YI JINN - Audit Report / Information 2021

Stock Code ： 1457

Yi Jinn Industrial Corp., Limited

Parent Only Financial Statement 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	Pages
I.	Cover		1
II.	Table of Content		2
III.	Independent Auditors’ Report		3
IV.	Balance Sheet		4
V.	Comprehensive Income Statement		5
VI.	Statement of Change in Equity		6
VII.	Statement of Cash Flow		7
VIII.	Notes to Parent Only Financial Statement
	(I.)	Company History	8
	(II.)	Date and Procedures of Authorization of Financial Statements for	8
		Issuance
	(III.)	Newly Issued or Revised Standards and Interpretations	8`～`9
	(IV.)	Summary of Significant Accounting Policies	9`～`18
	(V.)	Critical Accounting Judgements and Key Sources of Estimation and	18`～`19
		Uncertainty
	(VI.)	Contents of Significant Accounts	19`～`40
	(VII.)	Transactions with the Related Parties	40`～`42
	(VIII.)	Pledged Assets as Collaterals	42
	(IX.)	Commitments and Contingencies	42
	(X.)	Loss Due to Major Disasters	42
	(XI.)	Significant Subsequent Events	42
	(XII.)	Other	42`～`43
	(XIII.)	Additional Disclosure
		1. Information on Major Transactions	43
		2. Information on Reinvesting Enterprise	46
		3. Information on Investment in Mainland China	46
		4. Information on Major Shareholders	46
	(XIV.)	Segment Information	46

Independent Auditors’ Report

To the board of directors

Yi Jinn Industrial Corp., Limited.

Opinion

We have audited the accompanying parent company only financial statements of Yi Jinn Industrial Co., Ltd., (the “company”) which comprise the parent company only balance sheet as of December 31, 2021 and 2020, and parent company only statements of comprehensive income, changes in equity and cash flows for the years ends December 31, 2021 and 2020, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements represents fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2021and 2020, and its parent company only financial performance and its parent company only 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 parent company only financial statements section of out report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled 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 parent company only financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the company’s parent company only financial statements for the year ended December 31, 2021 are stated as follows:

1. Revenue recognition

Please refer to Note 4 (14) “revenue recognition” and for more details please refer to Note 6 (18) “revenue from contracts with customers” of the parent company only financial statement. Description of the key audit matters:

The revenue from processing silk 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.

According to the auditing procedure:

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

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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.

Responsibilities of Management and those Charged with Governance for the Parent Company Only Financial Statements

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

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

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

Auditor’s Responsibilities for the Audit of the parent company only financial statements

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

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forming our audit opinions of the Company.

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 parent company only 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-Financial-Securities: number of the VI-0940100754 FSC approval No.Financial-SupervisoryLetter: Securities-auditing- 1020000737

March 23, 2022

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Yi Jinn Industrial Co., Ltd.

Parent Company Only Balance Sheet

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

December 31, 2021 Amount ％ $ 130,547 2 305,229 4 4,085 - 150,466 2 4,162 - 89,976 1 627 - 3,093 - 32,895 -	December 31, 2021 Amount ％ $ 130,547 2 305,229 4 4,085 - 150,466 2 4,162 - 89,976 1 627 - 3,093 - 32,895 -	December 31, 2020 Amount ％ 145,998 2 401,766 5 4,479 - 282,458 4 5,858 - 49,257 1 3,950 - 14,646 - 15,229 -	December 31, 2020 Amount ％ 145,998 2 401,766 5 4,479 - 282,458 4 5,858 - 49,257 1 3,950 - 14,646 - 15,229 -
Amount $ 130,547 305,229 4,085 150,466 4,162 89,976 627 3,093 32,895		Amount 145,998 401,766 4,479 282,458 5,858 49,257 3,950 14,646 15,229
721,080	9	923,641	12
2,235,253 445,593 39,112 5,086,944 28,469 484 92,693	26 5 - 59 - - 1	2149,321 421,194 40,564 4,145,826 28,469 484 285,540	27 5 - 52 - - 4
7,928,548	91	7,071,398	88
$ 8,649,628	100	7,995,039	100

Yi Jinn Industrial Co., Ltd.

Parent Company Only Balance Sheet

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

December 31, 2021 Amount % $ 708,000 8 3,221 - 35,087 - 33,315 - 24,240 - 10 ,193 - 44,383 1 693 -	December 31, 2021 Amount % $ 708,000 8 3,221 - 35,087 - 33,315 - 24,240 - 10 ,193 - 44,383 1 693 -	December 31, 2020 Amount % 440,000 6 2,553 - 39,469 - 88,485 1 24,601 - - - 206,738 3 1,581 -	December 31, 2020 Amount % 440,000 6 2,553 - 39,469 - 88,485 1 24,601 - - - 206,738 3 1,581 -
Amount $ 708,000 3,221 35,087 33,315 24,240 10 ,193 44,383 693		Amount 440,000 2,553 39,469 88,485 24,601 - 206,738 1,581
859,132	9	803,427	10
3,158,039 47,647	37 1	2,515,422 59,886	31 1
3,205,686	38	2,575,308	32
4,064,818	47	3,378,735	42
3,016,476 500,655 1,300,929 110,953 (344,203)	35 6 15 1 (4)	3,016,476 458,206 1,401,974 65,111 (325,463)	38 6 17 1 (4)
4,584,810	53	4,616,304	58
$ 8,649,628	100	7,995,039	100

(The accompanying notes are an integral part of the parent company only financial statements) Chairman: ZHAN, ZHENG-TIAN Managerial Officer ： WENG, MAO-CHENG Accounting Supervisor: LAI, YU-MIN

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Yi Jinn Industrial Co., Ltd.

Statement of comprehensive income For the years ended December 31, 2021 and 2020

In Thousands of Year 2021 Amount ％ $ 771,501 101 17 - 7,560 1	In Thousands of Year 2021 Amount ％ $ 771,501 101 17 - 7,560 1	New Taiwan Dollars Year 2020 Amount ％ 815,566 101 56 - 7,918 1	New Taiwan Dollars Year 2020 Amount ％ 815,566 101 56 - 7,918 1
Amount $ 771,501 17 7,560	％	Amount 815,566 56 7,918
	101 - 1
763,924 592,314	100 78	807,592 617,973	100 77
171,610	22	198,619	23
44,525 39,875	6 5	40,124 55,178	5 7
84,400	11	95,302	12
-	-	973,130	120
-	-	973,130	120
87,210 19,371 38,415 (45,466) 111,566	11	1,067,447	131
	2 5 (6) 15	7,371 (31,021) (43,299) (117,433)	1 (4) (5) (15)
123,586	16	(184,382)	(23)
210,796 10,193	27 1	883,065 163,173	108 20
200,603	26	719,892	88
-	-	(75,635)	(9)
200,603	26	644,257	79
24,399 21,443 -	3 3 -	91,053 10,723 -	11 1 -
45,842	6	101,776	12
$ 246,445	32	746,033	91
$ -	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 parent company only financial statements) Chairman: ZHAN, ZHENG-TIAN Managerial Officer ： WENG, MAO-CHENG Accounting Supervisor: LAI, YU-MIN

Yi Jinn Industrial Co., Ltd. Statement of changes in equity For the years ended December 31, 2021 and 2020

Common Stock	Capital Surplus	Legal Reserve 189,279 - -	Retained	Earnings		In Thousands of New Taiwan Dollard Other equity items Unrealized gain or losses on FVTOCI financial assets Treasury Stock Total Equity (20,939) (324,680) 4,133,575 - - 644,257 101,776 - 101,776	In Thousands of New Taiwan Dollard Other equity items Unrealized gain or losses on FVTOCI financial assets Treasury Stock Total Equity (20,939) (324,680) 4,133,575 - - 644,257 101,776 - 101,776	In Thousands of New Taiwan Dollard Other equity items Unrealized gain or losses on FVTOCI financial assets Treasury Stock Total Equity (20,939) (324,680) 4,133,575 - - 644,257 101,776 - 101,776
			Special Reserve - - -	Undistributed retained earnings	Total 1,043,639 644,257 -
$ 3,016,476 - -	419,079 - -
				854,360 644,257 -
-	-	-	-	644,257	644,257	101,776	-	746,033
- - - - - - - -	- - - - 37,779 5,871 (4,523) -	23,030 - - - - - - -	- 20,939 - - - - - -	(23,030) (20,939) (301,648) - - - - 15,726	- - (301,648) - - - - 15,726	- - - - - - - (15,726)	- - - (783) - - - -	- - (301,648) (783) 37,779 5,871 (4,523) -
3,016,476 - -	458,206 - -	212,309 - -	20,939 - -	1,168,726 200,603 -	1,401,974 200,603 -	65,111 - 45,842	(325,463) - -	4,616,304 200,603 45,842 246,445 - (301,648) - (850) 36,426 12,447 (24,314) 4,584,810
-	-	-	-	200,603	200,603	45,842	-
- - - - - - -	- - - - 36,426 5,368 655	65,999 - - - - - -	- - (20,939) - - - -	(65,999) (301,648) 20,939 - - - -	- (301,648) - - - - -	- - - - - - -	- - - (850) - 7,079 (24,969)
$ 3,016,476	500,655	278,308	-	1,022,621	1,300,929	110,953	(344,203)

(The accompanying notes are an integral part of the parent company only financial statements) Chairman: ZHAN, ZHENG-TIAN Managerial Officer ： WENG, MAOAccounting Supervisor: LAI, YUCHENG MIN

Yi Jinn Industrial Co., Ltd. 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 impairment (reversal gains) losses Valuation gain on financial investments Interest expense Interest income Dividend income Share of profit(loss) of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Disposal of non-current interests held for sale Impairment loss on non-financial assets Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities Changes in operating assets: Financial assets at fair value through profit or loss, mandatorily measured at fair value Notes receivable Accounts receivable Another receivable Current inventories Prepayments Other current assets Other financial assets Total changes in operating assets Changes in operating liabilities: Contract liabilities Nates payable Accounts payable Other payable Other current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustment Net cash generated (used) by operating activities Interest received Interest paid Income taxes paid Net cash generated (used) by operating activities	Year 2021 $ 210,796 -	Year 2020 883,065 (75,635)
	210,796 28,037 - - (49,969) 45,766 (36) (17,013) (111,566) 122 - -	807,430 16,014 944 (378) (46,441) 43,299 (23) (5,181) 117,433 5,893 (973,130) 45,262
	(104,749)	(796,308)
	146,506 394 131,992 1,696 (40,719) 3,323 (17,666) 11,553	(300,543) 25,763 50,477 (4,732) 203,413 (1,726) (14,742) (13,330)
	237,079	(55,420)
	668 (4,382) (55,170) (1,410) (888)	2,376 3,279 35,025 (43,285) (2.998)
	(61,182)	(5,603)
	175,897	(61,023)
	71,148	(857,331)
	281,944 36 (44,717) -	(49,901) 23 (44,069) (165,503)
	237,263	(259,450)

Yi Jinn Industrial Co., Ltd.

Statements of cash flows

For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Cash flows from investing activities： Acquisition of investments accounted for using equity method Disposal of non-current assets Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of investment property Increase in other financial assets Increase(decrease) in other non-current assets Dividends received Net cash (outflow) inflow from investing activities Cash flows from financing activities: Increase(decrease) in short-term loans Proceeds for long-term debt Repayments of long-term debt Deposit (decrease) increase Cash dividends paid Net cash inflow (outflow) from financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period	Year 2021 (13,078) - - 170 (11,091) - (764,057) 100,967	Year 2021 (13,078) - - 170 (11,091) - (764,057) 100,967	Year 2020 (122,500) 3,019,806 (34,515) 11,951 (1,433,230) 3.369 (50,785) 62,699
	(687,089)		1,456,795
	268,000 737,000 (256,738) (12,239) (301,648)		(942,309) 1,336,110 (1,362,075) 26,079 (301,648)
	434,375		(1,243,843)
	(15,451) 145,998		(46,498) 192,496
	$ 130,547		145,998

(The accompanying notes are an integral part of the parent company only financial statements) Chairman: ZHAN, ZHENG-TIAN Managerial Officer ： WENG, MAO-CHENG Accounting Supervisor: LAI, YU-MIN

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Yi Jinn Industrial Corp., Ltd Notes to Parent Company Only 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 company is 7[th] Floor, No.607, Ruiguang Rd., Neihu Dist., Taipei City. The main scope of business 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.
Commissioning construction enterprises to develop industrial areas approved by industrial supervisory authority.
Real estate trading and leasing business.

ii. Date and procedures of authorization of financial statements for issuance

The accompanying parent company only financial statements were approved and authorized for issue by the board of directors on March 23, 2022.

iii. Newly issued or revised standards and interpretations

Impact of newly issued and amended standards and interpretations approved by the Financial Supervisory Commission (FSC).

The Company started to apply the following amendments to the IFRSs from January 1, 2021 which did not have a significant effect on the Company’s parent company only 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".
New 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 company, as follows:

Newly issued or Amended Standards Amendment to IAS 1, “Classification of Liabilities as Current or Non-current”	Main Amended Content The amendment is to improve the consistency of the standards, to assist 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.	Effective Date Issued by IASB
		January 1, 2023

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

The Company expected that other newly issued and amended standards not yet endorsed and issued into effect by the FSC did not result in significant impact on Individual financial statements.

iv. Summary of significant accounting policies

The summary of significant accounting policies are as follows; the following accounting policy is applied in this parent only financial statement.

Statement of Compliance

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

Basis of Preparation
(1) Basis of Measurement
- The accompanying parent company only financial statements have been prepared on the
- historical cost basis except the following significant items of the balance sheet:
- i. Financial assets measured at fair value through profit and loss; and
- ii. Financial assets measured at fair value through other comprehensive profit and loss.
(2)Functional Currency and presentation currency

The functional currency is the currency for the economic environment in which the company operates. The parent company only 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.

Foreign Currencies Transactions in Foreign Currencies

Foreign currency transactions are translated into functional currencies at the exchange rate 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 from foreign currency exchange, if any, are recognized in profit or loss, except for the following circumstances recognized as other comprehensive income:

(1) Designated 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 effective hedging in cash flow.
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.

6. 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 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 classified in the same way, respectively.

The originated 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 Company reclassified the affected financial assets from the first day of next reporting date only when the Company change its management mode of managing 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 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 on these investments in equity instruments at fair value through other comprehensive income are recognized in profit or loss unless they clearly represent a recovery of part of the cost of the investment. Other net income or loss are recognized as other comprehensive income and not reclassified as 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 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 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 impairment loss.

The impairment 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 the original recognition.

The impairment 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 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 loss during the lifetime is the expected credit loss of all the possible reason of breach of contract with in the expected lifetime of the financial instrument.

Expected credit loss within 12 months are the expected credit loss that may occur due to the reason of breach the contract of financial instrument within the 12 months after reporting date (or even shorter, if the lifetime of financial instruments is shorter than 12 months).

When measuring the longest lifetime of expected credit loss are the longest contract lifetime of the Company expose under the credit risk.

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. Derecognize of financial assets

he 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

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 measured at amortised cost. 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.

7. 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 to be sold and discontinued operations
(1) Non-current assets held for sale

Non-current assets or disposal groups composed of assets and liabilities are classified as to be sold 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 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.

9. Investing subsidiaries

When preparing the parent company only financial statement, the company evaluates the investee company with control by equity method. Under equity method, the current profits and losses and other comprehensive profits and losses in the parent company financial report are the same as those in the financial report prepared on a consolidated basis. The owner's equity in the parent company only financial report is the same as that of the parent company in the financial report prepared on the consolidated basis

If the change of the ownership rights and interests of the subsidiary does not result in the loss of control, it shall be regarded as the rights and interests transaction with the owner..

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 part of the leasing revenue.

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

11. 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.

d No depreciation is recognized for land.	d 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.

12. Leasing

The company determine whether the contract is leasing or include 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 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 company shall evaluate 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 measure 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 company represent 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 company selects to not recognise them as right-of-use asset and leasing liability but to recognise the leasing payment as expenses within the duration of leasing under straight-line-basis.

(2) The company as lessor

For the transactions with the 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 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 company allocates the consideration in the contract in accordance with IFRS 15

13. Impairment of non-financial assets

The 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.

Income recognition

Income from contracts with customers

Income is measured according to the consideration expected to be obtained by transferring goods or services. The 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 company as follows:

(1) Sales of goods

The 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 company recognises receivables from the time of goods delivery as the company has the right to receive the price of transaction, unconditionally.

(2)Composition of finance

The 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 company does not make any adjustment on the time value of currency for the price of transaction.

Employee 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 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.

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, affiliated enterprise and joint venture, but only to the extent that the 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) Liabilities arising from initial recognition of goodwill.

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.

Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted.

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

(1) The company has the legal right to offset the current income tax assets and current income tax liabilities; and
(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.
Earnings per share

The 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 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.

Information on department

Information on department is disclosed within the consolidated financial statement, therefore excluded from Individual financial statement.

v.

Critical accounting judgments and key sources of estimation and uncertainty

The preparation of the financial statements in conformity with the, 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 consists of critical accounting judgments and significant impact on the amount listed on the accompanying parent only financial statements: None.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment with the next financial year, and reflected the impact of COVID19 pandemic, are as follows:

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 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 company's accounting policies and disclosure include fair value measurement of its financial and non-financial assets and liabilities. The 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. Fair value levels are based on the degree in which the fair value can be observed and grouped in to level 1 to 3 as follows:

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 company shall recognize such transfer at the reporting date

Further information on the assumption used in fair value

For further information on the assumption used in fair value, please refer to the following notes Note 6(22), Financial Instrument

vi. Contents of significant accounts

Cash and cash equivalent

Cash on Hand Check Deposit Demand Deposit Foreign Currency Deposit Cash and Cash Equivalent stated on statement of cash flow	December 31, 2021 $ 120 31,956 4,181 94,290	December 31, 2020 120 109,207 1,941 34,730
	$ 130,547	145,998

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

Financial asset at fair value through profit or loss

December 31, 2021 December 31, 2020 Financial Assets at Fair Value through Profit or Loss Beneficiary Certificate $ - 4,123 Shares of domestic companies listed the exchange and OTC 305,229 397,643 Total $ 305,229 401,766 nancial assets at fair value through profit or loss of the company are not provided as pledge dorsement by the date of December 31, 2021 and 2020. nancial asset at fair value through comprehensive income or loss December 31, 2021 December 31, 2020 Equity Instrument at Fair Value through Profit or Loss Non-current: Shares of domestic companies not listed the exchange and OTC Shares of COCONA.INC. 64,157 44,087 Shares of Kuanz Ho Securities 172,487 142,892 Ho Chi Tang Investment Co., Ltd 7,670 7,196 Shares of Nice Plaza Co., Ltd. 170,400 177,150 Shares of YaMai (Hong Kong) Limited 30,879 49,869 Total $ 445,593 421,194	December 31, 2021 $ - 305,229	December 31, 2020 4,123 397,643
	$ 305,229	401,766

Financial assets at fair value through profit or loss of the company are not provided as pledge endorsement by the date of December 31, 2021 and 2020.

Financial asset at fair value through comprehensive income or loss
(1) The equity instrument of the company is for strategic investment and not for the purpose of trading, and therefore is designated as measured at fair value through comprehensive income or loss.
(2) For information regarding credit risk and market risk, please refer to Note 6(22).
(3) Financial assets at fair value through comprehensive income of the company are not provided as pledge endorsement by the date of December 31, 2021 and 2020.
Note Receivable and Account Receivable

Note receivable-resulting from operating activities Account receivable-amortized cost Less: Allowance loss	December 31, 2021 $ 4,085 152,011 (1,545)	December 31, 2020 4,479 284,003 (1,545)
	$ 154,551	286,937

(1) The 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 period of existence. 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, Including the overall economy and related industry information. An analysis of the company's expected credit losses on notes and accounts

receivable is as follows:

December 31, 2021	December 31, 2021
Book value of accounts receivable $ 147,465 7,086 1,545	Forecast weighted average credit loss ratio	Lifetime allowance forecast credit loss - - 1,545
$ 156,096		1,545

Accounts receivable book value $ 286,919 18 1,545	Forecast weighted average credit loss ratio	Lifetime allowance forecast credit loss - - 1,545
	0% 0 % 100%
$ 288,482		1,545

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

Opening balance Reversal on impairment loss (Listed under income(loss) from discontinued operation) Ending balance	Year 2021

(3) The note receivable and account receivable of the company are not provided as pledge endorsement on the date of December 31, 2021 and 2020.

(4) Other information on credit risk, please refer to Note 6(22).

Other receivables

Other receivables-equity transfer Other receivables-other Other receivables-related parties Less: Allowance loss	December 31, 2021 $ 58,741 4,162 - (58,741)	December 31, 2020 58,741 4,735 1,123 (58,741) 5,858
	$ 4,162

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.

Inventories

Finished goods Raw material Less: Allowance loss	December 31, 2021 $ 61,540 33,136 (4,700)	December 31, 2020 24,447 28,643 (3,833) 49,257
	$ 89,976

The sales price details are as follows:

Year 2021 Inventory sale transfer $ 550,179 Inventory depreciation loss (recovery benefit) 867 Sale of scraps - rental cost 41,268 Plus: the benefit of falling prices of inventories belonging to discontinued units - $ 592,314	Year 2021	Year 2020 594,596 (27,867) (314) 23,691 27,867
	$ 592,314	617,973

The inventories in fiscal 2021, the Company recorded a loss on decline in value of inventories due to the aging of inventories as a result of the slowing down of shipments by end-users. In fiscal 2020, the Company sold inventories for which a loss on decline in value was recorded in previous years, resulting in an increase in the net realizable value of inventories and reversal of the previously recognized loss on decline in value.

The company are not provided as pledge endorsement on the date of December 31, 2021 and 2020.

7. Assets or discontinued operations held for sale

(1) Discontinued operations:

The company’s board of directors 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 on the Board meeting on October 31, 2019.

The operating result of discontinued operation is as follows:

Operational result of discontinued operation: Operating income Operating cost Gross Loss from operations Operating expense Net loss from operation Non-operating income and expense Net loss before tax Income tax expense Net loss from discontinued operation 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 from investing 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:

The details of the changes in the non-current assets to be disposed of by the Company are as follows:

The change in assets held for sale as follows:

as follows: The change in assets held for sale as follows:
Opening balance Transferred-in Disposal Ending balance	Year 2021	Year 2020
	$ - - -	1,396,256 691,267 (2,087,523)
	$ -	-

The board of directors of the company approved to sell the land and structure of DaYing District, Tainan City with several instalments on July 31, 2019, October 31, 2019 and June 3, 2020. The procedure of real estate settlement has been complete in 2020 and NT$970,755,000 is recognised as benefits from disposal of noncurrent assets held for sale. Until December 31, 2020, the above-mentioned price is received in full amount.

The board of the directors of the company approved to terminate the manufacturing of processing yarn of the Tainan factory since January 1, 2020 on the date of October 31, 2019 and sell all of its machinery equipment to the related parties. The trading agreement was signed on December 26, 2019 with the amount sold at NT$44,360,000 and the full amount of NT$44,360,000 was received on the date of December 30, 2019. The above transaction was completed in January 2020; therefore, the Company recognized a gain of NT$14,253,000 on disposal of non-current assets held for sale.

8. Investment under equity method

The investment under equity method on the report date as follows:

Investment under equity method The investment under equity method on the report date as follows:
December 31, 2021 Subsidiaries $ 2,235,253 (1) Subsidiaries Please refer to the 2021 consolidated financial statement.	December 31, 2020 2,149,321

(2) Endorsement

The investment under equity method is not provided as pledge endorsement on the date of December 31, 2021 and 2020.

9. Property, plant and equipment

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

Land $ 32,235 -	Building& Structure	Machinery and Equipment	Transporta tion Equipment	Office Equipment	Total
					50,228 (1,750) 48,478 167,686 34,515 (798) (57,663) (93,512) 50,228 9,664 1,160 (1,458) 9,366 85,017 1,026 (75,668) (711) 9,664 39,112 82,669 40,564
	3,054 - 3,054 3,852 - (798) - - 3,054 1,532 71 - 1,603 2,173 70 - (711) 1,532 1,451 1,679 1,522			5,704 - 5,704 7,168 - - - (1,464) 5,704 4,382 258 - 4,640 5,561 269 (1,448) - 4,382 1,064 1,607 1,332
		- - - 88,948 - - - (88,948) - - - - - 71,157 480 (71,637) - - - 17,791 -	9,235 (1,750) 7,485 7,350 4,985 - - (3,100) 9,235 3,750 831 (1,458) 3,123 6,126 207 (2,583) - 3,750 4,362 1,224 5,485
$ 32,235





$ -
$ 32,235
$ 32,235
$ 32,235

The property, plant and equipment are not provided as bank deposit or financing credit endorsement on the date of December 31, 2021 and 2020.

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 allows the lessee to have options on extension.

The change in investment property of the company as follows:

Land $ 3,125,723 1,952 442,852	Building & Structure 1,169,332 9,139 514,052	Total 4,295,055 11,091 956,904
$ 3,750,527	1,692,523	5,263,050
	816,183 561,585 - (170,056) (38,380)	3,429,916 1,433,230 125,420 - (693,511)
$ 3,125,723	1,169,332	4,295,055
$ 76,242 -	72,987 26,877	149,229 26,877
$ 76,242	72,987	176,106
	60,330 14,988 (2,331) -	91,310 14,988 (2,331) 45,262
$ 76,242	72,987	149,229
$ 3,494,285	1,592,659	5,086,944
$ 2,582,753	755,853	3,338,606
$ 3,049,481	1,096,345	4,145,826

(1) The investment property consists of various commercial property and plant for renting to others. The agricultural land of Huantan Township, Changhua held by CHANG, ZHEN TIAN and various people, created the pledge for the company. The above-mentioned land is used for renting.
(2) The investment property held by the company were NT$7,502,219,000 and NT$5,068,698,000 at fair value on the date of December 31, 2021 and 2020 and the price is determined by the market price of deal for the surrounding area and the real estate appraisal report.
(3) For the purchase of significant investment property of the company on the date December 31, 2021, please refer to Note 13(1).5.
(4) The company recognised the impairment loss of NT$0 and NT$45,262,000 in the year 2021 and 2020 after assessing the investment property asset of Huantan and Dachun township with its conditions in use and the value impairment.

(5) For the investment property used as pledge for long-term funding and funding endorsement credit, please refer to Note 8.
Other non-current assets

Details of other non-current assets of the company as follows:

Real estate Prepayment Other	December 31, 2021 $ 92,570 123	December 31, 2020 285,415 125
	$ 92,693	285,540

The information on significant real estate prepayment on the date of December 31, 2021 as stated on Note 13 (1).5.

Short-term loan

Details of short-term loan as follows:

Unsecured loan from bank Secured loan from bank Total Unused facilities Interest rate collars	December 31, 2021 $ 270,000 438,000	December 31, 2020 440,000 -
	$ 708,000	440,000
	$ 912,000	830,000
	0.58%~1.15%	0.58%~1.35%

The assets created for bank deposit pledge as stated on Note 8.

Long-term loan

Details, terms and conditions of long loan as follows:

	December 31, 2021	December 31, 2021	Amount $ 3,202,422 (44,383)
currency	Interest rate collars	Year of maturity
New Taiwan Dollar	1.12%~1.53%	2024~2040
			$ 3,158,039
			$ -

	December 31, 2020	December 31, 2020	Amount $ 2,722,160 (206,738)
currency	Interest rate collars	Year of maturity
New Taiwan Dollar	1.12%~1.53%	2021~2040
			$ 2,515,422
			$ -

The assets created for bank deposit pledge is stated in Note 8.

14. Operating leasing

The investment property for rental of the company are not transfer the ownership and its risk and compensation, therefore the contract classified as operating rental, please refer to Investment Property of Note 6(10).

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

Less than one year One to two years Two to three years Three to four years Four to five years More than five years Total undiscounted lease payment	December 31, 2021 $ 51,287 58,890 57,679 44,388 39,140 61,518 $ 312,902	December 31, 2020 73,849 70,286 69,417 69,390 33,920 46,897
		363,759

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

Income tax from continuing operation
Income tax expenses

The details of income tax of the year 2021 and 2020 as follows:

Current income tax expense Generate within the period 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	Year 2021 $ 10,193 - -	Year 2020 - 158,517 (993)
	10,193	157,524
	-	5,649
	$ 10,193	163,173

The adjustment of income tax expense and net income before tax of continuing operation of year 2021 and 2020 as follows:

Year 2021 Profit before tax from continuing operations $ 210,796 Income tax calculated with the tax rate of the region the company registered $ 42,159 Investment profit or loss under the equity method (22,313) Dividend income (3,421) Valuation gain on financial assets (9,994) Land Value Increment tax - Impairment loss on non-financial asset - Income of selling land without tax - Over-estimate of income tax for the past years - Tax loss of not listed as deferred tax assets (6,199) Income basic tax 10,193 Other (232) Total $ 10,193	Year 2021 $ 210,796	Year 2020 883,065
		176,613 23,487 (1,036) (9,288) 158,517 9,052 (222,658) (993) 28,541 - 938
	$ 10,193	163,173

2. Deferred tax assets

i. Unlisted deferred tax assets

The unlisted deferred tax assets as follows:

ferred tax assets Unlisted deferred tax assets The unlisted deferred tax assets as follows:
Loss from uncollectible Loss carryforward	December 31, 2021 $ 11,748 14,687	December 31, 2020 12,133 21,355
	$ 26,435	33,488

The loss of tax is under the rule of Income Tax Act, with the approval of tax collection authorities may deducted the loss from the net income of the year and reassessing the income tax. These are not listed as unlisted deferred income tax assets because the company may not have sufficient temporary difference for the income tax.

ii. Listed deferred tax assets

Loss carryforward	Other	Total 28,469 - 28,469 34,118 (5,649) (5,649)
$ 27,778 (249)	691 249
$ 27,529	940
$ 27,778 - -	6,340 (5,649)
$ 27,778	691	28,469

iii. The taxable losses that have not been deducted by the Company of December 31, 2021, and the deduction period is as follows:

Year of loss	Loss not deducted	The year of latest deduction
Year 2012(authorized number) Year 2013(authorized number) Year 2020(declared number)	57,415 2022 11,266 2023 142,399 2030 $ 211,080

If the actual taxable income is higher or lower than expected, it may be necessary to reverse or recognize a significant amount of deferred asset and recognize the income tax expense or income in the period of reversal or recognition.

iv. The tax authorities have completed examination of income tax returns of the Company through 2019.

16. Capital and other equity

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 upon issuance.

(1) Capital Surplus

The component of capital surplus as follows:

December 31, 2021 Share premium $ 178,238 Treasury stock 289,199 Recognise changes in all equity in Subsidiaries 8,825 Difference between consideration and carrying amount of Subsidiaries acquired or disposed 12,648 Other 11,745 $ 500,655	December 31, 2021 Share premium $ 178,238 Treasury stock 289,199 Recognise changes in all equity in Subsidiaries 8,825 Difference between consideration and carrying amount of Subsidiaries acquired or disposed 12,648 Other 11,745 $ 500,655	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.

(2) 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 oversea. 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
When the company has no losses, it may, through the resolution of the shareholders' meeting, issue new shares or cash from the statutory earnings reserve, provided that the earnings exceeds 25% of the paid in capital.
ii. Special Reserve According to the regulations of the FSC, when distributing the distributable earnings, the company shall make up for the special earnings reserve from the current profit and loss and the previous undistributed earnings according to the difference between the net amount of other shareholders' equity decrease and the balance of the special earnings reserve; If the amount of other shareholders' equity deduction is accumulated in the previous period, the special earnings reserve shall be added from the undistributed earnings of the previous period and shall not be distributed. If there is a reversal in the amount of the subsequent reduction in other shareholders' equity, the earnings may be distributed in respect of the reversal.

Therefore, in accordance with the above regulations, the Company passed the resolution of the general shareholders' meeting on August 4, 110 and June 11, 109 to

reverse and set aside the special surplus reserve of NT$ (20,939) thousand and reversed NT$ 20,939 thousand.

iii. Earning distribution

The Earning distribution of January 1, 2020 to June 30, 2020 and July 1, 2019 to December 31, 2019 is approved by the shareholders’ meeting and board of directors 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, 2020	July to December, 2020	July to December, 2020
	Dividend rate(yuan)	Dividend rate(yuan)		Amount
	$ 0.50	0.50		150,824

The earning distribution of July 1, 2020 to December 31, 2020 was approved by the board of directors on February 15, 2021. The amount of owners’ dividend distribution as follows:

July to December, 2020 Dividend rate(yuan) Amount Dividends to common stockholder: Cash $ 1 301,648	July to December, 2020	July to December, 2020	July to December, 2020
	Dividend rate(yuan)		Amount
			301,648

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

(3) 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 1,294,671 325,463
	$ 731,599
	$ 1,535,944
	$ 344,203

The above-mentioned treasury stock is not sold until December 31, 2021. The market price per share is NT$19.55 and NT$16.50 on date December 31, 2021 and December 31, 2020 respectively.

(4) Other equity (net value after tax)

(4) Other equity (net value after tax)
	Unrealized gains or
		losses on fair value
		through other
		comprehensive
		income financial
		assets.
Balance at January 1, 2021	$	65,111
Unrealized gains or losses on fair value through other comprehensive income financial		24,399
assets.
Unrealized gains or losses on fair value through other comprehensive income financial assets		21,443
of Associates & Joint Ventures Accounted for Using Equity Method
Balance at December 31, 2021	$	110,953
Balance at January 1, 2020	$	(20,939)
Unrealized gains or losses on fair value through other comprehensive income financial		91,053
assets.
Unrealized gains or losses on fair value through other comprehensive income financial assets		10,723
of Associates & Joint Ventures Accounted for Using Equity Method
Share of Profit or Loss on fair value through other comprehensive income financial assets of		(15,726)
Associates & Joint Ventures Accounted for Using Equity Method
Balance at December 31, 2020	$	65,111

17. Earnings per share

The calculation of basic earnings per share and the diluted earnings of the year 2021 and 2020, show as follows:

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

18. Revenue from Contracts with Customers (1) Disaggregation of revenue

enue from Contracts with Customers Disaggregation of revenue
Main region and market Taiwan Asia America Europe Africa Main Products Sales of goods-polyester yarn Sales of goods -draw textured yarn Sales of goods -woven fabric Rent income Other Balance of the contracts Notes and account receivable Less: Allowance loss Total Contract Liabilities	Year 2021 $ 86,982 365,090 174,076 66,360 71,416 $ 763,924 $ - 156,859 556,057 51,008 - $ 763,924 December 31, 2021 December 31, 2020 $ 156,096 288,482 (1,545) (1,545) $ 154,551 286,937 $ 3,221 2,553	Year 2021 $ 86,982 365,090 174,076 66,360 71,416		Year 2020 118,239 400,430 147,628 74,864 66,431 807,592 14,529 205,488 529,568 58,007 - 807,592 January 1, 2019 364,722 (1,923)

		$ 763,924
		$ - 156,859 556,057 51,008 -
		$ 763,924
			December 31, 2020
			288,482 (1,545) 286,937 2,553
	$ 154,551			362,799
	$ 3,221			177

(2) Balance of the contracts

i. Disclosure of note receivable and account receivable, and their impairment please refer to Note 6(4)
ii. 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$2,553 thousand and NT$177 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$1,157,000 and NT$4,758,000 in 2021 and 2020, respectively, and the remuneration to Directors were NT$4,303,000 and NT$8,204,000 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.

The compensation to the employees in 2020 and 2019 were NT$4,758,000 and NT$4,992,000, respectively, and the remuneration to the directors were NT$8,204,000 and NT$4,992,000, 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

Other income and expenses of the company of the Year 2021 and 2020 as follows:

Disposal of non-current assets held for sale	Year 2021 $ -	Year 2020 973,130

21. Non-operating income and expense

(1) Other income

The detail of other income of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Interest from bank deposit $ 36 23 Dividend income 17,103 5,181 Other 2,232 3,648 Less: other income from discontinued operation - (1,481) $ 19,371 7,371 Other gains and losses The detail of other interest and loss of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Loss of foreign currency exchange $ (11,381) (20,142) Net gains on financial assets at fair value through profit or loss 49,969 46,441 Losses on disposals of property, plant and equipment (122) (5,893) Impairment loss - (45,262) Other (51) (8,488) Add: Other loss from discontinued operations - 2,323 $ 38,415 (31,021)	The detail of other income of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Interest from bank deposit $ 36 23 Dividend income 17,103 5,181 Other 2,232 3,648 Less: other income from discontinued operation - (1,481) $ 19,371 7,371 Other gains and losses The detail of other interest and loss of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Loss of foreign currency exchange $ (11,381) (20,142) Net gains on financial assets at fair value through profit or loss 49,969 46,441 Losses on disposals of property, plant and equipment (122) (5,893) Impairment loss - (45,262) Other (51) (8,488) Add: Other loss from discontinued operations - 2,323 $ 38,415 (31,021)	The detail of other income of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Interest from bank deposit $ 36 23 Dividend income 17,103 5,181 Other 2,232 3,648 Less: other income from discontinued operation - (1,481) $ 19,371 7,371 Other gains and losses The detail of other interest and loss of the Year 2021 and 2020 as show as follows: Year 2021 Year 2020 Loss of foreign currency exchange $ (11,381) (20,142) Net gains on financial assets at fair value through profit or loss 49,969 46,441 Losses on disposals of property, plant and equipment (122) (5,893) Impairment loss - (45,262) Other (51) (8,488) Add: Other loss from discontinued operations - 2,323 $ 38,415 (31,021)	Year 2020
			23 5,181 3,648 (1,481)
	$ 19,371		7,371
		follows: Year 2020 (20,142) 46,441 (5,893) (45,262) (8,488) 2,323 (31,021)
$ 38,415

(2) Other gains and losses

(3) Financial cost

The details of financial cost of the Year 2021 and 2020 as follows:

Financial cost The details of financial cost of the Year 2021 and 2020	as follows:
Interest expense of bank deposit Interest expense of imputed interest	Year 2021 $ 45,629 137	Year 2020 42,992 307 43,299
	$ 45,766

22. Financial Instruments

(1) Credit risk

i. Credit risk exposure

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

ii. Concentration of credit risk

The 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(5).

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 company, please refer to Note 4(6)).

(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	Contractu al cash flows	Within 6 months	6 to 12 months	1 to 2 years	2 to 5 years	More than 5 years
$ 3,910,422 140,289	4,028,800 140,289	603,471 87,230			1,166,232 32,711	2,054,130 13,086
$ 4,050,711	4,169,089	690,701	200,896	11,333	1,198,943	2,067,216
Carrying value	Contractu al cash flows	Within 6 months	6 to 12 months	1 to 2 years	2 to 5 years	More than 5 years
$ 3,162,160 212,441	3,341,301 212,441	374,104 152,650	306,621 -	77,225 2,684	1,003,250 47,063	1,580,101 10,044
$ 3,374,601	3,553,742	526,754	306,621	79,909	1,050,313	1,590,145

The 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 risk were as follows:

Financial Assets Monetary assets US Dollars	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2020	December 31, 2020	December 31, 2020
	Foreign Currencies	Exchange rate(Yuan)	New Taiwan Dollars	Foreign Currencies	Exchange rate(Yuan)	New Taiwan Dollars
	$ 9,477	27.68	262,325	11,204	28.48	319,098

US Dollars

ii. Sensitivity analysis

The 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 after tax from the years ended December 21, 2021 and 2020 by NT$2,623 thousand and NT$319 thousand. The analysis was performed on the same basis for both periods.

iii. Foreign exchange gains and loss on monetary item

The information on foreign exchange gain(loss) on monetary items is disclosed by the company in summary. For the December 31, 2021 and 2020, foreign exchange

losses (including realised and unrealised abortions) amounted to NT$11,381 thousand and NT$20,142 thousand.

(4) Interest rate risk

Please refer to the note on liquidity risk management for the interest rate exposure of the 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 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 company’s net income before tax world have decreased or increased by NT$38,120 thousand and NT$31,255 thousands for the years ended December 31, 2021 and 2020, respectively, with all other variable factors remaining constant. This is mainly due to the 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 Amount of comprehensive income or loss after tax Post-tax profit or loss $ 22,280 15,261	Year 2021 Amount of comprehensive income or loss after tax Post-tax profit or loss $ 22,280 15,261	Year 2020 Amount of comprehensive income or loss after tax Post-tax profit or loss 21,060 19,882 (21,060) (19,882)	Year 2020 Amount of comprehensive income or loss after tax Post-tax profit or loss 21,060 19,882 (21,060) (19,882)
Amount of comprehensive income or loss after tax $ 22,280		Amount of comprehensive income or loss after tax
		21,060
$ (22,280)	(15,261)	(21,060)	(19,882)

(6) Information on fair value

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 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:

Carrying amount Financial assets at fair value through profit or loss Financial asset at fair value through profit or loss mandatorily $ 305,229 Financial Assets at fair value through other comprehensive income		December 31, 2021	December 31, 2021	December 31, 2021	Total 305,229
			FairValue
		Level 1 305,229	Level 2 -	Level 3 -

445,593	- - 445,593	- - 445,593	- - 445,593	445,593
$ 750,822	305,229 - 445,593			750,822
	December 31, 2020			Total 401,766 421,194
		FairValue
	Level 1 401,766 -	Level 2 - -	Level 3 - 421,194

$ 822,960	401,766	-	421,194	822,960

ii. Valuation techniques and assumptions not used in fair value The 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 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 on-therun 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: When the financial instrument of

the company is not traded in an active market, its fair value is determined based on the ratio of the quoted market price of the comparative listed company, and the main assumption for the model basis of both the net equity value of the equity of the investee and the equity multiplier derived from the quoted market price of the comparative listed company. The estimated adjustments of the fair value are discounted for its lack of liquidity in the market.

iv. There is no transformation of any financial asset of the company at the year 2021 and 2020.
v. Reconciliation of level 3 fair values

January 1, 2021 Total profit or loss Listed under other comprehensive income December 31, 2021 January 1, 2020 Total profit or loss Listed under other comprehensive income December 31, 2020	Fair value through other comprehensive income Unquoted equityinstruments $ 421,194 24,399
	$ 445,593 $ 330,141 91,053 $ 421,194

Above stated total income or loss is recognised as “other income and loss” and “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 follow:

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 $ 24,399	Year 2020 91,053

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

Those categorized as level 3 in fair value measurement are 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:

					Inter-relationship
					between significant
					unobservable inputs
			Valuation	Significant	and fair value
	Items		Technique	unobservable inputs	measurement
Financial assets at			Comparable	‧Multiplier of market to	‧The estimated fair
fair value through			listed company	book ratio (0.67~4.14	value would
other comprehensive				and 0.80~2.13 on	increase(decrease)
income		– investment		December 31, 2021 and	if
in equity instrument				December 31, 2020	‧the multiplier were
				respectively)	higher (lower)

with no active ‧Discount for lack of ‧the market market marketability (25% and illiquidity discount 30% on December 31, were lower(higher) 2021 and December 31, 2020 respectively)

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:

comprehensive income:
December 31, 2021 Financial assets at fair value through other comprehensive income equity Investment without active market December 31, 2020 Financial assets at fair value through other comprehensive income Equity investment without active market	Input	Assumptions	Other comprehensive income Favorable Unfavorable $ 4,456 (4,456) 5,941 (5,941) 4,212 (4,212) 5,616 (5,616)
			Favorable
	Price-to-book multiple Liquidity discount Price-to-book multiple Liquidity discount	1% 1% 1% 1%	$ 4,456 5,941 4,212 5,616

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.

23. Financial Risk Management

(1) Overview

The 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 aforementioned risks the company is exposed to, 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 company’s risk management policies are established to identify and analyse the risk faced by the 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 company’s activities. The 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 company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company receivables from customers and investment securities.

i. Trade and other receivables

The company with the vast customers and not significantly concentrated to single customer and spread in distribution region, therefore there is no concern of significant concentrated in the credit risk of account receivable. To reduce the credit risk, the company regularly and continuously evaluating on the clients’ financial status and as in practice the 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 company’s finance department. Since those who transact with the company are banks and other external parties with food credit standing, there are no non-compliance issues, and therefore there is no significant credit risk.

iii. Guarantee

The policy of the company stated only provides financial Guarantee to the fully-owned subsidiaries, as until December 31, 2021 and 2020, the company did not provide any endorsement or guarantees to the other.

(4) Liquidity risk

The company aims to maintain the level of its cash and cash equivalents for the operating of the company and reduce the impact of rise and fall of cash flows. The management personnel of the company monitoring the use of short-term 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 company. The balance of the company’s short-term bank facilities is NT$912,000 thousand and NT$830,000 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 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.

i. Currency risk

The 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 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 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 company listed on exchange OTC and expose the risk in equity price. The equity investment is not for transaction and as strategic investment. The company 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 company is to maintain a strong capital base so as to maintain investors 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 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 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 2021 is consistent with 2020 and maintain the certain debt ratio in order for funding with the reasonable cost.

The Debt ratios of the Republic of China on December 31, 2021 and 2020 are as follows:

December 31, 2021 $ 4,064,818 130,547	December 31, 2021 $ 4,064,818 130,547	December 31, 2020 3,378,735 145,998
3,934,271 4,584,810		4,232,737 4,616,304
$ 8,519,081		7,849,041
	46.18%	41,.19%

vii.

Transactions with the related parties

Name and relationship with the related parties

Individual financial statement shows the transactions with related parties (subsidiaries of the company and other related parties transacts with the company) as follows:

Name of the related parties Yi Tong Fiber Co., Ltd. Kwang Ming Silk Mill Co., Ltd. Hung Chou Fiber Industry Co., Ltd Jin Xian Welfare and Charity Foundation	Relationship to the Company
	Subsidiaries of the Company Subsidiaries of the Company Subsidiaries of the Company Same chairman as the Company.

2. Major transactions with the related parties

(1) Operating revenue

The amount of major transactions with the related parties show as follows:

Subsidiaries Kwang Ming Silk Mill Co., Ltd. Hung Chou Fiber Industry Co., Ltd	Year 2021 $ - -	Year 2020 2,188 526
	$ -	2,714

The sales price to the related parties is set by the quotation of the price of the raw

material and is not significantly different from those sales to third parties. The term of credit for the sale of goods to related party and general non related parties is about 30 days for the monthly settlement of domestic sales, and the term of credit for non-related parties is about 30 days for the monthly settlement of domestic sales and 90-180 days for the export sales. Receivables between related parties do not involve collateral, and after evaluation, there is no need to make provision for bad debt expenses.

(2) Purchase

The amount of purchase from the related parties as follows:

Subsidiaries Kwang Ming Silk Mill Co., Ltd. Hung Chou Fiber Industry Co., Ltd	Year 2021	Year 2020 81,923 (932) 80,991
	$ 132,516 -
	$ 132,516

There is no difference in the purchase price of the above-mentioned companies and the third parties’ companies; the payment period is 30 to 60 days with no significantly difference from third parties’ companies.

(3) Account receivable with the related parties

The details of account receivable with the related parties as follows:

Listed account items	Related Party Categories	December 31, 2021 -	December 31, 2020 1,123
Other receivable	Subsidiaries－Hung Chou Fiber Industry Co., Ltd
		$ -	1,123

(4) Account payable with the related parties

The details of account payable with the related parties as follows:

Listed account items	Related Party Categories	December 31, 2021 8,253	December 31, 2020 18,365
Account payable	Subsidiaries－Kwang Ming Silk Mill Co., Ltd.
		$ 8,253	18,365

(5) Contract of leasing

The office of the company is leased from the related parties; the rental expense as follows:

Lessor Year 2021 Subsidiaries－Yi Tong Fiber Co., Ltd. Lessor Year 2020 Subsidiaries－Yi Tong Fiber Co., Ltd.	Subject matter for lease Period 7th Floor, No.607, Ruiguang Rd., Neihu Dist., Taipei City January 1, 2021 ~ December 31, 2021 $ Subject matter for lease Period 7th Floor, No.607, Ruiguang Rd., Neihu Dist., Taipei City January 1, 2020 ~ December 31, 2020 $	Monthly Rent before tax 150 Monthly Rent before tax 150		Rent expense Payment method 1,800 Monthly payment Rent expense Payment method 1,800 Monthly payment	Payment

(6) Others

i. The company donates NT$2,000 thousand and to NT$1,500 thousand Jin Xian Welfare and Charity Foundation on the year 2021 and 2020.
ii. In fiscal 2021, the Company acquired equity in Yi Tong Fiber Co., Ltd., a subsidiary under the equity method, from its subsidiary, Kwang Ming Silk Mill Co., Ltd for NT$13,078,000.

iii. The development project of the company and with its subsidiaries, please refer to Note 9 for description.
Transactions with key management personnel

Compensation to the key management personnel

Short-term employee benefits Pledged Assets as Collaterals The detail of book value of the pledged assets as follows: Assets Subject matter for pledge guarantee	Short-term employee benefits Pledged Assets as Collaterals The detail of book value of the pledged assets as follows: Assets Subject matter for pledge guarantee	Year 2021 $ 17,228
		December 31, 2020 3,893,097
Investment Property	Long-term and short-term loan

viii. Pledged Assets as Collaterals

The detail of book value of the pledged assets as follows:

ix. Commitments and contingencies

Significant unrecognized contractual commitments:
(1) The contract signed for purchase of property were NT$462,803 thousand and NT$1,419,348 thousand and paid according to the contract (listed under other current liabilities) were NT$92,570 thousand and NT$285,415 thousand on the date of December 31, 2021 and December 31, 2020, respectively.
(2) The board of directors of the company approved the joint land development with Farglory Land Development Co., Ltd. on the date of January 29, 2019. The expected ratio of allocating housing will be 64.00%, and will be used in operating headquarters and for rent and trading to increase in rental income and capital. The deposit received for joint development were NT$30,000,000 and NT$45,000,000 on the date of December 31, 2021 and December 31, 2020.
Contingent liabilities

The promissory note issued by the company for the purpose of purchasing raw materials and loan funding on December 31, 2021 and 2020 were NT$301,111,000 , respectively.

x. Loss due to major disasters: None

xi. Major Subsequent Events: None

xii. Other

Employees’ benefit, depreciation, damage and amortised expense are compiled as follows:

Character Classification		Year 2021	Year 2021		Year 2020	Year 2020	Year 2020
	Belongs to operating cost	Belongs to operating expense	Total	Belongs to operating cost	Belongs to operating expense	Discontin ued operations	Total
Employee benefits expenses
Salaries expenses	-	14,730	14,730	-	19,969	5,441	25,410
Labor and Health care expenses	-	1,722	1,722	-	1,795	253	2,048
Pension expenses	-	825	825	-	879	135	1,014
Directors’ remuneration	-	9,656	9,656	-	15,805	-	15,805
Other employee benefits expense	-	1,012	1,012	-	1,094	154	1,248

Depreciation expense	26,877	1,160	28,037	14,988	546	480	16,014
Amortizations	-	-	-	-	-	944	944

The additional information of number of employees and the expense of employees’ benefit on 2021 and 2020 as follows:

Number of employees Number of directors who do not serve concurrently as an employee or officer Average expense of employee benefits Average expense of employee salary Adjusted Average expense of employee salary Remuneration to supervisors	Year 2021 26	Year 2020 36
	6	6
	$ 914	991
	$ 737	847
	(12.99)%	-
	$ -

The information of the salaries and compensation policy as follows:

Due to the huge quantity of our employees with different nature of work, the compensation system is set, added to the basic salary, in order to manage and calculate.

Duty allowance: Duty allowance is given monthly according to the duty and the rank of the employee.

All sorts of allowance: Allowance and bonus is given monthly according to the content of the duty.

Performance bonuses: Bonus is given with different performance.

Overtime pay: The company pays and calculates the overtime pay according to the Article 24 of Labour Standard Acts.

Board expenses: The board expenses are given by the company with NT$2,400 per month per person.

xiii. Additional disclosure

Information on major transactions

The company shall disclose other major transactions of 2021 according to the “Regulations Governing the Preparation of Financial Reports by Securities Issue” as follows:

(1) Loan funding to others: None
(2) Endorsement or guarantees to others: None
(3) Securities hold at the end of the period (excluding investing in subsidiaries, affiliated 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
				Number of shares	Book Value	Holding Percentage	Market Value
Yi Jinn Industrial Corp., Limited.	Shares of Cheng Shin Rubber Industry Co.,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 HoldingCo.,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
"	Shares of Nice Plaza Co., Ltd.	The company as the legal entitydirector	"	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 financial assets – 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 Yi Shin 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 industrial Co.,Ltd.	"	"	25,400	393	0.58 %	393
"	Shares of IJinn IndustrialCo.,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 financialassets-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) The cumulative amount of purchases or sales of the same securities reaches NT$300 million or 20% of the paid-in capital:

Unit: NT$1,000

											Unit:	Unit:	NT$1,000	NT$1,000
Buy/Sell of Company	Type & Name of Marketable Securities	Accounts Category	Trading counterparty	Relationship	Beginning of period		Buy			Sell			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 n Mill Co., Ltd
			-	-	401,000	33,965	550,000	43,450 (Note)	951,000	81,370	77,415	3,956	-	-
"	Stock-Formos	"
	a Chemicals and Fibre

	Corporation


"			1,100,000	47,520	1,000,000	46,074 (Note)	2,100,000	103,909	93,594	10,115	-	-
	Stock-Taiwan	"
	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 Taipei City	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 TaipeiCity	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 Taipei City	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, Hsinchu County	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)%

(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

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 inves	ting 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)	"	"

Information on investment in Mainland China: N/A
Information on major shareholders:

Shares Name of main shareholders	Amount of Shareholding	Ratio of Shareholding
Yi Tong Fiber Co., Ltd.	57,954,410	19.21%
CHANG, 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

Please refer to the 2021 Consolidated Financial Statement.

AI assistant

YI JINN — Audit Report / Information 2021

51818_rns_2021-11-12_5bf40df9-6600-43af-9ae8-a0d9a2e9f225.pdf

Year 2021 and 2020

Table of Content

Independent Auditors’ Report

Opinion

Basis for opinion

Key Audit Matters

1. Revenue recognition

Responsibilities of Management and those Charged with Governance for the Parent Company Only Financial Statements

Auditor’s Responsibilities for the Audit of the parent company only financial statements

KPMG

Yi Jinn Industrial Co., Ltd.

Parent Company Only Balance Sheet

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd.

Parent Company Only Balance Sheet

December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd.

Statement of comprehensive income For the years ended December 31, 2021 and 2020

Yi Jinn Industrial Co., Ltd. Statement of changes in equity For the years ended December 31, 2021 and 2020

Yi Jinn Industrial Co., Ltd. Statements of cash flows For the years ended December 31, 2021 and 2020

In Thousands of New Taiwan Dollars

Yi Jinn Industrial Co., Ltd.

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 Parent Company Only Financial Statements For the years ended December 31, 2021 and 2020 (Amount in Thousands of New Taiwan Dollars, unless specified otherwise)

i. Company history

iii. Newly issued or revised standards and interpretations

iv. Summary of significant accounting policies

6. Financial Instruments

(1) Financial Assets

(2) Financial Liability and equity instrument

7. Inventories

9. Investing subsidiaries

11. Property, plant and equipment

(2) Subsequent expenditure

(3) Depreciation

12. Leasing

13. Impairment of non-financial assets

v.

Critical accounting judgments and key sources of estimation and uncertainty

Recognition of deferred income tax assets

Valuation procedure

Transfer within levels

Further information on the assumption used in fair value

vi. Contents of significant accounts

receivable is as follows:

7. Assets or discontinued operations held for sale

(1) Discontinued operations:

(2) Assets held for sale:

8. Investment under equity method

(2) Endorsement

9. Property, plant and equipment

10. Investment Property

14. Operating leasing

2. Deferred tax assets

i. Unlisted deferred tax assets

16. Capital and other equity

(1) Capital Surplus

(2) Retained earnings

iii. Earning distribution

(3) Treasury stock

(4) Other equity (net value after tax)

17. Earnings per share

18. Revenue from Contracts with Customers (1) Disaggregation of revenue

(2) Balance of the contracts

19. Employees’ compensation and directors’ remuneration

21. Non-operating income and expense

(2) Other gains and losses

(3) Financial cost

22. Financial Instruments

(1) Credit risk

iii. Credit risk of account receivable

(2) Liquidity risk

(3) Currency risk

YI JINN Audit Report / Information 2021