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USI Interim / Quarterly Report 2021

Dec 30, 2021

51764_rns_2021-12-30_53b186c0-a9b4-4719-9b5d-66d334b51f0e.pdf

Interim / Quarterly Report

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Stock code: 1304

USI CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements for the Six Months Ended June 30 of 2021 and 2020 and Independent Auditors’ Review Report

Address: No. 330, Fengren Rd., Renwu Dist., Kaohsiung City 814, Taiwan Phone: (02)87516888

  • 1 -

§Table of Content§

Financial
Statement Notes
Item Page Number
1. Cover 1 -
2. Table of Content 2 -
3. Independent Auditors’ Review Report 3～5 -
4. Consolidated Balance Sheets 6 -
5. Consolidated Statements of Comprehensive 7 -
Income
6. Consolidated Statements of Changes in Equity 8 -
7. Consolidated Statements of Cash Flows 9～10 -
8. Notes to Consolidated Financial Statements
a. General Information 11 1
b. Approval of Financial Statements 11 2
c. Application of New, Amended and 11～13 3
Revised Standards and Interpretations
d. Summary of Significant Accounting 13～15 4
Policies
e. Critical Accounting Judgments and 15 5
Key Sources of Estimation Uncertainty
f. Information on Important Accounting 16～75 6～34
Items
g. Related Party Transactions 75~76 35
h. Collateralized Assets 76 36
i. Significant Contingent Liability and 76～78 37
Unrecognized Contractual
Commitments
j. Significant Disaster Loss - -
k. Significant Events After the - -
Balance Sheet Date
l. Others 78～83 38～39
m. Separately Disclosed Items
1)
Information on Significant		 84, 87～113, 40
Transactions 126～133
2)
Information on Reinvestment		 84, 140～142 40
Business
3)
Information on Investments in		 84～85, 40
China 135～139,
143～144
4) Information on Major Shareholders 85, 145 40
n. Segment Information 85～86 41
  • 2 -

Independent Auditors’ Review Report

TO USI Corporation

Foreword

We have reviewed the consolidated balance sheets of USI Corporation and its subsidiaries (the Group) as of the years ended June 30, 2021 and 2020, and the Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows and Notes to the Consolidated Financial Statements (including the Summary of Significant Accounting Policies) for the months from April 1 to June 30 of 2021 and 2020, and those from January 1 to June 30 of 2021 and 2020. It is the responsibility of management to prepare the consolidated financial statements as permitted in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IAS 34-Interim Financial Reporting as approved and issued by the Financial Supervisory Commission, and it is the responsibility of the accountant to draw conclusions on the consolidated financial statements based on the audit results.

Scope

Except as stated in the basic paragraph of the reserved conclusions, we performed or reviews in accordance with SAS No. 65 Review of Financial Information Performed by the Independent Auditor of the Entity. Procedures for reviewing consolidated financial statements include inquiry (primarily to the person responsible for financial and accounting matters), analytical procedures, and other review procedures. The scope of check and approval is significantly smaller than that of audit, so we may not be aware of all the material matters that can be identified by the audit, so it is impossible to express an audit opinion.

Basis of Qualified Conclusions

As mentioned in notes 13 and 14 to the consolidated financial statements, the financial statements of some non-essential subsidiaries and joint ventures using the equity method for the same period included in the above consolidated financial statements have not been reviewed by us. The total assets and the balance of investment by equity method as at June 30, 2021 and

  • 3 -

March 31, 2020 were NT $29,769,160 thousand and NT $27,453,121 thousand, respectively, accounting for 36.20% and 38.21% of the total consolidated assets, respectively. The total liabilities were NT$3,242,958 thousand and NT$3,225,022 thousand, accounting for 10.68% and 10.87% of the total consolidated liabilities, respectively; The total comprehensive income and the share of the income from joint venture recognized at the equity method from April 1 to June 30 January 1, 2021 and those from January 1 to June 30 2021 and 2020 were NT$ 80,582 thousand (profit), NT$ 222,669 thousand (profit), NT$ 234,688 thousand (profit) and NT$ 3,671 thousand (loss), respectively, accounting for 3.17%, 31,26% and 4.52% and (0.49%) of the total comprehensive income, respectively. In addition, the information related to the aforesaid subsidiary and joint venture in other notes and schedules to the consolidated financial statements has not been reviewed by us.

Qualified Conclusions

According to the results of the auditor’s review, except that the financial statements of some of the non-significant subsidiaries and joint ventures adopting the equity method mentioned in the basic paragraph of the reserved conclusions may affect the adjustment of the consolidated financial statements if they are reviewed by the auditor, we were not aware that the above consolidated financial statements have not been prepared in all material respects in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IAS 34-Interim Financial Reporting as endorsed and promulgated by the Financial Supervisory Commission, making it impossible to properly express the consolidated financial position of the Group as of June 30, 2021 and 2020, and the consolidated financial performance from April 1 to June 30, 2021 and 2020 and the consolidated financial performance and consolidated cash flow for the period from January 1 to June 30, 2021 and 2020.

Key Audit Matters

As stated in Note 12 to the consolidated financial statements, the Group took into account the fact that the discontinued unit has resumed its operations, therefore, the amount of the prior period shall be re-expressed and the consolidated financial statement for the comparison period shall be recompiled in accordance with the provisions of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations in the preparation of the comparative consolidated financial statements for the continued unit reversed from discontinued unit from 2021. Please refer to Note 12 for the amount in comparison re-compiled. We have not revised the review conclusion due to that.

  • 4 -

The engagement partners on the review resulting in this independent auditors’ 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 dif ference in the interpretation of the two versions, the Chinese -language independent auditors’ report and consolidated financial statements shall prevail.

August 5, 2021

  • 5 -

USI CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2021, December 31, 2020 and June 30 2020

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
2216
2219
2230
2280
2320
2365
2399
21XX

2530
2540
2550
2570
2580
2640
2670
25XX
2XXX

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

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

Financial assets at fair value through profit or loss (FVTPL) - current
(Note 7)
Financial assets at fair value through other comprehensive income
(FVTOCI) - current (Note 8)
Financial assets measured at amortized cost - current (Notes 9 and 36)
Notes receivable, net (Note 10)

Accounts receivable, net (Note 10)

Other receivables (Notes 10 and 35)

Current tax assets (Notes 4 and 29)

Inventories (Note 11)

Prepayments

Other current assets

Total current assets

NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income
(FVTOCI) - non-current (Note 8)
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, net (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

L
i
a
b
i
l
i
t
i
e
s
a
n
d
E
q
u
i
t
y
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 (Notes 21)

Dividends payable

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 (Note 27)

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 8,
13, 26 and 29)
Share capital

Capital surplus

Retained earnings
Legal reserve

Special reserve

Unappropriated earnings

Total retained earnings

Other equity

Treasury shares

Total equity attributable to owners of the Company


NON-CONTROLLING INTERESTS


Total equity


TOTAL
 June 30, 2021
(reviewed)
％
12

7

-

1

1

10

1

-

7

1


-


40

3

-

24

29

1

1

-

-

1


1


60


100

3

1

-

5

2

3

2

-

4

-


-


20

7

5

-

2

1

2


-


17



37


15


1

4

-


9


13


-

(
1)

28



35



63


100
 (In Thousands of New Taiwan Dollars)
December 31, 2020
(audited)
June 30, 2020
(reviewed)
Amount
％
Amount
％
$ 9,637,007

13
$ 8,685,259

12
5,511,683

7

5,204,901

7
164,922

-

168,931

-
348,450

-

486,484

1
671,576

1

406,977

1
6,810,340

9

5,151,637

7
293,459

-

302,401

-
29,231

-

14,648

-
4,296,228

6

4,046,354

6
766,824

1

594,863

1
9,834

-

252,888

-
28,539,554

37

25,315,343

35
2,393,734

3

2,236,367

3
390,828

1

330,042

1
20,170,030

26

18,177,731

25
23,169,313

30

22,988,338

32
704,951

1

722,950

1
753,220

1

685,761

1
269,026

-

269,026

-
10,807

-

12,224

-
573,850

1

703,727

1
349,203

-

404,500

1
48,784,962

63

46,530,666

65



$ 77,324,516
100
$ 71,846,009
100
$ 2,726,270

3
$ 4,319,048

6
656,704

1

1,070,822

2
20,724

-

3,783

-
3,406,837

4

2,118,759

3
71,694

-

1,057,959

1
2,144,839

3

1,668,952

2
1,211,350

2

433,332

1
75,284

-

68,291

-
1,999,233

3

120,000

-
16,390

-

17,355

-
374,501

-

397,543

1
12,703,826

16

11,275,844

16
4,995,069

6

6,992,810

10
7,590,000

10

7,953,028

11
136,375

-

136,375

-
1,434,806

2

1,443,354

2
384,402

1

421,214

-
1,292,053

2

1,356,943

2
64,342

-

82,999

-
15,897,047

21

18,386,723

25



28,600,873

37

29,662,567

41
11,887,635

15

11,887,635

17
321,798

1

341,249

-
3,109,625

4

3,109,625

5
781,059

1

781,059

1
5,606,462

7

3,774,325

5
9,497,146

12

7,665,009

11

240,195)

-
(
950,804)
(
1)

475,606)
(
1)
(
475,606)
(
1)
20,990,778

27

18,467,483

26



27,732,865

36

23,715,959

33



48,723,643

63

42,183,442

59



$ 77,324,516
100
$ 71,846,009
100
Amount
$ 10,076,508

5,940,782

208,884

348,043

590,051

8,103,029

362,561

18,059

6,038,762

1,137,780

11,357

32,835,816

2,674,958

396,908

19,908,120

23,602,188

670,209

728,692

269,026

9,100

611,695

535,498

49,406,394


$ 82,242,210

$ 2,602,029

563,606

6,383

4,017,891

1,878,649

2,665,669

1,350,032

56,080

2,999,528

25,898

522,205

16,687,970

5,991,926

4,420,000

136,375

1,483,953

378,510

1,209,361

66,142

13,686,267


30,374,237

11,887,635

363,757

3,343,086

375,127

7,144,641

10,862,854

187,105


475,606)

22,825,745


29,042,228


51,867,973


$ 82,242,210
 Amount
$ 9,637,007

5,511,683

164,922

348,450

671,576

6,810,340

293,459

29,231

4,296,228

766,824

9,834

28,539,554

2,393,734

390,828

20,170,030

23,169,313

704,951

753,220

269,026

10,807

573,850

349,203

48,784,962


$ 77,324,516

$ 2,726,270

656,704

20,724

3,406,837

71,694

2,144,839

1,211,350

75,284

1,999,233

16,390

374,501

12,703,826

4,995,069

7,590,000

136,375

1,434,806

384,402

1,292,053

64,342

15,897,047


28,600,873

11,887,635

321,798

3,109,625

781,059

5,606,462

9,497,146


240,195)


475,606)

20,990,778


27,732,865


48,723,643


$ 77,324,516


















(















(
(

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

(Please refer to the Review Report by Deloitte & Touche on August 5, 2021)

  • 6 -

USI CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Years from April 1 to June 30, 2021 and 2020 and from January 1 to June 30, 2021 and 2020

(Reviewed only, not audited)

Code
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, 12,15, 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 (Notes 12 and 28)
7010
Other income (Notes 12, 15, 25, 28 and 35)
7020
Other gains and losses (Notes 12, 17,24, 28 and
39)
7050
Finance costs (Notes 19, 20 and 28)

7060
Share of loss 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)

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)
9710
Basic

9810
Diluted
 April 1 toJune30,2021
Amount
%
$ 17,746,758
100

13,455,770
76

4,290,988
24

716,153
4
305,965
2
111,681

-

1,133,799

6

3,157,189
18

22,064
-
176,126
1
128,342
-

41,458 )
-


22,792)

-

262,282

1

3,419,471
19
719,208

4

2,700,263
15

138,951
1

990)

-

137,961

1


335,582 )
(
2 )
37,298

-


298,284)
(
2)


160,323)
(
1)

$ 2,539,940
14

$ 1,305,809
7

1,394,454

8

$ 2,700,263
15

$ 1,500,005
8

1,039,935

6

$ 2,539,940
14

$ 1.22

$ 1.22
 April 1 toJune30,2020
Amount
%
$ 10,856,394
100

9,347,960
86

1,508,434
14

392,280
3
293,932
3
83,644

1

769,856

7

738,578

7

31,180
-
145,532
1
26,037
-

57,541 )
-


26,675)

-

118,533

1

857,111
8
190,431

2

666,680

6

450,546
4
59

-

450,605

4


473,288 )
(
4 )
68,300

1


404,988)
(
3)

45,617

1

$ 712,297

7

$ 294,844
3

371,836

3

$ 666,680

6

$ 552,057
5

160,240

2

$ 712,297

7

$ 0.27

$ 0.27
 (In Thousands of New Taiwan Dollars, Except for Earnings per Share)
January1 toJune30,2021
January1 toJune30,2020
Amount
%
Amount
%
$ 33,940,936
100
$ 22,212,802
100
25,193,506
75

18,865,118
85
8,747,430
25

3,347,684
15
1,519,931
4
856,755
4
649,745
2
594,132
2
216,439

1

168,766

1
2,386,115

7

1,619,653

7
6,361,315
18

1,728,031

8
40,032
-
60,493
-
227,330
1
181,268
1
160,335
-
(
29,646 )
-

84,091 )
-
(
124,005 )
(
1 )

20,805)

-
(
69,795)

-
322,801

1

18,315

-
6,684,116
19
1,746,346
8
1,409,471

4

433,995

2
5,274,645
15

1,312,351

6
365,465
1
75,340
-

2,322)

-

283

-
363,143

1

75,623

-

499,503 )
(
1 ) (
731,729 )
(
3 )
57,082

-

91,761

-

442,421)
(
1)
(
639,968)
(
3)

79,278)

-
(
564,345)
(
3)
$ 5,195,367
15
$ 748,006

3
$ 2,554,471
7
$ 511,800
2
2,720,174

8

800,551

4
$ 5,274,645
15
$ 1,312,351

6
$ 2,981,771
9
$ 332,791
1
2,213,596

6

415,215

2
$ 5,195,367
15
$ 748,006

3
$ 2.38
$ 0.48
$ 2.38
$ 0.48		 (In Thousands of New Taiwan Dollars, Except for Earnings per Share)
January1 toJune30,2021
January1 toJune30,2020
Amount
%
Amount
%
$ 33,940,936
100
$ 22,212,802
100
25,193,506
75

18,865,118
85
8,747,430
25

3,347,684
15
1,519,931
4
856,755
4
649,745
2
594,132
2
216,439

1

168,766

1
2,386,115

7

1,619,653

7
6,361,315
18

1,728,031

8
40,032
-
60,493
-
227,330
1
181,268
1
160,335
-
(
29,646 )
-

84,091 )
-
(
124,005 )
(
1 )

20,805)

-
(
69,795)

-
322,801

1

18,315

-
6,684,116
19
1,746,346
8
1,409,471

4

433,995

2
5,274,645
15

1,312,351

6
365,465
1
75,340
-

2,322)

-

283

-
363,143

1

75,623

-

499,503 )
(
1 ) (
731,729 )
(
3 )
57,082

-

91,761

-

442,421)
(
1)
(
639,968)
(
3)

79,278)

-
(
564,345)
(
3)
$ 5,195,367
15
$ 748,006

3
$ 2,554,471
7
$ 511,800
2
2,720,174

8

800,551

4
$ 5,274,645
15
$ 1,312,351

6
$ 2,981,771
9
$ 332,791
1
2,213,596

6

415,215

2
$ 5,195,367
15
$ 748,006

3
$ 2.38
$ 0.48
$ 2.38
$ 0.48		 (In Thousands of New Taiwan Dollars, Except for Earnings per Share)
January1 toJune30,2021
January1 toJune30,2020
Amount
%
Amount
%
$ 33,940,936
100
$ 22,212,802
100
25,193,506
75

18,865,118
85
8,747,430
25

3,347,684
15
1,519,931
4
856,755
4
649,745
2
594,132
2
216,439

1

168,766

1
2,386,115

7

1,619,653

7
6,361,315
18

1,728,031

8
40,032
-
60,493
-
227,330
1
181,268
1
160,335
-
(
29,646 )
-

84,091 )
-
(
124,005 )
(
1 )

20,805)

-
(
69,795)

-
322,801

1

18,315

-
6,684,116
19
1,746,346
8
1,409,471

4

433,995

2
5,274,645
15

1,312,351

6
365,465
1
75,340
-

2,322)

-

283

-
363,143

1

75,623

-

499,503 )
(
1 ) (
731,729 )
(
3 )
57,082

-

91,761

-

442,421)
(
1)
(
639,968)
(
3)

79,278)

-
(
564,345)
(
3)
$ 5,195,367
15
$ 748,006

3
$ 2,554,471
7
$ 511,800
2
2,720,174

8

800,551

4
$ 5,274,645
15
$ 1,312,351

6
$ 2,981,771
9
$ 332,791
1
2,213,596

6

415,215

2
$ 5,195,367
15
$ 748,006

3
$ 2.38
$ 0.48
$ 2.38
$ 0.48		 (In Thousands of New Taiwan Dollars, Except for Earnings per Share)
January1 toJune30,2021
January1 toJune30,2020
Amount
%
Amount
%
$ 33,940,936
100
$ 22,212,802
100
25,193,506
75

18,865,118
85
8,747,430
25

3,347,684
15
1,519,931
4
856,755
4
649,745
2
594,132
2
216,439

1

168,766

1
2,386,115

7

1,619,653

7
6,361,315
18

1,728,031

8
40,032
-
60,493
-
227,330
1
181,268
1
160,335
-
(
29,646 )
-

84,091 )
-
(
124,005 )
(
1 )

20,805)

-
(
69,795)

-
322,801

1

18,315

-
6,684,116
19
1,746,346
8
1,409,471

4

433,995

2
5,274,645
15

1,312,351

6
365,465
1
75,340
-

2,322)

-

283

-
363,143

1

75,623

-

499,503 )
(
1 ) (
731,729 )
(
3 )
57,082

-

91,761

-

442,421)
(
1)
(
639,968)
(
3)

79,278)

-
(
564,345)
(
3)
$ 5,195,367
15
$ 748,006

3
$ 2,554,471
7
$ 511,800
2
2,720,174

8

800,551

4
$ 5,274,645
15
$ 1,312,351

6
$ 2,981,771
9
$ 332,791
1
2,213,596

6

415,215

2
$ 5,195,367
15
$ 748,006

3
$ 2.38
$ 0.48
$ 2.38
$ 0.48
Amount
$ 17,746,758

13,455,770

4,290,988

716,153
305,965
111,681

1,133,799

3,157,189

22,064
176,126
128,342

41,458 )

22,792)

262,282

3,419,471

719,208

2,700,263

138,951

990)

137,961


335,582 )

37,298


298,284)


160,323)

$ 2,539,940

$ 1,305,809
1,394,454

$ 2,700,263

$ 1,500,005
1,039,935

$ 2,539,940

$ 1.22
$ 1.22		 Amount
$ 10,856,394

9,347,960

1,508,434

392,280
293,932
83,644

769,856

738,578

31,180
145,532
26,037

57,541 )

26,675)

118,533

857,111
190,431

666,680

450,546
59

450,605


473,288 )

68,300


404,988)

45,617

$ 712,297

$ 294,844
371,836

$ 666,680

$ 552,057
160,240

$ 712,297

$ 0.27
$ 0.27		 Amount
$ 33,940,936

25,193,506

8,747,430

1,519,931
649,745
216,439

2,386,115

6,361,315

40,032
227,330
160,335

84,091 )

20,805)

322,801

6,684,116

1,409,471

5,274,645

365,465

2,322)

363,143


499,503 )

57,082


442,421)


79,278)

$ 5,195,367

$ 2,554,471
2,720,174

$ 5,274,645

$ 2,981,771
2,213,596

$ 5,195,367

$ 2.38
$ 2.38		 Amount
$ 22,212,802

18,865,118

3,347,684

856,755
594,132
168,766

1,619,653

1,728,031

60,493
181,268

29,646 )

124,005 )


69,795)

18,315

1,746,346
433,995

1,312,351

75,340
283

75,623


731,729 )

91,761


639,968)


564,345)

$ 748,006

$ 511,800
800,551

$ 1,312,351

$ 332,791
415,215

$ 748,006

$ 0.48
$ 0.48		 %






(
(



(

(

(
(





(
(





(

(





(
(



(

(

(
(





(
(
(





(

(
(








 100
85
15
4
2

1

7

8
-
1
-
(
1 )

-

-
8

2

6
-

-

-
(
3 )

-
(
3)
(
3)

3
2

4

6
1

2

3

The accompanying notes are an integral part of the consolidated financial statements. (Please refer to the Review Report by Deloitte & Touche on August 5, 2021)

  • 7 -

USI CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Years from January 1 to June 30, 2021 and 2020 (Reviewed only, not audited)

Code
A1
BALANCE AT JANUARY 1, 2020
Distribution of surplus in 2019
B1
Provision for statutory surplus
reserve
B3
Provision
of
special
surplus
reserve
B5
Cash dividends to shareholders of
the Company
O1
Cash dividends to shareholders of
subsidiaries
D1
Net profit from January 1 to June 30,
2020
D3
Other comprehensive income after tax
from January 1 to June 30, 2020
D5
Total
comprehensive
income
from
January 1 to June 30, 2020
C7
Changes in equity of subsidiaries
recognized by equity method
M1
Dividends distributed to subsidiaries to
adjust capital reserve
Q1
Disposal
of
equity
instrument
investments measured at fair value
through other comprehensive income
O1
Change in non-controlling interests
Z1
BALANCE AT JUNE 30, 2020
A1
BALANCE AT JANUARY 1, 2021
Distribution of surplus in 2020
B1
Provision for statutory surplus
reserve
B3
Provision
of
special
surplus
reserve
B5
Cash dividends to shareholders of
the Company
O1
Cash dividends to shareholders of
subsidiaries
D1
Net profit from January 1 to June 30,
2021
D3
Other comprehensive income after tax
from January 1 to June 30, 2021
D5
Total
comprehensive
income
from
January 1 to June 30, 2021
C7
Changes in equity of subsidiaries
recognized by equity method
M1
Dividends distributed to subsidiaries to
adjust capital reserve
O1
Change in non-controlling interests
Z1
BALANCE AT JUNE 30, 2021		 EquityAtt ributable to Owners of the Company ributable to Owners of the Company Total
$ 18,659,503
-
-

594,382 )
-
511,800

179,009)
332,791
50,406
19,165
-
-
$ 18,467,483
$ 20,990,778
-
-

1,188,763 )
-
2,554,471
427,300
2,981,771
3,630
38,329
-
$ 22,825,745		 (In Thousands
Non-controlling
interest
(Notes 8, 13, 14 and 26)
$ 20,517,444
-
-
-
(
519,048 )
800,551
(
385,336)

415,215
(
50,680 )
-
-

3,353,028
$ 23,715,959
$ 27,732,865
-
-
-
(
806,085 )
2,720,174
(
506,578)

2,213,596
172
-
(
98,320)
$ 29,042,228
(In Thousands		 of N ew Taiwan Dollars)
Total Equity
Share Capital
(Note26)
$ 11,887,635
-
-
-
-
-
-
-
-
-
-
-
$ 11,887,635
$ 11,887,635
-
-
-
-
-
-
-
-
-
-
$ 11,887,635		 Capital Surplus Others
(Note26)
$ 18,840
-
-
-
-
-
-
-
-
-
-
-
$ 18,840
$ 19,940
-
-
-
-
-
-
-
-
-
-
$ 19,940		 Retained Earning Unappropriated
Earnings

(Nots 8 and26)
$ 4,346,640
(
129,872 )
(
350,533 )
(
594,382 )
-
511,800

-

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

-
$ 3,774,325
$ 5,606,462
(
233,461 )
405,932
(
1,188,763 )
-
2,554,471

-

2,554,471
-
-

-
$ 7,144,641		 Other Equity
Exchange Differences
on Translating
Foreign Operation
Unrealized Gain
(Loss) on Financial
Assets at FVTOCI
(Notes 26 and 29)
(Notes 8,26,and 29)
( $ 602,871 )
( $ 178,187 )
-
-
-
-
-
-
-
-
-
-
(
275,353)

96,344
(
275,353)

96,344
-
-
-
-
-
9,263

-

-
($ 878,224)
($ 72,580)
( $ 583,855 )
$ 343,660
-
-
-
-
-
-
-
-
-
-
(
186,436)

613,736
(
186,436)

613,736
-
-
-
-

-

-
($ 770,291)
$ 957,396		 Treasury Share
(Note 26
$ 475,606 )
-
-
-
-
-
-
-
-
-
-
-
$ 475,606)
$ 475,606 )
-
-
-
-
-
-
-
-
-
-
$ 475,606)
Treasury Share
Transactions
(Note26)
$ 245,482
-
-
-
-
-
-
-
-
19,165
-
-
$ 264,647
$ 264,647
-
-
-
-
-
-
-
-
38,329
-
$ 302,976		 Shares of Changes in
Capital Surplus of
Associates
(Notes13 and26)
$ 7,291
-
-
-
-
-

-

-
50,471
-
-

-
$ 57,762
$ 37,211
-
-
-
-
-

-

-
3,630
-

-
$ 40,841		 Legal Reserve
(Note26)
$ 2,979,753
129,872
-
-
-
-
-
-
-
-
-
-
$ 3,109,625
$ 3,109,625
233,461
-
-
-
-
-
-
-
-
-
$ 3,343,086		 Special Reserve
(Note26)
$ 430,526
-
350,533
-
-
-

-

-
-
-
-

-
$ 781,059
$ 781,059
-
(
405,932 )
-
-
-

-

-
-
-

-
$ 375,127		 Exchange Differences
on Translating
Foreign Operation
(Notes 26 and 29)
( $ 602,871 )
-
-
-
-
-
(
275,353)
(
275,353)
-
-
-

-
($ 878,224)
( $ 583,855 )
-
-
-
-
-
(
186,436)
(
186,436)
-
-

-
($ 770,291)



















































(
(
(
(


(
(



(
(



 (
(
(

(
(
(
(

(		 (



(




 (



(
(



(
(
(




(
(
(

(



(
(

(
(
(
(

(



(
(
(

(

of N		 $ 39,176,947
-
-

594,382 )

519,048 )
1,312,351

564,345)
748,006

274 )
19,165
-
3,353,028
$ 42,183,442
$ 48,723,643
-
-

1,188,763 )

806,085 )
5,274,645

79,278)
5,195,367
3,802
38,329

98,320)
$ 51,867,973
ew Taiwan Dollars)

The accompanying notes are an integral part of the consolidated financial statements. (Please refer to the Review Report by Deloitte & Touche on August 5, 2021)

  • 8 -

USI CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years from January 1 to June 30, 2021 and 2020

(Reviewed only, not audited)

C o d e
CASH FLOWS FROM OPERATING ACTIVITIES
A10000
Net profit before tax for the current period

A20010
Income (expenses) items
A20100
Depreciation expenses
A20200
Amortization expenses
A20300
Expected credit loss (profit) reversed on
accounts receivable
A20400
Net (gain) loss 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 of joint ventures accounted
for using the equity method
A22500
Loss of disposal and scrapping of real
estate, plant and equipment
A23800
Recognition of loss for market price
decline and obsolete and slow-moving
inventories
A23700
Impairment
loss
recognized
on
non-financial assets
A29900
Gain on revised lease

A29900
Recognition
(reversed)
of
refund
liabilities
A30000
Changes in operating assets and liabilities
A31115
(Increase) decrease in financial assets
mandatorily classified as at FVTPL
A31130
Decrease in notes receivable
A31150
(Increase)
decrease
in
accounts
receivable
A31180
(Increase) decrease in other receivables
A31200
(Increase) decrease in inventories

A31230
(Increase) decrease in prepayments

A31240
Increase in other current assets

A32150
Increase (decrease) in accounts payable
A32180
Increase (decrease) in other payables
A32200
Increase (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
(Continued)		 (In Thousands of
From January 1 to
June30,2021

$ 6,684,116

1,138,658
31,073
1,448

(
143,852 )
84,091
(
40,032 )
(
104,249 )
20,805
72,287
6,991
2,432
(
660 )
5,796

(
299,588 )
81,525
(
1,293,857 )
(
155,856 )
(
1,745,165 )
(
371,923 )
(
1,523 )

641,474

419,463

3,712

(
82,692 )

147,704

5,102,178
43,440
(
85,290 )
(
1,191,233)


3,869,095
 New Taiwan Dollars)
January 1 to June 30,
2020
$ 1,746,346
1,138,031
34,489
(
1,351 )

295,867
124,005
(
60,493 )
(
69,324 )
69,795
17,867
20,072
6,398

-
(
7,120 )

856,904
227,458

1,261,233

69,769

866,810

187,284
(
235,738 )
(
638,609 )
(
251,879 )
(
3,746 )
(
116,924 )

134,585
5,671,729
60,071
(
138,097 )
(
457,820)

5,135,883
  • 9 -
C o d e
CASH FLOWS FROM INVESTING ACTIVITIES
B00010Acquisition of FVTOCI

B00020Disposal of FVTOCI

B00030
Reduction of capital by returning cash of
financial assets at FVTOCI
B00050
(Acquisition) disposal of financial assets
measured at amortized cost
B01800
Acquisition
of
long-term
equity
investments using the equity method
B02700
Acquisition for property, plant and equipment
B02800
Proceeds from disposal of property, plant and
equipment
B03700
(Increase) decrease in refundable deposit
B04500
Payments for other intangible assets

B05400
Acquisition of investment property

B06700
(Increase) decrease in other non-current assets
BBBB
Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
C00100
(Decrease) increase in short-term borrowings
C00500
Decrease in short-term notes payable

C01200
Issuing of bonds

C01300
Repayments of bonds

C01600
Proceeds from mid- to long-term borrowings
C01700
Repayments of mid- to long-term borrowings
C03100
Increase in deposit margin

C04020
Repayments of the principal portion of lease
liabilities
C04400
Decrease in other non-current liabilities

C04500
Decrease in dividends payable

C05800
Change in non-controlling interests

CCCC
Net cash (used) generated from financing
activities
DDDDEFFECTS OF EXCHANGE RATE CHANGES ON
THE BALANCE OF CASH AND CASH
EQUIVALENTS
HELD
IN
FOREIGN
CURRENCIES
EEEE
NET
INCREASE
IN
CASH
AND
CASH
EQUIVALENTS
E00100CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD
E00200CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD		 From January 1 to
June 30,2021
-

-
39,145
(
5,673 )
-

(
1,570,262 )
22,867
(
4,880 )
(
180 )
(
55 )
(
242,365)

(
1,761,403)


(
124,241 )
(
93,000 )
1,995,634

-

14,190,000

(
17,360,000 )
2,867

(
34,114 )
(
1,067 )
(
298 )
(
98,320)

(
1,522,539)

(
145,652)

439,501

9,637,007

$ 10,076,508
 January 1 to June
30,2020
(
77,149 )
15,577
-

1,545
(
3,811,781 )
(
1,043,726 )
13,712

20,384
(
113 )

-

7,136
(
4,874,415)
60,068
(
282,000 )
-
(
1,000,000 )
9,140,000
(
10,559,942 )
15,072
(
34,075 )
(
1,326 )
(
73,242 )

3,353,028

617,583
(
121,195)
757,856

7,927,403
$ 8,685,259

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

(Please refer to the Review Report by Deloitte & Touche on August 5, 2021)

  • 10 -

USI CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

From January 1 to June 30, 2021 and 2020

(Reviewed only, not audited)

(In Thousands of New Taiwan Dollars unless otherwise indicated)

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 August 5, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND

INTERPRETATIONS

  • a. Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretation (IFRIC) and Interpretation Notice (SIC) (hereinafter referred to as “IFRSS”) as approved and promulgated by the Financial Supervisory Commission (hereinafter referred to as the “FSC”).

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

  • b. IFRSs approved by FSC in 2022

New, Revised or Amended Standards and Interpretations

“Improvements for the Years 2018 to 2020”

Amendments to IFRS 3 “Reference to Conceptual Framework”

  • Amendments to IAS 16 “Real property, Plant and equipment: Price before Reaching the Intended Use Status”

Effective Date Announced by IASB January 1, 2022 (Note 1)

January 1, 2022 (Note 2) January 1, 2022 (Note 3)

Amendment to IAS 37, “Loss-making contracts - January 1, 2022 (Note 4) Cost of Performance”

  • 11 -

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

  • Note 2: This amendment applies to business combinations whose acquisition date begins after January 1, 2022 during the annual reporting period.

  • Note 3: This amendment applies to plant, real estate, and equipment in locations and conditions necessary for management's intended operation after January 1, 2021.

  • Note 4: This amendment applies to contracts that have not fulfilled all obligations as at 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.

  • c. IFRSs issued by IASB but have not yet been endorsed and issued into effect by FSC
FSC
New, Revised or Amended Standards and
Interpretations
Amendments to IFRS 10 and IAS 28 “Sale or
Investment of Assets between Investors and Their
Associated Enterprises or Joint Ventures”
IFRS 17 “Insurance Contract”
Amendment to IFRS 17
Amendment to IAS 1 “Classification of Liabilities as
Current or Non-current”
Amendment to IAS 1 “Disclosure of Accounting
Policies”
Amendment to IAS 8 “Definition of Accounting
Estimates”
Amendment to IAS 12 “Deferred Income Tax
Related to Assets and Liabilities Arising from a
Single Exchange”		 Effective Date
Announced by IASB
(Note 1)
Undetermined
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

  • 12 -

  • Note 1: Unless otherwise noted, the above New, Revised or Amended Standards and Interpretations shall take effect during the annual reporting period commencing from each such date.

  • Note 2: This amendment applies to delays in reporting periods commencing after 1 January 2023.

  • Note 3: This amendment applies to changes in accounting estimates and changes in accounting policies that occur during reporting periods in years beginning after January 1, 2023.

  • Note 4: This amendment applies to transactions occurring after January 1, 2022, except for the recognition of deferred income tax for temporary differences in lease and decommissioning 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.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These consolidated financial statements have been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IAS 34-Interim Financial Reporting. The consolidated financial statements do not contain all the information disclosed in accordance with IFRSs specified in the entire annual financial statements.

  • b. Basis of preparation

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:

  • 13 -

  • 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 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.

  • 14 -

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

Unless as described below, please refer to the Summary of Material Accounting Policies in the consolidated financial statements of 2020.

  • (1). Post retirement benefits for defined benefits

The pension cost in the interim period is calculated on the basis of the actuarial pension cost rate determined at the end of the previous year from the beginning of the year to the end of the current period, and adjusted for major market fluctuations, major plan amendments, liquidation or other major one-off events in the current period.

  • (2). Income tax

Income tax expense is the sum of current income tax and deferred income tax. The income tax for the interim period is assessed on an annual basis and is calculated on the basis of the pre-tax benefits of the interim period at the tax rate applicable to the total surplus of the expected year.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION

UNCERTAINTY

In adopting accounting policies of the Group, management must make judgments, estimates and assumptions based on historical experience and other relevant factors for those whose information is not readily available from other sources. Actual results may differ from estimates.

The Group will incorporate the recent global developments of the COVID-19 pandemic and its possible impact on the economic environment into relevant material accounting estimates such as cash flow estimates, growth rates, discount rates and profitability Management will continue to review the estimates and underlying assumptions.If the estimated revision only affects the current period, it will be recognized in the revised period; If the revision of accounting estimates affects both the current and future periods, the revised current and future periods are recognized in the revised and future periods. For others, please refer to the statement of major sources of uncertainty of significant accounting judgments, estimates and assumptions in the consolidated Financial Statements 2020.

  • 15 -

6. CASH AND CASH EQUIVALENTS

Cash on hand and petty cash
Checking accounts and
demand deposits
Cash equivalents
Time deposits

Reserve repurchase
agreements
collateralized by
bonds
 June 30,2021
$ 84,712

3,417,495
6,567,217


7,084
$10,076,508
 December 31,
2020
$ 155,049

3,065,872

6,392,905


23,181

$ 9,637,007
 June 30,2020 June 30,2020












$ 111,754
2,562,668
5,980,768
30,069
$ 8,685,259

The range of market interest rates for time deposits and reserve repurchase agreements collateralized by bonds on the balance sheet date is as follows:

Bank deposits

Reserve repurchase
agreements collateralized by
bonds		 June30,2021
0.05%～3.00%
0.85%～1.15%		 December 31,
2020
0.07%～2.30%
0.15%～1.20%		 June30,2020
0.15%～5.80%
0.15%～1.10%
  • 16 -

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

CURRENT

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

Subtotal


Financial liabilities held for
trading
Derivative financial liabilities
(not
under
hedge
accounting)
-Foreign
exchange
forward contracts
 June 30,2021
$ 7,648


842,533
4,865,303

224,928

370

5,933,134

$ 5,940,782

$ 6,383
 December 31,
2020
$ 5,328

506,763
4,765,536

233,670

386

5,506,355

$ 5,511,683

$ 20,724
 June 30,2020
















$ 8,366
237,467
4,746,239
212,313
516
5,196,535
$ 5,204,901
$ 3,783

The outstanding foreign exchange forward contracts not under hedge accounting at the balance sheet date were as follows:

June 30, 2021
Sell
Sell
Sell
Sell
Buy
Buy
December 31, 2020
Sell
Sell
Sell
Sell
Buy
Buy
June 30, 2021
Sell		 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
 MaturityDate
2021.07.09-2021.09.27
2021.07.30-2022.03.31
2021.07.02-2021.10.22
2021.10.29-2022.02.28
2021.07.01-2021.09.10
2021.08.20
2021.01.05-2021.04.07
2021.03.31-2021.08.30
2021.01.04-2021.03.18
2021.05.28-2021.07.30
2021.01.13-2021.01.27
2021.01.04-2021.03.02
2020.07.03-2020.09.24		 Contractual Amount
( I n
T h o u s a n d s )
RMB 243,500 /NTD 1,047,166
USD
950 /MYR
3,939
USD
50,690 /NTD 1,413,051
EUR
180 /MYR
908
NTD 309,714 /USD
11,127
JPY
20,000 /USD
183
RMB 254,260 /NTD 1,089,330
USD
550 /MYR
2,313
USD
35,790 /NTD 1,014,569
EUR
284 /MYR
1,399
JPY
40,000 /USD
385
NTD 211,769 /USD
7,471
RMB 141,300 /NTD
591,071
  • 17 -
Sell
Sell
Sell
Buy
Buy		 Currency
USD/MYR

USD/NTD

EUR/MYR

NTD/USD

JPY/USD		 MaturityDate
2020.09.30-2021.04.30
2020.07.06-2021.10.16
2020.08.28-2021.04.30
2020.08.04-2020.08.25
2020.07.21		 Contractual Amount
( I n
T h o u s a n d s )
USD
1,092 /MYR
4,626
USD
33,570 /NTD
996,670
EUR
274 /MYR
1,299
NTD 127,375 /USD
4,280
JPY
30,000 /USD
281

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.

  1. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE

INCOME

INCOME
Current
Investments in equity
instruments at FVTOCI
Domestic investments
Domestic listed shares
and
over-the-counter
shares

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

Emerging market
shares
Unlisted shares


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


 June 30,2021
$ 208,884

$ 1,782,188

12,567
$ 741,364

2,536,119

32,402

106,437


138,839

$ 2,674,958
 December 31,
2020
$ 164,922

$ 1,529,883

9,626
$ 720,833

2,260,342

30,566

102,826


133,392

$ 2,393,734
 June 30,2020


















$ 168,931
$ 1,440,794
10,495
$ 680,028
2,131,317
7,089
97,961
105,050
$ 2,236,367

The Group invested the listed shares and over-the-counter shares, emerging market shares and unlisted shares for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI

  • 18 -

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 1,734 thousand shares of Global Biopharma, Inc. from January 1 to June 30, 2020. Related other equity - the unrealized loss of financial assets measured at fair value through other comprehensive income of $10,434 thousand is transferred to retained surplus of $9,263 thousand and non-controlling equity of NT$ 1,171 thousand, respectively.

From January 1 to June 30, 2021, due to the reduction of capital and refund of shares by the invested company, the merged company shall recover $39,145 thousand according to the proportion of shares held.

The Group recognized dividend revenue of $78,136 thousand and $87,536 thousand from January 1 to June 30, 2021 and 2020, respectively.

9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST

Current
Pledged time deposits

Financial products


Non-current
Constricted bank deposits


Range of interest rates
Pledged time deposits

Financial products		 June30,2021
$ 348,043


-

$ 348,043

$ 396,908

0.04%～1.85%
-		 December 31,
2020
$ 348,450


-

$ 348,450

$ 390,828


0.04%～1.85%
-
 June30,2020
$ 347,531

138,953
$ 486,484
$ 330,042

0.04%～3.75%
2.70%～3.00%

Constricted bank deposit means the subsidiary’s earning repatriation and for Taiwan Water Corporation’s petition of provisional attachment with the court due to gas explosion case. The Group’s filed applying to the Management, Utilization and Taxation for Patriated Offshore Funds Act was approved to repatriate the funds by the Ministry of Finance in 2020 and deposited the net value after tax to foreign exchange deposit account. The deposit is limited for free utilization by laws and regulations that three-year withdrawal is not permitted until five years of the deposit, except for financial investment or physical investments with partially free utilization by law.

  • 19 -

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

Notes receivable (a)
At amortized cost
Gross carrying amount

Accounts receivable (a)
At amortized cost
Gross carrying amount

Less:
Allowance
for
impairment loss


Other receivables (b)
Tax refund receivable

Lent material fees receivable
Others

 June 30,2021
$ 590,051

$ 8,191,748

(
88,719)

$ 8,103,029

$ 309,793


349

52,419

$ 362,561
 December 31,
2020
$ 671,576

$ 6,900,396

(
90,056)

$ 6,810,340

$ 208,290

27,067

58,102

$ 293,459
 June 30,2020 June 30,2020


(

(

(



 $ 406,977
$ 5,243,492

91,855)
$ 5,151,637
$ 117,935
95,262
89,204
$ 302,401
  • 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. Prior to accepting a new customer, the credit limit of a potential customer is set by the Group based on the credit record of the potential customer and the credit quality of the potential customer is assessed through the internal credit rating system. Regular review will be carried out for the credit limit and rating of the customer. In addition, the Group reviews the recoverable amount of each individual trade debt on the balance sheet date to ensure that adequate allowance is made for possible

  • 20 -

irrecoverable amounts. In this regard, the management believes the Group’s credit risk is significantly reduced.

The Group recognizes the allowance for impairment loss on accounts receivable in terms of expected credit losses during the life period or customer credit rating. Expected credit losses over the life period are calculated using a reserve matrix, which takes into account the customer’s past default record and current financial condition, industry economic situation and industry outlook.

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:

June 30, 2021

Based on the number of overdue days


Gross carrying amount

Loss allowance
(Lifetime ECLs)）

Amortized cost
 Upto 60 Days
$ 3,304,794

(
4,651)

$ 3,300,143
61～90 Days

$ 4,963

-

$ 4,963
 Over 91 Days
$ 6,010

(
4,674)

$ 1,336
 Total

(


(
(
 $ 3,315,767
9,325)
$ 3,306,442

Based on credit quality

Based on credit quality Based on credit quality
Credit Rating
A
Gross carrying amount
$ 596,325

Loss allowance (Lifetime
ECLs)
(
3,555)

Amortized cost
$ 592,770

December 31, 2020
Based on the number of overdue days
Upto 60 Days
Gross carrying amount
$ 2,826,907

Loss allowance
(Lifetime ECLs)
(
4,651)

Amortized cost
$ 2,822,256
 Credit Rating
A		 Credit Rating
B		 Credit Rating
C		 Others Total
$
(
 $ 5,466,032

79,394)
$ 5,386,638
Total

$

$ 2,713,395






Gross carrying amount

Loss allowance
(Lifetime ECLs)

Amortized cost
Upto 60 Days
$ 2,826,907

(
4,651)

$ 2,822,256

(



$ 440
-
$ 440
(
(
 $ 2,834,485

8,956)
$ 2,825,529
  • 21 -

Based on credit quality

Based on credit quality
Gross carrying amount

Loss allowance (Lifetime ECLs)
Amortized cost
 Credit Rating
A
$ 384,617

(
4,435)

$ 380,182
 Credit Rating
B
Credit Rating
C
$ 334,029
(
6,157)
$ 327,872		 Others Total

(
(
 $ 1,346,480

6,909)
$ 1,339,571		 $ 334,029

6,157)
$ 327,872
(
 $ 2,672,361

63,599)
$ 2,608,762
(
 $ 4,737,487

81,100)
$ 4,656,387

June 30, 2020

Based on the number of overdue days


Gross carrying amount

Loss allowance
(Lifetime ECLs)

Amortized cost
 Upto 60 Days Upto 60 Days


61～90 Days

$ 10,940


-

$ 10,940
 Over 91 Days Over 91 Days

(
 Total

(
 $ 2,292,657
4,651)
$ 2,288,006
(
 $ 3,202
1,979)
$ 1,223		 $ 2,306,799
6,630)
$ 2,300,169

Based on credit quality

Based on credit quality
Gross carrying amount

Loss allowance (Lifetime ECLs)

Amortized cost
 Credit Rating
A
$ 452,974

(
3,828)

$ 449,146
 Credit Rating
B		 Credit Rating
C
$ 568,419

(
7,873)

$ 560,546
 Others
$ 1,688,196


67,949)

$ 1,620,247
 Total

(
(
 $ 634,081

5,575)
$ 628,506
(
(
(
 $ 3,343,670

85,225)
$ 3,258,445

The aging schedule of notes and accounts receivable with loss reserve measured based on credit quality was as follows:

Not past due

Up to 60 days

Over 60 days

 June 30,2021
$ 4,732,562


510,950

222,520

$ 5,466,032
 December 31,
2020
$ 4,220,397

357,902


159,188

$ 4,737,487
 June 30,2020


$ 3,235,761

90,100

17,809
$ 3,343,670

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

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

Balance at January
Less: Impairment losses
reversed
Less: Amounts written off
during the period as
uncollectible
Foreign exchange Translation
gains and losses
Balance on December 31		 January 1 to June
30,2021
$ 90,056
1,448
(
2,505 )
(
280)
$ 88,719		 January 1 to June
30,2020
$ 93,648
(
1,351 )
-
(
442)
$ 91,855
  • 22 -

b. Other receivables

Other receivables mainly consisted of tax refund receivable, lent material fees receivable. 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 from as of June 30, 2021 and as of December 31, 2020 and June 30.

11. INVENTORIES

INVENTORIES
Finished goods

Work in progress
Raw materials

Supplies
Inventory in transit

 June 30,2021
$ 3,165,986

467,121
1,991,165

376,270

38,220

$ 6,038,762
 December 31,
2020
$ 2,068,989

387,559
1,345,791

331,030

162,859

$ 4,296,228
 June 30,2020









$ 1,981,142
354,348
1,323,009
351,297
36,558
$ 4,046,354

The costs of inventories recognized as cost of goods sold for the years from April 1 to June 30, 2021 and 2020 and from January 1 to June 30, 2021 and 2020 were $13,455,770 thousand, $9,347,960 thousand, $25,193,506 thousand and $18,865,118 thousand, respectively.

The inventory net realization profits contained in sales cost and losses on inventory value recoveries for the years from April 1 to June 30, 2021 and 2020 and from January 1 to June 30, 2021 and 2020 were $19,091 thousand and $12,649 thousand, $ 6,991 thousand and $20,072 thousand, respectively.

12. DISCONTINUED OPERATIONS

On October 24, 2011, the board of directors of Subsidiary China General Plastics Corporation (“CGPC”) approved to dispose of CGPC (Zhong Shan) Co., Ltd. and CGPC Consumer Products Corporation.USI Corp. took into account the fact that the discontinued unit has resumed its operations, therefore, the amount of the prior period shall be re-expressed and the consolidated financial statement for the comparison period shall be recompiled in accordance with the provisions of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations in the preparation of the comparative consolidated financial statements for the continued unit reversed from discontinued unit from 2021. The consolidated income statement from April 1 to June 30, 2020 and from January 1 to June 30, 2020 has the following effects:

  • 23 -
Effect of Comprehensive
Income from April 1 to June 30,
2020

Administration expenses

Interest income
Other income
Other gains and losses

Effects on net profit of the
period
Effect of Comprehensive
Income from January 1 to June
30,2020

Administration expenses

Interest income
Other income
Other gains and losses

Effects on net profit of the
period		 Amount before
Re-compilatio
n
( $ 291,812 )
31,119
138,988

29,785

($ 91,920)

Amount before
Re-compilatio
n
( $ 589,663 )
60,372
168,200
(
22,382)

($ 383,473)
 Amount of
Effect

( $ 2,120 )

61

6,544
(
3,748)

$ 737

Amount of
Effect

( $ 4,469 )

121

13,068
(
7,264)

$ 1,456
 Amount after
Re-compilatio
n
( $ 293,932 )

31,180

145,532

26,037
($ 91,183)
Amount after
Re-compilatio
n
( $ 594,132 )

60,493

181,268
(
29,646)
($ 382,017)

13. SUBSIDIARIES

  • a. Subsidiaries included in the consolidated financial statements:

  • The consolidated financial statements are prepared by the following subjects:

Investor Investee Name of Activities Proportion of Ownership (%)
December
31,2020
June 30,
2020

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%

99.9%
100.0%
100.0%
100.0%
100.0%
94.4%

93.2%

-
-
100.0%
100.0%
100.0%
100.0%

-
30.4%

-
10.0%

-
10.0%

-
30.4%
-

15.0%
-

95.8%

70.0%
70.0%
8.3%

8.3%
78.3%

78.3%		 of Ownership (%)
December
31,2020
June 30,
2020

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%

99.9%
100.0%
100.0%
100.0%
100.0%
94.4%

93.2%

-
-
100.0%
100.0%
100.0%
100.0%

-
30.4%

-
10.0%

-
10.0%

-
30.4%
-

15.0%
-

95.8%

70.0%
70.0%
8.3%

8.3%
78.3%

78.3%		 Remark
June 30,
2021
100.0%

100.0%

100.0%

100.0%

99.9%

100.0%

100.0%

94.4%

100.0%
-

100.0%

-
-
-
-
-

-

70.0%
8.3%

78.3%
 December
31,2020
100.0%

100.0%

100.0%

100.0%

99.9%

100.0%

100.0%

94.4%


-
100.0%

100.0%


-

-

-

-
-

-


70.0%
8.3%

78.3%
The Company








The Company

Cypress Epoch Limited
The Company

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

Asia Polymer Corporation
(“APC”)		 USI Investment Co., Ltd.
(USII)

Swanlake Traders Ltd.
（Swanlake）

USI Far East (HK) Co., Ltd.

USI Management Consulting
Corp (“UM”)

Chong Loong Trading Co.,
Ltd. (“CLT”)

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

Cypress Epoch Limited

INOMA Corporation
(INOMA)

Usig (Shanghai) Co., Ltd.

Thintec Materials Corporation
(“TMC”)


Taiwan United Venture Capital
Corp. (“TUVC”)
 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













100.0%
100.0%
100.0%
100.0%
99.9%
100.0%
100.0%
93.2%

-
100.0%
100.0%

30.4%

10.0%

10.0%

30.4%
15.0%
95.8%

70.0%
8.3%
78.3%		 7.
1.
.
2.




3.
  • 24 -

(Continued)

)
Investor Investee Name of Activities
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
Reinvestment business
Reinvestment business
Reinvestment business
Manufacturing and marketing
of manganese-zinc soft
ferrite core
Reinvestment business
Manufacturing and marketing
of manganese-zinc soft
ferrite core
Production and marketing of
low-density polyethylene,
medium-density
polyethylene, ethylene vinyl
acetate and importing and
marketing of linear
low-density polyethylene
and high-density
polyethylene
Reinvestment business
Reinvestment business
Investment business
Management of chemical
products, equipment and
plastic products and whole
sale of electronic materials,
commission agency services
and related supporting
import and export services		 Proportion of Ownership (%) Remark
June 30,
2021
40.6%
8.0%
4.9%

53.5%

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

44.6%

50.9%
34.0%
9.2%
0.2%

94.3%

51.3%
16.6%
16.7%
5.4%

90.0%

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%
 December
31,2020		 June 30,
2020
The Company

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

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

Acme Electronics Corp.
Asia Polymer Corporation
USIFE Investment Co.,
Ltd
Acme Electronics Corp.

APC (BVI) Holding Co.,
Ltd.
Swanlake Traders Ltd.
Taita (BVI) Holding
Co,Ltd.
Acme Electronics Corp.


ACME Electronics
(Cayman) Corp.


Golden Amber Enterprises
Limited

Union Polymer Int’l
Investment Corp.

China General Terminal &
Distribution Co.
USIFE Investment Co.,
Ltd.
Taiwan VCM Corporation
Asia Polymer Corporation
Asia Polymer Corporation
APC (BVI) Holding Co.,
Ltd.
Asia Polymer Corporation
APC (BVI) Holding Co.,
Ltd.
 Swanson Plastics Corp.
(“SPC”)


Acme Electronics Corp.
(“ACME”)


USI Optronics Corporation
(“USIO”)


ACME Electronics (Cayman)
Corp.

Golden Amber Enterprises
Limited

ACME Electronics (BVI)Corp.
Acme Electronics (Kunshan)
Co., Ltd.

ACME Components
(Malaysia) Sdn.Bhd.

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

Asia Polymer Corporation
(“APC”)


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

USI International Corp.

APC Investment Corporation

USI Trading（Shanghai）
Co.,Ltd.
40.6%

8.0%
4.9%

53.5%


26.9%

1.7%

9.3%

3.3%

2.4%
1.0%

44.6%


50.9%

34.0%

9.2%
0.2%

94.3%


51.3%

16.6%

11.2%
5.4%

84.5%

100.0%

-

100.0%

100.0%

100.0%


36.1%

0.9%

0.3%
-

37.3%

100.0%


70.0%
30.0%

100.0%

100.0%

100.0%




































40.6%

8.0%
4.5%
53.1%

26.9%

1.7%

9.3%

3.3%

2.4%
1.0%
44.6%

50.9%

34.0%

9.2%
0.2%
94.3%

51.3%

16.6%

11.2%
5.4%
84.5%
100.0%
-
100.0%
100.0%
100.0%

36.1%

0.9%

0.3%
-
37.3%
100.0%

70.0%
30.0%
100.0%
100.0%
100.0%

4.





16.






5.
6.



7 and
16.
7.
  • 25 -

(Continued)

)
Investor Investee Name of Activities Proportion of Ownership (%) R e m a rk
June 30,
2021
36.8%
0.6%
0.4%

37.8%

100.0%

100.0%

100.0%

25.0%
8.0%
2.0%
0.5%
0.1%

35.6%

87.3%

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%

1.0%
99.0%

100.0%

70.0%
15.0%
15.0%

100.0%
 December
31,2020

36.8%

0.6%
0.4%

37.8%

100.0%

100.0%

100.0%


25.0%

8.0%

2.0%

0.5%
0.1%

35.6%

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%


1.0%
99.0%

100.0%


70.0%

15.0%
15.0%

100.0%
 June 30,
2020
Union Polymer Int’l
Investment Corp.

China General Terminal &
Distribution Co.
USIFE Investment Co.,
Ltd.
TTC Chemical Company,
Ltd.

Taita (BVI) Holding Co,
Ltd.


Union Polymer Int’l
Investment Corp.

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




CGPC (BVI) Holding Co.,
Ltd.


China General Plastics
Corporation

TTC 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.		 TTC Chemical Company, Ltd.
(“TTC”)

Taita (BVI) Holding Co, Ltd.
（Taita (BVI)）

TTC Chemical (Zhong Shan)
Co., Ltd. (“TTC (ZS)”)

TTC Chemical (Tianjin) Co.,
Ltd. (“TTC (TJ)”)

China General Plastics
Corporation (“CGPC”)


Taiwan VCM Corporation
(“TVCM”) )

CGPC (BVI) Holding Co.,
Ltd.

CGPC America Corporation

CGPC Polymer Corporation
(“CGPCPOL”)

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

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


Reinvestment business

Production and marketing of
polystyrene derivatives

Production and marketing of
polystyrene derivatives

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


Manufacture and marketing of
vinyl chloride monomer and
related petrochemical products

Reinvestment business

Marketing of PVC two- or
three-time processed products

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
Manufacturing 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

























36.8%

0.6%
0.4%
37.8%
100.0%
100.0%
100.0%

25.0%

8.0%

2.0%

0.5%
0.1%
35.6%
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%

16.
8.
8.
9.




16.
10.
11.
11.


12.
  • 26 -

(Continued)

)
Investor Investee Name of Activities Proportion of Ownership (%) Remark
June 30,
2021
$ 100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

59.1%
40.9%

100.0%

67.4%

85.0%
 December
31,2020
$ 100.0%

100.0%

100.0%

100.0%

100.0%

100.0%


59.1%
40.9%

100.0%

67.4%

85.0%
 June 30,
2020
Swanson Plastics
Company Ltd.
(Singapore)



Swanson International
Ltd.


A.S. Holdings (UK)
Limited

The Company

Asia Polymer Corporation
Ever Conquest Global
Limited

Ever Victory Global
Limited
 Swanson Plastics (Malaysia)
Sdn.Bhd.

Swanson Plastics (India)
Private Limited

Swanson Plastics (Tianjin)
Co., Ltd.

A.S.Holdings (UK) Limited

Swanson Plastics (Kunshan)
Corp.

API-Swanson (Kunshan) Co.,
Ltd.

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

Dynamic Ever Investments
Limited (“DEIL”)
 Production and marketing of
plastic products

Production and marketing of
plastic products

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

Reinvestment

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

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

Investment business


Investment business

Investment business








$ 100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

60.2%
39.8%
100.0%
71.0%
85.3%
14.
14, 15
and16.
14 and
15.

  • 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). In order to simplify the investment structure, the Company was approved by the Investment Commission, Ministry of Economics Affairs (Investment Commission) on January 25, 2021 to change its indirect investment in Usig (Shanghai) Co., Ltd. in the mainland, so it was changed to direct investment in Usig (Shanghai) Co., Ltd. in the mainland after approval.

  • 3). 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.

  • 4). USI Investment Co., Ltd. (USII) obtained 4.5% equity from external shareholders of Swanson Plastics Corporation (SPC) in 2020 based on medium

  • 27 -

and long-term investment strategy, and obtained a price of $84,399 thousand yuan.

  • 5). On January 21, 2021, Swanlake obtained 5.42% equity from the external shareholders of Acme Electronics (Cayman) Corp. approved by the Investment Commission, MOEA with the purchase price of $2,172 thousand. After the purchase of equity, the proportion of equity held by the Group in Acme Electronics (Cayman) Corp. increased from 84.53% to 89.95%. Since the transaction does not change the Group's control over the subsidiary, it is treated as an equity transaction, and the difference arising from the said equity transaction of the Group is an adjustment to increase the capital reserve of $3,564 thousand.

  • 6). 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.

  • 7). 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), but yet to complete it till August 5, 2021.

  • 8). The boards of TAITA (BVI) resolved on December 3, 2020 to establish a new company, with an investment of RMB 314,000 thousand. The main business of the new company is expected to be the production and sales of expandable polystyrene (EPS), but yet to complete it till August 5, 2021.

  • 9). The management of TTC decided to suspend the production of TTC (Tianjin) from April 2019 due to the assessment of the demand reduction of its subsidiary TTC (Tianjin) in the local market. Please refer to Note 15 for relevant explanation.

  • 10). Based on the medium and long term investment strategy, the Group acquired 26 thousand shares of Taiwan VCM Corporation (TVCM) from external shareholders in March 2021 at a price of $ 447 thousand. After the purchase of shares, the equity proportion of the Group to Taiwan VCM Corporation (TVCM) increased from 87.22% to 87.23%. As these transactions did not

  • 28 -

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 $7 thousand.

  1. In October 2011, the Board of Directors of CGPC decided to dissolve and liquidate CGPZS and CGPCCP However, the Company will lease the idle plants of the discontinued units from 2021 onwards, considering that the operations of the discontinued units are no longer in a state of discontinued operations. Accordingly, it is assessed that the discontinued units will be transferred back to a continuing entity. Please refer to Note 12.

  2. 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 May 2020. Forum Pacific Trading Ltd. had completed the process of liquidation on December 29, 2020.

  3. In response to the government's green power policy, the Company purchased 100% of the equity from the non-related parties, Xuanju Co., Ltd. on July 5, 2021 at a purchase price of $34,092 thousand, which was confirmed to the Board of Directors on July 8, 2021.

  4. As of June 30, 2021, the Company and APC invested capital amounted to US$246,670 thousand (around NT$7,645,981 thousand) and US$170,475 thousand (around NT$5,255,587 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 67.4%. For more detailed explanation, please refer to 15. and Note 38.

  5. In March and December 2020, ECGL did not participate in the cash capital increase of EVGL according to the original shareholding ratio, and in April and December 2020, ECGL did not invest in DEIL according to the original shareholding ratio through EVGL. After the capital increase, the equity proportion of EVGL held by the combined company decreased from 80.0% to 67.4%, and the equity proportion of DEIL held by EVGL decreased from 89.9% to 85.0%. 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 $34,896 thousand.

  6. 29 -

  7. This is a subsidiary with material non-controlling interests.

The financial statements of major subsidiaries CGPC, TTC, UPIIC, ECGL, EVGL and DEIL and some non-major subsidiaries as ACEM, ACME (Cayman), TVCM, CGPCPOL, APC and TAITA (ZS) and TAITA (TJ) included in the consolidated financial statements as from January 1 to June 30, 2021 and 2020 have been reviewed by the accountants.

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

Na me o fSu bs id iary
CGPC
TTC
ACME
APC
EVGL		 Proportion of Ownership and Voting Rights Held
by Non-controllingInterests		 Proportion of Ownership and Voting Rights Held
by Non-controllingInterests		 Proportion of Ownership and Voting Rights Held
by Non-controllingInterests
June30,2021
64.4%
62.2%
55.4%
62.7%
32.6%
December 31,
2020
64.4%
62.2%
55.4%
62.7%
32.6%		 June30,2020
64.3%
62.2%
55.4%
62.7%
29.0%

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

N a m e o f
S u b s i d i a ry		 Profit (Loss) Allocated to
Non-controllingInterests		 Profit (Loss) Allocated to
Non-controllingInterests		 Profit (Loss) Allocated to
Non-controllingInterests		 Profit (Loss) Allocated to
Non-controllingInterests		 Accumula ted Non-controllingI Non-controllingI nterests
April 1 to June
30,2021		 April 1 to June
30,2020




(		 Janaury1 to
June 30,2021
Janaury1 to
June 30,2020		 June 30,2021
December 31,
2020		 June 30,2020
CGPC

TTC

ACME

APC

EVGL



(		 $ 359,427

$ 343,316

$ 6,546

$ 624,329

$ 7,675)
 (



(		 $ 36,311)
$ 206,495
$ 19,470
$ 149,664
$ 6,188)		 $ 902,995

$ 652,773

$ 10,981

$ 999,877

$ 8,876)



(		 $ 168,221

$ 298,161

$ 16,742

$ 248,703

$ 16,505)



$ 6,382,196

$ 4,654,692

$ 714,137

$ 9,204,762

$ 5,904,515



$ 6,187,422

$ 3,885,632

$ 716,599

$ 7,574,659

$ 5.988,872



$ 5,297,448
$ 2,864,686
$ 690,910
$ 6,255,262
$ 4,817,082

The summarized financial information in respect of each of the Group’s subsidiaries below represents amounts before intra-group eliminations: CGPC and CGPC’s subsidiaries

Current assets

Non-current assets
Current liabilities

Non-current liabilities

Equity

Equity attributable to:
Owners of CGPC

Non-controlling
interests of CGPC
Non-controlling
interests of CGPC’s
subsidiaries

 June30,2021
$ 7,323,226
8,556,208
(
3,818,288 )
(
1,322,774)

$ 10,738,372

$ 3,739,561

6,382,196

616,615

$ 10,738,372
 December 31,
2020

$ 5,874,585

8,019,040
(
2,220,603 )
(
1,369,264)

$ 10,303,758

$ 3,516,093

6,187,422

600,243

$ 10,303,758
 June30,2020
$ 4,844,812

7,638,170
(
1,864,014 )
(
1,890,074)
$ 8,728,894
$ 2,961,422

5,297,448

470,024
$ 8,728,894
  • 30 -
April 1 to June
30,2021
Revenue
$ 4,575,908

Profit for the period
$ 593,284
Other comprehensive
income (loss) for the
period

6,371

Total comprehensive
income for the period
$ 599,655

Profit attributable to:
Owners of CGPC
$ 187,233
Non-controlling
interests of
CGPC
359,427
Non-controlling
interests of
CGPC’s
subsidiaries

46,624

$ 593,284

Total comprehensive
income attributable
to:
Owners of CGPC
$ 180,536

Non-controlling
interests of
CGPC
372,326
Non-controlling
interests of
CGPC’s
subsidiaries

46,793

$ 599,655

Net cash inflow (outflow)
from:
Operating activities
Investing activities
Financing activities
Effects of exchange rate
changes
Net cash inflow (outflow)		 April 1 to June
30,2021		 April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
$ 2,287,056
$ 9,554,573
$ 5,878,270
( $ 64,699 ) $ 1,480,060
$ 284,005

18,691

40,924

15,775
($ 46,008)
$ 1,520,984
$ 299,780
( $ 18,915 ) $ 470,390
$ 87,630
(
36,311 )
902,995
168,221
(
9,473)

106,675

28,154
($ 64,699)
$ 1,480,060
$ 284,005
$ 16,362
$ 559,138
$ 77,223
(
52,969 )
854,951
194,360
(
9,401)

106,895

28,197
($ 46,008)
$ 1,520,984
$ 299,780
January 1 to June
30,2021
January 1 to June
30,2020
$ 884,424
$ 151,544
(
903,463 )
(
462,490 )
260,841
263,718
(
2,051)
(
5,904)
$ 239,751
($ 53,132)		 April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
$ 2,287,056
$ 9,554,573
$ 5,878,270
( $ 64,699 ) $ 1,480,060
$ 284,005

18,691

40,924

15,775
($ 46,008)
$ 1,520,984
$ 299,780
( $ 18,915 ) $ 470,390
$ 87,630
(
36,311 )
902,995
168,221
(
9,473)

106,675

28,154
($ 64,699)
$ 1,480,060
$ 284,005
$ 16,362
$ 559,138
$ 77,223
(
52,969 )
854,951
194,360
(
9,401)

106,895

28,197
($ 46,008)
$ 1,520,984
$ 299,780
January 1 to June
30,2021
January 1 to June
30,2020
$ 884,424
$ 151,544
(
903,463 )
(
462,490 )
260,841
263,718
(
2,051)
(
5,904)
$ 239,751
($ 53,132)		 April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
$ 2,287,056
$ 9,554,573
$ 5,878,270
( $ 64,699 ) $ 1,480,060
$ 284,005

18,691

40,924

15,775
($ 46,008)
$ 1,520,984
$ 299,780
( $ 18,915 ) $ 470,390
$ 87,630
(
36,311 )
902,995
168,221
(
9,473)

106,675

28,154
($ 64,699)
$ 1,480,060
$ 284,005
$ 16,362
$ 559,138
$ 77,223
(
52,969 )
854,951
194,360
(
9,401)

106,895

28,197
($ 46,008)
$ 1,520,984
$ 299,780
January 1 to June
30,2021
January 1 to June
30,2020
$ 884,424
$ 151,544
(
903,463 )
(
462,490 )
260,841
263,718
(
2,051)
(
5,904)
$ 239,751
($ 53,132)

(
(
(
(
(		 $ 151,544

462,490 )
263,718
5,904)
$ 53,132)

TTC and TTC’s subsidiaries

TTC and TTC’s subsidiaries
Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity
 June 30,2021
$ 7,110,315

3,516,107

( 2,308,025 )
(
721,902)

$ 7,596,495
 December 31,
2020

$ 5,942,120

3,303,750

( 2,170,177 )
(
719,887)

$ 6,355,806
 June 30,2020
$ 4,980,698
3,101,804
( 2,527,366 )
(
953,871)
$ 4,601,265
  • 31 -
June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of TTC
$ 2,941,803
$ 2,470,174
$ 1,736,579
Non-controlling
interests of TTC
4,654,692
3,885,632
2,864,686
$ 7,596,495
$ 6,355,806
$ 4,601,265
A
C
M
E
a
n
d
A
C
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow)
from:
Operating activities
$ 285,305
$ 847,468
Investing activities
(
63,570 )
(
102,925 )
Financing activities
(
1,325 )
(
259,381 )
Effects of exchange rate
changes
(
21,867)
(
32,922)
Net cash inflow
$ 198,543
$ 452,240
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 5,567,940
$ 3,566,900
$ 10,104,088
$ 6,524,985
Profit for the period
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
~~Ot~~her
comprehensive
income (loss) for the
period

159,668

19,416

209,888
(
69,064)
Total
comprehensive
income for the period
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763
Profit attributable to:
Owners of TTC
$ 198,816
$ 119,582
$ 378,024
$ 172,666
Non-controlling
interests of TTC

343,316

206,495

652,773

298,161
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
Total
comprehensive
income
attributable
to:
Owners of TTC
$ 258,436
$ 140,609
$ 466,005
$ 153,774
Non-controlling
interests of TTC

443,364

204,884

774,680

247,989
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763		 June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of TTC
$ 2,941,803
$ 2,470,174
$ 1,736,579
Non-controlling
interests of TTC
4,654,692
3,885,632
2,864,686
$ 7,596,495
$ 6,355,806
$ 4,601,265
A
C
M
E
a
n
d
A
C
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow)
from:
Operating activities
$ 285,305
$ 847,468
Investing activities
(
63,570 )
(
102,925 )
Financing activities
(
1,325 )
(
259,381 )
Effects of exchange rate
changes
(
21,867)
(
32,922)
Net cash inflow
$ 198,543
$ 452,240
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 5,567,940
$ 3,566,900
$ 10,104,088
$ 6,524,985
Profit for the period
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
~~Ot~~her
comprehensive
income (loss) for the
period

159,668

19,416

209,888
(
69,064)
Total
comprehensive
income for the period
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763
Profit attributable to:
Owners of TTC
$ 198,816
$ 119,582
$ 378,024
$ 172,666
Non-controlling
interests of TTC

343,316

206,495

652,773

298,161
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
Total
comprehensive
income
attributable
to:
Owners of TTC
$ 258,436
$ 140,609
$ 466,005
$ 153,774
Non-controlling
interests of TTC

443,364

204,884

774,680

247,989
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763		 June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of TTC
$ 2,941,803
$ 2,470,174
$ 1,736,579
Non-controlling
interests of TTC
4,654,692
3,885,632
2,864,686
$ 7,596,495
$ 6,355,806
$ 4,601,265
A
C
M
E
a
n
d
A
C
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow)
from:
Operating activities
$ 285,305
$ 847,468
Investing activities
(
63,570 )
(
102,925 )
Financing activities
(
1,325 )
(
259,381 )
Effects of exchange rate
changes
(
21,867)
(
32,922)
Net cash inflow
$ 198,543
$ 452,240
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 5,567,940
$ 3,566,900
$ 10,104,088
$ 6,524,985
Profit for the period
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
~~Ot~~her
comprehensive
income (loss) for the
period

159,668

19,416

209,888
(
69,064)
Total
comprehensive
income for the period
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763
Profit attributable to:
Owners of TTC
$ 198,816
$ 119,582
$ 378,024
$ 172,666
Non-controlling
interests of TTC

343,316

206,495

652,773

298,161
$ 542,132
$ 326,077
$ 1,030,797
$ 470,827
Total
comprehensive
income
attributable
to:
Owners of TTC
$ 258,436
$ 140,609
$ 466,005
$ 153,774
Non-controlling
interests of TTC

443,364

204,884

774,680

247,989
$ 701,800
$ 345,493
$ 1,240,685
$ 401,763

(
(
(
 $ 847,468

102,925 )

259,381 )
32,922)
$ 452,240
ACME and ACME’s subsidiaries
June30,2021
Current assets
$ 2,097,467

Non-current assets
1,774,930

Current liabilities
( 1,271,396 )
Non-current liabilities
(
728,347)

Equity
$ 1,872,654
 December 31,
2020		 June30,2020
$ 1,853,191
1,659,454
( 1,124,802 )
(
590,486)
$ 1,797,357
Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity
$ 1,886,912

1,679,406

( 1,161,937 )
(
519,306)

$ 1,885,075
  • 32 -
June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of ACME
$ 578,800
$ 580,765
$ 552,389
Non-controlling
interests of ACME
714,137
716,599
690,910
Non-controlling
interests of
ACME’s
subsidiaries

579,717

587,711

554,058
$ 1,872,654
$ 1,885,075
$ 1,797,357
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 766,345
$ 549,224
$ 1,444,943
$ 1,062,259
Profit for the period
$ 20,648 $ 36,100 $ 29,975 $ 27,372
Other comprehensive
income (loss) for the
period
(
16,593)
(
29,573)
(
42,396)
(
65,624)
Total comprehensive
income for the period$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
Profit attributable to:
Owners of ACME
$ 5,227
$ 15,544
$ 8,768
$ 13,366
Non-controlling
interests of
ACME
6,546
19,470
10,981
16,742
Non-controlling
interests of
ACME’s
subsidiaries

8,875

1,086

10,226
(
2,736)
$ 20,648
$ 36,100
$ 29,975
$ 27,372
Total comprehensive
income attributable to:
Owners of ACME
$ 637 $ 6,556 ( $ 1,965 ) ( $ 4,072 )
Non-controlling
interests of
ACME
796
8,211 (
2,462 ) (
5,101 )
Non-controlling
interests of
ACME’s
subsidiaries

2,622
(
8,240)
(
7,994)
(
29,079)
$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow) from:
Operating activities
( $ 21,793 )
$ 65,396
Investing activities
(
184,050 )
12,364
Financing activities
203,386
49,420
Effects of exchange rate
changes
(
28,839)
(
49,206)
Net cash (outflow) inflow
($ 31,296)
$ 77,974		 June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of ACME
$ 578,800
$ 580,765
$ 552,389
Non-controlling
interests of ACME
714,137
716,599
690,910
Non-controlling
interests of
ACME’s
subsidiaries

579,717

587,711

554,058
$ 1,872,654
$ 1,885,075
$ 1,797,357
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 766,345
$ 549,224
$ 1,444,943
$ 1,062,259
Profit for the period
$ 20,648 $ 36,100 $ 29,975 $ 27,372
Other comprehensive
income (loss) for the
period
(
16,593)
(
29,573)
(
42,396)
(
65,624)
Total comprehensive
income for the period$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
Profit attributable to:
Owners of ACME
$ 5,227
$ 15,544
$ 8,768
$ 13,366
Non-controlling
interests of
ACME
6,546
19,470
10,981
16,742
Non-controlling
interests of
ACME’s
subsidiaries

8,875

1,086

10,226
(
2,736)
$ 20,648
$ 36,100
$ 29,975
$ 27,372
Total comprehensive
income attributable to:
Owners of ACME
$ 637 $ 6,556 ( $ 1,965 ) ( $ 4,072 )
Non-controlling
interests of
ACME
796
8,211 (
2,462 ) (
5,101 )
Non-controlling
interests of
ACME’s
subsidiaries

2,622
(
8,240)
(
7,994)
(
29,079)
$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow) from:
Operating activities
( $ 21,793 )
$ 65,396
Investing activities
(
184,050 )
12,364
Financing activities
203,386
49,420
Effects of exchange rate
changes
(
28,839)
(
49,206)
Net cash (outflow) inflow
($ 31,296)
$ 77,974		 June 30,2021
December 31,
2020
June 30,2020
Equity attributable to:
Owners of ACME
$ 578,800
$ 580,765
$ 552,389
Non-controlling
interests of ACME
714,137
716,599
690,910
Non-controlling
interests of
ACME’s
subsidiaries

579,717

587,711

554,058
$ 1,872,654
$ 1,885,075
$ 1,797,357
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Revenue
$ 766,345
$ 549,224
$ 1,444,943
$ 1,062,259
Profit for the period
$ 20,648 $ 36,100 $ 29,975 $ 27,372
Other comprehensive
income (loss) for the
period
(
16,593)
(
29,573)
(
42,396)
(
65,624)
Total comprehensive
income for the period$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
Profit attributable to:
Owners of ACME
$ 5,227
$ 15,544
$ 8,768
$ 13,366
Non-controlling
interests of
ACME
6,546
19,470
10,981
16,742
Non-controlling
interests of
ACME’s
subsidiaries

8,875

1,086

10,226
(
2,736)
$ 20,648
$ 36,100
$ 29,975
$ 27,372
Total comprehensive
income attributable to:
Owners of ACME
$ 637 $ 6,556 ( $ 1,965 ) ( $ 4,072 )
Non-controlling
interests of
ACME
796
8,211 (
2,462 ) (
5,101 )
Non-controlling
interests of
ACME’s
subsidiaries

2,622
(
8,240)
(
7,994)
(
29,079)
$ 4,055
$ 6,527
($ 12,421)
($ 38,252)
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow) from:
Operating activities
( $ 21,793 )
$ 65,396
Investing activities
(
184,050 )
12,364
Financing activities
203,386
49,420
Effects of exchange rate
changes
(
28,839)
(
49,206)
Net cash (outflow) inflow
($ 31,296)
$ 77,974		 June 30,2020

(
 $ 65,396
12,364
49,420
49,206)
$ 77,974
  • 33 -

APC and APC’s subsidiaries

APC and APC’s subsidiaries APC and APC’s subsidiaries APC and APC’s subsidiaries
June 30,2021
December 31,
2020
June 30,2020
Current assets
$ 3,426,338 $ 2,964,269 $ 2,978,369
Non-current assets
15,445,079 13,919,234 12,253,249
Current liabilities
(
2,049,393 ) (
1,479,196 ) (
1,923,374 )
Non-current liabilities
(
1,729,620)
(
3,294,762)
(
3,312,075)
Equity
$ 15,092,404
$ 12,109,545
$ 9,996,169
Equity attributable to:
Owners of APC
$ 5,887,642 $ 4,534,886 $ 3,740,907
Non-controlling
interests of APC

9,204,762

7,574,659

6,255,262
$ 15,092,404
$ 12,109,545
$ 9,996,169
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June30,2021
January 1 to
June30,2020
Revenue
$ 2,335,675
$ 1,358,049
$ 4,188,280
$ 2,672,062
Profit for the period
$ 922,852
$ 221,225
$ 1,477,968
$ 367,620
Other comprehensive
income (loss) for the
period

1,113,757

323,378

1,504,872
(
281,214)
Total comprehensive
income for the period
$ 2,036,609
$ 544,603
$ 2,982,840
$ 86,406
Profit attributable to:
Owners of APC
$ 298,523
$ 71,561
$ 478,091
$ 118,917
Non-controlling
interests of APC

624,329

149,664

999,877

248,703
$ 922,852
$ 221,225
$ 1,477,968
$ 367,620
Total comprehensive
income attributable to:
Owners of APC
$ 940,244
$ 294,966
$ 1,330,222 $ 99,068
Non-controlling
interests of APC

1,096,365

249,637

1,652,618
(
12,662)
$ 2,036,609
$ 544,603
$ 2,982,840
$ 86,406
January 1 to June
30,2021
January 1 to June
30,2020
Net cash inflow (outflow) from:
Operating activities
$ 1,433,813
$ 2,092,720
Investing activities
(
179,384 )
(
689,968 )
Financing activities
(
1,280,985 )
(
1,602,677 )
Effects of exchange rate
changes
(
3,961)
(
5,053)
Net cash outflow
($ 30,517)
($ 204,978)

(
(
(
(		 $ 2,092,720

689,968 )

1,602,677 )
5,053)
$ 204,978)
  • 34 -

EVGL and EVGL’s subsidiaries

Current assets

Non-current assets

Current liabilities

Equity

Equity attributable to:
Owners of EVGL

Non-controlling
interests of EVGL
Non-controlling
interests of EVGL’s
subsidiaries

 June 30,2021
$ 1,266,752
19,908,120

11,553)

$ 21,163,319

$ 12,208,977

5,904,515
3,049,827

$ 21,163,319
 December 31,
2020

$ 1,309,763
20,170,030

15,128)

$ 21,464,665

$ 12,383,404

5,988,872
3,092,389

$ 21,464,665
 June 30,2020


(

(

(




 $ 1,328,937
18,177,731

11,119)
$ 19,495,549
$ 11,818,248

4,817,082
2,860,219
$ 19,495,549
  • 35 -
Cash flow
Operating activities
Investing activities
Financing activities
Effects of exchange rate
changes
Net cash (outflow) inflow
April 1 to June
30,2021
Loss for the period
( $ 27,777 )
Other comprehensive
income(loss) for the
period
(
167,857)

Total comprehensive
income (loss) for the
period
($ 195,634)

Loss attributable to:
Owners of EVGL
( $ 15,872 )
Non-controlling
interests of EVGL
(
7,675 )
Non-controlling
interests of
EVGL’s
subsidiaries
(
4,230)

($ 27,777)

Total comprehensive loss
attributable to:
Owners of EVGL
( $ 114,075 )
Non-controlling
interests of EVGL
(
55,170 )
Non-controlling
interests of
EVGL’s
subsidiaries
(
26,389)

($ 195,634)
 April 1 to June
30,2021		 January 1 to June
30,2021
January 1 to June
30,2020
( $ 12,149 )
( $ 12,319 )
-
(
3,811,781 )
-
4,006,285
(
28,048)
(
44,215)
($ 40,197)
$ 137,970
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
( $ 25,008 ) ( $ 32,192 ) ( $ 82,288 )
(
375,442)
(
269,154)
(
475,638)
($ 400,450)
($ 301,346)
($ 557,926)
( $ 15,181 ) ( $ 18,354 ) ( $ 56,470 )
(
6,188 ) (
8,876 ) (
16,505 )
(
3,639)
(
4,962)
(
9,313)
($ 25,008)
($ 32,192)
($ 82,288)
( $ 245,597 ) ( $ 174,427 ) ( $ 359,473 )
(
100,419 ) (
84,357 ) (
128,408 )
(
54,434)
(
42,562)
(
70,045)
($ 400,450)
($ 301,346)
($ 557,926)		 January 1 to June
30,2021
January 1 to June
30,2020
( $ 12,149 )
( $ 12,319 )
-
(
3,811,781 )
-
4,006,285
(
28,048)
(
44,215)
($ 40,197)
$ 137,970
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
( $ 25,008 ) ( $ 32,192 ) ( $ 82,288 )
(
375,442)
(
269,154)
(
475,638)
($ 400,450)
($ 301,346)
($ 557,926)
( $ 15,181 ) ( $ 18,354 ) ( $ 56,470 )
(
6,188 ) (
8,876 ) (
16,505 )
(
3,639)
(
4,962)
(
9,313)
($ 25,008)
($ 32,192)
($ 82,288)
( $ 245,597 ) ( $ 174,427 ) ( $ 359,473 )
(
100,419 ) (
84,357 ) (
128,408 )
(
54,434)
(
42,562)
(
70,045)
($ 400,450)
($ 301,346)
($ 557,926)		 January 1 to June
30,2021
January 1 to June
30,2020
( $ 12,149 )
( $ 12,319 )
-
(
3,811,781 )
-
4,006,285
(
28,048)
(
44,215)
($ 40,197)
$ 137,970
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
( $ 25,008 ) ( $ 32,192 ) ( $ 82,288 )
(
375,442)
(
269,154)
(
475,638)
($ 400,450)
($ 301,346)
($ 557,926)
( $ 15,181 ) ( $ 18,354 ) ( $ 56,470 )
(
6,188 ) (
8,876 ) (
16,505 )
(
3,639)
(
4,962)
(
9,313)
($ 25,008)
($ 32,192)
($ 82,288)
( $ 245,597 ) ( $ 174,427 ) ( $ 359,473 )
(
100,419 ) (
84,357 ) (
128,408 )
(
54,434)
(
42,562)
(
70,045)
($ 400,450)
($ 301,346)
($ 557,926)
January 1 to
June 30,2020
(
(
(		 (
(
(
 $ 12,319 )

3,811,781 )
4,006,285
44,215)
$ 137,970

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in joint ventures
Associates that are
individually material
Fujian Gulei
Petrochemical Co.,
Ltd. (“Gulei”)		 June 30,2021
$ 19,908,120
 December 31,
2020
$ 20,170,030
 June 30,2020
$ 18,177,731

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

  • 36 -

The percentage of the Group’s ownership and voting rights was 50% of the outstanding shares of Gulei as of June 30, 2021, December 31, 2020 and June 30, 2020. 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.

for equity accounting purposes. for equity accounting purposes. for equity accounting purposes.
June30,2021
December 31,
2020
June30,2020
Cash
$ 6,329,325
$ 4,356,714
$ 5,720,657
Current assets
$ 11,585,513 $ 5,785,331 $ 5,938,657
Non-current assets
86,746,588 82,025,858 60,397,329
Current liabilities
( 12,796,109 ) ( 10,734,400 ) ( 14,927,778 )
Non-current liabilities
(45,719,752)
(36,736,729)
(15,052,747)
Equity
39,816,240 40,340,060 36,355,461
Proportion of the Group’s
ownership

50%

50%

50%
Equity attributable to the
Group
$ 19,908,120
$ 20,170,030
$ 18,177,731
Carrying amount
$ 19,908,120
$ 20,170,030
$ 18,177,731
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Shares attributable to the
Group
Net (loss) profit of the
period
($ 22,792)
($ 26,675)
($ 20,805)
($ 69,795)		 June30,2020


( $ 20,805) ( $ 69,795)

Gulei had no significant operating income for the years ended January 1 to June 30, 2021 and 2020.

The share of profit and loss and other comprehensive income of a joint venture and the Group using the equity method for the period of January 1 to June 30, 2021 and 2020 shall be calculated on the basis of the financial statements which have not been reviewed by accountants.

  • 37 -

15. PROPERTY, PLANT AND EQUIPMENT

Freehold land

Land improvements
Building improvements
Machinery and equipment

Transportation equipment
Other equipment
Construction in progress and
equipment under installation
 June 30,2021
$ 4,682,237
6,272
3,812,659
10,982,703
39,265
296,624
3,782,428
$ 23,602,188
 December 31,
2020
$ 4,682,237

6,954

3,974,587
11,626,815

46,935

321,524
2,510,261

$ 23,169,313
 June 30,2020

















$ 4,682,237

7,475

4,017,092
11,898,121

47,301

277,909
2,058,203
$ 22,988,338

According to Rule No. 1072133080 issued by the Land Administration Department of the New Taipei City Government on November 7, 2018, the Company’s land and buildings in Linkou which were recognized under property, plant and equipment are within the scope of the “Linkou City Land Rezoning Area”. Part of the land will be reclaimed, and a portion of this reclaimed land is expected to be returned in 2022. Based on the area’s land reclamation regulations, when the Company reclaims the land, it does not have the obligation to dismantle the existing buildings on the land, nor does it have the obligation to set up factories in the area after reclamation is complete; its only obligation is to vacate the existing buildings. The Company is also not required to repay or satisfy any other obligations with respect to the compensation fees obtained from moving out of the various existing buildings, incentives for automatic relocation and compensation for operating losses after the buildings on the reclaimed land have been handed over. The Company received relevant compensation and incentives of $192,994 thousand in 2019, and recognized relevant compensation income of $155,710 thousand after offsetting the cost of original land and buildings.

In cooperation with the Taiwan International Ports Corporation, Ltd. (Ports Co.), Ministry of Transportation and Communications, to relocate the petrochemical oil storage tank facilities of the old port area operators, CGTD leased the port facilities and storage areas of the Kaohsiung Port Intercontinental Container Center Second Phase Petrochemical Oil Storage and Transportation Center from Ports Co., the lease period being from August 1, 2017 to July 31, 2042, rent paid quarterly. In addition, the boards of directors of the Company, CGTD, APC and TVCM, a subsidiary of CGPC, resolved in 2019 to build the second phase of the Intercontinental Petrochemical Oil Products Center, and signed a turnkey project agreement with CTCI Corporation on October 7,

  • 38 -

2019, with a total investment price of $3,380,107 thousand. As of June 30, 2021, the Group had paid $2,247,580 thousand for the project, which was accounted for under construction in progress.

For the years ended December 31, 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.

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 $22,078 thousand in 2020, which was reported under cost of goods sold in the consolidated statements of comprehensive income.

No impairment or reversal was made on the property, plant and equipment of the Group for the period from January 1 to June 30, 2021 and 2020.

The property, plant and equipment of the Group is depreciated on a straight line basis according to the following years of service:

Land improvements 7-20 years
Building improvements
Plant,
machine		 room and
improvements 2-55 years
Office
building,		 labs and
improvements 10-60 years
Storage rooms 11-45 years
Others 2-40 years
Machinery and equipment 2-26 years
Transportation equipment 2-15 years
Other equipment 2-31 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.

  • 39 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Right-of-use assets
Carrying amounts
Leasehold land

Land use rights
Buildings
Machinery and
equipment
Transportation
equipment

 June 30,2021
$ 163,907

136,873
318,238
48,851

2,340

$ 670,209
 December 31,
2020
$ 164,180

336,967
148,111
53,510

2,183

$ 704,951
 June 30,2020






$ 175,646
335,885
155,573
55,210
636
$ 722,950
E
x
c
e
p
t
Addition for right-of-use
assets
Depreciation charge for
right-of-use assets
Leasehold land

Land use rights
Buildings
Machinery
and
equipment
Transportation
equipment
 April 1 to June
30,2021
$ 5,425

3,632
5,391
2,018

252
$ 16,718
 April 1 to June
30,2020

$ 3,837

3,774
6,921
1,966

125

$ 16,623
 January 1 to
June 30,2021		 January 1 to
June 30,2021
January 1 to
June 30,2020
January 1 to
June 30,2020







$ 16,584
$ 9,409

8,065
11,392
4,058
455
$ 33,379


$ 847
$ 7,665
7,953
13,907
3,978
346
$ 33,849

Except for the recognition of depreciation expense, the Group’s right-of-use assets did not experience significant sub-lease or impairments for the years ended January 1 to June 30, 2021 and 2020.

The Group leases the office in Taipei and sublets it to another company on a operating lease basis. 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.

Part of right-of-use assets of the Group pledged as collateral for bank borrowings are set out in Notes 19 and 36.

b. Lease liabilities

  • 40 -
Carrying amounts
Current

Non-current
 June30,2021
$ 56,080

$ 378,510
 December 31,
2020
$ 75,284

$ 384,402
 June30,2020 June30,2020



$ 68,291
$ 421,214

Range of discount rate for lease liabilities was as follows:

Lease land

Buildings

Machinery

Transportation equipment		 June30,2021
0.83%～9.25%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%		 December 31,
2020
0.83%～9.25%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%		 June30,2020
0.83%～9.25%
1.04%～2.00%
1.04%～1.16%
1.06%～1.25%
  • c. Material lease-in activities and terms

The Group leases buildings for use as factories, offices, dormitories and R&D centers for a period of one to seven 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).

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		 April 1 to June
30,2021
$ 13,719

$ 220
$ 11,080		 April 1 to June
30,2020
$ 10,066

$ 405
$ 11,293		 January 1 to
June 30,2021		 January 1 to
June 30,2021
January 1 to
June 30,2020
$ 19,908
$ 780
$ 22,050
($ 80,563)
January 1 to
June 30,2020
$ 19,908
$ 780
$ 22,050
($ 80,563)







(		 $ 27,096
$ 480
$ 19,311
$ 84,390)		 $ 19,908
$ 780
$ 22,050
$ 80,563)

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.

  • 41 -

17. INVESTMENT PROPERTIES

Cost
Balance at January 1, 2021

Addition
Net foreign currency
exchange differences

Balance at June 30, 2021

Accumulated depreciation
and impairment
Balance at January 1, 2021

Depreciation expenses
Net foreign currency
exchange differences

Balance at June 30, 2021

Net profit as at June 30,
2021

Cost
Balance at January 1, 2020

Classified as real estate,
plant and equipment
Net foreign currency
exchange differences

Balance at June 30, 2020

Accumulated depreciation
and impairment
Balance at January 1, 2020

Depreciation expenses
Classified as real estate,
plant and equipment
Net foreign currency
exchange differences

Balance at June 30, 2020

Net profit as at June 30,
2020

Completed investment
properties
Land

Building
Right of use assets


June 30, 2021 Buildings
Right-of-use
assets
Total
$ 736,810
$ 203,817
$ 1,145,322
-
-
55
5,666))
(
1,150)
(
6,816)
$ 731,144
$ 202,667
$ 1,138,561
$ 352,327
$ 35,806
$ 392,102
12,437
8,947
21,384
3,522))
(
95)
(
3,617)
$ 361,242
$ 44,658
$ 409,869
$ 369,902
$ 158,009
$ 728,692
$ 738,314
$ 205,110
$ 1,062,446

1,752) )
-
(
1,752 )
9,162))
(
2,471)
(
11,633)
$ 727,400
$ 202,639
$ 1,049,061
$ 326,570
$ 18,199
$ 348,738
12,361
9,088
21,449

717) )
-
(
717 )
6,054))
(
116)
(
6,170)
$ 332,160
$ 27,171
$ 363,300
$ 395,240
$ 175,468
$ 685,761
December 31,
2020
December 31,
2020
$ 200,726
$ 115,053
384,483
395,240

168,011

175,468
$ 753,220
$ 685,761		 Buildings
Right-of-use
assets
Total
$ 736,810
$ 203,817
$ 1,145,322
-
-
55
5,666))
(
1,150)
(
6,816)
$ 731,144
$ 202,667
$ 1,138,561
$ 352,327
$ 35,806
$ 392,102
12,437
8,947
21,384
3,522))
(
95)
(
3,617)
$ 361,242
$ 44,658
$ 409,869
$ 369,902
$ 158,009
$ 728,692
$ 738,314
$ 205,110
$ 1,062,446

1,752) )
-
(
1,752 )
9,162))
(
2,471)
(
11,633)
$ 727,400
$ 202,639
$ 1,049,061
$ 326,570
$ 18,199
$ 348,738
12,361
9,088
21,449

717) )
-
(
717 )
6,054))
(
116)
(
6,170)
$ 332,160
$ 27,171
$ 363,300
$ 395,240
$ 175,468
$ 685,761
December 31,
2020
December 31,
2020
$ 200,726
$ 115,053
384,483
395,240

168,011

175,468
$ 753,220
$ 685,761		 Buildings
Right-of-use
assets
Total
$ 736,810
$ 203,817
$ 1,145,322
-
-
55
5,666))
(
1,150)
(
6,816)
$ 731,144
$ 202,667
$ 1,138,561
$ 352,327
$ 35,806
$ 392,102
12,437
8,947
21,384
3,522))
(
95)
(
3,617)
$ 361,242
$ 44,658
$ 409,869
$ 369,902
$ 158,009
$ 728,692
$ 738,314
$ 205,110
$ 1,062,446

1,752) )
-
(
1,752 )
9,162))
(
2,471)
(
11,633)
$ 727,400
$ 202,639
$ 1,049,061
$ 326,570
$ 18,199
$ 348,738
12,361
9,088
21,449

717) )
-
(
717 )
6,054))
(
116)
(
6,170)
$ 332,160
$ 27,171
$ 363,300
$ 395,240
$ 175,468
$ 685,761
December 31,
2020
December 31,
2020
$ 200,726
$ 115,053
384,483
395,240

168,011

175,468
$ 753,220
$ 685,761
Land
$ 204,695

55
-

$ 204,750

$ 3,969

-
-

$ 3,969

$ 200,781

$ 119,022

-

-

$ 119,022

$ 3,969

-
-

-

$ 3,969

$ 115,053


$ 200,781
369,903
158,008
$ 728,692














(


(



(
(


(
(

(


(



(
(


(
(

 $ 1,145,322

55
6,816)
$ 1,138,561
$ 392,102
21,384
3,617)
$ 409,869
$ 728,692
$ 1,062,446

1,752 )
11,633)
$ 1,049,061
$ 348,738
21,449

717 )
6,170)
$ 363,300
$ 685,761
  • 42 -

The investment property is the sublease of the Group’s free-held and leased offices in Taipei to other companies on an operating lease for a period of 1 to 8 years with an option to extend the lease. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend.

Total rent receivable of investment properties under operating lease as of June 30, 2021, December 31, 2020 and June 30, 2020 were:

Year 1

Year 2
Year 3
Year 4
Year 5
More than 5 years

 June30,2021
$ 88,875

65,818
50,262
30,424
13,661

32,328

$ 281,368
 December 31,
2020

$ 68,752

50,357
40,458
25,068
13,340

23,178

$ 221,153
 June30,2020 June30,2020






$ 68,645
50,589
37,842
29,419
18,966
29,377
$ 234,838

Except for the recognition of depreciation expense, there is no significant addition, disposal or impairment of the investment properties of the Group during the period from January 1 to June 30, 2021 and 2020.

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

Buildings 3-55 years Right-of-use assets 3-27years

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

  • 43 -

to the net amount of the expected lease income after deducting all the expected payments.

The fair values of investment properties as of June 30, 2021, December 31, 2020 and June 30, 2020 were as follows:

Fair value
 June 30,2021
$ 1,775,718
 December 31,
2020

$ 1,540,756
 June 30,2020 June 30,2020
$ 1,321,011

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

 June30,2021
$ 269,026

$ 1,374

7,726

$ 9,100
 December 31,
2020

$ 269,026

$ 1,863


8,944

$ 10,807
 June30,2020 June30,2020









$ 269,026
$ 3,775
8,449
$ 12,224
  • a. Goodwill

The goodwill of the Group is regularly assessed for impairment at the end of each year. There is no impairment sign during June 30, 2021 and 2020 so the impairment assessment is not carried out.

  • b. Other intangible assets

Except for the recognition of amortization expenses, there is no significant addition, disposal or impairment of other intangible assets of the Group during January 1 to June 30, 2021 and 2020.

The above-mentioned intangible assets with limited service life are amortized on a straight line basis according to the following service years:

Technology royalties and patent 3 to 7 years
Computer software 1 to 3 years
Others 5 to 7 years
  • 44 -

19. BORROWINGS

a. Short-term borrowings

b.
c.		 Unsecured borrowings
-Line of credit borrowings
Range of interest rates

Short-term bills payable
Bills payable

Less:
Unamortized
discount
on
bills
payable

Range of interest rates

Long-term borrowings
Secured borrowings

Line of credit borrowings
Subtotal

Bill payable
Unamortized discount on
bills payable
Subtotal


Less: Maturity within one
year
Long-term borrowings

Range of interest rates
Secured borrowings

Line of credit
borrowings
Bill payable		 June30,2021
$ 2,602,029

0.74%～1.78%
June30,2021
$ 564,000

(
394)
$ 563,606

0.64%～1.068%
June30,2021
$ 480,000

3,940,000

4,420,000

-

-

-

4,420,000


-
$ 4,420,000

1.00%～1.11%
0.74%～1.04%
-		 December 31,
2020

$ 2,726,270

0.52%～2.89%
December 31,
2020

$ 657,000

(
296)

$ 656,704

0.53%～1.098%
December 31,
2020

$ 640,000

6,950,000

7,590,000

-

-


-

7,590,000


-

$ 7,590,000

1.00%～1.11%
0.74%～1.04%
-		 June30,2020
$ 4,319,048
0.61%～3.08%
June30,2020
$ 1,071,000
(
178)
$ 1,070,822
0.35%～1.29%
June30,2020
$ 1,443,200
6,550,000
7,993,200
80,000
(
172)

79,828
8,073,028
(
120,000)
$ 7,953,028
0.94%～1.11%
0.85%～1.14%
1.358%

In order to replenish the medium and long term working capital, The Company has signed medium and long term credit contracts with the bank with a total credit

  • 45 -

line of $ 4,496,500 thousand. The credit contract period will be up to June 2025, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $300,000 thousand had been spent.

In order to replenish the medium and long term working capital, UPIIC has signed medium and long term credit contracts with the bank with a total credit line of $ 2,3000,000 thousand. The credit contract period will be up to November 2023, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $1,000,000 thousand had been spent.

In order to replenish the medium and long term working capital, CGPCP has signed medium and long term credit contracts with the bank with a total credit line of $ 1,000,000 thousand. The credit contract period will be up to August 2023, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, none had been spent.

In order to replenish the medium and long term working capital, TVCM has signed medium and long term credit contracts with the bank with a total credit line of $ 1,100,000 thousand. The credit contract period will be up to September 2023, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $ 50,000 had been spent.

In order to replenish the medium and long term working capital, TTC has signed medium and long term credit contracts with the bank with a total credit line of $ 1,450,000 thousand. The credit contract period will be up to May 2024, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $ 300,000 had been spent.

In order to replenish the medium and long term working capital, APC has signed medium and long term credit contracts with the bank with a total credit line of $ 5,650,000 thousand. The credit contract period will be up to June 2024, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $ 1,500,00 had been spent.

In order to replenish the medium and long term working capital, ACME has signed medium and long term credit contracts with the bank with a total credit line of $ 600,000 thousand. The credit contract period will be up to May 2026, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $ 540,000 had been spent.

  • 46 -

In order to replenish the medium and long term working capital, SPC has signed medium and long term credit contracts with the bank with a total credit line of $ 930,000 thousand. The credit contract period will be up to Janaury 1, 2024, and the total credit line will be recycled within the limited term of the contract. As of June 30, 2021, $ 730,000 had been spent.

According to the loan contracts of part of subsidiaries, the current ratio, bank loan ratio, debt ratio, and interest protection multiples should not be less than the specified percentage. The subsidiaries should provide improvements to the bank if the requirements were not met. As of June 30, 2021, the subsidiaries did not violate the requirements.

20. BONDS PAYABLE

BONDS PAYABLE
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
Domestic unsecured bonds
110-1A - issuance on June
23 2021, 5 years, total
amount $1,000,000
thousand, coupon rate
0.63%, bullet repayment,		 June30,2021
$ 1,000,000

2,000,000

2,000,000

2,000,000

1,000,000		 December 31,
2020

$ 1,000,000

2,000,000

2,000,000

2,000,000

-		 June30,2020
$ 1,000,000
2,000,000
2,000,000
2,000,000
-
  • 47 -

December 31, 2020 June 30, 2020

June 30, 2021

repaid $ 500,000 in the 4th
and 5thyears respectively
from the issuance date
Domestic unsecured bonds
110-1B - issuance on June
23 2021, 7 years, total
amount $1,000,000
thousand, coupon rate
0.73%, bullet repayment,
repaid $500,000 in the 6th
and 7thyears respectively
from the issuance date

Discounts on bonds payable


Less: Maturity within one
year

(

(
 1,000,000

9,000,000


8,546)

8,991,454

2,999,528)

$ 5,991,926

(

(
 -

7,000,000


5,698)

6,994,302

1,999,233)

$ 4,995,069

(


 -
7,000,000

7,190)
6,992,810
-
$ 6,992,810

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

In October 2016, the Company applied for the first issuance of unsecured ordinary corporate bonds issued in 2016 with the amount of $2,000,000 thousand in order to reimburse the bank loans, and 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 June 2021, the Company applied for the first issuance of unsecured ordinary corporate bonds issued in 2021 with the amount of $2,000,000 thousand in order to

  • 48 -

reimburse the bank loans, and the unsecured ordinary corporate bonds with a 5-to-7-year maturity, due for repayment, were all issued in June 2021.

21. NOTES AND ACCOUNTS PAYABLE


Operating
Accounts payable
 June30,2021
$ 4,017,891
 December 31,
2020

$ 3,406,837
 June30,2020 June30,2020
$ 2,118,759

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.

22. OTHER PAYABLES

THER PAYABLES

Current
Other payables
Payables for salaries and
bonuses
Paybales for equipment
Payables for water and
electricity and gas
Payables for freight
Payables for interests
Payables for buy-in
stocks
Payables for professional
service expenses
Payables for purchase in
proxy
Payables for insurance
Payable for taxes
Others


Other liabilities
Refund liabilities

 June 30,2021
$ 964,123

211,907
271,911
263,694
37,693
195,498
23,369
82,730
33,330
21,298

560,116

2,665,669


25,898

$ 2,691,567
 December 31,
2020

$ 1,112,278

104,811
246,183
234,550
41,056
-
27,655
-
27,262
68,251

282,813

2,144,839


16,390

$ 2,161,229
 June 30,2020













$ 555,457
207,614
222,165
132,470
39,803
-
23,030
-
31,462
44,495
412,456
1,668,952
17,355
$ 1,686,307

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.

  • 49 -

23. PROVISIONS

PROVISIONS
Non-current
Litigation provision
 June 30,2021
$ 136,375
 December 31,
2020

$ 136,375
 June 30,2020
$ 136,375

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

For the period from April 1 to June 30, 2021 and 2020 and from January 1 to June 30, 2021 and 2020 the pension costs associated with the defined benefit plan are calculated at the pension cost rates as determined by actuarial calculations as at 31 December 2020 and 2019 and are separately recognized as the following items:

Operating costs

Selling and marketing
expenses
Administrative management
expenses
R & D expenses
Other gains and losses

 April 1 to June
30,2021
$ 6,150

623
1,038
270

-

$ 8,081
 April 1 to June
30,2021
$ 7,473

786
1,206
344

52

$ 9,861
 January 1 to
June30,2021		 January 1 to
June30,2021
January 1 to
June30,2020
January 1 to
June30,2020






$ 12,390

1,203
5,422
532
-

$ 19,547

$ 15,125
1,585
2,418
695
101
$ 19,924

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. As of June 30, 2021, December 31, 2020 and June 30, 2020 the amounts of deferred income (booked under other current liabilities) that had not been amortized were RMB8,098 thousand

  • 50 -

(NTD$34,922 thousand), RMB8,363 thousand (NTD$36,502 thousand) and RMB8,268 thousand (NTD$36,109 thousand) respectively.

b. Affected by the global pandemic of COVID-19, the Group has applied to the government for subsidies for items such as salary and operating capital. As of December 31, 2020, $8,367 thousand has been obtained and accounted as operating expenses and other incomes. In addition, in accordance with the policy of the local government in China, ACME (KS), ACME (GZ) and TAITA (CS) have gained exemption from the pension, unemployment and work-related injury insurances borne by the company from February to December 2020, and ACME (KS) and ACME (GZ) have gained preferential electricity fee reduction, exemption, and subsidies due to good pandemic containment.

According to the information available on the balance sheet date, the Group has taken the economic impact of the epidemic into account.

26. EQUITY

UITY
Share capital

Capital surplus
Retained earnings

Other equity items
Treasury shares

Non-controlling interests

 June30,2021
$ 11,887,635
363,757
10,862,854
187,105
(
475,606 )
29,042,228

$ 51,867,973
 December 31,
2020

$ 11,887,635

321,798

9,497,146
(
240,195 )
(
475,606 )
27,732,865

$ 48,723,643
 June30,2020
$ 11,887,635

341,249

7,665,009
(
950,804 )
(
475,606 )
23,715,959
$ 42,183,442

a. Share capital

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

Number of shares issued
and fully paid (in
thousands)
Shares issued
 June30,2021
1,342,602

$ 13,426,024

1,188,763

$ 11,887,635
 December 31,
2020

1,342,602

$ 13,426,024

1,188,763

$ 11,887,635
 June30,2020









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.

  • 51 -

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 issuance of ordinary shares in excess of par value, the capital stock premium of shares issued due to merger, and treasury stock trading, etc) 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 Association, 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 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.

  • 52 -

The Company held the Board of Directors’ Meeting on March 8, 2021 and the Regular Meeting of Shareholders on June 12, 2020 to propose and adopt the following earnings distribution plans for the year 2020 and 2019, respectively:


Legal reserve

Special reserve
(reversed)

Cash dividends

 Appropriation of Earnings
2019
$ 129,872

350,533

594,382

$ 1,074,787		 Dividends Per Share(NT$)
2020
$ 233,461
(
405,932 )
1,188,763

$ 1,016,292
 2020


$ 1		 2019



$ 0.5

In response to the FSC’s announcement on “Measures to Postpone the Shareholders’ Meeting of public Companies in Response to the Epidemics”, the Company has suspended the Shareholders’ Meeting originally scheduled to be held on July 26, 2021.However, the profit distribution plan in 2020 has reached the statutory resolution standard through electronic voting, and the Company has adjusted and accounted it.

d.

Other equity items

  • 1). Exchange differences on translating the financial statements of foreign operations

January 1 to June 30, January 1 to June 30, 2021 2020 Balance at January 1 ( $ 583,855 ) ( $ 602,871 ) Recognized during the period Exchange differences on translating foreign operations ( 223,213 ) ( 334,694 ) Income tax 36,777 59,409 Disposal of subsidiaries’ equity - ( 68 ) Balance at December 31 ( $ 770,291 ) ( $ 878,224 )

  • 53 -

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

Balance at January 1
Recognized during the
period
Unrealized gain
Equity
instruments
Related income tax
The cumulative profit or
loss of the disposed
equity instrument
transferred to
retained earnings
Balance at December 31
e.
Non-controlling interests
Balance at January 1
Cash dividend to subsidiary
shareholders
Net 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
Equity from disposal of
subsidiaries
Adjustments
relating
to
changes accounted for using
the equity method
Changes
in
non-controlling
interests
Balance at March 31		 January 1 to June 30
2021
$ 343,660
614,487
(
751 )

-
$ 957,396
January 1 to June
30,2021
$ 27,732,865
(
806,085 )
2,720,174
(
276,290 )
20,305
( $ 249,022 )
(
1,571 )
-
172
(
98,320)
$ 29,042,228		 January 1 to June 30,
2020		 January 1 to June 30,
2020
( $ 178,187 )
96,252
92

9,263
($ 72,580)
January 1 to June
30,2020
$ 20,517,444
(
519,048 )
800,551
(
396,882 )
32,352
( $ 20,912 )
191
(
85 )
(
50,680 )

3,353,028
$ 23,715,959
  • 54 -

f. Treasury shares

Treasury shares
Purpose of Buy-Back
January 1 to June 30, 2021
Transfer from investment
shares to treasury shares
held by subsidiaries
under equity method
January 1 to June 30, 2020
Transfer from investment
shares to treasury shares
held by subsidiaries
under equity method		 Number of
Shares at
January 1
(In Thousands of
Shares)
116,466

116,466
 Increase
During the
Period
-

-
 Decrease
During the
Period
-

-
 Number of
Shares at
March 31
(In Thousands of
Shares)




116,466
116,466

The Company’s shares held by its subsidiaries at the balance sheet date were as follows:

follows:
Name of Subsidiary
June 30, 2021
Asia Polymer Corporation
(“APC”)
Taita Chemical Company,
Limited (“TTC”)
June 30, 2020
APC
TTC
June 30, 2020
APC
TTC		 Number of
Shares Held
(In Thousands
of Shares)
101,356

15,110


101,356

15,110


101,356

15,110

 Carrying
Amount
(In Thousands
of Shares)
$ 1,377,381

81,875

$ 1,459,256

$ 1,377,381

81,875

$ 1,459,256

$ 1,377,381

81,875

$ 1,459,256
 Market Price
(In Thousands
of Shares)
















$ 3,658,940
545,467
$ 4,204,407
$ 2,290,638
341,484
$ 2,632,122
$ 1,195,997
178,297
$ 1,374,294

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

The Company’s shares held by APC and TTC were carried as unrealized gain (loss) on financial assets at FVTOCI and valued at the closing price of June 30, 2021

  • 55 -

and December 31, 2020 and June 30, 2020. For the unrealized gains and losses of financial assets measured at FVTOCI, the Company has adjusted the amount of unrealized gains and losses of investment with equity method and financial assets measured at FVTOCI on account according to shareholding ratio. The amount of unrealized gains or losses is $908,084 (gain) thousand, $390,637 (gain) thousand and $23,320 (loss) thousand, respectively.

27. REVENUE

REVENUE
Product sales revenue
Plastic materials

Electronic materials
Others

Total
 April 1 to June
30,2021
$ 16,849,193
752,043

145,522

$ 17,746,758
 April 1 to June
30,2020
$ 10,194,165

542,632

119,597

$ 10,856,394
 January 1 to
June 30,2021
$ 32,240,360

1,422,214
278,362

$ 33,940,936
 January 1 to
June 30,2020











$ 20,907,061

1,053,264
252,477
$ 22,212,802

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

Contract balances

Contract balances

Notes and accounts receivables
(Note 10)

Contracted liabilities (recognizing
other current liabilities)

Product sales
 June 30,2021
$ 8,693,080

$ 316,934
 December 31,
2020

$ 7,481,916

$ 212,751
 June 30,2020
$ 5,558,614

$ 171,500
 January1,2020





$ 7,045,512
$ 151,664

28. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

a. Interest income

Interest income
Interest incomes
Cash and cash
equivalents

Beneficial Securities
Financial assets
measured
at
amortized cost
Others


Other income
Dividend revenue

Indemnity income
Rental income		 April 1 to June
30,2021
$ 18,837

3,109
74

44

$ 22,064

April 1 to June
30,2021
$ 104,248

-
24,226		 April 1 to June
30,2020
$ 25,916

3,730
1,495

39

$ 31,180

April 1 to June
30,2020
$ 69,324

22,544
20,428		 January 1 to
June30,2021
$ 36,548

3,109
279

96

$ 40,032

January 1 to
June 30,2021
$ 104,248

-
48,378
January 1 to
June30,2020
$ 54,924
3,730
1,737

102
$ 60,493

January 1 to
June 30,2020
$ 69,324
22,544
36,773

b. Other income

  • 56 -
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
Income from grants
(Note 25)
7,963
3,885
8,861
Income from
management services
(Note 35)
9,552
7,289
18,719
Others

30,137

22,062

47,124

$ 176,126
$ 145,532
$ 227,330

c.
Other gains and losses
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
Gain on disposal of
property, plant and
equipment-net
( $ 73,519 ) ( $ 17,747 ) ( $ 72,287 )
Net foreign
exchange loss-net(
105,557 ) (
62,467 ) (
134,167 )
Net gain (loss) on
financial assets and
financial liabilities at
FVTPL
328,727
129,334
410,767
Impairment gains
(losses) recognized on
non-financial assets
(
1,491 )
719
(
2,432 )
Depreciation expense of
investment property
(
10,815 ) (
9,647 ) (
23,130 )
Lease modification
benefits
660
-
660
Other gains or losses
(
9,663)
(
14,155)
(
19,076)

$ 128,342
$ 26,037
$ 160,335

d.
Finance costs
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
Interest on bank loans
$ 20,245
$ 36,409
$ 42,103

Interest on bonds
payable
20,221
19,893
40,120
Other interest expense
9
21
20
Interest on lease
liabilities
1,665
1,847
3,389
Less: Capitalized interest
(included in
construction in
progress)
(
682)
(
629)
(
1,541)

$ 41,458
$ 57,541
$ 84,091

Information about capitalized interest is as follows:
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
Capitalized interest
$ 682
$ 629
$ 1,541

Capitalization rate
0.83%～1.14% 0.72%～1.23% 0.83%～1.14%
January 1 to
June 30,2020
4,457
14,779

33,391
$ 181,268

January 1 to
June 30,2020
( $ 17,867 )
(
36,949 )

83,152
(
575 )
(
21,449 )

-
(
35,958)
($ 29,646)

January 1 to
June 30,2020
$ 80,340
41,107
36
3,750
(
1,228)
$ 124,005

January 1 to
June 30,2020
$ 1,228
0.71%～1.23%
  • 57 -

e. Depreciation and amortization

Depreciation and amortization
April 1 to June
30,2021
Property, plant and
equipment
$ 542,688

Right-of-use assets
16,718
Investment properties
10,790
Intangible assets
895
Others

15,338

$ 586,429

Analysis of depreciation
by function
Operating costs
$ 524,645

Operating expenses
34,786
Other gains and
losses

10,765

$ 570,196

Analysis of amortization
by function
Operating cost
$ 14,890

Selling expenses
-
General
and
administrative
expenses
1,064
R & D expenses

279

$ 16,233

Employee benefits expense
April 1 to June
30,2021
Post-employment
benefits (Note 24)
Defined contribution
plans
$ 41,755

Defined benefit plans
8,081

49,836
Other employee benefits
1,305,938

Total employee benefits
expense
$ 1,355,774

Analysis of employee
benefits expense by
function
Operating costs
$ 899,777

Operating expenses
455,997
Non-operating profits
or losses

-

$ 1,355,774
 April 1 to June
30,2020
$ 535,463
16,622
9,648
2,521

15,277

$ 579,531

$ 526,195

25,890

9,648
$ 561,733

$ 15,259

135
666

1,738

$ 17,798

April 1 to June
30,2020
$ 26,562

9,861

36,423

990,153

$ 1,026,576
$ 643,804

366,608

16,164
$ 1,026,576
 January 1 to
June30,2021
$ 1,083,895

33,379
21,384
1,815

29,258

$ 1,169,731

$ 1,047,558

67,970

23,130

$ 1,138,658

$ 28,378

-
2,126

569

$ 31,073

January 1 to
June 30,2021
$ 77,158


19,547

96,705

2,515,957

$ 2,612,662

$ 1,854,115

758,547

-

$ 2,612,662
January 1 to
June30,2020
$ 1,082,733
33,849
21,449
5,301

29,188
$ 1,172,520
$ 1,062,355
54,227

21,449
$ 1,138,031
$ 29,150
271
1,575

3,493
$ 34,489

January 1 to
June 30,2020


















$ 58,802
19,924
78,726
2,068,259
$ 2,146,985
$ 1,428,518
698,238
20,229
$ 2,146,985

f. Employee benefits expense

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

  • 58 -

income tax. The employees’ compensation and remuneration of directors for the years ended April 1 to June 30, 2021 and 2020 and from January 1 to June 30, 2021 and 2020 are as follows:

Accrual rates

Accrual rates Accrual rates Accrual rates
Employees’ compensation
Remuneration of directors
Amount
April 1 to June
30,2021
Employees’
compensation
$ 15,361

Remuneration
of
directors
$ 750
 January 1 to June
30,2021
January 1 to June
30,2020
1.00%
1.00%
0.05%
0.49%
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
$ 3,135
$ 29,547
$ 5,613
$ 1,375
$ 1,500
$ 2,750		 January 1 to June
30,2020
1.00%
0.05%
April 1 to June
30,2020
$ 3,135
$ 1,375		 1.00%
0.49%

January 1 to
June 30,2020

$ 15,361

$ 750

$ 5,613
$ 2,750

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

The employees’ compensation and remuneration of directors for 2020 and 2019 were resolved by the board of directors on March 8, 2021 and March 9, 2020, respectively:

respectively:
Employees’ compensation
Remuneration of directors		 2020
$ 25,892
$ 3,000		 2019


$ 14,793
$ 5,500

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, 2020 and 2019.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange. h. Gain or loss on foreign currency exchange

Total foreign exchange
gains
Total foreign exchange
losses
Net (loss) gain
 April 1 to June
30,2021		 April 1 to June
30,2021		 April 1 to June
30,2020
$ 8,172
(
70,639)
($ 62,467)
 January 1 to
June 30,2021
$ 146,564

(
280,731)

($ 134,167)
January 1 to
June 30,2020
January 1 to
June 30,2020

(
(		 $ 19,316

124,873)

$ 105,557)
(
(
(
(		 $ 111,697
148,646)
$ 36,949)
  • 59 -

29. INCOME TAX RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

Current tax
In respect of the
current year
Additional levy on
undistributed
earnings
Previous
year’s
adjustment

Deferred tax
In respect of the
current year
Previous
year’s
adjustment

Income
tax
expense
recognized in profit or
loss		 April 1 to June
30,2021
$ 642,737

65,919
(
11,570)


697,086

21,242

880


22,122

$ 719,208
 April 1 to June
30,2020
$ 147,215


30,217
(
14,241)


163,191

27,630
(
390)


27,240

$ 190,431
 January 1 to
June 30,2021
$ 1,279,340


65,919
(
11,570)


1,333,689

74,902

880


75,782

$ 1,409,471
January 1 to
June 30,2020
January 1 to
June 30,2020

(

(

(

(

(

(

 $ 354,531

30,217
14,241)
370,507
63,878
390)
63,488
$ 433,995

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.

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
 April 1 to June
30,2021
( $ 37,298 )

990

($ 36,308)
 April 1 to June
30,2020
( $ 68,300 )
(
59)

($ 68,359)
 January 1 to
June 30,2021
( $ 57,082 )

2,322

($ 54,760)
January 1 to
June 30,2020
January 1 to
June 30,2020
(

(		 (
(
(		 (

(		 (
(
(		 $ 91,761 )
283)
$ 92,044)
  • 60 -

c. Accreditation of income tax

The income tax return of APC, APCI, TVCM, UM, USII, TUVM, CLT, INOMA, UPIIC, STC, CGTD and USIO as of December 31, 2019 has been assessed by the tax authorities; The income tax return of the Company, TTC, SPC, CGPC and CGPCPOL as of December 31, 2018 has been assessed by the tax authorities; the income tax return of ACME as of December 31, 2017 has been assessed by the tax authorities.

30. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings per
share

Diluted earnings per
share
 April 1 to June
30,2021
$ 1.22

$ 1.22
 April 1 to June
30,2020
$ 0.27

$ 0.27
 January 1 to
June 30,2021
$ 2.38

$ 2.38
January 1 to
June 30,2020
January 1 to
June 30,2020




$ 0.48
$ 0.48

Earnings per share and the weighted average number of ordinary shares used to calculate earnings per share are as follows:

Profit for the period

Profit for the period
Net income attributable to
owners of the
Company (used to
calculate the net
income from basic
and diluted earnings
per share)
 April 1 to June
30,2021
$ 1,305,809
 April 1 to June
30,2020
$ 294,844
 January 1 to
June 30,2021
$ 2,554,471
January 1 to
June 30,2020
$ 511,800

Number of share

Unit: 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
Weighted average number of
ordinary shares used in
the computation of diluted
earnings per share		 April 1 to June
30,2021
1,072,298

818


1,073,116
 April 1 to June
30,2020
1,072,298

456


1,072,754
 January 1 to
June 30,2021
1,072,298

1,260


1,073,558
January 1 to
June 30,2020
January 1 to
June 30,2020




1,072,298
920
1,073,218
  • 61 -

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.

31. SHARE-BASED PAYMENT ARRANGEMENTS

USIO didn’t issue employee share options as of January 1 to June 30, 2021 and 2020. Information on employee share options which were issued was as follows:

Employee share
o p t i o n s
Options exercised
at January 1
and December
31
 January1 to June 30,2021
n
i
t
Weighted
average
Exercise
Price
(
N T
$ )
133
10.8
 January1 to June 30,2020 January1 to June 30,2020
U n
i
t
133		 U n
i
t
133
Weighted
average
Exercise
Price
(
N T
$ )
10.8

32. CASH FLOW INFORMATION

  • a. Non-cash transactions

Except as disclosed in other notes, the following non-cash investing and financing activities of the Group during the period January 1 to June 30, 2021 and 2020 are as follows:

  • 1). As of the year ended June 30, 2021, December 31, 2020 and June 30, 2020, the amounts of payables for purchases of equipment were $211,907 thousand, $104,811 thousand and $207,614 thousand, respectively.

  • 2). As of the year ended June 30, 2021, December 31, 2020 and June 30, 2020, the amounts of payables for dividends declared but not issued were $1,878,649 thousand, $71,694 thousand and $1,057,959thousand, respectively.

  • 62 -

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
Lease liabilities
(including current
portions)
Other non-current
liabilities
 January1,2021 January1,2021 Cash Flows N on-cash Changes Others



June 30,2021
New Leases Allocated
Finance Costs		 Changes in
Foreign
Currency
Exchange Rates


$ 2,726,270

656,704

6,994,302
7,590,000

23,342
459,686

41,000

$ 18,491,304
 (
(
(
(
(
(		 $ 124,241 )

93,000 )
1,995,634

3,170,000 )
2,867

34,114 )

1,067)

$ 1,423,921)





$ -


-

-

-
-

16,584
-

$ 16,584

$ -

-
1,518
-
-
3,389

-

$ 4,907
(

(		 $ -

-

-
-
-

660 )
-

$ 660)
(
(

(		 $ -

98 )
-
-
-

10,295 )
-
$ 10,393)		 $ 2,602,029

563,606
8,991,454
4,420,000
26,209

434,590
39,933
$ 17,077,821

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 on-cash Changes Others


June 30,2020
New Leases Allocated
Finance Costs		 Changes in
Foreign
Currency
Exchange Rates


$ 4,258,980

1,352,810

7,991,283

9,492,970

27,475
552,778

41,778

$ 23,718,074
(
(
(
(
(
(		 $ 60,068


282,000 )

1,000,000 )

1,419,942 )
15,072

34,075 )

1,326)

$ 2,662,203)





$ -


-

-

-
-

847
-

$ 847

$ -

-
1,527
-
-
3,750

-

$ 5,277
(

(		 $ -

-
-
-
-

1,586 )
-

$ 1,586)
(

(		 $ -
12
-
-
-

32,209 )
-
$ 32,197)		 $ 4,319,048
1,070,822
6,992,810
8,073,028
42,547

489,505
40,452
$ 21,028,212

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

June 30, 2021

June 30, 2021
Financial liabilities
Financial liabilities at
amortized cost
-Domestic corporate bonds
 Carrying
Amount		 Fair Value
Level 1
$ -
 Level 2
$ 9,024,008
 Level 3
$ -
 Total
$ 8,991,454
 $ 9,024,008
  • 63 -

December 31, 2020

December 31, 2020
Financial liabilities
Financial liabilities at
amortized cost
-Domestic corporate bonds

June 30, 2020
Financial liabilities
Financial liabilities at
amortized cost
-Domestic corporate bonds
 Carrying
Amount
$ 6,994,302

Carrying
Amount
$ 6,992,810
 Fair Value
Level 1
$ -
 Level 2
Level 3
$ 7,029,198
$ -

Fair Value		 Total
$ 7,029,198
Level 1
$ -
 Level 2
$ 7,032,700
 Level 3
$ -
 Total
$ 7,032,700

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 level

June 30, 2021

June 30, 2021
Financial assets at FVTPL
Derivative financial
assets
Domestic listed shares
and over-the-counter
shares
Mutual funds

Beneficiary certificates
Foreign listed shares

Total

Financial assets at FVTOCI
Equity instrument
-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
Total

Financial liabilities at
FVTPL
Derivative financial
liabilities		 Level 1
-

842,533

4,865,303

224,928

370

5,933,134

1,991,072

-

-

32,402

-

2,023,474

-
 Level 2
7,648

-

-

-

-

7,648

-

-

-

-

-

-

6,383
 Level 3
-

-

-

-

-

-

-

12,567

741,364

-

106,437

860,368

-
 Total








$











$











$











$ 7,648
842,533
4,865,303
224,928
370
$ 5,940,782
$ 1,991,072
12,567
741,364
32,402
106,437
$ 2,883,842
$ 6,383
$ $ $
$ $ $
$ $ $
$ $ $
  • 64 -

December 31, 2020

December 31, 2020
Financial assets at FVTPL

Derivative financial
assets
Domestic listed shares
and over-the-counter
shares
Mutual funds
Beneficiary certificates
Foreign listed shares

Total
Financial assets at FVTOCI
Equity instrument

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

Beneficiary certificates
Foreign listed shares

Total

Financial assets at FVTOCI
Equity instrument
-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
Total
 Level 1
$ -

506,763
4,765,536
233,670
386

$ 5,506,355

$ 1,694,805

-
-
30,566
-

$ 1,725,371

$ -

Level 1
$ -

237,467

4,746,239

212,313

516

$ 5,196,535

$ 1,609,725

-

-

7,089

-

$ 1,616,814
 Level 2
$ 5,328

-
-
-
-

$ 5,328

$ -

-
-
-
-

$ -

$ 20,724

Level 2
$ 8,366

-

-

-

-

$ 8,366

$ -

-

-

-

-

$ -
 Level3
$ -

-
-

-
-

$ -

$ -

9,626
720,833
-
102,826

$ 833,285

$ -

Level3
$ -

-

-

-

-

$ -

$ -

10,495

680,028

-

97,961

$ 788,484
 Total


























$ 5,328
506,763
4,765,536
233,670
386
$ 5,511,683
$ 1,694,805
9,626
720,833
30,566
102,826
$ 2,558,656
$ 20,724
Total








































$ 8,366
237,467
4,746,239
212,313
516
$ 5,204,901
$ 1,609,725
10,495
680,028
7,089
97,961
$ 2,405,298
  • 65 -
Financial liabilities at
FVTPL
Derivatives
 Level 1
$ -
 Level 2
$ 3,783
 Level3
$ -
 Total
$ 3,783

There were no transfers between Levels 1 and 2 in the period from January 1 to June 30, 2021 and 2020.

  • 66 -

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

Financial assets at FVTOCI
Balance at January 1
Purchase
Recognized in other
comprehensive income
(included in unrealized gain
(loss) on financial assets at
FVTOCI)
Disposal
Return of capital
Balance at March 31		 January 1 to June
30, 2021
$ 833,285
24
66,204
-
(
39,145)
$ 860,368		 January 1 to June


(
30, 2020
$ 748,451
-
55,610
(
15,577 )

-
$ 788,484

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

  • Financial Instruments Valuation Techniques and Inputs

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

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

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

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

  • 67 -

fair value will decrease/increase by $86,037 thousand and $78,848 thousand, respectively in years ended from January 1 to June 30., 2021 and 2020.

c. Categories of financial instruments


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

Financial assets measured
at amortized cost

Cash and cash
equivalents

Pledged time and
demand deposits

Investment products

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 and accounts
payable

Other payables (not
including salaries
payable or taxes
payable)

Current portion of
long-term
borrowings

Bonds payable

Long-term borrowings
Guarantee deposits
received
 June30,2021

$ 5,940,782

10,076,508
744,951
-
590,051
8,103,029
362,561
171,873
2,883,842
6,383
2,602,029
563,606
4,017,891
1,680,248
2,999,528
5,991,926
4,420,000
26,209		 December 31,
2020

$ 5,511,683

9,637,007
739,278
-
671,576
6,810,340
293,459
166,993
2,558,656
20,724
2,726,270
656,704
3,406,837
964,310
1,999,233
4,995,069
7,590,000
23,342		 June30,2020
$ 5,204,901
8,685,259
677,573
138,953
406,977
5,151,637
302,401
161,445
2,405,298
3,783
4,319,048
1,070,822
2,118,759
1,069,000
120,000
6,992,810
7,953,028
42,547
  • 68 -

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.

  • a) Foreign currency risk

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

For the carrying amount of monetary assets and monetary liabilities denominated in non-functional currencies of the Group as of the balance sheet date, please refer to note No.39. Please refer to Note 7 for carrying amount of derivative with exchange rate risk.

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 and RMB denominated items). When the Group’s functional currency relative to the USD appreciates/depreciates by 3%, the Group’s profit before tax for period

  • 69 -

from January 1 to June 30, 2021 will decrease/increase by $160,091 thousand; the profit before tax for period from January 1 to June 30, 2020 will decrease/increase by $103,923 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.

b) Interest rate risk

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

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates as of the balance sheet date were as follows:


Fair value interest rate
risk
-Financial assets
-Financial
liabilities

Cash flow interest rate
risk
-Financial assets
-Financial
liabilities		 June30,2021
$ 7,462,733
13,427,450

2,842,043
3,584,229
December 31,
2020

$ 6,090,090
12,084,042

4,057,411

6,342,920		 June30,2020
$ 5,786,515
14,185,518

3,747,078

6,759,695

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

  • 70 -

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 period from January 1 to June 30, 2021 will decrease/increase by $1,855 thousand; the profit before tax for period from January 1 to June 30, 2020 will decrease/increase by $7,532 thousand.

  • c) 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. However, the mutual fund held by the Group are mainly money market funds, and the risk of price fluctuation is very low, so they are not included in the sensitivity analysis.

If equity prices fluctuates by 5%, the pre-tax profit for period from January 1 to June 30, 2021 and 2020 would have increased/decreased by $53,392thousand and $22,515 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for period from January 1 to June 30, 2021 and 2020 would have increased/decreased by $144,192 thousand and $120,265 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

  • 71 -

  • 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.

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

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

June 30, 2021

June 30, 2021
Non-derivative
Non-interest
bearing
liabilities
Lease liabilities
Floating interest
rate liabilities
Fixed interest rate
liabilities		 Weighted
Average
Interest
Rate(%)

0.83-9.25
0.64-1.78
0.25-1.90

 On Demand or
Less than 1
Year
$ 8,562,209
65,038
414,229

5,751,800

$ 14,793,276
 1-5 Years
$ -

239,035

3,170,000

7,250,000

$ 10,659,035
 5+ Years










$ -

296,519

-

-
$ 296,519
  • 72 -

Additional information about the maturity analysis for lease liabilities:

liabilities:
Lease liabilities Less than 1
Year		 1-5 Years 5-10 Years 10-15 Years 15-20 Years
 More than
20 Years
$ 65,038
 $ 239,035
 $ 76,837
 $ 51,759
 $ 52,399
 $ 115,524

December 31, 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
0.52-2.89
0.35-1.90

 On Demand or
Less than 1
Year		 On Demand or
Less than 1
Year



1-5 Years
$ -

248,922

4,990,000

7,600,000

$ 12,838,922
 5+ Years


$ 5,623,370
78,464
1,352,920

4,030,350

$ 11,085,104



$ -

316,663

-

-
$ 316,663

Additional information about the maturity analysis for lease liabilities:

liabilities:
Less than 1
Year
1-5 Years 5-10 Years
Lease liabilities$ 78,464
$ 248,922
$ 92,146

June 30, 2020
Weighted
Average
Interest
Rate(%)
On Demand o
Less than 1
Year
Non-derivative
financial
liabilities
Non-interest
bearing
liabilities
$ 4,845,670
Lease liabilities
0.83-9.25
78,247
Floating interest
rate liabilities
0.81-1.36
856,667
Fixed interest rate
liabilities
0.35-3.08

4,653,381
$ 10,433,965		 Less than 1
Year		 1-5 Years 5-10 Years 10-15 Years 15-20 Years
 More than
20 Years

r		 $






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

4,653,381



$ 10,433,965
  • 73 -

Additional information about the maturity analysis for lease liabilities:

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

b) 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 on the balance sheet date.

June 30, 2021

June 30, 2021
Gross settled
Foreign exchange
forward contracts
-Inflows
-Outflows
December 31, 2020
Gross settled
Foreign exchange
forward contracts
-Inflows

-Outflows


June 30, 2020
Gross settled
Foreign exchange
forward contracts
-Inflows

-Outflows

 On Demand or
Less than
1 Month
$ 988,356

988,563)

$ 207)

On Demand or
Less than
1 Month
$ 914,593

920,172)

$ 5,579)

On Demand or
Less than
1 Month
$ 682,866

679,866)

$ 3,000
 1-3Months
$ 1,747,405

1,801,333)
(
$ 53,928)

1-3Months
$ 1,328,558

1,345,476)

$ 16,918)

1-3Months
$ 1,018,297

1,020,824)
(
$ 2,527)
 3 Months to 1
Year

(
(
(
(		 $ 70,767
(
71,438)
($ 671)
3 Months to 1
Year

(
(
(
(
(
(		 $ 109,690
111,875)
$ 2,185)
3 Months to 1
Year

(
(
(		 $ 60,940
(
62,479)
($ 1,539)
  • 74 -

c) Financing facilities

The Group relies on bank loans as a significant source of liquidity. The amount of unused bank financing of the Group on the balance sheet date is as follows:

==> picture [265 x 25] intentionally omitted <==

Bank loan facilities Amount unused $ 36,498,854 $ 34,248,864 $ 29,390,130

35. TRANSACTIONS WITH RELATED PARTIES

Balances, transactions, profits and expenses 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

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

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

Related PartyNames
Other related party
USI
Education
Foundation
April 1 to June
30,2021
$ -		 April 1 to June
30,2020
$ 1,000
 January 1 to
June 30,2021		 January 1 to
June 30,2021
January 1 to
June 30,2020
January 1 to
June 30,2020
$ 16,000 $ 8,250
  • c. Management services income (classified as other income)
Management services income (classified as other income) me) me)
R e l a t e d P a r t y
C a t ego ry/ N a m e
April 1 to June
30,2021
April 1 to June
30,2020
January 1 to
June 30,2021
January 1 to
June 30,2020
Joint venture
$ 9,552
$ 7,289
$ 18,719
$ 14,779
Other Receivables
R e l a t e d P a r t y
C a t e g o r y / N a m e
June 30,2021
December 31,
2020
June 30,2020
Joint venture
$ 16,708
$ 19,369
$ 13,171		 January 1 to
June 30,2021
January 1 to
June 30,2020
$ 13,171

  • d. Other Receivables

  • 75 -

e. Compensation of key management personnel

The total remuneration of directors and other members of key management personnel were as follows:

Short-term employee
benefits
Post-employment
benefits
 April 1 to June
30,2021
$ 9,475


81

$ 9,556
 April 1 to June
30,2020
$ 10,701

81
$ 10,782
 January 1 to
June 30,2021		 January 1 to
June 30,2021
January 1 to
June 30,2020
$ 19,758

162
$ 19,920
January 1 to
June 30,2020
$ 19,758

162
$ 19,920






$ 17,370

162

$ 17,532
 $ 19,758
162
$ 19,920

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, long term and short term financing amount, or the gas explosion compensation:

gas explosion compensation:

Pledged time deposits
(classified as financial
assets measured at
amortized cost)

Property, plant and equipment
Investment properties, net
Land use rights (classified as
right-of-use assets)
Refundable deposits
(classified as other
non-current assets)
 June 30,2021
$ 708,916


859,293
19,490
20,833

65,799

$ 1,674,331
 December 31,
2020

$ 678,314

927,196

108,178
21,482

62,633

$ 1,797,803
 June 30,2020








$ 677,573
3,750,596
108,178
28,105
60,200
$ 4,624,652

37. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENT

  • a. As of the years ended June 30, 2021, December 31, 2020 and June 30, 2020, the Company’s unused letter of credit amounted to $3,093,555 thousand, and $2,236,491thousand and $1,540,610 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,

  • 76 -

2020, whereby three employees of CGTD were all acquitted of the charges. At present, the case is appealed by the Kaohsiung Branch, Taiwan High Prosecutors Office and is being tried by the Supreme Court.

CGTD arrived at an agreement with the Kaohsiung City Government on February 12, 2015, to pledge certificates of bank deposits of $227,458 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 July 30, 2021, the provisionally attached properties were worth $12,562 thousand.

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

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

As of July 30, 2021, 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 $46,677 thousand and settled for a compensation amount of $4,519 thousand instead. The compensation amount still in the lawsuit and the settlement amount for the victims and the seriously injured as

  • 77 -

mentioned in the previous paragraph amounted to $3,856,447 thousand. The first-instance judgments of some of the abovementioned civil cases (with a total amount of compensation of approximately $1,341,128 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 $401,979 thousand, of which the court ruled an exemption for CGTD in the amount of $6,194 thousand. CGTD had filed an appeal in those civil cases which were announced but not yet settled and entered into the second-instance trials. CGTD had signed a settlement agreement with insurance companies, where based on CGTD’s proportion of fault-based liabilities in the first-instance judgment, an amount of $136,375 thousand, which is the amount of settlement and civil-case compensation for the victims and the seriously injured (including settled cases) after deducting the maximum insurance claims, was estimated and recognized as liability. However, the actual amount of the aforementioned settlement and compensation still depends on the future judgments of the remaining civil cases.

38. SIGNIFICANT CONTRACTS

  • a. TVCM along with CPC Corporation, Formosa Plastics Corporation, Mitsui Corp., signed a dichloromethane purchase agreement in which the purchase prices are calculated by the buyers and sellers in accordance with a pricing formula.

  • b. The Company and Asia Polymer Corporation (APC) entered into a joint venture contract for an investment of Fujian Gulei Petrochemical Co., Ltd. on April 17, 2014. The related entities of 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; (2) Dynamic Ever Investments Limited will establish a joint venture

  • 78 -

company in accordance with the laws of the People’s Republic of China with Fujian Refining and Chemical Co., at Gulei Park located in Zhangzhou Fujian Province (“Gulei Company”) and acquire 50% interest of Gulei Company for cooperative investment.

Dynamic Ever Investments Limited and Fujian Refining and Chemical Co. signed “Fujian Gulei Petrochemical Corporation Limited Joint Venture Contract” which stipulated an increase in the investment amount, and this contract led to part of the original related contract entities being unable to keep their respective investment ratios as provided by the original contract or to participate in the subsequent capital increase procedures. In order to meet the business requirement of the original contract, the Company and APC resigned the joint venture contract on September 31, 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, 2021, DOR PO had invested US$103,915 thousand and held 15% ownership interest in Dynamic Ever Investment Limited.

As of June 30, 2021 the Company and APC had invested US$246,670 thousand (approximately $7,645,981 thousand) and US$170,475 thousand (approximately $5,255,587 thousand), respectively, in Ever Conquest Global Limited. Through Ever Conquest Global Limited, the Company and APC increased the capital in Ever Victory Global Limited and then reinvested in Dynamic Ever Investments Limited. The shareholding ratio of the joint venture was 67.4%. Dynamic Ever Investments Limited had invested RMB 4,657,200 thousand in Gulei.

c.

In order to improve the efficiency of asset management, the Company provides 10 listed real estates for investment located in subsec. 3, Yanji St., Songshan Dist., Taipei City 105049, Taiwan (R.O.C.). In cooperation with the neighboring areas, the has participated in the urban renewal plan of Huaku Development Co., Ltd. (hereinafter referred to as Huaku Development) by means of right change, and has

  • 79 -

signed the Urban Renewal Development Contract, and has received a performance bond of $6,400 thousand from the builder. The plan has been approved by the Taipei Municipal Government on November 30, 2017. Besides, in order to ensure the smooth development of the urban renewal plan, the Company and Huaku Development signed a Real Estate Trust Contract with the Trust Department of Yushan Bank in 2017, and jointly entrusted the Trust Department of Yushan Bank to manage, divide, merge and transfer the property rights of the construction base and the buildings on the ground during the duration of the trust relationship. As of June 30, 2021, the Urban Renewal Project has been completed and the right to use license has been obtained, but the transfer of ownership of the acquired land and houses has not been completed.

d.

Significant operating contracts

CGTD is commissioned to operate the storage and transportation of any items of petrochemical raw materials; operating service changes are calculated in accordance with the actual operation quantities and at the rate stated in the contracts. The petrochemical raw materials insurance expenses are borne by individual commissioned companies.

commissioned companies.
Commissioning Company
Taita Chemical Company, Ltd.
Taiwan VCM Corporation
USI Corporation
Asia Polymer Corporation
LCY Chemical Corporation
Taiwan Synthetic Rubber Corp.
NANTEX Industry Co., Ltd.
En Chuan Chemical Industries Co., Ltd.
Xin Long Guang Plastics Co., Ltd.
Formosa Plastic Corporation
Chi-Hsen Transportation Company
LCY GRIT CORP.		 OperationContract Period
2020.01.01-2021.12.31
2020.01.01-2021.12.31
2021.01.01-2021.12.31
2021.01.01-2021.12.31
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
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 following information is summarized and expressed in terms of foreign currencies other than the functional currencies of each individual of the Group. The exchange rate disclosed refers to the exchange rate converted from such foreign

  • 80 -

currencies to the functional currencies. The information of foreign currency assets and liabilities of material impact is as follows:

Unit: Foreign and Functional Currencies in Thousands

Foreign currency
assets		 June 30,2021
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 220,880

5,027

4,816

362,547

2,741

722

467
$ 4,616,240

8,227

31,510

950

141,300

180

20,000		 27.86 （USD：NTD）

6.46 （USD：RMB）

4.33 （USD：MYR）

4.31 （RMB：NTD）

0.15 （RMB：USD）

20.94 （AUD：NTD）

33.15 （EUR：NTD）

0.15 （RMB：USD）

27.86 （USD：NTD）

27.86 （USD：NTD）

4.33 （USD：MYR）

4.31 （RMB：NTD）

5.15 （EUR：MYR）

0.01 （JPY：USD）

June30,2021		 $ 6,153,744

32,473

20,836

1,563,522

424

15,121

15,449
$ 714,577

1,879

3,756

39

1,580

20

183		 $ 6,153,744

140,042

134,186

1,563,522

11,825

15,121

15,449
$ 19,908,120

1,879

3,756

250

1,580

130

53
Monetary items
USD

USD

USD

RMB

RMB

AUD

EUR

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

Derivatives
USD buy

USD sell

USD sell

RMB sell

EUR sell

JPY buy

Foreign currency
l i a b i l i t i e s
Monetary items
USD
USD
USD
RMB
Non-monetary
items
Non-monetary
items
USD sell
USD sell
RMB sell
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
73,482
17,124
1,398
24,040
2,900
19,180
102,200
27.86 （USD：NTD）


6.46 （USD：MYR）


4.33 （USD：MYR）


4.31 （RMB：NTD）


27.86 （USD：NTD）

27.86 （USD：NTD）


4.31 （RMB：NTD）
2,047,215

110,626

6,050

103,676

1,586

3,673

1,124
2,047,215

477,084

38,960

103,676

1,586

3,673

1,124


  • 81 -
Foreign currency
assets		 December31,2020 December31,2020
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 178,315
3,556
3,879
327,585
2,379
853
392
4,621,047
19,210
550
5,400
284


51,553

14,342
686

30,318

7,471
16,580

248,860
40,000		 28.48（USD：NTD）


6.52（USD：RMB）

4.19（USD：MYR）

4.36（RMB：NTD）


0.15（RMB：USD）
21.95（AUD：NTD）
35.02（EUR：NTD）

0.15（RMB：USD）
28.48（USD：NTD）

4.19（USD：MYR）

4.36（RMB：NTD）

5.16（EUR：MYR）
28.48（USD：NTD）


6.52（USD：RMB）


4.19（USD：MYR）

4.36（RMB：NTD）

28.48（USD：NTD）

28.48（USD：NTD）


4.36（RMB：NTD）


0.01（JPY：USD）

June 30,2020		 $ 5,078,378
23,202
16,271
1,429,840
365
18,716
13,744
708,217
4,313
132
22
14
1,468,237

93,578
2,879

132,331

830

4,309

15,456

5		 $ 5,078,378

101,272

110,474
1,429,840

10,394

18,716

13,744
20,170,030

4,313

896

22

97
1,468,237

408,450

19,545

132,331

830

4,309

15,456

129
Monetary items
USD

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
Foreign currency
l i a b i l i t i e s
Monetary items
USD

USD

USD
RMB

Non-monetary items
Derivatives
USD buy

USD sell
RMB sell

JPY buy
Foreign currency
asset
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD
$ 121,082

4,249

2,737

218,744

3,408

559
29.63 （USD：NTD）


7.08 （USD：RMB）


4.48 （USD：MYR）


4.19 （RMB：NTD）


0.14 （RMB：USD）


20.34 （AUD：NTD）
 $ 3,587,654

30,015

12,250

915,508

482

11,362		 $ 3,587,654

125,621

81,087

915,508

14,267

11,362
Monetary items
USD

USD

USD

RMB

RMB

AUD

Non-monetary items
Joint ventures
  • 82 -
accounted for
using the equity
method
RMB

Derivatives
USD buy

USD sell

USD sell

RMB sell

EUR sell

JPY buy

Foreign currency
l i a b i l i t i e s
 June 30,2020
Foreign
Currency		 Exchange Rate
(In Single Dollars)		 Functional
Currency		 NTD

4,343,208

21,440

480

649

87,300

110

30,000


20,936

14,002

534

49,935

12,130

3,800

443

54,000

164
0.14 （RMB：USD）


29.63 （USD：NTD）


29.63 （USD：NTD）


4.48 （USD：MYR）


4.19 （RMB：NTD）


5.03 （EUR：MYR）


0.01 （JPY：USD）


29.63 （USD：NTD）


7.08 （USD：RMB）


4.48 （USD：MYR）


4.19 （RMB：NTD）


29.63 （USD：NTD）


29.63 （USD：NTD）


4.48 （USD：MYR）


4.19 （RMB：NTD）


5.03 （EUR：MYR）
613,491

5,927

182

36

1,859

13

281

620,348

99,128

2,388

208,994

1,787

1,190

7

714

6		 18,177,731

5,927

182

236

1,859

88

74

620,348

414,884

15,811

208,994

1,787

1,190

49

714

43
Monetary items
USD

USD

USD

RMB

Non-monetary items
Derivatives
USD buy

USD sell

USD sell

RMB sell

EUR sell

For the year ended June 3, 2021 and 2020, the realized and unrealized net foreign exchange losses were $105,557 thousand,$62,467 thousand, $134,167 thousand and $36,949 thousand, srespectively. 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)

  • 83 -

  • 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)

  • 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)

    • 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 closing balance, the interest rate range, and total current period interest with respect to financing of funds. (Table 1)

  • 84 -

  • 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 about allocated resources and assessed segment information which focus on each group entity’s financial information. The Group’s reportable segment related information is detailed as follows:

a. Reportable segment income information


Segment income

Interest income
Finance costs

Depreciation and
amortization
Impairment loss
Reportable segment
profit before tax
Reportable segment
tax expense
Reportable segment
net profit		 January1 to June 30,20 January1 to June 30,20 21
U
S
I
CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 7,544,852
3,524
(
47,031 )
(
308,913 )
-
2,923,645
(
369,174 )
2,554,471		 $ 9,554,573
1,573
(
1,324 )
(
354,894 )
-
1,857,556
(
377,496 )
1,480,060		 $ 10,104,088
20,963
(
2,682 )
(
99,314 )
-
1,324,496
(
293,699 )
1,030,797		 $ 1,444,944
4,567
(
7,665 )
(
100,914 )
-
54,748
(
24,773 )
29,975		 $ 4,188,280
2,758
(
13,539 )
(
156,603 )
(
2,432 )
1,742,180
(
264,212 )
1,477,968		 $ 2,362,319
6,647
(
14,719 )
(
178,236 )

-
1,446,110
(
80,117 )
1,365,993		 $ 35,199,056
40,032
(
86,960 )
(
1,198,874 )
(
2,432 )
9,348,735
(
1,409,471 )
7,939,264
Segment income

Interest income
Finance costs

Depreciation and
amortization
Impairment loss
Reportable segment
profit before tax
Reportable segment
tax expense
Reportable segment
net profit		 January1 to June 30,20 January1 to June 30,20 20
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Total
$ 4,570,722
3,999
(
56,762 )
(
311,048 )
-
552,917
(
41,117 )
511,800		 $ 5,878,270
3,076
(
4,657 )
(
342,084 )
-
348,481
(
64,476 )
284,005		 $ 6,524,985
13,904
(
14,814 )
(
103,927 )
-
615,680
(
144,853 )
470,827		 $ 1,062,259
6,748
(
9,195 )
(
97,395 )
(
5,823 )
47,131
(
19,759 )
27,372		 $ 2,672,062
5,742
(
24,539 )
(
156,772 )
(
575 )
438,502
(
70,882 )
367,620		 $ 2,211,373
27,024
(
16,988 )
(
190,444 )

-
536,860
(
92,908 )
443,952		 $ 22,919,671
60,493
(
126,955 )
(
1,201,670 )
(
6,398 )
2,539,571
(
433,995 )
2,105,576

b. Reportable segment income and other major adjustments of items

1). Segment income and operating results

Reportable segment net profit
before tax
Reportable segment tax
expense
Reportable segment profit
after tax
Other non-reportable segment
profit
Less: Profit between segments
Net profit after consolidation		 January 1 to June
30,2021
$ 7,902,625
(1,329,354)
6,573,271
1,365,993
(2,664,619)
$ 5,274,645		 January 1 to June
30,2020		 January 1 to June
30,2020

(


(
(

(
 $ 2,002,711

341,087)
1,661,624
443,952

793,225)
$ 1,312,351
  • 85 -

2). Other significant items reconciliation

Interest income
Finance costs
Depreciation
and amortization
Impairment loss
Interest income
Finance costs
Depreciation
and amortization
Impairment loss		 January1 to June 30,2021
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 3,524
(
47,031 )
(
308,913 )

-		 $ 1,573
(
1,324 )
(
354,894 )

-		 $ 20,963
(
2,682 )
(
99,314 )

-		 $ 4,567
(
7,665 )
(
100,914 )

-
January1 to		 $ 2,758
(
13,539 )
(
156,603 )
(
2,432 )
June 30,2020		 $ 6,647
(
14,719 )
(
178,236 )

-		 $ -

1,328

29,143

-		 $ 40,032
(
85,632 )
( 1,169,731 )
(
2,432 )
USI CGPC and Its
Subsidiaries		 TTC and Its
Subsidiaries		 ACME and Its
Subsidiaries		 APC and Its
Subsidiaries		 Others Reconciliation Total
$ 3,999
(
56,762 )
(
311,048 )

-		 $ 3,076
(
4,657 )
(
342,084 )

-		 $ 13,904
(
14,814 )
(
103,927 )

-		 $ 6,748
(
9,195 )
(
97,395 )
(
5,823 )		 $ 5,742
(
24,539 )
(
156,772 )
(
575 )		 $ 27,024
(
16,988 )
(
190,444 )

-		 $ -

1,722

29,150

-		 $ 60,493
(
125,233 )
( 1,172,520 )
(
6,398 )

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.

  • 86 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation (ACME)) FINANCING PROVIDED TO OTHERS JANUARY 1 TO JUNE 30, 2021

TABLE 1-1

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

No. Lender Borrower Financial
Statement
Account		 Related
Party		 Highest Balance
for the Period (Note 3)		 Ending Balance
(Notes 3 and 4)		 Actual
Borrowing
Amount
(Notes 3 and 4)		 Interest
Rate
(%)		 Nature of
Financing
(Note 2)		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment Loss		 Collateral Collateral Financing Limit
for Each
Borrower
(Note 1)		 Aggregate
Financing Limit
(Note 1)		 Remark
Item Value
0 Acme Electronics
Corporation		 ACME Electronics
(Cayman) Corp.		 Other
receivables
-
related
parties
Yes		 $ 228,280
( USD 8,000 thousand )		 $ 228,280
( USD 8,000 thousand)		 $ 228,280
( USD 8,000 thousand)		 1.15013~
2.82663		 2 $ - Business
turnover		 $ - - - $ 517,175 $ 517,175

Note 1: Total financing amounts provided to others shall not exceed 40% of ACME’s net value, and the highest aggregate financing limits were calculated by the net value as of June 30, 2021.

Note 2: The nature of financing is provided as follows:

a. Business relationship is coded “1”.

b. For short-term financing is coded “2”.

Note 3: The amount was calculated using the spot exchange rate as of June 30, 2021.

Note 4: All the transactions were written-off when preparing the consolidated financial statements.

  • 87 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SPC)) FINANCING PROVIDED TO OTHERS JANUARY 1 TO JUNE 30, 2021

TABLE 1-2

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

No. Lender Borrower Financial
Statement
Account		 Related
Party		 Highest Balance
for the Period (Note
3)		 Ending Balance
(Notes 3 and 4)		 Actual
Borrowing
Amount
(Notes 3 and 4)		 Interest Rate
(%)		 Nature of
Financing
(Note 2)		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment Loss		 Collateral Collateral Financing Limit
for Each
Borrower
(Note 1)
 Aggregate
Financing Limit
(Note 1)		 Remark
N
a
m
e		 V
a
l
u
e
1
2
3		 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		 $ 88,601
184,267
14,268		 $ 86,505
159,566
-		 $ 86,505
159,566
-		 -
3.85
-		 2
2
2		 $ -
-
-		 Business
turnover
Business
turnover
Business
turnover		 $ -
-
-		 -
-
-		 -
-
-		 $ 147,600
548,999
357,615		 $ 221,400
548,999
357,615

Note 1: The limits of financing provided to others based on the total amount of funds lending to others and the limits of individual objects set by the companies.

Note 2: The nature of financing is provided as follows:

  • a. Business relationship is coded “1”.

  • b. For short-term financing is coded “2”.

Note 3: The amount was calculated using the spot exchange rate as of June 30, 2021.

Note 4: All the transactions were written-off when preparing the consolidated financial statements.

  • 88 -

USI CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

JANUARY 1 TO JUNE 30, 2021

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

TABLE 2 (In Tho usands of New Taiwan Dollar usands of New Taiwan Dollar s, Unless Stated Otherwise)
No. Endorser/Guarantor Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 1)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period
(Note 2)		 Outstanding
Endorsement/
Guarantee at
the End of the
Period
(Note 2)		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed by
Collateral		 Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity in
Latest
Financial
Statements
(%)		 Aggregate
Endorsement/
Guarantee
Limit
(Note 1)		 Endorsement/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries
Endorsement/
Guarantee
Given by
Subsidiaries
on
Behalf of
Parent		 Endorsement/
Guarantee
Given on
Behalf of
Companies in
Mainland
China
Remark
Name Relationship
0
0		 USI Corporation
USI Corporation		 Union Polymer Int’l
Investment Corp.
Chong Loong Trading
Co., Ltd.		 Subsidiary which
directly held more
than 50% of
ordinary shares
Subsidiary which
directly held more
than 50% of
ordinary shares		 $ 11,412,873
11,412,873		 $ 3,900,000

298,600
( USD
10,000
thousand)
( NTD
20,000
thousand
)		 $ 3,900,000
298,60
( USD
10,000
thousand
)
( NTD
20,000
thousand
)		 $ 1,432,000
41,254		 $ -

-
16.21

1.31		 $ 13,695,447
13,695,447		 Yes
Yes		 No
No		 No
No

Note 1: The total endorsements/guarantees provided amounts shall not exceed 60% of the Company’s net value. The amount of endorsements/guarantees for an individual entity shall not exceed 50% of the Company’s net value. The maximum amount of endorsement/guarantees was calculated based on net value as of June 30, 2021.

Note 2: The amount was calculated using the spot exchange rate as of June 30, 2021.

  • 89 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

ENDORSEMENTS/GUARANTEES PROVIDED

JANUARY 1 TO JUNE 30, 2021

TABLE 2-1

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

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 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.
Subsidiary of ACME
(Cayman)
$ 1,939,406		 $ 207,300
( USD
7,500
thousand
)		 $ 153,230
( USD
5,500
thousand
)		 $ 153,230
( USD
5,500
thousand
)		 $ -
11.85		 $ 2,585,874 No No Yes

Note 1: Net value at the end of June 2021 is used.

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 June 30, 2021. Note 3: The foreign currency amount was calculated based on the spot exchange rate as of June 30, 2021.

  • 90 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation (SPC))

ENDORSEMENTS/GUARANTEES PROVIDED

JANUARY 1 TO JUNE 30, 2021

TABLE 2-2

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

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 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)		 Endorsemen
t/Guarantee
Given by
Parent on
Behalf of
Subsidiaries
Endorsemen
t/Guarantee
Given by
Subsidiaries
on Behalf of
Parent

Endorsemen
t/Guarantee
Given on
Behalf of
Companies
in
Mainland
China		 Remark
Name Relationship
0
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
Forever Young Co.,
Ltd.

Swanson Plastics
(Singapore)
Private Limited

Swanson Plastics
(Malaysia) Sdn.
Bhd.

Swanson Plastics
(Kunshan) Co.,
Ltd.

Swanson
Technologies
Corporation

Swanson Plastic
(Tianjin) Co.,
Ltd.

PT. Swanson
Plastics Indonesia		 Subsidiary
Subsidiary
Sub-subsidiary
Sub-subsidiary
Subsidiary
Sub-subsidiary

Subsidiary		 $ 5,204,386
5,204,386
5,204,386
5,204,386
5,204,386
5,204,386
5,204,386		 $ 1,438,419
51,078
34,242
85,605
219,796
28,535
57,070		 $ 1,041,964
49,869
33,432
83,580
216,016
27,860
55,720		 $ -
-
-
-
124,800
-
-		 $ -
-
-
-
-
-
-		 40.04
1.92
1.28
3.21
8.30
1.07
2.14		 $ 6,505,483
6,505,483
6,505,483
6,505,483
6,505,483
6,505,483
6,505,483		 No
No
No
No
No
No
No		 No
No
No
No
No
No
No		 No
No
No
Yes
No
Yes
No

Note 1: the Limits on Endorsement/Guarantee Given on Behalf of Each Party shall not exceed 200% of the net value of the most recent financial statement of SPC, and the Maximum Amount Endorsed/Guaranteed shall not exceed 250% of the net value of the most recent financial statement of SPC.

Note 2: The foreign currency amount was calculated based on the spot exchange rate as of June 30, 2021.

  • 91 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC)) ENDORSEMENTS/GUARANTEES PROVIDED JANUARY 1 TO JUNE 30, 2021

TABLE 2-3

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

No. Endorser/ Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee
Given on
Behalf of Each
Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 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)		 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 China General
Plastics
Corporation		 CGPC Polymer
Corporation		 Subsidiary $ 6,073,054 $ 2,450,000 $ 1,850,000 $ 13,930 $ - 18.28 $ 10,121,757 No No No

Note 1: The ratio was calculated by the ending balance of equity of CGPC as of June 30, 2021.

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.

  • 92 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd. (TTC)) ENDORSEMENTS/GUARANTEES PROVIDED JANUARY 1 TO JUNE 30, 2021

TABLE 2-4

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

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on
Endorsement/
Guarantee Given
on Behalf of
Each Party
(Note 2)		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period
(Note 1)		 Outstanding
Endorsement/
Guarantee at the
End of the Period
(Note 1)		 Actual
Borrowing
Amount
(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)		 Endorseme
nt/
Guarantee
Given
by Parent
on
Behalf of
Subsidiaries
Endorseme
nt/
Guarantee
Given
by
Subsidiaries
on Behalf
of
Parent
Endorseme
nt/
Guarantee
Given
on Behalf
of
Companies
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		 $ 7,596,495
7,596,495		 $ 878,600
( USD
10,000thousand)
( NTD 600,000thousand)

431,260
( RMB 100,000thousand)

$ 739,300
( USD
5,000thousand)
( NTD 600,000thousand)

345,008
( RMB 100,000thousand)

$ -

-		 $ -

-		 9.73
4.54		 $ 11,394,743
11,394,743		 No
No		 No
No		 No
Yes

Note 1: The amount was calculated at the spot exchange rate as of June 30, 2021.

Note 2: The ceiling to TTC on the total amount of endorsements/guarantees permitted shall not exceed 150% of TTC’s net worth; the ceiling to TTC on the total amount of endorsements/guarantees to any individual entity shall not exceed 100% of TTC’s net worth. The ceiling to TTC and its subsidiaries on the total amount of endorsements/guarantees permitted shall not exceed 200% of TTC’s net worth; the ceiling to TTC and its subsidiaries on the total amount of endorsements/guarantees to any individual entity shall not exceed 150% of TTC’s net worth.

  • 93 -

USI CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

JUNE 30, 2021

TABLE 3

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

Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
USI Corporation Shares
CTCI Corporation
KHL IB Venture Capital Co., Ltd.
AU Optronics Corporation
Evergreen Marine Corp.
Taiwan Cement Corporation
Quanta Computer Inc.
Asia Cement Corporation
China Steel
Tung Ho Steel Enterprise
Corporation
Beneficiary certificates
Cathay Taiwan Money Market Fund
TCB Taiwan Money Market Fund
FSITC Taiwan Money Market Fund
UPAMC James Bond Money		 －
－
－
－
－
－
－
－
－
－
－
－
－		 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 - current
Financial assets at fair value
through other comprehensive
income - current
Financial assets at fair value
through other comprehensive
income - current
Financial assets at fair value
through other comprehensive
income - current
Financial assets at fair value
through other comprehensive
income - 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		 15,130,656
10,478,895
8,514,006
473,251
500,000
300,000
400,000
650,000
550,000
1,036,575
4,879,763
9,706,037
21,361,576		 $ 593,122

283,569

192,842

93,231

25,500

26,250

20,280

25,740

28,875

13,007

50,000

150,001

360,092
1.98
11.90

0.09

-

-

-

-

-

-

-

-

-

-		 $ 593,122

283,569

192,842

93,231

25,500

26,250

20,280

25,740

28,875

13,007

50,000

150,001

360,092
  • 94 -
Market Fund
Hua Nan Phoenix Money Market
Fund
Capital Money Market Fund
Mega Diamond Money Market
Fund
FSITC Money Market
Taishin 1699 Money Market Fund
Jih Sun Money Market Fund
Hua Nan Kirin Money Market Fund
Yuanta De-Li Money Market Fund
CTBC Hwa-win Money Market
Fund		 －
－
－
－
－
－
－
－
－		 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		 25,183,247
7,987,591
5,564,230
555,679
6,079,033
16,702,410
24,844,926
9,118,948
17,273,333
413,101

130,056

70,476

100,053

83,061

250,055

300,065

150,055

192,041
-

-

-

-

-

-

-

-

-
413,101

130,056

70,476

100,053

83,061

250,055

300,065

150,055

192,041

(Continued)

  • 95 -

(Continued)

Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
Union Polymer Int’l Investment
Corp.
Swanlake Traders Ltd.
USIFE Investment Co., Ltd.		 Beneficiary certificates
Cathay No. 1 Real Estate Investment
Trust Fund
Shares
Asia Polymer Corporation
China General Plastics Corporation
Taita Chemical Company, Ltd.
Shares
SOHOware Inc.
TGF Linux Communications Inc.
Neurosky Inc. Preferred D
Shares
AU Optronics Corporation
AU Optronics Corporation
Wafer Works Corporation
Solargiga Energy Holdings Ltd.
Dah Chung Bills Finance
Corporation
－
Investee at equity method
Investee at equity method
Investee at equity method
－
－
－
－
－
－
－
－		 Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
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		 3,290,000
21,747,535
4,256,482
395,025
1,150,000
300,000
2,397,364
1,266,061
1,266,061
3,001,655
11,876,111
470,914		 $ 59,253

761,164

153,446

17,223

-

-

-

28,676

28,676

183,401

7,081

7,177
-

3.74

0.77

0.11

1.05

2.14

0.70

0.01

0.01

0.59

0.37

0.10		 $ 59,253

761,164

153,446

17,223

-

-

-

28,676

28,676

183,401

7,081

7,177		 注2
注2
注2
  • 96 -
Swanson Plastics Corp.
USI Optronics Corporation
Digimax, Inc.
Silicon Technology Investment
(Cayman) Corp.
Taiwan Cement Corporation
Asia Cement Corporation
China General Plastics Corporation
Asia Polymer Corporation
Taita Chemical Company, Ltd.		 investee have the same
chairman
investee have the same
chairman
－
－
－
－
investee have the same
chairman
investee have the same
chairman
investee have the same
chairman		 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
throughprofit or loss - current		 7,605,894
165,279
23,234
911,849
300,000
200,000
510,487
1,668,758
1,209,113
104,733

241

-

47,298

15,300

10,140

18,403

58,407

52,717
4.93

0.25

0.05

1.77

-

0.01

0.09

0.29

0.35
104,733

241

-

47,298

15,300

10,140

18,403

58,407

52,717

(Continued)

  • 97 -

(Continued)

Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
China Steel
Tung Ho Steel Enterprise
Corporation
Quanta Computer Inc.
Evergreen Marine Corp.
Acme Electronics
Corporation
Superactive Group Company
Limited
Taiwan United Venture Capital
Corp.		 －
－
－
－
investee have the same chairman
－
Beneficiary certificates
Yuanta De-Li Money Market Fund
Fuh Hwa Money Market Fund
Cathay Taiwan Money Market Fund
Beneficiary certificates
Fuh Hwa Money Market Fund
Cathay Taiwan Money Market Fund
Shares
Innovation & Infinity Global Corp.
Teratech Corp.
MiTAC Holdings Corp.		 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
－
－
－
－
－
－
－
－		 325,000

225,000

150,000

158,416

500,000

678,000
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through profit or loss -
non-current
Financial assets at fair value
through other comprehensive
income - current		 325,000
225,000
150,000
158,416
500,000
678,000
1,870,081
3,440,659
5,844,200
3,399,556
4,391,849
720,804
90,000
2,062,000		 $ 12,870

11,812

13,125

31,208

9,450

370

30,773

50,077

73,330

49,479

55,107

-

-

56,911
-

0.02

-

-

0.27

-

-

-

-

-

-

0.73

0.58

0.17		 $ 12,870

11,812

13,125

31,208

9,450

370

30,773

50,077

73,330

49,479

55,107

-

-

56,911		 注2
注2

(Continued)

  • 98 -

(Continued)

(Continued)
Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
Taiwan United Venture
Management Corp.		 Chitec Technology Co., Ltd.
Leadwell Cnc Machines Mfg., Corp.
Digimax, Inc.
Orgchem Technologies, Inc.
Hexawave, Inc.
Uranus Chemicals Co., Ltd.
Neuro Sky, Inc. Preferred A
Neuro Sky, Inc. Preferred B
Neuro Sky, Inc. Preferred C
Beneficiary certificates
Fuh Hwa Money Market Fund		 －

－
－
－
－
－
－
－
－
－		 Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through other comprehensive
income - non-current
Financial assets at fair value
through profit or loss -
current		 399,091
419,753
518,898
594,594
109,109
14,021
10,000,000
12,595,523
4,532,823
91,730		 $ 12,567

15,145

-

8,580

939

379

-

-

-

1,335
1.37

0.68

1.18

1.09

0.27

0.03

1.42

1.78

0.64

-		 $ 12,567

15,145

-

8,580

939

379

-

-

-

1,335		 Note 2
Note 2
Note 2

(Continued)

  • 99 -

(Continued)

Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
Inoma Corporation
USI Optronics Corporation		 Beneficiary certificates
Taishin 1699 Money Market Fund
Beneficiary certificates
Jih Sun Money Market Fund
Taishin 1699 Money Market Fund
Yuanta De-Bao Money Market Fund		 －
－
－

－		 Financial assets at fair value
through 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		 521,196
1,016,620
887,541
914,082		 $ 7,121

15,220

12,127

11,078
-

-

-

-		 $ 7,121

15,220

12,127

11,078

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.

  • 100 -

USI CORPORATION AND SUBSIDIARIES (China General Plastics Corporation (CGPC)) MARKETABLE SECURITIES HELD JUNE 30, 2021

TABLE 3-1

JUNE 30, 2021
TABLE 3-1 (In Thousands of New Taiwan Dollars,Unless Stated Otherwise)
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 Note
Number of Shares Carrying Amount Percentage
of
Ownership
(%)

Fair Value
China General Plastics
Corporation
Taiwan VCM Corporation
CGPC Polymer Corporation		 Beneficiary certificates
Cathay No. 1 Real Estate
Investment Trust Fund
Beneficiary certificates
FSITC Money Market
Shares
China Steel
Taiwan Cement
Corporation
Asia Cement Corporation
Quanta Computer Inc.
Tung Ho Steel Enterprise
Corporation
KHL IB Venture Capital
Co., Ltd.
Beneficiary certificates
FSITC Taiwan Money
Market Fund
Shares
Asia Polymer Corporation
Beneficiary certificates
FSITC Taiwan Money
Market Fund
FSITC Money Market
Capital Money Market
Fund
Taishin Ta-Chong Money
Market Fund
Prudential Financial Money
Market Fund		 －
－
－
－
－
－
－
－
－
The major shareholders are
the same as the those of
CGPC
－
－
－
－
－		 Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through other comprehensive
income - non-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
throughprofit or loss - current
2,668,000
833,082

650,000
400,000
400,000
200,000
250,000


5,239,447

3,882,415


127,691

19,034,486
1,139,072
8,916,527
5,723,376
4,384,646		 $ 48,051
150,001
25,740
20,400
20,280
17,500
13,125
141,779
60,000
4,470
294,166
205,097
145,182
82,053
70,046		 -
-
-
-
-
-
-
5.95
-
0.02
-
-
-
-
-
$ 48,051

150,001

25,740

20,400

20,280

17,500

13,125

141,779

60,000

4,470

294,166

205,097

145,182

82,053

70,046		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
  • 101 -

(Continued)

(Continued)
Holding Company Name Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 Note
Number of Shares Carrying Amount Percentage
of
Ownership
(%)

Fair Value
CGPC（BVI）Holding
Co., Ltd.		 Hua Nan Kirin Money
Market Fund
Cathay Taiwan Money
Market Fund
Shin Kong Chi-Shin
Money-market Fund
Shares
Teratech Corporation
SOHOware,Inc Preferred		 －
－
－
－
－		 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
throughprofit or loss - current
5,796,909
3,986,923
2,625,640
112,000
100,000		 $ 70,012
50,027
41,022
-
-		 -
-
-
0.67
-
$ 70,012

50,027

41,022

-

-		 Note 1
Note 1
Note 1
Notes 1 and 3
Notes 1, 2
and 3

Note 1: The marketable securities were not pledged as guarantees or collateral for borrowings and not subject to restrictions.

Note 2: The preference shares are not used in the calculation of shareholding ratio and net worth. Note 3: As of June 30, 2021, 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.

  • 102 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd. (TTC))

MARKETABLE SECURITIES HELD

JUNE 30, 2021

TABLE 3-2

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

Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30,2021 June 30,2021 June 30,2021 June 30,2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Taita Chemical Company,
Ltd.

TAITA (BVI) Holding
Co., Ltd.		 Shares
Taiwan Cement Corporation-ordinary
shares
Asia Cement Corporation-ordinary shares
China Steel－ordinary shares
Tung Ho Steel Enterprise
Corporation-ordinary shares
Quanta Computer Inc.-ordinary shares
USI Corporation-ordinary shares
Harbinger Venture Capital-ordinary shares
Beneficiary certificates
Cathay No. 1 Real Estate Investment Trust
Fund
Beneficiary certificates
FSITC Taiwan Money Market Fund
Hua Nan Kirin Money Market Fund
Yuanta De-Li Money Market Fund
Capital Money Market Fund
Taishin Ta-Chong Money Market Fund
CTBC Hwa-win Money Market Fund
Shares
Budworth Investment Ltd.-ordinary shares
Teratech Corporation-ordinary shares		 －
－
－
－
－
Parent company
－
－
－
－
－
－
－
－
－
－		 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
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
profit or loss - non-current		 400,000
400,000
650,000
250,000
200,000
15,109,901
990
3,250,000
3,882,440
4,555,970
7,295,890
12,287,767
7,325,805
2,878,707
20,219
112,000		 $ 20,400
20,280
25,740
13,125
17,500
545,467
8
58,533
60,001
55,025
120,056
200,073
105,025
32,005
6
( USD - thousand )
-		 0.01
0.01
-
0.02
0.01
1.27
0.50
-
-
-
-
-
-
-
2.22
0.73		 $ 20,400
20,280
25,740
13,125
17,500
545,467
8
58,533
60,001
55,025
120,056
200,073
105,025
32,005
6
( USD - thousand )
-		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 3
Note 1
Note 2
Note 2
Note 2
Note 2
Note 2
Note 2
Note 3
Note 4
  • 103 -
Holding Company Name Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account June 30,2021 June 30,2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Sohoware Inc.-Preferred － Financial assets at fair value through
profit or loss - non-current		 100,000 $ - - $ - Note 4

Note 1: The fair value was based on the Taiwan Stock Exchange closing price on the last trading day of June 2021. Note 2: The fair value was calculated based on the net asset value on the last trading day of June 2021. 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 June 30, 2021, 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.

  • 104 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

MARKETABLE SECURITIES HELD

JUNE 30, 2021

TABLE 3-3

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

Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2021 June 30,2021 June 30,2021 June 30,2021 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
Asia Polymer
Corporation
 Ordinary Shares
Harbinger Venture Capital
Riselink Venture Capital
KHL IB Venture Capital Co., Ltd.
USI Corporation
CTCI Corporation
AU Optronics Corporation
Wafer Works Corporation
Quanta Computer Inc.
Taiwan Cement Corporation
Asia Cement Corporation
Evergreen Marine Corp.
Tung Ho Steel Enterprise
Corporation
China Steel
Beneficiary certificates
Cathay No. 1 Real Estate
Investment Trust Fund		 －
－
－
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
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		 2,377
2,632
10,478,895
101,355,673
14,446,107
9,618,516
2,017,946

300,000

500,000

400,000

473,251

550,000

650,000


3,281,000		 $ 19

210

283,559

3,658,940

566,287

217,859

123,297

26,250

25,500

20,280

93,230

28,875

25,740

59,091
1.20

1.67

11.90

8.53

1.89

0.10

0.39

0.01

0.01

0.01

0.01

0.05

-

-		 $ 19
210
283,559
3,658,940
566,287
217,859
123,297
26,250
25,500
20,280
93,230
28,875
25,740
59,091












  • 105 -
Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2021 June 30,2021 June 30,2021 June 30,2021 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
APC (BVI)
Holding Co.,
Ltd.

APC Investment
Corporation
 Beneficiary certificates
Mega Diamond Money Market
Fund
Capital Money Market Fund
Jih Sun Money Market Fund
Prudential Financial Money
Market Fund
UPAMC James Bond Money
Market Fund
Taishin Ta-Chong Money Market
Fund
FSITC Taiwan Money Market
Fund
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.-preferred shares
Sohoware, Inc.-preferred shares
Boldworks, Inc.-preferred shares
Shares
USI Corporation-ordinary shares		 －
－
－
－
－
－
－
－
－
－
－
－
－
－
－
Ultimate parent company		 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
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
5,095,391

1,843,035

16,818,904

3,137,157

2,967,148

3,488,575

1,618,647
40,467
1,139,776
2,397,364
15,863,333
112,000
300,000
450,000
689,266

44,808		 $ 64,538

30,009

251,799

50,117

50,017

50,014

25,015
$ 10

59,125

-

25,321

-

-

-

-

1,618
-

-

-

-

-

-

-

4.45

2.19

0.37

0.49

0.67

-

-

-

-		 $ 64,538
30,009
251,799
50,117
50,017
50,014
25,015
$ 10
59,125
-
25,321
-
-
-
-
1,618






Note 1
Note 1
Note 1
Note 1
Note 1
  • 106 -
Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30, 2021 Note
Number of
Shares		 Carrying
Amount		 Percentage of
Ownership(%)		 Fair Value
Evergreen Marine Corp.-ordinary
shares
Taiwan Cement
Corporation-ordinary shares
Asia Cement Corporation-ordinary
shares
Tung Ho Steel Enterprise
Corporation-ordinary shares
China Steel-ordinary shares
Quanta Computer Inc.-ordinary
shares
Beneficiary certificates
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
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
throughprofit or loss - current
158,416

300,000

200,000

225,000

325,000

150,000

2,892,518
31,208

15,300

10,140

11,813

12,870

13,125

36,294
-

-

0.01

0.02

-

-

-		 31,208
15,300
10,140
11,813
12,870
13,125
36,294

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.

  • 107 -

USI CORPORATION AND SUBSIDIARIES

(China General Terminal & Distribution Co.)

MARKETABLE SECURITIES HELD

JUNE 30, 2021

TABLE 3-4

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

Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account June 30,2021 June 30,2021 Note
Number of
Shares		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
China
General
Terminal
&
Distribution Co.

Shares
Asia Polymer Corporation
China General Plastics
Corporation
Taita Chemical Company, Ltd.
China Steel Corporation		 Equity-method 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		 $ 181,536
100,967
86,000
19,782		 0.89
0.51
0.57
-		 $ 181,536

100,967

86,000

19,782		 Note 1
Note 1
Note 1
Note 2

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.

  • 108 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 4

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

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterparty Relationship Beginning Balance
(Notes 1 and 2)		 Beginning Balance
(Notes 1 and 2)		 Acquisition Acquisition Disposal Disposal Ending
(Notes		 Balance
1 and 2)
Number of
Shares		 Amount Number of
Shares		 Amount Number of
Shares		 Amount Carrying
Amount		 Gain on
Disposal		 Number of
Shares		 Amount
USI Corporation
 Beneficiary certificates
FSITC Money
Market
FSITC Taiwan
Money Market
Fund
UPAMC James
Bond Money
Market Fund
Hua Nan Phoenix
Money Market
Fund
Hua Nan Kirin
Money Market
Fund
Yuanta De-Li
Money Market
Fund
Shin Kong
Chi-Shin
Money-market
Fund
Capital Money
Market Fund
Jih Sun Money
Market Fund
Taishin Ta-Chong
Money Market
Fund
CTBC Hwa-win
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


－

－

－

－

－

－

－

－

－

－

－		 －
－
－
－
－
－
－
－
－
－
－		 372,668
3,969,627
-
16,662,140
5,884,596
-
12,815,912
7,379,140
16,833,145
20,116,313
9,003,412		 $ 67,000

61,000

-

273,000

71,000

-

200,000

120,000

249,200

288,000

100,000
555,679

9,706,037

33,825,167

67,269,198

54,253,235

9,118,948

1,921,574

7,987,591

16,702,410

13,262,069

64,335,932		 $ 100,000

150,000

570,000

1,103,000

655,000

150,000

30,000

130,000

250,000

190,000

715,000
372,668

3,969,627

12,463,591

58,748,091

35,292,905

-

14,737,486

7,379,140

16,833,145

33,378,382

56,066,011		 $ 67,034

61,275

210,019

963,123

426,045

-

230,041

120,040

251,765

478,143

623,066		 $ 67,000

61,000

210,000

963,000

426,000

-

230,000

120,000

249,200

478,000

623,000		 $ 34

275

19

123

45

-

41

40

2,565

143

66
555,679

9,706,037

21,361,576

25,183,247

24,844,926

9,118,948

-

7,987,591

16,702,410

-

17,273,333		 $ 100,000

150,000

360,000

413,000

300,000

150,000

-

130,000

250,000

-

192,000
  • 109 -
USI Investment Co.,
Ltd.

USIFE Investment
Co., Ltd.

USI Optronics
Corporation

Inoma Corporation		 Taishin 1699
Money Market
Fund
Nomura Money
Market Fund
Cathay Taiwan
Money Market
Fund
TCB Taiwan
Money Market
Fund
Beneficiary certificates
Yuanta De-Li
Money Market
Fund
Cathay Taiwan
Money Market
Fund
Beneficiary certificates
Cathay Taiwan
Money Market
Fund
Beneficiary certificates
Jih Sun Money
Market Fund
Taishin 1699
Money Market
Fund
Beneficiary certificates
Taishin 1699
Money Market
Fund		 Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value through
profit or loss -
current
Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value through
profit or loss -
current
Financial assets at
fair value through
profit or loss -
current
Financial assets at
fair value
through profit
or loss -
current
Financial assets at
fair value through
profit or loss -
current
－

－

－

－



－

－



－



－

－



－		 －
－
－
－
－
－
－
－
－
－		 5,497,139
-
-
-
1,870,081
3,451,207
4,391,849
1,016,620
1,257,350
595,654
$75,000

-

-

-

30,284

42,238

55,000

15,000

17,000

8,000
10,988,489

9,118,726

11,164,745

42,469,216

-

2,392,993

-

-

-

-
$150,000

150,000

140,000

435,000

-

30,000

-

-

-

-
10,406,596

9,118,726

10,128,170

37,589,453

-

-

-

-

369,809

74,457
$142,030

150,008

127,012

385,041

-

-

-

-

5,048

1,017
$142,000

150,000

127,000

385,000

-

-

-

-

5,000

1,000
$30

8

12

41

-

-

-

-

48

17
6,079,033

-

1,036,575

4,879,763

1,870,081

5,844,200

4,391,849

1,016,620

887,541

521,196
$83,000

-

13,000

50,000

30,284

72,238

55,000

15,000

12,000

7,000

Note : The beginning and ending balance was calculated at the original purchase cost.

  • 110 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 4-1 TABLE 4-1 TABLE 4-1 TABLE 4-1 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Disposal
EndingBalance(Note)
Amount
Carrying
Amount
Gain on
Disposal
Number of
Shares
Amount
$ 390,042
$ 390,000
$ 42
-
$ -
390,072
390,000
72
3,882,415
60,000
420,059
420,000
59
-
-
414,044
414,000
44
5,796,909
70,000
335,035
335,000
35
-
-		 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Disposal
EndingBalance(Note)
Amount
Carrying
Amount
Gain on
Disposal
Number of
Shares
Amount
$ 390,042
$ 390,000
$ 42
-
$ -
390,072
390,000
72
3,882,415
60,000
420,059
420,000
59
-
-
414,044
414,000
44
5,796,909
70,000
335,035
335,000
35
-
-		 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Disposal
EndingBalance(Note)
Amount
Carrying
Amount
Gain on
Disposal
Number of
Shares
Amount
$ 390,042
$ 390,000
$ 42
-
$ -
390,072
390,000
72
3,882,415
60,000
420,059
420,000
59
-
-
414,044
414,000
44
5,796,909
70,000
335,035
335,000
35
-
-		 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Disposal
EndingBalance(Note)
Amount
Carrying
Amount
Gain on
Disposal
Number of
Shares
Amount
$ 390,042
$ 390,000
$ 42
-
$ -
390,072
390,000
72
3,882,415
60,000
420,059
420,000
59
-
-
414,044
414,000
44
5,796,909
70,000
335,035
335,000
35
-
-		 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Disposal
EndingBalance(Note)
Amount
Carrying
Amount
Gain on
Disposal
Number of
Shares
Amount
$ 390,042
$ 390,000
$ 42
-
$ -
390,072
390,000
72
3,882,415
60,000
420,059
420,000
59
-
-
414,044
414,000
44
5,796,909
70,000
335,035
335,000
35
-
-
Company Name Type and Name of
Marketable Securities		 Financial Statement Account Counterparty Relationshi
p		 BeginningBalance(Note) Acquisition Disposal 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
Taishin Ta-Chong
Money
Market
Fund

Beneficiary certificates
FSITC
Taiwan
Money
Market
Fund
Taishin Ta-Chong
Money
Market
Fund

Beneficiary certificates
Hua Nan Kirin
Money
Market
Fund
TCB
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

－


－


－


－


－		 －
－
－
－
－		 4,190,295
3,240,147
6,983,874
3,315,451
-		 $ 60,000
50,000
100,000
40,000
-		 23,031,213
25,887,463
22,338,288
36,778,382
32,710,950		 $ 330,000
400,000
320,000
444,000
335,000		 27,221,508
25,245,195
29,322,162
34,296,924
32,710,950		 $ 390,042
390,072
420,059
414,044
335,035		 $ 390,000
390,000
420,000
414,000
335,000		 $ 42
72
59
44
35		 -
3,882,415
-
5,796,909
-		 $ -
60,000
-
70,000
-

Note : The beginning and ending balance was calculated at the original purchase cost.

  • 111 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 4-2

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

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterpar
ty		 Relationship BeginningBalance BeginningBalance Acquisition(Note) Acquisition(Note) Disposal 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
Hua Nan Kirin
Money
Market
Fund
CTBC Hwa-win
Money
Market
Fund
Hua Nan Phoenix
Money
Market
Fund

Financial assets at
fair value through
profit or loss -
current


Financial assets at
fair value through
profit or loss -
current


Financial assets at
fair value through
profit or loss -
current		 －



－



－		 －
－
－		 6,962,057
-
5,248,671		 $ 84,000

-

86,000
24,025,071

33,288,909

22,261,863		 $ 290,000

370,000

365,000
26,431,158

30,410,202

27,510,534		 $ 319,046

338,023

451,102		 $ 319,000

338,000

451,000		 $ 46

23

102
4,555,970

2,878,707

-		 $ 55,000

32,000

-

Note : The beginning and ending balance was calculated at the original purchase cost.

  • 112 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 4-3

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

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterpar
ty		 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
 Beneficiary certificates
Taishin 1699 Money
Market Fund
Taishin Ta-Chong
Money Market
Fund		 Financial assets at
fair value through
profit or loss -
current
〃		 －
－		 －
－		 12,021,036
-		 $ 164,000
-		 10,623,243
26,519,389		 $ 145,000
380,000		 22,644,279
23,030,814		 $ 309,108
330,047		 $ 309,000
330,000		 $ 108
47		 -
3,488,575		 $ -
50,000

Note : The beginning and ending balance was calculated at the original purchase cost.

  • 113 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 5

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts
Receivable(Payable)		 Notes/Accounts
Receivable(Payable)		 Note
Purchase/
Sale		 Amount % of
Total		 Payment Terms Unit Price Payment Terms Ending
Balance		 % of
Total
USI Corporation
USI (Hong Kong
Co., Ltd.)
USI Trading
(Shanghai)
Co., Ltd.		 Asia Polymer
Corporation
USI (Hong Kong Co.,
Ltd.)
USI Trading (Shanghai)
Co., Ltd.
USI Corporation
USI Corporation		 Subsidiary
Subsidiary
Subsidiary
Parent company
Parent company		 Purchase
Sale
Sale
Purchase
Purchase		 $ 724,587
104,737
104,662
104,737
104,662
14.37
(
1.39 )
(
1.39 )

2.08

2.08		 Within
60
days
after purchasing
on credit
Within
60
days
after purchasing
on credit
Within
60
days
after purchasing
on credit
Within
60
days
after purchasing
on credit
Within
60
days
after purchasing
on credit

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		 $ 236,636
28,781
34,377
(
28,781 )
(
34,377 )		 (
26.50 )

1.55

1.85
(
3.22 )
(
3.85 )

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

  • 114 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 5-1

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable
(Payable)		 Notes/Accounts Receivable
(Payable)		 Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial
Statement
Account and
Ending
Balance		 % of
Total
Acme Electronics
Corporation
Acme (Guangzhou)
Electronics Corporation
Acme (Kunshan)
Electronics Corporation
Acme Electronics
Corporation		 Acme (Guangzhou)
Electronics Corporation
Acme Electronics
Corporation
Acme Electronics
Corporation
Acme (Kunshan)
Electronics Corporation		 Subsidiary
Subsidiary
Subsidiary
Subsidiary		 Purchase
Sale
Purchase
Sale		 $ 199,711
(
199,711 )
134,341
(
134,341 )		 40
(
34 )
74
(
21 )		 55 days
55 days
55 days
55 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		 ( $ 102,809 )
102,809
(
66,213 )
66,213		 (
49 )
32
(
83 )
19		 Note
Note
Note
Note

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

  • 115 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Co., Ltd.)

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

JANUARY 1 TO JUNE 30, 2021

TABLE 5-2

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

Buyer/Seller Related Party Relationship Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
EndingBalance		 % of
Total
Swanson Plastics (Singapore)
Private Limited
Forever
Young
Company
Limited
Forever
Young
Company
Limited
ASK-Swanson
(Kunshan)
Co., Ltd.
Swanson Plastics (Malaysia)
Sdn. Bhd.
Swanson Plastics (Malaysia)
Sdn. Bhd.
Swanson Plastics (Malaysia)
Sdn. Bhd.

ASK-Swanson
(Kunshan)
Co., Ltd.

Swanson Plastics (Malaysia)
Sdn. Bhd.

Forever
Young
Company
Limited

Forever
Young
Company
Limited

Swanson Plastics (Singapore)
Private Limited
Subsidiary

The same ultimate
parent
company

The same ultimate
parent
company

The same ultimate
parent
company

The same ultimate
parent
company

The same ultimate
parent
company		 Purchase

Sale

Sale

Purchase

Purchase

Sale		 $ 106,859
(
162,262 )
(
207,842 )
162,262
207,842
(
106,859 )		 77
(
31 )
(
39 )
35
42
(
21 )		 Monthly settlement
for 90 days
Monthly settlement
for 90 days
Monthly settlement
for 90 days
Monthly settlement
for 90 days
Monthly settlement
for 90 days
Monthly settlement
for 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 ( $ 31,889
)
Accounts receivable from related parties
35,610
Accounts receivable from related parties
45,567
Accounts payable to related parties (
35,610
)
Accounts payable to related parties (
45,567
)
Accounts receivable from related parties
31,889		 (
90 )
17
22
(
43 )
(
31 )
22

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

  • 116 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

JANUARY 1 TO JUNE 30, 2021

TABLE 5-3
TABLE 5-3 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Buyer/Seller Related Party Relationship Transaction Details Abnormal Transaction Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
EndingBalance		 % of
Total
China General
Plastics
Corporation
Taiwan VCM
Corporation
CGPC Polymer
Corporation
CGPC America
Corporation		 Taiwan
VCM
Corporation
CGPC America
Corporation
China General Plastics
Corporation
CGPC
Polymer
Corporation
Taiwan
VCM
Corporation
China General Plastics
Corporation
Subsidiary
Subsidiary

Parent company

Fellow
subsidiary

Fellow
subsidiary

Parent company		 Purchase
Sale
Sale
Sale
Purchase
Purchase		 $ 3,281,441
(
335,736 )
( 3,281,441 )
( 3,061,898 )
3,061,898

335,736		 78
(
6 )
(
50 )
(
47 )
97
90		 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
(
$ 1,017,129 )
Accounts receivable from related
parties
191,107
Accounts receivable from related
parties
1,017,129
Accounts receivable from related
parties
1,571,100
Accounts payable to related parties
(
1,571,100 )
Accounts payable to related parties
(
191,107
)		 (
78 )

13

38

59
(
98 )
(
98 )		 Note
Note
Note
Note
Note
Note

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

  • 117 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 5-4

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

Buyer/Seller Related Party Relationship Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts Receivable(Payable) Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
EndingBalance
% of
Total
Taita
Chemical
Company, Ltd.)
Taita
(Zhongshan)
Company, Ltd.
sub-subsidiary		 sales ( $ 467,386 )
( USD
16,659
thousand
)		 (
6.08 )		 30 days No
significant		 No
significant		 Accounts
receivable
from
related parties
$ -
( USD
-thousand )
-		 Note
  • 118 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 5-5 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Buyer/Seller Related Party Relationship Transaction Details Abnormal Transaction Notes/Accounts Receivable(Payable) Note
Purchase/
Sale		 Amount % of
Total		 Payment
Terms		 Unit Price Payment
Terms		 Financial Statement Account and
EndingBalance
% of
Total
Asia Polymer
Corporation
USI Trading (Shanghai)
Co. Ltd (USIT)		 USI Corporation
USI Corporation		 Ultimate parent
company
Ultimate parent
company		 Sale
Sale		 ( $ 724,172 )
105,224		 (
17.29 )
5.15		 60 days
30 days		 No significant
difference
No significant
difference
No significant
difference

No significant
difference		 Accounts receivable from related
parties
$ 242,388
Accounts receivable from related
parties
(
34,377 )
25.43


10.29
  • 119 -

USI CORPORATION AND SUBSIDIARIES

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

JUNE 30, 2021

TABLE 6

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

Company Name Related Party Relationship Ending Balance (Note 2) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
Cypress Epoch Limited USI Corporation Subsidiary Other receivables from
related parties
$ 126,010		 - $ - － $ - Note 1

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

  • 120 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

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

JUNE 30, 2021

TABLE 6-1

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

Company Name Related Party Relationship Ending Balance (Note 2) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 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 from
related parties
$ 225,317
Receivables from
related parties
102,809		 -
3.40		 $ -
-		 －
－		 $ -
37,164		 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.

  • 121 -

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

JUNE 30, 2021

TABLE 6-2

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

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
ASK-Swanson
(Kunshan) Co., Ltd.		 Swanson Plastics (Tianjin) Co.,
Ltd.		 Fellow subsidiary Other receivables from related parties
$ 163,302
(RMB37,866 thousand)		 $ - - $ - － $ -

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

Note 2: The subsequent period refers to the period from July 1, 2021 to July 29, 2021

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

  • 122 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

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

JUNE 30, 2021

TABLE 6-3

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

Company Name Related Party Relationship Ending Balance (Note 3) Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
China
General
Plastics
Corporation
Taiwan VCM Corporation
CGPC America Corporation
CGPC Polymer Corporation
Taiwan VCM Corporation
China
General
Plastics
Corporation
CGPC Polymer Corporation		 Subsidiary
Subsidiary
Subsidiary

Parent company
Fellow		 Accounts receivable from related parties
$ 191,107
Other receivables from related parties
$ 256,340
Other receivables from related parties
$ 600,925
Accounts receivable from related parties
$ 1,017,129
Accounts receivable from related parties
$ 1,571,100		 4.45
-
-
6.29
4.07		 $ -
-
-
-
-		 －
－
－
－
－		 $ 66,172
255,068
600,912
544,318
634,520		 Note 1
Note 1
Note 1
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 July 1, 2021 to July 29, 2021

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

  • 123 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.)

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

JUNE 30, 2021

TABLE 6-4
TABLE 6-4 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Amounts
Received in
Subsequent
Period(Note 2)
Allowance for
Impairment
Loss
$ - $ -
Company Name Related Party Relationship Financial Statement Account and
Ending Balance (Note 3)		 Turnover
Rate (%)		 Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
Taita
Chemical
Company, Ltd.
Taita Chemical (Tianjin) Co.,
Ltd.		 Sub-subsidiary Other receivables
$ 257,678
(USD 9,249 thousand)
(Note 1)		 - $ 257,678 Continue to
collect		 $ - $ -

Note 1: The other receivables of Taita Chemical Co., Ltd. is from selling raw materials to Taita Chemical (Tianjin) Co., Ltd., transferred to other receivables since it had exceeded the normal credit period. Note 2: There was no amount received as of August 4, 2021.

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

  • 124 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation (APC))

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

JUNE 30, 2021

TABLE 6-5

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

Company Name Related Party Relationship Financial Statement Account and
Ending Balance (Note 3)		 Turnover
Rate (%)		 Overdue Overdue Amounts
Received in
Subsequent
Period(Note 2)		 Allowance for
Impairment
Loss
Amount Actions Taken
Asia Polymer
Corporation		 USI Corporation
USI Corporation		 Ultimate parent
company
Ultimate parent
company		 Accounts
receivable
from
related
parties
$ 242,388
Other receivables from related parties
$ 188,496
6.70		 $ -
-		 -
-		 $ 121,588
87,140

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 July 1 to August 4, 2021

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

  • 125 -

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

TABLE 7

USI CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

JANUARY 1 TO JUNE 30, 2021

Investor Investee Location Main Businesses and Products Original Investment Amount(Not e 2) Original Investment Amount(Not e 2) As of June 30, 2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares Percentage
(％)		 Carrying Amount
USI Corporation
Ever Conquest Global
Limited
Ever Victory Global
Limited
Union Polymer Int’l
Investment Corp.		 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
INOMA Corporation
Cypress Epoch Limited
Ever Conquest Global
Limited
USI Optronics Corporation
Ever Victory Global
Limited
Dynamic Ever Investments
Limited
Taita Chemical Company,
Ltd.		 12F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
Citco Building, Wickhamo Cay,
P.O. Box 662, Road Town,
Tortola, British Virgin Islands

6/F., Caltex House, 258 Hennessy
Road, Hong Kong

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

10F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)

12F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
12F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
8F., No. 39, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
12F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
12F., No. 37, Jihu Rd., Neihu Dist.,
Taipei City 114, Taiwan (ROC)
P.O. Box 957, Offshore
Incorporations Centre, Road
Town, Tortola, British Virgin
Islands
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
Room 1902, 19/F, Lee Gargen
One, 33 Hysan Aveme,
Causeway Bay, Hong Kong
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
Investment

Manufacturing and marketing of
sapphire crystal
Investment
Investment

Production and marketing of
polystyrene,
acrylonitrile,
butadiene, ABS resin, SAN
resin,
glasswool
insulation
products andplastic materials		 $ 550,000
728,439
63,482


3,490,255

471,800
28,323



171,210


221,513

250,354
1,000
150,540
7,645,980

330,000
11,621,660
( USD
417,145
thousand
)
16,405,361
( USD
588,850
thousand
)




1,749,212		 $ 550,000

728,439

63,482

3,490,255

471,800

28,323

171,210

221,513

250,354

1,000

150,540

7,645,980

330,000
11,621,660
( USD
417,145
thousand
)
16,405,361
( USD
588,850
thousand
)

1,749,212
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
417,145,000
588,850,000

126,239,833		 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

67.40

85.00

36.67		 $ 1,011,279
1,270,584
64,904
9,326,249
179,001
63,258
1,009,620
332,640
18,276
1,555
126,010
7,228,312
56,693
12,223,838
( USD
438,759
thousand
)
17,282,305
( USD
620,327
thousand)
2,998,861		 $ 83,145

3,897
(
1,022 )

1,189,941
(
1,230 )

7,872

115,334

19,749
(
1,196 )

16

-
(
18,353 )
(
25,188 )
(
27,229 )
( USD -971 thousand )
(
33,082 )
(USD-1,180 thousand )

1,030,797		 $ 83,145

3,897
(
1,022 )

1,151,420
(
861 )

8,094

46,800

5,315
(
1,128 )

16

-
(
10,853 )
(
12,807 )
 Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Sub-subsidiar
y
Sub-subsidiar
y

(Continued)

  • 126 -

(Continued)

Investor Investee Location Main Businesses and Products Original Investment Amount(Note 2) Original Investment Amount(Note 2) As of June 30, 2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares Percentage
(％)		 Carrying Amount
USIFE Investment
Co., Ltd.
Swanlake Traders Ltd.		 Asia Polymer Corporation
China General Plastics
Corporation
Acme Electronics
Corporation
Swanson
Technologies
Corporation
Taiwan United Venture
Management Corp.
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)
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)
Ugland House P.O. Box 309
George Town, Grand Cayman,
Cayman Islands
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
Business investment






$ 1,965,437




1,320,045

155,632



30,000

8,000
159,065
( USD5,709 thousand)		 $ 1,965,437

1,320,045

155,632

30,000

8,000
98,556
(USD 3,538thousand)
188,297,389

133,914,219

16,424,242

3,000,000

800,000
8,318,356
32.35

24.20

8.98

15.00
100.00

16.65		 $ 5,381,541
2,579,066
125,517
(
17,054 )
15,541
197,681
( USD 7,096 thousand )		 $ 1,477,968

1,373,385

19,749
(
5,925 )

583
18,231
( USD
651thousand )



Sub-subsidiar
y
Sub-subsidiar
y
Subsidiary
Sub-subsidiar
y
Sub-subsidiar
y
Sub-subsidiar
y

Note 1: Information on investments in mainland China is provided in Table 8.

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

  • 127 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation)

INFORMATION ON INVESTEES

JANUARY 1 TO JUNE 30, 2021

TABLE 7-1

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

Investor Investee Location Main Businesses
and Products		 Original Investment Amount (Note 2) Original Investment Amount (Note 2) As of June 30, 2021 As of June 30, 2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares Percentage
(％)		 Carrying Amount
Acme Electronics
Corporation
ACME Electronics
(Cayman) Corp.
ACME Components
(Malaysia) Sdn.
Bhd.		 ACME Electronics
(Cayman) Corp.
Golden Amber
Enterprises Limited
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
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

Production and
marketing of
sapphire
monocrystals
Investment
Production and
marketing of
soft ferrite
core		 $ 605,182
( USD18,336 thousand)
669,072
( USD20,800 thousand)
646,200
331,283
( USD11,891thousand
)
244,488
( MYR
37,964
thousand
)
$ 605,182
( USD18,336 thousand)

669,072
( USD20,800 thousand)

646,200
331,283
( USD11,891thousand
)
244,488
( 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		 $ 608,288
931,060
37,906
610,262
(USD21,905 thousand)
600,333
( MYR
93,219
thousand)		 $ 18,231
( USD 651 thousand )

46,532
(
25,188 )
19,372
(MYR 2,941 thousand )
19,641
( MYR2,982 thousand )		 $ 10,761
( USD 384 thousand)

46,532
(
8,563 )
19,372
(MYR 2,941 thousand )
19,641
( MYR2,982 thousand )		 Note 1
Note 1
Note 1
Note 1

Note 1: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

Note 2: Amounts are converted at spot rates as of 30 June 2021.

Note 3: Information on investments in mainland China is provided in Table 8-1.

  • 128 -

USI CORPORATION AND SUBSIDIARIES (Swanson Plastics Corporation) INFORMATION ON INVESTEES JANUARY 1 TO JUNE 30, 2021

TABLE 7-2

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

Investor Investee Location Main Businesses
and Products		 Original Investment Amount (Note 2) Original Investment Amount (Note 2) As of June 30, 2021 As of June 30, 2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 (Note 1) December 31, 2020
(Note 1)		 Number of Shares Percentage
(％)		 Carrying Amount
Swanson Plastics
Corporation
Swanson Plastics
(Singapore) Private
Limited
Swanson International
Ltd.		 Swanson Plastics
(Singapore) Private
Limited
Forever Young
Company Limited
Swanson International
Ltd.
Curtana Company Ltd.
Swanson Technologies
Corporation
PT. Swanson Plastics
Indonesia
Swanson Plastics
(Malaysia) Sdn.
Bhd.
Swanson Plastics
(India) Private Ltd.
PT. Swanson Plastics
Indonesia
A.S. Holdings (UK)
Limited		 2 Venture Drive Vision Exchange
#12-10 Singapore 608526
Skelton Building Main Street
P.O. Box 3136 Road Town,
Tortola British Virgin Islands
Ugland House, P.O.Box 309
George Town, Grand Cayman,
Cayman Islands, British West
Indies
Flatb 6/F Caltex House 258
Hennessy Road Wanchai,
Hong Kong
12F., No. 37, Jihu Rd., Neihu
Dist., Taipei City 114, Taiwan
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
Planting
agriculture,
sales, research
and
development of
agricultural
products and
production,
sales and
development of
EVA packaging
film and other
high
value-added
plastic products
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
-
140,000
7,979
183,692
( USD 6,593 thousand )
459,992
( USD16,511 thousand)
719,903
( USD25,840 thousand)
197,641
( USD 7,094 thousand )		 $ 808,506

1,297

454,134

4,850

140,000

7,979
183,692
( USD 6,593 thousand )

459,992
( USD16,511 thousand)

719,903
( USD25,840 thousand)
197,641
( USD7,094 thousand)
36,863

50

14,541

-

14,000

261
20,000

107,351

25,840
3,157		 100.00
100.00
100.00
-
70.00
1.00
100.00
100.00
99.00
100.00		 $ 1,706,541
76,991
1,646,094
-
(
79,584 )
6,942
557,433
( USD20,008 thousand)
284,016
( USD10,194 thousand)
687,240
( USD24,668 thousand)
567,421
( USD20,367 thousand)		 $ 68,738

3,225

48,243

-
(
5,925 )

23,393

53,797
( USD 1,905 thousand )

(
507 )
( INR -1,459 thousand )

23,393
( IDR
11,696,574
thousand
)

18,580
( USD 660 thousand )		 $ 68,738

3,225

48,243

-
(
4,147 )

234		 Note 2
Note 2
Note 3
Note 2

Note 1: The original investment amount and carrying amount were calculated using the spot exchange rate as of June 30, 2021.

Note 2: Information on investments in mainland China is provided in Table 8-2.

Note 3: Curtana Company Ltd. completed its liquidation and dissolution in the first quarter of 2021.

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

  • 129 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation)

INFORMATION ON INVESTEES

JANUARY 1 TO JUNE 30, 2021

TABLE 7-3

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

Investor Investee Location Main Businesses and
Products		 Original Investment Amount Original Investment Amount As of June 30,2021 As of June 30,2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares 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		 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)		 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		 $ 2,933,647
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		 240,361,992
80,000,000
16,308,258
19,918,185
100
3,176,019
87.27
100.00
100.00

33.33
100.00

1.74		 $ 4,092,748
1,267,739
348,007
360,937
221,603
22,440		 $ 836,292
344,972
1,003
26,798
24,404
19,749		 $ 668,856
344,972
1,003
8,932
24,404
343		 Subsidiary
Subsidiary
Subsidiary
Associate accounted for
using the equity
method
Subsidiary
Associate accounted for
using the equity
method

Note 1: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

Note 2: Information on investments in mainland China is provided in Table 8-3.

  • 130 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd.) INFORMATION ON INVESTEES

JANUARY 1 TO JUNE 30, 2021

TABLE 7-4

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

Investor Investee Location Main Businesses and
Products		 Original Investment Amount Original Investment Amount As of June 30,2021 As of June 30,2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of
Shares		 Percentage
(％)		 Carrying Amount
Taita Chemical Company,
Ltd.
TTC (BVI) Holding Co.,
Ltd.
TTC (BVI) Holding Co., Ltd.
China General Plastics Corporation
China
General
Terminal
&
Distribution Corporation
Acme Electronics Corporation
ACME Electronics (Cayman) Corp.		 British
Virgin
Islands
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
Production and marketing of
manganese zinc soft iron
oxide magnetic powder

Reinvestment		 $ 2,500,101
( USD 89,738 thousand )




65,365

41,082


44,771
47,363
( USD 1,700 thousand )		 $ 2,500,101
( USD 89,738 thousand )
65,365
41,082
44,771
47,363
( USD 1,700 thousand)		 89,738,000
10,967,785
19,918,183
4,445,019
2,695,519		 100.00
1.98
33.33
2.43
5.39		 $ 3,037,253
( USD109,018 thousand )
200,609
360,937
31,406
64,060
( USD 2,299 thousand )		 $ 126,916
( USD
4,502 thousand )
1,373,385
26,798
19,749
18,231
( USD
651 thousand )		 $ 126,916
( USD
4,502 thousand )

27,220
8,932

480
-		 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 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: Investments in mainland China are included in Table 8-4.

  • 131 -

USI CORPORATION AND SUBSIDIARIES

(Asia Polymer Corporation)

INFORMATION ON INVESTEES

JANUARY 1 TO JUNE 30, 2021

TABLE 7-5

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

Investor Investee Location Main Businesses and Products Original Investment Amount Original Investment Amount As of June 30,2021 As of June 30,2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares Percentage
(％)		 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 Corp.
Acme Electronics
Corporation
Taiwan United Venture
Capital Corp.
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
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 and marketing
of sapphire products
Reinvestment
Reinvestment
Reinvestment		 $ 383,766
( USD13,775 thousand)
200,000
58,506
( USD 2,100 thousand )
247,412
41,082
75,242
61,348
52,791
59,725
4,749,434
( USD170,475 thousand
)
146,123
( USD5,245 thousand)
25,074
( USD 900 thousand )		 $ 383,766
( USD13,775 thousand)
200,000
58,506
( USD 2,100 thousand )
247,412
41,082
75,242
61,348
52,791
59,725
4,749,434
( USD170,475 thousand
)
146,123
( USD 5,245 thousand )
25,074
( USD 900 thousand )		 11,342,594

20,000,000
2,100,000

44,653,510
19,918,184
12,266,779
6,056,623
3,913,533
5,972,464
170,475,000
8,316,450

900,000
 100.00%
100.00%
70.00%
8.07%
33.33%
7.95%
3.31%
8.33%
9.20%
40.87%
16.64%
30.00%		 $ 528,446

176,925

61,142

816,745

360,937

198,764

42,793

21,293

10,261

4,995,527

197,636

26,204		 $ 11,974

44,683
(
1,300 )

1,373,385

26,798

115,334

19,749
(
1,230 )
(
25,188 )
(
18,353 )

18,231
(
1,300 )		 $ 11,974

44,683
(
910 )

110,821

8,933

9,168

654
(
102 )
(
2,318 )
(
7,500 )

-

-		 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
APC (BVI) Holding
Co., Ltd.
Investments
accounted for
using the equity
method
APC (BVI) Holding
Co., Ltd.
Investments
accounted for
using the equity
method(Note 1)
  • 132 -

(Continued)

(Continued)
Investor Investee Location Main Businesses and Products Original Investment Amount As of June 30,2021 Net Income (Loss)
of the Investee		 Share of Profits
(Loss)		 Note
June 30, 2021 December 31, 2020 Number of Shares Percentage
(％)		 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 Limited		 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
11,621,660
( USD417,145 thousand
)
16,405,361
( USD588,850 thousand
)		 14,889
30,000
11,621,660
( USD
417,145
thousand)
16,405,361
( USD588,850 thousand
)		 1,884,548
3,000,000
417,145,000
588,850,000		 1.03%
15.00%
67.40%

85.00%
13,315
(
17,054 )

12,223,838
( USD
438,759
thousand
)

17,282,305
( USD
620,327
thousand
)
19,749
(
5,925 )
(
27,229 )
( USD -971 thousand )
(
33,082 )
( USD-1,180 thousand )
-

-

-


-
 APC Investment
Corporation
Investments
accounted for
using the equity
method
APC Investment
Corporation
Investments
accounted for
using the equity
method
Ever Conquest
Global Ltd.
Investments
accounted for
using the equity
method
Ever Victory Global
Ltd.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.

  • 133 -

USI CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

TABLE 8

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

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 7)		 Paid-in Capital
(Note 7)		 Method of
Investmen
t
Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2021
(Note 7)		 Investment Flows(Note 7) Investment Flows(Note 7) Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2021 (Note 7)		 Net Income (Loss) of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss) (Notes 6 and 8)		 Carrying Amount
as of
December 31, 2020
(Notes 6 and 8)		 Accumulated
Repatriation of
Investment Income
as of June 30 2021
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		 $ 855,999
( USD 30,725 thousand )

139,300
( USD 5,000 thousand )
40,169,281
( RMB
9,314,400
thousand
)		 Note 1
Note 2
Note 3		 $ 78,496
( USD 2,818 thousand )
139,300
( USD 5,000 thousand )
6,364,610
( USD
228,450
thousand
)		 $ -
-
-		 $ -

-

-		 $ 78,496
( USD 2,818 thousand
)

139,300
( USD 5,000 thousand
)

6,364,610
( USD228,450 thousand
)		 $ 12,621
( USD
452 thousand
)
1,597
( USD
19 thousand
)
(
41,611 )
( USD -1,489 thousand
)		 16.65
100.00
16.94		 $ 2,101
( USD
75 thousand )
1,597
( USD
19 thousand
)
7,049
( USD
-252 thousand
)		 $ 131,203
( USD 4,709 thousand
)
128,857
( USD 4,625 thousand
)
6,744,587
( USD242,089 thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2021(Note 7)		 Investment Amounts Authorized by
Investment Commission, MOEA (Notes 5 and 7)		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$6,841,595
(USD245,571thousand)		 $8,553,178
(USD307,006 thousand)		 $ - (Note 4)

Note 1: The Company reinvested in China-based companies via Swanlake Traders Ltd. (100%) by wiring transfer funds to other areas.

Note 2: it is a mainland company with 100% direct investment.

Note 3: The Company reinvested in 50% of the outstanding shares of Gulei via Ever Conquest Global Limited (59.13%), then via Ever Victory Global Limited (67.40%), and finally via Dynamic Ever Investments Limited (85.00%).

Note 4: As the Company has obtained the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10920403810 on February 11, 2020, the upper limit on investment in mainland China is not applicable.

Note 5: As included in the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10500116380 on September 1, 2016, No. 10500234240 on December 29, 2016, and No. 10800262920 on February 26, 2020, the Company was able to wire transfer

US$257,939 thousand to Gulei, and was also approved to invest and establish dealing entity in third areas with US$32,200 thousand in accordance with certificate No. 10900243220 issued by the Industrial Development Bureau, MOEA on October 5, 2020. and was also approved to invest and establish dealing entity in third areas with US$32,200 thousand in accordance with certificate No. 10900243220 issued by the Industrial Development Bureau, MOEA on October 5, 2020 and was also approved to invest and establish dealing entity in third areas with US$1,422 thousand in Acme Electronics (Kunshan) Co., Ltd. in accordance with certificate No.11000010830 issued by the Industrial Development Bureau, MOEA on January 21, 2021.

Note 6: Except for the investment inFujian Gulei Petrochemical Co., Ltd., the recognized investment gains and losses and carrying value of the current period have all been written off when the consolidated financial report is prepared. Note 7: The amount was calculated using the spot exchange rate as of June 30, 2021.

Note 8: Except for ACME Electronics (Kunshan) Co., Ltd., whose numbers were based on its financial statements reviewed by the Certified Public Accountants of its ROC parent company, all the other companies’ were based on non-reviewed financial statements.

  • 134 -

USI CORPORATION AND SUBSIDIARIES

(Acme Electronics Corporation (ACME))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

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, 2021
(Note 5)		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2021 (Note 5)		 Net Income (Loss) of
the Investee (Note 6)		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Notes 4, 6 and 8)		 Carrying Amount
as of
June 30, 2021 (Notes 7
and 8)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2021
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		 $ 855,999
( USD30,725 thousand
)
534,912
( USD19,200 thousand
)		 (二)
(二)		 $ 374,188
( USD11,144 thousand
)
619,676
( USD19,200 thousand
)
$ -

-		 $ -

-		 $ 374,188
( USD11,144 thousand
)

619,676
( USD19,200 thousand
)		 $ 12,621
( RMB2,917 thousand )
47,629
( RMB
10,959
thousand
)		 51.27
100.00		 $ 6,471
( RMB1,496 thousand )
47,629
( RMB
10,959
thousand
)		 $ 404,122
( RMB
93,707
thousand
)
929,639
( RMB
215,564
thousand
)		 $ -
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2021		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$993,864 (USD30,344 thousand)
（Notes 3 and 7）		 $1,020,595 (USD36,633 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, 2021 to June 30, 2021.

Note 7: The conversion is based on the exchange rate at June 30 2021.

Note 8: All the carrying amount and investment gains (losses) were fully eliminated upon preparation of the consolidated financial statements.

  • 135 -

USI CORPORATION AND SUBSIDIARIES

(Swanson Plastics Corporation)

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

TABLE 8-2

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

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 1)		 Paid-in Capital
(Note 1)		 Method of Investment Method of Investment Accumulated
Outward
Remittance
for Investment from
Taiwan as of
January1,2021		 Investment Flows Investment Flows Accumulated
Outward
Remittance
for Investment from
Taiwan as of June
30,2021
Net Income (Loss)
of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 3)		 Carrying Amount
as of
June 30, 2021 (Note
3)
Accumulated
Repatriation of
Investment Income
as of June 30, 2021

Outflow		 Inflow
Swanson Plastics
(Kunshan) Co.,
Ltd.
ASK-Swanson
(Kunshan) Co.,
Ltd.
Swanson Plastics
(Tianjin) Co.,
Ltd.		 Production, sales and
development of
multi-functional film,
optical film, etc.
Management of PE
release film and other
release products
Production, sales and
development of
multi-functional film,
optical film, etc.		 $ 370,259
( USD
13,290
thousand
)
253,526
( USD
9,100
thousand
)
298,102
( USD
10,700
thousand
)		 Production, sales and development of
multi-functional film, optical film, etc.
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		 $ 29,663
( USD
1,052 )
18,580
( USD660 thousand )
(
11,951 )
( USD-424 thousand
)		 100.00
100.00
100.00		 $ 29,663
( USD
1,052
thousand
)
18,580
( USD660 thousand )
(
11,951 )
( USD-424 thousand
)		 $ 1,165,151
( USD
41,822
thousand
)
567,421
( USD
20,367
thousand
)
85,058
( USD
3,053
thousand
)		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
J
u
n
e
3
0
1
,
2
0
2
1


In vestment Amounts Authorized by
I n v e s t m e n t C o m m i s s i o n , M O E A
Upper Limit
Stipulated
M		 on the Amount of Investment
by Investment Commission,
O
E
A
$ 588,131 $ 913,411
(USD32,786 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 June 30, 2021.

Note 2: According to the certificate of being qualified for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10920418410,on June 18, 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: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 136 -

USI CORPORATION AND SUBSIDIARIES

(China General Plastics Corporation (CGPC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

TABLE 8-3

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

Investee Company Main Businesses and
Products		 Paid-in Capital
(Note 1)		 Method of Investment Accumulated
Outward Remittance
for Investment from
Taiwan as of
January 1, 2021
(Note 1)		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30, 2021 (Note
1)
Net Income (Loss)
of
the Investee		 Ownership
of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 5)		 Carrying Amount
as of
June 30, 2021 (Note
1)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2021

Outflow		 Inflow
Continental General
Plastics (ZhongShan)
Co., Ltd. (“CGPC
(ZS)”) (Note 4)
CGPC Consumer
Products Corporation
(“CGPC (CP)”) (Note
4)		 Manufacture and
marketing of PVC
leather and third-time
processed products
Manufacture and
marketing of PVC
third-time processed
products		 $ 557,200
( USD
20,000
thousand
)
41,790
( USD
1,500
thousand
)		 Indirect investment via CGPC
(BVI) Holding Co., Ltd.
Indirect investment via CGPC
(BVI) Holding Co., Ltd.		 $ 557,200
( USD
20,000
thousand
)
41,790
( USD
1,500
thousand
)		 $ -
-		 $ -
-		 $ 557,200
( USD
20,000
thousand
)
41,790
( USD
1,500
thousand
)		 $ 920
( USD 32 thousand )
15
( USD 1 thousand )		 100.00
100.00		 $ 920
( USD 32 thousand )
15
( USD 1 thousand )		 $ 264,079
( USD
9,479
thousand
)
13,371
( USD480 thousand )		 $ -
-

Ac c u mu l a t e d Ou t wa r d Re mi t t a n ce f or Upper Limit on the Amount of Investment I n v e s t m e n t A m o u n t s A u t h o r i z e d b y Investment in Mainland China as of June 30, 2021 St ip ula te d b y In ve s t me nt Commi ss i on, Investment Commission, MOEA (Note 1) ( N o t e s 1 a n d 3 ) M O E A ( N o t e 2 ) $754,505（USD27,082 thousand） $874,804（USD31,400 thousand） $ -

Note 1: The conversion is based on the spot exchange rate of June 30, 2021.

  • 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 $19,056 thousand (US$684 thousand), the investment amount of Union (ZS) of $25,018 thousand (US$898 thousand) and the investment amount of Continental General Plastics (SanHe) Co., Ltd. of $114,440 thousand (US$4,000 thousand).

Note 4: The board of directors of CGPC passed a resolution to dissolve CGPC (ZS) and CGPC (CP) on October 24, 2011. However, CGPC has leased the idle plant of the discontinued unit since 2021. Considering that the operation is not discontinued in essence, it has decided to transfer the discontinued unit back to the continuing business unit. Please refer to Note 12.

Note 5: All the transactions were fully eliminated upon preparation of the consolidated financial statements; Investment gains (losses) are recognized in financial statements that have not been reviewed by CPA.

  • 137 -

USI CORPORATION AND SUBSIDIARIES

(Taita Chemical Company, Ltd. (TTC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

TABLE 8-4

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

Investee Company Main Businesses and
Products		 Paid-in Capital Paid-in Capital Method of Investment Accumulated
Outward Remittance
for Investment from
Taiwan as of
January1, 2021		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January1, 2021		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
June 30 2021		 Net Income (Loss) of
the Investee (Note 5)		 Ownership of
Direct or
Indirect
Investment
(%)		 Investment Gain
(Loss)
(Note 5)		 Carrying Amount
as of
June 30 2021 (Note 5)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2021
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		 $ 1,288,525
( USD 46,250 thousand )
（Note 1）
761,971
( USD 27,350 thousand )
（Note 2）
855,999
( USD 30,725 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		 $ 1,197,980
( USD 43,000 thousand )
724,360
( USD 26,000 thousand )
37,723
( USD 1,354 thousand )		 $ -
-
-		 $ -
-
-		 $ 1,197,980
( USD 43,000 thousand )
724,360
( USD 26,000 thousand )
37,723
( USD 1,354 thousand )		 $ 134,679
( USD 4,776 thousand )
(
6,136 )
( USD
-217thousand )
12,621
( USD
452 thousand )		 100.00
100.00
5.39		 $ 134,679
( USD 4,776 thousand )
(Note 6)
(
6,136 )
( USD
-217thousand )
(Note 6)
681
( USD
24 thousand )
$ 3,045,583
( USD109,317thousand )
(Note 6)


(
109,372 )
( USD 3,926 thousand )
(Note 6)

42,517
( USD 1,526 thousand )
$ -

-
-
Accumulated Outward Remittance for
Investment in Mainland China as of
June 30,2021		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$1,960,063
(USD70,354 thousand)		 $ 2,112,270
(USD 75,817 thousand)（Note 3）		 $ -（Note 4）

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

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

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

Note 4: As the TTC obtained the certificate of qualification of operating headquarters issued by the Industrial Development Bureau No. 10820415160 on June 6, 2019, the upper limit on investment in Mainland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable. Note 5: The recognition of investment income (loss) was based on financial statements audited by CPA of the parent company of TTC in Taiwan.

Note 6: All the transactions were fully eliminated upon preparation of the consolidated financial statements.

  • 138 -

USI CORPORATION AND REINVESTMENT COMPANIES

(Asia Polymer Corporation (APC))

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

JANUARY 1 TO JUNE 30, 2021

TABLE 8-5

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

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
January1, 2021		 Accumulated
Outward Remittance
for Investment from
Taiwan as of
January1, 2021		 Investment Flows Investment Flows Accumulated
Outward Remittance
for Investment from
Taiwan as of
J u n e 3 0 , 2 0 2 1
Net Income (Loss) of
the Investee (Note 3)		 Ownership of
Direct or
Indirect
Investment
(%)
Investment Gain
(Loss)
(Note 3)		 Carrying Amount
as of
June 30, 2021 (Note 4)		 Accumulated
Repatriation of
Investment Income
as of June 30, 2021
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		 $ 855,999
( USD30,725 thousand)
69,650
( USD 2,500 thousand)
40,169,281
( RMB
9,314,400
thousand)		 (2)
ACME Electronics
(Cayman) Corp.
(2)
APC
(BVI)
Holding
Co.,
Ltd.
(2)
Dynamic Ever
Investments
Ltd., (Note 2)		 $ 116,382
( USD 4,177 thousand)
84,572


( USD 3,036 thousand)
4,398,617
( USD157,883 thousand)		 $ -

-

-
 $ -

-

-		 $ 116,382
( USD 4,177 thousand)

84,572
( USD 3,036 thousand)

4,398,617
( USD157,883 thousand)		 B $ 12,621
C
9,222
C (
41,611 )
 16.64
100.00
11.71		 $ 2,100
9,222
(
4,873 )		 $ 131,172
128,034

4,662,453		 $ -
-
-
Accumulated Outward Remittance for
Investment in Mainland China as of June 30, 2021		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission,
MOEA
$ 4,733,859（Note5）
（USD 169,916 thousand）		 $6,236,060
（USD223,836 thousand）		 $ -
(Note 6)

Note 1: Investments are divided into three categories as follows:

  • a. Direct investment.

b. Investments through a holding company registered in a third region (Please specify the investment company in the third region).

  • c. Others.

Note 2: The Company reinvested in 50% of the outstanding shares of Gulei via Ever Conquest Global Limited (40.87%), then via Ever Victory Global Ltd. (67.40%), and finally via Dynamic Ever Investments Ltd. (85.00%).

Note 3: For the column of investment gain (loss):

  1. If there is no investment gain (loss) during the preparation, it should be noted.

  2. If the basis for the recognition of investment gain (loss) is classified into the following three types, it should be noted as follows:

  3. A. Financial statements audited by international accounting firms which have a cooperation relationship with an accounting firm in the Republic of China.

  4. B. Financial statements audited by the parent company’s CPA.

  5. C. Others

Note 4: The amount was calculated using the exchange rate as at June 30, 2021.

Note 5: APC indirectly invested subsidiaries in Mainland China through APC (BVI) Holding Co., Ltd. investing in Silicon Technology Investment (Cayman) Corp. (STIC) and Solargiga Energy Holdings Ltd.

Note 6: As APC has obtained the certificate of qualification for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10800262940 on February 26, 2020, the upper limit on investments in mainland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable.

Note 7: Except for the investment in Fujian Gulei Petrochemical Co., Ltd., all the investment gains (losses) and carrying amount as of June 30, 2021 were fully eliminated upon preparation of the consolidated financial statements.

  • 139 -

USI CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

JANUARY 1 TO JUNE 30, 2021

TABLE 9

(In Thousands of New Taiwan Dollars)

No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transaction Details Transaction Details
Financial Statement Accounts Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
2
2
2
2
2		 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
USI Corporation
USI Corporation
USI Corporation
USI Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
Asia Polymer Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation
China General Plastics Corporation		 Swanson Plastics Corp.
Forever Young Company Limited
USI Trading (Shanghai) Co., Ltd.
USI (Hong Kong) Company Limited
Asia Polymer Corporation
Swanson Plastics Corp.
Asia Polymer Corporation
Swanson Plastics Corp.
Forever Young Company Limited
USI (Hong Kong) Company Limited
USI Trading (Shanghai) Co., Ltd.
Swanson Plastics Corp.
Asia Polymer Corporation
Taiwan VCM Corporation
Asia Polymer Corporation
Cypress Epoch Limited
Asia Polymer Corporation
Taita Chemical Company, Ltd.
USI Management Consulting Corporation
Asia Polymer Corporation
China General Terminal & Distribution
Corporation
Swanson Plastics Corp.
Swanson Plastics Corp.
USI Trading (Shanghai) Co., Ltd.
USI Trading (Shanghai) Co., Ltd.
USI Management Consulting Corporation
China General Terminal & Distribution
Corporation
Swanson Plastics Corp.
Taita Chemical Company, Ltd.
Asia Polymer Corporation
USI Management ConsultingCorporation		 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
3
3
3
3
3
3
3
3
3		 Sales revenue
Sales revenue
Sales revenue
Sales revenue
Purchase
Purchase
Revenue from sale of raw
materials
Accounts receivable
Accounts receivable
Accounts receivable
Accounts receivable
Other receivables
Other receivables
Other receivables
Other payables
Other payables
Dividends payable
Dividends payable
Revenue from management
services
Accounts payable
Storage tank agency operation
fee
Purchase
Sales revenue
Accounts receivable
Sales
Management service expenses
Purchase
Purchase
Other payables
Other payables
Management service expenses		 $ 48,696
57,556
104,662
104,737
724,172
40,738
69,162
14,456
17,318
27,745
34,377
50,093
10,290
11,391
87,140
126,010
101,356
15,110
64,324
236,636
14,679
20,435
24,465
42,866
65,858

20,467
39,519
28,593
20,650
80,602

38,384		 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
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		 0.14%
0.17%
0.31%
0.31%
2.13%
0.12%
0.20%
0.02%
0.02%
0.03%
0.04%
0.06%
0.01%
0.01%
0.11%
0.15%
0.12%
0.02%
0.19%
0.29%
0.04%
0.06%
0.07%
0.05%
0.19%
0.06%
0.12%
0.08%
0.03%
0.10%
0.11%

(Continued)

  • 140 -

(Continued)

No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transaction Details Transaction Details
Financial Statement Accounts Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
2
2
2
2
2
2
2
2
2
3
3
3
3
4
4
4
4
4
4
4
4
4
5
5
5
5
5
6
6
6
7
7
7		 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
China General Plastics Corporation
China General Plastics Corporation
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Taita Chemical Company, Ltd.
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics Corporation
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
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 Corp.
Swanson Plastics Corp.
Swanson Plastics Corp.		 Union Polymer Int’l Investment Corp.
Taiwan VCM Corporation
Taiwan VCM Corporation
Taiwan VCM Corporation
CGPC America Corporation
CGPC America Corporation
CGPC Polymer Corporation
CGPC Polymer Corporation
CGPC Polymer Corporation
USI Management Consulting Corporation
China General Terminal & Distribution
Corporation
Taita Chemical (Zhongshan) Co., Ltd.
Taita Chemical (Tianjin) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
ACME Electronics (Cayman) Corp.
Acme Electronics (Guangzhou) Co., Ltd.
Acme Electronics (Kunshan) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
Acme Electronics (Guangzhou) Co., Ltd.
ACME Ferrite Product Sdn. Bhd.
ACME Ferrite Product Sdn. Bhd.
Taiwan VCM Corporation
Taiwan VCM Corporation
Taiwan VCM Corporation
Asia Polymer Corporation
Asia Polymer Corporation
China General Plastics Corporation		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Dividends payable
Other receivables
Accounts payable
Purchase
Accounts receivable
Sales revenue
Other receivables
Accounts payable
Purchase
Management service expenses
Storage tank agency operation
fee
Sales revenue
Other receivables
Sales revenue
Sales revenue
Sales cost
Sales cost
Accounts receivable
Accounts receivable
Other receivables
Notes and accounts payable
Notes and accounts payable
Sales revenue
Sales cost
Accounts receivable
Sales revenue
Accounts receivable
Accounts payable
Other payables
Purchase
Sales cost
Sales revenue
Sales revenue		 $ 248,707
600,925
1,017,129
3,281,441
191,107
335,736
256,340
10,581
35,839

24,604
10,867
467,386
257,678
134,341
65,017
38,353
195,273
66,213
23,810
225,317
102,809
21,295
37,500
13,550
14,832
61,423
20,094
1,571,100
18,976
3,061,898
24,465
20,435
27,146		 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
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		 0.30%
0.73%
1.24%
9.67%
0.23%
0.99%
0.31%
0.01%
0.11%
0.07%
0.03%
1.38%
0.31%
0.40%
0.19%
0.11%
0.58%
0.08%
0.03%
0.27%
0.13%
0.03%
0.11%
0.04%
0.02%
0.18%
0.02%
1.91%
0.02%
9.02%
0.07%
0.06%
0.08%

(Continued)

  • 141 -

(Continued)

No.
(Note 1)		 Investee Company Counterparty Relationship
(Note 2)		 Transaction Details Transaction Details
Financial Statement Accounts Amount
(Note 3)		 Payment Terms Ratio to Total
Sales or Assets
(%)(Note 4)
7
7
7
7
7
8
8
8
8
8
8
8
8
8
8
9
9
9
10
10
10
11		 Swanson Plastics Corp.
Swanson Plastics Corp.
Swanson Plastics Corp.
Swanson Plastics Corp.
Swanson Plastics Corp.
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 (Kunshan) Corp.
Swanson Plastics (Singapore) Private
Limited
Swanson Plastics (Singapore) Private
Limited
Swanson Plastics (Singapore) Private
Limited
ASK-Swanson(Kunshan)Co.,Ltd.		 USI Management Consulting Corporation
Forever Young Company Limited
Forever Young Company Limited
PT. Swanson Plastics Indonesia
Swanson Plastics (Kunshan) Corp.
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
PT. Swanson Plastics Indonesia
SWANSON INTERNATIONAL LTD.
ASK-Swanson (Kunshan) Co., Ltd.
ASK-Swanson (Kunshan) Co., Ltd.
Swanson Plastics (Tianjin) Corp.
Swanson Plastics (Malaysia) Sdn. Bhd.
Swanson Plastics (Malaysia) Sdn. Bhd.
PT Swanson Plastics Indonesia
Swanson Plastics(Tianjin)Corp.		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Management service expenses
Sales revenue
Other revenues
Accounts receivable
Accounts receivable
Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Accounts payable
Sales cost
Sales revenue
Accounts receivable
Sales revenue
Other receivables
Accounts receivable
Sales revenue
Prepayments
Accounts payable
Sales cost
Sales cost
Other receivables
$ 12,231
18,689
10,142
19,233
25,381
27,452
35,610
162,261
45,567
12,654
71,281
207,842
15,148
58,286
86,505
19,496
56,341
20,921
31,889
106,859
32,458
163,302		 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
No significant difference
No significant difference		 0.04%
0.06%
0.03%
0.02%
0.03%
0.08%
0.04%
0.48%
0.06%
0.02%
0.21%
0.61%
0.02%
0.17%
0.11%
0.02%
0.17%
0.03%
0.04%
0.31%
0.10%
0.20%

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.

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.

  • 142 -

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

JANUARY 1 TO JUNE 30, 2021

JANUARY 1 TO JUNE 30, 2021 1 TO JUNE 30, 2021
TABLE 10 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Investee Company Financial Statement
Account		 Amount Percentage
(％)		 Price Transaction Details 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
Other payables
from related
parties
Revenue from
management
services
Other revenues
Other receivables
from related
parties		 $ 104,,737
104,662
328
70
9,654
128
5,100		 1.39
1.39
-
-
-
-		 No significant
difference
-

-

-

-

-		 Within 60 days
after selling on
credit
-
-
-
-
-		 No significant
difference
-
-
-
-
-		 $ 19,163
46,775
-
-
-
-		 2.15
5.24
-
-
-
-
$ -

-

-

-

-

-		 -
-
-
-
-
-

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

  • 143 -

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

JANUARY 1 TO JUNE 30, 2021

TABLE 10-1

(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 Trading (Shanghai) Co., Ltd. Sales revenue
Commission expense
Non-operating income
and expense - rental
income
Management services
expense
Other
receivables
from related parties
Other payables from
related parties		 $ 65,858

267


626

59

2,743

7,831		 1.5
-
-
-
-
-		 No significant
difference
-
-
-
-
-		 Within 90 days
after selling on
credit
-
-
-
-
-		 No significant
difference
-
-
-
-
-		 $ 42,866
-
-
-
-
-		 0.23
-
-
-
-
-		 $ -
-
-
-
-
-		 -
-
-
-
-
-

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

  • 144 -

USI CORPORATION

INFORMATION ON MAJOR SHAREHOLDERS

JUNE 30, 2021

TABLE 11

Name of major shareholder Shares Shares
Number of Shares Percentage of
Ownership (%)
Shing Lee Enterprise (Hong Kong) Limited
Wholegainer Company Limited’s trust account under
custody of Fubon Securities Co., Ltd.
Asia Polymer Corporation		 173,776,546

110,000,000
101,355,673		 14.61
9.25
8.52

  • Note 1: The table discloses shareholding information of 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.

  • 145 -

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