This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

YEONG GUAN ENERGY TECHNOLOGY GROUP CO., LTD. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

Notice to Readers

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

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

Address: Cricket Square, Hutchins Drive, Po Box 2681, Grand Cayman, KY1-1111, Cayman Islands Telephone: 002-86-574-86228866

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

§ Table of Contents §

§ Table of Contents §
ITEM 1. Cover 2. Table of Contents 3. Independent Auditors’ Report 4. Consolidated Balance Sheet 5. Consolidated Income Statement 6. Consolidated Statement of Changes in Equity 7. Consolidated Statement of Cash Flows 8. Consolidated Financial Statement Notes (1) History of Company (2) Date and Process for Financial Statement Approval (3) Application of Newly Promulgated and Modified Guidelines and Explanation (4) Explanation of Summarized Significant Accounting Policy (5) Significant Accounting Judgment and Assessment and Major Source of Assumption Uncertainty (6) Significant Accounting Item Explanation (7) Related Party Transaction (8) Mortgaged or Pledged Assets (9) Significant Contingencies or Unrecognized Contractual Commitment (10) Significant Disaster Loss (11) Other Items (12) Significant Subsequent Events (13) Foreign Currency Financial Assets and Liabilities Exchange Rate Information (14) Notes Disclosures 1. Significant Transaction Related Information 2. Reinvestment Related Information 3. China Investment Information (15) Segment Information	PAGE 1 2 3~6 7 8 9 10-11 12 12 12-14 15~29 30 30~65 65~66 66~67 - - 67 - 67-68 68~69 69 69~70 70-72	FINANCIAL STATEMENT
			NOTE NO. - - - - - - - - 1 2 3 4 5 6~28 29 30 - - 31 - 32 33 33 33 34

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders

YEONG GUAN ENERGY TECHNOLOGY GROUP CO., LTD.

Opinion

We have audited the accompanying financial report of YEONG GUAN ENERGY TECHNOLOGY GROUP CO., LTD. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

matters.

Key audit matters for the Group’s consolidated financial statements for the year ended December 31, 2021 are stated as follows:

The Occurrence of Operating Revenue

With respect to the Group’s consolidated operating revenue for 2021, revenue from renewable energy products accounted for 47.51% of annual operating revenue. The revenue from major client products of renewable energy accounted for 88.96% of the annual revenue from renewable energy. Given the fact that operating revenue amount from such clients was material, recognition of operating revenue from major clients of renewable energy category was therefore listed as a key audit matter.

With respect to this key audit matter, we hereto took the Group’s occurrence of operating revenue recognition into consideration in evaluating design and execution of operating revenue related to internal control. Samples were selected from renewable energy major clients to conduct verification test on detail items for the purpose of checking transaction vouchers as well as audit process for subsequent payment collection. Meanwhile, letters were sent to such clients to verify period-end account receivable balance for the purpose of verifying that operating revenue actually occur and amount was accurate.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

generally accepted 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 consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’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 Group’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 consolidated 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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group 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.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021, 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.

Deloitte and Touche

Deloitte and Touche
CPA Chen, Chih-Yuan	CPA Huang, Yao-Ling
Financial Supervisory Commission	Financial Supervisory Commission
Executive Yuan	Executive Yuan
Approval Document No.	Approval Document No.
Gin-Guan-Zheng-Shen-Tze	Gin-Guan-Zheng-Shen-Tze
No. 1060023872	No. 106004806

March 16, 2022

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries Consolidated Balance Sheets December 31, 2021 and 2020

	Consolidated Balance Sheets December 31, 2021 and 2020
Code 1100 1110 1136 1150 1170 130X 1476 1479 11XX 1517 1600 1755 1760 1805 1840 1910 1915 1990 15XX 1XXX Code 2100 2120 2150 2170 2219 2230 2280 2321 2399 21XX 2500 2530 2540 2570 2580 25XX 2XXX 3110 3200 3310 3320 3350 3300 3410 3420 3400 31XX 36XX 3XXX	Asset CURRENT ASSETS Cash and cash equivalent(Notes 4 and 6) Financial assets at fair value through profit or loss – current(Notes 4 and 7) Financial assets measured based on amortized cost – current(Note 4 and 9) Notes receivable(Notes 4 and 22) Account receivables, net(Notes 4, 10 and 22) Inventories, net(Notes 4 and 11) Other financial assets-current(Notes 16 and 30) Other current assets(Notes 4 and 24) Total Current Assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Property, plant and equipment(Notes 4, 13 and 30) Right of Use Assets(Notes 4, 14 and 30) Investment property, net(Notes 4) Goodwill(Notes 15) Deferred income tax assets(Notes 4 and 24) Real estate prepayments Equipment prepayments Other non-current assets(Notes 4, 16 and 30) Total Non-Current Assets TOTAL ASSETS LIABILITIESandSHAREHOLDER’SEQUITY CURRENT LIABILITIES Short-term loans (Notes 17 and 30) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Notes payable Account payables Other accounts payable (Notes 19) Current income tax liabilities (Notes 4 and 24) Lease liabilities - current (Notes 4, 14 and 29) Current portion of long-term borrowings (Notes 17 and 30) Other current liabilities Total Current Liabilities NON-CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - non-current (Notes 4, 7 and 18) Bonds payable (Notes 4 and 18) Long-term borrowings (Notes 17 and 30) Deferred income tax liabilities (Notes 4 and 24) Lease liabilities - non-current (Notes 4, 14 and 29) Total Non-Current Liabilities TOTAL LIABILITIES EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Common stock capital Additional paid-in capital Retained earnings Legal reserve Special reserve Unappropriated retained earnings Total Retained Earnings Other components of Equity Exchange difference on translation of foreign financial statements Unrealized evaluation gains and losses of the equity instrument investment benefit measured at fair value through other comprehensive gains and losses Total Other Components of Equity EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Non-controlling interests TOTAL EQUITY TOTAL LIABILITIS and EQUITY		December 31,2021 Amount `％` $ 1,993,773 11 579,631 3 304,440 2 432,953 2 2,808,556 15 1,660,444 9 1,106,684 6 418,575 2 9,305,056 50 76,768 1 7,239,302 39 563,722 3 731 - 137,958 1 67,025 - 141,256 1 724,498 4 213,540 1 9,164,800 50 $ 18,469,856 100 $ 1,839,364 10 - - 1,635,644 9 786,669 4 687,750 4 67,513 - 24,031 - 390,672 2 12,202 - 5,443,845 29 24,750 - 1,473,192 8 2,504,584 14 7,966 - 180,904 1 4,191,396 23 9,635,241 52 1,106,175 6 5,980,154 32 554,684 3 1,394,590 8 1,023,039 5 2,972,313 16 1,353,964 ) ( 7) 4,592 - 1,349,372) ( 7 ) 8,709,270 47 125,345 1 8,834,615 48 $ 18,469,856 100			Unit: in thousands of NTD December 31,2020
			Amount $ 1,993,773 579,631 304,440 432,953 2,808,556 1,660,444 1,106,684 418,575 9,305,056 76,768 7,239,302 563,722 731 137,958 67,025 141,256 724,498 213,540 9,164,800 $ 18,469,856 $ 1,839,364 - 1,635,644 786,669 687,750 67,513 24,031 390,672 12,202 5,443,845 24,750 1,473,192 2,504,584 7,966 180,904 4,191,396 9,635,241 1,106,175 5,980,154 554,684 1,394,590 1,023,039 2,972,313 1,353,964 ) 4,592 1,349,372) 8,709,270 125,345 8,834,615 $ 18,469,856				Amount $ 2,682,852 509,346 252,900 226,445 3,290,489 1,324,434 862,010 265,305 9,413,781 - 5,755,961 608,628 737 137,522 110,659 - 311,673 55,425 6,980,605 $ 16,394,386 $ 1,178,458 363 847,435 798,946 741,378 11,887 35,122 - 6,176 3,619,765 10,350 1,465,987 2,319,627 9,540 205,175 4,010,679 7,630,444 1,106,175 5,980,154 503,370 1,404,195 1,008,154 2,915,719 1,394,590 ) - 1,394,590) 8,607,458 156,484 8,763,942 $ 16,394,386	`％`
		( (		( (	11 3 2 2 15 9 6 2 50 1 39 3 - 1 - 1 4 1 50 100 10 - 9 4 4 - - 2 - 29 - 8 14 - 1 23 52 6 32 3 8 5 16 7) - 7 ) 47 1 48 100	( (		16 3 2 1 20 8 5 2 57 - 35 4 - 1 1 - 2 - 43 100 7 - 5 5 5 - - - - 22 - 9 14 - 2 25 47 7 36 3 9 6 18 ( 9 ) - ( 9) 52 1 53 100

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

Chairman: Chang, Hsien-Ming

General Manager: Chang, Hsien-Ming

Chief Accountant: Tsai,Ching-Wu

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

Consolidated Income Statement

For periods from January 1 to December 31 of 2021 and 2020

Code 4000 OPERATING REVENUE (Notes 4 and 22) 5000 OPERATING COSTS (Notes 4, 11 and 23) 5900 GROSS PROFIT OPERATING EXPENSES (Notes 10 and 23) 6100 Marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit loss 6000 Total operating expenses 6900 PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES 7100 Interest income (Notes 23) 7190 Other income (Notes 18, 23 and 29) 7235 Financial product net (loss) profit at fair value through profit and loss (Notes 7 and 18) 7630 Foreign currency exchange net profit (Notes 23 and 32) 7510 Finance costs (Notes 18, 23 and 29) 7000 Total non-operating income and expenses 7900 PROFIT BEFORE INCOME TAX 7950 INCOME TAX EXPENSE (Notes 4 and 24) 8200 NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME(LOSS) 8310 Items that will not be reclassified subsequently to profit or loss: 8316 Unrealized gain on financial assets at fair value through other comprehensive income 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences arising on translation of foreign operations 8300 Total other comprehensive income (net of income tax) 8500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT(LOSS) ATTRIBUTABLE TO: 8610 Shareholders of the parent 8620 Non-controlling interests 8600 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: 8710 Shareholders of the parent 8720 Non-controlling interests 8700 EARNINGS PER SHARE (Note 25) 9750 Basic 9850 Diluted			2021	Unit: in thousands of NTD, Except Earnings Per Share 2020 `％` Amount `％` 100 $ 8,184,273 100 80 6,394,486 78 20 1,789,787 22 6 434,277 5 7 525,172 7 4 275,826 4 - 9,812 - 17 1,245,087 16 3 544,700 6 1 48,462 1 - 29,039 - - 14,731 - - 80,315 1 (1) ( 93,509) (1) - 79,038 1 3 623,738 7 1 107,208 1 2 516,530 6 - - - 1 1,058 - 1 1,058 - 3 $ 517,588 6 2 $ 513,143 6 - 3,387 - 2 $ 516,530 6 3 $ 522,069 6 - ( 4,481) - 3 $ 517,588 6 $ 4.81 $ 4.80


		( (

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

Chairman: Chang, Hsien-Ming General Manager: Chang, Hsien-Ming

Chief Accountant: Tsai,Ching-Wu

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries Consolidated Statement of Changes in Equity For periods from January 1 to December 31 of 2021 and 2020

Unit: in thousands of NTD

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 8 and 21)

CommonStock				Capital Surplus				Retained Earnings	Retained Earnings				Other Equity		Non- Controlling Interests (Notes 21 and 26) $ 160,965 - - - - 3,387 ( 7,868) ( 4,481) - - - $ 156,484 - - - - ( 2,129 ) (12,905) ( 15,034) - ( 16,105) $ 125,345
												Exchange Differences on Translation of Foreign Operations ($1,403,516) - - - - - 8,926 8,926 - - - ($ 1,394,590) - - - - - 40,626 40,626 - - ($ 1,353,964)	Unrealized Valuation Gain on Financial Assets at Fair Value Through Other Comprehensive Income $ - - - - - - - - - - - $ - - - - - - 11,010 11,010 ( 6,418) - $ 4,592
	Additional Paid-In Capital $5,375,511 - - - - - - - 346,997 - $ 5,722,508 - - - - - - - - - $ 5,722,508		Stock Option	Invalid Stock Option $ 148,490 - - - - - - - - 385 $ 148,875 - - - - - - - - - $ 148,875	Treasury Stock Transaction $ 28,673 - - - - - - - - - $ 28,673 - - - - - - - - - $ 28,673	Legal Reserve $ 487,072 16,298 - - 16,298 - - - - - - $ 503,370 51,314 - - 51,314 - - - - - $ 554,684		Special Reserve $ 1,024,331 - ( 379,864 ( - ( 379,864 ( - - - - - - $ 1,404,195 - ( 9,605 ) ( - ( 9,605) ( - - - - - $ 1,394,590	Retained Earnings $ 943,981 16,298 ) 379,864 ) 52,808) 448,970) 513,143 - 513,143 - - - $ 1,008,154 51,314 ) 9,605 165,926) 207,635) 216,102 - 216,102 6,418 - $ 1,023,039		Total
$1,056,175 - - - - - - - 50,000 - - $ 1,106,175 - - - - - - - - - $ 1,106,175		(	$ 385 - - - - - - - - 80,098 385) $ 80,098 - - - - - - - - - $ 80,098				( (			( ( ( (	$ 2,455,384 - - 52,808) 52,808) 513,143 - 513,143 - - - $ 2,915,719 - - 165,926) 165,926) 216,102 - 216,102 6,418 - $ 2,972,313		(	( ( ( (	( ( ( (	( ( ( ( (

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

Chairman: Chang, Hsien-Ming General Manager: Chang, Hsien-Ming Chief Accountant: Tsai,Ching-Wu

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows

For periods from January 1 to December 31 of 2021 and 2020

Unit: in thousands of NTD

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Income before income tax A20010 Adjustments for: A20100 Depreciation expense A20200 Amortization expense A20300 Expected credit loss recognized A20400 Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A22500 Loss on disposal of property, plant and equipment A23800 Recognition (reversal) of write-down of inventories A24100 Net gain on foreign currency exchange A24200 Loss on disposal of subsidiaries A29900 Amortization of prepaid lease payment A30000 Net change on operating assets and liabilities A31130 Notes receivable A31150 Account receivables A31200 Inventories A31240 Other current assets A32110 Financial instrument at fair value through profit and loss A32130 Notes payable A32150 Account payables A32180 Other payables A32230 Other current liabilities A32990 Other financial assets A33000 Operating net cash inflows A33300 Interest paid A33500 Income tax paid AAAA Net cash generated from operating activities		2021 $ 320,620 530,454 6,176 6,453 14,400 67,939 56,312 ) 27,305 7,518 8,311 ) 6,516 249) 203,776 ) 492,200 331,366 ) 161,409 ) 2,314 777,918 18,640 ) 45,588 ) 5,950 369,978) 1,070,134 65,905 ) 8,669) 995,560		2020
	( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( (	$ 623,738 533,638 4,889 9,812 2,459 93,509 48,462 ) 11,111 61,753 ) 27,693 ) - 161 ) 27,130 ) 542,567 ) 32,355 ) 7,746 4,955 574,792 74,586 178,858 5,032 ) 599,260) 775,680 96,471 ) 81,436) 597,773

(to be continued)

10 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(brought forward)

(brought forward)
Code CASH FLOWS FROM INVESTING ACTIVITIES B00010 Purchase of financial assets at fair value through other comprehensive income B00020 Proceeds from sale of financial assets at fair value through other comprehensive income B00040 Purchase of financial assets at amortized cost B00050 Proceeds from disposal of financial assets at amortized cost B00100 Purchase of financial asset at fair value through profit or loss B00200 Proceeds from disposal of financial asset at fair value through profit or loss B02300 Cash outflow generated from disposal of subsidiaries B02700 Purchase of property, plant and equipment B02800 Disposal of property, plant and equipment B04500 Payment for intangible assets B06700 (Increase) decrease in other non-current assets B07100 Increase in equipment prepayments B07300 Increase in real estate prepayments B07500 Interests collected BBBB Net cash generated used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES C00100 Increase (decrease) in short term loan C01200 Issuance of bond C01300 Repayment of bond C01600 Proceeds from long term loan C01700 Repayment of long term loan C04020 Payments of lease liabilities C04500 Dividends paid to owners of the Company C04600 Issuance of common stocks CCCC Net cash generated from financing activities DDDD EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES EEEE NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS E00100 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR E00200 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		2021 $ 76,476 ) 10,718 331,136 ) 281,863 618,413 ) 547,182 30,836 ) 1,975,201 ) 3,620 2,995 ) 3,623 ) 477,316 ) 141,256 ) 56,118 ( 2,757,751) 652,009 - - 588,227 - 41,274 ) 165,926 ) - 1,033,036 40,076 689,079 ) 2,682,852 $ 1,993,773		2020
	( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( (	$ - - 9,176 ) 117,783 670,513 ) 400,405 - 503,599 ) 6,288 4,556 ) 45,193 328,827 ) - 48,330 ( 898,672) 305,085 ) 1,549,294 6,562 ) - 28,084 ) 31,910 ) 52,808 ) 396,997 1,521,842 11,226 1,232,169 1,450,683 $ 2,682,852

The accompanying notes are an integral part of

the consolidated financial statement.

Chairman: Chang, Hsien-Ming General Manager: Chang, Hsien-Ming Chief Accountant: Tsai, Ching-Wu

11 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

for periods from January 1 to December 31 of 2021 and 2020

(Unless otherwise specified, all amounts are in thousands of NTD.)

1. GENERAL

Yeong Guan Energy Technology Group Co., Ltd. (hereinafter referred to as the “Company”) was established on January 22, 2008 in British Cayman Islands under the main purpose of organization restructuring. According to the Company’s equity swap agreement, organization restructuring was completed on September 22, 2008. The Company has become an investment holding company after the restructuring.

The Company’s stocks were listed and traded in Taiwan Stock Exchange starting April 27, 2012.

Consolidated financial statements hereto are presented in the Company’s functional currency of NTD.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Board of Directors on March 16, 2022.

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

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

The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on the Group’s accounting policies.

B. The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2022
12 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

New IFRSs `“`Annual Improvements to IFRS Standards 2018–2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment – Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts–Cost of Fulfilling a Contract”	Effective Date Announced by IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1: The amendments to IFRS 9 are applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

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

13 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

C. New IFRSs in issue but not yet endorsed and issued int o effect by the FSC

FSC
New IFRSs 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 IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17— Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Noncurrent” 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”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

FSC

New IFRSs
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

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IFRS 17 “Initial Application of IFRS 9 and
IFRS 17— Comparative Information”

Amendments to IAS 1 “Classification of Liabilities as
Current or Noncurrent”

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”

Effective Date
Announced by IASB
(Note 1)

To be determined by
IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

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

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRSs as endorsed and issued into effect by the FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

  1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

  2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

  3. Level 3 inputs are unobservable inputs for the asset or liability.

(2) Classification of Current and Non-current Assets and Liabilities
- Current assets include:
- Assets held primarily for the purpose of trading;
Assets expected to be realized within twelve months after the reporting period; and
1. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Current liabilities include:
1. Liabilities held primarily for the purpose of trading;
2. Liabilities due to be settled within twelve months after the reporting period; and 3. Liabilities for which the Group does not have an unconditional right to defer settlement for at least twelve months after the reporting period.
Assets and liabilities that are not classified as current are classified as non-current.
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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(4) Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition up to the effective date of disposal, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

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

See Note 12, Table 8 and Table 9 for the detailed information of subsidiaries (including the percentage of ownership and main business).

(5) Foreign Currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (including of the subsidiaries, associates, joint ventures or branches operations in other countries or currencies used different with the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income.

(6) Inventories

Inventories consist of raw materials, supplies, finished goods and work-in-process and are stated at the lower of cost or net realizable value. Inventory write-downs are made item by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weightedaverage.

(7) Property, Plant and Equipment

Property, plant and equipment are stated at cost, less subsequent accumulated depreciation and subsequent accumulated impairment loss.

Properties in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Depreciation is recognized using the straight-line method. Each part of a property, plant and equipment item that is significant to the total cost of the item is depreciated separately. The estimated useful lives, residual values and depreciation method are audited at the end of each reporting period, with any changes in estimates accounted for prospectively.

Any gain or loss on the disposal or retirement of a property, plant and equipment item is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

(8) Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties include right-of-use assets and properties under construction that meet the definition of investment properties. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

(9) Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss. For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication of unit impairment, by

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

comparing its carrying amount, including the attributable goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit should be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal, and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

(10) Intangible Assets

1. Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss.

Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2. Derecognition of intangible assets

Gains or losses arising from the derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(11) Impairment of property, plant and equipment, right-of-use-asset, investment properties, intangible assets and assets related to contract costs

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

(12) Financial Instruments

Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

1. Financial Assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

(1) Measurement category

Types of financial assets held by the consolidated company are financial assets at fair value through profit or loss and financial assets measured at amortized costs.

A. Financial asset at FVTPL

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 28.

B. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

a. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, note receivables at amortized cost, trade receivables and other receivables, are measured at

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amortized cost, which equals to gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for:

a. Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the creditadjusted effective interest rate to the amortized cost of the financial asset; and
b. Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

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

C. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

(2) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

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

(3) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

2. Equity Instruments

Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

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

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

Financial Liabilities
(1) Subsequent Measurement

Except the following situations, all financial liabilities are measured at amortized cost using the effective interest method: Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL.

Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.

Fair value is determined in the manner described in Note 26.

(2) Derecognition of financial liabilities

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

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

4. Convertible bonds

The component parts of compound instruments (i.e., mandatory convertible bonds and convertible bonds) issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus - share

premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premiums.

Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component, and amortize by using

the effective method in subsequent periods.

(13) Revenue Recognition

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

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Revenue from sale of goods

Revenue from sale of goods comes from sales of various high end casting products. With respect to high end casting product delivery patterns such as shipping origin and destination, clients are already entitled to the rights of setting prices and utilization, and clients also assume risks of products being obsolete. Accordingly, the Group recognized revenue and account receivables at that specific point of time.

During subcontract processing, control of ownership for processed products is not transferred. Therefore, subcontract processing is not recognized as income.

(14) Leasing

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before

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the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-ofuse assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

(15) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Other than stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(16) Government Grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.

(17) Retirement Benefit Costs
Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

(18) Taxation

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

Current Tax

According to the Income Tax Law, an additional tax at 10% of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

2. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, unused loss carry forward and unused tax credits for purchases of machinery, equipment and technology, research and development expenditures, and personnel training expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are audited on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

6. Cash and Cash Equivalents

Cash On Hand Checking Accounts and Demand Deposit Cash Equivalents Time Deposits with Original Maturities within 3 months	December 31, 2021 $ 1,453 1,390,888 601,432 $ 1,993,773	December 31, 2020	December 31, 2020
			$ 1,288 2,014,297 667,267 $2,682,852

The market rate intervals of cash in bank and bank overdrafts at the end of the reporting period were as follows:

7.	Bank Deposit Financial Instruments at Fair Value	December 31,2021 0.0001%~3.85% through Profit or Loss	December 31,2020
			0.0001%~3.79%

Financial assets at FVTPL-current Financial assets mandatorily classified as at FVTPL	December 31, 2021	December 31, 2020

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Derivative financial assets (not under hedge accounting) －Foreign exchange forward contracts Non-derivative financial assets －Financial product Financial liabilities at FVTPL-current Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) `－`Foreign exchange forward contracts Financial liabilities at FVTPL-non-current Derivative financial assets (not under hedge accounting) `－`Domestic Third Convertible Bond (Note18)	December 31, 2021 $ - 579,631 $ 579,631 $ - $ 24,750	December 31, 2020	December 31, 2020
			$ 2,677 506,669 $ 509,346 $ 363 $ 10,350

At the end of the reporting period, outstanding interest rate swap contracts not under hedge accounting were as follows:

December 31, 2020

December 31, 2020
Sell Sell	Currency USD/RMB EUR/RMB	MaturityDate 2021.01.07-2021.02.24 2021.03.10	Contract Amount (in thousands)
			USD 15,500/RMB 101,801 EUR 3,800/RMB 30,295

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

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8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE

INCOME Non-current Unlisted shares		December 31	December 31
		2021 $ 76,768	2020 $ -

The Company invested in Formosa 4 International Investment Co., Ltd., Formosa 5 International Investment Co., Ltd., and KOP Investment Limited Company common stocks and expect to make profits from long-term investments. The management of the Company considered that the inclusion of short-term fluctuations in the fair value of these investments in profit and loss is inconsistent with the long-term investment plan described above, and therefore chose to designate these investments as being measured at fair value through other comprehensive income.

In September 2021, the Company adjusted its investment position and sold the common stock of Taiwan Huanfeng Holding Co., Ltd. at the fair value of 10,718 thousand, and transferred the unrealized gain of financial assets measured at the fair value of 6,418 thousand through other comprehensive income into retained earnings.

9. Financial Assets Measured at Amortized Cost

Current Time deposits with original maturity of more than 3 months	December 31,2021 $ 304,440	December 31,2020	December 31,2020
			$ 252,900

The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 0.5%-0.8% and 0.85%-1.4% per annum as of December 31, 2021 and 2020, respectively.

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10. Account Receivables

Account Receivables
Account Receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss	December 31,2021 $2,841,314 ( 32,758) $ 2,808,556	December 31,2020
	(	(	$3,316,657 26,168) $ 3,290,489

At amortized cost

The average credit period of sales of goods was 90 days. No interest was charged on trade receivables. Credit rating information is obtained from independent rating agencies where available or, if not available, the Group uses other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

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

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December 31, 2021

									Default
					Default		Default		Exceeding
		Non-Default		1`～`90 Days		91`～`180 Days			181Days		Total
Expected credit loss
rate			0.04%		0.34%		9.56%		100%		-
Gross carrying
amount		$	2,615,441	$	184,818	$	11,053	$	30,002	$	2,841,314
Loss allowance
(Lifetime ECL)	(		1,070)	(	630)	(	1,056)	(	30,002)	(	32,758)
Amortized Costs		$	2,614,371	$	184,188	$	9,997	$	-	$	2,808,556
December 31, 2020
									Default
					Default		Default		Exceeding
		Non-Default		1`～`90 Days		91`～`180 Days			181Days		Total
Expected credit loss
rate			0.01%		4.79%		-		100%		-
Gross carrying
amount		$	3,208,305	$	86,648	$	-	$	21,704	$	3,316,657
Loss allowance
(Lifetime ECL)	(		314)	(	4,150)		-	(	21,704)	(	26,168)
Amortized Costs		$	3,207,991	$	82,498	$	-	$	-	$	3,290,489
The movements of the loss allowance of account receivables were as follows:
							2021				2020
Balance at January 1							$ 26,168				$ 17,004
Add: Net remeasurement of loss allowance								6,453			9,812
Less: Impairment	losses reversed								-	(	757 )
Foreign exchange gains and losses								137			109
Balance at December 31							$ 32,758				$ 26,168

11. Inventories

Finished goods Work in progress Raw materials	December 31, 2021 $ 574,884 614,606 470,954 $ 1,660,444		December 31, 2020
			$ 332,345 551,441 440,648 $ 1,324,434

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $7,178,390 thousand and $6,394,486 thousand, respectively. For

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

the year ended December 31, 2021 and 2020, the cost of goods sold included inventory write-downs of $7,518 thousand and inventory recovery benefits $61,7535 thousand, respectively.

12. Subsidiaries

Subsidiaries included in this consolidated financial statement

Investor Investee Yeong Guan Energy Technology Group Co., Ltd.(Company) Yeong Guan Holding Co., Ltd. (YGV) Yeong Guan Heavy Industry (Thailand) Co., Ltd. (YGZ) YGV Yeong Guan International Co., Ltd. (YGI) Shin Shang Trade Co., Ltd. (YGX) Yeong Chen Asia Pacific Co., Ltd. (YGA) YGI Ningbo Yeong Shang Casting Iron Co., Ltd. ( YGS) Ningbo Lu Lin Machine Tool Foundry Co., Ltd. (YGL) Dongguan Yeong Guan Mould Factory Co., Ltd. (YGD) Jiangsu Bright Steel Fine Machinery Co., Ltd. (YGB) Ningbo Yeong Chia Mei Trade Co., Ltd. (YGM) Shanghai No. 1 Machine Tool Foundry (Su zhou) Co., Ltd.(YGW) YGS Jiangsu Bright Steel Fine Machinery Co., Ltd. (YGB) YGD Shanghai No. 1 Machine Tool Foundry (Su zhou) Co., Ltd. (YGW) Qing Dao Rui Yao Building Material Co., Ltd.(YGQ) YGL Qing Dao Rui Yao Building Material Co., Ltd.(YGQ)	Nature of Business	Shareholding percentage	Shareholding percentage
		2021 December 31	2020 December 31 100 75 100 100 100 100 100 100 80 100 30.74 20 58.06 25 25
	Investment 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 75 Investment 100 Transaction of various steel castings and casting molds as well as related import/export businesses - Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 80 Transaction of various steel castings and casting molds as well as related import/export businesses 100 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 37.04 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 20 Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron 58.06 Manufacturing and selling of Decorative Material, processing and selling of stones material - Manufacturing and selling of Decorative Material, processing and selling of stones material -

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Note 1: The financial reports for 2021 and 2020 have been verified by CPA.

Note 2: The Company decided the subsidiary Yeong Guan Holding Co., Ltd. (surviving company) absorbed and merged Shin Shang Trade Co., Ltd. (eliminated company) on March 31, 2021.

Note 3: The Company signed an agreement to dissolve its subsidiary Qing Dao Rui Yao Building Material Co., Ltd. on January 14, 2021 and obtained the cancellation approval from the local government on March 25, 2021. The disposal was completed on March 30, 2021, please refer to Note 26.

13. Property, Plant and Equipment

Assets used by the Group

Ow	ned Land	Building	Building	Machine Equipment	Machine Equipment	Transportation Equipment	Transportation Equipment	Other Equipment	Other Equipment	Work-in- Progress Property $1,281,778 1,915,628 - 12,290 ( 576,700 ) 2,066 $2,635,062 $ - - - - - $ - $2,635,062		Total
$	$ 621,653 - - - - (49,259) 572,394 $ - - - - - - 572,394	( (	$3,263,930 11,930 15,154 ) - 368,032 28,240 $3,656,978 $1,493,353 15,154 ) 162,528 - 13,119 $1,653,846 $2,003,132	( ( (	$4,696,353 14,799 72,668 ) - 237,563 38,252 $4,914,299 $2,762,244 43,928 ) 272,730 89 ) 22,974 $3,013,931 $1,900,368	( (	$ 60,980 5,404 2,027 ) - 2,868 439 $ 67,664 $ 43,688 1,825 ) 4,606 - 317 $ 46,786 $ 20,878	( (	$ 590,721 10,628 17,591 ) - 9,845 4,726 $ 598,329 $ 460,169 15,608 ) 42,484 - 3,816 $ 490,861 $ 107,468	(	( ( (	$ 10,515,415 1,958,389 107,440 ) 12,290 41,608 24,464 $ 12,444,726
$												$ 4,759,454 76,515 ) 482,348 89 ) 40,226
												$ 5,205,424
$												$ 7,239,302

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Cost Balance at January 1, 2020 Additions Disposals Reclassification Effect of foreign currency exchange differences Balance at December 31, 2020 Accumulated Depreciation and Impairment Balance at January 1, 2020 Disposals Depreciation Expense Reclassification Effect of foreign currency exchange differences Balance at December 31, 2020 Carrying amount at December 31, 2020		Self-Owned Land	Buildings $ 3,161,802 26,285 ( 7,538 ) 75,425 7,956 $ 3,263,930 $ 1,336,352 ( 5,575 ) 157,894 18 4,664 $ 1,493,353 $ 1,770,577	Machine Equipment $ 4,522,739 69,946 ( 47,841 ) 140,679 10,830 $ 4,696,353 $ 2,532,578 ( 44,408 ) 275,571 ( 9,086 ) 7,589 $ 2,762,244 $ 1,934,109	Transportation Equipment $ 61,892 4,828 ( 5,918 ) 76 102 $ 60,980 $ 42,134 ( 2,665 ) 4,175 ( 42 ) 86 $ 43,688 $ 17,292	Other Equipment $ 598,197 18,784 ( 30,597 ) 3,177 1,160 $ 590,721 $ 430,208 ( 21,882 ) 50,606 62 1,175 $ 460,169 $ 130,552	Work-in- Progress Property $ 1,078,832 370,446 ( 35 ) ( 168,549 ) 1,084 $ 1,281,778 $ - - - - - $ - $ 1,281,778	Total
		$ 652,343 - - - ( 30,690) $ 621,653 $ - - - - - $ - $ 621,653						$10,075,805 490,289 ( 91,929 ) 50,808 ( 9,558) $10,515,415 $ 4,341,272 ( 74,530 ) 488,246 ( 9,048 ) 13,514 $ 4,759,454 $ 5,755,961

The above items of property, plant and equipment were depreciated on a straight-line basis over the estimated useful life of the asset:

he estimated useful life of the asset:
Building	5 to 20 years
Machine Equipment	3 to 10 years
Transportation Equipment	5 to 20 years
Other Equipment	3 to 10 years

Major components for the Group’s building include factory main building and power generating equipment. Depreciation for them is recognized based on service life of 20 years and 5 years respectively.

Refer to Note 30 for the carrying amount of property, plant and equipment pledged by the Group to secure bank loans.

14. Lease Arrangements

(1) Right-of-Use Assets

Right-of-Use Assets
Carrying amount Land Building Machine Equipment Transportation Equipment	December 31, 2021 $543,815 15,527 617 3,763 $563,722	December 31, 2020
			$ 563,202 25,859 1,661 17,906 $ 608,628

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Refer to Note 30 for the carrying amount of right-of-use assets pledged by the Group to secure bank loans.

Group to secure bank loans.
Additions to right-of-use assets Depreciation of right-of-use assets Land Buildings Machine Equipment Transportation Equipment			2021 $ - $ 22,276 10,424 1,053 14,347 $ 48,100		2020
					$ 34,117 $ 22,127 8,672 433 14,154 $ 45,386

(2) Lease Liabilities

Lease Liabilities
Carry amount Current Noncurrent	December 31, 2021 December 31, 2020
		$ 24,031 $180,904	$ 35,122 $ 205,175

Range of discount rate for lease liabilities was as follows:

Land Buildings Machine Equipment Transportation Equipment	December 31, 2021 December 31, 2020
	2%~2.1% 2%~2.1% 1.92%~4.37% 1.92%~4.61% 4.35% 4.35% 4.61% 4.61%~4.66%

(3) Material leasing activities and terms

To meet with demands from related businesses of wind-power turbine industry, the Group leased roughly 4.9 hectares of land in Taichung Port Industrial Zone from Port of Taichung, Taiwan International Ports Corporation Limited, with a lease term of 20 years. The Group itself invests in the conducting of planning, design and construction of related facilities. Ownership of such facilities belong to the Group. However, establishment of superficies is not permitted and transfer of such facilities shall obtain consent from the Port of Taichung, Taiwan International Ports Corporation Limited. Without consent from the Port of Taichung, Taiwan International Ports Corporation Limited, the Group shall not request to withdraw from the lease prior to expiration under any reasons. In the event that the Group intends to continue the lease

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

upon expiration of lease term, the Group shall apply for renewal of the lease, in writing, from the Port of Taichung, Taiwan International Ports Corporation Limited 6 months prior to expiration of the lease. In the event that the Port of Taichung, Taiwan International Ports Corporation Limited still intends to lease the land, renewal terms shall therefore be negotiated by both parties and shall be under the premises of nonviolation of laws and regulations at the time of renewal.

(4) Other Lease Information

Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	2021 $14,847 $ 754 $14,182 ($76,394)		2020
		(	$ 13,782 $ 787 $ - $ 52,488)

The Group selects buildings, which meet with short-term lease, and certain office equipment leases, which meet with low-value asset lease, for application of recognition exemption. Related right -of-use asset or lease liabilities will not be recognized upon such leases.

15. Goodwill

dwill
Cost Balance at January 1 Effect of foreign currency exchange differences Balance at December 31		2021 $ 137,522 436 $ 137,958		2020
				$ 137,409 113 $ 137,522

The recoverable amount was determined based on a value in use calculation that used the cash flow projections in the financial budgets approved by management covering a 5-year period; the discount rate was 5.66% to 9.05%. The cash flows beyond that 5-year period have been extrapolated using a 0% per annum growth rate. Other key assumptions included budgeted revenue and budgeted gross margin. Such assumptions were based on the past performance of the cash-generating unit and management’s expectations of market development.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

16. Other Financial Assets

Current(Note 30) Pledged bank acceptance Bank acceptance deposits Restricted time deposits Quality guarantee deposits Others Non-current(Note 30) Quality guarantee deposits(under other non-current assets) Restricted time deposits(under other non-current assets)	December 31, 2021 $ 867,202 128,532 46,735 64,215 - $1,106,684 December 31, 2021 $ 40,133 130,010 $ 170,143	December 31, 2020	December 31, 2020
		$ 496,707 318,387 46,652 253 11 $ 862,010 December 31, 2020
			$ 35,933 - $ 35,933

17. Loans

(1) Short Term Loans

Short Term Loans
Secured Loans(Note 30) Bank Loans Unsecured Loans Line of Credit Loans	December 31, 2021 $ 483,000 1,356,364 $ 1,839,364	December 31, 2020
			$ 855,878 322,580 $ 1,178,458

The range of weighted average effective interest rate on credit borrowings was 0.7%4% and 0.7%-4.25% per annum as of December 31, 2021 and 2020, respectively .

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(2) Long Term Loans

Long Term Loans
Secured Loans(Note 30) Bank Loans Unsecured Loans Syndicated loan Minus: Syndicated loan fee Minus: Current portion	December 31, 2021 $ 649,941 2,246,365 ( 1,050 ) ( 390,672) 1,854,643 $ 2,504,584	December 31, 2020
		(

As of December 31, 2021 and 2020, the range of weighted average effective interest rates of the bank borrowings was 1.119%-1.797% and 1.16%-1.23% per annum, respectively.

On May 4, 2018, the Group entered a syndicated loan agreement of credit extension total amount of NT$4.2 billion with ten financial institutes including the Land Bank of Taiwan. Specifically, (1) A-1 credit extension: It is for the borrower Yeong Guan Energy Technology Group Company Limited to repay its domestic 2nd unsecured convertible bond. Credit line is USD85 million dollars. Multiple drawdowns are available. However, revolving credit is not allowed. (2) A-2 Credit Extension: It is for the borrower Yeong Guan Energy Technology Group Company Limited to strengthen mid-term operation capital. Credit line is USD53 million dollars. Revolving credit is available. (3) B-1 Credit Extension: It is for the borrower Yeong Guan Holdings Co., Limited Taiwan Branch to strengthen mid-term operation capital. Credit line is NT$1 billion dollars or foreign currency with equivalent value (limited to USD, Euro Dollar). Multiple drawdowns are available. However, revolving credit is not allowed. (4)B-2 Credit Extension: It is for the borrower Yeong Guan Holdings Co., Limited Taiwan Branch to strengthen mid-term operation capital. Credit line is NT$2.7 billion dollars or foreign currency with equivalent value (limited to USD, Euro dollar). Revolving credit is available. (5) C Credit Extension: It is for borrower Yeong Cheng Asia Pacific Co., Ltd. to strengthen mid-term operation capital. Credit line is NT$1.5 billion dollars or foreign currency with equivalent value (limited to USD, Euro Dollar). Revolving

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

credit is available. The credit period shall be from the date of first use to the date of expiration of 5 years. The borrower shall fully pay off all debts under this credit.

18. Corporate Bond Payable

porate Bond Payable
Third Domestic Unsecured Convertible Bonds	December 31, 2021 $1,473,192	December 31, 2020
			$1,465,987

(1) As of August 18, 2020, the second domestic unsecured convertible corporate bonds have been completely redeemed. Capital surplus – stock option for convertible corporate bond has been transferred to capital surplus – expired stock option of NT$385 thousand.
(2) On September 3, 2021, the Company issued 15,000 units NTD denominated un-secured convertible corporate bond with 0% coupon rate and total principal amount of NT$1.5 billion.

Each unit corporate bond holder is entitled to convert the bond into the Company’s common shares under the price of NT$100/share. After determination of conversion price, adjustments shall be made in accordance with conversion price adjustment formula in the event of ex-right or ex-dividend. As of Dec. 31, 2021, conversion price has been adjusted to NT$97.4 and conversion period starts from December 4, 2020 to September 3, 2025. In the event of unconverted corporate bond upon expiration of aforementioned period, onetime cash repayment of bond face value plus interest compensation will be made on September 3, 2025. In the event that conditions are met, the Company shall be entitled to request to redeem this convertible corporate bond from creditors based on agreed prices.

During the period which starts from the next day after 3 months of issuance and until 40 days before expiration of the issuance, in the event the Company’s common share closing prices in Taiwan Stock Exchange exceed this bond’s conversion price at that time over 30% (included) for 30 consecutive business days, the Company will be entitled to send out a 30-day-expiration “Bond Redemption Notice” within subsequent 30 business days, and redeem all bonds in cash calculated based on face value upon expiration of aforementioned period. During the period which starts from the next day after 3 months of issuance and until 40 days before expiration of the issuance, in the event that this bond’s outstanding balance is lower than 10% of original total issue

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

amount, the Company will therefore be entitled to send out a 30-day-expiration “Bond Redemption Notice” based on names recorded on bondholder’s name list at any time thereafter, and redeem outstanding bond in cash calculated based on face value upon expiration of aforementioned period.

Respective expiration dates of 3-year periods after issuance are pre-mature sell back record dates for bondholders of this bond. Bondholders are entitled to send out notice in writing to the Company’s share agent within 40 days prior to aforementioned sell back record dates requesting the Company to redeem bond held by them in cash and in 101.51% of face value.

This convertible corporate bond includes liability and equity components. Equity components are presented as Additional Paid-In Capital - Share Subscription Right under equities. Liability components, on the other hand, are cognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instrument have been assessed at fair value of NT$24,750 and NT$10,350 thousand (included in financial liabilities - noncurrent which are measured through profit/loss based on fair value) on December 31, 2021 and December 31, 2020 respectively; non-derivative product liability have been measured on December 31, 2021 and December 31, 2020 are NT$1,473,192 thousand NT$1,465,987 thousand (included in corporate bond payable which is due, or whose put option will be exercised, in one year) based on amortized cost and its effective interest rate originally recognized is 0.4923%.

Issuance Proceeds (less transaction cost of NT$4,094 thousand) Equity Components ( Net Liability Components on Issue Day (including NT$1,463,619 thousand of corporate bond payable and NT$5,577 thousand of financial assets at fair value – noncurrent) Interest Calculated in Effective Interest Rate Loss on Valuation of Financial Instrument Net Liability Components on December 31, 2021	$ 1,549,294 80,098) 1,469,196 9,573 19,173 $ 1,497,942

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

All of the third unsecured convertible corporate bonds have not yet been converted as of December 31, 2021.

19. Other Payables

Salary Payable Payables on Equipment Freight Payable Processing Fee Payable Tax Payable Utilities Payable Interest Payable Others	December 31,2021 $ 304,314 73,534 39,995 54,670 35,317 35,023 4,581 140,316 $ 687,750	December 31,2020	December 31,2020
			$ 258,478 89,696 61,066 89,278 27,756 39,512 2,769 172,823 $ 741,378

20. Retirement Benefit Plans

Yeong Chen Asia Pacific Co., Ltd. and Yeong Guan Holdings Co., Limited Taiwan branch adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The employees of the Group’s subsidiary in China are members of a state-managed retirement benefit plan operated by the government of China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

21. Equity

(1) Share Capital

Number of Shares Authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	December 31, 2021 300,000 $ 3,000,000 $ 110,618 $ 1,106,175	December 31, 2020 300,000 $ 3,000,000 $ 110,618 $ 1,106,175	December 31, 2020 300,000 $ 3,000,000 $ 110,618 $ 1,106,175
			300,000 $ 3,000,000 $ 110,618 $ 1,106,175

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

On May 6, 2020, the Company’s board of directors resolved to issue 5,000 thousand ordinary shares with a par value of $10, for a consideration of $80 per share which increased the share capital issued and fully paid to $1,106,175 thousand. On June 29, 2020, the above transaction was approved by the FSC, and the subscription base date was determined by the board of directors to be October 15, 2020.

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

(2) Capital Surplus

The capital surplus arising from shares issued in excess of par (including share premium from the issuance of ordinary shares, treasury share transactions, consolidation excess and expired share options) and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

Capital surplus generated from equity component of convertible bonds payable may not be used for any purpose; Capital surplus generated from forfeited share options may only be used to offset a deficit.

(3) Retained earnings and dividend policy

Under the dividend policy as set forth in the amended Articles, when Company makes profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, and then any remaining profit together with any undistributed retained earnings, distributed, shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and of bonus of shareholders. For the policies on distribution of compensation of employees and remuneration of directors and supervisors before and after amendment, refer to Note 23. compensation of employees and remuneration of directors.

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Distribution of shareholder dividend and employee bonus can be distributed, pursuant to Board of Director’s Meeting determination, to employees or shareholders in cash, proceeds from fully paid shares not yet issued, or both cash and aforementioned proceeds. For shareholder dividend, however, cash dividend distributed shall not be less than 10% of all dividends. The Company will not pay for interest on undistributed dividend or bonus.

Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. Legal reserve may be used to offset a deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

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

The appropriations of earnings for 2020 and 2019 approved in the shareholders’ meetings on July 30, 2021 and June 19, 2020 were as follows:

Earnings Distribution

Legal Reserve Special Reserve Cash Dividends Cash Dividends per share(NT$)		2020 $ 51,314 ($ 9,605) $ 165,926 $ 1.5		2019
				$ 16,298 $ 379,864 $ 52,808 $ 0.5

The 2021 distribution of surplus earnings proposed by the Company’s Board of Directors Meeting dated March 16, 2022 is as follows:

Legal Reserve Special Reserve Cash Dividends Cash Dividends per share(NT$)		Earnings Distribution
		$ 21,610 ($ 45,393) $ 66,371 $ 0.6

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

2021 Earnings Distribution proposal is pending for resolution from the shareholders’ meeting which is expected to be held in June 17, 2022.

(4) Special Reserve

Balance at January 1 Special Reserve Exchange Difference on Translation of Foreign Financial Statement Balance at December 31		2021 $ 1,404,195 9,605) $ 1,394,590		2020
	(			$ 1,024,331 379,864 $ 1,404,195

Upon the Company’s first adoption of IFRSs, accumulated conversion adjustment amount transferred into retained earnings was NT$8,214 thousand. The same amount of special reserve has already been appropriated accordingly. Upon earnings distribution, other shareholder’s equity deduction as of the ending day of reporting period as well as special reserve appropriated during first adoption of IFRSs shall also be recognized. In the event that there is a subsequent reversal on other shareholder’s equity reduction balance, distribution of earnings can then be conducted on the reserval portion.

(5)

Non-Controlling Interest

Non-Controlling Interest
Balance at January 1 Current Net Profit Other comprehensive (Loss)/income Exchange Difference on Translation of Foreign Financial Statement Non-Controlling Interest Decreased by Qing Dao Rui Yao Building Material Co., Ltd. Non-Controlling Interest Increased by Yeong Guan Heavy Industry (Thailand) Company Balance at December 31	2021	2020 $ 160,965 3,387 ( 7,868 ) - - $ 156,484
	$ 156,484 ( 2,129 ) ( 12,905 ) ( 37,350 ) 21,245 $ 125,345

22. Revenue

(1) Balance of Client Contract Client Contract Revenue Product Sales Revenue		2021 $ 8,948,211		2020
				$ 8,184,273

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(2) Disaggregation of revenue from contracts with customers

Please refer to note 34 for detail information on client contract revenue.

23. Net Profit

(1) Interest Income

2021 Bank deposits $ 56,312 ) Other Profits and Losses 2021 Subsidized Income $ 9,312 Net Loss from Disposal and Abandonment of Property, Factory and Equipment ( 27,305) Loss on disposal of subsidiaries ( 6,516 ) Profit from lease modifications 249 Others 38,608 $ 14,348 ) Financial Cost 2021 Interest on Bank Loans $ 67,687 Interest on Lease Liabilities 5,337 Interest on Convertible Bond 7,205 80,229 Less: Amounts included in the cost of qualifying assets (12,290) $ 67,939 Information on capitalized interest is as follows: For the Year Ended 2021 Capitalized interest amount $ 12,290 Capitalization rate 1.163-1.797%		2020
		$ 48,462 2020
	$ 36,019 ( 11,111 ) - 161 3,970 $ 29,039 2020
	$ 85,054 6,009 2,446 93,509 - $ 93,509 December 31
2021 $ 12,290 1.163-1.797%	2020 $ - -

(2) Other Profits and Losses
(3) Financial Cost
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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(4) Depreciation, Amortization and Employee Benefit Expense

Employment Benefit Expense Post-Employment Benefit Other Employment Benefit Depreciation Amortization				2021		Total $ 67,286 1,401,963 $ 1,469,249 $ 530,448 $ 6,176				2020
		Business Cost $ 52,388 949,055 $ 1,001,443 $ 425,401 $ 197		Business Expense $ 14,898 451,908 $ 466,806 $ 105,047 $ 5,979				Business Cost $ 7,710 898,282 $ 905,992 $ 432,882 $ 66		Business Expense $ 3,871 329,205 $ 333,076 $ 100,750 $ 4,823		Total
												$ 11,581 1,227,487 $1,239,068 $ 533,632 $ 4,889

Aforementioned depreciation expense does not include depreciation expenses of NT$6 thousand for investment real property for 2021 and 2020 (included under nonoperating revenue and expense – other benefits and losses).

(5) Employee Compensation and Director/Supervisor Compensation The Company shall appropriate employee compensation and director/supervisor compensation in accordance with respective distribution zones of 2%~15% and no higher than 3% after current year pre-tax benefits prior to the distribution of employee and director/supervisor compensation are deducted. The employees’ compensation and remuneration to directors and supervisors for the years ended December 31, 2021 and 2020 which have been approved by the Company’s board of directors on March 16, 2022 and March 16, 2021, respectively, were as follows:

Ratio

Employee Compensation Director/Supervisor Compensation	2021 2.5% -	2020
		2% -

Amount Employee Compensation Director/Supervisor Compensation	Cash Bonus $ 5,541 -	Cash Bonus
		$ 10,500 -

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

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

There was no difference between the actual amounts of employees’ compensation and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2020 and 2019.

Information on the employees’ compensation and remuneration of directors and supervisors resolved by the Company’s board of directors in 2021 and 2020 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

(6) Gain on Foreign Currency Exchange

Gain on Foreign Currency Exchange
Foreign exchange gains Foreign exchange losses Net Profit		2021 $ 2,187,066 (2,183,672) $ 3,394		2020
				$ 2,483,331 (2,403,016) $ 80,315

24. Income Tax

(1) Income tax recognized in profit or loss

The major components of tax expense were as follow:

Current Tax In respect of the current year Adjustments for prior years Deferred Tax In respect of the current year Tax Rate Change Adjustments for prior years Income tax expense recognized in profit or loss		2021 $ 74,823 11,452) 63,371 28,678 22,400 7,802) 43,276 $ 106,647		2020
	( (		(	$ 85,876 4,428 90,304 27,666 734 11,496) 16,904 $ 107,208

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This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

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

Profit before tax Income tax expense calculated at the statutory rate Nondeductible expense of tax Unrecognized deductible temporary difference R&D tax credit Tax Rate Change Adjustments recognized for current tax of prior years Income tax expense recognized in profit or loss

(2) Current Income Tax Asset and Liability

) Current Income Tax Asset and Liability
Current tax assets Tax refund receivable (included in other current asset) Current tax liabilities Current income tax liabilities	December 31, 2021 $ 18,353 $ 67,513	December 31, 2020
			$ 2,290 $ 11,887

(3) Deferred Tax Assets and Liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

2021

2021
Deferred Income Tax Assets Temporary Differences Allowance for Loss on Inventories Allowance for impaired receivables Others Loss Carry forward Deferred Income Tax Liability Temporary Differences Adjustments of Unrealized Financial Instrument Evaluation Gain or Loss Unrealized Exchange Gains Capitalized Interest Others		Beginning Balance		Recognized in P/L $ 1,745 1,138 9,043) 6,160 ) 23,345) $ 29,505) $ 58 ) 45 ) 642 ) 82) $ 827)		Exchange Difference		Others	Ending Balance
		$ 5,546 5,116 15,249 25,911 84,748 $ 110,659 $ 58 1,759 6,340 1,383 $ 9,540	( ( ( ( ( ( ( ( (		( (	$ 52 33 71 156 523 $ 679 $ - 593 ) 49 7 $ 537)	( ( ( ( ( ( ( (	$ 81 ) 1,147 ) 516) 1,744 ) 13,064) $ 14,808) $ - - 4 214) $ 210)	$ 7,262 5,140 5,761 18,163 48,862 $ 67,025 $ - 1,121 5,751 1,094 $ 7,966

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	Beginning Balance	Recognized in P/L	Recognized in P/L		Exchange Difference		Others $ 5 ) - 134) 139 ) 11,621 $ 11,482 $ - - 800 80) $ 720		Ending Balance
	$ 15,206 3,346 4,378 22,930 109,601 $ 132,531 $ 611 7,034 6,234 837 $ 14,716	( ( ( ( ( ( (	$ 9,599 ) 1,722 10,895 3,018 36,541) $ 33,523) $ 539 ) 5,230 ) 707 ) 619 $ 5,857)	( ( ( (	$ 56 ) 48 110 102 67 $ 169 $ 14 ) 45 ) 13 7 $ 39)	( ( ( (			$ 5,546 5,116 15,249 25,911 84,748 $ 110,659 $ 58 1,759 6,340 1,383 $ 9,540

Deductible temporary differences for which no deferred tax assets have been recognized in the consolidated balance sheets

Loss Carryforwards Due in 2021 Due in 2022 Due in 2023 Due in 2024 Due in 2025 Due in 2026 Due in 2027 Due in 2028 Due in 2029 Due in 2030	December 31, 2021 $ - 218 2,277 257 122 658 - - - - $ 3,532	December 31, 2020	December 31, 2020
			$ 260 246 2,575 291 138 902 115 580 595 14 $ 5,716

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(5) Information about unused loss carry-forward as of December 31, 2021 comprised of ：

ExpiryYear 2022 2023 2024 2025 2026 2027 2028 2029 2031	Unused Amount	Unused Amount
		$ 1,088 11,387 1,287 612 58,041 62,954 109,617 50,096 107,850 $ 402,932

(6) Income tax assessments
Yeong Chen Asia Pacific Company’s tax filing cases prior to the year of 2018 have all been assessed by tax authority. Tax filing cases for Taiwan branches of Yeong Guan Holdings Co., Limited and Shin Shang Trade Company prior to the year of 2019 have all been assessed by tax authority. Furthermore, all subsidiaries in China and Yeong Guan Heavy Industries have all completed their income tax filings within deadlines in accordance with local tax authorities’ requirements.

25. Earnings per Share

The weighted average number of shares outstanding used for the earnings per share computation were as follows:

Net profit for the period

Net profit for the period
Profit for the period attributable to owners of the Company Effect of potentially dilutive ordinary shares: Convertible Bonds Earnings used in the computation of diluted earnings per share		2021 $ 216,102 21,605 $ 237,707		2020
				$ 513,143 77 $ 513,220

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Number of Shares Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Convertible Bonds Employee Bonus or Compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share		2021 110,618 15,400 114 126,132	Unit: 1,000 shares 2020	Unit: 1,000 shares 2020
				106,683 21 160 106,864

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

The Group’s third outstanding domestic unsecured convertible bonds are potential common shares. However, given the counter-dilution effect from such potential common shares of 2020, they are not included in the calculation of diluted earnings per share.

26. DISPOSAL OF SUBSIDIARIES

On January 14, 2021, the Group entered into a sale agreement to dissolution of subsidiary Qing Dao Rui Yao Building Material Co., Ltd., which is decoration material production, sales and stone processing sales business. The dissolution got the approval from the local government on March 25, 2021 and completed the dissolution on March 30,2021

a. Consideration received from disposals

Qing Dao Rui Yao Building Material Co., Ltd.

Total consideration received

$ 30,834

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b. Analysis of assets and liabilities on the date control was lost

	Qing Dao Rui Yao Building
	Material Co., Ltd.
Current assets
Cash and cash equivalents	$ 61,670
Prepayment	13,025
Other current asset	5
Net assets disposed of	$ 74,700
Loss on dissolution of subsidiaries
	Qing Dao Rui Yao Building
	Material Co., Ltd.
Consideration received	$ 30,834
Net assets disposed of	( 74,700)
Non-controlling interests	37,350
Gain on disposals	($ 6,516)
Net cash inflow on disposals of subsidiaries
	Qing Dao Rui Yao Building
	Material Co., Ltd.
Consideration received in cash and cash equivalents	$ 30,834
Less: Cash and cash equivalent balances disposed of	( 61,670)
	($30,836)

c. Loss on dissolution of subsidiaries
d. Net cash inflow on disposals of subsidiaries

27. Capital Risk Management

The Group engages itself in capital management to ensure necessary finance resources and operation plan for the purpose of meeting the needs for future 12-month operation capital, capital expenditure, debt repayment as well as dividend payment. Under the premise that respective enterprise of the Group will be able to operate continuously, shareholder’s compensation will be maximized through optimization of debt and equity balances.

The Group’s major management regularly review the Group’s capital structure. Contents of review include consideration of various capital costs as well as their related risks. With major management’s suggestions, the Group balances its overall capital

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structure through dividend payment, new share issuance, new debt issuance or repayment of existing debt.

28. Financial Instruments

(I) Fair value of financial instruments that are not measured at fair value

December 31, 2021

December 31, 2021
Financial Liability Financial liabilities at amortized cost Convertible bonds payable December 31, 2020 Financial Liability Financial liabilities at amortized cost Convertible bonds payable	Book Value $1,473,192 Book Value $1,465,987		Fair Value
		Level1 $1,568,400	Level2		Total
					$1,568,400 Total $1,655,850
		Level1 $1,655,850	Level2	Level3 $ -
			$ -

December 31, 2020

(II) Fair value of financial instruments measured at fair value on a recurring basis
Fair value hierarchy

December 31, 2021

December 31, 2021
Financial assets at FVTPL Financial Product Financial assets at FVTOCI Unlisted shares Financial liabilities at FVTPL Convertible Bond Payables	Level 1 $ - $ - $ -	Level 2	Level 3 $ - $ 76,768 $ -	Total
		$ 579,631 $ - $ 24,750		$ 579,631
				$ 76,768 $ 24,750

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December 31, 2020 Financial assets at FVTPL Derivatives Financial Product Financial liabilities at FVTPL Derivatives Convertible Bond Payables		Level 1 $ - - $ - $ - - $ -		Level 2 $ 2,677 506,669 $ 509,346 $ 363 10,350 $ 10,713		Level 3 $ - - $ - $ - - $ -		Total
								$ 2,677 506,669 $ 509,346 $ 363 10,350 $ 10,713

There were no transfers between the level 1 and level 2 during the period of years ended December 31, 2021 and 2020.

Reconciliation of Level 3 fair value measurements of financial instruments

Financial Assets Balance at January 1, 2021 Purchases Recognized in other comprehensive income Sales Other comprehensive income for the year Transfers into retained earning Balance at December 31, 2021	Financial Assets at FVTOCI
	Equity Instruments $ - 76,476 11,010 ( 4,300) 83,186 ( 6,418) $76,768

Valuation techniques and inputs applied for Level 2 fair value measurement

Types of Financial
Instruments
Derivatives - foreign
exchange forward
contracts
Financial Product

Assessment Techniques and Input Values

Discounted Cash Flow Method: Future cash flows are
estimated based on observable forward exchange rates
at the end of the reporting period and contract forward
rates, discounted at a rate that reflects the credit risk of
various counterparties.
Discounted Cash Flow Method: Future cash flow is
assessed using period-end observable interest rates and
rates of return stipulated in agreements, and is
discounted respectively using discount rates which are

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capable of reflecting respective transaction counterparties’ credit risks Domestic Third Under the assumption that corporate bond will be Unsecured redeemed on September 13, 2025, discount rate adopted Convertible is calculated via interpolation method using government Corporate Bond bond yield rates from public offer 2-year and 5-year period.

Valuation techniques and inputs applied for Level 3 fair value measurement The fair values of unlisted equity securities were determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.

(III) Categories of Financial Instruments

Financial Asset Financial assets at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Financial Liability Financial liability at FVTPL Measured at amortized cost (Note 2)	December 31, 2021 $ 579,631 5,607,799 76,768 24,750 9,317,875	December 31, 2020
		$ 509,346 6,531,816 - 10,713 7,351,831

  - Note 1: The balances included receivables measured at amortized cost, which comprise cash and cash equivalents, financial asset measured by amortized cost – current, notes receivable, trade receivables, other receivables and refundable deposit.

  - Note. 2:  The balances include financial liabilities at amortized cost, which comprise short-term and long-term loans, trade and other payables, and bonds issued.

(IV) Financial risk management objectives and policies
The Group’s main financial instruments include cash and cash equivalents, notes and trade receivables, bond payables, loans and lease liability. The finance department of the Group provides service to business departments, coordinates access to domestic
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and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the Company’s board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use financial derivatives and non-derivative financial instrument, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. After completion of derivative financial instrument transaction, finance department will file report to the Board of Directors Meeting accordingly.

1. Market Risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see Note (1) below) and interest rates (see Note (2) below).

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

(1) Foreign currency risk

Several subsidiaries of the Company have foreign currency denominated sales and purchases, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contract.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and

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of the derivatives exposing to foreign currency risk at the end of the reporting period are set out in Note 7 and 30.

Sensitivity Analysis

The Group was mainly exposed to the currency USD and EUR. The following table details the Group’s sensitivity to a 1% increase and decrease in the functional currency against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit and other equity associated with the functional currency strengthen 1% against the relevant foreign currencies. For a 1% weakening of the functional currency against the relevant foreign currencies, there would be an equal and opposite impact on pre-tax profit and other equity and the balances below would be negative.

USD EUR RMB	2021 $ 18,398 1,773 (226)	2020 $ 17,511 (2,284) (739)

Aforementioned foreign currency’s influence over profit or loss mainly comes from fair value changes, on the balance sheet day, of consolidated company’s outstanding USD , EUR and RMB denominated account receivables/payables

without cash flow hedge as well as total amount investment hedge derivatives. Management doesn’t think sensitivity analysis will be able to represent exchange rate inherent risks because foreign currency exposure on balance sheet day cannot reflect exposure during mid-year.

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(2) Interest Rate Risk

The Group is exposed to interest rate risk because entities in the Group borrow loans at both fixed and floating interest rates.

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

were as follows:
Fair Value Risks -Financial Assets -Financial Liabilities Cash Flow Risks -Financial Assets -Financial Liabilities	December 31, 2021 $ 1,186,352 3,043,015 1,600,809 3,427,831	December 31, 2020
		$ 1,361,937 2,454,275 2,468,358 2,823,439

Sensitivity Analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 1% increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher or lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2021 and 2020 would decrease or increase by ($18,270) thousand and ($3,551) thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate bank deposits.

(2) Other price risk

The Group was exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than for trading purposes, the Group does not actively trade these investments. In

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addition, the Group has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the year.

If equity prices had been 1% higher/lower, pre-tax/post-tax profit for the years ended December 31, 2021 would have increased/decreased by $768 thousand.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantees provided by the Group could arise from the carrying amount of the respective recognized financial assets as stated in the balance sheets. To mitigate credit risk, management of consolidated company assigns a specific team responsible for credit extension amount determination, credit extension approval as well as other monitoring processes to ensure that appropriate actions have been taken to recover overdue account receivables. Additionally, consolidated company will, on balance sheet day, re-verify each account receivable recoverable amount to ensure unrecoverable account receivables have already been recognized as appropriate impairment losses. With this, the Company’s management considers that consolidated company’s credit risks have been reduced dramatically.

The Group transacted with a large number of customers from various industries and geographical locations. The Group continuously assesses the operations and financial positions of customers and monitors the collectability of accounts receivable.

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Current capital transaction counterparties are financial institutions and company organizations with good credit ratings, and therefore their credit risks are limited. The Group transacts with a large number of unrelated customers and, thus, no concentration of credit risk was observed.

Liquidity Risk

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

The Group relies on bank loans as a significant source of liquidity. As of December 31, 2021 and 2020, the Group had available unutilized short-term bank loan facilities set out in (3) below.

(I) Liquidity and Interest Rate Risk Tables for Non-Derivative Financial Liabilities

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

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

December 31, 2021

Non-derivative financial liability Non-interest bearing Lease liability Variable interest rate instrument Fixed interest rate instrument	On Demand or Less than 1 Month	On Demand or Less than 1 Month	1 to 3 months	1 to 3 months	3 months to 1 year	3 months to 1 year		1 to 5 years		more than 5 years
		$ 1,414,770 2,926 208,388 681,620 $ 2,307,704		$ 1,061,435 5,852 169,200 309,119 $1,545,606		$ 329,544 19,507 545,659 316,051 $ 1,210,761		$ - 62,875 2,504,584 1,500,000 $ 4,067,459		$ - 145,065 - - $ 145,065

Additional information about the maturity analysis for lease liabilities:

Lease liability		Less than 1year	1 to 5years	1 to 5years		5 to 10 years		10 to 15 years		15 to 20 years	More than 20years
		$ 28,285		$ 62,875		$ 71,905		$ 71,905		$ 1,255	$ -

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December 31, 2020

Non-derivative financial liability Non-interest bearing Lease liability Variable interest rate liabilities Fixed interest rate instrument	On Demand or Less than 1 Month	On Demand or Less than 1 Month	1 to 3 months	1 to 3 months	3 months to 1 year	3 months to 1 year		1 to 5 years		more than 5 years
		$ 1,064,068 3,440 70,250 - $ 1,137,758		$ 902,019 6,881 185,397 322,580 $ 1,416,877		$ 163,194 30,821 248,165 352,066 $ 794,246		$ - 93,422 2,319,627 1,500,000 $ 3,913,049		$ - 145,065 - - $ 145,065

Additional information about the maturity analysis for lease liabilities:

Lease liability		Less than 1year	1 to 5years	1 to 5years		5 to 10 years		10 to 15 years		15 to 20 years	More than 20years
		$ 41,142		$ 93,422		$ 71,905		$ 71,905		$ 1,255	$ -

Differences between floating interest rate and interest rate estimated on balance sheet day will lead to changes in floating interest rate instrument amounts for aforementioned non-derivative financial liability.

(2) Liquidity and Interest Rate Risk Tables for Derivative Financial Liabilities

The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the year.

December 31, 2020

December 31, 2020
Net settled Foreign exchange forward contracts - Inflow - Outflow		On Demand or Less than 1 Month $ 328,113 327,364) $ 749	1 to 3 months $ 244,039 ( 242,474) $ 1,565	3 months to 1 year
	(		(		$ - - $ -

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(3) Financing Facilities

Unsecured Bank Overdraft Facility, Reviewed Annually `－`Amount Used `－`Amount Unused Secured Bank Overdraft Facility, Extendable If Agreed by the Parties) `－`Amount Used `－`Amount Unused	December 31, 2021 $ 3,601,679 2,451,576 $ 6,053,255 $ 1,132,941 2,963,163 $ 4,096,104	December 31, 2020	December 31, 2020
			$ 2,642,207 2,542,901 $ 5,185,108 $ 855,878 6,590,015 $ 7,445,893

(V) Information of Financial Asset Transfer

The Group transferred a portion of its banker’s acceptance bills in mainland China to some of its suppliers in order to settle the trade payables to these suppliers. As the Group has transferred substantially all risks and rewards relating to these bills receivable, it derecognized the full carrying amount of the bills receivable and the associated trade payables. However, if the derecognized bills receivable is not paid at maturity, the suppliers have the right to request that the Group pay the unsettled balance; therefore, the Group still has continuing involvement in these bills receivable.

The maximum exposure to loss from the Group’s continuing involvement in the derecognized bills receivable is equal to the face amounts of the transferred but unsettled bills receivable, and as of December 31, 2021 and December 31, 2020, the face amounts of these unsettled bills receivable were $1,381,977 and $1,333,787 respectively. The unsettled bills receivable will be due in 7 months and 6 months after December 31, 2021 and 2020. Taking into consideration the credit risk of these derecognized bills receivable, the Group estimates that the fair values of its continuing involvement are not significant.

During the year ended December 31, 2021 and 2020, the Group did not recognize any gains or losses upon the transfer of the banker’s acceptance bills. No gains or losses were recognized from the continuing involvement, both during the period or cumulatively.

29. Transactions With Related Party

Balances, transactions, revenue and expenses between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below

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(1) Name and Relation

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

Name Relation
Yeong Guan Mould Factory Co., Ltd. Substantial related-party
Chang, Hui-Jieh Substantial related-party
(2) Lease contract
December 31, December 31,
Item Recognized Type of Related Party 2021 2020
Lease liability Substantial related-party $ - $ 32
Type of Related Party 2021 2020
Interest expense
Substantial related-party $ - $ 5
(3) Others
Item Recognized Type of Related Party 2021 2020
$ 60 $ 60
Rent Income(included in Substantial related-party
other income)
----- End of picture text -----

For lease contract with related party, rent is determined under reference of market

prices and payment is subject to the general terms and conditions.

(7) Major Management Remuneration

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

2021 2020
Short-term Employee Benefit $ 54,229 $ 52,240
Post-Employment Benefit 2,529 446
$ 56,758 $ 52,686
----- End of picture text -----

The compensation to directors and other key management personnel were determined by the Remuneration Committee in accordance with the individual performance and the market trends.

30. Assets Pledged as Collateral or for Security

The Group’s following assets are provided as loan collaterals, construction performance bond or product quality warranty.

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Property, Plant and Equipment Right-to-Use Asset, Net Other Financial Assets – Current Other Financial Assets – Noncurrent (included in other noncurrent assets)	December 31, 2021 $ 971,015 184,223 1,106,684 170,143 $ 2,432,065	December 31, 2020	December 31, 2020
			$ 957,058 188,141 862,010 35,933 $ 2,043,142

31. Other Items

After the outbreak of COVID-19 in January, 2020, operation resumptions for Yeong Shang Casting Iron Company, Lu Lin Machine Tool Foundry Company, Dongguan Yeong Guan Mould Factory Company, Bright Steel Fine Machinery Company, Yeong Chia Mei Trade Company and Shanghai No. 1 Machine Tool Foundry Company have been delayed accordingly. However, those operating locations returned to operation, starting from February 21 2020. With the easing of the epidemic and policy easing, the operations of the Group have returned to normal

32 . Significant Assets and Liabilities Denominated in Foreign Currencies

The significant financial assets and liabilities denominated in foreign currencies were as follows:

December 31, 2021

Financial Assets Currency Item USD USD EUR EUR RMB Financial Liability Currency Item USD USD EUR EUR RMB	Foreign Currency $ 29,759 18,502 18,315 13,691 11,338 12,900 101,826 363 37,305 6,134	Exchange Rate 6.3757`（`USD: RMB`）` $ 27.68`（`USD: NTD`）` 7.2197`（`EUR: RMB`）` 31.32`（`EUR: NTD`）` 4.3415`（`RMB: NTD`）` 6.3757`（`USD: RMB`）` 27.68`（`USD: NTD`）` 7.2197`（`EUR: RMB`）` 31.32`（`EUR: NTD`）` 4.3415`（`RMB: NTD`）`	Book Value
			823,729 512,135 573,626 428,802 49,224 357,072 2,818,544 11,369 1,168,393 26,631

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December 31, 2020

Financial Assets Currency Item USD USD EUR EUR EUR RMB Non-monetary items Derivatives USD USD Financial Liability Currency Item USD USD EUR EUR RMB Non-monetary items Derivatives EUR EUR	Foreign Currency $ 20,658 6.5249`（`USD: RMB`）` 16,014 28.1`（`USD: NTD`）` 13,905 8.025`（`EUR: RMB`）` 117 1.23`（`EUR: USD`）` 7,643 34.56`（`EUR: NTD`）` 25,499 4.3066`（`RMB: NTD`）` 82 6.5249`（`USD: RMB`）` 13 28.1`（`EUR: RMB`）` 10,515 6.5249`（`USD: RMB`）` 88,569 28.1`（`USD: NTD`）` 2,695 8.025`（`EUR: RMB`）` 12,352 34.56`（`EUR: USD`）` 8,343 4.3066`（`RMB: NTD`）` 8 34.56`（`EUR: NTD`）` 3 8.025`（`EUR: RMB`）`	Book Value
		$ 580,490 449,993 480,557 4,044 264,142 109,813 2,307 370 295,472 2,488,789 93,139 426,885 35,930 271 92

For the year ended in December 31, 2021 and 2020, realized and unrealized net foreign exchange gains were $3,394 thousand and $80,315 thousand respectively. It is impractical to disclose net foreign exchange gains by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

33. Disclosed Items

(I) Information about significant transactions and (2) investees:
Loans provided to other parties (Table 1)
Endorsements/guarantees given to other parties (Table 2)
Marketable securities held (excluding investments in subsidiaries, associates and joint controlled entities) (Table 3)
Purchases or sales of the same marketable securities amounting to at least NT$300 million or 20% of the paid-in capital. (Table 4)
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Acquisition of real estate at costs of at least NT $300 million or 20% of the paid-in capital (Table 5)
Disposal of real estate at prices of at least NT$300 million or 20% of the paidin capital (None)
Purchases or sales with related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 7)
Derivative transactions (Note 7 “Financial Instruments at Fair Value through Profit or Loss ”)
Intercompany relationships and significant intercompany transactions (Table 10)
(II) Information on investees (Table 8)
(III) Information for investments in Mainland China
Information for any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income or loss, carrying amount of the investment at the end of the period, and limit on the amount of investment in the mainland China area (Table 9)
Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Tables 1 to 10)
- (1) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- (2) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- (3) The amount of property transactions and the amount of the resultant gains or losses.
- (4) The balance of negotiable instrument endorsements/guarantees or pledges of collateral at the end of the period and the purposes.
- (5) The highest balance, the ending balance, the interest rate range, and the total of current interest with respect to loans provided.
69 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(6) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.
(IV) Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder. (Table 11)

34. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Departments shall be reported by the Group are casting processing and other.

(1) Segment revenues and results The following was an analysis of the Group's revenue and results from continuing operations by reportable segment.
70 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Casting Processing Dept. Other Total amounts of continuing operations Interest revenue Other Profit and Loss Financial Product Net Profit at Fair Value through Profit and Loss Net exchange gains Finance costs Management and Administration Expense Profit before income tax		Department	Department	Income 2020 $ 8,129,415 54,858 $ 8,184,273		Department Profit	Department Profit	Department Profit
		2021				2021		2020
		$ 8,928,358 19,853 $ 8,948,211			( ( ( (	$ 941,751 6,419) 935,332 56,312 14,348 1,552 ) 3,394 67,939 ) 619,275) $ 320,620	( (	$ 1,069,063 809 1,069,872 48,462 29,039 14,731 80,315 93,509 ) 525,172) $ 623,738

The segment revenues were accounted for the transactions with external customers. No inter-segment sales occurred for the years ended December 31, 2021 and 2020.

Segment profit represented the profit before tax earned by each segment without interest income, other gain or loss, net gain on financial assets and liabilities at fair value through profit and loss, exchange gain or loss, finance costs, allocation of central administration costs and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

(2) Segment Total Assets Measurement of consolidated company’s assets is not provided to operating decision makers, and therefore measurement amount for assets is zero.
(3) Other Segment Information

Other Segment Information
Casting Processing Dept. Other	Depreciation and Amortization
	2021 $ 529,159 7,471 $ 536,630	2020
		$ 526,839 11,688 $ 538,527

71 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

(4) Major Product Income

Major products for consolidated company’s continuous operating units are analysed as follows:

as follows:
Energy Castings Injection Molding Machine Castings Industry Machine Castings		2021 $4,250,935 2,248,995 2,448,281 $ 8,948,211		2020
				$ 5,562,951 1,144,634 1,476,688 $ 8,184,273

(5) Geographical Information

The Group operates in two principal geographical areas - Taiwan and China.

The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:

China Taiwan Other	Revenue from External Customers 2021 2020 $ 6,509,792 $ 6,206,449 2,438,419 1,977,824 - - $ 8,948,211 $ 8,184,273	Revenue from External Customers 2021 2020 $ 6,509,792 $ 6,206,449 2,438,419 1,977,824 - - $ 8,948,211 $ 8,184,273	Revenue from External Customers 2021 2020 $ 6,509,792 $ 6,206,449 2,438,419 1,977,824 - - $ 8,948,211 $ 8,184,273	Non-Current Assets	Non-Current Assets	Non-Current Assets
		2021 $ 6,509,792 2,438,419 - $ 8,948,211		December 31, 2021 $ 4,703,434 4,137,237 86,961 $ 8,927,632	December 31, 2020
						$ 5,031,674 338,752 1,463,587 $ 6,834,013

Non-current assets excluded those classified as financial instruments and deferred tax assets.

(6) Information of Major Customers

Single customers who contributed 10% or more to the Group’s revenue were as follows:

follows:
Client A Client B	2021 $ 1,053,098 999,338	2020
		$ 2,061,008 1,151,105

Note: Income is less than 10% of total income

72 -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

LOANS PROVIDED TO OTHER PARTIES

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 1

Unit: NTD in thousands unless otherwise prescribed

Serial No	Financing Company	Borrower	Financial Statement Account	Related Party	Maximum Balance for the Year	Ending Balance	Balance Used	Interest Rate	Type of Financing	Transaction Amount	Reason for Short-term Financing	Bad Debt Allowance	Colla	teral	Financing limit for each borrowing company	Financing Amount Limits	Note
													Item	Value
1 2 3 4 5	Yeong Guan Holdings Co., Limited Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Bright Steel Fine Machinery Company Dongguan Yeong Guan Mould FactoryCompany	Yeong Guan Energy Technology Group Co., Ltd Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company	Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party Other Account Receivable`－` Related Party	Yes Yes Yes Yes Yes Yes Yes	$ 170,000 65,122 (RMB 15,000 thousand ) 725.028 (RMB 167,000 thousand ) 594,783 (RMB 137,000 thousand ) 151,952 (RMB 35,000 thousand ) 303,904 (RMB 70,000 thousand ) 138,927 (RMB 32,000 thousand )	$ 170,000 65,122 (RMB 15,000 thousand ) 573.076 (RMB 132,000 thousand ) 442,831 (RMB 102,000 thousand ) 151,952 (RMB 35,000 thousand ) 169,318 (RMB 39,000 thousand ) -	$ 170,000 65,122 (RMB 15,000 thousand ) 573.076 (RMB 132,000 thousand ) 442,831 (RMB 102,000 thousand ) 151,952 (RMB 35,000 thousand ) 151,952 (RMB 35,000 thousand ) -	1 1 4 4 4 4 4	Short Term Financing Capital Short Term Financing Capital Short Term Financing Capital Short Term Financing Capital Short Term Financing Capital Short Term Financing Capital Short Term Financing Capital	$ - - - - - - -	Business Turnover Business Turnover Business Turnover Business Turnover Business Turnover Business Turnover Business Turnover	$ - - - - - - -	`－` `－` `－` `－` `－` `－` `－`	`－` `－` `－` `－` `－` `－` `－`	$ 3,822,637 3,822,637 1,023,513 635,051 4,233,670 1,571,038 164,710	$ 5,096,849 5,096,849 1,364,684 846,734 4,233,670 2,094,717 219,613

Note 1: Maximum balance and ending balance for this year are calculated based on exchange rate on December 31, 2021.

Note 2: All intercompany transactions have been eliminated upon consolidation.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 2

Unit: NTD in thousands unless otherwise prescribed

Serial No.	Endorsement / Guarantee Provider	Guaranteed	Party	Endorsement /guarantee amount limit to each company	Maximum endorsement /guarantee balance for this year	Ending Endorsement /guarantee balance	Balance Used	Endorsement /guarantee amount collateralized by property	Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements	Endorsement /guarantee amount limit	Parent company’s endorsement /guarantee for subsidiary	Subsidiary’s endorsement /guarantee for Parent company	endorsement /guarantee for China region	Note
		Name	Relationship
0 1	Yeong Guan Energy Technology Group Co., Ltd Yeong Chen Asia Pacific Company	Shanghai No. 1 Machine Tool Foundry Company Yeong Guan Holdings Co., Limited Yeong Chen Asia Pacific Company Bright Steel Fine Machinery Company Yeong Guan Holdings Co., Limited	Subsidiary of Sub- subsidiary Subsidiary Sub-subsidiary Subsidiary of Sub- subsidiary Parent	$ 870,927 4,354,635 4,354,635 4,354,635 291,449	$ 355,475 (USD 5,000 thousand ) (RMB 50,000 thousand ) 3,301,080 1,570,664 276,800 (USD 10,000 thousand ) 85,430	$ 355,475 (USD 5,000 thousand ) (RMB 50,000 thousand ) 3,034,000 70,664 - 85,430	$ 203,522 (USD 5,000 thousand ) (RMB 15,000 thousand ) 1,186,676 - - - -	$ - - - 85,430	3.97% 33.86% 0.79% - 12.81%	$ 8,709,270 8,709,270 8,709,270 8,709,270 466,318	Y Y Y Y N	N N N N Y	Y N N Y N

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries MARKETABLE SECURITIES HELD

December 31, 2021

Table 3

Unit: thousand shares / NTD thousand

Holding Company	Types and Names of Securities	Relationship with Securities Issuer	Recognized Account		End of Period	End of Period		Note
				Number of Shares	Book Amount	Holding Percentage	Fair Value
Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Yeong Chia Mei Trade Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Guan Holdings Co., Limited	Bank of Hangzhou happiness 99 Zhen wallet open financial planning Bank of Ningbo - Ningxin Term Finance No. 27 Bank of Ningbo - Ningxin Term Finance No. 27 Bank of China –Accumulated Wealth Management (Wealth Management Exclusive) Bank of Hangzhou a happiness 99 quarterly tian Yi No. 1909 Bank of Hangzhou a happiness 99 weekly tian Yi No. 2101 Hangzhou Bank a happiness 99 new wallet Bank of China accumulated a plan B Bank of China - Smart Capital Series 211290 Citic Bank financial account win-win robust cycle 182 Formosa 4 International Investment Co., Ltd., Formosa 5 International Investment Co., Ltd., and KOP Investment Limited Company Formosa 5 International Investment Co., Ltd. KOP Investment Limited Company	Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party Not related party	Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through profit and loss Financial asset measured at fair value through comprehensive income Financial asset measured at fair value through comprehensive income Financial asset measured at fair value through comprehensive income	- - - - - - - - - - 1,165,125 4,393,350 40,000	43,415 (RMB 10,000 thousand ) 130,244 (RMB 30,000 thousand ) 43,415 (RMB 10,000 thousand ) 91,171 (RMB 21,000 thousand ) 26,049 (RMB 6,000 thousand ) 43,415 (RMB 10,000 thousand ) 52,098 (RMB 12,000 thousand ) 19,580 (RMB 4,510 thousand ) 65,122 (RMB 15,000 thousand ) 65,122 (RMB 15,000 thousand ) 12,817 47,360 16,591 (USD 600 thousand)	- - - - - - - - - - - 9.75% 9.75% 4%	43,415 (RMB 10,000 thousand ) 130,244 (RMB 30,000 thousand ) 43,415 (RMB 10,000 thousand ) 91,171 (RMB 21,000 thousand ) 26,049 (RMB 6,000 thousand ) 43,415 (RMB 10,000 thousand ) 52,098 (RMB 12,000 thousand ) 19,580 (RMB 4,510 thousand ) 65,122 (RMB15,000 thousand ) 65,122 (RMB15,000 thousand ) 12,817 47,360 16,591 (USD 600 thousand)

Note 1: Amounts at the end of this period are calculated based on exchange rates dated December 31, 2021.

Note 2: Please refer to table 8 and table 9 for related information on invested subsidiaries.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

MARKETABLE SECURITIES ACQUIRED AND DISPOSED AT COSTS OR PRICES OF AT LEAST $300 MILLION OR 20% OF THE PAID -IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

Table 4

Unit: NTD in thousands unless otherwise prescribed

Buying/Selling Company	Types and Names of Securities	Recognized Account	Transaction Counterparty	Relationship	Beginning of Period	Beginning of Period		Buy		Sell	Sell		End of Period	End of Period
					Unit	Amount	Unit	Amount	Unit	Selling Price	Book Cost	Gain/Loss on Disposal	Unit	Amount (Note 1)
Dongguan Yeong Guan Mould Factory Company Lu Lin Machine Tool Foundry Company	Bank of Industry and Commerce - happy life follow E special account custom type China Citic Bank win 91	Financial assets measured at fair value through profit and loss-current Financial assets measured at fair value through profit and loss-current	- -	- -	- -	$ - -	- -	$ 264,831 (RMB 61,000 thousand) 217,074 (USD 50,000 thousand)	- -	$ 264,831 (RMB 61,000 thousand) 217,074 (RMB 50,000 thousand)	$ - -	$ 1,997 (RMB 460 thousand) -	- -	$ - -

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

ACQUISITION OF REAL ESTATE AT COSTS OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

Table 5

Unit: NTD in thousands unless otherwise prescribed

Acquiring company	Title of property	Transaction date or occurrence date	Transaction amount	Payment	Counterparty	Relationship	Where the counterparty is a related party, the previous transfer information	Where the counterparty is a related party, the previous transfer information	Where the counterparty is a related party, the previous transfer information	Where the counterparty is a related party, the previous transfer information	Pricing reference and basis	Purpose of acquisition and use	Other agreements
							Owner	Relationship with issuer	Date of transfer	Amount
Yeong Guan Holdings Co., Limited	Factory construction	2021.1.18	$ 3,120,000	Based on the terms in the purchase order	Ruentex Engine ering & Constr uction Co., Ltd.	Non related party	N/A	N/A	N/A	N/A	Market price	Manufacturing purpose	NONE

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 6

Unit: in thousands of NTD

Table 6									Unit: in thousand	Unit: in thousand	s of NTD
Purchase (Sales) Company	Transaction Counterpart	Relationship		Transaction Details			Cases and Reasons for Transaction Terms Different Those of Average Transactions		Notes/Accounts Receivable (Payable)		Note
			Purchase (Sales)	Amounts	Percentage of Total Purchase (Sales)	Credit Extension Period	Unit Price	Credit Extension Period	Balance	Percentage of Total Notes/Accounts Receivables (Payables)
Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Bright Steel Fine Machinery Company Dongguan Yeong Guan Mould Factory Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool FoundryCompany	Lu Lin Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Dongguan Yeong Guan Mould Factory Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Lu Lin Machine Tool Foundry Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Yeong Chen Asia Pacific Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company	Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company Same parent company	Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	$ 414,723 358,599 340,300 386,783 307,925 135,109 868,772 201,506 260,610 ( 340,300 ) ( 868,772 ) ( 414,723 ) ( 386,783 ) ( 260,610 ) ( 201,506 ) ( 307,925 ) ( 358,599 ) ( 135,109 )	19% 10% 10% 11% 13% 6% 38% 9% 11% 14% 35% 33% 31% 21% 5% 54% 23% 9%	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1)	$ - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	( $ 96,581 ) ( 5,449 ) ( 36,532) ( 200,699 ) ( 87,377 ) ( 50,428 ) ( 282,134 ) ( 42,544 ) ( 60,046 ) 36,532 282,134 96,581 200,699 60,046 42,544 87,377 5,449 50,428	20% 1% 4% 23% 15% 8% 47% 7% 10% 5% 41% 21% 43% 13% 3% 49% 1% 7%

Note 1: Price and payment terms for transactions with related party are determined in accordance with the parties’ agreement. Note 2: Aforementioned transactions have all been cancelled during preparation of consolidated financial statement.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL December 31, 2021

Table 7

Unit: in thousands of NTD

Table 7							Unit: in t	housands of NTD
Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Bright Steel Fine Machinery Company Yeong Guan Holdings Co., Limited	Yeong Chen Asia Pacific Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Yeong Guan Energy Technology GroupCo.,Ltd.	Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company Subsidiaries	$ 282,134 581,968 (Note1) 152,321 (Note2) 200,699 448,623 (Note 3) 152,353 (Note 4) 170,534 (Note5)	- - - - - - -	$ - - - - - - -	`－` `－` `－` `－` `－` `－` `－`	$ - - - - - - -	$ - - - - - - -

Note 1: This includes financing amount NT$573,076 thousand and interest receivable of NT$8,892 thousand. Note 2: This includes financing amount NT$151,952 thousand and interest receivable of NT$369 thousand. Note 3: This includes financing amount NT$442,831 thousand and interest receivable of NT$5,792 thousand. Note 4: This includes financing amount NT$151,952 thousand and interest receivable of NT$401 thousand. Note 5: This includes financing amount NT$170,000 thousand and interest receivable of NT$534 thousand. Note 6: Aforementioned transactions have all been cancelled during preparation of consolidated financial statement.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 8										Unit: in thousands of NTD	Unit: in thousands of NTD
Name of Investing Company	Name of Invested Company	Location	Major Business Items	Original Investment Amount		Year End Ownership			Current (Loss) Profit for Invested Company	Recognized Current Investment (Loss) Profit	Note
				December 31, 2021	December 31, 2020	Number of Shares	Percentage (％)	Book Value
Yeong Guan Energy Technology Group Co., Ltd Yeong Guan Holdings Co., Limited	Yeong Guan Holdings Co., Limited Yeong Guan Heavy Industry (Thailand) Company Yeong Guan International Co. , Limited Shin Shang Trade Company Yeong Chen Asia Pacific Company	British Virgin Islands Thailand Hong Kong British Virgin Islands Taiwan	Investment Holding Business Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Investment Holding Business Transaction of various steel castings and casting molds as well as related import/export businesses Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron	$ 5,924,658 412,110 5,238,538 - 95,000	$ 5,924,658 348,375 5,238,538 226,069 95,000	194,000,000 90,000,000 805,000,000 - -	100.00 75.00 100.00 - 100.00	$ 12,747,008 353,789 10,301,761 - 582,338	$ 296,608 ( 3,499) 335,254 ( 634 ) 27,020	$ 296,608 ( 2,624 ) 335,831 ( 568) 27,122	Note 1 Note 1 Note 4 Note 1 Note 1 Note 3 Note 1

Note 1: Calculation is based on invested company’s CPA certified financial statement in the same period and the Company’s ownership percentage.

Note 2: Investment profit/loss among invested companies, investment company’s long term equity investment and equity net value among invested companies have all been cancelled during preparation of consolidated financial statement.

Note 3: Yeong Guan Holdings Co., Limited incorporated its subsidiary Shin Shang Trade Company on March 31, 2001.

Note 4: Yeong Guan Heavy Industry (Thailand) Company issued its ordinary shares at par value of $5 baht each.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

INFORMATION FOR INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 9

Unit: in thousands of NTD

Table 9													Un	it: in thousands	of NTD
Names of Invested Companies in China	Main Business Items		Paid-In Capital	Investment Methods (Note 1)	Accumulated Investment Amounts Remitted from Taiwan, Beginning of This Year		Current Year Investment Amounts Remitted Out or Retrieved Back		Current Year End Accumulated Investment Amount Remitted from Taiwan	Invested Company’s Profit/Loss for Current Year	The Company’s Direct or Indirect Ownership Percentage	Current Investment Profit (Loss) Recognized (note 2)	Year End Investment Book Value	Investment Yield Remitted Back as of Year End	Note
							Remitted Out	Retrieved Back
Ningbo Yeong Shang Casting Iron Company Dongguan Yeong Guan Casting Iron Factory Company Ningbo Lu Lin Machine Tool Foundry Company Jiangsu Bright Steel Fine Machinery Company Ningbo Yeong Chia Mei Trade Company Shanghai No. 1 Machine Tool (Suzhou) Company Qing Dao Rui Yao Building Material Co., Ltd.	Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Transaction of various steel castings and casting molds as well as related import/export businesses Manufacturing and selling of high quality casting products of spherical graphite cast iron and grey cast iron Manufacturing and selling of Decorative Material, processing and selling of stones material		$ 1,193,008 110,038 379,354 3,179,084 27,680 932,262 -	(3) (3) (3) (3) (3) (3) (3)	$	- - - - - - -	$ - - - - - - -	$ - - - - - - -	$ - - - - - - -	$ 146,526 ( 31,470 ) 38,379 305,581 ( 422 ) ( 44,081 ) 293	100% 100% 100% 100% 100% 95.1% -	$ 147,896 ( 30,125 ) 49,820 304,211 ( 413 ) ( 28,756 ) 146	$ 3,440,988 544,764 2,111,336 5,212,893 34,233 187,399 -	$ - - - - - - -	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 4

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2021		Investment Amounts Authorized by Investment Commission, MOEA				Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
NA		NA				NA

Note 1: The ways to invest in companies in Mainland China are classified into three types below. Mark the type of investment:

(1) Direct investment in China.

(2) Investment in China through a company registered in the third region.

(3) Other ways.

Note 2: The amount was calculated based on financial statements audited by a multinational accounting firm having a cooperative relationship with an accounting firm in Taiwan.

Note 3: Investment profit/loss among invested companies, investment company’s long term equity investment and equity net value among invested companies have all been cancelled during preparation of consolidated financial statement. Note 4: Dongguan Yeong Guan Casting Iron Factory Company and Ningbo Lu Lin Machine Tool Foundry Company disposed Qing Dao Rui Yao Building Material Co., Ltd. at 30 March, 2021.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2021

Table 10

Unit: in thousands of NTD

Serial No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Details of Transactions	Details of Transactions
				Financial Statement Account	Amounts	Payment Terms	% of Consolidated Sales or Assets (Note 3)
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2	Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Yeong Shang Casting Iron Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company Lu Lin Machine Tool Foundry Company	Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Shanghai No. 1 Machine Tool Foundry Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Account Receivable`－` Related Party Account Receivable`－` Related Party Other Account Receivable `－`Related Party Operating Revenue Operating Revenue Account Receivable`－` Related Party Account Receivable`－` Related Party Account Receivable`－` Related Party Account Receivable`－` Related Party Other Account Receivable `－`Related Party Other Account Receivable `－`Related Party Operating Revenue Operating Revenue Operating Revenue Operating Revenue	$ 36,532 282,134 581,968 340,300 868,772 96,581 200,699 60,046 14,723 152,321 448,623 36,970 414,723 386,783 260,610	Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement	-% 2% 3% 4% 10% 1% 1% - - 1% 2% - 5% 4% 3%

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Serial No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Details of Transactions	Details of Transactions
				Financial Statement Account	Serial No. (Note 1)	Company Name	Counter Party
3 3 3 3 3 3 3 4 4 4 4 5 6 6 7 7 7 7 7	Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Bright Steel Fine Machinery Company Dongguan Yeong Guan Mould Factory Company Dongguan Yeong Guan Mould Factory Company Dongguan Yeong Guan Mould Factory Company Dongguan Yeong Guan Mould Factory Company Yeong Chen Asia Pacific Company Yeong Guan Holdings Co., Limited Yeong Guan Holdings Co., Limited Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company	Yeong Chen Asia Pacific Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Yeong Guan Holdings Co., Limited Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Yeong Guan Energy Technology Group Co., Ltd Shanghai No. 1 Machine Tool Foundry Company Yeong Shang Casting Iron Company Yeong Chen Asia Pacific Company Yeong Shang Casting Iron Company Bright Steel Fine Machinery Company Yeong Chen Asia Pacific Company	3 3 3 3 3 2 3 3 3 3 3 3 2 1 3 3 3 3 3	Account Receivable`－` Related Party Account Receivable`－` Related Party Other Account Receivable `－`Related Party Operating Revenue Operating Revenue Operating Revenue Operating Revenue Account Receivable`－` Related Party Account Receivable`－` Related Party Operating Revenue Operating Revenue Operating Revenue Other Account Receivable `－`Related Party Other Account Receivable `－`Related Party Account Receivable`－` Related Party Account Receivable`－` Related Party Operating Revenue Operating Revenue Operating Revenue	$ 42,544 24,319 152,353 29,134 17,375 37,015 201,506 30,388 87,377 63,077 307,925 13,248 170,534 65,334 16,912 50,428 20,753 358,599 135,109	Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement Based on the parties’ agreement	- - 1% - - - 2% - - 1% 3% - 1% - - - - 4% 2%

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Note 1: 0 represents parent company, while serial numbers for subsidiaries start from 1 based on respective company categories.
Note 2: 1 represents transaction entered by parent company with subsidiary; 2 represents transaction entered by subsidiary with parent company; 3 represents transactions between subsidiaries.
Note 3: With respect to calculation for transaction amount’s percentage of consolidated total revenue or total assets, asset/liability items are based on ending balance’s percentage of consolidated total assets and liabilities, while income items are based on ending accumulated amount’s percentage over consolidated total revenue.
Note 4: All transactions on aforementioned appendix have already been written-off when consolidated financial statements are prepared.

This is the English translation. In case of discrepancies between the Chinese Text and the English translation, the Chinese text shall prevail.

Table 11

Yeong Guan Energy Technology Group Co., Ltd.

INFORMATION OF MAJOR SHAREHOLDERS December 31, 2021

Name of Major Shareholder		Shares
	Number of Shares	Percentage of Ownership (%)
Chang Hsien-Ming PJ Asset Management Co., Ltd. Jiayuan Investment Co.,Ltd.	11,093,540 10,759,739 9,591,315	10.02% 9.72% 8.67%

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

AI assistant

YGG — Annual Report 2021

51871_rns_2021-11-12_9a3cb8a2-9151-4c95-b942-2e49bc01aa83.pdf

YEONG GUAN ENERGY TECHNOLOGY GROUP CO., LTD. and Subsidiaries

Notice to Readers

§ Table of Contents §

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

matters.

The Occurrence of Operating Revenue

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries Consolidated Balance Sheets December 31, 2021 and 2020

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

Consolidated Income Statement

Yeong Guan Energy Technology Group Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows

Unit: in thousands of NTD

1. GENERAL

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Foreign Currencies

(6) Inventories

(8) Investment properties

(9) Goodwill

(10) Intangible Assets

1. Intangible assets acquired separately

2. Derecognition of intangible assets

1. Financial Assets

C. Investments in equity instruments at FVTOCI

(2) Impairment of financial assets

(3) Derecognition of financial assets

2. Equity Instruments

4. Convertible bonds

(13) Revenue Recognition

(15) Borrowing Costs

2. Deferred tax

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. Cash and Cash Equivalents

December 31, 2020

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE

9. Financial Assets Measured at Amortized Cost

10. Account Receivables

December 31, 2021

11. Inventories

12. Subsidiaries

Subsidiaries included in this consolidated financial statement

Note 1: The financial reports for 2021 and 2020 have been verified by CPA.

13. Property, Plant and Equipment

Assets used by the Group

14. Lease Arrangements

(3) Material leasing activities and terms

(4) Other Lease Information

15. Goodwill

16. Other Financial Assets

17. Loans

18. Corporate Bond Payable

19. Other Payables

20. Retirement Benefit Plans

21. Equity

(1) Share Capital

(2) Capital Surplus

(3) Retained earnings and dividend policy

(5)

Non-Controlling Interest

22. Revenue

23. Net Profit

Ratio

(6) Gain on Foreign Currency Exchange

24. Income Tax

2021

25. Earnings per Share

Net profit for the period

26. DISPOSAL OF SUBSIDIARIES

a. Consideration received from disposals

27. Capital Risk Management

28. Financial Instruments

YGG Annual Report 2021