YH - Audit Report / Information 2020

Stock Code: 2007

YIEH HSING ENTERPRISE CO., LTD. STANDALONE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 AND INDEPENDENT AUDITORS’ REPORT

Address: No. 369, Baomi Road, Gangshan District, Kaohsiung City Tel: (07) 611-1111

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Item	Page
1. Cover	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Standalone Balance Sheets	4
5. Standalone Statements of Comprehensive Income	5
6. Standalone Statements of Changes in Equity	6
7. Standalone Statements of Cash Flows	7
8.Notes to Standalone Financial Statements
(1) General Information	8
(2) The Authorization of the standalone Financial Statements	8
(3) Application of New and Amended Standards and Interpretations	8-11
(4) Summary of Significant Accounting Policies	11-23
(5) Critical Accounting Judgements, Estimates and Major Sources of Assumption Uncertainty	23-25
(6) Details of Significant Accounts	25-54
(7) Related Party Transactions	54-58
(8) Pledged Assets	58
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	58
(10) Significant Disaster Loss	58
(11) Significant Subsequent Events	58
(12) Others	58-68
(13) Supplementary disclosures
A. Significant transactions information	70-72
B. Information on investees	73
C. Information on investments in Mainland China	69
D. Information on main stockholder	75
(14) Segment information	76
9. Statements of major accounting items	77-105

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國富浩華聯合會計師事務所 Crowe (TW) CPAs 80250 高雄市苓雅區四維三路 6 號 27 樓之 1 27F-1., No.6, Siwei 3rd Rd., Lingya Dist., Kaohsiung City 80250, Taiwan Tel +886 7 3312133 Fax +886 7 3331710 www.crowe.tw

Independent Auditors’ Report

To the Board of Directors and Shareholders Yieh Hsing Enterprise Co., Ltd.

Opinion

We have audited the accompanying standalone balance sheets of Yieh Hsing Enterprise Co., Ltd. (the “Company") as of December 31, 2020 and 2019, and the standalone statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the standalone financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying standalone financial statements present fairly, in all material respects, the standalone financial position of the Company as of December 31, 2020 and 2019, and its standalone financial performance and its standalone cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and 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 standalone Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 standalone financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the standalone financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company's standalone financial statements for the year ended December 31, 2020 are stated as follows:

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Revenue recognition

Please refer to Note 4.17 to the standalone financial statements for the accounting policy on revenue recognition; Note 5.1.(1) for major accounting estimates and assumptions of revenue recognition; and Note 6.19 for the details of revenue recognition.

Description of key audit matter

Cause the company engages mainly in the manufacturing and selling of wire rods and steel processed, operating revenue is one of the major item in the financial report and becomes to the concerns for users of financial statements. Therefore, we determined the revenue recognition as a key audit matter.

How the matter was addressed in our audit

Our key audit procedures included analyzing the industry trends, income types, product lines, and customers’ two-year operating income status to confirm whether there are abnormal circumstances or centralized transactions and identify possible risks; understanding and testing the internal control procedure to assess the effectiveness of the relevant internal control for revenue recognition; conducting a sample test on the sales transactions of the top ten new customers to confirm the authenticity of the sales transaction and executing sales cutoff test.

Valuation of inventory

Please refer to Note 4.7 to the standalone financial statements for the accounting policy on inventories; Note 5.2.(4) for major accounting estimates and assumptions of inventories; and Note 6.4 for inventory valuation.

Description of key audit matter

The Company's inventory amounted to $1,351,327 thousand (net of $1,356,465 thousand of total inventory less $5,138 thousand of allowance for inventory valuation loss) as of December 31, 2020, which accounted for 10.44% of total assets. The inventory valuation is measured at the lower of inventory cost and net realizable value. Given that the valuation of net realizable value of inventory has a significant impact on critical judgements and estimates and since inventory valuation is dependent on the influence of frequently volatile fluctuations of international metal price, we have thus included this item in the key audit matters.

How the matter was addressed in our audit:

Our key audit procedures included obtaining management’s assessment data which determines the lower of inventory cost and net realizable value; sampling estimated selling prices to the most recent sales records; and assessing the appropriateness of management’s basis for estimating the net realizable value.

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 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 standalone 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 standalone 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in Our auditors' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financia1 statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethica1 requirements regarding independence, and to communicate with them all re1ationships 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 standalone financial statements for the year ended December 31, 2020 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.

The engagement partners on the audit resulting in this independent auditors’ report are Jen Yao Hsieh and Shu Man Tsai.

Crowe (TW) CPAs Kaohsiung, Taiwan Republic of China March 24, 2021

Notice to Readers

The accompanying financial statements are intended only to present the 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 financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying standalone 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 standalone financial statements shall prevail.

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YIEH HSING ENTERPRISE CO., LTD. STANDALONE BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Assets	Note	December 31,	2020	December 31,	2019
		Amount	%	Amount	%
CURRENT ASSETS Cash and cash equivalents Financial assets at fair value through profit or loss - current Accounts receivable, net Other receivables Other receivables - related parties Current tax assets Inventories Prepayments Other financial assets - current Total Current Assets NONCURRENT ASSETS Financial assets at fair value through profit or loss - noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Investments accounted for using equity method Property, plant and equipment Investment properties Deferred tax assets Refundable deposits Net defined benefit assets - noncurrent Total Noncurrent Assets TOTAL ASSETS Liabilities and Equity	6(1) 6(2) 6(3) 7 6(4) 8 6(2) 6(5) 6(6) 6(7) 6(8) 6(24) 6(14) 6(9) 6(10) 6(19) 7 6(11) 6(12) 6(13)	$208,795 125,475 193,100 10,363 72,695 8 1,351,327 162,096 333,902	2 1 1 - 1 - 10 1 3	$246,453 81,465 71,151 14,196 - 15 1,568,026 41,688 329,840	3 1 1 - - - 17 - 4
		2,457,761	19	2,352,834	26
		- 4,494 5,095,539 5,091,130 134,224 144,839 453 10,777	- - 40 39 1 1 - -	47,574 5,481 965,285 5,378,094 134,224 147,149 453 -	1 - 11 59 1 2 - -
		10,481,456	81	6,678,260	74
		$12,939,217	100	$9,031,094	100
		$2,226,188 219,854 64,123 58,751 1,462 - 117,590 12,375 72 229,554	18 2 - - - - 1 - - 2	$1,976,537 218,747 29,627 84,336 1,513 20,524 116,612 12,064 450 57,356	23 2 - 1 - - 1 - - 1
CURRENT LIABILITIES Short-term loans Short-term notes and bills payable Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Provisions - current Advance receipts Current portion of long-term loans Total Noncurrent Liabilities
		2,929,969	23	2,517,766	28

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Liabilities and Equity	Note	December 31,	2020	December 31, 2019	December 31, 2019
		Amount	%	Amount	%
NONCURRENT LIABILITIES Long-term loans Deferred tax liabilities Net defined benefit liability - noncurrent Other noncurrent liability - others Total Noncurrent Liabilities TOTAL LIABILITIES EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT Share Common stock Capital surplus Retained earnings Accumulated deficits Other equity Total Equity TOTAL LIABILITIES AND EQUITY	6(13) 6(24) 6(14) 6(6) 6(15) 6(16) 6(17) 6(18)	$2,582,483 2,204 - -	20 - - -	$2,810,456 - 4,124 958,926	31 - - 11
		2,584,687	20	3,773,506	42
		5,514,656	43	6,291,272	70
		5,306,516 5,286,080 (3,164,448) (3,587)	40 41 (24) -	5,306,516 132,599 (2,697,943) (1,350)	59 1 (30) -
		7,424,561	57	2,739,822	30
		$12,939,217	100	$9,031,094	100

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

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YIEH HSING ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

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

Note	Year Ended December 31	Year Ended December 31	Year Ended December 31
	2020		2019
	Amount	%	Amount	%
6(19) 6(4) 6(21) 6(22) 6(23) 6(24) 6(25) 6(26)	$5,589,791 (5,753,100)	100 (102)	$6,535,275 (6,787,922)	100 (104)
	(163,309) (80,633) (77,896)	(2) (2) (1)	(252,647) (93,007) (103,637)	(4) (1) (2)
	(158,529)	(3)	(196,644)	(3)
	(321,838)	(5)	(449,291)	(7)
	207 42,687 7,462 (132,092) (62,901)	- 1 - (3) (1)	423 2,724 (1,757) (132,325) (47,247)	- - (2) (1)
	(144,637)	(3)	(178,182)	(3)
	(466,475) (3,615)	(8) -	(627,473) (14,714)	(10) -
	(470,090)	(8)	(642,187)	(10)
	4,494 (987) 3,817 (899) (5,077)	- - - - -	27,611 473 (1,350) (5,523) (2,461)	- - - - -
	1,348	-	18,750	-
	($468,742)	(8)	($623,437)	(10)
	($0.89)		($1.21)

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

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YIEH HSING ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Item	Common Stock	Capital Surplus	Retained Earnings	Retained Earnings		Other EquityItem		Total Equity
			Legal Reserve	Unappropriated Earnings (Accumulated Deficits)	Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Gain (loss) on Hedginginstruments
BALANCE AT JANUARY 1, 2019 Net loss for 2019 Other comprehensive income (loss) for 2019, net of income tax Total comprehensive income (loss) for 2019 Changes in associates and joint ventures using the equity method Changes in ownership interests in subsidiaries BALANCE AT DECEMBER 31, 2019 Net loss for 2020 Other comprehensive income (loss) for 2020, net of income tax Total comprehensive income (loss) for 2020 Changes in associates and joint ventures using the equity method Disposal of investments/subsidiaries for using the equity method Changes in ownership interests in subsidiaries BALANCE AT DECEMBER 31, 2020	$5,306,516 - -	$110,252 - -	$ - - -	($2,077,842) (642,187) 22,107	$296 - (2,461)	$1,707 - (896)	$4 - -	$3,340,933 (642,187) 18,750
	-	-	-	(620,080)	(2,461)	(896)	-	(623,437)
	- -	- 22,347	- -	(21) -	- -	- -	- -	(21) 22,347
	5,306,516 - -	132,599 - -	- - -	(2,697,943) (470,090) 3,585	(2,165) - (5,077)	811 - 2,840	4 - -	2,739,822 (470,090) 1,348
	-	-	-	(466,505)	(5,077)	2,840	-	(468,742)
	- - -	15,621 5,129,745 8,115	- - -	- - -	- - -	- - -	- - -	15,621 5,129,745 8,115
	$5,306,516	$5,286,080	$-	($3,164,448)	($7,242)	$3,651	$4	$7,424,561

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

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YIEH HSING ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Item	Year Ended December 31	Year Ended December 31
	2020	2019
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjustments to reconcile profit and loss: Depreciation Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss of associates, subsidiaries and joint ventures Loss on disposal and retirement of property, plant and equipment Gain on disposal of investments Total adjustments to reconcile profit and loss Changes in operating assets and liabilities Net changes in operating assets: Decrease (increase) in financial assets at fair value through profit or loss Decrease (increase) in notes receivable Decrease (increase) in accounts receivables Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments Decrease (increase) in other operating assets Total net changes in operating assets Net changes in operating liabilities: Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payables Increase (decrease) in provisions Increase (decrease) in advance receipts Increase (decrease) in net defined benefit liability	($466,475) 304,644 (1,796) 132,092 (207) (375) 62,901 198 (1,633)	($627,473) 330,156 1,254 132,325 (423) (645) 47,247 615 (686)
	495,824	509,843
	10,035 - (121,949) (71,904) 216,699 (120,420) (10,407)	(656) 6 173,482 21,828 226,335 (19,731) -
	(97,946)	401,264
	34,496 (25,585) (20,575) 1,825 311 (378) -	5,696 (20,535) (85,297) (40,714) (6,507) 4 (43,697)

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Item	Year Ended December 31	Year Ended December 31
	2020	2019
Total net changes in operating liabilities Total net changes in operating assets and liabilities Total adjustments Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from (used in) operating activities 2.CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Increase in other financial assets Decrease in other financial assets Net cash generated from (used in) investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Decrease in short-term loans Increase in long-term loans Repayment of long-term loans Net cash generated from (used in) financing activities 4.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5.CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6.CASH AND CASH EQUIVALENTS, END OF YEAR	($9,906)	($191,050)
	(107,852)	210,214
	387,972	720,057
	(78,503) 207 375 (130,095) 7	92,584 423 645 (134,718) 10
	(208,009)	(41,056)
	- - 140 (17,878) (4,062) -	95,070 (47,535) 679 (50,441) - 18,658
	(21,800)	16,431
	249,651 - - (57,500)	- (612,971) 2,875,000 (2,178,000)
	192,151	84,029
	(37,658) 246,453	59,404 187,049
	$208,795	$246,453

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

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YIEH HSING ENTERPRISE CO., LTD. NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(Amounts in Thousands of New Taiwan Dollars, unless specified Otherwise)

1 GENERAL INFORMATION

Yieh Hsing Enterprise Co., Ltd. (the Company) was established in July 1978, and consolidated Yieh Yih Enterprise Co., Ltd. to form a single company. The company engages mainly in the manufacturing and trading of steel pipes, steel coil processed products, wire rods, the design, manufacture, and installation of the machinery, equipment, and environmental equipment systems, and the rental and sales business of the construction builder for residences and commercial. The company was listed in Taiwan Stock Exchange (hereafter referred to as TWSE) in October 1988.

The standalone financial statements are presented in the Company’s functional currency, New Taiwan Dollars.

2 THE AUTHORIZATION OF THE STANDALONE FINANCIAL STATEMENTS

The standalone financial statements were approved and authorized for issue by the Board of Directors on March 24, 2021.

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

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

New standards, interpretations and amendments endorsed by the FSC effective from Year 2020 are as below:

Year 2020 are as below:
New, Revised or Amended Standards and Interpretations Amendments to IFRS 3 “Definition of a Business” Amendments to IAS 1 and IAS 8 “Definition of Material” Amendments to IFRS 9, IAS 39 and IFRS 7“Interest Rate Benchmark Reform” Amendments to IFRS 16 “New Coronavirus Pneumonia Related Rent Concessions”	Effective Date Announced by IASB
	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

(Note) The FSC allows companies to apply the amendment in advance on January 1, 2020.

The Company has assessed the aforementioned standards and interpretations, and there’s no significant effect to the Company’s financial position and financial performance.

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3.2 Effect of new issuances or amendments to IFRSs issued by IASB but not yet endorsed:

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

Effective Date New, Revised or Amended Standards and Interpretations Announced by IASB Amendments to IFRS 4 “Extension of the Temporary June 25, 2020 (Effective Exemption from Applying IFRS 9” from issue date) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS January 1, 2021 (Note) 16 “Interest Rate Benchmark Reform - Phase 2”

(Note) The amendments are applicable for the annual reporting period beginning on or after January 1, 2021.

The Company has evaluated the aforementioned standards and interpretations, and there’s no significant effect to the Company’s financial position and financial performance.

3.3 The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC:

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

Effective Date Announced New, Revised or Amended Standards and Interpretations by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution To be determined by IASB of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as January 1, 2023 Current or Non-current” Amendments to IAS 16 “Property, Plant and EquipmentJanuary 1, 2022 (Note 2) Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contract - Cost of January 1, 2022 (Note 3) Fulfilling a Contract” Amendments to IFRS 3 “Reference to the Conceptual January 1, 2022 (Note 4) Framework” Annual Improvements to IFRS Standards 2018-2020 January 1, 2022 (Note 5) Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 Amendments to IAS 8 “Definition of Accounting January 1, 2023 Estimates”

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: Companies should apply these amendments retrospectively. However, 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 3: This amendment applies to contracts for which the entity has not yet fulfilled

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all its obligations on January 1, 2022.

Note 4: This amendment applies to business combinations whose acquisition date starts in the annual reporting period after January 1, 2022.
Note 5: The amendments to IFRS 9 are applicable to swap or modification of terms of financial liabilities incurred during the annual reporting period beginning on January 1, 2022. The amendment to IAS 41 is applicable to fair value measurement during the annual reporting period beginning after January 1, 2022. The amendments to IFRS 1 are retrospectively applied to the annual reporting period beginning after January 1, 2022.
A. Amendments to IAS 1 “Classification of Liabilities as Current or Noncurrent” The amendments clarify that when the Company judges whether liability is classified as noncurrent, the Company should assess whether the Company has the right to defer liquidation period after the reporting period at least twelve months. If the Company has the entity’s right on the end of the reporting period, liability must be classified as non-current whatever the Company expects whether executing the right or not. If the Company must follow certain condition to obtain the right to defer settlement of liability, the Company must have completed certain condition on the end of reporting period even if lender tests the Company whether following certain condition later. The aforementioned liquidation means that transferring cash, other economic resources or the Company’s equity instruments to counterparty to let liability wipe out. If liability clause will follow counterparty’s choice to liquidate liability by the Company’s equity instruments, this option must follow the regulations of IAS 32 “Financial Instruments: Presentation” to be recognized in equity individually and doesn’t have effect on the classification of liability.
B. Amendment to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”
The amendment stipulates that the sales price of the project produced in order to make property, plant and equipment reach the necessary location and state that can meet the expected operation mode of the management is not suitable as a cost reduction of the asset. The aforementioned items should be measured in accordance with IAS 2 “Inventory”, and the sales price and cost should be recognized in profit and loss in accordance with the applicable standards.
This amendment is applicable to factories, property and equipment that reach the necessary locations and conditions for the management's expected operation mode after January 1, 2021 (the beginning of the earliest expression period). When the Company initially applies the amendments, it will recognize the cumulative effect of the amendments applied initially as an adjustment to the opening balance of the retained earnings (or other components of equity, as appropriate) at the beginning of the earliest expression period, and re-edit the information during the comparison period.
C. Amendment to IAS 37 “Onerous Contract - Cost of Fulfilling a Contract” The amendment stipulates that when assessing whether the contract is onerous, “Cost of Fulfilling a Contract” should include the incremental cost of fulfilling a contract (for example, direct labor and raw materials) and the allocation of other costs directly related to fulfilling a contract (for example, the depreciation expenses of property, plant and equipment items used in fulfilling a contract are allocated).

The Company will recognize the cumulative effect on the retained earnings on the first

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application date when the amendment is first applied.

D. Amendment to IFRS 3“Reference to the Conceptual Framework”

The amendment is to update the index of the conceptual framework and add the requirement that the acquirer shall apply IFRIC 21“Levies”to determine whether there is an obligation to pay levies on the acquisition date.

E. Annual Improvements to IFRS Standards 2018-2020
The annual improvement in the IFRS 2018-2020 includes amendments to certain standards. Among them, the amendment of IFRS 9 “Expenses included in the “10%” test for the purpose of derecognize financial liabilities” is to assess whether there is a significant difference between the swap of financial liabilities or the modification of terms, When comparing cash flow projections of the new and old contract terms (including the net amount of fees charged for signing a new contract or modifying the contract), whether there is a 10% difference, the aforesaid fees collected should only include the payment between the borrower and the lender paid for.
F. Amendments to IAS 1 ‘’Disclosure of Accounting Policies’’
This amendment is to improve the disclosure of accounting policies and provide more useful information for major users of financial statements.
G. Amendments to IAS 8 ‘’Definition of Accounting Estimates’’ This amendment defines accounting estimates as the monetary number of financial statements subject to measurement uncertainty, and provides further explanations and examples to help companies distinguish between changes in accounting policies and changes in accounting estimates.

As of the date the standalone financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes the evaluation.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

4.1 Statement of Compliance

The accompanying standalone financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

4.2 Basis of Preparation

(1) Except for the following items, the standalone financial statements have been prepared under the historical cost convention:
A. Financial assets and financial liabilities at fair value through profit or loss (including derivative instruments).
B. Financial assets and liabilities measured at fair value through other comprehensive income.
C. Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

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(2) The preparation of the standalone financial statements in conformity with the IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the standalone financial statements are disclosed in Note 5.
(3) When preparing the standalone financial statements, the Company account for subsidiaries, associates and joint ventures by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the standalone financial statements, the differences of the accounting treatment between the standalone basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures in the standalone financial statements.

4.3 Foreign Currencies

(1) Foreign currency transactions and balance
A. Foreign currency transactions are translated into the functional currency using the exchange rates on the trade dates or measurement date. Therefore, foreign exchange differences resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
C. 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 year except for exchange differences arising on 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 in terms of historical cost in foreign currencies are not retranslated.
(2) Translation of foreign operations
A. The operating results and financial position of all the Company’s subsidiaries, associates and joint ventures that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- (c) All resulting exchange differences are recognized in other comprehensive income.
B. When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are

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proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

4.4 Classification of Current and Noncurrent Assets and Liabilities

(1) Assets that meet one of the following criteria are classified as current assets:
A. Assets that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
B. Assets held primarily for trading purposes;
C. Assets that are expected to be realized within 12 months after the balance sheet date;
D. Cash and cash equivalents, excluding those that are restricted, or to be exchanged or used to settle liabilities at least twelve months after the balance sheet date.

Otherwise, they are classified as non-current assets.

(2) Liabilities that meet one of the following criteria are classified as current liabilities:
A. Liabilities that are expected to be settled within the normal operating cycle;
B. Assets held primarily for trading purposes;
C. Liabilities that are expected to be settled within 12 months after the balance sheet date (Even if a long-term refinancing or re-arrangement of payment agreements is completed after the balance sheet date and before the issuance of the financial report is approved, it is classified as current liabilities);
D. Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Otherwise, they are classified as non-current liabilities.

4.5 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including the original maturity of the time deposits within three months).

4.6 Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. 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.

(1) Financial assets

The Company adopts trade-date accounting to recognize and derecognize financial assets.
A. Category of financial assets and measurement

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Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost, and investments in equity instruments at FVTOCI.

a. Financial asset at FVTPL
Financial asset is classified as at FVTPL when the financial asset is mandatorily classified or it is designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria. Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss (excluding relevant dividend or interest income). Fair value is determined in the manner described in Note 12(3).
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 assets give rise on specified date to cash flow that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss. Except for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

  - (a) Purchased or originated credit-impaired financial assets: for those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

  - (b) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Company shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

c. Investments in equity instruments at FVTOCI
On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation 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, they will be transferred to retained earnings.

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

B. Impairment of financial assets
a. At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.
b. The Company always recognizes lifetime Expected Credit Loss (i.e., ECL) for accounts receivables. For other financial assets, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equaling to 12-month ECL.
c. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
d. The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account. However, the allowance for investment in debt instruments measured at FVOCI is recognized in other comprehensive gains and losses, and the carrying amount is not reduced.

C. Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

a. The contractual rights to receive cash flows from the financial asset expire.
b. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.
c. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of financial asset at amortized cost in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of investments in debt instruments measured at FVTOCI, the difference between the financial asset’s carrying amount and the sum of the consideration received and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of equity instruments at fair

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value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

(2) Equity instruments

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

(3) Financial liabilities
A. Subsequent measurement
- Financial liabilities other than those held for trading purposes and undesignated as at fair value through profit or loss are subsequently measured at amortized cost at the end of each reporting periods.
B. Derecognition of financial liabilities
- When the Company derecognizes financial liabilities, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

4.7 Inventories

Inventories, under a perpetual system, are measured at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item-by-item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

4.8 Investments accounted for using equity method / subsidiaries and associates

(1) Subsidiary are all entities controlled by the Company (including structured entities). The Company controls an entity when the Company is exposed, or variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(2) Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
(3) The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equal or exceeds its interest in the subsidiary, the Company continues to recognize its share in the subsidiary’s loss proportionately.
(4) Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power

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of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost.

(5) The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
(6) Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
(7) In the case where an associate issues new shares and the Company does not subscribe or proportionately acquire the new shares, which results in a change in the Company’s ownership percentage of the associate while maintains significant influence on the associate, then “Capital surplus” and “Investments accounted for using under the equity method” shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
(8) When the Company disposes of its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
(9) According to “Regulations Governing the Preparation of Financial Statements by Securities Issuers”, profit for the year and other comprehensive income for the year reported in the standalone financial statement, shall equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the standalone financial statements, equity reported in the standalone financial statements shall equal to equity attributable to owners of parent reported in the standalone financial statements.

4.9 Property, Plant and Equipment

(1) Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
(2) Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is

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derecognized. All other repair and maintenance are recognized in profit or loss as incurred.

	derecognized. All other repair and maintenance are recognized in profit or loss as incurred.
(3)	Land is not depreciated. Other property, plant and equipment apply cost model
	and are depreciated using the straight-line method to allocate their cost over their
	estimated useful lives. The assets’ residual values, useful lives and depreciation
	methods are reviewed, and adjusted if appropriate, at each end of reporting year.
	If expectations for the assets’ residual values and useful lives differ from
	previous estimates or the patterns of consumption of the assets’ future economic
	benefits embodied in the assets have changed significantly, any change is
	accounted for as a change in estimate under IAS 8, ‘Accounting Policies,
	Changes in Accounting Estimates and Errors’, from the date of the change.
	The estimated useful lives of property, plant and equipment are as follows:
	Buildings
	Main plants 41 to 56 years
	Other accessory equipment 5 to 10 years
	Machinery and Transportation equipment 2 to 36 years
	Other equipment 3 to 41 years
	Equipment spare parts depreciated by actual wear

(4) An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.10 Leases

The Company assesses whether the contract is (or includes) a lease at the date of the contract. For a contract that includes a lease component and one or more additional lease or non-lease components, the Company will allocate the consideration to the lease component base on the individual price of each lease component and the aggregated individual price of the non-lease component.

(1) The Company as lessee

Except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases at the inception of lease.

Right-of-use asset

The right-of-use asset is initially measured at cost (including the initial measurement amount of the lease liability, the payments less incentives, initial direct costs and the estimated recover cost), the subsequent measurement is based on the cost less accumulated depreciation and accumulated impairment loss, and adjusting the amount of re-measures of lease liabilities.

The right-of-use asset recognized depreciation is using the straight-line basis from the date of the lease until the expiration of the useful life or the expiration of the lease term, the depreciation is provided that the title of the underlying asset will be acquired at the end of the lease period or, if the cost of the right-ofuse asset reflects the execution of the purchase option.

Lease liability

The lease liability is initially measured by the present value of the lease payment

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(including fixed payment, substantive fixed payment, change in lease payment depending on the index or rate, etc.). If the implied interest rate on the lease is easy to determine, the lease payment is discounted using that interest rate. If the interest rate is not easy to determine, the lessee's increase borrowing rate is used. If the lease period, the evaluation of the purchase choice, the amount of expected to be paid under the residual value guarantee or the change in the index or rate used to determine the lease payment result in a change in the future lease payment, the Company will measure the lease liability and adjust the right to use assets relatively. If the carrying amount has been reduced to zero, the remaining amount will recognize in the profit and loss. Lease liabilities are presented in a single-line project on the standalone balance sheet.

Lease payments in lease agreements that do not depend on the index or rate are recognized as expenses in the period in which they occur.

(2) The Company 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.

Under finance leases, the lease payments comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives payable. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s net investment outstanding in respect of 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. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

4.11 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes) and include land held for a currently undetermined future use is regarded as holding for capital appreciation.

Investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

Investment properties under construction are stated at cost less accumulated impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use.

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

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4.12 Impairment of non-financial assets

The Company assesses at the end of reporting period the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. When the indication of impairment loss recognized in prior years for an asset other than goodwill no longer exists, the impairment loss is reversed to the extent of the loss previously recognized in profit or loss.

4.13 Provisions

Provisions (including short-term employee benefits, and onerous contracts) are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date. The discount rate (or rates) shall be a pre-tax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as interest expense. Provisions are not recognized for future operating losses.

4.14 Employee benefits

Short-term employee benefits

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

Pensions

(1) Defined contribution plans

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

(2) Defined benefit plans
a. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior period. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, the net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate is determined by using the interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the defined benefit plans.
b. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

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c. Past-service costs are recognized immediately in profit or loss.

Employees’ compensation and directors’ and supervisors’ remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligations and those amounts can be reliably estimated. Any difference between the amount accrued and the amount actually distributed is accounted for a change in accounting estimate.

Termination benefits

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

4.15 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are recognized in equity as a deduction from the proceeds.

4.16 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
(2) The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
(3) Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

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(4) Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.
(5) Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.
(6) A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

4.17 Revenue Recognition

The Company recognizes revenue from contracts with customers in accordance with the principles and steps as stated below:

(1) Identify the contract with the customer;
(2) Identify the performance obligations in the contract;
(3) Determine the transaction price;
(4) Allocate the transaction price to the performance obligations in contracts; and
(5) Recognize revenue upon satisfaction of performance obligations.

The Company does not adjust the transaction price in a contract for the effects of a significant financing component, if the period between when the customer pays for the goods or services and when the entity transfers the goods or services is one year or less.

(1) Sale of goods

Sales revenue from goods mainly comes from the sales of galvanized steel coils and painted steel coils. Sales revenue is recognized when the control of goods is passed to customers. Since customers have obtained the right to set the price and make use of the goods and assumed the responsibility for resale and risks of obsolescence, the Company recognizes revenue and accounts receivable at such time point, presented as the net amount after deducting sales returns, discounts and allowance.

When supplying materials for processing, control of the processed goods is not transferred, in which case it is not recognized as revenue.

(2) Revenue from leases, dividends and interests
A. The rental revenue shall be recognized as revenue in the duration of the lease based on straight-line method.
B. Dividend revenue from investments is recognized when the rights of shareholders to receive payment are established, provided that the economic profits arising from such transaction are highly probable to flow to the Company and the amount of such benefits can be reliably measured.
C. Interest revenue is recognized based on outstanding principal and applicable

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effective interest according to passage of time on an accrual basis.

4.18 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of those assets until substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

To the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

Except for those qualifying capitalization, all other borrowing costs are recognized as an expense in profit or loss as incurred.

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND MAJOR SOURCES OF ASSUMPTION UNCERTAINTY

The company has considered the economic impact of the COVID-19 epidemic into the major accounting estimates, and will continue in evaluating basic assumptions and estimates. If the amendment just only affects the current period, it will be recognized in current period; and if it will affect the current period and future periods, that will be recognized in current period and future periods.

In the preparation of the standalone financial statements, the critical accounting judgments the Company has made and the major sources of estimation and assumption uncertainty are described as follows:

5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

The Company follows IFRS 15 to determine if it controls the specified good or service before that good or service is transferred to the customer, and the Company is acting as a principal or an agent in that transaction. When the Company acts as an agent, revenue is recognized on a net basis.

The Company acts as a principal as that it meets one of the following situations:

A. The Company gains control over the goods from the other party before transferring goods to customers.
B. The Company controls the right of providing service by the other party in order to control the ability of the party to provide service to customers.
C. The Company gain control over goods or service from the other party in order to combine with other goods or services to provide specific goods or services to customers.

The indicators (not limited to) which assist making judgment on whether the Company controls the goods or services before transferring goods or services to customers:

A. The Company has primary responsibilities for the goods or services it provides;
B. The Company bears inventory risk before transferring the specific goods or services to customer, or after transferring the control to customer (for example, if the customer has the right to return).
C. The Company has the discretion to set prices.

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5.2 Critical accounting estimates and assumptions

(1) Impairment assessment of tangible and intangible assets

In the course of impairment assessments, the Company determines, based on how assets are utilized and relevant industrial characteristics, the useful lives of assets and the future cash flows of a specific company of the assets. Changes in economic circumstances or the Company’s strategy might result in material impairment of assets in the future.

(2) Impairment assessment of investments accounted for using the equity method

The Company assesses the impairment of an investment accounted for using the equity method once there is any indication that it might have been impaired and it carrying amount cannot be recoverable. The Company assesses the recoverable amounts of an investment accounted for using the equity method based on the present value of the Company’s share of expected future cash flows of the investee or the present value of expected cash dividends receivable from the investee and expected future cash flows from disposal of the investment, analyzing the reasonableness of related assumptions.

(3) Realizability of deferred tax assets

Deferred assets are recognized only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilized. The Company’s management assesses the realizability of deferred tax assets by making critical accounting judgements and significant estimates of expected future revenue growth rate and gross profit rate, the tax exemption period, available tax credits, and tax planning, etc. Changes in global economic environment, industrial environment, and laws and regulations might result in material adjustments to deferred tax assets.

(4) Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value; thus, the Company estimates the net realizable value of inventory for obsolescence and unmarketable items on balance sheet date due to the rapid technology changes and writes down inventories to the net realizable value.

(5) Calculation of accrued pension obligations

When calculating the present value of defined pension obligations, the Company uses judgments and actuarial assumptions to determine related estimates, including discount rates and future salary increase rate. Changes in these assumptions may have a significantly impact on the carrying amount of defined pension obligations.

(6) Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

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(7) Process of fair value measurement and evaluation

When the assets and liabilities at fair value with no active market, the Company determines whether to use outside appraisal and using proper evaluation techniques based on related regulation or its own judgment.

If the Level 1 input value is not available while evaluating, the Company refers to the analysis of the investee’s financial position and operating outcome, recent trading price, quotes on non-active market of same equity instrument, quotes on active market of similar equity instrument and evaluation multiples of comparable companies. If the future input value is different from expectation, the fair value might change. The Company updates input values quarterly according to the market status in order to monitor if the measurement of fair value is appropriate.

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

1 Cash and cash equivalents
Item Cash on hand Checking account Demand deposits Total	December 31
	2020 $230 190,472 18,093 $208,795	2019
		$230 222,338 23,885
		$246,453

1.The Company have good credit quality in financial institutions, and the Company's transactions with a number of financial institutions to diversify credit risk that are unlikely to be expected to default.
2.The Company had no cash and cash equivalents pledged to others.

6.2 Financial assets at fair value through profit or loss

Item Financial assets-current Non-derivative financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stock Total Financial assets-noncurrent Non-derivative financial assets mandatorily measured at FVTPL Domestic unlisted preferred stock	December 31	December 31
	2020 $12,645 112,830 $125,475 $-	2019
		$17,322 64,143
		$81,465
		$47,574

1.The Company recognized in profit or loss is $3,429 thousand and ($568) thousand for the year ended December 31, 2020 and 2019.
2.The Company had no financial assets at fair value through profit or loss pledged to others.

－25－

3.Please refer to Note 12(2) for credit risk management and evaluation method.

6.3 Accounts receivable, net

Accounts receivable, net
Item At amortized cost Accounts receivable Less: Loss allowance Net	December 31
	2020 $193,100 - $193,100	2019
		$71,151 -
		$71,151

A. Account receivables are created by the Company by selling goods, and the average collection period is 7~26 days. The Company’s accounts receivables all meet the credit standards stipulated based on the counterparties' industrial characteristics, operation scale and profitability.
B. The Company provided accounts receivable as collateral for the borrowings. Please refer to Note 8 for the information.
C. The Company had sold part of accounts receivables to the banks without recourse. Due to transferring the risks and rewards when the Company sold the accounts receivable, it was delisted from the balance sheet. Please refer to Note 12.4 for the information.
D. Please refer to Note 7.3.3 for related party transactions.
E. The Company applies the simplified approach to provisions for expected credit losses prescribed by IFRS 9, which permits the use of a lifetime expected credit losses provision for trade receivables. The expected credit losses on trade receivables are estimated by reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend. which receivables are past due. As the Company’s historical credit losses experience does not show significantly different loss patterns for different customer segments, the provision for losses based on past due status of receivables is not further distinguished between the Company’s different customer base.

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

The Company measures the allowance for notes receivable, and accounts receivable to the preparation matrix (including related parties)：

December 31, 2020 Not past due	Expected credit loss rate 0%	Gross carrying amount $193,100	Allowance for doubtful accounts (ECL) $-	Amortized cost
				$193,100

－26－

December 31, 2019 Not past due	Expected credit loss rate 0%	Gross carrying amount $71,151	Allowance for doubtful accounts (ECL) $-	Amortized cost
				$71,151

As of December 31, 2020 and 2019, the above provision has already taken into consideration collateral or other credit enhancement. The other credit enhancement (e.g., L/C) possessed by above receivables were $189,454 thousand, and $60,450 thousand, respectively.

6.4 Inventories and operating cost

Inventories and operating cost
Item Raw materials Supplies Work in progress Finished goods By-products and scraps Subtotal Less: Valuation allowance Net 1.Inventory gains (losses) recognized as Item	December 31
	2020 2019 $694,559 $746,814 146,852 149,242 28,434 39,462 483,762 686,587 2,858 2,498 $1,356,465 $1,624,603 (5,138) (56,577) $1,351,327 $1,568,026 cost of sales are as follows: Year Ended December 31 2020 2019 $5,561,380 $6,367,944 158,262 336,470 84,897 50,207 (51,439) 40,592 - (7,291) $5,753,100 $6,787,922		2019
			$746,814 149,242 39,462 686,587 2,498
			$1,624,603 (56,577)
			$1,568,026
		2020 $5,561,380 158,262 84,897 (51,439) - $5,753,100		2019
Cost of inventories sold Processing cost Unallocated manufacturing overhead Loss on inventory valuation (recovery gain) Loss on irrevocable contracts (recovery gain) Total operating cost				$6,367,944 336,470 50,207 40,592 (7,291)
				$6,787,922

2.The Company recognized the inventory valuation loss (gain) of ($51,439) thousand and $40,592 thousand for the years ended December 31, 2020 and 2019, respectively, due to net realized value recovered as result of market stabilize, and the write-down to the net realizable value.

3.Please refer to 6.12 for loss recognization on irrevocable purchase contracts.

4.The Company had no inventory pledged as collateral.

－27－

6.5 Financial assets at fair value through other comprehensive income or loss - noncurrent

noncurrent
Item Equity instruments - noncurrent Domestic unlisted stocks Subtotal Valuation adjustment Total	December 31
	2020 $1,650 $1,650 2,844 $4,494	2019
		$1,650
		$1,650 3,831
		$5,481

1.The Company invests in domestic listed and unlisted stocks in accordance with its medium/long-term strategies and expects to make a profit through long-term investment. Management of the Company believes that it is not consistent with the afore-mentioned long-term investment planning if the short-term fair value changes of such investment are presented in profit or loss. Therefore, the Company elects to designate such investment as to be measured at FVTOCI.
2.For related credit risk management and means of assessing, please refer to Note 12(2).

6.6 Investments accounted for using equity method

Investee Subsidiaries: Great Emperor Hotel Corp. Kings Garden International Corp. Subtotal Less: offsetting unrealized gains and losses resulting from saling Less: transferred to other noncurrent liabilities - others Subtotal Associates: Associates with significance: Great Emperor Hotel Corp. Kings garden International Corp. Eliter International Corp. E-Da Development Corp. Associates without significance Subtotal Total	December 31	December 31
	2020 $ - - $ - - - $- $2,076,113 2,077,673 598,851 234,844 108,058 $5,095,539 $5,095,539	2019
		$1,998,156 2,011,379
		$4,009,535 (4,968,461) 958,926
		$-
		$ - - 602,412 251,625 111,248
		$965,285
		$965,285

1. Subsidiaries:

(1) For information of the Company’s subsidiaries, please refer to Note 4.3 of the Company’s Year 2020 consolidated financial statements.

－28－

(2) Investments accounted for using equity method and the Company ’ s share of profit or loss and share of other comprehensive income are calculated based on audited financial statements,
(3) The board of directors of Kings garden International Corp. resolved on February 24, 2020 to issued 7,000 thousand ordinary shares by cash for raise business capital. The par value of each share was $10, and amount of increase in common stock was $70,000 thousand. The issue price of per share was $10.3, and amount of raising business capital was $72,100 thousand (the capital increase record date was set on March 11, 2020). Due to the Company abandoned the cash capital increase subscription and negotiated the full subscription by parent company. Thus, the shareholding rate dropped from 50.71% to 49.87%, and lost control. According to the Q&A released by Accounting Research and Development Foundation on October 30, 2018, the amount of $2,606,470, that included unrealized benefits from sale of real estate to Kings garden International Corp. previously and unrealized internal gains and losses were $2,522,985 and $83,485, were converted to "Capital Surplus -Unrealized Gains and Losses of Group Transactions".
(4) Due to the Company didn ’ t subscribe Great Emperor Hotel Corp. increased the capital by cash in April, 2020, the shareholding ratio to drop from 58.81% to 53.56%. The board of directors of Great Emperor Hotel Corp. resolved on July 14, 2020 to issued 70,000 thousand ordinary shares by cash for raise business capital. The par value of each share was $10, and amount of increase in common stock was $700,000 thousand. The issue price of per share was $10.3, and amount of raising business capital was $721,000 thousand (the capital increase record date was set on October 30, 2020). Due to the Company abandoned the cash capital increase subscription and negotiated the full subscription by parent company. Thus, the shareholding rate dropped from 53.56% to 45.44%, and lost control. According to the Q&A released by Accounting Research and Development Foundation on October 30, 2018, the amount of $2,523,275, that included unrealized benefits from sale of real estate to Great Emperor Hotel Corp. previously and unrealized internal gains and losses were $2,445,476 and $77,799, were converted to "Capital Surplus - Unrealized Gains and Losses of Group Transactions".
(Note) The company sold land lot No. 16, 17 and 18 at Long Dong Section, Gushan District, Kaohsiung City to subsidiaries in December 2012. The unrealized gain from the sale of land was about $4,968,461 thousand.
2.Associates:
(1) The Company held directly or indirectly over 20% ownership of Eliter International Corp., E-Da Development Corp. and other Associates through the Company’s Parent. Therefore, the investees are accounted for under the equity method.

－－ 29

(2) Major associates of the Company are as follows:

CompanyName Great Emperor Hotel Corp. Kings Garden International Corp. Eliter International Corp. E-Da Development Corp.	ShareholdingPercentage	ShareholdingPercentage
	December 31,2020 45.44% 49.87% 7.42% 5.94%	December 31,2019
		- - 7.42% 5.94%

Please refer to Table 4 in Note 13 for the nature of business, main operation location and countries of registration of the associates listed above.

(3) The summarized financial information in respect of the Company’s major associates is as follows:

A. Balance Sheets

associates is as follows: A. Balance Sheets
Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity (Note) Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate	Great Emperor Hotel Corp.
	December 31, 2020
	$509,747 11,782,790 347,758 7,376,242
	$4,568,537
	$2,076,113 -
	$2,076,113
	Kings Garden International Corp.
	December 31, 2020
	$359,211 10,957,053 133,296 6,807,773
	$4,375,195
	$2,077,673 -
	$2,077,673

(Note) Including the parent company subscribed the un-registered capital increased by cash was $209,066 thousand.

－30－

Eliter International Corp.

	December 31, 2020	December 31, 2019	December 31, 2019
Current assets	$7,219,188		$6,971,622
Noncurrent assets	4,963,316		5,195,803
Current liabilities	2,693,464		1,603,830
Noncurrent liabilities	1,273,422		2,299,960
Equity	$8,215,618		$8,263,635
Share in associates’ net assets	$609,366		$612,927
Unrealized gain (loss) from transactions with associates	(10,515)		(10,515)
Carrying amount of associate	$598,851		$602,412
	E-Da Development		Corp.
	December 31,2020	December 31,2019
Current assets	$605,393		$867,776
Noncurrent assets	7,974,851		8,123,713
Current liabilities	886,455		1,021,390
Noncurrent liabilities	3,741,418		3,735,304
Equity	$3,952,371		$4,234,795
Share in associates’ net assets	$234,844		$251,625
Unrealized loss from transactions
with associates	-		-
Carrying amount of associate	$234,844		$251,625
B. Statements of Comprehensive Income
	Great Emperor
	Hotel Corp.
	2020
Operating revenue		$5,602
Net loss	($42,689)
Other comprehensive income (loss) (net after tax)			-
Total comprehensive loss	($42,689)
Dividends received from associate		$	-

－31－

Kings Garden International Corp. 2020 Operating revenue $ - Net loss ($37,389) Other comprehensive income (loss) (net after tax) - Total comprehensive loss ($37,389) Dividends received from associate $- Eliter International Corp. 2020 2019 Operating revenue $267,888 $229,538 Net income (loss) ($66,028) ($144,372) Other comprehensive income (loss) (net after tax) 18,011 (5,902) Total comprehensive loss ($48,017) ($150,274) Dividends received from associate $ - $ - E-Da Development Corp. 2020 2019 Operating revenue $704,305 $795,002 Net loss ($322,389) ($294,609) Other comprehensive income (loss) (net after tax) 39,953 (14,958) Total comprehensive loss ($282,436) ($309,567) Dividends received from associate $ - $ - (4) Shares of individually insignificant associates of the Company are summarized as follows: Year Ended December 31 2020 2019 Share of : Net income $1,921 $2,367 Other comprehensive income (loss) (net after tax) (4,970) (2,503) Total comprehensive income (loss) ($3,049) ($136)	Kings Garden International Corp. 2020 Operating revenue $ - Net loss ($37,389) Other comprehensive income (loss) (net after tax) - Total comprehensive loss ($37,389) Dividends received from associate $- Eliter International Corp. 2020 2019 Operating revenue $267,888 $229,538 Net income (loss) ($66,028) ($144,372) Other comprehensive income (loss) (net after tax) 18,011 (5,902) Total comprehensive loss ($48,017) ($150,274) Dividends received from associate $ - $ - E-Da Development Corp. 2020 2019 Operating revenue $704,305 $795,002 Net loss ($322,389) ($294,609) Other comprehensive income (loss) (net after tax) 39,953 (14,958) Total comprehensive loss ($282,436) ($309,567) Dividends received from associate $ - $ - (4) Shares of individually insignificant associates of the Company are summarized as follows: Year Ended December 31 2020 2019 Share of : Net income $1,921 $2,367 Other comprehensive income (loss) (net after tax) (4,970) (2,503) Total comprehensive income (loss) ($3,049) ($136)	Kings Garden International Corp. 2020 Operating revenue $ - Net loss ($37,389) Other comprehensive income (loss) (net after tax) - Total comprehensive loss ($37,389) Dividends received from associate $- Eliter International Corp. 2020 2019 Operating revenue $267,888 $229,538 Net income (loss) ($66,028) ($144,372) Other comprehensive income (loss) (net after tax) 18,011 (5,902) Total comprehensive loss ($48,017) ($150,274) Dividends received from associate $ - $ - E-Da Development Corp. 2020 2019 Operating revenue $704,305 $795,002 Net loss ($322,389) ($294,609) Other comprehensive income (loss) (net after tax) 39,953 (14,958) Total comprehensive loss ($282,436) ($309,567) Dividends received from associate $ - $ - (4) Shares of individually insignificant associates of the Company are summarized as follows: Year Ended December 31 2020 2019 Share of : Net income $1,921 $2,367 Other comprehensive income (loss) (net after tax) (4,970) (2,503) Total comprehensive income (loss) ($3,049) ($136)
	2020 $1,921 (4,970) ($3,049)	2019 $2,367 (2,503) ($136)

(4) Shares of individually insignificant associates of the Company are summarized as follows:

(5) Associates of the Company with quoted prices in emerging market are as follow: December 31 2020 2019 Yieh United Steel Corp. $20,848 $14,670	(5) Associates of the Company with quoted prices in emerging market are as follow: December 31 2020 2019 Yieh United Steel Corp. $20,848 $14,670	(5) Associates of the Company with quoted prices in emerging market are as follow: December 31 2020 2019 Yieh United Steel Corp. $20,848 $14,670
	2020 $20,848	2019
		$14,670

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(6) The calculation of the amount of investment accounted for using equity method and share of income or loss and other comprehensive income (loss) were based on the audited financial report.
As of December 31, 2020 and 2019, no investments under equity method were pledged as collateral by the Company.

6.7 Property, Plant and Equipment

Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment
Item			Machinery
				2020
				$1,075,876 1,783,263 8,634,340 430,661 115,831
				$12,039,971 (6,802,474) (146,367)
				$5,091,130
				Other equipment (Note)	Equipment to be inspected and construction in progress
	$1,075,876 - - -	$1,783,263 - - -	$8,634,296 1,494 (1,450) -	$434,730 9,704 (13,773) -	$109,151 6,680 - -
	$1,075,876	$1,783,263	$8,634,340	$430,661	$115,831
	$ - - - -	$835,742 37,431 - -	$5,474,881 246,262 (1,450) -	$241,077 20,951 (13,575) -	$107,522 - - -

－33－

Cost	Land	Buildings and structures	Machinery	Other equipment (Note)	Equipment to be inspected and construction in progress	Total
	$1,075,876 - - -	$1,783,156 - - 107	$8,628,382 3,355 (521) 3,080	$402,429 37,983 (10,590) 4,908	$111,078 6,168 - (8,095)	$12,000,921 47,506 (11,111) -
Balance, January 1, 2019 Additions Disposals Reclassifications Balance, December 31, 2019 Accumulated depreciation and impairment
	$1,075,876	$1,783,263	$8,634,296	$434,730	$109,151	$12,037,316
	$ - - - -	$798,312 37,430 - -	$5,206,066 269,231 (416) -	$227,662 23,495 (10,080) -	$107,522 - - -	$6,339,562 330,156 (10,496) -
Balance, January 1, 2019 Depreciation Disposals Provision for (reversal of ) impairment loss Balance, December 31, 2019
	$ -	$835,742	$5,474,881	$241,077	$107,522	$6,659,222

(Note): Including transportation equipment, office equipment and other equipment.

1.Reconciliations of current additions and the acquisition of property, plant and equipment in statement of cash flows were as follows:

Item Increase in property, plant and equipment Increase/decrease in payables for purchase of equipment Cash paid for acquisition of property, plants and equipment	Year Ended December 31	Year Ended December 31
	2020 $17,878 - $17,878	2019
		$47,506 2,935
		$50,441

2.Please refer to Note 6.23 for details of the amount of capitalized borrowing costs.
3.Impairment losses for property, plant and equipment recognized for 2020 and 2019 were both $0 thousand.
4.For the information about property, plant and equipment pledged as collateral, please refer to Note 8 for details.
5.The company’s land amounting to both $69,792 thousand as of December 31 2020 and 2019 is unable to be registered under the name of the Company due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

－34－

6.8 Investment properties

nvestment properties
Item Land Total cost Less: Accumulated Impairment Total Cost Balance, January 1 Additions Balance, December 31 Accumulatedimpairment Balance, January 1 Impairment (reversed) Balance, December 31	December 31
	2020 2019 $202,233 $202,233 $202,233 $202,233 (68,009) (68,009) $134,224 $134,224 Land	2019
		$202,233
		$202,233 (68,009)
		$134,224
	2020 $202,233 - $202,233 $68,009 - $68,009	2019
		$202,233 -
		$202,233
		$68,009 -
		$68,009

1.Rental revenue and direct operating expenses of investment properties:

Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period	Year Ended December 31	Year Ended December 31
	2020 $1,332 $80 $250	2019
		$1,331
		$83
		$261

2.As of December 31, 2020 and 2019, the fair values of investment properties held by the Company were $301,614 thousand, respectively, which were based on evaluation appraised by independent appraisers as of December, 2019. Such evaluation adopted the comparative approach by reference to the market evidence similar to the real estate transaction prices. Those are Level 3 fair value inputs. Please refer to Note 12(3). The Company believes that there would not be any material fluctuation in the fair value of such investment properties after their appraisal. Appraisal will be taken place every two years on the investment properties.
3.Please refer to Note 8 for investment properties pledged to others.
4.The company’s land amounting to both $8,987 thousand as of December 31 2020 and 2019 is unable to be registered under the name of the Company due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

－35－

6.9 Short-term Loans

Short-term Loans
Type of Loan Credit for material purchase Mortgage loans Credit loans Total Type of Loan Credit for material purchase Mortgage loans Credit loans Total	December 31, 2020
	Amount Interest Rate $1,615,346 1.332%-2.55% 30,000 1.81% 580,842 0.846%-2.090% $2,226,188 December 31, 2019	Interest Rate
	Amount $1,421,537 30,000 525,000 $1,976,537	Interest Rate
		1.92%-2.60% 2.09% 2.095%-2.34%

Some investment properties, demand deposits, accounts receivable, and certificate deposit are pledged as collateral for short-term loans. Please refer to Note 8 for details.

6.10 Short-term notes and bills payable

Short-term notes and bills payable
Item Commercial paper payable Less: Unamortized discount Net Interest Rate Range	December 31
	2020 $220,000 (146) $219,854 1.87%	2019
		$220,000 (1,253)
		$218,747
		1.89%

Some investment properties are pledged as collateral for short-term notes and bills payable. Please refer to Note 8 for information.

－36－

6.11 Other Payables

6.11 Other Payables
Item Compensations payable Consumables payable Utility expense payable Fuel payable Interest payable Others Total	December 31
	2020 $39,256 28,272 11,667 6,178 7,404 24,813 $117,590	2019
		$37,099 25,407 12,599 9,033 8,251 24,223
		$116,612

Please refer to Note 7.3.4 for related party transactions

6.12 Provisions - current

Item Employee benefits Onerous purchase contract Total Item January 1, 2020 Recognized in current period Write-off in current period December 31, 2020 Item January 1, 2019 Recognized in current period Write-off in current period December 31, 2019	December 31	December 31
	2020 $12,375 - $12,375 Employee benefits Onerous contract $12,064 $ - 12,375 12,059 (12,064) (12,059) $12,375 $ - Employee benefits Onerous contract $11,280 $7,291 12,064 - (11,280) (7,291) $12,064 $ -		2019
			$12,064 -
			$12,064
	Employee benefits $12,064 12,375 (12,064) $12,375 Employee benefits $11,280 12,064 (11,280) $12,064		Total
			$12,064 24,434 (24,123)
			$12,375
			Total
			$18,571 12,064 (18,571)
			$12,064

1.Provision for employee benefits is an estimate of the short-term service leave vested to employees.
2.Provision for onerous contract is the unavoidable costs of irrevocable purchase contract which exceeds the economic benefits expected to be received.

－37－

6.13 Long-term Loans and Current Portion of Long-term Loans

Item Bank syndicated loans: 10 of Banks syndicated loans Less: Unamortized discount Less: Current portion Long-term loans Interest rate range	December 31	December 31
	2020 $2,817,500 (5,463) (229,554) $2,582,483 2.4841%	2019
		$2,875,000 (7,188) (57,356)
		$2,810,456
		2.7484%

1.Please refer to Note 8 for the collateral of the above bank loans.
2.According to syndicated loan agreements with banks in February 2019, the Company needs to maintain several financial ratios, including current ratio, liability ratio and interest coverage ratio, at a certain level, calculated based on the audited annual consolidated financial statements and the reviewed semi-annual consolidated financial statements for the duration of the contracts. Since the Company failed to meet interest coverage ratio in 2020, it needed to pay to the managing bank a compensation at 0.125% of the loan balance within agreed time. However, this is not seen as a breach of contract.

6.14 Benefit Plan After Retirement

1.Defined contribution plan
The pension system based on the Labor Pension Act which is applicable to the Company’s domestic entities is a defined contribution plan managed by government. Companies would make monthly contribution equal to 6% of each employee's monthly salary to the employees' individual pension accounts at the Bureau of Labor Insurance.

The total expenses contributed under the defined contribution plan were $11,846 thousand and $12,424 thousand for the years ended December 31, 2020 and 2019, respectively, and were recognized as pension expenses.

2.Defined benefit plans
(1) The pension plan under the Labor Standards Law, which is applicable to the Company’s domestic entities, is a defined benefit pension plan managed. Under the defined benefit pension plan, pension benefits are based on the average monthly salaries and wages of the last 6 months prior to retirement and the duration of employment. Those companies contribute monthly an amount equal to 6% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee.
(2) Before the end of year, if the balance at the retirement fund is not sufficient to cover all employees retiring next year, a lump-sum deposit should be made before March-end of the following year to cover the difference.

－38－

(3)The amounts recognized in the standalone balance sheet for obligations from defined benefit plans are as：

defined benefit plans are as：
Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability	December 31
	2020 $295,297 (306,074) ($10,777)	2019
		$308,007 (303,883)
		$4,124

(4) Movements in net defined benefit liability are as follows:

Year Ended December 31,2020	Year Ended December 31,2020	Year Ended December 31,2020
Present value of defined benefit obligations $308,007 1,691 2,089 $3,780 $ - 10,462 (5,060) $5,402 $ - (21,892) $295,297	Fair value of planned assets ($303,883) - (2,108) ($2,108) ($9,896) - - ($9,896) ($12,079) 21,892 ($306,074)	Net defined benefit liability
		$4,124 1,691 (19)
		$1,672
		($9,896) 10,462 (5,060)
		($4,494)
		($12,079) -
		($10,777)

－－ 39

Year Ended December 31, 2019

Item Balance as of January 1 Cost of service Current service cost Interest expense (income) Recognized in profit and loss Remeasurement Return on plan asset (Amounts included in interest income or expense are excluded) Actuarial (gains) losses - Effect of change in financial assumptions Experience adjustment Recognized in other comprehensive income Pension fund contribution Paid pension Balance as of December 31	Present value of defined benefit obligations $333,573 1,970 2,465 $4,435 $ - 1,420 (21,608) ($20,188) $ - (9,813) $308,007	Fair value of planned assets ($258,141) - (2,024) ($2,024) ($7,423) - - ($7,423) ($46,108) 9,813 ($303,883)	Net defined benefit liability
			$75,432 1,970 441
			$2,411
			($7,423) 1,420 (21,608)
			($27,611)
			($46,108) -
			$4,124

(5) Through the pension plan under the Labor Standards Law, the Company is exposed to the following risks:
A. Investment risk

The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government's designated authorities or under the mandated management by Bureau of Labor Funds, Ministry of Labor. However, the rate of return on the Company’ s planned assets shall not be less than the average interest rate on a two-year time deposit published by the local banks.

B. Interest rate risk

A decrease in the government bond interest rate will increase the present value of the defined benefit obligation, however, the return on the debt investments of the plan assets will also increase. Those two will partially offset each other.

C. Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

－40－

(6) The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions adopted on the valuation date were as follows:

valuation date were as follows:
Item Discount rate Future salary increase rate Average maturity period of defined benefit obligations	Measurement date
	December 31, 2020 0.30% 2.00% 9 years	December 31, 2019
		0.70%
		2.00%
		9 years

A. Assumptions on future mortality experience are set based on the 5th Taiwan Standard Ordinary Experience Mortality Table.
B. If a reasonable change in one of the principal assumptions for actuarial valuation occurred and all other assumptions were held constant, the increase (decrease) in the present value of defined benefit obligation would be as follows:

follows:
Item Discount rate Increase by 0.25% Decrease by 0.25% Expected growth rate of salaries Increase by 0.25% Decrease by 0.25%	December 31
	2020	2019 ($7,008) $7,243 $7,131 ($6,936)
	($6,601)
	$6,814
	$6,682
	($6,508)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

(7) The Company expects to make contributions of $12,654 thousand to the pension plans for the year ended December 31, 2021.

6.15 Common Stock

1.Quantities and values of the Company’s outstanding common shares at the beginning and ending of periods were as follows:

Item January 1 Capital increase in cash Capitalization of earnings December 31	Year Ended December31,2020	Year Ended December31,2020
	Shares (thousand shares) 530,652 - - 530,652	Amount
		$5,306,516 - -
		$5,306,516

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Item January 1 Capital increase in cash Capitalization of earnings December 31	Year Ended December31,2019	Year Ended December31,2019
	Shares (thousand shares) 530,652 - - 530,652	Amount
		$5,306,516 - -
		$5,306,516

2.As of December 31, 2020, the Company had an authorized capital of $12,000,000 thousand with 1,200,000 thousand shares.
3.The Company’s board of directors resolved common shares issued through private placement by $2,000,000 thousand, consisting 350,877 thousand new shares (common shares) with par value of $10. The issue price was $5.70 per share resolved by the board of directors on December 8, 2006. The capital increase record date was set on February 8, 2007. Right and obligations of holders of the common shares issued through private placement were the same as those of the Company’s original common shareholders. However, the listing and resale of those common shares issued through private placement shall be in accordance with Securities and Exchange Act and related regulations. Due to offsetting deficits, the capital reduction ratio is about 48.20%, and the number of shares after the capital reduction is 181,755 thousand shares in May 2009. The Company had resolved to capitalize earnings, and there were 3,635 thousand shares issued through private placement in October 2011.
4.The Company’s board of directors resolved common shares issued through private placement by $1,200,000 thousand, consisting 461,538 thousand new shares (common shares) with par value of $10. The issue price was $2.60 per share resolved by the board of directors on June 25, 2008. The capital increase record date was set on November 12, 2008. Right and obligations of holders of the common shares issued through private placement were the same as those of the Company’s original common shareholders. However, the listing and resale of those common shares issued through private placement shall be in accordance with Securities and Exchange Act and related regulations. Due to offsetting deficits, the capital reduction ratio is about 48.20%, and the number of shares after the capital reduction is 239,078 thousand shares in May 2009. The Company had resolved to capitalize earnings, and there were 4,782 thousand shares issued through private placement in October 2011.
5.In order to improve the financial structure and future operation and development, the Company passed a resolution of shareholders' meeting to reduce the amount of capital to eliminate the accumulated loss of $1,000,000 thousand (included private placement by $680,646 thousand and non-private placement by $319,354 thousand), and eliminate common stock 100,000 thousand shares (included private placement by 68,065 thousand shares and non-private placement by 31,935 thousand shares). The capital reduction rate was 15.8566% and be approved by the Financial Supervision Commission on August 30, 2017, and the change registration was completed on September 15, 2017.

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6.As of December 31, 2020 and 2019, the Company’s issued capital amounts to both $5,306,516 thousand, representing approximately 530,652 thousand ordinary shares. The capital information was as follows:

Item Common shares - private placement Common shares - non-private placement Total Capital Surplus Item Share premium Difference between the price received from acquisition or disposal of a subsidiary and its book value Change in ownership interests in subsidiaries accounted for using equity method Unrealized gain and losses of intra- group transactions Changes in associates and joint ventures recognized under equity method Total	Amount $3,611,857 1,694,659 $5,306,516 December 31	Amount $3,611,857 1,694,659 $5,306,516 December 31
	2020 $5 1,252 134,588 5,129,745 20,490 $5,286,080	2019
		$5 1,252 126,473 - 4,869
		$132,599

6.16 Capital Surplus

Under the Company Act, capital surplus arising from shares issued at premium or from donation may be used for offsetting deficit. Furthermore, if the Company has no accumulated loss, capital surplus may be used for issuing new shares or distributing cash in proportion to shareholders' original holdings. In accordance with regulations in the Securities and Exchange Act, when the above-mentioned capital surplus is used for capitalization, the total amount every year shall not exceed 10% of the paid-in capital. The Company may use capital surplus to offset loss only when the amount of earnings and reserves are insufficient to offset the loss. The capital surplus generated from investment under equity method shall not be used for any purposes.

Please refer to Note 6(6) for the unrealized gain and losses of intra-group transactions.

6.17 Retained Earnings and the Dividend Policy

1.A residual dividend distribution policy is adopted in accordance with the Company’s development plan, investment environment, capital needs and domestic and foreign competition in present and future, and shareholder benefit after considering the fact that the Company is currently in Maturity phase. If accumulated distributable surplus is lower than capital 20%, the Company can’t get distributed, otherwise distribute dividends to shareholders do not less than

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20% in annual year. The annual net income, if any, should be used to pay off all the taxes and duties, as well as to compensate prior deficits. The remaining amount, if any, should be appropriated in the following order of presentation:

(1) 10% as legal reserve;

(2) set aside an amount as special reserve according to operating needs;
(3) if there is a surplus for the year, it should be used as dividends to special shares priority;
(4) the remaining net income plus unappropriated earnings from prior years may be used as dividends or bonus (stock dividends are distributed at between 0% to 80% of the total dividends distributed and cash dividends are distributed at between 20% to 100% of total dividends distribute).
The surplus distribution ratio and cash dividend ratio may be adjusted by the Board of Directors and depend on actual profit, cash position, and operating needs.
2.Legal reserves may only be used for offsetting deficits and issuing new shares or distributing cash in proportion to shareholders’ original holdings. However, when new shares are issued or cash is distributed, the amount shall be limited to 25% of the reserves in excess of the paid-in capital.
3.Special reserve

3.Special reserve
Item Provision for debit balance of other equity Offsetting deficits Total	December 31
	2020 $3,332 (3,332) $ -	2019
		$3,332 (3,332)
		$ -

(1) The Company may allocate earnings only after providing special reserve for debt balance in other equity on the date of balance sheet, and the reversal of debit balance in other equity, if any, may be stated into allocable earnings.
(2) Upon first-time adoption of IFRSs, the exchange differences on translation of foreign financial statements and unrealized revaluation value conversed to retained earnings were ($1,325) thousand and $0 thousand, respectively. Thus, the Company don’t need to set aside as special reserve.
4.The shareholders’ meeting held in June 2020 and 2019 resolved no dividends distributed to the shareholders due to operating deficit. Information about earnings distribution approved by the Board of Directors and resolved by the shareholders meeting is available at the Taiwan Stock Exchange Market Observation Post System website.
5.The Company’s appropriations of earnings for 2020 had been approved in the meeting of the board of directors held on March 24, 2021. No dividends will be distributed to the shareholders due to accumulated deficit as of December 31, 2020. The appropriations of earnings for 2020 are to be presented for approval in the Company’s annual shareholders’ meeting to be held in June 2021.

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6.18 Other Equity Items

6.18 Other Equity Items
Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2020 Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Balance, December 31, 2020 Item	($2,165) - (5,077)	$811 (987) 3,827	$4 - -	($1,350) (987) (1,250)
	($7,242)	$3,651	$4	($3,587)
	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2019 Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Balance, December 31, 2019	$296 - (2,461)	$1,707 473 (1,369)	$4 - -	$2,007 473 (3,830)
	($2,165)	$811	$4	($1,350)

6.19 Operating Revenue

Operating Revenue
Item Revenue from contracts with customers Sales revenue Processing revenue Scraps revenue Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Year Ended December 31
	2020 $5,435,089 124,748 57,116 $5,616,953 (26,245) (917) $5,589,791	2019
		$6,185,657 293,946 75,389
		$6,554,992 (18,477) (1,240)
		$6,535,275

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1.Segments of revenue from contracts with customers

Sales and processing income of wire rods and steel coil processed, etc. are mainly to downstream manufacturers, and sold at fixed prices per contractual terms. 2.Contract revenue details

The region of steel revenue can by disaggregated below: 2020:

2.Contract revenue details The region of steel revenue can 2020:	by disaggregated	below:
Region Taiwan America Thailand Korea Others Total Service line Gangshan Factory Pingnan Factory Total Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total 2019: Region Taiwan America Italia Thailand Others Total Service line Gangshan Factory Pingnan Factory Total	Steel $4,247,572 509,470 242,930 101,502 363,569 $5,465,043 $5,267,305 197,738 $5,465,043 $5,465,043 - $5,465,043 Steel $4,677,109 511,656 207,992 237,656 606,916 $6,241,329 $5,878,478 362,851 $6,241,329	Processed $124,748 - - - - $124,748 $19,091 105,657 $124,748 $124,748 - $124,748 Processed $293,946 - - - - $293,946 $9,218 284,728 $293,946	Total
			$4,372,320 509,470 242,930 101,502 363,569
			$5,589,791
			$5,286,396 303,395
			$5,589,791
			$5,589,791 -
			$5,589,791
			Total
			$4,971,055 511,656 207,992 237,656 606,916
			$6,535,275
			$5,887,696 647,579
			$6,535,275

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Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total	$6,241,329 - $6,241,329	$293,946 - $293,946	$6,535,275 -
			$6,535,275

Contract Balance

Contract Balance
Item Receivables Contract liabilities - current	December 31
	2020 $193,100 $64,123	2019
		$71,151
		$29,627

(1) Significant change in contract assets and contract liabilities

The change in contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment.

(2) Amount of satisfied performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:

timing difference between the satisfaction of performance obligation and the customer’s payment. (2) Amount of satisfied performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:	timing difference between the satisfaction of performance obligation and the customer’s payment. (2) Amount of satisfied performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:	timing difference between the satisfaction of performance obligation and the customer’s payment. (2) Amount of satisfied performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:	timing difference between the satisfaction of performance obligation and the customer’s payment. (2) Amount of satisfied performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:
Year Ended December 31 Item 2020 2019 Goods sale $29,627 $23,931 From previous period’s satisfied performance $ - $ - 6.20 Employee benefits, depreciation and amortization expense Year Ended December 31, 2020 Nature OperatingCost OperatingExpense Total Employee benefits Salary $180,700 $52,825 $233,525 Insurance 21,736 5,087 26,823 Pension 10,804 2,714 13,518 Remuneration to directors - 2,347 2,347 Other employee benefits 34,895 5,126 40,021 Depreciation 397,653 6,991 304,644 Total $545,788 $75,090 $620,878
	OperatingCost $180,700 21,736 10,804 - 34,895 397,653 $545,788	OperatingExpense $52,825 5,087 2,714 2,347 5,126 6,991 $75,090	Total
			$233,525 26,823 13,518 2,347 40,021 304,644
			$620,878

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Year Ended December 31, 2019

Nature Employee benefits Salary Insurance Pension Remuneration to directors Other employee benefits Depreciation Total	OperatingCost $184,905 23,294 12,005 - 42,594 302,215 $565,013	OperatingExpense $52,644 5,157 2,830 2,504 5,944 27,941 $97,020	Total
			$237,549 28,451 14,835 2,504 48,538 330,156
			$662,033

1.Additional information for number of employees and employees’ benefit expense in 2020 and 2019 is as below:
(1)The number of employees in 2020 and 2019 were 445 and 458, respectively; the number of non-employee directors were 4 and 5.
(2) The Company’s average employee benefits expenses in 2020 and 2019 were $712 thousand and $727 thousand, respectively.
(3) The Company’s average wages and salaries for the current year and the previous year were $530 thousand and $524 thousand, respectively.
(4) Average wages and salaries increased by 1.14%.
(5) Remuneration policy of the Company

A. Remuneration to directors

Under the Articles of Company, the carriage fees paid to directors, the remuneration of independent directors, and the salary of the chairman and vice-chairman shall be discussed by the board of directors in accordance with the levels of industry peer and listed companies. The chairman and vicechairman of the board may have other benefits in accordance with the relevant provisions of the company's treatment.

The Articles of Company also stipulate that it should be allocated less than 0.1% of profit as directors' remuneration if the Company has annual net income. According to the Articles of the Company's Remuneration Committee, the payment of directors' remuneration shall be handled with the Articles of Company.

The remuneration of independent directors of the company, which can be different from the general directors shall be stipulated in the Articles of Company or in accordance with the resolutions of the board of shareholders, and can have a fixed monthly remuneration through relevant legal procedures, and should not participate in the company's earnings distribution.

B. Remuneration to manager

The remuneration to the managers which is based on the position, contribution, the operating performance during the year and consideration of the Company's

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future risks is reviewed by the remuneration committee and submitted to the board of directors for resolution.

C. Compensation to employees

The company is committed to providing employees with a salary and benefits above the average of the industry. Under the premise of external competition, internal fairness and legality, we provide a more multiplex and competitive remuneration system, and insists on the concept of profit sharing with employees to attract, retain, develop and motivate our employees. The remuneration of the employees includes the monthly salaries and the remuneration based on annual profitability. According to the Articles of Company, the Company should allocate more than 0.2% of the profit as the compensation to employees.

The annual remuneration is to give back to colleagues, to reward their contributions, and encourage them to work hard, and linked the interests of employees to shareholders', to create a three-way win for the company, shareholders and employees. The bonuses and compensation of employee are determined by the Company which based on the operating results and reference to the domestic industry’s levels. The amount and distribution method are proposed by the remuneration committee to the board of directors. The assigned remuneration depends on each employee's position, contribution, and performance, and be paid after the board of directors approves.

2.Compensation to employees and remuneration to directors shall neither be less than 0.2 % nor greater than 0.1% of the net income before tax and before which the compensation to employees and remuneration to directors are deducted from. Due to the accumulated deficits of the Company for 2020 and 2019, the estimated amount of the above compensation and remuneration were both $0 thousand. Any changes in the amounts, if any, after the annual financial statements were authorized for issue, shall be recorded as a change in accounting estimate, and should be adjusted the next year.
3.In March 24, 2021 and March 17, 2020, the Company’s board of directors resolved no employees’ compensation and directors’ and supervisors’ remuneration for the years ended December 31, 2020 and 2019. The approved amounts were consistent with the accrued amounts charged against earnings of year 2020 and 2019.
4.Information about employee compensation and remuneration to directors and supervisors approved by the board of directors is available at the Taiwan Stock Exchange Market Observation Post System website.

－－ 49

6.21 Other Income

Other Income
Item Rent income Interest income Subsidy (Note) Other income Total	Year Ended December 31
	2020 $1,426 375 40,600 286 $42,687	2019
		$1,427 645 - 652
		$2,724

(Note) Please refer to Note.10 for the relevant information about subsidy income.

6.22 Other gains and losses

Item Gain (loss) of financial assets measured at FVTPL Gain (loss) on disposal of financial assets at fair value through profit and loss Gain (loss) from disposal of property, plant, and equipment Net foreign exchange gain (loss) Others Total	Year Ended December 31	Year Ended December 31
	2020 $1,796 1,633 (198) 4,238 (7) $7,462	2019
		($1,254) 686 (615) (569) (5)
		($1,757)

6.23 Finance Costs

Item Interest on loans Others Subtotal Less: Amount qualified for capitalization Finance costs	Year Ended December 31	Year Ended December 31
	2020 $123,203 8,889 $132,092 - $132,092	2019
		$126,733 5,592
		$132,325 -
		$132,325

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6.24 Income Tax

1.Income tax expense

(1) Components of income tax expense

come Tax ncome tax expense (1) Components of income tax expense
Item Current income tax expense Deferred income tax Deferred income tax originating and reversed temporary differences Deferred income tax expense Income tax expense (benefit)	Year Ended December 31
	2020 $ - $3,615 $3,615 $3,615	2019
		$ -
		$14,714
		$14,714
		$14,714

(2)Income tax expense (benefit) associates with other comprehensive income

Item Remeasurement of defined benefit plans	Year Ended December 31	Year Ended December 31
	2020 $899	2019
		$5,523

2.Reconciliation of income before income tax and income tax expense recognized in profit or loss is as follows:

in profit or loss is as follows:
Item Income (loss) before tax Income tax expense (benefit) at the statutory rate Tax effect of adjusting items: Investment loss (gain) recognized under equity method Unrealized inventory valuation loss (recovery gain) Realized (unrealized) pension Other adjustments Loss carryforwards Net changes of deferred income tax Income tax benefit recognized in profit or loss	Year Ended December 31
	2020	2019 ($627,473) ($125,495) 9,449 8,118 (8,739) (4,676) 121,343 14,714 $14,714
	($466,475)
	($93,295) 12,581 (10,287) (2,081) (11,700) 104,782 3,615
	$3,615

The business income tax rate was 20% ,and the tax rate applicable to unappropriated earnings was 5%.

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3.Deferred income tax assets or liabilities from temporary differences, loss carry forwards and investment credits:

	Year Ended December 31, 2020	Year Ended December 31, 2020
Beginning balance $11,315 34,274 222 34,552 825 2,413 6 63,542 $147,149	Recognized in profit or loss ($10,287) - 599 (4,230) (825) 62 (6) 12,377 ($2,310)	Recognized in other comprehensive income $ - - - - - - - - $ -	Ending balance
			$1,028 34,274 821 30,322 - 2,475 - 75,919
			$144,839
$ - -	($49) (1,256)	$ - (899)	($49) (2,155)
$ - $147,149	($1,305) ($899) ($3,615) ($899) Year Ended December 31, 2019		($2,204)
			$142,635

Beginning balance $3,197 1,458 34,274 47 38,793 15,087 2,256 13 72,261 $167,386	Recognized in profit or loss $8,118 (1,458) - 175 (4,241) (8,739) 157 (7) (8,719) ($14,714)	Recognized in other comprehensive income $ - - - - - (5,523) - - - ($5,523)	Ending balance $11,315 - 34,274 222 34,552 825 2,413 6 63,542 $147,149

－52－

4.Items not recognized as deferred income tax assets:

Item Loss carryforwards Investment loss recognized under equity method	December 31	December 31
	2020 $733,211 116,185	2019
		$717,067 103,604

The unused loss-carryforwards will expire successively in 2021-2030.

5.The Company’s income tax returns through 2018 have been ratified by the tax authorities.

6.25 Other Comprehensive Income

Year Ended December 31, 2020	Year Ended December 31, 2020	Year Ended December 31, 2020
Before tax $4,494 (987) 3,827 (10) $7,324 ($5,077) ($5,077) $2,247	Income tax expense (benefit) ($899) - - - ($899) $ - $ - ($899)	After tax
		$3,595 (987) 3,827 (10)
		$6,425
		($5,077)
		($5,077)
		$1,348

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Year Ended December 31, 2019	Year Ended December 31, 2019	Year Ended December 31, 2019
Income tax expense (benefit) After tax ($5,523) $22,088 - 473 - (1,369) - 19 ($5,523) $21,211 $ - ($2,461) $ - ($2,461) ($5,523) $18,750 Year Ended December 31		After tax
		$22,088 473 (1,369) 19
		$21,211
		($2,461)
		($2,461)
		$18,750
2020 ($470,090) 530,652 ($0.89)	2019
	($642,187) 530,652
	($1.21)

7.RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

The Company was controlled by Yieh Phui Enterprise Co., Ltd., which held 57.41 % and 56.98% of the company's shares as of December 31, 2020 and 2019, respectively, and other shares were held by public. Yieh Phui Enterprise Co., Ltd. is the ultimate controlling party of the Group.

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7.2 Names of related parties and relationship categories

Names of related parties Related party category Yieh Phui Enterprise Co., Ltd. Parent Great Emperor Hotel Co., Ltd. Associate (Losing control in the fourth quarter of 2020) Kingsgarden International Co., Ltd. Associate (Losing control in the first quarter of 2020) Yieh United Steel Corp. Associate Cheng Shin Security Co., Ltd. Associate E-Da Development Co., Ltd. Associate Eliter International Corp. Associate Yieh Corporation Limited Other related party Yieh Mau Corp. Other related party Skylark International Hotel Co., Ltd. Other related party Pacific Harbor Stevedoring Corporation Other related party New Spring Construction Corp. Other related party E-Da Royal Hotel Company Ltd. Other related party E-Da Hospital Other related party E-Da Medical Foundation Dachang Hospital Other related party I-Shou University Other related party I-Shou University Internship Center Other related party UniPattern Corporation Other related party Yieh Corp. Other related party I-Hsiang-Le International Co., Ltd. Other related party Long Hua Travel Services Co., Ltd. Other related party E-DA Tour Bus Co., Ltd. Other related party Royal Palace Hong Kong Style Restaurant Other related party Co., Ltd.

Shin Ho Environmental Engineering Co., Ltd Yu Ching-Sheng

Other related party Other related party

7.3 Significant transactions with related parties

1.Operating revenue

Related party category/Name Associates Other related party Total	Year Ended December 31	Year Ended December 31
	2020 $54,255 7,989 $62,244	2019
		$73,238 31,230
		$104,468

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(a)Selling price to the Company's related parties, stainless steel wire, and trading terms are the same with those to other customers. Payment term is LC at sight or T/T before shipment.
(b)Selling price of stainless steel scraps to related parties are set with reference to the purchase price of a non-related party as a trading counterparty. Payment term is monthly, and closes in 15 days.

2.Purchases

Purchases
Related party category/Name Associates Yieh United Steel Corp.	Year Ended December 31
	2020 $3,506,331	2019
		$4,313,858

Items purchased by the company from above related parties were mainly stainless steel billets and carbon steel billets. The purchase prices are similar to that offered to other suppliers. Payment term is LC at sight, T/T before shipment (not significantly different than terms to other suppliers).

3.Receivables from related parties (excluding loans to related parties and Contract assets)

assets)
Item Accounts receivable Other receivables	Related party category/Name Associates Associates Yieh United Steel Corp. (Note)	December 31
		2020 $5,432 $72,695	2019
			$6,662
			$-

(Note) Belongs to the quantity discount of receivable.

4.Payables to related parties (excluded loans from related parties)

Item Notes payable Accounts payable Other payables	Relatedpartycategory/Name Other related parties Associates Parent Associates Other related parties Total	December 31	December 31
		2020 $224 $- $268 3,093 903 $4,264	2019
			$776
			$20,524
			$290 755 787
			$1,832

5.Prepayments: None.

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6. Advance receipts

Advance receipts
Related party category/Name Subsidiaries Other related parties New Spring Construction Corp. Total	December 31
	2020 $ - 69 $69	2019
		$378 69
		$447

7.Asset transaction

Asset transaction
(1) Acquisition of property, plant and equipment: 2020: None. 2019: Type of related party Transaction target Other related parties Other equipment (2) Disposal of property, plant and equipment: None. (3) Disposal of other assets: None.	Transaction amount
	$4,494

8.Lessee agreement: None.
9.Loans to related parties: None.
10.Endorsements and guarantees: None.

11.Others

(1) Miscellaneous income

thers Miscellaneous income
Relatedpartycategory/Name Parent： Yieh Phui Enterprise Co., Ltd. Subsidiary： Great Emperor Hotel Co., Ltd. Kingsgarden International Co., Ltd. Associates: Great Emperor Hotel Co., Ltd. Kingsgarden International Co., Ltd. Other related parties New Spring Construction Corp. Others Total	Year Ended December 31
	2020 $218 372 76 74 384 207 78 $1,409	2019
		$218 446 460 - - 207 71
		$1,402

These are mainly rent income and utility income. The rent price is determined by contract and received monthly or quarterly.

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(3) Miscellaneous expenses

Miscellaneous expenses
Relatedpartycategory Parent Associates Other related parties Total	Year Ended December 31
	2020 $1,532 17,125 10,540 $29,197	2019
		$1,600 10,301 10,218
		$22,119

These are mainly loading and unloading service, health management service, technical service, and computer use service.

(4) The Company participated in the cash offering by related parties and consequently increased its investment are disclosed as follows:
2020: None.

2019:

2020: None. 2019:
Investee Associates： E-Da Development Co., Ltd.	Investment	Increase Amount $47,535	Shareholding Percentage
	Shares (thousand shares) 4,753		Before Offering 5.94%	After Offering
				5.94%

(4) Other

Related party category Significant transactions Other related parties The company’s lands of property, plant and equipment and investment properties are unable to be registered under the name of the Company due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

7.4 Information about remunerations to the major management:

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Year Ended December 31	Year Ended December 31
	2020 $9,648 441 - - - $10,089	2019
		$8,742 392 - - -
		$9,134

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8.PLEDGED ASSETS

The following assets have been pledged as collateral for long-term and short-term loans:

Item Pledged demand deposits Pledged time deposits Subtotal of other financial assets - current Property, plant and equipment (net) Investment properties Accounts receivables Total	December 31	December 31
	2020 $228,617 105,285 $333,902 $4,630,731 95,384 30,842 $5,090,859	2019
		$224,540 105,300
		$329,840
		$4,891,190 95,384 -
		$5,316,414

9.SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED

CONTRACT COMMITMENTS

(1) Guarantee notes issued to banks by the Company for loans and purchases performance totaled $6,557,937 thousand and $6,705,376 thousand of as December 31, 2020 and 2019, respectively.

(2) The unused letters of credit as of December 31, 2020 and 2019 are as follows:

Item Domestic letter of credit Foreign letter of credit	December 31	December 31
	2020 USD 5,894 NTD 27,792	2019
		USD 5,296 NTD 222,658

(3) The Company is in contract with JSPL, EAST and other raw material suppliers for material of billet, and price is negotiated by parties. The unfulfilled amounted was 20,150 tons, and the amount was approximately $280,670 thousand as of December 31, 2020.

10.SIGNIFICANT DISASTER LOSS:

The company was affected by the COVID-19 epidemic, as a result of the revenue decline sharply from January to September, 2020. As the epidemic is eased and policies are loosened, the company expects its operations will be recovered gradually.

To respond the impact of the epidemic, the company has applied to the government successfully for subsidies such as salary and working capital. The company has received $40,600 thousand in subsidy income as of December 31, 2020. Please refer to Note 6.21 for detail.

11.SIGNIFICANT SUBSEQUENT EVENTS: None.

12.OTHERS

(1) Capital risk management

As the Company needs to maintain sufficient capital to meet the needs for expansion and plant and equipment improvement, capital management of the Company focuses on ensuring there are sufficient financial resources and operating plans to meet the demands for operating capital, capital expenditure, research and development expense, loan repayment and dividend distribution in the next 12 months.

－－ 59

(2) Financial Instruments

Financial risk of financial instruments

Financial risk management

The Company’s daily operations are affected by various financial risks, e.g. market risk (including exchange rate, interest rate and price risks), credit risk and liquidity risk. The Company is devoted to identify, assess and avoid market uncertainties in order to eliminate the potential adverse effects of market changes on the financial performance.

Before engaging in significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. While the financial plan is underway, the Company shall comply with relevant financial operation procedures on the overall financial risk management and segregation of duties at all times.

The nature and degree of significant financial risks

(1) Market risks
A. Foreign exchange rate risk
- (A) The Company is exposed to exchange rate risk arising from the sales, purchases and borrowings in currencies other than the Company’s functional currency, as well as from net investment of foreign operations. Functional currency of the Company is New Taiwan Dollars, such transactions are denominated mainly in USD and EUR. To avoid a decrease in the value of assets dominated in foreign currency and volatility in future cash flows due to changes in exchange rates, the Company hedges the exchange rate risk with foreign-currency borrowings. Those financial instruments can diminish but not completely eliminate the impacts of changes in exchange rate.

As net investments in foreign operations are for strategic purposes, they are not hedged by the Company.

(B) Exchange rate exposure and sensitivity analysis

Exchange rate		December 31, 2020	December 31, 2020	December 31, 2020
	Presented amount (New Taiwan Dollars) 5,392 42,957 91,738 97,282	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1% Up 1%	Effects on profit or loss 54 430 - (973)	Effects on Equity
35.02 28.48 28.48 28.48				- - 917 -

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Exchange rate		December 31, 2019	December 31, 2019	December 31, 2019
	Presented amount (New Taiwan Dollars) 13,745 13,645 92,117	Sensitivity Analysis
		Range of change Up 1% Up 1% Up 1%	Effects on profit or loss 137 136 -	Effects on Equity
33.59 29.98 29.98				- - 921

If NTD appreciates against the above-mentioned currencies, held all other variables constant, the impact generated as of December 31, 2020 and 2019 would stay the same with the reverse result.

(C) Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Company’s monetary items amounted to 4,238 thousand and ($569) thousand for the years ended December 31, 2020 and 2019, respectively.
B. Price risk
Since the Company’s investment in securities is classified as financial assets at FVTPL or financial assets at FVTOCI on the standalone balance sheet, the Company does not expose to price risks of securities. The Company mainly invests in domestic listed and unlisted stocks and beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.
If the security price goes up or down by 1%, the post-tax profit or loss for the year 2020 and 2019 will increase or decrease by $ 1,255 thousand and $1,290 thousand due to the increase or decrease of the fair value of financial assets measured at FVTPL. The post-tax other comprehensive income for the year 2020 and 2019 will increase or decrease by $45 thousand and $55 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

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C. Interest rate risk

The carrying amount of the Company’s financial assets and financial liabilities that are exposed to interest rate risk at the reporting date is stated as follows:

as follows:
Item With fair value interest rate risk Financial assets Financial liabilities Net With cash flow interest rate risk Financial assets Financial liabilities Net	Carrying	Amount
	December 31,2020 $218,115 (219,854) ($1,739) $246,710 (5,038,225) ($4,791,515)	December 31,2019
		$217,017 (218,747)
		($1,730)
		$248,425 (4,844,349)
		($4,595,924)

  - (A) Sensitivity analysis of those with fair value interest rate risk: The Company classifies its investment in preferred stocks with fixed income as financial assets measured at FVTPL. Fair value of such preferred stock investment changes in line with the interest rate changes in the market. If the market interest rate goes up 1% and other variables are held constant, the profit or loss for the year 2020 and 2019 will decrease by $ 415 thousand and $1,513 thousand, respectively.

  - (B) Sensitivity analysis of those with cash flow interest rate risk: The interest-fluctuate instruments possessed by the Company were floating-interest assets (liabilities). Therefore, the effective interest rate, as well as the future cash flows, changes along with the market movement. Every one percent reduces (increase) in the market interest will increase (decrease) the net profit by $47,915 thousand and $45,959 thousand for the years 2020 and 2019, respectively.

(2) Credit risk
Credit risk refers to the risk of financial loss to the Company arising from default by counter-parties of financial instruments on the contract obligations. Credit risk of the Company mainly comes from receivables under operating activities and bank deposits and other financial instruments under investing activities. Credit risks related to operation and finance risks are managed separately.

Credit risk related to operations

To maintain the quality of accounts receivable, the Company has established the procedures for credit risk management with regards to its operations. Risk assessment on individual customer includes factors that could affect the customer's ability to pay, such as the customer's financial status, the Company’s internal credit ratings, historical transactions and current economic conditions. Financial credit risk

The credit risks of bank deposits and other Financial instruments are measured and monitored by the Company’s financial departments. The Company does not expect significant credit risk because the counterparties are creditworthy and investment-graded financial institutions, companies and government agencies

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without any significant default concerns. In addition, the Company does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI.

A. Credit concentration risk

As of December 31, 2020 and 2019, the top ten clients accounted for 79 % and 87% of the Company’s accounts receivable, indicating a credit concentration risk. However, no significant credit concentration risk was shown from the remaining accounts receivables.

B. Measurement of expected credit impairment loss
(a)Accounts receivables and contract assets apply the simplified approach. Please refer to Note 6.3 for details.
(b)Collaterals and other credit enhancement held to avoid credit risks from financial assets

The following table shows the maximum exposure to credit risk regarding financial assets recognized in the standalone balance sheets, pledged collateral, master netting arrangements and other credit enhancement held by the Company:

Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks
Collateral Net Settlement Agreement Other Credit Enhancement Total $ - $ - $ - $ - - - - - - - - - $ - $ - $ - $ - Decreased amount of maximum exposure to credit risks			Total
			$ - - -
			$ -
Collateral $ - - - $ -	Net Settlement Agreement $ - - - $ -	Other Credit Enhancement $ - - - $ -	Total
			$ - - -
			$ -

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(3) Liquidity risk

A.Liquidity risk management

The current liabilities of the Company exceeded current assets by $472,208 thousand, the accumulated loss had reached 60% of the capital, and the debt ratio reached 43% as of December 31, 2020. The management of the company through managed and maintained sufficient the cash to support the operations and reduce the impact of cash flow fluctuations, and bank loans are an important source of liquidity for the company. The management monitors the use of bank loan commitments at any time and ensures compliance with the terms of the loan contract and prepares future cash income and expenditure forecasts to ensure that there is no liquidity risk due to the inability to raise funds to fulfill contractual obligations.

B.Analysis of maturity of financial liabilities

The table below shows an analysis of the financial liabilities held by the Company with defined repayment terms based on maturity dates and undiscounted payment at maturity:

Non-derivative financial Liabilities			December 31, 2020	December 31, 2020
	Within 6 months	7-12 months	1-2 years	2-5 years		Carrying amount
	$2,226,188 220,000 58,751 1,462 117,590 115,000	$ - - - - - 115,000	$ - - - - - 431,250	$ - - - - - 2,156,250		$2,226,188 219,854 58,751 1,462 117,590 2,812,037

Non-derivative financial Liabilities			December 31, 2019	December 31, 2019	December 31, 2019
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - - $ -	Contractual cash flows $1,976,537 220,000 84,336 22,037 116,612 2,875,000 $5,294,522	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term loans (including current portion) Subtotal	$1,976,537 220,000 84,336 22,037 116,612 28,750	$ - - - - - 28,750	$ - - - - - 230,000	$ - - - - - 2,587,500			$1,976,537 218,747 84,336 22,037 116,612 2,867,812
	$2,448,272	$28,750	$230,000	$2,587,500			$5,286,081

The Company does not expect a maturity analysis of which the cash flows timing would be significantly earlier, or the actual amount would be significantly different.

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2. Types of Financial instruments

Financial assets Financial assets measured at amortized cost Cash and cash equivalents Notes receivables and accounts receivables (including related parties) Other receivables(including related parties) Other financial assets - current Refundable deposits Financial assets at fair value through profit or loss – current Financial assets at fair value through profit or loss – noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Financial liabilities Financial liabilities measured at amortized costs Short-term loans Short-term notes and bills payable Notes receivables and accounts payable (including related parties) Other payables (including related parties) Long-term loans (including current portion)	December 31	December 31
	2020 $208,795 193,100 83,058 333,902 453 125,475 - 4,494 2,226,188 219,854 60,213 117,590 2,812,037	2019
		$246,453 71,151 14,196 329,840 453 81,465 47,574 5,481 1,976,537 218,747 106,373 116,612 2,867,812

(3) Fair Value Information:

For information on fair value of financial assets and financial liabilities not measured at fair value, please refer to Note 12(3)3. For fair value of investment property measured at cost, please refer to Note 6.8. For fair value of investments in associates with quoted prices in an open market, please refer to Note 6.6.
Definition of the three levels in fair value:

Level 1:

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s beneficiary certificate with quoted market prices is included in Level 1.

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3

Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market and preferred stock investment is included in Level 3.

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Financial instruments not measured at fair value
Management of the Company thinks that the carrying amount of financial instruments not measured at fair value except those listed in the table below, including cash and cash equivalents, notes receivables, accounts receivables, other financial assets, refundable deposits, short term loans, short-term bills payable, accounts payable, and long-term loans (including current portion), is the reasonable approximation of their fair value.

4. Fair value hierarchy:

The fair value hierarchy of financial instrument is measured at fair value on a recurring basis. Information about the Company’s fair value hierarchy is disclosed in the following table:

in the following table:
Item Assets: Recurringfair value Financial assets at fair value through profit or loss Funds Domestic unlisted preferred stocks Financial assets measured at FVTOCI Equity securities Domestic unlisted stocks Total Item Assets: Recurringfair value Financial assets at fair value through profit or loss Funds Domestic unlisted preferred stocks Financial assets measured at FVTOCI Equity securities Domestic unlisted stocks Total		December 31,2020
	Level 1 $12,645 - - $12,645	Level 2 Level 3 $ - $ - - 112,830 - 4,494 $- $117,324 December 31,2019		Total
				$12,645 112,830 4,494
				$129,969

	Level 1 $17,322 - - $17,322	Level 2 $ - - - $-	Level 3 $ - 111,717 5,481 $117,198	Total
				$17,322 111,717 5,481
				$134,520

5. Fair value valuation technique for instruments measured at fair value:

(1) The fair value of financial instruments with quoted prices in active markets is the quoted market prices. Market prices published by major trading centers and exchanges for on-the-run government bonds are the basis for the fair value of listed equity instruments and debt instruments with quoted prices in active

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markets. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. If one of the conditions fails, the market is not deemed active. In general, indications of an inactive market include a wide bid-ask spread, a significant increase in the bid-ask spread and low level of trading volume. The fair value of financial instruments with active markets held by the Company are stated by their natures and types as follows:

a. Open-end funds：Net asset value.
(2) Except for financial assets with an active market, the fair value of other financial assets is obtained either based on the valuation technique or by reference to the quotes from counter-parties. Fair value can be obtained by using a valuation technique that refers to the fair value of financial instruments having substantially the same terms and characteristics, the discounted cash flow method, or other valuation technique e.g. the one that applies market information available on the balance sheet date to a pricing model for calculation.

The fair value of the Company’s holding of unlisted stocks for which no active market exists is estimated by using the market approach, which refers to the valuation of similar entities, quoted prices from a third party, the net worth of an entity and the operating performance. In addition, the significant unobservable inputs mainly comprise liquidity discount, in which the possible changes would not result in a potentially material financial effect. Therefore, the Company does not disclose the quantitative information.

Transfers between Level 1 and Level 2 fair value hierarchy: None.
Statement of changes in Level 3 fair value hierarchy:

Statement of changes in Level 3 fair value hierarchy:
Item January 1, 2020 Withdrawal of special shares Recognized in profit and loss Recognized in other comprehensive income December 31, 2020 Item January 1, 2019 Withdrawal of special shares Recognized in profit and loss Recognized in other comprehensive income December 31, 2019	Investment in unquoted financial instruments
	$117,198 - 1,113 (987)
	$117,324
	Investment in unquoted financial instruments
	$214,509 (95,070) (2,714) 473
	$117,198

Valuation process for Level 3 fair value measurement:
Valuation process regarding fair value Level 3 is conducted by the Company’s finance department, by which the independence of fair value of financial

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instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

(4) Transfer of financial assets:

Transferred financial assets fully derecognized:
(1) The Company was in contract with Chang Hwa Commercial Bank, Ltd. for accounts receivable factoring. According to the contract, the Company does not have to bear the risk of default over the transferred accounts receivables but only the loss from trade disputes. As the Company did not have any continued participation over those transferred accounts receivables, they were derecognized from the accounts. Information on outstanding receivables is as follows:

December 31, 2020

Amount Advance Annual Interest Factoring Collected Amount - End Rate for the Counter-party Amount in Cash of the Period Advance Amount Line of Credit Chang Hwa $ - $ - $ - - EUR 3,200 Commercial Bank

December 31, 2019

Amount Advance Annual Interest Factoring Collected Amount - End of Rate for the Counter-party Amount in Cash the Period Advance Amount Line of Credit Chang Hwa $27,884 $ - $25,096 1.16464% EUR 3,200 Commercial Bank (EUR 829) (EUR 746)

Transferred financial assets not fully derecognized: None.

(5) Offsetting financial assets and financial liabilities: None.

13.SUPPLEMENTARY DISCLOSURES

A. Significant transactions information
(a) Loans to others: None;
(b) Endorsements and guarantees provided to others: Please see Table 1 attached;
(c) Marketable securities held (excluding investments in subsidiaries and associates) at the end of the period: Please see Table 2 attached;
(d) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None;
(e) Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: None;
(f) Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None;
(g) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 3 attached;
(h) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;
(i) Information about the derivative financial instruments transaction: None;
B. Information on investees: Please see Table 4 attached.

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C. Information on investment in mainland China: None.

D. Information on main stockholder: Please see Table 5 attached.

－－ 69

TABLE 1

YIEH HSING ENTERPRISE CO., LTD. Endorsements and guarantees provided to others December 31, 2020

				Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency
No.	Endorser/ guarantor	Party being endorsed/guaranteed		Limit on endorsement/ guarantees provided for a single party (Note 2)	Maximum balance for the period (Note 4)	Ending balance (Note 4)	Amount actually drawn (Note 4)	Amount of endorsement/ guarantees collateralized by properties (Note 4)	Ratio of accumulated endorsement/ guarantee to net equity per latest financial statement	Maximum endorsement/ guarantee allowable (Note 3)	Guarantee provided by parent company to subsidiary	Guarantee provided by a subsidiary to parent company	Guarantee provided to subsidiaries in Mainland China
		Company name	Relationship with the endorser/ guarantor (Note 1)
1	Kings Garden International Co., Ltd.	Great Emperor Hotel Co., Ltd.	5	26,484,254	7,186,000	7,186,000	5,780,000	7,186,000	189.93%	26,484,254	`－`	－	`－`
2	Great Emperor Hotel Co., Ltd.	Kings Garden International Co., Ltd.	5	27,149,572	7,413,000	7,413,000	6,538,000	7,413,000	191.13%	27,149,572	`－`	`－`	`－`

(Note 1): The following code represents the relationship with the endorser/ guarantor:

Trading partner.
Majority owned subsidiary.
The company directly and indirectly holds more than 50% of the investee company.
A subsidiary jointly owned over 50% by the Company.
Guaranteed by the Company according to the construction contract.
The guarantees were provided based on the Company's proportionate share in the investee company.
Joint and several guaranteed by the Company according to the pre-construction contract under Consumer Protection Act.

(Note 2): The maximum amount of endorsement/guarantee provided by the Company shall not exceed 7 times of the Company’s net worth.

(Note 3): The maximum amount of endorsement/guarantee provided by the Company shall not exceed 7 times of the Company’s net worth.

(Note 4): The above details were the transactions before the company lost the control to Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd.

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TABLE 2

YIEH HSING ENTERPRISE CO., LTD. Marketable securities held at the end of the period December 31, 2020

Unit: Thousands of NT Dollar/ Foreign Currency

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2019	As of December 31, 2019	As of December 31, 2019
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Hsing Enterprise Co., Ltd	Fund/ SinoPac CSI 300 Dividend Index Fund	None	Financial assets at fair value through profit or loss - current	221	4,686	－	4,686
	Fund/ Allianz US Low Average Duration High Yield Fund USD	None	Financial assets at fair value through profit or loss - current	200	1,979	－	1,979
	Fund/ UBS (TW) Bond Fund - Emerging Asian Markets Bonds 2026(USD)	None	Financial assets at fair value through profit or loss - current	10	2,919	－	2,919
	Fund/ Franklin Templeton SinoAm AI Hi-Tech Fund-USD	None	Financial assets at fair value through profit or loss - current	200	2,070	－	2,070
	Fund/ Amundi TW - Emerging Markets High Yield Bond Fund	None	Financial assets at fair value through profit or loss - current	100	991	－	991
	Preferred stock/Eliter International Corp.- Preferred stock D	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	5,934	64,678	－	64,678
	Preferred stock/Eliter International Corp.- Preferred stock E	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	4,450	48,152	－	48,152
	Total			11,115	125,475		125,475
	Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s chairman	Financial assets at fair value through other comprehensive income - noncurrent	150	4,494	3.00%	4,494

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TABLE 3

YIEH HSING ENTERPRISE CO., LTD. Purchases from or Sales to Related Parties of at Least NT$100 Million or 20% of the Paid-in Capital For The Year Ended December 31, 2020

							Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Purchaser/ seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Note
Yieh Hsing Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	3,506,331	75.27%	T/T or Sight L/C before goods acceptance.	`－`	`－`	`－`	`－`	`－`

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TABLE 4

YIEH HSING ENTERPRISE CO., LTD. Information on Investees (Excluding Information on Investment in Mainland China) For The Year Ended December 31, 2020

Unit: Thousands of NT Dollar/ Foreign Currency

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2020	December 31, 2019	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Hsing Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	2,099,500	2,099,500	209,950	45.44%	2,076,113	(42,689)	(22,079)	(Note 2)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,119,500	2,119,500	211,950	49.87%	2,077,673	(37,389)	(18,690)	(Note 2)
	United Winner Metals L.P	Virginia, US	Scrap steel recycling	107,334	107,474	`－`	33.75%	91,738	13,269	4,479
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	4,000	4,000	400	10.00%	2,742	(8,943)	(895)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	639,772	639,772	64,043	7.42%	598,851	(66,028)	(4,897)
	E-Da Development Corp.	Kaohsiung City	Leisure development	437,915	437,915	43,791	5.94%	234,844	(322,389)	(19,156)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related business	20,204	20,204	2,542	0.10%	9,887	(1,877,471)	(1,650)	(Note 1)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	3,800	3,800	380	19.00%	3,691	(68)	(13)
	Total			5,432,025	5,432,165			5,095,539	(2,341,708)	(62,901)

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Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2020	December 31, 2019	Shares (in thousands)	Percentage of Ownership	Carrying Value
Kings Garden International Co., Ltd	Yi Hua International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings	7,000	7,000	1,169	70.00%	16,100	5,502	`－`	(Note 3)
	Hua Li International Co., Ltd.	Kaohsiung City	Daily necessities, cosmetics wholesaler	60,000	60,000	6,000	100.00%	46,402	(12,783)	`－`	(Note 3)
	Total			67,000	67,000			62,502	(7,281)	`－`
Great Emperor Hotel Co., Ltd.	Yi Mau Development Co, Ltd.	Kaohsiung City	Department stores, amusement park, and hotel industry	27,520	`－`	2,752	12.80%	27,494	(204)	(26)	(Note 4)

(Note 1): Due to cross ownership and the adoption of equity method between Yieh Phui Enterprise Co., Ltd. and Yieh United Steel Corporation, investment gain/loss is accounted for using the treasury stock approach. Thus, the income/loss of investee for the period excludes gain/loss accounted for using equity method by Yieh United Steel Corporation in relation to the Company.

(Note 2): The internal gains between Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd. are eliminated under the consolidation basis. And recognized investment loss of $7,273 thousand and $16,004 thousand after losing control.

(Note 3): Cause of losing the control to Kings Garden International Co., Ltd, the Company has no control to Yi Hua International Co., Ltd, and Hua Li International Co., Ltd. simultaneously.

(Note 4): Cause of losing the control to Great Emperor Hotel Co., Ltd., the Company has no control to Yi Mau Development Co, Ltd. simultaneously, and recognized investment loss of $19 thousand before losing control.

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TABLE 5

YIEH HSING ENTERPRISE CO., LTD. Information on main stockholder December 31, 2020

Name	Number of stockhold	Rate of stockhold
Yieh Phui Enterprise Co., Ltd.	304,654,650	57.41%
Yieh United Steel Corp.	85,717,552	16.15%

Note: The information of major shareholders is based on Taiwan Depository & Clearing Corporation, that calculates the shareholders hold more than 5% of the company's common shares and special shares which have completed but unregistered (including treasury shares) on the last work day of each quarter. And there may be differences due to calculation bases between the share capital recorded in the financial report and the company's actual shares of which delivered without physical registration.

－75－

14. SEGMENTINFORMATION

Information regarding business segments has been disclosed in the consolidated financial statements. Therefore, the Company does not disclose such information in the standalone financial statements.

－76－

STATEMENTS OF MAJOR ACCOUNTING ITEMS

STATEMENTS OF MAJOR ACCOUNTING ITEMS CONTENTS
Item	Statement Index
Major accountingitems in assets,liabilities and equity
Statement of cash and cash equivalents	P.79
Statement of financial assets measured at fair value through profit or loss - current	P.80
Statement of accounts receivable	P.81
Statement of other receivables	P.82
Statement of other receivables- relatedparties	P.83
Statement of inventories	P.84
Statement ofprepayments	P.85
Statement of other financial assets - current	P.86
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent	P.87
Statement of changes in investments accounted for usingequitymethod	P.88
Statement of changes inproperty, plant and equipment	Note 6(7)
Statement of changes in accumulated depreciation of property, plant and equipment	Note 6(7)
Statement of changes in accumulated impairment of property, plant and equipment	Note 6(7)
Statement of changes in investmentproperties	Note 6(8)
Statement of changes in accumulated depreciation of investmentproperties	Note 6(8)
Statement of changes in accumulated impairment of investmentproperties	Note 6(8)
Statement of deferred income tax assets	Note 6(24)
Statement of refundable deposits	P.89
Statement of short-term loans	P.90
Statement of short-term notes and billspayable	P.92
Statement of contract liabilities - current	P.93
Statement of notespayable	P.94
Statement of accountspayables	P.95
Statement of otherpayables	P.96
Statement ofprovisions - current	P.97
Statement of advance receipts	P.98
Statement of long-term loans and currentportion of long-term loans	P.99
Major accountingitems inprofit or loss
Statement of net revenue	P.100
Statement of cost of revenue	P.101

－77－

Statement of factoryoverheads	P.103
Statement of sales and marketingexpenses	P.104
Statement ofgeneral and administrative expenses	P.105
Statement of employee benefits,depreciation and amortization expense	Note 6(20)
Statement of othergains and losses	Note 6(22)
Statement of finance costs	Note 6(23)

－78－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item	Description	Amount	Remark
Cash Bank savings Subtotal Total	Petty cash Checking accounts Demand deposits - New Taiwan Dollars Demand deposits - foreign currencies	$230	USD 564 CNY 124 EUR 33
		$190,472 330 17,763
		$208,565
		$208,795

Exchange rate as of December 31, 2020: USD: NTD 1:28.48 CNY: NTD 1:4.377 EUR: NTD 1:35.02

－－ 79

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT DECEMBER 31, 2020

(In Thousand Shares & Thousands of New Taiwan Dollars)

Description	Financial Instrument Name	Shares or Unit	Acquired Cost	Fair Value	Fair Value
				Unit Price	Amount
Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Preferred Stock Preferred Stock	Fund/ SinoPac CSI 300 Dividend Index Fund Fund/ Allianz US Low Average Duration High Yield Fund USD Fund/ UBS (TW) Bond Fund - Emerging Asian Markets Bonds 2026 (USD) Fund/ Franklin Templeton SinoAm AI Hi-Tech Fund-USD Fund/ Amundi TW - Emerging Markets High Yield Bond Fund Subtotal Preferred stock/Eliter International Corp.- Preferred stock D Preferred stock/Eliter International Corp.- Preferred stock E Subtotal Total	221 200 10 200 100 5,934 4,450	$5,000 2,000 2,940 2,000 1,000	21.19 9.9 291.88 10.35 9.91 10.9 10.82	$4,686 1,979 2,919 2,070 991
			$12,940		$12,645
			59,337 44,503		64,678 48,152
			$103,840		$112,830
			$116,780		$125,475

－80－

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount
Company A Company B Company C Company D Company E Company F Company G Others Total Less: Allowance for doubtful accounts Net	Trade receivable Trade receivable Trade receivable Trade receivable Trade receivable Trade receivable Trade receivable Under 5%	$28,305 24,508 18,083 16,356 14,908 13,566 11,883 65,491
		$193,100 -
		$193,100

－81－

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF OTHER RECEIVABLE

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Remark
Tax refund receivable Other receivables Total	Business tax Other receivables	$9,599 764
		$10,363

－82－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF OTHER RECEIVABLE- RELATED PARTIES

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars) Item Description Amount Remark Yieh United Steel Corp. Purchases discounts $72,695 receivable Total $72,695

－83－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount
		Cost	Net Realizable Value
Raw materials Supplies Work in process Finished goods By-products Subtotal Less: Allowance for loss on inventory Net	Raw materials Supplies Work in process Finished goods Scraps	$694,559 146,852 28,434 483,762 2,858	$848,573 146,852 30,502 544,758 2,858
		$1,356,465 (5,138)	$1,573,543 -
		$1,351,327	$1,573,543

－84－

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF REPAYMENTS

DECEMBER 31, 2020

Item	(In Thousands of New Description Amount prepaid for the purchase and $139,873 charge,etc prepayments to insurance 13,006 natural gas 4,950 other prepaid expenses 4,267 $162,096	(In Thousands of New Description Amount prepaid for the purchase and $139,873 charge,etc prepayments to insurance 13,006 natural gas 4,950 other prepaid expenses 4,267 $162,096	Taiwan Dollars) Remark
Prepayments to suppliers Prepayments to insurance Prepayment for gas Others Total	prepaid for the purchase and charge,etc prepayments to insurance natural gas other prepaid expenses	$139,873 13,006 4,950 4,267
		$162,096

－85－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS - CURRENT DECEMBER 31, 2020

Item	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $43,733 Pledge demand deposits 25,270 Pledge demand deposits 40,181 Pledge demand deposits 24,193 Pledge demand deposits 25,000 Pledge demand deposits 23,577 Pledge demand deposits 12,543 Pledge demand deposits 20,004 Pledge demand deposits 6,069 Pledge demand deposits 8,047 $228,617 Pledge time deposits $105,000 Pledge time deposits 285 USD 10 $105,285 $333,902	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $43,733 Pledge demand deposits 25,270 Pledge demand deposits 40,181 Pledge demand deposits 24,193 Pledge demand deposits 25,000 Pledge demand deposits 23,577 Pledge demand deposits 12,543 Pledge demand deposits 20,004 Pledge demand deposits 6,069 Pledge demand deposits 8,047 $228,617 Pledge time deposits $105,000 Pledge time deposits 285 USD 10 $105,285 $333,902	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $43,733 Pledge demand deposits 25,270 Pledge demand deposits 40,181 Pledge demand deposits 24,193 Pledge demand deposits 25,000 Pledge demand deposits 23,577 Pledge demand deposits 12,543 Pledge demand deposits 20,004 Pledge demand deposits 6,069 Pledge demand deposits 8,047 $228,617 Pledge time deposits $105,000 Pledge time deposits 285 USD 10 $105,285 $333,902
Taiwan Cooperative Bank - Fengsung Branch Bank Of Taiwan - Gangshan Branch Lan d Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch First Bank- Hsinhsing Branch Chang Hwa Commercial Bank - Chishian Branch Bank Of Panhsin- Hsinhsing Branch Taichung Bank Hua Nan Bank - Gangshan Branch Bank Of Kaohsiung - Operating department Subtotal Mega International Commercial Bank- Kaohsiung Branch Mega International Commercial Bank- Kaohsiung Branch Subtotal Total	Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge demand deposits Pledge time deposits Pledge time deposits	$43,733 25,270 40,181 24,193 25,000 23,577 12,543 20,004 6,069 8,047	USD 10
		$228,617
		$105,000 285
		$105,285
		$333,902

Exchange rate as of December 31, 2020: USD: NTD 1:28.48

－86－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT FOR THE YEAR ENDED DECEMBER 31, 2020

									(In Thousands of New	(In Thousands of New	Taiwan Dollars)
	Balance,January1,2020		Increase		Decrease		Balance,	December 31,2020
	Shares		Shares	Shares			Shares
Item	(In Thousands)	Fair Value	(In Thousands)	Fair Value (In Thousands)		Fair Value (In Thousands)		%	Fair Value	Collateral	Remark
Pacific Harbour Stevedoring
Corp.	150	$5,481	-	$ -	-	($987)	150	3.00	$4,494	None	-

－87－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2020

Name	BeginningBalance	BeginningBalance	In	crease	De	crease	EndingBalan	EndingBalan	ce	(In Tho Market Valu	usand Shares & T e or Net Value	housands of New Tai Collateral or Pledge
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. United Winner Metals L.P Cheng Shin Security Co., Ltd. Eliter International Corp. E-Da Development Corp. Yieh United Steel Corporation E-Da Health Biotechnology Co., Ltd. Subtotal Unrealized gross profit on sales Other noncurrent liabilities - others Total	209,950 211,950 - 400 64,043 43,791 2,542 380	$1,998,156 2,011,379 92,117 3,637 602,412 251,625 11,790 3,704	- - - - - - - -	$100,037 84,983 4,479 - 1,336 2,375 118 -	- - - - - - - -	$22,080 18,689 4,858 895 4,897 19,156 2,021 13	209,950 211,950 - 400 64,043 43,791 2,542 380	45.44 49.87 33.75 10.00 7.42 5.94 0.10 19.00	$2,076,113 2,077,673 91,738 2,742 598,851 234,844 9,887 3,691	9.77 9.75 - 6.86 9.51 5.36 8.20 9.71	2,076,113 2,077,673 91,738 2,742 609,366 234,844 20,848 3,691	None None None None None None None None
		$4,974,820 (4,968,461) 958,926		$193,328 4,968,461 -		$72,609 - 958,926			$5,095,539 - -		$5,117,015
											-
		$965,285		$5,161,789		$1,031,535			$5,095,539

Note:1. Market Value or Net Value: On the basis of the financial statements audited
2. Detail of current increase for $5,161,789 thousand are listed below:
Investment income recognized under equity method.
Other comprehensive income
Changes in associates and joint ventures using the equity method
Changes in ownership interests in subsidiaries
Disposal of investments/subsidiaries using the equity method
Total
3. Details of current decrease for $72,609 thousand are as below:
Other comprehensive income
Proceeds from capital reduction
Investment loss recognized under equity method.
Changes in associates and joint ventures using the equity method
Total

or reviewed by independent auditors in the same period.
$4,479
3,829
15,621
8,115
5,129,745
$5,161,789
$5,089
140
67,380
-
$72,609

－88－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF REFUNDABLE DEPOSITS

DECEMBER 31, 2020

+

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $300 109 44 $453	(In Thousands of New Taiwan Dollars) Amount Remark $300 109 44 $453
Refundable deposits Total	Restaurant deposits Accommodation deposits Others	$300 109 44
		$453

－－ 89

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM LOANS DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Creditor	Description	Beginning Balance	Contract Period	Loan Commitment (Note 3)	Collateral	Remark
TCBBank - Kaohsiung Branch HUA NAN Bank - Gangshan Branch Mega Bank - Kaohsiung Branch Taiwan Cooperative Bank- Fengsung Branch Land Bank - Gangshan Branch Panhsin Bank - Hsin Hsing Branch Taiwan Business Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch Chang Hwa Bank - Chihsien Branch Sunny Bank Bank of Kaohsiung- Operating department First Bank - Hsin Hsing Branch Taiwan Business Bank - Kaohsiung Branch Chang Hwa Bank - Chihsien Branch Mega Bank - Kaohsiung Branch Land Bank - Gangshan Branch Subtotal Sunny Bank Mega Bank - Kaohsiung Branch	Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Mortgage Loan Credit Loan	$99,622 24,898 212,320 282,233 89,695 124,809 172,676 65,699 189,119 49,952 79,925 89,070 1,980 8,535 38,553 86,260	November 17, 2020~May 19, 2021 December 30, 2020~June 28, 2021 September 21, 2020~April 21, 2021 August 28, 2020~June 27, 2021 September 16, 2020~April 18, 2021 September 21, 2020~May 19, 2021 September 2, 2020~June 26, 2021 September 17, 2020~March 17, 2021 October 23, 2020~June 28, 2021 December 29, 2020~ June 28, 2021 November 23, 2020~May 29, 2021 September 23, 2020~May 30,2021 December 28, 2020~June 26, 2021 December 30, 2020~June 28, 2021 December 21, 2020~June 19, 2021 December 28, 2020~June 26, 2021 February 5, 2020~ February 5, 2021 December 11, 2020~ December 11, 2021	NTD 100,000 NTD 60,000 NTD 1,000,000 NTD 433,000 NTD 200,000 NTD 125,000 NTD 240,000 NTD 400,000 NTD 380,000 NTD 300,000 NTD 80,000 NTD 350,000 NTD240,000 NTD380,000 NTD1,000,000 NTD200,000 NTD 300,000 NTD 1,000,000	Demand deposits Demand deposits Time deposits Demand deposits Demand deposits Demand deposits Demand deposits Demand deposits Demand deposits Investment properties-Land Demand deposits Demand deposits Demand deposits Demand deposits Time deposits Demand deposits Investment properties-Land Time deposits	USD 70 USD 300 USD1,354 USD 3,029
		$1,615,346
		$30,000
		$400,000

－－ 90

Creditor	Description	Beginning Balance	Contract Period	Loan Commitment (Note 3)	Collateral	Remark
Taiwan Cooperative Bank- Fengsung Branch Land Bank - Gangshan Branch Sunny Bank Subtotal Total Range of Interest Rates (%)	Credit Loan Credit Loan Credit Loan	150,000 22,321 8,521	July 10, 2020~April 5, 2021	NTD 433,000	Demand deposits Accounts receivable Accounts receivable	USD 635、 EUR 121 USD 299
		$580,842
		$2,226,188
		0.8457%-2.55%

Note 1: Please refer to Note 8 for the collaterals of the above short-term loans. Note 2: Exchange rate as of December 31, 2020: USD:NTD 1:28.48 EUR:NTD 1:35.02

Note 3: Credit lines shown above are the combined limits from each banks.

－－ 91

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Creditor	Contract Period	Issued Amount	Discount	Book Value	Collateral
Commercial Paper	Sunny Bank Total Range of Interest Rates	October 16, 2020~January 14, 2021	$220,000	$146	$219,854	Investment properties-Land
			$220,000	$146	$219,854
					1.87%

－－ 92

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF CONTRACT LIABILITIES DECEMBER 31, 2020

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $22,974 15,415 12,224 6,082 7,428 $64,123	(In Thousands of New Taiwan Dollars) Amount Remark $22,974 15,415 12,224 6,082 7,428 $64,123
Company A Company B Company C Company D Others Total	Unearned sales revenue Unearned sales revenue Unearned sales revenue Unearned sales revenue Under 5%	$22,974 15,415 12,224 6,082 7,428
		$64,123

－－ 93

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF NOTES PAYABLE

DECEMBER 31, 2020

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $14,597 44,154 $58,751	(In Thousands of New Taiwan Dollars) Amount Remark $14,597 44,154 $58,751
Company A Others Total	Trade payable Under 5%	$14,597 44,154
		$58,751

－－ 94

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS PAYABLES

DECEMBER 31, 2020

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $1,462 $1,462	(In Thousands of New Taiwan Dollars) Amount Remark $1,462 $1,462
Others Total	Trade payable	$1,462
		$1,462

－－ 95

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF OTHER PAYABLES

DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

		(In Thousands of New Taiwan Dollars)
Item	Description	Amount Remark
Salaries payable Consumables payable Utility expense payable Fuel cost payable Interest payable Others Total	Salaries Consumables Utility Fuel cost Interest Others	$39,256 28,272 11,667 6,178 7,404 24,813 $117,590

－－ 96

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF PROVISIONS-CURRENT

DECEMBER 31, 2020

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $12,375 $12,375	(In Thousands of New Taiwan Dollars) Amount Remark $12,375 $12,375
Employee benefits Total	Paid leave - current	$12,375
		$12,375

－－ 97

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF ADVANCE RECEIPTS

DECEMBER 31, 2020

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $72 $72	(In Thousands of New Taiwan Dollars) Amount Remark $72 $72
Advance receipts Total	Advance rent	$72
		$72

－－ 98

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF LONG-TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS DECEMBER 31, 2020

Item 10 of Banks syndicated loans Total Less: Unamortized loan discount Less: Current portion of long-term loans Balance of long-term loans Range of interest rates	Description Pledge Loan	Amount $2,817,500 $2,817,500 (5,463) (229,554) $2,582,483 2.4841%	(In Thousands of New Taiwan Dollars) Contract Period Collateral Remark
			February 20, 2019~ March 5, 2024 Land, plant, machinery and equipment

Note: Please refer to Note 8 for the collaterals of the above long-term loans.

－－ 99

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF NET REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2020

Item	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 64,901 $3,898,002 96,888 1,537,087 $5,435,089 47,243 124,748 7,709 57,116 $5,616,953 (26,245) (917) $5,589,791	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 64,901 $3,898,002 96,888 1,537,087 $5,435,089 47,243 124,748 7,709 57,116 $5,616,953 (26,245) (917) $5,589,791
Stainless steel wire Steel wire Subtotal of revenue from finished goods Processing income Revenue from scraps Total Less: Sales return Sales discount Net operating revenue	64,901 96,888 47,243 7,709	$3,898,002 1,537,087
		$5,435,089 124,748 57,116
		$5,616,953 (26,245) (917)
		$5,589,791

－100－

YIEH HSING ENTERPRISE CO., LTD. STATEMENT OF COST OF REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars) Item 2020 Beginning raw materials $746,814 Add: Raw materials purchased 4,476,142 Transfer to finished goods 3,664,074 Less: Ending raw materials (694,559) Others (98) Raw materials used $8,192,373 Beginning supplies $149,242 Add: Supplies purchased 182,466 Less: Ending supplies (146,852) Others (184,856) Supplies used $ - Direct labor 132,901 Factory overheads 847,538 Production cost $9,172,812 Add: Beginning work in progress 39,462 Transfer from finished goods 8,545 Less: Ending work in progress (28,434) Transfer from processing cost (169,528) Transfer from scraps - Cost of finished goods $9,022,857 Add: Beginning finished goods 686,587 Less: Ending finished goods (483,762) Transfer to work in progress (8,545) Transfer to raw materials (3,664,074) Others(Scraps etc.) (56,043) Cost of finished goods sold $5,497,020	(In Thousands of New Taiwan Dollars) Item 2020 Beginning raw materials $746,814 Add: Raw materials purchased 4,476,142 Transfer to finished goods 3,664,074 Less: Ending raw materials (694,559) Others (98) Raw materials used $8,192,373 Beginning supplies $149,242 Add: Supplies purchased 182,466 Less: Ending supplies (146,852) Others (184,856) Supplies used $ - Direct labor 132,901 Factory overheads 847,538 Production cost $9,172,812 Add: Beginning work in progress 39,462 Transfer from finished goods 8,545 Less: Ending work in progress (28,434) Transfer from processing cost (169,528) Transfer from scraps - Cost of finished goods $9,022,857 Add: Beginning finished goods 686,587 Less: Ending finished goods (483,762) Transfer to work in progress (8,545) Transfer to raw materials (3,664,074) Others(Scraps etc.) (56,043) Cost of finished goods sold $5,497,020
Beginning raw materials Add: Raw materials purchased Transfer to finished goods Less: Ending raw materials Others Raw materials used Beginning supplies Add: Supplies purchased Less: Ending supplies Others Supplies used Direct labor Factory overheads Production cost Add: Beginning work in progress Transfer from finished goods Less: Ending work in progress Transfer from processing cost Transfer from scraps Cost of finished goods Add: Beginning finished goods Less: Ending finished goods Transfer to work in progress Transfer to raw materials Others(Scraps etc.) Cost of finished goods sold	$746,814 4,476,142 3,664,074 (694,559) (98)
	$8,192,373
	$149,242 182,466 (146,852) (184,856)
	$ -
	132,901 847,538
	$9,172,812 39,462 8,545 (28,434) (169,528) -
	$9,022,857 686,587 (483,762) (8,545) (3,664,074) (56,043)
	$5,497,020

－101－

Cost adjustment items`：` Cost of scraps sold Others(processing cost etc.) Cost of product Unallocated fixed factory overhead Loss on inventory valuation (recovery gain) Total operating cost	$53,094 169,528
	$5,719,642 84,897 (51,439)
	$5,753,100

－102－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF FACTORY OVERHEAD

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item Indirect labor Supplies Travel Freight Postage Repair and maintenance Packing Utilities Insurance Fuel Processing expense Tax Depreciation Meal Employee benefits/welfare Miscellaneous purchase Indirect materials Expendables Pension Training Transportation Overtime Other Unallocated factory overhead Total	Amount
	$86,134 306 49 1,475 173 107,854 10,752 122,704 32,523 106,303 686 2,602 297,653 4,487 5,217 12 1,153 65,223 4,987 149 678 4,455 76,860 (84,897)
	$847,538

－103－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF SALES AND MARKETING EXPENSE

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item Payroll Rent Supplies Travel Freight Postage Repair and maintenance Insurance Entertain Tax Depreciation Meal Employee benefits/welfare Commission Pension Miscellaneous purchase Overtime Transportation Export Magazine Other Total	Amount
	$18,983 452 112 86 25,389 128 156 2,813 376 1,152 4,826 910 1,001 859 1,059 12 46 383 5,920 7 15,963
	$80,633

－104－

YIEH HSING ENTERPRISE CO., LTD.

STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSE

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars)

Item Payroll Rent Supplies Travel Postage Repair and maintenance Advertising Utilities Insurance Entertain Donation Tax Depreciation Meal Employee benefits/welfare Training Professional service fee Pension Overtime Transportation Miscellaneous purchase Magazine Other Total	Amount
	$36,189 1,322 458 54 379 240 25 16 5,028 3,191 290 2,231 2,165 1,269 1,842 137 4,076 1,655 58 833 14 40 16,384
	$77,896

－105－

AI assistant

YH — Audit Report / Information 2020

51939_rns_2020-11-12_b2508f36-2b8a-4b5a-8987-f1231f9864f5.pdf

Table of Contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Description of key audit matter

How the matter was addressed in our audit

Valuation of inventory

Description of key audit matter

How the matter was addressed in our audit:

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

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Notice to Readers

YIEH HSING ENTERPRISE CO., LTD. STANDALONE BALANCE SHEETS

YIEH HSING ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

YIEH HSING ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

YIEH HSING ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF CASH FLOWS

YIEH HSING ENTERPRISE CO., LTD. NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

1 GENERAL INFORMATION

2 THE AUTHORIZATION OF THE STANDALONE FINANCIAL STATEMENTS

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

3.2 Effect of new issuances or amendments to IFRSs issued by IASB but not yet endorsed:

3.3 The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC:

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of Preparation

4.3 Foreign Currencies

4.4 Classification of Current and Noncurrent Assets and Liabilities

4.5 Cash and cash equivalents

4.6 Financial instruments

(1) Financial assets

C. Derecognition of financial assets

4.7 Inventories

4.8 Investments accounted for using equity method / subsidiaries and associates

4.9 Property, Plant and Equipment

4.10 Leases

4.11 Investment properties

4.12 Impairment of non-financial assets

4.13 Provisions

4.14 Employee benefits

Short-term employee benefits

Pensions

Employees’ compensation and directors’ and supervisors’ remuneration

Termination benefits

4.15 Share capital

4.16 Income tax

4.17 Revenue Recognition

4.18 Borrowing costs

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND MAJOR SOURCES OF ASSUMPTION UNCERTAINTY

5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

5.2 Critical accounting estimates and assumptions

(1) Impairment assessment of tangible and intangible assets

(2) Impairment assessment of investments accounted for using the equity method

(3) Realizability of deferred tax assets

(4) Evaluation of inventories

(5) Calculation of accrued pension obligations

(6) Estimated impairment of financial assets

(7) Process of fair value measurement and evaluation

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

6.2 Financial assets at fair value through profit or loss

3.Please refer to Note 12(2) for credit risk management and evaluation method.

6.3 Accounts receivable, net

6.4 Inventories and operating cost

6.5 Financial assets at fair value through other comprehensive income or loss - noncurrent

6.6 Investments accounted for using equity method

1. Subsidiaries:

(2) Major associates of the Company are as follows:

6.7 Property, Plant and Equipment

6.8 Investment properties

6.9 Short-term Loans

6.10 Short-term notes and bills payable

YH Audit Report / Information 2020