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USI Interim / Quarterly Report 2020

Nov 13, 2020

51764_rns_2020-11-13_183dc9dd-8aeb-4722-9108-006b2a8b6d35.pdf

Interim / Quarterly Report

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USI CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements for the Six Months Ended June 30, 2020 and 2019 and Independent Auditors’ Review Report

Address: No. 330, Fengren Rd., Renwu Dist., Kaohsiung City 814, Taiwan

Phone: (02)87516888

  • 1 -

§ Table of Content §

FINANCIAL
STATEMENT
NOTES
ITEM PAGE NUMBER
I. Cover 1 -
II. Table of Content 2～3 -
III. Independent Auditors’ Review 4～6 -
Report
IV. Consolidated Balance Sheets 7 -
V.
Consolidated Statements of		 8 -
Comprehensive Income
VI. Consolidated Statements of 9 -
Changes in Equity
VII. Consolidated Statements of Cash 10～13 -
Flows
VIII. Notes to Consolidated Financial
Statements
(1) General Information 14 1
(2) Approval of Financial 14 2
Statements
(3) Application of New, Amended 14～16 3
and Revised Standards and
Interpretations
(4) Summary of Significant 16～19 4
Accounting Policies
(5) Critical Accounting 19 5
Judgments and Key Sources of
Estimation Uncertainty
(6) Information on Important 19～94 6～34
Accounting Items
(7) Related Party Transactions 94～95 35
(8) Collateralized Assets 95～96 36
(9) Significant Contingent 96～98 37
Liability and Unrecognized
Contractual Commitments
(10) Significant Disaster Loss - -
(11) Significant Events After the - -
Balance Sheet Date
(12) Others 98～105 38～39
(13) Separately Disclosed Items
1. Information on Significant 106～107, 40
Transactions 110～151,
166～171
  • 2 -
2. Information on Reinvestment 98～107, 40
Business 152～159
3. Information on Investments in 106～107, 40
China 160～165
172～173
4. Information on Major 107, 174
Shareholders
(14) Segment Information 108～109 41
  • 3 -

Independent Auditors’ Review Report

USI Corporation

Foreword

We have reviewed the accompanying consolidated balance sheets of USI Corporation and its subsidiaries (collectively, the “Group”) as of June 30, 2020 and 2019, the related consolidated statements of comprehensive income for the three months ended June 30, 2020 and 2019 and for the six months ended June 30, 2020 and 2019, the consolidated ststements of changes in equity and cash flows for the six months then ended and the related notes, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the R egulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity.” A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

  • 4 -

A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Notes 13 and 14 to the consolidated financial statements, the financial statements of non-significant subsidiaries and joint ventures accounted for using the equity method included in the consolidated financial statements were not reviewed. As of June 30, 2020 and 2019, the combined total assets of these non-significant subsidiaries and investments accounted for using the equity method were NT$27,453,121 thousand and NT$23,561,291 thousand, respectively, representing 38.21% and 32.66%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$3,225,022 thousand and NT$3,293,721 thousand, respectively, representing 10.87% and 9.67%, respectively, of the consolidated total liabilities; for the three months ended June 30, 2020 and 2019 and for the six months ended June 30, 2020 and 2019, the amounts of combined comprehensive income of these subsidiaries and share of profit (loss) of joint ventures accounted for using the equity method were NT$222,669 thousand, NT$(110,213) thousand, NT$(3,671) thousand, and NT$36,270 thousand, respectively, representing 31.26%, (22.45%), (0.49%), and 2.33%, respectively, of the consolidated total comprehensive income. The additional disclosure in the consolidated financial statements of these non-significant subsidiaries and joint ventures accounted for using the equity method were based on financial statements which were not reviewed by auditors.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and joint ventures accounted for using the

  • 5 -

equity method as described in the preceding paragraph been reviewed , nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial posi tion of the Group as of June 30, 2020 and 2019 and its consolidated financial performance for the three months ended June 30, 2020 and 2019 and its consolidated financial performance and its cash flows for the six months ended June 30 , 2020 and 2019 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting.”

The engagement partners on the reviews resulting in this independent auditors’ review report are Pi-Yu Chuang(Fiancial Supervisory Commission, Approval No. 1070323246) and Cheng-Hung Kuo(Securities and Futures Bureau, Approval No. 0920123784).

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ report and the accompanying consolidated 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 consolidated financial statements shall prevail.

August 13, 2020

  • 6 -

USI CO RPO RATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2020, and December 31 a nd June 30 , 2019

Code

1100
1110
1120
1136
1150
1170
1200
1220
130X
1410
1470
11XX

1517
1535
1550
1600
1755
1760
1805
1821
1840
1990
15XX
1XXX

Code

2100
2110
2120
2170
2216
2219
2230
2280
2320
2365
2399
21XX


2530
2540
2550
2570
2580
2640
2670
25XX
2XXX

3100
3200
3310
3320
3350
3300
3490
3500
31XX
36XX

3XXX
 Assets
CURRENT ASSETS
Cash and cash equivalents (Note 6)

Financial assets at fair value through profit or loss (FVTPL) -
current (Note 7)
Financial assets at fair value through other comprehensive
income (FVTOCI) - current (Note 8)
Financial assets measured at amortized cost - current (Notes 9
and 36)
Notes receivable, net (Note 10)
Accounts receivable, net (Note 10)
Other receivables (Notes 10 and 35)
Current tax assets (Notes 4 and 29)
Inventories (Note 11)
Prepayments
Other current assets

Total current assets

NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive
income (FVTOCI) - non-current (Notes 8 and 36)
Financial assets measured at amortized cost - non-current (Notes
9, 36 and 37)
Investments accounted for using the equity method (Note 14)
Property, plant and equipment (Notes 15 and 36)
Right-of-use assets (Notes 16 and 36)
Investment properties (Notes 17 and 36)
Goodwill (Note 18)
Other intangible assets (Note 18)
Deferred tax assets (Notes 4 and 29)
Other non-current assets (Note 36)

Total non-current assets

TOTAL

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 19 and 36)

Short-term bills payable (Note 19)
Financial liabilities at fair value through profit or loss (FVTPL) -
current (Note 7)
Notes payable and accounts payable (Note 21)
Other payables (Note 22)
Current tax liabilities (Notes 4 and 29)
Lease liabilities - current (Note 16)
Current portion of long-term borrowings (Notes 19, 20 and 36)
Refund liabilities - current (Note 22)
Other current liabilities
Total current liabilities

CURRENT LIABILITIES

NON-CURRENT LIABILITIES
Bonds payable (Note 20)
Long-term borrowings (Notes 19 and 36)
Provisions - non-current (Notes 23 and 37)
Deferred tax liabilities (Notes 4 and 29)
Lease liabilities - non-current (Note 16)
Net defined benefit liabilities - non-current (Notes 4 and 24)
Other non-current liabilities (Note 25)

Total non-current liabilities

Total liabilities

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes
4, 8, 13, 26 and 29)
Share capital

Capital surplus

Retained earnings
Legal reserve
Special reserve
Unappropriated earnings

Total retained earnings

Other equity

Treasury shares

Total equity attributable to owners of the Company
NON-CONTROLLING INTERESTS

Total equity

TOTAL
 June 30, 2020
(Reviewed)
％
12

7
-
1
1
7
-
-
6
1

-


35

3
1
25
32
1
1
-
-
1

1


65

100

6

2
-
3
1
2
1
-
-
-

1


16

10
11
-
2
-
2

-


25


41


17


-

5
1

5


11

(
1)

(
1)

26

33


59

100
 (In Thousands
December 31, 2019
(Audited)
Amount
％
$ 7,927,403
11

6,358,025
9
174,789
-
506,129
1
634,435
1
6,411,077
9
277,131
-
11,919
-
4,919,506
7
782,608
1
17,150

-

28,020,172

39

2,196,724
3
311,942
-
14,867,168
21
23,228,911
33
885,508
1
524,408
1
269,026
-
17,004
-
643,715
1
461,208

1

43,405,614

61

$ 71,425,786
100

$ 4,258,980
6

1,352,810
2
4,136
-
2,757,368
4
17,771
-
1,920,255
3
517,913
1
70,814
-
1,443,156
2
28,221
-
262,958

-

12,634,382

18

6,991,327
10
9,049,770
12
136,375
-
1,411,901
2
481,964
1
1,473,867
2
69,253

-

19,614,457

27

32,248,839

45

11,887,635

17

271,613

-

2,979,753
4
430,526
1
4,346,640

6

7,756,919

11


781,058)
(
1)
(

475,606)
(
1)
(
18,659,503
26
20,517,444

29

39,176,947

55

$ 71,425,786
100
 (In Thousands
December 31, 2019
(Audited)
Amount
％
$ 7,927,403
11

6,358,025
9
174,789
-
506,129
1
634,435
1
6,411,077
9
277,131
-
11,919
-
4,919,506
7
782,608
1
17,150

-

28,020,172

39

2,196,724
3
311,942
-
14,867,168
21
23,228,911
33
885,508
1
524,408
1
269,026
-
17,004
-
643,715
1
461,208

1

43,405,614

61

$ 71,425,786
100

$ 4,258,980
6

1,352,810
2
4,136
-
2,757,368
4
17,771
-
1,920,255
3
517,913
1
70,814
-
1,443,156
2
28,221
-
262,958

-

12,634,382

18

6,991,327
10
9,049,770
12
136,375
-
1,411,901
2
481,964
1
1,473,867
2
69,253

-

19,614,457

27

32,248,839

45

11,887,635

17

271,613

-

2,979,753
4
430,526
1
4,346,640

6

7,756,919

11


781,058)
(
1)
(

475,606)
(
1)
(
18,659,503
26
20,517,444

29

39,176,947

55

$ 71,425,786
100
 of New Taiwa n
June 30, 2019
(Reviewed)		 Dollars)

％
12
9
-
1
1
10
-
-
8
1

-

42
4
-
18
33
1
-
-
-
1

1

58
100
7
2
-
4
1
2
1
-
2
-

-

19
10
13
-
2
1
2

-

28

47

17

-
4
1

5

10

-
(
1)
26

27

53
100
Amount
$ 8,685,259
5,204,901
168,931
486,484
406,977
5,151,637
302,401
14,648
4,046,354
594,863
252,888

25,315,343

2,236,367
330,042
18,177,731
23,078,249
810,382
508,418
269,026
12,224
703,727
404,500

46,530,666

$ 71,846,009

$ 4,319,048
1,070,822
3,783
2,118,759
1,057,959
1,668,952
433,332
68,291
120,000
17,355
397,543

11,275,844

6,992,810
7,953,028
136,375
1,443,354
421,214
1,356,943
82,999

18,386,723

29,662,567

11,887,635

341,249

3,109,625
781,059
3,774,325

7,665,009


950,804)


475,606)

18,467,483
23,715,959

42,183,442

$ 71,846,009
 Amount
$ 7,927,403
6,358,025
174,789
506,129
634,435
6,411,077
277,131
11,919
4,919,506
782,608
17,150

28,020,172

2,196,724
311,942
14,867,168
23,228,911
885,508
524,408
269,026
17,004
643,715
461,208

43,405,614

$ 71,425,786

$ 4,258,980
1,352,810
4,136
2,757,368
17,771
1,920,255
517,913
70,814
1,443,156
28,221
262,958

12,634,382

6,991,327
9,049,770
136,375
1,411,901
481,964
1,473,867
69,253

19,614,457

32,248,839

11,887,635

271,613

2,979,753
430,526
4,346,640

7,756,919


781,058)


475,606)

18,659,503
20,517,444

39,176,947

$ 71,425,786
 Amount
$ 8,325,502
6,527,589
177,774
362,893
835,646
6,905,651
283,748
9,936
5,874,907
831,945
284,975

30,420,566

2,491,708
311,849
13,061,796
23,467,759
866,643
284,693
269,026
25,404
552,605
390,016

41,721,499

$ 72,142,065

$ 4,884,309
1,654,703
3,678
3,048,364
1,010,975
1,568,428
352,729
65,457
1,171,367
27,235
236,091

14,023,336

6,989,851
9,424,583
136,375
1,448,866
450,652
1,526,537
71,483

20,048,347

34,071,683

11,887,635

268,122

2,979,753
430,526
3,768,507

7,178,786


166,824)


475,606)

18,692,113
19,378,269

38,070,382

$ 72,142,065
















(
(















(
(















(
(

The accompanying notes are a n integral part of the consolidated f ina ncia l statements.

  • 7 -

USI CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2020 and 2019 and for the Six Months Ended June 30, 2020 and 2019

(Reviewed, Not Audited)

(Reviewed, (Reviewed, Not Audited) Not Audited) Not Audited) Not Audited) Not Audited)
Code
4100
OPERATING REVENUE (Note 27)

5110
COST OF GOODS SOLD (Notes 11, 15, 16, 18, 25
and 28)
5900
GROSS PROFIT

OPERATING EXPENSES (Notes 10, 15, 16, 18,
24, 25, 28 and 35)
6100
Selling and marketing expenses
6200
General and administrative expenses
6300
Research and development expenses

6000
Total operating expenses

6900
PROFIT FROM OPERATIONS

NON-OPERATING INCOME
AND EXPENSES
7100
Interest income (Note 28)
7010
Other income (Notes 15, 25, 28 and 35)
7020
Other gains and losses (Notes 24, 28 and 39)
7050
Finance costs (Notes 19, 20 and 28)

7060
Share of (loss) profit of joint ventures accounted
for using the equity method (Note 14)
7000
Total non-operating income and expenses

7900
PROFIT BEFORE INCOME TAX FROM
CONTINUING OPERATIONS
7950
INCOME TAX EXPENSE (Notes 4 and 29)

8000
NET PROFIT FROM CONTINUING
OPERATIONS
8100
NET PROFIT FROM DISCONTINUED
OPERATIONS (Note 12)
8200
NET PROFIT FOR THE PERIOD

OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified
subsequently to profit or loss:
8316
Profit (loss) of equity instruments at
FVTOCI (Note 26)
8349
Income tax relating to items that will
not be reclassified subsequently to
profit or loss (Notes 4, 26 and 29)
8310

Items that may be reclassified subsequently
to profit or loss:
8361
Exchange differences on translating
foreign operations (Note 26)
8399
Income tax relating to items that may
be reclassified subsequently to profit
or loss (Notes 4, 26 and 29)
8360

8300
Other comprehensive income for the
period, net of income tax
8500
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

NET PROFIT ATTRIBUTABLE TO
8610
Owners of the Company

8620
Non-controlling interests

8600

TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO
8710
Owners of the Company

8720
Non-controlling interests

8700

EARNINGS PER SHARE (Note 30)
From continuing and discontinued operations
9750
Basic

9850
Diluted

From continuing operations
9710
Basic

9810
Diluted
 For the Three Months Ended
June 30,2020
Amount
％
$ 10,856,394
100


9,347,960
86


1,508,434
14

392,280
3
291,812
3

83,644

1


767,736

7


740,698

7

31,119
-
138,988
1

29,785
-
(
57,541 )
-

(
26,675)

-


115,676

1

856,374
8

190,431

2

665,943
6

737

-


666,680

6

450,546
4


59

-


450,605

4

(
473,288 ) (
4 )

68,300

1

(
404,988)
(
3)


45,617

1

$ 712,297

7

$ 294,844
3


371,836

3

$ 666,680

6

$ 552,057
5


160,240

2

$ 712,297

7

$ 0.27

$ 0.27

$ 0.27

$ 0.27
 (In Thousands of New Taiwan Dollars, Except Earnings per Share)
For the Three Months Ended
June 30,2019
For the Six Months Ended
June 30,2020
For the Six Months Ended
June 30,2019
Amount
％
Amount
％
Amount
％
$ 14,501,230
100
$ 22,212,802
100
$ 27,994,606
100

12,922,007
89

18,865,118
85

24,855,023
89

1,579,223
11

3,347,684
15

3,139,583
11
537,058
4
856,755
4
1,034,484
4
319,594
2
589,663
2
663,002
2

105,295

1

168,766

1

216,282

1

961,947

7

1,615,184

7

1,913,768

7

617,276

4

1,732,500

8

1,225,815

4
53,751
-
60,372
-
82,156
-
293,700
2
168,200
1
358,246
1
59,370
1
(
22,382 )
-
167,433
1
(
70,191 )
-
(
124,005 ) (
1 ) (
142,183 )
-

4,320

-
(
69,795)

-

21,170

-

340,950

3

12,390

-

486,822

2
958,226
7
1,744,890
8
1,712,637
6

256,433

2

433,995

2

429,448

1
701,793
5
1,310,895
6
1,283,189
5

3,288

-

1,456

-

4,397

-

705,081

5

1,312,351

6

1,287,586

5
(
8,673 )
-
75,340
-
114,816
-

1,547

-

283

-

674

-
(
7,126)

-

75,623

-

115,490

-
(
243,310 ) (
2 ) (
731,729 ) (
3 )
177,239
1

36,321

-

91,761

-
(
22,677)

-
(
206,989)
(
2)
(
639,968)
(
3)

154,562

1
(
214,115)
(
2)
(
564,345)
(
3)

270,052

1
$ 490,966

3
$ 748,006

3
$ 1,557,638

6
$ 442,700
3
$ 511,800
2
$ 696,061
3

262,381

2

800,551

4

591,525

2
$ 705,081

5
$ 1,312,351

6
$ 1,287,586

5
$ 316,529
2
$ 332,791
1
$ 857,614
3

174,437

1

415,215

2

700,024

3
$ 490,966

3
$ 748,006

3
$ 1,557,638

6
$ 0.41
$ 0.48
$ 0.65
$ 0.41
$ 0.48
$ 0.65
$ 0.41
$ 0.48
$ 0.65
$ 0.41
$ 0.48
$ 0.65
Amount
$ 10,856,394

9,347,960

1,508,434

392,280
291,812
83,644

767,736

740,698

31,119
138,988

29,785

57,541 )

26,675)

115,676

856,374
190,431

665,943
737

666,680

450,546
59

450,605


473,288 )
68,300


404,988)

45,617

$ 712,297

$ 294,844
371,836

$ 666,680

$ 552,057
160,240

$ 712,297

$ 0.27
$ 0.27
$ 0.27
$ 0.27		 Amount
$ 14,501,230

12,922,007

1,579,223

537,058
319,594
105,295

961,947

617,276

53,751
293,700
59,370

70,191 )
4,320

340,950

958,226
256,433

701,793
3,288

705,081


8,673 )
1,547


7,126)


243,310 )
36,321


206,989)


214,115)

$ 490,966

$ 442,700
262,381

$ 705,081

$ 316,529
174,437

$ 490,966

$ 0.41
$ 0.41
$ 0.41
$ 0.41		 Amount
$ 27,994,606

24,855,023

3,139,583

1,034,484
663,002
216,282

1,913,768

1,225,815

82,156
358,246
167,433

142,183 )
21,170

486,822

1,712,637
429,448

1,283,189
4,397

1,287,586

114,816
674

115,490


177,239

22,677)

154,562

270,052

$ 1,557,638

$ 696,061
591,525

$ 1,287,586

$ 857,614
700,024

$ 1,557,638

$ 0.65
$ 0.65
$ 0.65
$ 0.65		 ％







(
(






(

(





(





(

(
(

(
(





(








(












 100
89
11
4
2

1

7

4
-
1
1

-

-

2
6

1
5

-

5
-

-

-
1

-

1

1

6
3

2

5
3

3

6

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

  • 8 -

USI C ORP ORAT I O N AND SUB SI D IAR IE S

CON SOL ID AT E D ST AT E M E NT S OF C HA NG E S I N E QUIT Y

Fo r t h e Si x M o n t h s E n d ed Jun e 3 0 , 2 0 2 0 a n d 2 0 1 9

(Revi ew ed , No t A ud i t ed ) 

( I n  Th o us a nd s  of  Ne w  Ta i wa n  D o l la r s)
Code
A1
BALANCE AT JANUARY 1, 2019
A3
Effects of retrospective application
A5
Reclassified balance at January 1, 2019
Appropriation of 2018 earnings
B1
Legal reserve
B3
Special reserve
B5
Cash dividends distributed by
the Company
O1
Cash dividends distributed by
subsidiaries
D1
Net profit for the six months ended
June 30, 2019
D3
Other comprehensive income for
the six months ended June 30,
2019, net of income tax
D5
Total comprehensive income for the
six months ended June 30, 2019
C7
Changes in capital surplus and retained earnings
from investments in subsidiaries
M1
Changes in capital surplus from distributing cash
dividends to subsidiaries
Q1
Disposal of equity instruments
measured at FVTOCI
O1
Change in non-controlling interests
Z1
BALANCE AT JUNE 30, 2019
A1
BALANCE AT JANUARY 1, 2020
Appropriation of 2019 earnings
B1
Legal reserve
B3
Special reserve
B5
Cash dividends distributed by the Company
O1
Cash dividends distributed by subsidiaries
D1
Net profit for the six months ended June 30, 2020
D3
Other comprehensive income for the six months
ended June 30, 2020, net of income tax
D5
Total comprehensive income for the six months
ended June 30, 2020
C7
Changes in capital surplus and retained
earnings from investments in subsidiaries
M1
Changes in capital surplus from distributing
cash dividends to subsidiaries
Q1
Disposal of equity instruments measured at FVTOCI
O1
Change in non-controlling interests
Z1
BALANCE AT JUNE 30, 2020		 EquityAttri butable to Owners of the Company Total

$ 18,187,153

9,509)
18,177,644
-
-

356,629 )
-
696,061
161,553
857,614
1,985
11,499
-
-
$ 18,692,113
$ 18,659,503
-
-

594,382 )
-
511,800

179,009)
332,791
50,406
19,165
-
-
$ 18,467,483		 Non-controlling
interests
(Notes 8,13,and 26)
$ 18,267,556
(
4,490)
18,263,066
-
-
-
(
705,440 )
591,525

108,499

700,024
(
1,861 )
-
-

1,122,480
$ 19,378,269
$ 20,517,444
-
-
-
(
519,048 )
800,551
(
385,336)

415,215
(
50,680 )
-
-

3,353,028
$ 23,715,959		 Total Equity
Share Capital
(Note 26)
$ 11,887,635
-
11,887,635
-
-
-
-
-
-
-
-
-
-
-
$ 11,887,635
$ 11,887,635
-
-
-
-
-
-
-
-
-
-
-
$ 11,887,635		 Capital Surplus Others
(Note 26)
$ 17,163
-
17,163
-
-
-
-
-
-
-
-
-
-
-
$ 17,163
$ 18,840
-
-
-
-
-
-
-
-
-
-
-
$ 18,840		 Retained Earnings Unappropriated
Earnings
(Notes 13 and 26)
$ 3,513,943
(
9,509)
3,504,434
(
53,994 )
(
55,399 )
(
356,629 )
-
696,061

-

696,061
(
900 )
-
34,934

-
$ 3,768,507
$ 4,346,640
(
129,872 )
(
350,533 )
(
594,382 )
-
511,800

-

511,800
(
65 )
-
(
9,263 )

-
$ 3,774,325		 Other Equity
Exchange
Differences on
Translating Foreign
Operations
Unrealized Gain
(Loss) on Financial
Assets at FVTOCI
(Notes 26 and 29)
(Notes 8,26,and 29)
( $ 208,307 )
( $ 85,136 )

-

-
(
208,307 )
(
85,136 )
-
-
-
-
-
-
-
-
-
-

81,401

80,152

81,401

80,152
-
-
-
-
-
(
34,934 )

-

-
($ 126,906)
($ 39,918)
( $ 602,871 )
( $ 178,187 )
-
-
-
-
-
-
-
-
-
-
(
275,353)

96,344
(
275,353)

96,344
-
-
-
-
-
9,263

-

-
($ 878,224)
($ 72,580)		 Treasury Shares
(Note 26)
( $ 475,606 )

-
(
475,606 )
-
-
-
-
-

-

-
-
-
-

-
($ 475,606)
( $ 475,606 )
-
-
-
-
-

-

-
-
-
-

-
($ 475,606)
Treasury Share
Transactions
(Note 26)
$ 233,983

-
233,983
-
-
-
-
-

-

-
-
11,499
-

-
$ 245,482
$ 245,482
-
-
-
-
-

-

-
-
19,165
-

-
$ 264,647		 Shares of Changes
in Capital Surplus
of Associates
(Notes 13 and 26)
$ 2,592

-
2,592
-
-
-
-
-

-

-
2,885
-
-

-
$ 5,477
$ 7,291
-
-
-
-
-

-

-
50,471
-
-

-
$ 57,762		 Exchange
Differences on
Translating Foreign
Operations
(Notes 26 and 29)

( $ 208,307 )

-
(
208,307 )
-
-
-
-
-

81,401

81,401
-
-
-

-
($ 126,906)
( $ 602,871 )
-
-
-
-
-
(
275,353)
(
275,353)
-
-
-

-
($ 878,224)
Legal Reserve
(Note 26)
$ 2,925,759
-
2,925,759
53,994
-
-
-
-
-
-
-
-
-
-
$ 2,979,753
$ 2,979,753
129,872
-
-
-
-
-
-
-
-
-
-
$ 3,109,625		 Special Reserve
(Note 26)
$ 375,127

-
375,127
-
55,399
-
-
-

-

-
-
-
-

-
$ 430,526
$ 430,526
-
350,533
-
-
-

-

-
-
-
-

-
$ 781,059





























































(
(
(
(


(



(
(
(


(
(

 (

(



(
(
(
(

(		 (

(


(

(
(



(		 (

(



(
(



(
(
(





(
(
(
(


(



(
(

(
(
(
(





(
(
(

(

 $ 36,454,709

13,999)
36,440,710
-
-

356,629 )

705,440 )
1,287,586
270,052
1,557,638
124
11,499
-
1,122,480
$ 38,070,382
$ 39,176,947
-
-

594,382 )

519,048 )
1,312,351

564,345)
748,006

274 )
19,165
-
3,353,028
$ 42,183,442

T h e a cco m pa n yi n g n o t es a r e a n i n t egr a l pa r t o f t h e co n so l i d a t ed fi n a n ci a l st a t em en t s.

  • 9 -

USI CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2020 and 2019

(Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars)

C o d e
CASH FLOWS FROM OPERATING
ACTIVITIES
A00010
Income before income tax from
continuing operations
A00020
Income before income tax from
discontinued operations
A10000
Income before income tax

A20010
Adjustments for:
A20100
Depreciation expenses

A20200
Amortization expenses
A20300
Expected credit loss reversed
on accounts receivable
A20400
Net loss (gain) on fair value
change of financial assets
and liabilities as at FVTPL
A20900
Finance costs
A21200
Interest income

A21300
Dividend Income

A22300
Share of loss (profit) of joint
ventures accounted for using
the equity method
A22500
Loss (gain) on disposal of
property, plant and
equipment
A23800
Inventory write-downs
(reversed) recognized
A23700
Impairment loss recognized on
non-financial assets
A29900
Gain on government grants
A29900
(Reversed) recognition of
refund liabilities		 For the Six
Months Ended
June 30,2020
$ 1,744,890


1,456

1,746,346

1,138,031

34,489
(
1,351 )

295,867

125,233
(
60,372 )

(
69,324 )

69,795

17,867

20,072

6,398
-

(
7,120 )
 For the Six
Months Ended
June 30,2019
$ 1,712,637

4,397
1,717,034
1,051,614
33,011
(
6,684 )
(
68,356 )
156,425
(
82,156 )
(
51,136 )
(
21,170 )
(
35,079 )
(
14,301 )
14,424
(
155,710 )
(
6,581 )		 
(Continued)
  • 10 -
Code
A30000
Changes in operating assets and
liabilities
A31115
Decrease (increase) in financial
assets mandatorily classified
as at FVTPL
A31130
Decrease in notes receivable
A31150
Decrease in accounts
receivable
A31180
Decrease in other receivables
A31200
Decrease in inventories
A31230
Decrease (Increase) in
prepayments
A31240
Increase in other current assets
A32130
Decrease in notes payable
A32150
Decrease in accounts payable

A32180
Decrease in other payables

A32200
(Decrease) increase in
provisions
A32240
Decrease in net defined benefit
liabilities
A32230
Increase (Decrease) in other
current liabilities
A33000
Cash generated from operations

A33100
Interest received
A33300
Interest paid

A33500
Income tax paid

AAAA
Net cash generated from
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES
B00010
Payments for financial assets at
FVTOCI
B00020
Proceeds from sale of financial
assets at FVTOCI
B00030
Reduction of capital by returning
cash of financial assets at
FVTOCI
(Continued)		 For the Six
Months Ended
June 30,2020
856,904

227,458
1,261,233

69,769
866,810
187,284

( $ 235,738 )

-

(
638,609 )

(
251,879 )

(
3,746 )
(
116,924 )


134,585

5,673,078

59,950
(
139,325 )

(
457,820)

5,135,883

(
77,149 )

15,577
-		 For the Six
Months Ended
June 30,2019
( 1,382,385 )
180,232
633,555
88,041
866,243
(
98,453 )
( $ 273,066 )
(
108 )
(
344,215 )
(
250,877 )
3,782
(
131,691 )
(
47,298)
1,775,095
79,345
(
147,804 )
(
271,987)
1,434,649
(
63 )
80,649
46,122
  • 11 -
Code
B00050
Proceeds from sale of financial
assets measured at amortized
cost
B01800
Acquisition of investments
accounted for using the equity
method
B02700
Payments for property, plant and
equipment
B02800
Proceeds from disposal of
property, plant and equipment
B03700
Decrease in refundable deposits
B04500
Payments for other intangible
assets
B06700
Decrease (Increase) in other
non-current assets
B09900
Compensations for land
ownership certificate
BBBB
Net cash used in investing
activities
CASH FLOWS FROM FINANCING
ACTIVITIES
C00100
Increase (Decrease) in short-term
borrowings
C00500
(Decrease) Increase in short-term
bills payable
C01200
Proceeds from issuance of bond
C01300
Repayments of bonds

C01600
Proceeds from mid- to long-term
borrowings
C01700
Repayments of mid- to long-term
borrowings
C03100
Increase in guarantee deposits
received
C04020
Repayments of the principal
portion of lease liabilities
C04400
Decrease in other current liabilities
C04500
Decrease in dividends payable
 For the Six
Months Ended
June 30,2020
1,545
( 3,811,781 )

( 1,043,726 )

13,712
20,384
(
113 )

7,136


-

(4,874,415)

60,068

(
282,000 )
-

( 1,000,000 )
9,140,000

( 10,559,942 )

15,072
( $ 34,075 )

(
1,326 )

(
73,242 )
 For the Six
Months Ended
June 30,2019
76,151
( 2,612,256 )
(
733,862 )
52,918
3,912
(
4,614 )
(
98,194 )

154,764
(3,034,473)
( 1,842,545 )
140,000
1,995,630
-
21,559,000
( 21,105,441 )
50
( $ 30,200 )
(
49 )
(
71,270 )		 
(Continued)
  • 12 -
C o d e
C05800
Change in non-controlling
interests
CCCC
Net cash generated from
financing activities
DDDD EFFECTS OF EXCHANGE RATE
CHANGES ON THE BALANCE OF
CASH AND CASH EQUIVALENTS
HELD IN FOREIGN CURRENCIES
EEEE
NET INCREASE IN CASH AND
CASH EQUIVALENTS
E00100 CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE
PERIOD
E00200 CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD		 For the Six
Months Ended
June 30,2020
3,353,028


617,583

(
121,195)

757,856
7,927,403

$ 8,685,259
 For the Six
Months Ended
June 30,2019		 For the Six
Months Ended
June 30,2019


(



1,122,480
1,767,655
34,367
202,198
8,123,304
$ 8,325,502

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

  • 13 -

USI CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019 (Reviewed, Not Audited)

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

1. GENERAL INFORMATION

USI Corporation (“USI”, the “Company” or the “parent company”) was incorporated in May 1965. The Company mainly produces and sells polyethylene. In May 1972, the Company’s shares have been listed on the Taiwan Stock Exchange (“TWSE”).

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved and issued by the Company’s board of directors on August 13, 2020.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS

AND INTERPRETATIONS

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

The initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC

  • 14 -

would not have any material impact on the Group’s accounting policies.

  • b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC
the FSC
New, Revised or Amended Standards and
Interpretations
Annual Improvements to IFRS Standards
2018–2020
Amendments to IFRS 3 “Reference to the
Conceptual Framework”
Amendments to IFRS 4 “Extension of the
Temporary Exemption from Applying IFRS 9”
Amendments to IFRS 10 and IAS 28 “Sale or
Contribution of Assets between an Investor and
its Associate or Joint Venture”
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17
Amendments to IAS 1 “Classification of
Liabilities as Current or Non-current”
Amendments to IAS 16 “Property, Plant and
Equipment – Proceeds before Intended Use”
Amendments to IAS 37 “Onerous
Contracts–Cost of Fulfilling a Contract”		 Effective Date
Announced by IASB
(Note 1)
January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
Effective immediately
upon promulgation by
the IASB
To be determined by
IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

  • Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

  • Note 2: The amendments to IFRS 9 are applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applied prospectively to the fair value measurements on or after the annual reporting period s beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied

  • 15 -

retrospectively for annual reporting periods beginning on or after January 1, 2022.

  • Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2022.

  • Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

  • Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s consolidated financial position and financial performance and will disclose the relevant impact when the assessment is completed.

  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  2. a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, or other regulations and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

  • b. Basis of preparation

  • 16 -

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that 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 are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair va lue measurement in its entirety, which 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

c.

3) Level 3 inputs are unobservable inputs for an asset or liability. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial sta tements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even

  • 17 -

if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiar y at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

Please refer to Note 13, Table 7, and Table 8 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

  • d.

Other significant accounting policies

Accounting policies applied in these consolidated financial statements except for the following can be referred to in the summary of significant accounting policies of the consolidated financial statements for the year ended December 31, 2019.

  • 18 -

1) Employee retirement benefits

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

2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF

ESTIMATION UNCERTAINTY

The Group has considered the economic implications of COVID-19 on critical accounting estimates and will continue evaluating the impact on its financial position and financial performance as a result of the pandemic. In addition, the same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2019.

6. CASH AND CASH EQUIVALENTS

Cash on hand and petty
cash
Checking accounts and
demand deposits
Cash equivalents
Time deposits
 June 30,2020

$ 111,754
2,562,668
5,980,768
 December 31,
2019
$ 74,250

2,174,906

5,463,246
 June 30,2019
$ 96,891
2,070,805
5,618,687

(Continued)

  • 19 -
June 30, 2020
December
31,
2019
June 30, 2019
Reserve repurchase
agreements
collateralized by
bonds

30,069

215,001

539,119
$ 8,685,259
$ 7,927,403
$ 8,325,502
At the end of the reporting period, the ranges of the market
rates for bank deposits and reserve repurchase agreements
collateralized by bonds were as follows:
June 30,2020
December 31,
2019
June 30,2019
Bank deposits
0.15%～5.80% 0.10%～3.75% 0.60%～7.30%
Reserve repurchase
agreements collateralized
by bonds
0.15%～1.10%
0.58%～1.90%
0.50%～2.55%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT		 June 30, 2020
December
31,
2019
June 30, 2019
Reserve repurchase
agreements
collateralized by
bonds

30,069

215,001

539,119
$ 8,685,259
$ 7,927,403
$ 8,325,502
At the end of the reporting period, the ranges of the market
rates for bank deposits and reserve repurchase agreements
collateralized by bonds were as follows:
June 30,2020
December 31,
2019
June 30,2019
Bank deposits
0.15%～5.80% 0.10%～3.75% 0.60%～7.30%
Reserve repurchase
agreements collateralized
by bonds
0.15%～1.10%
0.58%～1.90%
0.50%～2.55%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT		 June 30, 2020
December
31,
2019
June 30, 2019
Reserve repurchase
agreements
collateralized by
bonds

30,069

215,001

539,119
$ 8,685,259
$ 7,927,403
$ 8,325,502
At the end of the reporting period, the ranges of the market
rates for bank deposits and reserve repurchase agreements
collateralized by bonds were as follows:
June 30,2020
December 31,
2019
June 30,2019
Bank deposits
0.15%～5.80% 0.10%～3.75% 0.60%～7.30%
Reserve repurchase
agreements collateralized
by bonds
0.15%～1.10%
0.58%～1.90%
0.50%～2.55%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT		 June 30, 2020
December
31,
2019
June 30, 2019
Reserve repurchase
agreements
collateralized by
bonds

30,069

215,001

539,119
$ 8,685,259
$ 7,927,403
$ 8,325,502
At the end of the reporting period, the ranges of the market
rates for bank deposits and reserve repurchase agreements
collateralized by bonds were as follows:
June 30,2020
December 31,
2019
June 30,2019
Bank deposits
0.15%～5.80% 0.10%～3.75% 0.60%～7.30%
Reserve repurchase
agreements collateralized
by bonds
0.15%～1.10%
0.58%～1.90%
0.50%～2.55%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT		 June 30, 2020
December
31,
2019
June 30, 2019
Reserve repurchase
agreements
collateralized by
bonds

30,069

215,001

539,119
$ 8,685,259
$ 7,927,403
$ 8,325,502
At the end of the reporting period, the ranges of the market
rates for bank deposits and reserve repurchase agreements
collateralized by bonds were as follows:
June 30,2020
December 31,
2019
June 30,2019
Bank deposits
0.15%～5.80% 0.10%～3.75% 0.60%～7.30%
Reserve repurchase
agreements collateralized
by bonds
0.15%～1.10%
0.58%～1.90%
0.50%～2.55%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT
OR LOSS-CURRENT
Financial assets
mandatorily at FVTPL
Derivative financial assets
(not under hedge
accounting)
Foreign exchange
forward contracts

Non-derivative financial
assets
Domestic listed shares
and over-the-counter
shares
Mutual funds

Beneficiary securities
Overseas listed shares


 June 30,2020

$ 8,366

237,467
4,746,239


212,313


516

5,196,535

$ 5,204,901
 December 31,
2019
$ 14,066

364,057
4,907,560

1,071,797

545

6,343,959

$ 6,358,025
 June 30,2019














$ 14,680
168,783
5,344,351
998,980
795
6,512,909
$ 6,527,589

At the end of the reporting period, the ranges of the market rates for bank deposits and reserve repurchase agreements collateralized by bonds were as follows:

  1. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

(Continued)

  • 20 -
Financial liabilities held for
trading
Derivative financial
liabilities (not under
hedge accounting)
Foreign exchange
forward contracts
 June 30,2020

$ 3,783
 December 31,
2019
$ 4,136
 June 30,2019 June 30,2019
$ 3,678

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

follows:
June 30, 2020
Sell
Sell
Sell
Sell
Buy
Buy
December
31,
2019
Sell
Sell
Sell
Sell
Buy
Buy
June 30, 2019
Sell
Sell
Sell
Sell
Buy
Buy		 Currency
RMB/NTD

USD/MYR

USD/NTD

EUR/MYR

NTD/USD

JPY/USD
RMB/NTD

USD/MYR

USD/NTD

EUR/MYR

JPY/USD

NTD/USD

RMB/NTD

USD/MYR

USD/NTD

EUR/MYR

NTD/USD

JPY/USD
 MaturityDate
109.07.03-109.09.24
109.09.30-110.04.30
109.07.06-109.10.16
109.08.28-110.04.30
109.08.04-109.08.25
109.07.21

109.01.01-109.03.30
109.03.31-109.06.30
109.01.03-109.03.24
109.03.31-109.06.30
109.01.06-109.01.22
109.01.13-109.03.04
108.07.02-108.09.27
108.08.30-108.12.16
108.07.02-108.10.16
108.07.31-108.10.30
108.07.15-108.09.16
108.07.19-108.09.26		 Notional Amount
(In Thousands)
RMB 141,300 /NTD
591,071
USD
1,092 /MYR
4,626
USD
33,570 /NTD
996,670
EUR
274 /MYR
1,299
NTD 127,375 /USD
4,280
JPY
30,000 /USD
281
RMB 237,700 /NTD 1,020,283
USD
865 /MYR
3,626
USD
41,000 /NTD 1,241,134
EUR
224 /MYR
1,041
JPY
40,000 /USD
368
NTD 285,868 /USD
9,480
RMB 238,100 /NTD 1,077,145
USD
1,156 /MYR
4,793
USD
40,150 /NTD 1,253,046
EUR
185 /MYR
866
NTD 237,265 /USD
7,600
JPY
40,000 /USD
372

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness, and therefore, the

  • 21 -

Group did not apply hedge accounting treatments for derivative contracts.

contracts. contracts. contracts. contracts.
FINANCIAL
ASSETS
AT
FAIR
VALUE
THROUGH
OTHER
COMPREHENSIVE INCOME
June 30,2020

Current
Investments in equity
instruments at FVTOCI
Domestic investments
Domestic listed
shares and
over-the-counter
shares
$ 168,931

Non-current
Investments in equity
instruments at FVTOCI
Domestic investments
Listed shares and
over-the-counter
shares
$ 1,440,794

Emerging market
shares
10,495
Unlisted shares

680,028

2,131,317

Overseas investments
Listed shares and
over-the-counter
shares
7,089
Unlisted shares

97,961


105,050

$ 2,236,367
 December 31,
2019
$ 174,789

$ 1,439,624

16,178

632,134

2,087,936

8,649

100,139


108,788

$ 2,196,724
 June 30,2019
$ 177,774
$ 1,670,977
27,500

680,447
2,378,924
6,940

105,844

112,784
$ 2,491,708
Current
Investments in equity
instruments at FVTOCI
Domestic investments
Domestic listed
shares and
over-the-counter
shares

Non-current
Investments in equity
instruments at FVTOCI
Domestic investments
Listed shares and
over-the-counter
shares

Emerging market
shares
Unlisted shares


Overseas investments
Listed shares and
over-the-counter
shares
Unlisted shares


















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

  • 22 -

The Group sold 1,734 thousand shares of Global BioPharma, Inc. during the six months ended June 30, 2020. The related other equity interests – the $10,434 thousand unrealized loss on FVTOCI financial assets was transferred to $9,263 thousand of retained earnings and $1,171 thousand of non-controlling interests.

The Group sold 100 thousand shares of CTCI Corporation and 684 thousand preference shares of Silicon Technology Investment (Cayman) Corp. during the six months ended June 30, 2019, and transferred a total gain of $55,750 thousand from other equity to retained earnings in the amount of $34,934 thousand and to non-controlling interests in the amount of $20,816 thousand.

The investees announced a reduction of capital by returning cash during the six months ended June 30, 2019, and the Group received $46,122 thousand according to its ownership percentage.

The Group recognized dividend income of $67,793 thousand and $49,778 thousand, respectively, for the six months ended June 30, 2020 and 2019.

Please refer to Note 36 for the information related to finan cial assets at FVTOCI pledged as security.

  1. FINANCIAL ASSETS MEASURED AT AMORTIZED COST
Current
Pledged time deposits

Time deposits with initial
maturity of more than
three months


Non-current
Pledged time deposits

Range of interest rates
Pledged time deposits		 June 30,2020
$ 347,531


138,953

$ 486,484

$ 330,042

0.04%～3.75%		 December 31,
2019
$ 347,981


158,148
$ 506,129

$ 311,942

0.09%～3.75%		 June 30,2019 June 30,2019




$ 362,893
-
$ 362,893
$ 311,849
0.09%～4.1%

(Continued)

  • 23 -

December 31, June 30, 2020 2019 June 30, 2019 Time deposits with initial maturity of more than three months[2.70%] [～][3.00% ][3.00%] [～][3.20% ] -

The trading partners of the Group are financial institutions with good credit ratings, and the short-term financial products invested in are with bank guaranteed principal and interests. The credit risk has been assessed by investigating the final capital destination and its impacts on principal and interests. After assessing that the time deposits have low credit risk, no allowance for loss is recognized.

Please refer to Note 36 for the information related to financial assets measured at amortized cost pledged as security.

10. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

RECEIVABLES
Notes receivable (a)
At amortized cost
Gross carrying amount
Less: Allowance for
impairment loss


Accounts receivable (a)
At amortized cost
Gross carrying
amount

Less: Allowance for
impairment loss

 June 30,2020
$ 406,977


-

$ 406,977

$ 5,243,492

(
91,855)

$ 5,151,637
 December 31,
2019
$ 634,435


-

$ 634,435

$ 6,504,725

(
93,648)

$ 6,411,077
 June 30,2019




(



(
(


(
 $ 835,651

5)
$ 835,646
$ 7,011,011

105,360)
$ 6,905,651

(Continued)

  • 24 -
Other receivables (b)
Tax refund receivable

Lent material fees
receivable
Government grants
receivable (Note 15)
Others

 June 30,2020
$ 117,935

95,262
-

89,204

$ 302,401
 December 31,
2019
$ 209,112

-
-

68,019

$ 277,131
 June 30,2019 June 30,2019






$ 179,748
-
38,230
65,770
$ 283,748

(a) Notes and accounts receivable

The average credit period of sales of goods was 10 to 150 days. No interest was charged on the receivables.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Before accepting a new customer, the Group surveys the customers’ credit history and measures the potential customer’s credit quality to grant a credit term. A customer’s credit term and rating are reviewed annually. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk is significantly reduced.

The Group applies the simplified approach to the recognition of allowances for expected credit losses during the reporting period. The expected credit losses on trade receivables are estimated using an allowance matrix by reference to past default experience with the respective debtors and an analysis of the debtors’ current financial positions, adjusted for general

  • 25 -

economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group’s historical credit losses experience does not show significantly different loss patterns for different customer segments, the loss allowance, which is based on the past due status of receivables, is not further distinguished according to different segments of the Group’s customer base.

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

The following table details the loss allowance of trade receivable based on the Group’s allowance matrix: June 30, 2020

Based on the number of days past due


Gross carrying
amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days
$ 2,292,657

(
4,651)

$ 2,288,006
 61～90 Days
$ 10,940


-

$ 10,940
 Over 90 Days
$ 3,202

(
1,979)

$ 1,223
 Total

(


(
(
 $ 2,306,799
6,630)
$ 2,300,169

Based on credit quality

Gross carrying amount
Loss allowance (Lifetime ECLs)
Amortized cost		 Credit Rating
A		 Credit Rating
A		 Credit Rating
B		 Credit Rating
B		 Credit Rating
C		 Credit Rating
C		 Others Total

(
 $ 452,974


3,828)

$ 449,146
(
 $ 634,081


5,575)

$ 628,506
(
 $ 568,419


7,873)

$ 560,546
(
 $ 1,688,196

67,949)
$ 1,620,247
(
 $ 3,343,670

85,225)
$ 3,258,445

December 31, 2019

Based on the number of days past due

  • 26 -

Gross carrying
amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days
$ 3,033,751

(
4,651)

$ 3,029,100
 61～90 Days
$ 1,120


-

$ 1,120
 Over 90 Days
$ 3,661

(
2,186)

$ 1,475
 Total

(


(
(
 $ 3,038,532
6,837)
$ 3,031,695

Based on credit quality

Gross carrying amount
Loss allowance (Lifetime ECLs)
Amortized cost		 Credit Rating
A		 Credit Rating
A		 Credit Rating
B		 Credit Rating
B		 Credit Rating
C		 Credit Rating
C		 Others Total

(
 $ 423,655


4,753)

$ 418,902
(
 $ 841,666

5,327)
$ 836,339
(
 $ 728,221


6,117)

$ 722,104
(
 $ 2,107,086

70,614)
$ 2,036,472
(
 $ 4,100,628

86,811)
$ 4,013,817

June 30, 2019

Based on the number of days past due


Gross carrying
amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days
$ 3,008,117

(
4,651)

$ 3,003,466
 61～90 Days
$ 7,680

(
586)

$ 7,094
 Over 90 Days
$ 16,173

(
13,536)

$ 2,637
 Total

(
(
(
(
 $ 3,031,970
18,773)
$ 3,013,197

Based on credit quality

Gross carrying amount
Loss allowance (Lifetime ECLs)
Amortized cost		 Credit Rating
A		 Credit Rating
A		 Credit Rating
B		 Credit Rating
B		 Credit Rating
C		 Credit Rating
C		 Others Total

(
 $ 468,030


4,007)

$ 464,023
(
 $ 820,292

5,307)
$ 814,985
(
 $ 884,171


9,481)

$ 874,690
(
 $ 2,642,199

67,797)
$ 2,574,402
(
 $ 4,814,692

86,592)
$ 4,728,100

The aging schedule of notes and accounts receivable were as follows:

follows:
Not past due

Up to 60 days

Over 60 days

 June 30,2020
$ 3,235,761


90,100

17,809

$ 3,343,670
December 31,
2019

$ 3,874,348

147,019


79,261

$ 4,100,628
 June 30,2019





$ 4,673,400

67,405

73,887
$ 4,814,692

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

Movements in the allowance for impairment loss recognized on notes and accounts receivable were as follows:

  • 27 -
Balance at January
Less: Impairment losses
reversed
Less: Amounts written off
during the period as
uncollectible
Foreign exchange
translation gains and losses
Balance on June 30		 For the Six
Months Ended
June 30,2020
$ 93,648
(
1,351 )
-
(
442)
$ 91,855		 For the Six
Months Ended
June 30,2019
$ 111,779
(
6,684 )
(
63 )

333
$ 105,365

(b) Other receivables

Other receivables mainly consisted of tax refund receivable, lent material fees receivable, refunds from capital reduction of financial products, government grants receivable, etc. The average aging of other receivables was less th an 60 days based on the number of days past due from the invoice date, and an impairment loss was assessed based on the expected credit losses. There were no other overdue receivables with an unrecognized allowance for doubtful accounts in the Group as of June 30, 2020, December 31, 2019 and June 30, 2019.

11. INVENTORIES

INVENTORIES
Finished goods

Work in progress
Raw materials

Supplies
Inventory in transit

 June 30,2020
$ 1,981,142

354,348
1,323,009

351,297

36,558

$ 4,046,354
December 31,
2019

$ 2,728,069

350,133
1,315,085

317,289

208,930

$ 4,919,506
 June 30,2019









$ 3,405,863
526,455
1,584,043
320,277

38,269
$ 5,874,907

The costs of inventories recognized as cost of goods sold for the three months ended June 30, 2020 and 2019, were $9,347,960 thousand and $12,922,007 thousand, respectively, and for the six months ended June 30, 2020 and 2019 were $18,865,118 thousand and $24,855,023 thousand, respectively.

  • 28 -

The inventory write-downs included in the cost of goods sold were $12,649 thousand and $10,307 thousand for the three months ended June 30, 2020 and 2019, respectively; the inventory write-down for the six months ended June 30, 2020 was $20,072 thousand, and the reversal of write-downs for the six months ended June 30, 2019 was $14,301 thousand. Previous write-downs were reversed as a result of increased selling prices in certain markets.

12.

DISCONTINUED OPERATIONS

On October 24, 2011, the board of directors of China General Plastics Corporation (“CGPC”) approved to dispose of CGPC (Zhong Shan) Co., Ltd. and CGPC Consumer Products Corporation. The details of the profit (loss) from discontinued operations and the related cash flow information were as follows:

The operating performance of the discontinued operations included in the consolidated statements of comprehensive income was as follows:

was as follows:
Administrative expenses
Loss from operations

Non-operating income

Net profit from
discontinued operations
 For the Three
Months Ended
June 30,2020
For the Three
Months Ended
June 30,2019
($ 5,822)

(
5,822 )


9,110

$ 3,288
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
($ 12,384)
(
12,384 )

16,781
$ 4,397
(
(

 $ 5,020)


5,020 )

5,757

$ 737
 (
(

 $ 10,170)


10,170 )

11,626

$ 1,456
 $ 12,384)

12,384 )
16,781
$ 4,397

For the six months ended June 30, 2020 and 2019, the cash flows which can be attributed to the discontinued operations were as follows:

follows:
Net cash generated from
operating activities
Effect of exchange rate changes
Net cash inflow		 For the Six
Months Ended
June 30,2020
$ 7,771
(
2,305 )
$ 5,466		 For the Six
Months Ended
June 30,2019

(

$ 3,033
723
$ 3,756
  1. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements:

  • 29 -
Investor Investee Name of Activities Proportion of Ownership (%) Proportion of Ownership (%) Proportion of Ownership (%) Remark
June 30,
2020
100.0%

100.0%

100.0%

100.0%

99.9%

100.0%

100.0%

94.4%

100.0%

30.4%
10.0%
10.0%
30.4%
15.0%

95.8%

70.0%
8.3%

78.3%

40.6%
8.0%
4.5%

53.1%

26.9%
1.7%
9.3%
3.3%
2.4%
1.0%

44.6%

50.9%
34.0%
9.2%
0.2%

94.3%
 December
31,2019
100.0%

100.0%

100.0%

100.0%

99.9%

100.0%

100.0%

93.2%

100.0%

30.4%
10.0%
10.0%
30.4%
15.0%

95.8%

70.0%
8.3%

78.3%

40.6%

8.0%
0.4%

49.0%

26.9%

1.7%

9.3%

3.3%

2.4%
1.0%

44.6%

50.9%
34.0%

9.2%
0.2%

94.3%
 June 30,
2019
The Company








Cypress Epoch Limited
The Company

Taita Chemical
Company, Ltd.
China General Plastics
Corporation
Asia Polymer
Corporation
Taiwan United Venture
Capital Corp.
The Company

Asia Polymer
Corporation (“APC”)
The Company

Asia Polymer
Corporation
USIFE Investment Co.,
Ltd.
The Company

China General Plastics
Corporation
USIFE Investment Co.,
Ltd.
Asia Polymer
Corporation
Taita Chemical
Company, Ltd.
APC Investment
Corporation
The Company

Acme Electronics Corp.
Asia Polymer
Corporation
USIFE Investment Co.,
Ltd		 USIFE Investment Co., Ltd.
(“USII”)

Swanlake Traders Ltd.
（Swanlake）

USI Far East (HK) Co., Ltd.
USI Management
Consulting Corp (“UM”)

Chong Loong Trading Co.,
Ltd. (“CLT”)

Union Polymer Int’l
Investment Corp.
(“UPIIC”)

Cypress Epoch Limited

Inoma Corporation
(“INOMA”)

Usig (Shanghai) Co., Ltd.

Thintec Materials
Corporation (“TMC”)

Taiwan United Venture
Capital Corp. (“TUVC”)

Swanson Plastics Corp.
(“SPC”)

Acme Electronics Corp.
(“ACME”)

USI Optronics Corporation
(“USIO”)

 Investment business

Trading and investment

Trading and investment

Providing management
services

Engaging in import and export
trade

Investment business

Investment business

Engaging in optical products
and fireproof materials

Import and distribution of
various chemical raw
materials and products

Reinforced plastic products
manufacturing






Venture capital



Production and marketing of
stretch film, embossed film
and
industrial
use
multi-layer wrap



Production and marketing of
manganese-zinc soft ferrite
powder



Manufacture and marketing of
sapphire crystal


























100.0%
100.0%
100.0%
100.0%
99.9%
100.0%
100.0%
93.2%
100.0%
30.4%
10.0%
10.0%
30.4%
15.0%
95.8%
70.0%
8.3%
78.3%
40.6%

8.0%
0.1%
48.7%
26.9%

1.7%

9.3%

3.3%

2.4%
1.0%
44.6%
50.9%
34.0%

9.2%
0.2%
94.3%		 11.
1.




2.



3.





12.

(Continued)

  • 30 -
Investor Investee Name of Activities Proportion of Ownership (%) Proportion of Ownership (%) Proportion of Ownership (%) Remark
June 30,
2020
51.3%
16.6%
11.2%
5.4%

84.5%

100.0%

-

100.0%

100.0%

100.0%

36.1%
0.9%
0.3%
-

37.3%

100.0%

70.0%
30.0%

100.0%

100.0%

100.0%

36.8%
0.6%
0.4%

37.8%

100.0%
 December
31,2019
51.3%
16.6%
11.2%
5.4%

84.5%

100.0%

100.0%

100.0%

100.0%

100.0%

36.1%

0.9%

0.3%
-

37.3%

100.0%

70.0%
30.0%

100.0%

100.0%

100.0%

36.8%

0.6%
0.4%

37.8%

100.0%
 June 30,
2019
Acme Electronics Corp.
APC (BVI) Holding Co.,
Ltd.
Swanlake Traders Ltd.
TAITA (BVI) Holding
Co., Ltd.
Acme Electronics Corp.

ACME Electronics
(Cayman) Corp.


Golden Amber
Enterprises Limited

Union Polymer Int’l
Investment Corp.

China General Terminal
& Distribution Co.
USIFE Investment Co.,
Ltd.
Taiwan VCM
Corporation
Asia Polymer
Corporation

Asia Polymer
Corporation

APC (BVI) Holding Co.,
Ltd.
Asia Polymer
Corporation

APC (BVI) Holding Co.,
Ltd.

Union Polymer Int’l
Investment Corp.

China General Terminal
& Distribution Co.
USIFE Investment Co.,
Ltd.
Taita Chemical
Company, Ltd.
 ACME Electronics
(Cayman) Corp.

Golden Amber Enterprises
Limited

ACME Electronics (BVI)
Corp.

Acme Electronics
(Kunshan) Co., Ltd.

ACME Components
(Malaysia) Sdn.Bhd.

Acme Electronics
(Guang-Zhou) Co., Ltd.

Asia Polymer Corporation
(“APC”)

APC (BVI) Holding Co.,
Ltd. (“APC (BVI)”)

USI International Corp.

APC Investment
Corporation

USI Trading（Shanghai）Co.,
Ltd.

Taita Chemical Company,
Ltd. (“TTC”)

TAITA (BVI) Holding Co,
Ltd.（TAITA (BVI)）
 Reinvestment business





Reinvestment business

Reinvestment business

Manufacture and marketing of
manganese-zinc soft ferrite
core

Reinvestment business

Manufacture and marketing of
manganese-zinc soft ferrite
core

Production and marketing of
low-density
polyethylene,
medium-density
polyethylene, ethylene vinyl
acetate and importing and
marketing
of
linear
low-density
polyethylene
and
high-density
polyethylene



Reinvestment business

Reinvestment business



Investment business

Management
of
chemical
products, equipment and
plastic products and whole
sale of electronic materials,
commission agency services
and
related
supporting
import and export services

Production and marketing of
polystyrene,
acrylonitrile,
butadiene, ABS resin, SAN
resin, glass wool insulation
products and plastic materials



Reinvestment business





















51.3%
16.6%
11.2%
5.4%
84.5%
100.0%
100.0%
100.0%
100.0%
100.0%
36.1%

0.9%

0.3%
-
37.3%

100.0%
70.0%
30.0%
100.0%
100.0%
100.0%
36.8%

0.6%
0.4%
37.8%
100.0%


4.



11. and
12.
11.



12.

(Continued)

  • 31 -
Investor Investee Name of Activities Proportion of Ownership (%) Proportion of Ownership (%) Proportion of Ownership (%) Remark
June 30,
2020
100.0%

100.0%

25.0%
8.1%
2.0%
0.5%
0.1%

35.7%

87.2%

100.0%

100.0%

-

100.0%

100.0%

100.0%

33.3%
33.3%
33.4%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

1.0%
99.0%

100.0%
 December
31,2019
100.0%

100.0%

25.0%

8.1%

2.0%

0.5%
0.1%

35.7%

87.2%

100.0%

100.0%

-

100.0%

100.0%

100.0%

33.3%
33.3%
33.4%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%


1.0%
99.0%

100.0%
 June 30,
2019
TAITA (BVI) Holding
Co, Ltd.


Union Polymer Int’l
Investment Corp.

Asia Polymer
Corporation
Taita Chemical
Company, Ltd.
China General Terminal
& Distribution Co.
USIFE Investment Co.,
Ltd.
China General Plastics
Corporation





CGPC (BVI) Holding
Co., Ltd.


China General Plastics
Corporation

Taita Chemical
Company, Ltd.
Asia Polymer
Corporation
USIFE Investment Co.,
Ltd.

ACME Components
(Malaysia) Sdn.Bhd.

Chong Loong Trading
Co., Ltd.

Swanson Plastics Corp.



Swanson Plastics Corp.
Swanson Plastics
Company Ltd.
(Singapore)		 Taita Chemical (Zhong
Shan) Co., Ltd. (“TAITA
(ZS)”)

Taita Chemical (Tianjin)
Co., Ltd. (“TAITA (TJ)”)

China General Plastics
Corporation (“CGPC”)

Taiwan VCM Corporation
(“TVCM”)

CGPC (BVI) Holding Co.,
Ltd.

CGPC America Corporation
Krystal Star International
Corporation

CGPC Polymer Corporation
(“CGPCP”)

CGPC (Chung Shan) Co.,
Ltd. (“CGPC (CS)”)

Chung Shan CGPC Polymer
Co., Ltd. (“Chung Shan
(GPCP)”)

China General Terminal &
Distribution Co.

Taiwan United Venture
Management Corp.
(“TUVM”)

ACME Ferrite Products
Sdn.Bhd（ACME Ferrite）

Forum Pacific Trading Ltd.
Curtana Company Ltd.

Forever Young Company
Ltd.

Swanson Plastics Company
Ltd. (Singapore)

Swanson International Ltd.
PT. Swanson Plastics
Indonesia Ltd.
 Production and marketing of
polystyrene derivatives

Production and marketing of
polystyrene derivatives

Production and marketing of
plastic cloths, plastic skins,
plastic tubes, plastic pellets,
plastic powder and other
related products



Manufacture and marketing of
vinyl chloride monomer and
related
petrochemical
products

Reinvestment business

Marketing of PVC two- or
three-time
processed
products

Marketing of PVC two- or
three-time
processed
products

Manufacture and marketing of
PVC powder

Manufacture and marketing of
PVC
plastic
cloths
and
three-time
processed
products

Manufacture and marketing of
PVC
plastic
cloths
and
three-time
processed
products

Warehousing
petrochemical
raw materials




Business
management
consulting

Manufacture and marketing of
soft ferrite core

Engaging in import and export
trade

Reinvestment business

Import and export agency
services

Production and marketing of
plastic products

Engaging in import and export
trade

Production and marketing of
plastic products























100.0%
100.0%
25.0%

8.1%

2.0%

0.5%
0.1%
35.7%
87.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
33.3%
33.3%
33.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1.0%
99.0%
100.0%		 5.




12.
6.
7.
7.


8.

(Continued)

  • 32 -
Investor Investee Name of Activities Proportion of Ownership (%) Proportion of Ownership (%) Proportion of Ownership (%) Remark
June 30,
2020
70.0%
15.0%
15.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

60.2%
39.8%

100.0%

71.0%

85.3%
 December
31,2019
70.0%
15.0%
15.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

63.1%
36.9%

100.0%

80.0%

89.9%
 June 30,
2019
Swanson Plastics Corp.
APC Investment
Corporation
USIFE Investment Co.,
Ltd.
Swanson Plastics
Company Ltd.
(Singapore)



Swanson International
Ltd.


A.S. Holdings (UK)
Limited

The Company

Asia Polymer
Corporation

Ever Conquest Global
Limited

Ever Victory Global
Limited
 Swanson Technologies
Corporation

Swanson Plastics (Malaysia)
Sdn.Bhd.

Swanson Plastics (India)
Private Limited

Swanson Plastics (Tianjin)
Co., Ltd.

A.S. Holdings (UK) Limited
Swanson Plastics (Kunshan)
Corp.

API-Swanson (Kunshan)
Co., Ltd.

Ever Conquest Global
Limited

(“ECGL”)
Ever Victory Global Limited
(“EVGL”)

Dynamic Ever Investments
Limited (“DEIL”)
 Production,
marketing
and
development
of
EVA
packaging film and other
value
added
plastic
products




Production and marketing of
plastic products

Production and marketing of
plastic products

Production,
marketing
and
development
of
multi-functional film and
light-solution film

Reinvestment

Production,
marketing
and
development
of
multi-functional film and
light-solution film

Management of PE release
film
and
other
release
products’ production and
sales

Investment business



Investment business

Investment business













70.0%
15.0%
15.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
63.1%
36.9%
100.0%
78.9%
94.0%


9.
9.、10.
and 12.
9. and
10.

  1. In June 2020, the Company acquired 1.2% of shares from the external shareholders of INOMA, acquired price being $349 thousand. After the equity purchase, the proportion of INOMA’s equity held by the Group increased from 93.2% to 94.4%. As these transactions did not change the Group’s control over these subsidiaries, they are deemed as equity transactions. Differences generated from the aforementioned equity transactions were adjusted to a decrease in retained earnings of $65 thousand.

  2. TMC has had no actual production or sales activities in recent years. Therefore, on April 12, 2019, the board of directors of TMC had approved the proposal for dissolution and liquidation of the company starting from the dissolution date of May 25, 2019. The Group has obtained $12,214 thousand of the remaining property distribution from

  3. 33 -

liquidation in May 2020, and TMC has completed the dissolution and liquidation procedures on July 22, 2020.

  1. Based on its medium- and long-term investment strategy, USIIC acquired 4.1% of the shares of SPC’s external shareholders in May 2020 for a price of $77,149 thousand.

  2. In June 2020, ACME obtained the remaining assets of $267 thousand returned by its subsidiary ACME Electronics (BVI)Corp., which completed its process of liquidation in June 2020.

  3. As TTC assessed that there is shrinking demand in the local market for expanded polystyrene (EPS), which is the main product produced by its subsidiary Taita Chemical (Tianjin) Co., Ltd. (“TTC (Tianjin)”), TTC’s management decided to suspend production from TTC (Tianjin) starting April 2019. Please refer to Note 15 for the details.

  4. In July 2019, CGPC obtained the remaining assets of $78,556 thousand returned by its subsidiary Krystal Star International Corporation, which completed its process of liquidation in December 2019.

  5. CGPC disposed of CGPC (CS) and CGPCP as approved in the meeting of the board of directors in October 2011. CGPC (CS) and CGPCP had not completed the process of liquidation as of June 30, 2020.

  6. In September 2019, the management of Forum Pacific Trading Ltd. approved its dissolution and liquidation, and returned the remaining assets of $6,828 thousand in April 2020. Forum Pacific Trading Ltd. had not completed the process of liquidation as of June 30, 2020.

  7. As of June 30, 2020, the Company and APC invested capi tal amounted to US$246,670 thousand (around NT$7,645,981 thousand) and US$162,992 thousand (around NT$5,042,230

  8. 34 -

thousand) in ECGL, respectively, and reinvested in EVGL via ECGL as well as in DEIL. The total ownership percentage of the Group in EVGL is 71.0%. For more detailed explanation, please refer to 10. and Note 38.

  1. ECGL subscribed for additional new shares of EVGL at a percentage different from its existing ownership percentage in May and August 2019, and reinvested in DEIL through EVGL at a percentage different from its existing ownership percentage in June and August 2019. After the capital increases, the Group’s ownership percentage in EVGL increased from 77.5% to 80.0%, while EVGL’s ownership percentage in DEIL decreased from 100% to 89.9%. As these transactions did not change the Group’s control over these subsidiaries, they are deemed as equity transactions. Differences generated from the aforementioned equity transactions were adjusted to increases in capital surplus of $4,275 thousand and decreases in retained earnings of $1,191 thousand.

ECGL subscribed for additional new shares of EVGL at a percentage different from its existing ownership percentage in March 2020, and reinvested in DEIL through EVGL at a percentage different from its existing ownership percentage in April 2020. After the capital increases, the Group’s ownership percentage in EVGL decreased from 80.0% to 71.0%, and EVGL’s ownership percentage in DEIL decreased from 89.9% to 85.3%. As these transactions did not change the Group’s control over these subsidiaries, they are deemed as equity transactions. Differences generated from the aforementioned equity transactions were adjusted to increases in capital surplus of $59,222 thousand.

  1. In order to sell the products by Gulei, the Company and APC resolved on August 13, 2020 and August 12, 2020, respectively, to establish a joint venture sales company in Fujian Province, China, with a planned capital of RMB 300,000 thousand (approximately US$46,000 thousand). The

  2. 35 -

funds are expected to be US$32,200 thousand and US$13,800 thousand, respectively invested by Swanlake and APC (BVI). 12. This is a subsidiary with material non-controlling interests.

For the six months ended June 30, 2020, expect for the financial statements of significant subsidiaries such as CGPC, TTC, UPIIC, ECGL, EVGL, DEIL and partial non-significant subsidiaries such as ACME, ACME (Cayman), TVCM, CGPCP, APC, TAITA (ZS) and TAITA (TJ), the subsidiaries’ financial statements were not reviewed by the auditors.

For the six months ended June 30, 2019, expect for the financial statements of significant subsidiaries such as CGPC, TTC and UPIIC and partial non-significant subsidiaries such as ACME, ACME (Cayman), TVCM, CGPCP, APC, TAITA (ZS) and TAITA (TJ), the subsidiaries’ financial statements were not reviewed by the auditors.

b. Details of subsidiaries that have material non-controlling interests

interests
Name of Subsidiary
CGPC
TTC
ACME
APC
EVGL		 Proportion of Ownership and Voting Rights Held
byNon-controllingInterests
June 30,2020
64.3%
62.2%
55.4%
62.7%
29.0%
December 31,
2019

64.3%
62.2%
55.4%
62.7%
20.0%		 June 30,2019
64.3%
62.2%
55.4%
62.7%
21.1%

Please refer to Table 7 and 8 for the information on places of incorporation and principal places of business.

Name of
Subsidiary		 Profit (Loss) Allocated to
Non-controllingInterests		 Profit (Loss) Allocated to
Non-controllingInterests		 Profit (Loss) Allocated to
Non-controllingInterests		 Accumulated Non-controllingInterests Accumulated Non-controllingInterests Accumulated Non-controllingInterests Accumulated Non-controllingInterests Accumulated Non-controllingInterests Accumulated Non-controllingInterests
F or the Three
Months
Ended June
30,2020		 F or the Three
Months
Ended June
30,2019		 For the Six
Months
Ended June
30,2020		 For the Six
Months
Ended June
30,2019		 June 30,2020
December 31,
2019		 June 30,2019
CGPC

TTC

ACME

APC

EVGL
 (



(		 $ 36,311)

$ 206,495

$ 19,470

$ 149,664

$ 6,188)

(

 $ 32,562

$ 69,891

$ 986)

$ 138,220

$ 5,217



(		 $ 168,221

$ 298,161

$ 16,742

$ 248,703

$ 16,505)

(

 $ 153,695

$ 193,521

$ 20,760)

$ 230,701

$ 8,040



$ 5,297,448

$ 2,864,686

$ 690,910

$ 6,255,262

$ 4,817,082



$ 5,275,245

$ 2,683,447

$ 694,961

$ 6,488,546

$ 2,885,402



$ 5,014,725
$ 2,646,512
$ 763,168
$ 6,274,551
$ 2,775,820
  • 36 -

The summarized financial information in respect of each of the Group’s subsidiaries below represents amounts before intragroup eliminations:

CGPC and CGPC’ s subsidiaries

CGPC and CGPC’s subsidiaries CGPC and CGPC’s subsidiaries CGPC and CGPC’s subsidiaries
June 30,2020
December 31,
2019
June 30,2019
Current assets
$ 4,844,812
$ 4,876,866
$ 5,997,960
Non-current assets
7,638,170
7,454,367
7,135,564
Current liabilities
( 1,864,014 ) ( 1,695,099 ) ( 2,695,756 )
Non-current liabilities
(1,890,074)
(1,923,568)
(2,164,717)
Equity
$ 8,728,894
$ 8,712,566
$ 8,273,051
Equity attributable to:
Owners of CGPC
$ 2,961,422
$ 2,975,567
$ 2,847,417
Non-controlling
interests of CGPC 5,297,448
5,275,245
5,014,725
Non-controlling
interests of
CGPC’s
subsidiaries

470,024

461,754

410,909
$ 8,728,894
$ 8,712,566
$ 8,273,051
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 2,287,056
$ 4,354,571
$ 5,878,270
$ 7,582,278
Net (loss) profit from
continuing
operations
( $ 65,436 ) $ 44,440
$ 282,549
$ 234,299
Net profit from
discontinued
operations

737

3,288

1,456

4,397
(Loss) profit for the
period
(
64,699 )
47,728
284,005
238,696
Other comprehensive
income for the
period

18,691

13,641

15,775

18,615
Total comprehensive
(loss) income for
the period
($ 46,008)
$ 61,369
$ 299,780
$ 257,311
(Loss) Profit
attributable to:
Owners of CGPC ( $ 18,915 ) $ 16,963
$ 87,630
$ 80,064		 June 30,2019
$ 5,997,960
7,135,564
2,695,756 )
2,164,717)
$ 8,273,051
$ 2,847,417
5,014,725
410,909
$ 8,273,051

For the Six
Month Ended
June 30,2019
$ 7,582,278
$ 234,299

4,397
238,696

18,615
$ 257,311
$ 80,064





$ 5,878,270

$ 282,549

1,456

284,005
15,775

$ 299,780

$ 87,630
 $ 7,582,278
$ 234,299
4,397
238,696
18,615
$ 257,311
$ 80,064

(Continued)

  • 37 -
For the Three
Month Ended
June 30, 2020
For the Three
Month Ended
June 30, 2019
Non-controlling
interests of
CGPC
(
36,311 )
32,562
Non-controlling
interests of
CGPC’s
subsidiaries
(
9,473)
(
1,797)

($ 64,699)
$ 47,728

Total
comprehensive
income attributable
to:
Owners of CGPC $ 16,362
$ 19,700

Non-controlling
interests of
CGPC
(
52,969 )
43,476
Non-controlling
interests of
CGPC’s
subsidiaries
(
9,401)
(
1,807)

($ 46,008)
$ 61,369

Net
cash
inflow
(outflow) from:
Operating activities

Investing activities

Financing activities
Effects of exchange
rate changes

Net cash outflow
 For
the
Six
Month Ended
June 30, 2020
168,221

28,154

$ 284,005

$ 77,223

194,360

28,197

$ 299,780

For the Six
Months Ended
June 30,2020		 For
the
Six
Month Ended
June 30, 2020
168,221

28,154

$ 284,005

$ 77,223

194,360

28,197

$ 299,780

For the Six
Months Ended
June 30,2020		 For
the
Six
Month Ended
June 30, 2019
153,695

4,937
$ 238,696
$ 89,023
163,345

4,943
$ 257,311

For the Six
Months Ended
June 30,2019
$ 445,789
(
321,536 )
(
135,441 )

2,319
($ 8,869)		 For
the
Six
Month Ended
June 30, 2019
153,695

4,937
$ 238,696
$ 89,023
163,345

4,943
$ 257,311

For the Six
Months Ended
June 30,2019
$ 445,789
(
321,536 )
(
135,441 )

2,319
($ 8,869)

(
(
(		 $ 151,544


462,490 )
263,718

5,904)

$ 53,132)
 $ 445,789

321,536 )

135,441 )
2,319
$ 8,869)

TTC and TTC’s subsidiaries

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity
 June 30,2020
$ 4,980,698

3,101,804

( 2,527,366 )
(
953,871)

$ 4,601,265
 December 31,
2019

$ 4,801,480

3,203,261

( 2,278,694 )
(1,426,284)

$ 4,299,763
 June 30,2019
$ 5,027,123
3,286,537
( 2,628,976 )
(1,449,695)
$ 4,234,989

(Continued)

  • 38 -
June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of TTC
$ 1,736,579
$ 1,616,316
$ 1,588,477
Non-controlling
interests of TTC
2,864,686
2,683,447
2,646,512
$ 4,601,265
$ 4,299,763
$ 4,234,989
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 3,566,900
$ 4,481,740
$ 6,524,985
$ 9,081,896
Profit for the period
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Other comprehensive
income (loss) for
the period

19,416
(
38,468)
(
69,064)

6,017
Total comprehensive
income for the
period
$ 345,493
$ 71,898
$ 401,763
$ 311,607
Profit attributable to:
Owners of TTC
$ 119,582
$ 40,475
$ 172,666
$ 112,069
Non-controlling
interests of TTC

206,495

69,891

298,161

193,521
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Total comprehensive
income attributable
to:
Owners of TTC
$ 140,609
$ 26,705
$ 153,774
$ 115,379
Non-controlling
interests of TTC

204,884

45,193

247,989

196,228
$ 345,493
$ 71,898
$ 401,763
$ 311,607
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Net cash inflow from:
Operating activities
$ 847,508
$ 1,401,663
Investing activities
(
102,925 )
37,182
Financing activities
(
259,383 ) (
714,529 )
Effects of exchange
rate changes
(
32,960)
(
1,519)
Net cash inflow
$ 452,240
$ 722,797		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of TTC
$ 1,736,579
$ 1,616,316
$ 1,588,477
Non-controlling
interests of TTC
2,864,686
2,683,447
2,646,512
$ 4,601,265
$ 4,299,763
$ 4,234,989
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 3,566,900
$ 4,481,740
$ 6,524,985
$ 9,081,896
Profit for the period
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Other comprehensive
income (loss) for
the period

19,416
(
38,468)
(
69,064)

6,017
Total comprehensive
income for the
period
$ 345,493
$ 71,898
$ 401,763
$ 311,607
Profit attributable to:
Owners of TTC
$ 119,582
$ 40,475
$ 172,666
$ 112,069
Non-controlling
interests of TTC

206,495

69,891

298,161

193,521
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Total comprehensive
income attributable
to:
Owners of TTC
$ 140,609
$ 26,705
$ 153,774
$ 115,379
Non-controlling
interests of TTC

204,884

45,193

247,989

196,228
$ 345,493
$ 71,898
$ 401,763
$ 311,607
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Net cash inflow from:
Operating activities
$ 847,508
$ 1,401,663
Investing activities
(
102,925 )
37,182
Financing activities
(
259,383 ) (
714,529 )
Effects of exchange
rate changes
(
32,960)
(
1,519)
Net cash inflow
$ 452,240
$ 722,797		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of TTC
$ 1,736,579
$ 1,616,316
$ 1,588,477
Non-controlling
interests of TTC
2,864,686
2,683,447
2,646,512
$ 4,601,265
$ 4,299,763
$ 4,234,989
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 3,566,900
$ 4,481,740
$ 6,524,985
$ 9,081,896
Profit for the period
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Other comprehensive
income (loss) for
the period

19,416
(
38,468)
(
69,064)

6,017
Total comprehensive
income for the
period
$ 345,493
$ 71,898
$ 401,763
$ 311,607
Profit attributable to:
Owners of TTC
$ 119,582
$ 40,475
$ 172,666
$ 112,069
Non-controlling
interests of TTC

206,495

69,891

298,161

193,521
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Total comprehensive
income attributable
to:
Owners of TTC
$ 140,609
$ 26,705
$ 153,774
$ 115,379
Non-controlling
interests of TTC

204,884

45,193

247,989

196,228
$ 345,493
$ 71,898
$ 401,763
$ 311,607
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Net cash inflow from:
Operating activities
$ 847,508
$ 1,401,663
Investing activities
(
102,925 )
37,182
Financing activities
(
259,383 ) (
714,529 )
Effects of exchange
rate changes
(
32,960)
(
1,519)
Net cash inflow
$ 452,240
$ 722,797		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of TTC
$ 1,736,579
$ 1,616,316
$ 1,588,477
Non-controlling
interests of TTC
2,864,686
2,683,447
2,646,512
$ 4,601,265
$ 4,299,763
$ 4,234,989
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 3,566,900
$ 4,481,740
$ 6,524,985
$ 9,081,896
Profit for the period
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Other comprehensive
income (loss) for
the period

19,416
(
38,468)
(
69,064)

6,017
Total comprehensive
income for the
period
$ 345,493
$ 71,898
$ 401,763
$ 311,607
Profit attributable to:
Owners of TTC
$ 119,582
$ 40,475
$ 172,666
$ 112,069
Non-controlling
interests of TTC

206,495

69,891

298,161

193,521
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Total comprehensive
income attributable
to:
Owners of TTC
$ 140,609
$ 26,705
$ 153,774
$ 115,379
Non-controlling
interests of TTC

204,884

45,193

247,989

196,228
$ 345,493
$ 71,898
$ 401,763
$ 311,607
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Net cash inflow from:
Operating activities
$ 847,508
$ 1,401,663
Investing activities
(
102,925 )
37,182
Financing activities
(
259,383 ) (
714,529 )
Effects of exchange
rate changes
(
32,960)
(
1,519)
Net cash inflow
$ 452,240
$ 722,797		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of TTC
$ 1,736,579
$ 1,616,316
$ 1,588,477
Non-controlling
interests of TTC
2,864,686
2,683,447
2,646,512
$ 4,601,265
$ 4,299,763
$ 4,234,989
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 3,566,900
$ 4,481,740
$ 6,524,985
$ 9,081,896
Profit for the period
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Other comprehensive
income (loss) for
the period

19,416
(
38,468)
(
69,064)

6,017
Total comprehensive
income for the
period
$ 345,493
$ 71,898
$ 401,763
$ 311,607
Profit attributable to:
Owners of TTC
$ 119,582
$ 40,475
$ 172,666
$ 112,069
Non-controlling
interests of TTC

206,495

69,891

298,161

193,521
$ 326,077
$ 110,366
$ 470,827
$ 305,590
Total comprehensive
income attributable
to:
Owners of TTC
$ 140,609
$ 26,705
$ 153,774
$ 115,379
Non-controlling
interests of TTC

204,884

45,193

247,989

196,228
$ 345,493
$ 71,898
$ 401,763
$ 311,607
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Net cash inflow from:
Operating activities
$ 847,508
$ 1,401,663
Investing activities
(
102,925 )
37,182
Financing activities
(
259,383 ) (
714,529 )
Effects of exchange
rate changes
(
32,960)
(
1,519)
Net cash inflow
$ 452,240
$ 722,797
$ 6,524,985

$ 470,827

(
69,064)

$ 401,763

$ 172,666


298,161

$ 470,827

$ 153,774


247,989

$ 401,763

For the Six
Months Ended
June 30,2020		 $ 9,081,896
$ 305,590

6,017
$ 311,607
$ 112,069

193,521
$ 305,590
$ 115,379

196,228
$ 311,607

For the Six
Months Ended
June 30,2019

(
(
(
 $ 847,508


102,925 )

259,383 )
32,960)

$ 452,240

(
(
 $ 1,401,663

37,182

714,529 )
1,519)
$ 722,797
  • 39 -

ACME and ACME’s subsidiaries

ACME and ACME’s subsidiaries ACME and ACME’s subsidiaries ACME and ACME’s subsidiaries
June 30,2020
December 31,
2019
June 30,2019
Current assets
$ 1,853,191
$ 1,780,507
$ 1,800,350
Non-current assets
1,659,454
1,753,574
1,795,112
Current liabilities
( 1,124,802 ) ( 1,085,862 ) ( 1,050,937 )
Non-current liabilities
(
590,486)
(
612,610)
(
548,637)
Equity
$ 1,797,357
$ 1,835,609
$ 1,995,888
Equity attributable to:
Owners of ACME
$ 552,389
$ 557,511
$ 612,009
Non-controlling
interests of
ACME
690,910
694,961
763,168
Non-controlling
interests of
ACME’s
subsidiaries

554,058

583,137

620,711
$ 1,797,357
$ 1,835,609
$ 1,995,888
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Revenue
$ 549,224
$ 515,854
$ 1,062,259
$ 1,035,942
Profit (Loss) for the
period
$ 36,100 ( $ 853 ) $ 27,372 ( $ 48,801 )
Other comprehensive
(loss) income for
the period
(
29,420)
(
24,055)
(
65,471)

20,279
Total comprehensive
income (loss) for
the period
$ 6,680
($ 24,908)
($ 38,099)
($ 28,522)
Profit (Loss)
attributable to:
Owners of ACME $ 15,544
( $ 789 ) $ 13,366
( $ 16,664 )
Non-controlling
interests of
ACME
19,470
(
986 )
16,742
(
20,760 )
Non-controlling
interests of
ACME’s
subsidiaries

1,086

922
(
2,736)
(
11,377)
$ 36,100
($ 853)
$ 27,372
($ 48,801)		 June 30,2019
$ 1,800,350
1,795,112
1,050,937 )

548,637)
$ 1,995,888
$ 612,009
763,168
620,711
$ 1,995,888

For the Six
Month Ended
June 30,2019
$ 1,035,942
( $ 48,801 )

20,279
($ 28,522)
( $ 16,664 )
(
20,760 )
(
11,377)
($ 48,801)


(
(


(
 $ 1,062,259

$ 27,372
65,471)

$ 38,099)

$ 13,366


16,742

2,736)

$ 27,372
 $ 1,035,942
$ 48,801 )
20,279
$ 28,522)
$ 16,664 )

20,760 )
11,377)
$ 48,801)

(Continued)

  • 40 -
For the Three
Month Ended
June 30, 2020
For the Three
Month Ended
June 30, 2019
Total comprehensive
income (loss)
attributable to:
Owners of ACME $ 6,709 ( $ 7,824 )
Non-controlling
interests of
ACME
8,211 (
9,782 )
Non-controlling
interests of
ACME’s
subsidiaries
(
8,240)
(
7,302)

$ 6,680
($ 24,908)

Net cash inflow
(outflow) from:
Operating activities

Investing activities
Financing activities
Effects of exchange
rate changes

Net cash inflow
 For
the
Six
Month Ended
June 30, 2020
( $ 3,919 )
(
5,101 )
(
29,079)

($ 38,099)

For the Six
Months Ended
June 30,2020
$ 65,396

12,364
49,420
(
49,206)

$ 77,974
 For
the
Six
Month Ended
June 30, 2019
( $ 10,988 )
(
13,705 )
(
3,829)
($ 28,522)

For the Six
Months Ended
June 30,2019		 For
the
Six
Month Ended
June 30, 2019
( $ 10,988 )
(
13,705 )
(
3,829)
($ 28,522)

For the Six
Months Ended
June 30,2019

(
(

 $ 145,352

123,840 )
51,606
9,337
$ 82,455

APC and APC’s subsidiaries

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity

Equity attributable to:
Owners of APC

Non-controlling
interests of APC
 June 30,2020
$ 2,978,369
12,253,249
(
1,923,374 )
(
3,312,075)

$ 9,996,169

$ 3,740,907

6,255,262

$ 9,996,169
 December 31,
2019

$ 4,940,438
11,982,653
(
2,469,828 )
(
4,223,443)

$ 10,229,820

$ 3,741,274

6,488,546

$ 10,229,820
 June 30,2019
$ 5,107,615
11,489,099
(
2,839,765 )
(
3,938,454)
$ 9,818,495
$ 3,543,944

6,274,551
$ 9,818,495
  • 41 -
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
Revenue
$ 1,358,049
$ 1,685,601
$ 2,672,062
Profit for the period
$ 221,225
$ 204,309
$ 367,620
Other comprehensive
income (loss) for
the period

323,378
(
93,823)
(
281,214)
Total comprehensive
income for the
period
$ 544,603
$ 110,486
$ 86,406
Profit attributable to:
Owners of APC
$ 71,561
$ 66,089
$ 118,917
Non-controlling
interests of APC

149,664

138,220

248,703
$ 221,225
$ 204,309
$ 367,620
Total comprehensive
income (loss)
attributable to:
Owners of APC
$ 294,966
$ 18,988
$ 99,068
Non-controlling
interests of APC

249,637

91,498
(
12,662)
$ 544,603
$ 110,486
$ 86,406
For the Six
Months Ended
June 30,2020
Net cash inflow
(outflow) from:
Operating activities
$ 2,092,720
Investing activities
(
1,077,661 )
Financing activities
(
1,602,677 )
Effects of exchange
rate changes
(
5,053)
Net cash (outflow)
inflow
($ 529,671)
EVGL and EVGL’s subsidiaries
June 30,2020
December 31,
2019

Current assets
$ 1,328,937 $ 1,194,368
Non-current assets
18,177,731 14,867,168
Current liabilities
(
11,119)
(
14,346)
(
Equity
$ 19,495,549
$ 16,047,190
 For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
Revenue
$ 1,358,049
$ 1,685,601
$ 2,672,062
Profit for the period
$ 221,225
$ 204,309
$ 367,620
Other comprehensive
income (loss) for
the period

323,378
(
93,823)
(
281,214)
Total comprehensive
income for the
period
$ 544,603
$ 110,486
$ 86,406
Profit attributable to:
Owners of APC
$ 71,561
$ 66,089
$ 118,917
Non-controlling
interests of APC

149,664

138,220

248,703
$ 221,225
$ 204,309
$ 367,620
Total comprehensive
income (loss)
attributable to:
Owners of APC
$ 294,966
$ 18,988
$ 99,068
Non-controlling
interests of APC

249,637

91,498
(
12,662)
$ 544,603
$ 110,486
$ 86,406
For the Six
Months Ended
June 30,2020
Net cash inflow
(outflow) from:
Operating activities
$ 2,092,720
Investing activities
(
1,077,661 )
Financing activities
(
1,602,677 )
Effects of exchange
rate changes
(
5,053)
Net cash (outflow)
inflow
($ 529,671)
EVGL and EVGL’s subsidiaries
June 30,2020
December 31,
2019

Current assets
$ 1,328,937 $ 1,194,368
Non-current assets
18,177,731 14,867,168
Current liabilities
(
11,119)
(
14,346)
(
Equity
$ 19,495,549
$ 16,047,190
 For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
Revenue
$ 1,358,049
$ 1,685,601
$ 2,672,062
Profit for the period
$ 221,225
$ 204,309
$ 367,620
Other comprehensive
income (loss) for
the period

323,378
(
93,823)
(
281,214)
Total comprehensive
income for the
period
$ 544,603
$ 110,486
$ 86,406
Profit attributable to:
Owners of APC
$ 71,561
$ 66,089
$ 118,917
Non-controlling
interests of APC

149,664

138,220

248,703
$ 221,225
$ 204,309
$ 367,620
Total comprehensive
income (loss)
attributable to:
Owners of APC
$ 294,966
$ 18,988
$ 99,068
Non-controlling
interests of APC

249,637

91,498
(
12,662)
$ 544,603
$ 110,486
$ 86,406
For the Six
Months Ended
June 30,2020
Net cash inflow
(outflow) from:
Operating activities
$ 2,092,720
Investing activities
(
1,077,661 )
Financing activities
(
1,602,677 )
Effects of exchange
rate changes
(
5,053)
Net cash (outflow)
inflow
($ 529,671)
EVGL and EVGL’s subsidiaries
June 30,2020
December 31,
2019

Current assets
$ 1,328,937 $ 1,194,368
Non-current assets
18,177,731 14,867,168
Current liabilities
(
11,119)
(
14,346)
(
Equity
$ 19,495,549
$ 16,047,190
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
$ 3,395,312
$ 341,010

41,798
$ 382,808
$ 110,309

230,701
$ 341,010
$ 132,851

249,957
$ 382,808


For the Six
Months Ended
June 30,2019
( $ 393,051 )
(
612,399 )

647,523

2,384
($ 355,543)
June 30,2019
For the Six
Month Ended
June 30,2019
$ 2,672,062
$ 367,620
(
281,214)
$ 86,406
$ 118,917

248,703
$ 367,620
$ 99,068
(
12,662)
$ 86,406
For the Six
Months Ended
June 30,2020		 $ 3,395,312
$ 341,010

41,798
$ 382,808
$ 110,309

230,701
$ 341,010
$ 132,851

249,957
$ 382,808

For the Six
Months Ended
June 30,2019
Current assets
Non-current assets
Current liabilities
Equity




(

(
 $ 971,284
13,061,796

10,244)
$ 14,022,836

(Continued)

  • 42 -
June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528		 June 30, 2020
December 31,
2019
June 30, 2019
Equity attributable to:
Owners of EVGL
$ 11,818,248 $ 11,547,692 $ 10,399,540
Non-controlling
interests of EVGL
4,817,082
2,885,402
2,775,820
Non-controlling
interests of
EVGL’s
subsidiaries

2,860,219

1,614,096

847,476
$ 19,495,549
$ 16,047,190
$ 14,022,836
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
(Loss) profit for the
year
( $ 25,008 ) $ 27,170
( $ 82,288 ) $ 39,704
Other comprehensive
(loss) income for
the year
(
375,442)
(
174,800)
(
475,638)

62,824
Total comprehensive
(loss) income for
the year
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528
(Loss) profit
attributable to:
Owners of EVGL ( $ 15,181 ) $ 19,947
( $ 56,470 ) $ 29,658
Non-controlling
interests of
EVGL
(
6,188 )
5,217
(
16,505 )
8,040
Non-controlling
interests of
EVGL’s
subsidiaries
(
3,639)

2,006
(
9,313)

2,006
($ 25,008)
$ 27,170
($ 82,288)
$ 39,704
Total comprehensive
(loss) income
attributable to:
Owners of EVGL ( $ 245,597 ) ( $ 110,333 ) ( $ 359,473 ) $ 83,474
Non-controlling
interests of
EVGL
(
100,419 ) (
30,481 ) (
128,408 )
25,870
Non-controlling
interests of
EVGL’s
subsidiaries
(
54,434)
(
6,816)
(
70,045)
(
6,816)
($ 400,450)
($ 147,630)
($ 557,926)
$ 102,528











(
(
(
(
(
(
(
(
(
(
(		 $ 82,288 )
475,638)
$ 557,926)
$ 56,470 )

16,505 )
9,313)
$ 82,288)
$ 359,473 )

128,408 )
70,045)
$ 557,926)








(
 $ 39,704
62,824
$ 102,528
$ 29,658

8,040
2,006
$ 39,704
$ 83,474

25,870
6,816)
$ 102,528
  • 43 -
Net cash inflow
(outflow) from:
Operating activities

Investing activities

Financing activities
Effects of exchange
rate changes

Net cash inflow
 For the Six
Months Ended
June 30,2020
( $ 12,319 )
(
3,811,781 )
4,006,285
(
44,215)

$ 137,970
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019
(
(
(
(
(
 $ 16,993

2,612,256 )
2,871,587
26,660)
$ 249,664

Please refer to Notes 19 and 36 for the information related to

part of subsidiaries’ shares pledged as collateral for long -term

bank borrowings.

  1. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Investments in joint ventures
Associates that are
individually material
Fujian Gulei
Petrochemical Co.,
Ltd. (“Gulei”)		 June 30,2020

$ 18,177,731
 December 31,
2019
$ 14,867,168
 June 30,2019
$ 13,061,796

Investments in joint venture are accounted for using the equity method.

The percentage of the Group’s ownership and voting rights was 50% of the outstanding shares of Gulei as of June 30, 2020, December 31, 2019 and June 30, 2019. For more explanation, please refer to Note 38.

For the scope of business operations, the location and national information of Gulei’s registry of joint venture, please refer to Table 8.

The summary of financial information below represents amounts shown in the joint venture’s financial statements prepared in accordance with IFRSs adjusted by the Group for equity accounting purposes.

accounting purposes.
Cash
 June 30,2020

$ 5,720,657
 December 31,
2019
$ 2,078,359
 June 30,2019
$ 10,347,288
  • 44 -
June 30,2020
December 31,
2019
June 30,2019
Current assets
$ 5,938,657 $ 2,102,915 $ 10,578,213
Non-current assets
60,397,329 40,551,677 22,041,504
Current liabilities
( 14,927,778 ) (
8,164,871 ) (
6,467,161 )
Non-current liabilities
(15,052,747)
(
4,755,385)
(
28,964)
Equity
36,355,461 29,734,336 26,123,592
Proportion of the Group’s
ownership

50%

50%

50%
Equity attributable to the
Group
$ 18,177,731
$ 14,867,168
$ 13,061,796
Carrying amount
$ 18,177,731
$ 14,867,168
$ 13,061,796
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Shares attributable to the
Group
Net (loss) profit of the
period
($ 26,675)
$ 4,320
($ 69,795)
$ 21,170		 June 30,2020
December 31,
2019
June 30,2019
Current assets
$ 5,938,657 $ 2,102,915 $ 10,578,213
Non-current assets
60,397,329 40,551,677 22,041,504
Current liabilities
( 14,927,778 ) (
8,164,871 ) (
6,467,161 )
Non-current liabilities
(15,052,747)
(
4,755,385)
(
28,964)
Equity
36,355,461 29,734,336 26,123,592
Proportion of the Group’s
ownership

50%

50%

50%
Equity attributable to the
Group
$ 18,177,731
$ 14,867,168
$ 13,061,796
Carrying amount
$ 18,177,731
$ 14,867,168
$ 13,061,796
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Shares attributable to the
Group
Net (loss) profit of the
period
($ 26,675)
$ 4,320
($ 69,795)
$ 21,170		 June 30,2020
December 31,
2019
June 30,2019
Current assets
$ 5,938,657 $ 2,102,915 $ 10,578,213
Non-current assets
60,397,329 40,551,677 22,041,504
Current liabilities
( 14,927,778 ) (
8,164,871 ) (
6,467,161 )
Non-current liabilities
(15,052,747)
(
4,755,385)
(
28,964)
Equity
36,355,461 29,734,336 26,123,592
Proportion of the Group’s
ownership

50%

50%

50%
Equity attributable to the
Group
$ 18,177,731
$ 14,867,168
$ 13,061,796
Carrying amount
$ 18,177,731
$ 14,867,168
$ 13,061,796
For the Three
Month Ended
June 30,2020
For the Three
Month Ended
June 30,2019
For the Six
Month Ended
June 30,2020
For the Six
Month Ended
June 30,2019
Shares attributable to the
Group
Net (loss) profit of the
period
($ 26,675)
$ 4,320
($ 69,795)
$ 21,170		 June 30,2019 June 30,2019 June 30,2019 June 30,2019


( $ 69,795) $ 21,170

Gulei had no significant operating income for the six months ended June 30, 2020 and 2019.

For the six months ended June 30, 2020 and 2019, investments in joint ventures accounted for using the equity method and the Group’s share of profit and other comprehensive income were not reviewed by the auditors.

15. PROPERTY, PLANT AND EQUIPMENT

Freehold land

Land improvements
Building improvements
Machinery and equipment
Transportation equipment
Other equipment
Construction in progress
and equipment under
installation
 June 30,2020

$ 4,682,237
7,475
4,107,003
11,898,121

47,301
277,909
2,058,203
$ 23,078,249
 December 31,
2019
$ 4,682,238

8,232

4,282,923
12,418,786

46,865

300,065

1,489,802

$ 23,228,911
 June 30,2019


















$ 4,706,320

9,046

4,055,942
10,976,395

52,439

307,849
3,359,768
$ 23,467,759
  • 45 -

On March 21, 2013 the board of directors of the Company decided to invest $1,000,000 thousand for the construction of a CBC production plant. On September 23, 2014, the board of directors of the Company decided to construct a front-end material production plant and utility system, costing $1,000,000 thousand. In addition, the amount of investment to adjust the plant configuration was increased by $700,000 thousand after discussion by the board of directors of the Company in its meeting on August 11, 2016, and the total cost was $2,700,000 thousand. The project was completed in 2019, and total fees and charge were $2,331,883 thousand. In June 2014, the Company received subsidies amounting to $160,000 thousand from the Industrial Development Bureau, and as of December 31, 2019, the Company had received $158,841 thousand. According to the schedule and acceptance situation, the subsidy income had accumulated to $158,841 thousand.

According to Rule No. 1072133080 issued by the Land Administration Department of the New Taipei City Government on November 7, 2018, the Company’s land and buildings in Linkou which were recognized under property, plant and equipment are within the scope of the “Linkou City Land Rezoning Area”. Part of the land will be reclaimed, and a portion of this reclaimed land is expected to be returned in 2022. Based on the area’s land reclamation regulations, when the Company reclaims the land, it does not have the obligation to dismantle the existing buildings on the land, nor does it have the obligation to set up factories in the area after reclamation is complete; its only obligation is to vacate the existing buildings. The Company is also not required to repay or satisfy any other obligations with respect to the compensation fees obtained from moving out of the various existing buildings, incentives for automatic relocation and compensation for operating losses after the buildings on the reclaimed land have been handed

  • 46 -

over. The related compensation and incentive fees which the Company received as a result of the aforementioned land reclamation case amounted to $154,764 thousand and $38,230 thousand in the months of April 2019 and July 2019, respectively, for a combined total of $192,994 thousand. The Company had completed its obligation to move out from the existing buildings and land and completed the related handover procedures with the New Taipei City Government. As there are no repayment obligations or other obligations to be satisfied, other than recognizing the various compensation fees as adjustments to the costs of the original land and buildings, related compensation fee revenue of $155,710 thousand was recognized.

In cooperation with the Taiwan International Ports Corporation (Ports Co.), Ministry of Transportation and Communications, to relocate the petrochemical oil storage tank facilities of the old port area operators, CGTD leased the port facilities and storage areas of the Kaohsiung Port Intercontinental Container Center Second Phase Petrochemical Oil Storage and Transportation Center from Ports Co., the lease period being from August 1, 2017 to July 31, 2042, rent paid quarterly. In addition, the boards of directors of the Company, CGTD, APC and TVCM, a subsidiary of CGPC, resolved in 2019 to build the second phase of the Intercontinental Petrochemical Oil Products Center, and signed a turnkey project agreement with CTCI on October 7, 2019, with a total investment price of $3,380,107 thousand. As of June 30, 2020, the Group had paid $838,582 thousand for the project, which was accounted for under construction in progress.

For the six months ended June 30, 2020, ACME (GZ) assessed that some of its machinery and equipment had been idle and did not meet the production requirements, recognizing an impairment loss of $5,823 thousand; for the six months ended June 30, 2020, USIO

  • 47 -

assessed that the book value of some of its machinery and equipment could not be recovered, recognizing an impairment loss of $14,131 thousand. The aforementioned profit and loss have been included in the in the consolidated operating expenses comprehensive income statement.

ACME (KS) assessed that the carrying amounts of part of the machinery equipment and other equipment were unrecoverable in 2019 and recognized impairment loss of $37,939 thousand. The impairment loss was reported under operating expenses in the consolidated statements of comprehensive income.

Due to shrinking demand of EPS in the local market, the main product of Taita Chemical (Tianjin) Co., Ltd. (“TAITA (TJ)”), the management decided to suspend the production of TAITA (TJ) starting from April 2019. TAITA (TJ) determined the recoverable amounts of the property, plant and equipment (including right-of-use assets), on the basis of fair values less costs of disposal. TAITA (TJ) recognized an impairment loss of $60,265 thousand in 2019, which was reported under operating costs in the consolidated statements of comprehensive income.

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

s:
Land improvements 7-25 years
Building improvements
Factories and other machines 15-55 years
Main buildings 3-60 years
Storage rooms 8-45 years
Others 2-40 years
Machinery and equipment 2-25 years
Transportation equipment 2-15 years
Other equipment 2-25 years

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 36.

  • 48 -

For the related capitalized interest, please refer to Note 28 (d) finance cost.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Right-of-use assets
Carrying amounts
Leasehold land

Land use rights
Buildings
Machinery and
equipment
Transportation
equipment

 June 30,2020
$ 175,646

423,317
155,573
55,210

636

$ 810,382
 December 31,
2019
$ 184,708

444,306
195,662
60,697

135

$ 885,508
 June 30,2019






$ 178,100
470,027
211,364
6,574
578
$ 866,643
Addition for
right-of-use assets
Depreciation charge
for right-of-use assets
Leasehold land

Land use rights
Buildings
Machinery and
equipment
Transportation
equipment
 For the Three
Months Ended
June 30,2020
$ 3,837

4,572
6,921
1,966

125
$ 17,421
For the Three
Months Ended
June 30,2019

$ 4,041

3,896
7,860
614

221

$ 16,632
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019







$ 847
$ 7,665

9,569
13,907
3,978
346
$ 35,465


$ -
$ 8,555
7,810
15,227
1,228
442
$ 33,262

Except for the recognition of depreciation expense, the Group's right-of-use assets did not experience significant impairments for the six months ended June 30, 2020 and 2019.

The Group has been subleasing its leasehold building Tai-An under operating leases. The related right-of-use assets are presented as investment properties (as set out in Note 17). The amounts disclosed above with respect to the right-of-use assets do not include right-of-use assets that meet the definition of investment properties.

  • 49 -

Right-of-use assets pledged as collateral for bank borrowings are set out in Notes 19 and 36.

b. Lease liabilities

Lease liabilities
Carrying amounts
Current

Non-current
 June 30,2020
$ 68,291

$ 421,214
 December 31,
2019
$ 70,814

$ 481,964
 June 30,2019



$ 65,457
$ 450,652

Range of discount rate for lease liabilities was as follows:

Lease land

Buildings

Machinery

Transportation
equipment		 June 30,2020
0.83%～9.25%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%		 December 31,
2019
0.83%～9.25%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%		 June 30,2019
1.04%～2.00%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%

c. Material lease-in activities and terms

The Group leases certain factory, office and dormitory with lease terms of 1 to 6 years. The Group has options to lease office at the end of the lease terms.

d.

Other lease information

Lease arrangements under operating leases for leasing out of investment properties are set out in Note 17. For details of lease information, please refer to the following table (the Group as lessee).

  • 50 -
Expenses relating to
short-term leases
Expenses relating to
low-value asset
leases
Expenses relating to
variable lease
payments not
including in the
measurement of
lease liabilities
Total cash outflow for
leases		 For the Three
Months Ended
June 30,2020
$ 10,066

$ 405
$ 11,293
For the Three
Months Ended
June 30,2019
$ 5,568

$ 175
$ 13,494
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
$ 13,754
$ 433
$ 27,547
($ 75,940)
For the Six
Months Ended
June 30,2019
$ 13,754
$ 433
$ 27,547
($ 75,940)







(		 $ 19,908
$ 780
$ 22,050
$ 80,563)		 $ 13,754
$ 433
$ 27,547
$ 75,940)

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

17. INVESTMENT PROPERTIES

Completed investment
properties
Land

Buildings
Right-of-use assets

 June 30,2020
$ 115,053

305,329

88,036

$ 508,418
 December 31,
2019

$ 115,053

313,847

95,508

$ 524,408
 June 30,2019 June 30,2019






$ 90,971
90,742
102,980
$ 284,693
  • 51 -
Cost
Balance at January 1, 2020
Transfer to property,
plant and equipment
Effect of foreign currency
exchange differences

Balance at June 30, 2020

Accumulated depreciation
and impairment
Balance at January 1, 2020
Depreciation expenses
Transfer to property,
plant and equipment
Effect of foreign currency
exchange differences

Balance at June 30, 2020

Carrying amounts at
June 30, 2020

Cost
Balance at January 1, 2019
Adjustments on initial
application of IFRS 16
Balance at January 1, 2019
(restated)
Effect of foreign currency
exchange differences

Balance at June 30, 2019

Accumulated depreciation
and impairment
Balance at January 1, 2019
Depreciation expenses
Effect of foreign currency
exchange differences

Balance at June 30, 2019

Carrying amounts at
June 30, 2019
 Land
$ 119,022

-

-

$ 119,022

$ 3,969

-
-

-

$ 3,969

$ 115,053

$ 94,940

-

94,940
-

$ 94,940

$ 3,969

-
-

$ 3,969

$ 90,971
 Buildings
$ 428,521


1,752 )
1,074)

$ 425,695

$ 114,674

6,823

717 )
414)

$ 120,366

$ 305,329

$ 173,492

-

173,492
1,058

$ 174,550

$ 82,039

1,387
382

$ 83,808

$ 90,742
 Right-of-use
assets
$ 110,452


-

-

$ 110,452

$ 14,944

7,472

-

-

$ 22,416

$ 88,036

$ -

110,452

110,452
-

$ 110,452

$ -

7,472
-

$ 7,472

$ 102,980
 Total















(
(


(
(
















(
(


(
(









 $ 657,995

1,752 )
1,074)
$ 655,169
$ 133,587
14,295

717 )
414)
$ 146,751
$ 508,418
$ 268,432
110,452
378,884
1,058
$ 379,942
$ 86,008
8,859
382
$ 95,249
$ 284,693

Right-of-use assets included in investment properties are units of office space located in Taipei and subleased under operating leases to other companies. The investment properties were leased out for 1 to 8 years, with an option to extend. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend.

  • 52 -

Except for the recognition of depreciation expense, there were no significant increases, disposals and impairment of the Group’s investment properties for the six months ended June 30, 2020 and 2019.

The above items of investment properties are depreci ated on a straight-line basis over their estimated useful lives as follows:

Buildings 3-55 years Right-of-use assets 3-12 years

Part of the Group’s investment properties is located in the Toufen and Linyuan Industrial District. As these districts a re designated for industrial use, information on comparable market transactions are uncommon and alternative reliable measurements of the fair value estimates are not available. Hence, the Group determined that the fair value of these investment properties cannot be reliably determined. The fair values of the remaining investment properties were not assessed by independent appraisers; instead, they were arrived at by using the valuation model that most market participants would use in determining fair value by using Level 3 inputs, with reference to the transaction prices of similar properties in the vicinity. The fair value of right-of-use assets was determined by adding back the amount of related lease liabilities recognized to the net amount of the expected lease income after deducting all the expected payments.

The fair values of investment properties as of June 30, 2020, December 31, 2019 and June 30, 2019 were as follows:

December 31, June 30, 2020 2019 June 30, 2019 Fair value $ 1,143,668 $ 1,180,999 $ 939,374

The investment properties pledged as collateral for bank borrowings are set out in Note 36.

  • 53 -

18. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill (a)

Other intangible assets (b)
Technology royalties
and patent right

Computer software
Others

 June 30,2020
$ 269,026


$ 3,775
8,449

-

$ 12,224
 December 31,
2019

$ 269,026

$ 7,109

9,895

-

$ 17,004
 June 30,2019 June 30,2019










$ 269,026
$ 10,522
10,854
4,028
$ 25,404

a. Goodwill

No impairment assessment was performed periodically as there was no indication of impairment on June 30, 2020 and 2019. b. Other intangible assets

Except for the recognition of amortization expense, there were no significant addition, disposal and impairment on other intangible assets of the Group for the six months ended June 30, 2020 and 2019.

The intangible assets are depreciated on a straight-line basis over their estimated useful lives as follows:

eir estimated useful lives as follows:
Technology royalties and patent right 3 to 7 years
Computer software 1 to 3 years
Others 5 to 7 years

19. BORROWINGS

a. Short-term borrowings

Unsecured borrowings
Line of credit
borrowings
Range of interest rates
 June 30,2020
$ 4,319,048
0.61%～3.08%		 December 31,
2019

$ 4,258,980

0.81%～4.58%		 June 30,2019
$ 4,884,309
0.83%～4.73%
  • 54 -

b. Short-term bills payable

Short-term bills payable
June 30,2020
Commercial paper
$ 1,071,000

Less: Unamortized
discount on bills
payable
(
178)
$ 1,070,822

Range of interest rates
0.35%～1.29%
Long-term borrowings
June 30,2020
Secured borrowings
$ 1,443,200

Line of credit
borrowings
6,550,000

7,993,200

Commercial paper
80,000
Unamortized discount
on bills payable
(
172)


79,828

8,073,028

Less: Current portions
(
120,000)

Long-term borrowings
$ 7,953,028

Range of interest rates
Secured borrowings 0.94%～1.11%
Line of credit
borrowings
0.85%～1.14%
Commercial paper
1.358%		 December 31,
2019

$ 1,353,000

(
190)

$ 1,352,810

0.50%～1.188%
December 31,
2019

$ 1,743,200

7,650,000

9,393,200

100,000
(
230)


99,770

9,492,970

(
443,200)

$ 9,049,770

1.05%～1.33%
0.98%～1.18%
1.528%		 June 30,2019
$ 1,655,000
(
297)
$ 1,654,703
0.50%～1.27%
June 30,2019
$ 2,296,200
7,100,000
9,396,200
200,000
(
17)

199,983
9,596,183
(
171,600)
$ 9,424,583
1.04%～1.31%
0.95%～1.34%
1.50%

c. Long-term borrowings

The Company entered into medium- and long-term loan contracts with banks to increase working capital. The contracts will be effective up to August 2023 with a total credit limit of $4,800,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, the Company had borrowed $1,900,000 thousand.

UPIIC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts

  • 55 -

will be effective up to December 2022 with a total credit limit of $2,300,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, UPIIC had borrowed $1,150,000 thousand.

CGPC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to July 2023 with a total credit limit of $1,000,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, CGPC had not borrowed.

CGPCPOL entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to March 2022 with a total credit limit of $1,300,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, CGPCPOL had borrowed $500,000 thousand.

TVCM entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to May 2023 with a total credit limit of $1,100,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, TVCM had not borrowed.

TTC entered into medium- and long-term financing contracts with banks to increase working capital. The contract will be effective up to December 2022 with a total credit limit of $1,900,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, TTC had borrowed $550,000 thousand.

APC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to April 2023 with a total credit limit of $6,000,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, APC had borrowed $3,050,000 thousand.

  • 56 -

ACME entered into medium- and long-term financing contracts with banks to increase working capital. The contract will be effective up to September 2022 with a total credit limit of $540,000 thousand, which is used cyclically during the validity period. As of June 30, 2020, ACME had borrowed $420,000 thousand.

SPC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to November 2023 with a total credit limit of $ 503,200 thousand, which is used cyclically during the validity period. As of June 30, 2020, TVCM had borrowed $503,200 thousand.

According to the loan contracts of part of subsidiaries, the current ratio, bank loan ratio, debt ratio, and interest protection multiples should not be less than the specified percentage. The subsidiaries should provide improvements to the bank if the requirements were not met. As of June 30, 2020, the subsidiaries did not violate the requirements.

20. BONDS PAYABLE

BONDS PAYABLE
Domestic unsecured bonds
104-1A - issuance on
February 12, 2015, 5
years, total amount
$1,000,000 thousand,
coupon rate 1.55%,
bullet repayment
Domestic unsecured bonds
104-1B - issuance on
February 12, 2015, 7
years, total amount
$1,000,000 thousand,
coupon rate 1.90%,
bullet repayment		 June 30,2020
$ -

1,000,000
 December 31,
2019

$ 1,000,000

1,000,000
 June 30,2019
$ 1,000,000
1,000,000

(Continued)

  • 57 -
December 31, December 31,
June 30, 2020 2019 June 30, 2019
Domestic unsecured bonds
105-1 - issuance on
October 28, 2016, 5
years, total amount
$2,000,000 thousand,
coupon rate 0.80%,
bullet repayment 2,000,000
 2,000,000 2,000,000
Domestic unsecured bonds
106-1 - issuance on
October 27, 2017, 5
years, total amount
$2,000,000 thousand,
coupon rate 1.10%,
bullet repayment 2,000,000
 2,000,000 2,000,000
Domestic unsecured bonds
108-1 - issuance on April
26, 2019, 5 years, total
amount $2,000,000
thousand, coupon rate
0.98%, bullet repayment 2,000,000
 2,000,000 2,000,000
7,000,000
 8,000,000 8,000,000
Discounts on bonds
payable ( 7,190)
 ( 8,717) ( 10,382)
6,992,810
 7,991,283 7,989,618
Less: Current portions
 -
( 999,956) ( 999,767)
$ 6,992,810
 $ 6,991,327 $ 6,989,851

In December 2014, the Company applied for the first issuance of unsecured ordinary corporate bonds issued in 2015 with the amount of $2,000,000 thousand in order to reimburse the due bonds and to increase working capital. The unsecured ordinary corporate bonds with a 5-7-year maturity, due for repayment, were all issued in February 2015. The Company repaid $1,000,000 thousand due in February 2020.

In October 2016, the Company applied for the first issuance of unsecured ordinary corporate bonds issued in 2016 with the amount of $2,000,000 thousand in order to reimburse the bank loans, and

  • 58 -

the unsecured ordinary corporate bonds with a 5-year maturity, due for repayment, were all issued in October 2016.

In October 2017, the Company applied for the first i ssuance of unsecured ordinary corporate bonds issued in 2017 with the amount of $2,000,000 thousand in order to reimburse the bank loans, and the unsecured ordinary corporate bonds with a 5-year maturity, due for repayment, were all issued in October 2017.

In April 2019, the Company applied for the first issuance of unsecured ordinary corporate bonds issued in 2019 with the amount of $2,000,000 thousand in order to reimburse the bank loans, and the unsecured ordinary corporate bonds with a 5-year maturity, due for repayment, were all issued in April 2019.

In order to repay its bank borrowings, the Company passed its resolution to apply for the issuance of its first unsecured ordinary corporate bonds amounting to $2,000,000 thousand in the board of directors’ meeting in March 2020; the bonds are expected to be issued before the end of 2020.

21. NOTES AND ACCOUNTS PAYABLE


Operating
Notes payable

Accounts payable

 June 30,2020
$ -

2,118,759

$ 2,118,759
 December 31,
2019

$ -

2,757,368

$ 2,757,368
 June 30,2019 June 30,2019






$ 375
3,047,989
$ 3,048,364

The average credit period of the Group is between 1 and 3 months. The Group has financial risk management policies to ensure that all payables are paid within the credit terms.

  • 59 -

22. OTHER PAYABLES

OTHER PAYABLES

Current
Other payables
Payables for salaries
and bonuses
Payables for water and
electricity
Payables for purchases
of equipment
Payables for fares
Payable for VAT
Payables for interests
Payables for insurance
Payables for
professional service
expenses
Payables for fuel fees
Others


Other liabilities
Refund liabilities

 June 30,2020
$ 555,457
208,211
207,614
132,470
44,495

39,803

31,462
23,030

13,954

412,456

1,668,952


17,355

$ 1,686,307
 December 31,
2019

$ 790,918

188,541
191,407
174,702
19,236
55,434
26,576
21,814
20,779

430,848

1,920,255


28,221

$ 1,948,476
 June 30,2019















$ 520,890
214,839
103,603
173,863
10,552
50,662
27,400
19,849
24,190
422,580
1,568,428
27,235
$ 1,595,663

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

23. PROVISIONS

PROVISIONS
Non-current
Litigation provision
 June 30,2020
$ 136,375
 December 31,
2019

$ 136,375
 June 30,2019
$ 136,375

Litigation provision is a result of the first-instance judgment and reconciliation of the Kaohsiung gas explosion case on July 31,

  • 60 -

2014 for which cash outflows may be recognized in the near future. Please refer to Note 37 for the explanation related to the provision.

24. RETIREMENT BENEFIT PLANS

Related retirement expenses of defined benefit plans for the three months ended June 30, 2020 and 2019 and for the six months ended June 30, 2020 and 2019 were calculated based on the annual retirement cost rate for the respective year ended December 31, 2019 and 2018 and were recognized as follows:

Operating cost

Selling and marketing
expenses
General and
administrative
expenses
Research and
development expenses
Other gains and losses

 For the Three
Months Ended
June 30,2020
$ 7,473

786
1,206
344

52

$ 9,861
For the Three
Months Ended
June 30,2019
$ 8,952

1,006
1,508
422

66

$ 11,954
For the Six
Months Ended
June 30,2020
$ 15,125

1,585
2,418
695

101

$ 19,924
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019








$ 18,083
2,021
3,208
826
144
$ 24,282

25. GOVERNMENT GRANTS

  • a. Acme Electronics Corporation (Kunshan) reached an agreement with Kunshan Zhoushizhen People’s Government in 2006 in which Acme Electronics Corporation (Kunshan) promised to relocate its new plant and raise its investment amount to US$15,000 thousand; Zhoushizhen People’s Government then promised to assist Acme Electronics Corporation (Kunshan) in acquiring land for a new plant. Furthermore, by applying the tax refund, Kunshan Zhoushizhen People’s Government subsidized Acme Electronics Corporation (Kunshan)’s acquisition of the land for its new plant with a difference in price of over RMB50 thousand per acre. According to this agreement, Acme Electronics Corporation (Kunshan) raised the capital by cash and share dividends to meet its capital increase requirement for the relocation of the new plant. Acme Electronics Corporation

  • 61 -

(Kunshan) also recognized RMB10,591 thousand of the subsidy as long-term deferred revenue, which will be amortized along with the land use rights when the new plant is constructed.

Besides this, Acme Electronics (Kunshan) Co., Ltd. arrived at an agreement with Kunshan Zhoushizhen People’s Government for an additional subsidy for the external line project for high voltage power during the relocation process. The amount of the subsidy was RMB8,145 thousand in total, which was recognized as long-term deferred revenue by Acme Electronics (Kunshan) Co., Ltd. and will be amortized based on the duration of the power equipment.

As of June 30, 2020, December, 31, 2019 and June 30, 2019, th e amounts of deferred income (accounted for as other current liabilities) that had not been amortized were RMB8,268 thousand (NTD$36,109 thousand), RMB8,893 thousand (NTD$38,216 thousand) and RMB9,158 thousand (NTD$41,375 thousand), respectively.

b.

Affected by the global pandemic of COVID-19, the production bases of the Group’s overseas subsidiaries were temporarily suspended in 2020 Q1 and resumed 100% in April 2020. Therefore, the anticipated impact of the pandemic on the Group is not significant. ACME has applied to the government for subsidies for items such as salary and operating capital. As of June 30, 2020, $3,642 thousand has been obtained. In addition, in accordance with the policy of the local government in China, ACME (KS) and ACME(GZ) have gained exemption from the pension, unemployment and work-related injury insurances borne by the company from February to June 2020, as well as preferential electricity fee reduction, exemption, and subsidies due to good pandemic containment.

  • 62 -

The Group has incorporated the economic impact caused by the pandemic into its major accounting estimates based on the information available on the balance sheet date.

26. EQUITY

EQUITY
Share capital

Capital surplus
Retained earnings
Other equity items

Treasury shares

Non-controlling interests

 June 30,2020
$ 11,887,635
341,249
7,665,009
(
950,804 )
(
475,606 )
23,715,959

$ 42,183,442
 December 31,
2019

$ 11,887,635

271,613

7,756,919
(
781,058 )
(
475,606 )
20,517,444

$ 39,176,947
 June 30,2019
$ 11,887,635

268,122

7,178,786
(
166,824 )
(
475,606 )
19,378,269
$ 38,070,382

a. Share capital

Share capital
Number of shares
authorized (in
thousands)
Shares authorized

Number of shares
issued and fully paid
(in thousands)
Shares issued
 June 30,2020
1,342,602

$ 13,426,024

1,188,763

$ 11,887,635
 December 31,
2019


1,342,602

$ 13,426,024


1,188,763

$ 11,887,635
 June 30,2019









1,342,602
$ 13,426,024
1,188,763
$ 11,887,635

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

The capital surplus generated from donations and the excess of the issuance price over the par value of share capital (including the shares issued from new capital, mergers and treasury shares) 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 share dividends up to a certain percentage of the Company’s paid-in capital. The capital surplus

  • 63 -

c.

arising from investments accounted for using the equity method may not be used for any purpose.

Retained earnings and dividends policy

In accordance with the dividends policy as set forth in the Company’s Articles of Incorporation, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors after the amendment, please refer to “employees’ compensation and remuneration of directors” in Note 28 (g).

The industry that the Company operates in is in the maturity stage. Consequently, in order to take R&D needs and diversification into consideration, shareholders’ dividends shall be no less than 10% of the distributable earnings in the current year, of which the cash dividends not be no less than 10% of the total dividends. However, if the distributable earnings of the year are less than $0.1 per share, it shall not be distributed.

The 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.

  • 64 -

Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2019 and 2018 as approved in the shareholders’ meetings on June 12, 2020 and 2019, respectively, were as follows:


Legal reserve

Special reserve
Cash dividends

 Appropriation of Earnings
2019
2018
$ 129,872 $ 53,994
350,533
55,399

594,382
356,629

$ 1,074,787
$ 466,022		 Appropriation of Earnings
2019
2018
$ 129,872 $ 53,994
350,533
55,399

594,382
356,629

$ 1,074,787
$ 466,022		 Appropriation of Earnings
2019
2018
$ 129,872 $ 53,994
350,533
55,399

594,382
356,629

$ 1,074,787
$ 466,022		 Dividends Per Share(NT$) Dividends Per Share(NT$)
2019
$ 129,872
350,533

594,382

$ 1,074,787
 2019


$ 0.5		 2018





$ 0.3

d.

  • Other equity items

  • Exchange differences on translating the financial statements of foreign operations

of foreign operations
Balance at January 1
Recognized during the
period
Exchange
differences
on
translating
foreign
operations
Related income
tax
Disposition
of
subsidiaries’ equity
Balance at June 30		 For the Six
Months Ended
June 30,2020
( $ 602,871 )
( 334,694 )
59,409
(
68)
($ 878,224)		 For the Six
Months Ended
June 30,2019
( $ 208,307 )
95,982
(
14,581 )

-
($ 126,906)
  • 65 -

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

Balance at January 1
Recognized during the
period
Unrealized gain
Equity
instruments
Related income
tax
Cumulative unrealized
loss of equity
instruments
transferred to
retained earnings
due to disposals
Balance at June 30
Non-controlling interests
Balance at January 1
Adjustment on initial
application of IFRS 16
Balance at January 1
Cash dividends of
subsidiaries’ shareholders
Share in profit for the period
Other comprehensive
income (loss) in the
period
Exchange difference on
translating foreign
operations
Income tax relating to
exchange difference
on translating foreign
operations		 For the Six
Months Ended
June 30,2020
( $ 178,187 )
96,252
92

9,263
($ 72,580)
For the Six
Months Ended
June 30,2020
$ 20,517,444

-
20,517,444
(
519,048 )
800,551
(
396,882 )
32,352		 For the Six
Months Ended
June 30,2019
( $ 85,136 )
79,941
211
(
34,934)
($ 39,918)
For the Six
Months Ended
June 30,2019
$ 18,267,556
(
4,490)
18,263,066
(
705,440 )
591,525
81,257
(
8,096 )

e. Non-controlling interests

(Continued)

  • 66 -
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Unrealized (loss) gain
on financial assets at
FVTOCI
( $ 20,912 )
$ 34,875
Income tax relating to
unrealized gain on
financial assets at
FVTOCI
191
463
Disposition of
subsidiaries’ equity
(
85 )
-
Adjustments relating to
changes accounted for
using the equity method
(
50,680 )
(
1,861 )
Changes in non-controlling
interests

3,353,028

1,122,480
Balance at June 30
$ 23,715,959
$ 19,378,269
Treasury shares
Purpose of Buy-Back
Number of
Shares at
January 1
(In
Thousands
of
Shares)
Increase
During the
Period
Decrease
During the
Period
Number of
Shares at
June 30 (In
Thousands
of Shares)
For the six months ended
June 30, 2020
Shares held by
subsidiaries
116,466

-

-
116,466
For the six months ended
June 30, 2019
Shares held by
subsidiaries
116,466

-

-
116,466		 For the Six
Months Ended
June 30,2019		 For the Six
Months Ended
June 30,2019		 For the Six
Months Ended
June 30,2019

116,466
116,466

f. Treasury shares

The Company’s shares held by its subsidiaries at the end of the reporting period were as follows:

  • 67 -
Name of Subsidiary
June 30, 2020
Asia Polymer
Corporation (“APC”)
Taita Chemical
Company, Limited
(“TTC”)
December 31, 2019
APC
TTC
June 30, 2019
APC
TTC		 Number of
Shares Held
(In Thousands
of Shares)
101,356

15,110


101,356

15,110


101,356

15,110

 Carrying
Amount

$ 1,377,381

81,875

$ 1,459,256

$ 1,377,381

81,875

$ 1,459,256

$ 1,377,381

81,875

$ 1,459,256
 Market Price Market Price
















$ 1,195,997
178,297
$ 1,374,294
$ 1,403,776
209,272
$ 1,613,048
$ 1,165,590
173,764
$ 1,339,354

The Company’s shares held by subsidiaries are regarded as treasury shares. Investments accounted for using the equity method are reclassified as treasury shares.

The Company’s shares held by APC and TTC were carried as unrealized gain (loss) on financial assets at FVTOCI and valued at the closing price of June 30, 2020, December 31, 2019 and June 30, 2019. The carrying amounts of investments accounted for using the equity method and the unrealized gain (loss) on financial assets at FVTOCI were reduced by $(23,320) thousand, $55,255 thousand and $(34,819) thousand, respectively.

  • 68 -

27. REVENUE

REVENUE
Product sales revenue
Plastic materials

Electronic materials
Others

 For the Three
Months Ended
June 30,2020
$ 10,194,166
551,626

110,602

$ 10,856,394
For the Three
Months Ended
June 30,2019
$ 13,857,710

515,854

127,666

$ 14,501,230
For the SIx
Months Ended
June 30,2020
$ 20,907,061

1,062,259

243,482

$ 22,212,802
For the SIx
Months Ended
June 30,2019











$ 26,705,830

1,035,942
252,834
$ 27,994,606

Product sales revenue of the Group mainly comes from selling polyethylene plastic and other related products.

Contract balances

Contract balances
Notes and accounts
receivables (Note 10)
 June 30,2020
$ 5,558,614
 December 31,
2019
$ 7,045,512
 June 30,2019

$ 7,741,297
 January1,2019
$ 8,548,733

28. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

Owners of the Company
Non-controlling interests
 For the Three
Months Ended
June 30,2020
$ 294,581


371,362

$ 665,943
For the Three
Months Ended
June 30,2019
$ 441,530


260,263

$ 701,793
For the Six
Months Ended
June 30,2020
$ 511,280


799,615

$ 1,310,895
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019








$ 694,495
588,694
$ 1,283,189

Net profit from continuing operations includes the following: a. Interest income

Interest income
Interest income
Cash and cash
equivalents

Financial assets at
FVTPL
Financial assets at
amortized cost
Others

 For the Three
Months Ended
June 30,2020
$ 25,855

3,730

1,495

39

$ 31,119
For the Three
Months Ended
June 30,2019
$ 33,653

19,547
410

141

$ 53,751
For the Six
Months Ended
June 30,2020
$ 54,803

3,730
1,737

102

$ 60,372
For the Six
Months Ended
June 30,2019









$ 61,230
19,666
833
427
$ 82,156
  • 69 -

b. Other income

Other income
For the Three
Months Ended
June 30,2020
Dividend income
$ 69,324

Claims income
22,544
Rental income
14,462
Grant income (Note
25)
3,885
Government grants
income (Note 15)
-
Management service
income (Note 35)
7,289
Others

21,484

$ 138,988

Other gains and losses
For the Three
Months Ended
June 30,2020
Gain on disposal of
property, plant and
equipment
$ 3,053

Loss on disposal of
property, plant and
equipment
(
20,800 )
Net gain on disposal
of financial
instruments
36,589
Net foreign exchange
(loss) gain
(
62,459 )
Net gain (loss) on
financial assets at
FVTPL
97,677
Net loss on financial
liabilities at FVTPL (
4,932 )
Impairment losses
reversed
(recognized) on
non-financial assets
719
Depreciation of
investment
properties
(
6,112 )
Other gains and losses (
13,950)

$ 29,785
For the Three
Months Ended
June 30,2019
$ 51,136

9
13,392
9,126
155,710
7,086

57,241

$ 293,700


For the Three
Months Ended
June 30,2019
$ 31,944

(
1,533 )

4,059

32,528

28,774

(
11,239 )
18

(
4,406 )
(
20,775)

$ 59,370
For the Six
Months Ended
June 30,2020
$ 69,324

22,544
24,665
4,457
-
14,779

32,431

$ 168,200


For the Six
Months Ended
June 30,2020
$ 8,031

(
25,898 )
379,019
(
37,087 )
(
286,135 )
(
9,732 )
(
575 )
(
14,295 )
(
35,710)

($ 22,382)
For the Six
Months Ended
June 30,2019
$ 51,136
15,924
27,790
10,231
155,710
13,464

83,991
$ 358,246

For the Six
Months Ended
June 30,2019

(


(
(
(
(
(
(
(
(
(
(
(
(


(
(
(
(
 $ 36,799

1,720 )
7,056

104,583

93,665

25,309 )

293 )

8,859 )
38,489)
$ 167,433

c. Other gains and losses

  • 70 -

d. Finance costs

Finance costs
Interest on bank loans
Interest on bonds
payable
Other interest expense
Interest on lease
liabilities
Less: Capitalized
interest (included
in construction in
progress)

 For the Three
Months Ended
June 30,2020
$ 36,409

19,893

21
1,847
(
629)

$ 57,541
For the Three
Months Ended
June 30,2019
$ 52,447

22,433
325
1,979
(
6,993)

$ 70,191
For the Six
Months Ended
June 30,2020
$ 80,340

41,107
36
3,750
(
1,228)

$ 124,005
For the Six
Months Ended
June 30,2019


(
(
(
(
 $ 110,223
41,172
1,024
4,006
14,242)
$ 142,183

Information about capitalized interest is as follows:

Capitalized interest

Capitalization rate
 For the Three
Months Ended
June 30,2020
$ 629

0.72%～1.23%
For the Three
Months Ended
June 30,2019
$ 6,993

0.62%～1.25%
For the Six
Months Ended
June 30,2020
$ 1,228

0.71%～1.23%
For the Six
Months Ended
June 30,2019
$ 14,242
0.62%～1.48%

e. Depreciation and amortization

Property, plant and
equipment
Right-of-use assets
Investment properties
Intangible assets
Others


Analysis of
depreciation by
function
Operating costs

Operating
expenses
Other gains and
losses
 For the Three
Months Ended
June 30,2020
$ 535,409

16,621

6,112
2,521

15,277

$ 575,940

$ 526,195

25,835

6,112

$ 558,142
For the Three
Months Ended
June 30,2019
$ 503,588
15,767
4,406
5,851

12,613

$ 542,225

$ 489,855

29,500

4,406
$ 523,761
For the Six
Months Ended
June 30,2020
$ 1,082,622

33,848
14,295
5,301

29,188

$ 1,165,254

$ 1,062,355

54,115

14,295

$ 1,130,765
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019





















$ 1,003,444
31,532
8,859
12,589
20,422
$ 1,076,846
$ 976,205
58,771
8,859
$ 1,043,835

(Continued)

  • 71 -

Analysis of
depreciation by
function
Operating costs

Selling and
marketing expenses
General and
administrative
expenses
Research and
development
expenses
 For the Three
Months Ended
June 30,2020
$ 15,259

135
666

1,738

$ 17,798
 For the Three
Months Ended
June 30,2019

$ 12,620

2,555
1,622

1,667
$ 18,464
 For the Six
Months Ended
June 30,2020
$ 29,150

271
1,575

3,493

$ 34,489
 For the Six
Months Ended
June 30,2019		 For the Six
Months Ended
June 30,2019








$ 20,861
5,120
3,696
3,334
$ 33,011

f. Employee benefits expense

Post-employment
benefits (Note 24)
Defined
contribution
plans
Defined benefit
plans
Other employee
benefits
Total employee
benefits expense
Analysis of employee
benefits expense by
function
Operating costs

Operating
expenses
Non-operating
income and
expenses
 For the Three
Months Ended
June 30,2020
$ 26,562


9,861

36,423

990,153

$ 1,026,576

$ 643,804

366,608

16,164

$ 1,026,576
For the Three
Months Ended
June 30,2019
$ 37,107

11,954
49,061

1,037,676
$ 1,086,737
$ 742,909

339,526

4,302
$ 1,086,737
For the Six
Months Ended
June 30,2020
$ 58,802


19,924

78,726

2,068,259

$ 2,146,985

$ 1,428,518

698,238

20,229

$ 2,146,985
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019
























$ 76,424
24,282
100,706
2,076,088
$ 2,176,794
$ 1,486,186
682,075
8,533
$ 2,176,794

g. Employees’ compensation and remuneration of directors

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

  • 72 -

employees’ compensation and remuneration of directors for the three months ended June 30, 2020 and 2019 and for the six months ended June 30, 2020 and 2019, which were accrued by the Company’s board of directors as follows:

Accrual rate s

Accrual rates
Employees’ compensation
Remuneration of directors		 For the Six
Months Ended
June 30,2020
1.00%
0.49%		 For the Six
Months Ended
June 30,2019
1.00%
0.34%

Amount

Amount
Employees’
compensation
Remuneration of
directors		 For the Three
Months Ended
June 30,2020
For the Three
Months Ended
June 30,2019
$ 5,440
$ 1,375
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
$ 8,200
$ 2,750

$ 3,135

$ 1,375
$ 5,613
$ 2,750		 $ 8,200
$ 2,750

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

The employees’ compensation and remuneration of directors for the years ended December 31, 2019 and 2018, which were approved by the Company’s board of directors on March 9, 2020 and March 8, 2019, respectively, were as follows:

Employees’ compensation
Remuneration of directors		 2019
$ 14,793
$ 5,500		 2018


$ 6,319
$ 5,200

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2019 and 2018.

  • 73 -

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

h. Gain or loss on foreign currency exchange

Foreign exchange
gains
Foreign exchange
losses
Net (loss) profit
 For the Three
Months Ended
June 30,2020
$ 8,180

(
70,639)

($ 62,459)
For the Three
Months Ended
June 30,2019
$ 79,370
(
46,842)
$ 32,528
For the Six
Months Ended
June 30,2020
$ 111,559

(
148,646)

($ 37,087)
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019

(
(
(
(
(
(
 $ 168,102
63,519)
$ 104,583

29. INCOME TAX RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

follows:
Current tax
In respect of the
current year
Surtax on
undistributed
earnings
Adjustments for
prior years

Deferred tax
In respect of the
current year
Adjustments for
prior years

Income tax expense
recognized in profit
or loss		 For the Three
Months Ended
June 30,2020
$ 147,215

30,217
(
14,241)


163,191

$ 27,630

(
390)


27,240

$ 190,431
For the Three
Months Ended
June 30,2019
$ 185,165


33,804

979


219,948

$ 35,475


1,010


36,485

$ 256,433
For the Six
Months Ended
June 30,2020
$ 354,531

30,217
(
14,241)


370,507

$ 63,878

(
390)


63,488

$ 433,995
For the Six
Months Ended
June 30,2019

(


(







(


(

(




 $ 301,239

33,804
5,258)
329,785
$ 98,628
1,035
99,663
$ 429,448

The income tax rate of the Company and its domestic subsidiaries is 20%. The income tax rate of subsidiaries in China is 25%. The tax amount generate by other jurisdictions is

  • 74 -

calculated based on the applicable tax rate in each relevant jurisdictions.

In July 2019, the President of the ROC announced the amendments to the Statute for Industrial Innovation, w hich stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings. When calculating the tax on unappropriated earnings, except for CGPC, whose amount of capital expenditure from the unappropriated earnings that was reinvested was deducted, the Group has not deducted the amount of capital expenditure from the unappropriated earnings that was reinvested.

b. Income tax recognized in other comprehensive income

For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30,2020
June 30,2019
June 30,2020
June 30,2019
ized in other comprehensive income ized in other comprehensive income ized in other comprehensive income ized in other comprehensive income ized in other comprehensive income
For the Three
Months Ended
June 30,2020
For the Three
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
Deferred tax
In respect of the
current year
Translation of
foreign
operations
(
Fair value
changes of
financial assets
at FVTOCI
(
Total income tax
recognized in other
comprehensive
income
(		 $ 68,300 ) (
59)
(
$ 68,359)
(		 $ 36,321 ) (
1,547)
(
$ 37,868)
(		 $ 91,761 )
283)
(
$ 92,044)
 $ 22,677
674)
$ 22,003

c. Income tax assessments

The income tax returns of UPIIC, TVCM, APCI, TUVC, TUVM, INOMA, TMC, STC, CLT, CGTD and USIO through 2018 have been assessed by the tax authorities. The income tax returns of TTC through 2018 have been assessed by the tax authorities, except for that of 2017. The income tax returns of the Company, UM, USIIC, ACME, CGPC, CGPCPOL and APC through 2017 have

  • 75 -

been assessed by the tax authorities. The income tax returns of SPC through 2016 have been assessed by the tax authorities.

30. EARNINGS PER SHARE

Basic and diluted
earnings per share
From continuing
operations and
discontinued
operations
From discontinued
operations

From continuing
operations
 For the Three
Months Ended
June 30,2020
$ 0.27


-

$ 0.27
For the Three
Months Ended
June 30,2019
$ 0.41


-

$ 0.41
 Unit: NT$ Per Share

For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
$ 0.48
$ 0.65

-

-
$ 0.48
$ 0.65






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

Profit for the period

Profit for the period
attributable to owners
of the Company
(earnings used in the
computation of basic
and diluted earnings
per share)
Less: Gain for the period
from discounted
operations used in
computation of basic
earnings per share
from discounted
operations
Earnings used in the
computation of basic
and diluted earnings
per share from
continuing operations		 For the Three
Months Ended
June 30,2020
$ 294,844

(
263)

$ 294,581
For the Three
Months Ended
June 30,2019
$ 442,700

(
1,170)

$ 441,530
For the Six
Months Ended
June 30,2020
$ 511,800

(
520)

$ 511,280
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019

(
(
(
(
 $ 696,061
1,566)
$ 694,495

Weighted Average Number of Ordinary Shares Outstanding

(In Thousands of Shares)

  • 76 -
Weighted average
number of ordinary
shares used in
computation of basic
earnings per share
Effect of potentially
dilutive ordinary
shares:
Employees’
compensation
issued to
employees
Weighted average
number of ordinary
shares used in the
computation of diluted
earnings per share		 For the Three
Months Ended
June 30,2020
1,072,298

456


1,072,754
For the Three
Months Ended
June 30,2019
1,072,298

695


1,072,993
For the Six
Months Ended
June 30,2020
1,072,298

920


1,073,218
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019




1,072,298
887
1,073,185

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

It was calculated that the potential dilutive effect of USIO’s outstanding employee share options for the six months ended June 30, 2020 and 2019 did not have an impact on the Group’s diluted earnings per share.

31. SHARE-BASED PAYMENT ARRANGEMENTS

  • a. ACME did not issue employee share options for the six months ended June 30, 2020 and 2019. Information on employee share options which were issued was as follows:

  • 77 -

Employee share
options
Balance at
January 1
Options
exercised

Options
exercisable,
end of period
 For the Six Months Ended
June 30,2019		 For the Six Months Ended
June 30,2019
Number of
Options
563

(
563)

-		 Weighted
average
Exercise
Price
(NT$)
(
 $ 8.2
8.2
-

The above-mentioned employee shares options of ACME were fully exercised from January 1 to June 30, 2019. As of June 30, 2020, ACME did not have any outstanding employee share options.

b. USIO did not have new employee share option plan for the six months ended June 30, 2020 and 2019.

Information on employee share options which were issued was as follows:

follows:
Employee share
options
Balance at
January 1
Options expired
Balance at June
30

Options
exercisable,
end of period		 For the Six Months Ended
June 30,2020
Number of
Options
Weighted
average
Exercise
Price
(NT$)
133
$ 10.8

-
-


133
10.8


133
10.8
 For the Six Months Ended
June 30,2019
Number of
Options
133


-

133

133		 Number of
Options
167

(
34)

133

133		 Weighted
average
Exercise
Price
(NT$)


(

 $ 10.8
10.8
10.8
10.8
  • 78 -

32. CASH FLOW INFORMATION

a. Non-cash transactions

For the six months ended June 30, 2020 and 2019, the Group entered into the following non-cash investing and financing activities which were not reflected in the consolidated statements of cash flows:

  1. As of June 30, 2020, December 31, 2019, and June 30, 2019, the amounts of payables for purchases of equipment were $207,614 thousand, $191,407 thousand, and $103,603 thousand, respectively.

  2. As of June 30, 2020, December 31, 2019, and June 30, 2019, the amounts of payables for dividends declared but not issued were $1,057,959 thousand, $17,771 thousand and $1,010,975 thousand, respectively.

  3. b. Changes in liabilities arising from financing activities


Short-term
borrowings
Short-term bills
payable
Bonds payable
(including current
portions)
Long-term
borrowings
(including current
portions
Guarantee deposits
received
Lease liabilities
(including current
portions)
Other non-current
liabilities


Short-term
borrowings
Short-term bills
payable
Bonds payable
(including current
portions)
Long-term
borrowings
(including current
portions
Guarantee deposits
received
Lease liabilities
(including current
portions)
Other non-current
liabilities
 January1,2020 January1,2020 Cash Flows No n-cash Changes Others June 30,2020
New Leases Allocated
Finance Costs		 Changes in
Foreign
Currency
Exchange Rates
$ 4,258,980

1,352,810

7,991,283

9,492,970

27,475
552,778


41,778

$ 23,718,074

January1,2019
(
(
(
(
(
(
 $ 60,068


282,000 )

1,000,000 )

1,419,942 )
15,072

34,075 )

1,326)

$ 2,662,203)

Cash Flows





$ -


-

-

-
-

847
-

$ 847


No		 $ -

-
1,527
-
-
3,750

-

$ 5,277

n-cash Changes
(

(
 $ -

-
-
-
-

1,586 )
-

$ 1,586)
(

(
 $ -

12
-
-
-

32,209 )
-

$ 32,197)

Others


$ 4,319,048
1,070,822
6,992,810
8,073,028
42,547

489,505
40,452
$ 21,028,212
June 30,2019
New Leases Allocated
Finance Costs		 Changes in
Foreign
Currency
Exchange Rates


$ 6,726,854

1,514,784
5,992,604
9,142,624
26,662
546,116

44,820

$ 23,994,464
 (
(
(
 $ 1,842,545 )
140,000
1,995,630
453,559
50

30,200 )

49)

$ 716,445


$ -

-
-
-
-

-
-

$ -

$ -

-
1,384
-
-
4,006
-

$ 5,390

$ -

-

-
-
-
193

-

$ 193
(
(

(		 $ -


81 )
-
-
-

4,006 )
-

$ 4,087)



$ 4,884,309

1,654,703
7,989,618
9,596,183
26,712

516,109
44,771
$ 24,712,405
  • 79 -

33. CAPITAL MANAGEMENT

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

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

Key management personnel of the Group review the capital structure periodically. As part of this review, the key management personnel consider the cost of capital and the risks ass ociated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, and the amount of new debt issued or existing debt redeemed.

34. FINANCIAL INSTRUMENTS

  • a. Fair value of financial instruments not measured at fair value June 30, 2020
June 30, 2020
Financial liabilities
Financial liabilities at
amortized cost
Domestic corporate bonds
December 31, 2019		 Carrying
Amount
$ 6,992,810

Carrying
Amount
$ 7,991,283
 Fair Value
Level 1
$ -
 Level 2
Level 3
$ 7,032,700
$ -

Fair Value		 Total
$ 7,032,700
Financial liabilities
Financial liabilities at
amortized cost
Domestic corporate bonds
Level 1
$ -
 Level 2
$ 8,027,387
 Level 3
$ -
 Total
$ 8,027,387
  • 80 -

June 30, 2019

June 30, 2019
Financial liabilities
Financial liabilities at
amortized cost
Domestic corporate bonds		 Carrying
Amount
$ 7,989,618
 Fair Value
Level 1
$ -
 Level 2
$ 8,020,948
 Level 3
$ -
 Total
$ 8,020,948

Expect for the above, the management of the Group considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values. Otherwise, the fair values cannot be reliably measured.

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

1. Fair value hierarchy

June 30, 2020

June 30, 2020
Financial assets at FVTPL
Derivative financial
assets
Domestic listed
shares and
over-the-counter
shares
Mutual funds

Beneficiary
certificates
Foreign listed shares


Financial assets at
FVTOCI
Equity instrument
investments
Domestic listed
shares and
over-the-counter
shares
Domestic emerging
market shares
Domestic unlisted
shares
Foreign listed shares
and
over-the-counter
shares		 Level 1
$ -

237,467
4,746,239
212,313
516

$ 5,196,535

$ 1,609,725

-
-
7,089		 Level 2
$ 8,366

-
-
-
-

$ 8,366

$ -

-
-
-		 Level 3
$ -

-
-

-
-

$ -

$ -

10,495
680,028
-		 Total














$ 8,366
237,467
4,746,239
212,313
516
$ 5,204,901
$ 1,609,725
10,495
680,028
7,089

(Continued)

  • 81 -
Foreign unlisted
shares



Financial liabilities at
FVTPL
Derivative financial
liabilities

December 31, 2019		 Foreign unlisted
shares



Financial liabilities at
FVTPL
Derivative financial
liabilities

December 31, 2019		 $ Level 1

-

1,616,814


-

Level 1

-

364,057
4,907,560
1,071,797
545

6,343,959

1,614,413

-
-
8,649
-

1,623,062


-

$ Level 2

-


-


3,783

Level 2

14,066

-
-
-
-


14,066


-

-
-
-
-


-


4,136

$ Level 3

97,961


788,484


-

Level 3

-

-
-

-

-


-


-

16,178
632,134
-
100,139


748,451


-

$
$ $ $
$ $ $
Financial assets at FVTPL
Derivative financial
assets
Domestic listed
shares and
over-the-counter
shares
Mutual funds

Beneficiary
certificates
Foreign listed shares


Financial assets at
FVTOCI
Equity instrument
investments
Domestic listed
shares and
over-the-counter
shares
Domestic emerging
market shares
Domestic unlisted
shares
Foreign listed shares
and
over-the-counter
shares
Foreign unlisted
shares


Financial liabilities at
FVTPL
Derivative financial
liabilities








$






$





$







$ 14,066
364,057
4,907,560
1,071,797
545
$ 6,358,025
$ 1,614,413
16,178
632,134
8,649
100,139
$ 2,371,513
$ 4,136
$ $ $
$ $ $
$ $ $
$ $ $
  • 82 -

June 30, 2019

June 30, 2019
Financial assets at FVTPL
Derivative financial
assets
Domestic listed
shares and
over-the-counter
shares
Mutual funds

Beneficiary
certificates
Foreign listed shares


Financial assets at
FVTOCI
Equity instrument
investments
Domestic listed
shares and
over-the-counter
shares
Domestic emerging
market shares
Domestic unlisted
shares
Foreign listed shares
and
over-the-counter
shares
Foreign unlisted
shares


Financial liabilities at
FVTPL
Derivative financial
liabilities		 Level 1
$ -

168,783
5,344,351
998,980
795

$ 6,512,909

$ 1,848,751

-
-
6,940
-

$ 1,855,691

$ -
 Level 2
$ 14,680

-
-
-
-

$ 14,680

$ -

-
-
-
-

$ -

$ 3,678
 Level 3
$ -

-
-

-
-

$ -

$ -

27,500
680,447
-
105,844

$ 813,791

$ -
 Total


























$ 14,680
168,783
5,344,351
998,980
795
$ 6,527,589
$ 1,848,751
27,500
680,447
6,940
105,844
$ 2,669,482
$ 3,678

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2020 and 2019.

  1. Reconciliation of Level 3 fair value measurements of financial instruments

  2. 83 -

Financial assets at FVTOCI
Balance at January 1
Recognized in other
comprehensive income
(included in unrealized
gain (loss) on financial
assets at FVTOCI)
Disposition
Return of capital
Balance at March 31		 For the Six
Months Ended
June 30,2020
$ 748,451
55,610
(
15,577 )

-
$ 788,484		 For the Six
Months Ended
June 30,2019
$ 845,179
95,383
(
80,649 )
(
46,122)
$ 813,791

  1. Valuation techniques and inputs applied for Level 2 fair value measurement

  2. Financial Instruments Valuation Techniques and Inputs

  3. Financial liabilities – The corporate bond interest rate domestic corporate announced by Taipei Exchange, of which bonds per-hundred price is calculated according to the credit rating and the expiration date through interpolation method.

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

  5. Valuation techniques and inputs applied for Level 3 fair value measurement

The Group applied the valuation techniques and inputs for Level 3 fair value measurement for its independent fair value authentication of financial instruments which was carried out by the financial department. Through information from independent resources, the Group keeps the results close to the market state and reviews such results periodically to ensure that they are reasonable. The fair

  • 84 -

values of domestic and foreign unlisted equity securities were determined using the asset-based approach. In this approach, the fair value is determined by the latest net value of the investee company and the financial and business conditions of its observable company. If the discount for the lack of marketability decreases, the fair value of investments will increase. When the discount for lack of marketability increases/decreases by 10%, the fair value will decrease/increase by $78,848 thousand and $81,379 thousand, respectively, for the six months ended June, 2020 and 2019. c. Categories of financial instruments


Financial assets
Financial assets at
FVTPL
Financial assets
mandatorily
classified as at
FVTPL

Financial assets
measured at amortized
cost
Cash and cash
equivalents

Pledged time
deposits
Investment
products
Notes receivable
Accounts receivable
Other receivables
(including related
parties)
Refundable deposits		 June 30,2020
$ 5,204,901

8,685,259

677,573
138,953
406,977
5,151,637

302,401

161,445		 December 31,
2019

$ 6,358,025

7,927,403

659,923
158,148
634,435
6,411,077

277,131
181,829		 June 30,2019
$ 6,527,589
8,325,502
674,742
-
835,646
6,905,651
283,748
156,316

(Continued)

  • 85 -

Financial assets at
FVTOCI – equity
instrument
investments

Financial liabilities
Financial liabilities at
FVTPL－Held for
trading
Financial liabilities
measured at
amortized cost
Short-term
borrowings

Short-term bills
payable

Notes payable and
accounts payable

Other payables (not
including salaries
payable or taxes
payable)

Current portion of
long-term
borrowings
Bonds payable

Long-term
borrowings

Guarantee deposits
received		 June 30,2020
$ 2,405,298

3,783
4,319,048

1,070,822

2,118,759

1,069,000

120,000

6,992,810

7,953,028

42,547		 December 31,
2019

$ 2,371,513

4,136
4,258,980

1,352,810

2,757,368

1,110,101

1,443,156

6,991,327

9,049,770

27,475		 June 30,2019
$ 2,669,482
3,678
4,884,309
1,654,703
3,048,364
1,036,986
1,171,367
6,989,851
9,424,583
26,712

d. Financial Risk Management Objectives and Policies

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

  • 86 -

1. Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price risks.

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

(1) Foreign currency risk

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

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 39 and the derivatives exposing the Group to foreign currency risk at the end of the reporting period are set out in Note 7.

Sensitivity analysis

The sensitivity analysis of foreign currency risk mainly focuses on the computation of foreign currency monetary items at the end of the financial reporting period (U.S. dollar denominated items). When the Group’s functional currency relative to the USD

  • 87 -

appreciates/depreciates by 3%, the Group’s profit before tax for the six months ended June 30, 2020 will decrease/increase by $82,300 thousand; the profit before tax for the six months ended June 30, 2019 will decrease/increase by $109,474 thousand.

Because this sensitivity analysis is based on the computation of foreign currency exposure at balance sheet date, the management concedes that this analysis cannot properly reflect the mid-year exposures.

(2) Interest rate risk

The Group was exposed to fair value interest rate risk because the Group held financial assets and financial liabilities at fixed rates; the Group was exposed to cash flow interest rate risk because the Group held financial assets and financial liabilities at floating rates. The Group’s management monitors the changes in the market rates on a regular basis and adjusts the floating rate financial liabilities to make the Group’s rates approach market rates in response to the risk caused by changing market rates.

The carrying amounts of the Group’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		 June 30,2020
$ 5,786,515
14,185,518

3,747,078
6,759,695
December 31,
2019

$ 5,253,127
15,821,920

3,441,301

7,826,901		 June 30,2019
$ 5,517,673
16,989,029

3,243,931

7,651,893
  • 88 -

Sensitivity analysis

Regarding the sensitivity analysis of interest risk, the Group’s computation was based on financial assets and financial liabilities with cash flow interest rate risk. A 0.5% increase/decrease of market interest was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rate. If interest rates had been 0.5% higher/lower and all other variables were held constant, the Group’s profit before tax for the six months ended June 30, 2020 and 2019 would have decreased/increased by $7,532 thousand and $11,020 thousand, respectively.

(3) Other price risk

The Group was exposed to equity price risk through its investments in equity securities listed domestically and overseas and beneficiary certificates. The Group manages this exposure by maintaining a portfolio of investments with different risks. In addition, the Group has appointed a special team to monitor the price risk. Sensitivity analysis

The analysis below was determined based on the price of equity securities at the balance sheet date.

If equity prices fluctuates by 5%, the pre-tax profit for the six months ended June 30, 2020 and 2019 would have increased/decreased by $259,827 thousand and $325,645 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the six months ended June 30, 2020 and 2019 would have increased/decreased by $120,265 thousand and $133,474

  • 89 -

thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As of the balance sheet date, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, could be equal to the total of the following:

  • a) The carrying amount of the financial assets recognized in the balance sheets; and

  • b) The maximum amount payable by the Group due to financial guarantees provided by the Group.

The Group adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.

The counterparties of the Group’s trade receivables cover a wide range of customers distributed in different districts include numerous clients distributed over a variety of areas, and are not centered on a single client or location. Besides this, ongoing credit evaluations are performed on the financial condition of counterparties of the trade receivables, so the Group’s credit risk is limited. On the balance sheet date, the Group’s maximum exposure to credit risk approximates the carrying amounts of the respective recognized financial assets as stated in the balance sheet. 3. Liquidity risk

  • 90 -

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

(1) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods based on the probable earliest dates on which the Group can be required to pay. The table has been drawn up based on the undiscounted cash flows of financial liabilities, including the cash flows of interests and principals. June 30, 2020

Non-derivative
financial
liabilities
Non-interest
bearing
liabilities
Lease liabilities
Floating interest
rate liabilities
Fixed interest
rate liabilities		 Weighted
Average
Interest
Rate(%)


0.83-9.25

0.81-1.36

0.35-3.08

 On Demand
or
Less than 1
Year



1-5 Years
$ -

266,014

5,903,200

9,050,000

$ 15,219,214
 5+ Years


$ 4,845,670
78,247
856,667

4,653,381

$ 10,433,965



$ -

337,288

-

-
$ 337,288

Additional information about the maturity analysi s for lease liabilities:

Lease
liabilities
 Less than 1
Year		 Less than 1
Year		 1-5 Years 5-10 Years 5-10 Years 10-15
Years		 15-20
Years
 More than
20 Years
$ 78,247
 $ 266,014
 $ 106,655
 $ 53,041
 $ 52,399 $ 125,193
  • 91 -

December 31, 2019

Non-derivative
financial
liabilities
Non-interest
bearing
liabilities
Lease liabilities
Floating interest
rate liabilities
Fixed interest
rate liabilities		 Weighted
Average
Interest
Rate(%)


0.83-9.25

0.83-4.58

0.50-2.60

 On Demand
or
Less than 1
Year



1-5 Years
$ -

279,108

6,400,000

9,649,999

$ 16,329,107
 5+ Years


$ 4,695,394
76,667
1,427,131

5,628,050

$ 11,827,242



$ -

357,825

-

-
$ 357,825

Additional information about the maturity analysis for lease liabilities:

Lease
liabilities
 Less than 1
Year		 Less than 1
Year		 1-5 Years 5-10 Years 5-10 Years 10-15
Years		 15-20
Years
 More than
20 Years
$ 76,667
 $ 279,108
 $ 121,078
 $ 54,321
 $ 52,399 $ 130,027

June 30, 2019

Non-derivative
financial
liabilities
Non-interest
bearing
liabilities
Lease liabilities
Floating interest
rate liabilities
Fixed interest
rate liabilities		 Weighted
Average
Interest
Rate(%)


1.04-2.00

0.98-4.73

0.83-3.16

 On Demand
or
Less than 1
Year



1-5 Years
$ -

273,343

7,221,600

9,203,000

$ 16,697,943
 5+ Years


$ 5,627,767
71,262
430,310

7,280,599

$ 13,409,938



$ -

205,288

-

-
$ 205,288

Additional information about the maturity analysis for lease liabilities:

Lease
liabilities
 Less than 1
Year		 Less than 1
Year		 1-5 Years 5-10 Years 5-10 Years 10-15
Years		 15-20
Years
 20+ Years
$ 71,262
 $ 273,343
 $ 106,945
 $ 51,093
 $ 47,250 $ -

  • 92 -

  • (2) Liquidity and interest rate risk tables for derivative financial liabilities

The following table details the Group’s liquidity analysis for its derivative financial instruments and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period.

June 30, 2020

June 30, 2020 June 30, 2020
On Demand
or
Less than
1 Month

Gross settled
Foreign exchange
forward
contracts
Inflows
$ 682,866
Outflows
(
679,866)

$ 3,000

December 31, 2019
On Demand
or
Less than
1 Month

Gross settled
Foreign exchange
forward
contracts
Inflows
$ 976,924
Outflows
(
972,818)

$ 4,106
 1-3 Months
$ 1,018,297
1,020,824)

$ 2,527)

1-3 Months
$ 1,557,083
1,552,082)

$ 5,001
3 Months to 1
Year

(
(
 $ 60,940
(
62,479)
($ 1,539)

3 Months to 1
Year
Gross settled
Foreign exchange
forward
contracts
Inflows

Outflows

(
(
(
(		 $ 28,793

29,358)
$ 565)
  • 93 -

June 30, 2019

On Demand

Gross settled
Foreign exchange
forward
contracts
Inflows

Outflows

 or
Less than
1 Month

$ 1,126,351
1,120,696)

$ 5,655
 1-3 Months
$ 1,475,818
1,476,275)

$ 457)
3 Months to 1
Year

(
(
(		 $ 16,479
(
17,083)
($ 604)

(3) Financing facilities

The Group relies on bank loans as a significant source of liquidity. As of June 30, 2020, December 31, 2019 and June 30, 2019, the unused amounts of bank loan facilities were as follows:

December 31, June 30, 2020 2019 June 30, 2019 Bank loan facilities Amount unused $ 29,390,130 $ 23,210,225 $ 26,078,530

35. TRANSACTIONS WITH RELATED PARTIES

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

  • a. Related parties’ names and relationships

Related Party Names Relationship with the Group Fujian Gulei Petrochemical Co., Ltd. Joint venture USI Education Foundation Other related party

  • 94 -

b. Donation expense (classified as general and administrative expenses)

For the Three For the Three For the Six For the Six Related Party Months Ended Months Ended Months Ended Months Ended Category/Name June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Other related party USI Education Foundation $ 1,000 $ 500 $ 8,250 $ 8,500

c. Management services income (classified as other income)

Related Party
Category/Name
Joint venture
 For the Three
Months Ended
June 30,2020
$ 7,289
For the Three
Months Ended
June 30,2019
$ 7,086
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019
$ 14,779
 $ 13,464
  • d. Other Receivables
Other Receivables
Related Party
Category/Name

Joint venture
 June 30,2020
$ 13,171
December 31,
2019

$ 16,494
 June 30,2019
$ 12,180
  • e. Compensation of key management personnel

The types and amounts of the remuneration of directors and other members of key management personnel were as follows:

Short-term employee
benefits
Post-employment
benefits
 For the Three
Months Ended
June 30,2020
$ 10,701


81

$ 10,782
For the Three
Months Ended
June 30,2019
$ 11,860

81
$ 11,941
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2020
For the Six
Months Ended
June 30,2019
For the Six
Months Ended
June 30,2019






$ 19,758

162

$ 19,920

$ 19,541
162
$ 19,703

Compensation of the board and other key management personnel depends on individual performance and market trend.

36. ASSETS PLEDGED AS COLLATERAL

The following assets were provided as guarantees for the tariff of imported raw materials, outward documentary bill, financing facilities, or the gas explosion case compensation:

  • 95 -

Pledged time deposits
(classified as financial
assets measured at
amortized cost)

Equity shares
Property, plant and
equipment
Investment properties, net
Land use rights (classified
as right-of-use assets)
Refundable deposits
(classified as other
non-current assets)
 June 30,2020
$ 677,573

-
3,750,596


108,178
28,105

60,200

$ 4,624,652
December 31,
2019

$ 659,923

-

3,802,055

108,178
31,666

93,105

$ 4,694,927
 June 30,2019 June 30,2019











$ 674,742
1,038,100
4,044,059
108,178
88,199
53,767
$ 6,007,045

37. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENT

  • a. As of June 30, 2020, December 31, 2019 and June 30, 2019, the Company’s unused letter of credit amounted to $1,540,610 thousand, $2,715,961 thousand and $3,237,154 thousand, respectively.

  • b. The following is regarding the subsidiary, CGTD, who was commissioned to operate LCY Chemical Corp.’s propene pi peline resulting in a gas explosion on July 31, 2014. The second instance judgment of criminal procedures was reached on April 24, 2020, whereby three employees of CGTD were all acquitted of the charges.

CGTD arrived at an agreement with the Kaohsiung Ci ty Government on February 12, 2015, to pledge certificates of bank deposits of $227,396 thousand (including interest) to Kaohsiung City Government as collateral for the losses caused by the gas explosion. Kaohsiung City Government also filed civil procedure requests in succession against LCY Chemical Corp., CGTD and

  • 96 -

CPC Corporation. Taiwan Power Company applied for provisional attachment against CGTD’s property on August 27 and November 26, 2015. CGTD has deposited $99,207 thousand in cash to the court, exempted from the provisional attachment. Taiwan Water Corporation also applied for provisional attachment against CGTD’s property on February 3 and March 2, 2017. As of July 31, 2020, the provisionally attached properties were worth $8,309 thousand.

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

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

As of July 31, 2020, the victims and victims’ families had written letters or filed civil lawsuits (including criminal lawsuits) against CGTD, LCY Chemical Corp. and CPC for compensation claims. To reduce the lawsuit costs, CGTD came to a compromise and reduced the original claim of $26,890 thousand and settled for a compensation amount of $4,019 thousand instead. The compensation amount still in the lawsuit and the settlement

  • 97 -

amount for the victims and the seriously injured as mentioned in the previous paragraph amounted to $3,876,234 thousand. The first-instance judgments of some of the abovementioned civil cases (with a total amount of compensation of approximately $1,360,916 thousand) have been gradually announced starting from June 22, 2018. The proportion of fault-based liabilities of the Kaohsiung City Government, LCY Chemical Corp. and CGTD is 4:3:3 in most of the case judgments. The total amount of compensation that CGTD, LCY Chemical Corp. and the other defendants are liable for was approximately $406,679 thousand , of which the court ruled an exemption for CGTD in the amount of $6,194 thousand. CGTD had filed an appeal in those civil cases which were announced but not yet settled and entered into the second-instance trials. CGTD had signed a settlement agreement with insurance companies, where based on CGTD’s proportion of fault-based liabilities in the first-instance judgment, an amount of $136,375 thousand, which is the amount of settlement and civil-case compensation for the victims and the seriously injured (including settled cases) after deducting the maximum insurance claims, was estimated and recognized as liability. However, the actual amount of the aforementioned settlement and compensation still depends on the future judgments of the remaining civil cases.

38. SIGNIFICANT CONTRACTS

  • a. TVCM along with CPC Corporation, Formosa Plastics Corporation, Mitsui Corp., signed a dichloromethane purchase agreement in which the purchase prices are calculated by the buyers and sellers in accordance with a pricing formula.

  • b. The Company and Asia Polymer Corporation (APC) entered into a joint venture contract for an investment of Fujian Gulei Petrochemical Co., Ltd. on April 17, 2014. The related entities of

  • 98 -

the contract or commitments are Ho Tung Chemical Corporation, LCY Chemical Corporation, HsinTay Petroleum Company Limited, Chenergy Global Corporation and Lien Hwa Industrial Corporation. The main contents of the contract and commitments include: (1) the shareholders shall establish Ever Victory Global Limited (hereinafter referred to as the “Joint Venture”) and agree to pass the establishment of the 100%-owned company named Dynamic Ever Investments Limited in Hong Kong, which purpose is to build oil refineries and produce seven products such as ethylene on the Gulei Peninsula in Zhangzhou, Fujian Province, as approved by the competent authorities of the Republic of China and according to the business operation permitted by the Joint Venture’s board of directors; and (2) Dynamic Ever Investments Limited will establish a joint venture company in accordance with the laws of the People’s Republic of China with Fujian Refining and Chemical Co., at Gulei Park located in Zhangzhou Fujian Province (“Gulei Company”) and acquire 50% interest of Gulei Company for cooperative investment.

Dynamic Ever Investments Limited and Fujian Refining and Chemical Co. signed “Fujian Gulei Petrochemical Corporation Limited Joint Venture Contract” which stipulated an increase in the investment amount, and this contract led to part of the original related contract entities being unable to keep their respective investment ratios as provided by the original contract or to participate in the subsequent capital increase procedures. In order to meet the business requirement of the original contract, the Company and APC resigned the joint venture contract on September 30, 2016 and added a new contractually promised related entity, CTCI Corp. On December 18, 2019, the Company and APC again resigned the joint venture contract and added new

  • 99 -

contractually promised related entities, Fubon Financial Holding Venture Capital Corporation and Hongfu Investment Co., Ltd.

In order to increase Gulei Company’s operating capital, Ever Victory Global Limited and Hong Kong Dor Po Investment Company Limited (“DOR PO”) signed a joint venture contract for an investment in Dynamic Ever Investment Limited on June 5, 2019. According to the contract, DOR PO would invest US$109,215 thousand in Dynamic Ever Investment Limited. As of June 30, 2020, DOR PO had invested US$99,108 thousand and held 14.7% ownership interest in Dynamic Ever Investment Limited.

As of December 31, 2018, the Company and APC had invested US$176,268 thousand (approximately $5,442,336 thousand) and US$103,240 thousand (approximately $3,190,905 thousand), respectively, in Ever Conquest Global Limited. Through Ever Conquest Global Limited, the Company and APC increased the capital in Ever Victory Global Limited and then reinvested in Dynamic Ever Investments Limited. The shareholding ratio of the joint venture was 77.5%. Dynamic Ever Investments Limited had invested RMB2,304,800 thousand in Gulei.

The Company and APC increased the investment in Ever Conquest Global Limited by US$35,201 thousand (approximately $1,109,563 thousand) and US$20,460 thousand (approximately $644,801 thousand), respectively, in May 2019. Through Ever Conquest Global Limited, the Company and APC increased the capital in Ever Victory Global Limited and then reinvested in Dynamic Ever Investments Limited. The shareholding ratio of the joint venture was 78.9% after the capital increase. Dynamic Ever Investments Limited invested RMB576,200 thousand in Gulei Company on June 26, 2019.

The Company and APC increased their investment in Ever Conquest Global Limited by US$35,201 thousand (approximately

  • 100 -

$1,094,082 thousand) and US$20,460 thousand (approximately $635,917 thousand), respectively, in August 2019. Through Ever Conquest Global Limited, the Company and APC increased the capital in Ever Victory Global Limited and then reinvested in Dynamic Ever Investments Limited. The shareholding ratio of the joint venture was 80.0% after the capital increase. Dynamic Ever Investments Limited invested RMB576,200 thousand in Gulei Company on August 15, 2019.

APC increased its investment in Ever Conquest Global Limited by US$18,832 thousand (approximately $570,606 thousand) in March 2020. Through Ever Conquest Global Limited, APC increased the capital in Ever Victory Global Limited and then reinvested in Dynamic Ever Investments Limited in April 2020. The shareholding ratio of the joint venture was 71.0% after the capital increase. Dynamic Ever Investments Limited invested RMB 900,000 thousand in the fifth phase of Gulei’s share on April 28, 2020.

c. Significant operating contracts

CGTD is commissioned to operate the storage and transportation of any items of petrochemical raw materials; operating service changes are calculated in accordance with the actual operation quantities and at the rate stated in the contracts. The petrochemical raw materials insurance expenses are borne by individual commissioned companies.

Commissioned Company
Taita Chemical Company, Ltd.
Taiwan VCM Corporation
USI Corporation
Asia Polymer Corporation		 Operation Contract
Period
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2020.12.31
2020.01.01-2020.12.31

(Continued)

  • 101 -
Commissioned Company
Formosa Plastic Corporation
Oriental Union Chemical Corporation
LCY Chemical Corporation
Taiwan Styrene Monomer Corporation
TSRC Corporation
NANTEX Industry Co., Ltd.
En Chuan Chemical Industries Co., Ltd.
Xin Long Guang Plastics Co., Ltd.		 Operation Contract
Period
2020.01.01-2021.12.31
2020.01.01-2020.12.31
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2021.12.31

The above contracts may be renewed after the expiry of the period.

39. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN

FOREIGN CURRENCIES

The group 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:

Unit: Foreign and Functional Currencies in Thousands

Foreign currency
assets		 June 30,2020
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 121,082
4,249
2,737
218,744
3,408
559
4,343,208
29.63（USD：NTD）


7.08（USD：RMB）

4.48（USD：MYR）

4.19（RMB：NTD）

0.14（RMB：USD）

20.34（AUD：NTD）

0.14（RMB：USD）		 $ 3,587,654
30,015
12,250
915,508
482
11,362
613,491		 $ 3,587,654

125,621

81,087

915,508

14,267

11,362
18,177,731
Monetary items
USD

USD
USD
RMB
RMB
AUD
Non-monetary
items
Joint ventures
accounted for
using the
equity method
RMB

(Continued)

  • 102 -
Derivative
USD sell
USD buy
USD sell
RMB sell
EUR sell
JPY buy
Foreign currency
l i a b i l i t i e s		 June 30,2020
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD

5,927

182

236

1,859

88

74

620,348

414,884

15,811

208,994

1,787

1,190

49

714

43
21,440
480
649
87,300
110
30,000

20,936

14,002

534

49,935

12,130

3,800
443

54,000

164
Monetary items
USD

USD

USD

RMB

Non-monetary
items
Derivative
instruments
USD sell

USD buy

USD sell
RMB sell

EUR sell

Foreign currency
assets
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency
$ 4,463,547
26,338
13,095
1,335,629
463
12,835
11,518		 NTD
$ 148,885
3,775
3,072
310,792
3,227
611
343		 29.98（USD：NTD）


6.98（USD：RMB）

4.26（USD：MYR）

4.30（RMB：NTD）


0.14（RMB：USD）
21.01（AUD：NTD）
33.59（EUR：NTD）		 $ 4,463,547

113,188

92,609
1,335,629

13,882

12,835

11,518
Monetary items
USD
USD
USD
RMB
RMB
AUD
EUR

(Continued)

  • 103 -
Non-monetary
items
Joint ventures
accounted for
using the
equity method
RMB
Derivative
instruments
USD buy
USD sell
USD sell
RMB sell
EUR sell
JPY buy
Foreign currency
l i a b i l i t i e s		 December 31,2019 December 31,2019
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency
495,903
23
11,784
136
1,083
28
1
1,019,462

94,955
3,142

115,276

1,395

2,741		 NTD
3,459,518
720
41,000
865
81,800
224
40,000



34,005

13,611
737

26,824

8,760

155,900
0.14（RMB：USD）
29.98（USD：NTD）
29.98（USD：NTD）

4.26（USD：MYR）

4.30（RMB：NTD）

4.78（EUR：MYR）

0.01（JPY：USD）
29.98（USD：NTD）


6.98（USD：RMB）


4.26（USD：MYR）

4.30（RMB：NTD）

29.98（USD：NTD）


4.30（RMB：NTD）

June 30,2019		 14,867,168

23

11,784

960

1,083

198

18
1,019,462

408,069

22,218

115,276

1,395

2,741
Monetary items
USD
USD
USD
RMB
Non-monetary
items
Derivative
instruments
USD buy
RMB sell
Foreign currency
assets
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 4,978,240

111,169

110,083
1,494,172

17,753

22,789

12,341

13,239
$ 160,279
3,579
3,544
330,715
3,931
5,730
566
374
31.06（USD：NTD）


6.87（USD：RMB）

4.30（USD：MYR）

4.52（RMB：NTD）


0.15（RMB：USD）

3.98（HKD：NTD）

21.80（AUD：NTD）

35.38（EUR：NTD）		 $ 4,978,240
24,606
15,251
1,494,172
572
22,789
12,341
13,239
Monetary items
USD

USD
USD
RMB
RMB
HKD
AUD
EUR

(Continued)

  • 104 -
Non-monetary
items
Joint ventures
accounted for
using the
equity method
RMB

Derivative
instruments
USD sell
USD buy
USD sell
RMB sell
EUR sell
Foreign currency
l i a b i l i t i e s		 June 30,2019
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 2,891,047
21,130
7,600
1,156
195,000
185

36,580

13,335

38,197

19,020

43,100

40,000
0.15（RMB：USD）


31.06（USD：NTD）

31.06（USD：NTD）

4.30（USD：MYR）

4.52（RMB：NTD）

4.90（EUR：MYR）

31.06（USD：NTD）


6.87（USD：RMB）


4.52（RMB：NTD）


31.06（USD：NTD）


4.52（RMB：NTD）


0.01（JPY：USD）
 $ 420,534
7,916
1,764
1,156
4,452
185
1,136,165

91,674

172,574

3,369

283

372		 $13,061,796

7,916

1,764

485

4,452

63
1,136,165

414,183

172,574

3,369

283

26
Monetary items
USD

USD

RMB

Non-monetary
items
Derivative
instruments
USD sell

RMB sell

JPY buy

For the three months ended June 30, 2020 and 2019, realized and unrealized net foreign exchange (losses) and gains were $(62,459) thousand and $32,528 thousand, respectively, and for the six months ended June 30, 2020 and 2019 were $(37,087) thousand and $104,583 thousand, respectively. It is impractical to disclose net foreign exchange gains by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

  • 105 -

40. SEPARATELY DISCLOSED ITEMS

  • a. Information on significant transactions and b. Information on reinvestment business:

    • 1) Financing provided to others. (Table 1)

    • 2) Endorsements/guarantees provided. (Table 2)

    • 3) Marketable securities held (excluding investment in subsidiaries, associates and joint ventures). (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. (Table 4)

    • 5) Acquisitions of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (None)

    • 6) Disposals of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital. (None)

    • 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)

    • 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 6)

    • 9) Trading in derivative instruments. (Notes 7 and 34)

    • 10) Others: Intercompany relationships and significant intercompany transactions. (Table 9)

    • 11) Information on investees. (Table 7)

  • c. Information on investments in mainland China

    • 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of

  • 106 -

investment income, and limit on the amount of investment in the mainland China area. (Table 8)

  • 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: (Table 10)

    • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period. (None)

    • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period. (Tables 5 and 6)

    • c) The amount of property transactions and the amount of the resultant gains or losses. (None)

    • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes. (Table 2)

    • e) The highest balance during the period, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds. (Table 1)

    • 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 receipt of services. (None)

  • d. Information on main shareholders: Names of shareholders with a shareholding ratio of more than 5%, and numbers and ratios of shares held. (Table 11)

  • 107 -

41. SEGMENT INFORMATION

The Group provides its chief operating decision maker with details on about allocated resources and assessed segment information which focus on each financial group entity’s information. The Group’s reportable segment related information is detailed as follows:

a. Reportable segment income information

Segment income

Interest income
Finance costs

Depreciation and
amortization
Impairment loss
Reportable segment
profit before tax
Reportable segment
tax expense
Reportable segment
net profit
Segment income

Interest income
Finance costs

Depreciation and
amortization
Impairment loss
Reportable segment
profit (loss) before tax
Reportable segment
tax expense
Reportable segment
net profit (loss)		 For the Six Months EndedJune 30,2020 Months EndedJune 30,2020
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 4,570,722
3,999
(
56,762 )
(
311,048 )
-
552,917
(
41,117 )
511,800		 $ 5,878,270
3,076
(
4,657 )
(
342,084 )
-
347,025
(
64,476 )
282,549		 $ 6,524,985
13,904
(
14,814 )
(
103,927 )
-
615,680
(
144,853 )
470,827
For the Six		 $ 2,211,373
26,903
(
16,988 )
(
190,444 )

-
536,860
(
92,908 )
443,952		 $ 22,919,671
60,372
(
126,955 )
(
1,201,670 )
(
6,398 )
2,538,115
(
433,995 )
2,104,120
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 5,457,769
10,736
(
61,822 )
(
231,638 )
-
809,068
(
113,007 )
696,061		 $ 7,582,278
10,035
(
6,053 )
(
315,713 )
-
289,110
(
54,811 )
234,299		 $ 9,081,896
12,762
(
28,592 )
(
105,270 )
-
415,257
(
109,667 )
305,590		 $ 1,035,942
5,801
(
10,662 )
(
105,476 )
-
(
39,046 )
(
9,755 )
(
48,801 )		 $ 3,395,312
8,302
(
26,794 )
(
150,667 )
(
293 )

412,875
(
71,865 )

341,010		 $ 2,340,691
34,520
(
24,444 )
(
203,822 )
(
14,131 )
439,931
(
70,343 )
369,588		 $ 28,893,888
82,156
(
158,367 )
(
1,112,586 )
(
14,424 )
2,327,195
(
429,448 )
1,897,747

b. Reportable segment income and other major adjustments of items

1. Segment income and operating results

Reportable segment net
profit before tax
Reportable segment tax
expense
Reportable segment profit
after tax
Other non-reportable
segment profit
Less: Profit between
segments
Profit from continuing
operations
Profit from discontinued
operations
Net profit after tax		 For the Six Months
EndedJune 30,2020
$ 2,001,255
(
341,087)
1,660,168
443,952
(
793,225)
1,310,895

1,456
$ 1,312,351		 For the Six Months
EndedJune 30,2019		 For the Six Months
EndedJune 30,2019

(

(
(

(


 $ 1,887,264

359,105)
1,528,159
369,588

614,558)
1,283,189
4,397
$ 1,287,586
  • 108 -

2. Other significant items reconciliation

Interest
income
Finance costs
Depreciation
and
amortization
Impairment
loss
Interest
income
Finance costs
Depreciation
and
amortization
Impairment
loss		 For the Six Months EndedJune 30,2 020
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 3,999
(
56,762 )
(
311,048 )
-		 $ 3,076
(
4,657 )
(
342,084 )

-		 $ 13,904
(
14,814 )
(
103,927 )

-
For		 $ 6,748
(
9,195 )
(
97,395 )
(
5,823 )
the Six Months		 $ 5,742
(
24,539 )
(
156,772 )
(
575 )
EndedJune 30,2		 $ 26,903
(
16,988 )
(
190,444 )

-
019		 $ -

1,722

29,150

-		 $ 60,372
(
125,233 )
( 1,172,520 )
(
6,398 )
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 10,736
(
61,822 )
(
231,638 )
-		 $ 10,035
(
6,053 )
(
315,713 )

-		 $ 12,762
(
28,592 )
(
105,270 )

-		 $ 5,801
(
10,662 )
(
105,476 )

-		 $ 8,302
(
26,794 )
(
150,667 )
(
293 )		 $ 34,520
(
24,444 )
(
203,822 )
(
14,131 )		 $ -

1,942

27,961

-		 $ 82,156
(
156,425 )
( 1,084,625 )
(
14,424 )

Since the Group had not offered information about assets of individual operating segments to the operational decision maker, no such information from the individual operating segments is included in the segment information.

  • 109 -

USI CORPORA TIO N A ND SU BSIDIA R IES

(Acme Electronics Corporation (A CME)) FINA NCING P ROV IDED TO OTHERS

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 1-1

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

No. Lender Borrower Financial
Statement
Account		 Related
Party		 Highest Balance
for the Period (Note 3)		 Ending Balance
(Notes 3 and 4)		 Actual
Borrowing
Amount
(Notes 3 and 4)		 Interest
Rate
(%)		 Nature of
Financing
(Note 2)		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment Loss		 Collateral Collateral Financing Limit
for Each
Borrower
(Note 1)
 Aggregate
Financing Limit
(Note 1)		 Remark
I
t
e
m		 V
a
l
u
e
0 Acme Electronics
Corporation		 ACME Electronics
(Cayman) Corp.
Other
receivables -
related
parties
Yes		 $ 241,800
( USD 8,000 thousand )		 $ 207,410
( USD 8,000 thousand )		 $ 207,410
( USD 7,000 thousand )		 2.13488~
3.68375		 2 $ - Business
turnover		 $ - － － $ 497,320 $ 497,320

Note 1: Total fi nancing amo unt s p rovide d t o othe rs shall not excee d 40% of A CME’s net value , a nd the highest aggregate fi nanc ing limits were calculated by t h e net value as of Ju ne 30, 2020 . Note 2: The natu re of financi ng is provi de d as follow s :

a. Busine ss relatio nship is coded “1”.

  • b. For short-t erm fi nancing is c ode d “2”.

Note 3: The a mo unt was calculated u sing t he spot ex c hange rate as of Ju ne 30, 2020 .

Note 4: All t he t ransactio ns were writte n -o ff w he n p re paring t he c ons olidate d fi nancial state me nts .

  • 110 -

USI CORPORA TIO N A ND SU BSIDIA RIES

(Swan son Plastics Corporation (SPC))

FINA NCING P ROV IDED TO OTHERS

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 1-2

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherw i se)

No. Lender Borrower Financial
Statement
Account		 Related
Party		 Highest Balance
for the Period (Note 3)		 Ending Balance
(Notes 3 and 4)		 Actual
Borrowing
Amount
(Notes 3 and 4)		 Interest
Rate
(%)		 Nature of
Financing
(Note 2)		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment Loss		 Collateral Collateral Interest Rate
(%)
 Nature of
Financing
(Note 2)		 Business
Transacti
on
Amounts
I
t
e
m		 V
a
l
u
e
0
1
2		 Forever Young
Company
Limited
ASK-Swanson
(Kunshan) Co.,
Ltd.
Swanson Plastics
(Singapore) Pte.,
Ltd.		 Swanson
International Ltd.
Swanson
Plastics
(Tianjin) Co., Ltd.
PT. Swanson
Plastics Indonesia		 Other
receivables
-
related
parties

Other
receivables
-
related
parties
Other
receivables
-
related
parties
Yes

Yes

Yes		 $ 93,926
188,478
30,020		 $ 92,001
179,968
29,630		 $ 92,001
179,968
29,630		 -
4.15~4.25
2.50		 2
2
2		 $ -
-
-		 Business
turnover
Business
turnover
Business
turnover		 $ -
-
-		 －
－
－		 －
－
－		 $ 137,005
506,275
382,542		 $ 205,508

506,275

382,542

Note 1: The li mits of fina ncing provi ded to ot hers ba s ed on the total a mou nt of fu nds le ndi ng to ot hers and the li mits of i ndivi dual objects set by the companie s.

Note 2: The natu re of financi ng is provi de d as follow s :

  • a. Busine ss relatio nship is coded “1”.

  • b. For short-t erm fi nancing is c ode d “2”.

Note 3: The a mo unt was calculated u sing t he spot ex c hange rate as of Ju ne 30, 2020 .

Note 4: All t he t ransactio ns were writte n -o ff w he n p re paring t he c ons olidate d fi n ancial state me nts .

  • 111 -

USI CORPORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Company, Limite d ( TTC)) FINA NCING P ROV IDED TO OTHERS

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 1-3

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

No. Lender Borrower Financial
Statement
Account		 Related
Party		 Highest Balance
for the Period
(Note 4)		 Ending Balance
(Notes 4 and 5)		 Actual
Borrowing
Amount
(Notes 4 and 5)		 Interest
Rate (%)		 Nature of
Financing
(Note 3)		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment Loss		 Collateral Collateral Financing Limit
for Each
Borrower
(Notes 1,2 and 4)
 Aggregate
Financing Limit
(Notes 1, 2 and 4)		 Remark
I
t
e
m		 V
a
l
u
e
1 Taita Chemical
(Zhongsan) Co.,
Ltd.		 Taita Chemical
(Tianjin) Co., Ltd.		 Other
receivables
– related
parties
Yes		 $ 230,192
( RMB
55,000
thousand
)		 $ 62,780
( RMB
15,000
thousand
)		 $ 62,780
( RMB
15,000
thousand
)		 5.0025 2 $ - Business
turnover		 $ - － － $ 2,425,707 $ 2,425,707

Note 1: The total a mou nt of le ndi ng to TTC for fu nding of a s hort - term pe riod s hall not e xcee d 40% of the net wort h of TTC. As of Ju ne 30, 2020, TTC di d not loan fu nds to anyone.

Note 2 : The t otal amo unt of le nding t o a co mpany f or funding of short -t erm period s hall not e xcee d 40% of t he audite d net worth of Taita Chemical ( Zhongsan) Co., Ltd. The restriction does not a pply t o the su bsi diaries whose voti ng sha re s are 100% ow ned, directl y or indirectly, by TTC. A s of June 30, 2020, the au dited net worth of Taita Chemical (Z hongsan) Co., Lt d. was RMB579,575 thousa nd.

Note 3: The natu re of financi ng is provi de d as follow s :

a. Busine ss relatio nship is coded “1”.

  • b. For short-t erm fi nancing is c ode d “2”.

Note 4: The a mo unt was calculated u sing t he spot ex c hange rate as of Ju ne 3 0, 2020.

Note 5: All t he t ransactio ns were writte n -o ff w he n p re paring t he c ons olidate d fi nancial state me nts .

  • 112 -

USI CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 2 

單位：除另予註明者外
，為新台幣仟元
No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 1)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period
(Note 2)		 Outstanding
Endorsement/
Guarantee at
the End of the
Period
(Note 2)		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed by
Collateral		 Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity in
Latest
Financial
Statements
(%)		 Aggregate
Endorsement/
Guarantee
Limit
(Note 1)		 Endorsement
/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries		 Endorsement
/
Guarantee
Given by
Subsidiaries
on
Behalf of
Parent		 Endorsement
/
Guarantee
Given on
Behalf of
Companies in
Mainland
China
Remark

Name		 Relationship
0
0		 USI Corporation
USI Corporation		 Union Polymer Int'l
Investment Corp.
Chong Loong
Trading Co., Ltd.		 Subsidiary which
directly held
more than 50% of
ordinary shares
Subsidiary which
directly held
more than 50% of
ordinary shares		 $ 11,080,490
11,080,490		 $ 3,600,000

316,300
( USD
10,000
thousand)
( NTD
20,000
thousand
)		 $ 3,600,000
316,300
( USD
10,000
thousand)
( NTD
20,000
thousand
)		 $ 1,641,000
-		 $ -

-
19.49

1.71		 $ 11,080,490
11,080,490		 Yes
Yes		 No
No		 No
No

Note 1: Both total endorsements/guarantees provided amounts and the amount of endorsements/guarantees for an individual entity shall not exceed 60% of the Company’s net value. The maximum amount of endorsement/guarantees was calculated based on n et value as of June 30, 2020.

Note 2: The amount was calculated using the spot exchange rate as of June 30, 2020.

  • 113 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 2-1

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

No. Endorser/Guaranto
r		 Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period
(Note 3)		 Outstanding
Endorsement/
Guarantee at
the End of the
Period
(Note 3)		 Actual
Borrowing
Amount (Note 3)		 Amount
Endorsed/
Guaranteed by
Collaterals		 Ratio of
Accumulated
Endorsement
/
Guarantee to
Net Equity in
Latest
Financial
Statements
(%) (Note 1)		 Aggregate
Endorsement/
Guarantee
Limit
(Note 2)		 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		 Remark
Name Relationship
0 Acme Electronics
Corporation		 Acme Electronics
(Kunshan) Co.,
Ltd.
Acme Electronics
(Guang-Zhou)
Co., Ltd.		 Subsidiary of
ACME
(Cayman)
Subsidiary of
GAEL		 $ 1,864,949
1,864,949		 $ 363,000
( USD12,000
thousand
)

152,250
( USD
5,000
thousand
)		 $ 266,670
( USD
9,000
thousand
)
148,150
( USD
5,000
thousand
)		 $ 118,520
( USD
4,000
thousand
)
-		 $ -

-
21.45

11.92		 $ 2,486,598
2,486,598		 No
No		 No
No		 Yes
Yes

Note 1: The rate was calculated by the ending balance of equity of the endorse r/guarantor as of June 30, 2020.

Note 2: The maximum amount of total endorsement/guarantee shall not exceed 200% of the equity attributable to owners of the e ndorser/guarantor. The maximum amount of endorsement/guarantee for an individual entity shall not exceed 150% of the equity attributable to owners of the endorser/guarantor. The maximum amount of endorsement/guarantee was calcul ated based on the equity of the endorser/guarantor as of June 30, 2020.

Note 3: The foreign currency amount was calculated based on the spot exchange rate as of June 30, 2020.

  • 114 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SPC))

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 2-2

(In Thousands of New Taiwan Dollars, Unless Stated Otherw ise)

No. Endorser/Guaran
tor		 Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 1)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at
the End of the
Period
(Note 2)		 Actual
Borrowing
Amount (Note 2)		 Amount
Endorsed/
Guaranteed by
Collateral		 Ratio of
Accumulated
Endorsement
/
Guarantee to
Net Equity in
Latest
Financial
Statements
(%)		 Aggregate
Endorsement/
Guarantee
Limit
(Note 1)		 Endorseme
nt/
Guarantee
Given by
Parent on
Behalf of
Subsidiarie
s		 Endorseme
nt/
Guarantee
Given by
Subsidiarie
s
on Behalf
of
Parent		 Endorseme
nt/
Guarantee
Given on
Behalf of
Companies
in
Mainland
China
Remark
Name Relationship
0
0
0
0
0
0
0
0		 Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation
Swanson Plastics
Corporation		 Forever Young
Co., Ltd.
Swanson Plastics
(Singapore)
Private Limited
Swanson Plastics
(Malaysia) Sdn.
Bhd.
Swanson Plastics
(Kunshan) Co.,
Ltd.
Swanson
Technologies
Corporation
Swanson Plastics
(India) Private
Limited
Swanson Plastic
(Tianjin) Co.,
Ltd.
PT. Swanson
Plastics
Indonesia		 Subsidiary
Subsidiary
Sub-subsidiary
Sub-subsidiary
Subsidiary
Sub-subsidiary
Sub-subsidiary
Subsidiary		 $ 4,983,178
4,983,178
4,983,178
4,983,178
4,983,178
4,983,178
4,983,178
4,983,178		 $ 1,875,850

54,078

36,300

121,000

138,650

90,750

60,500

60,500		 $ 1,841,502
53,038
35,556
88,890
137,038
29,630
29,630
59,260		 $ 26,667
177
-
-
115,000
-
-
-		 $ -
-
-
-
-
-
-
-		 73.91
2.13
1.43
3.57
5.50
1.19
1.19
2.38		 $ 6,228,973
6,228,973
6,228,973
6,228,973
6,228,973
6,228,973
6,228,973
6,228,973		 No
No
No
No
No
No
No
No		 No
No
No
No
No
No
No
No		 No
No
No
Yes
No
No
Yes
No

Note 1: The amount of endorsements/guarantees for an indivi dual entity shall not exceed 200% of SPC’s equity. The maximum amount of total endorsements/guarantees shall not exceed 250% of SPC’s

equity.

Note 2: The foreign currency amount was calculated based on the spot exchange rate as of June 30, 2020.

  • 115 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC)) ENDORSEMENTS/GUARANTEES PROVIDED FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 2-3

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

No. Endorser/Guaranto
r		 Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at
the End of the
Period		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed by
Collateral		 Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity in
Latest
Financial
Statements
(%) (Note 1)		 Aggregate
Endorsement/
Guarantee
Limit
(Note 2)		 Endorsem
ent/
Guarante
e
Given by
Parent on
Behalf of
Subsidiari
es		 Endorsem
ent/
Guarante
e
Given by
Subsidiari
es
on Behalf
of
Parent		 Endorsem
ent/
Guarante
e
Given on
Behalf of
Compani
es in
Mainland
China
Remark
Name Relationshi
p
0 China General
Plastics
Corporation		 CGPC Polymer
Corporation		 Subsidiary $ 4,955,322 $ 2,200,000 $ 2,150,000 $ 564,815 No 26.03 $ 8,258,870 No No No

Note 1: The ratio was calculated by the ending balance of equ ity of CGPC as of June 30, 2020.

Note 2: The total amount of guarantee that may be provided by CGPC shall not exceed 100% of CGPC’s net worth stated on its latest financial statement. The amount of guarantee that may be provided by CGPC to any individual entity shall not exceed 60% of CGPC’s net worth stated on its latest financial statement.

  • 116 -

USI CORPORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Company , Ltd. ( TTC)) END ORSEMENTS/ GUARA NTEES P ROV IDED

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 2-4

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee Given
on Behalf of
Each Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period
(Note 1)		 Outstanding
Endorsement/
Guarantee at the
End of the Period
(Note 1)		 Actual
Borrowing
Amount
(Note 1)		 Amount
Endorsed/
Guaranteed by
Collateral		 Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Latest
Financial
Statements
(%)		 Aggregate
Endorsement/
Guarantee Limit
(Note 2)		 Endorsem
ent/
Guarantee
Given
by Parent
on
Behalf of
Subsidiari
es		 Endorsem
ent/
Guarantee
Given
by
Subsidiari
es
on Behalf
of
Parent		 Endorsem
ent/
Guarantee
Given
on Behalf
of
Companie
s in
Mainland
China		 Remark
Name Relationship
0
0		 Taita Chemical
Company, Ltd.
Taita Chemical
Company, Ltd.		 TAITA (BVI) Holding
Co., Ltd.
Taita Chemical
(Zhongsan) Co., Ltd.		 Subsidiary with 100%
held ordinary shares

Subsidiary whose
ordinary shares were
100% held by TTC’s
subsidiaries		 $ 4,601,265
4,601,265		 $ 1,577,790
( USD33,000 thousand
)
( NTD
600,000
thousand
)
209,265
( RMB50,000 thousand
)		 $ 1,577,790
( USD33,000 thousand
)
( NTD
600,000
thousand
)
209,265
( RMB50,000 thousand
)		 $ 779,862
( USD26,320 thousand
)
-		 $ -
-		 34.29
4.55		 $ 6,091,897
6,091,897		 No
No		 No
No		 No
Yes

Note 1: The a mo unt was calculated at t he spot ex c hange rate as of Ju ne 30, 2020 .

Note 2: The ceilings to TTC o n t he total amount of e ndorseme nts /guarantee s a nd t he a mount of e ndorse me nts/ guara ntees to a ny individual e ntity pe rmitte d shall not exc eed 150% of TTC ’s net w ort h. The ceilings t o TTC and it s subsi diaries o n t he t otal amou nt of e ndors eme nts/ gua rantees and t he a mou nt of endorse ment s/ guara ntees t o any i ndivi dual e ntity pe rmitte d shall not excee d 200 % of TTC’s net w orth .

  • 117 -

USI CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

JUNE 30, 2020

TABLE 3

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

Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
USI Corporation Shares
CTCI Corporation
KHL IB Venture Capital Co., Ltd.
AU Optronics Corporation
Evergreen Marine Corp.
ITE Tech. Inc.
Unimicron Technology
Corporation
G.M.I. Technology Inc.
United Renewable Energy Co.,
Ltd.
Teratech Corp.		 －

－
－
－
－
－		 Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
non-current		 15,130,656
12,799,902
8,514,006
1,753,251
302,000
300,000
1,430,000
229,580
110,000		 $ 590,095

231,079

78,840

18,847

18,603

15,030

21,879

1,501

-
1.98
11.90

0.09

-

-

-

-

-

-		 $ 590,095
231,079
78,840
18,847
18,603
15,030
21,879
1,501
-

Note 2

(Continued)

  • 118 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Beneficiary certificates
Cathay Taiwan Money Market
Fund
Fuh Hwa Money Market Fund
Nomura Taiwan Money Market
Fund
FSITC Taiwan Money Market
Hua Nan Kirin Money Market
Fund
CTBC Hwa-win Money Market
Fund
Taishin Ta-Chong Money Market
Fund
Capital Money Market Fund
Mega Diamond Money Market
Fund
FSITC Money Market Fund
Prudential Financial Money
Market Fund
Taishin 1699 Money Market
Fund		 －
－
－
－
－
－

－
－
－
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 3,995,461
2,823,264
3,045,605
10,227,799
4,151,066
13,817,615
3,289,935
2,920,509
19,933,652
860,625
3,162,215
13,950,979		 $ 50,000

41,000

50,000

157,540

50,000

153,224

47,032

47,419

251,652

154,510

50,352

190,003
-

-

-

-

-

-

-

-

-

-

-

-		 $ 50,000
41,000
50,000
157,540
50,000
153,224
47,032
47,419
251,652
154,510
50,352
190,003

(Continued)

  • 119 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Deutsche Far Eastern DWS
Taiwan Money Market Fund
Jih Sun Money Market Fund		 － Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 596,883
16,833,145		 $ 7,027

251,108
-

-		 $ 7,027
251,108		 Note 2
Note 2
Note 2
Union Polymer Int'l
Investment Corp.
Swanlake Traders Ltd.		 Beneficiary certificates
Cathay No. 1 Real Estate
Investment Trust Fund
Shares
Asia Polymer Corporation
China General Plastics
Corporation
Taita Chemical Company, Ltd.
Shares
SOHOware Inc.
TGF Linux Communications Inc.
Neurosky Inc. Preferred D		 －
Equity-method investee
Equity-method investee
Equity-method investee
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current		 3,290,000
20,711,939
4,053,793
383,520
1,150,000
300,000
2,397,364		 $ 55,930

384,207

74,792

5,446

-

-

-
-

3.74

0.77

0.11

1.05

2.14

0.70		 $ 55,930
384,207
74,792
5,446
-
-
-

(Continued)

  • 120 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
USIFE Investment Co., Ltd. Shares
AU Optronics Corporation
AU Optronics Corporation
Wafer Works Corporation
Solargiga Energy Holdings Ltd.
Dah Chung Bills Finance
Corporation
Swanson Plastics Corp.
USI Optronics Corporation
Digimax, Inc.
Silicon Technology Investment
(Cayman) Corp.		 －
－
－
－
－
Investor company and
investee have the
same chairman
Investor company and
investee have the
same chairman
－
－		 Financial assets at fair value
through other
comprehensive income -
current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current		 1,266,061
1,266,061
3,001,655
11,876,111
470,914
6,999,728
165,279
23,234
911,849		 $ 11,724

11,724

100,255

3,026

6,842

94,916

372

-

43,533
0.01

0.01

0.59

0.37

0.10

4.54

0.25

0.05

1.77		 $ 11,724
11,724
100,255
3,026
6,842
94,916
372
-
43,533

(Continued)

  • 121 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
China General Plastics
Corporation
Asia Polymer Corporation
Taita Chemical Company, Ltd.
Evergreen Marine Corp.
ITE Tech. Inc.
Unimicron Technology
Corporation
G.M.I. Technology Inc.
United Renewable Energy Co.,
Ltd.		 Investor company and
investee have the same
chairman
Investor company and
investee have the same
chairman
Investor company and
investee have the same
chairman
－
－
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 472,511
1,577,809
1,163,206
584,416
150,000
150,000
470,000
2,474,681		 $ 8,718

29,268

16,518

6,282

9,240

7,515

7,191

16,185
0.09

0.28

0.35

0.01

0.09

0.01

0.40

0.09		 $ 8,718
29,268
16,518
6,282
9,240
7,515
7,191
16,185
Acme Electronics Corp.
Superactive Group Company
Limited
Beneficiary certificates
Yuanta De-Li Money Market
Fund
Cathay Taiwan Money Market
Fund		 Investor company and
investee have the same
chairman
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 500,000
678,000
1,870,081
5,151,207		 $ 5,075

516

30,688

64,463
0.27

-

-

-		 $ 5,075
516
30,688
64,463

(Continued)

  • 122 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Taiwan United Venture Capital
Corp.
Beneficiary certificates
Fuh Hwa Money Market Fund
Shares
Innovation & Infinity Global
Corp.
Teratech Corp.
United Renewable Energy Co.,
Ltd.
Mitac Holdings Corp.
Chitec Technology Co., Ltd.
Leadwell Cnc Machines Mfg.,
Corp.
Digimax, Inc.
Orgchem Technology, Inc.		 －
－
－
－
－
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss –
non-current
Financial assets at fair value
through profit or loss –
non-current
Financial assets at fair value
through other
comprehensive income -
current
Financial assets at fair value
through other
comprehensive income -
current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current		 3,399,556
720,804
90,000
4,611,242
1,841,072
381,906
419,753
518,898
594,594		 $ 49,369

-

-

30,157

59,651

10,495

15,145

-

8,972
-

0.73

0.58

0.17

0.17

1.37

0.68

1.18

1.09		 $ 49,369
-
-
30,157
59,651
10,495
15,145
-
8,972		 Note 2
Note 2

(Continued)

  • 123 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Taiwan United Venture
Management Corp.
Inoma Corporation
USI Optronics Corporation		 Hexawave, Inc.
Uranus Chemicals Co., Ltd.
Neuro Sky, Inc. Preferred A
Neuro Sky, Inc. Preferred B
Neuro Sky, Inc. Preferred C
Beneficiary certificates
Fuh Hwa Money Market Fund
Beneficiary certificates
Taishin 1699 Money Market
Fund
Beneficiary certificates
Jih Sun Money Market Fund
Taishin 1699 Money Market
Fund
Yuanta De-Bao Money Market
Fund		 －
－
－
－
－
－
－
－
－
－		 Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through other
comprehensive income –
non-current
Financial assets at fair value
through profit or loss –
current
Financial assets at fair value
through profit or loss –
current
Financial assets at fair value
through profit or loss –
current
Financial assets at fair value
through profit or loss –
current
Financial assets at fair value
through profit or loss –
current		 109,109
12,610
10,000,000
12,595,523
4,532,823
91,730
759,460
1,016,620
1,701,120
1,412,688		 $ 939

260

-

-

-

1,332

10,343

15,166

23,168

17,080
0.15

0.03

1.42

1.78

0.64

-

-

-

-

-		 $ 939
260
-
-
-
1,332
10,343
15,166
23,168
17,080		 Note 2
Note 2
Note 2

(Continued)

  • 124 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
USI Management Consulting
Corporation		 Beneficiary certificates
Eastspring Investments Well
Pool Money Market Fund		 － Financial assets at fair value
through profit or loss –
current		 2,577,806 $ 35,013
-		 $ 35,013

Note 1: All securities in the table include stocks, bonds, beneficiary certificates and items derived above which are regulat ed by IFRS 9 “Financial Instruments”. Note 2: The amount is already recognized as impairment losses. Note 3: Please refer to Tables 7 and 8 for detailed information on subsidiaries and associates.

  • 125 -

USI CORPORATION AND SUBSIDIARIES (China General Plastics Corporation (CGPC)) MARKETABLE SECURITIES HELD JUNE 30, 2020

TABLE 3-1

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

Holding Company Name
Type and Name of Marketable
Securities		 Relationship with the
Holding
Company		 Financial Statement Account June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership (%)		 Fair Value
China General Plastics
Corporation

Taiwan VCM
Corporation
 Closed-end fund beneficiary
certificates
Cathay No. 1 Real Estate
Investment Trust
Open-end fund beneficiary certificates
Shin Kong Chi-Shin
Money-Market Fund
Capital Money Market Fund
FSITC Taiwan Money Market
Nomura Taiwan Money Market
Fund
CTBC Hwa-win Money Market
Fund
Shares
KHL IB Venture Capital Co., Ltd.
Open-end fund beneficiary certificates
Taishin 1699 Money Market Fund
CTBC Hwa-win Money Market
Fund
Hua Nan Phoenix Money Market
Fund
Nomura Taiwan Money Market
Fund		 －

－
－
－
－
－
－

－
－
－
－		 Financial assets at fair value
through profit or loss
-
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through profit or loss
-
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current

2,668,000
5,841,399
2,586,764
2,532,172
1,827,998
2,617,140


7,664,611


10,068,950
9,926,512
6,117,555
4,876,763		 $ 45,356
91,006
42,001
39,003
30,010
29,021
138,346
137,132
110,075
100,070
80,062		 -
-
-
-
-
-
5.95
-
-
-
-		 $ 45,356
91,006
42,001
39,003
30,010
29,021
138,346
137,132
110,075
100,070
80,062		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1

(Continued)

  • 126 -
Holding Company Name
Type and Name of Marketable
Securities		 Relationship with the
Holding
Company		 Financial Statement Account June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership (%)		 Fair Value
Hua Nan Kirin Money Market
Fund
FSITC Taiwan Money Market
Fund
Capital Money Market Fund
Eastspring Investments Well Pool
Money Market Fund

Prudential Financial Money
Market Fund
Shin Kong Chi-Shin
Money-Market Fund
Fuh Hwa Money Market
Cathay Taiwan Money Market
Fund
Taishin Ta-Chong Money Market
Fund
FSITC Money Market Fund
UPAMC James Bond Money
Market Fund
Shares
Asia Polymer Corporation		 －
－
－
－
－
－
－
－
－
－
－
The major shareholders
are the same as the
those of CGPC		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through other comprehensive
income - non-current		 5,816,148
3,249,391
3,081,132
3,654,597
3,140,723
3,209,902
3,443,550
3,996,068
3,362,074
55,731
594,792

121,611		 70,056
50,051
50,028
50,026
50,009
50,008
50,008
50,008
48,063
10,006
10,002
2,256		 -
-
-
-
-
-
-
-
-
-
-
0.02		 70,056
50,051
50,028
50,026
50,009
50,008
50,008
50,008
48,063
10,006
10,002
2,256		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1

(Continued)

  • 127 -
Holding Company Name
Type and Name of Marketable
Securities		 Relationship with the
Holding
Company		 Financial Statement Account June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership (%)		 Fair Value
CGPC Polymer
Corporation
CGPC（BVI）Holding
Co., Ltd.		 Open-end fund beneficiary certificates
FSITC Money Market
Capital Money Market Fund
Hua Nan Phoenix Money Market
Fund
Taishin 1699 Money Market Fund
Shares
Teratech Corp.
SOHOware, Inc. - preference
shares
－
－
－
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current

317,525
3,079,671
3,056,664
1,608,733
112,000
100,000		 $ 57,006
50,004
50,000
21,910
-
-		 -
-
-
-
0.67
-		 $ 57,006
50,004
50,000
21,910
-
-		 Note 1
Note 1
Note 1
Note 1
Notes 1 and 3
Notes 1, 2 and 3

Note 1: The marketable securities were not pledged as guarantees or collateral for borrowings and not subject to restr ictions.

Note 2: The preference shares are not used in the calculation of shareholding ratio and net worth.

Note 3: As of June 30, 2020, CGPC evaluated the fair value of equity impairments as $0.

Note 4: Please refer to Tables 7-3 and 8-3 for detailed information on subsidiaries and associates.

  • 128 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd. (TTC))

MARKETABLE SECURITIES HELD

JUNE 30, 2020

TABLE 3-2

(In thousands of New Taiwan Dollars, unless stated otherwise)

Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Taita Chemical
Company, Ltd.
 Shares
USI Corporation－ordinary shares
Harbinger Venture Capital－ordinary
shares
Beneficiary securities
Cathay No. 1 Real Estate Investment
Trust Fund
Beneficiary certificates
Mega Diamond Money Market Fund
FSITC Money Market Fund
Prudential Financial Money Market
Fund
Hua Nan Phoenix Money Market
Fund
Capital Money Market Fund
Jih Sun Money Market Fund
Taishin Ta-Chong Money Market
Fund
CTBC Hwa-win Money Market Fund
Special Account
Taishin 1699 Money Market Fund		 Parent Company
－
－
－
－
－
－
－
－
－
－
－		 Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss – current
Financial assets at fair value
through profit or loss - current		 15,109,901
990
3,250,000
7,925,720
835,840
3,140,171
5,503,671
3,082,101
6,715,624
3,498,926
4,512,310
12,856,993		 $ 178,297

8

55,250

100,058

150,060

50,001

90,029

50,043

100,180

50,020

50,037

175,103		 1.27
0.50
-
-
-
-
-
-
-
-
-
-		 $ 178,297
8
55,250
100,058
150,060
50,001
90,029
50,043
100,180
50,020
50,037
175,103
Note 1

Note 3

Note 1

Note 2

Note 2

Note 2

Note 2

Note 2

Note 2

Note 2

Note 2

Note 2

(Continued)

  • 129 -
Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
TAITA (BVI) Holding
Co., Ltd.		 Shares
Budworth Investment Ltd.－ordinary
shares
Teratech Corp.－ordinary shares
Sohoware Inc.－preference shares		 －
－
－		 Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current		 20,219
112,000
100,000
6
( USD - thousand )

-

-		 2.22
0.73
-		 6
( USD - thousand )
-
-
Note 3
Note 4
Note 4

Note 1: The fair value was based on the Taiwan Stock Exchange closing price on the last trading day of June 2020.

Note 2: The fair value was calculated based on the net asset value on the last trading day of June 2020. Note 3: TTC utilized the assets approach and took into account the most recent net asset value, observable financial status a s well as the financing activities of investees in order to determine their net asset value.

Note 4: As of June 30, 2020, TTC evaluated the fair value of equity instruments as $0.

Note 5: Please refer to Tables 7-4 and 8-4 for detailed information on subsidiaries and associates.

  • 130 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

MARKETABLE SECURITIES HELD

JUNE 30, 2020

TABLE 3-3

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

Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
Asia Polymer
Corporation
 Ordinary Shares
Harbinger Venture Capital
Corp.
Riselink Venture Capital
KHL IB Venture Capital Co.,
Ltd.
USI Corporation
CTCI Corporation
AU Optronic Corporation
Wafer Works Corporation
United Renewable Energy Co.,
Ltd.		 －
－
－
Ultimate parent company
－
－
－
－		 Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
current
Financial assets at fair value
through profit or loss -
current		 2,377
131,587
15,329,223
101,355,673
14,446,107
9,618,516
2,017,946
229,580		 $ 20

1,725

276,692

1,195,997

563,398

89,068

67,399

1,501
1.20

1.67

11.90

8.53

1.89

0.10

0.39

0.01		 $ 20
1,725
276,692
1,195,997
563,398
89,068
67,399
1,501






(Continued)

  • 131 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
Unimicron Technology
Corporation
Evergreen Marine Corp.
ITE Tech. Inc.
G.M.I. Technology Inc.
Beneficiary securities
Cathay No. 1 Real Estate
Investment Trust Fund
Beneficiary certificates
Mega Diamond Money Market
Fund
Capital Money Market Fund
Jih Sun Money Market Fund
Prudential Financial Money
Market Fund
Taishin 1699 Money Market
Fund
CTBC Hwa Win Money Market
Fund
FSITC Taiwan Money Market
Fund
Shin Kong Chi-Shin
Money-Market Fund		 －
－
－
－
－
－
－
－
－
－

－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 300,000
1,753,251
283,000
1,430,000
3,281,000
7,924,414
739,076
16,818,904
3,183,308
17,934,857
6,061,791
5,219,966
2,246,746		 $ 15,030

18,847

17,433

21,879

55,777

100,042

12,000

250,896

50,687

244,260

67,219

80,404

35,003
0.02

0.04

0.18

1.21

-

-

-

-

-

-

-

-

-		 $ 15,030
18,847
17,433
21,879
55,777
100,042
12,000
250,896
50,687
244,260
67,219
80,404
35,003











(Continued)

  • 132 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
APC (BVI)
Holding Co.,
Ltd.

APC Investment
Corporation
 Shares
Budworth Investment Ltd. –
ordinary shares
Silicon Technology Investment
(Cayman) Corp. – preference
shares
NeuroSky, Inc. – series D
preference shares
Solargiga Energy Holdings Ltd.
Teratech Corp. – ordinary
shares
TGF Linux Communication,
Inc. – preference shares
Sohoware, Inc. – preference
shares
Boldworks, Inc. – preference
shares
Ordinary Shares
USI Corporation
Evergreen Marine Corp.		 －
－
－

－
－
－
－
－
Ultimate parent company
－		 Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 40,467
1,139,776
2,397,364
15,863,333
112,000
300,000
450,000
689,266
44,808
584,416		 $ 13

54,410

-

4,063

-

-

-

-

529

6,282
4.45

2.19

0.37

0.49

0.67

-

-

-

-

0.01		 $ 13
54,410
-
4,063
-
-
-
-
529
6,282


Note 1


Note 1

Note 1

Note 1

Note 1

(Continued)

  • 133 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
ITE Tech. Inc.
Unimicron Technology
Corporation
G.M.I. Technology Inc.
Beneficiary securities
Yuanta Wan Tai Money Market
Fund
Cathay Taiwan Money Market
Fund
Ordinary shares
United Renewable Energy Co.,
Ltd.		 －
－
－

－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through other
comprehensive income -
non-current		 150,000
150,000
465,000
714,986
499,525
1,133,531
9,240

7,515

7,115

10,893

6,251

7,413
0.09

0.01

0.39

-

-

0.04		 9,240
7,515
7,115
10,893
6,251
7,413




Note 1: Due to the recognition of investment losses over the past years, APC evaluated the fair value of long-term equity instruments as 0. Note 2: Please refer to Tables 7-5 and 8-5 for detailed information on subsidiaries and associates.

  • 134 -

USI CORPORATION AND SUBSIDIARIES

(China General Terminal & Distribution Co.)

MARKETABLE SECURITIES HELD

JUNE 30, 2020

TABLE 3-4

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

Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2020 June 30,2020 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
China General
Terminal &
Distribution
Co.
 Shares
Asia Polymer Corporation
China General Plastics
Corporation
Taita Chemical Company, Ltd.
China Steel Corporation		 Equity-method investor
Equity-method investor
Equity-method investor
－		 Financial assets at fair value
through other
comprehensive income -
non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through profit or loss -
current		 4,939,760

2,667,382

1,915,033
499,552		 $ 91,633
49,213
27,193
10,341		 0.89
0.51
0.57
-		 $ 91,633
49,213
27,193
10,341		 Note 2
Note 1
Note 1
Note 3

Note 1: No guarantees, pledged loans, or other restrictions on the use of the contract were provided. Note 2: Part of 2,907,349 shares was provided to Taiwan Power Company as a provisional attachment. Note 3: Part of 257,000 shares was provided to Taiwan Water Corporation as a provisional attachment.

  • 135 -

USI CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID -IN CAPITAL

FOR THE SIX MONTHS ENDED JUN E 30, 2020

TABLE 4

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

Company Name Type and Name of
Marketable Securities		 Financial
Statement
Account		 Counterparty Relationship Beginning Balance
(Notes 1 and 2)		 Beginning Balance
(Notes 1 and 2)		 Acquisition Acquisition Disposal Disposal Ending
(Notes		 Balance
1 and 2)
Number of
Shares		 Amount Number of
Shares		 Amount Number of
Shares		 Amount Carrying
Amount		 Gain on
Disposal		 Number of
Shares		 Amount
USI Corporation

Ever Conquest
Global Limited
Ever Victory Global
Limited
Dynamic Ever
Investments
Limited		 Beneficiary certificates
Hua Nan Phoenix
Money Market
Fund
Shares
Ever Victory
Global Limited
Shares
Dynamic Ever
Investments
Limited
Shares
Fujian Gulei
Petrochemical
Co., Ltd.
Financial assets
at fair value
through profit
or
loss
-
current
Investment
accounted for
using
the
equity
method
Investment
accounted for
using
the
equity
method
Investment
accounted for
using the
equity
method



－


－


－
－		 －
Subsidiary
Subsidiary
Joint Venture		 4,566,633

390,830,000

488,286,000

Note 3		 $ 74,500

11,563,685

14,432,823

14,867,168
14,377,884

18,832,000

87,853,000

Note 3		 $ 235,000

570,606

2,661,928

3,811,781
18,944,518

-

-

-		 $ 309,667

-

-

-		 $ 309,500

-

-

-		 $ 167

-

-

-
-

409,662,000

576,139,000

Note 3		 $ -

11,834,053

16,627,237

18,177,731

Note 1: The book cost includes the original investment amount, shares of profit (loss) by equity method, exchange rate conversion and adjustments to net changes. Note 2: The amount as of June 30, 2020 was calculated at the original investment cost.

Note 3: There are zero shares of the limited company.

  • 136 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLIO N OR 20% OF THE PAID-IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 4-1

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

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterparty Relationship BeginningBalance(Note) BeginningBalance(Note) Acquisition Acquisition Disposal Disposal EndingBalance(Note) EndingBalance(Note)

Number of
Shares		 Amount Number of
Shares		 Amount Number of
Shares		 Amount Carrying
Amount		 Gain on
Disposal		 Number of
Shares		 Amount
China
General
Plastics Corporation

CGPC
Polymer
Corporation
Beneficiary certificates
Jih Sun Money
Market Fund

Beneficiary certificates
Jih Sun Money
Market Fund
Taishin
1699
Money Market
Fund

Financial assets at fair
value through profit
or loss - current


Financial assets at fair
value through profit
or loss - current


Financial assets at fair
value through profit
or loss - current

－


－
－		 －
－
－		 6,722,102
12,751,358
8,813,848		 $ 100,000
189,601
119,700		 14,639,820
24,108,007
17,158,745		 $ 218,000
359,000
233,400		 21,361,922
36,859,365
24,363,860		 $ 318,089
548,937
331,300		 $ 318,000
548,601
331,200		 $ 89
336
100		 -
-
1,608,733		 $ -
-
21,900

Note: The beginning and ending balances were calculated at the original investment cost.

  • 137 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.)

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID -IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 4-2

(In Thousands of New Taiwan Dollars)

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterparty Relationship Beginning Balance Acquisition(Note) Acquisition(Note) Disposal Disposal EndingBalance(Note) EndingBalance(Note)
Number of
Shares		 Amount Number of
Shares		 Amount Number of
Shares		 Amount Carrying
Amount		 Gain on
Disposal		 Number of
Shares		 Amount
Taita
Chemical
Company, Ltd.
Beneficiary certificates
Taishin 1699 Money
Market Fund
Financial assets at
fair value through
profit or loss -
current
－		 － - $ -
23,006,062		 $ 313,000
10,149,069		 $ 138,050 $ 138,000 $ 50
12,856,993		 $ 175,000

Note: The ending balance of beneficiary certificates was based on the original investment amo unt.

  • 138 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID -IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 4-3

(In Thousands of New Taiwan Dollars)

Company
Name		 Type and Name of
Marketable Securities		 Financial
Statement
Account		 Counterparty Relationship BeginningBalance BeginningBalance Acquisition Acquisition Disposal Disposal EndingBalance(Note) EndingBalance(Note)
Number of
Shares		 Amount Number of
Shares		 Amount Number of
Shares		 Amount Carrying
Amount		 Gain on
Disposal		 Number of
Shares		 Amount
Asia Polymer
Corporation
 Shares
Ever Conquest Global
Limited.
Funds
FSITC Money Market
Fund		 Investment
accounted for
using the equity
method
Financial assets at
fair value
through profit
or loss - current		 －
－		 Equity
method
investee
－		 144,160,000
957,942		 $ 4,265,335
171,000		 18,832,000
1,148,360		 $ 570,606
206,000		 -
2,106,302		 $ -

377,796		 $ -

377,000		 $ -

796		 162,992,000

-		 $ 4,708,408
（Note 1）

-

Note 1: The carrying amount includes the original investment amount, the investment profit (loss) recognized using equity method, foreign exchange conversion, and adjustments to changes in net value.

  • 139 -

USI CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLIO N OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts
Receivable(Payable)		 Notes/Accounts
Receivable(Payable)		 Note
Purchase/
Sale		 Amount % of
Total		 Payment Terms Unit Price Payment Terms
Ending
Balance		 % of
Total
USI
Corporation
 Asia Polymer
Corporation		 Subsidiary Purchase $ 323,688
11.09		 Within 60 days
after purchasing
on credit

No significant
difference		 No significant
difference		 ( $ 73,987 ) (
13.81 )

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 140 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corp. (ACME))

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5-1

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction (Note 1) Abnormal Transaction (Note 1) Notes/Accounts Receivable
(Payable)		 Notes/Accounts Receivable
(Payable)		 Note
Purchase/ Note
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial
Statement
Account and
EndingBalance		 % of
Total
Acme Electronics Corp.
Acme Electronics
(Guang-Zhou) Co.,
Ltd.		 Acme Electronics
(Guang-Zhou) Co.,
Ltd.
Acme Electronics Corp.		 Subsidiary of GAEL
Subsidiary of GAEL		 Purchase
(including
processing fee)
Sell (including
processing fee)		 $ 213,365
(
213,365 )
56

47		 55 days
55 days		 No significant
difference
No significant
difference		 No significant
difference
No significant
difference		 Accounts payable
to related parties
( $ 208,901 )
Accounts
receivable from
related parties
208,901		 78
61		 Note 2
Note 2

Note 1: There is no significant difference between transaction receipt/payment terms and prices of ACME and Acme Electronics (Guang-Zhou) Co., Ltd. and general transactions. Note 2: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 141 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SPC))

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID -IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5-2

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) Note
Purchase/
Note
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
Ending Balance		 % of
Total
Swanson Plastics
(Singapore) Pte.
Ltd.
Forever Young
Company Limited
Forever Young
Company Limited
Swanson Plastics
(Kunshan) Co., Ltd.
Swanson Plastics
(Malaysia) Sdn.
Bhd.
Swanson Plastics
(Malaysia) Sdn.
Bhd.		 Swanson Plastics
(Malaysia) Sdn. Bhd.
Swanson Plastics
(Kunshan) Co., Ltd.
Swanson Plastics
(Malaysia) Sdn. Bhd.
Forever Young
Company Limited
Forever Young
Company Limited
Swanson Plastics
(Singapore) Pte. Ltd.
Subsidiary
Have the same
ultimate parent
company

Have the same
ultimate parent
company
Have the same
ultimate parent
company
Have the same
ultimate parent
company
Parent
Company		 Purchase
Sale
Sale
Purchase
Purchase
Sale		 $ 119,530
(
166,691 )
(
188,826 )
166,691
188,826
(
119,530 )		 81
(
33 )
(
37 )
38
46
(
24 )		 90 days
90 days
90 days
90 days
90 days
90 days		 No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No significant
difference

No significant
difference

No significant
difference

No significant
difference

No significant
difference

No significant
difference
Accounts payable from related
parties
( $ 16,267 )

Accounts receivable from related
parties
85,748

Accounts receivable from related
parties
30,730

Accounts
payable
to
related
parties
(
85,748 )

Accounts
payable
to
related
parties
(
30,730 )

Accounts receivable from related
parties
16,267
(
64 )

55

20

(
54 )

(
51 )

11

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements .

  • 142 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5-3

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account
and EndingBalance		 % of
Total
China General
Plastics
Corporation
Taiwan VCM
Corporation
CGPC Polymer
Corporation
CGPC America
Corporation		 Taiwan VCM
Corporation
CGPC America
Corporation
China General
Plastics
Corporation
CGPC Polymer
Corporation
Taiwan VCM
Corporation
China General
Plastics
Corporation		 Subsidiary
Subsidiary
Parent
company
Fellow
subsidiary
Fellow
subsidiary
Parent
company		 Purchase
Sale
Sale
Sale
Purchase
Purchase		 $ 1,758,467
(
189,748 )
(
1,758,467 )
(
1,518,180 )

1,518,180

189,748
71
(
5 )
(
51 )
(
44 )

95

85		 45 days
90 days
45 days
45 days
45 days
90 days		 No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference		 No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No
significant
Difference
No
significant
difference		 Accounts payable to related
parties
( $ 375,638 )
Accounts
receivable
from
related parties
98,979
Accounts
receivable
from
related parties
375,638
Accounts
receivable
from
related parties
275,063
Accounts payable to related
parties
(
275,063 )
Accounts payable to related
parties
(
98,979 )
(
66 )

13

58

42

(
97 )

(
97 )		 Note
Note
Note
Note
Note
Note

Note: All the transactions were fully eliminated upon preparation of the consolidated fin ancial statements.

  • 143 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.)

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID -IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5-4

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

Buyer/Seller Related Party Relationship Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account
and EndingBalance		 % of
Total
Taita Chemical
Company, Ltd.
Taita Chemical
(Zhongshan)
Co., Ltd.		 Taita Chemical
(Zhongshan)
Co., Ltd.
Taita Chemical
Company, Ltd.		 Sub-subsidiary
Sub-subsidiary		 Sale
Purchase		 ( $ 283,260 )
( USD
9,481
thousand)

283,260
( USD
9,481
thousand)		 (
6.05 )
6.05		 30 days
30 days		 No
significant
difference
No
significant
difference		 No
significant
difference
No
significant
difference		 Accounts
receivable
from
related parties
$ 2,403
(USD81 thousand)
Accounts payable to related
parties
2,403
(USD81 thousand)

0.22


0.22

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 144 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID -IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 5-5

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Accounts receivable from relatedparties Accounts receivable from relatedparties Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
EndingBalance		 % of
Total
Asia Polymer
Corporation
USI Trading
(Shanghai) Co., Ltd.
Asia Polymer
Corporation
USI Trading
(Shanghai) Co., Ltd.		 USI Corporation
USI Corporation
USI Corporation
USI Corporation		 Ultimate parent
company
Ultimate parent
company
Ultimate parent
company
Ultimate parent
company
Sale

Sale

Purchase

Purchase		 ( $ 311,023 )
(
203 )
52,681
49,887		 (
11.65 )

-

3.48

3.29		 60 days
30 days
30 days
30 days		 No
significant
difference
No
significant
difference
No
significant
difference
No
significant
difference
No significant
difference

No significant
difference

No significant
difference

No significant
difference
Accounts receivable from related
parties
$ 75,518

Accounts receivable from related
parties
-

Accounts
payable
to
related
parties
-

Accounts
payable
to
related
parties
(
26,400 )
12.41

-

-


11.42


Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 145 -

USI CORPORATION AND SUBSIDIARIES

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

JUNE 30, 2020

TABLE 6

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

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
USI Corporation Taiwan VCM
Corporation
Asia Polymer
Corporation		 Subsidiary of the
Company
Subsidiary of the
Company		 Other
receivables
-
related
parties
$ 27,141
Other receivables - related
parties
32,936
-
-		 $ -
-		 －
－		 $ 27,141
32,936		 Note 1
Note 1

Note 1: An allowance for impairment loss is not needed after assessment.

Note 2: The subsequent period refers to the period from July 1, 2020 to August 4, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 146 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

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

JUNE 30, 2020

TABLE 6-1

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

Company Name Related Party Relationship Ending Balance (Note 2) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period		 Allowance for
Impairment
Loss
Amount Actions Taken
Acme Electronics Corporation
Acme Electronics (Guang-Zhou)
Co., Ltd.		 ACME Electronics (Cayman)
Corp

Acme Electronics Corporation		 Subsidiary of ACME
Subsidiary of GAEL		 Other receivables -
related parties
$ 210,229
Receivables - related
parties
208,901		 -
2.63		 $ -
-		 －
－		 $ -
56,257		 Note 1
Note 1

Note 1: No allowance for impairment loss is needed after assessment.

Note 2: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 147 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SWANSON))

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLIO N OR 20% OF THE PAID-IN CAPITAL JUNE 30, 2020

TABLE 6-2

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

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
ASK-Swanson
(Kunshan) Co., Ltd.		 Swanson Plastics (Tianjin)
Co., Ltd.		 Fellow subsidiary Other receivable - related parties
$ 183,825
(RMB 43,922 thousand)

-		 $ - － $ - Note 1

Note 1: No allowance for impairment loss is needed after assessment.

Note 2: The subsequent period refers to the period from July 1, 2020 to August 4, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 148 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

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

JUNE 30, 2020

TABLE 6-3

(In Thousands of New Taiwan Dollars, Unless Stated Otherwis e)

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
Taiwan VCM Corporation China General Plastics
Corporation
CGPC Polymer
Corporation		 Parent company
Fellow subsidiary		 Accounts receivable from related parties
Accounts receivable from related parties		 $ 375,638
$ 275,063		 5.66
5.96		 $ -
-		 －
－		 $ 75,224
33,108		 Note 1
Note 1

Note 1: No allowance for impairment loss is needed after assessment.

Note 2: The subsequent period refers to the period from July 1, 2020 to July 27, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 149 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.)

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

JUNE 30, 2020

TABLE 6-4

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

Company Name Related Party Relationship Financial Statement Account and
Ending Balance (Note 3)		 Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions
Taken
Taita Chemical
Company, Ltd.		 Taita Chemical (Tianjin) Co.,
Ltd.		 Sub-subsidiary Other receivables $ 276,064
(USD 9,317 thousand)
(Note 1)
-		 $ - － $ - $ -

Note 1: The other receivables of Taita Chemical Co., Ltd. is from selling raw materials to Taita Chemical (Tianjin) Co., Ltd. , transferred to other receivables since it had exceeded the normal credit period.

Note 2: There was no amount received as of August 12, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 150 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation (APC))

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

JUNE 30, 2020

TABLE 6-5

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

Company Name Related Party Relationship Financial Statement Account and
Ending Balance (Note 3)		 Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions
Taken
Asia Polymer
Corporation		 USI Corporation
USI Corporation		 Ultimate parent
company
Ultimate parent
company		 Accounts receivable - related parties
$ 75,518
Other receivables - related parties
55,497		 5.59
-		 $ -
-		 －
－		 $ 75,518
4,819		 Note 1
Note 1

Note 1: No allowance for impairment loss is needed after assessment.

Note 2: The subsequent period refers to the period from July 1, 2020 to August 12, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 151 -

USI CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 7

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

Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As ofJune 30,2020 As ofJune 30,2020 As ofJune 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note

June 30, 2020		 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
USI Corporation USIFE Investment Co.,
Ltd.
Swanlake Traders Ltd.
USI Far East (HK) Co.,
Ltd.
Union Polymer Int'l
Investment Corp.
Taiwan United Venture
Capital Corp.
Chong Loong Trading
Co., Ltd.
Swanson Plastics Corp.
Acme Electronics Corp.
INOMA Corporation
USI Management
Consulting Corp.
Cypress Epoch Limited
Thintec Materials
Corporation
Ever Conquest Global
Limited		 12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
Citco Building, Wickhamo Cay,
P.O. Box 662, Road Town,
Tortola, British Virgin
Islands
6/F., Caltex House, 258
Hennessy Road, Hong Kong
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
10F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
8F., No. 39, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
P.O. Box 957, Offshore
Incorporations Centre, Road
Town, Tortola, British Virgin
Islands
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
P.O. Box 957, Offshore
Incorporations Centre, Road
Town, Tortola, British Virgin
Islands
Investment (focused on
“production,
transportation, storage,
building, bank, securities
investment and trading
industry”)
Trading and investment
Trading and investment

Investment (focused on
“production and service
industry”)

Venture capital (focused on
“high technology
industry”)

Import and export trade

Production and marketing of
stretch film, embossed film
and industrial-use
multi-layer wrap

Production and marketing of
manganese-zinc soft ferrite
powder

Optical products and
fireproof materials

Providing management
services
Investment

Reinforced plastic products
manufacturing
Investment		 $ 550,000
728,439
63,482
3,490,255
471,800
28,323
171,210
221,513
250,354
1,000
150,540
36,250
7,645,980		 $ 550,000

728,439

63,482

3,490,255

471,800

28,323

171,210

221,513

250,354

1,000

150,540

36,250

7,645,980
87,250,800

30,000,000

159,999

565,276,555

32,900,000

4,358,183

62,616,299

49,250,733

9,243,369

671,400

5,000,000

1,825,000

246,670,000		 100.00
100.00
100.00
100.00

70.00

99.93

40.58

26.91

94.37
100.00
100.00

30.42

60.21		 $ 714,981
1,329,630
124,006
6,359,257
167,987
46,537
993,587
319,280
22,470
(
502 )
121,638
527
7,125,645		 $ 13,139

12,079
(
3,001 )

359,052
(
3,470 )

1,823

136,707

30,108
(
5,499 )

74
(
125 )

15
(
56,470 )		 $ 13,139

12,079
(
3,001 )

339,645
(
2,429 )

1,868

55,473

8,103
(
5,124 )

74
(
125 )

4
(
35,200 )		 Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

(Continued)

  • 152 -
Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As ofJune 30,2020 As ofJune 30,2020 As ofJune 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note

June 30, 2020		 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Ever Conquest
Global Limited
Ever Victory Global
Limited
Union Polymer Int'l
Investment Corp.
USIFE Investment
Co., Ltd.
Taiwan United
Venture Capital
Corp.
Chong Loong
Trading Co., Ltd.
Swanlake Traders
Ltd.		 USI
Optronics
Corporation
Ever Victory Global
Limited
Dynamic Ever
Investments Limited
Taita Chemical
Company, Ltd.
Asia
Polymer
Corporation
China General Plastics
Corporation
Acme Electronics Corp.
Swanson Technologies
Corporation
Taiwan United Venture
Management Corp.
Thintec Materials
Corporation
Forum Pacific Trading
Ltd.
ACME Electronics
(Cayman) Corp.
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
P.O. Box 957, Offshore
Incorporations Centre, Road
Town, Tortola, British Virgin
Islands
Room 1902, 19/F, Lee Gargen
One, 33 Hysan Avenue,
Causeway Bay, Hong Kong
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)

12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
8F., No. 39, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
British Virgin Islands
Ugland House P.O. Box 309
George Town, Grand
Cayman, Cayman Islands
Manufacturing and marketing
of sapphire crystal
Investment
Investment

Production and marketing of
polystyrene, acrylonitrile,
butadiene, ABS resin, SAN
resin, glasswool insulation
products and plastic
materials


Production and marketing of
low-density polyethylene,
medium-density
polyethylene, ethylene
vinyl acetate and importing
and marketing of linear
low-density polyethylene
and high-density
polyethylene


Production and marketing of
plastic cloths, plastic skins,
plastic tubes, plastic pellets,
plastic powder and other
related products


Production and marketing of
manganese-zinc soft ferrite
powder


Production, marketing and
development of EVA
packaging film and other
value added plastic
products


Business
management
consulting


Reinforced plastic products
manufacturing
Import and export trade
Investment
$ 330,000
12,138,285
( USD
409,662
thousand
)
17,070,999
( USD
576,139
thousand
)
$ 1,749,212
1,965,437
1,320,045

155,632
30,000

8,000

21,465
6,519
( USD 220 thousand )
104,818
( USD3,538 thousand
)		 $ 330,000
11,580,293
( USD
390,830
thousand
)
14,467,914
( USD
488,286
thousand
)
$ 1,749,212

1,965,437

1,320,045

155,632

30,000

8,000

21,465
6,519
( USD 220 thousand )
104,818
( USD3,538 thousand
)
33,000,000
409,662,000
576,139,000

122,562,945

179,330,846

127,537,351

16,424,242

3,000,000

800,000

900,000
220,000
5,609,231
50.85

71.04

85.32

36.67

32.35

24.20

8.98

15.00
100.00

15.00
100.00

11.23		 $ 87,444
11,834,053
( USD
399,394
thousand
)
16,627,237
( USD
561,162
thousand
)
$ 1,900,420
3,733,019
2,128,261
121,062
(
15,097 )
15,643
260
6,751
127,677
(USD4,309 thousand)		 ( $ 27,031 )
(
72,974 )
( USD
-2,429
thousand
)
(
81,208 )
( USD
-2,703
thousand
)
$ 470,827

367,620

255,851

30,108
(
6,986 )

1,021

15
(
20 )
( USD -1 thousand )

(
4,487 )
( USD-148 thousand)		 ( $ 13,744 )






 Subsidiary
Subsidiary
Sub-subsidi
ary
Sub-subsidi
ary
Sub-subsidi
ary
Sub-subsidi
ary
Subsidiary
Sub-subsidi
ary
Sub-subsidi
ary
Subsidiary
Sub-subsidi
ary
Sub-subsidi
ary

Note 1: The Company gained control over USI Management Consulting Corp. and recognized the investment gain (loss) using the e quity method, but reclassified to other non-current liabilities if there was an accounting credit.

Note 2: Information on investments in mainland China is provided in Table 8.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 153 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

INFORMATION ON INVESTEES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 7-1

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

Investor Investee Location Main Businesses
and Products		 Original Investment Amount(Note 2) Original Investment Amount(Note 2) As of June 30, 2020 As of June 30, 2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2020 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Acme Electronics
Corporation
ACME Electronics
(Cayman) Corp.
ACME Components
(Malaysia) Sdn.
Bhd.		 ACME Electronics
(Cayman) Corp.
Golden Amber
Enterprises
Limited
ACME Electronics
(BVI) Corp.
USI Optronics
Corporation
ACME Components
(Malaysia) Sdn.
Bhd.
ACME Ferrite
Products Sdn. Bhd.		 Ugland House P.O. Box 309
George Town, Grand
Cayman, Cayman Islands
CITCO Building, Wickhams
Cay Road Town, Tortola,
British Virgin Islands
CITCO Building, Wickhams
Cay P.O. Box 662, Road
Town, Tortola, British
Virgin Islands
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114,
Taiwan (ROC)
Plot 15,Jalan Industri 6
Kawasan Perindustrian
Jelapang II (ZPB) Jelapang
30020 Ipoh, Perak, Malaysia.

Plot 15,Jalan Industri 6
Kawasan Perindustrian
Jelapang II (ZPB) Jelapang
30020 Ipoh, Perak, Malaysia.		 Investment
Investment
Investment
Production and
marketing of
sapphire
monocrystals

Investment

Production and
marketing of
soft ferrite
core		 $ 605,182
( USD
18,336
thousand
)
669,072
( USD
20,800
thousand
)
-
646,200
USD
11,891
thousand
MYR
37,964
thousand		 $ 605,182
( USD
18,336
thousand
)
669,072
( USD
20,800
thousand
)
23,923
( USD 730 thousand )

646,200
USD
11,891
thousand
MYR
37,964
thousand		 25,621,692
20,800,000
-

22,064,224
42,600,000
9,120,000
51.27

100.00

-

34.00

100.00

100.00		 $ 582,300
814,007
-
58,466
USD
19,707
thousand
MYR
86,585
thousand		 ( $ 4,487 )
( USD-148 thousand )

26,310
(
153 )
( USD -5 thousand )
(
27,031 )
USD 75 thousand
( MYR 318 thousand )
MYR 354 thousand		 ( $ 2,879 )
( USD -95 thousand )

26,310
(
153 )
( USD -5 thousand )
(
9,190 )
USD 75 thousand
( MYR 318 thousand )
MYR 354 thousand		 Note 1
Note 1
Notes 1
and 3
Note 1
Note 1

Note 1: All the transactions were fully elimi nated upon preparation of the consolidated financial statements.

Note 2: The amount is calculated according to the original investment cost.

Note 3: ACME Electronics (BVI) Corp. had been liquidated on June 30, 2020.

Note 4: Information on investments in mainland China is provided in Table 8-1.

  • 154 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation)

INFORMATION ON INVESTEES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 7-2

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

Investor Investee Location Main Businesses
and Products		 Original Investment Amount Original Investment Amount As of June 30, 2020 As of June 30, 2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2020 (Note 2) December 31, 2019
(Note 2)		 Number of
Shares		 Percentage
(％)		 Carrying Amount
Swanson Plastics
Corporation
Swanson Plastics
(Singapore) Private
Limited
Swanson International
Ltd.		 Swanson Plastics
(Singapore) Private
Limited
Forever Young
Company Limited
Swanson International
Ltd.
Curtana Company
Ltd.
Swanson Technologies
Corporation
PT. Swanson Plastics
Indonesia
Swanson Plastics
(Malaysia) Sdn.
Bhd.
Swanson Plastics
(India) Private Ltd.
PT. Swanson Plastics
Indonesia

A.S. Holdings (UK)
Limited		 2 Venture Drive Vision
Exchange #12-10 Singapore
608526
Skelton Building Main Street
P.O. Box 3136 Road Town,
Tortola British Virgin Islands

Ugland House, P.O.Box 309
George Town, Grand
Cayman, Cayman Islands,
British West Indies
Flatb 6/F Caltex House 258
Hennessy Road Wanchai,
Hong Kong

12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
Ngoro Industrial Park Blok
D2-3 Ds. Lolawang Kec.
Ngoro Kab. Mojokerto
Plot 505, Tingkat Perusahaan
4A, Kawasan Perusahaan
Perai, Zon Perdagangan
Bebas, 13600 Perai, Seberang
Perai, Malaysia
PLOT No.2, GDDIDC. Honda,
Bhuipal Sattari-403 506,
Goa-India
Ngoro Industrial Park Blok
D2-3 Ds. Lolawang Kec.
Ngoro Kab. Mojokerto
United Kingdom		 Production and
marketing of
plastic products
Import, export
and agency
services
Investment
Investment

EVA packaging
film and
production,
planting,
development
and sales of
agri-technologi
es
Production and
marketing of
plastic products
Production and
marketing of
plastic products
Production and
marketing of
plastic products
Production and
marketing of
plastic products
Investment
$ 808,506
1,297
454,134
4,850
140,000

7,979

195,362
( USD
6,593
thousand)

489,217
( USD
16,511
thousand
)

765,640
( USD
25,840
thousand
)
210,198
(USD7,094 thousand)		 $ 808,506

1,297

454,134

4,850

140,000

7,979
195,362
(USD6,593 thousand)
489,217
( USD
16,511
thousand
)
765,640
( USD
25,840
thousand
)
210,198
(USD7,094 thousand)
36,863

50

14,541

1,600

14,000

261
20,000
107,351
25,840
-
100.00

100.00

100.00

100.00

70.00

1.00

100.00

100.00

99.00

100.00		 $ 1,842,124
72,535
1,497,167
6,458
(
70,450 )
7,210
599,674
( USD20,239 thousand )
299,711
( USD10,115 thousand )
713,771
( USD24,089 thousand )
527,814
( USD17,814 thousand )		 $ 65,043
4,089
82,252
-
(
6,986 )
25,937
50,344
( MYR7,468 thousand )
(
3,626 )
( INR-9,093 thousand )
25,937
( IDR
12,371,923
thousand
)
21,892
( USD730 thousand)		 $ 65,043
4,089
82,252
-
(
4,890 )
259		 Note 3
Note 3
Notes 1
and 3

Note 1: There are zero shares of the limited company.

Note 2: The original investment amount and carrying amount were calculated using the spot exchange rate as of June 30, 2020.

Note 3: Information on investments in mainland China is provided in Table 8 -2.

Note 4: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 155 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

INFORMATION ON INVESTEES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 7-3

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

I n v e s t o r I
n
v
e
s
t
e
e		 L
o
c
a
t
i
o
n		 Main Businesses
a n d P r o d u c t s		 Or iginal Investment A mount Or iginal Investment A mount A s
o f
J u n e
3 0 ,
2 0 2 0		 A s
o f
J u n e
3 0 ,
2 0 2 0		 A s
o f
J u n e
3 0 ,
2 0 2 0		 Net Income (Loss)
of the Investee
Share of Profits
(
L
o
s
s
)		 N
o
t
e

J u n e 3 0 , 2 0 2 0		 D e c e m b e r 3 1 ,
2
0
1
9

N u m b e r o f
S h a r e s

Percentage
(
％
)

Carrying Amount
China General
Plastics
Corporation		 Taiwan VCM
Corporation
CGPC Polymer
Corporation
CGPC（BVI）Holding
Co., Ltd.
China General
Terminal &
Distribution
Corporation
CGPC America
Corporation
Acme Electronics
Corporation
Thintec Materials
Corporation		 No. 1, Gongye 1st Rd.,
Linyuan Dist., Kaohsiung
City 832, Taiwan (ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114,
Taiwan (ROC)

Citco Building, Wickhams
Cay, P.O. Box 662, Road
Town, Tortola, British
Virgin Islands
No. 1, Jianji St., Qianzhen
Dist., Kaohsiung City 806,
Taiwan (ROC)
1181 California Ave., Suite
235 Corona, CA 92881
8F., No. 39, Jihu Rd., Neihu
Dist., Taipei City 114,
Taiwan (ROC)
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114,
Taiwan (ROC)		 Manufacture and
marketing of
vinyl chloride
monomer
Manufacture and
marketing of PVC
resin
Reinvestment
Warehouse of
petrochemical
raw materials
Marketing of PVC
second – and
third-time
processed
products
Manufacture and
marketing of
manganese-zinc
soft ferrite
powder
Manufacture and
marketing of
reinforced plastic
products		 $ 2,930,995

800,000
1,073,906
41,106
648,931
33,995
13,725		 $ 2,930,995
800,000
1,073,906
41,106
648,931
33,995
15,000		 226,609,751
80,000,000
16,308,258
18,667,465
100
3,176,019
600,000
87.22
100.00
100.00

33.33
100.00

1.74

10.00		 $ 3,190,796
886,548
340,481
276,668
199,314
21,579
173		 $ 220,260
(
7,878 )
2,001
44,573
7,668
30,108
15		 $ 200,333
(
7,878 )
2,001
14,858
7,668
523
1		 Subsidiary
Subsidiary
Subsidiary
Associate accounted
for using the equity
method
Subsidiary
Associate accounted
for using the equity
method
Associate accounted
for using the equity
method (Note 1)

Note 1: On April 12, 2019, the board of director of TMC resolved to dissolve from May 25, 2019. CGPC recovered $1,274 thousand in share capital in May 2020, and TMC completed the dissolution and liquidation procedures on July 22, 2020.

Note 2: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

Note 3: Information on investments in mainland China is provided in Table 8 -3.

  • 156 -

USI CORPORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Company, Ltd.)

INFO RMATIO N ON INV ESTEE S

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 7-4

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

Investor Investee Location Main Businesses and
Products		 Original Investment Amount Original Investment Amount As ofJune 30,2020 As ofJune 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2020 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Taita Chemical Co., Ltd.
TAITA (BVI) Holding
Co., Ltd.		 TAITA (BVI) Holding Co., Ltd.
China General Plastics
Corporation
China General Terminal &
Distribution Corporation
Acme Electronics Corporation
Thintec Materials Corporation
ACME Electronics (Cayman)
Corp.		 British Virgin
Islands
Taipei
Taipei
Taipei
Taipei
British Cayman
Islands		 Reinvestment
Manufacturing and
marketing of PVC
plastic cloth and
three-time processed
products
Warehousing of petro
chemical raw materials
Manufacturing and
marketing of
manganese-zinc and
ferrite core
Manufacturing of
reinforced plastic
products
Reinvestment		 $ 1,829,297
( USD61,738 thousand)
65,365
41,082
44,771
13,726
51,384
( USD 1,700 thousand )		 $ 1,829,297
( USD61,738 thousand)
65,365
41,082
44,771
15,000
51,384
( USD 1,700 thousand )		 61,738,000
10,445,510
18,667,463
4,445,019
600,000
2,695,619		 100.00
1.98
33.33
2.43
10.00
5.39		 $ 1,554,114
( USD52,451 thousand)
163,687
276,668
30,201
173
61,358
( USD 2,071 thousand )		 $ 152,188
( USD
5,087 thousand )
255,851
44,573
30,108
15
(
4,487 )
( USD
-148 thousand )		 $ 152,188
( USD
5,087 thousand )

5,071
14,858
731
1
-		 Subsidiary (Notes 1
and 3)
Investments
accounted for
using the equity
method (Note 1)
Investments
accounted for
using the equity
method (Note 2)
Investments
accounted for
using the equity
method (Note 1)
Investments
accounted for
using the equity
method (Note 2)
Investments
accounted for
using the equity
method (Note 1)

Note 1: The a mo unt was base d o n audite d fi nancial st atement s of t he i nveste e.

Note 2: The a mo unt was base d o n no n -au dited fi nanci al stateme nts of the inv estee .

Note 3: All t he t ransactio ns were full y eli minate d u pon p reparation of t he consolidate d financial statements .

Note 4: Invest ment s i n mainland China a re i nclude d i n Table 8 -4.

  • 157 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

INFORMATION ON INVESTEES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 7-5

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

Investor Investee Location Main Businesses and
Products		 Original Investment Amount Original Investment Amount As ofJune 30,2020 As ofJune 30,2020 As ofJune 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2020 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Asia Polymer
Corporation		 APC (BVI) Holding Co., Ltd.
APC Investment Corporation
USI International Corp.
China General Plastics
Corporation
China General Terminal &
Distribution Corporation
Swanson Plastics
Corporation
Acme Electronics
Corporation
Taiwan United Venture
Capital Corp.
Thintec Materials
Corporation
USI Optronics Corporation		 British Virgin
Islands
Taipei
British Virgin
Islands
Taipei
Taipei
Taipei
Taipei
Taipei
Taipei
Taipei		 Reinvestment
Investment
Reinvestment
Production and sales
of plastic sheets,
plastic leather,
plastic tubes, plastic
granules, plastic
powder, profile
extrusion materials,
chlor-akali products
and other related
products
Warehousing and
transportation of
petro chemical raw
materials
Manufacture and
marketing of stretch
film and industrial
multi-layer
packaging film
Manufacture and
marketing of
manganese zinc,
manganese-zinc
ferrite, magnetic
powder and ferrite
core
Investment in high
technology
businesses
Manufacture of
reinforced plastic
products
Manufacture and
marketing of
sapphire products		 $ 408,148
(USD13,775 thousand)
200,000
82,964
( USD 2,800 thousand )
247,412
41,082
75,242
61,348
52,791
36,250
59,725		 $ 408,148
(USD13,775 thousand)

200,000

82,964
( USD 2,800 thousand )

247,412

41,082

75,242

61,348

52,791

36,250

59,725
11,342,594


20,000,000

2,800,000


42,527,153

18,667,464

12,266,779

6,056,623

3,913,533

1,825,000

5,972,464		 100.00
100.00
70.00
8.07
33.33
7.95
3.31
8.33
30.42
9.20		 $ 484,185
99,328
133,836
666,426
276,668
195,623
41,150
19,982
527
15,826		 $ 7,695

5,766

3,824

255,851

44,573

136,707

30,108
(
3,470 )

15
(
27,031 )		 $ 7,695

5,766

2,677

20,645

14,858

10,867

996
(
289 )

4
(
2,487 )		 Subsidiary (Note 1)
Subsidiary (Note 1)
Subsidiary (Note 1)
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method

(Continued)

  • 158 -
Investor Investee Location Main Businesses and
Products		 Original Investment Amount Original Investment Amount As ofJune 30,2020 As ofJune 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2020 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
APC (BVI)
Holding Co.,
Ltd.
APC
Investment
Corporation
Ever Conquest
Global Ltd.
Ever Victory
Global Ltd.		 Ever Conquest Global Ltd.
ACME Electronics (Cayman)
Corp.
USI International Corp.
Acme Electronics
Corporation
Swanson Technologies
Corporation
Ever Victory Global Ltd.
Dynamic Ever Investments
Limited		 British Virgin
Islands
British Cayman
Islands
British Virgin
Islands
Taipei
Taipei
British Virgin
Islands
Hong Kong		 Reinvestment
Reinvestment
Reinvestment
Manufacture and
marketing of
manganese zinc,
manganese-zinc
ferrite, magnetic
powder and ferrite
core
Manufacture and
marketing of EVA
film
Reinvestment
Reinvestment		 4,829,453
( USD
162,992
thousand
)
155,406
( USD 5,245 thousand )
35,556
( USD 1,200 thousand )
14,889
30,000
12,138,285
(USD
409,662
thousand
)
17,070,999
( USD
576,139
thousand
)
4,271,461
( USD
144,160
thousand
)

155,406
( USD 5,245 thousand )

35,556
( USD 1,200 thousand )

14,889

30,000

11,580,293
(USD
390,830
thousand
)

14,467,914
( USD
488,286
thousand
)		 162,992,000

8,316,450


1,200,000


1,884,548

3,000,000
409,662,000
576,139,000		 39.79
16.64
30.00
1.03
15.00
71.04
85.32		 4,708,408
189,229
57,358
12,804
(
15,097 )
11,834,053
( USD
399,394
thousand
)
16,627,237
( USD
561,162
thousand
)		 (
56,470 )
(
4,487 )

3,824
(
30,108 )
(
6,986 )

72,974
( USD2,429 thousand
)
(
81,208 )
( USD2,703 thousand
)		 (
21,270 )

-

-

-

-

-

-		 Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
(Note 1)
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method
Investments
accounted for using
the equity method

Note 1: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

Note 2: Investments in mainland China are included in Table 8 -5.

  • 159 -

USI CO RPO RATION AND SUBSIDIARIES

INFORMATION O N INVESTMENTS IN MAINLAND CHINA

FO R THE SIX MO NTHS ENDED JUNE 30, 2020

TABLE 8

(In Thousands of New Taiwa n Dollars, Unless Sta ted O therwise)

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 7)		 Paid-in Capital
(Note 7)		 Method
of
Investme
nt		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020
(Note 7)		 Investment Flows(Note 7) Investment Flows(Note 7) Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2020
(Note 7)		 Net Income (Loss) of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Notes 6 and 8)		 Carrying Amount
as of
March 31, 2020 (Notes
6 and 8)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2020
Outflow Inflow
Acme Electronics
(Kunshan) Co.,
Ltd.
Usig (Shanghai) Co.,
Ltd.
Fujian Gulei
Petrochemical Co.,
Ltd. (“Gulei”)		 Manufacture and
marketing of
manganese-zinc soft
ferrite core
Importing and
distributing various
chemical raw
materials and
products
Crude oil processing
and petroleum
products
manufacturing		 $ 910,382
( USD30,725 thousand)
148,150
( USD 5,000 thousand )
36,472,586
( RMB
8,714,400
thousand
)
Note 1
Note 2
Note 3		 $ 83,483
( USD 2,818 thousand )
148,150
( USD 5,000 thousand )
6,745,431
( USD
227,655
thousand
)		 $ -
-
80,531
( USD 2,718 thousand )		 $ -

-
-		 $ 83,483
( USD 2,818 thousand )

148,150
( USD 5,000 thousand )

6,825,962
( USD
230,373
thousand
)		 $ 3,882
( USD 131 thousand )
(
125 )
( USD
-4 thousand )
(
139,590 )
( USD-4,649 thousand )		 11.23
100.00
18.25		 $ 436
( USD
15 thousand )
(
125 )
( USD
-4 thousand )
(
29,321 )
( USD -976 thousand )		 $ 84,122
( USD 2,839 thousand )
121,638
( USD 4,105 thousand )
6,634,633
( USD
223,916
thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
March 31,2020(Note 7)		 Investment Amounts Authorized by
Investment Commission, MOEA (Notes 5 and 7)		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 7,234,116
(USD 244,148 thousand)		 $ 8,100,353
(USD 273,384 thousand)		 $ - (Note 4)

Note 1: The Compa ny reinveste d in China- based compa nies via Swa nla ke Tra ders Ltd. (100%) by wiring transfer funds to other areas.

Note 2: The Compa ny reinvested in the China area via the Cypress Epoc h Limited (100%).

Note 3: The Compa ny reinvested in 50% of the outstanding shares of G ulei via Ever Conq uest Global Limited (60.21%), then via Ever Victory G lobal Limited (71.04%), a nd finally via Dyna mic Ever I nvestments Limited (85.32%).

  • Note 4: As the Company has obta ined the certifica te of being q ualif ied for opera ting headq uarters issu ed by the Industrial Development Bureau, MO EA No. 10920403810 on February 11, 2020, the upper limit on investment i n mainla nd China is not a pplica ble.

  • Note 5: As included in the certifica te of being q ualified for opera ting hea dquarters issued by the Indust rial Development Burea u, MO EA No. 10500116380 on September 1, 2016, No. 10500234240 on December 29, 2016, and No. 10500234240 on February 26, 2020, the Company wa s able to wire tra nsfer US$257,939 thousa nd to G ulei.

  • Note 6: Except f or Gulei, All the tra nsa ctions were fully elimina ted upon prepara tion of the consolida ted fina ncial sta tements.

Note 7: The amount was calc ula ted using the spot excha nge rate as of J une 30, 2020.

  • Note 8: Except for ACME Elec tronics ( Kunshan) Co., Ltd., whose numbers were based on its f inanc ial statements reviewed by the Certified Public Accountants of its ROC parent c ompany, all the other compa nies’ were based o n non-reviewed fina ncial sta tements.

  • 160 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation (ACME))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 8-1

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

Investee Company Main Businesses and
Products		 Paid-in Capital Paid-in Capital Method of
Investment
(Note 1)
Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020
(Note 5)		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2020
(Note 5)		 Net Income (Loss) of
the Investee (Note 6)		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Notes 4, 6 and 8)		 Carrying Amount
as of
March 31, 2020 (Notes
7 and 8)
Accumulated
Repatriation of
Investment Income
as of June 30, 2020
Outflow Inflow
Acme Electronics
(Kunshan) Co., Ltd.
Acme Electronics
(Guang-Zhou) Co.,
Ltd.		 Manufacture and
marketing of
manganese-zinc
soft ferrite core
Manufacture and
marketing of
manganese-zinc
soft ferrite core		 USD
30,725
thousand
USD
19,200
thousand		 II
II		 $ 374,188
( USD
11,144
thousand
)
619,676
( USD
19,200
thousand
)		 $ -
-		 $ -

-		 $ 374,188
( USD
11,144
thousand
)

619,676
( USD
19,200
thousand
)		 $ 3,882
( RMB 933 thousand )
26,701
( RMB
6,326
thousand
)		 51.27
100.00		 $ 1,990
( RMB 489 thousand )
26,701
( RMB
6,326
thousand
)		 $ 384,246
( RMB
91,809
thousand
)
808,283
( RMB
193,124
thousand
)		 $ -
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 899,093（USD 30,344 thousand）
(Notes 3 and 7)		 $ 1,085,436（USD 36,633 thousand）
(Notes 3 and 7)		 $ - (Note 2)

Note 1: Investment method II indicates that ACME reinvested in the China area via another investment area.

Note 2: As the Compa ny has obtained the certifica te of being q ualified f or operating hea dq uarters issued by the Industrial Developmen t Bureau, MO EA No. 09704604680 on August 29, 2008, the upper limit on investment in mainland China is not applicable.

Note 3: ACME Electronics (Kunshan) transferred earnings to ordinary shares, and ACME increased the amount of US$6,289 thousan d at its ownership percentage.

Note 4: ACME recognized the investment gain (loss), according to Certif ied Public Accountants and auditing financial report accepted in the ROC.

Note 5: The calculation was based on the exchange rate on the original investment date.

Note 6: The calculation was based on the average exchange rate from January 1, 2020 to June 30 , 2020.

Note 7: The amount was calculated using the spot exchange rate on June 30, 2020.

Note 8: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 161 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation)

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 8-2

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

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 1)		 Paid-in Capital
(Note 1)		 Method of Investment Method of Investment Accumulated
Outward
Remittance
for Investment
from
Taiwan as of
January1,2020		 Investment Flows Investment Flows Accumulated
Outward
Remittance
for Investment
from
Taiwan as of
June 30,2020		 Net Income (Loss)
of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 3)		 Carrying Amount
as of
March 31, 2020
(Note 3)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2020
Outflow Inflow
Swanson Plastics
(Kunshan) Co.,
Ltd.
ASK-Swanson
(Kunshan) Co.,
Ltd.
Swanson Plastics
(Tianjin) Co.,
Ltd.		 Production, sales and
development of
multi-functional
film, optical film,
etc.
Management of PE
release film and
other release
products
Production, sales and
development of
multi-functional
film, optical film,
etc.		 $ 393,783
( USD
13,290
thousand)
269,633
( USD
9,100
thousand
)
317,041
( USD
10,700
thousand
)		 Indirect investment via Swanson
International Ltd. of British
Cayman Islands
Indirect investment in A.S. Holdings
(UK) Limited via Swanson
International Ltd.
Indirect investment via Swanson
(Singapore) Private Ltd.		 $ 223,930
193,447
170,754		 $ -
-
-		 $ -
-
-		 $ 223,930
193,447
170,754		 $ 60,361
( USD
2,014
thousand
)
21,892
( USD
730
thousand
)
(
19,501 )
( USD
-650
thousand
)		 100.00
100.00
100.00		 $ 60,361
( USD
2,014
thousand
)
21,892
( USD
730
thousand
)
(
19,501 )
( USD
-650
thousand
)		 $ 1,061,326
( USD
35,819
thousand
)
527,814
( USD
17,814
thousand
)
111,695
( USD
3,770
thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 588,131 $ 971,442
(USD 32,786 thousand)		 $ - (Note 2)

Note 1: Paid in capital and upper limit on the investment amount stipulated by Industrial Development Bureau, MOEA were calcu lated using the spot exchange rate on June 30, 2020.

Note 2: According to the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA N o. 10920418410, the upper limit on investment in mainland China pursuant to the “Principle of Investment or Technical Cooperation i n Mainland China” is not applicable, and the effective period is from 2020 to 2023.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 162 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 8-3

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

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 1)		 Paid-in Capital
(Note 1)		 Method of Investment Accumulated
Outward
Remittance
for Investment from
Taiwan as of
January 1, 2020
(Note 1)		 Accumulated
Outward
Remittance
for Investment from
Taiwan as of
January 1, 2020
(Note 1)		 Investment Flows Investment Flows Accumulated
Outward
Remittance
for Investment from
Taiwan as of
June 30, 2020 (Note
1)
Net Income (Loss)
of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 5)		 Carrying Amount
as of
March 31, 2020
(Notes 1 and 5)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2020

Outflow		 Inflow
Continental General
Plastics
(ZhongShan) Co.,
Ltd. (“CGPC (ZS)”)
(Note 4)
CGPC Consumer
Products
Corporation
(“CGPC (CP)”)
(Note 4)		 Manufacture and
marketing of PVC
leather and
third-time
processed products
Manufacture and
marketing of PVC
third-time
processed products		 $ 592,600
( USD
20,000
thousand)
44,445
( USD
1,500
thousand
)		 Indirect investment via
CGPC (BVI) Holding
Co., Ltd.
Indirect investment via
CGPC (BVI) Holding
Co., Ltd.		 $ 592,600
( USD
20,000
thousand
)
44,445
( USD
1,500
thousand
)		 $ -
-		 $ -
-		 $ 592,600
( USD
20,000
thousand
)
44,445
( USD
1,500
thousand
)		 $ 1,440
( USD48 thousand)
16
( USD 1 thousand )
100.00
100.00		 $ 1,440
( USD48 thousand)
16
( USD 1 thousand )
$ 252,664
( USD
8,527
thousand
)
12,976
( USD
438
thousand
)		 $ -
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2020(Notes 1 and 3)		 Investment Amounts Authorized by
Investment Commission, MOEA (Note 1)		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA(Note 2)
$ 802,440（USD 27,082 thousand） $ 930,382（USD 31,400 thousand） $ -

Note 1: The amount was calculated using the spot exchange rate as of June 30, 2020.

  • Note 2: As the CGPC obtained the certificate of qualification of operating headqu arters issued by the Industrial Development Bureau No. 10620424930 on September 22, 2017, the upper limit on investment in ma inland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable.

  • Note 3: QuanZhou Continental General Plastics Co., Ltd. (“CGPC (QZ)”) and Union (Zhong Shan) Co., Ltd. (“Union (ZS)”) completed dissolution procedures, and CGPC (BVI) Holding Co., Ltd. (“CGPC (BVI)”) retrieved the residual assets. The shares of Continental General Plast ics (SanHe) Co., Ltd. were fully sold, and CGPC (BVI) retrieved the residual assets. However, the amount of capital has not b een wired back to Taiwan. The accumulated amount includes the investment amount of CGPC (QZ) of $20,674 thousand (US$684 thousand), the investment amount of Union (ZS) of $27,142 thousand (US$898 thousand) and the investment amount of Continental General Plastics (SanHe) Co., Ltd. of $120,900 thousand (US$4,000 thousand).

  • Note 4: The board of directors of CGPC passed a resolution to d issolve CGPC (ZS) and CGPC (CP) in October 24, 2011. As of June 30, 2020, the dissolution procedures have not yet been completed.

  • Note 5: All the transactions were fully eliminated upon preparation of the consolidated financial statements. The recognition of investment income (loss) was based on financial statements which had not been reviewed by CPA.

  • 163 -

USI CORPORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Company, Ltd. ( TTC))

INFO RMATIO N ON INV ESTMENTS IN MAINLA ND CHINA

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 8-4

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

Investee Company Main Businesses and
Products		 Paid-in Capital Paid-in Capital Method of Investment Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2020		 Net Income (Loss) of
the Investee (Note 5)		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 5)		 Carrying Amount
as of
March 31, 2020 (Note
5)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2020
Outflow Inflow
Taita Chemical
(Zhongshan) Co.,
Ltd. (“TAITA (ZS)”)
Taita Chemical
(Tianjin) Co., Ltd.
(“TAITA (TJ)”)
ACME Electronics
(Kunshan) Co., Ltd.
(“ACME (KS)”)		 Production and
marketing of
polystyrene
derivatives
Production and
marketing of
polystyrene
derivatives
Manufacturing and
marketing of
manganese-zinc soft
ferrite core		 $ 1,370,388
(USD46,250 thousand)
（Note 1）
810,381
(USD27,350 thousand )
（Note 2）
910,382
(USD30,725 thousand )		 Investment through a
holding company
registered in a third
region
Investment through a
holding company
registered in a third
region
Investment through a
holding company
registered in a third
region ACME
Electronics (Cayman)
Corp		 $ 1,274,090
(USD43,000 thousand )
770,380
(USD26,000 thousand)
40,119
( USD 1,354 thousand )		 $ -
-
-		 $ -
-
-		 $ 1,274,090
(USD43,000 thousand)
770,380
(USD26,000 thousand )
40,119
( USD 1,354 thousand )		 $ 200,104
( USD6,684 thousand)
(
37,163 )
( USD-1,239 thousand)
3,882
( USD 131 thousand )		 100.00
100.00
5.39		 $ 200,104
( USD 6,684 thousand )
（Note 6）
(
37,163 )
( USD-1,239 thousand)
（Note 6）
209
( USD
7 thousand)		 $ 2,425,707
(USD81,867 thousand )
（Note 6）

(
154,559 )
( USD-5,216 thousand)
（Note 6）
40,415
( USD 1,364 thousand )		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 2,084,589
(USD 70,354 thousand)		 $ 2,246,467
(USD 75,817 thousand)（Note 3）		 $ -（Note 4）

Note 1: TA ITA ( ZS) resolve d t o is sue share divide nds of U S$3,250 t hou sand in 2007.

Note 2: TA ITA ( TJ) re solved to iss ue s hare divi dends of U S$1,350 t hou sand in 2012.

Note 3: The a mo unt dist ribut ed from s hare divide nds include d U S$3,250 t hou sand f rom TAITA (ZS), U S$1,3 50 thou sand f rom TAITA (TJ) a nd US$802 t hou sand f rom ACME ( KS).

Note 4 : As t he TTC obtained t he certi ficate of qualifica tion of ope rating hea dquarte rs iss ued by the Indu stria l Developme nt B ureau No. 10820415160 on Ju ne 6, 2019, the uppe r limit on inve stme nt i n Mai nland China p ursuant to the “P rinciple of Inves tme nt or Tec hnical Coope ration in Mai nland China” is not applica ble.

Note 5: The reco gnition of inve stme nt inco me (los s) w as base d on fi nancial state me nts a udite d by CPA of the pare nt c ompa ny of TTC in Taiwan.

Note 6: All t he t ransactio ns were full y eli m inate d u pon p reparation of t he consolidate d financial statements .

  • 164 -

USI CORPORA TIO N A ND REINV ESTMENT CO MPA NIES

(Asia Pol ymer Corp oration (A P C))

INFO RMATIO N ON INV ESTMENTS IN MAINLA ND CHINA

FOR THE SIX MONTHS END ED JU NE 30, 2020

TABLE 8-5

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

Investee Company Main Businesses and
Products		 Paid-in Capital (Note
3)		 Method of
Investment (Note
1)
Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2020		 Net Income (Loss) of
the Investee (Note 3)		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 3)		 Carrying Amount
as of
March 31, 2020 (Note
4)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2020
Outflow Inflow
ACME Electronics
(Kunshan) Co., Ltd.
USI Trading(Shanghai)
Co., Ltd.
Fujian Gulei Petrochemical
Co., Ltd.		 Manufacture and
marketing of
manganese-zinc soft
ferrite core
Sales of chemical
engineering
products and
equipment
Processing of crude oil
and manufacturing
of petroleum
products		 $ 910,382
(USD30,725 thousand )
74,075
( USD 2,500 thousand )
36,472,378
( RMB
8,714,400
thousand
)		 (2)
ACME
Electronics
(Cayman)
Corp.
(2)
APC (BVI)
Holding Co.,
Ltd.
(2)
Dynamic Ever
Investments
Ltd.,（Note 2）		 $ 123,775
( USD 4,177 thousand )
89,945
( USD 3,036 thousand )
3,942,967
( USD
133,073
thousand
)		 $ -

-

555,135
( USD
18,736
thousand)		 $ -

-
-		 $ 123,775
( USD 4,177 thousand )

89,945
( USD 3,036 thousand )

4,498,101
(USD151,809 thousand)		 B $ 3,882
B
6,759
A (
139,590 )		 16.64
100.00
12.06		 $ 646
6,759
(
17,878 )		 $ 124,721
110,702

4,384,444		 $ -
-
-

A c c u m u la t e d O u t w a r d R e m i t t a n c e f o r Upper Limit on the Amount of Investment I n v e s t m e n t A m o u n t s A u t h o r i z e d b y I n v e s t m e n t i n M a i n l a n d C h i n a a s o f J u n e 3 0 , 2 0 2 0 I n v e s t m e n t C o m m i s s i o n , M O E A St ip ula t ed b y Inves tme n t Co mmi ssi on, M O E A $ 4,854,642 （ Note 5 ） $ 6,223,355 $ - （ USD 163,842 thousand ） （ USD 210,036 thousand ） （ Note 6 ）

Note 1: Investments are divided into three categories as follows:

a. Direct investment.

  • b. Investments through a holding company registered in a third region.

c. Others.

Note 2: The Company reinvested in 50% of the outstanding shares of Gulei via Ever Conquest Global Limited (37.97%), then via Ever Victory Global Ltd. (71.04%), and finally via Dynamic Ever Investments Ltd. (85.32%).

Note 3: For the column of investment gain (loss):

  • a. If there is no investment gain (loss) during the preparation, it should be noted.

  • b. If the basis for the recognition of investment gain (loss) is classified into the following three types, it should be noted as follows:

  • 1) Financial statements audited by international accounting firms which have a cooperation relationship with an accounting firm in the Republic of China.

2) Financial statements audited by the parent company’s CPA.

3) Others.

Note 4: The amount was calculated using the exchange rate as at June 30, 2020.

Note 5: APC indirectly invested subsidiaries in Mainland China through APC (BVI) Holding Co., Ltd. investing in Silicon Technology Investment (Cayman) Corp. (STIC) and Solargiga Energy Holdings Ltd.

  • Note 6: As APC has obtained the certificate of qualification for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10800262940 on February 26, 2020, the upper limit on investments in mainland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable.

Note 7: Except for the investment in Fujian Gulei Petrochemical Co., Ltd., all the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 165 -

USI CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 9

(In Thousands of New Taiwan Dollars, Unless Stated Otherw ise)

No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transactions Details Transactions Details
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation		 Swanson Plastics Corporation
Forever Young Company Limited
USI Trading (Shanghai) Co., Ltd.
USI Far East (HK) Co., Ltd.
Asia Polymer Corporation
Asia Polymer Corporation
Swanson Plastics Corporation
Asia Polymer Corporation
USI Far East (HK) Co., Ltd.
Forever Young Company Limited
USI Trading (Shanghai) Co., Ltd.
Swanson Plastics Corporation
Asia Polymer Corporation
Taiwan VCM Corporation
Asia Polymer Corporation
Asia Polymer Corporation		 a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a		 Sales revenue
Sales revenue
Sales revenue
Sales revenue
Sales revenue
Purchase
Purchase
Raw materials sales revenue
Accounts receivable
Accounts receivable
Accounts receivable
Other receivables
Other receivables
Other receivables
Other company related
payables
Dividend payable		 $ 32,557
53,258
49,515
50,353
25,559
311,023
26,107

27,121
11,379
27,094
26,400
29,430
32,838
26,871
73,987
50,678		 No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference		 0.15
0.24
0.22
0.23
0.12
1.40
0.12
0.12
0.02
0.04
0.04
0.04
0.05
0.04
0.10
0.07

(Continued)

  • 166 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transactions Details Transactions Details
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
0
0
0
1
1
1
1
1
1
2
2
2
2
2
2		 USI Corporation
USI Corporation
USI Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation		 USI Management Consulting
Corporation
China General Terminal & Distribution
Corporation
Taiwan VCM Corporation
China General Terminal & Distribution
Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Union Polymer International
Investment Corporation
USIG (Shanghai) Co., Ltd
USIG (Shanghai) Co., Ltd
China General Terminal & Distribution
Corporation
Swanson Plastics Corporation
USI Management Consulting
Corporation
Union Polymer International
Investment Corporation
Asia Polymer Corporation
Taiwan VCM Corporation		 a

a
a

c
c
c
c
c
c

c
c
c
c
c
c		 Management services
expense
Direct material costs
variance
Other payable
Storage tank operating
expense
Sales revenue
Purchase
Dividend payable
Sales revenue
Account receivable
Cost of good purchased
Cost of good purchased
Management services
expense
Dividend payable
Dividend payable
Purchase		 60,984
22,272
88,128
21,477
20,724
13,655
120,026
37,910
11,485
38,520
10,385
38,318
65,796
21,264
1,758,467		 No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference		 0.08
0.03
0.40
0.10
0.09
0.06
0.54
0.17
0.05
0.05
0.01
0.17
0.30
0.10
7.92

(Continued)

  • 167 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transactions Details Transactions Details
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
2
2
2
3
3
3
3
4
4
4
4
4
4
4
4
5
5
6		 China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
USI Management Consulting
Corporation
USI Management Consulting
Corporation
Taita Chemical (Zhongshan) Co., Ltd.		 Taiwan VCM Corporation
CGPC America Corporation
CGPC America Corporation
USI Management Consulting
Corporation
Union Polymer International
Investment Corporation
Taita Chemical (Zhongshan) Co., Ltd.
Taita Chemical (Tianjin) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Kunshan) Co., Ltd.
ACME Electronics (Cayman) Corp.
Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Asia Polymer Corporation
Swanson Plastics Corporation
Taita Chemical (Tianjin) Co., Ltd.		 c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c		 Accounts payable
Sales revenue
Accounts receivable
Management services
expense
Dividend payable
Sales revenue
Other receivables
Sales revenue
Sales revenue
Cost of goods sold
Processing fee (entered as
cost of goods sold)
Accounts receivable－
related parties
Other receivables－related
parties
Note payables and accounts
payable－related parties
Note payables and accounts
payable－related parties
Management services
revenue
Management services
revenue
Other receivables		 $ 375,638
189,748
98,979
25,164
36,884
283,260
276,064
61,788
41,023
31,545
211,820
20,117
210,229
208,901
14,796
20,254
15,845
64,318		 No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference		 1.69
0.85
0.45
0.04
0.17
1.28
1.24
0.28
0.18
0.14
0.95
0.03
0.29
0.29
0.02
0.03
0.07
0.29

(Continued)

  • 168 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transactions Details Transactions Details
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
7
7
7
8
8
8
9
9
9
9
9
9
9
9
9
9
9
10		 Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
CGPC Polymer Corporation
CGPC Polymer Corporation
CGPC Polymer Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Forever Young Company Limited		 Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
ACME Ferrite Product Sdn. Bhd.
Taiwan VCM Corporation
Taiwan VCM Corporation
Taiwan VCM Corporation
USI Corporation
USI Corporation
USI Corporation
USI Corporation
Asia Polymer Corporation
Asia Polymer Corporation
USI Management Consulting
Corporation
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Swanson Plastics (Kunshan) Corp.
Swanson Plastics (India) Private Ltd.		 c
c
c
c
c
c
b
b
b
b
c
c
c
c
c
c
c
c		 Sales revenue
Accounts receivable－
related parties
Sales revenue
Purchase
Accounts payable
Other receivables
Sales revenue
Cost of goods sold
Accounts payable
Other payables
Cost of goods sold
Sales revenue
Management services
expense
Accounts receivable
Sales revenue
Other income
Accounts receivable
Sales revenue		 23,030
10,973
27,604
1,518,180
275,063
13,076
26,107
32,242
10,701
29,666
20,723
13,655
15,845
18,268
27,910
10,782
31,016
23,216		 No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference		 0.03
0.02
0.12
6.83
1.24
0.06
0.12
0.15
0.05
0.13
0.03
0.02
0.07
0.03
0.04
0.02
0.04
0.10

(Continued)

  • 169 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transactions Details Transactions Details
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
10
10
10
10
10
10
10
10
10
10
11
11
12
12
12
12
13		 Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Swanson Plastics (Kunshan) Corp.
Swanson Plastics (Kunshan) Corp.
SWANSON PLASTICS (SINGAPORE)
PTE LTD.
SWANSON PLASTICS (SINGAPORE)
PTE LTD.
SWANSON PLASTICS (SINGAPORE)
PTE LTD.
SWANSON PLASTICS (SINGAPORE)
PTE LTD.
ASK-Swanson (Kunshan) Co., Ltd.		 Swanson Plastics (Kunshan) Corp.
Swanson Plastics (Kunshan) Corp.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
PT Swanson Plastics Indonesia
PT Swanson Plastics Indonesia
Swanson International Ltd.
USI Corporation
USI Corporation
API-Swanson (Kunshan) Co., Ltd.
API-Swanson (Kunshan) Co., Ltd.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
PT Swanson Plastics Indonesia
PT Swanson Plastics Indonesia
Swanson Plastics (Tainjin) Co., Ltd.		 c
c
c
c
c
c
c
c
b
b
c
c
c
c
c
c
c		 Accounts receivable
Sales revenue
Accounts receivable
Cost of goods sold
Sales revenue
Accounts receivable
Sales revenue
Other receivables
Accounts payable
Cost of goods sold
Accounts receivable
Sales revenue
Cost of goods sold
Accounts payable
Other receivables
Cost of goods sold
Other receivables		 $ 85,748
166,691
30,730
66,622
188,826
20,136
58,474
92,001
27,094
52,144
41,229
69,703
119,530
16,267
29,630
25,741
183,825		 No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference
No significant
difference		 0.39
0.75
0.14
0.30
0.85
0.03
0.26
0.41
0.12
0.07
0.06
0.31
0.54
0.07
0.04
0.04
0.26

Note 1: The information about the transactions between the Company and the subsidiaries should be marked in the note column as fol lows:

  • a. The Company: 0.

  • b. The subsidiaries were marked from 1 in order of numeric characters by the companies.

  • 170 -

Note 2: Investment types are as follows:

  • a. The Company to the subsidiaries.

  • b. The subsidiaries to the Company.

  • c. Between subsidiaries.

  • Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • Note 4: The ratio of transaction amounts accounted for total sales revenue or assets is calculated as follows: (1) asset or liability: The ratio was c alculated based on the ending balance accounted for total consolidated assets; (2) income or loss: The ratio was calculated based o n the midterm accumulated amounts accounted for total consolidated sales revenue.

  • 171 -

USI CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 10

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

Investee Company Financial
Statement
Account		 Amount Percentag
e (％)		 Price Transaction Details Transaction Details Notes/Accounts Receivable
(Payable)		 Notes/Accounts Receivable
(Payable)		 Unrealized
Gains or
Losses		 Note
Payment Terms Compared to
General
Transactions		 Amount Percentage
(％)
USI Far East (HK) Co., Ltd.
USI Trading (Shanghai) Co.,
Ltd.
Dynamic Ever Investments
Limited		 Sales revenue
Sales revenue
Commission
expense
Management
service revenue
Other income
Other receivables
from related
parties		 $ 50,353
49,515
218

9,966
128
5,260		 1.10
1.08		 No significant
difference
－
－
－
－
－		 Within 60 days
after selling on
credit
Within 60 days
after selling on
credit
－
－
－
－		 No significant
difference
No significant
difference
－
－
－
－		 $ 14,240
26,400
-
-
-
-		 2.66
4.93
-
-
-
-		 $ -

-

-

-

-

-		 －
－
－
－
－
－

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 172 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation (APC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THR OUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE SIX MONTHS ENDED JUNE 30, 2020

TABLE 10-1

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

Investee Company Financial Statement
Account		 Amount Percentag
e (％)		 Price Transaction Details Transaction Details Notes/Accounts Receivable
(Payable)		 Notes/Accounts Receivable
(Payable)		 Unrealized
Gains or
Losses		 Note
Payment Terms Compared to
General
Transactions		 Amount Percentag
e (％)
USI Trading (Shanghai) Co., Ltd Sales revenue
Commission
expenses
Non-operating
income
and
expense - rental
income
Management
services expense
Other receivables to
related parties
Other payables to
related parties		 $ 37,910
217


757
61

8,382

1,326		 1.42
-
-
-
-
-		 No significant
difference
－
－
－
－
－		 Within 90 days
after selling on
credit
－
－
－
－
－		 No significant
difference
－
－
－
－
－		 $ 11,485
-
-
-
-
-		 1.89
-
-
-
-
-		 $ -
-
-
-
-
-		 －
－
－
－
－
－

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 173 -

USI CORPORATION

INFORMATION ON MAJOR SHAREHOLDERS JUNE 30, 2020

TABLE 11

Name of major shareholder Shares Shares
Number of Shares
Percentage of
Ownership (%)
Shing Lee Enterprise (Hong Kong) Limited
Wholegainer Company Limited’s trust account
under custody of Fubon Securities Co., Ltd.
Asia Polymer Corporation		 173,776,546

110,000,000
101,355,673		 14.61
9.25
8.52

  • Note 1: The table discloses shareholding information of shareholder s whose shareholding percentage is more than 5%. The Taiwan Depository & Clearing Corporation (TDCC) calculates the total number of ordinary shares and special shares (including treasury shares) that have completed the dematerialized registration and delivery on the last business day of the quarter. The share capital reported in the Company’s consolidated financial statements and the actual number of shares that have completed the dematerialized registration and delivery may be different due to difference in the basis of calculation.

  • Note 2: In the event where the shareholder delivers its equity to trust, the information is disclosed in the form of individual trust accounts opened by the trustee. As for shareholders declaring insider equity holdings of more than 10% of the shares in accordance with the Securities and Exchange Act, their shareholdings include the shares held by themselves plus the shares delivered to trust while retaining the right to determine the utilization. For information on insider equity declarations, please refer to the Market Observation Post System.

  • 174 -

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