YC - Audit Report / Information 2021

YEM CHIO CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2021 AND 2020

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Yem Chio Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Yem Chio Co., Ltd. (the “Company”) as at December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

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

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Company’s 2021 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2021 parent company only financial statements are stated as follows:

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Valuation of inventory

Description

Refer to Note 4(12) for accounting policy on inventory valuation, Note 5(2) for uncertainty of accounting estimates and assumptions applied on inventory valuation and Note 6(6) for details of inventories. As of December 31, 2021, the inventories and allowance for valuation loss amounted to NT$5,695,195 thousand and NT$12,744 thousand, respectively.

The Company is mainly engaged in the manufacture, processing, and sales of packaging materials, including BOPP film, adhesives and polystyrene sheets, as well as land development and construction. The Company’s inventories are measured at the lower of cost and net realisable value, and an allowance for inventory valuation losses is provided based on the net realisable value and usable condition of individually identified obsolete or slow-moving inventories.

Considering that the Company’s inventories and the allowance for inventory valuation losses are material to the financial statements and the determination of net realisable value for obsolete or slowmoving inventories involves judgements and estimates, we identified the allowance for inventory valuation loss as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Assessed and obtained an understanding of provision policies in relation to the allowance for inventory valuation losses.
For packaging materials business:
(1) Obtained the net realisable value valuation report of inventories, assessed the calculation logic, verified the related records, and selected samples to check the source data of net realisable value.
(2) Obtained the details of the individually identified obsolete or slow-moving inventories, reviewed the related supporting documents, and verified the records.
(3) Obtained an understanding of the Company’s warehousing control procedures. Reviewed annual physical inventory count plan and participated in the annual inventory count in order to assess the classification of obsolete inventory and effectiveness of obsolete inventory internal control.

~3~

For land development and construction business:
Obtained the valuation data in relation to the net realisable value of inventories to ascertain whether the data source, assumptions and methods adopted by the Company are reasonable. Tested data in order to check the reasonableness of the net realisable value of construction-in-progress and land held for building.

Valuation of investment property

Description

Refer to Note 4(17) for accounting policy on investment property, Note 5(2) for uncertainty of accounting estimates and assumptions applied on fair value valuation and Note 6(11) for details of investment property. As of December 31, 2021, the fair value of investment property was NT$2,098,276 thousand.

The Company’s investment property is valued by external experts using the fair value model. Additionally, the Company’s investment property is material to the financial statements. Given that the valuation process is subject to significant assumptions on discount rate and future lease income and has material effect on the fair value measurement, we considered the valuation of investment property as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Assessed the qualification and independence of appointed external appraisers in accordance with the Company policy.
Reviewed whether the valuation method used in the appraisal report is consistent with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
For investment properties accounted for using the income approach, assessed whether the lease income and rental growth rate are reasonable by referencing to the market rental rate.

Other matter –Audits by other auditors

We did not audit the financial statements of certain investees accounted for under the equity method. The balances of these investments amounted to NT$1,116,201 thousand and NT$1,083,577 thousand, both constituting 5% of total assets, as at December 31, 2021 and 2020, respectively, and the comprehensive loss amounted to (NT$7,209) thousand and (NT$8,971) thousand, constituting (1%) and (2%) of total comprehensive income for the years then ended, respectively. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other auditors.

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Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of the parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

Lin, Yi-Fan

[Chen, Ching Chang ]

For and on Behalf of PricewaterhouseCoopers, Taiwan March 25, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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YEM CHIO CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2021 AMOUNT % `$` `328,252` `2` `751` `-` `-` `-` `196,623` `1` `69,027` `-` `547,261` `3` `246,884` `1` `10,482` `-` `2,573,027` `12` `5,682,451` `26` `-` `-` `512,724` `2` `10,167,482` `47` `5,597` `-` `209,132` `1` `5,555,713` `26` `3,361,809` `16` `2,098,276` `10` `166` `-` `76,256` `-` `2,464` `-` `11,309,413` `53` `$` `21,476,895` `100`	December 31, 2020	December 31, 2020
	AMOUNT `$` `328,252` `751` `-` `196,623` `69,027` `547,261` `246,884` `10,482` `2,573,027` `5,682,451` `-` `512,724` `10,167,482` `5,597` `209,132` `5,555,713` `3,361,809` `2,098,276` `166` `76,256` `2,464` `11,309,413` `$` `21,476,895`	AMOUNT `$` `267,761` `2,009` `8,632` `203,835` `42,211` `349,705` `118,132` `165,758` `1,059,963` `5,029,610` `376,262` `547,662` `8,171,540` `5,597` `209,019` `6,716,040` `3,499,157` `2,090,466` `188` `70,295` `2,952` `12,593,714` `$` `20,765,254`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Financial assets at fair value through other comprehensive income - current 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventories, net 1460 Non-current assets held for sale, net 1470 Other current assets 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non- current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment, net 1760 Investment property, net 1780 Intangible assets, net 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`1` `-` `-` `1` `-` `2` `-` `1` `5` `24` `2` `3`
			`39`
			`-` `1` `33` `17` `10` `-` `-` `-`
			`61`
			`100`

(Continued)

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YEM CHIO CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity December 31, 2021
December 31, 2020
Notes
AMOUNT
%
AMOUNT
%
6(12) and 8
$
3,372,822
16
$
3,787,905
18
6(13)
410,000
2
300,000
1
6(22) and 7
479,895
2
334,414
2
76,357
-
37,785
-
151,526
1
140,464
1
7
16,694
-
15,718
-
119,103
1
138,237
1
7
4,829
-
536,217
3
78,379
-
27,277
-
6(14)(16)(17) and 8
3,006,078
14
2,681,755
13
6(15)
10,804
-
165,386
1
7,726,487
36
8,165,158
40
6(16) and 8
-
-
789,667
4
6(17) and 8
2,409,045
11
1,855,346
9
6(28)
85,149
1
141,613
-
6(7)(18)
902,655
4
392,535
2
3,396,849
16
3,179,161
15
11,123,336
52
11,344,319
55
6(19)
6,380,540
30
5,700,402
27
2,333
-
150,076
1
6(20)
2,384,602
10
2,592,442
13
6(21)
359,243
2
279,187
1
490,572
2
637,634
3
1,256,999
6
800,561
4
(
106,385)
- (
176,879) (
1 )
6(19)
(
414,345) (
2) (
562,488) (
3 )
10,353,559
48
9,420,935
45
9
11
$
21,476,895
100
$
20,765,254
100

Current liabilities
2100
Short-term borrowings
2110
Short-term notes and bills payable
2130
Current contract liabilities
2150
Notes payable
2170
Accounts payable
2180
Accounts payable - related parties
2200
Other payables
2220
Other payables - related parties
2230
Current income tax liabilities
2320
Long-term liabilities, current portion
2399
Other current liabilities
21XX
Total current liabilities
Non-current liabilities
2530
Corporate bonds payable
2540
Long-term borrowings
2570
Deferred income tax liabilities
2600
Other non-current liabilities
25XX
Total non-current liabilities
2XXX
Total liabilities
Equity
Share capital
3110
Common stock
3130
Certificate of entitlement to new
shares from convertible bonds
Capital surplus
3200
Capital surplus
Retained earnings
3310
Legal reserve
3320
Special reserve
3350
Unappropriated retained earnings
Other equity interest
3400
Other equity interest
3500
Treasury stocks
3XXX
Total equity
Significant contingent liabilities and
unrecognised contract commitments
Significant events after the balance
sheet date
3X2X
Total liabilities and equity

Liabilities and Equity	December 31, 2021 December 31, 2020 Notes AMOUNT % AMOUNT % 6(12) and 8 `$` `3,372,822` `16` `$` `3,787,905` `18` 6(13) `410,000` `2` `300,000` `1` 6(22) and 7 `479,895` `2` `334,414` `2` `76,357` `-` `37,785` `-` `151,526` `1` `140,464` `1` 7 `16,694` `-` `15,718` `-` `119,103` `1` `138,237` `1` 7 `4,829` `-` `536,217` `3` `78,379` `-` `27,277` `-` 6(14)(16)(17) and 8 `3,006,078` `14` `2,681,755` `13` 6(15) `10,804` `-` `165,386` `1` `7,726,487` `36` `8,165,158` `40` 6(16) and 8 `-` `-` `789,667` `4` 6(17) and 8 `2,409,045` `11` `1,855,346` `9` 6(28) `85,149` `1` `141,613` `-` 6(7)(18) `902,655` `4` `392,535` `2` `3,396,849` `16` `3,179,161` `15` `11,123,336` `52` `11,344,319` `55` 6(19) `6,380,540` `30` `5,700,402` `27` `2,333` `-` `150,076` `1` 6(20) `2,384,602` `10` `2,592,442` `13` 6(21) `359,243` `2` `279,187` `1` `490,572` `2` `637,634` `3` `1,256,999` `6` `800,561` `4` `(` `106,385)` `- (` `176,879) (` `1 )` 6(19) `(` `414,345) (` `2) (` `562,488) (` `3 )` `10,353,559` `48` `9,420,935` `45` 9 11 `$` `21,476,895` `100` `$` `20,765,254` `100`
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3130 Certificate of entitlement to new shares from convertible bonds Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items 2021
2020
Notes
AMOUNT
%
AMOUNT
%
6(22) and 7
$
5,077,343
100
$
4,176,275
100
6(6)(27) and 7
(
4,299,773) (
85) (
3,624,320) (
87)
777,570
15
551,955
13
6(27)
(
224,449) (
5) (
202,425) (
5)
(
121,722) (
2) (
125,942) (
3)
(
2,515)
-
(
2,713)
-
(
348,686) (
7) (
331,080) (
8)
428,884
8
220,875
5
6(23) and 7
21,138
-
8,024
-
6(24) and 7
89,085
2
126,102
3
6(25)
599,537
12
(
280,218) (
7)
6(26) and 7
(
76,077) (
2) (
113,413) (
3)
6(7)
(
123,401) (
2)
895,491
22
510,282
10
635,986
15
939,166
18
856,861
20
6(28)
(
71,404) (
1) (
51,257) (
1)
$
867,762
17
$
805,604
19
6(18)
$
1,846
-
$
5,575
-
6(3)
-
-
(
2,596)
-
396,522
8
(
1,533)
-
6(28)
(
369)
-
(
1,115)
-
397,999
8
331
-
(
101,671) (
2) (
249,295) (
6)
(
7,274)
-
12,005
1
(
108,945) (
2) (
237,290) (
5)
$
289,054
6
($
236,959) (
5)
$
1,156,816
23
$
568,645
14
6(29)
$
1.47
$
1.42
6(29)
$
1.32
$
1.23

4000
Sales revenue
5000
Operating costs
5950
Net operating margin
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6000
Total operating expenses
6900
Operating profit
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7070
Share of (loss) profit of associates and
joint ventures accounted for using equity
method
7000
Total non-operating income and
expenses
7900
Profit before income tax
7950
Income tax expense
8200
Profit for the year
Other comprehensive income (loss)
Components of other comprehensive
income that will not be reclassified to
profit or loss
8311
Actuarial gains on defined benefit plans
8316
Unrealised losses from investments in
equity instruments measured at fair value
through other comprehensive income
8330
Share of other comprehensive income
(loss) of associates and joint ventures
accounted for using equity method
8349
Income tax related to components of
other comprehensive income that will not
be reclassified to profit or loss
8310
Other comprehensive income that will
not be reclassified to profit or loss
Components of other comprehensive
income that will be reclassified to profit
or loss
8361
Financial statements translation
differences of foreign operations
8380
Share of other comprehensive (loss)
income of associates and joint ventures
accounted for using equity method
8360
Other comprehensive loss that will be
reclassified to profit or loss
8300
Other comprehensive income (loss) for
the year
8500
Total comprehensive income for the year
Earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share

Items	2021 2020 Notes AMOUNT % AMOUNT % 6(22) and 7 `$` `5,077,343` `100` `$` `4,176,275` `100` 6(6)(27) and 7 `(` `4,299,773) (` `85) (` `3,624,320) (` `87)` `777,570` `15` `551,955` `13` 6(27) `(` `224,449) (` `5) (` `202,425) (` `5)` `(` `121,722) (` `2) (` `125,942) (` `3)` `(` `2,515)` `-` `(` `2,713)` `-` `(` `348,686) (` `7) (` `331,080) (` `8)` `428,884` `8` `220,875` `5` 6(23) and 7 `21,138` `-` `8,024` `-` 6(24) and 7 `89,085` `2` `126,102` `3` 6(25) `599,537` `12` `(` `280,218) (` `7)` 6(26) and 7 `(` `76,077) (` `2) (` `113,413) (` `3)` 6(7) `(` `123,401) (` `2)` `895,491` `22` `510,282` `10` `635,986` `15` `939,166` `18` `856,861` `20` 6(28) `(` `71,404) (` `1) (` `51,257) (` `1)` `$` `867,762` `17` `$` `805,604` `19` 6(18) `$` `1,846` `-` `$` `5,575` `-` 6(3) `-` `-` `(` `2,596)` `-` `396,522` `8` `(` `1,533)` `-` 6(28) `(` `369)` `-` `(` `1,115)` `-` `397,999` `8` `331` `-` `(` `101,671) (` `2) (` `249,295) (` `6)` `(` `7,274)` `-` `12,005` `1` `(` `108,945) (` `2) (` `237,290) (` `5)` `$` `289,054` `6` `($` `236,959) (` `5)` `$` `1,156,816` `23` `$` `568,645` `14` 6(29) `$` `1.47` `$` `1.42` 6(29) `$` `1.32` `$` `1.23`
4000 Sales revenue 5000 Operating costs 5950 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of (loss) profit of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) Components of other comprehensive income that will not be reclassified to profit or loss 8311 Actuarial gains on defined benefit plans 8316 Unrealised losses from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8380 Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method 8360 Other comprehensive loss that will be reclassified to profit or loss 8300 Other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these parent company only financial statements.

~10~

YEM CHIO CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

2020 Balance at January 1, 2020 Profit for the year Other comprehensive income (loss) Total comprehensive income (loss) Legal reserve used to offset against accumulated deficit Cash dividends from capital surplus Dividends for which the claim period has elasped and unclaimed by shareholders Disposal of equity investments valued at fair value through other comprehensive income Disposal of equity investments valued at fair value through other comprehensive income of subsidiaries Changes in ownership interests in subsidiaries Purchase of treasury shares Cancellation of treasury stocks Conversion of convertible bonds The Company's stocks held by subsidiaries deemed as cash dividends distributed to treasury stocks Balance at December 31, 2020 2021 Balance at January 1, 2021 Profit for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of retained earnings for the year ended December 31, 2020 Cash dividends Stock dividends Legal reserve Special reserve reversal Disposal of equity investment valued at fair value through other comprehensive income Disposal of investments in equity instruments designated at fair value through other comprehensive income of subsidiaries Disposal of treasury shares by subsidiaries Cancellation of treasury stocks Conversion of convertible bonds Changes in ownership interests in subsidiaries Conversion of certificates of bonds-to-share Difference between consideration and carrying amount of subsidiaries acquired or disposed The Company's stocks held by subsidiaries deemed as cash dividends distributed to treasury stocks Balance at December 31, 2021	Notes		Capital	Capital	Capital		Capital surplus				Retained Earnings						Other EquityInterest				Treasurystocks		Total
			Share capital - common stock		Certificate of entitlement to new shares from convertible bond				Legal reserve		Special reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income		Revaluation surplus
	6(21) 6(20)(21) 6(20) 6(3) 6(20) 6(19) 6(19)(20) 6(19)(20) 6(20) 6(21) 6(3) 6(19) 6(19)(20) 6(19)(20) 6(20) 6(20) 6(20)		`$` `5,718,342` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `17,940` `)` `-` `-` `$` `5,700,402` `$` `5,700,402` `-` `-` `-` `-` `348,445` `-` `-` `-` `-` `-` `(` `93,800` `)` `-` `-` `425,493` `-` `-` `$` `6,380,540`		`$` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `150,076` `-` `$` `150,076` `$` `150,076` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `277,750` `-` `(` `425,493 )` `-` `-` `$` `2,333`		`$` `2,751,507` `-` `-` `-` `-` `(` `166,265` `)` `86` `-` `-` `(` `33,223` `)` `-` `(` `4,692` `)` `39,630` `5,399` `$` `2,592,442` `$` `2,592,442` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `45,473` `)` `72,503` `(` `1,929` `)` `-` `(` `243,740` `)` `10,799` `$` `2,384,602`		`$` `620,361` `-` `-` `-` `(` `341,174 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `279,187` `$` `279,187` `-` `-` `-` `-` `-` `80,056` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `359,243`		`$` `637,634` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `637,634` `$` `637,634` `-` `-` `-` `-` `-` `-` `(` `147,062` `)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `490,572`		`($` `341,174 )` `805,604` `17,122` `822,726` `341,174` `-` `-` `(` `1,528 )` `(` `20,637 )` `-` `-` `-` `-` `-` `$` `800,561` `$` `800,561` `867,762` `12,787` `880,549` `(` `348,445 )` `(` `348,445 )` `(` `80,056 )` `147,062` `(` `7,999 )` `213,772` `-` `-` `-` `-` `-` `-` `-` `$` `1,256,999`		`($` `295,381 )` `-` `(` `241,400 )` `(` `241,400 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `536,781 )` `($` `536,781 )` `-` `(` `105,221 )` `(` `105,221 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `642,002 )`		`($` `89,158` `)` `-` `(` `12,681` `)` `(` `12,681` `)` `-` `-` `-` `1,528` `20,637` `-` `-` `-` `-` `-` `($` `79,674` `)` `($` `79,674` `)` `-` `381,488` `381,488` `-` `-` `-` `-` `7,999` `(` `213,772` `)` `-` `-` `-` `-` `-` `-` `-` `$` `96,041`		`$` `439,576` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `439,576` `$` `439,576` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `439,576`		`($` `414,770 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `170,350 )` `22,632` `-` `-` `($` `562,488 )` `($` `562,488 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `8,870` `139,273` `-` `-` `-` `-` `-` `($` `414,345 )`		`$` `9,026,937` `805,604` `(` `236,959` `)` `568,645` `-` `(` `166,265` `)` `86` `-` `-` `(` `33,223` `)` `(` `170,350` `)` `-` `189,706` `5,399` `$` `9,420,935` `$` `9,420,935` `867,762` `289,054` `1,156,816` `(` `348,445` `)` `-` `-` `-` `-` `-` `8,870` `-` `350,253` `(` `1,929` `)` `-` `(` `243,740` `)` `10,799` `$` `10,353,559`

The accompanying notes are an integral part of these parent company only financial statements.

~11~

YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Loss (gain) on financial assets at fair value through
profit or loss

Gain on disposal of non-current assets held for sale

Share of loss (profit) of associates and joint ventures
accounted for under equity method

Depreciation

Loss on disposal of property, plant and equipment

Loss on write-off of investment property

(Gain) loss on fair value adjustment of investment
property

Amortization

Employees' compensation

Interest income

Dividend income

Interest expense

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net
Accounts receivable, net
Accounts receivable - related parties
Other receivables
Other receivables - related parties
Inventories
Other current assets
Changes in operating liabilities
Current contract liabilities
Notes payable
Notes payable - related parties
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Other non-current liabilities
Cash (outflow) inflow generated from operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows from operating activities Notes
2021
2020
$
939,166 $
856,861
6(2)(25)
122 (
3,939 )
6(11)(25)
(
661,905 )
-
6(7)
123,401 (
895,492 )
6(8)(27)
204,508
201,284
6(25)
165
2,902
6(11)(25)
-
178,738
6(11)(25)
(
7,810 )
720
6(27)
22
145
6(27)
5,576
4,944
6(23)
(
21,138 ) (
8,024 )
6(24)
(
1,462 ) (
1,569 )
6(26)
76,077
113,413
(
26,816 )
6,620
(
197,556 )
28,051
(
128,752 ) (
25,465 )
(
1,224 ) (
5,472 )
(
974 ) (
1,089 )
(
581,574 )
328,063
36,153 (
237,766 )
145,481
61,009
38,572 (
40,588 )
- (
5,017 )
11,062
45,659
976 (
32,015 )
(
22,260 )
16,911
4,829
-
1,916
3,653
922 (
1,360 )
(
62,523 )
591,177
21,138
8,024
1,318,918
251,489
(
150,122 ) (
182,901 )
(
83,013 ) (
1,076 )
1,044,398
666,713

(Continued)

~12~

YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at amortised cost
(Increase) decrease in other receivables - related parties
Acquisition of investments accounted for using equity
method - subsidiaries
Proceeds from disposal of investments accounted for
using equity method - subsidiaries
Acquisition of investments accounted for using equity
method
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Acquisition of right-of-use assets

Acquisition of financial assets at fair value through other
comprehensive income
Proceeds from disposal of financial assets at fair value
through other comprehensive income
Proceeds from disposal of non-current assets held for sale
Decrease in other non-current assets
Net cash flows (used in) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings

Increase in short-term notes and bills payable

(Decrease) increase in other payables - related parties

Proceeds from long-term borrowings

Repayment of long-term borrowings

Decrease in lease liabilities

Cash dividends from capital surplus

Payment of cash dividends

Purchase of treasury shares

Net cash flows used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year Notes
2021
2020
$
7,099 $
121,296
(
1,512,090 )
72,011
(
149,665 )
-
450,000
-
(
8,000 )
-
6(30)
(
68,552 ) (
51,142 )
12
1,906
6(9)
- (
90,617 )
- (
308 )
8,632
1,606
6(11)
1,043,350
-
488
3,889
(
228,726 )
58,641
6(31)
(
415,180 )
1,212,679
6(31)
110,000
-
6(31)
(
536,217 )
432,773
6(31)
3,506,958
1,841,162
6(31)
(
3,072,297 ) (
4,232,694 )
6(31)
- (
156,781 )
6(20)(21)
- (
166,265 )
6(21)
(
348,445 )
-
6(19)
- (
170,350 )
(
755,181 ) (
1,239,476 )
60,491 (
514,122 )
267,761
781,883
$
328,252 $
267,761

The accompanying notes are an integral part of these parent company only financial statements.

~13~

YEM CHIO CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

(1) Yem Chio Co., Ltd. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company is primarily engaged in researching, designing, manufacturing, processing, and sales of packaging materials, including BOPP film and adhesive tape, as well as land development and construction.
(2) The Company had been listed as Second (TIGER) category securities on Gre Tai Securities Market since April, 2000, and had been listed as general securities since April, 2001. Since January 21, 2008, the Company had been listed on the Taiwan Stock Exchange.
(3) Names and relationship of related parties:

Names and relationshipof relatedparties YEM CHIO (BVI) CO., LTD. ACHEM Technology Corporation Xin Chio Co., Ltd. Chuang-Yi Investment Co., Ltd. UINN Hotel Co., Ltd. Wong Chio Development, Ltd. WONG CHIO (SAMOA) CO., LTD. WAN CHIO (BVI) CO., LTD. ASIACHEM International Corporation ACHEM Opto-Electronic Corporation Valueline Investment Corporation ACHEM Technology Holdings Limited Subsidiaries of Xin Chio Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. ACHEM (Tianjin) Adhesive Product Co., Ltd. ACHEM Technology (Wuhan) Limited Subsidiary of WAN CHIO Wan Chio Petrochemical (Jiangsu) Co., Ltd. Subsidiaries of the Company Subsidiary of YEM CHIO Subsidiaries of ACHEM Technology Corporation	Abbreviated companyname YEM CHIO - - - UINN Hotel - WONG CHIO WAN CHIO - - - - - - - - -	Note
		Note 3

~14~

Names and relationshipof relatedparties Subsidiaries of ASIACHEM International Corporation Fuzhou Fuda Plastic Products Co., Ltd. Subsidiaries of ACHEM Technology Holdings Limited ACHEM Technology China ACHEM Technology Americas Ltd. ACHEM Technology (M) Sdn. Bhd. ACHEM Technology (Vietnam) Ltd. ACHEM Technology (India) Ltd. ASIA PLASTICS (BVI) CO., LTD. Subsidiaries of ASIA PLASTICS Achem Technology (Ningbo) Co., Ltd. WAN DAO New Material Co., Ltd Subsidiaries of ACHEM Technology China ACHEM Technology (Chengdu) Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. LANDMART GLOBAL LIMITED Subsidiary of ACHEM Technology Americas Ltd. ACHEM Industry America Inc. Subsidiary of ACHEM Opto-Electronic Corporation AOE Holding Limited Subsidiary of LANDMART ACHEM Technology (Shanghai) Limited Associate Winda Opto-Electronics Co., Ltd. Yanrun Development Co., Ltd. Other related parties Li, Qi-Zheng Li, Shu-Wei Key management of the Company Li, Zhi-Xian	Abbreviated companyname - - - - - - ASIA PLASTICS Ningbo Yem Chio Co., Ltd. WAN DAO New Material - - - - LANDMART - - - - - - - -	Note
		Note 1 Note 2 Note 4

Note 1: Fuzhou Fuda Plastic Products Co., Ltd. has ceased operations.

Note 2: ACHEM Technology (India) Ltd. underwent liquidation in May 2017.

~15~

Note 3: On April 1, 2021, the Company’s subsidiary, Chuang-Yi Investment Co., Ltd. increased capital by issuing new shares in the number of 694,286. Xin Chio Co., Ltd. acquired all the new shares, equivalent to 26.76% equity interest for cash in the amount of $129,998. The registration of changes has been completed on May 4, 2021. In addition, on November 10, 2021, the Company and the subsidiary, Xin Chio Co., Ltd., entered into an agreement to repurchase 26.76% equity interest of the subsidiary, Chuang-Yi Investment Co., Ltd., for a consideration amounting to $149,665. The registration of the change was completed on November 25, 2021.
Note 4: Asia Plastics disposed its 100% equity interest in WAN DAO New Material in September 2020. Accordingly, the Company lost control over the indirect subsidiary. The registration of the above had been completed.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These financial statements were authorised for issuance by the Board of Directors on March 25, 2022.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

==> picture [466 x 48] intentionally omitted <==

----- Start of picture text -----

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

New Standards, Interpretations and Amendments	International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from	January 1, 2021
applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘	January 1, 2021
Interest Rate Benchmark Reform— Phase 2’
Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond	April 1, 2021 (Note)
30 June 2021’
Note: Earlier application from January 1, 2021 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

~16~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International
	Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment: proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018 - 2020	January 1, 2022

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 – comparative information' Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

New Standards,Interpretations andAmendments

Effective date by
International Accounting
StandardsBoard

Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’
Amendments to IFRS 17, 'Insurance contracts'
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current or non-
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities
arising from a single transaction’

To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

~17~

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, these financial statements have been prepared under the historical cost convention:
(a) Financial assets at fair value through profit or loss.
(b) Financial assets and liabilities at fair value through other comprehensive income measured at fair value.
(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
(d) Investment property remeasured at fair value.
B. The preparation of financial statements in compliance with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Company’s presentation currency.

A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

~18~

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.
B. Translation of foreign operations

The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  - (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  - (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  - (c) All resulting exchange differences are recognised in other comprehensive income.

(4) Classification of current and non-current items
A. The Company’s operating cycle on building sales business is usually longer than 1 year. The assets and liabilities in relation to constructions are classified as current or non-current based on operating cycle (usually 4 to 5 years). Other assets and liabilities are classified as current or noncurrent based on a year.
B. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
- (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;
- (b) Assets held mainly for trading purposes;
- (c) Assets that are expected to be realised within twelve months from the balance sheet date;

~19~

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.
C. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be paid off within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be paid off within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(6) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(7) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

~20~

C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(8) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Company’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(9) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortised cost, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(11) Lease receivables / leases (lessor)

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

~21~

(12) Inventories

A. Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads allocated based on normal operating capacity. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.
B. Costs of buildings and land held for sale are stated at acquisition cost basis during construction. In accordance with IFRSs, the related interest expense is capitalised.

(13) Non-current assets held for sale

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

(14) Investments accounted for using equity method / subsidiaries and associates

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
B. Unrealised gains on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company recognise loss continuously in proportion to its ownership.
D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

~22~

F. Land is not depreciated. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
G. When changes in an associate’s equity are not recognised in profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.
H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
I. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
J. In accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the profit or loss and other comprehensive income or loss presented on the parent company only financial statements are consistent with those presented on the consolidated financial statements. In addition, owner’s equity presented on the parent company only is consistent with equity attributable to owners of parent presented on the consolidated financial statements.

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

~23~

C. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures Machinery and equipment Transportation equipment Office equipment

3 ～ 60 years 3～ 25 years 5 ～ 10 years 2 ～ 7 years

(16) Leasing arrangements (lessee) `－` right-of-use assets / lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:
(a) Fixed payments, less any lease incentives receivable; and
(b) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option.

The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date; and

~24~

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the fair value model. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss.

(18) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term accounts and notes payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(19) Convertible bonds payable

Convertible corporate bonds issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’s common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Company classifies the bonds payable and derivative features embedded in convertible corporate bonds on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument. Convertible corporate bonds are accounted for as follows:

A. Embedded call options and put options

Call options and put options embedded in convertible corporate bonds are recognised initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

B. Bonds payable of convertible corporate bonds

Bonds payable of convertible corporate bonds is initially recognised at fair value and subsequently stated at amortised cost. Any difference between the proceeds and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortised in profit or loss as an adjustment to the ‘finance costs’ over the period of bond circulation using the effective interest method.

C. Embedded conversion options (meet the definition of equity)

~25~

Conversion options embedded in convertible corporate bonds issued by the Company, which meet the definition of an equity instrument, are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less amounts of ‘financial assets or financial liabilities at fair value through profit or loss’ and ‘bonds payable—net’ as stated above. Conversion options are not subsequently remeasured.

D. Any transaction costs directly attributable to the issuance of convertible corporate bonds are allocated to the liability and equity components in proportion to the allocation of proceeds.
E. When bondholders exercise conversion options, the liability component of the bonds (including ‘bonds payable’ and ‘financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The book value of common shares issued due to the conversion shall be based on the adjusted book value of the above-mentioned liability component plus the book value of capital surplus –share options.

(20) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(21) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

B. Pensions
(a) Defined contribution plan

For the defined contribution plan, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plan
i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

~26~

ii. Remeasurements arising on the defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognises expense as it can no longer withdraw an offer of termination benefits or it recognises related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after the balance sheet date shall be discounted to their present value.

D. Employees’ compensation and directors’ remuneration

Employees’ compensation and directors’ and remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

- (22) Employee share based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonmarket vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

(23) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax of 5% is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

~27~

C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
D. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.

(24) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.
B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(25) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(26) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate.

~28~

(27) Revenue recognition

A. Sales of goods

(a) Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.
(b) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
B. Land development and resale
(a) The Company develops and sells residential properties. Revenue is recognised when control over the property has been transferred to the customer. The properties have generally no alternative use for the Company due to contractual restrictions. However, an enforceable right to payment does not arise until legal title has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title has passed to the customer.
(b) The revenue is measured at an agreed upon amount under the contract. The consideration is due when legal title has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted because the contract does not include a significant financing component.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

None.

~29~

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Company evaluates the amounts of normal inventory consumption and obsolete inventories on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

B. Investment property

The fair value valuation of investment property relies on the real estate appraisers to determine future cash flows, discount rate and profit or loss which is likely to accrue or incur afterwards based on the experts’ judgement, utilisation of the assets and industrial characteristics. Any changes of economic circumstances or estimates due to the change of the Company’s strategy might affect the value of investment property.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Bonds sold under repurchase agreements	December 31, 2021 December 31, 2020 429 $ 397 $ 300,143 267,364 27,680 - 328,252 $ 267,761 $

A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Cash and cash equivalents that were pledged as collateral were reclassified to financial assets at amortised cost. Details are provided in Notes 6(4) and 8.

(2) Financial assets at fair value through profit or loss

	December31,2021	December31,2021	December31,2020	December31,2020
Current items:
Financial assets designated as at fair
value through profit or loss
Derivative financial instruments - bonds	($	221)	($	401)
payable
Valuation adjustment		972		2,410
	$	751	$	2,009

~30~

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

	Year ended December31	Year ended December31	Year ended December31
	2021		2020
Financial assets designated as at fair
value through profit or loss
Derivative financial instruments - bonds
payable	122) ($	$	3,639

B. As of December 31, 2021 and 2020, the issuance of convertible bonds by the Company amounting to $751 and $2,009, respectively, was recognised under ‘financial assets designated as at fair value through profit or loss on initial recognition’ due to their compound instrument feature.
(a) For the years ended December 31, 2021 and 2020, the Company has recognised the changes in fair value amounting to ($122) and $3,639, respectively, which are not attributable to the changes in credit risk of the assets.
(b) For the terms of the 8th and 9th secured convertible bonds issued by the Company, please refer to Note 6(16).

(3) Financial assets at fair value through other comprehensive income

Current items: Equity instruments Listed stocks Valuation adjustments Equity instruments Unlisted shares Valuation adjustments	December31,2021 December 31, 2020 - $ 16,631 $ - 7,999) ( - $ 8,632 $ 1,719 $ 1,719 $ 3,878 3,878 5,597 $ 5,597 $

A. The Company has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income.
B. Due to adjustments on strategic investments for the years ended December 31, 2021 and 2020, the Company sold its investments in stocks at fair value of $8,632 and $1,606, respectively.

~31~

C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

==> picture [455 x 151] intentionally omitted <==

----- Start of picture text -----

Year ended December 31
2021 2020
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income $ - ($ 2,596)
Cumulative losses reclassified to
retained earnings due to derecognition ($ 7,999) ($ 1,528)
Dividend income recognised in profit or loss
$ 1,462 $ 1,569
Held at end of year
----- End of picture text -----

D. The Company has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(4) Financial assets at amortised cost

Items Current items: Restricted demand deposits Non-current items: Restricted demand deposits Restricted time deposits	December31,2021 196,623 $ 104,133 $ 104,999 209,132 $	December31,2020
		203,835 $
		104,112 $ 104,907
		209,019 $

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

Interest income	Year ended December31	Year ended December31
	2021 104 $	2020
		1,412 $

B. The restricted demand deposits in the current items were restricted domestic presold house project trust funds, which may not be drawn within the term of trust.
C. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Company was $405,755 and $412,854, respectively.
D. Details of the Company’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.

~32~

(5) Notes and accounts receivable

		December	31,2021		December	31,2020
Notes receivable		$	69,027		$	43,018
Less: Allowance for uncollectible accounts			-	(		807)
		$	69,027		$	42,211
		December	31,2021		December	31,2020
Accounts receivable		$	563,093		$	365,537
Less: Allowance for uncollectible accounts	(		15,832)	(		15,832)
		$	547,261		$	349,705

A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days	Notes receivable 69,027 $ - - - - 69,027 $ Notes receivable 43,108 $ - - - - 43,108 $ December December	Accounts receivable 360,848 $ 147,228 54,322 - 695 31,2021
		563,093 $
		Accounts receivable 31,2020
		218,440 $ 123,409 21,888 574 1,226
		365,537 $

The above ageing analysis was based on past due date.

B. As of December 31, 2021 and 2020, accounts and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $426,587.
C. The Company does not hold any collateral for accounts and notes receivable.
D. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

~33~

(6) Inventories

A. Inventories were as follows:

	December31,2021
Cost 223,567 $ 135,606 359,173 4,410,099 925,923 5,336,022 5,695,195 $	Allowance for valuation loss 5,582) ($ 5,368) ( 10,950) ( - 1,794) ( 1,794) ( 12,744) ($ December31,2020	Bookvalue
		217,985 $ 130,238
		348,223
		4,410,099 924,129
		5,334,228
		5,682,451 $

Cost 170,796 $ 160,786 331,582 3,833,300 528,142 348,464 4,709,906 5,041,488 $	Allowance for valuation loss 298) ($ 9,786) ( 10,084) ( - 1,794) ( - 1,794) ( 11,878) ($	Bookvalue
		170,498 $ 151,000
		321,498
		3,833,300 526,348 348,464
		4,708,112
		5,029,610 $

~34~

B. The cost of inventories recognised as expense for the year:

Cost of inventories sold Cost of construction sold Loss on market price decline	2021 2020 3,922,427 $ 3,113,992 $ 376,480 508,918 866 1,410 4,299,773 $ 3,624,320 $ Year ended December31

C. Amount of borrowing costs capitalised as part of inventory and the range of interest rates for such capitalisation are as follows:

		Yearended	December31	December31
		2021		2020
Amount capitalised	$	76,680	$	78,984
Range of interest rates		1.68%~2.26%		1.77%~2.26%

D. Information about the inventories that were pledged to others as collateral is provided in Note 8.
(7) Long term investments accounted for under the equity method
A. Details of long-term equity investments accounted for under the equity method are set forth below:

	December	31,2021	31,2021	31,2021	December	31,2020	31,2020	31,2020
	Percentage of				Percentage of
Shownas assets	ownership			Bookvalue	ownership			Bookvalue
ACHEM Technology Corporation	100.00		$	4,521,370	100.00		$	5,780,013
Chuang-Yi Investment Co., Ltd.	100.00			660,891	100.00			551,624
Wong Chio Development, Ltd.	100.00			309,731	100.00			320,970
Xin Chio Co., Ltd.	41.76			59,592	41.76			63,433
Yanrun Development
Co., Ltd.	40.00			4,129	-			-
			$	5,555,713			$	6,716,040
Shownasliabilities
UINN Hotel Co., Ltd.	100.00	($		25,164)	100.00	($		142,436)
YEM CHIO	100.00	(		844,322)	100.00	(		215,761)
		($		869,486)		($		358,197)

~35~

B. Investment (loss) income accounted for under the equity method for the years ended December 31, 2021 and 2020 is set forth below:

==> picture [456 x 157] intentionally omitted <==

----- Start of picture text -----

Year ended December 31
Investee company 2021 2020
ACHEM Technology Corporation $ 63,502 $ 728,660
YEM CHIO ( 391,541) 121,360
Chuang-Yi Investment Co., Ltd. 61,517 109,694
Wong Chio Development, Ltd. ( 11,239) ( 10,489)
UINN Hotel Co., Ltd. 117,272 ( 107,358)
Xin Chio Co., Ltd. 40,959 53,624
Yanrun Development Co., Ltd. ( 3,871) -
($ 123,401) $ 895,491
----- End of picture text -----

C. Please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2021 for the information regarding the Company’s subsidiaries.

~36~

(8) Property, plant and equipment

2021

Cost
Accumulated
depreciation and
impairment
Opening net book
amount as at
January 1
Additions
Disposals
Transfers
Reclassifications
Depreciation charge
Closing net book
amount as at
December 31
At December 31
Cost
Accumulated
depreciation and
impairment
At January 1

Buildings
and
Machinery
and
Transportation
Office
Unfinished
construction
and equipment
under
Land
structures
equipment
equipment
equipment
acceptance
Total
704,023
$ 1,703,924
$ 3,064,343
$ 2,136
$ 46,053
$ 29,110
$ 5,549,589
$ -
528,793)
(
1,486,339)
(
1,422)
(
33,878)
(
-
2,050,432)
(
704,023
$ 1,175,131
$ 1,578,004
$ 714
$ 12,175
$ 29,110
$ 3,499,157
$ 704,023
$ 1,175,131
$ 1,578,004
$ 714
$ 12,175
$ 29,110
$ 3,499,157
$ -
-
-
-
-
68,552
68,552
-
-
177)
(
-
-
-
177)
(
19,501
4,370
33,503
-
1,124
58,498)
(
-
-
-
-
-
-
1,215)
(
1,215)
(
-
46,290)
(
153,658)
(
233)
(
4,327)
(
-
204,508)
(
723,524
$ 1,133,211
$ 1,457,672
$ 481
$ 8,972
$ 37,949
$ 3,361,809
$ 723,524
$ 1,708,295
$ 3,096,223
$ 2,136
$ 47,177
$ 37,949
$ 5,615,304
$ -
575,084)
(
1,638,551)
(
1,655)
(
38,205)
(
-
2,253,495)
(
723,524
$ 1,133,211
$ 1,457,672
$ 481
$ 8,972
$ 37,949
$ 3,361,809
$

~37~

2020

												2020
																		Unfinished
																		construction
						Buildings			Machinery								and equipment
						and			and		Transportation				Office			under
			Land			structures			equipment			equipment			equipment			acceptance			Total
At January 1
Cost		$	419,684		$	1,701,249		$	3,039,136		$	2,097		$	45,146		$	20,015		$	5,227,327
Accumulated
depreciation and
impairment			-	(		483,772)	(		1,345,956)	(		1,189)	(		29,258)			-	(		1,860,175)
		$	419,684		$	1,217,477		$	1,693,180		$	908		$	15,888		$	20,015		$	3,367,152
Opening net book
amount as at
January 1		$	419,684		$	1,217,477		$	1,693,180		$	908		$	15,888		$	20,015		$	3,367,152
Additions			-			245			1,149			-			153			49,595			51,142
Disposals	(		3,000)	(		316)	(		1,492)			-			-			-	(		4,808)
Transfers			-			4,320			34,994			39			763	(		40,116)			-
Reclassifications			287,339			-			-			-			-	(		384)			286,955
Depreciation charge			-	(		46,595)	(		149,827)	(		233)	(		4,629)			-	(		201,284)
Closing net book
amount as at
December 31		$	704,023		$	1,175,131		$	1,578,004		$	714		$	12,175		$	29,110		$	3,499,157
At December 31
Cost		$	704,023		$	1,703,924		$	3,064,343		$	2,136		$	46,053		$	29,110		$	5,549,589
Accumulated
depreciation and
impairment			-	(		528,793)	(		1,486,339)	(		1,422)	(		33,878)			-	(		2,050,432)
		$	704,023		$	1,175,131		$	1,578,004		$	714		$	12,175		$	29,110		$	3,499,157

~38~

A. No borrowing cost was capitalised as part of property, plant and equipment for the years ended December 31, 2021 and 2020.
B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.
C. In June 2011, ACHEM Technology Corporation revalued its assets in accordance with the laws and regulations. The gross revaluation increment in the amount of $569,967, net of provision for land revaluation increment tax of $228,975, was recorded as “Unrealised revaluation increment” in the amount of $340,992, under other stockholders’ equity adjustments. The Company recognised this “Unrealised revaluation increment” into special reserve amounting to $170,769 in proportion to shares held.
D. In January 2020, the Company exercised pre-emptive rights on the land at Changhua Coastal Industrial Park leased from the Industrial Development Bureau, Ministry of Economic Affairs. The land transfer procedure was completed, and the land was transferred into property, plant and equipment in May 2020. Please refer to Note 6(9) for details.

`－` (9) Leasing arrangements lessee

A. The Company entered into a finance lease contract with the Ministry of Economic Affairs Changhua Coastal Industrial Park Service Center in 2006 and 2008, to lease land in Changhua. The lease agreement has an option that enables the Company to purchase the land at market price on the contract signing date at the end of the lease period. All rental payments the Company has paid can be deducted from the purchase price.

In November 2019, the Company submitted an application to the Industrial Development Bureau, Ministry of Economic Affairs for the approval to exercise pre-emptive rights (specified in the finance lease contract in 2008) on the industrial land located in No. 490 and 491, Shanglin Section of Lugang District, Changhua Coastal Park. Subsequently, the Industrial Development Bureau, Ministry of Economic Affairs approved the Company’s application to exercise pre-emptive rights in accordance with Zhang-Bin-Gong-Zi Letter No. 1096070289 in January 2020. The land transfer procedure was completed, and the land was transferred into property, plant and equipment in May 2020.

B. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $0 and $90,617, respectively.
C. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Year ended December31,2021 - $ 5,551	Year ended December31,2020
		764 $ 4,521

~39~

D. For the years ended December 31, 2021 and 2020, the Company’s total cash outflow for leases were $5,551 and $252,683, respectively.

(10) Leasing arrangements - lessor

A. The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 13 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the years ended December 31, 2021 and 2020, the Company recognised rent income in the amount of $42,622 and $69,535, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

2021 2022 2023 2024 2025 2026 After 2027	December31,2021 - $ 21,294 12,384 8,056 2,940 1,680 6,450 52,804 $	December31,2020 38,725 $ 7,678 7,168 4,050 2,940 1,680 6,450
		68,691 $

(11) Investment property

Relatedparty At January 1 1,123,156 $ Reclassifications 294,970) ( Gain on fair value adjustment 2,355 At December 31 830,541 $ Relatedparty At January 1 1,699,158 $ Write-off 178,738) ( Reclassifications 376,262) ( (Loss) gain on fair value adjustment 21,002) ( At December 31 1,123,156 $		2021
		Non-relatedparty 967,310 $ 294,970 5,455 1,267,735 $ 2020

~40~

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the year Direct operating expenses arising from the investment property that did not generate rental income during the year Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the year Direct operating expenses arising from the investment property that did not generate rental income during the year	Related party Non-related party Total 15,297 $ 20,731 $ 36,028 $ 2,015 $ 3,078 $ 5,093 $ - $ 246 $ 246 $ Related party Non-related party Total 37,371 $ 22,723 $ 60,094 $ 6,239 $ 2,975 $ 9,214 $ - $ 304 $ 304 $ YearendedDecember31,2021 Year ended December31,2020	Related party Non-related party Total 15,297 $ 20,731 $ 36,028 $ 2,015 $ 3,078 $ 5,093 $ - $ 246 $ 246 $ Related party Non-related party Total 37,371 $ 22,723 $ 60,094 $ 6,239 $ 2,975 $ 9,214 $ - $ 304 $ 304 $ YearendedDecember31,2021 Year ended December31,2020
		9,214 $
		304 $

~41~

B. Fair value basis of investment property

The Company’s investment property mainly comprises office buildings and hotels located in Neihu District, Shihlin District, Zhongzheng District, Taipei City, etc. The Company earns rental income from leasing and the lease terms are between 1 to 13 years. As of December 31, 2021 and 2020, the related assumptions are as follows:

(a) The location, valuation method, appraisal firm, appraiser and appraisal date are shown below:

Object Location Valuation method Effective date for appraisal Appraiser Appraisal firm	December31,2021 December31,2020 Office buildings and hotels Office buildings and hotels Neihu District, Shihlin District and Zhongzheng District, Taipei City Neihu District, Shihlin District and Zhongzheng District, Taipei City Income approach Income approach PANASIA Real Estate PANASIA Real Estate Appraisers Firm Appraisers Firm YANG, MIN-AN December 31, 2021 December 31, 2020 YANG, MIN-AN

(b) The information on the average leasing rate for the previous year, changes in income generated in the past, and comparison between local rents and rents for objects similar to the Company’s office buildings and hotels is provided in the table below:

Estimated rents (in dollars/per ping /monthly) Local rents and rent quotes for similar objects Income Average leasing rates	YearendedDecember31	YearendedDecember31
	2021 $935~$1,474 Approximate to estimated rents $2,880~$18,828 94%~100%	2020
		$926~$1,111 Approximate to estimated rents $5,486~$20,459 91%~100%

~42~

(c) The fair value of the Company’s office buildings and hotels are measured using the discounted cash flow analysis of income approach. Valuation is based on local rents and rents of similar objects, which are used to determine the annual increase range in the rents. Net rental income for the next 10 years is estimated based on idling loss. The estimated net rental income plus the ending disposal value is the future cash inflow, which is calculated to the appraisal date by using appropriate discount rate. Future cash outflow is estimated based on the Company’s current operations and possible future changes and future cash outflow refers to expenses directly related to operations, such as land value tax, house tax, insurance fees, management fees and repair expense that were actually incurred for the year.
(d) Discount rate range is set in the table below. Discount rates are based on the interest rate for a two-year deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points. Risk premium is determined based on liquidity, risk, value increment and the difficulty of management.

December 31, 2021 December 31, 2020 Discount rates 2.25%~2.60% 2.45%~2.60%

C. The information on the investment property is provided in Note 12(3).
D. Amount of borrowing costs capitalised as part of investment property and the range of the interest rates for such capitalisation: None.
E. Information about the investment property that was pledged to others as collateral is provided in Note 8.
F. Reclassifications:

In August 2020, the land of the Company located in Linkou District, New Taipei City, was sold in accordance with the resolution of the Board of Directors. In December 2020, the Company completed the registration for destruction and met the condition for immediate disposal, thus, related assets were reclassified to non-current assets held for sale from investment property. In February 2021, the land transfer procedure of this transaction was completed and the total proceeds in the amount of $1,043,350 had been collected.

(12) Short-term borrowings

Short-term borrowings
Bank borrowings- Secured bank borrowings Unsecured bank borrowings Range of the interest rates	December31,2021 1,228,162 $ 2,144,660 3,372,822 $ 1.23%~1.47%	December31,2020
		1,811,346 $ 1,976,559
		3,787,905 $
		0.94%~1.90%

Details of assets pledged as collateral for short-term borrowings are provided in Note 8.

~43~

(13) Short-term bills payable

Long-term liabilities, current portion Commercial paper Range of the interest rates Long-term borrowings Current portion -within one year -within one operating cycle Corporate bonds payable, current portion	December 31,2021 410,000 $ 1.29%~1.41% December 31,2021 `107,867` `$` `2,454,850` `443,361` `3,006,078` `$`	December 31,2020 300,000 $
		1.35%~1.44% December 31,2020 `609,906` `$` `2,071,849` `-` `2,681,755` `$`

- (14) Long term liabilities, current portion

(15) Other current liabilities

Guarantee deposits received Others

December 31,2021 - $ 10,804 10,804 $	December 31,2020
	156,500 $ 8,886
	165,386 $

(16) Bonds payable

8th convertible bonds payable Less: Discount on bonds payable

9th convertible bonds payable Less: Discount on bonds payable

Less: Corporate bonds payable, current portion

		Domestic secured	convertible bonds	convertible bonds	convertible bonds
	December 31,2021			December 31,2020
$		226,600	$		427,500
(		5,516)	(		13,786)
		221,084			413,714
		227,800			388,500
(		5,523)	(		12,547)
		222,277			375,953
(		443,361)			-
$		-	$		789,667

~44~

A.

Principal amount Face rate Effective rate Outstanding period Maturity date Guarantee banks Collateral Repayment at maturity Put options Conversion price (dollars/per share) (Adjusted) Conversion period Converted amount Redeemed amount Repurchased amount Redemption	8th domestic secured convertible corporate bonds	9th domestic secured convertible corporate bonds
	$500,000 0% 0.93% 5 years June 14, 2024 Mega International Commercial Bank Cash in banks of $102,530 The bonds along with yield to maturity annual rate of 0.25% are repayable in full by cash at face value at maturity. From the date after three months of the bonds issue (September 15, 2019) to 40 days (May 5, 2024) before the maturity date. Convertible corporate bonds will be redeemed based on the rule for issuance and conversion of convertible bonds if one of the following criteria is met: (a)The closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days in the centralized market. (b)The outstanding balance of the bonds is less than 10% of total issue amount. The bondholders have the right to require the Company to redeem any bonds at face value plus 0.25% interest during the period from the date after issuance to 30 days before three years. During the period from the date after three months of issuance of bonds to the maturity date. $279,700 $ - $ - $12.00	$500,000 0% 0.93% 5 years June 14, 2024 First Bank Cash in banks of $102,530 The bonds along with yield to maturity annual rate of 0.25% are repayable in full by cash at face value at maturity. From the date after three months of the bonds issue (September 15, 2019) to 40 days (May 5, 2024) before the maturity date. Convertible corporate bonds will be redeemed based on the rule for issuance and conversion of convertible bonds if one of the following criteria is met: (a)The closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days in the centralized market. (b)The outstanding balance of the bonds is less than 10% of total issue amount. The bondholders have the right to require the Company to redeem any bonds at face value plus 0.25% interest during the period from the date after issuance to 30 days before three years. During the period from the date after three months of issuance of bonds to the maturity date. $278,500 $ - $ - $12.00

~45~

B. With regards to the issuance of convertible bonds, the equity conversion options of 8th and 9th issuances amounting to $29,091 was separated from the liability components and was recognised in “capital surplus - stock options” in accordance with IAS 32. As of December 31, 2021 and 2020, the balance of “Capital surplus - stock options” changed to $12,852 and $23,372, respectively, due to execution of conversion from bonds into common stock. The fair value of put and call options embedded in bonds payable was separated from the value of bonds payable, and was recognised in “financial assets (liabilities) at fair value through profit or loss” in accordance with IFRS 9.

- (17) Long term borrowings

==> picture [469 x 140] intentionally omitted <==

----- Start of picture text -----

Type of borrowings December 31, 2021 December 31, 2020
Medium and long-term secured borrowings $ 4,371,762 $ 3,887,101
Medium and long-term unsecured borrowings 600,000 650,000
4,971,762 4,537,101
Less: Current portion
-within one year ( 107,867) ( 609,906)
-within one operating cycle ( 2,454,850) ( 2,071,849)
$ 2,409,045 $ 1,855,346
Range of the interest rates 1.70%~2.45% 1.77%~2.65%
----- End of picture text -----

A. In September 2016, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Taiwan Cooperative Bank and others, and the agreement period is 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $3 billion pursuant to the agreement. The primary terms of the agreement are as follows:
(a) Tranche A: Non-revolving line of $2,000,000
(b) Tranche B: Revolving line of $1,000,000. The proceeds of the loan were used to increase medium-term working capital.
(c) The Company’s revolving credit facility is subject to the following terms and financial covenants:
- i. The Company shall pledge land, plant and auxiliary facilities, machinery and equipment, and related auxiliary equipment at Changhua Coastal Industrial Park as collateral.
- ii. The Company on each semi-annual and annual financial statements is required to maintain the following financial ratios:

Current ratio (current assets/current liabilities) of at least 100%; liability ratio ((total liabilities + contingent liabilities)/(total stockholders’ equity – intangible assets)) of not higher than 250% (Liability ratio was then changed into 300% in accordance with the supplementary agreement signed in December 2017.); interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 300%; tangible net worth of not less than $8 billion.

~46~

(d) The syndicated loan agreement mentioned above was fully repaid in March 2021. As of December 31, 2020, the amount drawn was $2,650,000.
B. In October 2020, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Land Bank of Taiwan and others for a period of 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $1.59 billion pursuant to the agreement. The primary terms of the agreement are as follows:
(a) Tranche A: Non-revolving line of $1,100,000
(b) Tranche B: Non-revolving line of $390,000
(c) Tranche C: Non-revolving line of $100,000
(d) The Company’s revolving credit facility is subject to the following terms and financial covenants:
- i. The Company shall pledge land serial No. 4 and 5, Section 1, Fuduxin section, Xinzhuang District, New Taipei City as collateral for tranche B and C.
- ii. The Company on each annual consolidated financial statements is required to maintain the following financial ratios:

Liability ratio (total liabilities/consolidated tangible net worth) of not higher than 300%; interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 150%; consolidated tangible net worth of not less than $7 billion.

(e) There was no violation of the loan covenant as of December 31, 2021.
(f) As of December 31, 2021 and 2020, the amount drawn were both $1,100,000.
C. In March 2021, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Taiwan Cooperative Bank and others, for a period of 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $3.6 billion pursuant to the agreement. The primary terms of the agreement are as follows:
(a) Tranche A: Non-revolving line of $1,100,000
(b) Tranche B: Revolving line of $2,500,000. The facility is revolving during the facility period. The credit facility will be reduced after three years from the first drawdown date, and will be further reduced on the same date of each succeeding year. The reduction of the credit facility will be done in three phases as follows: a 15% reduction for the first phase, 20% reduction for the second phase and 65% reduction for the third phase.

~47~

(c) The Company’s revolving credit facility is subject to following terms and financial covenants:
- i. The Company shall pledge land, plant and auxiliary facilities, machinery and equipment, and related auxiliary equipment at Changhua Coastal Industrial Park as collateral of Tranche A.
- ii. The Company on each semi-annual and annual consolidated financial statements is required to maintain the following financial ratios:
  - Current ratio (current assets/current liabilities) of at least 100%; liability ratio ((total liabilities + contingent liabilities)/(total stockholders’ equity – intangible assets)) of not higher than 300%; interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 150%; consolidated tangible net worth of not less than $7 billion.
(d) As of December 31, 2021, the amount drawn was $1,700,000.
D. In addition to the collaterals provided as stated in Note 8, as of December 31, 2021, the Company had issued guarantee notes totaling $13,018,890 for the bank loans.
E. The Company’s borrowings should be repaid in full by August 2031 at the latest in accordance with the contracts.

(18) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.
(b) The amounts recognised in the balance sheet are determined as follows:

		December	31,2021		December	31,2020
Present value of defined benefit
obligations		$	31,632		$	34,712
Fair value of plan assets	(		5,107)	(		6,097)
Net defined benefit liability		$	26,525		$	28,615

~48~

(c) Movements in net defined benefit liabilities are as follows:

			Present value
			of defined		Fair value			Net defined
		benefit obligations			ofplanassets			benefitliability
2021
Balance at January 1		$	34,712	($	6,097)		$	28,615
Current service cost			128		-			128
Interest expense (income)			104	(	18)			86
			34,944	(	6,115)			28,829
Remeasurements:
Return on plan assets			-	(	111)	(		111)
Change in demographic
assumptions			22		-			22
Change in financial
assumptions	(		923)		-	(		923)
Experience adjustments	(		834)		-	(		834)
	(		1,735)	(	111)	(		1,846)
			33,209	(	6,226)			26,983
Pension fund contribution			-	(	458)	(		458)
Paid pension	(		1,577)		1,577			-
Balance at
December 31		$	31,632	($	5,107)		$	26,525
			Present value
			of defined		Fair value			Net defined
		benefit obligations			ofplan assets			benefit liability
2020
Balance at January 1		$	41,397	($	7,139)		$	34,258
Current service cost			170		-			170
Interest expense (income)			290	(	50)			240
			41,857	(	7,189)			34,668
Remeasurements:
Return on plan assets			-	(	238)	(		238)
Change in financial
assumptions			1,068		-			1,068
Experience adjustments	(		6,405)		-	(		6,405)
	(		5,337)	(	238)	(		5,575)
			36,520	(	7,427)			29,093
Pension fund contribution			-	(	478)	(		478)
Paid pension	(		1,808)		1,808			-
Balance at
December 31		$	34,712	($	6,097)		$	28,615

~49~

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.
(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases		YearendedDecember31	YearendedDecember31
		2021 0.70% 2.00%	2020
			0.30%
			2.00%

For the years ended December 31, 2021 and 2020, assumptions regarding future mortality rate were estimated in accordance with the 6th and the 5th Taiwan Standard Ordinary Experience Mortality Table, respectively. Future mortality rate of the Company was set based on the improved Taiwan’s published annuity table.

~50~

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [444 x 207] intentionally omitted <==

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2022 amount to $428.
(g) As of December 31, 2021, the weighted average duration of that retirement plan is 7 years.
B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2021 and 2020 were $8,582 and $9,248, respectively.

~51~

(19) Share capital

A. As of December 31, 2021, the Company’s authorised capital was $10,000,000 (including reserve for issuance of employee share options of $40,000), and the paid-in capital was $6,380,540, consisting of ordinary stock with a par value of $10 (in dollars) per share.

Movements in the number of the Company’s ordinary shares including certificate of entitlement to new shares from convertible bonds (in thousand shares) outstanding are as follows:


At January 1		541,949		542,662
13th repurchase of treasury shares		-	(	8,699)
14th repurchase of treasury shares		-	(	7,022)
Disposal of the Company's treasury shares by subsidiaries		607		-
Conversion of convertible bonds		27,775		15,008
Stock dividends of ordinary share		34,844		-
The Company’s stocks held by
subsidiaries recognised as treasury
shares	(	1,032)		-
At December 31		604,143		541,949

B. For the year ended December 31, 2021, convertible bonds amounting to $361,600 in total par value were requested for conversion into 27,775 thousand ordinary shares. The amount of 233 thousand ordinary shares was recorded under ‘certificate of entitlement to new shares from convertible bonds’ because the registration of the change has not yet been completed.
C. For the year ended December 31, 2020, convertible bonds amounting to $196,600 in total par value were requested for conversion into 15,008 thousand ordinary shares. The amount was recorded under ‘certificate of entitlement to new shares from convertible bonds’ because the registration of the change had not yet been completed as of December 31, 2020. The registration of the change had been completed during the year ended December 31, 2021.
D. On July 7, 2021, the Company’s shareholders approved to capitalise shareholders’ bonus amounting to $348,445 which was distributed from 2020 earnings. A total of 34,844 thousand new shares were issued with a par value of $10 per share. The registration of the change had been completed.
E. On July 7, 2021, the Company’s Board of Directors resolved to increase the authorised capital to $10,000,000. The registration of the change was completed on July 22, 2021.

~52~

F. Treasury shares

Number of shares

		Number of shares
		(in thousands)		Carryingamount
At January 1, 2021		43,099	$	562,488
Eliminated shares	(	9,380)	(	139,273)
Disposal of the Company's shares of stocks
held by subsidiaries	(	607)	(	8,870)
Distribution of the Company's stock dividends
received by subsidiaries		1,032		-
At December 31, 2021		34,144		414,345
		Number of shares
		(in thousands)		Carryingamount
At January 1, 2020		29,172	$	414,770
Eliminated shares	(	1,794)	(	22,632)
13th repurchase of treasury shares		8,699		85,554
14th repurchase of treasury shares		7,022		84,796
At December 31, 2020		43,099		562,488

(a) On March 10, 2020, the Company’s Board of Directors resolved to retire 1,794 thousand treasury shares in line with the Company’s capital reduction with the effective date set on March 10, 2020, and the registration had been completed.
(b) On March 10, 2020, the Company’s Board of Directors resolved the 13th repurchase of 10 million treasury shares which will be transferred to employees during the period from March 11, 2020 to May 8, 2020. The repurchase price ranged between $9 and $16 (in dollars) per share. The repurchase of a total of 8,699 thousand shares was completed on May 8, 2020, for a total consideration of $85,554.
(c) On May 13, 2020, the Board of Directors resolved to exercise the 14th repurchase of 10 million treasury shares which will be transferred to employees during the period from May 14, 2020 to July 13, 2020. The repurchase price ranged between $9 and $16.2 (in dollars) per share. The repurchase of a total of 7,022 thousand shares was completed on July 13, 2020, for a total consideration of $84,796.
(d) On March 4, 2021, the Company's Board of Directors approved to reduce capital by retiring 9,380 thousand treasury shares, and the effective date for the capital reduction was set on March 5, 2021. The registration of the change had been completed.
(e) Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

~53~

(f) Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(g) Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.
(h) Details of the Company’s common stock held by the subsidiaries as at December 31, 2021 are as follows:

Name of company Reason for Number of Shares holdingthe shares reacquisition (thousand shares) YEM CHIO Investment 16,822 ACHEM Technology Holdings Limited 〞 1,194 Valueline Investment Corporation 〞 406 18,422	Carryingamount
	223,108 $ 15,838 5,049
	243,995 $

(i) Details of the Company’s common stock held by the subsidiaries as at December 31, 2020 are as follows:

==> picture [437 x 30] intentionally omitted <==

----- Start of picture text -----

Name of company Reason for Number of Shares
holding the shares reacquisition (thousand shares) Carrying amount
----- End of picture text -----

Name of company Reason for holding the shares reacquisition	Number of Shares (thousand shares)	Carryingamount
YEM CHIO Investment ACHEM Technology Holdings Limited 〞 Valueline Investment Corporation 〞	15,880 1,127 991 17,998	223,108 $ 15,838 13,919
		252,865 $

(20) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~54~

2021

			Share			Stock
			premium			options			Others			Total
At January 1		$	1,764,372		$	28,235		$	799,835		$	2,592,442
Eliminated shares	(		28,299)			-	(		17,174)	(		45,473)
Recognition of changes in	(		42,929)			-			41,000	(		1,929)
ownership interest in
subsidiaries
Difference between consideration			-			-	(		243,740)	(		243,740)
and carrying amount of
subsidiaries acquired or disposed
Conversion of convertible bonds			83,022	(		10,519)			-			72,503
The Company’s stocks held by
subsidiaries deemed as cash
dividends distributed to treasury
stocks			-			-			10,799			10,799
At December 31		$	1,776,166		$	17,716		$	590,720		$	2,384,602
						2020
			Share			Stock
			premium			options			Others			Total
At January 1	$		1,887,797	$		33,954	$		829,756	$		2,751,507
Cash dividends from capital	(		166,265)			-			-	(		166,265)
surplus
Dividends for which the claim			-			-			86			86
period has elapsed and
unclaimed by shareholders
Eliminated shares	(		2,509)			-	(		2,183)	(		4,692)
Recognition of changes in			-			-	(		33,223)	(		33,223)
ownership interest in
subsidiaries
Conversion of convertible bonds			45,349	(		5,719)			-			39,630
The Company’s stocks held by
subsidiaries deemed as cash
dividends distributed to treasury
stocks			-			-			5,399			5,399
At December 31	$		1,764,372	$		28,235	$		799,835	$		2,592,442

~55~

(21) Retained earnings / Subsequent event

A. In accordance with the Company’s Articles of Incorporation, the annual net profit should be used initially to pay all taxes and to cover any accumulated deficit; 10% of the annual net profit should be set aside as legal reserve; and setting aside an additional special reserve pursuant to Article 41 of ROC Securities Exchange Act. The remainder, if any, shall be distributed which will be proposed by the Board of Directors and approved by the stockholders.

If the aforementioned purposes or reasons of setting aside special reserve no longer apply, the Company should reverse and recognise such special reserve as distributable, and be distributed in accordance with this Article.

The Company authorises the Board of Directors to distribute earnings in cash or dividends and bonuses from capital surplus by the special resolution; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.

B. The Company’s dividend policy is summarized below:

As the Company operates in a mature industry and is in the stable profit stage with sound financial structure, it has a steady dividend pay out ratio policy. According to the policy, after setting aside legal and special reserve, the remainder shall be appropriated as dividends, and cash dividends shall account for at least 10% of the total dividends distributable.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.
E. The resolutions made at the Board of Directors’ and the stockholders’ meeting on March 27, 2020 and June 19, 2020, respectively, are outlined as follows:
(a) The Company compensated accumulated deficit with legal reserve of $341,174 for the year ended December 31, 2019.
(b) The Company issued cash dividends from capital surplus amounting to $166,265 for the year ended December 31, 2019.

~56~

F. The Company’s appropriations of 2020 earnings for cash dividends and the modification of aforementioned appropriations had been approved through majority vote by the Board of Directors on March 4, 2021 and May 13, 2021, respectively, and had been approved by shareholders on July 7, 2021. The appropriations of earnings as amended were as follows:

		Year ended December 31,2020	Year ended December 31,2020	Year ended December 31,2020
				Dividend per
		Amount		share (in dollars)
Reversal of special reserve	($	147,062)
Legal reserve		80,056
Cash dividends		348,445	$	0.60
Stock dividends		348,445		0.59
	$	629,884

G. Subsequent event:

The 2021 earnings distribution proposed at the meeting of Board of Directors on March 25, 2022 is detailed as follows:

is detailed as follows:
		Year ended December 31, 2021
				Dividend per
		Amount		share(in dollars)
Reversal of special reserve	($	12,864)
Legal reserve		108,632
Cash dividends		622,566	$	1.00
	$	718,334

The Company's appropriations of 2021 earnings, except for cash dividends which had been resolved by the Board of Directors and only has to be reported to shareholders, have not yet been approved by shareholders as of March 25, 2022.

~57~

(22) Operating revenue

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods and services at a point in time in the following major product lines:

Revenue from non-related parties Revenue from related parties Total segment revenue	Packaging materials Real estate business segment business segment Total 3,526,403 $ 523,960 $ 4,050,363 $ 1,026,980 - 1,026,980 4,553,383 $ 523,960 $ 5,077,343 $ Year ended December31,2021

Year ended December 31, 2020	Year ended December 31, 2020	Year ended December 31, 2020
Packaging materials business segment 2,728,216 $ 766,103 3,494,319 $	Real estate business segment 681,956 $ - 681,956 $	Total
		3,410,172 $ 766,103
		4,176,275 $

B. Contract liabilities

The Company has recognised the following revenue-related contract liabilities:

Contract liabilities: Contract liabilities – Advance sales receipts Contract liabilities – Pre-sold house	December31,2021 13,289 $ 466,606 479,895 $	December31,2020 15,905 $ 318,509 334,414 $	January 1, 2020
			27,652 $ 41,918
			69,570 $

C. For the years ended December 31, 2021 and 2020, revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $25,558 and $51,233, respectively.

~58~

(23) Interest income

(24)
(25)

Other income
Other gains and losses
2021
2020
Interest income from bank deposits
335
$ 7,053
$ Interest income from loans to related parties
20,803

971

21,138
$ 8,024
$ Years ended December31,
2021
2020
Rental revenue
42,622
$ 69,535
$ Dividend income
1,462

1,569
Income from managerial services
39,245
38,245
Revenue from government grants
-

13,585
Other income
5,756
3,168
89,085
$ 126,102
$
Years endedDecember31,
2021
2020
(Losses) gains on financial assets at fair
value through profit or loss
122)
($ 3,639
$ Net foreign exchange loss
44,872)
(
82,201)
(
Losses on disposal of property, plant and
equipment
165)
(
2,902)
(
Gains on disposal of non-current assets held
for sale
661,905
-
Losses on write-off of investment property
-
178,738)
(
Gains (losses) on fair value adjustment of
investment property
7,810
720)
(
Fee expense
15,966)
(
15,666)
(
Other losses
9,053)
(
3,630)
(
599,537
$ 280,218)
($ Years ended December 31,

~59~

(26) Finance costs

			Years ended	December31,	December31,	December31,
			2021			2020
Interest expense:
Bank borrowings		$	144,159		$	179,788
Convertible bonds			5,085			8,308
Lease liabilities			-			764
Interest payable to related parties			3,513			3,537
Less: Capitalisation of qualifying assets	(		76,680)	(		78,984)
		$	76,077		$	113,413

(27) Expenses by nature

YearendedDecember31,2021	YearendedDecember31,2021	YearendedDecember31,2021
Classified as Classified as operating costs operating expenses Total 153,115 $ 74,876 $ 227,991 $ 15,843 6,533 22,376 5,531 3,265 8,796 - 840 840 7,655 1,146 8,801 182,144 86,660 268,804 195,083 9,425 204,508 - 22 22 377,227 $ 96,107 $ 473,334 $ YearendedDecember31,2020		Total
		227,991 $ 22,376 8,796 840 8,801
		268,804 204,508 22
		473,334 $
Classified as operating costs 145,297 $ 15,463 5,660 - 7,226 173,646 191,147 50 364,843 $	Classified as operating expenses 81,923 $ 6,876 3,998 651 1,546 94,994 10,137 96 105,227 $	Total
		227,220 $ 22,339 9,658 651 8,772
		268,640 201,284 146
		470,070 $

~60~

A. For the years ended December 31, 2021 and 2020, the Company had 386 and 397 employees, respectively, both including 4 non-employee directors.
B. For the years ended December 31, 2021 and 2020, average employee benefit expense was $701 and $682, respectively.
C. For the years ended December 31, 2021 and 2020, average employees salaries were $597 and $578, respectively.
D. Adjustments of average employees salaries was 3.29%.
E. Under the Company’s Articles of Incorporation :

If the Company has profit, at least 0.5% shall be distributed as employees’ compensation. However, if the Company has accumulated deficit, earnings should first be reserved to cover losses and then be appropriated as employees’ compensation based on the abovementioned ratios.

The distribution of employees compensation shall be resolved by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.

Employees’ compensation can be distributed in the form of cash or shares and shall be distributed to the employees of affiliates of the Company who meet certain specific requirements which were set by the Board of Directors.

F. The Company provides remuneration to directors (including independent directors) determined based on the Company’s ‘regulation of directors’ remuneration’. The related regulations are implemented after being advised by the Remuneration Committee and approved by the Board of Directors.

In addition, managers’ compensation is determined based on the salary standard in the market taking into consideration the individual position, responsibilities, professional and technical ability, education and work experience, performance, contribution, etc., in order to give reasonable compensation.

Furthermore, to attract and retain outstanding talents, the Company will timely refer to the labour market salary survey, typical pay levels adopted by peer companies, taking into consideration the reasonableness of the correlation between individual performance, company's business performance, and future risk exposure, periodically assessing or examining the salary system.

As the employees are the most valuable asset to the Company, the Company adopts the concept of profit sharing with employees, thereby providing a competitive overall compensation package to its employees. The Company hopes to encourage employees to focus on long-term contribution and share mutual benefits with the Company.

F. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $5,576 and $4,944, respectively; while no directors’ remuneration was accrued. The aforementioned amount was recognised in salary expenses.

~61~

The employees’ compensation was estimated and accrued based on 0.5% of distributable profit

of current year for the year ended December 31, 2021.

For the year ended December 31, 2020, the employees’ compensation resolved by the Board of Directors amounted to $4,309. The difference of ($635) between the amount resolved by the Board of Directors and the amount of $4,944 recognised in the 2020 financial statements, had been adjusted in the profit or loss for 2021.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(28) Income tax

A. Components of income tax expense (benefit):

			YearendedDecember31	YearendedDecember31	YearendedDecember31
			2021		2020
Current tax:
Current tax on profits for the year		$	157,173	$	40,400
Prior year income tax (over) under estimation	(		22,975)		2,668
Total current tax			134,198		43,068
Deferred tax:
Origination and reversal of temporary
differences	(		62,794)		8,189
Income tax expense		$	71,404	$	51,257

B. The income tax relating to components of other comprehensive income is as follows:

Remeasurement of defined benefit obligations	YearendedDecember31	YearendedDecember31
	2021 369 $	2020
		1,115 $

~62~

C. Reconciliation between income tax expense and accounting profit:

			YearendedDecember31	YearendedDecember31	YearendedDecember31
			2021		2020
Tax calculated based on profit before tax		$	187,833	$	171,372
and statutory tax rate
Items disallowed (tax exempt income) by tax	(		114,979)	(	135,750)
regulation
Prior year income tax (over) under	(		22,975)		2,668
estimation
Land value increment tax			77,472		12,733
Others	(		55,947)		234
Income tax expense		$	71,404	$	51,257

~63~

D. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

					2021	2021	2021
								Recognised
								in other
				Recognised in		comprehensive
			January1		profit or loss			income		December31
Temporary differences:
-Deferred tax assets:
Provision for inventory		$	2,376	$	173		$	-		$	2,549
obsolescence
Accrued pension			5,323	(	38)	(		369)			4,916
liabilities
Unrealised exchange			19,246		8,965			-			28,211
loss
Deferred selling			10,884	(	1,426)			-			9,458
expenses
Deferred interest			28,299	(	944)			-			27,355
payable
Others			4,167	(	400)			-			3,767
			70,295		6,330	(		369)			76,256
-Deferred tax liabilities:
Unrealised loss from	(		11,108)		-			-	(		11,108)
sales
Fair value adjustment	(		97,006)		56,464			-	(		40,542)
of investment property
Gain on foreign
investment	(		33,499)		-			-	(		33,499)
	(		141,613)		56,464			-	(		85,149)
	($		71,318)	$	62,794	($		369)	($		8,893)

~64~

						2020	2020	2020
									Recognised
									in other
					Recognised in		comprehensive
			January1			profit or loss			income		December31
Temporary differences:
-Deferred tax assets:
Provision for inventory		$	2,094		$	282		$	-		$	2,376
obsolescence
Accrued pension
liabilities			6,813	(		375)	(		1,115)			5,323
Unrealised exchange
loss			8,706			10,540			-			19,246
Deferred selling
expenses			10,182			702			-			10,884
Deferred interest
payable			29,263	(		964)			-			28,299
Others			4,535	(		368)			-			4,167
			61,593			9,817	(		1,115)			70,295
-Deferred tax liabilities:
Unrealised loss from
sales	(		11,108)			-			-	(		11,108)
Fair value adjustment
of investment property	(		79,000)	(		18,006)			-	(		97,006)
Gain on foreign
investment	(		33,499)			-			-	(		33,499)
	(		123,607)	(		18,006)			-	(		141,613)
	($		62,014)	($		8,189)	($		1,115)	($		71,318)

E. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

~65~

(29) Earnings per share

			Year	endedDecember31,	2021	2021
				Retroactive
				adjustment weighted
				average number of
				ordinary shares
				outstanding		Earnings per
			Amount aftertax	(sharesinthousands)		share (indollars)
Basic and diluted earnings
per share
Profit attributable to the
parent		$	867,762	590,114	$	1.47
Diluted earnings per share
Profit attributable to the		$	867,762	590,114
parent
Assumed conversion of all
dilutive potential ordinary
shares
Treasury stocks transferred
to employees			-	17,415
Employees' compensation			-	414
Subsidiaries’ domestic
convertible bonds	(		7,652)	-
Domestic convertible
bonds			4,068	46,659
Profit attributable to the
parent plus assumed
conversion of all
dilutive potential
ordinary shares		$	864,178	654,602	$	1.32

~66~

		Year ended December31,	Year ended December31,	Year ended December31,	2020	2020
				Retroactive
			adjustment weighted
				average number of
				ordinary shares
				outstanding		Earnings per
		Amount after tax	(shares in thousands)			share(in dollars)
Basic and diluted earnings
per share
Profit attributable to the
parent	$	805,604		565,330	$	1.42
Diluted earnings per share
Profit attributable to the	$	805,604		565,330
parent
Assumed conversion of all
dilutive potential ordinary
shares
Treasury stocks transferred
to employees			-	20,168
Employees' compensation			-	300
Subsidiaries’ domestic
convertible bonds	(	4,624)		-
Domestic convertible
bonds		6,646		74,841
Profit attributable to the
parent plus assumed
conversion of all
dilutive potential
ordinary shares	$	807,626		660,639	$	1.23
Supplemental cash flow information
Investing activities with partial cash payments
				YearendedDecember31
				2021		2020
Purchase of property, plant and equipment			$	68,552	$	51,142
Add: Opening balance of payable on				38,300		38,300
equipment and construction
Less: Ending balance of payable on			(	38,300)	(	38,300)
equipment and construction
Cash paid during the year			$	68,552	$	51,142

(30) Supplemental cash flow information

~67~

(31) Changes in liabilities from financing activities

Short-term borrowings At January 1, 2021 3,787,905 $ Changes in cash flow from financing activities 415,180) ( Impact of changes in foreign exchange rate 97 Changes in other non-cash items - At December 31, 2021 3,372,822 $	Long-term Short-term notes and Other payables to Corporate Liabilities from financing borrowings billspayable related parties bondspayable activities-gross 4,537,101 $ 300,000 $ 533,600 $ 789,667 $ 9,948,273 $ 434,661 110,000 532,817) ( - 403,336) ( - - 783) ( - 686) ( - - - 346,306) ( 346,306) ( 4,971,762 $ 410,000 $ - $ 443,361 $ 9,197,945 $	Long-term Short-term notes and Other payables to Corporate Liabilities from financing borrowings billspayable related parties bondspayable activities-gross 4,537,101 $ 300,000 $ 533,600 $ 789,667 $ 9,948,273 $ 434,661 110,000 532,817) ( - 403,336) ( - - 783) ( - 686) ( - - - 346,306) ( 346,306) ( 4,971,762 $ 410,000 $ - $ 443,361 $ 9,197,945 $
		9,197,945 $

At January 1, 2020 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items At December 31, 2020	Short-term Long-term borrowings borrowings 2,572,028 $ 6,928,633 $ 1,212,679 2,391,532) ( 3,198 - - - 3,787,905 $ 4,537,101 $	Short-term notes and Other payables to Corporate Lease Liabilities from financing billspayable relatedparties bondspayable liabilities activities-gross 300,000 $ 105,002 $ 971,544 $ 156,781 $ 11,033,988 $ - 432,773 - 156,781) ( 902,861) ( - 4,175) ( - - 977) ( - - 181,877) ( - 181,877) ( 300,000 $ 533,600 $ 789,667 $ - $ 9,948,273 $	Short-term notes and Other payables to Corporate Lease Liabilities from financing billspayable relatedparties bondspayable liabilities activities-gross 300,000 $ 105,002 $ 971,544 $ 156,781 $ 11,033,988 $ - 432,773 - 156,781) ( 902,861) ( - 4,175) ( - - 977) ( - - 181,877) ( - 181,877) ( 300,000 $ 533,600 $ 789,667 $ - $ 9,948,273 $
			9,948,273 $

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of major related parties: Please refer to Note 1(3).

(2) Significant related party transactions and balances

A. Operating revenue

Sales of goods -Subsidiaries	Yearended	December31
	2021 1,026,980 $	2020
		766,103 $

Goods are sold based on the price mutually agreed by both parties. The credit terms to related parties are 15 to 30 days and 60 to 120 days after monthly billings, compared to 60 to 120 days to third parties.

~68~

B. Purchases:

Purchases:
		Yearended	December31
		2021		2020
Purchases of goods:
-Subsidiaries	$	92,378	$	57,132

The prices of goods purchased from related parties are available to third parties. The payment terms are 30 days and 60 to 90 days after monthly billings.

C. Receivables from related parties:

Accounts receivable -Subsidiaries Other receivables Receivables from managerial services income -Subsidiaries Loans to -ACHEM Technology Corporation -Wan Chio Petrochemical (Jiangsu) Co., Ltd. -Subsidiaries	December 31,2021 246,884 $ 11,010 $ 1,173,697 1,020,435 367,885 2,573,027 $	December 31,2020
		118,132 $
		10,036 $ - 1,049,927 -
		1,059,963 $

Receivables from related parties refer to raw materials purchased on behalf of related parties and loans to related parties. The receivables are unsecured in nature, and there are no allowances for uncollectible accounts held against receivables from related parties.

D. Payables to related parties

Accounts payable -Subsidiaries Other payables Loans from -YEM CHIO -ASIACHEM International Corporation -ACHEM Technology Corporation Service fee from pre-sold house sale by proxy -Yanrun Development Co., Ltd.	December 31,2021 16,694 $ - $ - - 4,829 4,829 $	December 31,2020
		15,718 $
		114,064 $ 101,508 320,645 -
		536,217 $

Accounts payable arise mainly from purchase transactions. Other payables arise mainly from loans from subsidiaries and service fee from pre-sold house sale by proxy, etc.

~69~

E. Prepayments (shown as inventory)

Wong Chio Development, Ltd.	December31,2021 328,123 $	December31,2020
		149,153 $

F. Investment property

Details of land, buildings and office leased to UINN Hotel are provided in Note 6(11).

G. Pre-sold house contracts
Contract liabilities- Pre-sold house -Other related parties

December 31, 2021 December 31, 2020 $ 4,648 $ -

On May 13, 2021, the Company's Board of Directors resolved to pre-sell the houses and parking space of the building project ‘ THE ONE ’ in Xinzhuang District of New Taipei City to Li, QiZheng and Li, Shu-Wei. The total contract liabilities - pre-sold houses was $4,648, however, the transfer of ownership has not yet been completed.

H. Loans to /from related parties
(a) Loans to related parties

i. Outstanding balance

Interest income Wan Chio Petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation Subsidiaries Subsidiaries	December 31, 2021 December31,2020 1,020,435 $ 1,049,927 $ 1,160,000 - 365,000 - 2,545,435 $ 1,049,927 $ Year ended December31	December31,2020
		1,049,927 $ - -
		1,049,927 $
	2021 20,803 $	2020
		971 $

ii. Interest income

The loans to subsidiaries are repayable within 1 year and carry interest at 0%~2.5% per annum for the years ended December 31, 2021 and 2020.

~70~

(b) Loans from related parties

i. Outstanding balance

	December 31, 2021	December 31, 2021	December	31, 2020
YEM CHIO	$	-	$	113,920
ASIACHEM International Corporation		-		99,680
ACHEM Technology Corporation		-		320,000
	$	-	$	533,600

ii. Interest expense

Subsidiaries

Year ended	December31	December31
2021		2020
3,513 $	$	3,537

The loans from subsidiaries are repayable within 1 year and carry interest at 1.75%~2.50% and 2.50%~3.00% per annum for the years ended December 31, 2021 and 2020, respectively.

I. Other income

(a) Income from managerial services

Subsidiaries	Year ended December31	Year ended December31
	2021 39,425 $	2020
		38,245 $

(b) Rent income

Subsidiaries

YearendedDecember31	YearendedDecember31
2021 22,342 $	2020
	46,697 $

`－` J. Lease transactions lessee

The Company leases buildings from subsidiaries. Rental contracts are typically made for periods of 1 year. Rents are paid at the end of month.

Subsidiaries	Year ended December31
	2021 2020 1,720 $ 1,840 $

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K. Increase in deferred marketing expenses in the year

	December31,2021	December31,2020
Related parties	`29,144` `$`	`-` `$`

L. Acquisition of share equity of Chuang-Yi Investment Co., Ltd. In November 2021, the Company acquired 26.76% equity interest in Chuang-Yi Investment Co., Ltd. from Xin Chio Co., Ltd. at a net price of NT$ 215.57 per share, for a total consideration of $149,665. In November 2021, the Company has paid the full amount and completed the registration of the acquisition.
M. Endorsements and guarantees provided by related parties

Endorsements and guarantees provided to related Related parties Associates	parties: December 31, 2021 December 31, 2020 13,152,770 $ 12,243,484 $ December 31, 2021 December 31, 2020 849,120 $ 2,238,867 $

N. Endorsements and guarantees provided to related parties:

(3) Key management compensation

Key management compensation
Salaries and bonuses Pensions	Year ended December 31
	2021 10,855 $ 378 11,233 $	2020
		11,208 $ 432
		11,640 $

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8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Pledged assets Non-current financial assets at amortised cost - Demand deposits - Time deposits Inventories Non-current assets held for sale Property, plant and equipment Investment property Other non-current assets - Guarantee deposits paid	December 31,2021 December 31,2020 Purpose 104,133 104,112 Long-term borrowings, corporate bond guarantee and consideration trust for inventory purchases and sales, etc. 104,999 104,907 Leasehold land guarantees, performance guarantee for construction and guarantee for corporate bonds 5,332,875 4,684,330 Long-term borrowings, short-term borrowings - 376,262 Short-term borrowings 2,987,304 3,113,165 Long-term borrowings, short-term borrowings 2,098,276 2,090,466 Long-term borrowings, short-term borrowings Deposits for leases and guarantee 2,464 2,952 construction 10,630,051 $ 10,476,194 $ Book value	Purpose

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

Except for those mentioned in Notes 6(17) and 7(2), as of December 31, 2021, the Company’s significant commitments are as follows:

A. As of December 31, 2021, the unused letters of credit amounted to $314,855 for the purchase of raw materials and machinery, etc.
B. Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

Consigned to construction companies to construct buildings	December31,2021 475,193 $	December31,2020
		818,366 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

(1) Refer to Note 6(21).

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(2) In September 2021, the Company's Board of Directors resolved to dispose the property, plant and equipment of the second-tier subsidiary, Wan Chio Petrochemical (Jiangsu) Co., Ltd. The counterparty of machinery and equipment contract defaulted on the payment, thus, on March 8, 2022, the Company entered into another machinery and equipment trading contract with a new counterparty. The original transaction terms for the land and plant demolition and expropriation have not been altered, however, the total consideration of these two contracts has been changed to RMB 438 million.
(3) On March 25, 2022, the Company's Board of Directors resolved that ACHEM Technology China will transfer its 62.3% equity interest in Foshan Inder Adhesive Product Co., Ltd. to Wanchio Adhesive Product (Jiangsu) Co., Ltd. in exchange for the new shares of Wanchio Adhesive Product (Jiangsu) Co., Ltd., and the transaction price was RMB 101,450 thousand.

12. OTHERS

(1) Capital management

The Company’s key objectives when managing capital are to maintain the optimal credit rating and capital ratios to support the Company’s operations and to maximise returns for shareholders. Related ratio of net debt divided by total capital is provided in the balance sheets of each reporting period.

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(2) Financial instruments

A. Financial instruments by category

0 Financial assets Financial assets at fair value through profit or loss Financial assets designated as at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings (including current portion)	December 31,2021 751 $ 5,597 $ 328,252 $ 405,755 69,027 794,145 2,583,509 2,464 4,183,152 $ December 31,2021 3,372,822 $ 410,000 76,357 168,220 123,932 4,971,762 9,123,093 $	December 31,2020
		2,009 $
		14,229 $
		267,761 $ 412,854 42,211 467,837 1,225,721 2,952
		2,419,336 $
		December 31,2020
		3,787,905 $ 300,000 37,785 156,182 674,454 4,537,101
		9,493,427 $

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B. Financial risk management policies
(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.
(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii. The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.
iii. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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			December31,2021
		Foreign
	currency amount				Book value
		(Inthousands)	Exchangerate		(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	57,309	27.68	$	1,586,313
EUR:NTD		179	31.32		5,606
Financial liabilities
Monetary items
USD:NTD	$	7,132	27.68	$	197,414
Long-term equity
investments accounted
for under the equity
method
USD:NTD	$	30,503	27.68	$	844,322
			December31,2020
		Foreign
	currency amount				Book value
		(Inthousands)	Exchangerate		(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	47,294	28.48	$	1,346,933
EUR:NTD		1,036	35.02		36,281
Financial liabilities
Monetary items
USD:NTD	$	11,582	28.48	$	329,855
Long-term equity
investments accounted
for under the equity
method
USD:NTD	$	7,576	28.48	$	215,761
iv. The total exchange loss, including realised and unrealised arising from significant foreign
exchange variation on the		monetary items	held by the Company for the years ended
December 31, 2021 and 2020, amounted to ($44,872) and ($82,201),					respectively.

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v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

Sensitivity analysis degree of Effect on variation profit on loss 5% 79,316 $ 5% 280 5% 9,871 $ December31,2021 December31,2020	Sensitivity analysis degree of Effect on variation profit on loss 5% 79,316 $ 5% 280 5% 9,871 $ December31,2021 December31,2020	Effect on other comprehensive income - $ - - $
Sensitivity analysis degree of variation 5% 5% 5%	Effect on profit on loss 67,347 $ 1,814 16,493 $	Effect on other comprehensive income
		- $ - - $

Price risk

A. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

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B. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 5% with all other variables held constant, other components of equity for the years ended December 31, 2021 and 2020would have increased/decreased by $280 and $711, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

A. The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 2021 and 2020, the Company’s borrowings at variable rate were mainly denominated in NTD.
B. The Company’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.
C. If the borrowing interest rate had increased/decreased by 5% with all other variables held constant, profit, net of tax for the years ended December 31, 2021 and 2020 would have decreased/increased by $4,702 and $5,490, respectively. The main factor is that changes in interest expense result from floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost.
ii. For banks and financial institutions, only banks and financial institutions with optimal credit ratings are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.
iii. The Company adopts the internal management policy, that is, the default occurs when the contract payments are past due over 240 days.
iv. The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

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v. The Company applies the simplified approach using the provision matrix to estimate expected credit loss to assess the Company’s accounts receivable.
vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vii. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.
viii. The Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2021 and 2020, the provision matrix is as follows:

Group

		Group
December 31, 2021 Expected loss rate Total book value Loss allowance December 31, 2020 Expected loss rate Total book value Loss allowance	Individual 100% 10,475 $ 10,475 Individual 100% 10,475 $ 10,475	Up to 90 days Notpast due past due 0.84% 2.13%~21.41% 360,848 $ 191,770 $ 2,415 2,942 Up to 90 days Notpast due past due 0.51% 1.11%~7.51% 218,440 $ 136,622 $ 2,415 2,942 Group	Total
			563,093 $ 15,832 Total
		Notpast due 0.51% 218,440 $ 2,415
			365,537 $ 15,832

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ix. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable and notes receivable are as follows:

January 1 Reversal for impairment At December 31 At January 1 Provision for impairment At December 31	Accountsreceivable Notesreceivable 15,832 $ 807 $ - 807) ( 15,832 $ - $ Accounts receivable Notes receivable 15,832 $ 807 $ - - 15,832 $ 807 $ 2021 2020

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.

ii. The Company has the following undrawn borrowing facilities:

Floating rate: Expiring within one year Expiring beyond one year	December31,2021 - $ 2,490,000 2,490,000 $	December31,2020
		350,000 $ 590,000
		940,000 $

The undrawn borrowing facilities will be used to repay existing financial liabilities and increase medium-term working capital.

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iii. The table below analyses the Company’s non-derivative financial liabilities and netsettled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2021 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Accounts payable-related parties Other payables Other payables-related parties Bonds payable (including current portion) Long-term borrowings (including current portion) Non-derivative financial liabilities:	Less than 1year 3,381,273 $ 410,000 76,357 151,526 16,694 119,103 4,829 454,400 2,640,749	Over 1year - $ - - - - - - - 2,606,034	Total
			3,381,273 $ 410,000 76,357 151,526 16,694 119,103 4,829 454,400 5,246,783

Bonds payable (including current portion) Long-term borrowings (including current portion) Non-derivative financial liabilities:	454,400 2,640,749	- 2,606,034	454,400 5,246,783
December 31, 2020 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Accounts payable-related parties Other payables Other payables-related parties Bonds payable Long-term borrowings (including current portion)	Less than 1year 3,817,064 $ 300,000 37,785 140,464 15,718 138,237 536,217 - 1,649,426	Over 1year - $ - - - - - - 816,000 3,122,965	Total
			3,817,064 $ 300,000 37,785 140,464 15,718 138,237 536,217 816,000 4,772,391

Derivative financial liabilities:

As of December 31, 2021 and 2020, there is no such situation.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

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Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in unlisted stocks, investment property and Call and put options of convertible corporate bonds is included in Level 3.
B. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties), short-term loans, short-term notes and bills payable, notes payable, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values. Interest rates of long-term borrowings (including maturity within 1 year or 1 operating cycle) are approximately the same as market interest rates, thus, the carrying amount should be a reasonable basis for fair value estimation.

	December	31,2021
Bookvalue 443,361 $		Fairvalue
	Level 1 - $ December	Level 2 441,729 $ 31,2020	Level3
			- $

Bookvalue 789,667 $		Fairvalue
	Level 1 - $	Level 2 798,694 $	Level3
			- $

(b) The methods and assumptions of fair value measurement are as follows:

Convertible debentures payable: Regarding the convertible bonds issued by the Company, the coupon rate approximates to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows and approximate to the book value.

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C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2021 and 2020 is as follows:
(a) The related information on the nature of the assets and liabilities is as follows:

December 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Call options and put options of convertible corporate bonds Financial assets at fair value through other comprehensive income Equity securities Investment property December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Call options and put options of convertible corporate bonds Financial assets at fair value through other comprehensive income Equity securities Investment property	Level 1 - $ - - - $ Level 1 - $ 8,632 - 8,632 $	Level 2 - $ - - - $ Level 2 - $ - - - $	Level3 751 $ 5,597 2,098,276 2,104,624 $ Level3 2,009 $ 5,597 2,090,466 2,098,072 $	Total
				751 $ 5,597 2,098,276
				2,104,624 $
				Total
				2,009 $ 14,229 2,090,466
				2,106,704 $

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(b) The methods and assumptions the Company used to measure fair value are as follows:
i. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Market quoted price Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to valuation methods.
iii.Under the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Company makes self-assessment using the income approach to calculate the fair value of investment property. Related assumptions and information on inputs are as follows:
- (i) Cash flow: Cash flow shall be evaluated on the basis of existing lease contracts, rent at local market rates, or current market rents for similar comparable properties in the same location and condition, and overvalued and undervalued comparable properties shall be excluded. If there is a period-end value, the discounted present period-end value may be added.
- (ii) Analysis period: When there is no specified period for the income, the analysis period in principle shall not be longer than 10 years; when there is a specified period for the income, the income shall be estimated for the remainder of the specified period.
- (iii) Discount rate: The discount rate shall be determined using the risk premium approach only, with the calculation based on a certain interest rate, plus the estimate for the individual characteristics of the investment property. The phrase "based on a certain interest rate" means the interest rate may not be lower than the floating interest rate on a 2-year time deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points.
D. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.
E. For the years ended December 31, 2021 and 2020, there was no transfer into or out from Level 3.
F. The information on change in fair value of investment property for the years ended December 31, 2021 and 2020 is provided in Note 6(11).

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G. Treasury segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and making any other necessary adjustments to the fair value. Investment property is evaluated regularly by the Company’s finance segment based on the valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau or through outsourced appraisal performed by the external valuer.

The treasury segment set up valuation policies, valuation processes and rules for measuring fair value of financial instruments and investment property to ensure compliance with the related requirements in IFRS.

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Item Unlisted stocks Investment property Call options and put options of convertible corporate bonds	Fair value at Significant December Valuation observable 31,2021 technique input 5,597 $ Market comparable companies Industrial average price to book ratio 2,098,276 Income approach Discount rate 751 Binary tree valuation model Volatility	Relationship of inputs Range to fairvalue Not applicable The higher the book value per share, the higher the fair value (Note) The higher the discount rate, the lower the fair value 28.21% The higher the volatility, the higher the fair value	Relationship of inputs to fairvalue

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Item Unlisted stocks Investment property Call options and put options of convertible corporate bonds	Fair value at Significant December Valuation observable 31,2020 technique input 5,597 $ Market comparable companies Industrial average price to book ratio 2,090,466 Income approach Discount rate 2,009 Binary tree valuation model Volatility	Relationship of inputs Range to fairvalue Not applicable The higher the book value per share, the higher the fair value (Note) The higher the discount rate, the lower the fair value 29.38% The higher the volatility, the higher the fair value	Relationship of inputs to fairvalue

Note: Information on discount rate and income capitalisation rate is provided in Note 6(11).

I. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 6.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.

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H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please
refer to table 8.
I. Trading in derivative instruments undertaken during the reporting periods: : Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 9.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 10.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 11.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to items (1) A, B, G, H and J above.

(4) Major shareholders information

Major shareholders information: Please refer to table 12.

14. SEGMENT INFORMATION

Not applicable.

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Yem Chio Co., Ltd. and Subsidiaries Loans to others For the year ended December 31, 2021

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Amount of transactions with the borrower (Note 5) Allowance for doubtful accounts Is a related party Maximum outstanding balance during the year ended December 31, 2021 (Note 3) Balance at December 31, 2021 (Note 8) Actual amount drawn down Interest rate NO. (Note 1) Creditor Borrower General ledger account (Note 2) Nature of loan (Note 4) Reason for short- term financing (Note 6)	Collateral	Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
	Item Value
0 The Company ACHEM Technology Holdings Limited Other receivables Y 279,600 $ 276,800 $ - $ 2.00% 2 - $ Working capital - $ 0 The Company UINN Hotel Other receivables Y 180,000 180,000 52,000 2.00% 2 - Working capital - 0 The Company Wong Chio Development., Ltd. Other receivables Y 500,000 500,000 158,000 2.50% 2 - Working capital - 0 The Company Chuang-Yi Investment Co., Ltd. Other receivables Y 330,000 330,000 155,000 2.00%-2.50% 2 - Working capital - 0 The Company ACHEM Technology Corporation Other receivables Y 1,800,000 1,800,000 1,160,000 2.50% 2 - Working capital - 0 The Company Wan Chio Petrochemical (Jiangsu) Co., Ltd. Other receivables Y 1,051,955 1,020,435 1,020,435 0.00% 2 - Working capital - 1 YEM CHIO The Company Other receivables Y 113,920 - - 2.00% 2 - Working capital - 1 YEM CHIO ACHEM Technology Holdings Limited Other receivables Y 156,943 152,240 152,240 2.00% 2 - Working capital - 2 ACHEM Technology Corporation Wong Chio Development., Ltd. Other receivables Y 50,000 - - 1.75% 2 - Working capital - 2 ACHEM Technology Corporation UINN Hotel Other receivables Y 50,000 - - 1.75% 2 - Working capital - 2 ACHEM Technology Corporation The Company Other receivables Y 320,000 - - 1.75% 2 - Working capital - 2 ACHEM Technology Corporation YEM CHIO Other receivables Y 99,873 - - 2.00% 2 - Working capital - 2 ACHEM Technology Corporation Chuang-Yi Investment Co., Ltd. Other receivables Y 450,000 280,000 30,000 1.75%-2.00% 2 - Working capital - 2 ACHEM Technology Corporation ACHEM Technology Holdings Limited Other receivables Y 726,960 719,680 719,680 2.00% 2 - Working capital - 3 ACHEM Technology Holdings Limited ACHEM Technology (Vietnam) Ltd. Other receivables Y 29,201 29,064 29,064 2.50% 2 - Working capital - 3 ACHEM Technology Holdings Limited ASIA PLASTICS Other receivables Y 28,535 27,680 22,144 2.00% 2 - Working capital - 3 ACHEM Technology Holdings Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Other receivables Y 114,140 110,720 110,720 2.50%-3.00% 2 - Working capital - 3 ACHEM Technology Holdings Limited WAN CHIO Other receivables Y 134,115 130,096 130,096 2.00% 2 - Working capital - 3 ACHEM Technology Holdings Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. Other receivables Y 1,573,484 1,573,484 1,573,484 2.50% 2 - Working capital - 4 ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Ningbo Yem Chio Co., Ltd. Other receivables Y 78,480 78,192 78,192 2.00% 2 - Working capital -	None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None -	2,070,712 $ 2,070,712 2,070,712 2,070,712 2,070,712 2,070,712 - - 934,555 934,555 934,555 934,555 934,555 934,555 3,350,785 3,350,785 3,350,785 3,350,785 3,350,785 824,833	4,141,424 $ 4,141,424 4,141,424 4,141,424 4,141,424 4,141,424 - - 1,635,472 1,635,472 1,635,472 1,635,472 1,635,472 1,635,472 3,350,785 3,350,785 3,350,785 3,350,785 3,350,785 824,833	- - - - - - - - - - - - - - - - - - - -

Table 1, Page 1

NO. (Note 1) Creditor Borrower General ledger account (Note 2) Is a related party Maximum outstanding balance during the year ended December 31, 2020 (Note 3) Balance at December 31, 2020 (Note 8) Actual amount drawn down Interest rate Nature of loan (Note 4) Amount of transactions with the borrower (Note 5) Reason for short- term financing (Note 6) Allowance for doubtful accounts	Collateral	Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
	Item Value
4 ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Other receivables Y 370,600 $ 369,240 $ 369,240 $ 0.00% 2 - $ Working capital - $ 5 ASIACHEM International Corporation The Company Other receivables Y 99,873 - - 2.50% 2 - Working capital - 5 ASIACHEM International Corporation ACHEM Technology Holdings Limited Other receivables Y 561,560 559,136 559,136 2.00%-2.50% 2 - Working capital - 5 ASIACHEM International Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. Other receivables Y 149,897 149,347 149,347 2.00% 2 - Working capital - 6 ACHEM Technology (Shanghai) Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. Other receivables Y 43,600 43,440 43,440 2.00% 2 - Working capital - 6 ACHEM Technology (Shanghai) Limited Ningbo Yem Chio Co., Ltd. Other receivables Y 30,688 30,408 30,408 2.00% 2 - Working capital - 6 ACHEM Technology (Shanghai) Limited Wan Chio Petrochemical (Jiangsu) Co., Ltd. Other receivables Y 725,552 718,932 718,932 0.00% 2 - Working capital - 7 Valueline Investment Corporation UINN Hotel Other receivables Y 30,000 - - 1.50% 2 - Working capital - 7 Valueline Investment Corporation ACHEM Technology Corporation Other receivables Y 35,000 35,000 35,000 1.50% 2 - Working capital - 8 ACHEM Technology China ACHEM Technology Holdings Limited Other receivables Y 256,815 27,680 11,072 2.00% 2 - Working capital - 9 Wanchio Adhesive Product (Jiangsu) Co., Ltd. Ningbo Yem Chio Co., Ltd. Other receivables Y 214,473 149,868 149,868 2.80%-4.90% 2 - Working capital - 9 Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Other receivables Y 974,576 974,576 974,576 0.00% 2 - Working capital - 10 ASIA PLASTICS Wan Chio Petrochemical (Jiangsu) Co., Ltd. Other receivables Y 635,088 632,757 632,757 0.00% 2 - Working capital - 11 ACHEM Opto-Electronic Corporation ACHEM Technology Corporation Other receivables Y 47,000 43,000 43,000 1.50% 2 - Working capital - 12 Master Package (Shanghai) Material Technology Co., Ltd. ACHEM (Tianjin) Adhesive Product Co., Ltd. Other receivables Y 5,918 5,864 5,864 2.00% 2 - Working capital - 12 Master Package (Shanghai) Material Technology Co., Ltd. Ningbo Yem Chio Co., Ltd. Other receivables Y 45,780 45,612 45,612 4.00% 2 - Working capital - 13 Xin Chio Co., Ltd. Chuang-Yi Investment Co., Ltd. Other receivables Y 325,000 325,000 325,000 1.75%-2.00% 2 - Working capital -	None - $ None - None - None - None - None - None - None - None - None - None - None - None - None - None - None - None -	824,833 $ 441,952 1,104,879 1,104,879 1,258,808 1,258,808 1,258,808 28,718 28,718 2,741,086 4,860,990 4,860,990 - 150,430 122,833 49,133 359,912	824,833 $ 441,952 1,104,879 1,104,879 1,258,808 1,258,808 1,258,808 28,718 28,718 2,741,086 4,860,990 4,860,990 - 150,430 122,833 49,133 359,912	- - - - - - - - - - - - - - - - -

Table 1, Page 2

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows: (1) The Company is ‘0’. (2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc. Note 3: Fill in the maximum outstanding balance of loans to others for the year ended December 31, 2021. Note 4: The column of ‘Nature of loan’ shall fill in ‘Business transaction or ‘Short-term financing’. (1) Business transaction.
(2) Short-term financing.
Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current year. Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.
Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, and state each individual party to which the loans have been provided and the calculation for ceiling on total loans granted in the footnote.
(1) In accordance with the financing policy of the Company, the ceiling for total financing amount shall not exceed 40% of stockholders’ equity, and separate financing amount shall not exceed 20% of stockholders’ equity. (2) In accordance with the financing policy of YEM CHIO, the ceiling for total financing amount shall not exceed 40% of stockholders’ equity, and separate financing amount shall not exceed 40% of stockholders’ equity. If the borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the financing amount shall not exceed 400% of stockholders’ equity. (3) Limit on Xin Chio Co., Ltd.’s total loans to others is 40% of the Company’s net assets.
Limit on loans to a single party with short-term financing is 40% of the Company’s net assets.
(4) Ceiling on total loans to others and limit on loans to a single party granted by Master Package (Shanghai) shall not exceed 40% of the stockholders’ equity.
If the borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the ceiling for total financing amount granted by Master Package (Shanghai) shall not exceed 100% of stockholders’ equity. (5) For the short-term financing from ACHEM Technology Corporation, the total and individual lending amount shall not exceed 35% and 20% of its nets assets, respectively. (6) Limit on loans granted by ACHEM Technology Holdings Limited to others and to a single party shall not exceed 40% of the stockholders’ equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the limit on loans is 100% of the stockholders’ equity. (7) Limit on loans granted by ASIACHEM International Corporation to others and to a single party shall not exceed 40% of the stockholders’ equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the parent company of ASIACHEM International Corporation, the limit on loans is 100% of the stockholders’equity of ASIACHEM International Corporation. (8) In accordance with the financing policy of Valueline Investment Corporation, the ceiling for total and separate financing amount shall not exceed 40% of the stockholders’ equity of the subsidiaries. (9) Limit on loans granted by ACHEM Technology (Shanghai) Limited to others and to a single party shall not exceed 40% of the stockholders’ equity of ACHEM Technology (Shanghai) Limited. If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology (Shanghai) Limited, the limit on loans is 100% of the stockholders’ equity of ACHEM Technology (Shanghai) Limited. (10) Limit on loans granted by ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. to others and to a single party shall not exceed 40% of the stockholders’ equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd., the limit on loans is 100% of the stockholders’ equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. (11) Limit on loans granted by ASIA PLASTICS to others and to a single party shall not exceed 40% of the stockholders’ equity of ASIA PLASTICS. If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ASIA PLASTICS, the limit on loans is 1000% of the stockholders’ equity of Shanxi Heyangder Adhensive Produce Co., Ltd. (12) Limit on loans granted by ACHEM Technology China to others and to a single party shall not exceed 40% of the stockholders’ equity of ACHEM Technology China. If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology China, the limit on loans is 100% of the stockholders’ equity of ACHEM Technology China. (13) The total and individual lending amount of Wanchio Adhesive Product (Jiangsu) Co., Ltd. shall not exceed 40% of its net assets. However, the loans among foreign entities to which the ultimate parent company of Wanchio Adhesive Product (Jiangsu) Co., Ltd. directly or indirectly has 100% voting rights, the total and individual lending amount shall not exceed 3000% of net assets of the lender company. (14) Limit on ACHEM Opto-Electronic Corporation’s total loans to others is 40% of the Company’s net assets. (15) As ASIA PLASTICS recognised impairment loss on assets of the associate, Wan Chio Petrochemical (Jiangsu) Co., Ltd., ASIA PLASTICS’s loans to Wan Chio Petrochemical (Jiangsu) Co., Ltd. amounting to $632,757 were over the limit. However, ASIA PLASTICS has been actively developing improvement plans. (16) As YEM CHIO recognised impairment loss on assets of the subsidiary, Wan Chio Petrochemical (Jiangsu) Co., Ltd., YEM CHIO’s loans to ACHEM Technology Holdings Limited amounting to $152,240 were over the limit. However, YEM CHIO has made improvement. (17) As Valueline Investment Corporation recognised paid dividends to ACHEM Technology Corporation, Valueline Investment Corporation’s loans to ACHEM Technology Corporation amounting to $35,000 were over the limit. However, Valueline Investment Corporation has made improvement.
Note 8: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be ncluded in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has authorized the chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance eventhough the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.

Table 1, Page 3

Table 2

Yem Chio Co., Ltd. and Subsidiaries

Provision of endorsements and guarantees to others

For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Party being endorsed/guaranteed

Number (Note1)	Endorser/guarantor	Companyname	Relationship with the endorser/ guarantor(Note2)	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021(Note4)	Outstanding endorsement/ guarantee amount at December 31, 2021(Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantorcompany	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements / guarantees by parent company to subsidiary (Note7)	Provision of endorsements / guarantees by subsidiary to parent company (Note7)	Provision of endorsements/ guarantees to the party in Mainland China (Note7)	Footnote
0 0 0 0 0 0 0 0 1 1 1 1 1	The Company The Company The Company The Company The Company The Company The Company The Company ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation	YEM CHIO WAN CHIO Wong Chio Development., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. UINN Hotel ACHEM Technology (Vietnam) Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Dongguan) Adhesive Product Co., Ltd. ACHEM Technology (Dongguan) Adhesive Product Co., Ltd. ACHEM Technology Holdings Limited Ningbo Yem Chio Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Vietnam) Ltd.	2 2 2 2 2 2 2 2 2 2 2 2 2	10,353,559 $ 10,353,559 10,353,559 10,353,559 10,353,559 10,353,559 10,353,559 10,353,559 4,672,776 4,672,776 4,672,776 4,672,776 4,672,776	302,471 $ 187,968 150,000 1,439,305 134,000 28,535 139,250 139,250 152,080 1,086,150 153,440 209,280 34,242	226,976 $ 63,664 150,000 - 104,000 27,680 138,400 138,400 151,632 1,079,520 152,040 208,512 33,216	- $ - 15,000 - 100,993 - 130,320 - 25,563 596,504 128,442 15,439 -	- $ - - - - - - - - - - - -	2 1 1 0 1 0 1 1 3 24 3 5 1	15,530,339 $ 15,530,339 15,530,339 15,530,339 15,530,339 15,530,339 15,530,339 15,530,339 4,672,776 4,672,776 4,672,776 4,672,776 4,672,776	Y Y Y Y Y Y Y Y Y Y Y Y Y	N N N N N N N N N N N N N	N N N Y N N Y Y Y N Y Y N	- - - - - - - - - - - -

Table 2, Page 1

Party being endorsed/guaranteed

Number (Note1)	Endorser/guarantor	Companyname	Relationship with the endorser/ guarantor(Note2)	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021(Note4)	Outstanding endorsement/ guarantee amount at December 31, 2021(Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantorcompany	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements / guarantees by parent company to subsidiary (Note 7)	Provision of endorsements / guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
2	ACHEM Technology (Shanghai) Limited	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	2	1,258,808 $	87,200 $	86,880 $	41,568 $	- $	7	1,258,808 $	N	N	Y	-

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:
(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.
(5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and
Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.
(1) Calculation for ceiling on endorsements/guarantees provided by the Company to others and to a single party is based on 150% and 100% of the Company’s net equity in the latest financial statements, respectively.
(2) Calculation for ceiling on endorsements/guarantees provided by ACHEM Technology Corporation to others and to a single party is based on 100% of stockholders’ equity in the latest financial statements.
(3) For ACHEM Technology (Shanghai) Limited, the ceiling on total amount of endorsements/guarantees provided and the limit on endorsements/guarantees provided for a single party are both calculated based on 100% of net assets disclosed on the latest financial statements.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 2, Page 2

Table 3

Yem Chio Co., Ltd. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

As at December 31, 2021

Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer `（`Note 2`）` General ledger account	Number of shares	Book value `（`Note 3`）`	Ownership (%) Fair value	Footnote (in shares) `（`Note 4`）`
The Company Common stock Unipex Global Co., Ltd. None Non-current financial assets at fair value through other comprehensive income Chuang-Yi Investment Co., Ltd. Common stock Micro-Star International Co., Ltd. None Current financial assets at fair value through profit or loss Formosa Plastics Corporation " " Quanta Coumputer Inc. " Current financial assets at fair value through profit or loss / current financial assets at fair value through other comprehensive income ASE Technology Holding Co., Ltd. " " MediaTek Inc. " " CHIPBOND TECHNOLOGY CORPORATION " " China Steel Corporation " " LITE-ON Technology Corp. " " WPG Holdings Limited " Current financial asset measured at fair value through other comprehensive income Fubon Financial Holding Co., Ltd. " " Formosa Chemicals & Fibre Corp. " " Delta Electronics, Inc. " " Taiwan Semiconductor Manufacturing Co., Ltd. " " Taiwan Cement Corp. " " CATCHER TECHNOLOGY CO., LTD. " " RUENTEX INDUSTRIES LIMITED " " Antec Inc. " " Mega Financial Holding Company Ltd. " " HON HAI PRECISION IND. CO., LTD. " " Fubon Taiwan Index high dividend 30 ETF " " YEM CHIO Common stock YC Co., Ltd. Ultimate parent company Non-current financial assets at fair value through other comprehensive income ACHEM Technology Corporation Common stock ASE Technology Holding Co., Ltd. None Current financial assets at fair value through profit or loss China Steel Corporation " " EVERGREEN MARINE CORP. (TAIWAN) LTD. " " Yuanta Taiwan Top 50 ETF " " WPG Holdings Limited " " Formosa Chemicals & Fibre Corp. " " International Engineering & Construction Corp. (IEC) " Non-current financial assets at fair value through other comprehensive income International Steel Company " "	`171,900` `23,000` `213,000` `2,582,000` `1,237,897` `39,000` `440,000` `5,303,000` `2,695,368` `2,296,120` `2,244,335` `1,818,000` `8,000` `2,000` `1,260,502` `200,000` `86,500` `818,000` `50,780` `491,000` `600,000` `16,822,281` `362,000` `1,386,000` `33,000` `154,000` `212,000` `123,000` `7,212,885` `143,826`	`5,597` `$` `3,692` `$` `22,152` `244,515` `131,836` `46,410` `29,348` `187,461` `171,964` `120,776` `171,243` `146,894` `2,200` `1,230` `60,504` `31,300` `8,434` `82,618` `1,805` `51,064` `9,246` `245,341` `$` `38,554` `$` `48,995` `4,703` `22,407` `11,151` `9,938` `-` `1,116`	`17.19%` `5,597` `$` `0.00%` `3,692` `$` `0.00%` `22,152` `0.07%` `244,515` `0.03%` `131,836` `0.00%` `46,410` `0.06%` `29,348` `0.03%` `187,461` `0.11%` `171,964` `0.12%` `120,776` `0.02%` `171,243` `0.03%` `146,894` `0.00%` `2,200` `0.00%` `1,230` `0.02%` `60,504` `0.03%` `31,300` `0.01%` `8,434` `0.18%` `82,618` `0.00%` `1,805` `0.00%` `51,064` `0.31%` `9,246` `2.64%` `245,341` `$` `0.01%` `38,554` `$` `0.01%` `48,995` `0.00%` `4,703` `0.12%` `22,407` `0.01%` `11,151` `0.00%` `9,938` `7.99%` `-` `3.20%` `1,116`	`-` `-` `-` `1,906,000` `599,000` `-` `-` `3,100,000` `1,399,000` `1,168,000` `1,313,000` `1,200,000` `-` `-` `500,000` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-`

Table 3, Page 1

As at December 31, 2021

Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer `（`Note 2`）` General ledger account	Number of shares	Book value `（`Note 3`）`	Ownership (%) Fair value	Footnote (in shares) `（`Note 4`）`
ACHEM Technology Corporation Bank debenture Citigroup Inc. None Non-current financial assets at fair value through other comprehensive income Valueline Investment Corporation Common stock YC Co., Ltd. Ultimate parent company Non-current financial assets at fair value through other comprehensive income Lucky-Heart Co., Ltd. None " Taiwan Virtual Reality Technologies Inc. " " ACHEM Technology Holdings Limited Beneficiary certificates Augustus Multi - Strategy Fund None Current financial assets at fair value through profit or loss Common stock YC Co., Ltd. Ultimate parent company Non-current financial assets at fair value through other comprehensive income AOE Holding Limited Bank debenture Codeis Securities S.A. None Current financial assets at fair value through profit or loss	`-` `406,409` `800,000` `1,600,000` `58,721` `1,194,138` `-`	`55,888` `$` `6,279` `$` `-` `-` `-` `$` `18,449` `$` `19,767` `$`	`-` `55,888` `$` `0.06%` `6,279` `$` `6.96%` `-` `10.00%` `-` `-` `-` `$` `0.19%` `18,449` `$` `-` `19,767` `$`	`-` `-` `-` `-` `-` `-` `-`

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments.’ Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value. Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions

Table 3, Page 2

Yem Chio Co., Ltd. and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2021

Table 4

(Expressed in thousands of New Taiwan dollars) (Except as otherwise indicated)

Investor	Marketable securities (Note 2)	General ledger account	Counterparty (Note 3)	Relationship with the investor (Note 3)	Balance as at January1,2021	Balance as at January1,2021	Addition	(Note 4)		Disposal(Note 4)	Disposal(Note 4)		Other changes	Other changes	Balanc December	e as at 31,2021
					Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Selling price	Book value	Gains (losses) on disposal	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount
Foshan Inder Adhesive Product Co., Ltd. Chuang-Yi Investment Co., Ltd.	Common stock: Ventec International Group Co., Ltd. Financial product: Financial product launched by Bank of China	1 1 and 2	- -	- -	- 3,700	- $ 251,600	- 53	650,555 $ 6,517	- 3,753	650,555 $ 413,858	650,555 $ 305,179	- $ 108,785	- -	- $ -	- -	- $ -

Note 1: The numbers filled in general ledger account are as follows:
Current financial assets at fair value through profit or loss
Current financial asset measured at fair value through other comprehensive income
Non-current financial assets at fair value through profit or loss
Note 2: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 3: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.
Note 4: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more.
Note 5: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 4, Page 1

Yem Chio Co., Ltd. and Subsidiaries

Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

For the year ended December 31, 2021

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty	is a related party, infor the real estate is dis	mation as to the last closed below:	transaction of	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
The Company	Land in Taishan Section, Taishan District, New Taipei City	2021/5/13	$ 392,911	Paid	A group of 8 people	None	(Not applicable)				Determined by mutual agreement	For the Company's future development use	None

Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate acquired should be appraised pursuant to the regulations.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.
Note 3: Date of the event referred to herein is the date of contract signing date, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 5, Page 1

Yem Chio Co., Ltd. and Subsidiaries

Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more For the year ended December 31, 2021

Table 6 Real estate disposed by	Realestate	Transaction date or date of the event	Date of acquisition	Bookvalue	Disposal amount	Status of collection of proceeds	Gain (loss) ondisposal	Counterparty	Relationship with the seller	Reason for disposal	Basis or reference used insetting the price Expressed in tho (Except as othe	Other commitments usands of NTD rwise indicated)
The Company	Land in Jianlin Section, Linkou District, New Taipei City. Land number 60, 75 and 76.	2020/9/1	2015/12/10	186,501 $	1,043,350 $	Fully collected	851,666 $	Yu Xuan Development and Construction Co., Ltd.	-	Revitalising company assets	Referring to appraisal report	None

Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate disposed of should be appraised pursuant to the regulations.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 3: Date of the event referred to herein is the date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 6, Page 1

Table 7

Yem Chio Co., Ltd. and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions(Note 1)	Differences in transaction terms compared to third party transactions(Note 1)	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
The Company The Company The Company ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology Corporation ACHEM Industry America Inc. Xin Chio Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Ningbo Yem Chio Co., Ltd. ACHEM Industry America Inc. ACHEM Technology Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Subsidiary An indirect subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Parent company Sister company	Sales Sales Sales Purchases Purchases Sales Sales Sales	500,484) ($ 378,567) ( 116,475) ( 397,333 356,122 176,642) ( 279,449) ( 328,697) (	(10.99%) (8.31%) (2.56%) 9.29% 8.32% (2.88%) (15.10%) (17.76%)	30 days after monthly billings 60 days after the receipt of shipment 90 days after monthly billings 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	46,839 $ 163,387 36,658 80,637) ( 80,728) ( 53,015 51,795 81,398 $	5.43% 18.93% 4.25% (13.60%) (13.62%) 4.04% 11.17% 17.56%	None None None None None None None None

Table 7, Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions(Note 1)	Differences in transaction terms compared to third party transactions(Note 1)	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Ningbo Yem Chio Co., Ltd.	ACHEM Industry America Inc.	Sister company	Sales	245,464) ($	(19.48%)	90 days after monthly billings	Note 4	Note 4	48,244 $	23.47%	None

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 4: The description of the transaction is not significantly different with third parties and as such, no need to disclose.

Table 7, Page 2

Table 8

Yem Chio Co., Ltd. and Subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021 `（`Note 1`）`	Turnover rate	Overdue r	eceivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company The Company The Company The Company The Company YEM CHIO Xin Chio Co., Ltd. ACHEM Technology Corporation ACHEM Technology (Shanghai) Limited ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited ASIACHEM International Corporation ASIACHEM International Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ASIA PLASTICS	Wan Chio Petrochemical (Jiangsu) Co., Ltd. Chuang-Yi Investment Co., Ltd. ACHEM Technology Corporation Wong Chio Development., Ltd. ACHEM Industry America Inc. ACHEM Technology Holdings Limited Chuang-Yi Investment Co., Ltd. ACHEM Technology Holdings Limited Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. WAN CHIO ACHEM Technology Holdings Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Ningbo Yem Chio Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd.	An indirect subsidiary Subsidiary Subsidiary Subsidiary An indirect subsidiary Sister company Associates Subsidiary Sister company An indirect subsidiary An indirect subsidiary Sister company Sister company Sister company Sister company Sister company Sister company Sister company	Other receivables 1,020,435 $ Other receivables 155,582 Other receivables 1,181,834 Other receivables 160,207 Accounts receivable 163,387 Other receivables 154,584 Other receivables 326,303 Other receivables 725,387 Other receivables 718,932 Other receivables 1,584,485 Other receivables 112,707 Other receivables 131,739 Other receivables 567,947 Other receivables 151,835 Other receivables 369,240 Other receivables 151,326 Other receivables 974,576 Other receivables 632,757	- - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - -

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties. Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity.

Table 8, Page 1

Table 9

Yem Chio Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting period For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 1 2 2 2 2 2 3 4 5 6	The Company The Company The Company The Compnay Xin Chio Co., Ltd. ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation Ningbo Yem Chio Co., Ltd. ACHEM Technology (Shanghai) Limited ACHEM Technology Holdings Limited ASIACHEM International Corporation	ACHEM Technology Corporation ACHEM Industry America Inc. Wan Chio Petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation Chuang-Yi Investment Co., Ltd. ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited Foshan Inder Adhesive Product Co., Ltd. Ningbo Yem Chio Co., Ltd. ACHEM Industry America Inc. ACHEM Industry America Inc. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology Holdings Limited	(1) (1) (1) (1) (3) (1) (1) (1) (1) (1) (3) (3) (1) (3)	Sales Sales Other receivables Other receivables Other receivables Other receivables Endorsement/guarantee Purchase Purchase Sales Sales Other receivables Other receivables Other receivables	500,484 $ 378,567 1,020,435 1,181,834 326,303 725,387 596,504 397,333 356,122 176,642 245,464 718,932 1,584,485 567,947	30 days after monthly billings 60 days after the receipt of shipment Depends on negotiation Depends on negotiation Depends on negotiation Depends on negotiation Not applicable 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings 90 days after monthly billings Depends on negotiation Depends on negotiation Depends on negotiation	2.91% 2.20% 3.37% 3.90% 1.08% 2.39% 1.97% 2.31% 2.07% 1.03% 1.43% 2.37% 5.23% 1.87%

Table 9, Page 1

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
7 7 7 8 9	Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd ASIA PLASTICS	ACHEM Technology Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd.	(2) (3) (3) (3) (3)	Sales Sales Other receivables Other receivables Other receivables	279,449 $ 328,697 974,576 369,240 632,757	60 days after monthly billings 60 days after monthly billings Depends on negotiation Depends on negotiation Depends on negotiation	1.63% 1.91% 3.21% 1.22% 2.09%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle. Note 5: The transactions less than 1% of consolidated total assets or consolidated sales do not need to be disclosed. The disclosure is by asset or revenue.

Table 9, Page 2

Yem Chio Co., Ltd. and Subsidiaries

Information on investees (not including investees in Mainland China) For the year ended December 31, 2021

Table 10

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee `（`Notes 1 and 2`）`	Location	Main business activities	Initial invest	ment amount	Shares held	as at December31,2021	as at December31,2021	Net profit (loss) of the investee for the year ended December 31,2021	Investment income (loss) recognised by the Company for the year ended December31,2021	Footnote
				Balance as at December 31,2021	Balance as at December 31,2021	Number of shares	Ownership (%)	Bookvalue
The Company The Company The Company The Company The Company The Company The Company YEM CHIO	YEM CHIO Chuang-Yi Investment Co., Ltd. UINN Hotel Wong Chio Development., Ltd. ACHEM Technology Corporation Xin Chio Co., Ltd. Yanrun Development Co., Ltd. ASIA PLASTICS	BVI Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan BVI	Manufacturing of adhesives and polystyrene sheets; investment holdings Investment holdings Hotel management and related business Undertaking civil engineering and hydraulic engineering Manufacturing of adhesives and polystyrene sheets; investment holdings Manufacturing, import and export of material packaging, computer software and hardware for cloud services and peripheral equipment, research and development, and distribution of design of above products Operating real estate related business Manufacturing of adhesives and polystyrene sheets; investment holdings	1,304,226 $ 25,943 25,740 345,077 3,999,048 299,264 8,000 322,001	1,304,226 $ 469,000 25,740 345,077 3,999,048 299,264 - 322,001	47,117,523 2,594,286 - 34,507,664 399,904,848 25,710,120 800,000 11,632,500	100% 100% 100% 100% 100% 41.76% 40% 45%	844,322) ($ 660,891 25,164) ( 309,731 4,521,370 59,592 4,129 52,684) (	382,013) ($ 73,056 40,775) ( 11,841) ( 49,514 100,919 15,309 213,701) (	391,541) ($ 61,517 117,272 11,239) ( 63,502 40,950 3,871) ( -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary - An indirect subsidiary

Table 10, Page 1

Investor	Investee `（`Notes 1 and 2`）`	Location	Main business activities	Initial invest	ment amount	Shares held	as at December31,2021	as at December31,2021	Net profit (loss) of the investee for the year ended December 31,2021	Investment income (loss) recognised by the Company for the year ended December31,2021	Footnote
				Balance as at December 31,2021	Balance as at December 31,2021	Number of shares	Ownership (%)	Bookvalue
YEM CHIO ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited	WAN CHIO ASIACHEM International Corporation ACHEM Technology Holdings Limited Valueline Investment Corporation ACHEM Opto-Electronic Corporation Xin Chio Co., Ltd. ACHEM Technology Americas Ltd. ACHEM Technology China ACHEM Technology (Vietnam) Ltd. WAN CHIO	BVI BVI BVI Taiwan Taiwan Taiwan Cayman Islands Cayman Islands Vietnam BVI	Manufacturing and marketing of raw materials; investment holdings Investment of adhesives and related products Investment of high technology industry Investment holdings Manufacturing of electronic parts and components Manufacturing, import and export of material packaging, computer software and hardware for cloud services and peripheral equipment, research and development, and distribution of design of above products Investment of high technology industry Investment of high technology industry Manufacturing and sales of various adhesives products Manufacturing and marketing of raw materials; investment holdings	811,024 $ 322,043 2,793,581 249,287 300,563 242,903 377,638 1,888,027 332,160 514,848	811,024 $ 322,043 2,710,541 249,287 300,563 241,803 377,638 1,804,987 300,328 514,848	40,400,000 23,269 100,924 826,089 19,286,951 14,930,000 13,643,000 68,209,075 - 18,600,000	68.47% 100% 100% 100% 78.48% 24.22% 100% 100% 100% 31.53%	917,152) ($ 1,104,879 3,339,937 71,796 295,145 288,219 987,778 2,741,086 212,519 422,343) (	592,317) ($ 89,321 391,407) ( 530 67,299 100,919 28,883 119,461) ( 5,539) ( 592,317) (	- $ - - - - - - - - -	An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary - An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary

Table 10, Page 2

Investor	Investee `（`Notes 1 and 2`）`	Location	Main business activities	Initial invest	ment amount	Shares held	as at December31,2021	as at December31,2021	Net profit (loss) of the investee for the year ended December 31,2021	Investment income (loss) recognised by the Company for the year ended December31,2021	Footnote
				Balance as at December 31,2021	Balance as at December 31,2021	Number of shares	Ownership (%)	Bookvalue
ACHEM Technology Holdings Limited ACHEM Technology Holdings Limited ACHEM Technology Americas Ltd. ACHEM Opto- Electronic Corporation ACHEM Technology China	ASIA PLASTICS ACHEM Technology (M) SDN. BHD. ACHEM Industry America Inc. AOE Holding Limited LANDMART	BVI Malaysia U.S.A. BVI Samoa	Manufacturing and marketing of raw materials; investment holdings Business of import, export and distribution Manufacturing and sales of various adhesives products Investment of high technology industry Investment of high technology industry	483,528 $ 3,848 240,816 58,593 775,040	483,528 $ 3,848 240,816 58,593 775,040	14,217,500 353,152 50,000 4,234 28,000,000	55% 90% 100% 100% 100%	64,391) ($ 18,718 880,835 333,958 1,259,595	213,701) ($ 656) ( 29,074 70,984 44,241	- $ - - - -	An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1)The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at December 31, 2021’ should fill orderly in the Company’s (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2)The ‘Net profit (loss) of the investee for the year ended December 31, 2021’ column should fill in amount of net profit (loss) of the investee for this period.
(3)The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2021’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Note 3: Indirect subsidiary' s income is recognised by subsidiary.

Table 10, Page 3

Yem Chio Co., Ltd. and Subsidiaries

Information on investments in Mainland China

For the year ended December 31, 2021

Investee in Mainland China Table 11	Main business activities	Paid-incapital	Investment method `（`Note1`）`	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2021	Amount remitte to Mainland C remitted back to yearendedDec	d from Taiwan hina/Amount Taiwan for the ember31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2021 `（`Note2`）`	Expressed in thousa (Except as otherwis Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31,2021	Expressed in thousa (Except as otherwis Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31,2021	nds of NTD e indicated) Footnote
					Remitted to Mainland China	Remitted back toTaiwan
Ningbo Yem Chio Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. ACHEM (Tianjin) Adhesive Product Co., Ltd. ACHEM Technology (Wuhan) Limited Foshan Inder Adhesive Product Co., Ltd. Shaanxi Heyangder Adhesive Product Co., Ltd. Fuzhou Fuda Plastic Products Co., Ltd. ACHEM Technology Huizhou Adhesive Products Ltd. ACHEM Technology (Chengdu) Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Sales of adhesives and polystyrene sheets Wholesale, import and export of various wrapping materials, computer software, hardware and peripherals Sales of various adhesives products Manufacturing and sales of various adhesives products Manufacturing and sales of various adhesives products Manufacturing and sale of various adhesives products, raw material, wrapping material and paper products Maunfacturing and sales of various adhesives products and material Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of adhesives and BOPP film	310,846 $ 168,848 23,528 28,234 390,994 - 35,984 - 4,152 207,932	2 1 1 1 2 2 2 2 2 2	793,057 $ 168,848 19,969 32,229 153,845 - 29,064 - 4,152 207,932	- $ - - - - - - - - -	- $ - - - - - - - - -	793,057 $ 168,848 19,969 32,229 153,845 - 29,064 - 4,152 207,932	224,663) ($ 1,828 138) ( 278 96,764 - 2,136 - 1,476) ( 46,068	100% 65.98% 65.98% 65.98% 62.30% - 100% - 100% 100%	224,663) ($ 1,206 91) ( 183 60,284 - 2,136 - 1,476) ( 46,068	743,013) ($ 122,833 5,659) ( 5,037 437,553 - 60,571 - 10,695 824,833	- $ - - - - - - - - -	B B B B B C B C B B

Table 11, Page 1

Investee in Mainland China	Main business activities	Paid-incapital	Investment method `（`Note1`）`	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2021	Amount remitte to Mainland C remitted back to yearendedDec	d from Taiwan hina/Amount Taiwan for the ember31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2021 `（`Note2`）`	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31,2021	Footnote
					Remitted to Mainland China	Remitted back toTaiwan
ACHEM Technology (Shanghai) Limited Winda Opto- Electronics Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of polarizing film, photoelectric material, optical thin-film and polarizing adhesives Manufacturing and sale of various plastic materials Manufacturing and sale of various plastic materials	445,648 $ 411,828 2,214,400 830,400	2 2 2 2	445,648 $ 119,079 1,325,872 747,360	- $ 19,267 - 83,040	- $ - - -	445,648 $ 138,346 1,325,872 830,400	44,276 $ 337,541 1,177,429) ( 273,449) (	100% 37.38% 100% 100%	44,276 $ 126,165 1,085,001) ( 273,449) (	1,258,808 $ 618,442 2,417,184) ( 162,033	- $ 355,764 - -	B B B B

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2021	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on nvestments in Mainland China imposed by the Investment ommission of MOEA
YC CO., LTD. ACHEM Technology Corporation Xin Chio Co., Ltd.	$ 1,001,100 2,892,797 221,045	$ 1,019,092 3,270,781 221,045	$ 6,604,487 2,981,834 539,869

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: In the ‘Investment income (loss) recognised by the Company for the year ended December 31, 2021’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:

A.The financial statements were audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

B.The financial statements were audited and attested by R.O.C. parent company’s CPA.

C.Unaudited and unattested (reiewed) financial statements for the same periods ended.

D.Others.

Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Note 4: (1) The Company’s accumulated amount of remittance to Mainland China as of December 31, 2020 was USD 36,167 thousand, and the amount approved by MOEA was USD 36,817 thousand.

(2) ACHEM Technology Corporation’s accumulated amount of remittance to Mainland China as of December 31, 2021 was USD 102,362 thousand, (in addition there is USD 2,342 thousand to be remitted) and the amount approved by MOEA was USD 123,818 thousand.

(3) Xin Chio Co., Ltd.’s accumulated amount of remittance to Mainland China as of December 31, 2021 was USD 7,986 thousand, and the amount approved by MOEA was USD 7,986 thousand.

Table 11, Page 2

Yem Chio Co., Ltd. and Subsidiaries

Major shareholders information

December 31, 2021

Table 12

Name of major shareholders	Sh	ares
	Number of shares held	Ownership (%)
YING CHUNG CO., LTD. INGS CHYUANG INTERNATIONAL CO., LTD. ASIA PLASTICS CO., LTD. Li, Zhi-Xian	44,057,552 42,878,666 42,748,839 32,711,344	6.90% 6.71% 6.69% 5.12%

Note: The major shareholders' information was derived from the data using the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded on the financial statements may be different from the actual number of shares in dematerialised form due to the difference in calculation basis.

Table 12, Page 1

YEM CHIO CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 1
Item
Description
Petty cash
Checking accounts
Demand deposits
－NTD
－Foreign currency
USD 2,681 thousand at exchange rate
approximately 27.68
EUR 179 thousand at exchange rate
approximately 31.32
HKD 139 thousand at exchange rate
approximately 3.55
JPY 2,674 thousand at exchange rate
approximately 0.24
RMB 425 thousand at exchange rate
approximately 4.34, etc.
Bonds sold under
repurchase

Amount

429
$ 15,685

201,653

82,805
284,458
27,680
328,252
$

Statement 1, Page 1

YEM CHIO CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 2

Statement 2
Client Name		Amount	Note
Non-related parties:
Client A	$	44,712
Client B		41,405
Client C		33,505
Client D		29,133
			None of the balance of each
			remaining amount
			is greater than 5% of
Others		414,338	this account balance
		563,093
Less: Allowance for uncollectible
accounts	(	15,832)
	$	547,261

Statement 2, Page 1

YEM CHIO CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 3

Statement 3
Packaging Material Sales Channel business: Raw materials Finished goods Less: Allowance for loss on inventory decline in market value Land Development & Construction business: Construction-in-progress Land held for building Less: Allowance for loss on inventory decline in market value Item		Cost Net Realisable Value 223,567 $ 226,066 $ Based on net realisable value 135,606 143,673 〃 359,173 369,739 10,950) ( - 348,223 369,739 4,410,099 4,410,099 Based on net realisable value 925,923 924,129 Based on net realisable value (Note) 5,336,022 5,334,228 1,794) ( - 5,334,228 5,334,228 5,682,451 $ 5,703,967 $ Amount Note
		Cost
		223,567 $ 135,606 359,173 10,950) ( 348,223 4,410,099 925,923 5,336,022 1,794) ( 5,334,228 5,682,451 $

Note: Due to the industry characteristics of the land development and construction business, the net realisable value of the construction-in-progress is difficult to determine, therefore, the net realisable value presented represents that the value of the construction-in-progress is not lower than its cost.

Statement 3, Page 1

YEM CHIO CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 4

Name	Shares (in thousands) Amount 399,905 5,780,013 $ 46,900 551,624 34,508 320,970 25,740 63,433 - - 6,716,040 $ - 142,436) ($ 47,118 215,761) ( 358,197) ($ BeginningBalance	Shares (in thousands) Amount 399,905 5,780,013 $ 46,900 551,624 34,508 320,970 25,740 63,433 - - 6,716,040 $ - 142,436) ($ 47,118 215,761) ( 358,197) ($ BeginningBalance	Addition	(Note 1)	Decrease(Note 2)	Decrease(Note 2)		EndingBalance	Total Amount Net Assets Value	Collateral
			Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Percentage of Ownership
Shown as assets ACHEM Technology Corporation Chuang-Yi Investment Co., Ltd. Wong Chio Development, Ltd. Xin Chio Co., Ltd. Yanrun Development Co., Ltd. Shown as liabilities UINN Hotel YEM CHIO	399,905 46,900 34,508 25,740 - - 47,118		- - - - 800 - -	86,852 $ 442,923 - 67,210 8,000	- 44,306 - - - -	1,345,495 $ 333,656 11,239 71,051 3,871	399,905 2,594 34,508 25,740 800 - 47,118	100.00% 100.00% 100.00% 41.76% 40.00% 100.00% 100.00%	4,521,370 $ 660,891 309,731 59,592 4,129	None None None None None None None
		6,716,040 $		604,985 $		1,765,312 $			5,555,713 $
		142,436) ($ 215,761) (		117,272 $ 10,016		- $ 638,577			25,164) ($ 844,322) (
		358,197) ($		127,288 $		638,577 $			869,486) ($

Note 1: The amount includes investment income, changes in equity of investees and increase in investments. Note 2: The amount includes investment loss, changes in equity of investees and decrease in investments.

Statement 4, Page 1

YEM CHIO CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 5

Statement 5
Creditor		Amount	Contract Period	Range of Interest Rate	Collateral
First Commercial Bank Taiwan Cooperative Bank Bank of Taiwan Yuanta Commercial Bank Co., Ltd. Taishin International Bank Jih Sun International Bank Bank of Kaohsiung Bank SinoPac Company Limited Jih Sun International Bank Bank of Kaohsiung Hua Nan Commercial Bank Mega International Commercial Bank Co., Ltd. Land Bank of Taiwan CTBC Bank Co., Ltd Taiwan Shin Kong Commercial Bank Co., Ltd. Bank of Panhsin EnTie Commercial Bank Chang Hwa Commercial Bank Taiwan Cooperative Bank		397,935 $ 375,000 300,000 300,000 250,000 230,000 221,000 200,000 185,000 150,000 147,225 102,162 100,000 100,000 94,000 80,000 50,000 50,000 40,500 3,372,822 $	Expiring within one year " " " " " " " " " " " " " " " " " "	Note " " " " " " " " " " " " " " " " " "	None Pledged Pledged None None Pledged Pledged None None None None Pledged None " " " " " "

Note: The interest rate ranged from 1.23% to 1.47%.

Statement 5, Page 1

YEM CHIO CO., LTD. STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 6

Statement 6
Creditor	Amount Contract Period 1,100,000 $ The loan shall be repaid starting from October 2020, on schedule, with the deadline of repayment in October 2025 pursuant to the agreement. 1,100,000 The loan shall be repaid starting from March 2023, on schedule, with the deadline of repayment in March 2026 pursuant to the agreement. 600,000 The loan shall be repaid starting from March 2024, on schedule, with the deadline of repayment in March 2026 pursuant to the agreement. 798,762 February 2014 to February 2029 770,000 June 2018 to May 2023 328,000 August 2016 to August 2031 275,000 November 2021 to November 2026 4,971,762 107,867) ( 2,454,850) ( 2,409,045 $	Interest Rate	Note
Syndicated loan of Land Bank of Taiwan Syndicated loan of 6 other banks consisting of Taiwan Cooperative Bank (Tranche A) Syndicated loan of 6 other banks consisting of Taiwan Cooperative Bank (Tranche B) Mega International Commercial Bank Co., Ltd. Taiwan Shin Kong Commercial Bank Co., Ltd. First Commercial Bank CTBC Bank Co., Ltd Less: Expiring within one year Less: One operating cycle		Note " " " " " "	Pledged Pledged None Pledged Pledged Pledged Pledged

Note: The interest rate ranged from 1.70% to 2.45%.

Statement 6, Page 1

YEM CHIO CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 7

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----- Start of picture text -----

Client Name Amount Note
Non-related parties:
Company A $ 54,913
Company B 22,108
Company C 10,026
None of the balance of each
remaining amount is greater
than 5% of this account balance
Others 64,479
$ 151,526
----- End of picture text -----

Statement 7, Page 1

YEM CHIO CO., LTD. STATEMENT OF SALES OF GOODS FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 8

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Item Volume Amount
Sales of goods
Adhesives 482,187 square meters $ 1,422,229
BOPP Film 60,021 tons 3,142,553
4,564,782
Less: Sales discounts and allowances ( 11,399)
4,553,383
Construction revenue 523,960
$ 5,077,343
----- End of picture text -----

Statement 8, Page 1

YEM CHIO CO., LTD. STATEMENT OF COST OF SALES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 9

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Item Amount
Cost of goods sold from manufacturing
Raw materials used
Beginning raw materials $ 170,796
Add: Raw materials purchased 3,281,860
Less: Ending raw materials ( 223,567)
Transfers to manufacturing and operating
( 40,195)
expenses
Raw materials used for the year 3,188,894
Direct labor 102,835
Manufacturing expense 618,135
Manufacturing cost 3,909,864
Beginning finished goods 160,786
Add: Purchase for the year 6,673
Less: Transfers to operating expenses ( 23,000)
Ending finished goods ( 135,606)
Others 5,466
Manufacturing and selling costs 3,924,183
Add: Loss on inventory decline in market value 866
Less: Revenue from sale of scraps ( 1,756)
( 890)
Cost of sales 3,923,293
Cost of construction sales 376,480
$ 4,299,773
----- End of picture text -----

Statement 9, Page 1

YEM CHIO CO., LTD. STATEMENT OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 10 Item Utilities Depreciation Labour and health insurance fees Indirect labour Repairs and maintenance expense Pensions Indirect materials Other manufacturing expenses	Amount 223,508 $ 195,083 15,843 50,280 36,757 5,531 43,151 47,982 618,135 $

Statement 10, Page 1

YEM CHIO CO., LTD. STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Statement 11

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Research and
Administrative development
Item Selling expenses expenses expenses Total
Wages and salaries $ 11,360 $ 63,516 $ - $ 74,876
Freight 145,349 3 - 145,352
Import/export (customs) expense 12,001 - - 12,001
Labour and health insurance fees 1,316 5,217 - 6,533
Depreciation 214 9,211 - 9,425
Amortisation - 22 - 22
Pensions 639 2,626 - 3,265
Others 53,570 41,127 2,515 97,212
$ 224,449 $ 121,722 $ 2,515 $ 348,686
----- End of picture text -----

Statement 11, Page 1

AI assistant

YC — Audit Report / Information 2021

52391_rns_2021-11-15_51d2bcca-db5a-4f3e-a26d-aebee3ae6f49.pdf

YEM CHIO CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Valuation of inventory

Description

How our audit addressed the matter

Valuation of investment property

Description

How our audit addressed the matter

Other matter –Audits by other auditors

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

Lin, Yi-Fan

[Chen, Ching Chang ]

YEM CHIO CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

YEM CHIO CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2021 AND 2020

YEM CHIO CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

YEM CHIO CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

(5) Cash equivalents

(6) Financial assets at fair value through profit or loss

(7) Financial assets at fair value through other comprehensive income

(8) Financial assets at amortised cost

(9) Accounts and notes receivable

(10) Impairment of financial assets

(11) Lease receivables / leases (lessor)

(12) Inventories

(13) Non-current assets held for sale

(14) Investments accounted for using equity method / subsidiaries and associates

(15) Property, plant and equipment

(16) Leasing arrangements (lessee) － right-of-use assets / lease liabilities

(17) Investment property

(18) Notes and accounts payable

(19) Convertible bonds payable

(20) Derecognition of financial liabilities

(21) Employee benefits

C. Termination benefits

- (22) Employee share based payment

(23) Income tax

(24) Share capital

(25) Dividends

(26) Government grants

(27) Revenue recognition

A. Sales of goods

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

(1) Critical judgements in applying the Company’s accounting policies

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

B. Investment property

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

(3) Financial assets at fair value through other comprehensive income

(4) Financial assets at amortised cost

(5) Notes and accounts receivable

(6) Inventories

A. Inventories were as follows:

(8) Property, plant and equipment

2021

－ (9) Leasing arrangements lessee

(10) Leasing arrangements - lessor

(11) Investment property

YC Audit Report / Information 2021

(16) Leasing arrangements (lessee) `－` right-of-use assets / lease liabilities

`－` (9) Leasing arrangements lessee

`－` J. Lease transactions lessee