Stock Code: 1457

Yi Jinn Industrial Corp., Limited and its subsidiaries

Consolidated Financial Statements and Independent Auditors’ Report

Year 2021 and 2020

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

Company Address: 7F, No.607, Ruiguang Rd. Neihu Dist., Taipei City TEL: (02)26575859

Table of Content

Items I. Cover II. Table of Content III. Representation Letter IV. Independent Auditors’ Report V. Consolidated Balance Sheets VI. Consolidated Statement of Comprehensive Income VII. Consolidated Statement of Change in Equity VIII. Consolidated Statements of Cash Flows IX. Notes to Consolidated Company Financial Statements (I.) Company history (II.) Date and Procedures of Authorization of Financial Statements for Issuance (III.) Newly Issued or Revised Standards and Interpretations (IV.) Summary of Significant Accounting Policies (V.) Critical Accounting Judgements and Key Sources of Estimation and Uncertainty (VI.) Contents of Significant Accounts (VII.) Transactions with Related Parties (VIII.) Assets Pledged as Collaterals (IX.) Commitments and Contingencies (X.) Losses Due to Major Disasters (XI.) Significant Subsequent Events (XII.) Other (XIII.) Additional Disclosure 1. Information on Major Transactions 2. Information on Reinvesting Enterprise 3. Information on Investment in Mainland China 4. Information on Major Shareholders (XIV.) Segment Information	Page
	1 2 3 4 5 6 7 8 9 9 9～10 10～21 21～23 22～48 48 49 49 50 50 50 50～53 53 53 54 54～55

Items
I.
Cover
II.
Table of Content
III.
Representation Letter
IV.
Independent Auditors’ Report
V.
Consolidated Balance Sheets
VI.
Consolidated Statement of Comprehensive Income
VII.
Consolidated Statement of Change in Equity
VIII.
Consolidated Statements of Cash Flows
IX.
Notes to Consolidated Company Financial Statements
(I.)
Company history
(II.)
Date and Procedures of Authorization of Financial Statements for
Issuance
(III.)
Newly Issued or Revised Standards and Interpretations
(IV.) Summary of Significant Accounting Policies
(V.)
Critical Accounting Judgements and Key Sources of Estimation and
Uncertainty
(VI.) Contents of Significant Accounts
(VII.) Transactions with Related Parties
(VIII.) Assets Pledged as Collaterals
(IX.) Commitments and Contingencies
(X.)
Losses Due to Major Disasters
(XI.) Significant Subsequent Events
(XII.) Other
(XIII.) Additional Disclosure
1. Information on Major Transactions
2. Information on Reinvesting Enterprise
3. Information on Investment in Mainland China
4. Information on Major Shareholders
(XIV.) Segment Information

Page

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Representation letter

The entities that are required to be included in the consolidated financial statements of Yi Jinn Industrial Corporation Limited as of and for the year ended December 31, 2021, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements”. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Yi Jinn Industrial Corporation Limited and Subsidiaries do not prepare a separate set of combined financial statements.

Sincerely yours,

Yi Jinn Industrial Corporation Limited

Chan, Zheng-Tian

March 23, 2022

Independent auditor’s report

To the board of directors

Yi Jinn Industrial Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Yi Jinn Industrial Co., Ltd. and its subsidiaries (the “Group”), which comprise the consolidated balance sheets as of December 31, 2022 and 2021, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years ends December 31, 2022 and 2021, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements represents fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards(IFRSs), International Accounting Standards(IASs), IFRIC Interpretations (IFRIC), and SIC Interpretations(SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the audit of the Consolidated Financial Statements section of out report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled out 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 out audit of the consolidated financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and un forming out opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the Group’s consolidated financial statements for the year ended December 31, 2022 are stated as follows:

Revenue recognition
Please refer to Note 4 (15) “revenue recognition” and for more details please refer to Note 6 (18) “revenue from contracts with customers” of the consolidated financial statement.
4 -

Description of the key audit matters:

The revenue from polyester yarn, polyester processing silk, Tetoron and plain weave fabric products is the main source of operating revenue of Yi Jinn Industrial Co., Ltd., and the risk is in the authenticity of revenue recognition. Because the operating revenue is highly affected by the economic fluctuations, the test of revenue recognition is determined as one of the key audit items for the accountant to audit the financial reports of Yi Jinn Industrial Co., Ltd.

How the matter was addressed in our audit:

Our audit procedures for the above critical review items included understanding the controls over the sales and receipts cycle and reconciling the sales system information with the general ledger; we tested the sales transactions for the period before and after the end of the year, reviewed the evidence of transfer of control of the goods to the buyer, and verified the correctness of the revenue recognition period in order to assess whether the revenue recognition policy of Yi Jinn Industrial Co., Ltd., was in accordance with the relevant standards.

Inventory valuation

For accounting policies related to inventory evaluation, please refer to Note 4 (8) Inventory Recognition in the consolidated financial report; For the uncertainty of accounting estimates and assumptions in inventory evaluation, please refer to Note 5 (2) of the consolidated financial report for details; For the description of inventory evaluation, please refer to Note 6 (5) inventory of consolidated financial report. Description to the key audit matters:

Due to the fluctuation of international raw material prices and market supply and demand, the Group's inventory price and sales volume may fluctuate sharply, resulting in the risk that the inventory cost may exceed its net realizable value Therefore, we determined that the assessment of inventory valuation is a key audit matter.

How the matter was addressed in our audit:

Our principal audit procedures included: understand the management’s inventory management and evaluation policies and whether such policies were performed in actual inventory management and evaluation; carry out the audit procedure to compare the net realizable value adopted by the management with the latest inventory sales price, and evaluate the rationality of the net realizable value of inventory; implement sampling procedure to check the correctness of stock age statement and evaluate the adequacy of inventory allowance of the Group on the financial reporting date.

Other Matter

We have also audited the parent company only financial statements of Yi Jinn Industrial Corp., Limited as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statement in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable

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the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statement as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material disclosure in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of

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the entities for business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit, and form our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonable be expected to outweigh the public interest benefits of such communication.

KPMG Auditors: CHANG, SHU-YING CHIH, SHIH-CHIN The reference : No. Taiwan-Financialnumber of the Securities-VI-0940100754 FSC approval No. Financial-SupervisoryLetter: Securities-auditing1020000737

March 23, 2022

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Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

December 31, 2021 Amount ％ $ 499,153 3 677,531 4 3 - 71,015 - 306,653 2 - - 786,110 4 28,602 - 430,613 3 15,550 - 42,992 -	December 31, 2021 Amount ％ $ 499,153 3 677,531 4 3 - 71,015 - 306,653 2 - - 786,110 4 28,602 - 430,613 3 15,550 - 42,992 -	December 31, 2021 Amount ％ $ 499,153 3 677,531 4 3 - 71,015 - 306,653 2 - - 786,110 4 28,602 - 430,613 3 15,550 - 42,992 -	December 31, 2020 Amount ％ 479,716 3 594,350 1 3 - 74,855 - 416,911 3 5,703 - 671,658 4 77,652 - - - 268,773 2 34,182 - 2,623,803 15 88,867 1 504,094 3 26,491 - 3,436,768 19 10,703563 60 70,234 - 10,988 - 316,006 2 15,157,011 85 17,780,814 100	December 31, 2020 Amount ％ 479,716 3 594,350 1 3 - 74,855 - 416,911 3 5,703 - 671,658 4 77,652 - - - 268,773 2 34,182 - 2,623,803 15 88,867 1 504,094 3 26,491 - 3,436,768 19 10,703563 60 70,234 - 10,988 - 316,006 2 15,157,011 85 17,780,814 100
Amount $ 499,153 677,531 3 71,015 306,653 - 786,110 28,602 430,613 15,550 42,992			Amount 479,716 594,350 3 74,855 416,911 5,703 671,658 77,652 - 268,773 34,182

	2,858,222	16	2,623,803	15
	- 574,694 26,595 3,379,493 11,415,485 70,790 11,550 182,974 15,661,581	- 3 - 18 62 - - 1 84	88,867 504,094 26,491 3,436,768 10,703563 70,234 10,988 316,006 15,157,011	1 3 - 19 60 - - 2 85
$ 18,519,803		100	17,780,814	100

～5～

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

December 31,	2021	December 31, 2020 Amount % 1,353,920 8 38,456 - 52,441 - 217,907 1 143,041 1 15,899 - 439,932 2 7,495 - 2,269,091 12 7,387,362 42 227,114 1 134,049 1 7,748,525 44 10,017,616 56 3,016,476 17 458,206 3 1,401,974 8 65,111 - (325,463) (2) 4,616,304 26 3,146,894 18 7,763,198 44 17,780,814 100	December 31, 2020 Amount % 1,353,920 8 38,456 - 52,441 - 217,907 1 143,041 1 15,899 - 439,932 2 7,495 - 2,269,091 12 7,387,362 42 227,114 1 134,049 1 7,748,525 44 10,017,616 56 3,016,476 17 458,206 3 1,401,974 8 65,111 - (325,463) (2) 4,616,304 26 3,146,894 18 7,763,198 44 17,780,814 100
Amount $ 1,206,005 399,975 91,329 285,409 114,555 31,069 307,079 7,539	%	Amount 1,353,920 38,456 52,441 217,907 143,041 15,899 439,932 7,495
	7 - - 2 1 - 2 -
2,142,960	12	2,269,091
8,149,874 227,078 105,707	44 1 -	7,387,362 227,114 134,049	42 1 1 44
8,482,659	45	7,748,525
10,625,619	57	10,017,616	56
3,016,476 500,655 1,300,929 11,0953 (344,203)	16 3 7 1 (2)	3,016,476 458,206 1,401,974 65,111 (325,463)	17 3 8 - (2)
4,584,810 3,309,374	25 18	4,616,304 3,146,894	26 18
7,894,184	43	7,763,198	44
$ 18,519,803	100	17,780,814	100

(The accompanying notes are an integral part of the consolidated financial statements) Chairman: Chan, Zheng-Tian Managerial Officer: Weng, Mao-Cheng Accounting Supervisor: Lai, Yu-Min

～ 5-1 ～

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Year 2021		Year 2020	Year 2020	％ 101 1 -
Amount	％	Amount
$ 4,175,379 11,550 17,650	100 - -	2,731,362 13,659 10,488
4,146,179 3,590,229	100 87	2,707,215 2,501,874		100 92
555,950	13	205,341		8
129,539 96,384	3 2	112,196 109,712		4 4
225,923	5	221,908		8
- -	- -	(48,642) 970,540		(2) 36
330,027	8	905,331		34
452 41,158 150,168 (125,224) 104	- 1 4 (3) -	1,375 68,798 (35,130) (128,753) (1,334)		- 3 (1) (5) -
66,658	2 10 1	(95,044)		(3)
396,685 30,553		810,287 177,966		31 7
366,132	9	632,321		24
-	-	(75,635)		(3)
366,132	9	556,686		21
70,600 -	2 -	114,054 -		4 -
70,600	2		114,054	4 4
70,600	2		114,054
$ 436,732	11		670,740	25
$ 200,603 165,529	5 4		644,257 (87,571)	24 (3)
$ 556,686	21		556,686	21
$ 246,445 190,287	6 5		7460,33 (75,293)	28 (3)
$ 436,732	11		670,740	25
$ -	0.90			3.23 (0.34)
$	0.90			2.89
$ -	0.90			3.22 (0.34)
$	0.90			2.88

(The accompanying notes are an integral part of the consolidated financial statements) Chairman: Chan, Zheng-Tian Managerial Officer: Weng, Mao-Cheng Accounting Supervisor: Lai, Yu-Min

～ 6 ～

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd. and Subsidiaries Consolidated Statement of Change in Equity

For the years ended December 31, 2021 and 2020

			Equityatt	ributable to sharehold	ers of the Parent
Share capital	capital surplus 419,079 - - - - - - - 37,779 - 5,871 (4,523) - - 458,206 - - - - - - 36,426 - 5,368 655 - 500,655	Legal reserve 189,279 - - - 23,030 - - - - - - - - - 212,309 - - - 65,999 - - - - - - - - 278,308	Retained	earnings		Other equity items Unrealized gain Or losses on FVTOCI Financial assets (20,939) - 101,776 101,776 - - - - - - - - - (15,726) 65,111 - 45,842 45,842 - - - - - - - - - 110,953	Treasury stock (324,680) - - - - - - (783) - - - - - - (325,463) - - - - - - - (850) 7,079 (24,969) - (344,203)	Total equity attributable to owners ofparent 4,133,575 644,257 101,776 746,033 - - (301,648) (783) 37,779 - 5,871 (4,523) - - 4,616,304 200,603 45,842 246,445 - (301,648) - 36,426 (850) - - 12,447 (24,314) - 4,584,810
Common stock			Special reserve - - - - - 20,939 - - - - - - - - 20,939 - - - - - (20,939) - - - - - - -	Unappropriated retained earnings 854,360 644,257 - 644,257 (23,030) (20,939) (301,648) - - - - - - 15,726 1,168,726 200,603 - 200,603 (65,999) (301,648) 20,939 - - - - - - 1,022,621	total 1,043,639 644,257 - 644,257 - - (301,648) - - - - - - 15,726 1,401,974 200,603 - 200,603 - (301,648) - - - - - - - 1,300,929
3,016,476 - - - - - - - - - - - - - $ 3,016,476 - - - - - - - - - - - - $ 3,016,476

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

Accounting Supervisor: Lai, Yu-Min

Chairman: Chan, Zheng-Tian

Managerial Officer: Weng, Mao-Cheng

～ 7 ～

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Cash flow from operating activities: Income from continuing operation before income tax Loss from discontinued operation Net income before income tax Adjustment for： Income and expense Depreciation expense Amortization expense Expected credit losses recognized on investments in debt instruments Interest expense Interest income Dividend income Share of profit(loss) of associates and joint ventures accounted for using equity Loss on disposal of property, plant and equipment Acquisitions of investment property loss Disposal of non-current assets held for sale Impairment loss on non-financial assets Valuation gain on financial assets Loss of determination of lease Rental income Total income and expense Changes in operating assets and liabilities: Net changes in operating assets: Financial assets at fair value through profit or loss, mandatorily measure at fair value Note receivable Account receivable Inventories Prepayment Other current assets Other financial assets Total Net changes in operating assets Net changes in operating liabilities: Contract liabilities Note payable Account payable Other payable Other current liabilities Total net changes in operating liabilities Total Net changes in operating assets and liabilities Total adjustment Cash generated by operating activities Interest received Dividend received Interest paid Income taxes paid Net cash generated by operating activities	Year 2021	Year 2020 810,287 (75,635)
	$ 396,685 -
	396,685 170,644 4,110 - 125,224 (452) (27,581) (104) (3,566) - - - (162,489) 54 (511)	734,652 142,898 1,514 (378) 128,753 (1,375) (56,963) 1,334 5,406 48,642 (970,540) 45,262 (66,740) 22 (897)
	105,329	(723,062)
	180,792 3,840 110,258 (114,452) 49,050 (8,664) 33,777	(368,201) 57,605 46,308 259,172 (42,092) (16,159) (36,461)
	254,601	(99,828)
	61,519 38,888 67,502 (26,044) 44	31,332 4,138 (3,494) (27,129) (3,944)
	141,909	903
	396,510	(98,925)
	501,839	(821,987)
	898,524 452 27,581 (127,666) (10,272)	(87,335) 1,375 56,963 (125,934) (169,529)
	788,619	(324,460)

～ 8 ～

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Cash flows from investing activities: Disposal of investments accounted for using equity method Disposal of non-current assets held for sale Acquisition of property, plant and equipment of property, plant and equipment Acquisition of investment property Increase/Decrease in other financial assets Increase in other noncurrent asset Net cash flows from investing activities Cash flows from financing activities: Increase (decrease) in short-term loans Proceeds for long-term debt Repayments of long-term debt Increase in deposits received Cash dividends paid Cash Dividends contributes by subsidiaries Cost of treasury stock acquired Increase in non-controlling interests Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	Year 2021 171,202 42,117 (43,917) 3,858 (249,519) (251) (840,328) (916,838) (147,915) 1,272,150 (642,491) (28,342) (223,183) (106,622) (1,790) 25,849 147,656 19,437 479,716 $ 499,153		Year 2020 10,451 3,071,132 (113,087) 12,793 (1,867,673) 3,621 (7,744)

			1,109,493
			(807,481) 2,617,480 (2,373,750) 61,658 (263,869) (75,217) (1,647) 23,769
			(819,057)
			(34,024) 513,740
			479,716

(The accompanying notes are an integral part of the consolidated financial statements) Chairman: Chan, Zheng-Tian Managerial Officer: Weng, Mao-Cheng Accounting Supervisor: Lai, Yu-Min

- 8-1-

Yi Jinn Industrial Corp., Ltd Notes to Consolidated Company Financial Statements For the years ended December 31, 2021 and 2020

(Amount in Thousands of New Taiwan Dollars, unless specified otherwise)

I. Company history

Yi Jinn Industrial Corp., Ltd (The “Company”) has been officially listed in the Taiwan Stock Exchange on October 20, 1994. The registered address of the consolidated company is 7[th] Floor, No.607, Ruiguang Rd., Neihu Dist., Taipei City. The 2022 consolidated financial statement includes the Company and its subsidiaries (hereafter as the consolidated company). The main scope of business of the consolidated company is, as follows:

Manufacturing, processing and trading business of all kinds of artificial and natural fibre and its false twist.
Manufacturing, processing and trading business of all kinds of bulk continuous filament, nylon stretch yarn, Tetoron of synthetic fibre, fabrics of male or female ready-to-wear and its dyeing and finishing.
Import and export trading business of raw materials, materials and final products of items mentioned in two preceding paragraphs.
Commissioning construction enterprises to build public housing and commercial buildings for lease and sale.
Commission construction enterprise to develop industrial area approved by industrial supervisory authority.
Real estate trading and leasing business.

Other main business scope of consolidated and parent only company, please refer to Note 4(3).

II. Date and procedures of authorization of financial statements for issuance
The accompanying consolidated financial statements were approved and authorized for issue by the board of directors on March 23, 2022.
III. Newly issued or revised standards and interpretationss
Impact of adoption of newly issued and amended standards and interpretations endorsed by the Financial Supervisory Commission (FSC).
- The Company started to adopt the following amendments to the IFRSs from January 1, 2021, which did not have a significant effect on the Company’s consolidated financial reports.
- Amendments to IFRS 4, "Temporary Exemption from the Extension of IFRS 9".
- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, "Changes in Interest Rate Indicators - Phase II". The Company applies the following new amendments to IFRSs effective April 1,
- 2021, which have no significant impact on individual financial statements.
- Amendments to IFRS 16, "Rent Reductions Related to COVID-19 after June 30, 2021
The impact of not adopting the international financial reporting standards endorsed by the FSC The Company evaluates that the following amendments to IFRS standards, effective from January 1, 2021, will not have a significant impact on the parent company only financial reporting..
- Amendments to IAS 16, "Property, Plant and Equipment - Price before reaching Intended Use".
- Amendments to IAS 37, "Loss-making Contracts - Costs of Fulfillment of Contracts
- Annual Improvements to IFRSs for the 2018 2020 Cycle
- Amendments to IFRS 3, "References to Conceptual Framework".
9 -
Newly issued and amended standards and interpretations not yet endorsed by the FSC. The IFRSs issued and amended by IASB but not yet endorsed by the FSC, which may be related to the consolidated company, are as follows:

Newly issued or Amended Effective Date Standards Main Amended Content Issued by IASB Amendment to IAS 1, The amendment is to improve the January 1, 2023 “Classification of Liabilities consistency of the standards, to assist as Current or Non-current” the enterprise to determine the debts of uncertain settlement day or other liabilities of the balance sheet to fall under current (may be due within one year) or non-current. The amendment also stated that the enterprise may transfer liability to equity in classification.

The consolidated company is still evaluating the effect on the company’s financial status and operating result by the abovementioned standards and interpretation, further related effects may be disclosed when the evaluation completed.

The consolidated company expects that other newly issued and amended standards not yet endorsed by the FSC did not result in significant impact on the consolidated statements.

IV. Summary of significant accounting policies

The summary of significant accounting policies is as follows. The following accounting policy is applied in this consolidated financial statement, unless otherwise stated.

Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuer and the IFRSs endorsed by the FSC, as well as the IFRSs, IASs, interpretations and announcements of interpretation endorsed and issued into effect by the FSC (hereinafter referred to as "IFRSs endorsed by the FSC")

Basis of preparation
(1) Basis of measurement

The accompanying consolidated financial statements have been prepared on the historical cost basis except for the significant items of balance sheet as below:

i. Financial Asset measured at fair value through income and loss; and
ii. Financial Asset measured at fair value through other comprehensive income and loss
(2) Functional currency and presentation currency

The functional currency is the currency for the economic environment in which the consolidated company operates. The consolidated financial statement is in our functional currency and presented in New Taiwan Dollars. All of the information provided in this financial statement is presented in Thousands of New Taiwan Dollars.

Basis of consolidation
(1) Basis of preparing the consolidated financial statement

The consolidated financial statements incorporate the financial statements of the Company and the individual entities it controls (i.e. its subsidiaries). The Company controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its control over the investee.

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The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Transactions and balances, and any unrealized income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. The comprehensive income from subsidiaries is allocated to the Company and its noncontrolling interest, even if the non-controlling interests have a deficit balance.

When necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies into line with those used by the consolidated company. Changes in the consolidated company’s ownership interests in subsidiaries that do not result in the loss of control over its subsidiaries are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the shareholders of the Company.

(2) Subsidiaries included in the consolidated financial statement List of the subsidiaries included in the consolidated financial statement:

Name of the investment company	Name of the subsidiaries	Scope of Business	Percentage of shareholding	Percentage of shareholding	Explanations
			December 31, 2021	December 31, 2020
			46.81% 35.33% 38.53% 27.70% 33.33% 61.25% 8.03% 12.15% 7.57% 25.00% 1.00% - 0.12% 0.12% 5.30% 10.06% - 4.00% 6.19%	46.05% 35.33% 38.53% 27.70% 33.33% 61.25% 8.03% 12.15% 7.57% 25.00% 1.00% 1.50% 0.12% 0.12% 5.30% 10.06% 0.76% 4.00% 6.19%
	Yi Tong Fiber Co., Ltd. Xin Mao Investment Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Hung Chou Fiber Industry Co., Ltd Da Tian International Co., Ltd. Da Yi International Development Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Xin Mao Investment Co., Ltd. Hung Chou Fiber Industry Co., Ltd Da Tian International Co., Ltd. Da Yi International Development Co., Ltd. Yi Tong Fiber Co., Ltd. Hung Chou Fiber Industry Co., Ltd Kwang Ming Silk Mill Co., Ltd. Hung Chou Fiber Industry Co., Ltd Da Yi International Development Co., Ltd. Yi Tong Fiber Co., Ltd. Da Yi International Development Co., Ltd. Da Yi International Development Co., Ltd.	Real Estate Rental or trading Investment Cotton filament, artificial fibre and others manufacturing, processing and trading business Synthetic fibres, plastic filament manufacturing, processing and trading business Real Estate Rental or trading Real Estate Rental or trading Cotton filament, artificial fibre and others manufacturing, processing and trading business Investment Synthetic fibres, plastic filament manufacturing, processing and trading business Real Estate Rental or trading Real Estate Rental or trading Real Estate Rental or trading Synthetic fibres, plastic filament manufacturing, processing and trading business Cotton filament, artificial fibre and others manufacturing, processing and trading business Synthetic fibres, plastic filament manufacturing, processing and trading business Real Estate Rental or trading Real Estate Rental or trading Real Estate Rental or trading Real Estate Rental or trading			Note Note Note Note - - Note Note Note - - Note Note Note Note - Note - -
The company The company The company The company The company The company Yi Tong Fiber Co., Ltd. Yi Tong Fiber Co., Ltd. Yi Tong Fiber Co., Ltd. Yi Tong Fiber Co., Ltd. Yi Tong Fiber Co., Ltd. Xin Mao Investment Co., Ltd. Xin Mao Investment Co., Ltd. Xin Mao Investment Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Da Tian International Co., Ltd. Hung Chou Fiber Industry Co., Ltd

Note: The consolidated company does not directly or indirectly hold over 50% of the shares, but has substantial control over the company, therefore the company is regarded as a subsidiary.

(3) Subsidiaries not included in the consolidated financial statement: N/A
Currency

Transactions in foreign currencies

Foreign currency transactions are translated into functional currencies at the exchange rate

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on the transaction date. At the end of each reporting period (hereinafter referred to as the “reporting date), monetary items denominated in foreign currencies are retranslated into the functional currency at the rates prevailing at that date. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated into the functional currency at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in foreign currencies are translated at the rates of exchange prevailing at the dates of the transactions.

Exchange differences arising, if any, are recognized in profit or loss, but are recognized as other comprehensive income in the following circumstances:

(1) Designated as equity instrument at fair value through other comprehensive income;
(2) Designated as net investment of the operation in overseas and effective hedging in financial liability; or
(3) Qualified cash flow is within the effective range of hedging
Classification of current and non-current assets and liabilities

Assets meeting one of the following criteria are classified as current assets, and all other assets not classified to the current assets are classified as non-current assets:

(1) Assets expected to be converted to cash or intended to be sold or consumed in its normal business cycle;
(2) Assets held for trading purpose;
(3) Assets expected to be converted to cash within one year from the end of the reporting date; or
(4) Assets as cash or cash relevant, but the assets with other restrictions (used for exchange or to settle liabilities at least 12 months after the reporting period) shall be excluded. Liabilities meeting one of the following criteria as current liabilities, and all other liabilities
not classified to the current liabilities are classified as non-current liabilities:
(1) Liabilities expected to be settled with in one normal operating period;
(2) Liabilities held for trading purposes;
(3) Liabilities expected to be settled within one year from the end of the reporting date; or
(4) Liabilities that have not the right to defer the due date to the 12 months after the reporting date, unconditionally. The condition of liabilities may be settled by the issuing of equity instrument at the choice of the counter party of the transaction, which will not affect the classification.
Cash and cash equivalent

Cash includes cash in hand and cash deposit. Cash equivalent refers to short-term and highly liquid investments that are readily convertible to fixed amounts of cash and with low risk of value change. Time deposits that meet the above definition and are held for the purpose of meeting short-term cash commitments rather than investment or other purposes are recognized in cash equivalents..

Financial instruments

Account receivable and the bond issued are recognized when it happens. All of the other financial assets are recognized when the Company becomes one of the parties to a financial instrument contract. Financial assets that are not measured at the fair value (except the account receivable as part of the significant financial composition) or original financial liabilities are measured at the fair value plus the transaction cost directly attributable to their acquisition or issuance. Account receivable not as part of the significant financial composition shall be measured by the price of transaction.

(1) Financial Assets

The financial assets purchased or sold in regular ways are recognized and derecognized on a trade date or settlement date basis for which financial assets were

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classified in the same way, respectively.

At the original recognition, the financial assets are classified into: financial assets measured at amortised cost, investment in equity instruments measured at fair value through other comprehensive income or financial assets measured at fair value through profit or loss. The consolidated company reclassified the affected financial assets from the first day of next reporting date only when it changes its management mode of financial assets.

i. Financial assets at amortised cost

The financial assets that fall under the following criteria and not designated to be measured at fair value are measured at amortised cost:

Financial assets are held under the management mode for the purpose of receiving cash flow from the contract.
Cash flow on the certain date under the contract of financial assets is solely for paying the principal and the interest of principal outstanding.

These assets are subsequently measured at amortised cost calculated by the original recognized amount plus or minus the accumulated amortisation calculated by the effective interest method, and after adjusting any impairment loss. Interest income, foreign exchange gains and losses and impairment losses are recognised as profit and loss. At derecognition, the profit or loss shall be recognized in profit and loss.

ii. Financial assets measured at fair value through other comprehensive income

On initial recognition, the consolidated company may irrevocably select to recognize the subsequent changes in fair value of equity instrument investment not held for trading in other comprehensive profits and losses. The above selection is based on the item by item basis.

Investments in equity instruments are subsequently measured at fair value. Dividends income is recognized in profit or loss unless it clearly represents a recovery of part of the cost of the investment. Other net income or loss are recognized as other comprehensive income and not reclassified into profit and loss.

Dividend income of the equity investment is recognised on the date the Company has the right to obtain the dividends (usually the ex-dividend date).

iii.Financial assets at fair value through profit or loss

Financial assets that are not measured at amortised cost or at fair value through other comprehensive income are measured at fair value. At the time of original recognition, in order to eliminate or significantly reduce the accounting mismatch, the consolidated company may irrevocably designate financial assets that meet the conditions of measuring at amortised cost or at fair value through other comprehensive profit and loss as financial assets measured at fair value through profit and loss.

Such assets are subsequently measured at fair value and their net income or loss (including any dividend and interest income) is recognised as profit and loss.

iv. Impairment loss on financial assets

The consolidated company recognised the expected credit loss of the financial assets measured at amortised cost (including cash and cash equivalent, notes receivable, accounts receivable, other receivables, refundable deposit and other financial assets) as the allowance for loss.

The allowance for loss of the financial assets meeting the following circumstances are measured at the amount of the expected credit loss within 12 months and the rest are measured at expected credit loss during the lifetime:

The credit risk of the debt securities on the reporting date is determined to be low, and
The credit risk of other debt securities and bank deposits (that is, the risk of default during the expected life of financial instruments) has not increased significantly since
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the original recognition.

The allowance for loss of accounts receivable is measured by the amount of expected credit loss during the lifetime.

When measuring if the credit risk is significantly increased after the initial recognition, the consolidated company may consider from reasonable and verifiable information (that can be acquired without excessive cost or effort), including qualitative and quantitative information, and analysis made based on the historical experience, credit evaluation and forward-looking information of the company.

If the payment of contract is due over 90 days, the expected credit loss of the company is increased significantly.

If the payment of contract is due over 180 days or the borrower is unlikely to perform its credit obligation to repay the company with full amount, the company assumed that the financial assets are in breach of contract.

Expected credit losses are the weighted estimate of the ratio of credit loss during the lifetime of the financial instrument. Credit loss is measured under the current value of the cash shortfall, which is the difference between the cash inflow according to the contract and the cash inflow expected. The expected credit loss is discounted under the effective interest rate of the financial asset.

The company estimates the credit loss of financial asset at amortised cost and debt securities at fair value through other comprehensive income on each reporting date. When one or more of the matters that may affected the expected future cash flow of the financial assets occurred, the financial asset is in credit loss. The evidence of credit loss of financial assets includes observable data on the following matters:

The borrower or issuer is under significant financial difficulties;
Breach of contract, like lag or due over 180 days;
Due to economic or contractual reasons with related to the financial difficulties of the borrower, the company offers the borrower certain concession that originally will not be considered.
The borrower will possibly file in bankruptcy or other financial reorganization; or
The active market of the financial asset may disappear due to the financial difficulties. The impairment loss of the financial assets at amortised cost is deducted from the
book value of the assets.

When the company cannot reasonably expect to recover the whole or part of the financial assets, it will directly reduce the total amount of the financial assets. For company accounts, the company analyses the time point and amount of write-off on the basis of whether it reasonably expects to be recoverable. The expected write-off amount will not be reversed significantly. However, the financial assets already written off still can be enforced in order to fulfil the procedure of recovering overdue amount of the Company.

v. Derecognition of financial assets

The company will only derecognize the financial assets when the contractual rights from the cash flow of the assets are terminated, or the financial assets have been transferred and almost all the risks and rewards of the ownership of the assets have been transferred to other enterprises, or almost all the risks and rewards of the ownership have not been transferred or retained and the control of the financial assets has not been retained.

If the company enters into a transaction of transferring financial assets and retains all or almost all the risks and rewards of the ownership of the transferred assets, it will continue to be recognized in the balance sheet.

(2) Financial Liability and equity instrument
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i. Classification of debt and equity Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
ii. Transaction of equity

Equity instruments represent the contract of residual interest after the deduction of assets from the liability. The amount of equity instrument is recognised based on the acquired amount less the direct issuing cost.

iii. Treasury Stock

When the company buys back the equity instrument recognised, the consideration it paid (including the directly attributable cost)is recognized as the reduction of the equity. Shares bought back by the company is categorised as the treasury stock. The amount collected for further sale or reissuing of treasury stock is recognized as increase in equity, and the balance or loss of the transaction is recognized as capital surplus or retained earnings (if the capital surplus is not insufficient for offset).

iv. Financial Liabilities

Financial liabilities are subsequently measured at amortised cost under effective interest. Interest expense and exchange income (loss) are recognized in profit and loss. Upon derecognition, any income or loss shall be recognized in income and loss.

v. Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or expire. When the terms of financial liabilities are amended and there is a significant difference in the cash flow of the amended liabilities, the original financial liabilities are derecognized and new financial liabilities are recognized at fair value on the basis of the amended terms.

When the financial liabilities are derecognised, the difference between the carrying amount and the total consideration paid or payable (including any non-cash assets transferred or liabilities assumed) is recognised in profit and loss.

vi. Offsetting of financial assets and liabilities

Financial assets and financial liabilities can only be offset and expressed in net amount in the balance sheet when the company has the right to offset legally and intends to deliver the assets with net amount or realize the assets and settle the liabilities simultaneously.

Inventories

Inventories are measured by the cost and the net realizable value, whichever is lower. The cost includes the acquisition, manufacturing or processing costs and other costs incurred in making it available for use, and is calculated by the weighted average method. The cost of finished goods and work in progress inventory includes the manufacturing cost apportioned according to the normal production capacity in an appropriate proportion.

Net realizable value refers to the balance of the estimated selling price under normal operation minus the estimated cost still to incur upon completion and the estimated cost for sale.

Non-current assets held for sale and discontinued operations
(1) Non-current assets held for sale

Non-current assets or disposal groups composed of assets and liabilities are classified as being held for sale when it is highly likely that their carrying amount will be recovered through sale rather than continuous use. The asset or components of the disposal group shall be re measured in accordance with the accounting policies of the company before the original classification to be sold. After classified as to be sold, it is measured on the basis of the lower of its carrying amount and fair value minus cost to sell. The impairment loss of any disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata

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basis. However, the loss is not allocated to assets that are not within the scope of IAS 36: Impairment. The above items shall continue to be measured in accordance with the accounting policies of the company. The impairment loss originally classified as to be sold and the profits and losses arising from subsequent re-measurement are recognized as profits and losses, but the recovered profits shall not exceed the recognized cumulative impairment loss.

Depreciation or amortization shall not be recognized for property, plant and equipment held for sale. When an associated enterprise recognized by the equity method is classified as to be sold, the equity method shall be discontinued.

(2) Discontinued operations

The discontinued operations refer to the compositions of the Company that are disposed or held for sale and:

Operating operations are categorised discontinued operations at the earlier stage of disposal or meeting the criteria for held for sale.

10. Investing affiliated enterprise

Affiliated enterprise refers to a company that has significant influence on the financial and operating policies of the consolidated company, but is not the controller or joint controller.

The consolidated company adopts the equity method to deal with the rights and interests in the affiliated enterprises. Under the equity method, the original acquisition is recognized at cost, and the investment cost includes the transaction cost. The carrying amount of an investment in an affiliated enterprise includes the goodwill recognized at the time of the original investment, less any accumulated impairment losses.

The consolidated financial statement includes the amount of profit and loss and other comprehensive profit and loss of each investment affiliated enterprise recognized by the consolidated company according to the proportion of equity after adjustment consistent with the consolidated company's accounting policies from the date of significant influence to the date of loss of significant influence. When the non-profit equity change and the equity change of other comprehensive profit and loss occurs in the affiliated enterprise, which does not affect the shareholding ratio of the consolidated company, the consolidated company will recognize the equity change under the shares of the affiliated enterprise attributable to the consolidated company as capital reserve according to the shareholding ratio.

The unrealized gains or loss from the transactions between the consolidated company and the affiliated enterprise are recognized in the financial statement only within the scope of the rights and interests of non-related party investors in affiliated enterprises.

When the loss share of the affiliated enterprise recognized by the consolidated company in proportion is equal to or more than its rights and interests in the affiliated enterprise, the consolidated company shall stop recognizing its losses, and recognize additional losses and related liabilities only within the scope of legal obligations, presumptive obligations or payments made on behalf of the invested company.

Investment property

Investment property refers to the property held for rent or asset appreciation, or both, rather than for normal business sale, production, provision of goods or services, or for administrative purposes. The original investment property is measured by cost, and subsequently is measured by cost less accumulated depreciation and accumulated impairment. The depreciation method, service life and residual value of investment property are subject to the provisions of real estate, plant and equipment.

Profit or loss from disposal of investment property (calculated in the difference of net disposal amount and the book value) are recognized in profit and loss.

Rental income of the investment property during the leasing period is recognized as operating income under the straight-line method and the leasing incentives are recognized as

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part of the leasing revenue.

The estimated service life in the current and the comparative period is as follows:: Building and Structures 3~ 50 Years

12. Property, plant and equipment

(1) Recognition and measurement

Property, plant and equipment are measured by the cost (including the cost of loans in capital) deducted the accumulative depreciation and all of the accumulative impairment.

If the significant part of property, plant and equipment is with different service life, it is regarded as the individual items (major components) of property, plant and equipment.

The profit or loss from disposal of property, plant and equipment are recognised as profit and loss.

(2) Subsequent expenditure

Subsequent expenditure is capitalized only when its future economic benefits are likely to flow into the company.

(3) Depreciation

Depreciation is calculated by the assets cost less the residual value and is recognized in profit or loss within the estimated service life each component using the straight-line method No depreciation is recognized for land.

The estimated service life of current and the comparative period is as follows:

Building and Structure	2～55 Years
Machinery and Equipment	1～15 Years
Utilities Equipment	2～20 Years
Transportation Equipment	3～10 Years
Office Equipment	1～11 Years
Rental Assets	3～20 Years
Other Facilities	3～50 Years

The company reviews the method of depreciation, service life and residual value at every

reporting date and makes appropriate adjustment if necessary.

(4) Reclassification to investment property

If the property changes the purpose of its property from self-use to investment, the carrying amount of the property is reclassified as investment property when the use of property changes.

13. Leasing

(1) Determination of leasing

The consolidated company determines whether the contract is leasing or includes leasing on the day of conclusion of contract. If the contract can be determined to obtain the control of an asset within the period of time to receive the consideration, then it is considered as leasing or including leasing:

1.The company as lessee

The consolidated company recognised the right-of-use asset and the leasing liability on the date the lease starts. The right-to-use assets are originally measured at cost, which includes the original measured amount of lease liabilities, adjustment of any lease payments paid on or before the lease start date, addition of the original direct costs incurred and the estimated costs for dismantling, removing and restoring the target assets, and deduction of any lease incentives received.

The depreciation of the right-of-use asset is recognized from the beginning of the lease to the expiry of the service life of the right-of-use assets or when the lease terminates, which is earlier, by the straight-line-method. In addition, the consolidated company shall evaluate

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the impairment of the right-of-use assets and handle all of the impairment loss occurred and adjust the right-of-use asset when re-measurement of leasing liabilities occurs.

The initial measurement of the leasing liability is on the present value of the lease payment payable from the commencement of lease. If the implied interest rate of the lease is easy to determine, the discount rate shall be the interest rate. If it is not easy to determine, the incremental borrowing rate of the company shall be used. Generally speaking, the company adopts its incremental loan interest rate as the discount rate.

The leasing payment measured under the leasing liability includes:

i. Fixed payment, including the substantial fixed payment;
ii. Variable lease payment depends on an index or a rate are included in the initial measurement of the lease liability;
iii. Amounts expected to be payable by the lessee under residual value; and
iv. The exercise amount of purchase option or termination option or the penalty to be paid when it is reasonably determined that the purchase option or lease termination option will be exercised.

The lease liability is subsequently re-measured to reflect changes in:

i. An index or a rate used to determine the payment;
ii. The amounts expected to be payable under residual value guaranteed;
iii. The assessment of a purchase option;
iv. Estimation on extension or termination option to change in the rental duration;
v. Lease objectives, scope or other terms.

The lease liability is adjusted in the book value of the right-of-use assets when the above-stated change in index or rate, residual value guaranteed, and assessment of purchase, extension and termination. When the book value of right-of-use assets deducted to zero, the remaining balance shall be recognised in profit or loss.

For a lease modification that reduces the scope of the lease, the carrying amount of the right-to-use asset is reduced to reflect the partial or full termination of the lease, and the difference between it and the re-measured amount of the lease liability is recognized in profit or loss.

The consolidated company represents the right-of-use assets and leasing liability disqualified the definition of the investment property in single item on the balance sheet.

For short-term leasing of machinery equipment and office equipment or lease of subjects with low value, the consolidated company selects to not recognise them as rightof-use asset and leasing liability but to recognise the leasing payment as expenses within the duration of leasing under straight-line-basis.

The company as lessor

For the transactions with the consolidated company as lessor, a lease is classified as finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise a lease is classified as an operating lease. In the evaluation, the company considers whether the lease term covers the main part of the economic life of the target asset and other relevant specific indicators.

If the consolidated company is an intermediate lessor, it shall account the head lease and a sublease separately, and the head lease is classified as right-of-use asset assessed subtle transaction. If the head lease is a short-term lease and the recognition exemption is applicable, the sublease transaction should be classified as an operating lease.

If the agreement consists of leasing and non-leasing parts, the consolidated company allocates the consideration in the contract in accordance with IFRS 15.

For operating leases, the consolidated company adopts a straight-line basis to recognize the lease payments received as rental income during the lease term.

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14. Impairment of non-financial assets

The consolidated company reviews its book value of non-financial assets for indications of impairment at the end of each report date. If any indication of impairment exists, the asset’s recoverable amount is estimated.

For the purpose of impairment test, a group of assets with cash inflow mostly independent of other individual assets or asset groups is regarded as the smallest identifiable asset group.

The recoverable amount is the higher of the fair value of an individual asset or cash generating unit less disposal costs and its value in use. When evaluating the value in use, the estimated future cash flow is converted to the present value at the pre-tax discount rate, which should reflect the current market assessment of the time value of money and the specific risk of the asset or cash generating unit.

The impairment loss is recognized when the carrying amount of an individual asset or cash generating unit exceeds its recoverable amount.

The impairment loss is recognized immediately in profit and loss, and the carrying amount of the amortization goodwill of the cash generating unit is reduced first, and then the carrying amount of each asset is reduced in proportion to the carrying amount of other assets in the unit. For non-financial assets other than goodwill, they can only be reversed within the range not exceeding the carrying amount (less depreciation or amortization) determined when the impairment loss of the asset was not recognized in the previous year.

15. Income recognition

1. Income from contracts with customers

Income is measured according to the consideration expected to be obtained by transferring goods or services. The consolidated company recognizes the income when the control over goods or services is transferred to customers and the performance obligations are met.The description of the main income of the consolidated company as follows: (1) Sales of goods

The consolidated company recognizes income when the control over the products is transferred. The transfer of control over the product means that the product has been delivered to the customer, and the customer can completely determine the sales channel and price of the product, and there is no un-performed obligation that will affect the customer's acceptance of the product. Delivery occurs when the product is delivered to a specific place, the risk of obsolescence and loss has been transferred to the customer, the customer has accepted the product according to the sales contract, the acceptance terms have expired, or the company has objective evidence that all acceptance conditions have been met.

The consolidated company recognises receivables from the time of goods delivery as the consolidated company has the right to receive the price of transaction, unconditionally. (2)Composition of finance

The consolidated company expected that the time between transferring the goods or services to the clients and the time of customer payment for the goods or services should be within a year. Therefore, the consolidated company does not make any adjustment on the time value of currency for the price of transaction.

16. Government grants

The consolidated company recognizes the government grants subject to the attached conditions as other income when it can receive the government subsidy related to the company's operation. Other assets related subsidies will be recognized by the consolidated company as asset reduction according to fair value when it can reasonably believe that it will comply with the conditions attached to the government grants and can receive the government grants. These assets shall be recognized as the loss and profit on a systematic basis. The government grants for compensation for the expenses or losses incurred by the

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consolidated company is recognized as profit and loss based on the systematic basis in the same period of the recognition of related expenses.

17. Employees’ benefits

(1) Defined benefit plans

The allocation obligation of defined benefit pension plans is recognized as expenses while the employees are under service duration.

(2) Short-term employee benefit

Short-term employee benefit is recognized as expense while the service is provided. If the consolidated company has the current legal or constructive payment obligation due to the past service provided by the employees, and the obligation can be estimated reliably, the amount shall be recognized as a liability.

18. Income tax

Income tax consists of current tax and deferred tax. Except for expenses related to business merger or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current tax comprises the expected tax payables or receivables on the taxable profits (losses) for the year and adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, the following temporarily differences not recognized as deferred tax:

(1) The initial recognition of an asset or liability other than in a business combination which, at the time of the transaction, does not affect accounting profit or taxable profit;
(2) Temporarily differences associated with investment in subsidiaries and affiliated enterprise, but only to the extent that the consolidated company is able to control the timing of the reversal of the differences and it is probable that the reversal will not occur in the foreseeable future; and
(3) Taxable temporary differences arising from the original recognition of goodwill. Deferred taxes shall be measured at the tax rates that are expected to apply to the period

A deferred tax asset should be recognized for the carry-forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profit will be available against which the unused tax losses, unused tax credits, and deductible temporary differences can be utilized. Such unused tax losses, unused tax credits, and deductible temporary differences shall also be re-evaluated every year on the financial reporting date, and adjusted based on the probability that future taxable profit will be available against which the unused tax losses, unused tax credits and deductible temporary differences can be utilized.

when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities may be offset against each other if the following criteria are met:

(1) The consolidated company has the legal right to offset the current income tax assets and current income tax liabilities; and
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(2) The taxing of deferred tax assets and liabilities fulfil one of the below scenarios: i. Levied by the same taxing authority; or
ii. Levied by different taxing authorities, but where each such authority intends to settle tax assets and liabilities (where such amounts are significant) on a net basis every year of the period of expected asset realization or debt liquidation, or where the timing of asset realization and debt liquidation is matched.

19. Earnings per share

The consolidated company discloses the basic and diluted earnings per share attributed to the common stock equity owners of the company. The basic earnings per share of the consolidated company is calculated by dividing the profit and loss attributable to the common equity interest holders of the company by the weighted average number of common shares outstanding in the current period. Diluted earnings per share is calculated by adjusting the profit and loss attributable to the company's common equity interest holders and the weighted average number of outstanding common shares, respectively, for the impact of all potential diluted common shares. The dilutive potential common stock includes the compensation to the employees in form of shares.

20. Segment information

The operating departments are integral parts of the consolidated company and are engaged in business activities that may earn income and incur expenses (including income and expenses related to transactions between other components in the consolidated company). The operating results of all operating departments are regularly reviewed by the major operating decision makers of the consolidated company to make decisions on the allocation of resources to the department and evaluate its performance. Each operating department has its own financial information.

V. Critical accounting judgements and key sources of estimation and uncertainty

The preparation of the consolidated financial statements in conformity with the with the preparation standards and the international financial reporting standards approved by the FSC, requires management to make judgment, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the next periods.

Information on accounting policies consist of critical accounting judgments and significant impact on the amount recognized the consolidated financial statements are as follows:

The determination of actual control over the subsidiaries

The consolidated company held less than 50% of the voting right of Yi Tong Fiber Co., Ltd., Xin Mao Investment Co., Ltd., Kwang Ming Silk Mill Co., Ltd., Hung Chou Fiber Industry Co., Ltd. However, considering that the remaining equity of the merged company is very dispersed, the participation of other shareholders in the previous shareholders' meeting shows that the merged company has the actual ability to lead the related activities unilaterally, and there is no evidence that there is an agreement between other shareholders to make collective decisions, so the consolidated company regards the above-mentioned companies as subsidiaries.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment with the next fiscal year, and reflected the impact of COVID-19 pandemic, as follows:

Valuation on inventories

As the inventory must be measured at the lower of cost and net realizable value, the consolidated company assesses the amount of inventory due to normal wear and tear, obsolescence or no market sales value on the reporting date, and offsets the inventory cost

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to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a specific time horizon, so major changes may occur due to rapid industrial changes. For the estimation on valuation on inventories please refer to Note 6(5).

Recognition of deferred income tax assets Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires the consolidated company’s subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets. For the recognition of deferred income tax assets please refer to Note 6(15).

Valuation procedure

The consolidated company's accounting policies and disclosure include fair value measurement of its financial and non-financial assets and liabilities. The consolidated company has established relevant internal control system for fair value measurement, and regularly reviews and adjusts major unobservable input values. If the input value used to measure the fair value is the information from an external third party (such as a broker or a pricing service provider), the evaluation team will evaluate the evidence provided by the third party in support of the input value to determine that the evaluation and its fair value classification are in line with the IFRS.

The company used the fair value that can be observed in the market to measure the value of assets and liabilities. The levels of fair value are is classified as follows based on the input value of evaluation technology use:

Level 1: Quoted prices (unadjusted) in active markets for identified assets or liabilities.
Level 2: inputs, other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or directly (derived from prices).
Level 3: inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

Transfer within levels

If there is fact or condition for transfer within levels, the consolidated company shall and recognise the transfer at the report date.

Further information on the assumption used in fair value

Further information on the assumption used in fair value, please refer to the following notes 6(22), financial instrument

VI. Contents of Significant Accounts

Cash and cash equivalent

ents of Significant Accounts ash and cash equivalent
Cash on Hand Check Deposit Demand Deposit Foreign Currency Deposit Cash and Cash Equivalent stated on Consolidated statement of cash flow	December 31, 2021 $ 474 152,474 104,622 241,583	December 31, 2020 476 225,711 180,332 73,197
	$ 499,153	479,716

22 -

For the disclosure of interest rate risk and the sensitivity analysis of the financial assets and liability, please refer to Note 6 (22)

Financial Assets at fair value through income or loss

December 31, 2021 Mandatorily as current financial asset at fair value through profit or loss, Current: Beneficiary Certificate $ - Shares of domestic companies listed the exchange and OTC 677,531 Non-current: Shares of domestic companies not listed the exchange and OTC - Total $ 677,531 Financial Asset at fair value through profit or loss of the consolidated company as pledge endorsement by the date of December 31, 2021 and 2020. Financial Assets at fair value through other comprehensive income December 31, 2021 Equity instruments at fair value through other comprehensive income Current: Shares of domestic companies listed the exchange and OTC: China Man-made Fibre Co., Ltd. $ 3 Equity instruments at fair value through other comprehensive income Non-current: Shares of domestic companies not listed the exchange and OTC COCONA. INC. 64,157 Taiwan Incubator SME Development Corporation 23,259 Taiwan Filament Weaving Development Co., Ltd. 10,369 Kuanz Ho Securities Co., Ltd. 172,487 Ho Chi Tang Investment Co., Ltd. 8,143 Nice Plaza Co., Ltd. 170,400 Yamai (Hong Kong) Limited 30,879 Cheering Knitting Industrial Co., Ltd. 393 The First Leasing Corporation 82,191 KHH Arena Corporation 10,250 I Jinn Industrial Co., Ltd. 2,166 Subtotal 574,694 Total $ 574,697	December 31, 2021 $ - 677,531 -	December 31, 2020 4,123 590,227 88,867
	$ 677,531	683,217
		are not provided December 31, 2020 3
	64,157 23,259 10,369 172,487 8,143 170,400 30,879 393 82,191 10,250 2,166	44,087 17,868 10,369 142,892 7,814 177,150 49,869 464 37,413 14,803 1,365
	574,694	504,094
	$ 574,697	504,097

Financial Assets at fair value through other comprehensive income
(1) Investments in equity instruments measured at fair value through other comprehensive income.

The equity instrument of the consolidated company are for strategic investment and not for the purpose of trading therefor designated as measured at fair value through comprehensive income or loss.

23 -
(2) Due to the change in investment strategy, the Consolidated Company sold shares of domestic unlisted (over-the-counter) companies measured at fair value through other comprehensive income and loss in fiscal 2020, and the fair value and tax contribution at the time of disposal were $182,200,000 and $547,000, respectively, and the cumulative gain on disposal was $32,553,000. As of December 31, 2011 and 2011, the accumulated gains from other equity were transferred to retained earnings of $15,726,000 and non-controlling interest of $16,827,000. As of December 31, 2021 and 2020, the outstanding amounts were $Nil and $171,202,000, respectively, and were recorded under other financial assets - current.
(3) For information regarding credit risk and market risk, please refer to Note 6(22)
(4) Financial assets at fair value through comprehensive income of the consolidated company are not provided as pledge endorsement by the date of December 31, 2021 and 2020.
Note receivable and account receivable

Note Receivable-From operating Account receivable – Amortized cost Overdue Receivable (Listed as other non-current assets) Less: Allowance loss	December 31, 2021	December 31, 2020 74,855 418,529 16,112 (17,730)
	$ 71,015 308,271 16,112 (17,730)
	$ 377,668	491,766

(1) The consolidated company adopts a simplified method to estimate the expected credit loss for all notes receivable and accounts receivable, that is, to measure the expected credit loss during the life time. For this purpose, these notes receivable and accounts receivable are grouped according to the common credit risk characteristics representing the customer's ability to pay all amounts due according to the contract terms, and have been included in the forward-looking information. An analysis of the company's expected credit losses on notes and accounts receivable is as follows

December 31, 2021 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 369,683 0% - 7,985 0% - 17,730 100% 17,730 $ 395,398 17,730 December 31, 2020 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 491,010 0% - 756 0% - 17,730 100% 17,730 $ 509,496 17,730	December 31, 2021 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 369,683 0% - 7,985 0% - 17,730 100% 17,730 $ 395,398 17,730 December 31, 2020 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 491,010 0% - 756 0% - 17,730 100% 17,730 $ 509,496 17,730	December 31, 2021 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 369,683 0% - 7,985 0% - 17,730 100% 17,730 $ 395,398 17,730 December 31, 2020 Accounts receivable book value Forecast weighted average credit loss ratio Lifetime allowance forecast credit loss $ 491,010 0% - 756 0% - 17,730 100% 17,730 $ 509,496 17,730
Accounts receivable book value	Forecast weighted average credit loss ratio 0% 0% 100%
$ 491,010 756 17,730
$ 509,496		17,730

(2) The change in impairment loss of note receivable and account receivable of the consolidated company, as follows:

onsolidated company, as follows:
Opening balance Reversal of Impairment loss(Listed under	Year 2021	Year 2020 18,108 (378)
	$ 17,730 -

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income(loss) from discontinued operations) Ending balance $ 17,730

17,730

(3) The note receivable and account receivable of the consolidated company are not provided as pledge endorsement as of the date of December 31, 2021 and 2020.
(4) For other information on credit risk, please refer to Note 6(22).
(5)
Inventories

Finished goods Work in Process Raw material Materials Less: Allowance Loss	December 31,		December 31,
	2021		2020
	$ 571,189 173,217 101,648 49,902 (109,846) $ 786,110		535,071 96,658 110,495 44,850 (115,416) 671,658

Details of cost of sales are as follows： 2021 Inventory sale transfer $ 3,744,067 Loss on decline in value of inventories ( recovery benefit ) (5,570) Unallocated Manufacturing Costs - Selling offcuts (6,851) De-processing offset number (243,533) Leasing Costs 98,162 Other 3,954 Add: Gain on reversal of decline in value of inventories attributable to discontinued units - $ 3,590,229	2020 2,502,156 14,443 4,186 (5,130) (132,019) 78,906 11,466 27,867
	2,501,875

(1) The increase in net realizable value of the Consolidated Company's inventories in fiscal 2021 and the reversal of the previously recognized decline in value were due to the increase in demand from end-users and the increase in the market price of inventories; the decline in value of inventories in fiscal 2020 was due to the decrease in demand from endusers and the slowing down of shipment, resulting in an increase in the ageing of inventories.
(2) By the time of December 31, 2021 and 2020, the inventories of consolidated company were not provided as pledge endorsement.
(3) The consolidated company receive the government grants on the salaries and operating capital of manufacturing industry affected by COVID-19, the relevant terms as no unpaid leaves, unemployment and salary reduction and other acts damaged the employees’ equity and dismiss and shut down is prohibited. The salaries grant received by the consolidated
25 -

company is NT$28,271 thousand and listed as inventories reduction and operating expense reduction in 2020, and the consolidated company received operating capital grants of NT$2,390 thousand listed as other profit and loss. For details, please refer to Note 6(21).

Non-current asset and discontinued operations
(1) Discontinued operations:

The consolidated company’s board of directors dated October 31, 2019 decided to terminate the factory in Tainan of Department of processing yarn to terminate the continuous loss to reduce the operation loss of the company.

The operating result of discontinued operation is as follows:

Operational result of discontinued operations: Operating income Operating cost Gross loss from operations Operating expense New loss from operation Non-operating income and expense Net loss before tax Income tax expense Net loss from discontinued operation (attributable to parent company) Primary loss per share (NT$) Diluted loss per share (NT$) Net cash flow from discontinued operation Net cash flow from operating activities Net cash flow	$	Year 2020 102,410 (166,953) (64,543) (10,250) (74,793) (842) (75,635) - (75,635) (0.34) (0.34) 215,058 215,058



	$
	$
	$
	$
	$

(2) Assets held for sale:

Investment property Other non-current assets Total	December 31, 2021	December 31, 2020
	$ 430,306 - 307 -
	$ 430,613 -

The change in assets held for sale of the consolidated company, as follows:

Opening balance Transferred-in Disposal Ending balance	Year 2021	Year 2020 1,366,362 691,267 (2,057,629)
	$ - 430,613 -
	$ 430,613	-

(1) On July 31, 2019, October 31, 2019 and June 3, 2020, respectively, the

Consolidated Company resolved to sell the land and buildings in the new downtown area of Tainan City in batches by the board of directors' resolution and then

completed the real estate handover procedures in the second quarter of 2020, and

26 -

recognized a gain of $970,540 thousand on disposal of non-current assets held for sale in fiscal 2020. As of December 31, 2021, the sale price has been fully recovered.

(2) The Consolidated Company approved the sale of certain land and buildings in Guanyin District, Taoyuan City by resolution of the board of directors on November 30, 2018, and the sale and purchase agreement was completed on November 30, 2018, and the related transaction procedures were completed on February 28, 2019; the final amount receivable as of December 31, 2021 and 2020 was $0 and $42,117 thousand, respectively, recorded as financial assets - current.
(3) In December 2021, the Consolidated Company's board of directors approved the sale of land and buildings in Hukou Township, Hsinchu County, and the sale contract was completed on December 20, 2021 for $2,471,817,000 (including tax). Accordingly, the investment property - land and buildings of $430,306,000 and other non-current assets of $307,000 were reclassified to non-current assets held for sale. As of December 31, 2021, the transfer procedures have not been completed.
Other financial assets - current

Other receivable – Transfer of shares (Note 6 (3) Other receivable – real estate receipts Other receivable – business tax refund Restricted assets Other Less: Allowance loss	December 31, 2021 $ 58,741 - 3,093 - 12,457 (58,741)	December 31, 2020 242,560 42,117 27,166 - 15,671 (58,741)
	$ 15,550	268,773

The credit risk of other receivables has not changed significantly and no impairment loss is suspected, except for the impairment loss recorded. Please refer to Note 6(22) for additional credit risk information.

Subsidiaries with significant non-controlling equity

Non-controlling equity of subsidiaries of significance to the consolidated company as follows:

Name of subsidiaries	Main place of business Country of company registration	Ratio of ownership interest and voting rights of non- controlling interest	Ratio of ownership interest and voting rights of non- controlling interest
		December 31, 2021	December 31, 2020
Hung Chou Fibre Industrial Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Yi Tong Fibre Co., Ltd.	Taiwan Taiwan Taiwan	59.31% 59.31% 53.32% 53.32% 53.19% 51.69%

The above stated summary financial information is prepared under the IFRSs endorsed by the FSC and reflects the adjustment of the fair value at the day of acquisition and the difference in accounting policies and the amount in the financial information as not deducted from the amount of transaction within the inter-companies:

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(1) Financial summary of Hung Chou Fibre Industrial Co., Ltd.

Current Assets Non-current Assets Current Liabilities Non-current Liabilities Net assets End of period book value of non-controlling interest Operating income Net income(loss) for the period Other comprehensive income Total comprehensive income Belongs to Net profit(loss) in non-controlling interest Belongs to the Total comprehensive income in non- controlling interest Cash flow in operating activities Cash flow in investing activities Cash flow in financing activities Increase (Decrease) in Cash and Cash equivalent	December 31, 2021	December 31, 2020 776,336 3,537,605 (897,704) (798,890)
	$ 904,701 3,503,823 (742,661) (944,327)
	$ 2,721,536	2,617,347
	$ 1,613,859	1,552,349
	Year 2021 $ 2,965,326	Year 2020 1,558,963 (157,713) 2,734 (154,979) (93,495) (91,873) Year 2020 (39,246) (70,073) 131,078 21,759
	$ 103,709 -
	$ 103,709
	$ 61,510
	$ 61,510
	Year 2021
	$ 330,183 (40,566) (200,915)
	$ 88,702

(2) Financial summary of Kwang Ming Silk Mill Co., Ltd.

Current assets Non-current assets Current Liabilities Non-current liabilities Net assets End of period book value of non-controlling interest Operating income Net income(loss) for the period Other comprehensive income Total comprehensive income Belongs to the Net Profit (Loss) in non-controlling interest Belongs to the Total comprehensive income in non- controlling interest	December 31, 2021	December 31, 2020 548,711 2,586,091 (261,840) (1,114,548)
	$ 468,066 2,761,273 (219,148) (1,246,288)
	$ 1,763,903	1,758,414
	$ 938,131	937,340
	Year 2021 $ 916,838	Year 2020 591,738 (19,190) 145 (19,045) (10,464) (10,287)
	$ 82,324 -
	$ 82,324
	$ 43,895
	$ 43,895

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Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Increase (Decrease) in Cash and Cash relevant Dividends paid in non-controlling interests (3) Financial summary of Yi Tong Fibre Co., Ltd. Current assets Non-current assets Current liability Non-current liability Net assets End of period book value of non-controlling interest Operating income Net income(loss) Other comprehensive income(loss) Total comprehensive income(loss) Belongs to net profit(loss) of non-controlling interest Belongs to total comprehensive income(loss) of non- controlling interest Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Increase (Decrease) in Cash and Cash relevant Dividends paid for non-controlling interest	Year 2021	Year 2020
	$ 258,243 (185,196) 420	(63,341) (211,711) 167,043
	$ 73,467	(108,009)
	$ (43,144)	(43,144)
	December 31, 2021	December 31, 2020 240,937 3,509,408 (178,634) (1,751,088)
	$ 575,509 2,239,336 (192,034) (1,67,358)
	$ 950,453	864,375
	$ 505,546	446,895
	Year 2021 $ 98,544	Year 2020 79,320
	$ 118,521 47,635	55,693 21,145
	$ 166,156	76,838
	$ 63,054	28,951
	$ 87,501	39,881
	Year 2021 $47,936 102,607 (157,880)	Year 2020 91,480 (137,275) 54,797
	$ (7,337)	9,002
	$ (45,762)	(23,215)

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9. Property, plant and equipment

The cost, depreciation and change in impairment loss of the property, plant and equipment of 2021 and 2020 of the consolidate company, as follows:

Land $ 2,682,152 - - -	Building and Structure 796,079 592 8,037 804,708	Building and Structure 796,079 592 8,037 804,708		Utilities Equipment 308,006 1,273 - (1,026) 308,253	Transporta tion Equipment 40,932 - (2,560) 3,138	Office Equipment 292,675 2,283 (2,693) 2,648	Rental Assets 18,446 - - -	Unfinished construction and equipment pending acceptance 35,874 34,087 - (50,344)	Total 8,126,487 43,917 (27,892) (740)
$ 2,682,152		804,708			41,510	294,913	18,416	19,617	8,141,772
$ 2,682,354 - (202) - - -	-	797,029 85 (237) (798)		299,774 8,232 - - - -	44,359 4,985 (8,412) - - -	280,891 792 (3,720) 14,712 - -	18,446 - (30) - - -	51,674 96,707 - (56,104) (56,403) -	8,173,410 113,087 (101,549) (1,260) (56,403) (798)
$ 2,682,152		796,079		308,006	40,932	292,675	18,416	35,874	8,126,487
$ - - - -		430,326 15,453 - -		276,084 2,997 - -	30,663 2,187 (2,268) 2,799	270,604 4,215 (2,693) -	18,446 2,799 (18,416) (2,799) -	- - - -	4,689,719 100,160 (27,600) -
$ -		445,779		279,081	33,381	272,126	-	-	4,762,279
$ - - - -		414,796 16,325 (84) (711)		272,605 3,479 - -	36,472 2,086 (7,895) -	270,254 4,054 (3,704) -	18,446 - (30) -	- - - -	4,690,616 83,164 (83,350) (711)
$ -			276,084		30,663 270,604		18,416	-	4,689,719
$ 2,682,152			29,172		8,129 22,787		-	19,617	3,379,493
$ 2,682,354			27,169		7,887 10,637		-	51,674	3,482,794
$ 2,682,152			31,922		10,269 22,071		-	35,874	3,436,768

(1) For the property, plant and equipment transferred to assets held for sale by the consolidated company on year 2021 and 2020, please refer to Note 6(6) for related description.

(2) For the details for bank deposit and endorsement for funding on the date December 31, 2021 and 2020, please refer to Note 8.

10. Investment property

The Investment property as the office building rented to third parties for operating rental owned by the company. The rental period of investment property is five to ten years and part of the contracts allow the lessee to have options on extension.

The change in investment property of the consolidated company as follows:

Cost or deemed cost: Balance at January 1, 2021 Addition Transferred from other non-current assets Reclassified as non-current assets held for sale	Land and land revaluation increment $ 8,015,368 99,004 442,852 (318,485)	Building and Structure 3,230,352 150,515 526,831 (440,615)	Total 11,245,720 249,519 969,683 (759,100)

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Reclassified Transfer to other receivables Balance at December 31, 2021 Balance at January 1, 2020 Addition Disposal Transferred from advance real estate payment Reclassified as non-current assets held for sale Reclassification Balance at December 31, 2020 Depreciation and Impairment Loss: Balance at January 1, 2021 Depreciation Reclassified as non-current assets held for sale Balance at December 31, 2021 Balance at January 1, 2020 Depreciation Impairment Loss Disposal Reclassified as non-current assets held for sale Balance at December 31, 2020 Book Value: December 31, 2021 January 1, 2020 December 31, 2020	479 (6,490)	(479) - - (6,490)
	$ 8,232,728 $ 7,110,318 1,216,512 - 173,613 (655,131) 170,056	3,466,604 11,699,332
		2,776,346 9,886,664 651,161 1,867,673 (61,696) (61,696) 72,977 246,590 (38,380) (693,511) (170,056) -
	$ 8,015,368	3,230,352 11,245,720
	$ 49,339 - -	492,818 542,157 70,484 70,484 (328,794) (328,794)
	$ 49,339	234,508 283,847
	$ 4,077 - 45,262 - -	448,469 452,546 59,734 59,734 - 45,262 (13,054) (13,054) (2,331) (2,331)
	$ 49,339	492,818 542,157
	$ 8,183,389	3,232,096 11,415,485
	$ 7,106,241	2,327,877 9,434,118
	$ 7,966,029	2,737,534 10,703,563

(1) Investment property consists of various property and plant for leasing to others. The consolidated company create pledge of part of the land in Changhua, which hold by CHANG, ZHEN TIAN and others. To the consolidated company and the land is used to for rent temporarily.
(2) The investment property held by the consolidated company is appraised by the market value and the appraisal report of the closed area and the fair value were NT14,481,964 thousand and NT$10,856,163 thousand of the date December 31, 2020 and 2019, respectively.
(3) The significant purchase and disposal of investment property of the consolidated company on the date of December 31, 2020, please refer to Note 13.
(4) The contract of joint construction contract of Yucheng section, Nangang was signed with Farglory Construction Co., Ltd. on January 29, 2019, obtained the construction license on April 10, 2020, and under construction.
(5) The consolidated company assessed the investment property in Huantan and Dachun, Changhua on the conditions of using and the value impairment loss, and listed the impairment loss of NT$45,262 thousand in 2020.
(6) Investment property is at fair value by the basis of market price of surrounding area as the level 2. The fair value of the land in Guanyin District, Taoyuan is NT$ 97 thousand per 3.3 square meters at the year 2019. The consolidated company assess on the impairment of the above-mentioned investment property, listed as recovery benefit of NT$90,000 thousand in
31 -
(7) The consolidated company transfer the investment property to non-current asset held for sale at the year 2020 and 2019, related description please refer to Note 6(6).
(8) The consolidated company deconstruct the structure of No.148 ZhenXin Rd, East District, Taichung City in 2020. The retirement loss is NT$48,642 thousand and the expense on deconstruction is NT$20,000 thousand and listed separately under other income and expenses and other income and loss. The amount of deconstruction of NT$16,600 thousand is unpaid at December 31, 2020 and listed as other payable.
(9) The investment property used for long-term loan and endorsement of funding, please refer to Note 8.
Other non-current assets

ther non-current assets
Advance real estate payment Other	December 31, 2021 $ 154,155 28,819	December 31, 2020 295,486 20,520
	$ 182,974	316,006

The information on significant real estate prepayment on the date of December 31, 2021 and 2020 of the consolidated company is stated in Note 9.

12. Short-term loans

The details of short-term loans of the consolidated company as follows:

December 31, 2021 $ 270,000 696,500 239,05	December 31, 2021 $ 270,000 696,500 239,05	December 31, 2020 520,000 557,500 276,420
$ 1,206,005		1,135,920
$ 1,787,601		1,384,775
	0.58%~1.50%	0.58%~1.40%

The asset created for bank deposit endorsement pledge of the consolidated company, please refer to Note 8.

Long-term loans

Details, terms and conditions of long loan of the consolidated company, as follows:

	December 31, 2021	December 31, 2021
Currency	Interest rate collars	Year overdue	Amount $ 8,456,953 (307,079)
New Taiwan Dollars	1.08%~1.73%	2022~2041
			$ 8,149,874
			$ 77,000

32 -

	December 31, 2020	December 31, 2020
Currency	Interest rate collars	Year overdue	Amount
New Taiwan Dollars	1.08%~1.78%	2021~2040	$ 7,827,294 (439,932)
			$ 7,387,362
			$ 68,000

Collaterals for bank loans

For the asset created for bank deposit endorsement pledge of the consolidated company, please refer to Note 8.

14. Operating lease

The consolidated company leases its investment real estate. Because it does not transfer almost all the risks and rewards belonging to the ownership of the target assets, these lease contracts are classified as operating leases. Please refer to note 6 (10) investment real estate for details.

The undiscounted amount of rental payment due after the report date as follows:

Less than a year One to two year Two to three year Three to four year Four to five year More than five years Total amount of undiscounted lease	December 31, 2021 $ 182,496 155,718 152,017 72,286 53,617 123,335	December 31, 2020 206,828 173,418 139,076 126,249 64,387 118,507
	$ 739,469	828,465

The above-stated leasing contract is recognised as rental income, in accordance of IFRS 16 the lease payment is recognised as rental income under the duration of lease by the straight-linebasis.

sis.
Lease receivable – current (listed under other current assets) Long-Term Receivable (listed under other non-current assets)	December 31, 2021	December 31, 2020 229 4,786
	$ 375 5,097
	$ 5,472	5,015

The rental income from investment property and renting assets of the year 2021 and 2020 please refer to Note 6(18). The maintenance expense (listed as operating cost) of renting investment property please refer to Note 6(5).

15. Income tax

(1) Income tax expense

The details of income tax expense of the consolidated of 2021 and 2020, as follows:

Current income tax expense Created with the period Surtax on undistributed retained earnings	Year 2021 $ 30,812 1,020	Year 2020 2,323 14,693

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Land Value increment tax Over-estimate of income tax for the past years. Deferred income tax expense Reverse and occur of temporary difference Income tax expense	- 158,525 (687) (2,431)
	31,145 173,110
	(592) 4,856
	$ 30,553 177,966

The adjustment of relationship between income tax expense and net income before tax of the consolidated company of the year 2021 and 2020, as follows

Year 2021 Income before tax $ 396685 Income tax calculated by the tax rate enacted by the region of the company $ 79,337 Income basic tax Impairment loss - Dividend income (5,517) Land - Tax-free income of land sold - Surtax on undistributed retained earnings 1,020 Under-estimate of income tax of prior period (687) Valuation gain on financial assets (32,498) Recognition of unrecognized tax loss of the prior period - Unrecognized tax loss of the deferred income tax assets (16,880) Unrecognized temporarily difference (1,287) Other (5,287) Total $ 30,553	Year 2021 $ 396685	Year 2020 810,287 162,057 - - 9,052 (11,393) 158,525 (222,658) 14,693 (2,431) (13,348) (26) 57,950 7,958 17,587 177,966
	$ 30,553

(2) Deferred income tax assets and liabilities

i. Unrecognised deferred income tax assets

The unrecognised deferred income tax assets of the consolidated company, as follows:

Bad Debts loss Deferred interest Loss carryforwards Other	December 31, 2021 $ 11,748 9,972 245,809 23,898	December 31, 2020 12,133 9,778 266,563 24,712
	$ 291,427	313,186

According to the provisions of the Income Tax Law, the loss of the previous ten years is deducted from the net profit of the current year after being approved by the tax collection authority, and then the income tax is accounted. These are not recognized as deferred income tax assets because the consolidated company may not have sufficient tax income for the temporary difference.

ii. Recognised deferred income tax assets

The change in deferred income tax assets of the year 2021 and 2020, as follows:

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Loss carryforwards	Other	Total 70,234 556
$ 63,778 (249)	6,456 805
$ 63,529	7,261	70,790
$ 63,778 -	11,194 (4,738)	74,972 (4,738)
$ 63,778	6,456	70,234

Land Value Increment Tax	Other	Total (227,114) 36
$ (226,293) -	(821) 36
$ (226,293)	(785)	(227,078)
$ (226,293) -	(703) (118)	(226,996) (118)
$ (226,293)	(821)	(227,114)

The unrecognised deferred income tax asset, the loss from income tax and the duration for deduction of the consolidated company until December 31, 2021, as follows:

Year of Loss	Loss before deduction $ 211,737 342,551 282,482 253,230 46,191 148 14,218 12,286 365,301 18,547	Last deduction year
Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021		Year 2022 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031
	$ 1,546,691

If the actual taxable income is higher or lower than expected, might be shown a reverse or listed as deferred asset and as the income tax expense or income in the period of reversal or listed.

(3) The tax authorities have completed examination of income tax returns of the Company and subsidiaries in 2019.

16. Capital and other equity

(1) common stock

As of December 31, 2021 and 2020, the authorized share of common stock of the Company amounted to NT$5,600,000 thousand with a par value of NT$10 per share of which 560,000 thousand shares. 301,648 thousand shares were issued and all issued shares were paid up

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upon issuance.

(2) Capital Surplus

The components of capital surplus were as follows:

upon issuance. Capital Surplus The components of capital surplus were as follows:
Share premium Treasury stock Recognise changes in all equity in Subsidiaries Difference between consideration and carrying amount of Subsidiaries acquired or disposed Other	December 31, 2021 $ 178,238 289,199 8,825 12,648 11,745	December 31, 2020 178,238 252,773 8,170 7,280 11,745
	$ 500,655	458,206

According to the Company Act, Capital Surplus is used to make up the loss and distribute the realised capital surplus to the shareholders with their original ratio of shareholding in form of new shares or cash. The realised capital surplus is including the additional paid-in capital in excess of par-issued stock and the income of gift received. According to the “Regulations Governing the Offering and Issuance of Securities by Securities Issuers”, the distribution capital of capital surplus may not exceed 10% of the total capital every year.

(3) Retained earnings

According to the Article of Incorporation, the retained earnings of the annual final account shall be used for tax payment, to make up the loss of the past years and to reserve 10% for the legal reserve, but it is not restricted if the legal reserve exceed the capital of the Company. The company may allocate the special reserve depending on the need of operating and legal restriction; if there are still earnings, they can be added to the undistributed earnings at the opening balance and distributed by the proposal of board of directors and the approval from the shareholders’ meeting. If the Company distributes dividends and bonuses or legal reserve and capital surplus in whole or in part in the form of cash, the Board of Directors is authorized to do so with the presence of at least two-thirds of the directors and the approval of a majority of the directors present, and to report such distribution to the shareholders' meeting.

The bonus policy of the Company is to cope with the current and future development plan, considering the investment environment, capital needed and the competition within the country and overseas. For the interest of shareholders and the development of the company, not more than 10% of the cash dividend will be distributed and the rest will be distributed with share dividend when the shareholders approved to distribute shareholders’ dividends and bonuses.

i. Legal Reserve
Legal reserve may be distributed when there is no loss of the company and approved by the shareholders’ meeting. The legal reserve may be distributed in form of new shares and cash, and only when the legal reserve exceeds 25% of the total capital.
ii. Special Reserve
According to the regulations of the FSC when distributing retained earnings, the
company shall list the difference between the net value of other shareholders’ equity deduction and the balance of special reserve and shall listed the special reserve from the current profit and loss and the undistributed earnings from the previous period. For the amount of other shareholders’ equity deduction of aforementioned, shall listed with the undistributed earnings from the previous period and may not be distributed. If there is other shareholders’ equity deduction reversal, then the company may distribute the reversal part of the other shareholders’ equity deduction.

Therefore, in accordance with the above regulations, the Company reversed the

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appropriation of earnings and provided special reserve of $(20,939,000) and $20,939,000 on August 4, 2021 and June 11, 2020, respectively, as resolved by the shareholders' meeting

iii. Earning distribution

The Company resolved the distribution of earnings from January 1, 2020 to June 30, 2020 and from July 1, 2019 to December 31, 2019 at the board of directors' meeting and the shareholders' meeting on August 11, 2020 and June 11, 2020, respectively. The amount of owners’ dividend distribution as follows:

Dividends to common stockholder: Cash	January to June, 2020 Dividend rate(yuan) Amount $ 0.50 150,824	July to December, 2019 Dividend rate(yuan) Amount 0.50 150,824	July to December, 2019 Dividend rate(yuan) Amount 0.50 150,824
	Dividend rate(yuan)	Dividend rate(yuan)
	$ 0.50	0.50

The earning distribution of July 1, 2020 to December 31, 2020 is approved by the board of directors on March 25, 2021. Amount of cash dividends in the profit distribution proposal

		July to December, 2020	July to December, 2020
		Dividend
		rate(yuan)	Amount
Dividends to common stockholder:
Cash	$	1.0	301,648

The information regards to the above-stated earning distribution is available on MOPS.

(4)Treasury Stock

The following table shows the treasury stock of the company holds by the reinvesting subsidiaries (Xin Mao Investment Co., Ltd. and Yi Tong Fiber Co., Ltd.) on the date December 31, 2020 and 2021.

Subsidiary holding parent company shares (Thousands of shares) Acquisition cost Stock market price Amount of treasury stock	December 31, 2021 78,565	December 31, 2020 78,465 729,809
	$ 731,599
	$ 1,535,944	1,294,671
	$ 344,203	325,463

(5)Other equity (Net amount after tax)

Balance at January 1, 2021 Unrealized gains or losses on fair value through other comprehensive income financial assets. Balance at December 31, 2021 Balance at January 1, 2020 Unrealized gains or losses on fair value through other comprehensive income financial assets. Share of Profit or Loss on fair value through other comprehensive income financial assets of Associates & Joint Ventures Accounted for Using Equity Method Balance at December 31, 2020	Unrealized gains or losses on fair value through other comprehensive income financial assets. $ 65,111 45,842
	$ 110,953
	$ (20,939) 101,776
	(15,726)
	$ 65,111

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(6)Non-controlling equity

Opening balance Net income (loss) of the year Unrealized gains or losses on fair value through other comprehensive income financial assets Cash dividend paid to the subsidiaries Recognise changes in all equity in Subsidiaries Subsidiaries distribute cash dividends to non- controlling equity Subsidiaries buy shares of parent as treasury stock Increased in non-controlling equity Difference of carrying value of acquired or disposed shareholding of the subsidiaries Ending balance	Year 2021	Year 2020
	$ 3,146,894 165,529 24,758 42,039 24,314 (106,622) (940) 25,849 (12,447)	3,275,847 (85,571) 12,278 - 4,523 (75,217) (864) 23,769 (5,871)
	$ 3,309,374	3,146,894

17. arnings (loss) per share

The calculation on basic earnings per share and diluted earnings per share of the consolidated company, as follows:

Basic earnings per share Net profit from continuous operations of the company Net loss from discontinued operations Weighted average number of common shares outstanding (thousands of shares) From continuous operations From discontinued operations Diluted earnings per share Net profit from continuous operations of the company Net loss from discontinued operations Weighted average number of common shares outstanding (thousands of shares) Influence on dilutive potential common share Influence of employees’ stock compensation (thousands of shares) Weighted average number of dilutive potential common share outstanding (thousands of shares) From continuous operations From discontinued operations	Year 2021 $ 200,603 -	Year 2020 719,892 (75,635) 644,257 223,209 3.23 (0.34) 2.89 Year 2020 719,892 (75,635) 644,257 223,209 433 223,642 3.22 (0.34) 2.88
	$ 200,603
	223,170
	$ 0.90 -
	$ 0.90
	Year 2021 $ 200,603 -
	$ 200,603
	223,170 125
	223,295
	$ 0.90 -
	$ 0.90

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18. Revenue from contracts with customers

(1) Disaggregation of revenue

Department of textile Main region market: Taiwan $ 2,837,338 Asia 815,545 America 174,076 Europe 66,360 Africa 71,416 $ 3,964,735 Main Products: Product sold-polyester yarn $ 1,676,483 Product sold-polyester chip 732,437 Product sold-polyester textured yarn 920,993 Product sold-woven fabric 556,057 Processing income 77,170 Rental income - Other 1,595 $ 3,964,735 Department of textile Main region market: Taiwan $ 1,471,967 Asia 786,477 America 148,777 Europe 74,985 Africa 66,431 $ 2,548,637 Main Products Product sold-polyester yarn $ 1,006,632 Product sold-polyester chip 367,706 Product sold-polyester textured yarn 594,361 Product sold-woven fabric 529,568 Processing income 39,042 Rental income - Other 11,328 $ 2,548,637 (2) Contract balance December 31, 2021 Note and Account receivable (including overdue receivable) $ 395,398 Less: Impairment loss (17,730) Total $ 377,668 Contract liabilities $ 99,975		Year 2021	Total 3,018,782 815,545 174,076 66,360 71,416 4,146,179 $ 1,676,483 732,437 920,993 556,057 77,170 181,444 1,595 4,146,179 Total 1,630,545 786,477 148,777 74,985 66,431 2,707,215 1,006,632 367,706 594,361 529,568 39,042 158,578 11,328 2,707,215 January 1, 2020
	Department of textile $ 2,837,338 815,545 174,076 66,360 71,416	Department of leasing 181,444 - - - -
	$ 3,964,735	181,444
	$ 1,676,483 732,437 920,993 556,057 77,170 - 1,595	- - - - - 181,444 -
	$ 3,964,735	181,444
		Year 2020
	Department of textile $ 1,471,967 786,477 148,777 74,985 66,431	Department of leasing 158,578 - - - -
	$ 2,548,637	158,578
	$ 1,006,632 367,706 594,361 529,568 39,042 - 11,328	- - - - - 158,578 -
	$ 2,548,637	158,578
		December 31, 2020 509,496 (17,730)
			613,409 (18,108)

$ 377,668		491,766	595,301
$ 99,975		38,456	7,124

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The disclosure of note receivable and account receivable and its impairment loss, please refer to Note 6(4).

The contract liabilities of January 1, 2021 and 2020 is listed as the amount of revenue of opening balance of the year 2021 and 2020 as NT$38,456 thousand and NT$7,124 thousand, respectively.

19. Employees’ Compensation and directors’ remuneration

As stated in the Article of Incorporation, if the company gained in profit, the company shall appropriate no less than 0.5% as the employees’ compensation and not more than 2% as the directors’ remuneration. If the company has accumulated losses, the profit earned shall be reserved to make up the losses. Recipients entitled to receive shares or cash distributed as employee remunerations include employees of controlled companies and subordinate companies meeting certain requirements. The remuneration to the directors may only in form of cash.

The Company estimated the compensation to employees were NT$1,157 thousand and NT$4,758 thousand in 2021 and 2020, respectively, and the remuneration to Directors was NT$4,303 thousand and NT$8,204 thousand in 2021 and 2020, respectively. The amount was estimated using the profits before tax and before net of the remuneration in each period to multiply a designated percentage specified in the Articles of Incorporation. The distribution was recorded as operating costs or operating expenses of 2020 and 2019.

The compensation to the employees in 2020 and 2019 were NT$4,758 thousand and NT$4,992 thousand, respectively, and the remuneration to the directors were NT$8,204 thousand and NT$4,942 thousand, respectively. There is no difference between the actual distribution and the amount stated on the financial statement. For relevant information, please log on to MOPS hosted by TWSE for inquiry.

Other income and expenses

The composition of net value of other income and expenses of the consolidated company as follows:

llows:
Loss of disposal investment property Disposal of asset interest held for sale	Year 2021	Year 2020 (48,642) 970,540
	$ - -
	$ -	921,898

21. Non-operating income and expenses

(1) Interest income

The composition of interest income of the consolidated company of the year 2021 and 2020, as follows:

2020, as follows:
Interest from bank deposit Interest income from financial asset at amortized cost Total of interest income	Year 2021 $ 97 355	Year 2020 108 1,267 1,375
	$ 452

(2) Other income

The composition of other income of the consolidated company of the year 2021 and 2020, as follows:

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Dividend income Other Less: Other income belongs to discontinued operations	Year 2021 $ 27,581 13,577 -	Year 2020 56.963 13.316 (1.481) 68.798
	$ 41,158

(3) Other gains and losses

The composition of other gains and losses of the consolidated company of the year 2021 and 2020, as follows:

Gains and losses of disposal property, plant and equipment Gains and losses of currency exchange Loss from lease termination Net income at fair value through income or loss financial assets Impairment(loss) reversal Income from government grants Other Add: other loss from discontinued operations	Year 2021 $ 3,566 (15,833) (54) 162,489 - - - -	Year 2020 (5,406) (23,332) (22) 66,740 (45,262) 2,390 (32,561) 2,323
	$ 150,168	(35,130)

(4) Financial Cost

The composition of other financial cost of the consolidated company of the year 2021 and 2020, as follows:

Interest expense of bank deposit Interest expense of imputed interest	Year 2021 $ 124,922 302 $ 125,224	Year 2020 128,229 524
		128,753

22. Financial instruments

(1) Credit risk

i. Credit risk exposure

The maximum credit risk exposure of the Group’s financial assets is equal to their carrying amount.

ii. Concentration of credit risk

The consolidated company’s account receivable from the customers and securities investment are the main source of credit risk. The customers or the counterpart of the financial instruments failed to perform the obligations of the contract and result in risk of financial impairment.

iii. Credit risk of account receivable

The information on credit risk of note receivable and account receivable, please refer to Note 6 (4).

The related composition of financial assets at amortised (including other receivable), please refer to Note 6(7).

The aforementioned are financial asset at low credit risk and as impairment loss of the 12-month expected credit losses (The description of determine low credit risk of the consolidated company, please refer to Note 4(7)).

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(2) Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments but excluding the impact of netting agreements.

Carrying value	Contractua l cash flow	Within 6 months	6 to 12 months	1to 2year	2 to 5year	Over 5 years
	10,193,046 597,000	1,265,388 500,330	367,972 2,936	1,525,034 3,735	2,823,767 76,913	4,210,885 13,086
$ 10,259,958	10,790,046	1,765,718	370,908	1,528,769	2,900,680	4,223,971
	9,688,893 547,438	1,318,643 418,871	570,063 4,121	1,112,867 5,854	2,785,672 108,548	3,901,648 10,044
$ 9,728652	10,236,331	1,737,514	574,184	1,118,721	2,894,220	3,911,692

The consolidated company does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

(3) Currency risk

i. Risk exposure

The consolidate company’s financial assets and financial liability exposed to significant. Currency risks were as follows:

December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
Foreign currency	Exchange rate	New Taiwan Dollars	Foreign currency	Exchange rate
				28.48 13,509 -

ii. Sensitivity analysis

The consolidated company’s exposure to foreign currency risk arose from cash and cash equivalents, account receivables, other receivables, loans and borrowings, accounts payable and other payables that were denominated in foreign currencies. A 1% appreciation or depreciation of the TWD against the USD as of December 31, 2021 and 2020 would have increased or decreased the net income before tax from the years ended December 31, 2021 and 2020 by NT$3,397 thousand and NT$3,847 thousand, respectively. The analysis was performed on the same basis for both periods.

iii. Foreign exchange gain and loss on monetary item

The information on foreign exchange gain(loss) on monetary items is disclosed by the consolidated company in summary. For the December 31, 2021 and 2020, foreign exchange losses (including realised and unrealised abortions) amounted to NT$(15,833) thousand and NT$(23,323) thousand.

(4) Interest rate risk

Please refer to the note on liquidity risk management for the interest rate exposure of the consolidated company’s financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to interest rates on derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is on the basis of the assumption that the amount of assets

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outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the increment or decrement by 1% when reporting to the management internally, which also represents the management’s assessment of the reasonable interest rate change.

If the interest rate had increased or decreased by 1%, the consolidated company’s net income before tax world have decreased or increased by NT$93,110 thousand and NT$89,220 thousands for the years ended December 31, 2021 and 2020, respectively, with all other variable factors remaining constant. This is mainly due to the consolidated company’s borrowing and time deposit at floating rates.

(5) Other price risk

The impact to the comprehensive income and loss if the stock price on reporting date changes (The analysis was performed on the same basis for both periods, and if the other variables remain unchanged), as follow

Year 2021	Year 2021	Year 2020	Year 2020
Amount of comprehensive income or loss after tax $ 28,735	Post-tax profit or loss	Amount of comprehensive income or loss after tax 25,205	Post-tax profit or loss
	33,877		33,955
$ (28,735)	(33,877)	(25,205)	(33,955)

(6) Fair Value and carrying amount

i. Categories and fair value of financial instruments
The fair value of financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the consolidated company’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
Carrying amount $ 677,531 $ 3 574,694		Fair	Value
	Level 1 677,531 3 - 3	Level 2		Level 3		Total
		- - - -			- - 574,694	677,531 3 574,694
574,694					574,694	574,697
$ 1,252,228	677,534	-			574,694	1,252,228

	December 31, 2020	December 31, 2020	December 31, 2020
Carrying amount $ 594,350		FairValue
	Level 1		Level 1	Carrying amount
			-	594,350

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88,867 - 683,217 594,350	88,867 - 88,867 88,867 - 683,217 - - 3 - 504,094 504,094 - 504,094 504,097	88,867 - 88,867 88,867 - 683,217 - - 3 - 504,094 504,094 - 504,094 504,097	88,867
			683,217
$ 3 3 504,094 - 504,094 3	- - -
		504,094 504,097
$ 1,187,314 594,353	88,867 504,094 1,187,314

ii. Valuation techniques and assumptions not used in fair value The consolidated company estimated the instrument of not used in fair value in the method and the assumptions as follows:
(i) Financial assets at amortised cost If there is an open quotation in the active market, the market price shall be the fair value; if there is no market price for reference, the evaluation method is used to estimate or use the quotation of the counterparties.
(ii) Financial asset and liabilities at amortised cost

If there is quotation information of the transaction or market maker, the latest transaction price and quotation data shall be used as the basis for evaluating the fair value. If there is no market value for reference, the evaluation method is adopted. The fair value is estimated based on the discounted value of cash flow.

iii. Valuation techniques and assumptions used in fair value determination of financial instrument at fair value
Financial instruments traded in active markets are based on quoted market prices. The quoted price of a financial instrument obtained from main exchanges and onthe-run bonds from Taipei Exchange can be used as a basis to determine the fair value of the listed companies’ equity instrument and debt instrument of the quoted price in an active market.

If public quotation of financial assets may be obtained from exchange, brokers, underwriters, industry association, pricing service agencies or competent authorities in a timely and frequent manner, and the prices represent actual and frequent fair market transactions, then the financial instrument consider as active market quoted publicly. If the above criteria are not met, the market is regarded as inactive. Generally, significant difference between the buying and selling prices, significant increase in such price difference or the rear transactions are indicators of an inactive market.

The financial instruments held by the company are classified as follows according to the evaluation sources used to determine the fair value:

Financial instruments with active markets: Shares of listed company, the fair value based on quoted market prices.
Financial instruments with no active markets: The fair value is estimated using the market comparable company method. The main assumption is based on the net value multiplier derived from the market quotation of the comparable listed (counter) company of the investor. This estimate has been adjusted for the discount effect of the lack of market liquidity of the equity securities.
iv. Transfer between level 1 and level 2 As of December 31, 2020, the fair value of Yi Hsin textile Co., Ltd.'s stock was classified as Level 2 because it was an Emerging Stock, and on October 25, 2021, the company's stock began to be listed, so its fair value measurement was transferred from Level 2 to Level 1.
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v. Reconciliation of Level 3 fair values

January 1, 2021 Total income or loss Recognized as other comprehensive income December 31, 2021 January 1, 2020 Total income or loss Recognized as other comprehensive income Disposal December 31, 2020	Fair value through other comprehensive income Unquoted equity instruments 504,094 70,600
	504,094
	571,693 114,054 (181,653)
	504,094

Above stated total income or loss is recognised as “unrealised gains or losses at fair value through other comprehensive income financial asset”. The total income or loss related to the assets held by the date of December 31, 2021 and 2020, as follows:

Total income or loss Recognized as other comprehensive income or loss (listed under the “unrealized gains or losses at fair value through other comprehensive income”)	Year 2021 $ 70,600	Year 2020 87,765

vi. Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The fair value measured at level 3 of the consolidated company are financial assets measured at fair value through profit and loss – equity securities investment and financial assets at fair value through other comprehensive income – equity securities investment.

For fair value measurements categorised within level 3 of the fair value hierarchy quantitative information about significant unobservable inputs used in the fair value measurement, as follows:

Item Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Net asset value method Comparative listed company	Significant unobservable inputs ‧Net asset value ‧Multiplier of price-to-earnings ratio (as of December 31, 2021 and 2020 were 0.67~4.14 and 0.67~2.13 respectively) ‧Market illiquidity discount rate (as of December 31, 2021 and 2020 were 25% and 30%, respectively)	Inter-relationship between significant unobservable inputs and fair value measurement
			N/A ‧The estimated fair value would increase(decrease) if ‧the multiplier were higher (lower) ‧the market illiquidity discount were lower(higher)

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vii. Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions
The consolidated company’s measurement of the fair value of financial instruments is reasonable, but the use of different evaluation models or evaluation parameters may result in different evaluation results.

For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

Input	Assumptions	Other comprehensive income Favorable Unfavorable $ 5,747 (5,747)	Other comprehensive income Favorable Unfavorable $ 5,747 (5,747)
			Unfavorable (5,747)
Price-to-book multiple Liquidity discount Price-to-book multiple Liquidity discount	±1％ ±1％ ±1％ ±1％
		$ 7,628	(7,628)
		$ 5,041	(5,041)
		$ 7,201	(7,201)

The favourable and unfavourable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique.

If the fair value of the financial assets impacted by one or more input, the above table just represent the impact changed by single inputs and not consider of the relevant and the variability of inputs.

23.Financial risk management

(1) Overview

The consolidated company is exposed to the following risks arising from financial instruments:

i. Credit risk

ii. Liquidity risk

iii. Market risk

This note discloses information about the consolidated company’s exposure to the aforementioned risks, and its goals, policies, and procedures regarding the measurement and management of these risks. For additional quantitative disclosures of these risks, please refer to the notes regarding each risk disclosed throughout the financial report.

(2) Risk management framework

The consolidated company’s risk management policies are established to identify and analyse the risk faced by the consolidated company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the consolidated company’s activities. The consolidated company, through its training and management standard and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

(3) Credit risk

Credit risk is the risk of financial loss to the consolidated company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the consolidated company receivables from customers and investment securities.

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i. Trade and other receivables As the consolidated company has a large customer base, and does not significantly concentrate on trading with a single customer and the sales area is scattered, there is no concern of significant concentration in the credit risk of account receivable. To reduce the credit risk, the consolidated company regularly and continuously evaluates on the clients’ financial status and as in practice the consolidated company has not request collateral from our clients.
ii. Investments
- The credit risk exposure in the bank deposits, fixed income investment and other financial instruments is measured and monitored by the consolidated company’s finance department. Since those who transact with the consolidated company are banks and other external parties with food credit standing, there are no noncompliance issues, and therefore there is no significant credit risk.
(4) Liquidity risk

The consolidated company aims to maintain the level of its cash and cash equivalents for the operating of the consolidated company and reduce the impact of rise and fall of cash flows. The management personnel of the consolidated company monitoring the use of shortterm bank facilities and ensure the terms and condition of loan contract is complied. The bank funding is one of the main sources of liquidity to the consolidated company. The consolidated company has unused short-term bank facilities of NT$1,864,601 thousand and NT$1,384,775 thousand on December 31, 2021 and 2020, respectively.

(5) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices will affect the consolidated company’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptance parameters and optimize the return on investment.

i. Currency risk
The consolidated company is exposed to currency risk on sales and purchase transactions that are denominated in a currency other than the respective functional currencies of the consolidated company, primarily TWD. The currencies used in these transactions are the TWD and USD.
With regard to monetary assets and liabilities denominated in a foreign currency, when a short-term risk exposure exists, the consolidated company relies on immediate foreign exchange transactions to ensure the net exposure to foreign exchange risk is maintained at an acceptance level.
ii. Interest rate risk The consolidated company maintained in a combination of fixed interest rate and floating interest rate and make the interest rate perspective and the existing risk preference in consistency to ensure the hedging strategy for cost efficient.
iii. Other market price risk The equity price risk of the consolidated company is caused by the investment in listed OTC equity securities. The equity investment is not held for trading, but a strategic investment. The consolidated company is not involved in the investment of aforementioned transaction. The management personnel of the company manage the risk by holding different risk investment combination.

24.Capital management

The consolidated company is to maintain a strong capital base so as to maintain investors

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compensation and the interest of other stakeholder to maintain the best capital structure to reduce the funds cost.

To maintain or adjust the structure, the consolidated company may adjust the dividends to the shareholders and return the capital to the shareholders by capital reduction, issuing new shares and selling assets to settle the liability.

The consolidated company is using debt ratio as basis to control the capital. The ratio is calculated by the net liability divided by total capital. The net liability as the liability listed on the balance sheet and less the cash and cash equivalent. Total amount of capital is the composition of all of the equity (capital stock, capital surplus, retained earnings and other equity) add the net liability.

The capital management strategy of 2022 is consistent with that of 2021, that is to maintain the certain debt ratio in order for funding with the reasonable cost.

The debt ratios on December 31, 2021 and 2020re as follows:

Total liability Less: cash and cash equivalent Net liability Total amount of equity Adjusted capital Debt ratio	December 31, 2021 $ 10,625,619 499,153 10,126,466 7,894,184 $ 18,020,650 56.19%	December 31, 2020	December 31, 2020	December 31, 2020
	$			10,017,616 513,740
				9,537,900 7,763,198
	$			17,301,098
				55.13%

VII. Transactions with related parties

Name and relationship with the related parties
The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements:

Name of the related party CHAN, CHENG-TIEN CHAN, YI-CHIN Jin Xian Welfare and Charity Foundation	Relationship with the consolidated company The chairman of the company The director of the company Same chairman as the company

Significant transactions with the related parties
(1) Disposal of part of the shareholding of a subsidiary In May 2021, the Consolidated Company sold 1.5% of equity in its subsidiary, Yi Tong Fiber Co., Ltd., to the Chairman and other related parties for a total consideration of $25,849,000, which was received in full as of December 31, 2021.

(2) Others

 The rental income from the Consolidated Company's investment properties leased to other related parties - Jen Ching amounted to $2,857 thousand in fiscal 2021.
The consolidated company donates to Jin Xian Welfare and Charity Foundation NT$4,000 thousand and NT$1,500 thousand as of Year 2021 and 2020.
Personnel transaction from key management

ersonnel transaction from key management
Short-term employee benefits Post-employment benefits	Year 2021 $ 30,460 135	Year 2020 30,831 135
	$ 30,595	30,966

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VIII. Assets pledged as collaterals

The composition of the carrying value pledge for endorsement, as follows:

Pledged assets	object	December 31, 2021 5,707 2,888,445 11,008,480 430,306	December 31, 2020 5,706 2,911,431 10,279,825 - 13,196,962
Other financial asset – non-current Property, plant and equipment Investment property Non-current assets held for sale	Long-term rental Long-term and short- term rental 〃〃
		$ 14,332,938

IX. Major contingent liabilities and unrecognized contractual commitments

Significant unrecognized contractual commitments:
(1) The letter of credit that were issued but not used as of the date of December 31, 2021 and 2020:

2020:
New Taiwan Dollars US Dollars Japanese Yen EUR	December 31, 2021	December 31, 2020
	$ 484,150	228,293
	$ 56,959	2,370
	$ 31,715	29,425
	$ 2,096	29,425 -

(2) As of December 31, 2021 and 2020, the Consolidated Company had received $25,441,000 and $29,735,000 in checks for sales and leasing of investment real estate collection guarantees, respectively.
(3) The amount of contract signed for purchase the investment property and the floor are ratio of the consolidated company were NT$1,265,359 thousand and NT$1,419,348 thousand on the date of December 31, 2021 and 2020, respectively, and paid NT$153,219 thousand and NT$ 285,415 thousand according to the contract (listed as other noncurrent assets-other).
(4) The land joint development of the consolidated company with Farglory construction Co., Ltd.( hereinafter referred to as Farglory) is approved by the board of director on the January 29, 2019 and with the expected allocation ratio of 64.00%. The allocated land and housing will be used as headquarter and for lease or sell to increase rental income and increase in capital. The consolidated company received the deposit for joint develop were NT$66,000 thousand and NT$99,000 thousand on the date of December 31, 2021 and 2020. In addition, the Consolidated Company had paid $7,251,000 and $3,626,000 as of December 31, 2021 and 2020, respectively, to Farglory group for the net amount of $60,427,000 for the housing replacement under the supplemental agreement for the joint construction of housing.
(5) The unrecognized commitments of the consolidated company as follows

Contract signed (before tax) Purchase of raw material Purchase of Equipment Non-current assets held for sale Payment paid or received Purchase of raw material(Note1) Purchase of equipment(Note2) Non-current assets held for sale	December 31, 2021 $ 49,950	December 31, 2021 $ 49,950	December 31, 2020 49,950
	$ 23,943		-
			-
	$ 16,969		14,985
	$ 15,040		-
	$ -		-

49 -

Note 1: Recognised as inventories and prepayment account

Note 2: Recognised as property, plant and equipment and other non-current assets.

2. Contingent liabilities

The consolidated company issued the guarantee notes submitted for the purpose of purchasing raw material and loans amounted NT$1,401,211 thousand and NT$1,401,211 thousand on the date of December 31, 2021 and 2020, respectively.

X. Loss due to major disasters: N/A

XI. Significant subsequent events: N/A

XII. Other

The employee benefits expenses, depreciation and amortization, categorized by function, were as follows:

ws:
By function By nature	Year 2021			Year 2020
	Operating costs	Operating expenses	Total		Operating costs	Operating expenses	Discontin ued operation	Total
Employee benefit
Salary	167,124	69,054	236,178		118,499	58,180	5,441	182,120
Labor and health insurance	14,734	4,452	19,186		14,533	17,819	253	32,605
pension	6,848	2,223	9,071		7,7270	2,277	135	9,682
Other	9,915	2,414	12,329		8,678	2,340	154	11,172
Depreciation	1661,626	9,018	170,644		133,001	9,417	480	142,898
Amortization	4,063	47	4,110		570	-	944	1,514

XIII. Additional disclosure

1. Information on major transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of the Financial Reports by Securities Issuers” for the consolidated company for the years ended December 31, 2021:

(1) Loans extended to other parties: N/A
(2) Endorsement and guarantees for others: N/A

(3) Securities hold at the end of the period (excluding investing in subsidiaries, affiliated enterprise and joint ventures):

enterprise and joint ventures):	enterprise and joint ventures):	enterprise and joint ventures):
				Unit: Thousands of New Taiwan Dollars
Company of shareholding	Nature and name Of security	Relationship With the securities issuers	Account name		End of	Period		Remark
				Number of shares	Book Value	Holding Percentage	Market Value
Yi Jinn Industrial Corp., Limited.	Shares of Cheng Shin Rubber IndustryCo.,Ltd.	None	Fair value through profit or loss financial assets – current	790,000	28,519	0.02 %	28,519
"	Shares of Asia Cement Corporation	"	"	3,594,000	159,214	0.04 %	159,214
"	Shares of Taiwan Cement Corporation	"	"	1,301,000	62,448	0.02 %	62,448
"	Shares of Hua Nan Financial Holding Co.,Ltd.	"	"	225	5	0.01 %	5
"	Shares of Far Eastern New Century	"	"	1,500,000	43,950	0.03 %	43,950
	Corporation
"	Shares of First Financial Holding Co.,Ltd.	"	"	360	9	0.01 %	9
"	Shares of Hongyi Fiber Industry Co.,Ltd.	"	"	458,000	11,084	0.35 %	11,084
"	Shares of Ho Chi Tang Investment Co., Ltd.	"	Fair value through other comprehensive income financial assets - non-current	2,430,530	7,670	14.75 %	7,670
"	Shares of Kuanz Ho Securities	The company as the legal entitydirector	"	6,866,506	172,487	15.58 %	172,487
"	Shares ofCOCONA.INC.	None	"	3,225,018	64,157	2.79 %	64,157
"	Shares of YaMai (Hong Kong) Limited	"	"	11,700,000	30,879	10.17 %	30,879

50 -

"	Shares of Nice Plaza Co., Ltd.	The company as the legalentity director	"	15,000,000	170,400	8.68 %	170,400
Yi Tong Fiber Co., Ltd.	Shares of Cheng Shin Rubber IndustryCo.,Ltd.	None	Fair value through profit or loss financial assets – current	800,000	28,880	0.02 %	28,880
"	Shares of Taiwan Cement Corporation	"	"	1,950,000	86,385	0.06%	86,385
"	Shares of Yi Shin Textile Co.,Ltd.	"	"	445,000	20,937	0.66 %	20,937
"	Shares of Yi Jinn Industrial Corp., Limited.	Ultimate parent entity	Fair value through other comprehensive income financialassets- non-current	57,954,410	1,133,009	19.21 %	1,133,009
"	Shares of KHH Arena Corporation	None	"	1,000,000	10,250	0.40 %	10,250
"	Xin Mao Investment Co., Ltd.	Subsidiaries of Parent company	"	-	-	12.15 %	-	Note 1
"	Shares of Taiwan Incubator SME Development Corporation	The company as the legal entity director	"	2,425,280	23,259	3.44 %	23,259
"	Shares of The First Leasing Corporation	The company as the legalentity director	"	3,072,325	82,191	13.97 %	82,191
Da Tian International Co.,Ltd.	Shares of Yi Shin Textile Co.,Ltd.	None	Fair value through profit or loss financialassets–current	1,668,000	78,479	2.78 %	78,479
Xin Mao Investment Co.,Ltd.	Shares of Yi Jinn Industrial Corp.,Limited.	Ultimate parent entity	"	20,610,470	402,935	6.80 %	402,935	Note 2
"	Shares of Hung Chou Fiber IndustryCo.,Ltd	Subsidiaries of Parent company	"	152,000	1,642	0.12 %	1,642
"	Shares of Kwang Ming Silk Mill Co.,Ltd.	"	"	50,000	1,673	0.12 %	1,673
"	Shares of YiShin Textile Co.,Ltd.	"	"	1,784,064	82,246	2.91%	82,246
"	Shares of Ho Chi Tang Investment Co., Ltd.	None	Fair value through other comprehensive income financialassets- non-current	150,000	473	0.91 %	473
"	Shares of Cheering Knitting industrialCo.,Ltd.	"	"	25,400	393	0.58 %	393
"	Shares of I Jinn Industrial Co.,Ltd.	"	"	105,000	2,166	0.60 %	2,166
Kwang Ming Silk Mill Co.,Ltd.	Shares of Taiwan Cement Corporation	"	Fair value through profit or loss financialassets–current	1,300,000	57,590	0.04 %	57,590
"	Shares of Yi Shin Textile Co.,Ltd.	"	"	362,000	17,032	0.54 %	17,032
Hung Chou Fiber Industry Co., Ltd	Shares of China Man-made Fiber Co., Ltd.	"	Fair value through other comprehensive income financial assets - current	278	3	- %	3
"	Shares of Taiwan Filament Weaving Development Co., Ltd.	"	Fair value through other comprehensive income financial assets - non-current	2,175,660	10,369	3.57 %	10,369
Da Yi International Development Co.,Ltd	Shares of Yi Shin Textile Co.,Ltd.	"	Fair value through profit or loss financial assets – current	16,000	753	0.02 %	753

Note 1: Investments transferred to equity method in October 2021 Note 2: Pledged for 13,500,000 shares.

(4) Accumulative amount of buy in or sold out of single securities that exceed Three hundred thousand New Taiwan Dollars or 20% of the total capital received:

Unit: NT$1,000

Buy/Sell of Company	Type & Name of Marketable Securities	Accounts Category	Trading counterparty	Relationship	Beginning of period	Beginning of period	Buy	Buy		Sell			End of period	End of period
					No. of shares	Amount	No. of shares	Amount	No. of shares	Selling Price	Carrying Cost	Disposal Profit or loss	No. of shares	Amount
K Kwang	Stock-Asia Cement Corporation	Financial assets at fair value through profit or loss - current	-	-	700,000	30,240	2,100,000	93,444 (Note)	1,500,000	72,429	66,094	6,335	1,300,000	57,590
w Ming Silk
a n g M i Mill Co., Ltd
"	Stock-Formos	"	-	-	401,000	33,965	550,000	43,450 (Note)	951,000	81,370	77,415	3,956	-	-
	a Chemicals and Fibre Corporation

51 -


"	Stock-Taiwan	"	1,100,000	47,520	1,000,000	46,074 (Note)	2,100,000	103,909	93,594	10,115	-	-
	Cement Ltd.

Note: The purchase amount includes the valuation adjustments related to financial assets recognized at fair value.

(5)The amount of acquired properties exceeds Three hundred thousand New Taiwan Dollars or 20% of the total capital received:

Unit: Thousands of New Taiwan Dollars

Company of Acquired real estate	Name of property	Date of Occurrence of the fact	Amount of Transactio ns	Condition of payment	Trading parties	Relatio nship	If the transaction parties is related parties, the information of previous transfer	If the transaction parties is related parties, the information of previous transfer	If the transaction parties is related parties, the information of previous transfer	If the transaction parties is related parties, the information of previous transfer	Price determinat on and supporting reference	i Purpose of acquired and condition of using	Other matters agreed
							Owners	The relationship with the issuer	The date transfer red	Amount
The Company	Land and building of Gongjian Section, Xizhi District, New TaipeiCity	July 26, 2018	956,571	239,571 (Note)	Kuo Yang Construction Co., Ltd.	None	-	-	-	-	Appraisal Report	Owner- occupied o rent	r
The Company	Land and building of Haotian Section, Xizhi District, New Taipei City	December 30, 2020	462,803	92,570	Farglory Land Development Co., Ltd. And Farglory International Investment Co.,Ltd.	None	-	-	-	-	Appraisal Report	Owner- occupied o rent	r
Kwang Ming Silk Mill Co. Ltd.	, Land and building of Haotian Section, Xizhi District, New Taipei City	February 19, 2021	233,024	233,024 (Note)	Farglory Land Development Co., Ltd. And Farglory International Investment Co.,Ltd.	None	-	-	-	-	Appraisal Report	Owner- occupied o rent	r
Yi Tong Fiber Co., Ltd.	Land and building of Haotian Section, Xizhi District, New TaipeiCity	December 24, 2021	669,768	47,173	Farglory Land Development Co., Ltd. And Farglory International Investment Co.,Ltd	None	-	-	-	-	Appraisal Report	Owner- occupied or rent

Note :The transfer of ownership will be completed in 2021.

(6)The amount of disposal properties exceeds Three hundred thousand New Taiwan Dollars or 20% of the total capital received:

Unit: Thousands of New Taiwan Dollars

Company of disposing property	Name of the assets	Date of occurrence of the fact	Acquired date	Book Value	Amount of Transactio s	n Condition of Receiving	Income and loss from disposal (Note)	Parties of transaction	relation ship	Purpose of disposal	Price determinati on and supporting evidence	Other matter agreed
Yi Tong Fiber Co., Ltd.	Land and buildings in Hukou Township, HsinchuCounty	December 2, 2021	February 28, 2011	430,306	2,471,817	-	- (Note)	Shin Zu Shing Co., Ltd.	Third Parties	Revitalizing and use of assets	Appraisal Report

Note: As of December 31, 2021, the transfer process has not been completed.

(7)The amount of purchase or sell exceed One Hundred Million New Taiwan Dollars or 20% of the capital received:

Unit: Thousands of New Taiwan Dollars

Company of Purchase or Sales	Name of Trading Subject	Relationsh ip	Trading Status	Trading Status	Trading Status	Trading Status	Situation and reasons in difference of trading conditions with normal tradings	Situation and reasons in difference of trading conditions with normal tradings	Note, Account receivable (payable)	Note, Account receivable (payable)
			Purchase or Sales	Amount	Ration to the total purchase or sales	Credit Period	Unit Price	Credit Period	Balance	Ratio to the total Note, Account receivable (payable)
Yi Jinn Industrial Corp., Limited.	Kwang Ming Silk Mill Co., Ltd..	Subsidiary	Purchase	132,516	37.32%	Credit on 30 days	-	-	(8,253)	(5.34)%
Kwang Ming Silk Mill Co., Ltd.	Yi Jinn Industrial Corp., Limited.	parent company	Sales	(132,516)	14.45%	〞	-	-	8,253	6.51%
Hung Chou Fiber Industry Co., Ltd	ersons with significant influence on the company	associate(s)	Sales	(465,614)	15.70%	Credit on 15 days	The sales price to the related parties are set by the quotation of the price of the raw material and were not significantly different from those sales to third parties	15 Days	29,062	27.55%
Kwang Ming Silk Mill Co., Ltd.	Hung Chou Fiber Industry Co., Ltd	associate(s)	Purchase	465,614	64.26%	〞	〞	〞	(29,062)	(75.43)%

52 -

(8)Account receivable from the related parties exceed One Hundred Million New Taiwan Dollars or 20% of the Capital received: N/A

(9)Financial derivative transactions: N/A
(10)Business relationship and significant intercompany transactions:

NO	Name of company	Name of counter-party	Existing relation hip with counter party	s - Transaction details Account name amount Trasing terms Percentage of the total consolidated revenue or total assets	s - Transaction details Account name amount Trasing terms Percentage of the total consolidated revenue or total assets	s - Transaction details Account name amount Trasing terms Percentage of the total consolidated revenue or total assets	s - Transaction details Account name amount Trasing terms Percentage of the total consolidated revenue or total assets
					amount	Trasing terms	Percentage of the total consolidated revenue or total assets
1	Kwang Ming Silk Mill Co., Ltd.	Yi Jinn Industrial Corp., Limited.	2	Sale income	132.516	No significant differences	3.20%
1	Kwang Ming Silk Mill Co., Ltd.	Yi Jinn Industrial Corp., Limited.	2	Accounts Receivable	8.253	No significant differences	0.04%
2	Hung Chou Fiber Industry Co.,Ltd	Kwang Ming Silk Mill Co.,Ltd.	3	Sale income	465.614	No significant differences	11.23%
2	Hung Chou Fiber Industry Co.,Ltd	Kwang Ming Silk Mill Co.,Ltd.	3	Note receivable	29.062	No significant differences	0.16%

Note 1: the number indication as follows:

0 as Parent Company.
Subsidiaries is in order from figure 1 according to the company

Note 2 the existing relationship with counterparty as follows:

Parent to subsidiaries
Subsidiaries to parent
Subsidiaries to Subsidiaries

2.Information on reinvesting enterprise:

The company's reinvestment business information for 2021 is as follows (excluding mainland investee companies):

Unit: Thousands of New Taiwan Dollars

Investing company Name	Investee company Name	Location	Main operating business	Initial invest	ing amount	Holdings	at the end of per	iod	Investee company Current Profit and loss	Listed of the Period Investment Profit and Loss	Remark
				End of Period	End of last year	Shares	Rate	Book Value
Yi Jinn Industrial Corp., Limited.	Yi Tong Fiber Co., Ltd.	Taiwan	Real Estate Rental or trading	462,840	449,762	41,442,559	46.81%	444,907	118,522	28,109	Subsidiaries
Yi Jinn Industrial Corp., Limited.	Xin Mao Investment Co.,Ltd.	Taiwan	Investment	298,091	298,091	5,959,886	35.33%	5,893	120,660	15,492	"
Yi Jinn Industrial Corp., Limited.	Kwang Ming Silk Mill Co., Ltd.	Taiwan	Cotton filament, artificial fibre and others manufacturing, processing and tradingbusiness	474,758	474,758	15,586,193	38.53%	671,541	82,605	36,170	"
Yi Jinn Industrial Corp., Limited.	Hung Chou Fiber Industry Co., Ltd	Taiwan	Synthetic fibres, plastic filament manufacturing, processing and trading business	249,778	249,778	36,601,000	27.70%	493,897	106,311	28,854	"
Yi Jinn Industrial Corp., Limited.	Da Tian International Co.,Ltd.	Taiwan	Housing and Building Development	100,000	100,000	10,000,000	33.33%	115,388	40,462	13,488	"
Yi Jinn Industrial Corp., Limited.	Da Yi International DevelopmentCo.,Ltd.	Taiwan	Housing and Building Development	612,500	612,500	61,250,000	61.25%	503,627	(19,240)	(10,547)	"
Yi Tong Fiber Co., Ltd.	Kwang Ming Silk Mill Co., Ltd.	Taiwan	Cotton filament, artificial fibre and others manufacturing, processing and tradingbusiness	98,507	98,507	3,246,900	8.03%	141,570	82,605	Exempted from disclosure	"
Yi Tong Fiber Co., Ltd.	Hung Chou Fiber Industry Co., Ltd	Taiwan	Synthetic fibres, plastic filament manufacturing, processing and trading business.	65,000	65,000	10,000,000	7.57%	183,513	106,311	"	"
Yi Tong Fiber Co., Ltd.	Chu Sing Industrial CO., Ltd.	Taiwan	All sorts of man-made, natural fibre manufacturing, processing and tradingbusiness	22,185	22,185	269,285	31.09%	26,595	104	"	associate(s)
Yi Tong Fiber Co., Ltd.	Da Tian International Co.,Ltd.	Taiwan	Housing and Building Development	75,000	75,000	7,500,000	25.00%	86,548	40,462	"	Subsidiaries
Yi Tong Fiber Co., Ltd.	Da Yi International DevelopmentCo.,Ltd.	Taiwan	Housing and Building Development	10,000	10,000	1,000,000	1.00%	9,439	(19,240)	"	"
Yi Tong Fiber Co., Ltd.	Xin Mao Investment Co., Ltd.	Taiwan	Investment	20,500	20,500	2,050,000	12.15%	50,884	120,660	"	"
Kwang Ming Silk Mill Co., Ltd.	Hung Chou Fiber Industry Co., Ltd	Taiwan	Synthetic fibres, plastic filament manufacturing, processing and trading business.	45,500	45,500	7,000,000	5.30%	128,484	106,311	"	"
Kwang Ming Silk Mill Co.,Ltd.	Da Yi International DevelopmentCo.,Ltd.	Taiwan	Housing and Building Development	100,625	100,625	10,062,500	10.06%	82,935	(19,240)	"	"
Hung Chou Fiber Industry Co.,Ltd	Da Yi International DevelopmentCo.,Ltd.	Taiwan	Housing and Building Development	61,875	61,875	6,187,500	6.19%	50,998	(19,240)	"	"
Da Tian International Co.,Ltd.	Da Yi International DevelopmentCo.,Ltd.	Taiwan	Housing and Building Development	40,000	40,000	4,000,000	4.00%	32,968	(19,240)	"	"

Note: the subsidiaries part is write-off by the time of preparing consolidate statement.

53 -

3.Information on investment in Mainland China: N/A

4.Information on major shareholders:

mation on major shareholders:
Shares Name of major shareholders	Shareholding	Ratio of shareholding
Yi Tong Fiber Co., Ltd.	57,954,410	19.21%
CHAN, CHENG-TIEN	24,010,494	7.95%
Xin Mao Investment Co., Ltd.	20,610,470	6.83%
Yi Jinn Industrial Co., Ltd.	16,669,717	5.52%

XIV. Segment information

1. General Information

The consolidated company has three segments that shall be disclosed: textile segment, leasing segment and general segments. The textile segment is engaged in the processing and trading of artificial and natural fibre and textile products. Leasing segment is engaged in real estate sales and leasing business. The general segments are engaged in the import and export business of textile products and investment in various securities and real estate development.

The segments of the consolidated company segments that shall be disclosed were the strategic business units providing products and services. Because each strategic business unit needs different technology and marketing strategy, it must be managed separately. Most of the operating units are acquired individually and the management teams were retained by the time of acquisition.

The information on the income and loss, assets and liabilities of the reported segments and its measurement and adjustment

The consolidated company takes the income and loss, checked and reviewed by the main operating decision maker with internal management report, as the basis of management sources allocation and assessing performance. The income tax, the recurring income and loss and exchange income and loss were managed in the basis of the Group, therefore the consolidated company not allocating income tax expense (income), and nonrecurring income and loss and exchange income and loss to the reported segment. In addition, not all of the income and loss of disclosed segments include non-cash items, except depreciation and amortised. The amount of the report and the report for operating decision maker is consistent.

The consolidated company assumed the purchase, sale and transfer between the segments as the third parties’ transaction and measured in current market price.

54 -

Operating Segments Information and Adjustment, as follows

		Year 2021		Total 4,146,179 - 452
Segment of textile $ 3,964,735 605,375 417	Segment of leasing 181,444 27,624 35	Segment of general - - -	Adjustment and elimination - (632,999) -
$ 4,570,527	209,103	-	(632,999)	4,46,631
$ 76,859 140,152 112,700 $ 351,710	50,543 31,561 25,298 123,951	981 - - 204,815	(3,159) 3,041 (137,894) (283,791)	125,224 174,754 104
				396,685
$ 2,497,670 43,917 $ 14,195,930	531,517 1,089,847 6,781,115	- - 502,254	(3,002,592) - (2,959,496)	26,595 1,133,764 18,519,803
$ 7,217,240	3,527,256	83,559	(202,436)	10,625,619
		Year 2020		Total 2,707,215 - 1,375
Segment of textile $ 2,458,637 328,200 1,354	Segment of leasing 158,578 27,625 60	Segment of general - - -	Adjustment and elimination - (355,825) (39)
$ 2,878,191	186,263	-	355,864)	2,708,590
$ 75,473 112,494 (138,129) $ 597,088	55,814 33,342 (20,340) 24,910	1,029 - - 82,910	(3,563) (1,424) 157,135 105,379	128,753 144,412 (1,334) 810,287
$ 2,410,605 67,232 $ 13,349,570	463,074 1,916,287 6,692,439	- 4,985 407,618	(2,847,188) - (2,668,813)	26,491 1,988,504 17,780,814
$ 6,451,717	3,722,643	85,332	(242,076)	10,017,616

Information on regions: Refer to Note 6 (18).
Information on major customers

The composition of customers that exceed 10% of the amount of operating income of the consolidated company in 2021 and 2020 is as follows:

Client A Client B	$	Year 2021 412,012 381,616 793,628		Year 2020 - 270,362
	$			270,362

55 -

AI assistant

YI JINN — Annual Report 2021

51818_rns_2021-11-12_d705ca34-16d9-4a58-bd39-5e5415027839.pdf

Yi Jinn Industrial Corp., Limited and its subsidiaries

Year 2021 and 2020

Table of Content

Representation letter

Independent auditor’s report

Opinion

Basis for opinion

Key Audit Matters

Other Matter

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd. and Subsidiaries Consolidated Statement of Change in Equity

For the years ended December 31, 2021 and 2020

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Corp., Ltd Notes to Consolidated Company Financial Statements For the years ended December 31, 2021 and 2020

(Amount in Thousands of New Taiwan Dollars, unless specified otherwise)

IV. Summary of significant accounting policies

(1) Financial Assets

v. Derecognition of financial assets

(2) Discontinued operations

10. Investing affiliated enterprise

12. Property, plant and equipment

(1) Recognition and measurement

(2) Subsequent expenditure

(3) Depreciation

13. Leasing

1.The company as lessee

14. Impairment of non-financial assets

15. Income recognition

1. Income from contracts with customers

16. Government grants

17. Employees’ benefits

(1) Defined benefit plans

18. Income tax

19. Earnings per share

20. Segment information

V. Critical accounting judgements and key sources of estimation and uncertainty

Valuation procedure

Transfer within levels

Further information on the assumption used in fair value

VI. Contents of Significant Accounts

(2) Financial summary of Kwang Ming Silk Mill Co., Ltd.

9. Property, plant and equipment

10. Investment property

12. Short-term loans

14. Operating lease

15. Income tax

(1) Income tax expense

(2) Deferred income tax assets and liabilities

16. Capital and other equity

(2) Capital Surplus

(4)Treasury Stock

(5)Other equity (Net amount after tax)

(6)Non-controlling equity

17. arnings (loss) per share

18. Revenue from contracts with customers

(1) Disaggregation of revenue

19. Employees’ Compensation and directors’ remuneration

YI JINN Annual Report 2021