporation

STATEMENT OF NET REVENUES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Cement Concrete Gypsum board Others Less: sales return and discounts	Quantity 269,307.86 tons 1,676,719 cubic meters 15,775,694.97 square meters		Amount
			$ 809,069 3,955,449 964,406 25,129 5,754,053 43,857 $ 5,710,196

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SCHEDULE 14

Universal Cement Corporation

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Raw materials at the beginning of the year Add: Incoming materials during the year Gain from raw material physical counts Less: Raw materials at the end of the year Others Direct raw materials used Direct labor Manufacturing expenses Manufacturing costs Add: Work in progress at the beginning of the year Incoming materials during the year Less: Work in progress at the end of the year Others Cost of finished goods Add: Finished goods at the beginning of the year Excise tax Purchase of finished goods Others Less: Finished goods at the end of the year Cost of sales Add: Unamortized fixed manufacturing expenses Less: Revenue from sale of scraps Gain from raw material physical counts Operating costs		Amount
		$ 175,158 2,548,223 192,129 23,321 2,507,931 105,325 902,861 3,516,117 9,872 945,140 22,615 26,954 4,421,560 81,421 66,424 6,960 44,469 90,126 4,530,708 3,647 262 1,378 10 $ 4,533,229

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SCHEDULE 15

Universal Cement Corporation

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Salaries and wages, bonus, and employee’s remuneration Board compensation Freight Commission expenses Contracted research expenses Depreciation Expected credit gain reversed Test fee Others (Note)		Selling and marketing expenses General and administrativ e expense $ 32,484 $ 62,080 - 35,820 36,818 10 38,817 - - - 904 26,214 - - - - 11,325 64,493 $ 120,348 $ 188,617		R&D expenses Expected credit loss (gain) $ 37,660 $ - - - 1 - - - 5,049 - 870 - - 8,487 26,954 - 10,992 - $ 81,526 $ 8,487		Total
						$ 132,224 35,820 36,829 38,817 5,049 27,988 8,487 26,954 86,810 $ 398,978

Note: The balance of each company is less than 5% of the balance under this item.

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SCHEDULE 16

Universal Cement Corporation

STATEMENT FOR FUNCTION SUMMARY FOR EMPLOYEE ’ S BENEFIT, DEPRECIATION, AND AMORTIZATION EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022 and 2021 (In Thousands of New Taiwan Dollars)

Item Employee’s benefit Salaries Labor and health insurance premium Pension Director’s remuneration Others Depreciation Amortization			FOR THE YEARS ENDED DECEMBER31, 2022	FOR THE YEARS ENDED DECEMBER31, 2022		Total $ 417,440 38,682 23,945 ) 35,820 14,750 $ 482,747 $ 123,591 $ 2,415			FOR THE YEARS ENDED DECEMBER31, 2021	FOR THE YEARS ENDED DECEMBER31, 2021
		Operating costs $ 285,216 25,955 14,014 ) - 4,606 $ 301,763 $ 95,036 $ 378	Operating expenses $ 132,224 12,727 ( 9,931 ) 35,820 10,144 $ 180,984 $ 27,988 $ 2,037	Non-operating income and expenses $ - - - - - $ - $ 567 $ -				Operating costs $ 253,444 23,936 11,891 - 4,207 $ 293,478 $ 92,869 $ 204	Operating expenses $ 117,902 11,318 6,189 25,596 8,749 $ 169,754 $ 21,327 $ 2,788	Non-operating income and expenses $ - - - - - $ - $ 567 $ -		Total
	(		(		(							$ 371,346 35,254 18,080 25,596 12,956 $ 463,232 $ 114,763 $ 2,992

Note:

Number of employees for the current year and the previous year was 501 and 445, respectively, in which there were both 4 directors who are not concurrently employees.
Companies whose shares are listed and traded on TWSE or TPEx shall disclose the following information:
(1) Average employee’s benefit expenses for the year amounted to NT$899 thousand (“total employee’s benefit expenses for the year – total director’s remuneration”/“number of employees for the year – number of directors who are not concurrently employees”). Average employee’s benefit expenses for the previous year amounted to NT$1,002 thousand (“total employee’s benefit expenses for the previous year – total director’s remuneration”/“number of employees for the previous year – number of directors who are not concurrently employees”).
(2) Average employee’s salary expenses for the year amounted to NT$840 thousand (total salary expenses for the year/“number of employees for the year – number of directors who are not concurrently employees”). Average employee’s salary expenses for the previous year amounted to NT$850 thousand (total salary expenses for the previous year/“number of employees for the previous year – number of directors who are not concurrently employees”).
(3) Average adjustments and changes in employee’s salary expenses achieved 0.2% (“average employee’s salary expenses for the year - average employee’s salary expenses for the previous year”/average employee’s salary expenses for the previous year).
The Company has established its Audit Committee, and the Company has no supervisor.
Salary and remuneration policy:
(1) Remuneration shall be provided for directors of the Company in executing the Company’s businesses, and the amount shall be subject to its participation in the Company’s operations and the value of its contribution. According to the requirements under Article 29 of the Company’s articles of association, the remuneration for the Company’s chairman, vice-chairman, and directors regarding the execution of their duties shall be determined by the board of directors based on the standards within the industry, taking into account its contribution, performance and the future risks of the Company. Furthermore, according to Article 33, where the Company recorded a profit during the year, the board of directors may resolve to allocate no more than 3% of the abovementioned profit as director’s remuneration, which may only be distributed in cash.
(2) General manager, vice general manager, assistant managers, and other management of the Company execute the Company’s operations according to the orders from the board of directors; their remuneration shall be subject to the requirements of Article 31 of the Company’s articles of association and Article 29 of the Company Act. The standards or the management’s remuneration shall be determined based on its personal performance and its contribution to the overall operations of the Company, with reference to the payment standards in the market.
(3) For directors and management listed in paragraphs (1) and (2) above, their salary and remuneration policy, system, standard, and structure shall be subject to the requirements under the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange, and submitted to the Remuneration Committee for review and discussion.
(4) The employee’s remuneration policy is determined based on personal competency, contribution to the Company, performance, market value of the post, taking into account the future operating risks of the Company, which shall be positively correlated to the operating performance. Where the Company recorded a profit for the year, the Company shall allocate no less than 1% as the employee’s remuneration according to the requirements under the Articles of Association. The overall remuneration package for employees primarily includes the fixed basic salaries, bonuses, and benefits. Regarding the payment standards, fixed basic salaries are approved and paid in accordance with the market trend of the post held by employees, bonuses are distributed based on the achievement of the employee’s and the department’s objectives and the Company’s operating performance, while benefits are designed for employees according to the requirements under the laws and regulations, with equal considerations given to the demands of employees.
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AI assistant

UCC — Audit Report / Information 2022

51738_rns_2022-11-14_eb47e71a-1ca6-4620-a90d-34161d4d894a.pdf

Universal Cement Corporation

INDEPENDENT AUDITORS ’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

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

Auditors ’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

Universal Cement Corporation

BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

h. Investment in associates

m. Financial instruments

1) Financial assets

a) Measurement category

2) Equity instruments

3) Financial liabilities

n. Revenue recognition

o. Leases

1) The Company as lessor

2) The Company as lessee

p. Borrowing costs

q. Employee benefits

1) Short-term employee benefits

2) Retirement benefits

1) Current tax

2) Deferred tax

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

11. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

a. Notes receivable

recognized in profit or loss.

December 31, 2022

December 31, 2022

12. INVENTORIES

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

b. Investments in Associates

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

16. INVESTMENT PROPERTIES

17. OTHER INTANGIBLE ASSETS

18. BORROWINGS

a. Short-term borrowings

b. Short-term bills payable

19. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

20. OTHER PAYABLES AND OTHER LIABILITIES

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

22. EQUITY

a. Share capital

b. Capital surplus

c. Retained earnings and dividend policy

4) Other equity items

23. REVENUE

For the Year Ended December 31

a. Disaggregation of revenue

24. PROFIT BEFORE INCOME TAX

e. Depreciation and amortization

UCC Audit Report / Information 2022