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USI Interim / Quarterly Report 2020

Nov 13, 2020

51764_rns_2020-11-13_963cc51c-ec55-4b03-a722-493dbc767db9.pdf

Interim / Quarterly Report

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USI CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements for the Nine Months Ended September 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§

I
T
E
M
P
A
G
E
I. Cover
1
II.
Table of Content
2~3
III. Independent Auditors’ Review
Report
4~6
IV. Consolidated Balance Sheets
7
V.
Consolidated Statements of
Comprehensive Income
8
VI. Consolidated Statements of
Changes in Equity
9
VII. Consolidated Statements of Cash
Flows
10~12
VIII. Notes to Consolidated Financial
Statements
(1) General Information
13
(2) Approval of Financial
Statements
13
(3) Application of New, Amended
and Revised Standards and
Interpretations
13~15
(4) Summary of Significant
Accounting Policies
15~18
(5) Critical Accounting
Judgments and Key Sources of
Estimation Uncertainty
18
(6) Information on Important
Accounting Items
18~92
(7) Related Party Transactions
92~93
(8) Collateralized Assets
93
(9) Significant Contingent
Liability and Unrecognized
Contractual Commitments
93~96
(10) Significant Disaster Loss
-
(11) Significant Events After the
Balance Sheet Date
-
(12) Others
96~102
(13) Separately Disclosed Items
1. Information on Significant
Transactions
102, 107~148,
165~170
2. Information on Reinvestment
102, 149~158		 F I N A N C I A L
S T A T E M E N T
NOTESNUM
B
E
R
-
-
-
-
-
-
-
1
2
3
4
5
6～34
35
36
37
-
-
38～39
40
40
  • 2 -
Business
3. Information on Investments in 103~104, 40
China 159~164,
171~172
4. Information on Major 104, 173
Shareholders
(14) Segment Information 104~106 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 September 30, 2020 and 2019, the related consolidated statements of comprehensive income for the three months ended September 30, 2020 and 2019 and for the nine months ended September 30, 2020 and 2019, the consolidated ststements of changes in equity and cash flows for the nine 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 Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the 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

  • 4 -

accounting matters, and applying analytical and other review procedures. 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 September 30, 2020 and 2019, the combined total assets of these non-significant subsidiaries and investments accounted for using the equity method were NT$27,851,838 thousand and NT$25,980,112 thousand, respectively, representing 38.23% and 35.89%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$3,172,770 thousand and NT$3,365,417 thousand, respectively, representing 11.07% and 10.09%, respectively, of the consolidated total liabilities; for the three months ended September 30, 2020 and 2019 and for the nine months ended September 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$158,797 thousand, NT$(363,376) thousand, NT$155,126 thousand, and NT$(327,106) thousand, respectively, representing 7.78%, 232.16%, 5.56%, and (23.35%), 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

  • 5 -

non-significant subsidiaries and joint ventures accounted for using the 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 position of the Group as of September 30, 2020 and 2019 and its consolidated financial performance for the three months ended September 30, 2020 and 2019 and its consolidated financial performance and its cash flows for the nine months ended September 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.

November 4, 2020

  • 6 -

USI CO RPO RATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2020, and December 31 and September 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

C o d e

2100
2110
2120
2170
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

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
 September 30, 2020
(Reviewed)
m
o
u
n
t
％

$ 8,901,630
12

5,043,744
7
142,066
-
426,926
1
458,308
1
5,164,375
7
375,626
-
14,117
-
4,138,769
6
766,920
1
299,728

-

25,732,209

35

2,411,577
3
348,557
1
18,513,834
25
23,148,490
32
797,723
1
578,115
1
269,026
-
11,355
-
634,778
1
400,236

1

47,113,691

65

$ 72,845,900
100

$ 3,747,363
5

894,490
1
8,622
-
2,448,891
3
2,051,301
3
676,777
1
68,936
-
-
-
18,859
-
419,837

1

10,335,076

14

6,993,555
10
7,929,969
11
136,375
-
1,442,624
2
406,156
-
1,326,803
2
78,719

-

18,314,201

25

28,649,277

39

11,887,635

16

341,299

1

3,109,625
4
781,059
1
4,306,310

6

8,196,994

11


559,704)
(
1)


475,606)

-

19,390,618
27
24,806,005

34

44,196,623

61

$ 72,845,900
100
 (In Thousands of New Taiwa n Dollars)
December 31, 2019
(Audited)
September 30, 2019
(Reviewed)
m
o
u
n
t
％
A
m
o
u
n
t
％
$ 7,927,403
11
$ 8,416,958
12
6,358,025
9
5,740,799
8
174,789
-
163,572
-
506,129
1
350,179
1
634,435
1
785,404
1
6,411,077
9
6,770,998
9
277,131
-
307,483
1
11,919
-
11,441
-
4,919,506
7
5,249,858
7
782,608
1
787,003
1
17,150

-

275,414

-
28,020,172

39

28,859,109

40
2,196,724
3
2,268,030
3
311,942
-
311,895
-
14,867,168
21
15,214,244
21
23,228,911
33
23,102,592
32
885,508
1
840,950
1
524,408
1
532,889
1
269,026
-
269,026
-
17,004
-
20,304
-
643,715
1
597,589
1
461,208

1

369,565

1
43,405,614

61

43,527,084

60
$ 71,425,786
100
$ 72,386,193
100
$ 4,258,980
6
$ 5,006,670
7
1,352,810
2
1,678,722
2
4,136
-
2,144
-
2,757,368
4
2,733,959
4
1,938,026
3
1,892,626
3
517,913
1
378,532
1
70,814
-
64,608
-
1,443,156
2
1,511,461
2
28,221
-
24,499
-
262,958

-

325,721

-
12,634,382

18

13,618,942

19
6,991,327
10
6,990,588
10
9,049,770
12
9,184,369
13
136,375
-
136,375
-
1,411,901
2
1,422,781
2
481,964
1
434,628
-
1,473,867
2
1,501,635
2
69,253

-

72,271

-
19,614,457

27

19,742,647

27
32,248,839

45

33,361,589

46
11,887,635

17

11,887,635

17
271,613

-

268,630

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

6

4,070,308

6
7,756,919

11

7,480,587

10

781,058)
(
1)
(
520,032)
(
1)

475,606)
(
1)
(
475,606)
(
1)
18,659,503
26
18,641,214
26
20,517,444

29

20,383,390

28
39,176,947

55

39,024,604

54
$ 71,425,786
100
$ 72,386,193
100
A m
o
u
n
t
$ 8,901,630
5,043,744
142,066
426,926
458,308
5,164,375
375,626
14,117
4,138,769
766,920
299,728

25,732,209

2,411,577
348,557
18,513,834
23,148,490
797,723
578,115
269,026
11,355
634,778
400,236

47,113,691

$ 72,845,900

$ 3,747,363
894,490
8,622
2,448,891
2,051,301
676,777
68,936
-
18,859
419,837

10,335,076

6,993,555
7,929,969
136,375
1,442,624
406,156
1,326,803
78,719

18,314,201

28,649,277

11,887,635

341,299

3,109,625
781,059
4,306,310

8,196,994


559,704)


475,606)

19,390,618
24,806,005

44,196,623

$ 72,845,900
 A m
o
u
n
t
$ 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
1,938,026
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
















(
(















(
(

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 September 30, 2020 and 2019 and for the Nine Months Ended September 30, 2020 and 2019 (Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars, Except for Earnings per Share)

C o d e

4100
OPERATING REVENUE (Note 27)

5110
COST OF GOODS SOLD (Notes 11, 15, 16, 18,
24, 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 (LOSS) 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
September30,2020
A
m
o
u
n
t
％

$ 12,414,401
100


9,867,920
80


2,546,481
20

476,397
4
296,602
2

91,272

1


864,271

7


1,682,210
13

20,392
-
121,149
1
23,201
-

(
50,112 )
-

(
44,798)

-


69,832

1

1,752,042
14

331,358

3

1,420,684
11

651

-


1,421,335
11


249,731
2

(
957)

-


248,774

2

431,058
3

(
60,495)

-


370,563

3


619,337

5

$ 2,040,672
16

$ 600,799
5


820,536

6

$ 1,421,335
11

$ 923,085
7


1,117,587

9

$ 2,040,672
16

$ 0.56

$ 0.56

$ 0.56

$ 0.56
 For the Three Months Ended
September30,2019
A
m
o
u
n
t
％

$ 13,990,494
100


12,340,401
88


1,650,093
12

496,864
4
307,204
2

109,191

1


913,259

7


736,834

5

33,107
-
170,205
1
(
139,531 ) (
1 )
(
69,987 )
-

(
2,100)

-

(
8,306)

-

728,528
5

157,052

1

571,476
4
(
793)

-


570,683

4

(
236,013 ) (
2 )

658

-

(
235,355)
(
2)

(
572,438 ) (
4 )

80,592

1

(
491,846)
(
3)

(
727,201)
(
5)

($ 156,518)
(
1)

$ 301,812
2


268,871

2

$ 570,683

4

( $ 51,396 )
-

(
105,122)
(
1)

($ 156,518)
(
1)

$ 0.28

$ 0.28

$ 0.28

$ 0.28
 For the Nine Months Ended
September30,2020
A
m
o
u
n
t
％

$ 34,627,203
100


28,733,038
83


5,894,165
17

1,333,152
4
886,265
2

260,038

1


2,479,455

7


3,414,710
10

80,764
-
289,349
1

819
-
(
174,117 ) (
1 )
(
114,593)

-


82,222

-

3,496,932
10

765,353

2

2,731,579
8

2,107

-


2,733,686

8


325,071
1

(
674)

-


324,397

1

(
300,671 ) (
1 )

31,266

-

(
269,405)
(
1)


54,992

-

$ 2,788,678

8

$ 1,112,599
3


1,621,087

5

$ 2,733,686

8

$ 1,255,876
4


1,532,802

4

$ 2,788,678

8

$ 1.04

$ 1.04

$ 1.04

$ 1.04
 For the Nine Months Ended
September30,2019		 For the Nine Months Ended
September30,2019
A
m
o
u
n
t
$ 12,414,401


9,867,920


2,546,481

476,397
296,602

91,272


864,271


1,682,210

20,392
121,149
23,201
(
50,112 )
(
44,798)


69,832

1,752,042


331,358

1,420,684


651


1,421,335


249,731
(
957)


248,774

431,058
(
60,495)


370,563


619,337

$ 2,040,672

$ 600,799

820,536

$ 1,421,335

$ 923,085

1,117,587

$ 2,040,672

$ 0.56
$ 0.56
$ 0.56
$ 0.56		 A
m
o
u
n
t
$ 13,990,494


12,340,401


1,650,093

496,864
307,204

109,191


913,259


736,834

33,107
170,205
(
139,531 )
(
69,987 )
(
2,100)

(
8,306)

728,528

157,052

571,476
(
793)


570,683

(
236,013 )

658

(
235,355)

(
572,438 )

80,592

(
491,846)

(
727,201)

($ 156,518)

$ 301,812

268,871

$ 570,683

( $ 51,396 )
(
105,122)

($ 156,518)

$ 0.28
$ 0.28
$ 0.28
$ 0.28		 A
m
o
u
n
t
$ 34,627,203


28,733,038


5,894,165

1,333,152
886,265

260,038


2,479,455


3,414,710

80,764
289,349

819
(
174,117 )
(
114,593)


82,222

3,496,932


765,353

2,731,579

2,107


2,733,686


325,071
(
674)


324,397

(
300,671 )

31,266

(
269,405)


54,992

$ 2,788,678

$ 1,112,599

1,621,087

$ 2,733,686

$ 1,255,876

1,532,802

$ 2,788,678

$ 1.04
$ 1.04
$ 1.04
$ 1.04		 A
m
o
u
n
t
$ 41,985,100


37,195,424


4,789,676

1,531,348
970,206

325,473


2,827,027


1,962,649

115,263
528,451
27,902
(
212,170 )

19,070


478,516

2,441,165

586,500

1,854,665

3,604


1,858,269

(
121,197 )

1,332

(
119,865)

(
395,199 )

57,915

(
337,284)

(
457,149)

$ 1,401,120

$ 997,873

860,396

$ 1,858,269

$ 806,218

594,902

$ 1,401,120

$ 0.93
$ 0.93
$ 0.93
$ 0.93		 ％






(
(





(

(





(
(
(
(

(

(

(
(

(
(
(



(
(
(






(
(





(

(

(





(





(

(
(

(
(










 100
88
12
4
2

1

7

5
-
1
-

-

-

1
6

2
4

-

4

-

-

-
(
1 )

-
(
1)
(
1)

3
2

2

4
2

1

3

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

  • 8 -

C o d e
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 nine months
ended Septemebr 30, 2019
D3
Other comprehensive income for
the nine months ended September
30, 2019, net of income tax
D5
Total comprehensive income for the
nine months ended September 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 SEPTEMBER 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 nine months ended September 30,
2020
D3
Other comprehensive income for the nine months
ended September 30, 2020, net of income tax
D5
Total comprehensive income for the nine
months ended September 30, 2020
C17
Changes in capital surplus
C7
Changes in 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 SEPTEMBER 30,
2020		 E q
u
i		 t y
A		 t
t
r
i		 b CO
Fo
u
t
a		 N SO
r t h
b		 USI C ORP OR
L ID AT E D ST A
e Ni n e M o n t h s
(Re vi
l
e
 AT I O N AND SUB SI
T E M E NT S OF C HA
E n d e d Se pt e m b e r 3
e w e d , No t A ud i t e d
t
o
O		 D IAR IE S
NG E S I N E QUIT Y
0 , 2 0 2 0 a n d 2 0 19
)
w
n
e
r		 s
o
f		 t
h
e		 C
o
m		 p ( I n
a
n
y

o
t
a
l
$ 18,187,153

9,509)
18,177,644
-
-

356,629 )
-
997,873

191,655)
806,218
2,482
11,499
-
-
$ 18,641,214
$ 18,659,503
-
-

594,382 )
-
1,112,599
143,277
1,255,876
18
50,438
19,165
-
-
$ 19,390,618		 Th o us a nd s of Ne w
No n -co n tr o l li n g
i n t e r e s t s
(Notes 8, 13, and 26)
$ 18,267,556
(
4,490)
18,263,066
-
-
-
(
705,440 )
860,396
(
265,494)

594,902
(
2,253 )
-
-

2,233,115
$ 20,383,390
$ 20,517,444
-
-
-
(
519,048 )
1,621,087
(
88,285)

1,532,802
-
(
50,635 )
-
-

3,325,442
$ 24,806,005		 Ta i
T o		 wa n D o l la r s)
t a l E q u i t y
$ 36,454,709

13,999)
36,440,710
-
-

356,629 )

705,440 )
1,858,269

457,149)
1,401,120
229
11,499
-
2,233,115
$ 39,024,604
$ 39,176,947
-
-

594,382 )

519,048 )
2,733,686
54,992
2,788,678
18

197 )
19,165
-
3,325,442
$ 44,196,623

Share Capital

(Note 26)
$ 11,887,635
-
11,887,635
-
-
-
-
-
-
-
-
-
-
-
$ 11,887,635
$ 11,887,635
-
-
-
-
-
-
-
-
-
-
-
-
$ 11,887,635		 C a
p
i
t		 a
l
S
u		 r p
l
u
s

t
h
e
r
s
o t e
2 6 )
$ 17,163
-
17,163
-
-
-
-
-
-
-
-
-
-
-
$ 17,163
$ 18,840
-
-
-
-
-
-
-
18
-
-
-
-
$ 18,858
e a cco m pa n yi n		 R e
t
a
i
n		 e
d
E
a
r
n
i
n
g
s
Un a ppr o pr i a t e d
E a r n i n g s
(Notes 13 and 26)
$ 3,513,943
(
9,509)
3,504,434
(
53,994 )
(
55,399 )
(
356,629 )
-
997,873

-

997,873
(
911 )
-
34,934

-
$ 4,070,308
$ 4,346,640
(
129,872 )
(
350,533 )
(
594,382 )
-
1,112,599

-

1,112,599
-
(
65 )
-
(
78,077 )

-
$ 4,306,310
n so l i d a t e d fi n a n ci a		 O
t
h
e
r		 E
q
u
i
t
y
Unrealized Gain
(Loss) on Financial
Assets at FVTOCI
(Notes 8, 26, and 29)


( $ 85,136 )

-
(
85,136 )
-
-
-
-
-
(
46,849)
(
46,849)
-
-
(
34,934 )

-
($ 166,919)
( $ 178,187 )
-
-
-
-
-

282,412

282,412
-
-
-
78,077

-
$ 182,302		 Tr
( N		 ea sury Shar es
o t e
2 6 )
$ 475,606 )
-

475,606 )
-
-
-
-
-
-
-
-
-
-
-
$ 475,606)
$ 475,606 )
-
-
-
-
-
-
-
-
-
-
-
-
$ 475,606)		 T
E x c h a n g e
D i f f e r e n c e s o n
Translating Foreign
O p e r a t i o n s

(Notes 26 and 29)
( $ 208,307 )

-
(
208,307 )
-
-
-
-
-
(
144,806)
(
144,806)
-
-
-

-
($ 353,113)
( $ 602,871 )
-
-
-
-
-
(
139,135)
(
139,135)
-
-
-
-

-
($ 742,006)
l st a t e m e n t s.
T r
T r
( N		 e a s u r y S h a r e
a n s a c t i o n s

o t e
2 6 )
$ 233,983
-
233,983
-
-
-
-
-
-
-
-
11,499
-
-
$ 245,482
$ 245,482
-
-
-
-
-
-
-
-
-
19,165
-
-
$ 264,647		 Shares of Changes
in Capital Surplus
o f A s s o c i a t e s

(Notes 13 and 26)
$ 2,592

-
2,592
-
-
-
-
-

-

-
3,393
-
-

-
$ 5,985
$ 7,291
-
-
-
-
-

-

-
-
50,503
-
-

-
$ 57,794		 O
( N
L e
( N		 g a l R e s e r v e
o t e
2 6 )
$ 2,925,759
-
2,925,759
53,994
-
-
-
-
-
-
-
-
-
-
$ 2,979,753
$ 2,979,753
129,872
-
-
-
-
-
-
-
-
-
-
-
$ 3,109,625
o t e s a r e a n i n t e		 Spe ci a l Re se r ve
( N o t e
2 6 )
$ 375,127

-
375,127
-
55,399
-
-
-

-

-
-
-
-

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

-

-
-
-
-
-

-
$ 781,059
gr a l pa r t o f t h e co










































T h










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(


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(
(


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(

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(
(
(

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(
(
(
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(
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(



(
(
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  • 9 -

USI CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 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
Recognition of refund liabilities
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
(Increase) Decrease in other
receivables
A31200
Decrease in inventories
A31230
Decrease (Increase) in prepayments		 For the Nine
Months Ended
September 30,2020
$ 3,496,932


2,107

3,499,039
1,706,600
52,617
(
1,400 )

143,966

176,021
(
80,764 )

(
146,135 )

114,593

34,289

9,506

8,050
-

5,490

1,174,801

176,127
1,248,320
(
92,141 )
803,215

13,575
For the Nine
Months Ended
September 30,2019
For the Nine
Months Ended
September 30,2019


(
(
(

(

(
(
(
(
(
(
(
(
(
(		 $ 2,441,165
3,604
2,444,769
1,590,218
51,190

7,979 )

113,274 )
229,045

115,263 )

161,637 )

19,070 )

31,516 )

11,119 )
15,838

155,710 )
5,258

552,211 )
230,477
770,504
14,518
1,458,211

54,840 )		 
(Continued)
  • 10 -
C o d e
A31240
Increase in other current assets

A32150
Decrease in notes and accounts
payable
A32180
Increase
(Decrease)
in
other
payables
A32200
Decrease in provisions

A32240
Decrease in net defined benefit
liabilities
A32230
Increase 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
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

B05400
Acquisition of investment property

B06700
Increase in other non-current assets

B07600
Dividends received
B09900
Compensations
for
land
ownership
certificate
BBBB
Net cash used in investing activities
CASH FLOWS FROM FINANCING
ACTIVITIES
C00100
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		 For the Nine
Months Ended
September 30,2020
( $ 282,578 )

(
308,477 )

161,645

(
14,852 )

(
147,064 )


156,879

8,411,322
74,410
(
170,641 )

(
462,139)


7,852,952

(
84,399 )

76,643
64,523
42,588
(
3,811,781 )

(
1,733,458 )

19,427
21,390
(
113 )

(
38,661 )
(
5,139 )

146,135

-

(
5,302,845)

(
511,617 )

(
458,000 )
-
(
1,000,000 )
12,310,000
(
13,873,001 )
For the Nine
Months Ended
September 30,2019
For the Nine
Months Ended
September 30,2019
(
(
(
(

(
(

(
(
(
(
(
(

(
(
(
(
(		 (
(
(
(
(

(
(

(
(
(
(
(

(
(
(		 $ 263,505 )

658,728 )

44,067 )

10,793 )

156,593 )
42,332
4,496,055
111,104

198,232 )
372,103)
4,036,824

4,525 )
80,649
52,423
88,819

5,161,581 )

1,139,663 )
59,989
5,421

5,314 )
-

91,842 )
161,637
154,764
5,799,223)

1,720,184 )
164,000
1,995,630
-
24,312,000

23,758,655 )		 
(Continued)
  • 11 -
C o d e
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

C05800
Change in non-controlling interests
C05800
Dividends
paid
to
non-controlling
interests
CCCC
Net cash (used) 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 Nine
Months Ended
September 30,2020
$ 10,417

(
51,580 )

(
951 )

(
594,382 )

3,325,442
(
519,048)

(
1,362,720)

(
213,160)

974,227

7,927,403

$ 8,901,630
For the Nine
Months Ended
September 30,2019
For the Nine
Months Ended
September 30,2019

(
(
(
(
(
(
(
(
(
(

(

 $ 1,254

47,068 )

465 )

356,629 )
2,233,115
705,440)
2,117,558
61,505)
293,654
8,123,304
$ 8,416,958

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

  • 12 -

USI CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Nine Months Ended September 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 reported to and issued by the Company’s board of directors on November 4, 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

  • 13 -

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 9, IAS 39, IFRS 7, IFRS 4,
and IFRS 16 “Interest Rate Benchmark Reform
- Phase 2”
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 Contract –
Costs 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
January 1, 2021
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 periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied

  • 14 -

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

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

  • 15 -

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 value 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

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

c. 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 statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even

  • 16 -

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 subsidiary 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.

  • 17 -

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

Reserve repurchase
 September 30,
2020

$ 112,265
3,021,878
5,745,855


21,632
 December 31,
2019

$ 74,250

2,174,906

5,463,246


215,001
 September 30,
2019		 September 30,
2019









$ 91,686
2,876,092
5,310,644
138,536
  • 18 -

$ 8,901,630 $ 7,927,403 $ 8,416,958

agreements collateralized by bonds

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:

Bank deposits

Reserve repurchase
agreements collateralized
by bonds		 September 30,
2020

0.05%～5.80%
0.13%～0.90%		 December 31,
2019

0.10%～3.75%
0.58%～1.90%		 September 30,
2019
0.001%～7.30%
0.50%～2.40%

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

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



Financial liabilities held for
trading
Derivative financial
liabilities (not under
hedge accounting)
Foreign exchange
 September 30,
2020

$ 7,629

251,227
4,553,710


230,796


382

5,036,115

$ 5,043,744

$ 8,622
 December 31,
2019

$ 14,066

364,057
4,907,560

1,071,797


545

6,343,959

$ 6,358,025

$ 4,136
 September 30,
2019


















$ 23,958
161,044
4,539,622
1,015,424
751
5,716,841
$ 5,740,799
$ 2,144
  • 19 -

September 30, December 31, September 30, 2020 2019 2019 forward contracts

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

follows:
September 30, 2020
Sell
Sell
Sell
Sell
Buy
Buy
December 31, 2019
Sell
Sell
Sell
Sell
Buy
Buy
September 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
109.10.08-109.12.29
109.10.30-110.06.30
109.10.13-110.01.04
110.03.31-110.06.30
109.10.19-109.11.23
109.10.22

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
108.10.01-108.12.30
108.12.10-109.06.30
108.10.02-109.01.06
108.11.29-109.03.31
108.10.14-108.12.14
108.10.21-108.10.31		 Notional Amount
(In Thousands)
RMB 138,300 /NTD
582,996
USD
522 /MYR
2,232
USD
31,870 /NTD
932,370
EUR
268 /MYR
1,316
NTD 283,437 /USD
9,720
JPY
40,000 /USD
380
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 260,400 /NTD 1,147,261
USD
1,600 /MYR
6,658
USD
44,760 /NTD 1,389,332
EUR
197 /MYR
928
NTD 66,617 /USD
2,140
JPY
50,000 /USD
468

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 Group did not apply hedge accounting treatments for derivative contracts.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

September 30, December 31, September 30, 2020 2019 2019 Current Investments in equity

  • 20 -
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


 September 30,
2020

$ 142,066

$ 1,474,743

9,171

815,438

2,299,352

15,025

97,200


112,225

$ 2,411,577
 December 31,
2019

$ 174,789

$ 1,439,624

16,178

632,134

2,087,936

8,649

100,139


108,788

$ 2,196,724
 September 30,
2019		 September 30,
2019


















$ 163,572
$ 1,500,648
20,608
639,287
2,160,543
6,090
101,397
107,487
$ 2,268,030

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.

The Group sold 5,745 thousand shares of United Renewable Energy Co., Ltd. during the nine months ended September 30, 2020. The related other equity interests – the $105,403 thousand unrealized loss on FVTOCI financial assets was transferred to

  • 21 -

$68,814 thousand of retained earnings and $36,589 thousand of non-controlling interests.

The Group sold 1,734 thousand shares of Global BioPharma, Inc. during the nine months ended September 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 nine months ended September 30, 2020 and 2019, and the Group received $64,523 thousand and $52,423 thousand, respectively, according to its ownership percentage.

The Group recognized dividend income of $140,982 thousand and $151,971 thousand, respectively, for the nine months ended September 30, 2020 and 2019.

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

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

Pledged demand deposits
Financial products


Non-current
Pledged time deposits

Time deposits with initial
maturity of more than
 September 30,
2020

$ 348,306


849

77,771

$ 426,926

$ 329,843


18,714
 December 31,
2019

$ 347,981

-

158,148

$ 506,129

$ 311,942


-		 September 30,
2019		 September 30,
2019













$ 348,122
2,057
-
$ 350,179
$ 311,895
-
  • 22 -
three months

Range of interest rates
Pledged time deposits
Time deposits with
initial maturity of
more than three
months
Financial products
 September 30,
2020

$ 348,557

0.04%～1.85%
1.23%
2.70%～3.00%		 December 31,
2019

$ 311,942



0.09%～3.75%
-
3.00%～3.20%		 September 30,
2019
$ 311,895
0.09%～3.75%
-
-

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

 September 30,
2020
$ 458,308


-

$ 458,308

$ 5,256,084

(
91,709)

$ 5,164,375
 December 31,
2019
$ 634,435


-

$ 634,435

$ 6,504,725

(
93,648)

$ 6,411,077
 September 30,
2019




(



(
(


(
 $ 785,406

2)
$ 785,404
$ 6,874,062

103,064)
$ 6,770,998
  • 23 -
Other receivables (b)
Tax refund receivable

Lent material fees
receivable
Others

 September 30,
2020
$ 240,822

38,488

96,316

$ 375,626
 December 31,
2019
$ 209,112

-

68,019

$ 277,131
 September 30,
2019		 September 30,
2019






$ 265,228
-
42,255
$ 307,483

(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 economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted

  • 24 -

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 as profit or loss.

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

Based on the number of days past due


Gross carrying
amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days
$ 2,270,457

(
4,651)

$ 2,265,806
 61～90 Days
$ 9,769

(
2,750)

$ 7,019
 Over 90 Days
$ 3,202

(
1,865)

$ 1,337
 Total

(
(
(
(
 $ 2,283,428
9,266)
$ 2,274,162

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

(
 $ 327,170


3,637)

$ 323,533
(
 $ 675,123


5,506)

$ 669,617
(
 $ 553,760


5,568)

$ 548,192
(
 $ 1,874,911

67,732)
$ 1,807,179
(
 $ 3,430,964

82,443)
$ 3,348,521

December 31, 2019

Based on the number of days past due


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
  • 25 -

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

September 30, 2019

Based on the number of days past due


Gross carrying
amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days Upto 60 Days 61～90 Days
$ 21,185

(
643)

$ 20,542
 Over 90 Days
$ 15,801

(
13,164)

$ 2,637
 Total

(
 $ 3,086,653
4,651)
$ 3,082,002
(
(
 $ 3,123,639
18,458)
$ 3,105,181

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

(
 $ 375,008


4,252)

$ 370,756
(
 $ 791,131

4,580)
$ 786,551
(
 $ 907,417


9,386)

$ 898,031
(
 $ 2,462,273

66,390)
$ 2,395,883
(
 $ 4,535,829

84,608)
$ 4,451,221

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

Not past due

Up to 60 days

Over 60 days

 September 30,
2020
$ 3,042,782


259,446

128,736

$ 3,430,964
 December 31,
2019
$ 3,874,348

147,019


79,261

$ 4,100,628
 September 30,
2019





$ 4,378,755

94,879

62,195
$ 4,535,829

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:

Balance at January
Less: Impairment losses		 For the Nine
Months Ended
September 30,
2020
$ 93,648
(
1,400 )		 For the Nine
Months Ended
September 30,
2019
$ 111,779
(
7,979 )
  • 26 -

reversed

Less: Amounts written off during the period as uncollectible ( 321 ) ( 63 ) Foreign exchange translation gains and losses ( 218 ) ( 671 ) Balance on September 30 $ 91,709 $ 103,066

(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 than 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 September 30, 2020, December 31, 2019 and September 30, 2019.

11. INVENTORIES

INVENTORIES
Finished goods

Work in progress
Raw materials

Supplies
Inventory in transit

 September 30,
2020
$ 1,910,536

364,752
1,506,108

340,309

17,064

$ 4,138,769
 December 31,
2019
$ 2,728,069

350,133
1,315,085

317,289

208,930

$ 4,919,506
 September 30,
2019









$ 2,912,333
467,996
1,476,776
380,160
12,593
$ 5,249,858

The costs of inventories recognized as cost of goods sold for the three months ended September 30, 2020 and 2019, were $9,867,920 thousand and $12,340,401 thousand, respectively, and for the nine months ended September 30, 2020 and 2019 were $28,733,038 thousand and $37,195,424 thousand, respectively.

The reversal of inventory write-downs for the three months ended September 30, 2020 was $10,566 thousand, and the inventory write-down for the three months ended September 30, 2019 was $3,182 thousand; the

  • 27 -

inventory write-down for the nine months ended September 30, 2020 was $9,506 thousand, and the reversal of write-downs for the nine months ended September 30, 2019 was $11,119 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 (loss) from
discontinued operations
 For the Three
Months Ended
September 30,
2020		 For the Three
Months Ended
September 30,
2019
($ 7,469)

(
7,469 )


6,676

($ 793)
 For the Nine
Months Ended
September 30,
2020
($ 15,312)

(
15,312 )

17,419

$ 2,107
 For the Nine
Months Ended
September 30,
2019
(
(

 $ 5,142)


5,142 )
5,793

$ 651
 (
(

 (
(

 $ 19,853)

19,853 )
23,457
$ 3,604

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

were as follows:
Net cash generated from
operating activities
Effect of exchange rate changes
Net cash inflow		 For the Nine
Months Ended
September 30,
2020
$ 12,403
(
367)
$ 12,036		 For the Nine
Months Ended
September 30,
2019

(
(
 $ 8,144

1,670)
$ 6,474

13. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements:

Proportion of Ownership (%) Septemb December Septemb Rema Investee Name of Activities er 30, 31, 2019 er 30, r k

Investor

  • 28 -
2020
2019
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%
99.9%
99.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.4%
93.2%
93.2%
100.0%
100.0%
100.0%
- 30.4% 30.4%
- 10.0% 10.0%
- 10.0% 10.0%
- 30.4% 30.4%
-
15.0%
15.0%
-
95.8%
95.8%
70.0% 70.0% 70.0%
8.3%

8.3%

8.3%
78.3%
78.3%
78.3%
40.6% 40.6% 40.6%
8.0%
8.0%
8.0%
4.5%

0.4%

0.3%
53.1%
49.0%
48.9%
26.9% 26.9% 26.9%
1.7%
1.7%
1.7%
9.3%
9.3%
9.3%
3.3%
3.3%
3.3%
2.4%
2.4%
2.4%
1.0%

1.0%

1.0%
44.6%
44.6%
44.6%
50.9% 50.9% 50.9%
34.0% 34.0% 34.0%
9.2%
9.2%
9.2%
0.2%

0.2%

0.2%
94.3%
94.3%
94.3%
Proportion of Ownership (%)		 2020
2019
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%
99.9%
99.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.4%
93.2%
93.2%
100.0%
100.0%
100.0%
- 30.4% 30.4%
- 10.0% 10.0%
- 10.0% 10.0%
- 30.4% 30.4%
-
15.0%
15.0%
-
95.8%
95.8%
70.0% 70.0% 70.0%
8.3%

8.3%

8.3%
78.3%
78.3%
78.3%
40.6% 40.6% 40.6%
8.0%
8.0%
8.0%
4.5%

0.4%

0.3%
53.1%
49.0%
48.9%
26.9% 26.9% 26.9%
1.7%
1.7%
1.7%
9.3%
9.3%
9.3%
3.3%
3.3%
3.3%
2.4%
2.4%
2.4%
1.0%

1.0%

1.0%
44.6%
44.6%
44.6%
50.9% 50.9% 50.9%
34.0% 34.0% 34.0%
9.2%
9.2%
9.2%
0.2%

0.2%

0.2%
94.3%
94.3%
94.3%
Proportion of Ownership (%)		 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
Investor		 USIFE Investment Co., Ltd.
(“USII”)

Swanlake Traders Ltd.
（Swanlake）

USI (Hong Kong) Company
Limited

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”)


Investee		 Investment business

Trading and investment

Trading and investment

Providing management
services

Import and export trade

Investment business

Investment business

Optical products and fireproof
materials business

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



Manufacturing and marketing
of sapphire crystal




Name of Activities























11.
1.




2.



3.





13.



Rema
r
k
Septemb
er 30,
2020
51.3%
16.6%
11.2%
5.4%
 December
31,2019
51.3%
16.6%
11.2%
5.4%
 Septemb
er 30,
2019
Acme Electronics Corp.
APC (BVI) Holding Co.,
Ltd.
Swanlake Traders Ltd.
TAITA (BVI) Holding
Co,Ltd.		 ACME Electronics
(Cayman) Corp.
 Reinvestment business


51.3%
16.6%
11.2%
5.4%

  • 29 -

Acme Electronics Corp.
Golden Amber Enterprises
Limited
Reinvestment business

ACME Electronics (BVI)
Corp.
Reinvestment business

ACME Electronics
(Cayman) Corp.
Acme Electronics
(Kunshan) Co., Ltd.
Manufacturing and marketing
of
manganese-zinc
soft
ferrite core

ACME Components
(Malaysia) Sdn.Bhd.
Reinvestment business

Golden Amber
Enterprises Limited
Acme Electronics
(Guang-Zhou) Co., Ltd.
Manufacturing and marketing
of
manganese-zinc
soft
ferrite core

Union Polymer Int’l
Investment Corp.
Asia Polymer Corporation
(“APC”)
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

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


Asia Polymer
Corporation
APC (BVI) Holding Co.,
Ltd. (“APC (BVI)”)
Reinvestment business

Asia Polymer
Corporation
USI International Corp.
Reinvestment business

APC (BVI) Holding Co.,
Ltd.


Asia Polymer
Corporation
APC Investment
Corporation
Investment business

APC (BVI) Holding Co.,
Ltd.
USI Trading（Shanghai）
Co.,Ltd.
Management
of
chemical
products, equipment and
plastic products and whole
sale of electronic materials,
commission agency services
and
related
supporting
import and export services

Union Polymer Int’l
Investment Corp.
Taita Chemical Company,
Ltd. (“TTC”)
Production and marketing of
polystyrene,
acrylonitrile,
butadiene, ABS resin, SAN
resin, glass wool insulation
products and plastic materials

China General Terminal
& Distribution Co.
USIFE Investment Co.,
Ltd.


Taita Chemical
Company, Ltd.
TAITA (BVI) Holding Co,
Ltd.（TAITA (BVI)）
Reinvestment business

TAITA (BVI) Holding
Co, Ltd.
Taita Chemical (Zhong
Shan) Co., Ltd. (“TAITA
(ZS)”)
Production and marketing of
polystyrene derivatives

Taita Chemical (Tianjin)
Co., Ltd. (“TAITA (TJ)”)
Production and marketing of
polystyrene derivatives

Union Polymer Int’l
Investment Corp.
China General Plastics
Corporation (“CGPC”)
Production and marketing of
plastic cloths, plastic skins,
plastic tubes, plastic pellets,
plastic powder and other
related products

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

 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%

100.0%

100.0%

25.0%
8.1%
2.0%
0.5%
0.1%

35.7%
 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%

100.0%

100.0%

25.0%

8.1%

2.0%

0.5%
0.1%

35.7%
 84.5%
100.0%
100.0%
4.
100.0%
100.0%
100.0%
36.1%

0.9%

0.3%
-
37.3%
11.
and
13.
100.0%
11.
70.0%
30.0%
100.0%
100.0%
100.0%
36.8%

0.6%
0.4%
37.8%
13.
100.0%
12.
100.0%
12.
100.0%
5.
25.0%

8.1%

2.0%

0.5%
0.1%
35.7%
13.
  • 30 -
Investor Investee Name of Activities Proportion of Ownership (%) Proportion of Ownership (%) Proportion of Ownership (%) Rema
r
k
Septemb
er 30,
2020
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%

70.0%
15.0%
15.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%
 Decemb
er 31,
2019
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%

70.0%
15.0%
15.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%
 Septemb
er 30,
2019
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)
Swanson Plastics Corp.
APC Investment
Corporation
USIFE Investment Co.,
Ltd.
Swanson Plastics
Company Ltd.
(Singapore)



Swanson International
Ltd.


A.S. Holdings (UK)
Limited
 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.

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.
 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


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




























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%
70.0%
15.0%
15.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%		 6.
7.
7.


8.
  • 31 -
products’ production and
sales
The Company
Ever Conquest Global
Limited
Investment business

Asia Polymer
Corporation
(“ECGL”)


Ever Conquest Global
Limited
Ever Victory Global Limited
(“EVGL”)
Investment business

Ever Victory Global
Limited
Dynamic Ever Investments
Limited (“DEIL”)
Investment business
 60.2%
39.8%

100.0%

71.0%

85.3%
 63.1%
36.9%

100.0%

80.0%

89.9%
 63.1%
36.9%
100.0%
9.
80.0%
9., 10.,
and
13.
89.9%
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 liquidation in May 2020, and TMC has completed the dissolution and liquidation procedures on July 22, 2020.

  3. 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.

  4. 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.

  5. As TTC assessed that there is shrinking demand in the local market for expanded polystyrene (EPS), which is the main

  6. 32 -

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.

  1. 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.

  2. 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 September 30, 2020.

  3. 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 September 30, 2020.

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

  5. 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

  6. 33 -

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 funds are expected to be US$32,200 thousand and US$13,800 thousand, respectively invested by Swanlake and APC (BVI).

  2. The boards of TAITA (BVI) and Taita Chemical (ZhongShan) Co., Ltd. resolved on November 3, 2020 and to establish a new company in Fujian Province, China, each investing RMB 157,000 thousand and holding 50% of the shares. The main business of the new company is expected to be the production and sales of expandable polystyrene (EPS).

  3. This is a subsidiary with material non-controlling interests. For the nine months ended September 30, 2020, expect for the

financial statements of significant subsidiaries such as CGPC, TTC, UPIIC, ECGL, EVGL, DEIL and partial non-significant

  • 34 -

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 nine months ended September 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
b y N o n - c o n t r o l l i n g I n t e r e s t s
September 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%		 September 30,
2019
64.3%
62.2%
55.4%
62.7%
20.0%

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

Name of
Subsidiary		 N o n - c o N o n - c o Profit (Loss)
n t r o l l		 Profit (Loss)
n t r o l l		 Allocated to
i n g
I n t		 Allocated to
i n g
I n t		 e r e s t s e r e s t s Accumulated Accumulated Non-controllingInterests Non-controllingInterests Non-controllingInterests Non-controllingInterests
For the Three
Months
Ended
September 30,
2020		 For the Three
Months
Ended
September 30,
2019		 For the Nine
Months
Ended
September 30,
2020		 For the Nine
Months
Ended
September 30,
2019		 September 30,
2020		 December 31,
2019		 September 30,
2019
CGPC

TTC

ACME

APC

EVGL



(		 $ 235,132

$ 416,806

$ 3,811

$ 129,897

$ 11,150)

(

(		 $ 111,873

$ 6,189

$ 2,499)

$ 139,221

$ 11,377)



(		 $ 403,353

$ 714,967

$ 20,553

$ 378,600

$ 27,655)

(

(		 $ 265,568

$ 199,710

$ 23,259)

$ 369,922

$ 3,337)



$ 5,545,322

$ 3,312,820

$ 705,888

$ 6,770,805

$ 4,894,211



$ 5,275,245

$ 2,683,447

$ 694,961

$ 6,488,546

$ 2,885,402



$ 5,128,707
$ 2,630,078
$ 742,360
$ 6,337,823
$ 2,952,586

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

CGPC and CGPC’ s subsidiaries

s:
sidiaries
September 30, December 31, September 30,
2020 2019 2019
  • 35 -
Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity
 September 30,
2020
$ 4,996,116

7,887,762

( 1,802,864 )
(1,922,446)

$ 9,158,568
 December 31,
2019
$ 4,876,866

7,454,367

( 1,695,099 )
(1,923,568)

$ 8,712,566
 September 30,
2019
$ 5,146,813
7,170,014
( 1,724,644 )
(2,145,934)
$ 8,446,249

(Continued)

September 30,
2020
December 31,
2019
September 30,
2019
Equity attributable to:
Owners of CGPC
$ 3,112,551
$ 2,975,567
$ 2,888,838
Non-controlling
interests of CGPC 5,545,322
5,275,245
5,128,707
Non-controlling
interests of
CGPC’s
subsidiaries

500,695

461,754

428,704
$ 9,158,568
$ 8,712,566
$ 8,446,249
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Revenue
$ 3,262,308
$ 3,824,886
$ 9,140,578
$ 11,407,164
Net profit from
continuing
operations
$ 387,639 $ 188,713
$ 670,188
$ 423,012
Net profit (loss) from
discontinued
operations

651
(
793)

2,107

3,604
Profit for the period
388,290
187,920
672,295
426,616
Other comprehensive
income (loss) for
the period

41,377
(
14,729)

57,152

3,886
Total comprehensive
income for the
period
$ 429,667
$ 173,191
$ 729,447
$ 430,502
Profit attributable to:
Owners of CGPC $ 122,486
$ 58,276
$ 210,116
$ 138,340
Non-controlling
interests of
CGPC
235,132
111,873
403,353
265,568
Non-controlling
interests of

30,672

17,771

58,826

22,708		 September 30,
2020
December 31,
2019
September 30,
2019
Equity attributable to:
Owners of CGPC
$ 3,112,551
$ 2,975,567
$ 2,888,838
Non-controlling
interests of CGPC 5,545,322
5,275,245
5,128,707
Non-controlling
interests of
CGPC’s
subsidiaries

500,695

461,754

428,704
$ 9,158,568
$ 8,712,566
$ 8,446,249
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Revenue
$ 3,262,308
$ 3,824,886
$ 9,140,578
$ 11,407,164
Net profit from
continuing
operations
$ 387,639 $ 188,713
$ 670,188
$ 423,012
Net profit (loss) from
discontinued
operations

651
(
793)

2,107

3,604
Profit for the period
388,290
187,920
672,295
426,616
Other comprehensive
income (loss) for
the period

41,377
(
14,729)

57,152

3,886
Total comprehensive
income for the
period
$ 429,667
$ 173,191
$ 729,447
$ 430,502
Profit attributable to:
Owners of CGPC $ 122,486
$ 58,276
$ 210,116
$ 138,340
Non-controlling
interests of
CGPC
235,132
111,873
403,353
265,568
Non-controlling
interests of

30,672

17,771

58,826

22,708		 September 30,
2020
December 31,
2019
September 30,
2019
Equity attributable to:
Owners of CGPC
$ 3,112,551
$ 2,975,567
$ 2,888,838
Non-controlling
interests of CGPC 5,545,322
5,275,245
5,128,707
Non-controlling
interests of
CGPC’s
subsidiaries

500,695

461,754

428,704
$ 9,158,568
$ 8,712,566
$ 8,446,249
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Revenue
$ 3,262,308
$ 3,824,886
$ 9,140,578
$ 11,407,164
Net profit from
continuing
operations
$ 387,639 $ 188,713
$ 670,188
$ 423,012
Net profit (loss) from
discontinued
operations

651
(
793)

2,107

3,604
Profit for the period
388,290
187,920
672,295
426,616
Other comprehensive
income (loss) for
the period

41,377
(
14,729)

57,152

3,886
Total comprehensive
income for the
period
$ 429,667
$ 173,191
$ 729,447
$ 430,502
Profit attributable to:
Owners of CGPC $ 122,486
$ 58,276
$ 210,116
$ 138,340
Non-controlling
interests of
CGPC
235,132
111,873
403,353
265,568
Non-controlling
interests of

30,672

17,771

58,826

22,708		 September 30,
2019		 September 30,
2019		 September 30,
2019
$ 2,888,838
5,128,707
428,704
$ 8,446,249
For the Nine
Month Ended
September 30,
2019
$ 11,407,164
$ 423,012

3,604
426,616

3,886
$ 430,502
$ 138,340
265,568

22,708






$ 9,140,578

$ 670,188

2,107

672,295
57,152

$ 729,447

$ 210,116

403,353
58,826
 $ 11,407,164
$ 423,012
3,604
426,616
3,886
$ 430,502
$ 138,340
265,568
22,708
  • 36 -
CGPC’s
subsidiaries
$ 388,290
$ 187,920
$ 672,295
$ 426,616
Total
comprehensive
income attributable
to:
Owners of CGPC $ 149,916
$ 41,874
$ 227,139
$ 130,897
Non-controlling
interests of
CGPC
249,079
113,522
443,439
276,867
Non-controlling
interests of
CGPC’s
subsidiaries

30,672

17,795

58,869

22,738
$ 429,667
$ 173,191
$ 729,447
$ 430,502
For the Nine
Months Ended
September 30,
2020
For the Nine
Months Ended
September 30,
2019
Net
cash
inflow
(outflow) from:
Operating activities
$ 1,116,427
$ 1,191,953
Investing activities
(
827,019 ) (
494,435 )
Financing activities
(
241,488 ) (
911,744 )
Effects of exchange
rate changes
(
2,353)

1,469
Net
cash
inflow
(outflow)
$ 45,567
($ 212,757)
Dividends paid to
non-controlling
interests
$ 173,260
$ 499,788
TTC and TTC’s subsidiaries
September 30,
2020
December 31,
2019
September 30,
2019
Current assets
$ 5,408,856
$ 4,801,480
$ 5,022,106
Non-current assets
3,170,914
3,203,261
3,271,072
Current liabilities
( 2,251,730 ) ( 2,278,694 ) ( 2,648,933 )
Non-current liabilities
(
946,797)
(1,426,284)
(1,430,397)
Equity
$ 5,381,243
$ 4,299,763
$ 4,213,848
Equity attributable to:
Owners of TTC
$ 2,068,423
$ 1,616,316
$ 1,583,770
Non-controlling
interests of TTC
3,312,820
2,683,447
2,630,078
$ 5,381,243
$ 4,299,763
$ 4,213,848		 CGPC’s
subsidiaries
$ 388,290
$ 187,920
$ 672,295
$ 426,616
Total
comprehensive
income attributable
to:
Owners of CGPC $ 149,916
$ 41,874
$ 227,139
$ 130,897
Non-controlling
interests of
CGPC
249,079
113,522
443,439
276,867
Non-controlling
interests of
CGPC’s
subsidiaries

30,672

17,795

58,869

22,738
$ 429,667
$ 173,191
$ 729,447
$ 430,502
For the Nine
Months Ended
September 30,
2020
For the Nine
Months Ended
September 30,
2019
Net
cash
inflow
(outflow) from:
Operating activities
$ 1,116,427
$ 1,191,953
Investing activities
(
827,019 ) (
494,435 )
Financing activities
(
241,488 ) (
911,744 )
Effects of exchange
rate changes
(
2,353)

1,469
Net
cash
inflow
(outflow)
$ 45,567
($ 212,757)
Dividends paid to
non-controlling
interests
$ 173,260
$ 499,788
TTC and TTC’s subsidiaries
September 30,
2020
December 31,
2019
September 30,
2019
Current assets
$ 5,408,856
$ 4,801,480
$ 5,022,106
Non-current assets
3,170,914
3,203,261
3,271,072
Current liabilities
( 2,251,730 ) ( 2,278,694 ) ( 2,648,933 )
Non-current liabilities
(
946,797)
(1,426,284)
(1,430,397)
Equity
$ 5,381,243
$ 4,299,763
$ 4,213,848
Equity attributable to:
Owners of TTC
$ 2,068,423
$ 1,616,316
$ 1,583,770
Non-controlling
interests of TTC
3,312,820
2,683,447
2,630,078
$ 5,381,243
$ 4,299,763
$ 4,213,848
Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity

Equity attributable to:
Owners of TTC

Non-controlling
interests of TTC
$ 5,022,106
3,271,072
( 2,648,933 )
(1,430,397)
$ 4,213,848
$ 1,583,770
2,630,078
$ 4,213,848

For the Three For the Three For the Nine For the Nine

  • 37 -
Revenue

Profit for the period

Other comprehensive
income (loss) for
the period
Total comprehensive
income (loss) for
the period
Profit attributable to:
Owners of TTC

Non-controlling
interests of TTC

Total comprehensive
income (loss)
attributable to:
Owners of TTC

Non-controlling
interests of TTC

Net cash inflow from:
Operating activities
Investing activities
Financing activities
Effects of exchange
rate changes
Net cash inflow
Dividends paid to
non-controlling
interests		 Month Ended
September 30,
2020
$ 4,142,679

$ 658,181


121,797

$ 779,978

$ 241,375


416,806

$ 658,181

$ 316,259


463,719

$ 779,978

 Month Ended
September 30,
2019
$ 4,382,791

$ 9,772

(
30,913)

($ 21,141)

$ 3,583


6,189

$ 9,772

( $ 5,788 )
(
15,353)

($ 21,141)






 Month Ended
September 30,
2020		 Month Ended
September 30,
2020		 Month Ended
September 30,
2019		 Month Ended
September 30,
2019












(
(



(
(
(		 $ 10,667,664

$ 1,129,008


52,733

$ 1,181,741

$ 414,041


714,967

$ 1,129,008

$ 470,033


711,708

$ 1,181,741

For the Nine
Month Ended
September 30,
2020		 $ 13,464,687
$ 315,362
(
24,896)
$ 290,466
$ 115,652

199,710
$ 315,362
$ 109,591

180,875
$ 290,466
For the Nine
Month Ended
September 30,
2019

(
(
(

 $ 1,647,000

72,045 )

811,151 )
3,317)

$ 760,487

$ 63,493

(
(

 $ 1,103,360

46,607

519,541 )
19,894)
$ 610,532
$ 41,498

ACME and ACME’s subsidiaries

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity
 September 30,
2020
$ 1,851,446

1,664,988

( 1,119,076 )
(
554,731)

$ 1,842,627
 December 31,
2019
$ 1,780,507

1,753,574

( 1,085,862 )
(
612,610)

$ 1,835,609
 September 30,
2019
$ 1,816,579
1,726,810
( 1,096,814 )
(
507,117)
$ 1,939,458

Equity attributable to:

  • 38 -
Owners of ACME
$ 568,843
$ 557,511

Non-controlling
interests of
ACME
705,888
694,961
Non-controlling
interests of
ACME’s
subsidiaries

567,896

583,137

$ 1,842,627
$ 1,835,609

For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
Revenue
$ 520,064
$ 551,071
$ 1,582,323

Profit (Loss) for the
period
$ 7,689 ( $ 8,317 ) $ 35,061

Other comprehensive
income (loss) for
the period

37,581
(
48,113)
(
28,043)

Total comprehensive
income (loss) for
the period
$ 45,270
($ 56,430)
$ 7,018

Profit (Loss)
attributable to:
Owners of ACME $ 3,043
( $ 1,994 ) $ 16,409

Non-controlling
interests of
ACME
3,811 (
2,499 )
20,553
Non-controlling
interests of
ACME’s
subsidiaries

835
(
3,824)
(
1,901)

$ 7,689
($ 8,317)
$ 35,061

Total comprehensive
income (loss)
attributable to:
Owners of ACME $ 13,869 ( $ 16,493 ) $ 9,797
Non-controlling
interests of
ACME
17,563 (
20,658 )
12,462
Non-controlling
interests of
ACME’s
subsidiaries

13,838
(
19,279)
(
15,241)

$ 45,270
($ 56,430)
$ 7,018

For the Nine
Month Ended
September 30,		 Owners of ACME
$ 568,843
$ 557,511

Non-controlling
interests of
ACME
705,888
694,961
Non-controlling
interests of
ACME’s
subsidiaries

567,896

583,137

$ 1,842,627
$ 1,835,609

For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
Revenue
$ 520,064
$ 551,071
$ 1,582,323

Profit (Loss) for the
period
$ 7,689 ( $ 8,317 ) $ 35,061

Other comprehensive
income (loss) for
the period

37,581
(
48,113)
(
28,043)

Total comprehensive
income (loss) for
the period
$ 45,270
($ 56,430)
$ 7,018

Profit (Loss)
attributable to:
Owners of ACME $ 3,043
( $ 1,994 ) $ 16,409

Non-controlling
interests of
ACME
3,811 (
2,499 )
20,553
Non-controlling
interests of
ACME’s
subsidiaries

835
(
3,824)
(
1,901)

$ 7,689
($ 8,317)
$ 35,061

Total comprehensive
income (loss)
attributable to:
Owners of ACME $ 13,869 ( $ 16,493 ) $ 9,797
Non-controlling
interests of
ACME
17,563 (
20,658 )
12,462
Non-controlling
interests of
ACME’s
subsidiaries

13,838
(
19,279)
(
15,241)

$ 45,270
($ 56,430)
$ 7,018

For the Nine
Month Ended
September 30,		 $ 595,666
742,360
601,432
$ 1,939,458
For the Nine
Month Ended
September 30,
2019
$ 1,587,013
( $ 57,118 )
(
27,834)
($ 84,952)
( $ 18,658 )
(
23,259 )
(
15,201)
($ 57,118)
( $ 27,481 )
(
34,363 )
(
23,108)
($ 84,952)
For the Nine
Month Ended
September 30,
$ 1,582,323

$ 35,061

(
28,043)

$ 7,018

$ 16,409


20,553
(
1,901)

$ 35,061

$ 9,797

12,462
(
15,241)

$ 7,018

For the Nine
Month Ended
September 30,
  • 39 -
Net cash inflow
(outflow) from:
Operating activities

Investing activities

Financing activities
Effects of exchange
rate changes

Net cash inflow
 2020
$ 152,171


26,052 )
24,567
16,152)

$ 134,534
 2019

(
(
(
(
 $ 264,183

149,398 )
34,594
12,760)
$ 136,619

APC and APC’s subsidiaries

APC and APC’s subsidiaries APC and APC’s subsidiaries APC and APC’s subsidiaries
September 30,
2020
December 31,
2019
September 30,
2019
Current assets
$ 3,005,320 $ 4,940,438 $ 4,940,198
Non-current assets
12,815,734 11,982,653 12,023,728
Current liabilities
(
1,666,635 ) (
2,469,828 ) (
2,757,360 )
Non-current liabilities
(
3,394,469)
(
4,223,443)
(
4,233,903)
Equity
$ 10,759,950
$ 10,229,820
$ 9,972,663
Equity attributable to:
Owners of APC
$ 3,989,145 $ 3,741,274 $ 3,634,840
Non-controlling
interests of APC
6,770,805

6,488,546

6,337,823
$ 10,759,950
$ 10,229,820
$ 9,972,663
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Revenue
$ 1,313,190
$ 1,645,365
$ 3,985,252
$ 5,040,677
Profit for the period
$ 192,008
$ 205,791
$ 559,628
$ 546,801
Other comprehensive
income (loss) for
the period

571,409
(
51,850)

290,195
(
10,052)
Total comprehensive
income for the
period
$ 763,417
$ 153,941
$ 849,823
$ 536,749
Profit attributable to:
Owners of APC
$ 62,111
$ 66,570
$ 181,028
$ 176,879
Non-controlling
interests of APC

129,897

139,221

378,600

369,922
$ 192,008
$ 205,791
$ 559,628
$ 546,801
Total comprehensive
income attributable
to:
Owners of APC
$ 247,610
$ 88,457
$ 346,678
$ 221,308
Non-controlling
interests of APC

515,807

65,484

503,145

315,441
$ 763,417
$ 153,941
$ 849,823
$ 536,749		 September 30,
2019


















$ 3,985,252
$ 559,628
290,195
$ 849,823
$ 181,028
378,600
$ 559,628
$ 346,678
503,145
$ 849,823

(






 $ 5,040,677
$ 546,801
10,052)
$ 536,749
$ 176,879
369,922
$ 546,801
$ 221,308
315,441
$ 536,749
  • 40 -
Net cash inflow
(outflow) from:
Operating activities

Investing activities

Financing activities

Effects of exchange
rate changes

Net cash outflow

Dividends paid to
non-controlling
interests
 For the Nine
Month Ended
September 30,
2020
$ 2,128,507

(
621,925 )
(
1,841,097 )
(
5,604)

($ 340,119)

$ 225,031
 For the Nine
Month Ended
September 30,
2019		 For the Nine
Month Ended
September 30,
2019

(
(
(
(

(

(
(
$ 245,221

1,121,755 )

779,842
835)
$ 97,527)
$ 112,516

EVGL and EVGL’s subsidiaries

EVGL and EVGL’s subsidiaries EVGL and EVGL’s subsidiaries EVGL and EVGL’s subsidiaries
September 30,
2020
December 31,
2019
September 30,
2019
Current assets
$ 1,304,910 $ 1,194,368 $ 1,218,161
Non-current assets
18,513,834 14,867,168 15,214,244
Current liabilities
(
10,992)
(
14,346)
(
11,590)
Equity
$ 19,807,752
$ 16,047,190
$ 16,420,815
Equity attributable to:
Owners of EVGL
$ 12,007,476 $ 11,547,692 $ 11,816,573
Non-controlling
interests of EVGL
4,894,211
2,885,402
2,952,586
Non-controlling
interests of
EVGL’s
subsidiaries

2,906,065

1,614,096

1,651,656
$ 19,807,752
$ 16,047,190
$ 16,420,815
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Loss for the period
( $ 45,129 ) ( $ 63,019 ) ( $ 127,417 ) ( $ 23,315 )
Other comprehensive
income (loss) for
the period

357,331
(
383,276)
(
118,307)
(
320,452)
Total comprehensive
income (loss) for
the period
$ 312,202
($ 446,295)
($ 245,724)
($ 343,767)
Loss attributable to:
Owners of EVGL ( $ 27,356 ) ( $ 45,469 ) ( $ 83,826 ) ( $ 15,811 )		 September 30,
2019
$ 1,218,161
15,214,244

11,590)
$ 16,420,815
$ 11,816,573

2,952,586
1,651,656
$ 16,420,815
For the Nine
Month Ended
September 30,
2019
( $ 23,315 )
(
320,452)
($ 343,767)
( $ 15,811 )



(
(
(
(		 $ 127,417 )
118,307)
$ 245,724)
$ 83,826 )		 (
(
(
(		 $ 23,315 )
320,452)
$ 343,767)
$ 15,811 )
  • 41 -
Non-controlling
interests of
EVGL
(
Non-controlling
interests of
EVGL’s
subsidiaries
(
(
Total comprehensive
income (loss)
attributable to:
Owners of EVGL
Non-controlling
interests of
EVGL
Non-controlling
interests of
EVGL’s
subsidiaries


Net cash outflow from:
Operating activities
Investing activities
Financing activities
Effects of exchange
rate changes
Net cash inflow
11,150 ) (
6,623)
(
$ 45,129)
(
$ 189,228 (
77,129 (
45,845
(
$ 312,202
(
11,377 )
6,173)

$ 63,019)

$ 314,280 )

79,211 )
52,804)

$ 446,295)




 (
27,655 )
(
15,936)

($ 127,417)

( $ 170,245 )
(
51,279 )
(
24,200)

($ 245,724)

For the Nine
Month Ended
September 30,
2020
( $ 7,110 )
(
3,811,781 )
4,006,285
(
67,783)

$ 119,611
 (
3,337 )
(
4,167)
($ 23,315)
( $ 230,806 )
(
53,341 )
(
59,620)
($ 343,767)
For the Nine
Month Ended
September 30,
2019		 (
3,337 )
(
4,167)
($ 23,315)
( $ 230,806 )
(
53,341 )
(
59,620)
($ 343,767)
For the Nine
Month Ended
September 30,
2019
(
(
(
 (
(
(
 $ 37,266 )

5,161,581 )
5,715,801
15,100)
$ 501,854

Please refer to Notes 19 and 36 for the information related to part of subsidiaries’ shares pledged as collateral for long-term bank borrowings.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in joint ventures
Associates that are
individually material
Fujian Gulei
Petrochemical Co.,
Ltd. (“Gulei”)		 September 30,
2020
$ 18,513,834
 December 31,
2019
$ 14,867,168
 September 30,
2019		 September 30,
2019
$ 15,214,244

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

  • 42 -

The percentage of the Group’s ownership and voting rights was 50% of the outstanding shares of Gulei as of September 30, 2020, December 31, 2019 and September 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.

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.		 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.		 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.		 w represents
ents prepared
p for equity		 w represents
ents prepared
p for equity		 w represents
ents prepared
p for equity		 w represents
ents prepared
p for equity
September 30,
2020
December 31,
2019
September 30,
2019
Cash
$ 3,879,321
$ 2,078,359
$ 8,162,020
Current assets
$ 3,925,109 $ 2,102,915 $ 8,406,667
Non-current assets
70,331,401 40,551,677 31,298,887
Current liabilities
( 10,323,253 ) (
8,164,871 ) (
9,248,298 )
Non-current liabilities
(26,905,589)
(
4,755,385)
(
28,767)
Equity
37,027,668 29,734,336 30,428,489
Proportion of the Group’s
ownership

50%

50%

50%
Equity attributable to the
Group
$ 18,513,834
$ 14,867,168
$ 15,214,244
Carrying amount
$ 18,513,834
$ 14,867,168
$ 15,214,244
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
Shares attributable to the
Group
Net (loss) profit of the
period
($ 44,798)
($ 2,100)
($ 114,593)
$ 19,070		 September 30,
2019



( $ 114,593) $ 19,070

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

For the nine months ended September 30, 2020 and 2019, investments in joint ventures accounted for using the equity method

  • 43 -

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
 September 30,
2020
$ 4,682,237
7,108
4,067,418
11,784,258

47,138
309,588

2,250,743
$ 23,148,490
 December 31,
2019
$ 4,682,238

8,232

4,282,923
12,418,786

46,865

300,065

1,489,802

$ 23,228,911
 September 30,
2019		 September 30,
2019


















$ 4,682,238

8,635

4,281,809
12,419,789

48,716

303,493
1,357,912
$ 23,102,592

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

  • 44 -

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 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

  • 45 -

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 September 30, 2020, the Group had paid $1,022,169 thousand for the project, which was accounted for under construction in progress.

For the nine months ended September 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 nine months ended September 30, 2020, USIO 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 operating expenses in the consolidated 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.

  • 46 -

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.

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

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts
Leasehold land
Land use rights
Buildings
Machinery and
equipment
Transportation
equipment
Addition for
right-of-use assets
Depreciation charge
for right-of-use assets
Leasehold land

Land use rights
Buildings
Machinery and		 September 30,
2020
December 31,
2019
September 30,
2019

$ 171,721
$ 184,708
$ 173,803

418,528
444,306
457,348
150,713
195,662
203,648

54,377
60,697
5,795

2,384

135

356
$ 797,723
$ 885,508
$ 840,950
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
$ 2,765
$ -
$ 3,924
$ 4,297
$ 11,589
$ 12,852
4,177
3,744
13,746
11,554
7,114
7,624
21,021
22,851
1,984
598
5,962
1,826		 September 30,
2020
December 31,
2019
September 30,
2019

$ 171,721
$ 184,708
$ 173,803

418,528
444,306
457,348
150,713
195,662
203,648

54,377
60,697
5,795

2,384

135

356
$ 797,723
$ 885,508
$ 840,950
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
$ 2,765
$ -
$ 3,924
$ 4,297
$ 11,589
$ 12,852
4,177
3,744
13,746
11,554
7,114
7,624
21,021
22,851
1,984
598
5,962
1,826		 September 30,
2020
December 31,
2019
September 30,
2019

$ 171,721
$ 184,708
$ 173,803

418,528
444,306
457,348
150,713
195,662
203,648

54,377
60,697
5,795

2,384

135

356
$ 797,723
$ 885,508
$ 840,950
For the Three
Month Ended
September 30,
2020
For the Three
Month Ended
September 30,
2019
For the Nine
Month Ended
September 30,
2020
For the Nine
Month Ended
September 30,
2019
$ 2,765
$ -
$ 3,924
$ 4,297
$ 11,589
$ 12,852
4,177
3,744
13,746
11,554
7,114
7,624
21,021
22,851
1,984
598
5,962
1,826		 September 30,
2019		 September 30,
2019		 September 30,
2019
$ 173,803
457,348
203,648
5,795
356
$ 840,950
For the Nine
Month Ended
September 30,
2019

$ 2,765
$ 11,589

13,746
21,021
5,962
$ -
$ 12,852
11,554
22,851
1,826
  • 47 -
equipment
Transportation
equipment
 For the Three
Month Ended
September 30,
2020

170
$ 17,369
 For the Three
Month Ended
September 30,
2019

222

$ 16,485
 For the Nine
Month Ended
September 30,
2020		 For the Nine
Month Ended
September 30,
2020		 For the Nine
Month Ended
September 30,
2019		 For the Nine
Month Ended
September 30,
2019



516
$ 52,834
664
$ 49,747

Except for the recognition of depreciation expense, the Group's right-of-use assets did not experience significant impairments for the nine months ended September 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.

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
 September 30,
2020
$ 68,396

$ 406,156
 December 31,
2019
$ 70,814

$ 481,964
 September 30,
2019



$ 64,608
$ 434,628

Range of discount rate for lease liabilities was as follows:

Lease land

Buildings

Machinery

Transportation
equipment		 September 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%		 September 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

  • 48 -

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).

lessee).
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
Month Ended
September 30,
2020
$ 15,750

$ 442
$ 7,768		 For the Three
Month Ended
September 30,
2019
$ 7,862

$ 217
$ 9,057		 For the Nine
Month Ended
September 30,
2020		 For the Nine
Month Ended
September 30,
2019
$ 21,616
$ 650
$ 36,604
($ 111,879)







(		 $ 35,658
$ 1,222
$ 29,818
$ 123,827)		 $ 21,616
$ 650
$ 36,604
$ 111,879)

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

 September 30,
2020
$ 195,053

300,930

82,132

$ 578,115
 December 31,
2019
$ 115,053

313,847

95,508

$ 524,408
 September 30,
2019		 September 30,
2019






$ 115,053
318,592
99,244
$ 532,889

Right-of-use Land Buildings assets Total

  • 49 -
Cost
Balance at January 1, 2020
Addition
Transfer to property,
plant and equipment
Transfer to right of use
assets
Effect of foreign currency
exchange differences

Balance at September 30,
2020

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

Balance at September 30,
2020

Carrying amounts at
September 30, 2020

Cost
Balance at January 1, 2019
Adjustments on initial
application of IFRS 16
Balance at January 1, 2019
(restated)
Transfer from property,
plant and equipment
Effect of foreign currency
exchange differences

Balance at September 30,
2019

Accumulated depreciation
and impairment
Balance at January 1, 2019
Depreciation expenses
Transfer from property,
plant and equipment
Effect of foreign currency
exchange differences

Balance at September 30,
2019

Carrying amounts at
 Land
$ 119,022

80,000
-

-
-

$ 199,022

$ 3,969

-
-

-
-

$ 3,969

$ 195,053

$ 94,940

-

94,940
24,082
-

$ 119,022

$ 3,969

-
-
-

$ 3,969

$ 115,053
 Buildings
$ 428,521

-

1,752 )
-

2,700)

$ 424,069

$ 114,674

10,228

717 )
-

1,046)

$ 123,139

$ 300,930

$ 173,492

-

173,492
257,285
997

$ 431,774

$ 82,039

2,057
28,729
357

$ 113,182

$ 318,592
 Right-of-use
assets
$ 110,452

-

-


2,775 )
-

$ 107,677

$ 14,944

10,948

-


347 )
-

$ 25,545

$ 82,132

$ -

110,452

110,452
-
-

$ 110,452

$ -

11,208
-
-

$ 11,208

$ 99,244
 Total















(
(


(
(

(




(
(
(
(


(
(
(









 $ 657,995
80,000

1,752 )

2,775 )
2,700)
$ 730,768
$ 133,587
21,176

717 )

347 )
1,046)
$ 152,653
$ 578,115
$ 268,432
110,452
378,884
281,367
997
$ 661,248
$ 86,008
13,265
28,729
357
$ 128,359
$ 532,889
  • 50 -

Right-of-use Land Buildings assets Total

September 30, 2019

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.

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

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

==> picture [327 x 28] intentionally omitted <==

Part of the Group’s investment properties is located in the Toufen and Linyuan Industrial District. As these districts are 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.

  • 51 -

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

Fair value
 September 30,
2020
$ 1,220,514
 December 31,
2019
$ 1,180,999
 September 30,
2019		 September 30,
2019
$ 1,183,182

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

18. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill (a)

Other intangible assets (b)
Technology royalties
and patent right

Computer software
Others

 September 30,
2020
$ 269,026


$ 2,108
9,247

-

$ 11,355
 December 31,
2019
$ 269,026

$ 7,109

9,895

-

$ 17,004
 September 30,
2019		 September 30,
2019










$ 269,026
$ 8,775
9,918
1,611
$ 20,304

a. Goodwill

No impairment assessment was performed periodically as there was no indication of impairment on September 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 nine months ended September 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
  • 52 -

19. BORROWINGS

a. Short-term borrowings

Unsecured borrowings
Line of credit
borrowings
Range of interest rates
 September 30,
2020
$ 3,747,363
0.52%～2.89%		 December 31,
2019
$ 4,258,980

0.81%～4.58%		 September 30,
2019
$ 5,006,670
0.83%～5.00%
  • b. Short-term bills payable
Short-term bills payable
September 30,
2020
Commercial paper
$ 895,000

Less: Unamortized
discount on bills
payable
(
510)
$ 894,490

Range of interest rates
0.35%～1.298%
Long-term borrowings
September 30,
2020
Secured borrowings
$ 640,000

Line of credit
borrowings
7,250,000

7,890,000

Commercial paper
40,000
Unamortized discount
on bills payable
(
31)


39,969

7,929,969

Less: Current portions

-

Long-term borrowings
$ 7,929,969

Range of interest rates
Secured borrowings 0.93%～1.11%
Line of credit
borrowings
0.82%～1.04%
Commercial paper
1.298%		 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%		 September 30,
2019
$ 1,679,000
(
278)
$ 1,678,722
0.50%～1.29%
September 30,
2019
$ 2,696,200
6,800,000
9,496,200
200,000
(
231)

199,769
9,695,969
(
511,600)
$ 9,184,369
0.98%～1.34%
1.04%～1.31%
1.50%

c. Long-term borrowings

  • 53 -

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 $5,027,500 thousand, which is used cyclically during the validity period. As of September 30, 2020, the Company had borrowed $1,800,000 thousand.

UPIIC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to June 2023 with a total credit limit of $2,300,000 thousand, which is used cyclically during the validity period. As of September 30, 2020, UPIIC had borrowed $1,000,000 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 September 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 August 2022 with a total credit limit of $1,500,000 thousand, which is used cyclically during the validity period. As of September 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 September 30, 2020, TVCM had borrowed $50,000 thousand.

TTC entered into medium- and long-term financing contracts with banks to increase working capital. The contract will be

  • 54 -

effective up to July 2023 with a total credit limit of $2,200,000 thousand, which is used cyclically during the validity period. As of September 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 $5,950,000 thousand, which is used cyclically during the validity period. As of September 30, 2020, APC had borrowed $3,150,000 thousand.

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 September 30, 2020, ACME had borrowed $380,000 thousand.

SPC entered into medium- and long-term financing contracts with banks to increase working capital. The contracts will be effective up to June 2025 with a total credit limit of $750,000 thousand, which is used cyclically during the validity period. As of September 30, 2020, SPC had borrowed $500,000 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 September 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,		 September 30,
2020
$ -
 December 31,
2019
$ 1,000,000
 September 30,
2019
$ 1,000,000
  • 55 -
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
Domestic unsecured bonds
105-1 - issuance on
October 28, 2016, 5
years, total amount
$2,000,000 thousand,
coupon rate 0.80%,
bullet repayment
Domestic unsecured bonds
106-1 - issuance on
October 27, 2017, 5
years, total amount
$2,000,000 thousand,
coupon rate 1.10%,
bullet repayment
Domestic unsecured bonds
108-1 - issuance on April
26, 2019, 5 years, total
amount $2,000,000
thousand, coupon rate
0.98%, bullet repayment

Discounts on bonds
payable

Less: Current portions

 September 30,
2020
1,000,000

2,000,000

2,000,000

2,000,000

7,000,000

(
6,445)

6,993,555


-

$ 6,993,555
 December 31,
2019
1,000,000

2,000,000

2,000,000

2,000,000

8,000,000

(
8,717)

7,991,283

(
999,956)

$ 6,991,327
 September 30,
2019		 September 30,
2019





(




(

(




(

(
 1,000,000
2,000,000
2,000,000
2,000,000
8,000,000

9,551)
7,990,449

999,861)
$ 6,990,588

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

  • 56 -

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 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 issuance 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 by the end of 2020.

21. NOTES AND ACCOUNTS PAYABLE

Operating
Notes payable

Accounts payable

 September 30,
2020
$ -

2,448,891

$ 2,448,891
 December 31,
2019
$ -

2,757,368

$ 2,757,368
 September 30,
2019		 September 30,
2019






$ 192
2,733,767
$ 2,733,959

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.

  • 57 -

22. OTHER PAYABLES

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


Other liabilities
Refund liabilities

 September 30,
2020
$ 864,133
212,380
159,424
139,627

58,862
47,387
41,339

41,156

29,341

22,381
22,423

412,848

2,051,301


18,859

$ 2,070,160
 December 31,
2019
$ 790,918

188,541
174,702
191,407
55,434
19,236
-
20,779
26,576
17,771
21,814

430,848

1,938,026


28,221

$ 1,966,247
 September 30,
2019
















$ 722,165
209,910
156,552
200,161
71,893
42,550
-
14,141
24,573
23,756
20,105
406,820
1,892,626
24,499
$ 1,917,125

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

sold.
PROVISIONS
Non-current
Litigation provision
 September 30,
2020
$ 136,375
 December 31,
2019
$ 136,375
 September 30,
2019
$ 136,375
  • 58 -

Litigation provision is a result of the first-instance judgment and reconciliation of the Kaohsiung gas explosion case on July 31, 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 September 30, 2020 and 2019 and for the nine months ended September 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
September 30,
2020
$ 7,480

762
1,192
331

50

$ 9,815
 For the Three
Months Ended
September 30,
2019
$ 9,350

989
1,225
413

61

$ 12,038
 For the Nine
Months Ended
September 30,
2020
$ 22,605

2,347
3,610
1,026

151

$ 29,739
 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019








$ 27,433
3,010
4,433
1,239
205
$ 36,320

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. Furthermore, Kunshan Zhoushizhen People’s Government subsidized Acme Electronics Corporation (Kunshan)’s acquisition of the land for its new plant and the external line project for high voltage power during the relocation process. Acme Electronics Corporation (Kunshan) recognized the subsidy as long-term deferred revenue, which will be amortized along with the use of assets.

  • 59 -

As of September 30, 2020, December 31, 2019, and September 30, 2019, the amounts of deferred income (booked under other current liabilities) that had not been amortized were RMB8,495 thousand (NTD$36,301 thousand), RMB8,893 thousand (NTD$38,216 thousand) and RMB9,025 thousand (NTD$39,608 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 September 30, 2020, $8,367 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.

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

information available
EQUITY		 on the balance sheet date.
Share capital

Capital surplus
Retained earnings
Other equity items

Treasury shares

Non-controlling interests

 September 30,
2020
$ 11,887,635
341,299
8,196,994
(
559,704 )
(
475,606 )
24,806,005

$ 44,196,623
 December 31,
2019
$ 11,887,635

271,613

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

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

268,630

7,480,587
(
520,032 )
(
475,606 )
20,383,390
$ 39,024,604

  • a. Share capital

  • 60 -

Number of shares
authorized (in
thousands)
Shares authorized

Number of shares
issued and fully paid
(in thousands)
Shares issued
 September 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
 September 30,
2019		 September 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 arising from investments accounted for using the equity method and from dividends had not been received during the given period by stockholders are used to offset a deficit only. The capital surplus arising from employee stock option may not be used for any purposes.

c.

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 after tax shall be first utilized for 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

  • 61 -

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.

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		 Appropriation of Earnings
2019
2018
$ 129,872 $ 53,994
350,533
55,399		 Dividends Per Share(NT$) Dividends Per Share(NT$)
2019
$ 129,872
350,533		 2019

 2018
  • 62 -

Cash dividends 594,382 356,629 $ 0.5 $ 0.3 $ 1,074,787 $ 466,022

  • d. Other equity items

  • Exchange differences on translating the financial statements of foreign operations

For the Nine For the Nine Months Ended Months Ended September 30, September 30, 2020 2019 Balance at January 1 ( $ 602,871 ) ( $ 208,307 ) Recognized during the period Exchange differences on translating foreign operations ( 162,239 ) ( 181,592 ) Related income tax 23,172 36,786 Disposition of subsidiaries’ equity ( 68 ) - Balance at September 30 ( $ 742,006 ) ( $ 353,113 )

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

For the Nine For the Nine Months Ended Months Ended September 30, September 30, 2020 2019 Balance at January 1 ( $ 178,187 ) ( $ 85,136 ) Recognized during the period Unrealized gain Equity instruments 282,630 ( 47,273 ) Related income tax ( 218 ) 424 Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings 78,077 ( 34,934 )

  • 63 -
due to disposals
Balance at September
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
Unrealized gain (loss)
on financial assets at
FVTOCI
Income tax relating to
unrealized gain (loss)
on financial assets at
FVTOCI
Disposition of
subsidiaries’ equity
Adjustments relating to		 For the Nine
Months Ended
September 30,
2020
$ 182,302
For the Nine
Months Ended
September 30,
2020
$ 20,517,444

-
20,517,444
(
519,048 )
1,621,087
For the Nine
Months Ended
September 30,
2020
( $ 138,279 )
8,094
42,441
(
456 )
(
85 )
(
50,635 )		 For the Nine
Months Ended
September 30,
2019
($ 166,919)
For the Nine
Months Ended
September 30,
2019
$ 18,267,556
(
4,490)
18,263,066
(
705,440 )
860,396
For the Nine
Months Ended
September 30,
2019
( $ 213,607 )
21,129
(
73,924 )
908
-
(
2,253 )

  • e. Non-controlling interests

  • 64 -

changes accounted for
using the equity method
Changes in non-controlling
interests
Balance at September 30		 For the Nine
Months Ended
September 30,
2020

3,325,442
$ 24,806,005		 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019


2,233,115
$ 20,383,390

f. Treasury shares

Treasury shares
Purpose of Buy-Back
For the nine months
ended September 30,
2020
Transfer from shares
held by subsidiaries
under equity method
For the nine months
ended September 30,
2019
Transfer from shares
held by subsidiaries
under equity method		 Number of
Shares at
January 1
(In
Thousands
of
Shares)		 Increase
During the
Period

-


-
 Decrease
During the
Period

-


-
 Number of
Shares at
September
3 0 ( I n
Thousands
of Shares)

116,466

116,466

116,466
116,466

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

Name of Subsidiary
September 30, 2020
Asia Polymer
Corporation (“APC”)
Taita Chemical
Company, Limited
(“TTC”)		 Number of
Shares Held
(In Thousands
of Shares)
101,356

15,110

 Carrying
Amount

$ 1,377,381

81,875

$ 1,459,256
 Market Price Market Price




$ 1,591,284
237,226
$ 1,828,510
  • 65 -
Name of Subsidiary
December 31, 2019
APC
TTC
September 30, 2019
APC
TTC		 Number of
Shares Held
(In Thousands
of Shares)
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
 Market Price Market Price










$ 1,403,776
209,272
$ 1,613,048
$ 1,307,488
194,918
$ 1,502,406

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 September 30, 2020, December 31, 2019 and September 30, 2019. The carrying amounts of investments accounted for using the equity method and the unrealized gain on financial assets at FVTOCI were reduced by $126,165 thousand, $55,255 thousand and $18,842 thousand, respectively.

27. REVENUE

REVENUE
Product sales revenue
Plastic materials

Electronic materials
Others

 For the Three
Months Ended
September 30,
2020
$ 11,762,778

520,064

131,559

$ 12,414,401
 For the Three
Months Ended
September 30,
2019
$ 13,297,885

551,071

141,538

$ 13,990,494
 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2019
$ 40,003,715
1,587,013

394,372
$ 41,985,100






$ 32,669,839

1,582,323
375,041

$ 34,627,203
 $ 40,003,715
1,587,013
394,372
$ 41,985,100

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

Contract balances

Contract balances
Notes
and
accounts		 September 30,
2020
$ 5,622,683
 December 31,
2019
$ 7,045,512
 September 30,
2019		 January1,2019
$ 8,548,733
$ 7,556,402
 $ 8,548,733
  • 66 -

receivables (Note 10)

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
September 30,
2020
$ 600,567


820,117

$ 1,420,684
 For the Three
Months Ended
September 30,
2019
$ 302,094


269,382

$ 571,476
 For the Nine
Months Ended
September 30,
2020
$ 1,111,847


1,619,732

$ 2,731,579
 For the Nine
Months Ended
September 30,
2019






$ 996,589

858,076
$ 1,854,665

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
September 30,
2020
$ 19,942

-


404


46

$ 20,392
 For the Three
Months Ended
September 30,
2019
$ 29,846


1,131


276

1,854

$ 33,107
 For the Nine
Months Ended
September 30,
2020
$ 74,745


3,730

2,141

148

$ 80,764
 For the Nine
Months Ended
September 30,
2019







$ 91,076

20,797
1,109

2,281
$ 115,263

b. Other income

Other income
Dividend income

Claims income
Rental income
Grant income (Note
25)
Government grants
income (Note 15)
Management service
income (Note 35)
Others

 For the Three
Months Ended
September 30,
2020
$ 76,811

580

20,501

576

-

8,502


14,179

$ 121,149
 For the Three
Months Ended
September 30,
2019
$ 110,501


-

15,854

905

-

7,581

35,364

$ 170,205
 For the Nine
Months Ended
September 30,
2020
$ 146,135

23,124

45,166

5,033

-

23,281


46,610

$ 289,349
 For the Nine
Months Ended
September 30,
2019









$ 161,637

15,924

43,644

11,136

155,710

21,045

119,355
$ 528,451
  • 67 -

c. Other gains and losses

Gain on disposal of
property, plant and
equipment

Loss on disposal of
property, plant and
equipment

Net (loss) gain on
disposal of financial
instruments

Net foreign exchange
(loss) gain

Net gain (loss) on
financial assets at
FVTPL
Net (loss) gain on
financial liabilities at
FVTPL

Impairment losses
recognized on
non-financial assets
Depreciation of
investment
properties

Other gains and losses

d.
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
September 30,
2020
$ 1,670

(
18,092 )
(
52,819 )
(
34,486 )
166,184
(
14,283 )
(
1,652 )
(
15,082 )
(
8,239)

$ 23,201

For the Three
Months Ended
September 30,
2020
$ 29,080

19,895


14

1,799

(
676)

$ 50,112
 For the Three
Months Ended
September 30,
2019
$ 923

(
4,486 )

8,420
(
132,016 )
44,749


169

(
1,414 )
(
11,755 )
(
44,121)

($ 139,531)

For the Three
Months Ended
September 30,
2019
$ 46,812


23,856

17

1,935
(
2,633)

$ 69,987
 For the Nine
Months Ended
September 30,
2020
$ 9,701

(
43,990 )
326,200
(
71,573 )
(
119,951 )
(
24,015 )
(
2,227 )
(
29,377 )
(
43,949)

$ 819

For the Nine
Months Ended
September 30,
2020
$ 109,420

61,002
50
5,549
(
1,904)

$ 174,117
 For the Nine
Months Ended
September 30,
2019
$ 37,722
(
6,206 )
15,476
(
27,433 )

138,414
(
25,140 )
(
1,707 )
(
35,310 )
(
67,914)
$ 27,902
For the Nine
Months Ended
September 30,
2019


(



(
(
 $ 157,035
65,028
1,041
5,941
(
16,875)
$ 212,170

Information about capitalized interest is as follows:

For the Three For the Three For the Nine For the Nine Months Ended Months Ended Months Ended Months Ended September 30, September 30, September 30, September 30,

  • 68 -
Capitalized interest

Capitalization rate

e.
Depreciation and		 2020
2019
$ 676
$ 2,633

0.85%～1.23% 0.62%～1.25%
amortization		 2020
$ 1,904

0.76%～1.23%		 2019
$ 16,875
0.62%～1.48%
For the Three
Months Ended
September 30,
2020
Property, plant and
equipment
$ 541,502

Right-of-use assets
16,563

Investment properties
6,881

Intangible assets
2,595

Others

15,533

$ 583,074


Analysis of
depreciation by
function

Operating costs
$ 519,596

Operating
expenses
30,268

Other gains and
losses

15,082

$ 564,946


Analysis of
amortization by
function

Operating costs
$ 15,514

Selling and
marketing expenses
137

General and
administrative
expenses
740

Research and
development
expenses

1,737

$ 18,128

f.
Employee benefits expense
For the Three
Months Ended
September 30,
2020
Post-employment
benefits (Note 24)
Defined
contribution
plans
$ 26,640

Defined benefit

9,815
 For the Three
Months Ended
September 30,
2019
$ 514,760


15,640

4,406

5,589

12,590

$ 552,985



$ 492,654


30,397

11,755

$ 534,806



$ 12,596


2,539

1,377

1,667

$ 18,179

For the Three
Months Ended
September 30,
2019
$ 39,815


12,038
 For the Nine
Months Ended
September 30,
2020
$ 1,624,124

50,411

21,176

7,896


44,721

$ 1,748,328


$ 1,581,951

84,383


29,377

$ 1,695,711



$ 44,664

408

2,315


5,230

$ 52,617

For the Nine
Months Ended
September 30,
2020
$ 85,442


29,739
 For the Nine
Months Ended
September 30,
2019
$ 1,518,204

47,172

13,265

18,178

33,012
$ 1,629,831

$ 1,454,163

89,168

35,310
$ 1,578,641


$ 33,457

7,659

5,073

5,001
$ 51,190
For the Nine
Months Ended
September 30,
2019


$ 116,239

36,320
  • 69 -
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
September 30,
2020		 For the Three
Months Ended
September 30,
2020		 For the Three
Months Ended
September 30,
2019

51,853

1,161,986

$ 1,213,839



$ 862,402


347,219

4,218

$ 1,213,839
 For the Nine
Months Ended
September 30,
2020
115,181


3,200,276

$ 3,315,457



$ 2,333,478

968,829


13,150

$ 3,315,457
 For the Nine
Months Ended
September 30,
2019




36,455

1,132,017

$ 1,168,472



$ 831,708

332,043

4,721

$ 1,168,472




152,559

3,238,074
$ 3,390,633


$ 2,348,588

1,029,294

12,751
$ 3,390,633

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

Accrual rates

Accrual rates
Employees’ compensation
Remuneration of directors		 For the Nine
Months Ended
September 30,
2020
1.00%
0.35%		 For the Nine
Months Ended
September 30,
2019
1.00%
0.35%

Amount

For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
2020 2019 2020 2019
  • 70 -

==> picture [403 x 48] intentionally omitted <==

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.

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
 For the Three
Months Ended
September 30,
2020		 For the Three
Months Ended
September 30,
2020		 For the Three
Months Ended
September 30,
2019
$ 34,980

(
166,996)

($ 132,016)
 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2019
$ 203,082
(
230,515)
($ 27,433)

(
(		 $ 24,224

58,710)

$ 34,486)
(
(		 $ 135,783

207,356)

$ 71,573)

  • 71 -

  • 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
September 30,
2020
$ 322,449

2
(
100)


322,351


12,321
(
3,314)


9,007

$ 331,358
 For the Three
Months Ended
September 30,
2019
$ 151,208


-

(
3,488)


147,720



8,932


400


9,332

$ 157,052
 For the Nine
Months Ended
September 30,
2020
$ 676,980


29,544
(
13,666)


692,858



76,199

(
3,704)


72,495

$ 765,353
 For the Nine
Months Ended
September 30,
2019

(

(

(

(


(
(





 $ 486,251
-
8,746)
477,505

107,560
1,435
108,995
$ 586,500

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 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, which 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

  • 72 -

deducted the amount of capital expenditure from the unappropriated earnings that was reinvested.

b. Income tax recognized in other comprehensive income

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
 For the Three
Months Ended
September 30,
2020
$ 60,495

957

$ 61,452
 For the Three
Months Ended
September 30,
2019
( $ 80,592 )
(
658)

($ 81,250)
 For the Nine
Months Ended
September 30,
2020
( $ 31,266 )

674

($ 30,592)
 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019


(
(
(		 (

(		 (
(
(		 $ 57,915 )
1,332)
$ 59,247)

c. Income tax assessments

The income tax return of TMC through 2019 has been assessed by the tax authorities. The income tax returns of APC, UPIIC, TVCM, USIIC, APCI, TUVC, TUVM, INOMA, STC, SPC, CLT, CGTD, CGPC, CGPCPOL 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, and ACME through 2017 have been assessed by the tax authorities.

30. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic and diluted
earnings per share
From continuing
operations and
discontinued
operations
From discontinued
 For the Three
Months Ended
September 30,
2020
$ 0.56


-
 For the Three
Months Ended
September 30,
2019
$ 0.28


-
 For the Nine
Months Ended
September 30,
2020
$ 1.04


-
 For the Nine
Months Ended
September 30,
2019
$ 0.93

-
  • 73 -

operations From continuing operations $ 0.56 $ 0.28 $ 1.04 $ 0.93

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

For the Three For the Three For the Nine For the Nine Months Ended Months Ended Months Ended Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019

Profit for the period attributable to owners of the Company (earnings used in the computation of basic and diluted earnings per share) $ 600,799 $ 301,812 $ 1,112,599 $ 997,873 Less: (Loss) Gain for the period from discounted operations used in computation of basic earnings per share from discounted operations ( 232 ) 282 ( 752 ) ( 1,284 ) Earnings used in the computation of basic and diluted earnings per share from continuing operations $ 600,567 $ 302,094 $ 1,111,847 $ 996,589

  • 74 -

Weighted Average Number of Ordinary Shares Outstanding

(In Thousands of Shares)

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
September 30,
2020
1,072,298



754


1,073,052
 For the Three
Months Ended
September 30,
2019

1,072,298



902


1,073,200
 For the Nine
Months Ended
September 30,
2020
1,072,298




1,062


1,073,360
 For the Nine
Months Ended
September 30,
2019





1,072,298


1,029

1,073,327

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 nine months ended September 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 nine months ended September 30, 2020 and 2019. Information on employee share options which were issued was as follows:

  • 75 -

Employee share
options
Balance at
January 1
Options
exercised

Balance at
September 30
 For the Nine Months Ended
September 30,2019		 For the Nine Months Ended
September 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 September 30, 2019. As of September 30, 2020, ACME did not have any outstanding employee share options.

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

Employee share
options
Balance at
January 1
Options expired
Balance at
September 30
Options
exercisable,
end of period		 For the Nine Months Ended
September 30,2020
Number of
Options
Weighted
average
Exercise
Price
(NT$)
133
$ 10.8

-
-


133
10.8


133
10.8
 For the Nine Months Ended
September 30,2019		 For the Nine Months Ended
September 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

32. CASH FLOW INFORMATION

a. Non-cash transactions

For the nine months ended September 30, 2020 and 2019, the Group entered into the following non-cash investing and

  • 76 -

financing activities which were not reflected in the consolidated statements of cash flows:

  1. As of September 30, 2020, December 31, 2019, and September 30, 2019, the amounts of payables for purchases of equipment were $139,627 thousand, $191,407 thousand, and $200,161 thousand, respectively. As of September 30, 2020, the amount of payables for purchases of land was $41,339 thousand (as of December 31 and September 30, 2019: none).

  2. As of September 30, 2020, December 31, 2019, and September 30, 2019, the amounts of payables for dividends declared but not issued were $22,381 thousand, $17,771 thousand and $23,756 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		 N
o
n
-
c		 a s
h
C
h		 a
n
g
e
s		 a
n
g
e
s

Others		 September 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		 ( $ 511,617 )
(
458,000 )
(
1,000,000 )
(
1,563,001 )
10,417
(
51,580 )
(
951)

($ 3,574,732)


Cash Flows






$ -


-

-

-
-

2,765

-

$ 2,765

N
o
n
-
c


a		 $ -

-
2,272
-
-
5,549


-

$ 7,821

s
h
C
h		 $ -

-

-
-
-
(
28,871 )

-

($ 28,871)


a
n
g
e
s		 $ -

(
320 )
-
-
-
(
5,549 )

-

($ 5,869)



Others



$ 3,747,363

894,490
6,993,555
7,929,969
37,892

475,092

40,827
$ 20,119,188
September 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
-


44,820

$ 23,448,348
 ( $ 1,720,184 )
164,000
1,995,630
553,345
1,254
(
47,068 )
(
465)

$ 946,512


$ -

-
-
-
-

546,116

-

$ 546,116

$ -

-
2,215
-
-
5,941

-

$ 8,156

$ -

-

-

-
-
188


-

$ 188
 $ -

(
62 )
(
999,861 )
999,861

-
(
5,941 )

-

($ 6,003)





$ 5,006,670

1,678,722

6,990,588
10,695,830
27,916

499,236

44,355
$ 24,943,317
  • 77 -

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 associated 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 September 30, 2020

Financial liabilities
Financial liabilities at
amortized cost
Domestic corporate bonds
December 31, 2019
Carrying
Amount
$ 6,993,555


Carrying
Amount
$ 7,991,283


Carrying
Amount		 F
a
i		 r V
a		 l u
e
Level 2
$ 7,033,298

r		 Level 3
$ -

V
a		 Total


l		 $ 7,033,298
u
e
Level 2
$ 8,027,387

r		 Level 3
$ -

V
a		 Total

l		 $ 8,027,387
u
e

Financial liabilities
Level 1 Level 2 Level 3 Total
  • 78 -

Financial liabilities at amortized cost Domestic corporate bonds $ 7,990,449 $ - $ 8,023,400 $ - $ 8,023,400

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

September 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
Foreign unlisted
shares


Financial liabilities at
FVTPL
Derivative financial
liabilities		 Level 1
$ -

251,227
4,553,710
230,796
382

$ 5,036,115

$ 1,616,809

-
-
15,025
-

$ 1,631,834

$ -
 Level 2
$ 7,629

-
-
-
-

$ 7,629

$ -

-
-
-
-

$ -

$ 8,622
 Level 3
$ -

-
-

-
-

$ -

$ -

9,171
815,438
-
97,200

$ 921,809

$ -
 Total


























$ 7,629
251,227
4,553,710
230,796
382
$ 5,043,744
$ 1,616,809
9,171
815,438
15,025
97,200
$ 2,553,643
$ 8,622
  • 79 -

December 31, 2019

December 31, 2019 December 31, 2019
Level 1
Financial assets at FVTPL
Derivative financial
assets
$ -

Domestic listed
shares and
over-the-counter
shares
364,057
Mutual funds
4,907,560
Beneficiary
certificates
1,071,797
Foreign listed shares
545


$ 6,343,959

Financial assets at
FVTOCI
Equity instrument
investments
Domestic listed
shares and
over-the-counter
shares
$ 1,614,413

Domestic emerging
market shares
-
Domestic unlisted
shares
-
Level 1
Foreign listed shares
and
over-the-counter
shares
$ 8,649

Foreign unlisted
shares

-


$ 1,623,062

Financial liabilities at
FVTPL
Derivative financial
liabilities
$ -

September 30, 2019
Level 1
Financial assets at FVTPL
Derivative financial
assets
$ -

Domestic listed
shares and
over-the-counter
shares
161,044
Mutual funds
4,539,622
Beneficiary
certificates
1,015,424
Foreign listed shares
751


$ 5,716,841
 Level 2
$ 14,066

-
-
-
-

$ 14,066

$ -

-
-
Level 2
$ -

-

$ -

$ 4,136

Level 2
$ 23,958

-
-
-
-

$ 23,958
 Level 3
$ -

-
-

-

-

$ -

$ -

16,178
632,134
Level 3
$ -

100,139

$ 748,451

$ -

Level 3
$ -

-
-

-

-

$ -
 Total











$ 14,066
364,057
4,907,560
1,071,797
545
$ 6,358,025
$ 1,614,413
16,178
632,134
Total









$ 8,649
100,139
$ 2,371,513
$ 4,136
Total

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

Beneficiary
certificates
Foreign listed shares












$ 23,958
161,044
4,539,622
1,015,424
751
$ 5,740,799
  • 80 -
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
$ 1,664,220

-
-
6,090
-

$ 1,670,310

$ -
 Level 2
$ -

-
-
-
-

$ -

$ 2,144
 Level 3
$ -

20,608
639,287
-
101,397

$ 761,292

$ -
 Total












$ 1,664,220
20,608
639,287
6,090
101,397
$ 2,431,602
$ 2,144

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

  1. Reconciliation of Level 3 fair value measurements of financial instruments
financial instruments
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 September 30		 For the Nine
Months Ended
September 30,
2020
$ 748,451
250,001
(
76,643 )

-
$ 921,809		 For the Nine
Months Ended
September 30,
2019
$ 845,179
(
31,464 )
-
(
52,423)
$ 761,292

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

  2. 81 -

Financial Instruments
Financial liabilities –
domestic corporate
bonds

Derivatives - foreign
exchange forward
contracts
 Valuation Techniques and Inputs
The
corporate
bond
interest
rate
announced by Taipei Exchange, of which
per-hundred
price
is
calculated
according to the credit rating and the
expiration date through interpolation
method.
Discounted cash flow: Future cash flows
are estimated based on observable
forward exchange rates at the end of the
reporting period and contract forward
rates, discounted at a rate that reflects
the credit risk of various counterparties.
  1. 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 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 $92,181 thousand and $76,129 thousand, respectively, for the nine months ended September 30, 2020 and 2019.

  • c. Categories of financial instruments

  • 82 -

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 and
demand deposits
Investment
products
Time deposits with
initial maturity of
more than three
months
Notes receivable
Accounts receivable
Other receivables
(including related
parties)
Refundable deposits
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
 September 30,
2020
$ 5,043,744

8,901,630


678,998
77,771
18,714
458,308
5,164,375

375,626

160,439
2,553,643

8,622
3,747,363

894,490

2,448,891
 December 31,
2019
$ 6,358,025

7,927,403

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

277,131
181,829
2,371,513

4,136
4,258,980

1,352,810

2,757,368
 September 30,
2019
$ 5,740,799
8,416,958
662,074
-
-
785,404
6,770,998
307,483
154,807
2,431,602
2,144
5,006,670
1,678,722
2,733,959
  • 83 -
Other payables (not
including salaries
payable or taxes
payable)

Current portion of
long-term
borrowings
Bonds payable

Long-term
borrowings

Guarantee deposits
received		 September 30,
2020
1,139,781

-

6,993,555

7,929,969

37,892		 December 31,
2019
1,127,872

1,443,156

6,991,327

9,049,770

27,475		 September 30,
2019
1,127,911
1,511,461
6,990,588
9,184,369
27,916

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.

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

  • 84 -

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 appreciates/depreciates by 3%, the Group’s profit before tax for the nine months ended September 30, 2020 will decrease/increase by $71,723 thousand; the profit before tax for the nine months ended September 30, 2019 will decrease/increase by $115,588 thousand.

Since 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

  • 85 -

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		 September 30,
2020
$ 5,307,962
14,170,499

4,023,579
5,869,970		 December 31,
2019
$ 5,253,127
15,821,920

3,441,301

7,826,901		 September 30,
2019
$ 4,839,303
16,832,048

3,762,701

8,038,998

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 nine months ended September 30, 2020 and 2019 would have decreased/increased by $6,924 thousand and $16,036 thousand, respectively.

  • 86 -

(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 following analysis 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 nine months ended September 30, 2020 and 2019 would have increased/decreased by $251,806 thousand and $285,842 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 nine months ended September 30, 2020 and 2019 would have increased/decreased by $127,682 thousand and $121,580 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

  • 87 -

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

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.

  • 88 -

September 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

0.52-1.30

0.35-2.89

 On Demand
or
Less than 1
Year



1-5 Years
$ -

259,867

5,630,000

9,300,000

$ 15,189,867
 5+ Years


$ 4,500,192
97,764
240,000

4,402,363

$ 9,240,319



$ -

326,735

-

-
$ 326,735

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

$ 52,399		 More than
20 Years
$ 97,764
 $ 259,867
 $ 99,160
 $ 52,400
 $ 122,776

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:

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

  • 89 -

September 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
0.83-5.00
0.50-3.15

 On Demand
or
Less than 1
Year



1-5 Years
$ -

267,106

7,184,600

9,000,000

$ 16,451,706
 5+ Years


$ 4,626,585
70,818
854,628

7,342,642

$ 12,894,673



$ -

196,199

-

-
$ 196,199

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

$ 47,250		 20+ Years
$ 70,818
 $ 267,106
 $ 98,496
 $ 50,453
 $ -
  • (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.

September 30, 2020

On Demand or Less than 3 Months to 1 1 Month 1-3 Months Year Gross settled

  • 90 -

Foreign exchange forward contracts Inflows $ 520,266 $ 1,031,827 $ 37,468 Outflows ( 517,993 ) ( 1,281,224 ) ( 39,729 ) $ 2,273 ( $ 249,397 ) ( $ 2,261 ) December 31, 2019 On Demand or Less than 3 Months to 1 1 Month 1-3 Months Year Gross settled Foreign exchange forward contracts Inflows $ 976,924 $ 1,557,083 $ 28,793 Outflows ( 972,818 ) ( 1,552,082 ) ( 29,358 ) $ 4,106 $ 5,001 ( $ 565 )

September 30, 2019 On Demand or Less than 3 Months to 1 1 Month 1-3 Months Year Gross settled Foreign exchange forward contracts Inflows $ 1,253,417 $ 1,381,998 $ 36,159 Outflows ( 1,242,662 ) ( 1,389,275 ) ( 37,733 ) $ 10,755 ( $ 7,277 ) ( $ 1,574 )

(3) Financing facilities

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

September December 31, September 30, 2020 2019 30, 2019

Bank loan facilities

  • 91 -

Amount unused $ 35,528,581 $ 23,210,225 $ 27,031,040

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 as follows.

  • a. Related parties’ names and relationships

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

  • b. Donation expense (classified as general and administrative expenses)
expenses)
Related Party
Category/Name
Other related party
USI Education
Foundation
 For the Three
Months Ended
September 30,
2020
$ -		 For the Three
Months Ended
September 30,
2019
$ -
 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2019
$ 8,250 $ 8,500
  • c. Management services income (classified as other income)
Related Party
Category/Name
Joint venture
 For the Three
Months Ended
September 30,
2020
$ 8,502
 For the Three
Months Ended
September 30,
2019
$ 7,581
 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019
$ 23,281
 $ 21,045
  • d. Other Receivables
Other Receivables
Related Party
Category/Name
Joint venture
 September 30,
2020
$ 7,581
 December 31,
2019
$ 16,494
 September 30,
2019
$ 6,810

  • e. Compensation of key management personnel

  • 92 -

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
September 30,
2020
$ 9,563


81

$ 9,644
 For the Three
Months Ended
September 30,
2019
$ 10,152


81

$ 10,233
 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2020		 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019






$ 29,321
243
$ 29,564

$ 29,693
243
$ 29,936

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 compensation:

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)
 September 30,
2020
$ 678,998

-
3,555,403


108,178
28,223

60,207

$ 4,431,009
 December 31,
2019
$ 659,923

-
3,802,055

108,178
31,666

93,105

$ 4,694,927
 September 30,
2019		 September 30,
2019










$ 662,074
543,850
6,837,369
108,178
76,370
69,267
$ 8,297,108

37. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENT

  • a. As of September 30, 2020, December 31, 2019 and September 30, 2019, the Company’s unused letter of credit amounted to

  • 93 -

$1,808,019 thousand, $2,715,961 thousand and $2,436,270 thousand, respectively.

b. The following is regarding the subsidiary, CGTD, who was commissioned to operate LCY Chemical Corp.’s propene pipeline 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 City Government on February 12, 2015, to pledge certificates of bank deposits of $227,417 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 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 October 30, 2020, the provisionally attached properties were worth $8,437 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.

  • 94 -

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 October 30, 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 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

  • 95 -

$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 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

  • 96 -

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 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

  • 97 -

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 $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.

  • 98 -

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.

individual commissioned companies.
C o m m i s s i o n i n g C o m p a n y
Taita Chemical Company, Ltd.
Taiwan VCM Corporation
USI Corporation
Asia Polymer Corporation
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.		 O p e r a t i o n C o n t r a c t
P
e
r
i
o
d
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2020.01.01-2020.12.31
2020.01.01-2020.12.31
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

September 30, 2020 F o r e i g n E x c h a n g e R a t e F u n c t i o n a l N T D C u r r e n c y ( I n S i n g l e D o l l a r s ) C u r r e n c y

Foreign currency a s s e t s Monetary items USD $ 123,566 29.10 （ USD ： NTD ） $ 3,595,789 $ 3,595,789

  • 99 -
USD
USD
RMB
RMB
AUD
EUR

Non-monetary
items
Joint ventures
accounted for
using the
equity method
RMB

Derivatives
USD sell
USD sell
RMB sell
EUR sell
JPY buy
Foreign currency
l i a b i l i t i e s		 3,948
3,255
215,361
784
742
363
6.81（USD：RMB）
26,884

4.34（USD：MYR）
14,131

4.27（RMB：NTD）
920,258

0.15（RMB：USD）
115

20.72（AUD：NTD）
15,365

34.15（EUR：NTD）
12,421
September 30,2020
6.81（USD：RMB）
26,884

4.34（USD：MYR）
14,131

4.27（RMB：NTD）
920,258

0.15（RMB：USD）
115

20.72（AUD：NTD）
15,365

34.15（EUR：NTD）
12,421
September 30,2020
114,878

94,727

920,258

3,349

15,365

12,421
F o r e i g n
C u r r e n cy
 E x c h a n g e R a t e
(I n S i ngl e D o l l a r s)
 F u n c t i o n a l
C u r r e n cy
 N
T
D
$ 4,322,682
28,060
522
17,000
180
40,000

33,992

13,938

683

27,568

3,810

9,720

121,300

88
0.15（RMB：USD）


29.10（USD：NTD）

4.34（USD：MYR）

4.27（RMB：NTD）

5.09（EUR：MYR）

0.01（JPY：USD）

29.10（USD：NTD）


6.81（USD：RMB）


4.34（USD：MYR）


4.27（RMB：NTD）


29.10（USD：NTD）


29.10（USD：NTD）


4.27（RMB：NTD）


5.09（EUR：MYR）
 $ 636,214
6,828
65
264
10
380

989,169

94,919

2,963

117,801

495

2,335

5,782

1		 $ 18,513,834

6,828

437

264

64

36

989,169

405,598

19,861

117,801

495

2,335

5,782

10
Monetary items
USD

USD

USD

RMB

Non-monetary
items
Derivatives
USD sell

USD buy

RMB sell

EUR sell

Foreign currency
a
s
s
e
t
s		 December 31,2019 December 31,2019
F o r e i g n
C u r r e n cy
 E x c h a n g e R a t e
(I n S i ngl e D o l l a r s)
 F u n c t i o n a l
C u r r e n cy
 N
T
D
$ 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
26,338
13,095
1,335,629
463
12,835
11,518		 $ 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
  • 100 -
Non-monetary
items
Joint ventures
accounted for
using the
equity method
RMB 3,459,518
0.14（RMB：USD）		 495,903 14,867,168
Derivatives
USD buy 720
29.98（USD：NTD）		 23
23
USD sell 41,000
29.98（USD：NTD）		 11,784
11,784
USD sell 865
4.26（USD：MYR）		 136
960
RMB sell 81,800
4.30（RMB：NTD）		 1,083
1,083
EUR sell 224
4.78（EUR：MYR）		 28
198
JPY buy 40,000
0.01（JPY：USD）		 1
18

Foreign currency
l i a b i l i t i e s		 December 31,2019 December 31,2019
F o r e i g n
C u r r e n cy
 E x c h a n g e R a t e
(I n S i ngl e D o l l a r s)
 F u n c t i o n a l
C u r r e n cy
 N
T
D
$ 34,005

13,611
737

26,824

8,760

155,900		 $ 1,019,462

408,069

22,218

115,276

1,395

2,741
Monetary items
USD

USD

USD
RMB

Non-monetary
items
Derivatives
USD buy

RMB sell


Foreign currency
a
s
s
e
t
s
F o r e i g n
C u r r e n cy
 E x c h a n g e R a t e
(I n S i ngl e D o l l a r s)
 F u n c t i o n a l
C u r r e n cy
 N
T
D
$ 153,549
4,199
3,550
342,970
3,172
6,884
677
502
31.04（USD：NTD）


7.07（USD：RMB）

4.36（USD：MYR）

4.39（RMB：NTD）

0.14（RMB：USD）

3.96（HKD：NTD）

20.97（AUD：NTD）

33.95（EUR：NTD）		 $ 4,766,151
29,706
15,471
1,505,161
448
27,249
14,186
17,068		 $ 4,766,151

130,366

110,184

1,505,161

13,918

27,249

14,186

17,068
Monetary items
USD

USD
USD
RMB
RMB
HKD
AUD
EUR
Non-monetary
items

Joint ventures accounted for using the equity method

  • 101 -
RMB 3,466,779
0.14（RMB：USD）		 490,150 15,214,244
Derivatives
USD sell 20,070
31.04（USD：NTD）		 4,370 4,370
USD sell 1,200
4.36（USD：MYR）		 51 360
RMB sell 242,500
4.39（RMB：NTD）		 18,823 18,823
EUR sell 197
4.77（EUR：MYR）		 39 276
JPY buy 50,000
0.01（JPY：USD）		 4 129
Foreign currency
l i a b i l i t i e s
Monetary items
USD
24,121
31.04（USD：NTD）
748,747 $
748,747
USD
13,048
7.07（USD：RMB）
92,287		 405,014
RMB
52,682
4.39（RMB：NTD）
231,200		 231,200
Non-monetary
items
Derivatives
USD sell
24,690
31.04（USD：NTD）
1,679		 1,679
USD buy
2,140
31.04（USD：NTD）
372		 372
RMB sell
17,900
4.39（RMB：NTD）
42		 42
USD sell
400
4.36（USD：MYR）
7		 51

For the three months ended September 30, 2020 and 2019, realized and unrealized net foreign exchange losses were $34,486 thousand and $132,016 thousand, respectively, and for the nine months ended September 30, 2020 and 2019 were $71,573 thousand and $27,433 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.

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 or disposed of at accumulative costs/prices of at least NT$300 million or 20% of the paid-in capital. (Table 4)

  • 102 -

  • 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 investment income, and limit on the amount of investment in the mainland China area. (Table 8)

  • 103 -

  • 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)

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

  • 104 -

Segment income

Interest income
Finance costs

Depreciation and
amortization
Impairment loss
Reportable segment
profit before tax
Reportable segment
tax expense
Reportable segment
net profit		 For the Nine M onths Ended September 30,2020 onths Ended September 30,2020
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 6,991,816

5,298
(
58,915 )
(
465,884 )
-
1,168,273
(
55,674 )
1,112,599		 $ 9,140,578

3,499
(
6,514 )
(
516,395 )
-
802,327
(
132,139 )
670,188		 $ 10,667,664

22,810
(
18,289 )
(
155,227 )
-

1,454,176
(
325,168 )
1,129,008		 $ 1,582,323

9,271
(
13,345 )
(
145,183 )
(
5,823 )
69,882
(
34,821 )
35,061		 $ 3,985,252

6,692
(
33,812 )
(
235,774 )
(
2,227 )
650,939
(
91,311 )
559,628		 $ 3,264,934

33,194
(
47,655 )
(
284,476 )

-

993,057
(
126,240 )
866,817		 $ 35,632,567
80,764
(
178,530 )
(
1,802,939 )
(
8,050 )
5,138,654
(
765,353 )
4,373,301
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 Nine M onths Ended September 30,2019 onths Ended September 30,2019
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 8,303,904
12,479
(
91,099 )
(
362,465 )
-
1,147,778
(
149,905 )
997,873		 $ 11,407,164
12,155
(
9,188 )
(
476,887 )

-
520,970
(
97,958 )
423,012		 $ 13,464,687
18,009
(
39,739 )
(
157,992 )

-
435,907
(
120,545 )
315,362		 $ 1,587,013
8,612
(
15,642 )
(
159,811 )
-
(
42,613 )
(
14,505 )
(
57,118 )		 $ 5,040,677
10,854
(
41,319 )
(
227,011 )
(
1,707 )

652,163
(
105,362 )

546,801		 $ 3,547,356
53,154
(
34,904 )
(
299,183 )
(
14,131 )
543,885
(
98,225 )
445,660		 $ 43,350,801
115,263
(
231,891 )
(
1,683,349 )
(
15,838 )
3,258,090
(
586,500 )
2,671,590

  • b. Reportable segment income and other major adjustments of items

  • 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 Nine
Months Ended
September 30,
2020
$ 4,145,597
(
639,113)
3,506,484
866,817
(1,641,722)
2,731,579

2,107
$ 2,733,686		 For the Nine
Months Ended
September 30,
2019		 For the Nine
Months Ended
September 30,
2019

(

(
(

(

 $ 2,714,205
488,275)
2,225,930
445,660
816,925)
1,854,665
3,604
$ 1,858,269

2. Other significant items reconciliation

Interest
income
Finance costs
Depreciation
and
amortization
Impairment
loss		 For the Nine Months En ded September 30,2020 ded September 30,2020
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 5,298
(
58,915 )
(
465,884 )
-		 $ 3,499
(
6,514 )
(
516,395 )

-		 $ 22,810
(
18,289 )
(
155,227 )

-		 $ 9,271
(
13,345 )
(
145,183 )
(
5,823 )		 $ 6,692
(
33,812 )
(
235,774 )
(
2,227 )		 $ 33,194
(
47,655 )
(
284,476 )

-		 $ -

2,509

43,722

-		 $ 80,764
(
176,021 )
( 1,759,217 )
(
8,050 )
  • 105 -
Interest
income
Finance costs
Depreciation
and
amortization
Impairment
loss		 For the Nine Months En ded September 30,2019 ded September 30,2019
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 12,479
(
91,099 )
(
362,465 )
-		 $ 12,155
(
9,188 )
(
476,887 )

-		 $ 18,009
(
39,739 )
(
157,992 )

-		 $ 8,612
(
15,642 )
(
159,811 )

-		 $ 10,854
(
41,319 )
(
227,011 )
(
1,707 )		 $ 53,154
(
34,904 )
(
299,183 )
(
14,131 )		 $ -

2,846

41,941

-		 $ 115,263
(
229,045 )
( 1,641,408 )
(
15,838 )

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.

  • 106 -

USI COR PORA TIO N A ND SU BSIDIA RIES

(Acme Electr onics Cor poratio n (A CME))

FINA NCING P ROV IDED TO OTHER S

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

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		 C
o
l
l
a		 t
e
r
a
l
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
receivable
s - related
parties
Yes		 $ 265,410
( USD9,000 thousand)		 $ 261,900
( USD9,000 thousand)		 $ 203,700
( USD7,000 thousand)		 2.13488%～
3.68375%		 2 $ - Business
turnover		 $ - － － $ 509,892 $ 509,892

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 nancing limits were calculated by t he net value as of Se ptember 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 exc hange rate as of Septe mbe r 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 .

  • 107 -

USI COR PORA TIO N A ND SU BSIDIA RIES

(Swanson Plastics Cor poratio n (SPC))

FINA NCING P ROV IDED TO OTHER S

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

TABLE 1-2

(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		 C
o
l
l
a		 t
e
r
a
l
Financing Limit
for Each
Borrower
(Note 1)
 Aggregate
Financing Limit
(Note 1)		 Remark
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		 $ 90,356
183,743
29,100		 $ 90,356
183,743
29,100		 -
4.15%~
4.25%
2.50%		 2
2
2		 $ -
-
-		 Business
turnover
Business
turnover
Business
turnover		 $ -
-
-		 －
－
－		 －
－
－		 $ 134,555
516,896
375,700		 $ 201,832

516,896

375,700

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 o bjects set by the co mpanie 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 exc hange rate as of Septe mbe r 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 .

  • 108 -

USI COR PORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Co mpany, Limite d ( TTC)) FINA NCING P ROV IDED TO OTHER S

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

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		 C
o
l
l
a		 t
e
r
a
l
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		 $ 235,021
( RMB
55,000
thousand
)		 $ 64,097
( RMB
15,000
thousand
)		 $ 64,097
( RMB
15,000
thousand
)		 5.0025% 2 $ - Business
turnover		 $ - － － $ 2,735,628 $ 2,735,628

Note 1: The total a mou nt of le ndi ng to TTC for fu nding of a s hort- ter m pe riod s hall not e xcee d 40% of the net wort h of TTC. As of Sep tember 30, 2020, TTC did not loa n f unds t o a nyone .

Note 2 : The t otal amo unt of le nding t o a co mpany f or funding of short-t erm perio d s hall not excee d 40% o f t he audite d net wo rth of Taita Chemical ( Zho ngsan) Co ., Ltd. The r estrictio n does not a pply t o the su bsi diaries who se voti ng sha re s are 100% ow ned, directl y or indirectly, by TTC. A s o f Septe mbe r 30, 2020, t he audite d net w ort h of Taita Chemical (Z ho ngsan) Co ., Lt d. was RMB640,203 t housa 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 exc hange rate as of Septe mbe r 30, 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 .

  • 109 -

USI CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 2

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

No. Endorser/Guarantor E n d o r s e e / G u a r a n t e e E n d o r s e e / G u a r a n t e e
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

N
a
m
e		 R e l a t i o n s h i p
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		 $ 11,634,371
11,634,371		 $ 3,900,000

311,000
(
USD10,000
thousand
)
(
NTD20,000
thousand
)		 $ 3,900,000
311,000
(
USD10,000
thousand
)
(
NTD20,000
thousand
)		 $ 1,225,000
25,923		 $ -

-
20.12

1.68		 $ 11,634,371
11,634,371		 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 net value as of September 30, 2020.

Note 2: The amount was calculated using the spot exchange rate as of September 30, 2020.

  • 110 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 2-1

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

No. Endorser/Guarantor E n d o r s e e / G u a r a n t e e E n d o r s e e / G u a r a n t e e
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
(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)		 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 Acme Electronics
Corporation		 Acme
Electronics
(Kunshan)
Co.,
Ltd.
Acme
Electronics
(Guang-Zhou)
Co., Ltd.

Subsidiary
of
ACME (Cayman)

Subsidiary of GAEL
$ 1,912,096

1,912,096		 $ 363,000
( USD
12,000
thousand)

151,250
( USD
5,000
thousand
)		 $ 261,900
( USD
9,000
thousand
)
-		 $ 116,400
( USD
4,000
thousand
)

-		 N/A
-		 20.55
-		 $ 2,549,462

2,549,462		 No
No		 No
No		 Yes
Yes

Note 1: The rate was calculated by the ending balance of equity of the endorser/guarantor as of September 30, 2020.

Note 2: The maximum amount of total endorsement/guarantee shall not exceed 200% of the equity attributable to owners of the endorser/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 calculated based on the equity of the endorser/guarantor as of September 30, 2020.

Note 3: The foreign currency amount was calculated based on the spot exchange rate as of September 30, 2020.

  • 111 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SPC))

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 2-2

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

No. Endorser/Guaran
tor		 E n d o r s e e / G u a r a n t e e E n d o r s e e / G u a r a n t e e
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
C o l l a t e r a l
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		 $ 1,550,240
52,089
34,920
87,300
135,660
29,100
29,100
58,200		 $ 14,550
76
-
-
117,500
-
-
-		 $ -
-
-
-
-
-
-
-		 62.22
2.09
1.40
3.50
5.44
1.17
1.17
2.34		 $ 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 individual 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 September 30, 2020.

  • 112 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 2-3

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

No. Endorser/Guaranto
r		 E n d o r s e e / G u a r a n t e e
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 $ 5,194,724 $ 2,200,000 $ 2,150,000 $ 514,550 N/A 24.83 $ 8,657,873 No No No

Note 1: The ratio was calculated by the ending balance of equity of CGPC as of September 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.

  • 113 -

USI COR PORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Co mpany, Ltd. ( TTC))

END OR SEMENTS/ GUARA NTEES P ROV IDED

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

TABLE 2-4

(In Thou sands of New Taiwan D ollars, Unle ss State d Otherwi se)

No. Endorser/Guarantor E n d o r s e e / G u a r a n t e e E n d o r s e e / G u a r a n t e e
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		 $ 5,381,243
5,381,243		 $ 1,647,600
( USD36,000 thousand
)
( NTD
600,000
thousand
)
427,310
( RMB
100,000
thousand)		 $ 1,647,600
( USD36,000 thousand
)
( NTD
600,000
thousand
)
427,310
( RMB
100,000
thousand)		 $ 765,912
( USD
26,320
thousand)
-		 $ -
-		 30.62
7.94		 $ 8,071,865
8,071,865		 No
No		 No
No		 No
Yes

Note 1: The a mo unt was calculated at t he spot exc hange rate as of Septe mbe r 30, 2020.

Note 2 : The ceiling t o TTC on t he total amo unt o f endo rseme nts /guarante es per mitte d shall not excee d 150% of TTC’s net wort h; t he ceiling to TTC on t he total amount o f endor sements / guarant ees to any individual e ntity shall not exceed 100% o f TTC’s net w ort h.

The ceili ng t o TTC and its su bsi diaries o n t he to tal amount of e ndorse me nts/ gua rantee s per mitted shall not excee d 200% of TTC’s ne t wort h; t he ce iling to TTC a nd its su bsidiarie s o n the t otal amount o f endorse me nts/ guara ntees to any i ndivi dual e ntity s ha ll not excee d 150% of TTC’s net wo rth.

  • 114 -

USI CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

SEPTEMBER 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 S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N o t e
Number of
Shares		 Carrying
Amount		 Percentag
e of
Ownershi
p (%)		 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.
Teratech Corp.
Beneficiary certificates
FSITC Taiwan Money Market
Fund
CTBC Hwa-win 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 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 -
current
Financial assets at fair value
through profit or loss -
current


15,130,656
12,799,902
8,514,006
1,753,251
242,000
300,000
1,515,800
110,000
5,541,176
9,910,446		 $ 590,852

313,426

95,357

27,789

16,795

22,320

19,251

-

85,442

110,001
1.98
11.90

0.09

-

-

-

-

-

-

-		 $ 590,852

313,426

95,357

27,789

16,795

22,320

19,251

-

85,442

110,001		 Note 2
  • 115 -
Union Polymer Int'l
Investment Corp.		 Mega Diamond Money Market
Fund
Taishin 1699 Money Market
Fund
Jih Sun Money Market Fund
TCB Taiwan Money Market
Fund
Hua Nan Phoenix Money Market
Fund
Hua Nan Kirin Money Market
Fund
Beneficiary certificates
Cathay No. 1 Real Estate
Investment Trust Fund
Shares
Asia Polymer Corporation
China General Plastics
Corporation
Taita Chemical Company, Ltd.		 －
－
－
－

－
－
－
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 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 other
comprehensive income -
non-current
Financial assets at fair value
through other
comprehensive income -
non-current		 19,933,652
18,562,298
16,833,145
3,225,743
2,137,796
5,225,961
3,290,000
21,747,535
4,256,482
395,025
251,929

253,073

251,401

33,000

35,003

63,008

60,799

384,931

82,789

10,488
-

-

-

-

-

-

-

3.74

0.77

0.11
251,929

253,073

251,401

33,000

35,003

63,008

60,799

384,931

82,789

10,488

(Continued)

  • 116 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N o t e
Number of
Shares		 Carrying
Amount		 Percentag
e of
Ownershi
p (%)		 Fair Value
Swanlake Traders Ltd.
USIFE Investment Co., Ltd.		 Shares
SOHOware Inc.
TGF Linux Communications Inc.
Neurosky Inc. Preferred D
Shares
AU Optronics Corporation
AU Optronics Corporation
Wafer Works Corporation
Solargiga Energy Holdings Ltd.
Dah Chung Bills Finance
Corporation
Swanson Plastics Corp.		 －
－
－
－
－
－
－
－
Investor company and
investee have the same
chairman		 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 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


1,150,000
300,000
2,397,364
1,266,061
1,266,061
3,001,655
11,876,111
470,914
7,605,894		 $ -

-

-

14,180

14,180

102,507

6,867

6,880

104,505
1.05

2.14

0.70

0.01

0.01

0.59

0.37

0.10

4.93		 $ -

-

-

14,180

14,180

102,507

6,867

6,880

104,505		 Note 2
Note 2
Note 2
  • 117 -
USI Optronics Corporation
Digimax, Inc.
Silicon Technology Investment
(Cayman) Corp.
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.
Acme Electronics Corp.
Superactive Group Company
Limited
Beneficiary certificates
Yuanta De-Li Money Market
Fund
Fuh Hwa Money Market Fund		 Investor company and
investee have the same
chairman
－
－
Investor company and
investee have the same
chairman
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 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 -
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		 165,279
23,234
911,849
510,487
1,668,758
1,209,113
584,416
120,000
150,000
498,200
500,000
678,000
1,870,081
3,440,659
342

-

43,194

9,929

29,537

32,102

9,263

8,328

11,160

6,327

7,575

382

30,718

50,008
0.25

0.05

1.77

0.09

0.29

0.35

0.01

0.07

0.01

0.40

0.27

-

-

-
342

-

43,194

9,929

29,537

32,102

9,263

8,328

11,160

6,327

7,575

382

30,718

50,008
  • 118 -
Cathay Taiwan Money Market
Fund		 － Financial assets at fair value
through profit or loss -
current		 5,151,207
64,519
-
64,519
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N o t e
Number of
Shares		 Carrying
Amount		 Percentag
e of
Ownershi
p (%)		 Fair Value
Taiwan United Venture Capital
Corp.
Beneficiary certificates
Fuh Hwa Money Market Fund
Cathay Taiwan Money Market
Fund
Shares
Innovation & Infinity Global
Corp.
Teratech Corp.
MiTAC Holdings Corp.
Chitec Technology Co., Ltd.
Leadwell Cnc Machines Mfg.,
Corp.
Digimax, Inc.
Orgchem Technologies, Inc.
Hexawave,Inc.		 －
－
－
－
－
－
－
－
－
－		 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
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

3,399,556
4,391,849
720,804
90,000
2,062,000
399,091
419,753
518,898
594,594
109,109		 $ 49,411

55,008

-

-

58,973

9,171

15,145

-

8,521

939
-

-

0.73

0.58

0.17

1.37

0.68

1.18

1.09

0.27		 $ 49,411

55,008

-

-

58,973

9,171

15,145

-

8,521

939		 Note 2
Note 2
  • 119 -
Taiwan United Venture
Management Corp.
Inoma Corporation
USI Optronics Corporation		 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		 －
－
－
－
－
－
－
－
－		 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		 12,610
10,000,000
12,595,523
4,532,823
91,730
685,003
1,016,620
1,405,273
1,412,688
260

-

-

-

1,333

9,339

15,183

19,159

17,095
0.03

1.42

1.78

0.64

-

-

-

-

-
260

-

-

-

1,333

9,339

15,183

19,159

17,095		 Note 2
Note 2
Note 2

(Continued)

  • 120 -
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N o t e
Number of
Shares		 Carrying
Amount		 Percentag
e of
Ownershi
p (%)		 Fair Value
USI Management Consulting
Corporation		 Beneficiary certificates
Eastspring Investments Well
Pool Money Market Fund
Fuh Hwa Money Market Fund
Fuh Hwa You Li 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		 511,561
2,064,594
1,105,551		 $ 7,009

30,008

15,000
-

-

-		 $ 7,009

30,008

15,000

Note 1: All securities in the table include stocks, bonds, beneficiary certificates and items derived above which are regulated 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.

  • 121 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2020

TABLE 3-1

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

Hol d i n g C om p a n y
N
a
m
e
Type and Name of Marketable
S
e
c
u
r
i
t
i
e
s
Relationship with the
H o l d i n g C o m p a n y		 Financial Statement Account S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e

N u m b e r o f
S
h
a
r
e
s

C a r r y i n g
A m o u n t

P e r c e n t a g e o f
Ownership (%)
F a i r V a l u e
China General Plastics
Corporation

Taiwan VCM
Corporation
 Closed-end fund beneficiary
certificates
Cathay No. 1 Real Estate
Investment Trust
Open-end fund beneficiary
certificates
Prudential Financial Money
Market Fund
TCB Taiwan Money Market
Fund
Shares
KHL IB Venture Capital Co.,
Ltd.
Open-end fund beneficiary
certificates
Taishin Ta-Chong Money
Market Fund
Hua Nan Kirin Money Market
Fund
FSITC Taiwan Money Market
Jih Sun Money Market Fund
Prudential Financial Money
Market Fund
Taishin 1699 Money Market
Fund
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 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		 2,668,000
3,137,157
4,594,241
6,399,950
13,979,073
12,443,073
8,758,598
6,699,539
3,140,723
2,349,905		 $ 49,305

50,007

47,000

156,735

200,028

150,022

135,052

100,057

50,063

32,038		 -
-
-
5.95
-
-
-
-
-
-		 $ 49,305
50,007
47,000
156,735
200,028
150,022
135,052
100,057
50,063
32,038		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
  • 122 -
CGPC Polymer
Corporation		 Asia Polymer Corporation
Open-end fund beneficiary
certificates
Taishin 1699 Money Market
Fund
TCB Taiwan Money Market
Fund
FSITC Taiwan Money Market
Hua Nan Kirin Money Market
Fund
Hua Nan Phoenix Money
Market Fund
FSITC Money Market Fund		 The major shareholders
are the same as the
those of CGPC
－
－
－
－
－
－		 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		 127,691
16,213,040
6,940,408
3,178,916
3,899,141
2,137,796
139,118
2,260

221,043

71,002

49,017

47,011

35,003

25,000		 0.02
-
-
-
-
-
-		 2,260
221,043
71,002
49,017
47,011
35,003
25,000		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1

(Continued)

  • 123 -
Hol d i n g C om p a n y
N
a
m
e
Type and Name of Marketable
S
e
c
u
r
i
t
i
e
s
Relationship with the
H o l d i n g C o m p a n y		 Financial Statement Account S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e

N u m b e r o f
S
h
a
r
e
s

C a r r y i n g
A m o u n t

P e r c e n t a g e o f
Ownership (%)
F a i r V a l u e
CGPC（BVI）Holding
Co., Ltd.		 Shares
Teratech Corporation
SOHOware,Inc- preference
shares		 －
－		 Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current		 112,000

100,000		 $ -

-		 0.67
-		 $ -
-		 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 restrictions. Note 2: The preference shares are not used in the calculation of shareholding ratio and net worth.

Note 3: As of September 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.

  • 124 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd. (TTC))

MARKETABLE SECURITIES HELD SEPTEMBER 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 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e

Number of
Shares		 Carrying
Amount		 Percentage
of
Ownershi
p
(%)
Fair Value
Taita Chemical
Company, Ltd.

TAITA (BVI) Holding
Co., Ltd.		 Shares
USI Corporation－ordinary shares
Harbinger Venture Capital－ordinary
shares
Closed-end fund beneficiary certificates
Cathay No. 1 Real Estate Investment Trust
Fund
Open-end fund beneficiary certificates
Mega Diamond Money Market Fund
Prudential Financial Money Market Fund
Hua Nan Phoenix Money Market Fund
Hua Nan Kirin Money Market Fund
Shin Kong Chi-Shin Money-Market Fund
Jih Sun Money Market Fund
CTBC Hwa-win Money Market Fund
Special Account
Taishin 1699 Money Market Fund
TCB Taiwan Money Market Fund
Shares
Budworth Investment Ltd.－ordinary
shares		 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 other comprehensive
income - non-current		 15,109,901
990
3,250,000
7,925,720
1,570,086
6,110,303
6,222,797
2,886,778
6,715,624
13,517,497
8,070,234
1,075,426
20,219		 $ 237,225

8

60,060

100,168

25,027

100,046

75,026

45,017

100,297

150,038

110,027

11,000

6
( USD - thousand )		 1.27
0.50
-
-
-
-
-
-
-
-
-
-
2.22		 $ 237,225
8
60,060
100,168
25,027
100,046
75,026
45,017
100,297
150,038
110,027
11,000
6
( USD - thousand )		 Note 1
Note 3
Note 1
Note 2
Note 2
Note 2
Note 2
Note 2
Note 2
Note 2
Note 2
Note 2
Note 3
  • 125 -
Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,
2
0
2
0		 3
0
,
2
0
2
0
N
o
t
e

Number of
Shares		 Carrying
Amount		 Percentage
of
Ownershi
p
(%)
Fair Value
Teratech Corporation－ordinary shares
Sohoware Inc.－preference shares		 －
－		 Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current		 112,000
100,000
-

-		 0.73
-		 -
-		 Note 4
Note 4

Note 1: The fair value was based on the Taiwan Stock Exchange closing price on the last trading day of September 2020.

Note 2: The fair value was calculated based on the net asset value on the last trading day of September 2020.

Note 3: TTC utilized the assets approach and took into account the most recent net asset value, observable financial status as well as the financing activities of investees in order to determine their net asset value.

Note 4: As of September 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.

  • 126 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

MARKETABLE SECURITIES HELD

SEPTEMBER 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 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e
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
Unimicron Technology Corporation		 －
－
－
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
2,632
12,799,901
101,355,673
14,446,107
9,618,516
2,017,946
300,000		 $ 19
35
313,470
1,591,284
564,120
107,727
68,913
22,320		 1.20
1.67
11.90
8.53
1.89
0.10
0.39
0.02		 $ 19
35
313,470
1,591,284
564,120
107,727
68,913
22,320
  • 127 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(
%)
Fair Value
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
Jih Sun Money Market Fund
Prudential Financial Money Market
Fund
UPAMC James Bond Money
Market Fund
Taishin 1699 Money Market Fund
CTBC Hwa Win Money Market
Fund
FSITC Money Market Fund
FSITC Taiwan Money Market
Hua Nan Kirin 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		 1,753,251
223,000
1,515,800
3,281,000
7,924,414
16,818,904
3,137,157
8,913,027
4,768,857
11,804,262
278,235
8,462,697
9,541,083		 27,789
15,476
19,250
60,632
100,152
251,189
50,007
150,000
65,017
131,021
50,000
130,490
115,034		 0.04
0.14
1.21
-
-
-
-
-
-
-
-
-
-		 27,789
15,476
19,250
60,632
100,152
251,189
50,007
150,000
65,017
131,021
50,000
130,490
115,034
  • 128 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N
o
t
e
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(
%)
Fair Value
TCB Taiwan Money Market Fund － Financial assets at fair value
through profit or loss -
current		 9,579,648 98,002 - 98,002

(Continued)

  • 129 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e
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 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 -
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		 $ 11
53,990
-
8,159
-
-
-
-
703
9,263		 4.45
2.19
0.37
0.49
0.67
-
-
-
-
0.01		 $ 11
53,990
-
8,159
-
-
-
-
703
9,263		 Note 1
Note 1
Note 1
Note 1
Note 1
  • 130 -
Holding
Company Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account S
e
p
t
e		 m
b
e
r		 3
0
,		 2
0
2
0
N
o
t
e
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		 －

－
－
－
－		 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		 119,000
150,000
492,900
2,026,926
499,525		 8,259
11,160
6,260
30,904
6,257		 0.07
0.01
0.39
-
-		 8,259
11,160
6,260
30,904
66,257

Note 1: Due to the investment losses recognized 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.

  • 131 -

USI CORPORATION AND SUBSIDIARIES

(China General Terminal & Distribution Co.)

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2020

TABLE 3-4

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

H o l d i n g
Company Name

Type and Name of Marketable
S
e
c
u
r
i
t
i
e
s

Relationship with the
H o l d i n g C o m p a n y
Financial Statement Account		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0		 S
e
p
t
e
m
b
e
r
3
0
,
2
0
2
0
N
o
t
e

N u m b e r o f
S
h
a
r
e
s

C a r r y i n g
A
m
o
u
n
t

Percentage
o
f
Ownership
(
%
)


F a i r V a l u e
China General
Terminal &
Distribution Co.
 Shares
Asia Polymer Corporation
China General Plastics
Corporation
Taita Chemical Company, Ltd.
China Steel Corporation		 Equity-method investee
Equity-method investee
Equity-method investee
－		 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		 5,186,748
2,800,751
1,972,483
499,552		 $ 91,805
54,475
52,369
10,216		 0.89
0.51
0.57
-		 $ 91,805
54,475
52,369
10,216		 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: 257,000 shares were provided to Taiwan Water Corporation as a provisional attachment.

  • 132 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 4

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

Company Name Type and Name of
Marketable Securities		 Financial
Statement Account
Counterpart
y		 Relationship Beginning Balance
(Notes 1 and 2)		 Beginning Balance
(Notes 1 and 2)		 Acquisition Acquisition D
i		 s
p		 o
s		 a
l
Ending Balance
( N o t e s
1
a n d
2 )
Ending Balance
( N o t e s
1
a n d
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
CTBC Hwa-win
Money Market
Fund
Taishin 1699
Money Market
Fund
TCB Taiwan
Money Market
Fund
FSITC Money
Market Fund
Shares
Ever Conquest
Global Limited
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
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
Investment
accounted
for
using the equity
method
Investment
accounted
for
using the equity
method
Investment
accounted
for
using the equity
method
Investment
accounted
for
using the equity
method


－
－
－
－
－


－


－


－


－		 －
－
－
－
－
Subsidiary
Subsidiary
Subsidiary
Joint Venture		 4,566,633
7,870,520
18,384,950
-
275,921

246,670,000

390,830,000

488,286,000

Note 3		 $ 74,500

86,900

249,200

-

49,400

7,298,350

11,563,685

14,432,823

14,867,168
19,571,374

40,323,478

29,948,292

31,420,702

1,516,463

-

18,832,000

87,853,000

Note 3		 $ 320,000

447,000

408,000

321,000

272,000

-

570,606

2,661,928

3,811,781
22,000,211

38,283,552

29,770,944

28,194,958

1,792,384

-

-

-

-		 $ 359,682

424,400

405,542

288,127

321,858

-

-

-

-		 $ 359,500

423,900

404,200

288,000

321,400

-

-

-

-		 $ 182

500

1,342

127

458

-

-

-

-
2,137,796

9,910,446

18,562,298

3,225,743

-

246,670,000

409,662,000

576,139,000

Note 3		 $ 35,000,000

110,000,000

253,000,000

33,000,000

-

7,239,415

12,022,999

16,893,748

18,513,834

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 September 30, 2020 was calculated at the original investment cost. Note 3: Limited company, hence zero shares.

  • 133 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

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 NINE MONTHS ENDED SEPTEMBER 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		 Counterpart
y		 Relationshi
p		 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

Taiwan
VCM
Corporation

CGPC
Polymer
Corporation
Beneficiary certificates
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

－
－
－
－
－
－
－		 －
－
－
－
－
－
－		 6,722,102
-
-
-
-
12,751,358
8,813,848		 $ 100,000
-
-
-
-
189,601
119,700		 18,056,905
39,517,507
19,476,705
26,573,708
24,764,192
24,108,007
31,763,053		 $ 269,000
538,000
300,000
320,000
337,000
359,000
432,400		 24,779,007
39,517,507
10,718,107
14,130,635
22,414,287
36,859,365
24,363,861		 $ 369,113
538,119
165,096
170,095
305,272
548,937
331,300		 $ 369,000
538,000
165,000
170,000
305,000
548,601
331,200		 $ 113
119
96
95
272
336
100		 -
-
8,758,598
12,443,073
2,349,905
-
16,213,040		 $ -
-
135,000
150,000
32,000
-
220,900

Jih Sun Money Market
Fund
Taishin 1699 Money
Market Fund

Beneficiary certificates

FSITC Taiwan Money
Market Fund
Hua Nan Kirin Money
Market Fund
Taishin 1699 Money
Market Fund

Beneficiary certificates


Jih Sun Money Market
Fund
Taishin 1699 Money
Market Fund

Note: The beginning and ending balances were calculated at the original investment cost.

  • 134 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 4-2

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

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counter
party		 Relation
ship		 BeginningBalance BeginningBalance 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
－		 － - $ -
31,076,296		 $ 423,000
23,006,062		 $ 313,186 $ 313,000 $ 186
8,070,234		 $ 110,000

Note: The ending balance of beneficiary certificates was based on the original investment amount.

  • 135 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 4-3

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

Company
Name		 Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterpart
y		 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
Taishin 1699 Money
Market Fund		 Investment
accounted for
using the equity
method
Financial assets at
fair value through
profit or loss -
current
Financial assets at
fair value through
profit or loss -
current		 －

－

－		 Equity
method
investee
－
－		 144,160,000
957,942
18,356,835		 $ 4,265,335
171,000
248,000		 18,832,000
2,128,017
19,454,043		 $ 570,606
382,000
265,000		 -
2,807,723
33,042,021		 $ -

503,825

450,133		 $ -

503,000

448,000		 $ -

825

2,133		 162,992,000

278,235

4,768,857		 $ 4,783,584
（Note 1）

50,000

65,017
（Note 2）

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. Note 2: The ending balance of $65,017 thousand is the investment cost of $65,000 thousand plus the evaluation adjustment of $17 thousand.

  • 136 -

USI CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 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)		 N o t e
Purchase/
Sale		 Amount % of
Total		 Payment Terms Unit Price Payment Terms
Ending
Balance		 % of
Total
USI
Corporation
 Asia Polymer
Corporation		 Subsidiary Purchase $ 431,231
9.24		 Within 60 days
after purchasing
on credit

No significant
difference		 No significant
difference		 ( $ 86,802 ) (
14.49 )

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 137 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 5-1

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

B u y e r / S e l l e r R e l a t e d P a r t y R e l a t i o n s h i p T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 Abnormal Transaction (Note 1) Abnormal Transaction (Note 1) Notes/Accounts Receivable
(
P
a
y
a
b
l
e
)		 Notes/Accounts Receivable
(
P
a
y
a
b
l
e
)
N
o
t
e

P u r c h a s e /
S
a
l
e
A
m
o
u
n
t		 %
o
f
T
o
t
a
l

P a y m e n t
T
e
r
m
s
U n i t P r i c e		 P a y m e n t
T
e
r
m
s

F i n a n c i a l
S t a t e m e n t
A c c o u n t a n d
EndingBalance



%
o
f
T
o
t
a
l
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)		 $ 284,607
(
284,607 )		 52
42		 55 days
55 days		 －
－		 －
－		 Accounts payable
to related parties
( $ 117,661 )
Accounts
receivable from
related parties
117,661		 74
49		 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.

  • 138 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 5-2

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

B u y e r / S e l l e r R e l a t e d P a r t y Relationship T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) N
o
t
e

Purchase/
S
a
l
e
A
m
o
u
n
t		 %
o
f
T
o
t
a
l
Payment Terms		 Unit Price P a y m e n t
T
e
r
m
s

Financial Statement Account and
E n d i n g
B a l a n c e

%
o
f
T o t a l
Swanson Plastics
(Singapore) Pte.
Ltd.
Forever Young
Company Limited
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.
ASK-Swason
(Kunshan) Co., Ltd.		 Swanson Plastics
(Malaysia) Sdn. Bhd.
Swanson Plastics
(Kunshan) Co., Ltd.
Swanson Plastics
(Malaysia) Sdn. Bhd.
Swanson Plastics
(Malaysia) Sdn. Bhd.
Forever Young
Company Limited
Forever Young
Company Limited
Forever Young
Company Limited
Swanson Plastics
(Singapore) Pte. Ltd.
ASK-Swason
(Kunshan) Co., Ltd.
Swanson Plastics
(Kunshan) Co., 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
Have the same
ultimate parent
company
Have the same
ultimate parent
company
Parent
company
Have the same
ultimate parent
company
Have the same
ultimate parent
company		 Purchase
Sale
Purchase
Sale
Purchase
Sale
Purchase
Sale
Sale
Purchase		 $ 160,586
(
224,809 )
105,118
(
264,542 )
224,809
(
105,118 )
264,542
(
160,586 )
(
117,651 )
117,651		 81
(
31 )
15
(
37 )
33
(
14 )
44
(
22 )
(
14 )
64		 90 days
90 days
90 days
90 days
90 days
90 days
90 days
90 days
60 days
60 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
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
( $ 26,436 )

Accounts receivable from related
parties
54,935

Accounts
payable
to
related
parties
(
12,099 )

Accounts receivable from related
parties
23,604

Accounts
payable
to
related
parties
(
54,935 )

Accounts receivable from related
parties
12,099

Accounts
payable
to
related
parties
(
23,604 )

Accounts receivable from related
parties
26,436

Accounts receivable from related
parties
34,610

Accounts
payable
to
related
parties
(
34,610 )
(
92 )

27

(
9 )

12

(
50 )

8

(
62 )

18

13

(
69 )



Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 139 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 5-3

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

B u y e r / S e l l e r R e l a t e d P a r t y Relationship T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) N
o
t
e

Purchase/
S
a
l
e
A m o u n t		 %
o
f
T o t a l

P a y m e n t
T
e
r
m
s
Unit Price		 P a y m e n t
T e r m s

Financial Statement Account
a n d E n d i ng B a l a n c e

%
o
f
T o t a l
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		 $ 2,779,416
(
281,369 )
(
2,779,416 )
(
2,500,204 )

2,500,204

281,369
72
(
5 )
(
51 )
(
46 )

96

86		 45 days
90 days
45 days
75 days
75 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
( $ 695,203 )
Accounts
receivable
from
related parties
91,395
Accounts
receivable
from
related parties
695,203
Accounts
receivable
from
related parties
664,112
Accounts payable to related
parties
(
664,112 )
Accounts payable to related
parties
(
91,395 )
(
77 )

10

51

49

(
96 )

(
92 )		 Note
Note
Note
Note
Note
Note

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 140 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 5-4

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

B u y e r / S e l l e r R e l a t e d P a r t y R e l a t i o n s h i p T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) N o t e

Purchase/
S
a
l
e
A
m
o
u
n
t		 %
o
f
T
o
t
a
l

P a y m e n t
T
e
r
m
s
Unit Price		 P a y m e n t
T e r m s

Financial Statement Account
a n d E n d i ngB a l a n c e

%
o
f
T
o
t
a
l
Taita
Chemical
Company, Ltd.
Taita
Chemical
(Zhongshan)
Co., Ltd.
Sub-subsidiary		 Sale ( $ 504,943 )
( USD
17,000
thousand
)		 (
6.71 )		 30 days No
significant
difference		 No
significant
difference		 Accounts
receivable
from
related parties
$ 544
( USD
19
thousand )
0.05		 Note

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 141 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 5-5

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

B u y e r / S e l l e r R e l a t e d P a r t y R e l at i o ns h i p Transaction Details Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) N
o
t
e

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		 SALES
SALES
PURCHASES
PURCHASES		 ( $ 431,231 )
(
307 )

66,065

83,421		 (
10.82 )
(
0.01 )
2.86
3.61		 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
$ 89,096
Accounts receivable from related
parties
-
Accounts payable to related parties
-
Accounts payable to related parties(
31,879
)
18.90

-
-
11.90


Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 142 -

USI CORPORATION AND SUBSIDIARIES

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

SEPTEMBER 30, 2020

TABLE 6

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

Company Name Related Party Relationship Ending Balance (Note 3) Turno ver
R a t e ( % )		 O
v
e
 r
d
u
e		 A m o u n t s
R e c e i v e d i n
S u b s e q u e n t
Period(Note 2)


Allowance for
I m p a i r m e n t
L
o
s
s


Amount		 Actions Taken
USI Corporation Taiwan VCM
Corporation
Asia
Polymer
Corporation		 Subsidiary of the
Company

Subsidiary of the
Company
Other
receivables
-
related
parties
$ 30,882
Other receivables - related
parties
32,820
-
-		 $ -
-		 －
－		 $ 30,882
32,820		 Note 1
Note 1

Note 1: It is assessed that no allowance for impairment loss is needed.

Note 2: The subsequent period refers to the period from October 1, 2020 to October 27, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 143 -

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

SEPTEMBER 30, 2020

TABLE 6-1

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

Company Name Related Party Relationship E n d i n g B a l a n c e ( N o t e 2 ) Turnover
R at e ( % )		 O
v
e
 r
d
u
e
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
$ 205,262
Receivables - related
parties
117,661		 -
3.26		 $ -
-		 －
－		 $ 61,719
-		 Note 1
Note 1

Note 1: It is assessed that no allowance for impairment loss is needed.

Note 2: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 144 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SWANSON))

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2020

TABLE 6-2

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

Company Name Related Party Relationship Ending Balance (Note 3) T u r n o v e r
R a t e ( % )		 O
v
e
r
d
u
e		 O
v
e
r
d
u
e
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 receivables - related parties $ 189,280
(RMB
44,296
thousand
)		 - $ - － $ - Note 1

Note 1: It is assessed that no allowance for impairment loss is needed.

Note 2: The subsequent period refers to the period from October 1, 2020 to November 3, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 145 -

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

SEPTEMBER 30, 2020

TABLE 6-3

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

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 O
v
e
 r
d
u
e
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
$ 695,203
Accounts receivable from related parties
$ 664,112		 4.75
4.73		 $ -
-		 －
－		 $ 370,162
-		 Note 1
Note 1

Note 1: It is assessed that no allowance for impairment loss is needed.

Note 2: The subsequent period refers to the period from October 1, 2020 to October 26, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 146 -

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 SEPTEMBER 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 (%)		 O
v
e
r
d
u
e		 O
v
e
r
d
u
e
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 $ 271,126
( USD
9,317
thousand
)
（Note 1）		 - $ 271,126 Continuous
collection		 $ - $ -

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 November 3, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 147 -

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

SEPTEMBER 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 (%)		 O
v
e
r
d
u
e		 O
v
e
r
d
u
e
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
$ 89,096
Other receivables - related parties
33,643
4.87

 $ -
-		 －
－		 $ 40,929
299		 Note 1
Note 1

Note 1: It is assessed that no allowance for impairment loss is needed.

Note 2: The subsequent period refers to the period from October 1, 2020 to November 3, 2020.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 148 -

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

TABLE 7

USI CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As of September 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 N
o
t
e

September 30, 2020		 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
USI Corporation USIFE Investment Co.,
Ltd.
Swanlake Traders Ltd.
USI (Hong Kong)
Company Limited
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
USI
Optronics
Corporation		 12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
Flemming House, 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

12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
(ROC)
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

Manufacturing and marketing
of sapphire crystal		 $ 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

330,000		 $ 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

330,000
87,250,800

30,000,000

159,999

616,268,754

32,900,000

4,358,183

62,616,299

49,250,733

9,243,369

671,400

5,000,000

-

246,670,000

33,000,000		 100.00
100.00
100.00
100.00

70.00

99.93

40.58

26.91

94.37
100.00
100.00

-

60.21

50.85		 $ 770,989
1,313,114
121,708
6,848,619
179,925
47,656
1,007,598
327,740
20,259
(
485 )
125,209
-
7,239,415
80,484		 $ 53,927

14,336
(
3,062 )

744,794
(
2,594 )

3,065

180,320

36,961
(
7,842 )

91

892

15
(
83,826 )
(
40,719 )		 $ 53,927

14,336
(
3,062 )

725,092
(
1,816 )

3,108

73,170

9,948
(
7,335 )

91

892

4
(
51,672 )
(
20,704 )		 Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
  • 149 -
Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As of September 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 N
o
t
e

September 30, 2020		 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Ever Conquest
Global Limited
Ever Victory Global
Limited		 Ever Victory Global
Limited
Dynamic Ever
Investments Limited		 P.O. Box 957, Offshore
Incorporations Centre, Road
Town, Tortola, British Virgin
Islands
Room 1902, 19/F, Lee Gargen
One, 33 Hysan Aveme,
CausewayBay,HongKong		 Investment
Investment		 11,921,164
( USD
409,662
thousand
)
16,765,645
( USD
576,139
thousand
)		 11,373,153
( USD
390,830
thousand
)
14,209,123
( USD
488,286
thousand)		 409,662,000
576,139,000
71.04

85.32		 12,022,999
( USD
413,161
thousand
)
16,893,748
( USD
580,541
thousand
)		 (
111,481 )
( USD
-3,736
thousand)
(
126,328 )
( USD
-4,235
thousand
)		 Subsidiary
Sub-subsidi
ary

(Continued)

  • 150 -
Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As of September 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note

September 30, 2020		 December 31, 2019 Number of
Shares		 Percentage
(％)		 Carrying Amount
Union Polymer Int'l
Investment Corp.
USIFE Investment
Co., Ltd.
Taiwan United
Venture Capital
Corp.
Chong Loong
Trading Co., Ltd.
Swanlake Traders
Ltd.		 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)
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
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		 $ 1,749,212
1,965,437
1,320,045

155,632
30,000
8,000

21,465
6,402
( USD 220 thousand )
102,956
( USD3,538 thousand
)		 $ 1,749,212

1,965,437

1,320,045

155,632

30,000

8,000

21,465
6,402
( USD 220 thousand )
102,956
( USD
3,538
thousand)
126,239,833

188,297,389

133,914,219

16,424,242

3,000,000

800,000

-
220,000
5,609,231
36.67

32.35

24.20

8.98

15.00
100.00

-
100.00

11.23		 $ 2,186,462
3,980,086
2,224,817
123,883
(
15,610 )
15,884
-
6,630
130,854
( USD4,497 thousand
)		 $ 1,129,008

559,628

613,469

36,961
(
10,410 )

975

15
(
20 )
( USD -1 thousand )
(
2,871 )
( USD -94 thousand )





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 equity 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.

  • 151 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 7-1

(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
M
a
i
n
Businesses and
P r o d u c t s
Original Investment Amount(Note 2)
Original Investment Amount(Note 2)		 A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 Net Income (Loss)
of t he Inv est ee
Share of Profits
(
L
o
s
s
)		 N o t e



September 30, 2020		 December 31, 2019 N u m b e r o f
S h a r e s

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
( USD730 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		 $ 596,564
852,060
-
53,812
USD
20,615
thousand
MYR
87,888
thousand		 ( $ 2,871 )
( USD-93 thousand
)

46,960
(
153 )
(USD -5 thousand )
(
40,719 )
USD366 thousand
( MYR
1,595
thousand
)
MYR
1,657
thousand		 ( $ 2,000 )
( USD-66 thousand )

46,960
(
153 )
(USD -5 thousand )
(
13,843 )
USD366 thousand
( MYR
1,595
thousand
)
MYR
1,657
thousand		 Note 1
Note 1
Notes 1
and 3
Note 1
Note 1

Note 1: All the transactions were fully eliminated 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.

  • 152 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation)

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 7-2

(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 nd Pr o ducts		 O r igi n a l I n v e s t m e n t A m o u n t O r igi n a l I n v e s t m e n t A m o u n t A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 Net Income (Loss)
o f t h e I n v e s t e e
S ha r e o f Pr o fi ts
(
L
o
s
s
)		 N o t e


September 30, 2020
( N o
t e
2 )
December 31, 2019
( N o
t e
2 )
N u m b e r o f
S
h
a
r
e
s

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
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
191,868
(USD6,593 thousand)
480,466
( USD
16,511
thousand
)
751,945
( USD
25,840
thousand
)
206,438
(USD7,094 thousand)		 $ 808,506

1,297

454,134

4,850

140,000

7,979
191,868
(USD6,593 thousand)
480,466
( USD
16,511
thousand
)
751,945
( USD
25,840
thousand
)
206,438
(USD7,094 thousand)
36,863

50

14,541

1,600

14,000

261
20,000
107,351
25,840

3,157
100

100

100

100

70

1

100

100

99

100		 $ 1,831,272
72,807
1,554,624
6,341
(
72,847 )
6,962
621,872
( USD
21,370
thousand
)
298,599
( USD
10,261
thousand
)
689,192
( USD
23,684
thousand)
535,818
( USD
18,413
thousand
)		 $ 96,616

5,678

104,660

-
(
10,410 )

35,442
83,665
( MYR
12,433
thousand
)
(
7,249 )
( INR
-18,240
thousand
)
35,442
( IDR
17,124,453
thousand
)
18,842
( USD 627 thousand )		 $ 96,616

5,678

104,660

-
(
7,287 )

354		 Note 3

Note 3
Notes 1
and 3

Note 1: There are zero shares of the limited company.

  • 153 -

Note 2: The original investment amount and carrying amount were calculated using the spot exchange rate as of September 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.

  • 154 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 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 S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 Net Income (Loss)
of the Investee
Share of Profits
(
L
o
s
s
)		 N
o
t
e


Sept ember 30,
2
0
2
0
December 31, 2019		 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
-		 $ 2,930,995
800,000
1,073,906
41,106
648,931
33,995
15,000		 240,206,420
80,000,000
16,308,258
19,918,185
100
3,176,019
-
87.22

100

100

33.33

100

1.74

-		 $ 3,388,919
973,353
345,520
290,058
202,272
22,124
-		 $ 460,218
79,127
2,809
54,134
13,567
36,961
15		 $ 398,451
79,127
2,809
18,045
13,567
642
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 dollar 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.

  • 155 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.)

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 7-4

(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 and
P
r
o
d
u
c
t
s		 O r igi n a l I n v e s t m e n t A m o u n t O r igi n a l I n v e s t m e n t A m o u n t A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 A s o f S e p t e m b e r 3 0 , 2 0 2 0 N e t I n c o m e ( L o s s )
o f t h e I n v e s t e e
S h a r e o f P r o f i t s
(
L
o
s
s
)		 N
o
t
e


September 30, 2020		 December 31, 2019 N u m b e r o f
S h a r e s

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		 $ 1,796,576
( USD
61,738
thousand
)
65,365
41,082
44,771
-
49,471
( USD1,700 thousand
)		 $ 1,796,576
( USD
61,738
thousand
)
65,365
41,082
44,771
15,000
49,471
( USD1,700 thousand
)		 61,738,000
10,967,785
19,918,183
4,445,019
-
2,695,619		 100.00
1.98
33.33
2.43
-
5.39		 $ 1,878,587
( USD
64,556
thousand
)
171,595
290,058
30,964
-
62,885
( USD2,161 thousand
)		 $ 412,983
( USD 13,943 thousand )
613,469
54,134
36,961
15
(
2,871 )
( USD
-93 thousand )		 $ 412,983
( USD 13,943 thousand )
12,159
18,045
898
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 4)
Investments
accounted for
using the equity
method (Note 1)

Note 1: The amount was based on audited financial statements of the investee.

Note 2: The amount was based on non-audited financial statements of the investee.

Note 3: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

Note 4: Thintec Materials Corporation (TMC) went into dissolution and liquidation from May 25, 2019. The Group obtained $1,247 thousand of the remaining property distribution from liquidation in May 2020, and recognized a loss on disposal of $173 thousand while TMC completed the dissolution and liquidation procedures on July 22, 2020.

Note 5: Investments in mainland China are included in Table 8-4.

  • 156 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 7-5

(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 and
P
r
o
d
u
c
t
s		 Original Investment Amount Original Investment Amount As of September 30,2020 As of September 30,2020 As of September 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 N
o
t
e

September 30, 2020		 December 31, 2019 Number of
Shares		 Percentag
e(％)		 Carrying Amount
Asia Polymer
Corporation
APC (BVI)
Holding Co.,
Ltd.		 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
Ever Conquest Global Ltd.
ACME Electronics
(Cayman) Corp.
USI International Corp.		 British Virgin
Islands
Taipei
British Virgin
Islands
Taipei
Taipei
Taipei
Taipei
Taipei
Taipei
Taipei
British Virgin
Islands
British
Cayman
Islands
British Virgin
Islands		 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
Reinvestment
Reinvestment
Reinvestment		 $ 400,847
( USD13,775 thousand
)
200,000
81,480
( USD2,800 thousand )
247,412
41,082
75,242
61,348
52,791
36,250
59,725
4,743,067
( USD
162,992
thousand
)
152,627
( USD5,245 thousand )
34,920
( USD1,200 thousand )		 $ 400,847
( USD13,775 thousand
)

200,000

81,480
( USD2,800 thousand )

247,412

41,082

75,242

61,348

52,791

36,250

59,725

4,195,056
( USD
144,160
thousand
)

152,627
( USD5,245 thousand )

34,920
( USD1,200 thousand )
11,342,594

20,000,000

2,800,000


44,653,510

19,918,184

12,266,779

6,056,623

3,913,533

-

5,972,464

162,992,000

8,316,450


1,200,000
 100.00
100.00
70.00
8.07
33.33
7.95
3.31
8.33
-
9.20
39.79
16.64
30.00		 $ 496,301

111,777

84,866

698,622

290,058

198,368

42,190

21,403
-

14,566

4,783,584

194,009

36,371		 $ 11,612

13,098

4,966

613,469

54,134

180,320

36,961
(
2,594 )

15
(
40,719 )
(
83,826 )
(
2,871 )

4,966		 $ 11,612

13,098

3,476

49,502

18,045

14,334

1,223
(
216 )

4
(
3,747 )
(
32,154 )

-

-		 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
Investments accounted
for using the equity
method
Investments accounted
for using the equity
method
Investments accounted
for using the equity
method (Note 1)
  • 157 -
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 and
P
r
o
d
u
c
t
s		 Original Investment Amount Original Investment Amount As of September 30,2020 As of September 30,2020 As of September 30,2020 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 N
o
t
e

September 30, 2020		 December 31, 2019 Number of
Shares		 Percentag
e(％)		 Carrying Amount
APC Investment
Corporation
Ever Conquest
Global Ltd.
Ever Victory
Global Ltd.
Acme Electronics
Corporation
Swanson Technologies
Corporation
Ever Victory Global Ltd.
Dynamic Ever Investments
Ltd.		 Taipei
Taipei
British Virgin
Islands
Hong Kong		 Manufacture and
marketing of
manganese zinc,
manganese-zinc ferrite,
magnetic powder and
ferrite core
Manufacture and
marketing of EVA film
Reinvestment
Reinvestment		 14,889
30,000
11,921,164
( USD
409,662
thousand
)
16,765,645
( USD
576,139
thousand
)
14,889

30,000

11,373,153
( USD
390,830
thousand
)

14,209,123
( USD
488,286
thousand
)
1,884,548

3,000,000

409,662,000

576,139,000		 1.03
15.00
71.04

85.32
13,128
(
15,610 )

12,022,999
( USD
413,161
thousand
)

16,893,748
( USD
580,541
thousand
)
36,961
(
10,410 )
(
111,481 )
( USD3,736 thousand )
(
126,328 )
( USD4,235 thousand )
-

-

-

-
 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.

  • 158 -

USI CO RPO RATION AND SUBSIDIARIES

INFORMATION O N INVESTMENTS IN MAINLAND CHINA

FO R THE NINE MONTHS ENDED SEPTEMBER 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 8)		 Paid-in Capital
(Note 8)		 Method
of
Investme
nt		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020
(Note 8)		 I n v e s t m e n t F l o w s ( N o t e 8 ) Accumulated
Outward Remittance
for Investment from
Taiwan as of
September 30, 2020
(Note 8)		 Net Income (Loss) of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)		 Carrying Amount
as of
September 30, 2020		 Accumulated
Repatriation of
Investment Income
as of September 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		 $ 894,098
( USD30,725 thousand)
145,500
( USD 5,000 thousand )
37,237,503
( RMB
8,714,400
thousand
)
Note 1
Note 2
Note 3		 $ 81,990
( USD 2,818 thousand )
145,500
( USD 5,000 thousand )
6,624,773
( USD
227,655
thousand
)		 $ -
-
79,091
( USD 2,718 thousand )
-

-
-		 $ 81,990
( USD 2,818 thousand )

145,500
( USD 5,000 thousand )

6,703,864
( USD
230,373
thousand
)		 $ 2,051
( USD
69 thousand )
892
( USD
30 thousand )
(
229,183 )
( USD-7,691 thousand )		 11.23
100.00
18.25		 $ 230
( USD
8 thousand )
892
( USD
30 thousand )
(
45,671 )
( USD-1,531 thousand )		 $ 85,680
( USD 2,830 thousand )
125,210
( USD 4,136 thousand )
6,757,307
( USD
232,210
thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
September 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$7,104,717
(USD244,148 thousand)		 $7,955,460
(USD273,384 thousand)		 $ -（Note 2）

Note 1: The Compa ny reinvested 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 Investments Limited (85.32%).

  • Note 4: As the Company has obta ined the certifica te of being q ualif ied for opera ting headq uarters issued 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 Industrial 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 G ulei, All the tra nsactions 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 September 30, 2020.

  • Note 8: Except for ACME Elec tronics (Kunsha n) Co. , Ltd., whose numbers were based on its financ ial statements reviewed by the Certified Public Accountants of its RO C parent compa ny, all the other companies’ were based o n non-reviewed fina ncial sta tements.

  • 159 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation (ACME))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 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)		 I
n
v
e
s
t
m
e		 n
t
F
l
o
w
s		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
September 30, 2020
(
N
o
t
e
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
September 30, 2020
(Notes 7 and 8)		 Accumulated
Repatriation of
Investment Income
as of September 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
)		 $ 2,051
( RMB 523 thousand )
47,590
( RMB
11,233
thousand
)		 51.27
100.00		 $ 1,052
( RMB 268 thousand )
47,590
( RMB
11,233
thousand
)		 $ 391,364
( RMB
91,588
thousand
)
846,211
( RMB
198,032
thousand)		 $ -
-
Accumulated Outward Remittance for
Investment in Mainland China as of
September 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$883,010（USD 30,344 thousand）
（Notes 3 and 7）		 $1,066,020（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 Company has obtained the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA 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 thousand at its ownership percentage.

Note 4: ACME recognized the investment gain (loss), according to Certified 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 September 30, 2020.

Note 7: The amount was calculated using the spot exchange rate on September 30, 2020.

Note 8: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 160 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation)

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 8-2

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

I n v e s t e e
C o m p a n y

Main Businesses and
P
r
o
d
u
c
t
s

Paid-in Capital
( N o t e
1 )

Paid-in Capital
( N o t e
1 )
M e t h o d o f I n v e s t m e n t
M e t h o d o f I n v e s t m e n t
A c c u m u l a t e d
O u t w a r d
R e m i t t a n c e
for Investment
f
r
o
m
T a i w a n a s o f
January 1, 2020		 I n v e s t m e n t
F l o w s		 A c c u m u l a t e d
O u t w a r d
R e m i t t a n c e
for Investment
f
r
o
m
T a i w a n a s o f
September 30,
2
0
2
0







Net Income (Loss)
o
f
t h e I n v e s t e e


Ownership
o
f
Direct or
I n d i r e c t
Investment
(
%
)





Investment Gain
(
L
o
s
s
)
( N o t e
3 )


Carrying Amount
a
s
o
f
September 30,
2 0 20 (No te 3)



A c c u m u l a t e d
Repatriation of
I n v e s t m e n t
I
n
c
o
m
e
as of September
3 0 ,
2 0 2 0






O u t f l o w		 I
n
f
l
o
w
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.		 $ 386,739
( USD
13,290
thousand
)
264,810
( USD
9,100
thousand
)
311,370
( 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		 $ 85,818
( USD
2,879
thousand
)
18,842
( USD
627
thousand
)
(
29,494 )
( USD
-989
thousand
)		 100.00
100.00
100.00		 $ 85,818
( USD
2,879
thousand
)
18,842
( USD
627
thousand
)
(
29,494 )
( USD
-989
thousand
)		 $ 1,109,134
( USD
38,115
thousand
)
535,818
( USD
18,413
thousand
)
104,004
( USD
3,574
thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
S e p t e m b e r
3 0 ,
2 0 2 0


Investment Amounts Authorized by
I n ve s tm e n t C omm i s s i o n, M O EA

Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
M
O
E
A
$ 588,131 $ 954,065
(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 calculated using the spot exchange rate on September 30, 2020.

Note 2: According to the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10920418410, the upper limit on investment in mainland China pursuant to the “Principle of Investment or Technical Cooperation in 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.

  • 161 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 8-3

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

Investee Company Main Businesses and
P
r
o
d
u
c
t
s

Paid-in Capital
( N o t e
1 )

Paid-in Capital
( N o t e
1 )
Method of Investment
A c c u m u l a t e d
O u t w a r d
R e m i t t a n c e
for Investment
f
r
o
m
T a i w a n a s o f
January 1, 2020
( N o t e
1 )
A c c u m u l a t e d
O u t w a r d
R e m i t t a n c e
for Investment
f
r
o
m
T a i w a n a s o f
January 1, 2020
( N o t e
1 )
I n v e s t m e		 n t
F l o w s		 A c c u m u l a t e d
O u t w a r d
R e m i t t a n c e
for Investment
f
r
o
m
T a i w a n a s o f
September 30, 2020
( N o t e
1 )






Net Income (Loss)
o
f
t h e I n v e s t e e


Ownership
o
f
Direct or
I n d i r e c t
Investment
(
%
)





Investment Gain
(
L
o
s
s
)
( N o t e
5 )


Carrying Amount
a
s
o
f
September 30, 2020
(Notes 1 and 5)



A c c u m u l a t e d
Repatriation of
Investment Income
as of September
3 0 ,
2 0 2 0






O u t f l o w		 I
n
f
l
o
w
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		 $ 582,000
( USD
20,000
thousand
)
43,650
( USD
1,500
thousand
)		 Indirect investment via
CGPC (BVI) Holding
Co., Ltd.
Indirect investment via
CGPC (BVI) Holding
Co., Ltd.		 $ 582,000
( USD
20,000
thousand
)
43,650
( USD
1,500
thousand
)		 $ -
-		 $ -

-		 $ 582,000
( USD
20,000
thousand
)

43,650
( USD
1,500
thousand
)		 $ 2,115
( USD71 thousand)
(
8 )
( USD - thousand )
100.00
100.00		 $ 2,115
( USD71 thousand)
(
8 )
( USD - thousand )
$ 258,639
( USD
8,888
thousand
)
13,224
( USD
454
thousand
)		 $ -
-
Accumulated Outward Remittance for
Investment in Mainland China as of
September 30,2020(Notes 1 and 3)

I n ve s tm e n t Amo un ts A u tho r iz e d b y
Investment Commission, MOEA (Note 1)

Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
M
O
E
A
(
N
o
t
e
2
)
$ 788,086（USD 27,082 thousand） $913,740（USD 31,400 thousand） $ -

  • Note 1: The amount was calculated using the spot exchange rate as of September 30, 2020.

  • Note 2: As the CGPC obtained the certificate of qualification of operating headquarters issued by the Industrial Development Bureau No. 10920426850 on September 8, 2020, the upper limit on investment in mainland 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 Plastics (SanHe) Co., Ltd. were fully sold, and CGPC (BVI) retrieved the residual assets. However, the amount of capital has not been wired back to Taiwan. The accumulated amount includes the investment amount of CGPC (QZ) of $19,904 thousand (US$684 thousand), the investment amount of Union (ZS) of $26,132 thousand (US$898 thousand) and the investment amount of Continental General Plastics (SanHe) Co., Ltd. of $116,400 thousand (US$4,000 thousand).

  • Note 4: The board of directors of CGPC passed a resolution to dissolve CGPC (ZS) and CGPC (CP) in October 24, 2011. As of September 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.

  • 162 -

USI COR PORA TIO N A ND SU BSIDIA RIES

(Taita Che mical Co mpany, Ltd. ( TTC))

INFO RMATIO N ON INV ESTMENTS IN MAINLA ND CHINA

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

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		 I
n
v
e
s
t
m
e		 n
t
F
l
o
w
s
Accumulated
Outward Remittance
for Investment from
Taiwan as of
September 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
September 30, 2020
(Note 5)		 Accumulated
Repatriation of
Investment Income
as of September 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		 $ 1,345,875
( USD
46,250
thousand)
（Note 1）
795,885
( USD27,350 thousand
)
（Note 2）
894,098
( 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		 $ 1,251,300
( USD43,000 thousand
)
756,600
( USD26,000 thousand
)
39,402
( USD 1,354 thousand )		 $ -
-
-		 $ -
-
-		 $ 1,251,300
( USD43,000 thousand
)
756,600
( USD26,000 thousand
)
39,402
( USD 1,354 thousand )		 $ 458,146
( USD15,446 thousand
)
(
31,456 )
( USD-1,045 thousand)
2,051
( USD
69 thousand )		 100.00
100.00
5.39		 $ 458,146
( USD15,446 thousand
)
（Note 6）
(
31,456 )
( USD-1,045 thousand)
（Note 6）
111
( USD
4 thousand )		 $ 2,735,628
( USD94,008 thousand
)
（Note 6）

(
152,069 )
( USD 5,226 thousand )
（Note 6）
41,177
( USD 1,415 thousand )		 $ -

-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
September 30,2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 2,047,302
(USD 70,354 thousand)		 $ 2,206,284
(USD 75,817 thousand)（Note 3）		 $ -（Note 4）

Note 1: TA ITA ( ZS) r esolve d t o is sue shar e 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 fr om s hare divide nds include d U S$3,250 t hou sand f ro m TAITA (Z S), U S$1,3 50 thou sand f ro m TAITA (TJ) a nd US$802 t hou sand f r om ACME ( KS).

Note 4 : As t he TTC obtained t he certi ficate of qualifica tion o f ope rating hea dquarte rs iss ued by the Indu stria l Developme nt Bureau No. 10820415160 on Ju ne 6, 2019, the uppe r limit o n inve stme nt i n Mai nland China p ur suant 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 o f TTC in Taiwan.

Note 6: All t he t ransactio ns were full y eli minate d u po n p reparatio n of t he consolidate d financial statements .

  • 163 -

USI COR PORA TIO N A ND REINV ESTMENT CO MPA NIES

(Asia Pol ymer Corp oratio n (A P C))

INFO RMATIO N ON INV ESTMENTS IN MAINLA ND CHINA

FOR THE NINE MO NTHS ENDED SEP TEMBER 30, 202 0

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 4) Paid-in Capital (Note 4) Method of
Investment (Note
1)		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2020		 I
n
v
e
s
t
m
e
n
t
F
l
o
w
s		 I
n
v
e
s
t
m
e
n
t
F
l
o
w
s
Accumulated
Outward Remittance
for Investment from
Taiwan as of
September 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
September 30, 2020
(Note 4)		 Accumulated
Repatriation of
Investment Income
as of September 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		 $ 894,098
( USD 30,725 thousand )
72,750
( USD 2,500 thousand )
37,237,503
( RMB
8,714,400
thousand
)		 (2)
ACME Electronics
(Cayman) Corp.
(2)
APC
(BVI)
Holding
Co.,
Ltd.
(2)
Dynamic Ever
Investment Ltd.
（Note 2）		 $ 121,561


( USD 4,177 thousand )
88,336


( USD 3,036 thousand )
3,872,438
( USD
133,073
thousand
)		 $ -

-

545,205
( USD18,736 thousand
)		 $ -
-
-
 $ 121,561
( USD 4,177 thousand )
88,336
( USD 3,036 thousand )
4,417,643
( USD
151,809
thousand
)		 B $ 2,051

C
10,201

C (
229,183 )		 16.64
100.00
12.06		 $ 341
10,201
(
28,683 )		 $ 127,032
116,480

4,465,573		 $ -
-
-
A c c u m u l a t e d O u t w a r d R e m i t t a n c e f o r
Investment in Mainland China as of September 30,
2
0
2
0


I n v e s t m e n t
I n v e s t m e n t		 A m o u n t s A u t
C o m m i s s i		 h o r i z e d b y
o n , M O E A

Upper Limit on the Amount of Investment
S t i p u l a t e d b y I n v e s t m e n t C o m m i s s i o n ,
M
O
E
A
$4,767,806（Note 5） $6,112,036 $ -（Note 6）
（USD163,842 thousand） （USD210,036 thousand）

Note 1: Invest ment s ar e divided int o t hree cate gorie s as follow s:

  • a. Direct invest me nt.

  • b. Invest ment s t hro ugh a holdi ng co mpany re gistere d in a t hir d r egio n.

  • c. Ot her s.

Note 2: The Compa ny rei nvest ed in 50% of the o utsta nding s hare s o f Gulei via Eve r Co nquest Gl obal Limit e d (37.97% ), the n via Ever Victo ry Global Lt d. (71.04%) , and finally via D yna mic Ever Inv estment s Ltd. (85 .32%). Note 3: For the colu mn o f inv est ment gai n (l oss ):

  • a. If t here is no inve stme nt gain (lo ss) during the pre paration, it should be note d.

  • b. If the basis for the r eco gnitio n of i nvest me nt gain ( loss) is classi fied into t he f ollowing thr ee t ype s, it s hould be noted as follows :

  • 1) Fi nancial state me nts audite d by inter national acco u nting fi rms w hich have a co operatio n relationship wit h an accou nting fir m i n t he Repu blic o f China.

  • 2) Fi nancial state me nts audite d by t he pa rent co mpany’s CPA .

  • 3) Ot hers .

Note 4: The a mo unt was calculated u sing t he excha nge rate a s at Sept ember 30, 2020.

Note 5: AP C i ndi rectly inve sted su bsi diaries i n Mainl and China thr ou gh AP C (BVI) Holdi ng Co ., Lt d. inve s ting in Silico n Technol ogy Inv est ment ( Cayman) Co rp. (STIC) and Solar gi ga Ene rgy Holdi ngs Ltd.

Note 6: As AP C has o btaine d t he c ertificate of qualif ication f or ope rating headquart ers issu ed by the Industrial Develo pme nt Bu reau, MO EA No . 10800262940 on Fe br uary 26, 2020, t he upper limit o n i nvest ment s in mainla nd China pursua nt t o t he “ Principle of Invest me nt or Tec hnical Co operatio n i n Mainland China” i s not applicable.

Note 7: Except for the i nvest ment in Fujian Gulei Petr oche mical Co., Ltd., all t he t ransactio ns were full y eli minate d up on pr eparatio n o f t he c onsolidate d financi al stateme nts .

  • 164 -

USI CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 9

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

No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s		 T
r
a
n
s
a
c
t
i
o
n
D
e
t
a
i
l
s
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
0
1		 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
USI Corporation
Asia Polymer Corporation		 Swanson Plastics Corporation
Forever Young Company Limited
USI Trading (Shanghai) Co., Ltd.
USI (Hong Kong) Company Limited
Asia Polymer Corporation
Asia Polymer Corporation
Swanson Plastics Corporation
Asia Polymer Corporation
USI (Hong Kong) Company Limited
USI Trading (Shanghai) Co., Ltd.
Asia Polymer Corporation
Taiwan VCM Corporation
Asia Polymer Corporation
Dynamic Ever Investments Limited
USI Management Consulting
Corporation
China General Terminal & Distribution
Corporation
Taiwan VCM Corporation
China General Terminal & Distribution		 a
a
a
a
a
a
a
a
a
a
a
a
a
a
a

a
a

c		 Sales revenue
Sales revenue
Sales revenue
Sales revenue
Sales revenue
Purchase
Purchase
Raw materials sales revenue
Accounts receivable
Accounts receivable
Other receivables
Other receivables
Company related payables
Management services
revenue
Management services
expense
Direct material costs
variance
Other payable
Storage tank operating		 $ 41,982
64,653
82,902
74,838
25,559
431,231
40,410

40,505
14,797
31,879
32,720
30,024
86,802
14,837
89,341
34,968
33,334
27,828		 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		 0.12
0.19
0.24
0.22
0.07
1.25
0.12
0.12
0.02
0.04
0.04
0.04
0.12
0.02
0.12
0.05
0.05
0.08
  • 165 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 T
r
a
n
s
a
c
t
i
o
n
D
e
 T
r
a
n
s
a
c
t
i
o
n
D
e
 T
r
a
n
s
a
c
t
i
o
n
D
e
 t
a
i
l
s
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
1
1
1
1
2
2
2
2
2
2
2		 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
China General Plastics Corporation		 Corporation
Swanson Plastics Corporation
Swanson Plastics Corporation
Taita Chemical Co., Ltd.
USIG(Shanghai)Co.,Ltd
China General Terminal & Distribution
Corporation
Swanson Plastics Corporation
USI Management Consulting
Corporation
Taiwan VCM Corporation
Taiwan VCM Corporation
CGPC America Corporation
CGPC America Corporation		 c
c
c
c

c
c
c
c
c
c
c		 expense
Purchase
Sales revenue
Purchase
Sales
Cost of good purchased
Cost of good purchased
Management services
expense
Purchase
Accounts payable
Accounts receivable
Sales revenue		 21,338
25,354
10,970
47,243
53,592
20,456
55,297
2,779,416
695,203
91,395
281,369		 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		 0.06
0.07
0.03
0.14
0.07
0.03
0.16
8.03
2.01
0.26
0.81
  • 166 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 T
r
a
n
s
a
c		 t
i
o
n		 s
D
e		 t
a
i
l
s
Financial Statement
Accounts		 Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
2
3
3
3
3
4
4
4
4
4
4
4
4
4
4
5
5
5
6
7		 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
Acme Electronics Corporation
Acme Electronics Corporation
USI Management Consulting
Corporation
USI Management Consulting
Corporation
USI Management Consulting
Corporation
Taita Chemical (Zhongshan) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.		 CGPC Polymer Corporation
USI Management Consulting
Corporation
Taita Chemical (Zhongshan) Co., Ltd.
Taita Chemical (Tianjin) Co., Ltd.
China General Terminal & Distribution
Corporation
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
ACME Ferrite Product Sdn. Bhd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.
ACME Electronics (Cayman) Corp.
Acme Electronics (Guangzhou) Co.,
Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Asia Polymer Corporation
Swanson Plastics Corporation
China General Terminal & Distribution
Corporation
Taita Chemical (Tianjin) Co., Ltd.
Acme Electronics (Guangzhou) Co.,
Ltd.		 c
c
c

c
c
c
c
c
c
c
c
c
c
c
c
c

c
c
c		 Purchase
Management services
expense
Sales revenue
Other receivables
Storage tank operating fee
Sales revenue
Sales revenue
Sales revenue
Cost of goods sold
Processing fee (entered as
cost of goods sold)
Accounts receivable－
related parties
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
Management services
revenue
Other receivables
Sales revenue		 $ 33,392
37,445
504,943
271,126
11,023
94,534
62,829
12,808
48,716
282,118
18,089
14,816
205,262
117,661
14,842
29,679
22,557
14,230
66,522
27,904		 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
No significant
difference
No significant
difference		 0.10
0.05
0.69
0.78
0.03
0.27
0.18
0.04
0.14
0.39
0.02
0.02
0.28
0.16
0.02
0.04
0.03
0.04
0.19
0.04
  • 167 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 T
r
a
n
s
a
c		 t
i
o
n		 s
D
e		 t
a
i
l
s
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		 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		 Acme Electronics (Guangzhou) Co.,
Ltd.
ACME Ferrite Product Sdn. Bhd.
ACME Ferrite Product Sdn. Bhd.
Taiwan VCM Corporation
Taiwan VCM Corporation
Taiwan VCM Corporation
USI Corporation
USI Corporation
Asia Polymer Corporation
Asia Polymer Corporation
USI Management Consulting
Corporation
China General Plastics Corporation
Forever Young Company Limited
Forever Young Company Limited
Forever Young Company Limited
Swanson Plastics (Kunshan) Corp.		 c
c
c
c
c
c
b
b
c
c
c
c
c
c
c
c		 Cost of goods sold
Accounts receivable－
related parties
Sales revenue
Accounts payable
Other payables
Purchase
Sales revenue
Cost of goods sold
Cost of goods sold
Sales revenue
Management services
expense
Sales revenue
Accounts receivable
Sales revenue
Other income
Accounts receivable		 16,475
44,709
12,218
664,112
16,510
2,500,204
43,397
42,168
25,352
22,826
22,557
18,214
15,374
43,477
16,086
16,898		 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		 0.02
0.06
0.04
1.92
0.02
3.43
0.13
0.12
0.07
0.07
0.03
0.03
0.04
0.06
0.02
0.02
  • 168 -
No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 T
r
a
n
s
a
c		 t
i
o
n		 s
D
e		 t
a
i
l
s
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 (India) Private Ltd.
Swanson Plastics (Kunshan) Corp.
Swanson Plastics (Kunshan) Corp.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
PT Swanson Plastics Indonesia
Swanson International Ltd.
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
c
b
c
c
c
c
c
c
c		 Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Accounts payable
Cost of goods sold
Sales revenue
Sales revenue
Other receivables
Cost of goods sold
Accounts receivable
Sales revenue
Cost of goods sold
Accounts payable
Other receivables
Cost of goods sold
Other receivables		 $ 36,150
54,935
224,809
23,604
12,099
105,118
264,542
83,163
90,356
66,165
34,610
117,651
160,586
26,436
29,100
36,920
189,280		 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		 0.10
0.16
0.65
0.07
0.03
0.30
0.36
0.24
0.26
0.19
0.05
0.34
0.46
0.08
0.04
0.05
0.26

Note 1: The information about the transactions between the Company and the subsidiaries should be marked in the note column as follows:

  • a. The Company: 0.

  • b. The subsidiaries were marked from 1 in order of numeric characters by the companies.

  • 169 -

  • 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 calculated based on the ending balance accounted for total consolidated assets; (2) income or loss: The ratio was calculated based on the midterm accumulated amounts accounted for total consolidated sales revenue.

  • 170 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2020

TABLE 10

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

Investee Company Financial
Statement
Account		 Amount Percentage
(％)		 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 (Hong Kong) Company
Limited
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		 $ 74,838
82,902
328

14,837
192
4,923
1.07

1.19

-

-

-

-		 No significant
difference
－
－
－
－
－		 Within 60 days
after selling on
credit
Within 60 days
after selling on
credit
－
－
－
－		 No significant
difference
No significant
difference
－
－
－
－		 $ 17,769
31,879
-
-
-
-
2.97

5.32

-

-

-

-		 $ -
-
-
-
-
-		 －
－
－
－
－
－

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 171 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation (APC))

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 NINE MONTHS ENDED SEPTEMBER 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 payables
Other receivables		 $ 47,243
479


1,128
92
1,708

8,575		 1.19
-
-
-
-
-		 No significant
difference
－
－
－
－
－		 Within 90 days
after selling on
credit
－
－
－
－
－		 No significant
difference
－
－
－
－
－		 $ 5,486
-
-
-
-
-		 1.16
-
-
-
-
-		 $ -
-
-
-
-
-		 －
－
－
－
－
－

Note: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 172 -

USI CORPORATION INFORMATION ON MAJOR SHAREHOLDERS SEPTEMBER 30, 2020

TABLE 11

N a m e o f m a j o r s h a r e h o l d e r S
h
a
r
e
s		 S
h
a
r
e
s

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 shareholders 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.

  • 173 -

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