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YL Annual Report 2021

Jul 29, 2021

51978_rns_2021-07-29_7552c162-9eee-4033-809d-cc626ae53465.pdf

Annual Report

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YULON
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Stock Code: 2201
Annual Report 2020
Printed on April 30, 2021
SEC:mops.twse.com.tw
official Website:www.yulon-motor.com.tw
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Environmental Social

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Governance

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  • I. Name, title, and phone of the spokesperson:

Name: Wen-Yi Lo

Title: Assistant Vice President

Tel.: 886-37-871801 Ext. 2901

E-mail: [email protected]

Deputy Spokesperson: Xun-Gui Xie

Title: Manager Tel.: 886-37-871801 Ext. 2901

E-mail: [email protected]

  • II. Headquarters and plant address:

No. 39-1, Bogongkeng, Xihu Village, Sanyi Township, Miaoli County, Taiwan Tel.: 886-37-871801

Official Website: http//www.yulon-motor.com.tw

  • III. Name, address, and phone of the stock transfer agency:

Name: Yulon Motor Co., Ltd. Stock Affairs Office

Address: 7F, No. 150, Sec. 2, Nanjing E. Rd., Zhongshan Dist., Taipei City 10489, Taiwan (Hualian Building)

Tel.: 886-2-2515-6421~5

Official Website: http//www.yulon-motor.com.tw

  • IV. Name, Firm, address, and phone of the acting independent auditors:

Auditors: Guo Li-Wen and Yu-Wei Fan

CPA Firm: Deloitte & Touche

Address: 20F, No. 100, Songren Rd., Xinyi Dist., Taipei City 11073, Taiwan Tel.: 886-2-2545-9988

Website: http//www.deloitte.com.tw

  • V. Overseas securities exchange corporation listing: None

  • VI. Corporate Website: http://www.yulon-motor.com.tw/

Notice to readers

This English version annual report is a summary translation of the Chinese version and is not an official document of the shareholders’ meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail.

CONTENTS

I. Letter to Shareholders ................................................................................................................................. 1 II. Company Introduction 2.1 Company Brief Introduction ............................................................................................................ 2 2.1.1 Establishing Date ............................................................................................................... 2 2.1.2 Highlights of Development ................................................................................................ 2 2.1.3 Achievement in 2020 ......................................................................................................... 4 2.1.4 Others ................................................................................................................................. 4 III. Corporate Governance Report 3.1 Organization chart ............................................................................................................................ 5 3.1.1 Organization chart .............................................................................................................. 5 3.1.2 Primary Functions of Departments .................................................................................... 5 3.2 Directors, Supervisors, President, Senior Vice President, Vice President, and the respective departments and branch officers ..................................................................................... 6 3.2.1 Directors and Supervisors’ Information ............................................................................. 6 3.2.2 Major shareholders of institutional shareholders ............................................................... 12 3.2.3 Major shareholder of major institutional shareholders ...................................................... 12 3.2.4 Expertise and independence of directors and supervisors .................................................. 15 3.2.5 Information on President, Senior Vice President, Vice President, and each department head ................................................................................................................. 16 3.2.6 Compensation paid to Directors, Supervisors, President, and Senior Vice President for the Year 2020. .............................................................................................. 20 3.2.7 Analysis and explanation of the total compensations paid to directors, supervisors, President, and Senior Vice President/Net income ratio (%) for the last two years ..................................................................................................................... 24 3.3 Operation of Corporate Governance ................................................................................................ 26 3.3.1 Information of the Board function ..................................................................................... 26 3.3.2 Function of Audit Committee ............................................................................................ 29 3.3.3 The operation of corporate governance and its differing from the Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies, and the reasons ......................................................................................................................... 32 3.3.4 The Company that has set up a Compensation Committee shall disclose its composition, responsibilities, and operation ...................................................................... 39 3.3.5 Performance of social responsibilities ............................................................................... 41 3.3.6 Company’s ethical corporate management and adopted measures .................................... 53 3.3.7 Corporate governance best-practice principles and related bylaws adopted by The Company and the inquiry methods ............................................................................. 55 3.3.8 Any other material information that would afford a better understanding of the status of The Company’s implementation of corporate governance may also be disclosed ............................................................................................................................ 55 3.3.9 Internal Control System Execution Status ......................................................................... 56 3.3.10 Company or employees been penalized by law or employees received penalties from company for violating the Internal Control regulations in fiscal year 2020 and as of the publication date of the annual report, major nonconformities, and

status of improvements ...................................................................................................... 56 3.3.11 Major resolutions reached in the Shareholders’ Meeting and Board Meeting in fiscal year 2020 and as of the publication date of the annual report .................................. 57 3.3.12 The objections of the directors or supervisors against the major resolutions reached in the Board meeting recorded or documented in writing in fiscal year 2020 and as of the publication date of the annual report.................................................... 59 3.3.13 Table of resignation and dismissal of the Chairman, President, Accounting Officer, Finance Officer, Internal Chief Auditor, and R&D Director in fiscal year 2020 and as of the publication date of the annual report ............................................ 59 3.3.14 Other disclosures ................................................................................................................ 59 3.4 Information on auditing fees ............................................................................................................ 60 3.4.1 When the non-auditing fee paid to the independent auditors, the CPA firm, and the affiliated companies is over one fourths of the auditing fee, shall disclose the amount of auditing and non-audit fee and the content of non-auditing services .............................................................................................................................. 60 3.4.2 The auditing fee paid in the year of changing to another CPA firm is less than the auditing fee paid in the prior year, shall state the amount of reduction, ratio, and reasons...... ................................................................................................................... 60 3.4.3 When the auditing fee is decreased by over 15% from the prior year, shall state the amount of auditing fee reduced, ratio, and reasons ...................................................... 60 3.5 Information on change of CPA ........................................................................................................ 61 3.6 When The Company’s Chairman, President, or Financial/Accounting Manager employed by the underlying CPA firm or its affiliates within the year, shall disclose the name, the position, and working period in the underlying CPA firm or its affiliates ...................... 61 3.7 Equity transfer and equity change of the directors, supervisors, managers, and shareholders with over 10% shareholding in fiscal year 2019 and as of the publicationdate of the annual report ................................................................................................. 62 3.7.1 Changes in shareholding of the Directors, Supervisors, Managers, and Major Shareholders....................................................................................................................... 62 3.7.2 Equity Transferred Information ......................................................................................... 62 3.7.3 Shares Pledged Information ............................................................................................... 63 3.8 Information on the top-10 shareholders who are affiliates or related as spouse or second cousins ............................................................................................................................................. 63 3.9 The shareholding of The Company and The Company’s Directors, Supervisors, Managers, and the enterprises directly or indirectly controlled by The Company in the same invested company, and the consolidated shareholding ratio ................................................... 64 IV. Status of Fund Raising

4.1 Capital and Shares ............................................................................................................................ 65 4.1.1 Source of stock capital ....................................................................................................... 65 4.1.2 Structure of Shareholders ................................................................................................... 66 4.1.3 Status of Ownership Dispersion ......................................................................................... 66 4.1.4 List of Major Shareholders ................................................................................................ 67 4.1.5 Data on Market Price, Net Value, Earnings, and Dividend Per Share within the last two years ..................................................................................................................... 67 4.1.6 Dividend Policy and Execution Status ............................................................................... 68 4.1.7 The effect of the distribution of stock dividend as proposed in this Shareholders’ Meeting on operation performance and earning per share .......................... 68

4.1.8 Employee Bonus and Remuneration to the Directors and Supervisors. ............................. 68 4.1.9 Situations of The Company’s buy back treasury stocks .................................................... 69 4.2 Corporate Bonds issued ................................................................................................................... 69 4.3 Preferred stock issued ...................................................................................................................... 69 4.4 Disclosure relating to depository receipts ........................................................................................ 69 4.5 Status of employee stock certificates ............................................................................................... 69 4.6 The new shares from restricted employee stock option ................................................................. 69 4.7 Disclosure on new shares issued in exchange of other company shares .......................................... 70 4.8 Progress on the use of funds ............................................................................................................ 70 V. Hightlights of Operations 5.1 Business Content .............................................................................................................................. 71 5.1.1 Business Scope .................................................................................................................. 71 5.1.2 Industry Summary .............................................................................................................. 71 5.1.3 Technology and Research & Development ........................................................................ 73 5.1.4 Long-term and short-term business development plan ...................................................... 73 5.2 Market, Production, and Sales Review ............................................................................................ 75 5.2.1 Market Analysis ................................................................................................................. 75 5.2.2 Main Applications of Major Products and Their Manufacturing Processes ...................... 77 5.2.3 The Supply of Major Materials .......................................................................................... 77 5.2.4 The name, purchase (sale) amount, and ratio of the customers accounted for over 10% of the total purchase (sale) in one of the last two years, and the reason for the changes in purchase (sales) ......................................................................... 78 5.2.5 Production Volume and Value of Recent Two Years ........................................................ 78 5.2.6 Sales Volume and Value of Recent Two Fiscal Years ....................................................... 79 5.3 Employees ........................................................................................................................................ 79 5.4 Expenditures on Environment Pollution Control ............................................................................. 80 5.4.1 The amount of penalty/fine imposed due to environmental pollution for the recent two years and as of the publication date of the annual report ................................. 80 5.4.2 The countermeasures and the potential expense ................................................................ 80 5.4.3 Effects of improvement performed .................................................................................... 80 5.4.4 Whether The Company develops energy-saving and carbon reduction, greenhouse gas emissions reduction, water usage reduction, or other waste policy ................................................................................................................................. 81 5.5 Labor-Employer Relation ................................................................................................................ 81 5.5.1 Current Prominent Labor-Employer Agreement, employee benefits, and the Implementation .................................................................................................................. 81 5.5.2 Labor/employer dispute ..................................................................................................... 85 5.5.3 Employee communication channels ................................................................................... 85 5.5.4 Work environment and employees’ personal security protection measures ...................... 85 5.6 Prominent Contracts ......................................................................................................................... 86 VI. Financial Information 6.1 Condensed Financial Statements for the recent 5 fiscal years ....................................................... 87 6.1.1 Condensed Balance Sheet and Income Statement .............................................................. 87

6.1.2 The name and opinion of the independent auditors ........................................................... 90 6.2 Financial Analysis for the recent 5 Fiscal Years .............................................................................. 91 6.3 Audit Committe’s Report ................................................................................................................. 94 6.4 Recent annual financial statements .................................................................................................. 100 6.5 The audited consolidated financial statements of the parent company and subsidiaries in recent year ........................................................................................................................................ 107 6.6 Financial difficulties encountered by The Company and/or its affiliates in the recent year and as of the publication date of the annual report ................................................................... 355 VII. Review and Analysis of Financial Conditions and Performance and Risk Management 7.1 Financial Conditions ........................................................................................................................ 356 7.2 Analysis of Financial Performance .................................................................................................. 357 7.3 Cash Flow Analysis ......................................................................................................................... 359 7.3.1 Liquidity Analysis over the Recent 2 year ......................................................................... 359 7.3.2 Cash Liquidity Analysis within the year ............................................................................ 359 7.4 The impact of material capital expenditure in 2019 on finance and business .................................. 360 7.4.1 The use of significant capital expenditures and the source of funds .................................. 360 7.4.2 Expected Benefits .............................................................................................................. 360 7.5 Reinvestment Policy in Fiscal Year 2020, Major Reasons for Profit and Loss, Its Improvement Plan, and Next Year’s Investment Plan ..................................................................... 361 7.6 Risk Management and Evaluation ................................................................................................... 362 7.6.1 Organizational structure of risk management .................................................................... 362 7.6.2 The impact of interest rate, foreign exchange rate, and inflation on The Company’s profit/loss in fiscal year 2020 and as of the publication date of the annual report, and future responsive measures .................................................................. 362 7.6.3 High risks, high leverage investments, loaning of funds, endorsement and guarantee, and derivatives trade policy in fiscal year 2020 and as of the publication date of the annual report, major reasons for profit/loss, and future responsive measures........................................................................................................... 363 7.6.4 Future and projected research and development plans, status of research and development plans in progress, additional research and development expenses required, estimated date to start mass production, and major factors influencing the success of future research and development plans ....................................................... 363 7.6.5 The impact of material changes of local and foreign government policies and regulations in fiscal year 2020 and as of the publication date of the annual report on The Company’s finance and business, and the responsive measures ................. 363 7.6.6 The impact of technology changes and industrial changes in 2020 on The Company’s finance and business, and the responsive measures ........................................ 363 7.6.7 The impact of corporate image change in 2020 and as of the publication date of the annual report on the corporate crisis management, and the responsive measures ............................................................................................................................ 364 7.6.8 The expected benefits and possible risks of merge & acquisition in fiscal year 2020 and as of the publication date of the annual report.................................................... 364 7.6.9 The expected benefits and possible risks of factory expansion in fiscal year 2020 and as of the publication date of the annual report.................................................... 364 7.6.10 Risks of Sales and Purchases Centralization in fiscal year 2020 and as of the publication date of the annual report .................................................................................. 364

7.6.11 The impact and risk of significant equity transfer and conversion of the Directors, Supervisors, or major shareholders with over 10% shareholding on The Company in fiscal year 2020 and as of the publication date of the annual report .................................................................................................................................. 364 7.6.12 The impact and risks of changes in operation right in fiscal year 2020 and as of the publication date of the annual report ............................................................................ 364 7.6.13 Litigation and non-litigation events in fiscal year 2020 and as of the publication date of the annual report .................................................................................................... 364 7.6.14 Other material risks ............................................................................................................ 365 7.7 Other Important matters ................................................................................................................... 365

VIII. Specially Noted Matters 8.1 Affiliates information ....................................................................................................................... 366 8.1.1 Affiliates Consolidated Business Report ........................................................................... 366 8.1.2 Affiliates Consolidated Financial Statements .................................................................... 407 8.1.3 Relationship Report ........................................................................................................... 407 8.2 The Status of Issuing Private Placement Securities in Fiscal Year 2020 and as of the publication date of the annual report ................................................................................................ 407 8.3 Acquisition or Disposal of Yulon Shares by Subsidiaries in Fiscal Year 2020 and as of the publication date of the annual report .......................................................................................... 407 8.4 Other necessary supplementary notes .............................................................................................. 407 8.5 The occurrence of any events as stated in Section 3 Paragraph 2 in Article 36 of the Securities Exchange Act that had significant impacts on shareholders’ equity or securities prices in fiscal year 2019 and as of the publication date of the annual report .................. 407

YULON MOTOR CO., LTD

Annual Report 2020

I. Letter to Shareholders

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Dear Shareholders,

Thank you very much for your love and support for Yulon Motor in the past year. Here is a summary on the Company’s 2020 business outcomes and the 2021 business plan.

➣ The 2020 business outcomes

Despite the automotive market decline last year (2020) due to the COVID-19 pandemic, Taiwan’s automotive market achieved successful pandemic prevention, with a slight 4% increase in total sales and reaching 457,400 vehicles. However, with the market share of imported cars reaching nearly 50%, the total number of customs-cleared vehicles was 40,258 vehicles (including Nissan and Luxgen brands), a 6.52% decrease; the operating income totaled NTD28.272 billion, a 6.58% decrease.

In terms of profitability, the operating profit last year (2020) amounted to NTD1.013 billion, a 3.32% decease. The net profit after tax amounted to NTD2.739 billion, and the earnings per share after tax was NTD2.8, a substantive increase by 111.20% and 116.86% respectively. This shows that under the main strategy of the company’s pragmatic transformation on the one hand, the business constitution can be improved through financial structure adjustment. On the other, initial results have been seen in terms of the company’s commitment to enhancing operating efficiency, cutting down costs and reducing losses.

We have always insisted on launching new vehicle models suited to customers’ needs. In October last year (2020), the Nissan brand launched the new local Sentra model. It has a sharp front styling and a streamlined body and is equipped with Nissan Intelligent Mobility smart technology. In November, the imported British-style trendy SUV New Juke was introduced. The interior design fully demonstrates personal taste and style. The Luxgen brand launched the URX 7-seater LOHAS model in November 2020. With the complete and spacious 7-seater space, flexible seat design, and thoughtful well-being features, it is a medium to large SUV for the whole family (of all ages).

While the company is actively enhancing its business performance, it also attaches great importance to corporate governance. According to the Corporate Governance Evaluation result released by the Taiwan Stock Exchange, the company has for seven consecutive years ranked in the top 5% of TAIEX listed companies. Looking ahead, the company will continue to strengthen corporate governance while extending the scope to take more active measures in ESG (environmental sustainability, social responsibility, corporate governance).

➣ Business plans for 2021 and beyond

The company will continue to optimize automotive integration and smart manufacturing undertakings, thereby creating smart manufacturing value. The first and foremost task is to integrate existing new energy vehicle R&D and production technology, cultivate green energy businesses, and focus on the development of new energy vehicles. At the same time, the renewable energy use ratio of the plant will also be enhanced, thus further achieving carbon neutralization.

At the end of last year (2020), the company’s first batch of energy storage products were was exported to the United States. It is expected that with the USD2.3 trillion infrastructure plan of the United States, the green energy industry will achieve considerable growth, which will, in turn, boost the year-on-year increase of the Company’s energy storage products exported to the United States. Secondly, in terms of the setup of clean energy power generation systems, the company’s Sanyi plant has cumulatively constructed a solar power generation volume of 5.2MW, which is expected to reach 20.2MW within the next five years. The ultimate goal is to achieve 100% solar power for power consumption.

As for the development progress of Yulon Town in Xindian, the Company has signed contracts with Eslite Bookstore, Vieshow Cinemas, and other partners. Yulon Town is expected to officially open by the end of next year (2022). The Yulon Town Mall will combine business, technology, living, humanities, and other elements to provide leisure and entertainment, cuisine and shopping, cultural creativity and humanities, and the group’s automotive value chain service momentum. Highquality and convenient living will be provided for the core living circle in Southern District, Taipei City.

Lastly, the automotive industry in the face of a major transformation that happens once a century is moving towards electrification, intelligentization, networking, and sharing developments. The Company endeavors to combine external cooperation resources and carry out resource allocation and business layout in conjunction with the new trend. From the pragmatic transformation phase to the new step of transformation and upgrade, we look forward to the continuous support of our shareholders, customers, suppliers, and partners. Best wishes to all shareholders and the families, for good health and a prosperous year!

Chairman Yen Chen Li-Lien

Annual Report 2020 1

Company Profile

II. Company Profile

I. Company Profile

  • (I) Date of incorporation:

September 10, 1953

  • (II) Company history: Sep. 1953: The company was founded by Mr. Yen Ching-Ling under the name of “Yulon Machinery Manufacturing Co., Ltd.” The capital amount was NT$2 million.
Sep. 1953: The company was founded by Mr. Yen Ching-Ling under the name of “Yulon Machinery
Manufacturing Co., Ltd.” The capital amount was NT$2 million.
Oct. 1956: The first jeep was successfully built and publicly exhibited at the Double Ten Festival.
Apr. 1957: Held a long-distance road test for self-made jeep from Taipei to Kaohsiung, and transported the
vehicle to Bangkok for the International Commodity Exhibition.
Dec. 1957: Signed a technical cooperation agreement with Nissan Motor Co.
Mar. 1959: Officially produced YLN-101 five-ton gasoline truck chassis.
Mar. 1960: Launched YLN-701 1200C.C blue bird small sedan, pioneering the production of small cars in
Taiwan.
Sep. 1960: Officially changed name to “YULON MOTOR CO.,LTD”
Apr. 1962: Signed a technical cooperation contract with Innocenti (Italy) to produce Lambda two-wheeled
motorcycles.
Oct. 1964: The expansion plan of 20,000 vehicles per year was drafted.
Dec. 1968: Semi-automatic operation equipment for casting plant completed.
Mar. 1970: The first set of large-scale electroplating equipment and integrated production line in Taiwan
was completed and put into operation.
Dec. 1972: The Company's cumulative production exceeded 50,000 vehicles.
Mar. 1973: Xindian stamping plant was completed with construction and opened.
Nov. 1973: Xindian plant’s office building expansion started.
Aug. 1976: The Company's shares were officially listed on the centralized market of the stock exchange.
Jul. 1977: The preparatory office for the construction of the Sanyi plant was established, and the
construction of the plant was started.
May 1981: The first phase construction of the Sanyi plant was completed and production began.
Aug. 1981: Established an engineering center in Guishan Industrial Zone, Taoyuan, dedicated to automobile
design and development.
May 1983: Sulley sedan was exported to the Middle East and the Caribbean, pioneering the export of
domestic sedans.
May 1986: Established the “Wu Shun-Wen’s News Scholarship Foundation”.
Oct. 1986: The first Taiwanese designed and developed car, the Feeling 101, was launched.
Dec. 1990: Our NEW SENTRA sedan was launched.
Dec. 1991: Our cumulative production volume exceeded one million units.
Sep. 1992: Yulon Motor completely updated its Corporate Identity System (CIS).
Sep. 1992： The Company’s self-developed “Arex“ new car was launched.
Jun. 1993: Our March was officially launched.
Jul. 1994: Our entire vehicle lineup was marketed under the NISSAN brand.
Nov. 1995: Implemented plant and office consolidation
Feb.1996: Our CEFIRO sedan was officially launched.
Nov. 1996: The Company obtained ISO 9002 international quality assurance certification.
Oct. 1997: The Company’s VERITA was officially launched.
Oct. 1997: The first Wood Carving Golden Quality Award was held.
Oct. 1998: Awarded the “National Quality Award“, the highest honor for quality in the Republic of China,
by the Executive Yuan.
Nov. 1998: The Engineering Center was officially upgraded to Yulon Asia Technology Center (YATC).
Mar. 1999: The Company obtained the international standard ISO 14001 environmental management
system certification.
Oct 1999: Invested in Philippine Plant (NMPI) to enter Southeast Asia market.
Nov. 1999: The Company obtained ISO 9001 certification.
Nov. 1999: Launched the commercial vehicle “Cabstar“, setting a new benchmark for commercial vehicles.
Dec. 1999: Won the 2nd National Public Service Award.
May 2000: Signed a joint venture contract with Dongfeng Motor in Mainland China to enter the Mainland
market.
Jun. 2000: Launch of SENTRA 180, our new e-smart saloon.
Nov. 2000: Acquired the dealership of Renault France in Taiwan.

2 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Sep. 2001: Launch of QRV, our first recreational vehicle.
Nov. 2002: Awarded the 11th “R.O.C. Corporate Environmental Protection Award“ by the Environmental
Protection Administration, Executive Yuan.
Dec. 2002: Launched X-TRAIL, the first Sports RV of the Company.
Aug. 2003: Yulon Motor exclusively sponsored the production of the Linwang specimen.
Oct. 2003: Yulon split into two companies, Yulon Motor and Yulon Nissan.
Dec. 2003: Groundbreaking ceremony of “Travel the World Auto Mall“ was held.
Jan. 2005: Yulon and General Motors officially signed a joint venture agreement.
May 2005: Grand opening of Travel the World Auto Mall, combining the Dome Plaza and the Dome
Theatre to provide the public with a rich city life.
Jul. 2005: “Yulon General Motors Co., Ltd.” was established as a joint venture with General Motors to sell
new cars and service parts under the BUICK, CADILLAC and OPEL brands.
Oct. 2005: The pressing workshop of Sanyi plant obtained ISO TS/16949 certification.
Dec. 2005: Received the first “R.O.C. Green Accounting Award“ from the Department of Commerce,
Ministry of Economic Affairs.
Dec. 2005: Participated in the investment and establishment of Hua-Chuang Automobile Information
Technical Center Co., Ltd. for research and development of innovative automobile electronic
modules.
Aug. 2006: Renault Modus 1.6 new car launched.
Nov. 2006: Megane 1.6/2.0 five-door facelift launched.
Oct. 2007: NISSAN LIVINA 1.8/1.6 new car launched.
Nov. 2007: NISSAN CABSTAR was officially launched.
Nov. 2007: Opening ceremony of Yulon Nissan Design Center.
Feb. 2008: Sold 8,347 m2of Xindian plant to HTC for maximizing and realizing land development benefits.
Mar. 2008: OPEL ASTRA Sri new car launched.
May 2008: Established Luxgen Motor Co., Ltd. to develop own brand.
Jun. 2008: Renault MEGANE dci series launched.
Sep. 2008: 2008 Yulon Motor Sustainability Report published.
Nov. 2008: Renault GRAND SCENIC diesel RV was launched.
Aug. 2009: Luxgen Motor Co., Ltd. unveiled the first LUXGEN 7 MPV, a 7-seater RV.
Sep. 2009: Established Yulon TOBE Motor Co., Ltd. to market own brand of cars - TOBE.
Dec. 2009: Yulon TOBE Motor Co., Ltd. released the first TOBE M'car, which was exported to Vietnam
and other places.
Apr. 2010: LUXGEN 7 MPV won the 18th “Taiwan Excellence Golden Quality Award“ and “Taiwan
Excellence Popularity King“.
May 2010: Luxgen Motor Co., Ltd. announced the LUXGEN 7 SUV, a luxury Sports RV.
Jul. 2010: Luxgen EV electric vehicle was officially registered.
Oct. 2010: Luxgen Motor Co., Ltd. unveiled the LUXGEN 7 CEO model.
Jan. 2011: Yulon TOBE Motor Co., Ltd. released the 2011 m'car 1.5L.
Apr. 2011: LUXGEN 7 MPV won the 19th “Taiwan Excellence Gold Quality Award“ and “Taiwan
Excellence Popularity King“.
May 2011: LUXGEN 7 SUV EV+ won the “2011 Green Car of the Year“ award from the Environmental
Protection Administration.
July 2011: LUXGEN 7 SUV, the first model of DengfengYulon Motor Co.Ltd officially rolled off the
assembly line
Sep. 2011: Yulon TOBE Motor Co., Ltd. released tobe W’car 1.5L.
Oct. 2011: NISSAN NEW MARCH was launched.
Nov. 2011: Luxgen Motor Co., Ltd. was awarded “2011 Taiwan Innovative Enterprise“ by the Ministry of
Economic Affairs.
May 2012: TOBE's first four-door sedan, the M'way 1.8L, was launched.
Jul. 2012: TOBE's first five-door hatchback, the Q'way 1.8L, was launched.
Aug. 2012: Launched LUXGEN 5 Sedan, the first sedan.
Aug. 2012: Luxgen won the 20th “Taiwan Excellence Award“ with LUXGEN CEO EV+.
Dec. 2012: NISSAN BIG TIIDA was launched.
Jun. 2013: NISSAN JUKE was imported from UK with original packaging and launched.
Oct. 2013: NISSAN SUPER SENTRA, the most powerful mid-size car ever built, was launched.
Nov. 2013: LUXGEN U6 TURBO was launched.
Mar. 2014: NISSAN ALL NEW LIVINA energy-saving RV small player made its debut.
Sep. 2014: The Company was awarded three stars by the Taipei City Government as the “4th Edition of
Happy Enterprise“.
May 2015: NISSAN “Super Play Beauty“ X-TRAIL made its debut.

Annual Report 2020 3

Company Profile

  • Jun. 2015: The Company was ranked among the top 5% in the first edition of corporate governance rating. Jun. 2015: The Company announced its initiative to subscribe 1.89 million kWh of green power, becoming the first domestic automobile company to subscribe to green power.

  • Sep. 2015: NISSAN JUKE 2016 made its debut. May 2016: LUXGEN V7 TURBO ECO HYPER high-top welfare car made its debut. May 2016: LUXGEN S3 CROSS SEDAN was launched. Sep. 2016: The Company was awarded the Work-Life Balance Award by the Ministry of Labor, the only company in the domestic automobile industry to receive double recognition.

  • Sep. 2016: NISSAN MURANO HYBRID made its debut. Aug. 2017: LUXGEN's 100,000th new vehicle, the U5 SUV, rolled off the assembly line (supported by 10 years mileage and 100,000 car owners).

  • Sep. 2017: LUXGEN U5 SUV was officially launched (the first in the world to be equipped with a vehicle AR imaging system).

  • Nov. 2017: LUXGEN U6 GT/GT220 facelift was launched. Nov. 2018: NISSAN's global strategic car model KICKS was launched. Dec. 2018: Included as a constituent of the FTSE4Good Taiwan Sustainability Index. Sep. 2019: Awarded No. 11 in the Large Enterprise Category of the CommonWealth’s Corporate Citizenship Awards.

  • Sep. 2019: Value chain transformation, fully opened up to diversified customers, announced the OEM assembly of ADIVA three-wheeled heavy motorcycle for export to Europe, Japan and Southeast Asia.

Sep. 2019: Credit rating result: Business development plan changed to conservative and prudent, long-term “twA-“, short-term “twA-2“, outlook “stable“. Oct. 2019: Announced the export of Muse electric logistics vehicles to France, actively expanding the opportunities to serve diversified customers at home and abroad. Oct. 2019: Luxgen's new 5+2 SUV URX was officially launched.

  • (III) 2020 operating results

  • Mar. 2020: Yulon and Hon Hai signed a joint venture agreement to establish a company to jointly promote the transformation and upgrading of Taiwan's industries.

  • Mar. 2020: LUXGEN URX 7-seater ARD Smart-Go model launched. Jun. 2020: Yulon Motor among the “Corporate Governance Review - Top 5%“ for six times. Jul. 2020: LUXGEN URX 5+1 LOHAS model launched. Aug. 2020: LUXGEN URX 5+1 LOHAS model, the first “Quick Lock“ wheelchair fastening device, won the 2020 iF design award.

  • Nov. 2020: NISSAN ALL NEW SENTRA was launched.

  • (IV) Other matters:

  • (1) In order to support the operating capital for business expansion, Luxgen Motor Co., Ltd. first reduced capital by NT$50 million and then increased capital by NT$6,000 million. After the capital increase, the paid-in capital was NT$6,050 million and the Company's shareholding remains 100% after the capital increase and decrease.

  • (2) In order to improve the financial structure and for business development, the Company increased capital by $7,474 million in Hua-Chuang Automobile Information Technical Center Co., Ltd., consisting of $5,624 million in cash and $1,850 million in real estate as the consideration, and its capital was $12,701 million after the capital increase.

  • (3) For the purpose of operational development, the Company increased the capital of “Luxgen (Hangzhou) Motor Sales Co., Ltd.” through 100% held “Yulon Motor Investment (HK) Co. Ltd.” by RMB1.4 billion, The original capital amount was RMB1.6 billion and the capital amount was RMB3 billion after the capital increase.

4 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

IGovernance report

I.
Organizational system
(I)
Organizational Chart:
(II)
Businesses of Major Departments
Department
Functions
Audit office
Responsible for planning and implementing the audit of the Company's internal control system and tracking
its improvement;supervisingand managingthe subsidiaries.
Finance planning
department
Manage operating capital and provide financial analysis information; integrate the Company's financial,
tax, accounting, and shareholder operations; plan and promote human resources regulations, systems, and
projectplans.
Business
development
department
Planning and management of investee business; promotion of new brand (product) business development;
support overseas business units in planning and execution of related business.
Quality inspection
department
Planning and promotion of company-wide quality assurance strategy and quality assurance system;
promotion and monitoring of product inspection and intelligence system; promotion of quality awareness
and improvement activities and commissioningof vehicle testingbusiness.
Production
technology
department
Planning and execution of company-wide production facilities, development and implementation of
production technology improvement plans, and management of new product production development and
trial runs.
Sanyi plant
Responsible for the production of products; management and maintenance of office buildings, plants,
production equipment, power, water resources and environmental protection planning and supervision;
operationof tourist factories.
Manufacturing
service department
Planning and execution of production business; OEM contracting, production cost and OEM performance
management; planningand management of the company's overall information resources.
Production
management and
coordination
department
Integrated production planning coordination, planning and control; parts material demand planning and
control; production management logistics application system planning and establishment; replenishment
productivity and storage cost control; parts export business planning and promotion.
Purchasing
development
department
Nationalized parts design and development, procurement and outsourcing management; production
equipment, material procurement, cost control and import and export logistics operations.
Safety and health
office
Conduct industrial safety and health related business in accordance with the company's regulations,
regularly perform labor environmental inspection and monitoring, prevent occupational disasters, and guide
relevant units to implement relatedplans.
Corporate
governancegroup
Responsible for supervising and executing the operation of the corporate governance; integrating the
management strategy planning,objectives and operationplan control of the company.
Shareholder's
Meeting
Board of
Directors
Chairman
Vice Chairman
President
Vice President
Audit Committee
Audit office
Remuneration
Committee
Manufacturing system
Product service system
Finance planning
department
Business development
department
Quality inspection
department
Production technology
department
Sanyi plant
Manufacturing service
department
Production management and
coordination department
Purchasing development
department
Safety and health office
Corporate governance group		 I.
Organizational system
(I)
Organizational Chart:
(II)
Businesses of Major Departments
Department
Functions
Audit office
Responsible for planning and implementing the audit of the Company's internal control system and tracking
its improvement;supervisingand managingthe subsidiaries.
Finance planning
department
Manage operating capital and provide financial analysis information; integrate the Company's financial,
tax, accounting, and shareholder operations; plan and promote human resources regulations, systems, and
projectplans.
Business
development
department
Planning and management of investee business; promotion of new brand (product) business development;
support overseas business units in planning and execution of related business.
Quality inspection
department
Planning and promotion of company-wide quality assurance strategy and quality assurance system;
promotion and monitoring of product inspection and intelligence system; promotion of quality awareness
and improvement activities and commissioningof vehicle testingbusiness.
Production
technology
department
Planning and execution of company-wide production facilities, development and implementation of
production technology improvement plans, and management of new product production development and
trial runs.
Sanyi plant
Responsible for the production of products; management and maintenance of office buildings, plants,
production equipment, power, water resources and environmental protection planning and supervision;
operationof tourist factories.
Manufacturing
service department
Planning and execution of production business; OEM contracting, production cost and OEM performance
management; planningand management of the company's overall information resources.
Production
management and
coordination
department
Integrated production planning coordination, planning and control; parts material demand planning and
control; production management logistics application system planning and establishment; replenishment
productivity and storage cost control; parts export business planning and promotion.
Purchasing
development
department
Nationalized parts design and development, procurement and outsourcing management; production
equipment, material procurement, cost control and import and export logistics operations.
Safety and health
office
Conduct industrial safety and health related business in accordance with the company's regulations,
regularly perform labor environmental inspection and monitoring, prevent occupational disasters, and guide
relevant units to implement relatedplans.
Corporate
governancegroup
Responsible for supervising and executing the operation of the corporate governance; integrating the
management strategy planning,objectives and operationplan control of the company.
Shareholder's
Meeting
Board of
Directors
Chairman
Vice Chairman
President
Vice President
Audit Committee
Audit office
Remuneration
Committee
Manufacturing system
Product service system
Finance planning
department
Business development
department
Quality inspection
department
Production technology
department
Sanyi plant
Manufacturing service
department
Production management and
coordination department
Purchasing development
department
Safety and health office
Corporate governance group		 I.
Organizational system
(I)
Organizational Chart:
(II)
Businesses of Major Departments
Department
Functions
Audit office
Responsible for planning and implementing the audit of the Company's internal control system and tracking
its improvement;supervisingand managingthe subsidiaries.
Finance planning
department
Manage operating capital and provide financial analysis information; integrate the Company's financial,
tax, accounting, and shareholder operations; plan and promote human resources regulations, systems, and
projectplans.
Business
development
department
Planning and management of investee business; promotion of new brand (product) business development;
support overseas business units in planning and execution of related business.
Quality inspection
department
Planning and promotion of company-wide quality assurance strategy and quality assurance system;
promotion and monitoring of product inspection and intelligence system; promotion of quality awareness
and improvement activities and commissioningof vehicle testingbusiness.
Production
technology
department
Planning and execution of company-wide production facilities, development and implementation of
production technology improvement plans, and management of new product production development and
trial runs.
Sanyi plant
Responsible for the production of products; management and maintenance of office buildings, plants,
production equipment, power, water resources and environmental protection planning and supervision;
operationof tourist factories.
Manufacturing
service department
Planning and execution of production business; OEM contracting, production cost and OEM performance
management; planningand management of the company's overall information resources.
Production
management and
coordination
department
Integrated production planning coordination, planning and control; parts material demand planning and
control; production management logistics application system planning and establishment; replenishment
productivity and storage cost control; parts export business planning and promotion.
Purchasing
development
department
Nationalized parts design and development, procurement and outsourcing management; production
equipment, material procurement, cost control and import and export logistics operations.
Safety and health
office
Conduct industrial safety and health related business in accordance with the company's regulations,
regularly perform labor environmental inspection and monitoring, prevent occupational disasters, and guide
relevant units to implement relatedplans.
Corporate
governancegroup
Responsible for supervising and executing the operation of the corporate governance; integrating the
management strategy planning,objectives and operationplan control of the company.
Shareholder's
Meeting
Board of
Directors
Chairman
Vice Chairman
President
Vice President
Audit Committee
Audit office
Remuneration
Committee
Manufacturing system
Product service system
Finance planning
department
Business development
department
Quality inspection
department
Production technology
department
Sanyi plant
Manufacturing service
department
Production management and
coordination department
Purchasing development
department
Safety and health office
Corporate governance group
Department Functions
Responsible for planning and implementing the audit of the Company's internal control system and tracking
its improvement;supervisingand managingthe subsidiaries.
Audit office
Manage operating capital and provide financial analysis information; integrate the Company's financial,
tax, accounting, and shareholder operations; plan and promote human resources regulations, systems, and
projectplans.
Finance planning
department
Business Planning and management of investee business; promotion of new brand (product) business development;
support overseas business units in planning and execution of related business.
development
department
Planning and promotion of company-wide quality assurance strategy and quality assurance system;
promotion and monitoring of product inspection and intelligence system; promotion of quality awareness
and improvement activities and commissioningof vehicle testingbusiness.
Quality inspection
department
Production Planning and execution of company-wide production facilities, development and implementation of
production technology improvement plans, and management of new product production development and
trial runs.
technology
department
Responsible for the production of products; management and maintenance of office buildings, plants,
production equipment, power, water resources and environmental protection planning and supervision;
operationof tourist factories.
Sanyi plant
Manufacturing Planning and execution of production business; OEM contracting, production cost and OEM performance
management; planningand management of the company's overall information resources.
service department
Production Integrated production planning coordination, planning and control; parts material demand planning and
control; production management logistics application system planning and establishment; replenishment
productivity and storage cost control; parts export business planning and promotion.
management and
coordination
department
Purchasing Nationalized parts design and development, procurement and outsourcing management; production
equipment, material procurement, cost control and import and export logistics operations.
development
department
Conduct industrial safety and health related business in accordance with the company's regulations,
regularly perform labor environmental inspection and monitoring, prevent occupational disasters, and guide
relevant units to implement relatedplans.
Safety and health
office
Corporate Responsible for supervising and executing the operation of the corporate governance; integrating the
management strategy planning,objectives and operationplan control of the company.
governancegroup

Annual Report 2020 5

Corporate governance report

II. Profiles of Directors, Supervisors, President and Vice Presidents, Associate Vice Presidents, Heads of the Departments and Branches

(I) Information on directors

Spouse & Minor Spouse & Minor

Shareholding Current
Current
Title Nationality/ Term
Date First



Date		 when Elected Shareholding Shareholding
Country of Name Gender
of Elected
(Note 1) Origin Elected office (Note 2) Number of Number of Number of
% %
%
shares shares shares
Tai Yuen
Textile Co.,
284,901,045 18.11
Ltd. 3
Chairman R.O.C.
Female
2019.07.01		 1992.07.01 181,128,973
18.11
0		 0
Representative: years
377,924 0.024 33,114,652
3.31
68,927,571		 6.89
Yen Chen Li-
Lien
Tai Yuen
Textile Co., 284,901,045 18.11
Vice 1 2021.02.26
R.O.C. Ltd. Male 2021.02.26 181,128,973
18.11
0		 0
Chairman year (Note 5)
Representative: 0 0 0
0
2,014		 0.0002
Tso, Chi-Sen
China Motor
262,228,166 16.67
Corporation 3
Director R.O.C.
Male		 2019.07.01 2007.07.13 166,714,441
16.67
0		 0
Representative: years
0 0 0
0
0		 0
Shin-I Lin

6 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

April 19,2021 April 19,2021 April 19,2021
Shareholding by Executives, Directors or

Nominee		 Major experience (education) Supervisors who are spouses or
Arrangement
.		 Current position at the Company and within two degrees of kinship

other company (Note 4)
Number (Note 3)
Title Name Relation
of shares %
Chairman of China Motor Corporation

Chairman of Yulon Nissan Motor Co.,
Ltd.
Chairman of Taiwan Acceptance
Corporation

Chairman of Tai Yuen Textile Co., Ltd.
Chairman of Winsome Development
Department of Physical
Company Limited
0 0
Education, Chinese Culture
Director of Yulon Construction Co., Ltd.		 None None None
University Chairman of Carnival Industrial
Corporation

Chairperson and president of Yulon-
Administered Enterprises Company

Limited
For the rest, please refer to “Information

on Affiliates”
Department of Business

Administration, National
Chengchi University

Entrepreneur Management
Research Class
Special Advisor to YULON
MOTOR CO.,LTD
Vice president of Hna-Chuang Director of Taiwan Acceptance
Automobile Information Corporation
0 0 None None None
Technical Center Co., Ltd.
Chairman of Foxtron Vehicle
Special assistant of China Technologies Co., Ltd.
Motor Corporation
President of Dongnan (Fujian)

Automobile Industry Co.
Vice President of China Motor
Corporation
Assistant Vice President of
China Motor Corporation
Department of Mechanical
Engineering, National Cheng

Kung University
Chairman of Industrial
Technology Research Institute

Vice Chairman and President		 Director of China Motor Corporation
of China Motor Corporation
Managing and independent director of
0 0
President of Taiwan
WEIER Electric Dalian Co., Ltd.		 None None None
Transportation Vehicle
Manufacturers Association
Vice Premier of the Executive
Yuan and Chairman of the
Council for Economic Planning
and Development

Minister of Economy

Annual Report 2020 7

Corporate governance report

Spouse & Minor Spouse & Minor

Shareholding Current
Current
Title Nationality/ Term
Date First



Date		 when Elected Shareholding Shareholding
(Note 1) Country of Name Gender
Elected		 of Elected
Origin office (Note 2) Number of Number of Number
% % %
shares shares of shares
China Motor
262,228,166 16.67
16.67		 0 0
Corporation 3
Director R.O.C.
Male		 2019.07.01 2008.08.27 166,714,441
Representative: years
0 0 0
0		 1,907 0.0002
Liang Zhang
Yen Ching-

Ling’s
17,287,844 1.09

Foundation		 3
Director R.O.C.
Male		 2019.07.01 1992.07.05 10,990,936
1.09		 0 0
Representative: years
0 0 0
0		 0 0
Jack,
J.T .Huang
Yen Ching-

Ling’s		 17,287,844
3
Director R.O.C.
Foundation		 Male 2019.07.01 2004.07.01 1.09 10,990,936
1.09		 0 0
years
Representative: 15,412 0.001 203,738 0.0204 0 0
Zhen-Xiang Yao
Independent 3

R.O.C.		 Yi-Hong Hsieh Male 2019.07.01 2013.07.01 0 0 0 0 0 0
Director years

8 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

April 19,2021 April 19,2021 April 19,2021
Shareholding by Executives, Directors or

Nominee		 Major experience (education) Supervisors who are spouses or
Arrangement
.		 Current position at the Company and within two degrees of kinship

other company (Note 4)
Number (Note 3)
Title Name Relation
of shares %
Director of Taiwan Acceptance

Corporation
Supervisor of Yulon-Administered
State University of New York

Enterprises Company Limited

at Albany, USA.
0 0
Independent director of My Humble		 None None None
.
House Hospitality Management
Ph.D. in Economics

Consulting
Independent director of Ho-Ping Power

Company
Director of Tai Yuen Textile Co., Ltd.
Independent director of WPG Holdings
Independent director of SYSTEX

Corporation
Independent director of CTCI

Corporation
Doctor of Laws, Harvard
0 0
Director of Taiwania Capital Buffalo		 None None None
University, USA

Fund Co., Ltd.
Director, etc. of Taiwania Capital

Biotechnology Corporation
For the rest, please refer to “Information

on Affiliates”
Director of Yulon Nissan Motor Co., Ltd.
Director of Taiwan Acceptance Corporation
Chairman of Luxgen Motor Co., Ltd.
Director of China Motor Corporation
Director of Foxtron Vehicle Technologies Co.,
Ltd.
Director of Yulon-Administered Enterprises
Company Limited
Supervisor, etc. of DengfengYulon Motor
Curtin University MIB
Co.Ltd
0 0
Vice President of YULON		 Chairman of Uni Auto Parts Manufacture Co., None None None
MOTOR CO.,LTD Ltd
Chairman of China Ogihara Corporation
Chairman of Yulon Construction Co., Ltd.
Vice Chairman of Guangzhou FengShen
Automobiles Limited
Chairman of Yulon Automotive (China)
Investment Limited
For the rest, please refer to “Information on
Affiliates”
Doctor of Law, Stanford University

School of Law, USA		 Remuneration Committee Member of YULON
School of Law, City University of MOTOR CO.,LTD
Hong Kong Audit Committee Member of YULON
Visiting Professor MOTOR CO.,LTD
Adjunct Professor, College of Independent director of momo.com Inc.
Management, National Taiwan Remuneration Committee Member of
University momo.com Inc.
0 0 None None None
Adjunct Professor, EMBA, Audit Committee Member of momo.com Inc.
National Central University Independent director of Taiwan Acceptance
Professor, Corporation
Graduate Institute of Law, Remuneration Committee Member of Taiwan
Soochow University Acceptance Corporation
Senior Civil Service Examination Audit Committee Member of Taiwan
Committee of the Examination Acceptance Corporation
Yuan

Annual Report 2020 9

Corporate governance report

Spouse & Minor Spouse & Minor
Shareholding when Current Current
Title Nationality/ Term Date First l hhli

Date Eected Sareodng Shareholding
(Note 1) Country of Name Gender Elected of Elected
Origin office (Note 2) Number of Number of Number of
% % %
shares shares shares
Independent 3
R.O.C. Zhongqi Zhou Male 2019.07.01 2016.07.01 0 0 0
0
0		 0
Director years
Independent 3
R.O.C. Yen-Chin, Tsai Male 2019.07.01 2018.07.01 0 0 0
0
0		 0
Director years

Note 1: Corporate shareholders should have the name of corporate shareholders and representative illustrated separately (the name of the corporate shareholders should be noted) also, Table (2) should be filled out.

Note 2: Indicate the date of the first-time elected director or supervisor; also, the period of interruption should be noted.

Note 3: For the current job-related experiences, such as, worked in the CPA firm or affiliate office responsible for the auditing and checking during the aforementioned period of time, the job title and responsibility should be stated.

Note 4: Chairman and president of the company are not the same person, spouses or relatives within the first degree of kinship.

  • Note 5: The corporate director, Tai Yuen Textile Co., Ltd. reassigned its representative, and the vice chairman, Kuo-Rong Chen, was relieved of office on 2021.02.26; the new director, Tso, Chi-Sen, was newly appointed on 2021.02.26. On 2021.03.25, the Board of Directors elected Director Tso, Chi-Sen as the new Vice Chairman.

  • Indicates personal shareholding

10 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

April 19,2021 April 19,2021 April 19,2021
Shareholding by Executives, Directors or

Nominee		 Major experience (education) Supervisors who are spouses or
Arrangement
.		 Current position at the Company and within two degrees of kinship

other company (Note 4)
Number (Note 3)
Title Name Relation
of shares %
Remuneration Committee Member of YULON
MOTOR CO.,LTD
Audit Committee Member of YULON
MOTOR CO.,LTD
Independent director of Taiwan Acceptance
Corporation
Master of Science in Mathematics,
Remuneration Committee Member of Taiwan
Colorado State University, USA Acceptance Corporation
0 0
Senior Consultant, Chairman's
Audit Committee Member of Taiwan		 None None None
Office, Chunghwa Telecom Co. Acceptance Corporation
President of Taiwan Star Telecom Independent director of Standard Foods
Corporation
Remuneration Committee Member of Standard
Foods Corporation
Independent director of Fubon Life Insurance
Co., Ltd.
Director of Kiwi Technology Inc.
Remuneration Committee Member of YULON
Ph.D. in Accounting from the MOTOR CO.,LTD
University of California, Los Audit Committee Member of YULON
Angeles MOTOR CO.,LTD
Dean, Department of Accounting, Independent director of Nan Shan Life
National Taiwan University Insurance Company, Ltd.
Professor, Graduate Institute of Remuneration Committee Member of Nan
Accounting, National Taiwan Shan Life Insurance Company, Ltd.
0 0
University
Audit Committee Member of Nan Shan Life		 None None None
Advisor of Taiwan International Insurance Company, Ltd.
Financial Reporting Standards Independent Director of Genesys Logic, Inc.
Committee, Accounting Research Remuneration Committee Member, etc. of
and Development Foundation of Genesys Logic, Inc.
the Republic of China Independent Director of Cowealth Medical
Member of Taiwan Stock Exchange
Holding Co. Ltd.
Listing Review Committee Audit Committee Member of Cowealth
Medical Holding Co.Ltd.

Annual Report 2020 11

Corporate governance report

(II) Major shareholders of the institutional shareholders

(II)
Major shareholders of the institutional shareholders		 (II)
Major shareholders of the institutional shareholders
April 19,2021
Names of InstitutionalShareholders (Note1) Majorshareholders oftheinstitutionalshareholders (Note2)
1. Tai Yuen Textile Co., Ltd. 1. Xiang Wei Investment Co., Ltd. (22.15%)
2. Yen Ching-Ling’s Foundation (14.24%)
3. Hoffman Brothers Investment Company of the British Virgin Islands
(9.80%)
4. British Virgin Islands Merchant Evans Limited (9.71%)
5. British Cayman Islands Commercial Western Bridge Investment
Company (9.13%)
6. Liyuan Investment Corporation (7.17%)
7. Yongshun Investment Co., Ltd. (6.82%)
8 Diamond Hosiery & Thread Co., Ltd. (5.89%)
9. Lippen Investment Co., Ltd. (5.61%)
10. Yuanwei InvestmentCo.,Ltd. (3.10%)
2. China Motor Corporation 1. Tai Yuen Textile Co., Ltd. (25.18%)
2. Mitsubishi Motors Taiwan (14.00%)
3. YULON MOTOR CO.,LTD (8.05%)
4. Diamond Hosiery & Thread Co., Ltd. (6.76%)
5. Mitsubishi Corporation (4.79%)
6.Nan Shan Life Insurance Company, Ltd(2.70%)
7. Taiwan Life Insurance Co., Ltd. (1.18%)
8. Fande Investment Co., Ltd. (0.87%)
9. Yung Hang Investment Co., Ltd. (0.72%)
10. NewLabor Pension Fund(0.65%)
Established by a joint donation from Yen Ching-Ling and Wu Shun-Wen
3. Yen Ching-Ling’s Foundation
(100%)

  • Note 1: If the director or supervisor is a representative of a corporate shareholder, the name of the corporate shareholder should be filled in.

  • Note 2: Enter the names of the major shareholders of the corporate directors (whose shareholdings are among the top ten) and their shareholdings. If the major shareholder is a corporation, the following Table (3) should be completed.

  • Note 3: If a corporate shareholder is not a company organization, the name of the shareholder and the percentage of shareholding in the preceding paragraph shall be the name of the investor or donor and the percentage of the investment or donation.

(III) Major shareholders of the Company’s major institutional shareholders

(III)
Major shareholders of the Company’s major institutional shareholders		 (III)
Major shareholders of the Company’s major institutional shareholders
April 19,2021
Names ofcorporate shareholders (Note1) Majorshareholders of the corporate shareholders (Note2)
1. Tai Yuen Textile Co., Ltd. (90.60%)
1. Xiang Wei Investment Co., Ltd.
2.DiamondHosiery &Thread Co.,Ltd. (9.40%)
2. Hoffman Brothers Investment Company
Unavailable due to constraint of local practices
of theBritishVirgin Islands
3. British Virgin Islands Merchant Evans Unavailable due to constraint of local practices
Limited
4. British Cayman Islands Commercial Unavailable due to constraint of local practices
Western BridgeInvestment Company
1. Wu Shun-Wen’s Industrial Development and Investment Promotion
Committee (99.126%)
2. Diamond Hosiery & Thread Co., Ltd. (0.869%)
3. Fande Investment Co., Ltd. (0.001%)
5. Liyuan Investment Corporation
4. Weitai Investment Co., Ltd. (0.001%)
5. Le Wen Investment Co., Ltd. (0.001%)
6. Vincent Investment Co., Ltd. (0.001%)
7. Wavin Investment Co.,Ltd. (0.001%)
1. Wu Shun-Wen’s Industrial Development and Investment Promotion
Committee (99.083%)
2. Diamond Hosiery & Thread Co., Ltd. (0.912%)
3. Fande Investment Co., Ltd. (0.001%)
6. Yongshun Investment Co., Ltd.
4. Weitai Investment Co., Ltd. (0.001%)
5. Le Wen Investment Co., Ltd. (0.001%)
6. Vincent Investment Co., Ltd. (0.001%)
7. Wavin Investment Co.,Ltd.(0.001%)

12 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Names ofcorporate shareholders (Note1) Majorshareholders ofthe corporate shareholders (Note2)
1. British Virgin Islands Wanda Company (72.51%)
2. Tai Yuen Textile Co., Ltd. (21.97%)
3. Xiang Wei Investment Co., Ltd. (5.09%)
4. Wu Shun-Wen’s Industrial Development and Investment Promotion
Committee (0.1684%)
7. Diamond Hosiery & Thread Co., Ltd.
5. Le Wen Investment Co., Ltd. (0.13%)
6. Wavin Investment Co., Ltd. (0.13%)
7. Yen Chen Li-Lien (0.0002%)
8. Daughter of Yen Chen Li-Lien (0.0002%)
9. Sonof YenChen Li-Lien(0.0002%)
1. Wu Shun-Wen’s Industrial Development and Investment Promotion
Committee (98.993%)
2. Diamond Hosiery & Thread Co., Ltd. (1.002%)
3. Fande Investment Co., Ltd. (0.001%)
8. Lippen Investment Co., Ltd.
4. Weitai Investment Co., Ltd. (0.001%)
5. Le Wen Investment Co., Ltd. (0.001%)
6. Vincent Investment Co., Ltd. (0.001%)
7. Wavin InvestmentCo.,Ltd. (0.001%)
1. Wu Shun-Wen’s Industrial Development and Investment Promotion
Committee (91.513%)
2. Diamond Hosiery & Thread Co., Ltd. (8.477%)
3. Fande Investment Co., Ltd. (0.002%)
9. Yuanwei Investment Co., Ltd.
4. Weitai Investment Co., Ltd. (0.002%)
5. Le Wen Investment Co., Ltd. (0.002%)
6. Vincent Investment Co., Ltd. (0.002%)
7. Wavin InvestmentCo.,Ltd. (0.002%)
1. Nissan Motor Co., Ltd. (34.03%)
2. Mitsubishi Corporation (20.02%)
3. The Master Trust Bank of Japan (Trust Account) (2.29%)
4. Mitsubishi Heavy Industries (1.44%)
5. Japan Trustee Services Bank (Trust Account ) (1.07%)
10. Mitsubishi Motors Taiwan 6. Japan Trustee Services Bank (Trust Account 5) (1.03%)
7. MUFG Bank Ltd. (0.99%)
8. Japan Trustee Services Bank (Trust Account 9) (0.88%)
9. JP MORGAN CHASE BANK 385632 (0.87%)
10. BNYMSANV AS AGENT/CLIENTS LUX UCITS NON TREATY 1
(0.72%)
1. Tai Yuen Textile Co., Ltd. (18.11%)
2. China Motor Corporation (16.67%)
3. Yen Chen Li-Lien (3.31%)
4. Daughter of Yen Chen Li-Lien (3.28%)
5. Son of Yen Chen Li-Lien (3.28%)
6. Jiayuan Investment Co., Ltd. (2.85%)
11. YULON MOTOR CO.,LTD
7. Fande Investment Co., Ltd. (1.61%)
8. Yen Ching Ling Industrial Development Foundation (1.09%)
9. Chase Custodian Advanced Starlight Total International Equity Index
(0.79%)
10. J.P. Morgan Custodian Van Garde Emerging Markets Equity Index Fund
Account(0.79%)
1. The Master Trust Bank of Japan (Trust Account) (8.23%)
2. Japan Trustee Services Bank (Trust Account ) (5.79%)
3. BNYM AS AGT/CLTS NON TREATY JASDEC(5.32%)
4. Meiji Yasuda Life Insurance Company (4.38%)
5. Tokyo Marine & Nichido Fire Insurance Co., Ltd. (3.88%)
12. Mitsubishi Corporation
6. The Master Trust Bank of Japan (Mitsubishi Heavy Industries Ltd.
Retirement Benefits Trust Account ) (2.18%)
7. Japan Trustee Services Bank (Trust Account 5) (1.82%)
8. JP MORGAN CHASE BANK 385151 (1.31 %)
9. Japan Trustee Services Bank (Trust Account 9) (1.29%)
10. STATE STREET BANK WEST CLIENT - TREATY 505234(1.27%)

Annual Report 2020 13

Corporate governance report

Names ofcorporate shareholders (Note1) Majorshareholders ofthe corporate shareholders (Note2)
13. Nan Shan Life Insurance Company, 1. Run Chen Investment Holding CO., LTD. (33.99%)
Ltd. 2. Run Chen Investment Holding CO., LTD. Trust Account of First Bank
(55.56%)
3. Ruen Hua Dyeing & Weaving Co., Ltd. (1.34%)
4. Ying-Zong Du (1.16%)
5. Run Tai Sing Co., Ltd (0.97%)
6. Ruentex Development Co., Ltd. (0.23%)
7. Ruentex Industries Limited (0.21%)
8. Yuan New Investment Co., Ltd (0.16%)
9. Ruentex Leasing Co., Ltd. (0.13%)
10. Chi PingInvestment Co.,Ltd (0.11%)
14.Taiwan LifeInsurance Co.,Ltd. CTBCFinancial Holding Co.,Ltd. (100%)
1. Weitai Investment Co., Ltd. (33.36%)
2. Wavin Investment Co., Ltd. (33.30%)
15. Fande Investment Co., Ltd.
3. Le Wen Investment Co., Ltd. (33.30%)
4. Wei-Kung Chi (0.02%)
5.Kan-LinChu (0.02%)
16.YungHangInvestment Co.,Ltd. Yulon MotorCo.,Ltd. (100%)
17. Wu Shun-Wen’s Industrial
Development and Investment Fande Investment Co., Ltd. (100%)
PromotionCommittee
18. New Labor Pension Fund None

Note 1: If the major shareholder in Table (2) above is a corporation, the name of the corporation should be filled in.

Note 2: Enter the names of the major shareholders of the corporations (whose shareholdings are among the top ten) and their shareholdings. Note 3: If a corporate shareholder is not a company organization, the name of the shareholder and the percentage of shareholding in the preceding paragraph shall be the name of the investor or donor and the percentage of the investment or donation.

14 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(IV) Professional qualifications and independence analysis of directors and independent directors

(IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors		 (IV)
Professional qualifications and independence analysis of directors and independent directors
April 19,2021
Meet One of the Following Professional

Qualification Requirements, Together with at Least		 Independence Criteria (Note 2)
FiveYears Work Experience
Criteria
An Instructor or A Judge, Public Have Work
Higher Position Prosecutor, Attorney, Experience Number of
in a Department Certified Public in the Areas
Other Public
of Commerce, Accountant, or Other of
Companies
Law, Finance, Professional or Commerce,
in Which the
Accounting, or Technical Specialist Law,
Individual is
Other Academic
Who has Passed a		 Finance, or
Concurrently
Department National Accounting, 1 2 3 4 5 6 7 8 9 10 11 12
Serving as
Related to the Examination and or Otherwise
an
Business Needs been Awarded a Necessary
Independent
of the Company Certificate in a for the
Director
Name in a Public or Profession Necessary Business of

(Note 1)		 Private Junior for the Business of the Company
College, the Company
College or
University
Yen Chen
Li-Lien		 0
Chi-Sen
0
Tso
Shin-I Lin 1
Liang
1
Zhang
Jack,
3
J.T.Huang
Zhen-Xiang
0
Yao
Yi-Hong
2
Hsieh
Zhongqi
3
Zhou
Yen-Chin,
3
Tsai

Note 1: The number of columns may be adjusted subject to the actual circumstances.

  • Note 2: Please tick the “  ” corresponding boxes that apply to the directors or supervisors during the two years prior to being elected or during the term of office.

  • (1) Not an employee of the Company or any of its affiliates.

  • (2) Not a director or supervisor of the Company or its affiliated companies (but if the independent director is appointed in accordance with the “Securities and Exchange Act” or the law and regulations of the local country, and concurrently serves as such at a public company and its parent or subsidiary or a subsidiary of the same parent, it is not subject to this requirement).

  • (3) Not a natural person, spouse, underage children, or under the title of a third party who holds more than 1% of the outstanding shares issued by the Company or among the top 10 natural person shareholders.

  • (4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a managerial officer under Subparagraph (1) or any of the persons in Paragraph (2) and (3).

  • (5) Not a director, supervisor or employee of an institutional shareholder directly holding more than 5% of the outstanding shares issued by the company, or a director, supervisor or employee of an institutional shareholder who is among the top 5 shareholders, or a representative of an institutional shareholders appointed as the director or supervisor of the company according to Paragraph 1 or 2 of Article 27 of the Company Act (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (6) Not a director, supervisor or employee of a company controlling over one half of the company’s director seats or voting shares under one person (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (7) Not a director of a company or institution whose chairperson and president or equivalent role is the same person or its spouse (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (8) Not a Director, Supervisor, manager, or shareholders holding more than 5% of the shares designated company or institution with business or financial transactions with the Company. (However, this restriction does not apply to independent directors elected in accordance with the Securities and Exchange Act or the laws and regulations of the local country, who concurrently serve as such at the Company and its parent or subsidiary or a subsidiary of the same parent and when the specific company or institution holds more than 20% of the Company’s total issued shares but not more than 50%.)

  • (9) Not a professional individual, or an owner, partner, director (or governor), supervisor or officer of a sole proprietorship, partnerships, company, or institution that provides auditing services to the Company or any affiliate of the Company, or that provides commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company for which the provider in the last 2 years had received cumulative remuneration exceeding NT$500,000, or a spouse thereof. This restriction does not apply, however, to a member of the remuneration committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Securities and Exchange Act or to the Business Mergers and Acquisitions Act or related laws or regulations.

  • (10) Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company.

  • (11) Not been a person of any conditions defined in Article 30 of the Company Act.

  • (12) Not a governmental, juridical person or its representative as defined in Article 27 of the Company Act.

Annual Report 2020 15

Corporate governance report

  • (V) Background information of the President, Assistant Vice Presidents and heads of various departments and branches
Shareholding by Shareholding by
Spouse & Minor
Shareholding
Nominee
Shareholding
Title Arrangement
Nationality Name Gender
Date Elected
(Note 1) Number Number
Number of

%		 of % of %
shares
shares shares
Zhen-Xiang
President R.O.C.
Male		 2013.08.08 203,738 0.0204 0 0 0 0
Yao
Vice
R.O.C. Jian-Hui Li Male 2020.08.10 38 0 0 0 0 0
President
Assistant
Bing-Lin
Vice R.O.C. Male 2020.11.10 0 0 0 0 0 0
Chen
President
Assistant
Min-Huei
Vice R.O.C. Male 2021.01.16 3,997 0.0004 0 0 0 0
Ciou
President
Assistant
Hong-
Vice R.O.C. Male 2021.01.28 18 0 0 0 0 0
Zheng Chen
President

16 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

April 19,2021 April 19,2021 April 19,2021
Managers who are

Spouses or Within Two
Current position at the Company and other company Degrees of Kinship
Experience (Education) (Note 2)

(Note 3)
Title Name Relation
Director of Yulon Nissan Motor Co., Ltd.
Director of Taiwan Acceptance Corporation

Chairman of Luxgen Motor Co., Ltd.
Director of China Motor Corporation

Director of Foxtron Vehicle Technologies Co., Ltd.
Director of Yulon-Administered Enterprises Company

Limited
Supervisor, etc. of DengfengYulon Motor Co.Ltd
Curtin University MIB

Chairman of Uni Auto Parts Manufacture Co., Ltd

Vice President of YULON MOTOR		 None None None
Chairman of China Ogihara Corporation
CO.,LTD

Chairman of Yulon Construction Co., Ltd.
Vice Chairman of Guangzhou FengShen Automobiles

Limited
Chairman of Yulon Automotive (China) Investment

Limited
For the rest, please refer to “Information on
Affiliates”
Chairman of Yu Ching Business Co., Ltd.
Director of China Engine Corporation

Chairman of China Cast Iron Pipe Co., Ltd.
Director of Sin Chi Co., Ltd.
Curtin University MIB Director of Yushin Motor Co., Ltd.

Assistant VP, Product Service System,		 Director of R O C SPICER LTD. None None None
YULON MOTOR CO.,LTD Director of Yue Sheng Industrial Co., Ltd.
Director of Yu Chia Motor Co., Ltd.
For the rest, please refer to “Information on
Affiliates”
Master of International Business, Curtin
University
Chairman of Chuang Jie New Energy Vehicle (HZ)

Minister, manufacture department,		 None None None

Limited
DengfengYulon Motor Co.Ltd.
Assistant Vice President, manufacture
department, YULON MOTOR CO.,LTD
Bachelor of Mechanical Engineering,
National Taiwan University

Director of Chain Engine Corporation

Assistant Vice President, YULON GROUP


Director of Hna-Chuang Automobile Information
EXECUTIVE OFFICE None None None
Technical Center Co., Ltd.
Director. Business and Planning
Director of Uni-Calsonic Corp.
department, YULON GROUP

EXECUTIVE OFFICE
Curtin University MIB
Chairman of China Engine Corporation

Manager, Production management and

Chairman of Advance Power Machinery Co., Ltd.		 None None None
service department, YULON MOTOR
Director of Yulon It Solutions Inc.

CO.,LTD

Annual Report 2020 17

Corporate governance report

Shareholding by Shareholding by
Spouse & Minor
Shareholding
Nominee
Shareholding
Title Arrangement
Nationality Name Gender
Date Elected
(Note 1) Number Number
Number of

%		 of % of %
shares
shares shares
Assistant
Vice R.O.C. Wen-Yi Lo Male 2019.10.17 722 0 0 0 0 0
President
Shi-Ting
Manager R.O.C. Male 2010.07.09 2,073 0.0002 0 0 0 0

Chen
Manager R.O.C. Li-Hua Wu Male 2011.03.22 5,601 0.0006 0 0 0 0
Wen-Yuan
Manager R.O.C. Male 2015.05.11 47 0 0 0 0 0
Li
Chong-
Manager R.O.C. Male 2017.08.16 0 0 0 0 0 0
Yuan Chen
Shen-Guo
Manager R.O.C. Male 2018.12.17 0 0 0 0 0 0
Wang
Meng-Yue
Manager R.O.C. Female
2018.04.01		 0 0 324 0 0 0
Jie
Shih-Lin
Manager R.O.C. Male 2019.10.17 0 0 0 0 0 0
Wu
Xun-Gui
Manager R.O.C. Male 2021.01.28 0 0 0 0 0 0
Xie
Qiong-Hui
Manager R.O.C. Female
2021.01.28		 0 0 0 0 0 0
Huang

Note 1: This should include the information of the President, Asst. Vice Presidents, and supervisors of the various departments and branches; also, the information of the position equivalent to President or Asst. Vice Presidents, regardless of title, should be disclosed. Note 2: For the current job-related experiences, such as, worked in the CPA firm or affiliate office responsible for the auditing and checking during the aforementioned period of time, the job title and responsibility should be stated. Note 3: The major concurrent positions at other companies.

18 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

April 19,2021 April 19,2021 April 19,2021
Managers who are

Spouses or Within Two
Current position at the Company and other company Degrees of Kinship
Experience (Education) (Note 2)

(Note 3)
Title Name Relation
Supervisor of China Cast Iron Pipe Co., Ltd.
University of Southampton MS
Supervisor of Carplus Auto Leasing Corporation
Accounting and Finance Supervisor of Uni Auto Parts Manufacture Co., Ltd
None None None

Manager, Finance planning department,
YULON MOTOR CO.,LTD For the rest, please refer to “Information on
Affiliates”
Master of Industrial Engineering and
Management, Yunlin University of Science
and Technology
Manager, Supply department, YULON
MOTOR CO.,LTD
Director of Advance Power Machinery Co., Ltd.
Director of Corporate Synergy Development Center		 None None None
Department of Electronic Communication, Director of China Cast Iron Pipe Co., Ltd.
United Industrial Technical College Director of Yueki Industrial Co., Ltd.
None None None

Plant manager, Sanyi plant, YULON		 Director of Yu Chia Motor Co., Ltd.
MOTOR CO.,LTD Chairman of Sanyi industrial area control center
Curtin University MIB
Manager, Production management and
coordination department, YULON
MOTOR CO.,LTD		 Director of Luxgen Taipei Motor Co., Ltd. None None None
Master of Mechanical Engineering,
Director of Coc Tooling & Stamping Co., Ltd.

Chenggong University

Director of Director of R O C SPICER LTD.		 None None None
Manager, Quality inspection department,
Director of Luxgen (Hangzhou) Real Estate Co., Ltd.

YULON MOTOR CO.,LTD
Master of Aerospace Engineering,
Chenggong University
Manager, Production technology
department, YULON MOTOR CO.,LTD		 Director of Yue Sheng Industrial Co., Ltd.
Director of Yu Chia Motor Co., Ltd.		 None None None
Master of Human Resource Management,

Sun Yat-sen University
None None None None
Assistant Manager, Audit office, YULON

MOTOR CO.,LTD
Curtin University MIB
Assistant manager, Production
Director of Yueki Industrial Co., Ltd. None None None

management and coordination department,
YULON MOTOR CO.,LTD
Master of industrial management,

National Taiwan University of Science
Director of Yu Ching Business Co., Ltd.
And Technology
Director of Sanyi industrial area control center

Assistant Manager, Finance planning		 None None None

Supervisor of Advance Power Machinery Co., Ltd.
department, YULON MOTOR CO.,LTD
Supervisor of Yu Chia Motor Co., Ltd.

Director, Sanyi plant, YULON MOTOR

CO.,LTD
Bachelor of information management,

Chung Yuan Christian University

Assistant Manager, Production		 None None None None
management and service department,
YULON MOTOR CO.,LTD

Annual Report 2020 19

(VI) Remuneration of Directors, President, and Vice President in 2020

1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)		 1. Remuneration to Directors and Independent Directors, (disclosure of individual names and remuneration methods)
Unit: NTD
Remunerationof Directors
Ratio of Total
Remuneration
(A+B+C+D) to Net
Income
Remuneration to directorsalsoholding employee positions
Ratio of Total
Compensation
(A+B+C+D+E+F+G)
t Nt I Nt 8
Compensation
paid to
directors from
id
Compensation (A)
(Note 2)
Severance Pay (B)
Bonus to Directors (C)
(Note 3)
For services (D) (Note
4)
Salary, Bonuses, and
Allowances (E) (Note
5
Severance Pay (F)
Remuneration to employees
(G) (Note 6)
Title Name The
company
Companies
in the
consolidated
financial
statements
(Note7)
The
company
Companies
in the
consolidated
financial
statements
(Note7)
The
company
Companies
in the
consolidated
financial
statements
(Note 7)
The
company
Companies
in the
consolidated
financial
statements
(Note 7)		 (Note10)

The
company
Companies
in the
consolidated
financial
statements
(Note 7)		 )

The
company
Companies
in the
consolidated
financial
statements
(Note 7)
The
company
Companies
in the
consolidated
financial
statements
(Note 7)
The
company
Companies in
the
consolidated
financial
statements
(Note 7)
Cash
Stock
Cash
Stock		 o e ncome (oe )
The
company
Companies
in the
consolidated
financial
statements
(Note 7)		 an nveste
company
other than the
Company’s
subsidiaries
or parent
company
(Note 9)
Chairman Tai Yuen Textile
Co., Ltd.
Representative:
YenChen Li-Lien		 13,000,000 21,546,136
0
0		 0 0 960,000 1,104,000 0.5096% 0.8269% 0
0		 0 0 0 0 0 0 0.5096% 0.8269% 38,491,099
Tai Yuen Textile
 0 0 0 0
Vice Co., Ltd. 1,469,000
4,907,630
0
0		 0 0 120,000 232,000 0.0580% 0.1876% 0
0		 0 0 0.0580% 0.1876% 24,662,575
Chairman Reresentative:
p
Kuo-Rong Chen
China Motor 4,507,200
4,507,200
0
0		 0 0 120,000 120,000 0.1689% 0.1689% 0
0		 0 0 0 0 0 0 0.1689% 0.1689% 4,627,200
Director Corporation
Representative:

Shin-I Lin
China Motor
 0 0 0 0
Director Corporation 0
0
0
0		 0 0 120,000 216,000 0.0044% 0.0079% 0
0		 0 0 0.0044% 0.0079% 0
Reresentatie:
pv
LiangZhang
Yen Ching-Ling’s 0
0
0
0		 0 0 120,000 152,000 0.0044% 0.0055% 0
0		 0 0 0 0 0 0 0.0044% 0.0055% 0
Director Foundation
Representative:

Jack, J.T.Huang
Yen Ching-Ling’s
 0 0 0 0
Director Foundation 0
719,564
0
0		 0 0 120,000 264,000 0.0044% 0.0359% 7,171,036
7,171,036		 10,421,857 10,421,857 0.6466% 0.6782% 1,746,189
Rrntti
epeseave:
Zhen-XiangYao
Independent
Yi-Hong Hsieh
 0
0
0
0		 0 0 1,050,000 2,110,000 0.0383% 0.0770% 0
0		 0 0 0 0 0 0 0.0383% 0.0770% 0
Director
Independent
Yen-Chin, Tsai		 0
0
0
0		 0 0 540,000 540,000 0.0197% 0.0197% 0
0		 0 0 0 0 0 0 0.0197% 0.0197% 0
Director

Independent
Zhongqi Zhou		 0
0
0
0		 0 0 1,050,000 2,110,000 0.0383% 0.0770% 0
0		 0 0 0 0 0 0 0.0383% 0.0770% 0
Director
1.Please describe the policy, syst ems, standards and structure of remuneration of independent directors; also, describe the relationship with the amount of remuneration according to the responsibilities, risks and invested time: Note 10
2.Except for those disclosed in th e above table,the remuneration of the Company’s directors by providingservices(e.g.,servingas the non-employee consultant)to all companies included in the financial report in the most recentyear: None.

Note 1: Directors' names should be presented separately (for institutional shareholders, state separately the name of the institutional shareholder and its representatives); the amount of benefits and allowances can be presented in aggregate sums. If the director is also the President or Vice President of the Company, please fill in this table and table (2).

Note 2: Refers to Director's remuneration in the latest year (including salaries, work subsidies, severance pay, various bonuses and incentives etc).

Note 3: Please fill in the amount of remuneration to directors resolved in the most recent board meeting.

  • Note 4: Refers to compensations for services rendered (including travel, special allowances, various subsidies, accommodation, corporate vehicle and other items). If houses, cars and other transportation or personal expenses are provided, the nature and cost of the provided assets, the actual rental or the rental calculated based on the fair value, fuel expense and other payment must be disclosed. If chauffeurs are provided, please include a note stating that the Company will pay the chauffeurs, but they payments will not be counted as remuneration.

  • Note 5: This refers to the salary, duty allowances, severance pay, bonuses, incentives, transportation allowance, special allowance, various allowances and accommodation, and company cars paid or offered to directors who concurrently hold position as an employee (incl. president, vice president, other managerial officers and employees). If houses, cars and other transportation or personal expenses are provided, the nature and cost of the provided assets, the actual rental or the rental calculated based on the fair value, fuel expense and other payment must be disclosed. If chauffeurs are provided, please include a note stating that the Company will pay the chauffeurs, but they payments will not be counted as remuneration. In addition, according to the salaries expense listed in the “Share-Based Payment” of IFRS 2, expenses including the employee stock option certificate acquirement, employee restricted stock and employee participation in cash capital increase and stock subscription must be counted in the remuneration.

Note 6: For the directors who are also employees (including President, Vice President, managers, and staff) of the Company in the most recent year with remuneration received (including stock and cash), the remuneration amount to employees resolved in the board meeting in the most recent year should be disclosed. If the remuneration amount cannot be estimated, the amount to be distributed this year is to be estimated proportionally to the actual amount distributed last year; also, Exhibit 1-3 should be filled out. Note 7: The disclosure should cover all companies included in the consolidated financial statements (including The Company); present the total amount of remuneration paid by all companies above to The Company's Directors. Note 8: Net income refers to the net income amount on the parent company only or individual financial reports in the most recent year.

Note 9: a. This field must state any form of remuneration the Director has received from The Company's invested businesses other than subsidiaries.

  • b. For Directors who receive remuneration from invested businesses other than subsidiaries, the amount of remuneration from these invested businesses should be added to column I of the Remuneration brackets table. Change the name of column J to “All invested businesses“.

  • c. Remuneration refers to any returns, compensation (including remuneration to Employees, Directors and Supervisors), professional fees etc which The Company's Director have received for serving as directors, supervisors, or managers in invested businesses other than subsidiaries.

  • Note 10: In accordance with the Company's Articles of Incorporation, independent directors are not allowed to participate in the distribution profit-sharing remuneration for directors' remuneration; remuneration for performing business is reviewed from time to time depending on actual operating conditions and relevant laws and regulations. The current remuneration standards for individual independent directors are determined by the Remuneration Committee with reference to the standards of other companies in the same industry, with consideration of their extent of participation in the Board of Directors and other functional committees and the value of their contributions, etc. After the approvement by the Board of Directors, the Company pays the independent directors from NT$38,350 to NT$80,000 per month, and NT$10,000 each time depending on the actual attendance of the independent directors at the functional committee meetings.

  • The remuneration disclosed in this table is different from the concept of income in the Income Tax Act. This table is used for information disclosure, not taxation.

2. Remuneration to President and Vice President (disclosure of individual names and remuneration methods)

Unit: NTD

Ratio of Total Ratio of Total
Compensation
Salary (A) Bonuses and allowances Remuneration to the employees (D) Remuneration
Severance Pay (B)
paid to
(Note 2) etc. (C) (Note 3) (Note 4) (A+B+C+D) to Net
directors from
Income (%) (Note 6)
an invested
Companies in Companies in Companies Companies in the Companies
Title Name company
the the in the The company consolidated financial in the
other than the
The company
consolidated		 The company consolidated The company consolidated statements (Note 5) The consolidated Company’s


financial		 financial financial company financial subsidiaries
statements statements statements Cash Stock Cash Stock statements
(Note 7)
(Note 5) (Note 5) (Note 5) (Note 5)
President Zhen-
Xiang Yao		 3,451,246
3,451,246		 10,421,857 10,421,857 3,719,790 3,719,790 0
0		 0 0 0.6423% 0.6423% 1,746,189
Vice Jian-Hui
1,598,920
1,598,920		 111,926 111,926 2,060,413 2,060,413 0
0		 0 0 0.1377% 0.1377% 242,581
President Li

  • Disregarding position titles. All such job positions including general manager, vice general managers (e.g., President, Chief Executive Officer (CEO), Superintendent….) shall be disclosed.

  • Note 1: The names of the President and Vice Presidents should be presented separately; the amount of benefits and allowances can be presented in aggregate sums. If the director is also the President or Vice President of the Company, please fill in this table and previous table 1.

  • Note 2: Refers to salaries, work subsidies, and severance pay made to the General Manager and Vice Presidents in the latest year.

  • Note 3: Refers to other compensations such as bonuses, incentives, travel allowances, special allowances, various subsidies, accommodation, corporate vehicle or other items made to the President and Vice Presidents. If houses, cars and other transportation or personal expenses are provided, the nature and cost of the provided assets, the actual rental or the rental calculated based on the fair value, fuel expense and other payment must be disclosed. If chauffeurs are provided, please include a note stating that the Company will pay the chauffeurs, but they payments will not be counted as remuneration. In addition, according to the salaries expense listed in the “Share-Based Payment” of IFRS 2, expenses including the employee stock option certificate acquirement, employee restricted stock and employee participation in cash capital increase and stock subscription must be counted in the remuneration.

  • Note 4: Please fill in the remuneration amount to the president and vice president resolved in the board meeting in the most recent year (including stock and cash). If the remuneration amount cannot be estimated, the amount to be distributed this year is to be estimated proportionally to the actual amount distributed last year. And should also fill out Exhibit 3.

  • Note 5: The disclosure should cover all companies included in the consolidated financial statements (including The Company); present the total amount of remuneration paid by all companies above to The Company's President and Vice President .

Note 6: Net income refers to the net income amount on the parent company only or individual financial reports in the most recent year.

  • Note 7: a. This field must state any form of remuneration the President and Vice President has received from The Company's invested businesses other than subsidiaries.

  • b. For President/Vice Presidents who receive remuneration from invested businesses other than subsidiaries, the amount of remuneration from these invested businesses should be added to column E of the Remuneration brackets table. Change the name of column E to “All invested businesses“.

  • c. Remuneration refers to any returns, compensation (including remuneration to Employees, Directors and Supervisors), professional fees etc which The Company's President/Vice Presidents have received for serving as directors, supervisors, or managers in invested businesses other than subsidiaries.

  • ※ The remuneration disclosed in this table is different from the concept of income in the Income Tax Act. This table is used for information disclosure, not taxation.

Corporate governance report

3. Name of the managers received remuneration and the distribution of remuneration

December 31, 2020 Unit: NTD

Title Name Stock Cash Total Total/after-tax profit
Manager President Zhen-Xiang
Yao
Vice
Jian-Hui Li
President
Assistant
Vice Wen-Yi Lo
President
Assistant
Vice Binglin Chen
President
Hong-Zheng
 0 0 0 0%
Manager
Chen
Manager Shi-Ting Chen
Manager Li-Hua Wu
Manager Wen-Yuan Li
Manager Shih-Lin Wu
Chong-Yuan
Manager
Chen
Manager Meng-Yue Jie
Shen-Guo
Manager
Wang

Note 1: The name and job title of each individual should be disclosed; however, the distribution of earnings can be disclosed aggregately. Note 2: Please fill in the remuneration amount to the managers resolved in the board meeting in the most recent year (including stock and cash). If the remuneration amount cannot be estimated, the amount to be distributed this year is to be estimated proportionally to the actual amount distributed last year. Corporate earnings shall be the net income after taxation. If IFRS has already been adopted, corporate earnings shall be the net income after taxation of individual entities or individual financial statements. Note 3: According to Notice Tai-Tsai-Cheng-3-0920001301 dated March 27, 2003, the following managerial roles are subject to reporting: (1) President or equivalent (2) Vice President or equivalent

(3) Assistant Manager or equivalent (4) Head of Finance (5) Head of Accounting (6) Any other authorized signatories involved in The Company's administrative affairs Note 4: If directors, president and vice president receive employee remuneration (including stock and cash), this table should be filled out in addition to Exhibit 1.

  1. Remuneration for the top five highest paid officers of the Company (names and method of remuneration should disclosed by individual)

Unit: NTD

Bonuses and Bonuses and Profit sharing remuneration to employees Profit sharing remuneration to employees Profit sharing remuneration to employees Profit sharing remuneration to employees A, B, C and D as a % of A, B, C and D as a % of Compensation
Salary (A)
Severance Pay (B) allowances etc. (C) (D) the net profits after tax
paid to directors
(Note 2)
(Note 3) (Note4) (%) (Note 6)
from an invested
Companies Companies Companies Companies in the company other
Title Name
in the
in the
in the
consolidated		 Companies
than the
h i h
The consolidated
The		 consolidated
The		 consolidated
Te company		 financial statements The n te Company’s
company financial company financial company financial (Note 5) company consolidated
subsidiaries or
fiil
statements statements statements nanca parent company
(Note 5) (Note 5) (Note 5) Cash Stock Cash Stock statements (Note 7)
Zhen-
President Xiang 3,451,246
3,451,246
10,421,857		 10,421,857 3,719,790 3,719,790 0 0 0 0 0.6423% 0.6423% 1,746,189
Yao
Vice Jian-Hui
1,598,920
1,598,920
111,926		 111,926 2,060,413 2,060,413 0 0 0 0 0.1377% 0.1377% 242,581
President Li
Assistant
Wen-Yi
Vice 1,501,320
1,501,320
99,211		 99,211 1,695,313 1,695,313 0 0 0 0 0.1203% 0.1203% 180,000
Lo
President
Li-Hua
Manager 1,370,640
1,370,640
178,176		 178,176 1,494,344 1,494,344 0 0 0 0 0.1111% 0.1111% 0
Wu
Shen-
Manager Guo 1,297,680
1,297,680
168,697		 168,697 1,444,580 1,444,580 0 0 0 0 0.1063% 0.1063% 0
Wang

Note 1: The term “top five highest paid officers“ refers to the managerial officers of the Company. The criteria for managerial officers are based on the scope of application of “managerial officers“ as stipulated by the Securities and Futures Commission of the Ministry of Finance in its Order Tai-Cai-Sheng-San-Zi No. 0920001301 dated March 27, 2003. The “Top Five Highest Remuneration“ calculation is based on the total amount of base salary, severance and pension, bonus and allowance received by the officers from all companies in the consolidated financial statements, as well as the amount of remuneration for employees (i.e., the total of the four items A+B+C+D), and then ranked by the top five highest remuneration. If a director is also the aforementioned officer, this table and the above table (1-1) should also filled in.

Note 2: This is for the salary, duty allowance and severance of the top five highest paid officers in the most recent year.

  • Note 3: This is for various bonuses, incentive payments, transportation fee, special expenses, various stipends, dormitories, company cars and other provisions for the top five highest paid officers in the most recent year. If houses, cars and other transportation or personal expenses are provided, the nature and cost of the provided assets, the actual rental or the rental calculated based on the fair value, fuel expense and other payment must be disclosed. If chauffeurs are provided, please include a note stating that the Company will pay the chauffeurs, but they payments will not be counted as remuneration. In addition, according to the salaries expense listed in the “Share-Based Payment” of IFRS 2, expenses including the employee stock option certificate acquirement, employee restricted stock and employee participation in cash capital increase and stock subscription must be counted in the remuneration.

  • Note 4: The amount of employee remuneration (including stock and cash) received by the top five highest paid officers in the most recent year should be disclosed as approved by the Board of Directors, and if the amount cannot be estimated, the proposed payment amount for this year should be calculated in proportion to the actual payment amount last year, and should also be listed in Exhibit 1-3.

  • Note 5: The total amount of remuneration paid to the top five highest paid officers of the Company by all companies in the consolidated statements (including the Company) should be disclosed. Note 6: Net income refers to the net income amount on the parent company only or individual financial reports in the most recent year.

  • Note 7: a. This column should explicitly state whether the top five highest paid officers of the Company “have“ or “have not“ received remuneration from investees other than subsidiaries or parent company. b. Remuneration refers to the compensation or payment (including remuneration to employees, directors and supervisors) and business execution expenses of the top five highest paid officers of the Company in their capacity as directors, supervisors or officers of an investee enterprise other than a subsidiary or parent company.

  • ※ The remuneration disclosed in this table is different from the concept of income in the Income Tax Act. This table is used for information disclosure, not taxation.

Corporate governance report

  • (VII) Analysis of the total remuneration paid to directors, president, and vice president as a percentage of net profits after tax in the individual or standalone financial statements for the most recent 2 years by the Company and all companies in the consolidated financial statements, and explanation of the policies, criteria, combination, the procedures for determining remuneration and the correlation to operating performances and future risks.

  • Total remuneration paid to directors, president, vice president , and Assistant Vice President as a percentage of net profits after tax in the individual or standalone financial statements:

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2020 2020 2020 2019 2019 2019
Remuneration as Remuneration as
a percentage of a percentage of
Total
Total
Net profits after tax
total net profits in		 Net profits after tax
total net profits in
remuneration
remuneration
the on standalone the on standalone
basis (%) basis (%)
Director 23,176,200 2,739,210,188 0.8461% 23,284,600 (24,465,407,975) (0.0952%)
President
and Vice 21,364,152
2,739,210,188		 0.7799% 14,343,880 (24,465,407,975) (0.0586%)
President

Note: Except for the permanent positions, which have established tasks and duties, and receive a fixed monthly salary, the rest are in accordance with Article 27 and Article 28 of the Company's Articles of Incorporation.

  1. Total remuneration paid to directors, president, vice president, and Assistant Vice President as a percentage of net profits after tax in the standalone financial statements by the Company and all companies in the consolidated financial statements:

Unit: NTD

2020 2020 2020 2019 2019 2019
Remuneration as Remuneration as
a percentage of a percentage of
Total
Total
Net profits after tax
total net profits in		 Net profits after tax

total net profits in
remuneration
remuneration
the on standalone the on standalone
basis (%) basis (%)
Director 38,528,530 2,739,210,188 1.4066% 38,392,687 (24,465,407,975) (0.1569%)
President
and Vice 21,364,152 2,739,210,188 0.7799% 14,343,880 (24,465,407,975) (0.0586%)
President

Note: Except for the permanent positions, which have established tasks and duties, and receive a fixed monthly salary, the rest are in accordance with Article 27 and Article 28 of the Company's Articles of Incorporation.

  1. The policies, criteria, combination, the procedures for determining remuneration and the correlation to operating performances and future risks.

The Remuneration Committee is responsible for setting and regularly reviewing the annual and long-term performance goals and remuneration policies, systems, standards and structures of the Company's directors and managerial officers, regularly evaluating the achievement of the Company's directors' and managerial officers' performance goals, and considering the amount of remuneration, payment methods and future operational risks, and then submitting them to the Board of Directors for approval. For distribution items in the earnings distribution table, they must also be submitted to the shareholders' meeting for approval.

(1)Remuneration policy for directors (independent directors included)

The Corporate Charter Article 28 stipulates that the Board of Directors are authorized to determine the remunerations for directors based on their individual contributions to the company and the industrial standards are taken for reference, while the independent directors shall receive fixed remunerations and attendance allowances. According to Article 27-1 of the Corporate Charter, remunerations for the directors (independent directors excluded) of the current year shall be no more than 0.5% of the current business profit, if any.

24 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Remunerations for the directors (Chairman and independent directors excluded) are based on the indicators of the established “Board Evaluation Guideline” which includes participation in the corporate operations, professionalism and continuous learning, and internal control.

(2)Remuneration policy for executives

According to Article 27-2 of the Corporate Charter, remunerations appropriated for employees shall not be more than 0.1% of the annual business profit, if any. Remunerations for executives include the salary and bonus. The salary is determined by reference to the industrial standards as well as the individual’s job title, rank, academic background, work experience, professionalism and responsibilities, while the bonus is based on the “Performance Evaluation Guideline” applicable to executives and general employees. The indicators for evaluating executives include departmentspecific objectives of professional of management and operations (90%), e.g. fulfillment of targeted operating income and profit, compliance with new product schedules, product quality improvement, vehicle supply satisfaction, domestic parts development and new business development); management aspects (10%), e.g. improvement of functional committees, talent cultivation, innovative proposals); and daily managerial performance, by taking into account the Company’s overall profitability, target achievement rate, operating efficacy, and contributions, and then the remuneration is proportionately calculated and given for a reasonable distribution which, however, is subject to timely review of actual operational status and statutory regulations.

Annual Report 2020 25

Corporate governance report

III. The operation of corporate governance

(I) The Function of the Board of Directors

For the most recent year, the Board of Directors held 7 meetings, and the attendance of directors and independent directors was as follows.

Number of Number of Attendance in
Title Name (Note 1) attendance attendance by person (%) (Note Remarks (Note 2)
inperson proxy 2)
Chairman Tai Yuen Textile Co., Ltd.
Representative:YenChen Li-Lien		 7 0 100%
Vice Chairman Tai Yuen Textile Co., Ltd.
Representative:Kuo-Rong Chen		 6 1 85.7%
Director China Motor Corporation
Representative: Shin-I Lin		 7 0 100%
Director China Motor Corporation
Representative:LiangZhang		 6 1 85.7%
Director Yen Ching-Ling’s Foundation
Representative: Jack, J.T.Huang		 7 0 100%
Director Yen Ching-Ling’s Foundation
Representative:Zhen-XiangYao		 7 0 100%
Independent
Director		 Yi-Hong Hsieh 7 0 100%
Independent
Director		 Zhongqi Zhou 7 0 100%
Independent
Director		 Yen-Chin, Tsai 6 1 85.7%

Other notes:

I. For board of directors meetings that meet any of the following descriptions, state the date, session, the discussed agenda, independent directors' opinions and how the company has responded to such opinions: (I) The content of the particulars inscribed in Article14-3 of the Securities and Exchange Act.

The Company’s
Board of Independent handling of
Directors Board of Directors Summary of the motion Directors’ independent
Date opinions directors’
opinions
The Company issued a Letter of Operating
2020/01/16 2nd interim meeting of the 16th
Board of Directors
Support (LOS) for the amount adjustment
of bank facility of Hua-Chuang Automobile		 Approved as
submitted.		 Executed as
resolved
Information TechnicalCenterCo.,Ltd.
2020/02/07
3rd interim meeting of the 16th
Board of Directors		 The strategic cooperation agreement
between the Company and Hon Hai
Precision Industry Co.		 Approved as
submitted.		 Executed as
resolved
The Company, Hon Hai Precision Industry
2020/03/06 4th interim meeting of the 16th
Board of Directors		 Co., Ltd. and Hua-Chuang Automobile
Information Technical Center Co., Ltd.		 Approved as
submitted.		 Executed as
resolved
signedajointventureagreement
2020/03/06
4th interim meeting of the 16th
Board of Directors		 The Company's capital increase in Hua-
Chuang Automobile Information Technical
CenterCo.,Ltd.		 Approved as
submitted.		 Executed as
resolved
2020/03/06 4th interim meeting of the 16th
Board of Directors		 The Company's plan to lend funds of
RMB1 billion to Luxgen (Hangzhou) Motor
Sales Co.,Ltd
Approved as
submitted.		 Executed as
resolved
2020/03/06
4th interim meeting of the 16th
Board of Directors		 The Company's bank facility application for
2020		 Approved as
submitted.		 Executed as
resolved
2020/03/06 4th interim meeting of the 16th
Board of Directors		 Evaluation of the Independence and
competence of CPAs and their appointment
and professional feesfor 2020		 Approved as
submitted.		 Executed as
resolved
2020/03/06
4th interim meeting of the 16th
Board of Directors		 The Company’s Statement of Internal
ControlSystem for 2019		 Approved as
submitted.		 Executed as
resolved
2020/03/30
5th interim meeting of the 16th
Board of Directors		 The Company’s capital increase to Luxgen
(Hangzhou)MotorSales Co.,Ltd		 Approved as
submitted.		 Executed as
resolved

26 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The Company’s
Board of Independent
handling of
Directors Board of Directors Summary of the motion
Directors’
independent
Date opinions directors’
opinions

5th interim meeting of the 16th		 The Company’s 2019 final operating Approved as Executed as
2020/03/30

Board of Directors		 reports submitted. resolved

5th interim meeting of the 16th		 The Company's accumulated losses Approved as Executed as
2020/03/30

Board of Directors		 amounting to one-halfofthe paid-incapital. submitted. resolved

5th interim meeting of the 16th		 Approved as Executed as
2020/03/30 The Company’s 2019 losses make-up

Board of Directors		 submitted. resolved

5th interim meeting of the 16th		 The Company’s capital reduction to make Approved as Executed as
2020/03/30

Board of Directors		 uplosses submitted. resolved
The distribution of profit sharing

5th interim meeting of the 16th		 Approved as Executed as
2020/03/30
remuneration to employees and directors

Board of Directors		 submitted. resolved
for 2019

5th interim meeting of the 16th		 The Company's endorsement and guarantee Approved as Executed as
2020/03/30

Board of Directors		 facilityfor 2020 submitted. resolved

5th interim meeting of the 16th		 The Company's sale of land No. 274, Approved as Executed as
2020/03/30

Board of Directors		 Bogongkeng Section, Sanyi Industrial Zone submitted. resolved

5th interim meeting of the 16th		 The Company’s issuance of Letter of Approved as Executed as
2020/03/30

Board of Directors		 Operating Support(LOS).in 2020. submitted. resolved
The Company issued a Letter of
Commitment and a Letter of Operating

6th interim meeting of the 16th		 Approved as Executed as
2020/05/08
Support (LOS) for the adjustment of Hna-

Board of Directors		 submitted. resolved
Chuang Automobile Information Technical
CenterCo.,Ltd.
The Company’s plan to sell the land of

6th interim meeting of the 16th
Jianxing Section 146 and 147 and Jianxing		 Approved as Executed as
2020/05/08

Board of Directors		 Section 81 and 82 of Nantou City, Nantou submitted. resolved
County

7th interim meeting of the 16th		 The Company's use of land and buildings as
Approved as		 Executed as
2020/08/10

Board of Directors		 mortgages to obtainaloan facility. submitted. resolved
Interest rate adjustment of the Company's

7th interim meeting of the 16th		 Approved as Executed as
2020/08/10
funds lent to Luxgen (Hangzhou) Motor

Board of Directors		 submitted. resolved
Sales Co.,Ltd
The Company’s issuance of a Letter of

7th interim meeting of the 16th
Operating Support (LOS) for the bank		 Approved as Executed as
2020/08/10

Board of Directors		 facility of US$5.1 million for Yulon Motor submitted. resolved
Finance (China)Limited.

7th interim meeting of the 16th		 Cash capital increase by the Company to its Approved as Executed as
2020/08/10

Board of Directors		 subsidiary,Luxgen MotorCo.,Ltd. submitted. resolved
Amendments to the “Internal Control

7th interim meeting of the 16th		 System“ and “Implementation Rules for Approved as Executed as
2020/08/10

Board of Directors		 Internal Audit“ of the Company's stock submitted. resolved
affairs.

8th interim meeting of the 16th		 The Company’s donation to the Wu Shun- Approved as Executed as
2020/11/10

Board of Directors		 Wen’s News ScholarshipFoundation submitted. resolved
The Company’s issuance of a Letter of
Operating Support (LOS) for the bank

8th interim meeting of the 16th		 Approved as Executed as
2020/11/10
facilities of RMB173.4 million and

Board of Directors		 submitted. resolved
US$2.55 million for Yulon Motor Finance
(China)Limited.

8th interim meeting of the 16th		 Approved as Executed as
2020/11/10 The Company’s 2021 audit plan

Board of Directors		 submitted. resolved

Annual Report 2020 27

Corporate governance report

Board of Directors.

  • Please refer to Note 3 for the implementation of the Board of Directors' evaluation.

  • IV. Evaluation of the current and most recent year's objectives for enhancing the functions of the Board of Directors (e.g., establishing an audit committee, enhancing information transparency, etc.) and their implementation. 1. In addition to the establishment of the Remuneration Committee as approved by the Board of Directors on August 26, 2011, the Company also elected two independent directors for the 14th term at the 2013 regular shareholder meeting in accordance with Article 14-2 of the Securities and Exchange Act, with a view to strengthening the functions of the Board of Directors and enhancing the effectiveness of corporate governance, and established an Audit Committee in July 2016 to replace the former supervisory system to strengthen the internal control mechanism of the Company.

  • In addition, in order to comply with the international trend of corporate governance, the Company revised the “Procedure for Board of Directors Meetings“ and “Audit Committee Charter“ on March 6, 2020, in order to continuously improve corporate governance.

  • To enhance the transparency of information, the Company announces important resolutions on the Market Observation Post System (MOPS) immediately after the Board of Directors' meetings and updates the relevant organizational rules on the Company's website to protect shareholders' rights and interests and to enhance investors' understanding and recognition of the Company.

  • The “Board of Directors Evaluation Measures“ were approved on November 9, 2015 and the second amendment was completed on May 10, 2019. The evaluation of the Board of Directors, board members and functional committees for 2020 was completed in March 2021. The internal evaluation results range from 95.76 to 100 points based on the operation of the Board of Directors, the self-evaluation of the board members, and the operation of the Audit Committee and the Remuneration Committee. Based on the results of the Board of Directors' performance evaluation for 2020, the overall operation of the Board of Directors is good.

  • Note 1: If directors and supervisors are institutions, names of shareholders and the representative of the institutions shall be disclosed. Note 2: (1) In the event that directors or supervisors leave before a year is completed, the date when they leave should be indicated in the memo column. The actual attendance (seated) rate (%), on the other hand, shall be calculated by the number of board of directors meetings held during service and the frequency number of attendance (being seated) in the meetings.

    • (2) Before a year is completed, upon any re-election of directors or supervisors, names of the said directors/supervisors, new and old, shall be listed and it shall be specified in the remark column that a specific director or supervisor is old, new, or re-elected, and the date of re-election. The actual attendance (seated) rate (%), on the other hand, is to be calculated by the number of board of directors meetings held during service and the frequency number of attendance (being seated) in the meetings.

Note 3: Information on the operation of the Board of Directors

Evaluation Evaluation period Evaluation scope Evaluation Evaluation content
periodicity
(Note 2)
(Note 3)		 method (Note 5)
(Note 1) (Note 4)
Once a year January 1, 2020 to
December 31, 2020		 1. Board of
Directors
2. Board member
3. Audit
Committee
4. Remuneration
Committee		 Self-evaluation 1. Evaluation of the operation of the
Board of Directors
(1) Participation in the operation of
the Company
(2) Quality of the Board of Directors'
decision making
(3) Composition and structure of the
Board of Directors
(4) Election and continuing education
of the directors
2. Self-evaluation of directors
(1) Participation in the operation of
the Company
(2) Election and continuing education
of the directors
(3) Internal control
(4) Understanding of the Company
and perception of responsibilities
3. The operations of the Audit
Committee and the Remuneration
Committee
(1) Participation in the operation of
the Company
(2) Improvement in the quality of the
committee's decision-making.
(3) Composition and structure of the
committee
(4) Appointment of the committee
member

Note (1): The periodicity of execution of the Board of Directors' evaluation, e.g., once a year.

28 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Note (2): The period covered by the Board of Directors' evaluation, e.g., the evaluation of the Board of Directors’ performance from January 1, 2020 to December 31, 2019.

  • Note (3): The scope of evaluation includes the performance evaluation of the board of directors, individual board members and functional committees.

  • Note (4): The method of evaluation include internal self-evaluation by the board of directors, self-evaluation by board members, peer evaluation, appointment of external professional organizations, experts or other appropriate methods for performance evaluation.

  • Note (5): The evaluation content includes at least the following items according to the scope of the evaluation:

  • (1) Evaluation of the performance of the board of directors: at least the participation in the Company's operations, the quality of board decisions, the composition and structure of the board of directors, the selection and continuing education of directors, and internal control, etc.

  • (2) Performance evaluation of individual board members: at least including the alignment of the Company's objectives and tasks, the directors' awareness of their duties and responsibilities, their participation in the Company's operations, internal relationship management and communication, the directors' professionalism and continuing education, and internal control.

  • (3) Performance evaluation of functional committees: participation in company operations, awareness of functional committee responsibilities, quality of functional committee decisions, composition and selection of functional committee members, internal control, etc.

  • (II) The operation of the Audit Committee: The Audit Committee of the Company was established on July 1, 2016 to oversee the quality and integrity of the Company's performance in relation to the fair presentation of financial statements, the effective implementation of internal controls, the selection (dismissal) of CPAs, independence, competence, and compliance with relevant laws and regulations.

Information on the operation of the Audit Committee

The Audit Committee met seven times (A) in the most recent year to consider matters including audit of financial statements, assessment of the effectiveness of the internal control system, significant asset or derivative transactions, significant funds lending and endorsement and guarantees, legal compliance and appointment of CPAs, their independence, performance evaluation and professional fees, and the attendance of independent directors as follows.

Title Name Number of actual
attendees(B)		 Number of
attendance by
proxy		 Attendance rate (%) (B/A)
(Note)
Remarks
Independent
Director		 Yi-Hong
Hsieh		 7 0 100% Re-elected on 2019/7/1,
with legalexpertise
Independent
Director		 Zhongqi Zhou 7 0 100% Re-elected on 2019/7/1,
with management and
financialexpertise
Independent
Director		 Yen-Chin,
Tsai		 6 1 85.7% Re-elected on 2019/7/1,
with financialexpertise
Other notes:

  • I. For Audit Committee meetings that meet any of the following descriptions, state the date and session of board of directors meeting held, the discussed agenda, the Audit Committee's resolution and how the Company has responded to Audit Committee's opinions:

  • (I) The content of the particulars inscribed in Article14-5 of the Securities and Exchange Act.

The Company’s
Date of Audit
handling of the
board Board of Directors Summary of the motion Committee’s Audit
meeting opinion Committee’s
opinion
2020/01/16 2nd interim meeting of the
2nd Audit Committee		 The Company issued a Letter of Operating
Support (LOS) for the amount adjustment
of bank facility of Hua-Chuang Automobile
Information TechnicalCenterCo.,Ltd.
Approved as
submitted.		 Executed as
resolved
The strategic cooperation agreement
3rd interim meeting of the Approved as Executed as
2020/02/07
between the Company and Hon Hai
2nd Audit Committee submitted. resolved
Precision Industry Co.
2020/03/05 4th interim meeting of the
2nd Audit Committee		 The Company's plan to lend funds of
RMB1 billion to Luxgen (Hangzhou)
MotorSales Co.,Ltd		 Approved as
submitted.		 Executed as
resolved

Annual Report 2020 29

Corporate governance report

The Company’s
Date of Audit
handling of the
board Board of Directors Summary of the motion Committee’s Audit
meeting opinion Committee’s
opinion
The Company, Hon Hai Precision Industry
Co., Ltd., a Hon Hai's 100% owned
4th interim meeting of the Approved as Executed as
2020/03/05 subsidiary and Hua-Chuang Automobile
2nd Audit Committee submitted. resolved
Information Technical Center Co., Ltd.
signed a joint venture agreement.
2020/03/05 4th interim meeting of the
2nd Audit Committee		 The Company's capital increase in Hua-
Chuang Automobile Information Technical
CenterCo.,Ltd.		 Approved as
submitted.		 Executed as
resolved
4th interim meeting of the The Company's bank facility application Approved as Executed as
2020/03/05
2ndAudit Committee for 2020 submitted. resolved
Evaluation of the Independence and
4th interim meeting of the Approved as Executed as
2020/03/05
competence of CPAs and their appointment
2nd Audit Committee submitted. resolved
and professional feesfor 2020
4th interim meeting of the The Company’s Statement of Internal Approved as Executed as
2020/03/05
2ndAudit Committee ControlSystem for 2019 submitted. resolved
5th interim meeting of the The Company's sale of land No. 274, Adopted as Executed as
2020/03/25
2ndAuditCommittee Bogongkeng Section, Sanyi Industrial Zone submitted resolved
5th interim meeting of the The Company's bank facility adjustment for
Adopted as		 Executed as
2020/03/25
2ndAuditCommittee 2020 submitted resolved
5th interim meeting of the The Company’s capital increase to Luxgen Approved as Executed as
2020/03/25
2ndAudit Committee (Hangzhou)MotorSales Co.,Ltd submitted. resolved
5th interim meeting of the The Company’s 2019 final operating Approved as Executed as
2020/03/25
2ndAuditCommittee reports submitted. resolved
The Company's accumulated losses
5th interim meeting of the Approved as Executed as
2020/03/25
amounting to one-half of the paid-in
2nd Audit Committee submitted. resolved
capital.
5th interim meeting of the Approved as Executed as
2020/03/25 The Company’s 2019 losses make-up
2ndAuditCommittee submitted. resolved
5th interim meeting of the The Company’s capital reduction to make Approved as Executed as
2020/03/25
2ndAuditCommittee uplosses submitted. resolved
5th interim meeting of the The Company's endorsement and guarantee Approved as Executed as
2020/03/25
2ndAudit Committee facilityfor 2020 submitted. resolved
5th interim meeting of the The Company’s issuance of Letter of Approved as Executed as
2020/03/25
2ndAuditCommittee Operating Support(LOS).in 2020. submitted. resolved
The Company issued a Letter of
Commitment and a Letter of Operating
6th interim meeting of the Approved as Executed as
2020/05/07
Support (LOS) for the adjustment of Hna-
2nd Audit Committee submitted. resolved
Chuang Automobile Information Technical
CenterCo.,Ltd.
The Company’s plan to sell the land of
6th interim meeting of the
Jianxing Section 146 and 147 and Jianxing		 Approved as Executed as
2020/05/07
2nd Audit Committee Section 81 and 82 of Nantou City, Nantou submitted. resolved
County
7th interim meeting of the The Company's use of land and buildings Approved as Executed as
2020/08/06
2ndAuditCommittee asmortgagesto obtain a loan facility. submitted. resolved
Interest rate adjustment of the Company's
7th interim meeting of the Approved as Executed as
2020/08/06
funds lent to Luxgen (Hangzhou) Motor
2nd Audit Committee submitted. resolved
Sales Co.,Ltd
The Company’s issuance of a Letter of
7th interim meeting of the
Operating Support (LOS) for the bank		 Approved as Executed as
2020/08/06
2nd Audit Committee facility of US$5.1 million for Yulon Motor submitted. resolved
Finance (China)Limited.
7th interim meeting of the Cash capital increase by the Company to its Approved as Executed as
2020/08/06
2ndAudit Committee subsidiary,Luxgen MotorCo.,Ltd. submitted. resolved
8th interim meeting of the The Company’s donation to the Wu Shun- Approved as Executed as
2020/11/09
2ndAuditCommittee Wen’s News ScholarshipFoundation submitted. resolved

30 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

II.
III.
The Company’s
Date of Audit
handling of the
board Board of Directors Summary of the motion Committee’s
Audit
meeting opinion Committee’s
opinion
The Company’s issuance of a Letter of
Operating Support (LOS) for the bank
8th interim meeting of the Approved as Executed as
2020/11/09
facilities of RMB173.4 million and
2nd Audit Committee submitted. resolved
US$2.55 million for Yulon Motor Finance
(China)Limited.
8th interim meeting of the Approved as Executed as
2020/11/09 The Company’s 2021 audit plan
2ndAudit Committee submitted. resolved

Annual Report 2020 31

Corporate governance report

Note:

  • In the event that independent directors leave before a year is completed, the date when they leave should be indicated in the memo column. The actual attendance (seated) rate (%), on the other hand, shall be calculated by the number of Audit Committee meetings held during service and the frequency number of attendance (being seated) in the meetings.

  • Before the end of the year, if there was an election of directors and supervisors, the names of new and former directors and supervisors should be filled in and the company should remark in the remarks section whether the directors and supervisors are former, newly elected, or reelected, as well as the day of the reelection. The actual attendance rate to committee session (%) shall be calculated on the basis of the number of sessions held by the Audit Committee in such period and the attendance in person in the sessions.

(III) The performance of corporate governance and the variation with the “Corporate Governance Best Practice Principles for TWSE or TPEx Listed Companies“, and the reasons for the variation

Actualgovernance (Note1) The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation
1. Has the Company formulated and
disclosed its corporate governance
practice principles in accordance with the
“Corporate Governance Best Practice
Principles for TWSE/TPEx Listed
Companies“?
V		 The Company has established rules and regulations
related to corporate governance, such as the Rules of
Procedures for Shareholders' Meetings, the Procedure
for Board of Directors Meetings, the Procedures for
the Management of Confidential Documents, the
Procedures for Disclosure and Handling of
Confidential Information, the Standard Operating
Procedures for the Announcement Process, the
Internal Control System, the Procedures for the
Acquisition or Disposal of Assets, and the Procedures
for the Lending of Funds to Others, and the
implementation of the operating systems have all met
the requirements of the Principles. As of the date of
this annual report, the Company has prepared a
“Corporate Governance Best Practice Principles“ in
accordance with the “Corporate Governance Best
Practice Principles for TWSE/TPEx Listed
Companies“ and disclosed it on the Company's
officialwebsite.		 In compliance with the
“Corporate Governance
Best Practice Principles for
TWSE or TPEx Listed
Companies“.
2. The shareholdings structure and V
V
V
shareholders’ equity of the Company
(1) Has the Company established (1) The Company convenes shareholders' meetings In compliance with the
internal operating procedures to in accordance with the provisions of the “Corporate Governance
handle shareholder Company Act and related laws and regulations, Best Practice Principles for
recommendations, doubts, disputes and has established complete rules of meeting TWSE or TPEx Listed
and litigations, and implemented procedure, and implemented matters that should Companies“.
them in accordance with the be resolved by the shareholders' meetings in
procedures? accordance with the rules of procedure. In
addition, the Company has a spokesperson to
respond to shareholders' suggestions or questions,
and a dedicated stock affairs unit as the service
window to handle related matters.
(2) Does the Company have a list of the (2) The Company keeps track of the shareholdings of
In compliance with the
major shareholders who actually its directors, supervisors, managerial officers and “Corporate Governance
control the Company and those who major shareholders who hold 10% of the shares, Best Practice Principles for
ultimately have control over the and reports monthly on the changes in their TWSE or TPEx Listed
major shareholders? shareholdings and the setting or release of pledge Companies“.
of their shares in accordance with the regulations.
(3) Has the Company established and (3) The Company has established the “Handling In compliance with the
implemented risk control and Measures for Related Party Transactions“, “Corporate Governance
firewall mechanisms between “Operating Procedures for Lending Funds to Best Practice Principles for
affiliated companies? Others“, and “Management Measures for TWSE or TPEx Listed
Endorsement and Guarantee Management“ for Companies“.
business and financial transactions with affiliates,
and has also established the “Operating Measures
for the Management of Confidential Documents“,
“Operating Measures for Speaking and Handling
Confidential Information“, and “Standard
Operating Procedures for Announcement
Process“. We have established a good internal
mechanism for handlingand disclosingmaterial

32 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Actualgovernance (Note1) The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation

V		 information to avoid improper leakage of
information and ensure the consistency and
accuracy of information released to the outside
world, and follow the relevant regulations to
establish a risk control and firewall mechanism.
(4) Has the Company formulated (4) The Company has established the “Management In compliance with the
internal regulations to prevent Measures for Preventing Insider Trading“, which “Corporate Governance
insiders from trading securities using clearly regulate the targets of insider trading, the Best Practice Principles for
undisclosed information on the filing and announcement of insider information, TWSE or TPEx Listed
market? the disclosure of material information, and the Companies“.
handling of such disclosure. The Measures are
also posted onthe Company's website.
3. Composition and responsibility of the V
Board of Directors
(1) Has the Board of Directors (1) The Company's Corporate Governance Best In compliance with the
formulated and implemented a Practice Principles have stipulated that the “Corporate Governance
diversity policy on membership? composition of the Board of Directors should be Best Practice Principles for
determined with diversity in consideration, and TWSE or TPEx Listed
has formulated appropriate diversity policy (basic
Companies“.
criteria and values, professional knowledge and
skills...) with respect to its operations, business
model and development needs and implemented
them. In addition to one female director, Yen
Chen Li-Lien, the directors of the 16th Board of
Directors of the Company have various
professional abilities: the Chairperson, Yen Chen
Li-Lien, the Vice Chairman, Tso, Chi-Sen, and
the directors, Shin-I Lin and Zhen-Xiang Yao,
who are good at leadership, operational
judgment, business management, crisis
management, and have industry knowledge and
international market perspective.
With expertise in the area of legal affairs, Jack,
J.T .Huang, Director, and Yi-Hong Hsieh,
Independent Director; with expertise in the area
of economic and financial affairs, Leung Chang,
Director, and Zhongqi Zhou and Yen-Chin, Tsai,
Independent Directors.
There are 3 Independent Directors(33%), one’s
seniority is between 1 to 3 years, one’s seniority
is between 3 to 6 years, the other one’s seniority
is above 6 years.
2 Director’s age are over 70 years old; 6
Director’s age are between 60 to 69 years old; 1
Director’s age is under 60 years old.
The Company also places emphasis on the
professional knowledge and skills of its Board of
Directors. In addition to expertise in the
automobile industry and management, the
percentage of directors with expertise in finance
and law is expected to reach 20%. The percentage
of financial professional directors in the 16th
Board of Directors of the Company is 33%, while
the percentage of legal professional directors
reaches 22% with the addition of the new director
of the 16th term, Jack, J.T .Huang.
(2) In addition to the Remuneration V (2) Considering the size of the Company's Board of In compliance with the
Committee and the Audit Committee Directors and the number of independent
“Corporate Governance
established in accordance with law, directors, the Company has established a
Best Practice Principles for
has the Company voluntarily set up Remuneration Committee as required by law at
TWSE or TPEx Listed
other functional committees? this stage, and has set up internal control Companies“.
management mechanisms and project, operation
and decision-making meetings for each business.
Through such meetings, important issues are
evaluated to provide the Board of Directors with

Annual Report 2020 33

Corporate governance report

Actualgovernance (Note1) The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation
input to carry out its oversight responsibilities.
The Company has set up an audit committee to
replace the supervisory system on July 1, 2016,
and the remaining functional committees may be
set up in accordance with the corporate
management plan.
(3) Whether the Company has formulated V (3) On November 9, 2015, the Company adopted the In compliance with the
board performance evaluation “Board of Directors Evaluation Measures“, which
“Corporate Governance
measures and methods, conducts stipulates that the Company's Board of Directors Best Practice Principles for
performance evaluations annually shall conduct a performance evaluation of the TWSE or TPEx Listed
and regularly, and reports the results Board of Directors and its members at least once Companies“.
of performance evaluations to the a year as a reference for the election of directors
Board of Directors, and uses them as and the remuneration of directors, and that the
a reference for individual directors' evaluation shall be conducted by an external
remuneration and nomination for professional and independent organization or a
reappointment? team of external experts and scholars at least
once every three years. In December 2018, the
Company commissioned an outside party to
conduct the evaluation of the effectiveness of the
Board of Directors, the results of which were
reported to the Board of Directors in March 2019.
The internal evaluation period of the Board of
Directors shall be conducted at the end of each
year to evaluate the performance of the current
year in accordance with the Measures.
In May 2019, the Company completed the
amendment of certain provisions of the “Board of
Directors Evaluation Measures“, which was
approved by the Board of Directors.
The Company completed the evaluation of the
Board of Directors, Board members and
functional committees for 2020 in March 2021,
and the results of the internal evaluation and the
directions for further enhancement in 2021 were
presented at the Board of Directors meeting held
in March 2021.
The evaluation was conducted by means of an
internal questionnaire. The evaluation was based
on the 4 parts of the operation of the Board of
Directors, the participation of the directors, the
operations of the Audit Committee and the
Remuneration Committee; with the evaluation of
the operation of the Board of Directors and their
own participations by the directors, the
evaluation of the operations of the Audit
Committee and the Remuneration Committee by
the committee members.
The evaluation results ranged from 95.76 to 100
points.
Based on the results of the Board of Directors'
performance evaluation for 2020, the overall
operation of the Board of Directors is good.
(4) Does the Company regularly evaluate V (4) We have developed an evaluation form for the In compliance with the
the independence of the attesting independence and competence of CPAs with “Corporate Governance
CPAs? reference to the Code of Professional Ethics for Best Practice Principles for
Certified Public Accountants, No. 10, “Integrity, TWSE or TPEx Listed
Impartiality, Objectivity and Companies“.
Independence,“ which includes the size of the
CPA firm, the number of years of continuous
audit services provided, and the nature of non-
audit services provided.
The Board of Directors annually evaluates the
independence and competence of CPAs by
obtaining a statement of independence from the
CPA firm on the nature and extent of non-audit
services provided, the auditfee, whetherthereis

34 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation
no violation of the Certified Public Accountant
Act, the quality of audit services, whether the
statutory statements are completed on time, and
whether there is communication with
management, internal audit officer and directors.
The evaluation of the independence and
competence of CPAs in Year 2020 was completed
and approved by the Board of Directors in March
2021.
4. Does the Company as a listed company v The corporate governance officer of the Company In compliance with the
have suitable and appropriate number of was appointed as approved by the Board of Directors “Corporate Governance
corporate governance personnel and on May 10, 2019, and is the Assistant VP of the Best Practice Principles for
appoint a corporate governance officer to Finance planning department, who has more than 3 TWSE or TPEx Listed
be responsible for corporate governance years of experience in financial and meeting Companies“.
related matters (including but not limited administration in public companies, and is in
to providing information necessary for compliance with the establishment criteria. A
directors and supervisors to perform their corporate governance group has also been established
business, assisting directors and to handle corporate governance related matters.
supervisors to comply with laws and The corporate governance officer is responsible for
regulations, conducting board meeting corporate governance-related matters and the
and shareholder meeting related matters protection of shareholders' rights and interests, as well
in accordance with law, handling as strengthening the functions of the Board of
company registration and alteration Directors, including providing information necessary
registration, and preparing minutes of for directors and independent directors to carry out
board meetings and shareholder their business, assisting directors and independent
meetings, etc.)? directors to strictly comply with the law, handling
matters related to meetings of the Board of Directors
and shareholders' meetings in accordance with the
law, handling business registrations and change
registrations, and preparing minutes of Board of
Directors meetings and shareholder meetings, etc.
The execution of the function for 2020:
1. Assisted independent directors and regular
directors in carrying out their duties, provided
necessary information and arranged for directors'
further education.
2. Assisted in the proceedings and resolutions of the
board of directors meetings and shareholders'
meetings
3. Managed 2020 annual directors' liability
insurance.
4. In order to implement corporate governance, a
performance evaluation of the Board of Directors
and Directors for 2020 was conducted and
presented to the Board of Directors in March
2021.
5. In 2020, the Company held four corporate
briefings to disclose the necessary information to
market investors, so that the shareholders' rights
and interests were well protected.
6. The regular shareholders' meeting was held in
June 2020, and the date of the shareholders'
meeting was registered, and the notice of the
meeting, the meeting handbook and the minutes
of the meeting were prepared within the legal
period.
7. Notified the directors of the proposed agenda 7
days in advance of the board meeting, convened
the meeting and provided meeting materials, and
completed and sent the minutes of the board
meeting afterwards.
Continuing education in 2020:
1. Changes in the 5G Era: Industry Upgrades,
Future Business Applications and the New
Normal in the Post-Epidemic Era(3 hours)

Annual Report 2020 35

Corporate governance report

Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation
2. A Study of Directors' Operational Risks and
Legal Liabilities under the Latest Corporate
Governance Blueprint (3 hours)
3. Advanced Seminar on Directors' and Supervisors'
(including Independent) and Corporate
Governance Executives' Practices ~ [Case
Studies on the Establishment of Directors' and
Supervisors' Breach of Trust and Special Breach
of Trust] (3 hours)
4. Advanced Seminar on Directors' and Supervisors'
(including Independent) and Corporate
Governance Executives' Practices ~ [Analysis of
enterprise financial information and decision-
makingapplication](3 hours)
5. Has the Company established V Stakeholders (customers, employees, shareholders, In compliance with the
communication channels with suppliers, distributors, community .....) can “Corporate Governance
stakeholders (including but not limited to communicate with the Company through the business Best Practice Principles for
shareholders, employees, customers and departments or spokesperson, and we have set up an TWSE or TPEx Listed
suppliers, etc.) and a special section for investor relations contact window on our website to Companies“.
stakeholders on the Company's website, provide information , or they can contact us by phone,
and responded appropriately to important fax or e-mail whenever necessary among these
corporate social responsibility issues that smooth channels.
are ofconcernto stakeholders?
6. Has the Company appointed a V In order to have good control of the list of the major In order to have good
professional stock affairs agency to shareholders who actually control the Company and control of the list of the
handle matters for shareholder meetings? those who ultimately have control over the major major shareholders who
shareholders in a timely matter, the Company handles actually control the
its own stock affairs. To ensure that shareholders' Company and those who
meetings are held in a legal, effective and safe ultimately have control
manner, an internal control system and internal audit over the major shareholders
procedure of stock affairs have been established, and in a timely matter, the
the Company is subject to regular external audits by Company handles its own
the Taiwan Depository & Clearing Corporation every stock affairs.
year.
7. Information disclosure V
V		 V
(1) Has the Company set up a website to (1) The Company has set up a website to disclose In compliance with the
disclose finance and business matters financial and operational information in a timely “Corporate Governance
and corporate governance manner in accordance with relevant laws and Best Practice Principles for
information? regulations. The Company’s website: TWSE or TPEx Listed
http://www.yulon-motor.com.tw Companies“.
(2) Has the Company adopted other (2) The Company has dedicated personnel In compliance with the
means of information disclosure responsible for the collection of corporate “Corporate Governance
(such as setting up an English information and disclosure of important matters, Best Practice Principles for
website, appointing dedicated and has implemented a spokesperson and acting TWSE or TPEx Listed
personnel responsible for the spokesperson system; corporate briefing Companies“.
collection and disclosure of presentations are also available on the website
Company information, implementing and an English website has been set up to achieve
a spokesperson system, posting the the purpose of full disclosure of information.
Company's earnings calls on its
website, etc.)? In compliance with the
(3) Does the Company publicly announce (3) The Company is currently making “Corporate Governance
and file annual financial statements announcements of its annual financial statements Best Practice Principles for
within two months after the end of and quarterly financial statements within the TWSE or TPEx Listed
the fiscal year, and the financial prescribed deadlines and will make efforts to file Companies“.
statements for the first, second and in advance.
third quarters and the monthly
operating status before the prescribed
deadline?
8. Does the Company have other important V 1. Employee rights and benefits In compliance with the
information that is helpful to understand Through regular interactions with labor “Corporate Governance
its implementation of corporate representatives, employee care activities, and Best Practice Principles for
governance (including but not limited to improvement on employee satisfaction, the TWSE or TPEx Listed
employee rights, employee care, investor Company strengthens the partnership with Companies“.
relations, supplier relations, stakeholder employees and ensure labor-management harmony.
rights, continuing education of directors 2. Employee care
and supervisors,Implementation of risk The Companycares for thephysical and mental

36 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) The variation with the The variation with the The variation with the The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
reasonsfor the variation
management policies and risk health, welfare and career development of its
measurement standards, implementation employees as indicated with the establishment of
of customer policies, the Company’s an employee welfare park, implementation of
purchase of liability insurance for employee health checkups, provision of group
directors and supervisors, etc.)? insurance for each employee, arrangement of after-
work leisure activities, organization of employee
family days and sports seasons, subsidized
employee travel, subsidized funds for club
activities, and provision of multiple learning
channels for employees, etc. For related measures,
please refer to Chapter 5, Section 5, “Labor
Relations“ of this annual report.
3. Investor relations
The Company has a stock affairs unit to serve as a
bridge between the Company and its shareholders,
and a spokesperson system to provide a window of
contact with shareholders and institutional
investors.
4. Supplier relations
The Company deals with our suppliers based on
the concept of co-existence and co-prosperity. We
have a dedicated internal unit to monitor and
counsel our suppliers, and we have an incentive
system to reward suppliers for their excellent
performance. The communication channels with
suppliers are also diversified and effective. In
addition, we have established the “Practice
Standards for Safety and Health Management of
Outsourcing Contractors“ and “Regulations for the
Management of Operations in Outsourcing
Contractors' Sites“, which require us to cooperate
with suppliers and follow the relevant regulations
on environmental protection, safety and health
issues, and jointly strive to enhance corporate
social responsibility.
5. Rights of Stakeholders.
The Company respects and protects the legitimate
rights and interests of the stakeholders, and
establishes different communication methods to
facilitate the effective communication of the
opinions ofeachstakeholder ina timelymanner.
6. The continuing education of directors and independent directors (2020.1.1 - 2020.12.31)
Training
Title Name Course organizer Course name Remarks
hours
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Corporate Governance
Normal in the Post-Epidemic Era; A Study of
Chairman Yen Chen Li-Lien 6
Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
Governance Blueprint
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Vice Corporate Governance
Normal in the Post-Epidemic Era; A Study of
Kuo-Rong Chen 6
Chairman Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
GovernanceBlueprint
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Corporate Governance
Normal in the Post-Epidemic Era; A Study of
Director Shin-I Lin 6
Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
Governance Blueprint

Annual Report 2020 37

Corporate governance report

Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) The variation with the The variation with the The variation with the The variation with the
Yes No “Corporate Governance
Best Practice Principles for
Items
Summary TWSE or TPEx Listed
Companies“, and the
r easonsfor the variation
Training
Title Name Course organizer Course name Remarks
hours
Securities and Futures New Challenges of Board of Directors from
Institute; Accounting Corporate Governance 3.0; Director
Director Liang Zhang 6
Research and Development Responsibility and Risk Management under the
Foundation Latest Corporate Governance Blueprint
Innovative Transformation in Post-Epidemic
Corporate Governance
Situations; Financial Situation Analysis in
Director Jack, J.T .Huang 6
Association in Taiwan Response to Stressful Events: The Case of
U.S.-China Trade War and Novel Coronavirus
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Corporate Governance
Normal in the Post-Epidemic Era; A Study of
Director Zhen-Xiang Yao 6
Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
Governance Blueprint
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Independent Corporate Governance
Normal in the Post-Epidemic Era; A Study of

Yi-Hong Hsieh		 6
Director Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
Governance Blueprint
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Independent Corporate Governance
Normal in the Post-Epidemic Era; A Study of

Zhongqi Zhou		 6
Director Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
GovernanceBlueprint
Changes in the 5G Era: Industrial Upgrading,
Future Business Applications and the New
Independent Corporate Governance
Normal in the Post-Epidemic Era; A Study of

Yen-Chin, Tsai		 6
Director Association in Taiwan Directors' Operational Risks and Legal
Liabilities under the Latest Corporate
Governance Blueprint
7. Implementation of risk management policies and risk measurement standards.
Please refer to the description under “Risk Management and Assessment“ in Chapter 7, Section 6 of this Annual Report.
8. Implementation of consumer or customer protection policies.
The Company has a 24-hour 0800 toll-free telephone consultation service line, which provides a comprehensive channel of consultation
and services for consumers' rights and interests, including inquiries about dealership business and service locations, new car information,
towing assistance, customer needs assistance, advice and complaint handling, etc.
9. The company purchase of liability insurance for directors and independent directors.
The directors and independent directors of the Company have performed their duties in good faith and with due care and attention, and no
litigation or illegal acts have occurred. However, in order to fully protect the interests of stakeholders, the Company appointed Tokio
Marine NewaInsurance Co.,Ltd. to planand underwrite the directors' liabilityinsurancefromJuly1,2020 to July1,2021.
10. Please describe the improvements that have been made in response to the corporate governance evaluation results issued by the
Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and propose priorities and measures for those not
yet improved: (Not applicable to the companies that are not subject to the evaluation)
Regarding the 7th Corporate Governance Evaluation result, the Company did not meet the scoring criteria in disclosure of the connection
between the performance appraisal and the remuneration of directors and managerial officers in the annual report. To enhance disclosure
transparency,the Companywould enumerate items for the aforementioned connection.

  1. Implementation of risk management policies and risk measurement standards.

  2. Please refer to the description under “Risk Management and Assessment“ in Chapter 7, Section 6 of this Annual Report.

  3. Implementation of consumer or customer protection policies.

  4. The Company has a 24-hour 0800 toll-free telephone consultation service line, which provides a comprehensive channel of consultation and services for consumers' rights and interests, including inquiries about dealership business and service locations, new car information, towing assistance, customer needs assistance, advice and complaint handling, etc.

    1. The company purchase of liability insurance for directors and independent directors. The directors and independent directors of the Company have performed their duties in good faith and with due care and attention, and no litigation or illegal acts have occurred. However, in order to fully protect the interests of stakeholders, the Company appointed Tokio Marine Newa Insurance Co., Ltd. to plan and underwrite the directors' liability insurance from July 1, 2020 to July 1, 2021.
    1. Please describe the improvements that have been made in response to the corporate governance evaluation results issued by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and propose priorities and measures for those not yet improved: (Not applicable to the companies that are not subject to the evaluation) Regarding the 7th Corporate Governance Evaluation result, the Company did not meet the scoring criteria in disclosure of the connection between the performance appraisal and the remuneration of directors and managerial officers in the annual report. To enhance disclosure transparency, the Company would enumerate items for the aforementioned connection.

  7. The company purchase of liability insurance for directors and independent directors.

Note 1: Whether the Company selects “Yes” or “No” in the operation condition, it should explain the situation in the summary space.

38 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • (IV) If the Company has a compensation committee, it should disclose its composition, duties and operations.

  • The composition and duties of the Remuneration Committee

The Remuneration Committee was established on August 26, 2011 as approved by the Board of Directors and is responsible for setting and regularly reviewing the policies, systems, standards and structures of annual and longterm performance goals and remuneration for the Company's directors and managerial officers, regularly evaluating the achievement of the Company's performance goals for its directors and managerial officers, and setting the content and amount of their individual remuneration. The members of the Remuneration Committee for the most recent year as follows:

Meet One of the Following Professional Meet One of the Following Professional Meet One of the Following Professional Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2) Status of independence (note 2)
Qualification Requirements, Together with
atLeastFiveYears Work Experience
Lecturer or A Judge, Public Work
Criteria
higher
Prosecutor,		 experience

ranking at		 Attorney,
required
Number of
the business, Certified Public for
other public
legal affairs, Accountant, or business,
companies

financial		 Other legal
where the
affairs, or Professional or affairs,
Role b i
accounting Technical financial memer s Remarks
(Note 1) l

department,		 Specialist Who affairs, aso a

1		 2 3 4 5 6 7 8 9 10 member of
or other has Passed a accounting,
their
departments National
or
remuneration

relating to		 Examination and corporate
committees
corporate been Awarded a operation
Name operation of Certificate in a
public and Profession
private Necessary for the
colleges and Business of the
universities Company
Independent
Director
Yi-Hong
Hsieh		 2
Independent
Zhongqi		 2
Director Zhou
Independent
Yen-Chin,		 2
Director Tsai

Note 1: Identity is known as director, independent director or others.

  • Note 2: place a “  ” in the box below if the member met the following conditions during the time of active duty and two years prior to the elected date.

  • (1) Not employed by the company or any of its affiliated companies.

  • (2) Not a director or supervisor of the company or its affiliates (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (3) Not a natural person, spouse, underage children, or under the title of a third party who holds more than 1% of the outstanding shares issued by the Company or among the top 10 natural person shareholders.

  • (4) Not the spouse, the kindred to the second tier under the Civil Code or the direct kin within the third tier under the Civil Code of the managers stated in (1) or other roles stated in (2), (3).

  • (5) Not a director, supervisor or employee of an institutional shareholder directly holding more than 5% of the outstanding shares issued by the company, or a director, supervisor or employee of an institutional shareholder who is among the top 5 shareholders, or a representative of an institutional shareholders appointed as the director or supervisor of the company according to paragraph 1 or 2, Article 27, Company Act (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (6) Not a director, supervisor or employee of a company controlling over one half of the company’s director seats or voting shares under one person (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (7) Not a director of a company or institution whose chairperson and president or equivalent role is the same person or its spouse (except for independent directors of the company and its parent company, subsidiaries or the subsidiaries of the same parent company established in accordance with this Act or the local laws).

  • (8) Directors, supervisors, managers or shareholders holding more than 5% of shares in specific companies or institutions that do not have financial or business dealings with the company (but individual directors appointed according to local laws and regulations holding other positions in possession of more than 20% and less than 50% of issued shares belonging to specific companies or institutions that are parent, subsidiary, or belonging to the same parent company are not applicable).

  • (9) Business owners, partners, directors (directors), supervisors (supervisors), managers and their spouses, or professionals, sole proprietorships, partnerships, companies or institutions involved in commercial, legal, financial, accounting services did not provide audits or accumulate NTD$ 500,000 compensation over the past 2 years. This restriction does not apply, however, to a member of the remuneration committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Securities and Exchange Act or to the Business Mergers and Acquisitions Act or related laws or regulations.

  • (10) Does not meet any descriptions stated in Article 30 of The Company Act.

Annual Report 2020 39

Corporate governance report

  1. Information on the operation of the Remuneration Committee

  2. (1) The Remuneration Committee of the Company consists of 3 members.

  3. (2) Term of office of the current Committee: The term of office of the Fourth Remuneration Committee is from July 1, 2019 to June 30, 2022. As of April 30, 2021, the Fourth Remuneration Committee met four times (A), and the qualifications and attendance of the members were as follows

Title Name Number of actual
attendees(B)		 Number of
attendance by
proxy		 Attendance rate
(%) (B/A) (Note 1)
Remarks (Note 2)
Convener Yi-Hong Hsieh 4 0 100% Re-elected on 2019/7/1,
with legalexpertise
Committee
member		 Zhongqi Zhou 4 0 100% Re-elected on 2019/7/1,
with management and
financialexpertise
Committee
member		 Yen-Chin, Tsai 4 0 100% Re-elected on 2019/7/1,
with financialexpertise

Other notes:

  1. If the Board of Directors does not adopt or amend the recommendations of the Remuneration Committee, it should state the date, period, proposal content, resolution of the board, and its handling of the committee’s opinions (if the remuneration approved by the board is better than the recommendation proposed by the committee, the difference and reasons should be stated):

No such matter.

  1. For the proposals by the Remuneration Committee. If any members have objections or reservations with records or written statements, the date, period, proposal content, the opinions of all members, its handling of the members’ opinions should be stated:

No such matter.

  1. The date and period of the Remuneration Committee meeting in 2020, the content of the motion, the result of the resolution of the Committee and the Company's handling of the opinions of the Committee.
Date of the
Remuneration
Committee
meeting
Session of the
Remuneration
Committee meeting		 Summary of the motion Remuneration
Committee’s
opinion
The Company’s
handling of the
Remuneration
Committee’s opinion
2020/3/25 2nd meeting of the 4th
Remuneration
Committee
The distribution of profit sharing
remuneration to employees and directors
for 2019
Amendment to the Remuneration		 Approved as
submitted.
Approved as		 Presented
to
the
Board of Directors
and approved by all
attending directors.
Presented
to
the
Board of Directors



Committee Charter submitted. and approved by all
attending directors.
2020/11/9 3rd meeting of the 4th
Remuneration
Committee
2021 calendar of the Remuneration
Committee		 Approved as
submitted.		 Executed as resolved

Note 1: In the event that Remuneration Committe members leave before a year is completed, the date when they leave should be indicated in the memo column. The actual attendance (seated) rate (%), on the other hand, shall be calculated by the number of Remuneration Committee meetings held during service and the frequency number of attendance (being seated) in the meetings.

Note 2: Before the end of the year, if there was an re-election of the Remuneration Committee, the names of new and former Remuneration Committee members should be filled in and the company should remark in the remarks section whether the members are former, newly elected, or reelected, as well as the day of the reelection. The attendance rate to committee session (%) shall be calculated on the basis of the number of sessions held in such period and the actual number of presence in the sessions.

40 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(V) The Performance of Corporate Social Responsibility and Variation with the Corporate Governance Best Practice Principles for TWSE/TPEx-Listed Companies, and the reason for the variation.

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
I.
Does the Company perform risk
assessment with respect to the
issues of environment, social and
corporate governance related to the
business operation of the Company
based on the materiality principle
and establish relevant risk
management policies or strategies?
(Note 3)		 V In order to maintain stable operations and reduce
operational risks, the Company has responsible
units for management and auditing in the areas
of management, safety and health, environment,
and information, and the audit office will include
major auditing items in the annual audit plan
based on risk assessment results, perform audits
of the internal control system, and disclose the
audit results in the audit report, and follow the
Plan→Do→Check→Action (P.D.) to track
improvements. C.A.) to track and improve.
I.
Operational risk management
1. The financial planning department is
responsible for the planning of the
Company's business strategies, control of
goal achievement, operating capital
management and risk assessment.
2. The finance planning department and the
related responsible units provide
information from time to time on industry
trends, important domestic and foreign
policies and laws, technological changes,
etc. to assist management in making
decisions and reducing operational risks.
3. Control the annual KPI achievement rate of
each unit of the Company and its invested
subsidiaries to reduce the risk of operational
performance.
II. Foreign exchange risk management
1. The Company has established a foreign
exchange hedging operation group to be
responsible for foreign exchange hedging
operations in order to reduce the risk of
exchange rate changes.
2. We have an exchange rate risk sharing
measure with Nissan Motor Co., Ltd., a
major material supplier, to ensure stable and
reasonable material supply prices.
III. safety and health risk management
1. Risk management is coordinated and
executed by the Safety and Health Office.
2. Safety and health audits are conducted by
the president, plant manager, managers, and
department heads on a regular basis to
discover potential risk conditions and to
identify opportunities for improvement in
advance to avoid risks.
3. The safety and health office will be
responsible for tracking, statistics and
management of the defects inspected until
they are completely improved.
4. In addition to the company's internal safety
audits, the scope of audits has been
expanded to include the eight external third-
party companies since 2015, and the “Third-
Party Supplier Value Chain
Committee“ project has been established to
evaluate and counsel, and to track and
request third-party companies to implement
safety audits, and to report the improvement
progress ofeachsupplier tothe president at		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.

Annual Report 2020 41

Corporate governance report

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
the monthly promotion meeting and the
monthly environmental safety meeting to
ensure that there are no risk incidents inside
or outside the Company.
IV. Climate change risk management
The Company is concerned about the issue of
climate change and is actively identifying and
responding to the risks and impacts of extreme
weather.
1. Develop company-wide energy saving and
carbon reduction, greenhouse gas
reduction... KPI, and monthly review and
control the achievement rate and set
improvement measures.
2. Upgrade the equipment and optimize the
energy efficiency of the process.
3. Established the “Energy Saving Service
Group“ in 2012, and set up the “Energy
Saving Committee“ and the “Value Chain
Committee of Third-Party Suppliers“ in
2018 to guide third-party companies in their
efforts to protect the environment and
actively create a green supply chain.
4. Develop zero-carbon emission smart electric
vehicles and cooperate with Hon Hai to
provide a complete solution of electric
vehicle chassis and key component modules
to shorten the development process of future
electric vehicles and enable electric vehicle
products to enter the market more quickly.
V. Information risk management
1. Compliance with information security
management system: The Company has
established relevant internal operation
regulations in accordance with Article 9,
“Computerized Information System
Processing,“ of the “Regulations Governing
Establishment of Internal Control Systems
by Public Companies“ in order to reduce the
risk of unknown information security threats
arising from information technology
applications and environmental changes.
2. The Company continues to improve its
information security governance system and
enhance its information security
capabilities. All information operations must
not only comply with information security
standards and procedures, but also with
information security laws and regulations.
3. Since 2017, we have followed the Group's
“Information Security Development
Blueprint“ and completed the “Information
Security Risk Internal Control Management
Measures“ plan in 2018 to implement
information security risk management.
Refer to the description “Risk Management” and
“Operate
and
Communicate
with
the
Stakeholders”in the Company’s CSR report.
II. Has the Company set up a full-time
(part-time) unit to promote
corporate social responsibility,
together with senior management
authorized by the Board of
Directors to handle related matters
andreport tothe board on the		 V The CSR Committee was established in July
2018, with the president as the chairman, and the
Bureau of Affairs was set up to assist the
chairman in promoting CSR tasks, and six
working groups were set up in three major areas,
including sustainable environment/social
participation/corporate governance, with		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.

42 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
handling of the matters? department heads as the leaders of the groups to
promote CSR tasks. We hold monthly CSR
management committee meetings to review and
share the progress and results of CSR projects.
At least once a year, the Board of Directors is
updated with the results of the current year's
work and the direction and plans for the
promotionofCSRwork inthefuture.
III. Environmental issue
(I) Does the Company have an
appropriate environmental
management system
established in accordance with
its industrial character?		 V (I) The automobile industry is a technology-
intensive and capital-intensive industry with
a huge industrial chain that involves a wide
range of related industries. To address the
characteristics of this industry, we have set
up a Green Energy Task Force to regularly
review and improve our CO2, waste and
other emission targets.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
(II) Is the Company committed to
enhance the utilization
efficiency of resources and use
renewable materials that are
with low impact on the
environmental?		 V (II) In order to improve the efficiency of
resource utilization and to use recycled
materials with low impact on the
environment, we have established material
flow cost accounting to conduct material
flow cost analysis in order to provide more
complete green management information as
the basis for overall planning and promotion
of environmental protection issues, and to
achieve the assessment tools of whether the
use is effective, whether the environmental
impact problem is serious and how to
improve.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
(III) Has the Company assessed the
potential risk or opportunity
deriving from climate change
and its effect on the Company
at present and in the future,
and mapped out the response
to climate-related issues?
(IV) Has the Company analyzed the
total weight of the greenhouse
gas emission, water
consumption and wastes over		 V
V		 (III) The Company has long been concerned
about the impact of climate change on its
operations, and actively identifies and
responds to the risks and impacts of extreme
weather in order to identify opportunities.
1. Develop company-wide energy saving
and carbon reduction, greenhouse gas
reduction... KPI, and monthly review
and control the achievement rate and set
improvement measures.
2. Upgrade the equipment and optimize
the energy efficiency of the process.
3. Established the “Energy Saving Service
Group“ in 2012, and set up the “Energy
Saving Committee“ and the “Value
Chain Committee of Third-Party
Suppliers“ in 2018 to guide third-party
companies in their efforts to protect the
environment and actively create a green
supply chain.
4. Develop zero-carbon emission smart
electric vehicles and cooperate with
Hon Hai to provide a complete solution
of electric vehicle chassis and key
component modules to shorten the
development process of future electric
vehicles and enable electric vehicle
products to enter the market more
quickly.
Please refer to Note 4 for the Company's
identification of opportunities and
measures to address climate risk issues.
(IV) The Company has been conducting
greenhouse gas inventories since 2006, and
established the Green Energy Project in
2008 to set annual reduction targetsfor		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed

Annual Report 2020 43

Corporate governance report

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
the past two years? Does the
Company establish the
management policies for
saving of energy and reduction
of carbon, greenhouse gas
emission, water consumption
and wastes?		 greenhouse gas, waste, and water
consumption, and has continued to promote
energy saving and waste reduction PDCA
activities since then. Under the ISO 14001
environmental management system
certification, the Company regularly
reviews the status of environmental
objectives and improvement performance to
ensure the implementation of energy saving
and carbon reduction plans and achievement
of targets.
Specific measures are described below:
1. Energy-reducing low carbon
manufacturing :
(1) Under the promotion platform of
“Energy Saving Committee“, the
“Nine Steps to Energy
Saving“ combined with the
“Intelligent Energy Management
System“ to monitor energy
consumption data to verify the
energy saving effect.
(2) 252 improvement projects were
completed in 2020, reducing
carbon emissions by 413.6 metric
tons per year (217 projects for
electricity, reducing carbon
emissions by 179 metric tons per
year; 30 projects for gas, reducing
carbon emissions by 215 metric
tons per year. 5 projects for fuel oil,
reducing carbon emissions by 19.6
metric tons per year).
(3) Total CO2 emissions were 11,654
metric tons in 2020 and 11,965
metric tons in 2019.
2. Water resources reduction measures :
(1) The wastewater from the pure
water washing process in the
coating plant is reused and recycled
as the washing water in the front
section.
(2) The water is recycled and reused
from the storm test of finished cars.
3. Waste reduction and management :
(1) All kinds of wastes are handled by
legal vendors approved by the
Environmental Protection
Administration and reported online
according to the law, and the reuse
rate is 100%.
(2) After the process waste solvent is
collected by the recycling system,
the distillation machine is used to
recover the clean solvent for reuse,
reducing the purchase of solvent by
about 37 metric tons/year.
(3) Continuously implement the
program of changing the anti-
collision material of parts rack to
recyclable material, recycling the
packaging material of service parts,
and increasing the revenue of waste
by 9 categories to realize the goal
of recycling economy to protect the
earth resources.		 Companies“.

44 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
(4) The total waste volume in 2020
was 330 metric tons and the total
waste volume in 2019 was 349
metric tons.
IV. Social issue
(I) Does the Company have the
relevant management policies
and procedures stipulated in
accordance with the relevant
laws and regulations and
international conventions on
human rights?		 V (I) The human resources unit of the Company
formulates relevant management policies
and procedures in accordance with the
existing labor-related laws and regulations,
and implements them. In addition, the
Company complies with relevant labor laws
and regulations and protects the legitimate
rights and interests of employees in
accordance with the provisions of the
“Corporate Social Responsibility Best
Practice Principles“ established by the
Company.
We recognize and follow the United Nations
“Universal Declaration of Human Rights”,
the “Guiding Principles of Business and
Human Rights”, the “Global Compact”, the
“International Labor Organization
Convention”, and other international human
rights conventions, and will not violate or
infringe on human rights and treat all
colleagues, customers and stakeholders with
dignity.
Execution Policy:
1. Provide a safe and healthy working
environment
2. Eliminate unlawful discrimination to
ensure equal work opportunities
3. Prohibit child labor
4. Prohibit forced labor
5. Assist employees to maintain physical
and mental health and work-life balance
6. Support employees to form and join
labor unions to exercise their labor
rights in accordance with the law
Specific measures for human rights policy:
(1) Provide a safe and healthy working
environment: weekly health promotion
in the safety and hygiene room, “group
insurance“ for all employees, their
spouses and children, etc. For more
details, please refer to “Protective
Measures for Working Environment and
Employees' Personal Safety“ in Chapter
5, Section 5, Labor Relations.
(2) Assist employees to maintain physical
and mental health and work-life
balance, and prohibit forced labor:
announce that all employees will have
one on-time work day and two no-
meeting days per month, and hold
regular family days each year.
(3) Support employees to form and join
labor unions to exercise their labor
rights in accordance with the law;
encourage them to join labor unions.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
(II) Has the company established
and implemented reasonable
employee welfare measures
(including remuneration, leave,
and other benefits) and
appropriately reflected
business performanceand		 V
(II) According to the Company's Articles of
Incorporation, in addition to the profit
sharing remuneration to employees if the
Company makes profits, the Company also
provides incentive bonuses such as three
festival bonuses, additional annual bonuses,
and bonusesfor the growthof the		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.

Annual Report 2020 45

Corporate governance report

Items for assessment Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
achievements in the
remuneration for employees?		 management team based on the operating
performance and individual performance of
employees to encourage employees to
achieve better performance for the
Company and shareholders. The Company
has established and implemented employee
benefit measures, which are described in
detail in Chapter 5, Section 5, “Labor
Relations“.
(III) Does the Company provide
employees with a safe and
healthy working environment,
and provide safety and health
education to employees
regularly?		 V (III) The Company has set up a medical office
and a safety and health room to help
employees maintain their health, added
“group insurance“ for all employees, their
spouses and children, conducted relevant
education and training for new employees,
and provided regular weekly health
education by the safety and health office.
We are committed to providing a safe and
healthy working environment. For more
details, please refer to “Protective
Measures for Working Environment and
Employees' Personal Safety“ in Chapter 5,
Section 5, Labor Relations.
The Company attaches great importance to
employees’ physical and mental health and
work-life balance,
prohibit forced labor,
In addition to the announcement that all
employees will have one punctual closing
day and two non-meeting days per month,
family days will be held regularly every
year.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
(IV) Has the company established
an effective career
development and training
program for employees?
(V) Does the Company comply
with relevant laws and
international standards with
regard to the health and safety
of the customers using the
products and services, their
privacy, and the marketing
and labeling of such products
and services? Does the
Company establish policies or
procedures for protection of
customers’ rights and
interests?		 V
V		 (IV) The Company has a technical training
framework to enhance employees'
professional skills. For detailed examples
of education and training, please refer to
the description under Chapter 5, Section 5,
“Labor Relations“.
(V) The Company adheres to the principle of
green design and green manufacturing to
provide customers with fuel-efficient and
environmentally friendly green products for
a wide range of vehicles. After the products
are sold, all processes must be carried out
to prevent product liability through the
joint implementation of all employees and
the dealership system to prevent the
occurrence of defects in products that cause
damage to consumer rights. As for the
after-sales warranty of the products, the
warranty terms and conditions are clearly
listed in the owner's manual to inform
consumers of their rights and benefits and
to help them deal with the system.
All product assurance standards and
procedures are regularly reviewed and
revised by the Company in accordance with
ISO standards to provide a rigorous and
comprehensive product assurance system.
The principle of handling product liability
incidents is to give priority to consumers'
rights and interests, and to follow
government regulations. In order to ensure
that product liability incidents can be
handled quickly and properly, we have
established relevant handling guidelines
such as“CustomerComplaint Handling		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.

46 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Items for assessment Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
(VI) Does the Company establish
supplier management policies
and ask suppliers to follow
relevant regulations on the
issues of environmental
protection, occupational
safety and health or labor
rights? What is the
implementation status of these
policies?		 V Practice Standards,“ “After-Sales Service
Compensation Practice Standards,“ and
“Vehicle Recall Correction Management
Regulations“ to assist consumers in solving
problems immediately and to protect
consumers' rights and interests.
The Company also has a toll-free 0800
service line with a 24-hour live service
system that provides a transparent and
effective consumer complaint process for
the Company's products and services.
Before mass production of finished cars,
we have obtained safety audit certificates
from the Ministry of Transportation and
Communications, emission and noise tests
from the Environmental Protection
Administration, and fuel consumption tests
from the Bureau of Energy, Ministry of
Economic Affairs, to ensure the quality of
our products comply with relevant
regulations.
(VI) We regularly audit and evaluate suppliers,
and request continuous improvement plans
for suppliers with bad records in order to
meet the spirit of green procurement. As for
suppliers, the Company has made green
procurement an important reference
indicator and has strictly selected its past
suppliers in accordance with Nissan's
procurement regulations, and the Company
may terminate or cancel the contract if the
counterparty is involved in dishonest
behavior.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
V.
Does the Company refer to
internationally accepted report
preparing guidelines or guides to
compile its CSR report or other
reports disclosing non-financial
information of the Company? Are
assurance or certification opinions
of a third-party verification
institution acquired for the above
mentionedreports?		 V In addition to disclosing relevant and reliable
CSR-related information in the annual report,
the Company also publishes a CSR report on its
website for stakeholders to download and read.
The report was verified by an external rating
agency and received an A+ grade for 2011.		 In compliance with the
“Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed
Companies“.
VI. For the companies which have established corporate social responsibility best practice principles in accordance with the “Corporate
Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies,” please describe the implementation practices and
the deviation from the Principles established:
The Company has established rules and regulations related to corporate governance, such as the Rules of Procedures for Shareholders'
Meetings, the Procedure Board of Directors Meetings, the Operating Measures for the Management of Confidential Documents,
Operating Measures for Speaking and Handling Confidential Information, and Standard Operating Procedures for Announcement
Process, the Internal Control System, the Operating Procedures for the Acquisition or Disposal of Assets, and the Operating
Procedures for Lending of Funds to Others. In addition, the Company has established relevant management measures for air pollution,
wastewater, toxic chemicals, etc., as well as “Environmental Considerations Management Procedures“, “Environmental Objectives
and Management Plans“, “Yulon Environmental and Safety and Health Handbook“, and other policies for energy saving and carbon
reduction, greenhouse gas reduction, water use reduction, and other wastes, and is promoting various stages of environmental
objectives and targets, taking into account the impact of the company's processes, activities, products and services on the environment.
Environmental objectives and targets. At this stage, the various relevant practices have been formulated to comply with the
requirements of the “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies“ in the areas of
corporate governance, development of a sustainable environment, protection of social welfare and enhancement of information
disclosure. The Company has prepared “Corporate Social Responsibility Best Practice Principles“ and submitted it to the Board of
Directorsand got their approval in May2014 andrequestedallsubsidiaries of the Groupto comply with thePrinciples.
VI. Other important information helpful for understanding the implementation of corporate social responsibility:
(1) The Company's corporate social responsibility operation in environmental protection
1. The Company has established the “Environmental and Safety and Health Handbook“ as our environmental and safety and
health policy in accordance with the spirit of ISO 14001, and we have also established other management measures for air
pollution, waste water, toxic chemicals, etc.
2. The Company’s production process relies on raw materials and components provided by our suppliers to assemble finished
vehicles. In order to strengthen thegreenpartnershipwith our suppliers,we have adopted Carbon Footprint and energy

Annual Report 2020 47

Corporate governance report

Items for assessment Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
saving and carbon reduction as one of our supplier's business evaluation items.
3. In December 2005, Hna-Chuang Automobile Information Technical Center Co., Ltd. was established to focus on the research
and development of electric vehicles and to launch electric vehicles under the Taiwan brand name. Electric vehicles are our
most concrete contribution to global climate change and to the realization of a low-carbon economic society.
4. In addition, in order to implement the concept of environmental safety, improve the prevention of environmental pollution,
and protect the safety and health of the Company's employees, we have set up various special promotion groups such as the
Labor Safety and Health Committee and the Greenhouse Gas Inventory to promote various safety, health and environmental
protection projects and have gradually formulated policies on energy saving and carbon reduction, greenhouse gas reduction,
and reduction of water consumption or other wastes.
5. Please refer to the Company’s CSR report for specific achievements in environmental protection, greenhouse gas reduction,
and waste treatment in recent years.
(2) The Company's corporate social responsibility operations in community involvement and community welfare
➢Long-term promotion of wood carving art and culture
For 17 consecutive years from 1996 to 2013, the Company has organized the “Yulong Wood Carving Innovation Award“,
rewarding Taiwan's woodcarving artists with a high total prize money (about $2 million) each year for their continuous
creation, building a platform for them to connect with the international community and increase their visibility. In addition, in
order to pass on the declining art of wood carving in Taiwan, we encourage young students to participate in the competition,
so that the art of wood carving in Taiwan can be brought to life by more new blood.
Since 2014, in order to provide funding for the local government to promote the art of wood carving, the Company has
shifted the funding for the “Yulon Wood Carving Innovation Award“ to the local government ($2 million per year from 2014
to 2020). In addition, the Company has been working with the Cultural Tourism Bureau of Miaoli County Government to
hold the Taiwan International Wood Carving Competition in Sanyi every year by integrating resources and establishing two
special awards, the “Yulong Wood Carving Heritage Award“ and the “Yulong Wood Carving Innovation Award“ ($300,000
per year for each award from 2014 to 2020), in order to preserve the art of wood carving in Sanyi and promote the local
culture.
➢ Care for the vunerable
Since 1998, the Company has been caring for the temporary workers of the Environmental Protection Bureau of the Taipei
City Government by sponsoring the annual “Employer's Compensation Contract Liability Insurance“ to alleviate their
injuries and burden of living caused by sudden accidents. The Company has been providing the nearly 1,300 temporary
workers of the Environmental Protection Bureau of the Taipei City Government with an insurance policy to protect them in
the event of a safety accident on duty (the annual contribution was NT$1 million from 1998 to 2003, and was changed to a
joint contribution of NT$1 million with Yulon Nissan Motor after the business split in 2003). In 2018, the Company donated
$200,000 to produce 200 LED reflective vests for the cleaning team members to enhance their work safety. Since 2014, in
order to give back to the community, the Company has also donated annually to the “Employer's Compensation Contract
Liability Insurance“ for the cleaning team in Sanyi Township, where the company is located, to provide them with the same
peace of mind in their work and life.
➢Give back to the local community
[Yulon Sanyi Scholarship]
In order to give back to the local community, the Company has been providing “Yulon Sanyi Scholarship“ to elementary, junior
high and high school students in Sanyi Township, and from 2015 to 2019, it has been extended to college and graduate school
students in Sanyi Township to encourage them to study hard, more than 420 Sanyi Township students were awarded annually. In
2020, a total of $435,000 was awarded to more than 400 students for the Yulon Sanyi Scholarship, benefiting a wide range of
students.
[Yulon Motor Youth Training Scholarship]
In order to cultivate talents in the automobile industry and encourage young people to study mechanical, electrical, electronic and
other related engineering, our company has set up the “Yulon Motor Youth Training Scholarship“ in 2020 to benefit high school
students in Miaoli County who are enrolled in designated schools in automobile-related disciplines, and at the same time
encourage the recipients to volunteer their services to the society. The total number of students who received the scholarships for
2020 is 8, each getting NT$50,000.
[Yulon Sanyi Children’s Basketball Summer Camp]
We have been promoting basketball in Taiwan for a long time and have been holding the “Yulong Sanyi Children's Basketball
Summer Camp“ every summer since 2015, which is open for free enrollment by Sanyi Elementary School students in grade 3 or
above. The Yulon Luxgen basketball team members are coaching the camp, teaching the students in Sanyi Township proper
basketball knowledge and basketball skills, and providing them with healthy and relaxing summer recreational activities. A total
of 100 children from Sanyi Township Elementary School participated in 2019 with very active enrollment, and the two-day camp
was led by Yulon Luxgen basketball team players.
[Yulon Motor Design Experience Camp]
In order to let students in Sanyi Township understand the design and development process of automobiles, we have held the
“Yulon Motor Design Experience Camp“ every year since 2016. 45 senior students from Sanyi Township Elementary School
attended the campfor free, and were givena glimpseinto the process ofautomobile designand development as wellas the

48 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Items for assessment Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
manufacturing process of automobiles to cultivate a basic understanding of the automobile industry among Sanyi students. In
2019, we added physical and mechanical principles of operation to the curriculum to stimulate students' minds and creativity, and
to open up the horizons of students in Sanyi.
[Other give back to the community]
1. In order to bridge the gap between urban and rural areas and expose the children of Sanyi to more diverse artistic aesthetics,
our company sponsored the “Paper Windmill Theater“ to perform in Sanyi Township in 2016, treating the villagers of Sanyi
to a free show, bringing a feast of art to the local community and letting the villagers feel the Company's dedication to giving
back to the local community.
2. Every year, the Company sponsors the Respect for the Elderly activities on the Double Ninth Festival, funding seven
communities in Sanyi Township, including Longteng, Guangsheng, Shengxing, Shuangtan, Shuanghu, West Lake, and Liyu.
3. Since 2005, we have been donating and adopting 100 street lamps to Sanyi Township every year.
(3) The Company's corporate social responsibility operations in social contribution and social services
[Yen Ching-Ling’s Foundation]
Yen Ching-Ling’s Foundation was established in 1973 to combine the academic and human resources of National Taiwan
University and National Cheng Kung University to promote forward-looking engineering technology research and development
and industry-academia cooperation, so that industrial technology can take root downward and develop upward.
[Yen Ching-Ling’s Medical Research Foundation]
In 1979, the Yen Ching-Ling’s Medical Research Foundation was established to provide scholarships for excellent doctors to
study abroad and to conduct research on the prevention and treatment of special diseases.
[Wu Shun-Wen’s News Scholarship Foundation]
In 1986, the Wu Shun-Wen’s News Scholarship Foundation was established to reward outstanding journalists and to serve as an
invisible force to correct the social atmosphere and cleanse the mind.
[Wu Shun-Wen’s Industrial Development and Investment Promotion Committee]
In 1990, the Wu Shun-Wen’s Industrial Development and Investment Promotion Committee was established to promote the
exchange of information between domestic and foreign government agencies, academic and business sectors, and to help
facilitate the development of industrial and commercial enterprises, in order to promote domestic industrial manufacturing
capabilities, improve product quality, and enhance the image of domestic manufacturers.
[Long-term promotion of domestic basketball]
In 1964, the Company established the first Group A basketball team formed by a private enterprise in Taiwan to promote
basketball, and in 1992, the Company officially established the “Yulon Professional Basketball Team“, which has been funded by
a large amount of corporate resources every year without interruption, allowing the Yulon basketball team to compete in the
domestic arena with full force and repeatedly achieve success. In 2020, the annual sponsorship was $21.6 million, in line with
long-term practice.
[Yulon Volunteer Club]
In 2015, the “Yulon Motor and Yulon Nissan Volunteer Club” was established with the motto of “local care, thematic service“ to
provide care to the community and local disadvantaged groups, so that our colleagues can realize the true meaning of “it is more
blessed to give than to receive“ in the process of devoting themselves to loving service. Since its establishment, the “Yulon Motor
and Yulon Nissan Volunteer Club” has been organizing many activities, such as cleaning the beach in Houlong, Miaoli, giving
white rice to the elderly living alone in Sanyi Township, inviting children from the Family Support Center to watch a professional
basketball game, collecting charitable supplies, giving Christmas gifts to children in orphanages, helping low- and middle-income
families in Sanyi Township to clean their homes, and arranging weekend recreational activities for children in orphanages etc.
Due to the outbreak of the epidemic in 2020, the activities of “Yulon Volunteer Club” were suspended in the first half of the year,
and activities were resumed in the second half of the year after the epidemic had subsided.
(1.) June - Due to the epidemic, the number of blood donors in Taiwan dropped sharply in 2020, and blood banks all over the
country were experiencing a shortage for some blood types. In order to alleviate the blood shortage, Yulon Volunteer Club
organized two blood donation events in 2020 and called on our supplier partners: Uni Auto Parts, Yue Sheng Industrial,
Yusheng Industrial, and Uni-Calsonic to join the blood donation activities, and the total amount of blood collected reached
37,500 c.c.
(2.) August - Yulon Volunteer Club joined hands with Xindian Family Support Center to take children there to Taipei Arena to
watch the first game of the “2020 Taiwan Summer Basketball Challenge“ (Yulon V.S. Taiwan Beer) to experience the
fervent atmosphere of the game and spend an unforgettable time.
(3.) September - Yulon Volunteer Club invited about 30 students from Guang Ai orphanage in Miaoli to visit our sightseeing
factory “The Way of the Car Experience Center“ to experience the production process of automobiles and arrange DIY
activities for the students to assemble their own cars.
(4.) October - Yulon Volunteer Club, together with its dealer partners, suppliers and families, with over 110 people, held a beach
cleaning event at Houliang Fishing Port in Miaoli, with the Company's president taking the lead. With the concerted efforts
of everyone, a total of nearly 450 kg of marine litter was collected that day, of which about 140 kg was recyclable resources,
contributing to environmentalprotection.

Annual Report 2020 49

Corporate governance report

Items for assessment Actualgovernance (Note1) Actualgovernance (Note1) Actualgovernance (Note1) Deviation and causes of deviation
from the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM
Listed Companies
Yes No Summarized explanation (Note 2)
(5.) November - “Warm Kitchen“ in Sanyi is a volunteer service team formed by 20 to 30 high school students in Sanyi
Township, Miaoli, to make soup for the elderly who are lonely and live alone in Sanyi Township for a long time. Yulon
Volunteer Club, also located in Sanyi, heard about the good deeds of “Warm Kitchen“ and sponsored the funding to
encourage this group of enthusiastic students. We hope to support them in spreading love to more people who need care.
(6.) November - Yulon Volunteer Club and Sanyi Huashan Foundation jointly organized a “Dream Birthday Party“ for Grandma
Chiu, who is 95 years old and lives alone in Sanyi Township. In addition to the birthday banquet and cake, we also invited
her neighbors and old friends to join us, and invited children from Sanyi Celebrity Kindergarten to sing Hakka songs and
offer warm birthday wishes to Grandma Chiu.
(4) The Company's corporate social responsibility operation in consumer rights
1. For the production process, the “Yulon Quality Manual“ has been established according to the framework of ISO 9001, and
the product quality is strictly demanded from the input of raw materials at the front end of production to the output of
finished vehicles.
2. For the early stage of new vehicle launch, we have set up “New Vehicle Quality Mechanic Team Operation Standards“ to
quickly control the quality of new vehicles at the early stage of launch and immediately respond to the relevant units for
immediate countermeasures and to improve service levels..
3. For the handling mechanism of after-sales service, there is a system such as “After-sales market quality handling
standards“ and “Market quality feedback handling method“ to grasp the market vehicle quality information and feed back to
the responsible department as the basis for quality improvement.
4. On the consumer side, we have set up “After-sales Market Return Vehicle Operation Standards“ and “After-sales Service
Compensation Operation Standards“ in order to strive for timely and smooth completion of various service compensation
operations and to satisfactorily achieve the purpose of serving our customers.
5. The Company also has a toll-free 0800 service line with a 24-hour live service system that provides a transparent and
effective consumer complaint process for the Company's products and services.
6. The Company has adopted a series of consumer protection measures and treatments from production to after-sales, and has
received good results and recognition from J.D. Power, an internationally credible research organization, in both the SSI
(Sales Satisfaction Index) for new car sales and the CSI (Customer Service Index) for after-sales service.
(5) The Company's corporate social responsibility operation in human rights, safety and health
Please refer to Chapter 5, Section 5, “Labor Relations“ for the description of the Company's corporate social responsibility
operation with respect to human rights, safety and health.
(6) The operation of corporate social responsibility the Company requires its suppliers to perform
1. The Company makes green material procurement an important reference indicator for evaluation, and takes measures such as
advice, deduction of payment, and order reduction for manufacturers who do not offer green materials, in order to drive all
third party suppliers to pay attention to related corporate social responsibility at the same time.
2. Actively promote the ISO 14001 certification of our suppliers, who must comply with the Labor Standards Law, in order to
protect human rights regulations.
3. We have launched a supplier sustainability project, conducted questionnaire surveys on the three major aspects of the green
supply chain, safety and health, and labor rights, and implemented vendor classification, and conducted vendor counseling
and vendor audits according to different levels of suppliers.
4. We have established the “Practice Standards for Safety and Health Management of Outsourcing Contractors“ and
“Regulations for the Management of Operations in Outsourcing Contractors' Sites“ and “Safety and Health Practice
Standards”, which require suppliers to follow the relevant regulations on environmental protection, safety and health issues,
and jointly strive to enhance corporate social responsibility.
5. The actual operation has been gradually taken seriously by suppliers, please refer to our CSR report for detailed
implementation results.
(7) Other corporate social responsibility operations of the Company
1. The Company in 1999 obtained the international standard ISO 14001 environmental management system certification.
2. Since 2009, the Environmental Protection Administration of the Executive Yuan has been promoting the “Energy Saving and
Carbon Reduction Action Mark“ campaign, and the Company has been awarded the “Energy Saving and Carbon Reduction
Action Mark“ by the Environmental Protection Administration of the Executive Yuan several times.
3. The Company has always insisted that environmental protection and corporate competitiveness are both important and do not
contradict each other. In our successive sustainability reports, we have clearly declared and expressed our policy on dealing
with stakeholders such as shareholders, customers, suppliers, communities and employees, and have integrated
environmental protection into our business philosophy and included it in the annual projects and targets of each unit as a key
point for implementation of daily work items.
4. Please refer to the Company's CSR report for more details on the effectiveness of the Company's CSR implementation.
https://www.yulon-motor.com.tw/csr_report.aspx.
Note 1: If “Yes“ is checked for the state of operation, please explain the important policies, strategies and measures adopted and their
implementation; if “No“ is checked, please explain the reasons and plans for not adopting relevant policies, strategies and measures.
Note 2: If the company has prepared a CSR report, the operation of the CSR report may be replaced by a reference to the CSR report and an
index page.

Note 3: Materiality refers to environmental, social and corporate governance issues that have a significant impact on the Company's investors and other stakeholders.

Note 4: The Company's identification of opportunities and measures to address climate risk issues.

50 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Aspect Risk identification Risk Impact Response Opportunity
Policy and
regulations		 Increased cost for
greenhouse gas emissions		 Need to continue to
invest in equipment to
comply with
environmental
regulations and
emissions
requirements, which
drives up the
Company's operating
costs		 1. In 2005, the Company
established a “greenhouse gas
inventory team“ to deal with
greenhouse gas identification,
inventory and reduction
issues.
2. Follow the standard
procedures of ISO 14064 to
conduct GHG inventory, data
collection, emission
calculation and reduction plan
for each plant, and conduct
GHG emission inventory and
comprehensive reduction
promotion for each
department to reduce 45.5%
in 2019 compared to 2007.		 Since 2012, the Company has
extended its experience in energy
saving and carbon reduction to its
affiliated plants. By 2019, the
Company has assisted 26 affiliated
plants in completing 652
improvement projects, reducing
12,524 metric tons of CO2 in total,
and actively building a green
supply chain.
Environmental regulations
are getting tighter.		 Fines and fees will be
increased accordingly.		 1. Optimize the energy
efficiency of the process.
2. Develop process optimization
improvement measures		 The Company has received many
awards for actively promoting
energy saving and carbon
reduction, which has enhanced our
corporate image.
‧ In 2008, the Ministry of
Economic Affairs awarded us
the “Superior Award for Energy
Conservation“.
‧ Awarded the “Energy Saving
and Carbon Reduction Action
Mark“ by the Environmental
Protection Administration in
2010.
‧ In 2015, awarded the
“Outstanding Performance
Award for Energy Saving
Service Team“ by the Ministry
of Economic Affairs.
‧ In 2016, awarded the “Energy
Saving Performance Award“ by
the Ministry of Economic
Affairs.
‧ Awarded the “Silver Award for
Energy Saving Benchmark“ by
the Ministry of Economic
Affairs in 2017.
Phase VI regulations and
the new CAFE will be
implemented soon, and
vehicles that do not
comply with the
regulations will have to be
discontinued.		 1. Consumers can
choose fewer car
models
2. Production capacity
will be reduced,
which will affect
the Company's
revenue		 1. In December 2005, the
Company established Hna-
Chuang Automobile
Information Technical Center
Co., Ltd. to invest a lot of
resources in the research and
development of green electric
vehicles, and strive to create
high performance, high
efficiency, zero fuel
consumption and zero pollution
green electric vehicles. In
2010, our LUXGEN EV⁺
electric vehicle became the first
electric vehicle in Taiwan to be
officially certified and
registered domestically..
2. Seek OEM opportunities for
other car and motorcycle
brands to increase production
line utilization rate.		 1. Promote the transformation of
the value chain of the
automobile business to “fully
open and diversified customers”
and cooperate with Hon Hai to
provide a complete solution of
electric vehicle chassis and key
component modules to shorten
the development process of
future electric vehicles and
enable electric vehicle products
to enter the market more
quickly.
2. Seek other new business
development opportunities (e.g.,
energy storage batteries...) to
develop new niche for the
Company.
Energy
management		 The acquisition cost of
energy is higher.		 The production and
manufacturing cost is
increased.		 Implement energy transformation
plan and solar power development
strategy: Since 2018, we have
been building solar power
generation at Yulon's Sanyi plant		 The Company built its own solar
power and sells green power by
wholesale to Taiwan Power, with
the following revenues.
2018 wholesale amounted to over

Annual Report 2020 51

Corporate governance report

Aspect Risk identification Risk Impact Response Opportunity
in phases, and will complete the
construction of 5.2MW by the end
of 2020, and invest $94,700
thousand to build the fourth phase
of solar power in 2020, with a
green power ratio of 40%; in
2021, we plan to build 2.4MW,
and continue to improve the
utilization rate of renewable
energy. The total green power
ratio is expected to rise to over
50%.		 $6.6 million
2019 wholesale amounted to over
$19 million
2020 wholesale amounted to over
$35 million
Climate
Hazards		 Windstorm, natural
disaster...affect production		 Production capacity is
reduced, affecting the
Company's revenue		 ISO S00-B-A025 “Emergency
Preparedness and Response
Management“ is established to
strengthen the company-wide
response and standard procedures
for natural disasters and
emergencies, and drills are
conducted from time to time.		 Strengthen the Company's ability to
prevent and respond to disasters
Reduced rainfall causes
water shortage		 Improve equipment
and processes to
reduce impact		 1. Process water recycling,
treatment and reuse.
‧ New pre-treatment pure water
process for paint workshop
with additional wastewater
reuse (from 150 tons/day →
reduced to 80 tons/day)
‧ Dynamic leak test water
recycling in the vehicle
assembly plant (from 196
tons/day to 16 tons/day)
‧ Boiler room condensate
recycling (from 21 tons/day →
reduced to 1 ton/day)
2. Implement water saving
measures outside of the
production process.
‧ Installed water-saving faucets
throughout the plant, reducing
the water output by 50% (from
7 tons/day to 3 tons/day)
‧ Reduce the frequency of
watering and sprinkling system
in the plant (2 times/month →
1 time/month) (from 20
tons/day to10 tons/day)		 The daily water consumption of
Yulon's Sanyi plant was reduced
from 1,292 tons/day to 1,000
tons/day, a total reduction of
29.2%, and the operating cost was
reduced accordingly.
Extreme weather affects
production lead times of
parts.		 Supply chain seeks
alternative parts
sources, and costs are
increased		 1. Early estimation of annual
demand allows supply chain
manufacturers to make early
production and delivery plans
for contingency planning.
2. Develop alternative vendor
solutions (second source) to
respond to unforeseen
situationsinadvance.		 Strengthen the company's ability to
deal with emergency situations.

52 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • (VI) The Practice of Ethical Corporate Management and Related Policies and Variation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx-listed Companies:
Proper enforcement of business integrity Proper enforcement of business integrity Proper enforcement of business integrity Proper enforcement of business integrity
Items for assessment Actual governance (Note 1) Deviation From the “Ethical
Corporate Management
Best Practice Principles for
TWSE or TPEx Listed
Company”and the Reasons
Yes No Summary
I.
Establishment of ethical corporate
management policies and plans
(1) Has the Company specified its
policy and method for the
implementation of ethical
corporate management in its
internal rules and regulations
and external documents, and
have the Board and the
management of the Company
promised to pursue the policy of
ethical corporate management?
(2) Has the company established an
assessment mechanism of risk
from unethical behavior to
regularly analyze and assess
business activities with higher
risk of involvement in unethical
behavior and preventive
programs for unethical
behaviors containing at least the
preventive measures stated in
Paragraph 2 of Article 7 of the
“Ethical Corporate Management
Best Practice Principles for
TWSE/TPEx-Listed
Companies?”
(3) Whether the Company has
specified operating procedures,
conduct guidelines, and
disciplinary and complaint
systems for violations in the
plan to prevent unethical
conduct and implemented the
plan as well as regularly reviews
andamendsit?		 V
V
V		 (1) The Company has established a “Ethical Corporate
Management Best Practice Principles“, which was
submitted to and approve by the Board of Directors
for approval. In accordance with the Company's
organizational structure, the Company has
established departmental manuals for each
department, requiring all employees of the
Company, including the Board of Directors and
management, to actively implement honest
management, treat shareholders with care and
loyalty, and use professional and diligent
management of shareholders' investments to ensure
fair, sustainable and competitive returns to create We
will ensure fair, sustainable and competitive returns
on our shareholders' investments to create the best
interests of our shareholders.
(2) In order to clearly regulate the relationship between
the rights and obligations of employees and
management, and to improve the organization and
establish the management system, the Company has
established various internal work regulations
according to the relevant laws and regulations to
provide a framework for corporate and employee
actions. In the event of unethical behavior of the
Company's personnel, the Company will notify the
judicial and prosecution authorities in accordance
with the relevant facts, and notify the governmental
ethics departments in the event that a public
authority or public official is involved.
The Company has established and submitted to the
board of directors for approval ethical corporate
management best practice principles as a basis for
preventing unethical conduct and they are
implemented.
(3) The Company has established the “Management
Measures for Preventing Insider Trading“, the
“Regulations for Management Review“, and the
“Operating Standards for Management Meetings“ as
the relevant regulations for the implementation of
the Ethical Corporate Management Best Practice
Principles and has implemented them, and amended
them in accordance with the laws and regulations.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
II. Implementation of ethical corporate
management

(1) Does the company have the
integrity of the trade
counterparty assessed and with
the code of integrity expressed
in the contract signed?		 V (1) The contracts entered into by the Company are
reviewed by legal professionals, and the Company
may terminate or cancel the contracts if the counter-
parties are involved in unethical acts.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”

(2) Does the Company have a
dedicated unit under the Board
of Directors to promote ethical
corporate management and
report regularly (at least once a
year) to the Board of Directors
on its ethical management
policy and plan to prevent
unethical conduct and monitor
their implementation?		 V (2) The Company's ethical corporate management
related regulations are coordinated by the
Company’s corporate governance officer, assistant
VP of finance planning department and the
corporate governance group of corporate governance
group is responsible for its implementation.
Departmental manuals for each department are
established according to the department, requiring
all employees, including the Board of Directors and
management, to actively implement ethical
corporatemanagement andreporting the annual		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”

Annual Report 2020 53

Corporate governance report

Items for assessment Actual governance (Note 1) Deviation From the “Ethical
Corporate Management
Best Practice Principles for
TWSE or TPEx Listed
Company”and the Reasons
Yes No Summary
performance to the Board of Directors at least once a
year.
In 2020, the following items were promoted for
ethical corporate management.
1. Promoted ethical corporate management
measures to new employees and conducted
education and training
2. Promoted ethical corporate management to new
managerial officers and had them signed the
statement of the ethical corporate management
best practice principles.
3. In accordance with the ethical corporate
management best practice principles, the
independent directors shall act as the mailbox
administers, and the independent directors shall
periodically confirm the reporting of unethical
acts to ensure the implementation of the
anonymous reporting system.
4. Arranged for directors and supervisors to pursue
related courses: A Study of Directors'
Operational Risks and Legal Liabilities under
the Latest Corporate Governance Blueprint (3
hours)
(3) Does the Company have
developed policies to prevent
conflicts of interest, provided
adequate channel for
communication, and
substantiated the policies?		 V (3) In addition to the “Procedure for Board of Directors
Meetings“ for relevant stipulations for recusal due to
conflict of interest, the Company has provided
appropriate channels for the Board of Directors to
proactively state whether there is a conflict of
interest.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
(4) Whether the Company has
established an effective
accounting system and internal
control system for the
implementation of ethical
corporate management, and the
internal audit unit draws up
relevant audit plans based on the
evaluation results of risk of
unethical conduct, and audits the
compliance of the plan to
prevent unethical conduct or
entrusts a CPA to perform the
audit?		 V (4) In addition to the Company's best practice principles
and regulations on ethical corporate management,
the Company has established an internal control
system for related party transactions and insider
trading. In addition to conducting regular internal
audits, the Audit Office will immediately notify
members of the Board of Directors and the relevant
authorities if it receives any reports of illegal
activities and conduct inspections at any time to
ensure that the system is designed and implemented
effectively.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
(5) Does the Company regularly
organize internal and external
education and training on ethical
corporate management?		 V (5) In accordance with the resolution of the Board of
Directors and the updates of the relevant laws and
regulations, the Company has held centralized
education and training at least annually, and has
repeatedly made education propaganda about its
implementation at various meetings of the Company
to achieve the purpose and spirit of ethical corporate
management. Related courses held in 2020:
1. International Business Cooperation Law
Seminar: Intellectual Property Rights, 43
participants, 2 hours
2. International Business Cooperation Law
Seminar: Antitrust Law (Fair Trade Act), 36
attendees, 2 hours.
3. International Business Cooperation Law
Seminar: Business Contract Highlights, 37
participants,2 hours		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
III. Implementation of the whistle-
blowing system
(1) Does the Company have a
specific report and reward
system stipulated, a convenient
report channel established and a
responsible staffdesignatedto		 V (1) The Company has established “Work Rules“ and
“Employee Compliant Handling Measures“; for
violations of the rules and regulations, if the
investigation by the Complaint Committee is
substantiated,the work rules willbe enforced.If		 Compliance with the
“Ethical Corporate
Management Best Practice
Principles for TWSE or
TPEx Listed Company”

54 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Items for assessment Actual governance (Note 1) Actual governance (Note 1) Actual governance (Note 1) Deviation From the “Ethical
Corporate Management
Best Practice Principles for
TWSE or TPEx Listed
Company”and the Reasons
Yes No Summary
handle the individual being
reported?
(2) Has the Company established
the standard operation
procedures for the investigation
of complaints as reported,
follow-up actions after the
investigation, and related
mechanisms for confidentiality?
(3) Has the Company taken proper
measures to protect the
whistleblowers from suffering
any consequence of reporting an
incident?		 V
V		 necessary, we will seek damages through legal
proceedings to protect the Company's reputation and
rights.
(2) The Company has established a whistleblower
system and an internal independent whistleblower
mailbox, which is managed by an independent
director, who will assign the receiving unit for each
whistleblower case. The record and preservation of
whistleblowing cases, and their investigation
process, results and related documents.
(3) The Company has established measures to protect
the identity of the whistleblower and the content of
the report, to protect the whistleblower from
improper treatment and to reward the whistleblower
for the report.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
IV. Enhancement of information
disclosure
(1) Does the Company have the
contents of corporate
management and its
implementation disclosed on the
website and MOPS?		 V (1) The Company has published the relevant corporate
governance rules on the Company's website, which
investors can download and read. The Company
discloses information to the competent authorities or
to the public in a complete, appropriate, accurate,
timely and understandable manner, and has a
corporate spokesperson and an acting spokesperson,
and a standardized speaking procedure that requires
management and employees to keep financial and
business secrets and not to disseminate information
arbitrarily. In addition, the Company discloses
relevant and reliable information in its annual
reportsand corporate social responsibilityreports.		 Compliance with the “Ethical
Corporate Management Best
Practice Principles for TWSE
or TPEx Listed Company”
V. For the companies which have established ethical corporate management best practice principles in accordance with the “Ethics
Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies,” please describe the implementation practices and
the deviation from the Principles established:
The Company has established the Rules of Procedures for Shareholders' Meetings, the Procedure for Board of Directors Meetings, the
Procedures for the Management of Confidential Documents, the Procedures for Disclosure and Handling of Confidential Information,
the Standard Operating Procedures for the Announcement Process, the Internal Control System, and the implementation of the operating
systems have all met the requirements of the Principles. As of the publication of this annual report, the Company has prepared a “Ethical
Corporate Management Best Practice Principles“, submitted to and approved by the Board of Directors in May, 2014, and requested all
subsidiaries toreferto the principlesforthorough implementation.
VI. Other vital information that helps to understand the practice of business integrity of the Company (e.g., the review and revision of the
best-practice principles of the Company in business integrity)
The Company discloses its ethical corporate management practices in its internal regulations, annual reports, and corporate website, and
announces them at external events, such as product launches and corporate briefings, so that suppliers, customers, shareholders, and
other business-related organizations and personnel can clearly understand the Company's ethical corporate management philosophy and
standards.

VI. Other vital information that helps to understand the practice of business integrity of the Company (e.g., the review and revision of the best-practice principles of the Company in business integrity) The Company discloses its ethical corporate management practices in its internal regulations, annual reports, and corporate website, and announces them at external events, such as product launches and corporate briefings, so that suppliers, customers, shareholders, and other business-related organizations and personnel can clearly understand the Company's ethical corporate management philosophy and standards.

Note 1: Whether the Company selects “Yes” or “No” in the operation condition, it should explain the situation in the summary space.

  • (VII) The Company has established the corporate governance best practice principles and related rules for inquiries.

The Company's corporate governance and ethical corporate management regulations are disclosed in the “Investor Section“ on the Company's website and are updated from time to time. Investors can download them directly. Significant events resolved by the Board of Directors and significant information are announced and uploaded to the Market Observation Post System in a timely manner.

  • (VIII) Other important information that is helpful to understand the implementation of ethical corporate management:

Under the corporate governance evaluation mechanism jointly developed by the TWSE and the TPEx, the Company was ranked among the top 5% in the first to seventh evaluations and received awards from the organizers.

Annual Report 2020 55

Corporate governance report

(IX) The implementation of internal control system

  1. Internal Control System Statement

YULON MOTOR CO.,LTD Internal Control System Statement

Date: March 25, 2021

With respect to the results of self-evaluation of company’s internal control system in 2020, it is hereby stated as below:

  1. The company acknowledges that establishing, implementing and maintaining the internal control system is the responsibilities of the Board of Directors and managers. The company has established such system. The purpose is to provide reliable, timely and transparent report of the effect and efficiency of the operation (including profits, performance and asset security) and reasonably assurance the compliance of relevant regulations and laws.

  2. Internal control policies are prone to limitations. No matter how robustly designed, effective internal control policies merely provide reasonable assurance to the achievements of the three goals above. Furthermore, environmental and situational changes may affect the effectiveness of internal control policies. However, self-supervision measures were implemented within The Company’s internal control policies to facilitate immediate rectification once procedural flaws have been identified.

  3. The company determines whether or not the design and implementation of its internal control system are effective based on the criteria of effectiveness of internal control system as set forth in the “Regulations Governing Establishment of Internal Control Systems by Public Companies (hereinafter referred to as the “Regulations”). According to the determination criteria mentioned in the Regulations, the internal control system consists of five elements through the process of management control: 1. control environment; 2. risk assessment; 3. control activities; 4. information and communication; and 5. monitoring. Each element consists of several items. Please see the Regulations for the foregoing items.

  4. The company has applied the internal control system determination criteria as above to evaluate the effectiveness of the design and implementation of internal control system.

  5. Based on the foregoing evaluation results, the company considers that its internal control system on December 31, 2020 (including monitoring and managing its subsidiaries), including the understanding of operational effects, efficiency target achievement, and reports, is reliable, timely, transparent, and compliant with the regulations; the design and implementation of the internal control system related to regulatory compliance are effective and provide reasonable assurance for achieving the objectives.

  6. This statement will be the primary content of the company’s annual report and prospectus and disclosed to the public. The above disclosure is subject to the liabilities of false statement and concealment pursuant to Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

  7. This statement was approved by the Board of Directors on March 25, 2021. Among the nine directors present, none of them held opposing views, and the rest of them agreed to the contents of this statement.

==> picture [72 x 72] intentionally omitted <==

YULON MOTOR CO.,LTD

==> picture [35 x 36] intentionally omitted <==

Chairman Yen Chen Li-Lien Signature

President: Zhen-Xiang Yao Signature

==> picture [28 x 31] intentionally omitted <==

  1. If the internal control policy was reviewed by an external auditor, the report of such a review must be disclosed: Not applicable.

  2. (X) Where the Company and its insiders receive penalties for violations, or the Company’s punishment on its internal personnel for violating internal control system in 2020 and the current year up to the publication of the annual report, the mistake and improvement: No such matter.

56 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(XI) Important resolutions of the shareholder and board meetings in the most recent year to the day this Annual Report was published.

  1. Important resolutions of the shareholder and board meetings:
Meeting
Date Important motions Resolution
type
2020/01/16 Board of
Directors		 1. The Company’s 2020 business objectives
2. The Company issued a Letter of Operating Support (LOS) for the amount
adjustment of bank facility of Hua-Chuang Automobile Information
Technical Center Co., Ltd.
3. A lease agreement between the Company and a related party for real estate
right-of-useassets		 Approved as submitted after the
chair’s consultation with all the
directors and independent
directors present and after
thorough discussion
Approved as submitted after the
chair’s consultation with all the
Board of 1. The strategic cooperation agreement between the Company and Hon Hai
2020/02/07 directors and independent
Directors Precision Industry Co.
directors present and after
thoroughdiscussion
2020/03/06 Board of
Directors		 1. The Company, Hon Hai Precision Industry Co., Ltd. and Hua-Chuang
Automobile Information Technical Center Co., Ltd. signed a joint venture
agreement
2. The Company's capital increase in Hua-Chuang Automobile Information
Technical Center Co., Ltd.
3. The Company's plan to lend funds of RMB1 billion to Luxgen
(Hangzhou) Motor Sales Co., Ltd
4. The Company's bank facility application for 2020
5. Evaluation of the Independence and competence of CPAs and their
appointment and professional fees for 2020
6. The Company’s Statement of Internal Control System for 2019
7. Amendment to certain provisions of the Company’s “Audit Committee
Charter”.
8. Amendment to certain provisions of the Company’s “Procedure for Board
of DirectorsMeetings”.
Approved as submitted after the
chair’s consultation with all the
directors and independent
directors present and after
thorough discussion
1. Recognition the proposals resolved in the 11th meeting of the 7th term of
the board of directors of Yulon Nissan Motor Co., Ltd.
2. Sell place numver of No. 274, Bogongkeng, Sanyi Township.
3. The application for lines of credit(LOC).
4. The Company’s capital increase to Luxgen (Hangzhou) Motor Sales Co.,
Ltd.
5. The Company’s 2019 final operating reports
6. The Company's accumulated losses amounting to one-half of the paid-in
capital.
7. The Company’s 2019 losses make-up
8. The Company’s capital reduction to make up losses
9. The distribution of profit sharing remuneration to employees and
Approved as submitted after the
directors for 2019
chair’s consultation with all the
Board of 10. The Company's endorsement and guarantee facility for 2020
2020/03/30 directors and independent
Directors 11. Amendment to certain provisions of the Company’s “Articles of
directors present and after
Incorporation.”
thorough discussion
12. Amendment to certain provisions of the Company’s “Rules of Procedure
for Shareholder Meetings.”
13. The Company’s convening of 2020 regular shareholder meeting.
14. The Company’s issuance of Letter of Operating Support (LOS).in 2020.
15. Amendment to certain provisions of the Company’s “Remuneration
Committee Charter”.
16. Amendment to certain provisions of the Company’s “Corporate
Governance Best Practice Principles”.
17. Amendment to certain provisions of the Company’s “Ethical Corporate
Management Best Practice Principles”.
18. A lease agreement between the Company and a related party for real
estateright-of-use assets
2020/05/08 Board of
Directors		 1. 13th meeting of the 7th Board of Directors of Yulon Nissan Motor Co.,
Ltd.
2. The Company issued a Letter of Commitment and a Letter of Operating
Support (LOS) for the adjustment of Hna-Chuang Automobile
Information Technical Center Co., Ltd.
3. The Company’s plan to sell the land of Jianxing Section 146 and 147 and
Jianxing Section 81 and 82 of Nantou City, Nantou County
4. A lease agreement between the Company and a related party for real
estate right-of-use assets		 Approved as submitted after the
chair’s consultation with all the
directors and independent
directors present and after
thorough discussion

Annual Report 2020 57

Corporate governance report

Meeting
Date Important motions Resolution
type
1. The Company’s 2019 final operating reports
2. The Company's accumulated losses amounting to one-half of the paid-in
capital.

3. The Company’s 2019 losses make-up		 After a motion-by-motion vote,
4. The Company’s capital reduction to make up losses the number of voting rights in
General
5. The distribution of profit sharing remuneration to employees and favor of the motion met the
2020/06/18 Meeting of
directors for 2019 statutory requirements, and all
shareholders
6. The Company's endorsement and guarantee facility for 2020 motions were approved as
7. Amendment to certain provisions of the Company’s “Articles of submitted.
Incorporation.”
8. Amendment to certain provisions of the Company’s “Rules of Procedure
forShareholder Meetings.”
2020/08/10 Board of
Directors		 1. The Company's use of land and buildings as mortgages to obtain a loan
facility.
2. Interest rate adjustment of the Company's funds lent to Luxgen
(Hangzhou) Motor Sales Co., Ltd
3. The Company’s issuance of a Letter of Operating Support (LOS) for the
bank facility of US$5.1 million for Yulon Motor Finance (China)
Limited.
4. Cash capital increase by the Company to its subsidiary, Luxgen Motor
Co., Ltd Cash capital increase by the Company to Luxgen Motor Co.,
Ltd.
5. Formulation of the record date of capital reduction and the record date of
share replacement
6. Amendments to the “Internal Control System“ and “Implementation
Rules for Internal Audit“ of the Company's stock affairs.
7. The appointment of the Company’s managerial officer.
8. A lease agreement between the Company and a related party for real
estateright-of-use assets.		 Approved as submitted after the
chair’s consultation with all the
directors and independent
directors present and after
thorough discussion
1. 16th meeting of the 7th Board of Directors of Yulon Nissan Motor Co.,
Ltd.
2. The Company’s donation to the Wu Shun-Wen’s News Scholarship
Foundation
3. The Company’s issuance of a Letter of Operating Support (LOS) for the
Approved as submitted after the
bank facilities of RMB173.4 million and US$2.55 million for Yulon
chair’s consultation with all the
Board of Motor Finance (China) Limited.
2020/11/10 directors and independent
Directors 4. The appointment of the Company’s managerial officer.
directors present and after
5. The Company’s 2021 audit plan
thorough discussion
6. Formulation of the Company's risk management policy
7. Amendment to certain provisions of the Company’s “Procedure for Board
of Directors Meetings”.
8. Amendment to certain provisions of the Company’s “Board of Directors
Evaluation Measures”.
1. The Company’s 2021 business objectives
2. Amendment to certain provisions of the Company’s “Articles of
Incorporation.”
3. Liquidation and capital increase of “Changsha Yulu“, a Mainland
dealership company invested by the Company

4. Discontinuance and transfer of “Tongling Kuo Tong“, a Mainland		 Approved as submitted after the
dealership company invested by the Company chair’s consultation with all the
Board of
2021/01/28
5. Transfer of equity interests in “Jiangmen Junxing” and “Jiangmen YuLi”,		 directors and independent
Directors
Mainland dealership companies invested by the Company directors present and after
6. The Company’s issuance of a Letter of Operating Support (LOS) for the thorough discussion
bank facilities of RMB51 million for Yulon Motor Finance (China)
Limited.
7. The appointment of the Company’s managerial officer.
8. A lease agreement between the Company and a related party for real
estateright-of-use assets.
9. The Company’s 2020 final operating reports
2. The proposal for the distribution of earnings of the Company in 2020;
3. The distribution of profit sharing remuneration to employees and
directors for 2020
Approved as submitted after the
4. The Company's endorsement and guarantee facility for 2021
chair’s consultation with all the
Board of
5. Lift of non-compete restrictions on the new directors of 16th term
2021/03/25 directors and independent
Directors 6. Amendment to certain provisions of the Company’s “Articles of
directors present and after
Incorporation”.
thorough discussion
7. Amendment to certain provisions of the Company’s “Procedure for
Election of Directors”.
8. The Company’s convening of 2021 regular shareholder meeting.
9. The Company’s issuance of a Letter of OperatingSupport(LOS)for the

58 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Meeting
Date Important motions Resolution
type
bank facilities of US$10.2 million for Yulon Motor Finance (China)
Limited.
10. The Company's bank facility application for 2021
11. The Company’s issuance of Letter of Operating Support (LOS).in 2021.
12. The Company’s Statement of Internal Control System for 2020
13. Appointment and professional fees of CPAs and evaluation of their
Independence and competence for 2021
14. A lease agreement between the Company and a related party for real
estate right-of-use assets
2. Review of the implementation of the resolutions of the 2020 regular shareholder meeting
Resolutions Review oftheimplementation
Adoption of the Company’s 2019 final
accountingreports		 According to the voting result, the number of vote rights in favor of the motion
met the statutoryrequirements,andthemotionwasadoptedas submitted.
Adoption of the Company’s 2019 losses
make-up.		 According to the voting result, the number of vote rights in favor of the motion
met the statutory requirements, and the motion was adopted as submitted. The
Company's loss after tax was NT$24,465,407,975 according to the 2019 final
accounting reports In consideration of the Company's profitability, future
operating plan, capital requirements and changes in the industry environment,
as well as long-term shareholders' equity and the Company's long-term
financialplanning,no dividendsare proposedfor this year.
The Company’s capital reduction to
make up losses		 According to the voting result, the number of vote rights in favor of the motion
met the statutory requirements, and the motion was adopted as submitted. The
capital reduction amounted to NT$5,729,199,090, resulting in the retirement of
572,919,909 issued shares, or 364.239 shares per 1,000 shares (approximately
635.761 shares exchange per 1,000 shares), approved by the Financial
Supervisory Commission, Executive Yuan with its Letter Jin-Guan-Zheng-Fa-
Zi 1090349242 dated July 21, 2020 and the capital decrease came to effect and
was further approved by the Ministry of Economic Affairs with its Letter Jing-
Shou-Shang-Zi 10901157830 dated August 18, 2020. Listing date for the new
shares:2020/10/19.
Amendment to certain provisions of the
Company’s “Articles of Incorporation”.		 According to the voting result, the number of vote rights in favor of the motion
met the statutory requirements, and the motion was adopted as submitted. The
amendmenthas beencompleted and announced onthe Company's website.
Amendment to certain provisions of the
Company’s “Rules of Procedure for
Shareholder Meetings”.		 According to the voting result, the number of vote rights in favor of the motion
met the statutory requirements, and the motion was adopted as submitted. The
amendment has been completed and announced on the Company's website.

(XII) Any directors or independent directors have different opinions on the resolutions reached by the Board of Directors with a record or written statement made in 2020 through the publication date of the annual report:

None of the directors or independent directors disagreed with the important resolutions passed by the Board of Directors.

(XIII) For 2020 through the date of publication of the annual report, any resignation and dismissal of the Company’s chairperson, president, accounting officer, finance officer, internal audit officer, corporate governance officer, and R&D officer: None.

(XIV) Other matters to be disclosed: None.

Annual Report 2020 59

Corporate governance report

IV. Information on CPAs’ professional fees

Scale regarding the information on auditing fees

CPA firm CPA name CPA name Audit period Remarks
Deloitte & Touche Guo Li-Wen Fan Yu-Wei January 1, 2020 to December 31, 2020

Note: If the accountant or accounting firm has been changed this year, the review period shall be listed and the reason of change shall be noted in the remark column.

Currencyunit: NT$1,000 Currencyunit: NT$1,000 Currencyunit: NT$1,000 Currencyunit: NT$1,000 Currencyunit: NT$1,000
Fee
Audit fee Non-audit fee Total
Breakdown
1 LessthanNT$2,000thousand
2 NT$2,000 thousand (incl.)~NT$4,000 thousand
3 NT$4,000 thousand (incl.)~NT$ 6,000 thousand
4 NT$ 6,000thousand (incl.)~NT$ 8,000thousand
5 NT$ 8,000thousand (incl.)~NT$10,000thousand
6 More than NT$10,000 thousand(incl.)
  • (I) If the non-audit fees paid to the attesting CPA, the CPA firm and its affiliates account for at least one-fourth of the audit fees, the amount of audit and non-audit fees and the content of non-audit services shall be disclosed:

Information on CPA Professional Fees

Currency unit: NT$1,000

Non-auditfee Non-auditfee Non-auditfee Non-auditfee Non-auditfee
CPA
CPA firm Audit fee
Policy		 Company Human Others CPA auditing period Remarks
name

design
registration		 resources (Note 2) Subtotal
Deloitte &
Touche		 Guo Li-
Wen		 January 1, 2020 to
December 31, 2020		 The other items are
$4,390 thousand in
Investment Commission
application, $2,046
thousand in advance
payment, and $210
thousand in other
expenses.
23,380 0 0 0 6,646 6,646
Fan Yu- January 1, 2020 to
Wei December 31, 2020

Note 1: If there is any CPA or CPA Firm being replaced in current year, the auditing period should be indicated separately and the reason for such replacement should be detailed in the remark column; also, the information regarding the audit and non-audit fee paid should be disclosed.

  • Note 2: non-audit remuneration should be listed separately by service category. If the “Other“ category amounts to 25% of total non-audit remuneration, then services must be detailed in the remarks column.

  • (II) If a change in accounting firm resulted in a lower audit remuneration for that year compared to the previous year, the amount, percentage, and reason of the reduction must be disclosed: Not applicable.

  • (III) If the auditing fee is reduced by more than 10% than the previous year, disclose the reduced amount and proportion of the auditing fees and the reason for reduction: Not applicable

Not applicable.

60 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • V. Information on change of CPAs: If there is a change of CPAs in the last two years and the subsequent period, the following information should be disclosed.

  • (I) Predecessor CPA

Date of change Approved by the Board of Directors on March 6, 2020 Approved by the Board of Directors on March 6, 2020 Approved by the Board of Directors on March 6, 2020 Approved by the Board of Directors on March 6, 2020 Approved by the Board of Directors on March 6, 2020
Reason for change and
explanation		 The attesting CPAs appointed by the Company were formerly Tai Shun-Wai and Fan Yu-Wei
from Deloitte & Touche. In accordance with the internal rotation requirement of Deloitte &
Touche, the appointed CPAs of the Company have been changed from Tai Shun-Wai and Fan
Yu-Wei to Guo Li-Wen and Fan Yu-Wei from the first quarter of 2020.
Indicate whether the Party involved
CPA Client
appointment is terminated Condition

or not accepted by the		 Proactively terminate the appointment Not applicable Not applicable
client or CPA Not accept (continue) the appointment Not applicable Not applicable
Opinions in and reason for
audit reports issued other
than unqualified opinion in
the last two years


None
Accounting principles or practices
Disclosure of financial statements
Audit scope or procedure
Disagreement with the Yes

issuer (Yes/No)		 Others
None
Description
Not applicable
Other disclosures
(Matters to be disclosed as
set out in Item 1-4 to 1-7,
Subparagraph 6 of Article
10 of these Regulations)		 None

(II) Successor CPAs:

(Matters to be disclosed as
set out in Item 1-4 to 1-7,
Subparagraph 6 of Article
10 of these Regulations)
(II)
Successor CPAs:		 None
CPA firm Deloitte &Touche
CPA name CPAs GuoLi-Wen andFan Yu-Wei
Date ofengagement April 1,2021
Subjects of consultation and consultation results in case, Not applicable
prior to the formal engagement of the successor certified
public accountant, the company consulted the newly
engaged accountant regarding the accounting treatment of
or application of accounting principles to a specified
transaction or the type of audit opinion that might be
rendered onthe company'sfinancial report
Written opinion of the successor CPA on matters on which Not applicable
the successor CPA disagreed with thepredecessor CPA

(III) Reply letter from the predecessor CPAs: Not applicable.

  • VI. Where the company's Chairman, President, or any managerial officer in charge of finance or accounting matters has in the preceding year held a position at the accounting firm of its certified public accountant or at an affiliate of such accounting firm, the name and position of the person and the period during which the position was held shall be disclosed: None.

Annual Report 2020 61

Corporate governance report

  • VII. Transfer and change of shareholding of directors, managerial officers and shareholders holding more than 10% of the shares from 2020 through the date of publication of the annual report

(I) Changes in shareholdings of directors, managerial officers and major shareholders

Unit: shares

2020 (Note1) 2020 (Note1) 2021up toApril 19 2021up toApril 19
Title
Name Increase (decrease) Increase (decrease) Increase (decrease) Increase (decrease)
(Note 1)
insharesheld inshares pledged insharesheld inshares pledged
Institutional Director Tai Yuen Textile Co.,Ltd. (103,772,072) (33,874,228) - -
Institutional Director ChinaMotorCorporation (95,513,725) - - -
Institutional Director YenChing-Ling’sFoundation (6,296,908) - - -
Chairman YenChen Li-Lien (137,655) - 32,874,383 -
Vice Chairman Tso, Chi-Sen(Note2) - - - -
Vice Chairman Kuo-Rong Chen(Note 3) (4,335) - - -
Director Shin-I Lin - - - -
Director LiangZhang - - - -
Director Jack, J.T.Huang - - - -
Director Zhen-XiangYao 98,326 - 90,000 -
Independent Director Yi-HongHsieh - - - -
IndependentDirector Zhongqi Zhou - - - -
IndependentDirector Yen-Chin,Tsai - - - -
President Zhen-XiangYao 98,326 - 90,000 -
VicePresident Jian-Hui Li (22) - - -
Assistant VicePresident Wen-Yi Lo (414) - - -
AssistantVicePresident BinglinChen(Note4) - - - -
Assistant VicePresident QiuMinhui(Note 5) - - - -
Assistant VicePresident Hong-Zheng Chen (11) - - -
Manager Shi-Ting Chen (1,118) - - -
Manager Li-Hua Wu (3,210) - - -
Manager Wen-Yuan Li (28) - - -
Manager Hong-Zheng Chen - - - -
Manager Chong-YuanChen - - - -
Manager Shen-Guo Wang - - - -
Manager Meng-Yue Jie - - - -
Manager Shih-LinWu - - - -
Manager Hsun-Kuei Hsieh(Note 6) - - - -
Manager King-WaiWong (Note 7) - - - -
MajorShareholders Tai Yuen Textile Co.,Ltd. (103,772,072) - - -
MajorShareholders China MotorCorporation (95,513,725) - - -
Major Shareholders Kenneth Yen(Note 8) (58,324,186) - (98,623,149) -

Note 1: The increase (decrease) in the number of shares held in 2020 includes the decrease in the number of shares held due to capital reduction.

Note 2: The corporate director, Tai Yuen Textile Co., Ltd. reassigned its representative, and the new director, Tso, Chi-Sen, took office on 2021.02.26. On 2021.03.25, the Board of Directors elected Director Tso, Chi-Sen as the new Vice Chairman.

Note 3: The corporate director, Tai Yuen Textile Co., Ltd. reassigned its representative, and the vice chairman, Kuo-Rong Chen, was relieved of office on 2021.02.26.

Note 4: Newly elected on 2020.11.10.

Note 5: Newly elected on 2021.01.28.

Note 6: Newly elected on 2021.01.28.

Note 7: Newly elected on 2021.01.28.

Note 8: The spouse and minor children of the major shareholder, Kenneth Yen , completed a partial inheritance of shares on 2021.1.21.

(II) Information on the related party of the equity transfer: Information on the related party of the equity transfer: Information on the related party of the equity transfer: Information on the related party of the equity transfer:
Name Reasons
for equity
transfer		 Transaction
day		 counterparty The relationship between
counterparty and
company,shareholding of
directors, managerial officers
and shareholders holding more
than 10% of the shares		 Number of
shares		 Trading
price
Kenneth
Yen		 Inherit 2021.1.21 Yen Chen Li-
Lien		 husband and wife 32,874,383 None
Kenneth
Yen		 Inherit 2021.1.21 Daughter of
Yen Chen Li-
Lien		 father and daughter 32,874,383 None
Kenneth
Yen		 Inherit 2021.1.21 Son of Yen
Chen Li-Lien		 father and son 32,874,383 None

62 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(III) Information on the related party of the equity pledge: None.

VIII. Information on the top ten shareholders who are related to each other or are spouses or relatives within the second degree of kinship

VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship		 VIII. Information on the top ten shareholders who are related to each other or are
spouses or relatives within the second degree of kinship
April 19,2021
The name of and relationship
among the top 10 shareholders if
Total
Shareholding of

anyone is a related party, a
The individual shareholding in
spouse and minor
spouse or a relative within
hhldi h f
Name Sareong children (Note 2) te name o second degree of kinship of
h N 2 Remarks
(Note 1) oters (ote ) another
(Note 3)
Number
Number of Number of
% % of % Name Relation
shares shares
shares
Tai Yuen Textile Co.,
Ltd.
Representative: Yen
Chen Li-Lien		 181,128,973
33,114,652

18.11
3.31

－
68,927,571		 －
6.89		 －
－		 －
－		 China Motor
Corporation		 Same
chairperson
Yen Ching-Ling’s
Foundation
Same
chairperson
China Motor
Tai Yuen Textile Same
Corporation CLd hi
166,714,441
16.67
－		 - － － o.,t. carperson
Representative: Yen ’
33,114,652
3.31
68,927,571		 6.89 － － Yen Ching-Lings
Same
Chen Li-Lien
Fdti
hi
ounaon carperson
Yen Chen Li-Lien 33,114,652
3.31
68,927,571		 6.89 － － Daughter of Yen
Chen Li-Lien		 mother and
daughter
Son of Yen Chen
Li-Lien		 mother and
son
Daughter of Yen Chen
－		 － － － Yen Chen Li- mother and
32,874,383
3.28
Li-Lien Lien daughter
Son of Yen Chen Li-
－		 － － － Yen Chen Li- mother and
32,874,383
3.28
Lien Lien son
Jiayuan Investment
28,552,880
2.85
－		 － － － None None
Co., Ltd.
Fande Investment
Co., Ltd.
Representative: Mao
Xiao-Ling		 16,152,669
0

1.61
0

－
－		 －
－		 －
－		 －
－		 Tai Yuen Textile
Co., Ltd.		 Chairman of
Fande Investment
Co., Ltd. is the
director of Tai-
Yuen Textile Co.,
Ltd.
Yen Ching-Ling’s
China Motor Same

Foundation
10,990,936
1.09
－		 - － － Corporation chairperson
Representative: Yen
33,114,652
3.31
68,927,571		 6.89 Tai Yuen Textile Same
Chen Li-Lien CLd hi
o.,t. carperson
Chase Custodian
Advanced Starlight
Total International
EquityIndex		 7,948,574
0.79
－		 － － － None None
J.P. Morgan － － － －
Custodian Van Garde
Emerging Markets 7,917,444
0.79		 None None
Equity Index Fund
Account

Note 1: Illustrate the top-ten shareholders. The name of the corporate shareholders and the name of its representative should be illustrated separately.

Note 2: The calculation of shareholding ratio refers to the shareholding ratio calculated in accordance with the shareholding of the shareholders, spouse, minor children, and in the name of others.

  • Note 3: The relationship among the shareholders (including legal person and natural person) in the preceding paragraph should be disclosed in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Annual Report 2020 63

Corporate governance report

  • IX. The total number of shares and the consolidated equity stake percentage held in any single reinvested enterprise by the Company, its directors, supervisors, managerial officers, or any companies controlled either directly or indirectly by the Company
managerial officers, or
the Company		 any companies controlled either directly or indirectly by any companies controlled either directly or indirectly by any companies controlled either directly or indirectly by any companies controlled either directly or indirectly by any companies controlled either directly or indirectly by any companies controlled either directly or indirectly by
April 19,2021
Investment by directors,
supervisors, managerial
Investment by the Company
officers and directly or		 Total investment
indirectly controlled
enterprises
Investee (Note) Number of Number of Number of
shares shares shares
Shareholdi
(Investment Shareholding (Investment Shareholding
(Investment
ng
amount, percentage amount, percentage amount,
percentage
thousands of thousands of thousands of
NTD*) NTD*) NTD*)
ChinaMotorCorporation 44,592,177 8.05% 184,000,688 33.24% 228,592,865 41.29%
Taiwan Acceptance Corporation 152,044,446 45.75% 5,647,391 1.70% 157,691,837 47.45%
Taiwan Acceptance Corporation -
preferred stock A		 36,603,992 36.60% 17,256,608 17.26% 53,860,600
53.86%
Yueki IndustrialCo.,Ltd. 12,766,887 65.58% 2,985,888 15.34% 15,752,775 80.92%
Yue ShengIndustrialCo.,Ltd. 23,061,050 80.07% 7,750 0.03% 23,068,800 80.10%
SinChiCo.,Ltd. 108,000,000 100.00% 0 0.00% 108,000,000 100.00%
China CastIron Pipe Co.,Ltd. 24,850 77.66% 6,109 19.09% 30,959 96.75%
Uni AutoPartsManufacture Co.,Ltd 21,728,516 25.01% 13,033,137 15.00% 34,761,653 40.01%
Uni-Calsonic Corp. 5,982,575 30.68% 6,883,525 35.30% 12,866,100 65.98%
Yu ChangMotorCo.,Ltd. 13,998,500 64.99% 1,000 0.00% 13,999,500 65.00%
CocTooling & Stamping Co.,Ltd. 25,469,581 37.76% 41,986,541 62.24% 67,456,122
99.99%
YuanlongAutomobile Co.,Ltd. 7,999,000 20.00% 1,000 0.00% 8,000,000 20.00%
Yu ChingBusiness Co.,Ltd. 72,691,327 60.00% 48,460,885 40.00% 121,152,212
100.00%
YuPongBusiness Co.,Ltd. 28,470,422 100.00% 0 0.00% 28,470,422
100.00%
YungHangInvestment Co.,Ltd. 77,622,000 100.00% 0 0.00% 77,622,000 100.00%
Yushin MotorCo.,Ltd. 19,999,000 99.99% 1,000 0.01% 20,000,000 100.00%
ChinaEngine Corporation 32,000,000 18.95% 87,999,000 52.10% 119,999,000 71.05%
ChenglongAutomobile ServiceLimited 11,490,704 27.00% 1,414 0.00% 11,492,118 27.00%
Directorof RO C SPICER LTD 102,302 20.46% 148,096 29.62% 250,398 50.08%
YutangAutomobile Co.,Ltd. 7,117,075 20.33% 1,675 0.00% 7,118,750 20.34%
CarplusAutoLeasing Corporation 3,254,036 3.46% 64,570,378 68.57% 67,824,414
72.03%
Empower Motors Co.,Ltd. 5,998,780 20.00% 8,101,220 27.00% 14,100,000 47.00%
Yulon It SolutionsInc. 16,663,998 87.71% 2,336,002 12.29% 19,000,000 100.00%
EsinnCo.,Ltd 17,999,000 99.99% 1,000 0.01% 18,000,000 100.00%
YulonOverseasInvestment Co.,Ltd. 1,083,097,900 100.00% 0 0.00% 1,083,097,900 100.00%
Nissan MotorCo.,Ltd. 143,500,000 47.83% 11,029,000 3.68% 154,529,000 51.51%
Y-Teks Co.,Ltd. 602,124 34.00% 212,388 11.99% 814,512
45.99%
TokioMarine NewaInsurance Co.,Ltd. 52,009,524 17.39% 70,817,524 23.68% 122,827,048 41.08%
Hna-Chuang Automobile Information
TechnicalCenterCo.,Ltd.		 747,400,107 58.84% 522,700,000 41.15% 1,270,100,107
99.99%
Huilian Automobile Co.,Ltd. 6,116,138 20.34% 1,000 0.00% 6,117,138 20.35%
Luxgen MotorCo.,Ltd. 605,000,000 100.00% 0 0.00% 605,000,000 100.00%
Yulon-Administered Enterprises
0 0% 10,000,000 100% 10,000,000
100.00%
CompanyLimited.
YulonConstructionCo.,Ltd. 122,100,000 100.00% 0 0.00% 122,100,000 100.00%
Tai YaInvestment (HK) Co.,Ltd. 1,584,917 20.50% 2,242,077 29.00% 3,826,994
49.50%
Fujian Taiya Automobile Industry Co., USD 5,166 USD 7,308 USD 12,474

20.50%
29.00%

49.50%
Ltd. thousand* thousand* thousand*
RMB 510,000 RMB 490,000 RMB 1,000,000
Yulon Motor Finance (China) Limited 51.00% 49.00%

100.00%
thousand* thousand* thousand*
AdvancePower Machinery Co.,Ltd. 500,000 100.00% 0 0.00% 500,000 100.00%

Note: The Company’s equity-method investments.

64 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

IV. Status of Capital Planning

I. Capital and Shares

  • (I) Source of Capital

  • Formation of capital

April 19, 2021 Unit: NTD

Authorized capital Authorized capital Paid-upcapital Paid-upcapital Remarks Remarks Remarks
d
i
Year an
Issung		 Sources of shares Paid in properties
month price Number of shares Amount Shares Amount Others
and dividends other than cash
(1997) Tai-Cai-Sheng
Capital increase by
1997.09 10 1,300,000,000 13,000,000,000
1,186,800,000		 11,868,000,000
-
(I) No. 70410 on
cash
1997.9.22.
(1998) Tai-Cai-Sheng
Capital increase
1998.06 10 1,780,000,000 17,800,000,000
1,424,160,000		 14,241,600,000 -
(I) No. 48031 on
from earnings
1998.6.2.
(1999) Tai-Cai-Sheng
Capital increase
1999.05 10 1,780,000,000 17,800,000,000
1,566,576,000		 15,665,760,000 -
(I) No. 49148 on
from earnings
1999.5.26.
(2000) Tai-Cai-Sheng
Capital increase
2000.12 10 2,000,000,000 20,000,000,000
1,644,904,800		 16,449,048,000 -
(I) No. 102246 on
from earnings
2000.12.26.
(2001) Tai-Cai-Sheng
Capital increase
2001.06 10 2,000,000,000 20,000,000,000
1,726,300,040		 17,263,000,400 -
(I) No. 136949 on
from earnings
2001.6.11.
Jing-Shou-Shang-Zi
Capital increase
2002.09 10 2,000,000,000 20,000,000,000
1,829,146,403		 18,291,464,030 -
No. 09101377780 on
from earnings
2002.9.16.
Jing-Shou-Shang-Zi
2004.01 10 2,000,000,000 20,000,000,000
1,371,216,258		 13,712,162,580 Capital reduction -
No. 09301008840 on
2004.1.20.
Jing-Shou-Shang-Zi
Capital increase
2004.08 10 2,000,000,000 20,000,000,000
1,391,784,501		 13,917,845,010 -
No. 09301155140 on
from earnings
2004.8.26.
Jing-Shou-Shang-Zi
Capital increase
2005.09 10 2,000,000,000 20,000,000,000
1,412,603,608		 14,126,036,080 -
No. 09401173740 on
from earnings
2005.9.6.
Jing-Shou-Shang-Zi
Capital increase
2006.09 10 2,000,000,000 20,000,000,000
1,433,760,592		 14,337,605,920 -
No. 09501198260 on
from earnings
2006.9.4.
Jing-Shou-Shang-Zi
Convertible
2007.03 10 2,000,000,000 20,000,000,000
1,445,538,359		 14,455,383,590 -
No. 09601052210 on
corporate bonds
2007.3.19.
Jing-Shou-Shang-Zi
Convertible
2007.08 10 2,000,000,000 20,000,000,000
1,449,897,329		 14,498,973,290 -
No. 09601201720 on
corporate bonds
2007.8.21.
Conversion of
Jing-Shou-Shang-Zi
corporate bonds,
2007.12 10 2,000,000,000 20,000,000,000
1,477,262,657		 14,772,626,570 -
No. 09601304650 on
capital increase
2007.12.12.
from earnings
Jing-Shou-Shang-Zi
Convertible
2008.04 10 2,000,000,000 20,000,000,000
1,537,426,961		 15,374,269,610 -
No. 09701090620 on
corporate bonds
2008.4.18.
Jing-Shou-Shang-Zi
Convertible
2008.08 10 2,000,000,000 20,000,000,000
1,547,343,087		 15,473,430,870 -
No. 09701194450 on
corporate bonds
2008.8.11.
Jing-Shou-Shang-Zi
Capital increase
2008.09 10 2,000,000,000 20,000,000,000
1,570,404,491		 15,704,044,910 -
No. 09701249270 on
from earnings
2008.8.11.
Jing-Shou-Shang-Zi
Convertible
2009.09 10 2,000,000,000 20,000,000,000
1,570,435,418		 15,704,354,180 -
No. 09801203160 on
corporate bonds
2009.9.7.
Jing-Shou-Shang-Zi
Convertible
2010.01 10 2,000,000,000 20,000,000,000
1,570,686,264		 15,706,862,640 -
No. 09901006830 on
corporate bonds
2010.1.18.
Jing-Shou-Shang-Zi
Convertible
2010.04 10 2,000,000,000 20,000,000,000
1,572,919,909		 15,729,199,090 -
No. 09901069120 on
corporate bonds
2010.4.12.
Jing-Shou-Shang-Zi
2020.08 10 2,000,000,000 20,000,000,000
1,000,000,000		 10,000,000,000 Capital reduction
No. 10901157830 on
2020.8.18.

Note 1: Information is presented up till the publication date of this annual report.

Note 2: Date and document reference of effected (approved) incremental capital have been presented.

Note 3: Shares issued at prices lower than face value have been labeled in a visible manner.

Note 4: In-kind capital payments such as monetary debt and technology are described separately with details on the types and amounts of contribution provided. Note 5: Private placements have been highlighted in a visible manner.

Annual Report 2020 65

Status of Capital Planning

2. Stock Type

Unit: shares

Authorized capital Authorized capital
Stock Type Shares in circulation Remarks
i h l
(TWSE-listed) Unssued Sares Tota
Common stock 1,000,000,000 1,000,000,000 2,000,000,000

Note: Please indicate whether the stock is listed on TWSE or TPEx (add a note if it is restricted from being listed or traded on TWSE or TPEx).

(II) Shareholder structure

(II)
Shareholder structure		 (II)
Shareholder structure		 (II)
Shareholder structure		 (II)
Shareholder structure		 (II)
Shareholder structure		 (II)
Shareholder structure		 (II)
Shareholder structure
April 19,2021
Shareholder Foreign


Government		 Financial Other
structure Individual
institutions and		 Total

agency		 institution corporations
Quantity foreigners
No. of People 4 16 243 116,903 318 117,484
Number of shares
90,925 13,796,793 470,962,808 439,238,500 75,910,974 1,000,000,000
held
Shareholding
percentage(%)		 0.01 1.38 47.09 43.92 7.60 100.00
Shareholding percentage byMainland China investors: 0

Note: All TWSE/TPEX/Emerging Stock Market companies listing for the first time are required to disclose Chinese investors' holding interests. A Chinese investor refers to an individual, corporation, organization, or institution of Mainland origin, or any company owned by the above party in a foreign location, as defined in Article 3 of the “Regulation Governing Mainland Residents' Investment in Taiwan“.

(III) Diversity of Ownership

(III) Diversity of Ownership (III) Diversity of Ownership (III) Diversity of Ownership (III) Diversity of Ownership
April 19, 2021
(Denomination of$10per share)
Shareholding
Range of Shares No. of Shareholders Number of shares held
percentage
1 to 999 65,960 15,035,225
1.50
1,000 to 5,000 40,557 80,928,301
8.09
5,001to10,000 5,861
43,867,773
4.39
10,001to15,000 1,646 20,746,204
2.08
15,001 to20,000 984
18,109,455
1.81
20,001 to 30,000 831
21,031,085
2.10
30,001 to 50,000 665 26,137,637
2.61
50,001to100,000 518 36,105,163
3.61
100,001to200,000 228 32,169,123
3.22
200,001to400,000 121
32,250,905
3.23
400,001 to 600,000 32
15,401,333
1.54
600,001 to 800,000 22
15,219,463
1.52
800,001 to1,000,000 9 8,331,096
0.83
Over 1,000,001 50 634,667,237
63.47
Total 117,484
1,000,000,000
100.00

Preferred stock: None.

66 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(IV) List of Major Shareholders

List of major shareholders (shareholding of 5% or more or shareholding of the top ten major shareholders)

April 19,2021
Shares
Number of shares held Shareholding percentage
Names of MajorShareholders
Tai Yuen Textile Co.,Ltd. 181,128,973 18.11%
ChinaMotorCorporation 166,714,441 16.67%
YenChen Li-Lien 33,114,652 3.31%
Daughter of Yen Chen Li-Lien 32,874,383 3.28%
Son of Yen Chen Li-Lien 32,874,383 3.28%
Jiayuan Investment Co.,Ltd. 28,552,880 2.85%
FandeInvestment Co.,Ltd. 16,152,669 1.61%
YenChing-Ling’sFoundation 10,990,936 1.09%
Chase Custodian Advanced Starlight Total International
EquityIndex		 7,948,574 0.79%
J.P. Morgan Custodian Van Garde Emerging Markets 7,917,444 0.79%
EquityIndex FundAccount

(V) Information Relating to Market Price, Net Worth, Earnings, and Dividends per Share for the Last

Two Years

Items
Year The current year up to
2019 2020
April 30, 2021 (Note 8)
Market
price per
share
(Note1)		 Highest 24.95 47.00 53.10
Lowest 17.55 14.40 39.80
Average 20.31 24.58 44.54
Net value
per share
(Note2)		 BeforeDistribution 29.14 48.74 50.09
After Distribution 29.14 - -
Earnings
per share		 Weighted average number of shares 957,815 thousand
shares		 977,704 thousand
shares		 977,727 thousand
shares
Earnings pershare (Note 3) (26.13) 2.80 1.39
Cashdividends - - -
Stock dividends - - - -
Dividends
h		 distribution - - - -
per sare Cumulative undistributed dividends
- - -
(Note4)
Analysis of
ROI		 P/E ratio (Note 5) (0.78) 8.78 -
P/D ratio (Note 6) - - -
Cashdividends yield (Note 7) - - -
  • Where stock dividends were paid from earnings or capital reserves, the information on the market price and cash dividends adjusted retroactively according to the number of shares issued shall also be disclosed.

Note 1: The highest and lowest market prices of common stock each year are shown and the annual average market price is calculated according to the strike price and the trading volume in each year.

Note 2: Calculated based on the number of outstanding shares at year-end; amount of distribution resolved in next year's shareholders meeting is presented in the table.

Note 3: If retroactive adjustments are required because of free share distribution, earnings per share before and after adjustments shall be shown.

Note 4: If equity securities are issued with terms that allow dividends to be accrued and accumulated until the year the Company makes profit, the amount of cumulative undistributed dividends up till the current year is disclosed separately.

Note 5: P/E ratio = Average closing price per share in current year/earnings per share

Note 6: P/D ratio = Average closing price per share in current year/cash dividends per share

Note 7: Cash dividend yield = Cash dividends per share / average closing price per share in current year

  • Note 8: Net worth per share and earnings per share should be based on audited (auditor-reviewed) data as at the latest quarter before the publishing date of this annual report. For all other fields, data should be provided as at the end of their respective years.

Annual Report 2020 67

Status of Capital Planning

  • (VI) The Company’s dividend policy and execution

  • The Company’s dividend policy

The payment of dividends is important to shareholders' interests. To clarify the dividend policy, the Company's Articles of Incorporation provide as follows:

With the earnings surplus of the Company shown in the final accounting reports in a fiscal year, after the sum to make good loss in previous year(s) and to pay taxes, a sum 10% shall be first withheld as legal reserve and as special reserve as required by the competent authority. The final balance, if any, in combination with the beginning unappropriated retained earnings, shall be distributable surplus. Where the Company operates business amidst an environment as a mature and stable industry, given such facts notably the Company’s profitability, future operating plans, funding needs and changes in the industrial environments and taking into account the long-term shareholders’ equity and the Company’s long-term financial planning, the Company’s dividend distribution plan is mapped out not below 10% of the total surplus available for distribution in the current year in principle. The dividends are distributed in either cash or in stocks among which the proportion of cash dividends shall not be less than 20% of the aggregate total dividends. Eventually, the Board of Directors shall work out the percentage of distribution to be resolved in the shareholders’ meeting.

  1. Dividend distribution proposed for the next annual general meeting:

    • The Company shall propose to distribute cash dividends of NT$1 per share at the 2021 regular shareholder meeting and set July 29, 2021 as the base date for cash dividend distribution.

  2. Significant changes in the expected dividend policy are described below.

    • The Company's dividend policy for the next three years is intended to be implemented in accordance with the aforementioned distribution policy without significant changes.

  3. (VII) Impacts on business performance and earnings per share if the stock dividend proposal is approved during the annual general meeting:

This is not applicable as no issuance of bonus shares is carried out in the present fiscal year.

  • (VIII) Profit sharing remuneration for employees and directors

  • Proportion or range of employees' bonuses and Directors' remuneration specified in the Articles of Incorporation:

    • The Company shall set aside profit sharing remuneration as enumerated below for a year with profit:

    • i. Remuneration to directors: At 0.5% maximum, provided, that the independent directors shall not participate in the distribution of the aforementioned remuneration.

    • ii. Remuneration to employees at 0.1% minimum. The aforementioned remuneration to employees shall be duly distributed in either stocks or in cash as resolved by the Board of Directors. The distribution of remuneration to employees and directors should be reported in the shareholders’ meeting.

    • iii. The amount to make up such loss shall be retained beforehand before distribution based on the percentages mentioned in the preceding Paragraphs. The Company’s supervisors of the 14th term are, in accordance with Articles of Incorporation amidst the 51st amendment on 2013.6.11, entitled to the remuneration incurred before expiry of their tenure of office, discharge of resignation. The provisions under this Article regarding remuneration to directors are mutatis mutandis applicable to the ratio of remuneration, distribution procedures of remuneration and conditions of distribution.

In addition to the profit sharing remuneration to employees, the Company also provides incentive bonuses such as three festival bonuses, additional annual bonuses, and bonuses for the growth of the management team based on the operating performance and individual performance of employees to encourage employees to achieve better performance for the Company and shareholders.

  1. The estimation basis of the remuneration amount to employees, directors, and supervisors for the current period; the estimation basis of the number of shares of stock dividend to employees; and the accounting treatment of the discrepancy, if any, between the actual distributed amount of employees’ stock bonus and estimated figure thereof:

  2. i. The estimation of the remuneration amount to employees and directors for the current period is based on the net profit before tax. After reserving net income to cover accumulated loss, the Company still has accumulated loss in 2020, so the Company proposed not to distribute remuneration amount to employees and directors for the current period.

  3. ii. Where there is discrepancy between the actually distributed and the estimated amount, it shall be treated in accordance with the estimated.

  4. Remuneration proposals approved by the board of directors:

  5. The Company’s made pre-tax profits for 2020 before appropriation for profit sharing with employees and directors, but after making up losses from the previous year, there were still losses to be made up as of

68 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  1. In accordance with the Company’s Articles of Incorporation, the Board of Directors approved not to distribute profit sharing remuneration for employees and directors for the year.

  2. Appropriation of employees' and directors' profit sharing remuneration from prior year's earnings. The Company’s had pre-tax losses for 2019 before appropriation for profit sharing with employees and directors. In accordance with the Company’s Articles of Incorporation, the Board of Directors approved not to distribute profit sharing remuneration for employees and directors for the year.

  3. (IX) Repurchase of treasury shares: The Company has no repurchase of treasury shares, therefore, it is not applicable.

II. Issuance of corporate bonds

2017 1st domestic unsecured ordinary 2018 1st domestic unsecured ordinary
Type of corporate bonds
corporate bonds corporate bonds
IssueDate 2017.12.12 2018.12.25
Face value NT$1,000,000 NT$1,000,000
Place of Issue andTrading Domestic Domestic
Issuing price Issued at100% of face value Issued at100% of face value
Totalamount NT$10,000,000,000 NT$ 5,300,000,000
Bond A 5-year interest rate of 1.04% per Bond A 5-year interest rate of 1.18% per
annum annum
Interest rate
Bond B 7-year interest rate of 1.17% per Bond B 10-year interest rate of 1.80% per
annum annum
Duration Bond A 5-year $7.0 billion due on 2022.12.12.
Bond B 7-year $3.0 billion due on 2024.12.12.		 Bond A 5-year $3.6 billion due on 2023.12.25.
Bond B 10-year $1.7 billion due on
2028.12.25.
GuaranteeInstitution None None
Trustee Mega International Commercial Bank Co.,
Ltd.		 Mega International Commercial Bank Co.,
Ltd.
Underwriter KGISecurities Co.,Ltd. Yuanta Securities Co.,Ltd.
Certifying Lawyer Yisheng United Law Firm
GuoHui-Ji,lawyer		 Zhongda International Law Firm
WangHuai-Yu,lawyer
Deloitte & Touche Deloitte & Touche
Attesting CPA
TaiShun-Wai,Fan Yu-Wei, CPAs TaiShun-Wai,Fan Yu-Wei, CPAs
Repayment Methods One-off repayment of principal at maturity
fromthe date of issue		 One-off repayment of principal at maturity
fromthe date of issue
Outstanding amount to berepaid NT$10,000,000,000 NT$ 5,300,000,000
Clause on redemption or earlier
redemption		 None None
Restrictive clause None None
Name of the credit rating agency
Rating date, corporate bond rating
results		 Taiwan Ratings Co., Ltd. Taiwan Ratings Co., Ltd.
Amount of common stock,
foreign depositary receipts

or other marketable
Not applicable		 Not applicable
Other
securities converted
equity
(exchanged orsubscribed)
attached
Rules for issuing and

conversion (either by		 Not applicable Not applicable
exchange orpurchase)
Possible dilution of shareholdings

and impact on existing shareholders'		 Not applicable Not applicable
equity
Custody Agency Name for the
None None
ExchangeTarget

III. Preferred stock: None.

  • IV. Disclosure relating to depository receipts: None.

  • V. Status of employee stock certificates: None.

  • VI. The new shares from restricted employee stock option: None.

Annual Report 2020 69

Status of Capital Planning

VII. Disclosure on new shares issued in exchange of other company shares: None.

VIII. Progress on the use of funds

  • (I) Contents of the plan:

For each previous issuance or private placement of marketable securities that has not yet been completed or has been completed within the last three years and the benefits of the plan have not yet been demonstrated, please provide details of the plan: None

  • (II) Execution:

For each plan, if the implementation progress or benefits do not meet the estimated target, the reasons should be specified: None.

70 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

V. Operation overview

I. Description of business

(I) Scope of business

  1. Main business content

  2. (1) Manufacture and sales, design, testing, inspection, processing, repair of a variety of automobiles and related raw materials, parts & components, molds, fixtures, tools, and other mechanical parts and the like; operation of type A auto repair shops, sales of auto parts (accessories), vehicular body refitting and sales, agency services rendered for car inspection business as well as car sales business.

  3. (2) A variety of raw materials and components oriented to automobiles to be supplied to Nissan Motor Co., Ltd. and those overseas automobile-affiliated enterprises.

  4. (3) Installation, sales and import & export of low-power radio frequency motor equipment as oriented to vehicles.

  5. (4) Wholesale of Telecommunication Apparatus

  6. (5) Retail of Telecommunication Apparatus

  7. (6) General import and export trade related businesses (excluding such businesses subject to special permits)

  8. (7) Technical consultation & advisory services linked up with the aforementioned business lines.

  9. (8) Consultation services oriented to general business administration. (Excluding certified public accountant professional services) (excluding securities investment related consultation services).

  10. (9) Housing and Building Development and Rental

  11. (10) Factory/plant leasehold services.

  12. (11) Warehouse leasehold services.

  13. (12) Office building leasehold services.

  14. (13) All business items that are not prohibited or restricted by law, except those that are subject to special approval.

  15. Major business items and proportion

  16. The manufacture and sale of various automobiles and related components accounted for 95.84% of business.

  17. The Company’s major products

  18. (1) NISSAN passenger car segment.

    • 370Z series: seven-speed manual sports car.

    • GT-R series: VR38 high-performance twin-turbo engine sports car.

NEW JUKE: DCT dual clutch transmission Sports RV

TIIDA series: 5th generation X-CVT, non-shift, automatic transmission sedan

SENTRA series: 5th generation X-CVT automatic transmission sedan.

  • X-TRAIL series: The 4th generation X-CVT (Continuously Variable Transmission) RV KICKS series: 5th generation X-CVT, non-shift, automatic transmission RV ALTIMA series: VC-Turbo variable compression ratio turbocharged engine sedan. LEAF series: lithium battery sedan.

  • (2) INFINITI passenger car segment.

  • Q50 series: VC-Turbo variable compression ratio engine sports car

  • Q60 series: V6 twin-turbocharged engine sports car.

QX50 trim: VC-Turbo variable compression ratio engine RV

  • QX60 series: Naturally aspirated V6 engine RV.

  • (3) LUXGEN passenger car segment:

Luxgen URX series: twin-turbocharged engine, multi-purpose RV.

Luxgen M7 series: ECO HYPER turbocharged engine MPV van RV.

Luxgen U6 GT series: the new AISIN third-generation smart six-speed automatic transmission Sports RV.

Luxgen V7 Turbo Eco series: Intelligent six-speed manual welfare vehicle.

(II) Industrial Overview

1. Analysis of the macro economic environment:

  • (1) International Situation.

The global economic growth rate was ravaged by the Coronavirus (COVID-19) in 2020, which was more severe than the decline during the financial crisis in 2009, hitting a new low of -3.5% since the global economic depression in 1929. However, the immediate challenges of the resurgence will be offset by vaccination and additional fiscal stimulus, and global economic growth is expected to increase significantly in 2021. According to IHS Global Insight's March 2021 data, the global

Annual Report 2020 71

Operation overview

economy grew at a rate of about 5.1% in 2021, and the IMF even revised upward from its January forecast of 5.5% to 6%. The IMF estimates that the U.S. economy will grow by about 6.4% in 2021, which is better than the global forecast, and the non-farm employment growth in March is a sevenmonth high, reflecting the strong rebound of the U.S. under a series of fiscal stimulus packages. On the other hand, the Federal Reserve Board of Governors has announced that the target range for the federal funds rate will remain unchanged between 0 and 0.25%, and no rate increase is expected until the end of 2023. The Eurozone is currently fighting a third wave of new coronaviruses, with several governments reimposing social restrictions on people and forcing mainstream service industries to remain closed. It is expected to take longer for the Eurozone to recover. As for China, economic growth has gradually returned to pre-epidemic levels, with the IMF estimating growth of 8.4%.

The estimated global economic growth rate for 2021 is shown in the following table:

IHS Global Insight IMF The World Bank
Global Economic
Growth Rate		 5.1% (‘110/03) 6.0% (‘110/04) 4.0% (‘110/01)

Note: ( ) for the forecast date.

  • (2) Domestic Economy.

Due to the rebound of the bottom of the global economy, the United States and China, which have close trade relations with Taiwan, will soon see high growth. The Directorate-General of Budget, Accounting and Statistics, Executive Yuan forecasted in February that the economy will grow at a rate of 4.64% in 2021, and that the signal for the economy will turn red compared to January. In addition to the lower base period in 2020 due to the impact of the epidemic, the domestic economy continued to strengthen, mainly benefiting from emerging technology applications and remote business opportunities, as well as the continued rebound in demand for traditional products.

According to the latest report of the International Monetary Fund (IMF) in April, Taiwan's economic growth rate is expected to increase by 1.5 percentage points to 4.7% from 3.2% reported in the fall of last October.

The estimated growth rates of Taiwan's 2021 economy by major research institutions are shown in the following table.

Directorate-General of
Budget, Accounting
and Statistics		 IHS Global Insight IMF
Taiwan’s economic
growth rate		 4.64% (‘2021/02) 4.5% (‘2021/03) 4.7% (‘2021/04)

Note: ( ) for the forecast date.

  1. Industry condition and development

  2. Taiwan's automobile industry has been developing for more than 60 years and has reached the standards of advanced countries in terms of R&D, design, manufacturing quality and management capabilities. However, in recent years, fluctuations in international oil prices, stagnant growth in real income, lengthening of the life cycle of vehicles, saturation of the domestic market and other unfavorable factors, resulting in low capacity utilization and rising production costs; in addition, in recent years, the surge in demand for imported vehicles, but also a serious share of domestic car manufacturers market share, business difficulties have worsened year by year. Looking ahead, Taiwan's automobile market is gradually maturing and there is limited room for significant growth. Therefore, all car manufacturers are committed to strengthening their R&D capabilities and technical standards, improving the added value of their products, and expanding their export markets in order to break through the bottleneck of survival and development. In recent years, the Company has devoted itself to the operation of its private brand, Luxgen, relying on independent research and development and efforts to meet market trends, and will actively expand overseas markets in addition to the Taiwan market.

  3. Association between upstream, midstream, and downstream industry participants The automobile industry is a technology-intensive and capital-intensive industry, and its various value chain processes cover different industries such as steel, plastics, rubber, glass, machinery, electrical, electronics, finance, and services; and the professionals covered include R&D, manufacturing, procurement, marketing, management, and warranty skills in order to integrate a complete automobile industry. In addition, the automobile industry can create hundreds of billions of dollars of output value each year, the export of assembled vehicles and parts and components can bring the country a large amount of trade, drive economic growth and provide hundreds of thousands of jobs, can be said to be the locomotive of economic development. The Company's efforts in its private brand and independent research and development in recent years have not only driven the development of Taiwan's automobile value chain-related industries, but also enhanced the competitiveness of the industry and increased employment opportunities, which is beneficial to society, the government and the overall market.

72 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  1. Product development trend and competition situation

    • In response to changes in the industry environment and future development opportunities, Yulon Group has initiated the strategic transformation of its private brand since 2019, opening up the vehicle platform and R&D energy in the automobile R&D value chain to external parties in order to compete for diversified customers, create scale and reduce costs through the sharing of resources. Under the strategy of open platform transformation, the Company has been able to secure the OEM business of overseas brands such as MUSE, a French electric commercial vehicle, and ADIVA, an Italian three-wheeled heavy motorcycle brand, to actively expand the diversified customer markets. We hope to be the first to take advantage of our strengths in the transformation process and create a solid base for our company.

    • In 2020, the Company established the joint venture, Foxtron Vehicle Technologies, with Hon Hai.Through the joint venture, we promote the new business model of MIH open platform and sharing in the global automobile industry, combining the complementary advantages of both companies in vehicle research and development and ICT industry resources to provide electric vehicle solutions to our global target customers.

  2. (III) Technological research and development

  3. Research and development expenses from 2020 through to the publication date of the annual report

Unit: Thousands of NTD

R&D Operating R&D expenses as a percentage of
Year
expenses revenues operatingrevenues (%)
2020 1,364,120 82,597,514 1.652%
1Q2021 89,450 20,471,216 0.437%

  1. Work results in the last three years

  2. (1) May 2018: Yulon Nissan Nissan X-TRAIL 19-year model was launched.

  3. (2) Sep. 2018: Yulon Nissan Nissan TIIDA 19-year model was launched.

  4. (3) Sep. 2018: Yulon Nissan Nissan SENTRA 19-year model was launched.

  5. (4) Sep. 2018: Yulon Nissan Nissan JUKE 19-year model was launched.

  6. (5) Nov. 2018: Yulon Nissan Nissan KICKS brand new model was launched.

  7. (6) Feb. 2019: Luxgen M7/U5/U6 GT 19-year model was launched.

  8. (7) May 2019: Luxgen S5 GT/GT225 19-year model was launched.

  9. (8) Oct. 2019: Yulon Nissan NISSAN KICKS 20-year model was launched.

  10. (9) Nov. 2019: Yulon Nissan NISSAN X-TRAIL 20-year model was launched.

  11. (10) Dec. 2019: Yulon Nissan NISSAN Tiida 20-year model was launched.

  12. (11) Dec. 2019: Luxgen URX brand new model was launched.

  13. (12) Jul. 2020: Luxgen URX 5+1 seater LOHAS model was launched.

  14. (13) Sep. 2020: Yulon Nissan NISSAN X-TRAIL Yue Dong special model was launched in limited quantity.

  15. (14) Sep. 2020: Yulon Nissan NISSAN KICKS Sao Dong special model was launched in limited quantity..

(15) Oct. 2020: NISSAN ALL NEW SENTRA was launched.

  • (16) Nov. 2020: Yulon Nissan NISSAN NEW JUKE was launched.

  • Future R&D plan

  • (1) Construction of electric vehicle production capacity

  • (2) Electric vehicle assembly, parts and components inspection capabilities

  • (3) Motor power and battery total verification capability

  • (4) Construction of mass production capacity of energy storage containers

  • (5) Energy storage cabinet assembly and battery component testing capability establishment

The Company has budgeted approximately $238 million for 2021 capital expenditures and expenses for the above R&D programs, including approximately $169 million for professional and technical personnel costs, labor costs and other expenses for R&D programs.

(IV) Long and Short-term Business Development Plans

Short-term business development plans.

  1. Automobile value chain strategy transformation.

Annual Report 2020 73

Operation overview

  • (1) Light asset and efficiency: By opening up the vehicle platform and R&D energy, competing for diversified customers, sharing resources and sharing scale, and reducing R&D and operating costs, the Luxgen brand is operated in a light asset mode, integrating functional units of the value chain and improving operating efficiency.

  • (2) Full opening up and diversified OEM: In response to market demand and to achieve economies of scale, Yulon is actively transforming its value chain strategy and opening up its operations. Strive for diversified customers and orders from overseas and domestic customers to enhance our professional OEM services.

  • Multi-brand manufacturing.

In addition to continuing to focus on the current OEM and sales of NISSAN and INFINITI brands. Since 2009, the Company has been releasing its own brand LUXGEN M7 ECO HYPER / U7 ECO HYPER / S5 ECO HYPER / U6 ECO HYPER / S3 CROSS SEDAN /V7 TURBO ECO HYPER/Small SUV U5, and in 2019, launched URX, a multi-purpose RV. In 2020, the URX's Smart-Go and LOHAS models were launched to provide consumers with more diversified car purchasing options, making the product line more complete and mature, and effectively improving capacity utilization and reducing manufacturing costs, providing consumers with a variety of choices that exceed their expectations through the sharing of resources throughout the value chain of the Yulon Group.

  1. Increase the satisfaction level of manufacturing services.

Yulon is a professional manufactuer for many brands. In order to meet the needs of multi-brand business, Yulon strives to improve the manufacturing quality, cost, delivery time and service satisfaction of each brand and provide customized services for each brand as well as the most competitive manufacturing quality, so that the brand companies, Yulon and consumers can create a win-win-win situation and make Yulon the best professional automobile manufacturer in both sides of the Taiwan Strait.

  1. Activation of asset utilization.

For the development of Xindian Yulong City, the construction of the commercial area base started smoothly in October 2017, and the design will be changed in October 2019 to eliminate the residential part and retain only the shopping mall space, and the leasing of the main floors has been completed, and the license is expected to be obtained in the fourth quarter of 2021 and the official opening in the fourth quarter of 2022.

  1. Internal process improvement.

The Company continues to improve the effectiveness of risk management, control and monitoring processes through internal process improvement and internal audits. We also use the Kernel Objectives Management (KOM) system to grasp the implementation status of each department's objectives, and actively work on cost reduction, quality improvement, and promotion of industrial safety, environmental protection, and hygiene to effectively improve the company's operational management performance and quality.

  1. Quality resource integration.

Connect the industrial supply chain with the assembly factory as the center. We will take the initiative to go to the collaborative factories for quality management, implement a comprehensive quality management system, break the shackles of traditional quality thinking, introduce the production system, sales system, inventory system and customer service system one by one, and form the operation mechanism of the quality value chain, and adopt a two-way control mode to drive the overall industrial value chain.

Long-term business development plans.

  1. Alliances with ICT industry, solutions and eco-system services.

  2. (1) Through the joint venture, Foxtron Vehicle Technologies, which the Company established with Hon Hai, we promote the new business model of MIH open platform and sharing in the global automobile industry, combining the complementary advantages of both companies in vehicle research and development and ICT industry resources to provide overall solutions to our global target customers.

  3. (2) With the advanced open platform and shared resources of JV, Luxgen will continue to cultivate its private brand, focus on brand sales and channels, and launch new products that are competitive and meet market demand.

  4. Transformation of value chain strategy and provision of diversified manufacturing services: We will strive for cooperation opportunities other than four-wheeled passenger vehicles, expand the acquisition of professional manufacturing commissions for Adiva three-wheeled heavy motorcycle and Muse fourwheeled commercial logistics vehicles, and continue to evaluate and strive for other manufacturing service opportunities.

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II. Market, production and sales overview

(I) Market Analysis

  1. Sales areas of main products

The Company's products are medium and small sedans, RVs, etc. The main sales area is mainly Taiwan. In 2020, the Company's total sales volume in Taiwan reached 40,801 units (including Nissan & Luxgen), down 4.5% from 2019, with a total market share of 9.2%.

The overall sales situation of the automobile market in Taiwan in 2020 is shown in the following table.

Sales year 2019 2020
Total sales volume 439,836 457,435
Domestic cars 229,887 241,748
Imported cars 209,949 215,687

  1. Market supply and demand situation

  2. (1) Market Overview and Outlook

The total market sales for 2020 were approximately 457,000 units, a 4% increase over 2019. For car sales in Taiwan, in 2020, domestic car sales were 242,000 units and imported car sales were 215,000 units. Although both grew compared to 2019, the market share of imported cars declined by 0.5%, indicating a reversal in the ratio of domestic and imported car sales in 2020.

Looking ahead to 2021, in the face of the global economic challenges and adverse factors such as the new coronary pneumonia, the cross-strait auto market is expected to remain stable this year, with an estimated 438,000 units in the Taiwan auto market and 25.31 million units in the mainland market last year. The total vehicle market in China is estimated to be 26.3 million units this year. This year, the Company will actively strengthen its business structure, continue to innovate its operation model, create opportunities amidst challenges, and pursue stable business growth.

  • (2) Competitive niche

The Company has joint venture brands with Nissan and its own private rand, Luxgen, professional OEM plants and its own R&D team for vehicle models with a complete value chain of automobile R&D, production and sales, and is able to generate stable revenue by putting Nissan's joint venture brands and Luxgen's own brand into the vehicle market.

In the face of unfavorable factors such as the increasing proportion of imported cars in Taiwan's car market and the growth of luxury cars due to the M-shaped society's car buying behavior, although imported cars have a good brand image from the consumer's point of view, domestic brands not only have the advantage of high quality and medium price, but also can provide a perfect service mechanism and affordable prices. Therefore, in the face of the threat of imported vehicles, the Luxgen brand, with its technological advantage of independent research and development, and the Nissan brand, combined with the marketing experience of localized partners, will continue to provide differentiated products to meet consumer demand.

  1. Development prospect and favorable and unfavorable factors

Favorable factors:

  • (1) New Energy Technology Application

Taiwan's high degree of urbanization, high population density, and widespread distribution of electric power systems, coupled with domestic policy support, are particularly suitable for the development of electric vehicles, and the Company has more than 60 years of manufacturing technology capabilities, and in line with the government's exemplary pilot run and power companies to adopt cross-industry cooperation to jointly develop new energy application technologies for electric vehicles.

In response to global climate change, the use of renewable energy in the industry is growing significantly, and the demand for energy storage equipment is increasing along with the trend of electricity liberalization, the Company has integrated the accumulated resources of new energy vehicle research and development, assembly technology, and common use to build a new production line of energy storage products and strive for business opportunities in the energy storage market.

  • (2) Alliances with ICT industry, solutions and eco-system services.

The joint venture, Foxtron Vehicle Technologies, which the Company established with Hon Hai, promotes the new business model of MIH open platform and sharing in the global automobile industry, combining the complementary advantages of both companies in vehicle research and development and ICT industry resources to provide overall solutions to our global target customers. With the advanced open platform and shared resources of Foxtron Vehicle Technologies, Luxgen will

Annual Report 2020 75

Operation overview

continue to cultivate its private brand, focus on brand sales and channels, and launch new products that are competitive and meet market demand.

  • (3) Combine innovative thinking to improve differentiated added value

Innovation has always been our corporate culture. In response to the rapid changes in the global market, our company will uphold innovative technology, innovative product design, innovative thinking and service to meet the changing needs of our customers and enhance our competitiveness and added value of our products with innovation, so that our company can transform into an innovative manufacturing service industry.

  • (4) Manufacturing capability and quality standards are on par with those of major international manufacturers

The Company has accumulated several decades of automobile manufacturing technology, manufacturing capacity and quality standards have reached a considerable level, and has the ability to produce a small amount of multiple samples flexibly. In terms of production management, we specialize in various process improvement techniques to maintain a high degree of product stability, and have won numerous international quality awards, which have been recognized and favored by international manufacturers.

  • (5) Strive for regional economic cooperation opportunities

Through global economic and trade regional integration or the signing of inter-regional FTAs, barriers to the flow of products, talents, capital and information can be effectively reduced. In the face of the Mainland China market, the Company has adopted an aggressive competitive and cooperative strategy to pursue opportunities for cross-strait cooperation in the automobile industry. Since the cross-strait automobile industry is highly complementary in R&D, manufacturing and marketing, the construction of a cooperation platform can effectively reduce production costs, expand the production scale of a single vehicle model, reduce R&D, mold sharing costs and the cross-strait division of labor mechanism, etc., bringing into play complementary effects and jointly enhancing the regional competitiveness of both sides.

  • (6) Government Preferential Policies

The government announced that the policy for old excise tax subsidy on old goods replacement will be extended for another five years to 2026, coupled with the introduction of new car models, price reductions and increased promotional efforts to compete for the market, bullish car market buying in 2021 can still be expected.

Unfavorable factors:

  • (1) Uncertainty in the international situation

The global economic growth slowed down in 2020 due to COVID-19, and the global epidemic is still very uncertain, although the economies of various countries gradually recovered in 2021 and the operations of various industries became stable. On the other hand, after the U.S. presidential election in 2020 with the shift in power, and the subsequent direction of trade between the U.S. and China as well as regional economic integration, the direction of financial policies of major countries and changes in the exchange rates of emerging market countries will affect the pace of global economic growth, which will require continuous attention in the future.

  • (2) The domestic car market cycle has reached its peak, and the growth rate is limited

The growing popularity of mass transit systems, the extended life span of automobiles, and the impact of a child-less/aging society are all factors that may change consumer habits.

  • (3) Increase in operating costs due to relevant regulations and policies

The government's promotion of energy-saving and carbon-reduction policies and related regulations, such as: emission regulations, implementation of formal safety certification, waste vehicle disposal fees, air pollution fees, and luxury taxes and other fees, have all contributed to the increase in business operating costs.

  • (4) High end cars getting affordable

In recent years, international manufacturers have successfully penetrated the domestic mid-range car market through premium car entry models, coupled with affordable prices, and new consumer groups have been re-formed, gradually affecting domestic car sales.

  • (5) Second-hand market transactions are active

The seconded-hand car market in Taiwan had a volume of about 770,000 units in 2020, which indirectly affects the new car market.

  1. Countermeasures:

In the face of increasing competition in the domestic car market, the Company will continue to maintain its market position through various strategies and core competencies in response to global market and industry

76 YULON MOTOR

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Annual Report 2020

changes, as shown in the table below. changes, as shown in the table below.
Advantages:
1. Multi-brand professional manufacturing
capability, flexible production technology
2. High quality & international factory standard
vehicle assembly technology
3. Ability in the development of electric vehicle
core technology independent capacity / mass
production		 Disadvantages:
1. Synchronization and digital integration with
companies in the value chain need to be further
enhanced
2. A large number of customization and new
technology into the car prompt the need for a more
effective quality control program
3. In response to the emergence of a large number of
IT and new energy vehicles and the improvement of
production technology, quality inspection needs to
be improved
Opportunities:
1. AI artificial intelligence and big data to
enhance the competitiveness of the Group's
value chain
2. Industry chain open architecture and platform
sharing
3. The popularity of handheld smart devices and
accelerated data transmission		 Threats:
1. Taiwan's auto market is maturing and growth is
limited
2. Major car manufacturers are competing to invest in
digital/intelligent manufacturing
3. Shortened time to market for product development

The following challenges are what Yulon must address: 

  - (1) Set up smart production lines/intelligent warehouses and other related indicators in line with the Internet trend.

  - (2) Shorten the test assembly time through design review verification and digital simulation.

  - (3) Establish a mechanism to strengthen supplier counseling and rounds to ensure the quality of parts development.

  - (4) Combine network and reality integration, smart networking technology, intelligent mobility and huge amount of data, and create a comprehensive system integration solution for industrial development.

  - (5) The open structure of the industrial chain can improve the efficiency of vehicle manufacturing.

  • (II) Key applications and production processes of major products

  • Key applications of major products

The Company mainly designs, develops and produces various kinds of sedans and RVs, which are mainly used for transportation of passengers, leisure and travels, and produces parts for automobile assembly and maintenance.

  1. Production processes of major products

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

Complete Development
Vehicle Trial
Design
Mechanical Engine
Processing Assembly
Sheet Metal Car Body Car Body Vehicle Brand
Inspection
Pressing Welding painting Assembly Company
----- End of picture text -----

(III) The supply of main raw materials

The Company's raw materials are mainly purchased from Nissan Japan and domestic and foreign collaborative suppliers. Due to their long-term cooperation and long-term supply contracts, we can ensure stable raw material prices and secure the supply of raw materials.

Annual Report 2020 77

Operation overview

  • (IV) The names of suppliers and customers who have accounted for more than 10% of the total purchases (sales) in any of the most recent 2 years, their purchases (sales) amount and proportion.and the reasons for the increase or decrease

  • Information on the major suppliers in the most recent 2 years:

Unit: Thousands of NTD

2019 2019 2019 2019 2020 2020 2020 2020 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2)
Items As a
Percentage Percentage percentage
in the net Relation in the net of net
Relation Relation
annual with the annual purchases
Name Amount Name Amount with the Name Amount with the
percentage issuer percentage for the year
issuer issuer
of purchase Relation of purchase up to the
(%) (%) previous
quarter(%).
1 Invested Invested Invested
company company company
Yulon Yulon Yulon

measured		 measured
measured
Nissan 17,108,780
19.2
Nissan		 15,693,343 18.3
Nissan		 3,866,318
15.5

using the		 using the
using the
Motor
Motor
Motor
equity equity equity
method method method
2 Nissan 9,568,706
10.7		 Nissan 8,840,735 10.3 Nissan 2,115,223
8.5
Motor Motor Motor
Co.,Ltd. Co.,Ltd. Co.,Ltd.
3 Other 62,519,897
70.1		 Other 61,183,021 71.4 Other 18,964,118
76.0
Net 89,197,383
100		 Net 85,717,099 100 Net 24,945,659
100
purchase purchase purchase
amount amount amount

  • Note 1: Name of supplier representing more than 10% of total purchases in the previous two years, and the amount and percentage of purchase; code names can be used instead if any contract prohibits the Company from disclosing the supplier's name, or if the counterparty is a non-related party.

  • Note 2: Financial information audited and reviewed by CPAs up to the date of publication of the annual report Analysis of the change in the increase or decrease percentage: The decrease in the purchase amount from Yulon Nissan Motor was due to the decline in market sales as a result of the epidemic, and therefore the decrease in shipments from vendors to suppliers.

  • Information on the major customers in the most recent 2 years:

Unit: Thousands of NTD

2019 2019 2019 2019 2020 2020 2020 2020 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2) 2021 upto 1stquarter(Note 2)
Items As a
Ratio of Ratio of percentage of
annual Relation with annual Relation with
net sales for		 Relation with
Name Amount Name Amount Name Amount
net sales the issuer net sales the issuer the year up to the issuer
(%) (%) the previous
quarter(%)
1 Yulon Invested Invested
Invested
company company
Yulon company Yulon
measured
measured
Nissan 12,928,433
22.2

measured		 Nissan 11,719,035 21.8 Nissan 2,725,454
21
using the
using the
Motor using the Motor Motor
equity equity
equity method
method method
2 Other 45,222,107
77.8		 Other 42,067,733 78.2 Other 10,222,916
79
Net sales 58,150,540
100		 Net sales 53,786,768 100 Net 12,948,370
100
sales

  • Note 1: Name of customer representing more than 10% of total purchases in the previous two years, and the amount and percentage of sales; code names can be used instead if any contract prohibits the Company from disclosing the customer's name, or if the counterparty is a non-related party.

  • Note 2: Financial information audited and reviewed by CPAs up to the date of publication of the annual report Analysis of the change in the increase or decrease percentage: There is no significant change in major sales customers, and the percentage of increase or decrease is still reasonable

  • (V) The production volume and value of the last two years

(V) The production volume and value of the last two years (V) The production volume and value of the last two years (V) The production volume and value of the last two years (V) The production volume and value of the last two years (V) The production volume and value of the last two years (V) The production volume and value of the last two years (V) The production volume and value of the last two years
Unit: Car, Unit
Vlaue: Thousands of NTD
Year
2019		 2020
Production volume
& value
Production		 Production
Yield Output value Yield Output value
Major products (or capacity capacity
segment)
Vehicle 80,000 37,727 15,613,144 80,000 37,929 16,472,125
Total 80,000 37,727 15,613,144 80,000 37,929
16,472,125

Note: The above figures are compiled from unconsollidated viewpoint.

78 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(VI) Sales volume and value in the last two years

Unit: Car, Unit Vlaue: Thousands of NTD

Year
2019
2019
2019
2019		 2020 2020 2020 2020
Sales volume and
Domestic sales		 Export sales Domestic sales Export sales
value
Major products (or Volume Amount Volume Amount Volume Amount Volume Amount
segment)
Vehicle 42,721
25,283,799		 0 0 39,443 23,410,866 0 0
Parts 0
3,788,424
0		 137,975
0		 3,655,478
0
99
Total 42,721
29,072,223
0
137,975
39,443		 27,066,344
0
99

Note: The above figures are compiled from unconsollidated viewpoint.

III. Employees

April 30,2021 April 30,2021 April 30,2021 April 30,2021 April 30,2021 April 30,2021 April 30,2021
Year 2019 2020 2021up toApril30
Staff 295 people 320 people 327 people

Technician		 778 people 744 people 997 people
Number of


Administrative
employees 20 people 16 people 18 people

Assistant
Total 1,093 people 1,080 people 1,342 people
Averageage 42.1 years old 41.95 years old 39.17 years old
Average years ofservice 16.36 years 15.94 year 13.08 year
Doctor 0.1% 0.28% 0.23%
Master 17.9.% 19.63% 17.21%
Education
ditibti		 University and College 27.1% 32.50% 35.92%
sruon Senior high school 51.1% 44.63% 44.13%
Below senior
3.8% 2.96% 2.50%
high school
Note: The data for 2019 and 2020 is cut off at December 31 of the year.
Year 2019 2020 2021uptoMarch31
Number of employees of the
Companyand its subsidiaries		 11,286 people 10,457 people 9,820 people

Note: The data for 2019 and 2020 is cut off at December 31 of the year.

Annual Report 2020 79

Operation overview

IV. Information on environmental protection expenditures

  • (I) The total amount of penalties imposed by the environmental protection authorities in the last two years and the current year as of the date of publication of the annual report: None

  • (II) Future countermeasures and possible expenditures

  • Future possible environmental expenditures:

Year

2021		 2022 2023
Items
‧ The proposed Energy Saving and Pollution Energy Saving and Pollution Energy Saving and Pollution
pollution prevention Investment in prevention Investment in prevention Investment in prevention
and control equipment equipment equipment equipment
and expenditures
‧ Estimated
improvement		 In compliance with
environmental regulations &
internationaltrends		 In compliance with
environmental regulations &
internationaltrends		 In compliance with
environmental regulations &
internationaltrends
‧ Estimated amount NTD 35,000 thousand NTD 35,000 thousand NTD 35,000 thousand

2 Other expenditures:

Year

2021		 2022 2023
Items
1. Environmental fees 1. Environmental fees 1. Environmental fees
‧ Content of $14,000 thousand $14,000 thousand $14,000 thousand
expenditures 2. Management fees $13,500 2. Management fees $13,500 2. Management fees $13,500
thousand thousand thousand
‧ Estimated
improvement		 Meets and exceeds
environmental protection
regulations		 Meets and exceeds
environmental protection
regulations		 Meets and exceeds
environmental protection
regulations
‧ Estimated amount
NTD 27,500 thousand NTD 27,500 thousand NTD 27,500 thousand
(1+2)
  • (III) The impact of the improvement.
Year

2021		 2022 2023
Items
Increase in depreciation Increase in depreciation Increase in depreciation
‧ Effect on net profits expense by $7,500 expense by $7,500 expense by $7,500
thousand peryear thousand peryear thousand peryear
Save energy and reduce
Effect on Competitive
waste, enhance corporate
Same as the left Same as the left
Position image and contribute to
social welfare

  • (IV) Whether the Company has a policy of energy saving and carbon reduction, greenhouse gas reduction, water reduction or other waste?

  • Greenhouse gas reduction: Since the establishment of the “Energy Saving and Carbon Reduction Promotion Project“ in 2007, from 580 kg-CO2 per unit to 306 kg-CO2 per unit in 2020, the amount of carbon emissions has been reduced by 47.2%, with the goal of reducing carbon emissions by 4% each year to continue to promote; total annual emissions of 15,911 metric tons-CO2 in 2017, 15,672 metric tons-CO2 in 2018, 11,965 metric tons-CO2 in 2019, and 11,654 metric tons-CO2 in 2020, reducing the rate of global warming.

  • Reduction of water consumption:

    • The water consumption in 2020 is reduced by 550 metric tons (348,232→347,682 metric tons) compared with 2019, and continue to reduce every year to slow down the consumption of global water resources. All the wastewater in the manufacturing process is discharged from the wastewater treatment plant (43.4 mg/L), which is better than the regulations (below 100 mg/L) to reduce the environmental loading.

  • Waste reduction: Reduce the general waste output by 12.26% in 2020 compared to 2019 (147.59→129.5 metric tons), and reduce the output by 1% each year as our target; recycle and reuse 100% of the resource waste.

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  1. The Company's energy saving and carbon reduction activities such as greenhouse gas reduction, water reduction, waste production reduction, VOCs emission reduction, etc. are carried out in accordance with ISO-14001 norms in a continuous PDCA cycle, and continue to be audited by the external company, bsi, twice a year to obtain certification.

  2. Yulon Motor's ongoing environmental objectives

  3. (1) Greenhouse gas emissions per unit: more than 4% reduction per year

  4. (2) Volatile organic gas emissions per unit: more than 4% reduction per year

  5. (3) Water consumption per unit: more than 1% reduction per year

  6. (4) Waste resource : 100% recycled and reused

  7. (5) General waste: Reduce the total amount of waste by more than 1% per year

  8. (6) Toxic chemical substance: Not used

  9. (7) Noise control: the introduction of new equipment noise shall not exceed 85 decibels control

For the specific environmental policies of the Company, please refer to the section of “Fulfillment of Social Responsibility“ in Chapter 2.

V. Labor relations

  • (I) Current significant labor-management agreements, employee benefits and their implementation

  • Labor-management agreements

    • (1) The company holds regular labor-management meetings to fully communicate and improve various problems between labor and management.

    • (2) Send staff to attend the union directive and supervisory meetings to understand and respond to the union's demands and promote labor management harmony.

    • (3) Regularly consult and discuss relevant issues with labor administration officials, experts, scholars, or consultants.

    • (4) Continuously strengthen the labor education of the union's leaders, so that employees and management can have more consistent ideas.

    • (5) Reach a consensus after collective bargaining and sign a group agreement to protect the labor work conditions and benefits to promote the cooperative relationship between employees and management.

    • (6) Assist employees to resolve work difficulties and protect their rights and interests through the employee complaint handling system.

    • (7) Cultivate the management mindset in department heads consistent with the Company's corporate culture and build consensus, in addition to conducting consensus camps for supervisors and holding talks with the union leaders..

  • Employee Welfare Services

    • (1) Provide winter and summer uniforms, safety shoes, commuter transportation in the central part of the country, and a shuttle bus to the north.

    • (2) We provide a safe, convenient and quiet environment for free dormitory.

    • (3) Set up a welfare park for employees, including indoor basketball court, badminton court, recreational vegetable garden, swimming pool, outdoor tennis court, basketball court, health trail, audio-visual center, reading room, restaurant, welfare club and gymnasium, and other recreational and leisure facilities.

    • (4) There are 2 staff cafeterias offering buffets, noodles, special meals, etc.; the Company also provides overtime staff refreshments.

    • (5) Regularly organize large-scale sports activities such as basketball leagues, badminton tournaments, factory road runs, and diversified club activities such as yoga, aerobics, jogging, guitar, photography, etc. to promote employees' physical and mental health and cultivate diversified interests.

    • (6) Organize newcomers' welcome dinner, summer camp for employees' children, end-of-year dinner party, retired colleagues' social gathering and other employee care activities every year.

    • (7) Establish a volunteer club to plan volunteer service activities such as beach purification, blood donation, orphanage support, disadvantaged children care, community service, and year-end donation every year.

    • (8) Set up an employee welfare committee to administer measures such as education subsidies for children and colleagues, family travel subsidies, car purchase subsidies, and annual festival benefits.; also organize large-scale employee activities such as May Day Family Day, domestic and overseas employee trips, and the Dragon Boat Festival and Mid-Autumn Festival celebrations.

    • (9) Provide group insurance covering employees and family dependents.

    • (10) In addition to the leave granted by law, leave and paid leaves are also given for the day of the child's entrance into school, the child's marriage, and the sibling's wedding day according to the customary

Annual Report 2020 81

Operation overview

needs.

  • (11) In accordance with production equipment maintenance, adjust the rest days and arrange long vacations such as spring break and summer vacation, and travel with domestic and foreign employees to increase the time for employees to spend with their families and promote parent-child interaction while relieving work pressure.

  • (12) In order to promote work-life balance, implement a “punctual off-duty day“ in which each production line is scheduled to have 8 hours of productivity and no overtime work is scheduled on that day. We hope that our employees can arrange family activities, self-growth courses and sports activities.

  • (13) In order to implement maternity protection and to be considerate of the inconvenience of working for pregnant female colleagues, provide exclusive parking spaces in the factory for pregnant women.

  • (14) In accordance with the announcement and the implementation of the amended “Act of Gender Equality in Employment”, the Company shall grant pre-maternity medical leave for five days during the pregnancy of an employee of the Company, and each pre-maternity medical leave shall be granted by unit of 30 minutes with pays.

  • (15) In line with the “Act of Gender Equality in Employment”, breast milk collection rooms are set up in the factory and special contracts are signed with nurseries in Fengyuan, Sanyi and Miaoli to reduce the burden of employees.

  • (16) When employees take “paternity leave“ in accordance with the regulations, they may choose 5 during the 15 days before, on or after the day of spouse's child delivery with pay.

  • (17) Employees are given 8 days of wedding leave for marriage, and considering that the related plan may be affected by the epidemic, they are allowed to take the leave by units of days within 6 months from 10 days before marriage registration, and their wages are paid during the wedding leave.

  • (18) Cooperate with Lifeline Association to promote Employee Assistance Program (EAP) and provide free employee psychological counseling services.

  • (19) For employees who are new mothers and fathers, we promote wraparound birth and parenting care, and provide care activities at each stage (pregnancy → delivery → parenting), such as producing a care handbook for pregnant mothers, subsidizing self-funded prenatal checkups, holding birth and parenting seminars, handing out newborn congratulation gifts by the general manager, and holding “Baby Day“ sharing activities.

  • (20) Encourage single colleagues to make friends and cooperate with the Ministry of Internal Affairs to promote single friendship activities, the company subsidizes the full cost of activities and sponsors meal coupons for two people.

  • (21) Hold happiness seminars evrey year and invite experts in various fields to give courses on topics such as financial management, DIY handicrafts, sports and health care, and workplace makeup to promote work-life balance among employees.

  • (22) In the event of a wedding celebration, employees may apply to the Company for a company car to be used as a limousine.

  • (23) In order to assist new employees to quickly acquire a vehicle for transportation, a subsidy is provided for the purchase of a brand-new domestic car or a domestic used car sold by the Group's dealers.

  • Retirement system:

In order to protect employees' pension rights and interests, the Company makes regular contributions to labor pensions in accordance with the Labor Standards Act and the Labor Pension Act and other relevant regulations.

  • (1) The pension system under the Labor Pension Act (new scheme) is subject to the following regulations.

  • A. Employees of the Company who started working on or after July 1, 2005 are subject to the pension system of the Labor Pension Act.

  • B. In accordance with Article 14 of the Labor Pension Act, the Company shall contribute 6% of the monthly salary of the employees under the new scheme to a personal pension account established in the Bureau of Labor Insurance, which is owned by the employee. The employees may also make voluntary contributions to their pensions within 6% of their monthly salary.

  • (2) The pension system under the Labor Standards Act (old scheme) is subject to the following regulations.

  • A. After the Labor Pension Act came into effect on July 1, 2005, if an employee chooses to continue to be under the pension provisions of the Labor Standards Act (the old scheme) or chooses to be under the pension system of the Labor Pension Act (the new scheme) and retains his or her years of service in the old scheme, his or her pension benefits for his or her years of service in the old scheme shall be governed by the provisions of the Labor Standards Act.

  • B. In accordance with Article 56(1) of the Labor Standards Act, the Company contributes 7% of the monthly salary of the employees for their years of service under the old scheme to the Labor Retirement Reserve Fund, which shall be deposited in a special account for the exclusive use and is owned by the Company, and the Bank of Taiwan (Trust Department) is responsible for the receipt, custody and use of the fund. When an employee with years of service under the old

82 YULON MOTOR

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Annual Report 2020

scheme applies for a pension, the Company withdraws from the special account for the Labor Retirement Reserve Fund and pays the pension to the employee. 

  - C. In accordance with Paragraph 2 of Article 56 of the Labor Standards Act and IAS 19, the Company reviews the balance of the Labor Retirement Reserve Fund before the end of the year to see if it is sufficient to support the old scheme retirement applications for the following year and submit to the Labor Retirement Reserve Fund Supervisory Committee of the Company for review; if the balance is insufficient, the Company shall make a lump sum make-up of the difference before the end of March of the following year.

  - D. The Company has established the “Labor Retirement Reserve Fund Supervisory Committee“, which consists of three representatives from management and six representatives from employees, and holds quarterly meetings to jointly supervise the use of the retirement reserve fund.

  - E. The standard for calculating pensions for employees in accordance with the Labor Standards Act is as follows:

     - ‧ Two bases will be awarded for each year of service. However, for each year of service in excess of 15 years, one base is given for each year of service, up to a maximum of 45 bases. Services less than half a year are counted as half a year; services more than half a year are counted as one year.

     - ‧ If an employee retires due to mental or physical disability as a result of performing his or her duties, he or she shall be paid 20% more in accordance with the preceding paragraph.

     - ‧ The standard of pension base refers to the average monthly salary at the time of approved retirement.

  • (3) Retirement standards for employees are in accordance with the following rules.

    • A. Employees may apply for retirement on their own in one of the following circumstances.

      • a. Those who have worked for the Company for at least 15 years and are at least 55 years old.

      • b. Those who have worked for the Company for at least 25 years

      • c. Those who have worked for the Company for at least 10 years and are at least 60 years old.

    • B. Employees shall not be compelled to retire unless one of the following applies. a. Aged 65 or older.

      • b. Mentally or physically incapacitated for work.

  • Employee conduct or code of ethics

In order to clearly regulate the relationship between the rights and obligations of employees and management, and to improve the organization and establish the management system, the Company has established various internal work regulations according to the relevant laws and regulations to provide a framework for corporate and employee actions. For the above purposes, the Company has these rules:

  • (1) Rules and regulations for promotion, performance appraisal, attendance and salary management, and related internal control operations, in order to ensure that all employees understand and comply with them.

  • (2) Work rules for employees: All of the hiring, salary, leave, overtime, rewards and punishments of the Company’s employees, and related office regulations have been clearly regulated to govern the behavior of our employees.

  • (3) In order to effectively manage internal network and Internet resources, respect intellectual property rights, and maintain the company's corporate image, we specifically promote and require employees to sign the “Affidavit for Prohibition of Illegal Software“ and the “Agreement on Intellectual Property Rights and Confidentiality“; and in order to comply with the relevant laws and regulations on personal data protection, new employees are informed of the personal data management methods when they report to work, and they are asked to authorize the use of personal data.

  • (4) In order to make the company's internal document management, data formulation and review, and operation process specification follow, the “Document Management Measures“ are formulated to provide continuous improvement of the Company's internal operation and to improve the management system.

Annual Report 2020 83

Operation overview

  1. Employee health and safety

  2. (1) The Company provides labor insurance for each employee in accordance with the labor related laws.

  3. (2) Group insurance for employees, covering the employees themselves, their spouses and children, at the expense of the Company.

  4. (3) Set up “Employee Clinic“ as a special clinic for universal health insurance to provide medical, surgical and quit smoking clinics as well as health education and consultation on various medical and health care services to enhance the convenience of medical treatment and the health of employees and their family dependents.

  5. (4) In accordance with the labor protection related rules, the Company conducts regular employee health checks to maintain employee health.

  6. (5) The company employs a medical specialist in occupational medicine to take care of the occupational safety and health of its employees and to assist the company in promoting individual employee care and protection practices.

  7. (6) Provide a good and safe working environment.

    • ‧ In accordance with the fire prevention laws and regulations, we have established complete protective equipment, an automatic regional fire prevention monitoring and reporting system, and conduct annual fire prevention training for our staff to strengthen their emergency response capabilities.

    • ‧ Access is controlled and patrolled by security personnel around the clock and dynamically. The main intersections in the area are monitored by a network of surveillance systems to ensure the movement of people and vehicles throughout the area to maintain safety.

  8. (7) Pay attention to the physical and mental health of our employees, and regularly provide health promotion themed literature and conduct health education seminars to provide comprehensive health management for our employees.

  9. Staff Development: Education and Training

The Company adheres to the four guiding principles of “Lifelong Learning, Diversified Development, Deep Cultivation Spirit, and Human Orientation“ to cultivate and develop human resources. We actively provide a learning and development environment for our employees, construct a training system through the Talent Development Quality Management System (TTQS), and develop education and training programs based on the strategic planning of the Company's vision for medium- and long-term goals. According to the needs of the business category, we implement multiple learning channels such as on-thejob training, nanny system, job rotation, project work, digital learning, and on-the-job training to enhance the skills required for the profession. Use multiple training outcome assessments, including L1 response assessment, L2 learning assessment, L3 behavior assessment and L4 outcome assessment, to ensure that employees learn and grow before and after training and apply what they have learned in the workplace.

According to the skills required for the job, provide common, professional and management training courses. Training costs in 2020 were about $2,728 thousand, the average training costs per employee were about $2,532, the total training hours were 13,486, and the average training hours per employee were 12.5 hours per year; the training courses provided by our company include:

  • (1) Common training: Common training courses for all company employees, including international business law series seminars, patent discovery courses, excel computer operation courses, ISO-related courses, happiness seminars, retirement seminars, etc.

  • (2) Professional training: Training courses to strengthen professional skills, including CATIA 3D drawing skills, MSA measurement system analysis, FTA defect tree analysis, Taguchi analysis, why why analysis, workflow diagram management, statistical process control and engineering capability analysis, finance, human resources management, manufacturing, production management, and labor safety and health courses, etc.

  • (3) Management training: Various management training themes are planned according to the management capabilities of department heads at different levels, including motivational consensus camps for middle and senior department heads; management skills courses for middle-level department heads and seminars on management practices; and on-site management skills courses for management trainees.

  • (4) Training for newcomers: In order to familiarize newcomers with the company's corporate culture and working environment, we arrange unified training for newcomers and arrange vehicle disassembly and test assembly courses for newcomers from R&D, production and quality management departments, so that newcomers can better understand the overall structure of vehicles and the relationship between various components.

  • (5) Language training: In order to develop international business, language ability is one of the requirements for promotion, and we arrange multi-benefit sprint classes or hold language courses according to business strategies to improve employees' language ability.

The Company encourages a learning culture and has set up two employee growth days each month since 2020 to encourage supervisors to mentor and care for employees, or to exchange new knowledge and skills

84 YULON MOTOR

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Annual Report 2020

within the unit.

  • (II) Losses suffered from labor disputes from 2020 up to the date of publication and the annual report: None.

(III) Employee communication channels

The Company is committed to providing open and transparent channels of communication between supervisors and employees to promote labor-management harmony and create a win-win situation for both companies and employees. Diversity

Communication channels include:

  1. From time to time, hold employee care seminars to understand and value the needs and voices of employees and promote labor harmony.

  2. Hold regular employee satisfaction surveys every year and make improvements on items with low satisfaction scores.

  3. If employees find major management negligence, illegal or unethical behavior, they can directly complain to the president's mailbox or human resources unit, and the investigation will be conducted by the human resources unit or a task force according to the type of incident, and a project meeting will be held for consideration.

  4. Set up EIP “Employee Information Portal“ system, so that employees can immediately receive the company's major dynamic announcements, and can also put forward their personal opinions and ideas at any time, and the relevant units will assist in handling them and then immediately reply to colleagues on the results.

  5. Provide employee care service line as a channel for employees to reflect their opinions on work, environment and life assistance.

  6. Sexual harassment prevention and management measures.

  7. In order to protect the rights and interests of employees, safeguard gender equality, and prevent sexual harassment and gender discrimination in the workplace, the Company has established the “Prevention of Unlawful Acts of Assault in the Performance of Duties“,

  8. “Rules for Complaints and Discipline on Measures to Prevent Sexual Harassment in the Workplace“, and “Guidelines for Handling Complaints and Investigations on Sexual Harassment“ to protect the basic rights of employees.

If an employee encounters the above situation in the factory, he or she may file a complaint with the Compliant Committee in accordance with the procedures of the Company's Complaint Procedure.

  • (IV) Working environment and employee safety protection measures

In view of the importance of safety protection measures at working environment and for employees, The Company uses the management system of ISO 14001(Term of validity:2020/11/28-2023/11/27) & ISO 45001(Term of validity:2018/7/25-2021/7/24) to control the major environmental considerations/occupational safety and health risks, and uses the target and program management to carry out priority improvement. The lower risks are controlled by means of operational control, and after the improvement with good operation, the results are obvious that things are in good control. The Company's major objectives and management plans are summarized as follows.

Objective/Target Program Current Status ImplementationStatus
Lower CO2 emissions to
316(kg-co2/unit)		 Electricity - change the frequency of
motor, change the lighting to LED,
change the fixed frequency to variable
frequency air compressor at night,
change the continuous operation of
conveyor belt to induction operation, do
not operate the compressor below 25
degrees Celcius for air conditioning
temperature control.
Reduce fresh air intake, shorten oven
warm-up time and earlier shutdown for
natural gas-fired incineration (RTO)
systems.
Heavy oil: change to natural gas boiler,
shorten warm-up time, reduce steam
pressure, improve heat dissipation.		 1. Motor without variable frequency
control, additional inverter variable
frequency control according to the
end demands.
2. Traditional lamps, mercury lamps
changed to low-power LED,
additional point extinguisher, etc.
3. Regenerative Thermal Oxidizer
(RTO) to introduce a lower proportion
of fresh air.
4. Shorten the daily warm-up time and
early shutdown for ovens, RTOs and
boilers.		 306(kg-co2/unit)
Domestic waste reduced to Nine garbage sorting boards for all staff Through the environmental safety 129.5(ton/year)
194.4 (ton/year)↓ education and training, reuse of executive meeting to promote and
resources, regular audits of sorting regularly audit the classification
scores and promotion situation, the three green a beauty
committee monthlymeetingto control

Annual Report 2020 85

Operation overview

Objective/Target Program Current Status Implementation Status
and promote.
Injuries at the factory
4(incidents/year）↓		 Regular implementation of 5S
inspection, TOP survey, and
improvement of false alarms.		 Through various routine inspections and
improvements, to reduce the occurrence
of harm.		 2(incidents/year)
Develop automatic inspection method to The on-site operation unit performs the 100 %
perform safety function test of safety function test of the equipment
Equipment safety function
equipment in daily use operation during the operation to ensure the
effectiveness 100 (%)
normal function and reduce the
occurrence of hazards.
Water quality monitoring of
plant discharge water
COD＜100 mg/L
Total Chrome＜1.5 mg/L
Copper＜1.5mg/L
Zinc＜3.5mg/L
Cadmium＜0.02mg/L
Nickel＜0.7mg/L		 Analyze discharge water COD (1~2
times/day)
Total chromium, copper, zinc, cadmium,
nickel, heavy metals (2 times/week)		 Water quality is regularly sampled and
analyzed to ensure that discharge water
meets and exceeds regulations.		 COD 48.45 mg/L
Total Chromium ND
Copper ND
Zinc ND
Cadmium ND
Nickel 0.18 mg/L

The program for the management of physical security measures for employees is as follows.

  1. Access control security: For day, night and holiday, security companies are hired to maintain the security of the factory and staff dormitories around the clock and set up surveillance systems.

  2. Equipment maintenance and inspection: In accordance with the Fire Services Law, the on-site units will inspect the firefighting facilities on their own every month, and then appoint external firefighting agencies to carry out inspection and reporting every quarter. Regular (daily, weekly, monthly, quarterly, semiannually, annually) maintenance and inspection of machines (cranes, elevators, presses, etc.) or equipment (boilers, high and low voltage electrical equipment, etc.).

  3. Disaster prevention measures and contingency planning: In accordance with the “Emergency Preparedness and Contingency Management Regulations“, the responsibilities of each relevant unit, contingency measures, notification procedures, task contents, etc. are clearly defined and drills are conducted twice a year.

  4. Health care.

  5. (1) Health examination: physical examination of new recruits. The regular labor force periodically undergoes employee health examinations in accordance with labor safety and health protection rules. Special operators will undergo a special medical examination once a year.

  6. (2) Health education and promotion: employ factory doctors and occupational doctors to provide clinical services twice a month (including) (content: prevention and treatment of occupational injuries and diseases and general injuries and diseases, health consultation and first aid and emergency disposal, health education, health promotion and health guidance...etc.).

  7. (3) Half-yearly implementation of vector mosquito control and disinfection in the plant.

  8. (4) Specify smoking ban in indoor places and limit smoking to designated area (20 places in the whole factory).

VI. Major contracts

Nature Partyinvolved Effective period Majorcontents Restrictive clause
Vehicle OEM
contract		 Yulon Nissan
Motor
Consulting Co.,
Ltd.		 From 2015.5.1 to 2020.4.30, the
contract will be automatically
extended for one year without
written notice of non-renewal three
months prior to the expiration date,
and thereafter.		 Assembly OEM for
Nissan brand
vehicles and
components		 1. Non disclosure
of confidential
information
2. Restrictions on
the Transfer of
Rights and
Obligations
From 2015.5.1 to 2020.4.30, the 1. Non disclosure
contract will be automatically of confidential
Luxgen Motor Assembly OEM for
extended for one year without information
Vehicle OEM
Co., Ltd.
Luxgen brand
written notice of non-renewal three 2. Restrictions on
contract Consulting Co., vehicles and
months prior to the expiration date, the Transfer of
Ltd. components
and thereafter. Rights and
Obligations

86 YULON MOTOR

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Annual Report 2020

VI. Financial Status

I. Condensed financial statements for the most recent 5 years

(I) Condensed balance sheet and comprehensive income statement - IFRS

Consolidated condensed balance sheet

Unit: Thousands of NTD

Year Year Financial information from thepast fiveyears(Note 1) Financial information from thepast fiveyears(Note 1) Financial information from thepast fiveyears(Note 1) Financial information from thepast fiveyears(Note 1) Financial information from thepast fiveyears(Note 1) Financial
information for the
2018
Items current year up to
2020 2019 (After 2017 2016
March 31 2021
restatement) ,
(Note 3)
Current assets 215,186,668
231,944,241		 221,698,791 169,428,441 131,584,835
216,512,304
Property, plant and equipment
35,542,275
36,381,174		 37,984,471 35,764,145 33,663,144
35,162,968
(Note 2)
Intangible assets 804,348 6,770,533 11,577,481 6,880,839 6,131,053 760,346
Other asset s (Note 2) 49,789,455
38,795,595		 48,599,816 46,343,082 49,892,609
50,699,868
Total assets 301,322,746
313,891,543		 319,860,559 258,416,507 221,271,641
303,135,486
BeforeDistribution 201,009,483 230,603,249 207,661,949 158,832,963 132,381,417 200,062,022
Current
After distribution
liabilities -
230,603,249		 208,715,805 159,745,257 134,396,668
-
(Note4)
Non-current liabilities 35,437,943
26,207,143		 27,774,636 20,462,405 9,827,404
36,210,089
BeforeDistribution 236,447,426
256,810,392		 235,436,585 179,295,368 142,208,821
236,272,111
Total
After distribution
liabilities -
256,810,392		 236,490,441 180,207,662 144,224,072
-
(Note4)
Equity attributable to
shareholders of the parent
company		 48,738,468
45,836,408		 71,737,128 70,432,153 69,714,546
50,093,240
Capital stock 10,000,000
15,729,199		 15,729,199 15,729,199 15,729,199
10,000,000
Capitalsurplus 6,563,888 6,566,495 6,597,972 6,665,705 6,664,910 6,563,935
BeforeDistribution 32,147,077
23,775,185		 49,238,886 47,916,002 46,464,540
33,517,900
Retained
After distribution
earnings -
23,775,185		 48,185,030 47,003,708 44,449,289
-
(Note4)
Other equity 403,807
141,833		 547,375 497,551 1,232,201
387,709
Treasury stock (376,304)
(376,304)		 (376,304) (376,304) (376,304)
(376,304)
Predecessor interests under joint
controls (Note 6)
-
-		 564,712 - -
-
Non-controlling interests 16,136,852
11,244,743		 12,122,134 8,688,986 9,348,274
16,770,135
BeforeDistribution 64,875,320 57,081,151 84,423,974 79,121,139 79,062,820 66,863,375
Total After distribution
equity -
57,081,151		 83,370,118 78,208,845 77,047,569
-
(Note 4)

  • The Company has prepared individual financial statement; therefore, the below condensed individual balance sheets and Income Statement within five years are provided otherwise.

  • The financial information adopting International Financial Reporting Standards is not over 5 years; therefore, financial information adopting Taiwan financial reporting standards is provided otherwise.

  • Note 1: Any year that has not been audited and attested by CPAs should be noted.

  • Note 2: If assets have been revalued in the current year, the date of revaluation and the amount of revaluation surplus should be indicated.

  • Note 3: IFRSs are adopted and the Q1 financial information has been reviewed by CPAs.

  • Note 4: The “amount after distribution” in the preceding paragraph refers to the amount resolved in the shareholders’ meeting in the following year.

  • Note 5: For the financial data corrected or recomposed internally upon the notice of the competent authorities, the corrected or recomposed amount should be applied to prepare the financial report with the fact and reason for correction or re-composition noted.

  • Note 6: On March 6, 2020, the Company signed a joint venture agreement with Hua-Chuang Automobile Information Technical Center Co., Ltd. and Hon Hai Precision Industry Co., Ltd. In accordance with IFRS 10 on Consolidated Financial Statements, the Company has been in control of Hua-Chuang Automobile Information Technical Center Co., Ltd since December 31, 2019, considering its ability to control the relevant activities of Hua-Chuang Automobile Information Technical Center Co., Ltd. Since Hua-Chuang Automobile Information Technical Center Co., Ltd is under the common control of both the Company and Tai Yuen Textile, the consolidated balance sheet and the consolidated statement of changes in equity as of December 31, 2018 should be restated as if it had been consolidated from the beginning for the purpose of preparing the comparative consolidated financial statements.

Annual Report 2020 87

Financial Status

Standalone condensed balance sheet

Unit: Thousands of NTD

Financial information from the past Financial information from the past Financial information from the past five years (Note 1) five years (Note 1)
Year
2018
Items 2020 2019 (After 2017 2016
restatement)
Current assets 13,430,414
27,778,211
21,588,727
28,407,784
16,408,827
Property, plant and equipment
7,424,065
6,711,446
6,461,658
6,361,945
6,238,698

(Note 2)
Intangible assets 57,361
1,263,090
1,275,678
1,277,490
68,642
Other assets(Note 2) 58,281,188
44,166,602
68,285,190
56,969,652
56,340,968
Total assets 79,193,028
79,919,349
97,611,253
93,016,871
79,057,135
Before
9,951,525
6,082,477
4,665,156
7,288,443
5,275,141
Distribution
Current liabilities
After dividend
distribution － 6,082,477
5,719,012
8,200,737
6,061,601
(Note 3)
Non-current liabilities 20,503,035
28,000,464
20,644,257
15,296,275
4,256,396
Before
30,454,560
34,082,941
25,309,413
22,584,718
9,531,537
Distribution
Total liabilities After dividend
distribution － 34,082,941
26,363,269
23,497,012
10,317,997
(Note 3)
Equity attributable to shareholders
of the parent company
48,738,468
45,836,408
72,301,840
70,432,153
69,714,546
Capital stock 10,000,000
15,729,199
15,729,199
15,729,199
15,729,199
Capital surplus 6,563,888
6,566,495
6,597,972
6,665,705
6,664,910
Before
32,147,077
23,775,185
49,238,886
47,916,002
46,464,540
Distribution
Retained
After
dividend
earnings
distribution － 23,775,185
48,185,030
47,003,708
45,678,080
(Note 3)
Other equity 403,807
141,833
547,375
497,551
1,232,201
Treasurystock (376,304) (376,304) (376,304) (376,304) (376,304)
Predecessor interests under joint
controls (Note 5)
-		 - 564,712
-		 -
Before
48,738,468
45,836,408
72,301,840
70,432,153
69,714,546
Distribution
Total equity After dividend
distribution － 45,836,408
71,247,984
69,519,859
68,928,086
(Note 3)

  • The Company has prepared individual financial statement; therefore, the below condensed individual balance sheets and Income Statement within five years are provided otherwise.

  • The financial information adopting International Financial Reporting Standards is not over 5 years; therefore, financial information adopting Taiwan financial reporting standards is provided otherwise.

  • Note 1: Any year that has not been audited and attested by CPAs should be noted.

  • Note 2: If assets have been revalued in the current year, the date of revaluation and the amount of revaluation surplus should be indicated.

  • Note 3: The “amount after distribution” in the preceding paragraph refers to the amount resolved in the shareholders’ meeting in the following year.

  • Note 4: For the financial data corrected or recomposed internally upon the notice of the competent authorities, the corrected or recomposed amount should be applied to prepare the financial report with the fact and reason for correction or re-composition noted.

  • Note 5: On March 6, 2020, the Company signed a joint venture agreement with Hua-Chuang Automobile Information Technical Center Co., Ltd. and Hon Hai Precision Industry Co., Ltd. In accordance with IFRS 10 on Consolidated Financial Statements, the Company has been in control of Hua-Chuang Automobile Information Technical Center Co., Ltd since December 31, 2019, considering its ability to control the relevant activities of Hua-Chuang Automobile Information Technical Center Co., Ltd Since Hua-Chuang Automobile Information Technical Center Co., Ltd is under the common control of both the Company and Tai Yuen Textile, the standalone balance sheet and the standalone statement of changes in equity as of December 31, 2018 should be restated as if it had been consolidated from the beginning for the purpose of preparing the comparative consolidated financial statements.

88 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Consolidated condensed comprehensive income statement

Unit: Thousands of NTD

Financial information from the past five years (Note 1) Financial information from the past five years (Note 1) Financial information from the past five years (Note 1) Financial information from the past five years (Note 1) Financial information from the past five years (Note 1) Financial
information for
Year
the current year
Items
2020 2019 2018 2017 2016
up to March 31,

2021(Note2)
Operating revenues (Note
5)		 82,597,514
85,578,910		 88,115,701 94,111,028 112,166,685
20,471,216
Net operating profits
18,629,605
5,725,273		 18,965,226 20,001,414 19,199,975
5,975,045
(Note 5)
Operating profits and
losses (Note 5)		 (1,218,462)
(30,747,539)		 2,018,343 1,897,027 2,223,895
1,854,898
Non-operating income
6,942,010
7,310,391		 3,366,719 2,241,421 840,000
615,697
and expenses (Note 5)
Profitbeforeincometax 5,723,548
(23,437,148)		 5,385,062 4,138,448 3,063,895
2,470,595
Profit before income tax
from continuing 4,839,562
(24,533,477)		 3,847,036 3,078,421 1,779,223
2,029,650
operations
Losses from discontinued
operations (Note 3)		 － － － － － -
Net profits (losses) for the
4,839,562
(24,533,477)		 3,847,036 3,078,421 1,779,223
2,029,650
period
Other comprehensive
income (net)		 240,989
(304,732)		 (687,796) (870,238) (1,928,172)
(33,234)
Total comprehensive
5,080,551
(24,838,209)		 3,159,240 2,208,183 (148,949)
1,996,416
incomefor the period
Net income attributable to
shareholders of the parent
company		 2,739,210
(24,465,408)		 2,037,032 2,288,306 1,334,703
1,358,135
Predecessor Equity under
－ (564,712) － － － -
jointcontrols
Non-controllinginterests 2,100,352
496,643		 1,810,004 790,115 444,520
671,515
Total comprehensive
income attributable to
2,949,501
(24,603,974)		 1,490,742 1,508,187 (275,544)
1,354,725
shareholders of parent
company
Predecessor Equity
underjoint controls		 － (564,712) － － － -
Non-controllinginterests 2,131,050
330,477		 1,668,498 699,996 126,595
641,691
Earningsper share 2.80
(26.13)		 1.39 1.56 0.91
1.39

  • The Company has prepared individual financial statement; therefore, the below condensed individual balance sheets and Income Statement within five years are provided otherwise.

  • The financial information adopting International Financial Reporting Standards is not over 5 years; therefore, financial information adopting Taiwan financial reporting standards is provided otherwise.

Note 1: Any year that has not been audited and attested by CPAs should be noted.

Note 2: IFRSs are adopted and the Q1 financial information has been reviewed by CPAs.

Note 3: The loss of the discontinued department is booked for an amount net of income tax.

Note 4: For the financial data corrected or recomposed internally upon the notice of the competent authorities, the corrected or recomposed amount should be applied to prepare the financial report with the fact and reason for correction or re-composition noted.

Note 5: The Company considered it more appropriate to include impairment loss on lease assets (previously recorded as administration expenses) and gain on recovery of doubtful accounts (previously recorded as other operating income) as a deduction from lease costs and expected credit impairment loss, respectively, and therefore changed the presentation of the consolidated statement of income in 2020 and reclassified the comparative information in 2019 to make the presentation consistent.

  • Note 6: On August 11, 2020, the Company reduced capital to make up for losses, so the earnings per share for 2019 was adjusted retroactively.

Annual Report 2020 89

Financial Status

Standalone condensed comprehensive income statement

Unit: Thousands of NTD

Year
Financial information from the past five years (Note 1)
Financial information from the past five years (Note 1)
Financial information from the past five years (Note 1)
Financial information from the past five years (Note 1)
Financial information from the past five years (Note 1)
Items 2020 2019 2018 2017 2016
Operating revenues 28,271,894
30,261,929
31,808,738
36,092,796
39,998,024
Net operating margin 2,326,374
2,637,334
2,846,516
2,941,489
2,998,922
Operating profit and loss 1,013,256
1,047,888
1,672,619
1,847,150
1,802,855
Non-operating income and
1,625,139
(26,084,898)		 489,167
472,753
6,787

expenses
Profit before income tax 2,638,395
(25,037,010)		 2,161,786
2,319,903
1,809,642
Profit before income tax from
2,739,210
(25,030,120)		 2,037,032
2,288,306
1,334,703
continuing operations
Losses from discontinued
operations (Note 2)		 -
Net profits (losses) for the period 2,739,210
(25,030,120)		 2,037,032
2,288,306
1,334,703
Other comprehensive income
(net)		 210,291
(138,566)		 (546,290) (780,119)
(1,610,247)
Total comprehensive income for
2,949,501
(25,168,686)		 1,490,742
1,508,187
(275,544)

theperiod

  • The Company has prepared individual financial statement; therefore, the below condensed individual balance sheets and Income Statement within five years are provided otherwise.

  • The financial information adopting International Financial Reporting Standards is not over 5 years; therefore, financial information adopting Taiwan financial reporting standards is provided otherwise.

Note 1: Any year that has not been audited and attested by CPAs should be noted.

Note 2: The loss of the discontinued department is booked for an amount net of income tax.

Note 3: For the financial data corrected or recomposed internally upon the notice of the competent authorities, the corrected or recomposed amount should be applied to prepare the financial report with the fact and reason for correction or re-composition noted.

(II) Names and audit opinions of the attesting CPAs for the last five years

Year 2020 2019 2018 2017 2016
Attesting CPA Guo Li-Wen
Fan Yu-Wei		 Tai Shun-Wai
Fan Yu-Wei		 Tai Shun-Wai
Fan Yu-Wei		 Tai Shun-Wai
Fan Yu-Wei		 Tai Shun-Wai
Fan Yu-Wei
Audit Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

90 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

II. Analysis of important financial ratios for the last five years

(I) Consolidated financial ratio analysis - IFRS

Year (Note 1) Year (Note 1)
Financial Analysis of the Past Five Years
Financial Analysis of the Past Five Years
Financial Analysis of the Past Five Years
Financial Analysis of the Past Five Years
Financial Analysis of the Past Five Years		 The current year
up to March 31
2018 ,
2021 (Note 2)
Analysis items (Note 3) 2020 2019 (After 2017 2016
restatement)
Capital
Structure
(%)		 Debtstoassetsratio (%) 78.47 81.82 72.83
69.38		 64.27
77.94
Long-term capital to
property, plant and
equipment ratio		 282.22 164.54 230.65
257.45		 237.62
293.13
Current ratio 107.05 100.58 106.79
106.67		 99.4
108.22
Solvency Quick ratio 99.43 91.97 96.32
96.07		 90.79
101.11
(%) Interest coverage
7.97 (19.88) 11.49
15.15		 10.78
20.86
multiplier
Operating
performance		 Accounts receivable
turnover rate (times)		 0.59 0.67 0.83
1.08		 1.53
0.57
Average collectiondays 616.55 540.89 437.23 337.96 238.55
640.83
Inventory turnover rate
(times)		 4.29 4.57 4.52
6.77		 9.96
4.76
Accounts payable
turnover rate (times)		 6.37 5.74 4.78
5.28		 7.49
9.63
Average sales days 84.99 79.93 80.81
53.91		 36.64
76.72
Property, plant and
equipment turnover rate
(times)		 2.30 2.32 2.40
2.71		 3.35
2.32
Total asset turnover rate
(times)		 0.27 0.28 0.31
0.39		 0.52
0.27
Returnonassets (%) 1.79 (7.63) 1.51
1.38		 0.94
2.82
Returnonequity (%) 7.94 (35.01) 4.74
3.89		 2.22
12.33

Profits before tax to paid-
Profitability 57.24 (149) 34.24
26.31		 19.48
98.82

in capital ratio (%)
Net profitmargin(%) 5.86 (28.67) 4.37
3.27		 1.59
9.91
Earnings pershare (NT$) 2.80 (26.13) 1.39 1.56 0.91
1.39
Cash flow Cash flowratio (%) 2.07 (10.8) (20.75) (13.47) (6.47) (5.49)
Cash flow adequacy ratio
(%)		 (274.67) (251.31) (182.65) (84.73) (46.55)
(308.59)
Cash reinvestment ratio
(%)		 2.40 (25.13) (33.36) (20.35) (10.60)
(2.22)
Operatingleverage (7.83) 0.67 5.42
4.95		 4.41
2.36
Leverage
Financial leverage 0.60 0.96 1.34
1.18		 1.16 1.07
Analysis of financial ratio differences for the last two years. (If the increase or decrease is less than 20%, an analysis is
exempted)
1. The long-term capital to property, plant and equipment ratio increased mainly due to the increase in net profits and long-
term loans in 2020 compared to 2019.
2. The increase in the interest coverage multiplier was mainly due to the increase in profits before tax in 2020 compared to
2019.
3. The increase in return on assets was mainly due to the increase in net profits in 2020 compared to 2019.
4. The increase in return on equity was mainly due to the increase in net profits in 2020 compared to 2019.
5. The increase in profitability-related ratio was mainly due to the increase in net profits in 2020 compared to 2019.
6. The increase in cash flow ratio was mainly due to the increase in net cash flow from operating activities in 2020
compared to 2019.
7. The increase in cash reinvestment ratio was mainly due to the increase in net cash flow from operating activities in 2020
compared to 2019.

Analysis of financial ratio differences for the last two years. (If the increase or decrease is less than 20%, an analysis is exempted) 1. The long-term capital to property, plant and equipment ratio increased mainly due to the increase in net profits and longterm loans in 2020 compared to 2019.

  1. The increase in the interest coverage multiplier was mainly due to the increase in profits before tax in 2020 compared to 2019.

  2. The increase in return on assets was mainly due to the increase in net profits in 2020 compared to 2019.

  3. The increase in return on equity was mainly due to the increase in net profits in 2020 compared to 2019.

  4. The increase in profitability-related ratio was mainly due to the increase in net profits in 2020 compared to 2019.

  5. The increase in cash flow ratio was mainly due to the increase in net cash flow from operating activities in 2020 compared to 2019.

  6. The increase in cash reinvestment ratio was mainly due to the increase in net cash flow from operating activities in 2020 compared to 2019.

Annual Report 2020 91

Financial Status

(II) Standalone financial ratio analysis - IFRS

Year (Note 1) Year (Note 1) Financial Analysis of thePast FiveYears Financial Analysis of thePast FiveYears Financial Analysis of thePast FiveYears Financial Analysis of thePast FiveYears Financial Analysis of thePast FiveYears
2018
Analysis item (Note 3) 2020 2019 (After 2017 2016
restatement)
Capital
Structure
(%)		 Debts to assets ratio(%) 38.46 42.65
25.93
24.28
12.06
Long-term capital to property, plant
and equipmentratio		 932.66 682.96
1,141.84
1,107.09
1,114.42
Current ratio 134.96 456.69
462.77
389.76
311.06
Solvency
Quick ratio 90.54 383.62
363.88
327.21
230.16
ratio (%)
Interest coverage multiplier 13.25 (114.41)
15.57
146.37
937.18
Operating
performance		 Accounts receivable turnover rate
(times)		 134.57 42.11
40.71
46.97
60.15
Average collection days 2.71 8.67
8.97
7.77
6.07
Inventoryturnover rate(times) 5.86 6.10
6.52
7.46
8.62
Accountspayable turnover rate(times) 8.92 9.35
9.05
8.98
11.66
Average sales days 62.26 59.84
55.97
48.95
42.36
Property, plant and equipment turnover
rate (times)		 4.00 4.59
5.01
5.73
6.42
Total asset turnover rate(times) 0.36 0.34
0.36
0.42
0.50
Return on assets(%) 3.66 (28.09)
2.27
2.65
1.67
Return on equity (%) 5.79 (42.58)
2.85
3.27
1.89
Profits before tax to paid-in capital
Profitability 26.38 (159.18)
13.74
14.75
11.50
ratio (%)
Netprofit margin(%) 9.69 (82.71)
6.40
6.34
3.34
Earningsper share(NT$) 2.80 (26.13)
1.39
1.56
0.91
Cash flow Cash flow ratio(%) 31.52 (2.04)
(61.50)		 32.97
98.75
Cash flow adequacyratio(%) 4.01 16.18
19.35
35.21
44.97
Cash reinvestment ratio(%) 5.25 (1.76)
(4.50)		 2.09
5.61
Operatingleverage 1.39 1.40
1.24
1.24
1.24
Leverage
Financial leverage 1.27 1.26
1.10
1.01
1.00
Analysis of financial ratio differences for the last two years. (Effort for analysis may be dispensed with in case of
increase/decrease change is below 20%)
1. The decrease in current ratio and quick ratio was mainly due to increase the capital of the reinvested company.
2. The increase in the interest coverage multiplier was mainly due to the gain in 2020.
3. The increase in accounts receivable turnover rate and decrease in average collection days was mainly draw up bad debt
losses in 2019.
4. The increase in return on assets and return on equity was mainly due to the gain in 2020.
5. The increase in net profits before tax to paid-in capital ratio, net profit margin and earnings per share was mainly due to
the gain in 2020.
6. The increase in cash flow ratio and cash reinvestment ratio was mainly due to the decrease in net cash outflow from
operating activities in 2019 compared to 2018.
7. The decrease in cash flow adequacy ratio was mainly due to capital expenditure increased.

  • If the Company prepares standalone financial statements, it should prepare a separate analysis of the Company's standalone financial ratios.

  • The financial information adopting International Financial Reporting Standards is not over 5 years; therefore, the below table (2) of financial information adopting Taiwan financial reporting standards is provided otherwise.

Note 1: Any year that has not been audited and attested by CPAs should be noted.

  • Note 2: TWSE or TPEx listed companies should include the financial information of the current year ending one quarter before the publication date of the annual report in the analysis.

Note 3: The following equation shall be identified at the end of the annual report:

  1. Financial structure

  2. (1) Liabilities to total asset = total liabilities/total assets.

  3. (2) Long-term fund to property, plant and equipment = (total equity + non-current liabilities)/net value of property, plant and equipment.

  4. Solvency ratio

  5. (1) Current ratio = current assets/current liabilities.

  6. (2) Quick ratio＝(current assets－inventories－prepaid expense) /current liabilities

  7. (3) Interest protection multiples = Pre-income tax and interest profits/interest expenditure of the term

  8. Operating performance

92 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020 

  - (1) Receivables (including accounts receivable and notes receivable resulting from operations) turnover = net sales / balance of average accounts receivable (including accounts receivable and notes receivable resulting from operation)

  - (2) Average collection days = 365/receivables turnover

  - (3) Inventory turnover = cost of goods sold/ average inventory

  - (4) Payables (including accounts payable and bills payable that are incurred as a result of business operation) = sales cost/balance from average payables of each term (including accounts payable and bills payable)

  - (5) Average days in sales = 365/ inventory turnover.

  - (6) Property, plant and equipment turnover = net sales/average net property, plant and equipment.

  - (7) Total assets turnover = net sales/average total assets

  1. Profitability

    • (1) ROA = [income after income tax + interest expense*(1-tax rate)]/average total assets.

    • (2) Return on equity = net income / average total equity

    • (3) EBIT margin = net income / net sales amount

    • (4) Earnings per share＝(profits or loss attributable to owners of the parent company－preferred stock dividend) ／ weighted average stock shares issued (Note 4)

  2. Cash Flow

    • (1) Cash flow ratio = Net cash flow from business activities/current liabilities

    • (2) Net cash flow adequacy ratio = net cash flow from operating activities for the most recent five years / (capital expenditures + inventory increase + cash dividend for the most recent five years)

    • (3) Cash re-investment ratio = (net cash flow from operating activities – cash dividend) / gross property, plant and equipment value + long-term investment + other non-current assets + working capital) (Note 5)

  3. Leverage:

    • (1) Operating leverage = (net operating revenue – variable operating costs and expenses) / operating income (Note 6)

    • (2) Financial leverage = Operating income/(operating income - interest expenses)

  4. Note 4: For the calculation formula of the earnings per share (EPS) above, the following aspects should be particularly taken into account: 1. EPS shall be based on the weighted average number of ordinary shares, rather than the number of outstanding shares at yearend.

  5. In case of any capital increase in cash or trading of treasury stocks, the weighted average number of shares should be calculated within the negotiation period.

  6. In case of any capitalization of earnings or capital reserves, such amount should be adjusted retroactively when the EPS for the previous years and the last six months is calculated.

  7. If the prefer stock is inconvertible cumulative preferred stock, the current stock divided (regardless distributed or not) should be deducted from the net income or added to the net loss. In case of non-cumulative preferred shares with net profit after tax, the dividends on preferred shares should be deducted from the net profit after tax; in case of any loss, no adjustment will be required.

  8. Note 5: During the cash flow analysis, the following aspects should be particularly taken into account:

  9. “Net cash flow from operating activities“ refers to the net cash inflow from operating activities indicated in the cash flow statement.

  10. “Capital expenditure“ refers to the cash outflow from annual capital investment.

  11. The increase in inventory should be included where the ending balance is more than the opening balance. If the inventory decreases at the end of that year, zero will be recorded.

  12. Cash Dividends includes the dividends in cash paid to holders of common shares and preferred shares.

  13. The gross property, plant, and equipment refer to the total amount of property, plant, and equipment before deducting the accumulated depreciation.

  14. Note 6: The issuer shall classify operating costs and expenses into the fixed or variable group. If any estimation or subjective judgment, it is necessary to ensure the rationality and maintain consistency.

  15. Note 7: If the Company's stock has no face value or the face value per share is not NT$10, the ratios related to paid-in capital in the preceding paragraph should be replaced with the ratio of equity attributable to shareholders of the parent in the balance sheet.

Annual Report 2020 93

Financial Status

III. Audit Committee’s review report

YULON MOTOR CO.,LTD Independent Auditors’ Report

The Board of Directors had duly worked out the Company’s 2020 Business Report, Financial Statement (including Consolidated Financial Statement) and proposal for distribution of earnings. Among them, the Financial Statement (including Consolidated Financial Statement) have been duly audited by Certified Public Accountants Kuo Li-Wen and Fan Yu-Wei of Deloitte Touche Tohmatsu International Taiwan who have duly issued the Audit Report. The aforementioned Business Report, Financial Statement (including Consolidated Financial Statement) and proposal for distribution of earnings have been duly reviewed by us, the Undersigned Audit Committee and prove authentic to the facts. In accordance with Article 14–4 of Securities and Exchange Act and Article 219 of Company Act, we have duly worked out the present Report and hereby submit the same for verification.

Best regards

2021 Regular Shareholders Meeting

YULON MOTOR CO.,LTD Convener of the Auditing Committee: Yi-Hong Hsieh

==> picture [52 x 54] intentionally omitted <==

March 30, 2021

94 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Yulon Motor Company Ltd.

Opinion

We have audited the accompanying financial statements of Yulon Motor Company Ltd. (the “Company”), which comprise the balance sheets as of December 31, 2020 and 2019, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

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

Basis for Opinion

We conducted our audit of the financial statements for the year ended December 31, 2020 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. We conducted our audit of the financial statements for the year ended December 31, 2019 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission of the Republic of China on February 25, 2020, 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 Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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

Annual Report 2020 95

Financial Information

Impairment Assessment of Vehicle Model Development Cost and Molds of Luxgen Motor, Subsidiary Accounted for Using Equity Method

Please refer to Note 13 for details.

Luxgen Co., Ltd., a subsidiary, identifies different models of vehicles as separate cash-generating units, and tests them for impairment if there are indicators of impairment annually. Because impairment assessment is an area of professional judgment, we determined that impairment assessment of the vehicle model development cost and molds equipment is a key audit matter.

The main audit procedures we have performed in respect of the key audit matter stated above about impairment assessment of the vehicle model development cost and molds equipment are as follows:

  1. We understood the process and basis for the estimated growth rate and profitability of the sales forecast of the Company.

  2. We reviewed whether the estimated operating cash flow considered the latest operating performance and industry overview.

  3. We assessed the evaluation model used by the management.

  4. We assessed the weighted average cost of capital (WACC) used by the management in calculating the recoverable amount in accordance with the valuation model, including risk-free rate, volatility and risk premium. We verified that the WACC was consistent with the Company status and the industry.

Estimated Impairment of Trade Receivable

The provision for impairment of trade receivables of Yulon Finance Co, Ltd., the Company’s horizontal segment subsidiary is based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise. The key assumptions and inputs used involved significant management judgment and estimation uncertainty; thus, impairment assessment is determined as a key audit matter.

Our audit procedures included the following:

  1. We understood the policies on impairment of trade receivable and assessed the reasonableness of impairment of receivables by performing inquiry, inspection and reperformance of related internal controls.

  2. We involved our internal IT specialists in testing Yulon Finance Co, Ltd.’s system that generated related documents used by management in the evaluation and determination of default rate and expected loss rate; the tests verified the correctness of the assumptions used in the determination of default rate and expected loss rate.

96 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  1. We calculated the expected credit loss based on the impairment policy.

Other Matter

As described in Note 32, Dongfeng Yulon Motor Sales Co., Ltd., a subsidiary, was adjudged by a court as bankrupt on November 9, 2020 and the court appointed a trustee on November 16, 2020. The Company Ltd. has lost control over the subsidiary since then. Therefore, the assets and liabilities of Dongfeng Yulon Motor Sales Co., Ltd. were not included in the financial statements for the year ended December 31, 2020.

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

Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

  1. Identify and assess the risks of material misstatement of the 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.

Annual Report 2020 97

Financial Information

  1. 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.

  2. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

  3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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.

  4. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2020 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

98 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The engagement partners on the audits resulting in this independent auditors’ report are Li-Wen Kuo and Yu-Wei Fan.

Deloitte & Touche Taipei, Taiwan Republic of China March 30, 2021

Notice to Readers

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

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

Annual Report 2020 99

Financial Information

YULON MOTOR COMPANY LTD.

BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)
Financial assets at fair value through profit or loss - current
(Notes 4 and 7)
Financial assets at amortized cost - current (Notes 4 and 9)
Note and trade receivable (Notes 4 and 10)
Notes and trade receivable from related parties (Notes 4, 10 and
30)
Other receivables (Notes 4, 11 and 30)
Inventories (Notes 4 and 12)
Other current assets (Note 30)
Total current assets
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive
income - non-current (Notes 4 and 8)
Investments accounted for using equity method (Notes 4 and 13)
Property, plant and equipment (Notes 4 and 14)
Right-of-use assets (Notes 4 and 15)
Investment properties (Notes 4 and 16)
Intangible assets (Notes 4 and 17)
Deferred tax assets (Notes 4 and 25)
Other non-current assets
Total non-current assets
TOTAL		 2020
Amount
%
$ 1,602,487
2
2,056,899
3
1,676,880
2
10,751
-
82,238
-
178,042
-
7,555,666
10

267,451

-

13,430,414

17
2,271,662
3
43,461,105
55
7,424,065
9
9,461
-
11,686,745
15
57,361
-
610,768
1

241,447

-

65,762,614

83
$ 79,193,028
100		 2019










Amount
%
$ 7,262,478
9
1,742,556
2
7,200,566
9
23,857
-
303,328
-
322,164
1
10,590,908
13

332,354

1

27,778,211

35
2,418,449
3
32,117,684
40
6,711,446
8
3,365
-
8,460,236
11
1,263,090
1
593,368
1

573,500

1

52,141,138

65
$ 79,919,349
100

(Continued)

100 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD.

BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

ASSETS
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 18)
Short-term bills payable (Note 18)
Trade payables
Trade payables to related parties (Note 30)
Other payables (Notes 20 and 30)
Current tax liabilities (Notes 4 and 25)
Lease liabilities - current (Notes 4 and 15)
Current portion of long-term borrowing and bonds payable
Other current liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Bonds payable (Notes 4 and 19)
Deferred tax liabilities (Notes 4 and 25)
Lease liabilities - non-current (Notes 4 and 15)
Net defined benefit liabilities - non-current (Notes 4 and 21)
Deposits received
Credit balance on the carrying value of investments accounted
for using the equity method (Notes 4
and 13)
Other non-current liabilities
Total non-current liabilities
Total liabilities
EQUITY (Note 22)
Share capital
Ordinary shares
Capital surplus
Retained earnings
Legal reserve
Special reserve
Unappropriated earnings
Total retained earnings
Other equity
Exchange differences on translation of foreign operations
Unrealized gain on financial assets at fair value through other
comprehensive income
Gain on hedging instrument
Treasury shares
Total equity
TOTAL		 2020
Amount
%
$ 1,500,000
2
1,997,789
2
1,452,723
2
1,553,047
2
3,412,348
4
-
-
2,387
-
-
-
33,231
-
9,951,525
12
15,300,000
19
2,476,892
3
7,082
-
376,412
1
768,256
1
1,567,265
2
7,128
-
20,503,035
26
30,454,560
38
10,000,000
13
6,563,888
8
8,281,822
10
24,228,565
31
(363,310)
-
32,147,077
41
(1,118,814)
(2)
1,522,597
2
24
-
403,807
-
(376,304)
-
48,738,468
62
$ 79,193,028
100		 2019














Amount
%
$ -
-
-
-
1,233,436
2
1,590,476
2
1,696,346
2
46,375
-
31
-
1,500,000
2

15,813
-

6,082,477
8
15,300,000
19
2,580,315
3
3,298
-
582,964
1
210,567
-
9,314,207
12

9,113
-

28,000,464
35

34,082,941
43

15,729,199
20

6,566,495
8
8,281,822
11
39,373,565
49

(23,880,202)
(30)

23,775,185
30
(1,255,680 )
(2)
1,397,517
2

(4)
-

141,833
-

(376,304)
(1)

45,836,408
57
$ 79,919,349
100

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche auditors’ report dated March 30, 2021)

(Concluded)

Annual Report 2020 101

Financial Information

YULON MOTOR COMPANY LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 23 and 30)
Sales
Other operating revenue
Total operating revenue
OPERATING COSTS (Notes 12, 14, 21, 24 and 30)
Cost of goods sold
Other operating cost
Total operating costs
GROSS PROFIT
(UNREALIZED) REALIZED GAIN ON
TRANSACTIONS WITH SUBSIDIARIES,
ASSOCIATES AND JOINT VENTURES
REALIZED GROSS PROFIT
OPERATING EXPENSES (Notes 10, 20, 24 and
30)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit loss
Total operating expenses
PROFIT FROM OPERATIONS
NON-OPERATING INCOME (LOSS)
Share of profit (loss) of subsidiaries, associates
and joint ventures
Other income (Note 24)
Interest income
Finance costs
Other gains and losses (Note 24)
Total non-operating income (loss)		 2020
Amount
%
$ 27,094,624
96
1,177,270
4
28,271,894
100
25,805,146
91
182,029
1
25,987,175
92
2,284,719
8
41,655
-
2,326,374
8
106,323
-
1,060,169
4
146,626
1
-
-
1,313,118
5
1,013,256
3
2,236,307
8
60,249
-
104,707
1
(215,326)
(1)
(560,798)
(2)
1,625,139
6		 2019
Amount
%
$ 29,202,817
96
1,059,112
4
30,261,929
100
27,419,237
91
206,053
1
27,625,290
92
2,636,639
8
695
-
2,637,334
8
120,060
-
965,315
3
145,151
1
358,920
1
1,589,446
5
1,047,888
3
(26,534,175)
(88)
64,760
-
106,947
1
(216,931)
(1)
494,501
2
(26,084,898)
(86)
(Continued)

102 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

PROFIT (LOSS) BEFORE INCOME TAX
INCOME TAX BENEFIT (EXPENSE) (Notes 4
and 25)
NET PROFIT (LOSS) FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of defined benefit plans
Unrealized gain on investments in equity
instruments at fair value through other
comprehensive income
Share of other comprehensive income of
subsidiaries, associates and joint ventures
accounted for using the equity method
Items that may be reclassified subsequently to
profit or loss:
Share of other comprehensive income (loss)
of subsidiaries, associates and joint
ventures accounted for using the equity
method
Other comprehensive income (loss) for
the year, net of income tax
TOTAL COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR
EARNINGS (LOSS) PER SHARE (NEW
TAIWAN DOLLARS; Note 26)
Basic
Diluted		 2020
Amount
%
$ 2,638,395
9
(100,815)
-
2,739,210
9
6,208
-
6,552
-
60,665
-
73,425
-
136,866
1
210,291
1
$ 2,949,501
10
$ 2.80
$ 2.80		 2019
Amount
%
$ (25,037,010)
(83)
(6,890)
-
(25,030,120)
(83)
(91,351)
-
285,487
1
3,837
-
197,973
1
(336,539)
(1)
(138,566)
-
$ (25,168,686)
(83)
$ (26.13)
$ (26.13)
$

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche auditors’ report dated March 30, 2021)

(Concluded)

Annual Report 2020 103

YULON MOTOR COMPANY LTD.

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

BALANCE, JANUARY 1, 2019

Appropriation of 2018 earnings
Legal reserve
Special reserve
Cash dividends distributed by the Company (NT$0.67
per share)
Change in equity from investments in subsidiaries,
associates and joint ventures accounted for by using
equity method
Net profit for the year ended December 31, 2019
Other comprehensive loss for the year ended December
31, 2019, net of income tax

Total comprehensive income for the year ended December
31, 2019

Associates disposed the investments in equity instruments
designed as at fair value through other comprehensive
income

BALANCE, DECEMBER 31, 2019
Capital reduction for covering accumulated deficit
Appropriation of the 2019 earnings
Special reserve
Change in equity from the differences between the
consideration received or paid and the carrying amount
of the subsidiaries' net assets during disposal or
acquisition
Net profit for the year ended December 31, 2020
Other comprehensive income for the year ended
December 31, 2020, net of income tax

Total comprehensive income for the year ended December
31, 2020

Disposed the investments in equity instruments designed
as at fair value through other comprehensive income
Associates disposed the investments in equity instruments
designed as at fair value through other comprehensive
income

BALANCE, DECEMBER 31, 2020
 Share Capital
Capital Surplus
$ 15,729,199
$ 6,597,972
-
-
-
-
-
-
-
(31,477)
-
-

-
-

-
-

-
-
15,729,199
6,566,495
(5,729,199 )
-
-
-
-
(2,607)
-
-

-
-

-
-
-
-

-
-
$ 10,000,000
$ 6,563,888		 Retained Earnings Other Equity Gain/(Loss) on
Hedging
Instruments
T
$ 252
-
-
-
-
-
(256)
(256)
-
(4)
-
-
-
-
28
28
-
-
$ 24		 C

reasury Shares
$ (376,304)
-
-
-
-
-
-
-
-
(376,304)
-
-
-
-
-
-
-
-
$ (376,304)		 ommon Control
of Predecessor
Rights
$ 564,712
-
-
-
-
(564,712)
-
(564,712)
-
-
-
-
-
-
-
-
-
-
$ -		 Total Equity
$ 72,301,840
-
-
(1,053,856 )
(242,890 )
(25,030,120 )
(138,566)
(25,168,686)
-
45,836,408
-
-
(47,441 )
2,739,210
210,291
2,949,501
-
-
$ 48,738,468
Exchange
Differences on
Translation of

(L
Foreign
Operations
$ (919,398 )
-
-
-
-
-
(336,282)
(336,282)
-
(1,255,680 )
-
-
-
-
136,866
136,866
-
-
$ (1,118,814)		 Unrealized Gain
oss) on Financial
Assets at Fair
Value Through
Other

Comprehensive
Income
$ 1,466,521
-
-
-
-
-
285,397
285,397
(354,401)
1,397,517
-
-
-
-
82,760
82,760
(23,034)
65,354
$ 1,522,597

Legal Reserve
Special Reserve
$ 8,078,119
$ 38,373,565
203,703
-
-
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
8,281,822
39,373,565
-
-
-
(15,145,000)
-
-
-
-
-
-
-
-
-
-
-
-
$ 8,281,822
$ 24,228,565		 Undistributed
Earnings
$ 2,787,202
(203,703)
(1,000,000)
(1,053,856)
(211,413)
(24,465,408)
(87,425)
(24,552,833)
354,401
(23,880,202)
5,729,199
15,145,000
(44,834)
2,739,210
(9,363)
2,729,847
23,034
(65,354)
$ (363,310)

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

(With Deloitte & Touche auditors’ report dated March 30, 2021)

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Share of loss (profit) of subsidiaries, associates and joint
ventures
Impairment loss recognized on non-financial assets
Depreciation expense
Gain on disposal of investment properties
Gain on disposal of property, plant and equipment
Finance costs
Interest income
Dividend income
Realized gain on the transactions with subsidiaries, associates
and joint ventures
Net gain on fair value changes of financial assets designated as
at fair value through profit or loss
Unrealized gain on foreign currency exchange
Amortization expense
Gain on disposal of investments accounted for using the equity
method
Expected credit loss
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through
profit or loss
Notes and trade receivable
Other receivables
Inventories
Other current assets
Other operating assets
Trade payables
Other payables
Other current liabilities
Net defined benefit liabilities - non-current
Other operating liabilities
Cash generated from operations
Interest received
Interest paid
Income tax paid
Net cash generated from (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of associates investment accounted for using equity
method
Proceeds from disposal of financial assets at amortized cost
Dividends received		 2020
$ 2,638,395
(2,236,307)
1,280,026
407,606
(326,871)
(251,082)
215,326
(104,707)
(91,096)
(41,645)
(41,117)
(34,717)
28,334
1
-
(273,226)
216,472
152,841
(1,881)
60,256
6,143
211,575
1,715,963
(545)
(200,344)
(1,133)

3,328,267
99,002
(215,287)
(75,011)

3,136,971

(20,142,661)
5,523,686
4,287,563		 2019
$ (25,037,010)

26,534,175

2,407,055

382,572

-

-

216,931

(106,947)

(34,899)

(28,470)

(35,734)

(29,380)

37,113

(3,150,981)

358,920

(1,684,527)

414,527

(12,682)

209,244

53,692

(406,917)

(232,905)

290,267

(51,935)

(65,017)

(23,620)

3,472

88,050

(215,550)

-

(124,028)

(8,939,995)

-

4,082,137
(Continued)

Annual Report 2020 105

Financial Information

YULON MOTOR COMPANY LTD.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

Payments for investment properties
Proceeds from investment properties
Proceeds from disposal of property, plant and equipment
Acquisition of property, plant and equipment
Proceeds of financial assets at fair value through other
comprehensive income
Payments for intangible assets
Proceeds of associates accounted for using equity method
Purchase of disposal of financial assets at amortized cost
Proceeds from the capital reduction of investments accounted for
using the equity method
Net cash (used in) generated from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term bills payable
Proceeds from short-term borrowings
Repayment of long-term borrowings
Decrease in guarantee deposits received
Payments for lease
Dividends paid
Net cash generated from (used in) financing activities
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH HELD IN FOREIGN CURRENCIES
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		 2020
$ (1,714,726)
521,151
302,404
(178,066)
50,847
(22,344)
199
-
-

(11,371,947)

1,997,789
1,500,000
(1,500,000)
557,689
(3,220)
-

2,552,258

22,727

(5,659,991)
7,262,478

$ 1,602,487
 2019
$ (307,270)

-

1,941

(827,939)

-

(23,210)

12,103,631

(5,767,686)

668,883

990,492

-

-

-

30,707

(3,067)

(1,053,856)

(1,026,216)

12,007

(147,745)

7,410,223
$ 7,262,478

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

(With Deloitte & Touche auditors’ report dated March 30, 2021)

(Concluded)

106 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD.

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Yulon Motor Company Ltd. (the “Company”) was incorporated in September 1953. It manufactures and markets automobiles and parts.

The Company’s shares have been listed on the Taiwan Stock Exchange since July 1976.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board of directors on March 25, 2021.

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

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

Except for the following, the initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies.

Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform”

Upon retrospective application of the amendments, the Company complied with the hedge accounting requirements under the assumption that the interest rate benchmark (such as the London Interbank Offered Rate or LIBOR) on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform.

Amendment to IFRS 16 “Covid-19 - Related Rent Concessions”

The Company elected to apply the practical expedient provided in the amendment to IFRS 16 with respect to rent concessions negotiated with the lessor as a direct consequence of the COVID-19. The related accounting policies are stated in Note 4. Prior to the application of the amendment, the Company shall determine whether or not the abovementioned rent concessions need to be accounted for as lease modifications.

The Company applied the amendment from January 1, 2020. Because the abovementioned rent concessions affect only in 2020, retrospective application of the amendment has no

Annual Report 2020 107

Financial Information

impact on the retained earnings as of January 1, 2020.

  • b. The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2021

Effective Date New IFRSs Announced by IASB

Amendments to IFRS 4 “Extension of the Temporary Effective immediately upon Exemption from Applying IFRS 9” promulgation by the IASB Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS January 1, 2021 16 “Interest Rate Benchmark Reform - Phase 2”

  • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform - Phase 2”

“Interest Rate Benchmark Reform - Phase 2” primarily amends IFRS 9, IFRS 7 and IFRS 16 to provide practical relief from the impact of the interest rate benchmark reform.

Changes in the basis for determining contractual cash flows as a result of interest rate benchmark reform

The changes in the basis for determining contractual cash flows of financial assets, financial liabilities or lease liabilities are accounted for by updating the effective interest rate at the time the basis is changed, provided the changes are necessary as a direct consequence of the reform and the new basis is economically equivalent to the previous basis.

Hedging accounting

The amendments provide the following temporary exceptions to hedging relationships that are subject to the reform:

  • 1) The changes to the hedging relationship that are needed to reflect changes required by the reform are treated as a continuation of the existing hedging relationship, and do not result in the discontinuation of hedge accounting or the designation of a new hedging relationship.

  • 2) After a cash flow hedging relationship is amended, the amount accumulated in the gain/(loss) on hedging instruments of cash flow hedge is deemed to be based on the alternative benchmark rate on which the hedged future cash flows are determined.

  • 3) An entity should allocate the hedged items of a group hedge that is subject to the reform to subgroups based on whether the hedged items have been changed to reference an alternative benchmark rate, and should designate the hedged benchmark rate separately.

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

108 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC
New IFRSs
“Annual Improvements to IFRS Standards 2018-2020”
Amendments to IFRS 3 “Reference to the Conceptual
Framework”
Amendments to IFRS 10 and IAS 28 “Sale or Contribution
of Asset between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17
Amendments to IAS 1 “Classification of Liabilities as
Current or Non-current”
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 16 “Property, Plant and Equipment -
Proceeds
Amendments to IAS 37 “Onerous Contracts - Cost of
Fulfilling a Contract”		 Effective Date
Announced by IASB (Note)
January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 6)
January 1, 2023 (Note 7)
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

  • Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

  • Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

  • Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

  • Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

  • Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

  • Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

  • Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

As of the date the financial statements were authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the

Annual Report 2020 109

Financial Information

initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, (the “Regulations”).

Basis of Preparation

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

The fair value measurements are grouped into Levels 1 to 3 on the basis of the degree to which the fair value measurement inputs are observable and significant to the fair value measurement in its entirety; the inputs by level are described as follows:

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

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

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

Current and Non-current Assets and Liabilities

Current assets include:

  • a. Assets held primarily for the purpose of trading;

  • b. Assets expected to be realized within 12 months after the reporting period; and

  • c. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least one operating cycle after the reporting period.

Current liabilities include:

  • a. Liabilities held primarily for the purpose of trading;

  • b. Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and

  • c. Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

110 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

All other assets and liabilities are classified as non-current.

Foreign Currencies

In the preparation of financial statements, transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

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

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

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

The assets and liabilities of the Company’s foreign operations (including those of the subsidiaries, associates, joint ventures or branches operations in other countries or currencies used that are different from that used by the Company in presenting its financial statements) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Inventories

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

Investments in Subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

Subsidiary is an entity (including a structured entity) that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income

Annual Report 2020 111

Financial Information

of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries attributable to the Company.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company’s share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the financial statements of the invested company as whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes the reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits or losses resulting from downstream transactions are eliminated in full only in the parent company’s financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company’s financial statements only to the extent of interests in the subsidiaries of entities that are not related to the Company.

Investments in Associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Company uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates attributable to the Company.

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YULON MOTOR CO., LTD

Annual Report 2020

When the Company subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in the Company’s share of the equity of associates. If the Company’s ownership interest is reduced due to the additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

When the Company’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increased.

When a Company entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s financial statements only to the extent of interests in the associate of entities that are not related to the Company.

Property, Plant and Equipment

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

Property, plant and equipment under construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. These assets are depreciated and placed in the appropriate categories of property, plant and equipment when completed and ready for intended use.

Freehold land is not depreciated.

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Financial Information

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

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

An entity that, in the course of its ordinary activities, routinely sells items of property, plant and equipment that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets are recognized as revenue in accordance with IFRS 15 “Revenue from Contracts with Customers”. IFRS 5 does not apply when assets held for sale in the ordinary course of business are transferred to inventories.

Assets held for rental that are transferred to inventories at their carrying amount are classified under operating activities.

Investment Properties

Investment properties are properties held for earning rentals and/or for capital appreciation, including property under construction for these purposes. Investment properties also include land held for a currently undetermined future use.

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

For a transfer from the investment properties classification to inventories, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of development with a view to future sale.

For a transfer from the property, plant and equipment classification to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount.

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

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

Intangible Assets

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

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YULON MOTOR CO., LTD

Annual Report 2020

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

Impairment of Tangible and Intangible Assets Other Than Goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, for any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of a corporate asset, the asset is tested for impairment in the context of the cash-generating unit (CGU) to which the asset belongs. If a portion of the carrying amount of the asset can be allocated on a reasonable and consistent basis to the CGU, the Company compares the carrying amount of the CGU, including the portion of the asset’s carrying amount allocated to the CGU, with the recoverable amount of the CGU to which the asset belongs. If this reasonable and consistent basis of allocation cannot be applied to the CGU to which the asset belongs and can be applied instead to the smallest group of CGUs to which the CGU belongs, this smallest group is used for impairment testing.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, or whenever there is an indication of asset impairment.

Before the Company recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Company expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

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

When the carrying amount of the asset or CGU is increased to a revised estimate of its recoverable amount, the impairment loss is reversed, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or CGU in prior years. A reversal of an impairment loss is recognized in profit or loss.

Financial Instruments

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

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

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Financial Information

a. Financial assets

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

1) Measurement category

  • a) Financial asset at FVTPL

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 29.

  • b) Financial assets at amortized cost

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

  • i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

  • ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable at amortized cost, trade receivables, treasury bills and other receivables and government bonds, are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

  • i. Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset; and

  • ii. Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.

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

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  • c) Investments in equity instruments at FVTOCI

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

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

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

  • 2) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable, trade receivables, and other receivables), finance lease receivables, as well as contract assets.

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

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

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

  • 3) Derecognition of financial assets

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

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

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instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

b. Equity instruments

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.

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

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

  • c. Financial liabilities

  • 1) Subsequent measurement

Except the following situation, all financial liabilities are measured at amortized cost using the effective interest method.

  • a) Financial liability at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading. Financial liabilities held for trading are stated at fair value, with any gain or loss arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 29.

  • b) Financial liability at amortized cost

The Company’s financial liability measured at amortized cost transfers financial assets and related right to trust institutions, which issue beneficiary certificates, and all proceeds raised go to consolidated entities. Under this transaction architecture, the Company does not lose the right of controlling financial assets, and nor derecognize them.

  • 2) Derecognition of financial liabilities

The Company only derecognizes the financial liabilities when the obligation is lifted, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in profit or loss.

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d. Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate risks and foreign exchange rate risks, including interest rate swaps and cross-currency swaps.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL.

Revenue Recognition

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

  • a. Revenue from sale of goods

Revenue from the sale of goods comes from sales of cars and materials.

The Company recognize revenue on goods delivered to subcontractors because this delivery involve a transfer of control.

Revenue from sale of goods comes from sales of operating assets held for rental to others. Sales of operating assets held for rental to others are recognized as revenue when ownership of the goods are transferred to the buyers.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and similar allowances. Sales returns are recognized at the time of sale if the Company can reliably estimate future returns and a liability for returns is recognized on the basis of previous experience and relevant factors.

The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

Income from properties developed for sale is recognized when construction is complete, rewards of ownership of the properties are transferred to buyers, and collectability of the related receivables is reasonably assured. Deposits received on the sale of properties and installment payments are presented in the balance sheets under current liabilities.

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Financial Information

Under the Company’s award scheme, the sale of goods that results in award credits for customers is accounted for as a multiple element revenue transaction, and award credits are accounted for as a separately identifiable component of a sales transaction in which these credits are granted (“initial sale”). The fair value of the consideration received or receivable is allocated between the award credits granted and other components of the sale. The consideration allocated to the award credits is measured at their fair value, i.e., the amount for which the award credits could be sold separately. Such consideration is not recognized as revenue at the time of the initial sale but is deferred and recognized as revenue when the award credits are redeemed and the Company’s obligations to supply the award have been fulfilled.

b. Rental revenue

A lease is classified as a finance lease if it transfers substantially all the risks, and rewards upon transfer of property or asset. Otherwise, it is classified as an operating lease.

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

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

When the lease contains both land and building, the Company is based on whether almost all the risks and compensation attached to the ownership of the elements have been transferred to the lessee to assess whether the elements are classified as financial or business leases. The lease payment shall be distributed to the land and buildings in proportion to the fair value of the lease rights of the land and buildings at the date of the establishment of the contract. If lease payments can be reliably allocated to these two elements, each element is treated according to the applicable lease classification. If the lease payment cannot be reliably apportioned to these two elements, then the overall lease is classified as a financial lease, but if both elements clearly meet the operating lease criteria, the overall lease is classified as an operating lease.

c. Investment income

For security transactions by Yung Hong Investment Company, the difference between the carrying amount of security and the actual selling price is recognized in profit or loss when these Company entities transfer substantially all the risks and rewards of security ownership to another party.

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Annual Report 2020

d. Rendering of services

Revenue from a contract to provide services is recognized by reference to the stage of completion of the contract.

e. Dividend and interest income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established and if it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

Leasing

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

The Company as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities plus any initial direct costs incurred. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

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

Lease liabilities are initially measured at the present value of the lease payments, which comprise in-substance fixed payments and variable lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate.

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

The Company negotiates with the lessor for rent concessions as a direct consequence of the Covid-19 to change the lease payments originally due by June 30, 2021, that results in the revised consideration for the lease less than the consideration for the lease immediately preceding the change. There is no substantive change to other terms and conditions. The Company elects to apply the practical expedient to all of these rent concessions and, therefore, does not assess

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whether the rent concessions are lease modifications. Instead, the Company recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments, in the period in which the events or conditions that trigger the concession occur, and makes a corresponding adjustment to the lease liability.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

Borrowing Costs

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

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

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

Employee Benefits

  • a. Short-term employee benefits

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

  • b. Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

  • c. Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognizes any related restructuring costs.

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Taxation

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

a. Current tax

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

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

  • b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint arrangements, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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

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

  • c. Current and deferred taxes for the year

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

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

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5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

Recognition and Measurement of Defined Benefit Plans

The net defined benefit liabilities (assets) and the resulting defined benefit costs under the defined benefit pension plans are calculated using the projected unit credit method. Actuarial assumptions comprise the discount rates, rates of employee turnover, future salary increases, etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of expenses and liabilities.

6. CASH AND CASH EQUIVALENTS

Cash on hand
Checking accounts and demand deposits
Cash equivalent
Time deposits with original maturities within 3 months		 December 31 December 31
2020
$ 320

1,602,167
-

$ 1,602,487
 2019
$ 680
3,503,750

3,758,048
$ 7,262,478

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

Bank balance December 31
2020
2019
0.001%-1.89% 0.001%-2.85%

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at FVTPL-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Mutual funds
Hybrid financial assets
Structured deposits		 December 31 December 31
2020
$ 1,785,079

271,820

$ 2,056,899
 2019
$ 1,129,032

613,524
$ 1,742,556

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current
Domestic investments
Listed shares and emerging market shares
Unlisted shares		 December 31 December 31
2020




$ 1,905,428

366,234

$ 2,271,662
 2019
$ 2,058,871

359,578
$ 2,418,449

In the meeting on May 11, 2018, the Board authorized the acquisition of Preferred Stock A issued by YFC; the acquisition amounted to $1,830,200 thousand; the shares are designated as financial assets at fair value through other comprehensive income.

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Company’s strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current
Time deposits with original maturity of more than 3
months		 December 31 December 31
2020
$ 1,676,880
 2019
$ 7,200,566

Annual Report 2020 125

Financial Information

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

Notes receivable
Notes receivable
Less: Allowance for impairment loss
Trade receivables
Trade receivables
Less: Allowance for impairment loss		 December 31 December 31
2020
$ 27,284

-

$ 27,284

$ 452,647

(386,942)

$ 65,705
 2019
$ 15,797

-
$ 15,797
$ 698,330
(386,942)
$ 311,388

Trade and notes receivable

The average credit period of sales of goods was 45-90 days. Since Major transaction parties were related parties, The Company’s management, when assessing recoverability of its trade and notes receivable, takes into consideration any changes in the credit quality of credit grant at the balance sheet dates, including financial and economic status of the counter-party.

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

2020

Not Past Due
1 to 180 Days
More Than 181
Days

Gross carrying amount $ 84,728
$ 8,261
$ 386,942

Loss allowance
(Lifetime ECL)

-
-
(386,942)


Amortized cost
$ 84,728
$ 8,261
$ -

2019
Not Past Due
1 to 180 Days
More Than 181
Days

Gross carrying amount $ 291,476
$ 94,573
$ 328,078

Loss allowance
(Lifetime ECL)

(20)
(80,501)
(306,421)


Amortized cost
$ 291,456
$ 14,072
$ 21,657
 Total
$ 479,931
(386,942)
$ 92,989
Total
$ 714,127
(386,942)
$ 327,185

126 YULON MOTOR

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b. The movements of the loss allowance of trade receivables were as follows:

Balance at January 1
Add: Impairment losses recognized on receivables
(Note)
Balance at December 31		 2020
$ 386,942

-

$ 386,942
 2019
$ 28,022

358,920
$ 386,942

Note: Included the receivable from related parties of the Company - Dongfeng Yulon Motor Co., Ltd. was assessed in 2019 according to the expected credit loss model, and the expected credit loss mentioned in the current period was 358,920 thousand.

11. OTHER RECEIVABLES

Other receivable
Subsidy receivables
Receivables for steel plates
Receivables for personnel transfer
Others		 December 31 December 31
2020
$ 25,200

14,627
-
138,215

$ 178,042
 2019
$ 76,000
46,466
11,145

188,553
$ 322,164

12. INVENTORIES

Finished goods
Work in progress
Raw materials
Property under construction
Yulon Property Developments		 December 31 December 31
2020
$ 1,226,539
754,804
2,127,277

4,108,620


3,447,046

$ 7,555,666
 2019
$ 872,499

832,856

2,497,698

4,203,053

6,387,855
$ 10,590,908

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2020 and 2019 was $25,805,146 thousand and $27,419,237 thousand, respectively.

The cost of goods sold for the years ended December 31, 2020 and 2019 included inventory write-downs of $70,026 thousand and reversal of inventory write-downs of $73,768 thousand, respectively.

The design of the planned development of a commercial district of Yulon Town was modified in October 2019. The new design only consisted of malls. In addition, the declaration of the

Annual Report 2020 127

Financial Information

commencement of the residential district was temporarily stopped, and will be re-designed depending on the market situation. Therefore, the Company expected a portion of the asset to have no economic benefits and recognized impairment loss on the residential district (included in inventory) $929,853 thousand in 2019.

The building permit of the original commercial district was modified. Therefore, the Company reclassified part of the land and construction to investment property in 2020. Please refer to Note 16 for further information.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries
Investments in associates		 December 31 December 31
2020
$ 23,437,369
20,023,736

$ 43,461,105
 2019
$ 12,392,783

19,724,901
$ 32,117,684

For the details of investments in subsidiaries, associates and joint ventures, please refer to Table 9 (information on investee), Table 10 (trading in derivative instruments), Exhibit 3 (statement of changes in investments accounted for using equity method) and financial statements of 2020.

a. Investments in subsidiaries

The Company invested in Yulon Overseas Investment Co., Ltd. (YOIC), then YOIC invested in Yulon Philippine Investment Co., Ltd., which invested in Univation Motor Philippines, Inc. (UMPI) (originally named NMPI) and Sta. Cruz Island Company (SCIC).

Under the approval of Taiwan’s Investment Commission under the Ministry of Economic Affairs, the Company and one of its subsidiaries, Taiwan Acceptance Corporation YFC, directly invested RMB255,000 thousand (or US$42,500 thousand) and $245,000 thousand (or US$40,833 thousand), respectively, on June 29, 2015, in Yulon Motor Finance (China) Co., Ltd. (“Yulon Motor Finance”) in China. The Company and TAC held 51% and 49%, respectively, of Yulon Motor Finance’s shares, and because of YFC’s substantial control, Yulon Motor Finance was treated as YFC’s subsidiary. On February 19, 2016, Yulon Motor Finance obtained a business license in China; under this license, Yulon Motor Finance may offer car loans to customers, loans to car dealers for their car purchases, loans to other companies for facilities and car financial leasing business, etc.

On August 28 and 23, 2017, the Investment Commission approved and registered the Company and the Company’s subsidiary, TAC, to directly invest RMB255,000 thousand (equivalent to US$42,500 thousand) and RMB245,000 thousand (equivalent to US$40,833 thousand), respectively, in Yulon Motor Finance (China) Co., Ltd. in China.

Tai-Yuen Textiles Co., Ltd. and the Company are entities under common control. On December 31, 2019, Tai-Yuen Textiles Co., Ltd. increased the capital of Haitec Co., Ltd. Tai-Yuen Textiles Co., Ltd. and the Company held common control over Haitec Co., Ltd. The Company, Haitec Co., Ltd., and Hon Hai Precision Ind. Co., Ltd. had signed a joint venture agreement. In the joint venture agreement, the Company obtained the privilege of carrying out with Haitec Co., Ltd. related activities. According to IFRS 10, with the privilege of carrying out related activities, the Company obtained control and ability to direct the relevant activities

128 YULON MOTOR

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of Haitec Co., Ltd. since December 31, 2019.

The Company invested in Haitec Co., Ltd. by cash and assets on August 17, 2020. Refer to Note 14 for property, plant and equipment and Note 16 for investment properties.

b. Investments in associates

In view of the high economic growth in mainland China, the Company indirectly invested in a horizontal car service and customer service businesses through YOIC. The Company also invested in Hongzhou Xiaoshan Luxgen Automobile Parts Co., Ltd. (“Luxgen Automobile Parts”) in November 2008 to make use of business opportunities in the Chinese market for car parts and to have a business partner in the Chinese motor market. Luxgen Automobile Parts is primarily responsible for researching, developing, assembling, producing, and selling automobile parts, and it is 100% owned by Yulon China (Hong Kong) Investment Co., Ltd. For the Company to have a self-owned brand in China, Dong Feng Yulon Motors Co., Ltd. (“Dong Feng Yulon Motors”), a joint venture of the Company (50%) and Dong Feng Motors Co., Ltd. (50%) was established in Xiaoshan, Hongzhou. Yulon China (Hong Kong) Investment Co., Ltd. acquired a 50% stake in Dong Feng Yulon Motors by paying cash of $419,218 thousand and transferring all its shares in Luxgen Automobile Parts valued at $2,033,069 thousand.

The investments in China Motor Company, China Engine Company and Tokio Marine Newa Insurance Co., Ltd. were accounted for by the equity method despite the individual investments being less than 20% because the Company exercised significant influence over the investees’ operating and financial policy decisions.

The Company and China Motor Company and Tai-Yuen Textile Company had cross-shareholdings was accounted by equity method, and their recognition of investment income was accounted by the treasury stock method. In May 2019, in order to eliminate cross-shareholdings, focus on the automotive industry, and reduce the management scale, YuenWen Investment Company, which holds the shares of Taiyuan Textile and Taiwin Company, was merged with Xiang Wei Company. The combined consideration was 11,555,039 thousand. The Company recognized disposal of the investment accounted for using the equity method of 3,150,981 thousand, please refer to Note 24. Other gains and losses.

Equity in the earnings of China Motor Company on their holdings of the Company’s shares was accounted for by the treasury stock method since May 2018.

14. PROPERTY, PLANT AND EQUIPMENT


Cost
Balance at January
1, 2019

Additions
Disposals
Reclassification

Balance at
December 31,
2019
 Freehold Land
$ 4,352,245

-
-

(68,020)

$ 4,284,225
 Buildings
$ 2,723,174
21,924
(360 )

131,246
$ 2,875,984		 Equipment
$ 3,215,458
94,538
(222,121)
491,623
$ 3,579,498		 Vehicles
$ 75,881
286
(4,430)
-
$ 71,737		 Miscellaneous
Equipment
Property under
Construction
Total
$ 955,657
$ 271,252 $ 11,593,667
58,387
24,784
199,919
(38,784)
-
(265,695)
40,426

(194,353)

400,922
$ 1,015,686
$ 101,683
$ 11,928,813
(Continued)

Annual Report 2020 129

Financial Information


Accumulated
depreciation
and impairment
Balance at January
1, 2019

Disposals
Impairments
Reclassification
Depreciation
expense

Balance at
December 31,
2019

Carrying amount at
December 31,
2019

Cost
Balance at January
1, 2020

Additions
Disposals
Retirements
Asset-based
investment
Reclassification

Balance at
December 31,
2020

Accumulated
depreciation
and impairment
Balance at January
1, 2020

Disposals
Asset-based
investment
Reclassification
Depreciation
expense

Balance at
December 31,
2020

Carrying amount at
January 1, 2020
Carrying amount at
December 31,
2020
 Freehold Land
$ -

-
-
-

-

$ -

$ 4,284,225

$ 4,284,225

-
(49,203)
-
(39,723)

420,195


$ 4,615,494

$ -

-
-
-

-

$ -

$ 4,284,225

$ 4,615,494
 Buildings
$ (1,778,042 )
360
-
77,875

(134,626)
$ (1,834,433)
$ 1,041,551
$ 2,875,984
62,133
-
-
(73,121 )

711,932
$ 3,576,928
$ (1,834,433 )
-
18,573
(246,448 )

(96,191)
$ (2,158,499)
$ 1,041,551
$ 1,418,429		 Equipment
$ (2,481,959)
220,721
-
-
(171,637)
$ (2,432,875)
$ 1,146,623
$ 3,579,498
61,589
-
(63,771)
-
112,675
$ 3,689,991
$ (2,432,875)
62,317
-
-
(199,932)
$ (2,570,490)
$ 1,146,623
$ 1,119,501		 Vehicles
$ (72,996)
4,430
-
-
(1,056)
$ (69,622)
$ 2,115
$ 71,737
1,998
-
(3,212)
-
-
$ 70,523
$ (69,622)
3,212
-
-
(1,030)
$ (67,440)
$ 2,115
$ 3,083		 Miscellaneous
Equipment
Property under
Construction
Total
$ (799,012)
$ - $ (5,132,009)
38,243
-
263,754
-
(52,581 )
(52,581)
-
-
77,875
(67,087)

-

(374,406)
$ (827,856)
$ (52,581)
$ (5,217,367)
$ 187,830
$ 49,102
$ 6,711,446
$ 1,015,686
$ 101,683 $ 11,928,813
41,601
10,745
178,066
(598)
-
(49,801)
(48,851)
-
(115,834)
-
-
(112,844)
46,785

-

1,291,587

$ 1,054,623
$ 112,428
$ 13,119,987
$ (827,856)
$ (52,581 ) $ (5,217,367)
48,784
-
114,313
-
-
18,573
-
-
(246,448)
(67,840)

-

(364,993)
$ (846,912)
$ (52,581)
$ (5,695,922)
$ 187,830
$ 49,102
$ 6,711,446
$ 207,711
$ 59,847
$ 7,424,065
(Concluded)

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

Buildings 30-60 years
Equipment 10 years
Vehicles 4-5 years
Miscellaneous equipment 2-5 years

The Company invested in Haitec Co., Ltd. by cash and assets on August 17, 2020. The investment included land and building. On December 31, 2020, the carrying value of the land was $39,723 thousand and the carrying value of the building was $54,548 thousand; both are classified as

130 YULON MOTOR

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Annual Report 2020

property, plant and equipment.

15. LEASE ARRANGEMENTS

  • a. Right-of-use assets
Carrying amount
Vehicles
Land
Depreciation charge for right-of-use assets
Vehicles
Land		 December 31
2020
2019
$ 2,553
$ 3,365
6,908

-
$ 9,461
$ 3,365
For the Year Ended December 31
2020
$ 2,276

987

$ 3,263
 2019
$ 2,985

-
$ 2,985
  • b. Lease liabilities
Carrying amount
Current
Non-current
Range of discount rate for lease liabilities was as follows:
Vehicles
Land		 December 31
2020
$ 2,387

$ 7,082

December		 2019
$ 31
$ 3,298
31
2020
0.95%
0.95%		 2019
0.95%
-
  • c. Material leasing activities and terms - as lessee

The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

Annual Report 2020 131

Financial Information

16. INVESTMENT PROPERTIES

Freehold Land
Cost
Balance at January 1, 2019
$ 6,033,761
Additions
-
Reclassification
(1,154,369)
Balance at December 31, 2019
$ 4,879,392
Accumulated depreciation and
impairment
Balance at January 1, 2019
$ -
Reclassification
-
Impairment loss
-
Depreciation expense
-
Balance at December 31, 2019
$ -
Carrying amount at December 31, 2019
$ 4,879,392
Cost
Balance at January 1, 2020
$ 4,879,392
Additions
-
Disposals
(181,877)
Asset-based investment
(194,493)
Reclassification
833,597
Balance at December 31, 2020
$ 5,336,619
Accumulated depreciation and
impairment
Balance at January 1, 2020
$ -
Disposals
-
Asset-based investment
-
Reclassification
-
Depreciation expense
-
Balance at December 31, 2020
$ -
Carrying amount at December 31, 2020
$ 5,336,619		 Buildings
$ 5,007,956
307,270
83,785

$ 5,399,011

$ (1,201,623)
(77,875)
(533,488)
(5,181)


$ (1,818,167)


$ 3,580,844

$ 5,399,011
1,714,726
(26,856)
(358,017)
1,126,939

$ 7,855,803

$ (1,818,167)
14,453
90,939
246,448
(39,350)


$ (1,505,677)


$ 6,350,126
 Total
$ 11,041,717

307,270

(1,070,584)
$ 10,278,403
$ (1,201,623)

(77,875)

(533,488)

(5,181)
$ (1,818,167)
$ 8,460,236
$ 10,278,403

1,714,726

(208,733)

(552,510)

1,960,536
$ 13,192,422
$ (1,818,167)

14,453

90,939

246,448

(39,350)
$ (1,505,677)
$ 11,686,745

The investment properties are depreciated on a straight-line basis over the estimated useful life of these assets from 30 to 60 years.

The design of the commercial district of Yulon Town was modified in October 2019. The new design only consisted of malls. In addition, the declaration of the commencement of the district was temporarily stopped, and will be re-designed depending on the market situation. Therefore,

132 YULON MOTOR

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Annual Report 2020

the Company expected a portion of the asset to have no economic benefits and recognized impairment loss of $533,488 thousand in 2019.

The Company invested in Haitec Co., Ltd. by cash and assets on August 17, 2020. The investment included land and building. On December 31, 2020, the carrying amount of the land was $194,493 thousand and the carrying amount of the building was $267,078 thousand. Both are classified as investment properties.

As of December 31, 2020 and 2019, the fair values of the Company’s investment property were $26,249,341 thousand and $23,158,274 thousand, respectively. Both fair values were appraised by an independent qualified professional appraiser.

17. INTANGIBLE ASSETS

In order to comply with the global regulation of emission and fuel consumption, and also develop the advanced engine technology and new energy power train system for Luxgen brand, the Company acquired the intangible assets, PHEV (EF Engine and Plug in Hybrid Power Module), from Hua-chuang Automobile Information Technical Center Co., Ltd. The monetary amount of the transaction is NT$1,210 million in 2017.

The Company terminated the development of intangible assets stated above and recognized impairment loss of NT$1,210,000 thousand in 2020.

18. BORROWINGS

a. Short-term borrowings

December 31,
2020
Line of credit borrowings $ 1,500,000
Interest rate 0.90%-0.95%
  • b. Short-term bills payable
December 31,
2020
Commercial paper $ 2,000,000
Less: Unamortized discount on bills payable
2,211
$ 1,997,789
Interest rate 0.46%-0.90%

Annual Report 2020 133

Financial Information

19. BONDS PAYABLE

Unsecured domestic bonds December 31 December 31
2020
$ 15,300,000
 2019
$ 15,300,000

The Company issued unsecured corporate bonds on December 12, 2017, with each issuance amounting to NT$7 billion and NT$3 billion, respectively, and the bonds have five-year maturities and seven-year maturities and simple interest at rates of 1.04% and 1.07%, respectively, payable annually. The principal amounts of both bonds would be repaid on the maturity date. The Company also issued unsecured corporate bonds on December 25, 2018, with each issuance amounting to NT$3.6 billion and NT$1.7 billion, respectively, and the bonds have five-year maturities and ten-year maturities and simple interest at rates of 1.18% and 1.80%, respectively, payable annually. The principal amounts of both bonds would be repaid on the maturity date

20. OTHER LIABILITIES

Current
Other payables
Payables for annual leave
Payables for employees bonus
Payables for other taxes
Payables for Vendor Expenses
Payables for other Accrued Expenses
Payables for dividends
Others		 December 31 December 31
2020
$ 4,793

377,793
1,983,281
99,318
60,635
210,732
675,796

$ 3,412,348
 2019
$ 5,936
387,899
348,771
63,955
105,633
211,580

572,572
$ 1,696,346

21. RETIREMENT BENEFIT PLANS

  • a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plan

The defined benefit plan adopted by the Company is in accordance with the Labor Standards Law. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contributes amounts equal to 7% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the

134 YULON MOTOR

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Annual Report 2020

pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Company has no right to influence the pension fund investment policy and strategy.

The amounts included in the balance sheets on the Company’s defined benefit plans were as follows:

Present value of defined benefit obligation
Fair value of plan assets
Net defined benefit liability		 December 31 December 31
2020
$ 1,271,587

(892,970)

$ 378,617
 2019
$ 1,467,624
(882,182)
$ 585,442

Movements in net defined benefit liability (asset) were as follows:

Present Value
of the Defined Net Defined
Benefit Fair Value of Benefit
Obligation the Plan Assets
Liability (Asset)
Balance at January 1, 2019 $ 1,542,558 $ (983,259)
 $ 559,299
Service cost
Current service cost 23,089 - 23,089
Net interest expense (income) 17,137 (11,057)
 6,080
Recognized in profit or loss 40,226 (11,057)
 29,169
Remeasurement
Return on plan assets (excluding
amounts included in net
interest) - (35,910) (35,910)
Actuarial loss - changes in
demographic assumptions 3,389 - 3,389
Actuarial loss - changes in
financial assumptions 58,515 - 58,515
Actuarial loss - experience
adjustments 65,357 65,357
Recognized in other comprehensive
income 127,261 (35,910)
 91,351
Contributions from the employer - (28,583) (28,583)
Benefits paid (242,421) 176,627
 (65,794)
Balance at December 31, 2019 $ 1,467,624 $ (882,182)
 $ 585,442
Balance at January 1, 2020 $ 1,467,624 $ (882,182)
 $ 585,442
Service cost
Current service cost 23,483 - 23,483
Net interest expense (income) 11,006 (7,094)
 3,912
Recognized in profit or loss 34,489 (7,094)
 27,395
(Continued)

Annual Report 2020 135

Financial Information

Present Value
of the Defined Net Defined
Benefit Fair Value of Benefit
Obligation the Plan Assets
Liability (Asset)
Remeasurement
Return on plan assets (excluding
amounts included in net
interest) - (30,387) (30,387)
Actuarial loss - changes in
demographic assumptions 347 - 347
Actuarial loss - changes in
financial assumptions 33,914 - 33,914
Actuarial loss - experience
adjustments (10,082) -
 (10,082)
Recognized in other comprehensive
income 24,179 (30,387)
 (6,208)
Contributions from the employer - (125,118) (125,118)
Benefits paid (254,705) 151,811
 (102,894)
Balance at December 31, 2020 $ 1,271,587 $ (892,970)
 $ 378,617
(Continued)

Through the defined benefit plan under the Labor Standards Law, the Company is exposed to the following risks:

  • 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

  • 2) Interest risk: A decrease in the government/corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

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

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used in the actuarial valuations were as follows:

Discount rate(s)
Expected rate(s) of salary increase		 December 31
2020
2019
0.50%
0.75%
1.75%
1.75%

136 YULON MOTOR

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Annual Report 2020

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

Discount rate(s)
0.25% increase
0.25% decrease
Expected rate(s) of salary increase
0.25% increase
0.25% decrease		 December 31
2020
2019
$ (33,914)
$ (39,388)
35,235
40,925
34,163
39,809
(33,057)
(38,515)

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

Expected contributions to the plan for the next year
Average duration of the defined benefit obligation		 December 31 December 31
2020
$ 52,715

11.0 years		 2019
$ 127,681
11.0 years

22. EQUITY

a. Share capital

Common shares

Number of authorized shares (in thousands)
Amount of authorized shares
Number of issued and fully paid shares (in thousands)
Amount of issued and fully paid shares
Capital surplus		 December 31 December 31
2020
2,000,000

$ 20,000,000

1,000,000

$ 10,000,000
4,508,131

$ 14,508,131
 2019

2,000,000
$ 20,000,000

1,572,920
$ 15,729,199

4,508,131
$ 20,237,330

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

Annual Report 2020 137

Financial Information

b. Capital surplus

May be used to offset a deficit, distributed as cash
dividends, or transferred to share capital (Note)
Recognized from issuance of common shares
Recognized from treasury share transactions
Capital surplus that can be used only to offset deficit
Arising from share of changes in capital surplus of
associates or joint ventures		 December 31 December 31
2020
$ 4,508,131

2,018,204
37,553

$ 6,563,888
 2019
$ 4,508,131
2,018,204

40,160
$ 6,566,495

Note: Such capital surplus maybe used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

c. Retained earnings and dividend policy

The Company’s Articles of Incorporation provide that appropriation for legal reserve should be made at 10% of annual net income, less any accumulated deficit. From the remainder of the net income, appropriation for special reserve will be made based on relevant laws and regulations, and then any remaining profit together with any undistributed retained earnings may be appropriated and distributed.

The Company’s operating environment is in a mature industry. The Company shall consider profitability, future operating plans and funding needs, and industry condition, and long-term shareholders’ rights and a long-term financial planning in the distribution of earnings. Dividends may be paid in cash or stock; total dividends should not be lower than 10% of distributable net profit, and cash dividends should not be lower than 20% of total dividends. The distribution plan will be proposed by the Company’s board of directors and approved in the shareholders’ meeting.

For information on accrued compensation of employees and remuneration to directors and supervisors and the actual appropriations, please refer to Note 23 - d. employee benefits expense.

Under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”, the Company should appropriate to or reverse from special reserve.

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

138 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The appropriations of earnings for 2019 and 2018 approved in the shareholders’ meetings on June 18, 2020 and June 21, 2019, respectively, were as follows:

Legal reserve
Special reserve
Cash dividend		 Appropriation
of Earnings
2018
$ 203,703
1,000,000

1,053,856		 Dividend Per
Share (NT$)
2018

$0.67

At the shareholders’ meeting on June 18, 2020, the Company approved the reduction of capital to offset deficit and resolved not to distribute dividends

At the board of directors’ meeting on March 25, 2021, the Company proposed appropriation and distribution of earnings of 2020 as follows:

Appropriation Dividends Per
of Earnings Share (NT$)
Reversal of special reserve $ 2,000,000
Cash dividends 1,000,000 $1

The appropriations of earnings for 2020 are subject to the resolution in the shareholders’ meeting to be held on June 17, 2021.

  • d. Special reserve
Balance at January 1
Appropriation of earnings
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 39,373,565
(15,145,000)

$ 24,228,565
 2019
$ 38,373,565

1,000,000
$ 39,373,565

On the first-time adoption of IFRSs, the Company appropriated to special reserve the amounts that were the same as the unrealized revaluation increment and cumulative translation differences transferred to retained earnings, which were $8,255,468 thousand and $655,829 thousand, respectively.

If the special reserve appropriated on the first-time adoption of IFRSs relates to property, plant and equipment and investment property other than land, the special reserve may be reversed continuously over the period of use of the asset. The special reserve relating to land may be reversed on the disposal or reclassification of the related asset. A proportionate share of the special reserve relating to exchange differences arising from the translation of the financial statements of foreign operations (including the subsidiaries of the Company) will be reversed on the Company’s disposal of foreign operations; on the Company’s loss of significant influence, however, the entire special reserve will be reversed.

Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net

Annual Report 2020 139

Financial Information

debit balance reverses and thereafter distributed.

  • e. Other equity items

  • 1) Exchange differences on translating foreign operations

Balance at January 1
Share of exchange difference of subsidiaries,
associates and joint ventures accounted for using
the equity method
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ (1,255,680)
136,866

$ (1,118,814)
 2019
$ (919,398)

(336,282)
$ (1,255,680)
  • 2) Unrealized gain/(loss) on financial assets at FVTOCI
Balance at January 1
Unrealized gain/(loss) - equity instruments
Share from associates/joint ventures accounted for
using the equity method
Disposal of associates accounted for using the
equity method
Associates disposed the investments in equity
instruments designed as at fair value through
other comprehensive income
Balance at December 31
Gain (loss) on hedging instruments
Balance at January 1
Share from associates/joint ventures accounted for
using the equity method
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
2019
$ 1,397,517
$ 1,466,521
6,552
285,487
76,208
(91)
(23,034)
(354,400)
65,354

-
$ 1,522,597
$ 1,397,517
For the Year Ended December 31
2020
$ (4)

28

$ 24
 2019
$ 252

(256)
$ (4)
  • 3) Gain (loss) on hedging instruments

140 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

f. Treasury shares
Reasons for Redemption
Number of
Shares,
Beginning of
Year
Addition
During the
Year
Reduction
During the
Year
Number of
Shares, End
of Year
For the year ended
December 31, 2020
Long-term investment of
subsidiary transferred to
treasury stock
7,527
-
-

7,527
For the year ended
December 31, 2019
Long-term investment of
subsidiary transferred to
treasury stock
11,839
-
-

11,839

The Company’s shares held by subsidiaries as of December 31, 2020 and 2019 were as follows:

Number of Carrying
Shares Held Amount Market Value
Name of Subsidiaries (In Thousands) (In Thousands)
(In Thousands)
December 31, 2020
Yu Ching Business Co., Ltd. 7,526 $ 352,990
 $ 352,990
Yu Pong Business Co., Ltd. 1 4
4
$ 352,994
 $ 352,994
December 31, 2019
Yu Ching Business Co., Ltd. 11,838 $ 231,442
 $ 231,442
Yu Pong Business Co., Ltd. 1 2
2
$ 231,444
 $ 231,444

The subsidiaries holding treasury shares retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

  • g. Common control of predecessor rights

Tai-Yuen Textiles Co., Ltd. and the Company are entities under common control. On December 31, 2019, Tai-Yuen Textiles Co., Ltd. increased the capital of Haitec Co., Ltd. Tai-Yuen Textiles Co., Ltd. and the Company held common control over Haitec Co., Ltd. The Company, Haitec Co., Ltd., and Hon Hai Precision Ind. Co., Ltd. had signed a joint venture agreement. In the joint venture agreement, the Company obtained the privilege of carrying out with Haitec Co., Ltd. related activities. According to IFRS 10, with the privilege of carrying out related activities, the Company obtained control and ability to direct the relevant activities

Annual Report 2020 141

Financial Information

of Haitec Co., Ltd. since December 31, 2019. In compliance with “IFRS Q&A released in 2018” and “Interpretation No. 301” issued by the Accounting Research and Development Foundation released in 2012, the consolidated balance sheet, the consolidated statement of changes in equity and the consolidated statement of cash flows as of and for the year ended December 31, 2018 have been restated. The related equity adjustment is recognized in common control of predecessor rights.

23. REVENUE

Contract Information

  • a. Revenue from the sale of goods

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

Revenue from the sale of goods comes from sales of vehicles and parts. The Company recognized revenue when goods are delivered and legal ownership is transferred.

  • b. Rental income

Rental income from an operating lease is recognized on a straight-line basis over the term of the lease.

  • c. Revenue from the rendering of services

Revenue from a contract to provide services is recognized with reference to the stage of completion of the contract.

24. NET PROFIT

Net profit contained the following components:

  • a. Other operating revenue
Revenue from sale of scrap
Revenue from providing guarantees
Revenue from remuneration of directors and
supervisors
Others		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 15,319

15,669
9,510
19,751

$ 60,249
 2019
$ 21,036
19,844
18,619

5,261
$ 64,760

142 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

b. Other gains and losses

Gain/(loss) on disposal of property, plant and
equipment/investment properties/intangible assets
Gains/(losses) on disposal of related parties
Net foreign exchange gains/(losses)
Fair value changes of financial assets mandatorily
classified as at FVTPL
Impairment
Others		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 578,519

21,396
(2,756)
41,117
(1,210,000)
10,926

$ (560,798)
 2019
$ 12,577
3,150,981

3,914
35,734
(2,480,823)

(227,882)
$ 494,501

c. Depreciation and amortization

An analysis of depreciation by function
Operating costs
Operating expenses
An analysis of amortization by function
Operating costs
Operating expenses		 For the Year Ended For the Year Ended December 31
2020
$ 297,398

110,208

$ 407,606

$ 15,217

13,117

$ 28,334
 2019
$ 274,406

108,166
$ 382,572
$ 19,673

17,440
$ 37,113

d. Employee benefits expense

Short-term benefits
Post-employment benefits
Defined contribution plans
Defined benefit plans
Total employee benefits expense
An analysis of employee benefits expense by function
Operating costs
Operating expenses		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 1,235,166

22,726
27,395

$ 1,285,287

$ 907,527

377,760

$ 1,285,287
 2019
$ 1,237,815
20,244

29,168
$ 1,287,227
$ 918,954

368,273
$ 1,287,227

Annual Report 2020 143

Financial Information

Salary expense

Labor insurance
Pension
Remuneration of
directors
Other employment
benefits

Total employment
benefits
 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020 Total
$ 1,065,272
90,007
50,087
-
79,921
$ 1,285,287		 2019


Operating
Cost
$ 762,947
70,421
38,896
-

35,263

$ 907,527
 Operating
Expenses
$ 302,325

19,586

11,191

-

44,658
$ 377,760		 Operating
Cost
$ 791,984
74,601
39,238
-
13,131
$ 918,954		 Operating
Expenses
$ 306,819
18,329
10,151
-
32,974

$ 368,273
 Total
$ 1,098,803

92,930

49,389

-

46,105
$ 1,287,227

As of December 31, 2020 and 2019, the numbers of the Company’s employees were 1,241 and 1,263, respectively. The Company has 5 directors who are not concurrently employed, and 1 director who is employed. The number of employees aligns with employee benefits expense.

As of December 31, 2020 and 2019, the employee benefits expense was $1,040 thousand and $1,024 thousand, respectively, the average salary expense was $862 thousand and $874 thousand, respectively, and the average employee salary adjustment was a reduction of 1.37%.

The Company has set up an audit committee in compliance with the Securities and Exchange Act of the ROC. The audit committee is composed of all independent directors, and the committee replaces supervisors.

The remuneration of the Company’s board directors and managers is evaluated and reviewed periodically by the compensation committee. The Company participates in salary investigation every year and reviews pay level periodically in order to provide employees with market competitive salaries.

  • Compensation of employees and remuneration of directors and supervisors for 2020 and 2019

In compliance with the amended Articles of Incorporation of the Company, the Company accrued compensation of employees and remuneration of directors and supervisors at the rates no less than 0.1% and no higher than 0.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. The compensation of employees and remuneration of directors and supervisors for the years ended December 31, 2020 and 2019 which have been approved by the Company’s board of directors on March 25, 2021 and March 30, 2020, respectively, were as follows:

Accrual rate

Compensation of employees
Remuneration of directors and supervisors		 For the Year Ended December 31
2020
2019
0.1%
0.1%
0.5%
0.5%

144 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Amount

Compensation of
employees

Remuneration of
directors and
supervisors		 For the Year Ended December 31 For the Year Ended December 31
2020 2019
Cash
Share
$ -
$ -
-
-
Cash
Share
$ -
$ -
-
-

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

There was no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the financial statements for the year ended December 31, 2019 and 2018.

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

e. Impairment losses on non-financial assets (reversal of impairment loss)

Inventories (included in operating cost, Note 12)
Inventories for construction business (included in other
gains and losses, Note 12)
Other current asset (included in other gains and losses,
Note 30)
Property, plant and equipment (included in other
operating cost, Note 14)
Investment properties (included in other gains and
losses,
Note 16)
Intangible assets (included in other gains and losses,
Note 17)		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ (70,026)
-
-
-
-
(1,210,000)

$ (1,280,026)
 2019
$ 73,768
(929,853)
(964,901)
(52,581)
(533,488)

-
$ 2,407,055

25. INCOME TAXES

  • a. Income tax recognized in profit or loss

Annual Report 2020 145

Financial Information

The major components of tax expense were as follows:

Current tax
In respect of the current year
Income tax on unappropriated earnings
Adjustments for prior year
Deferred tax
In respect of the current year
Income tax expense recognized in profit or loss		 For the Year Ended For the Year Ended December 31
2020
$ 163,418

-
(143,411)

20,007

(120,822)

$ (100,815)
 2019
$ -
48,975

(24,278)

24,697

(31,587)
$ (6,890)

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

Profit before tax from continuing operations
Income tax expense calculated at the statutory rate
Adjustment items in determining taxable profit
Nondeductible expenses in determining taxable
income
Tax-exempt income
Realized loss on investment
Income tax on unappropriated earnings
Unrecognized deductible temporary differences
Effect of tax rate changes
Adjustments for prior years’ tax
Income tax expense recognized in profit or loss		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 2,638,395

$ 527,679
-
1,534
(248,343)
(2,244,612)
-
1,842,920
163,418
(143,411)

$ (100,815)
 2019
$ (25,037,010)
$ (5,007,402)

112,942

-

(649,347)

(885,038)

48,975

6,397,258

-

(24,278)
$ (6,890)
  • b. Deferred tax assets and liabilities

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

For the year ended December 31, 2020

Balance at the Balance at the
Beginning of Recognized in Balance at the
the Year Profit or Loss
End		 of the Year
Deferred tax assets
Temporary differences
Share of income of subsidiaries,
associates and joint ventures $ 172,640 $ - $ 172,640
Property, plant and equipment 4,981 22,717 27,698
(Continued)

146 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Balance at the Balance at the
Beginning of Recognized in Balance at the
the Year Profit or Loss
End		 of the Year
Defined benefit obligation 253,562 (30,658) 222,904
Others 162,185 25,341 187,526
$ 593,368 $ 17,400 $ 610,768
Deferred tax liabilities
Temporary differences
Land value increment tax $ 2,397,673 $ (112,101) $ 2,285,572
Property, plant and equipment 181,252 8,949 190,201
Others 1,390 (268) 1,119
$ 2,580,315 $ (103,422) $ 2,476,892
(Continued)
For the year ended December 31, 2019
Balance at the
Beginning of Recognized in Balance at the
the Year Profit or Loss
End		 of the Year
Deferred tax assets
Temporary differences
Share of income of subsidiaries,
associates and joint ventures $ 172,640 $ - $ 172,640
Property, plant and equipment 5,305 (324) 4,981
Defined benefit obligation 267,392 (13,830) 253,562
Others 106,441 55,744 162,185
$ 551,778 $ 41,590 $ 593,368
Deferred tax liabilities
Temporary differences
Land value increment tax $ 2,397,673 $ - $ 2,397,673
Property, plant and equipment 170,099 11,154 181,252
Others 2,541 (1,149) 1,390
$ 2,570,313 $ 10,005 $ 2,580,315

c. Income tax assessed

The tax returns through 2018 have been assessed by the tax authorities.

Annual Report 2020 147

Financial Information

26. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings (loss) per share
Diluted earnings (loss) per share		 For the Year Ended December 31 the Year Ended December 31
2020
$ 2.80

$ 2.80
 2019
$ (26.13)
$ (26.13)

In the calculation of earnings (loss) per share, the number of outstanding shares has been adjusted retrospectively for the impact of the reduction of capital to offset deficit. The base date of the reduction of capital is August 11, 2020. As a result of the retrospective adjustment, the loss per share for 2019 before and after adjustment was as follows:

Unit: NT$ Per Share
Before After
Retrospective Retrospective
Adjustment Adjustment
Basic earnings (loss) per share
$ (16.61)		 $ (26.13)
Diluted earnings (loss) per share $ (16.61) $ (26.13)

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

Net Profit for the Year

Net profit attributable to owners of the Company
Net profit attributable to common control of predecessor
rights
Earnings used in the computation of basic earnings per
share
Earnings used in the computation of diluted earnings per
share
Shares		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 2,739,210
-

$ 2,739,210

$ 2,739,210
 2019
$ (24,465,408)

(564,712)
$ (25,030,120)
$ (25,030,120)
Weighted average number of common shares in
computation of basic earnings per share
Weighted average number of common shares used in the
computation of diluted earnings per share		 For the Year Ended For the Year Ended December 31
2020
977,704

977,704
 2019
957,815

957,815

148 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

If the Company offered to settle bonuses paid to employees in cash or shares, the Company assumed the entire amount of the compensation or bonus would be settled in shares and the resulting potentially dilutive shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

27. DISPOSAL OF SUBSIDIARY - LOSS OF CONTROL

Dongfeng Yulon Motor Sales Co., Ltd. was ruled by the court as bankrupt in November 2020. The Company has lost control on Dongfeng Yulon Motor Sales Co., Ltd. since then. The Company derecognized related assets, liabilities, and non-controlling interests of Dongfeng Yulon Motor Sales Co., Ltd.

28. CAPITAL MANAGEMENT

The Company manages its capital to ensure the entities in the Company will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Company (comprising issued capital, reserves, retained earnings, and other equity).

The Company is not subject to any externally imposed capital requirements.

The Company’s management reviews the capital structure whenever necessary. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. Based on the management’s recommendations, the Company expects to balance its capital structure by paying dividends, borrowing new loans or repaying original loans.

29. FINANCIAL INSTRUMENTS

  • a. Fair value of financial instruments that are measured at fair value on a recurring basis

  • 1) Fair value hierarchy

Fair value measurements recognized in the parent company only balance sheets.

Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

  • a) Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

Annual Report 2020 149

Financial Information

  • c) Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

December 31, 2020

Financial assets at FVTPL
Mutual funds

Other



Financial assets at FVTOCI
Investments in equity
instruments at
FVTOCI
Securities listed in
ROC
Equity securities

Unlisted shares


December 31, 2019
Financial assets at FVTPL
Mutual funds

Other



Financial assets at FVTOCI
Investments in equity
instruments at
FVTOCI
Securities listed in
ROC
Equity securities

Unlisted shares


 Level 1
$ 1,785,079

-
$ 1,785,079
$ 1,905,428

-
$ 1,905,428
Level 1
$ 1,129,032

-
$ 1,129,032
$ 2,058,871

-
$ 2,058,871		 Level 2
$ -
-
$ -
$ -
-
$ -
Level 2
$ -
-
$ -
$ -
-
$ -		 Level 3
$ -
271,820


$ 271,820


$ -
366,234

$ 366,234

Level 3
$ -
613,524


$ 613,524


$ -
359,578


$ 359,578
 Total
$ 1,785,079

271,820
$ 2,056,899
$ 1,905,428

366,234
$ 2,271,662
Total
$ 1,129,032

613,524
$ 1,742,556

$ 2,058,871

359,578
$ 2,418,449

There were no transfers between Levels 1 and 2 in the current and prior periods.

150 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • 2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2020

Financial Assets
Financial Assets
at FVTPL
Balance at January 1, 2020
$ 613,524
Recognized in profit or loss
(included in other gains and
losses)
5,411
Recognized in other
comprehensive income
(included in unrealized gain/
(loss) on financial assets at
FVTOCI)
-
Purchases
1,449,800
Sales/settlements
(1,796,915)
Balance at December 31, 2020
$ 271,820
For the year ended December 31, 2019
Financial Assets
Financial Assets
at FVTPL
Balance at January 1, 2019
$ -
Recognized in profit or loss
(included in other gains and
losses)
4,977
Recognized in other
comprehensive income
(included in unrealized gain/
(loss) on financial assets at
FVTOCI)
-
Purchases
4,013,500
Sales/settlements
(3,404,953)
Balance at December 31, 2019
$ 613,524		 Financial Assets
at FVTOCI
Equity
Instruments
$ 359,578

-
7,141
-
(485)

$ 366,234

Financial Assets
at FVTOCI
Equity
Instruments
$ 498,711

-
256,867
-
(396,000)

$ 359,578
 Total
$ 973,102
5,411
7,141
1,449,800
(1,797,400)
$ 638,054
Total
$ 498,711
4,977
256,867
4,013,500
(3,800,953)
$ 973,102

The fair values of non-public stocks and funds are mainly determined by using the asset approach, the income approach, and the market approach.

To determine the fair value of the funds, the Company utilized the asset approach and took into account the net assets’ fair value measured by independent appraisers. On December 31, 2019, the Company used unobservable inputs derived from discount for lack of marketability and lack of non-controlling interest.

Annual Report 2020 151

Financial Information

For the remaining few investments, the market approach was used to arrive at their fair value, for which the recent financing activities of investees, the market transaction prices of similar companies and market conditions were considered.

  • b. Categories of financial instruments
Financial assets
Fair value through profit or loss (FVTPL)
Fair value through other comprehensive income
(FVTOCI)
Financial assets at amortized cost (Note 1)
Financial liabilities
Amortized cost (Note 2)		 December 31
2020
2019
$ 2,056,899 $ 1,742,556
2,271,662
15,112,393
3,550,398
2,418,449

25,215,907
21,320,258

  • Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, and notes receivable, trade receivables and other receivables.

  • Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term loans and bills payable, notes payable, trade and other payables, corporate bonds payable, long-term loans and other payables, guarantee deposits received and current portion of long-term borrowings.

  • c. Financial risk management objectives and policies

For the Company to develop a clear direction and system for its analysis of and response to financial risks and the execution of a financial risk management plan, the definition and the purpose of financial risk management should be made clear before the establishment of related critical policies and processes. Through the financial risk management system, the Company oversees the handling of financial risks pertaining to daily operations, including market risk (exchange rate risk, interest rate risk, other price risk), credit risk, and liquidity risk. The Company strives to identify, evaluate and decrease market uncertainty to mitigate the impact of market fluctuations on its financial performance.

  • 1) Financial risk management is defined by the Company as the application of various methods to control and handle current risks by assessing the direct and indirect potential risks affecting the Company’s financial status. By minimizing the “cost of risk,” the Company ensures its operating stability and its status to continue as a going concern.

  • 2) On the key issues involved in financial risk management, the Company has the needed precautions and controls in place. Even with precautions and controls in place, inevitable loss (or events that cause the Company to deviate from its operating goals; in these situations, post-event measures are taken to deter or ease unfavorable consequences for the Company’s continued development. Financial risks are due to external and internal factors. To handle these risks, the Company has established these precautionary measures, which include the following key management concepts, control mechanisms, and management tools.

152 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • a) Precautionary measures

Key management concepts

  • i. Business planning: Among the Company’s goals is to run its business using clearly defined key performance indicators. The future operating guidelines and programs, from short term to long term, are also explicitly stated. In addition, the goals of financial functions and ways to achieve these goals are described in the Company’s business plan.

  • ii. Identification of risk and establishment of risk indicators: This is based on the previous phase of key points of management, to identify potential risk and its monitoring indicators.

Control mechanisms

  • i. Business planning and adjustment: This is achieved by mid-term operating prospectus.

  • ii. Macro-economic and study of laws and regulation: The Company invites external professional and scholars for workshops regarding current economic status and updates on laws and regulations nonscheduled

Management tools

  • i. Research reports on microeconomic and macroeconomic conditions: These reports cover exchange and interest rates and economic growth around the world.

  • ii. Analysis of operations: The Company uses its midterm analysis of operations as a control mechanism.

  • iii. Articles of Incorporation: The Articles clearly state the risk management measures and the standards for establishing key risk indicators.

  • b) Operating controls

Key management concepts

  • i. Risk assessment and monitoring: The Company monitors regularly key risk indicators and related financial processes.

  • ii. Risk reports: The information system automatically sends reports on financial operations and risk indicator-related data periodically or more frequently, as needed to the Company’s management. Internal audit teams conduct audits, based on quarterly and yearly audit plans, of the financial risk management of the Company and its subsidiaries. Internal audit teams also conduct audits of financial risk management indicators and execution results.

Annual Report 2020 153

Financial Information

Control mechanisms

  • i. Internal audit: Each financial subunit within the Company conducts, manages and controls independent internal audits after audit plans are proposed to the management.

  • ii. Financial management system and procedures: The Company establishes financial management system and monitors daily operations and specific risks.

Management tools

  • i. BIS (Business Intelligent System) reports and alerts: The Company uses BIS alerts to transmit data on important operating financial indicators at least monthly.

  • ii. Monthly reports on profits of the Company and its subsidiaries: Operating profit and loss reports are summarized monthly; these reports include analytical summaries and reviews of items not meeting standards set by the management.

  • iii. Internal audit reports: The internal audit team prepares internal audit reports that include the results of financial risk management.

  • iv. Reports on capital financing and endorsements provided: The Company issues monthly a summary report of the prior month’s status of capital financing and endorsements provided.

  • v. ERP (Enterprise Resource Planning), DMS (Document Management System) and SAP system verifications: Operating management systems from external parties assist in verifying and strengthening the Company’s financial risk management.

  • c) Post-loss measures

Key management concepts

  • i. Reasons and strategies for statistical deviations from preset goals: When key financial management indicators show abnormal outcomes, the Company should get an understanding of the internal and external causes of and reasons for the abnormalities to determine a corresponding strategy.

  • ii. Execution of and follow-ups on strategy: The Company follows up the execution of the strategy applied to handle an abnormality. It also tries to restore normal operations.

Control mechanisms

  • i. Analysis and reporting of unattained goals: The Company presents the causes of unattainable financial management goals in periodic reports and management meetings. In addition, improvement plans and schedules are considered in management meetings.

  • ii. Board and financial meetings: The Company timely calls for board meetings and review of financial management meetings to ensure that the financial risk management problems are resolved promptly, if not immediately.

154 YULON MOTOR

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Annual Report 2020

Management tools

  • i. Reports on unfavorable factors and impacts: The Company lists the impact of unattained risk management goals for each risk indicator.

  • ii. Board meeting reports: The execution of financial risk management is summarized in the board meeting reports.

  • iii. Endorsement valuation report: The period-end balance of endorsements provided is assessed timely to ensure it conforms to local regulations and corporate rules.

  • iv. Periodic meetings for the review of the status of Company groupings by industry: The Company periodically holds review meetings for the comprehensive review of all Company groupings based on their respective industry attributes.

  • 3) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in exchange rates and interest rates.

  • a) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to exchange rate risk.

Fair value of financial instruments measured at fair value on a recurring basis.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to exchange rate risk at the end of the reporting period are set out in Note 32.

Sensitivity analysis

The Company’s currency exposure was mainly to the U.S. dollar, Renminbi and yen.

The following table shows the Company’s sensitivity to a 1% increase and decrease in New Taiwan dollars (the functional currency) against foreign currency. The sensitivity rate of 1% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period is adjusted for a 1% change in exchange rates.

Profit or loss USD Impact
For the Year Ended
December 31
2020
2019
$ (5,625)
$ (7,718)		 JPY Impact
For the Year Ended
December 31
2020
2019
$ 768
$ 1,395

Annual Report 2020 155

Financial Information

Profit or loss RMB Impact
For the Year Ended December
31
2020
2019
$ (158)
$ 79		 EUR Impact
For the Year Ended December
31
2020
2019
$ 134
$ 15

b) Interest rate risk

The Company was exposed to interest rate risk because the Company borrowed funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix of fixed and floating rate borrowings and using interest rate swap contracts and forward contracts.

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rate risks at the end of the reporting period were as follows.

Fair value interest rate risk
Financial assets
Financial liabilities
Cash flow interest rate risk
Financial assets
Financial liabilities		 December 31
2020
2019
$ 1,677,605 $ 10,958,614
17,297,789
15,300,000
1,601,442
3,503,750
1,500,000
1,500,000

Sensitivity analysis

The sensitivity analysis was based on the Company’s exposure to changes in interest rates for both derivative and non-derivative instruments at the end of the reporting period.

If interest rates had been 1% higher and had all other variables been held constant, the Company’s pre-tax profit would have increased by $1,014 thousand in 2020 and $20,038 thousand in 2019.

c) Other price risk

The Company was exposed to equity price risk on its investments in listed equity securities.

Sensitivity analysis

The Company assesses equity price risk using sensitivity analysis.

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 1% lower, as of December 31, 2020, financial assets at FVTPL and FVTOCI would have decreased by $20,569 thousand and $22,717 thousand, respectively.

156 YULON MOTOR

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Annual Report 2020

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 1% lower, as of December 31, 2019, financial assets at FVTPL and FVTOCI would have decreased by $17,426 thousand and $24,184 thousand, respectively.

d) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk referred to the failure of counterparties to discharge an obligation and to financial guarantees provided by the Company.

  • i. The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

  • ii. The amount of contingent liabilities in relation to financial guarantee issued by the Company

It is the Company’s policy to have transactions only with creditworthy counterparties. Credit information on counterparties is gathered by independent rating agencies through credit search and analysis. Credits are then given to counterparties in the basis of the nature of transactions, financial status of the counterparties, and collateral conditions, with related contracts to be renewed after careful reexamination to ensure that credit risk is within the level the Company has the capacity to bear.

The main objects of accounts receivable are associates companies of the company, and the Company analyzes its numerous trade receivable clients’ financial status continuously.

  • e) Liquidity risk

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

30. TRANSACTIONS WITH RELATED PARTIES

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

  • a. Related parties and relationships with the Company
Related Party
Yulon Finance Corporation
Yu Ching Business Co., Ltd.
Yu Pong Business Co., Ltd.
Yung Hang Investment Co., Ltd.		 Relationship with the Company
Subsidiary
Subsidiary
Subsidiary
Subsidiary
(Continued)

Annual Report 2020 157

Financial Information

Related Party

Relationship with the Company

Yue Sheng Industrial Co., Ltd. Subsidiary Yue-Ki Industrial Co., Ltd. Subsidiary China Cast Iron Pipe Co., Ltd. Subsidiary Yu Chang Motor Co., Ltd. Subsidiary Yushin Motor Co., Ltd. Subsidiary Yu Chia Motor Co., Ltd. Subsidiary SinYi Co., Ltd. Subsidiary Singan Co., Ltd. Subsidiary Singgual Travel Service Co., Ltd. Subsidiary Yulon Construction Co., Ltd. Subsidiary Yumin Motor Co., Ltd. Subsidiary Tian Wang Co., Ltd. Subsidiary Yu Pool Enterprise Co., Ltd. Subsidiary Chan Yun Technology Co., Ltd. Subsidiary Univation Motor Philippines, Inc. Subsidiary Sin Chi Co., Ltd. Subsidiary Yu Sing Motor Co., Ltd. Subsidiary Y-Teks Co., Ltd. Subsidiary Yulon Overseas Investment Co., Ltd. Subsidiary Yulon China Investment Co., Ltd. Subsidiary Yulon Philippine Investment Co., Ltd. Subsidiary Union & NKH Auto Parts Co., Ltd. Subsidiary Yustar Corporation Subsidiary Car-plus Auto Leasing Corporation Subsidiary Diamond Leasing Service Corporation Subsidiary Yu Rich Financial Services Co., Ltd. Subsidiary Chinh-Ling RTC Co., Ltd. Subsidiary Qinton Motor Co., Ltd. Subsidiary Haitec Co., Ltd. Subsidiary H. K. Manpower Service Co., Ltd. Subsidiary Sheng Qing (Bei Jin) Investment Co., Ltd. Subsidiary Hong Shou Culture Enterprise Co., Ltd. Subsidiary Hsiang Shou Enterprise Co., Ltd. Subsidiary Luxgen Motor Co., Ltd. Subsidiary Luxgen Motor Taipei Co., Ltd. Subsidiary Luxgen Motor Taoyuan Co., Ltd. Subsidiary Luxgen Motor Taichung Co., Ltd. Subsidiary Luxgen Motor Tainan Co., Ltd. Subsidiary Luxgen Motor Kaohsiung Co., Ltd. Subsidiary Yes-Energy Service Co., Ltd. Subsidiary Sin Jiang Enterprises Subsidiary Advance Power Machinery Co., Ltd. Subsidiary Yulon Motor Investment Limited Subsidiary Dong Feng Yulon Motor Sales Co., Ltd. Subsidiary (Announced bankruptcy and assigned bankruptcy trustee in the 4th quarter of 2020. The Company lost control over Dong Feng Yulon Motor Sales Co., Ltd.) Luxgen Motor Co., Ltd. Subsidiary Luxgen MotorTaipei Co., Ltd. Subsidiary

(Continued)

158 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Related Party

Relationship with the Company

Luxgen MotorTaoyuan Co., Ltd. Subsidiary Luxgen MotorTaichung Co., Ltd. Subsidiary Luxgen Motor Tainan Co., Ltd. Subsidiary Luxgen Motor Kaohsiung Co., Ltd. Subsidiary Yes-Energy Service Co., Ltd. Subsidiary Sin Jiang Enterprises Subsidiary Advance Power Machinery Co., Ltd. Subsidiary Yulon Motor Investment Limited Subsidiary Dong Feng Yulon Motor Sales Co., Ltd. Subsidiary(Announced bankruptcy and assigned bankruptcy trustee in the 4th quarter of 2020. The Company lost control over Dong Feng Yulon Motor Sales Co., Ltd.) Chuang Jie Co., Ltd. Subsidiary Hang Zhou Haitec Company Subsidiary Dong Feng Yulon Motor Sales Co., Ltd. Subsidiary Yuan Zhi Co., Ltd. Other related parties Yuen-jin Co., Ltd. Other related parties Taiway Co., Ltd. Other related parties ROC-Keper Industrial Ltd. Other related parties Kian-shen Co., Ltd. Other related parties Sino Diamond Motors Co. Other related parties Carnival Industrial Corporation Other related parties Hui-Fong Motor Co., Ltd. Other related parties Lowin Industrial Co., Ltd. Other related parties Gatetech Technology Inc. Other related parties Nissan Motor Co., Ltd. Other related parties Chi Ho Company Associates Cheng Long Co., Ltd. Associates Yuan Lon Motor Co., Ltd. Associates Yu Tang Motor Co., Ltd. Associates Yulon Nissan Motor Co., Ltd. Associates Ding Long Associates Tai-Yuen Textiles Co., Ltd. Associates China Motor Company Associates Tokio Marine Newa Insurance Co., Ltd. Associates ROC-Spicer Ltd. Associates UNI-Calsonic Co. Associates China Ogihara Company Associates China Engine Company Associates Chingis Technology Corporation Associates Hui-Lian Motor Co., Ltd. Associates Yulon Management Co., Ltd. Associates DXMedia Co., Ltd. Associates(All shares were sold in the 4[th] quarter of 2020.) DX Creative House Co., Ltd. Associates (Concluded)

Annual Report 2020 159

Financial Information

  • b. Transactions in operating activities
Related Party Categories
Sales of goods
Subsidiaries
Luxgen
Others
Associates
Yulon Nissan
Joint venture
Purchases of goods
Subsidiaries
Associates
Other related parties
Nissan Motor Co., Ltd.
Others
Joint venture
Operating expense
Subsidiaries
Associates
Other related parties
Other operating revenue
Subsidiaries
Associates
Yulon Nissan
Others
Other related parties		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 3,740,173
20,537

3,760,710
23,301,919
99

$ 27,062,728

$ 2,226,152
489,818
8,840,735
411,226

9,251,961
134,966

$ 12,102,897

$ 58,534
45,187
2,363

$ 106,084

$ 238,822
509,484
30,276

539,760
8,222

$ 786,804
 2019
$ 3,191,166

61,696

3,252,862

25,877,233

137,805
$ 29,267,900
$ 2,113,689

437,792

9,568,707

422,693

9,991,400

343,712
$ 12,886,593
$ 47,469

45,111

5,914
$ 98,494
$ 270,089

531,545

32,965

564,510

12,645
$ 847,244

160 YULON MOTOR

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Annual Report 2020

On the balance sheet dates, the amounts receivable from related parties were as follows:

Related Party Categories
Notes and trade receivable
Subsidiaries
Luxgen
Others
Associates
Yulon Nissan
Other related parties
Joint venture
Dongfeng Yulon Motor Co., Ltd. (Note)		 December 31 December 31
2020
$ 59,931

741

60,672
21,295
271
-

$ 82,238
 2019
$ 90,422

7,818
98,240

204,816
272

-
$ 303,328

Note: As of December 31, 2020, the receivable from related party - Dong Feng Yulon Motor Sales Co., Ltd. - was assessed according to the expected credit loss model. At the end of the period, the carrying amount of the receivable after deduction of allowance for loss of $386,942 thousand was $0.

Related Party Categories
Other financial assets (recognized as other receivables)
Subsidiaries
Luxgen
Others
Associates
Yulon Nissan
Others
Other related parties
Others		 December 31 December 31
2020
$ 87,522
17,242

104,764
30,929
1,480

32,409
15,089

$ 152,262
 2019
$ 43,517

103,287

146,804

69,815

11,825

81,640

37,234
$ 265,678

Prepayments (accounted as other current assets)

Related Party Categories
Joint venture
Dongfeng Yulon Motor Co., Ltd. (Note)		 December 31 December 31
2020
$ 1,905
 2019
$ 53,743

Note: As of December 31, 2020, the Company recognized impairment loss of $964,901 thousand on the prepayments to Dongfeng Yulon Motor Co., Ltd. The carrying

Annual Report 2020 161

Financial Information

amount of the prepayment to Dongfeng Yulon Motor Co., Ltd. was $1,905 thousand at December 31, 2020.

Related Party Categories
Trade payables
Subsidiaries
Associates
Other related parties
Nissan Motor Co., Ltd.
Others
Joint venture		 December 31 December 31
2020
$ 425,123
97,563

971,470
58,344

1,029,814
547

$ 1,553,047
 2019
$ 335,038

113,782

1,048,104

45,595

1,093,699

47,957
$ 1,590,476
  • c. Compensation of key management personnel
Short-term employee benefits
Post-employment benefits		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 62,266
1,565

$ 63,831
 2019
$ 58,802

1,620
$ 60,422

The compensation of the board members and the Company’s management is determined by the remuneration committee based on individual performance and market conditions.

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, information on significant contingent liabilities and unrecognized commitments on the balance sheet date is as follows:

  • a. The Company has a manufacturing contract with Yulon Nissan Motor Co., Ltd. (“Yulon Nissan”) with a five-year validity from May 1, 2015 to April 30, 2020. The contract is automatically renewed unless either party issues a notice of discontinuance within three months before contract expiry. The contract states that Yulon Nissan has authorized the Company to manufacture Nissan automobiles and parts, and Yulon Nissan is responsible for the subsequent development of new automobile parts. The volume of the Company’s manufacturing should be based on Yulon Nissan’s projection of car unit sales for the year. In addition, the Company manufactures other service parts for Yulon Nissan upon the latter’s request.

Yulon Nissan is responsible for developing new car models, refining designs, and providing the Company with sales projections. The Company is responsible for transforming the sales projections into manufacturing plans and making the related materials orders and purchases, providing product quality assurance, delivering cars, and providing warranty-related services.

162 YULON MOTOR

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  • b. Luxgen Motor Co., Ltd. (“Luxgen”) entrusted to the Company the manufacture and assembly of cars based on the design purchased by Luxgen from Haitec Co., Ltd., a vehicle model developer. This car assembly is based on a five-year contract valid from May 1, 2015 to April 30, 2020. The contract is automatically renewed unless either party issues a notice of discontinuance within three months before contract expiry. The contract states that Luxgen authorizes the Company to manufacture Luxgen automobiles and parts. The volume of the Company’s manufacturing should be based on Luxgen’s projection of car unit sales for the year. In addition, the Company manufactures other service parts for Luxgen upon the latter’s request.

Luxgen is responsible for contracting the Company for the manufacture of new car model parts, refining designs, registering products, and providing the Company with sales projections. The Company is responsible for transforming the sales projections into manufacturing plans and making the related materials orders and purchases, providing product quality assurance, delivering cars, and providing warranty-related services.

  • c. See Table 2 for the information on endorsements/guarantees provided to subsidiaries or associates.

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

December 31, 2020
Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 49,496
28.48 (USD:NTD)

JPY
303,826
0.276 (JPY:NTD)
RMB
3,992
4.377 (RMB:NTD)
EUR
4
35.02 (EUR:NTD)



Nonmonetary items

RMB
475,246
4.377 (RMB:NTD)

Financial liabilities


Monetary items
USD
29,747
28.48 (USD:NTD)

JPY
581,950
0.276 (JPY:NTD)
RMB
380
4.377 (RMB:NTD)
EUR
388
35.02 (EUR:NTD)

 Carrying
Amount
$ 1,409,646
83,856
17,473
140
$ 1,511,115

$ 2,080,151

$ 847,195
160,618
1,663
13,588
$ 1,023,064

Annual Report 2020 163

Financial Information

December 31, 2019

Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 53,418
29.980 (USD:NTD)

JPY
671,008
0.276 (JPY:NTD)
RMB
1,004
4.298 (RMB:NTD)
EUR
676
33.590 (EUR:NTD)



Nonmonetary items

RMB
540,090
4.298 (RMB:NTD)

Financial liabilities


Monetary items
USD
27,673
29.980 (USD:NTD)

JPY
1,176,415
0.276 (JPY:NTD)
RMB
2,834
4.298 (RMB:NTD)
EUR
722
33.590 (EUR:NTD)

 Carrying
Amount
$ 1,601,472
185,198
4,315

22,707
$ 1,813,691

$ 2,321,035

$ 829,637
324,691
12,179

24,252
$ 1,190,758

For the years ended December 31, 2020 and 2019, realized and unrealized net foreign exchange gains (losses) were $(2,756) thousand and $3,914 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions or functional currencies of the Company.

33. SEPARATELY DISCLOSED ITEMS

  • a. Information about significant transactions and investees:

  • 1) Financing provided to others. (Table 1)

  • 2) Endorsements/guarantees provided. (Table 2)

  • 3) Marketable securities held (excluded investment in subsidiaries, associates and joint controlled entities). (Table 3)

  • 4) Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital. (Table 4)

  • 5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (Table 5)

  • 6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital. (Table 6)

164 YULON MOTOR

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Annual Report 2020

  • 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 7)

  • 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 8)

  • 9) Information on investees. (Table 9)

  • b. Information on investments in mainland China

There was no information on investments in mainland China should be disclosed excluding in Table 10.

Annual Report 2020 165

TABLE 1

YULON MOTOR COMPANY LTD.

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending
Balance		 Actual
Borrowing
Amount		 Interest
Rate		 Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **		 Aggregate
Financing
Limits		 Note
Item Value
0 The Company Luxgen (Hangzhou)
Motor Sales		 Accounts receivable -
related parties		 Y $ 4,317,000 $ - $ - - Repaying loan $ - Repaying loan $ - - $ - $ 4,873,847 $ 14,621,541 Note 1
1 Yulon China (HK) Holding Sheng Qing Other receivables Y 758,250 712,700 - - Operating capital
-		 Operating capital - - - 712,700 712,700 Note 1
2 Yulon China Sheng Qing Other receivables Y 2,123,100 1,995,560 - - Operating capital
-		 Operating capital - - - 3,420,960 3,420,960 Note 1
3 Singgual Ching-Tong
Singan		 Other receivables
Other receivables		 Y
Y		 10,000
50,000		 10,000
50,000		 10,000
20,000		 0.97%
0.97%		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 69,915
69,915		 69,915
69,915		 Note 1
Note 1
4 Hsiang Shuo Singan Other receivables Y 90,000 90,000 90,000 0.97% Operating capital
-		 Operating capital - - - 94,575 94,575 Note 1
5 Yulon Motor Investment Wuhan Yu Hsin
Zi Bo Yu An
Dong Tai
Shi Cheng
Yi Ding
Mei De
Tai Feng
Shenzhen Yu Zhi
Nan Jing Yu Hua
Chang Sha Yu Lu
Hang Zhou Hua You
Hang Zhou Haitec
Company
Dongfeng Yulon		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 65,682
6,111
12,796
17,061
25,592
38,388
51,184
58,929
59,714
4,379
81,008
240,834
459,774		 65,388
-
-
-
-
-
-
-
-
4,359
80,645
239,756
457,716
-

-

-

-

-

-

-

-

-

-

80,645

180,907

305,144		 -
-
-
-
-
-
-
-
-
-
4.00%
-
6%-6.15%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
-
457,716		 -
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-		 5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
2,203,464
2,203,464
2,203,464		 16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
2,203,464
2,203,464
2,203,464		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
6 Sheng Qing Shanghai Yuming
Jiangmen Yuli
Chang Sha Yu Lu
Ning Bo Yu Cheng
Jin Ce
Gao Te
Ke Yu
Zhuhai Yuhsin
Zi Bo Yu An
An Hui Min Tung		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 75,652
8,758
17,460
87,302
8,758
23,571
30,556
48,016
52,381
113,492		 -
8,718
-
-
8,718
8,718
13,078
41,412
45,990
52,310
-

-

-

-

-

-

-

-

-

-		 -
-
-
-
-
-
-
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-		 979,665
979,665
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162		 979,665
979,665
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
(Continued)
No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending Balance Actual
Borrowing
Amount		 Interest
Rate		 Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **		 Aggregate
Financing
Limits		 Note
Item Value
Tung Ling Kuo Tung
Shenzhen Yu Zhi
Fu Jian Yu Xin
Hang Zhou Hua You
Ka Shing Yu Da
Guang Zhou Yuan Du
Jiangmen Junxing
Hang Zhou Hua Zhi
Xiao Gan Yu Feng
Nan Jing Yu Hua
Zhu Hai Fu Te En
Wuhan Yu Hsin
Qingdao Yuanhuang
Hang Zhou Haitec
Company
Nanjing Hanhong
Dongfeng Yulon
Xiamen Young Chang
Yu-Jie
Yulon Motor Investment		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 $ 106,944
58,238
144,048
14,757
15,764
46,232
43,788
61,303
130,952
61,303
191,190
213,016
87,576
218,940
237,024
157,637
182,024
179,531
1,604,167		 $ 56,016
57,977
39,233
14,691
15,693
34,874
43,592
61,029
52,310
61,029
116,827
82,825
87,184
217,960
153,880
156,931
166,521
178,727
1,220,576		 $ -
-
7,847
7,969
15,693
26,155
43,592
47,760
52,079
53,503
69,747
73,235
85,004
100,255
142,250
156,931
166,521
174,368
888,810		 -
-
6.00%
5.75%
3.00%
6.00%
6.00%
5.75%
5.60%
0%-6%
0%-6%
0%-6%
6.00%
5.75%
0%-6%
6.15%
0.5%-3%
1.00%
0.5%-3%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
156,931
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 2,449,162
2,449,162
979,665
979,665
979,665
979,665
979,665
979,665
2,449,162
2,449,162
2,449,162
2,449,162
979,665
979,665
2,449,162
979,665
2,449,162
2,449,162
2,449,162		 $ 7,347,487
7,347,487
979,665
979,665
979,665
979,665
979,665
979,665
7,347,487
7,347,487
7,347,487
7,347,487
979,665
979,665
7,347,487
979,665
7,347,487
7,347,487
7,347,487		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
7 Zhu Hai Fu Te En Wuhan Yu Hsin
Nanjing Hanhong
Nan Jing Yu Hua
Zhuhai Yuhsin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y		 4,365
15,714
21,825
56,746		 -
6,975
17,437
45,772		 -
-
-
-		 -
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-		 -
-
-
-		 -
-
-
-		 263,512
263,512
263,512
263,512		 527,023
527,023
527,023
527,023		 Note 1
Note 1
Note 1
Note 1
8 Nanjing Hanhong Nan Jing Yu Shang Accounts receivable -
related parties		 Y 48,167 47,951 47,951 6.00% Operating capital
-		 Operating capital - - - 286,437 572,874 Note 1
9 Su Zhou Feng Shen Wu Jiang Lian Cheng
Su Zhou Chen Long
Su Zhou Cheng Hung
Su Zhou Cheng Guo
Su Chou Cheng Pin
Tai Chang Cheng Mau
Su Zhou Feng Shun		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y		 21,894
21,894
21,894
43,788
43,788
65,682
70,061		 21,796
21,796
21,796
43,592
43,592
65,388
69,747		 -
-
17,437
21,796
23,976
39,233
39,233		 -
-
4.10%
4.10%
4.10%
4.10%
4.10%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-		 -
-
-
-
-
-
-		 -
-
-
-
-
-
-		 309,432
309,432
309,432
309,432
309,432
309,432
309,432		 309,432
309,432
309,432
309,432
309,432
309,432
309,432		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
10 Wu Jiang Lian Cheng Tai Chang Cheng Mau Accounts receivable -
related parties		 Y 26,190 21,796 - - Operating capital
-		 Operating capital - - - 25,933 25,933 Note 1

(Continued)

No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest
Balance for
the Period		 Ending
Balance		 Actual
Borrowing
Amount		 Interest Rate Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 Collateral Collateral Financing Limit
for Each
Borrower		 Aggregate
Financing
Limits		 Note
Item Value
11 HangZhou Yu Zhong Dongfeng Yulon
Yulon Motor Investment
Hang Zhou hsiao Yu
Hang Zhou Hua You		 Other receivables
Other receivables
Other receivables
Other receivables		 Y
Y
Y
Y		 $ 7,444
15,103
17,515
17,953		 $ 7,411
11,770
17,437
17,873		 $ 7,411
11,770
17,437
17,873		 6.15%
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital		 $ -
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital		 $ 7,411
-
-
-		 -
-
-
-		 $ -
-
-
-		 $ 29,792
744,791
744,791
29,792		 $ 29,792
1,117,186
1,117,186
29,792		 Note 1
Note 1
Note 1
Note 1
12 Shinshin A13
A2
A23
A16
A27
A8
A24
A17
A11
A9
A12
A1
A28
S1
A5
A6
A21
A20
A19
A22
A7
A14
A26
A10
A18
A4
A15
A25
K1		 Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 15,000
45,000
10,000
20,000
25,000
30,000
40,000
10,000
10,000
25,000
20,000
51,287
10,000
17,606
6,000
30,000
7,000
25,000
20,000
12,000
15,000
15,000
18,000
40,000
45,000
69,632
60,000
70,000
113,050		 15,000
-
10,000
20,000
25,000
30,000
40,000
10,000
10,000
25,000
20,000
-
10,000
3,380
4,655
4,900
7,000
23,330
18,333
10,482
10,965
11,580
17,032
33,344
37,765
67,773
56,394
69,001
109,911		 -
-
-
-
-
-
-
-
-
-
-
-
-
3,380
4,655
4,900
7,000
8,330
8,333
10,482
10,965
11,580
17,032
33,344
37,765
47,773
56,394
69,001
109,911		 1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
66,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
68
93
98
140
167
167
210
219
232
341
667
755
955
1,128
1,380		 Inventory
-
-
-
-
-
-
Property
Land
Property
Land
Property
-
Performance
bond
Property
Inventory
Property
Inventory
-
-
-
-
-
Stock
-
Inventory/
performance
bond
-
-
Property		 -
-
-
-
-
-
-
2,000
8,600
25,000
27,540
66,000
-
9,000
2,300
-
9,788
-
-
-
-
-
-
57,200
-
1,500
-
-
35,000		 1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
945,460
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736		 1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
3,781,840
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
13 Guang Zhou Yuan Du Qingdao Yuanhuang Accounts receivable -
related parties		 Y 87,576 87,184 59,721 6.40% Operating capital - Operating capital 1,843 - - 143,450 143,450 Note 1
14 Su Zhou Feng Shun Tai Chang Cheng Mau
Su Zhou Cheng Hung
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y		 21,894
21,894
30,556		 21,796
21,796
21,796		 -
-
-		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 -
-
-		 -
-
-		 65,596
65,596
65,596		 65,596
65,596
65,596		 Note 1
Note 1
Note 1
15 Suzhou Yueshun Tai Chang Cheng Mau
Su Zhou Feng Shun		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 6,568
6,568		 6,539
6,539		 -
-		 -
-		 Operating capital
Operating capital		 -
-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 17,499
17,499		 17,499
17,499		 Note 1
Note 1
16 Nan Jing Yu Hua Nanjing Hanhong Accounts receivable -
related parties		 Y 118,762 118,230 118,230 - Operating capital - Operating capital - - - 144,490 288,980 Note 1
17 Xiao Gan Yu Feng Wuhan Yu Hsin
Chang Sha Yu Lu		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 21,825
19,643		 -
10,898		 -
-		 -
-		 Operating capital
Operating capital		 -
-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 258,170
258,170		 516,339
516,339		 Note 1
Note 1
18 Yu-Jie Dongfeng Yulon Other receivables Y 218,940 217,960 217,960 6.15% Operating capital - Operating capital 217,960 - - 891,149 891,149 Note 1
19 Yu-Hsin Intl Yu-Hsin Intl HK Other receivables Y 151,650 142,540 114,032 2.90% Operating capital - Operating capital - - - 285,005 427,507 Note 1
20 Su Zhou Chen Long Su Zhou Feng Shun
Su Zhou Cheng Pang
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y		 21,894
21,894
21,894		 21,796
21,796
21,796		 -
-
-		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 -
-
-		 -
-
-		 147,215
147,215
147,215		 147,215
147,215
147,215		 Note 1
Note 1
Note 1
(Continued)
No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending Balance Actual
Borrowing
Amount		 Interest Rate Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 Coll ateral Financing Limit
for Each
Borrower		 Aggregate
Financing
Limits		 Note
Item Value
Tai Chang Cheng Mau
Su Zhou Cheng Guo		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 $ 21,894
52,546		 $ 21,796
52,310		 $ 21,796
23,976		 5.00%
4.35%		 Operating capital
Operating capital		 $ -

-		 Operating capital
Operating capital		 $ -
-		 -
-		 $ -
-		 $ 147,215

147,215		 $ 147,215
147,215		 Note 1
Note 1
21 Su Zhou Cheng Pang Su Zhou Cheng Hung Accounts receivable -
related parties		 Y 13,136 13,078 - - Operating capital
-		 Operating capital - - -
19,727		 19,727 Note 1
22 Hang Zhou Tang Yu Dongfeng Yulon
Yulon Motor Investment		 Other receivables
Other receivables		 Y
Y		 4,817
38,937		 4,795
38,361		 4,795
38,361		 6.15%
-		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 19,055
476,385		 19,055
714,578		 Note 1
Note 1
23 Hang Zhou hsiao Yu Yulon Motor Investment Other receivables Y 873 392 - - Operating capital
-		 Operating capital - - - 435,920 653,880 Note 1
24 Hang Zhou Chien Yu Yulon Motor Investment Other receivables Y 3,929 3,487 3,487 - Operating capital
-		 Operating capital - - - 435,920 653,880 Note 1
25 Ke Yu Yi Ding
Dongfeng Yulon
Sheng Qing		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 21,894
74,440
436,508		 21,796
74,106
405,406		 21,796
74,106
212,729		 0.50%
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
74,106
-		 -
-
-		 -
-
-		 726,153
290,461
726,153		 1,452,307
290,461
1,452,307		 Note 1
Note 1
Note 1
26 Gao Te Dongfeng Yulon Other receivables Y 23,646 23,540 23,540 6.15% Operating capital
-		 Operating capital 23,540 - - 93,564 93,564 Note 1
27 Mei De Sheng Qing
Dongfeng Yulon
Shi Cheng		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 135,317
35,381
209,524		 130,776
35,222
130,776		 -
35,222
130,776		 -
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
35,222
-		 -
-
-		 -
-
-		 531,020
141,605
531,020		 1,062,040
141,605
1,062,040		 Note 1
Note 1
Note 1
28 Xiamen Young Chang Dongfeng Yulon Other receivables Y 65,682 65,388 65,388 6.15% Operating capital
-		 Operating capital 65,388 - - 323,660 323,660 Note 1
29 Qing Tai Shi Cheng
Dongfeng Yulon
Dong Tai		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 17,515
30,652
109,470		 17,437
30,514
108,980		 17,437
30,514
108,980		 0.50%
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
30,514
-		 -
-
-		 -
-
-		 465,461
124,123
465,461		 930,922
124,123
930,922		 Note 1
Note 1
Note 1
30 Jin Ce Dongfeng Yulon
Yi Ding		 Other receivables
Other receivables		 Y
Y		 7,006
39,286		 6,975
30,514		 6,975
30,514		 6.15%
0.50%		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 6,975
-		 -
-		 -
-		 28,066
701,655		 28,066
1,052,482		 Note 1
Note 1
31 Tai Feng Yi Ding
Dong Tai
Dongfeng Yulon		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 13,136
21,894
48,167		 13,078
21,796
47,951		 13,078
21,796
47,951		 0.50%
0.50%
6.15%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
-
47,951		 -
-
-		 -
-
-		 1,106,131
1,106,131
294,968		 2,212,261
2,212,261
294,968		 Note 1
Note 1
Note 1
32 Dong Tai Dongfeng Yulon Other receivables Y 11,823 11,770 11,770 6.15% Operating capital
-		 Operating capital 11,770 - - 28,688 28,688 Note 1
33 Shi Cheng Dongfeng Yulon Other receivables Y 13,968 13,731 13,731 6.15% Operating capital
-		 Operating capital 13,731 - - 36,453 36,453 Note 1
34 Yi Ding Dongfeng Yulon Other receivables Y 23,135 22,973 22,973 6.15% Operating capital
-		 Operating capital 22,973 - - 91,678 91,678 Note 1
35 Sin Jang Singan Other receivables Y 210,000 210,000 210,000 0.97% Operating capital
-		 Operating capital - - - 210,828 210,828 Note 1
36 Su Zhou Cheng Li Su Zhou Feng Shun
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 8,758
8,758		 8,718
8,718		 -
-		 -
-		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-
20,151

20,151		 20,151
20,151		 Note 1
Note 1
37 Yu Ching Haitec Other receivables Y 339,000 - - - Operating capital
-		 Operating capital - - - 539,244 539,244 Note 1
38 Chuang Jie New
Energy Vehicle		 Luxgen (Hangzhou)
Motor Sales		 Other receivables Y 120,876 - - - Operating capital
-		 Operating capital - - -
336,274		 1,008,822 Note 1
39 Sin Chi Haitec Other receivables Y 269,000 - - - Operating capital
-		 Operating capital - - - 501,555 501,555 Note 1
40 NISSAN Taiwan
Ltd.(Shanghai)		 Zhe Jiang Cheng Yi
Company		 Other receivables Y 9,635 9,603 9,603 4.00% Operating capital
-		 Operating capital - - -
10,330		 10,330 Note 1
41 Shanghai Yuming Ka Shing Yu Da Other receivables Y 26,273 26,155 8,718 5.00% Operating capital
-		 Operating capital - - - 37,922 37,922 Note 1
42 Tai Chang Cheng Mau Su Zhou Cheng Guo Accounts receivable -
related parties		 Y 8,758 8,718 - - Operating capital
-		 Operating capital - - -
24,310		 24,310 Note 1

(Continued)

  • Note: 0. The Company: While credit financing limit for each borrower was 10% of the lender’s net equity and aggregate financing limits was 30% of the lender’s net equity.

  • Yulon China (HK) Holding: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was $25 million and aggregate financing limits was $25 million.

  • Yulon China: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was $120 million and aggregate financing limits was $120 million.

  • Singgual Travel: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Hsiang Shou: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Yulon Motor Investment: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Sheng Qing: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Zhu Hai Fu Te En: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Nanjing Hanhong: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Su Zhou Feng Shen: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Wu Jiang Lian Cheng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • HangZhou Yu Zhong: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  • Shinshin: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. Business transactions financing limit for each borrower were not exceeding 100% of the lender’s net equity and aggregate financing limits were not exceeding 25% of the lender’s net equity.

  • Guang Zhou Yuan Du: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Su Zhou Feng Shun: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Suzhou Yueshun: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Nan Jing Yu Hua: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Xiao Gan Yu Feng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Yu-Jie: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 60% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Yu-Hsin Intl: Credit financing limit for each borrower were not exceeding 20% of the lender’s net equity and aggregate financing limits were not exceeding 30% of the lender’s net equity.

  • Su Zhou Chen Long: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Su Zhou Cheng Pang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Hang Zhou Tang Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  • Hang Zhou hsiao Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was RMB100 million and aggregate financing limits was RMB150 million.

  • Hang Zhou Chien Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was RMB100 million and aggregate financing limits was RMB150 million.

  • Ke Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Gao Te: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 200% of the lender’s net equity and aggregate financing limits was 400% of the lender’s net equity.

  • Mei De: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

(Continued)

  1. Xiamen Young Chang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  2. Qing Tai: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  3. Jin Ce: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  4. Tai Feng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  5. Dong Tai: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  6. Shi Cheng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  7. Yi Ding: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  8. Sin Jiang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  9. Su Zhou Cheng Li: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  10. Yu Ching: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  11. Chuang Jie: Credit financing limit for each borrower were not exceeding 10% of the lender’s net equity and aggregate financing limits were not exceeding 30% of the lender’s net equity.

  12. Sin Chi: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  13. Genwise: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  14. Shanghai Yuming: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  15. Tai Chang Cheng Mau: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

(Concluded)

TABLE 2

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on Each
Endorsement/
Guarantee Given
on Behalf of
Each Party		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at
the End of the
Period		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed
by
Collaterals
Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Latest
Financial
Statements (%)
Aggregate
Endorsement/
Guarantee
Limit		 Endorsement/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries		 Endorsement/
Guarantee
Given by
Subsidiaries
on Behalf of
Parent		 Endorsement/
Guarantee
Given on
Behalf of
Companies in
Mainland
China		 Note
Name Relationship
(Note 2)
0 The Company Luxgen Kaohsiung
Luxgen Taichung
Luxgen Tainan
Luxgen Taoyuan
Luxgen Taipei
Sin Chi
Yu Sing
UMPI
Yu Ching
Luxgen
Luxgen (Hangzhou) Motor Sales		 b
b
b
b
b
b
b
b
b
b
b		 $ 13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922		 $ 164,250
165,000
200,000
208,000
600,000
500,000
1,440,000
758,250
1,000,000
11,350,000
9,099,000		 $ 50,000
50,000
50,000
50,000
50,000
500,000
510,000
570,160
1,000,000
8,100,000
-		 $ -
-
-
-
50,000
-
280,000
93,760
-
100,000
-		 $ -

-

-

-

-

-

-

-

-

-

-		 0.10
0.10
0.10
0.10
0.10
1.03
1.05
1.17
2.05
16.62
-		 $ 36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 N
N
N
N
N
N
N
N
N
N
N		 N
N
N
N
N
N
N
N
N
N
Y		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
1 Union & NKH Auto Parts Hangchow Liangrun b 327,770 312,000 312,000 -
-		 13.33 936,484 N N Y Note 1
2 YFC Yulon Finance Philippines Corporation
TAC Leasing (Suzhou)
Car-Plus Go Co., Ltd.
TAC Finance Company		 b
b
b
b		 48,158,883
48,158,883
48,158,883
48,158,883		 2,408,000
5,961,152
320,000
10,000,000		 2,344,000
5,936,128
-
3,800,000		 1,029,680
3,317,248
-
1,747,325
-

-

-

-		 12.17
30.82
-
19.73		 96,317,765
96,317,765
96,317,765
96,317,765		 N
N
N
N		 N
N
N
N		 N
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
3 Car-plus Corporation Car-Plus Go Co., Ltd. b 5,145,628 480,000 - -
-		 - 10,291,255 N N Y Note 1
4 Sheng Qing Tung Ling Kuo Tung
Shanghai Yuming
Xiao Gan Yu Feng
Chang Sha Yu Lu
Jiangmen Junxing
Nan Jing Yu Hua
Nanjing Hanhong
Qingdao Yuanhuang
Wuhan Yu Hsin
Guang Zhou Yuan Du
Yu-Jie		 b
b
b
b
b
b
b
b
b
b
b		 12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811		 17,460
21,825
21,825
30,556
43,651
65,476
211,305
218,940
262,728
350,304
875,760		 -
-
-
-
-
-
108,980
217,960
261,552
348,736
871,840		 -
-
-
-
-
-
60,157
78,577
254,621
83,374
-
-

-

-

-

-

-

-

-

-

-

-		 -
-
-
-
-
-
4.45
8.90
10.68
14.24
35.60		 61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055		 N
N
N
N
N
N
N
N
N
N
N		 N
N
N
N
N
N
N
N
N
N
N		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
5 Nanjing Hanhong Nan Jing Yu Hua
Zhu Hai Fu Te En		 b
d		 435,920
435,920		 109,470
218,940		 108,980
217,960		 -
31,168
-

-		 57.07
114.14		 588,492
588,492		 N
N		 N
N		 Y
Y		 Note 1
Note 1
6 Zhu Hai Fu Te En Nan Jing Yu Hua
Nanjing Hanhong		 d
d		 527,023
527,023		 109,470
175,152		 108,980
174,368		 -
-
-

-		 41.36
66.17		 790,535
790,535		 N
N		 N
N		 Y
Y		 Note 1
Note 1
7 Su Zhou Feng Shen Wu Jiang Lian Cheng
Su Zhou Feng Shun
Su Zhou Cheng Pang
Tai Chang Cheng Mau		 b
b
b
b		 773,581
773,581
773,581
773,581		 43,788
76,366
131,364
148,879		 43,592
76,024
130,776
148,213		 -
-
37,560
43,674
-

-

-

-		 5.64
9.83
16.91
19.16		 2,320,742
2,320,742
2,320,742
2,320,742		 N
N
N
N		 N
N
N
N		 Y
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
(Continued)
No. Endorser/Guarantor Endorsee/Gua rantee Limits on Each
Endorsement/
Guarantee Given
on Behalf of
Each Party		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at
the End of the
Period		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed by
Collaterals
Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Latest
Financial
Statements (%)
Aggregate
Endorsement/
Guarantee Limit		 Endorsement/
Guarantee Given
by Parent on
Behalf of
Subsidiaries		 Endorsement/
Guarantee Given
by Subsidiaries
on Behalf of
Parent		 Endorsement/
Guarantee Given
on Behalf of
Companies in
Mainland China
Note
Name Relationship
(Note 2)
8 Wu Jiang Lian Cheng Su Zhou Feng Shen
Su Zhou Feng Shun		 c
c		 $ 392,328
392,328		 $ 43,788
229,624		 $ 43,592
228,596		 $ -
75,937		 $ -
-		 67.24
352.59		 $ 871,840
871,840		 N
N		 N
N		 Y
Y		 Note 1
Note 1
9 Su Zhou Feng Shun Su Zhou Cheng Li
Su Zhou Feng Shen
Wu Jiang Lian Cheng		 b
c
b		 819,944
819,944
819,944		 26,273
43,788
153,258		 26,155
43,592
152,572		 -
-
49,856		 -
-
-		 15.95
26.58
93.04		 1,639,888
1,639,888
1,639,888		 N
N
N		 N
N
N		 Y
Y
Y		 Note 1
Note 1
Note 1
10 Su Zhou Cheng Pang Su Zhou Feng Shen c 392,328 153,258 152,572 20,996 - 309.36 784,656 N N Y Note 1
11 Tai Chang Cheng Mau Su Zhou Feng Shen c 392,328 153,258 152,572 20,996 - 251.05 871,840 N N Y Note 1
12 Su Zhou Cheng Guo Su Zhou Chen Long c 392,328 109,470 108,980 48,934 - 999.99 871,840 N N Y Note 1
13 Su Zhou Chen Long Su Zhou Cheng Hung b 1,840,191 78,818 78,466 6,362 - 21.32 3,680,382 N N Y Note 1
14 Nan Jing Yu Hua Nanjing Hanhong
Zhu Hai Fu Te En		 c
d		 481,633
481,633		 175,152
218,940		 174,368
217,960		 -
-		 -
-		 -
-		 963,265
963,265		 N
N		 N
N		 Y
Y		 Note 1
Note 1

Note 1: The Company: The aggregate endorsement/guarantee limit was calculated for 75% of the endorser's/guarantor's net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 40% of the aggregate endorsement/guarantee amounts.

Union & NKH Auto Parts: The aggregate endorsement/guarantee limit was calculated for 40% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 35% of the aggregate endorsement/guarantee amounts.

YFC: The aggregate endorsement/guarantee limit was calculated for 500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 50% of the aggregate endorsement/guarantee amounts.

Car-plus Corporation: The aggregate endorsement/guarantee limit was calculated for 500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 250% of the endorser’s/guarantor’s net equity.

Sheng Qing: The aggregate endorsement/guarantee limit was calculated for 2,500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 500% of the endorser’s/guarantor’s net equity.

Nanjing Hanhong: The aggregate endorsement/guarantee limit was RMB135 million. The limits on each endorsement/guarantee given on behalf of each party was RMB100 million.

Zhu Hai Fu Te En: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 200% of the endorser’s/guarantor’s net equity.

Su Zhou Feng Shen: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 100% of the endorser’s/guarantor’s net equity.

Wu Jiang Lian Cheng: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Su Zhou Feng Shun: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser's/guarantor's net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 100% of the aggregate endorsement/guarantee amounts.

Su Zhou Cheng Pang: The aggregate endorsement/guarantee limit was RMB180 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Tai Chang Cheng Mau: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Su Zhou Cheng Guo: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Su Zhou Chen Long: The aggregate endorsement/guarantee limit was calculated for 1,000% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 500% of the aggregate endorsement/guarantee amounts.

(Continued)

Nanjing YuHua: The aggregate endorsement/guarantee limit was calculated for 1,000% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 500% of the aggregate Nanjing YuHua: The aggregate endorsement/guarantee limit was calculated for 1,000% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 500% of the aggregate
endorsement/guarantee amounts.
Note 2: The relationship between guarantor and guarantee are as follows:
a. The Company in relation to business.
b. Subsidiaries’ common stocks which were directly owned by parent company over 50%.
c. Investees’ common stocks which were both owned by parent company and subsidiary over 50%.
d. Investees’ common stocks which were was directly or indirectly held by the Company over 90%.
e. Based on contract projects among their peers in accordance with contract provisions which need mutual insurance company.
f. Owing to the joint venture funded by the shareholders on its endorsement of its holding company.

g. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

(Concluded)

TABLE 3

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding
Company Name		 Type and Name of Marketable Securities Relationship
with the
Holding
Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage of
Ownership
(%)		 Fair Value
The Company Structured finance products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
Yuanta Securities CLN - M.J. 1st
Yuanta Securities CLN - Yeong Guan 3
KGI Securities CLN-structured products
Yuanta Securities CLN -Singtex 2nd
Yuanta Securities CLN -Center 5
KGI Securities CLN-structured products
KGI Securities CLN-structured products
Beneficiary certificates
Fuh Hwa Intelligence Fund
Taishin Dragon Fund
KGI Feng-Li Fund
KGI Kifly Strategic Fund
The RSIT Enhanced Money Market
Jih Sun Money Market Fund
Capital Money Market Fund
FSITC Taiwan Money Market
Hua Nan Phoenix Money Market
Union Money Market Fund
Taishin 1699 Money Market
Taishin Ta-Chong Money Market
Allianz Glbl Investors Taiwan Money Mkt
Nomura Taiwan Money Market
Fuh Hwa Global Balanced
Shin Kong Global Bond Fund
Yuanta Global ETFs Stable Fund of Funds
PGIM US Corporate Bond Fund USD T
Distribution		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current		 125
500
290
250
300
300
17
200
100
181
100
200
150
3,000
1,819
739
2,349
830
1,372
1,702
13,932
18,309
30,786
4,409
17,458
2,501
608
1,180
910
1,721

7		 $ 12,515
50,037
29,076
25,073
30,072
30,027
1,708
20,052
10,003
18,162
10,026
20,009
15,060
30,213
21,160
10,890
32,584
10,005
20,518
27,689
215,015
300,007
409,748
60,168
250,005
31,592
10,005
30,840
9,938
26,514
25,431		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 12,515
50,037
29,076
25,073
30,072
30,027
1,708
20,052
10,003
18,162
10,026
20,009
15,060
30,213
21,160
10,890
32,584
10,005
20,518
27,689
215,015
300,007
409,748
60,168
250,005
31,592
10,005
30,840
9,938
26,514
25,431		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 Note
Shares or
Units		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
YFC
Shinshin
Diamond Leasing		 FSITC 4-Year Maturity Emerging Market
Investment Grade Bond Fund Inc USD
Cathay Smart ETF Conservative Fund of ETFs
Taishin North American Income Trust
Taishin Strategy Senior Total Return High
Yield Bond Fund
PineBridge Emerg Mkt AsiaPac Strat Bd
Allianz Global Investors All Seasons Harvest
Fund of Bond Funds
NN (L) US Credit - X Dis(M) USD
Union Advantage Global Fixed Income
Portfolio Fund
KGI Taiwan Multi-Asset Income Fund
THE RSIT Digital Fund
Capital Conservative Allocation Fund of Funds
Capital Global Abundant Income Fund Of
Fund TWD Inc
Capital Global Biotech Fund
FSITC AI Global Precision Medicine Fund
Preferred Securities Income Fund
UPAMC GREAT CHINA Fund
Nomura Global Equity Fund
Nomura Taiwan Equity Fund
Franklin Templeton SinoAm AI Hi-Tech Fund
Common stocks
Taiwan Stock Exchange
Taiwan Aerospace Company
Yulon Finance Corporation, Preferred Shares A
Mison - Century Technology, Ltd
Bonds
Government bonds
Bonds
Government bonds
Beneficiary certificates
Union Money Market Fund
Cathay Taiwan Money Market Fund		 Subsidiary
Related party in substance		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
1,300
1,929
208

1,860
1,585

1,974
1

1,180
994
221
500

2,193
822
335
510
119
233
77
1,500
7,503
811
36,604
5,025
-
-
2,256
798		 $ 13,007
21,716
4,808

18,941
20,194

26,687
25,228

19,527
10,338
10,120
4,987

29,035
15,271
5,278
5,403
5,816
5,426
5,449
15,525

366,234

-
1,874,124

31,303
5,203
10,042
30,024
10,003		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.00
0.60
36.60
8.37
-
-
-
-		 $ 13,007
21,716
4,808
18,941
20,194
26,687
25,228
19,527
10,338
10,120
4,987
29,035
15,271
5,278
5,403
5,816
5,426
5,449
15,525
366,234
-
1,874,124
31,303
5,671
10,051
30,024
10,003		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage of
Ownership (%)		 Fair Value
H. K. Manpower
Da Wei
Yu Pong
Yu Pong
Yu Pong
China Cast Iron Pipe
Yue Sheng
Yung Hong
Yung Hong		 Beneficiary certificates
Union Money Market Fund
The RSIT Enhanced Money Market
Jih Sun Money Market Fund
Capital Money Market Fund
Beneficiary certificates
Jih Sun Money Market Fund
Structured finance products
CLN Jiajing Three
Beneficiary certificates
FSITC US Top 100 Bond Fund
FSITC Taiwan Money Market
KGI Global ESG Sustainable High
Yield Bond Fund
Taishin 1699 Money Market
KGI Feng-Li Fund
Common stocks
Yulon Motor Company
Fubon Financial Company
Beneficiary certificates
Franklin Templeton Sinoam Money
Market
The RSIT Enhanced Money Market
Fund
Common stocks
YUE KI INDUSTRIAL CO., LTD.
Beneficiary certificates
FSITC Taiwan Money Market
Cathay Asian High Yield Bond Fund
Common stocks
CARNIVAL Company
Kian-shen Company
TAC Corporation
Yulon Finance Corporation,
Preferred Shares A		 The parent company
The same ultimate
parent company
Related party in
substance
Related party in
substance
The same ultimate
parent company
The same ultimate
parent company		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - current
Financial assets at fair value through other comprehensive
income - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - current		 235
254
206
129
172
-
1,000
2,798
1,000
734
800
-
2,419
153
42
16
3,582
500
141
81
7
8,001		 $ 3,123
3,061
3,076
2,093
2,578
30,150
10,218
43,177
10,516
10,023
11,793
4
113,077
1,600
509
100
55,280
5,093
1,578
5,515
710
409,665		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.80
-
-
-
-
-
8.00		 $ 3,123
3,061
3,076
2,093
2,578
30,150
10,218
43,177
10,516
10,023
11,793
4
113,077
1,600
509
100
55,280
5,093
1,578
5,515
710
409,665		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Holding
Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage of
Ownership
(%)		 Fair Value
Yu Ching
Yu Ching
Yu Chang
Yushin
Empower
Yu Sing		 Orgchem Technology Company
T-Car Inc.
ADTO Company
ROCKER ZONE
Beneficiary certificates
Jih Sun Money Market Fund
Franklin Templeton SinoAm Fund
Common stocks
Yulon Motor Company
Yulon Management
Common stocks
Luxgen Taichung
Kai Xing Insurance Agency
Common stocks
Kai Xing Insurance Agency
Common stocks
Kai Xing Insurance Agency
Luxgen Taichung
Common stocks
Kai Xing Insurance Agency
Beneficiary certificates
Jih Sun Money Market Fund		 The parent company
Related party in substance
The same ultimate parent
company
The same ultimate parent
company		 Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current		 291
1,275
1
330
11,974
1,631
7,526
1
250
43
43
43
120
43
61,757		 $ 5,085
25,728
10
5,945
179,004
17,006
352,990
9
1,896
1,785
781
1,477
1,200
842
923,266		 -
-
-
-
-
-
0.75
0.01
3.52
6.96
6.96
6.67
1.13
6.97
-		 $ 5,085
25,728
10
5,945
179,004
17,006
352,990
9
1,896
1,785
781
1,477
1,200
842
923,266		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or
Units		 Carrying
Amount		 Percentage
of
Ownership
(%)		 Fair Value
Sin Chi
Yulon China
Luxgen
Luxgen
Yu-Jie
Su Zhou Feng Shen
Chuang Jie		 Common stocks
CARNIVAL Company
RECTRON LTD.
Yang Ming Marine Transport
Corporation
SHIN KONG SECURITY CO.,LTD.
Compal Electronics, INC
Yue Sheng Company
Beneficiary certificates
Jih Sun Money Market Fund
Beneficiary certificates
Franklin Money Fund
Common stocks
YUNG JEN INDUSTRIAL CO., LTD.
Beneficiary certificates
CTBC Hwa-win Money Market Fund
Common stocks
Yulon Finance Corporation, Preferred
Shares A
Financial products
7-Day Call Deposit
Lidodo Public Structural Deposit
Common stocks
Guang Zhou Cheng Yi
Financial products
Bank Of Nanjing Call Deposit
Fubon Bank (China) Structured Deposit
Financial products
Structural Deposit		 Related party in substance
The same ultimate parent
company
The same ultimate parent
company		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss -
non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - current
Financial assets at amortized cost - current
Financial assets at fair value through profit or loss - current		 59
16

6
50
14
2
569
12,476
75
36,012
8,000
-
-
660
-
-
-		 $ 660
403

163
1,852
291

33
8,506
130,109

2,136
400,000

409,600
65,472
144,038

4,153
375,373
43,648
130,944		 -
-
-
-
-
-
-
-
-
-
8.00
-
-
2.20
-
-
-		 $ 660
403
163
1,852
291
33
8,506
130,109
2,136
400,000
409,600
65,472
144,038
4,153
375,373
43,648
130,944		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Holding Company
Name		 Type and Name of Marketable
Securities		 Relationship with
the Holding
Company
Financial Statement Account		 December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
HangZhou Yu Zhong
Hangchow Liangrun
Hang Zhou Haitec
Company		 Financial products
Yuntong Wealth Term Structured Deposit
Financial products
Yuntong Wealth Term Structured Deposit
Financial products
Pension Financial products
Daily schedule Financial products
Income Progressive Wealth Management
Products		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current		 -
-
-
-

-		 $ 19,642
21,824
27,498
8,511
6,111		 -
-
-
-
-		 $ 19,642
21,824
27,498
8,511
6,111		 -
-
-
-
-
(Concluded)

TABLE 4

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name Type and Name of Marketable
Securities		 Financial Statement Account **Counterparty ** Relationship Beginning Balance Beginning Balance Acquisition Acquisition Disposal Disposal Disposal Disposal Ending Balance Ending Balance
Shares/Units Amount
(Note)		 Shares/Units Amount Shares/Units Amount Carrying
Value		 Gain (Loss)
on Disposal		 Shares/Units Amount
(Note)
The Company
Yulon Overseas
Yulon China
Yulon China
Holding
Yulon China (HK)
Holding
Yulon Motor
Investment
Yulon China (HK)
Holding		 KGI Securities PGN-structured
products
ML Securities PGN-Commercial
Paper-90 Days
KGI Securities CLN-structured
products
Yuanta De-Li Money Market
Fund
Jih Sun Money Market Fund
Capital Money Market Fund
Prudential Financial Money
Market
FSITC Taiwan Money Market
Hua Nan Phoenix Money Market
Union Money Market Fund
CTBC Hwa-win Money Market
Fund
Taishin 1699 Money Market
Yulon Overseas
Haitec
Luxgen
Yulon China
Yulon China Holding
Yulon China (HK)
Yulon Motor Investment
Sheng Qing
Luxgen (Hangzhou) Motor Sales		 Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 6
-
-
-
33,775
-
31,582
-
-
-
-
-
-
116,370
980,000
-
-
-
-
-
-		 $ 600,011

-

-

-

502,492

-

501,580

-

-

-

-

-
(2,540,934)
(9,314,207)

727,182
(3,199,133)
(4,784,558)
(4,784,563)

(108,285)
1,847,524
(5,022,369)
-

5

6

30,481

1,707

32,523

-

33,750

48,903

64,688

45,123

41,159

-

631,030

600,000

-

-

-

-

-

-		 $ -
500,000
600,000
500,000
25,503
527,675
-
520,000
800,000
859,739
500,000
560,156
8,507,874
7,474,000
6,000,000
8,507,874
8,578,779
8,578,779
2,603,385
2,610,874
5,897,000
6

5

6

30,481

34,110

30,821

31,582

19,818

30,594

33,902

45,123

36,750

-

-

975,000

-

-

-

-

-

-		 $ 600,379

500,721

600,568

500,263

509,297

500,637

503,262

305,437

500,668

450,631

500,614

500,786

-

-

-

-

-

-

-

-

-		 $ 600,000
500,000
600,000
500,000
506,214
500,000
500,000
304,999
500,000
450,000
500,000
500,000
-
-
-
-
-
-
-
-
-		 $ 379

721

568

263

3,083

637

3,262

437

668

631

614

786

-

-

-

-

-

-

-

-

-
-

-

-

-

1,372

1,702

-

13,932

18,309

30,786

-

4,409

-

747,400

605,000

-

-

-

-

-

-		 $ -

-

-

-

20,518

27,689

-

215,015

300,007

409,748

-

60,168
7,936,718
(1,567,265)

204,974
7,961,705
6,284,898
6,284,893
5,552,817
4,043,078

227,205

(Continued)

Company Name Type and Name of
Marketable Securities		 Financial Statement
Account		 Counterparty Relationship Beginning Balance Beginning Balance Acquisition Acquisition Disposal Disposal Disposal Disposal Ending Balance Ending Balance
Shares/Units Amount
(Note)		 Shares/Units Amount Shares/Units Amount Carrying
Value		 Gain (Loss)
on Disposal		 Shares/Units Amount
(Note)
Yulon China
Luxgen
Haitec
Car-plus Corporation
Car Plus Global
Investment (Samoa)
Corporation
Car Plus Hangzhou
Investment (Samoa)
Corporation
Luxgen		 Wen Yang
Haitec
Foxtron Vehicle
Technologies Co., Ltd.
Car Plus Global Investment
(Samoa) Co., Ltd.
Car Plus Hangzhou
Investment (Samoa) Co.,
Ltd.
Car-Plus Go Co., Ltd.
Hua Nan Phoenix Money
Market
CTBC Hwa-win Money
Market Fund		 Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Financial assets at fair value
through profit or loss -
current
Financial assets at fair value
through profit or loss -
current		 -
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-		 -
-
-
18,000
6,000
68,662
-
-		 $ 192,658

-

-

643,644

54,306

90,510

-

-
-

522,700

754,200

13,200

13,200

146,747

61,229

126,336		 $ 452,518
5,227,000
7,542,000

378,921

378,921

631,667
1,000,000
1,400,000		 -
-
-
-
-
-
61,229
90,324		 $ -
-
-
-
-
-
1,000,072
1,000,025		 $ -

-

-

-

-

-
1,000,000
1,000,000		 $ -

-

-

-

-

-

72

25		 -
522,700
754,200
31,200
19,200
215,409
-
36,012		 $ 681,189

-
7,477,802

790,208

180,060

300,100

-

400,000

(Concluded)

TABLE 5

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

ACQUISITION OF INDIVIDUAL REAL ESTATE AT PRICES OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company
Name		 Types of
Property		 Transaction
Date		 Transaction
Amount		 Payment Term Counterparty Nature of
Relationships		 Prio r Transaction of Related Counterparty Related Counterparty Price Reference Purpose of
**Acquisition **		 Other
Terms
Owner Relationships Transfer Date Amount
Haitec Building
Land		 2020/8/10
2020/8/10		 $ 359,270
1,490,730		 Asset-based
investment
Asset-based
investment		 The Company
The Company		 The parent
company
The parent
company		 -
-		 -
-		 -
-		 $ -
-		 Great Eastern Real
Estate
Appraisers,
Zhengyi Real
Estate Appraisers
Great Eastern Real
Estate
Appraisers,
Zhengyi Real
Estate Appraisers		 Asset-based
investment
Asset-based
investment		 None
None

TABLE 6

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

DISPOSAL OF INDIVIDUAL REAL ESTATE AT PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Seller **Property ** Event Date
Original
Acquisition
Date		 Carrying
Amount		 Transaction
Amount		 Collection of
Payments		 Gain (Loss) on
Disposal		 Counterparty Relationship Purpose of Disposal Price Reference Other
Terms
The Company Land
Building
Land		 2020/5/14
2020/8/10
2020/8/10		 1989/12/1
2007/11/1
1965/6/1		 $ 129,136
321,626
234,216		 $ 443,416
359,270
1,490,730		 Collected
Asset-based
investment
Asset-based
investment		 $ 314,280
20,536
(Note)
1,256,514
(Note)		 Eunition
Enterprise
Haitec
Haitec		 Other related
party
Subsidiary
Subsidiary		 Revitalising of assets
Asset-based
investment
Asset-based
investment		 Tianyi Real Estate
Appraisers
Great Eastern Real Estate
Appraisers, Zhengyi
Real Estate Appraisers
Great Eastern Real Estate
Appraisers, Zhengyi
Real Estate Appraisers		 -
-
-

Note: Gain (loss) on disposal is deferred since counterparty of transaction is a consolidated entity.

TABLE 7

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Purchasing or (Selling)
Company Name		 Related Party Relationship Tra nsaction Det ails Abnormal Transa ction Notes/Acco
(Payable) or R		 unts
eceivable		 Note
Purchase/
(Sale)		 Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total
The Company
YFC
Sin Jang
Union & NKH Auto Parts
Yueki
Y-Teks
Yue Sheng
Luxgen
Singgual
Kuen You Trading
Tian Wang
Hang Zhou Haitec Company
Chuang Jie		 Yulon Nissan
Luxgen
Yu Chang
Yuan Lon
Hui-Lian
Luxgen Taipei
Yu Sing
Yushin
Yu Tang
Luxgen Taoyuan
Empower
Cheng Long
Luxgen Taichung
Luxgen Kaohsiung
Luxgen Tainan
Ding Long
Lian Cheng
Yuan Zhi
YFC
The Company
China Motor
The Company
China Motor
Kian-shen
The Company
The Company
Hui-Fong
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
YFC
The Company
Yu Sing
Yu Chang
The Company
Hang Zhou Haitec Company		 An investee accounted for by equity method
The Company's subsidiary
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The parent company
An investee accounted for by equity method
The parent company
An investee accounted for by equity method
A related party in substance
The parent company
The parent company
A related party in substance
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The parent company
The same ultimate parent company
The same ultimate parent company
The parent company
The same ultimate parent company		 Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales		 $ (23,301,919)
(3,740,173)
(3,833,223)
(2,996,425)
(3,160,020)
(1,250,642)
(3,407,116)
(2,259,352)
(1,984,081)
(613,283)
(2,565,226)
(2,491,927)
(718,125)
(491,278)
(389,318)
(625,571)
(585,756)
(503,188)
(13,085,762)
(782,091 )
(638,455 )
(414,402)
(173,176)
(145,425)
(229,361)
(185,464)
(176,432)
(213,020)
(143,207)
(179,895)
(3,435,097)
(114,982)
(145,586)
(107,008)
(396,994)
(189,165 )		 86
14
9
7
7
3
8
5
5
1
6
6
2
1
1
1
1
1
97
47
38
49
20
17
73
49
4
5
3
4
76
24
90
75
94
90		 Within 45 days
Within 10 days
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
60 days
60 days
45 days
45 days
45 days
45 days
At sight or a month
At sight
At sight
At sight
At sight
Within 3 days
At sight or a month
At sight or a month
At sight or a month
25 days
60 days		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Because the standard and characteristic of
products are different, there is no base
to compare.
Because the standard and characteristic of
products are different, there is no base
to compare.
Bargaining
Bargaining
Bargaining
-
Bargaining
-
-
-
-
-
Bargaining
Bargaining
Bargaining
-
Because the standard and characteristic of
products are different, there is no base
to compare.		 3 days to 45 days
3 days to 10 days
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Same as general customer
Same as general customer
45 days
45 days
45 days
-
At sight or a month
At sight
At sight
At sight
At sight
Within 3 days
At sight or a month
At sight or a month
At sight or a month
-
60 days		 $ 21,295
59,931
11,203
6,721
15,340
29,652
13,448
6,681
1,964
8,538
6,475
10,068
8,297
3,070
3,567
2,262
809
1,428
-
181,595
151,185
86,182
45,762
67,950
49,366
37,916
-
752
532
775
40,472
22,460
13,469
6,822
47,628
-		 23
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
37
24
13
19
55
52
-
2
1
2
85
22
95
83
61
-

(Continued)

Purchasing or (Selling)
Company Name		 Related Party Relationship Transaction Details Transaction Details Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts
(Payable) or Receivable		 Notes/Accounts
(Payable) or Receivable		 Note
Purchase/
(Sale)		 Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total
The Company
YFC
Yu Sing
Yushin
Yu Chang
Empower
Luxgen
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Tainan
Luxgen Kaohsiung
Hang Zhou Haitec
Company		 Union & NKH Auto Parts
Yueki
Nissan Motor Co., Ltd.
Y-Teks
Yue Sheng
Dongfeng Yulon
Singgual
China Ogihara
Yuen-jin
Taiway
Hang Zhou Haitec Company
Yulon Nissan
Luxgen
Sin Jang
YFC
Yulon Nissan
Kuen You Trading
YFC
Yulon Nissan
YFC
Yulon Nissan
Tian Wang
YFC
Yulon Nissan
The Company
YFC
Luxgen
YFC
Luxgen
YFC
Luxgen
YFC
YFC
Chuang Jie		 The Company's subsidiary
The Company's subsidiary
A related party in substance
The Company's subsidiary
The Company's subsidiary
An investee accounted for by equity method
The Company's subsidiary
An investee accounted for by equity method
A related party in substance
A related party in substance
The Company's subsidiary
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company		 Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase		 $ 782,091
414,402
8,840,735
229,361
185,464
134,966
114,982
147,668
114,280
147,668
396,994
25,778,687
3,435,097
13,085,762
3,407,116
356,625
145,586
2,259,352
287,826
3,833,223
444,912
107,008
2,565,226
351,733
3,740,173
1,250,642
213,020
613,283
143,207
718,125
179,895
389,318
491,278
189,165		 4
2
43
1
1
1
1
1
1
1
2
61
9
29
86
9
4
84
11
86
10
2
38
5
100
80
14
75
18
79
20
73
80
54		 60 days
45 days
12 days after bill of lading
45 days
At sight or a month
60 days after monthly closing
At sight or a month
45 days after monthly closing
45 days after monthly closing
45 days after monthly closing
25 days
Within 3 days
Within 3 days
Payment on the day
Receipt of payment on the day
Receipt of payment on the day
60 days
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Within 10 days
Receipt of payment on the day
At sight
Receipt of payment on the day
At sight
Receipt of payment on the day
At sight
Receipt of payment on the day
Receipt of payment on the day
60 days		 Because the standard and characteristic
of products are different, there is no
base to compare.
Bargaining
-
-
Bargaining
-
Bargaining
Bargaining
Bargaining
Bargaining
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Because the standard and characteristic
of products are different, there is no
base to compare.		 -
45 days
12 days after bill of lading
-
At sight or a month
60 days after monthly closing
At sight or a month
45 days after monthly closing
45 days after monthly closing
45 days after monthly closing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3 days to 10 days
-
-
-
-
-
-
-
-
60 days		 $ (181,595 )
(86,182)
(971,470)
(49,366)
(37,916)
(546)
(22,460)
(46,870)
-
(29,117)
(47,628)
(229,334)
(40,472)
-
(13,448)
(25,756)
(13,469)
(6,681)
(12,929)
(11,203)
(21,255)
(6,822)
(6,475)
(7,763)
(59,931)
(29,652)
(752)
(8,538)
(532)
(8,297)
(775)
(3,567)
(3,070)
-		 6
3
32
2
1
-
1
2
-
1
2
50
9
-
10
19
10
4
7
14
26
8
4
5
100
57
1
36
2
45
4
26
20
-

Note: The balance of Accounts receivable $358,920 thousand less allowance for uncollectible accounts $358,920 thousand to Dongfeng Yulon is $0.

(Concluded)

TABLE 8

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name Related Party Relationship Ending Balance Turnover
Rate		 Overdue Overdue Amounts
Received in
Subsequent
Period		 Allowance for
Impairment
Loss
Amount Action Taken
The Company
Union & NKH Auto Parts
Luxgen
Yueki
TAC Leasing (Suzhou)
Yulon Motor Finance
Shinshin
LUXGEN (hangzhou) Motor Sales
Yulon Motor Investment
Union & NKH Auto Parts
Haitec
Hangchow Y-Teks
Hang Zhou Haitec Company
Hangchow Yue Wan
Haitec
Yulon Motor Investment		 Luxgen
Dongfeng Yulon
The Company
Dongfeng Yulon
Hangchow Yue Wan
Dongfeng Yulon
Dong Feng Yulon Sales Company
YES Energy Service
Dong Feng Yulon Sales Company
Dongfeng Yulon
Dongfeng Yulon
Hangchow Liangrun
China Motor
Dongfeng Yulon
Luxgen
Dongfeng Yulon
Dongfeng Yulon
Dongfeng Yulon
Yulon Motor Investment
Hang Zhou Haitec Company		 Subsidiary
An investee accounted for by equity method
The parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company		 $ 147,454 (Note 1)
358,919
181,595
172,800
196,750 (Note 2)
285,806
136,532
264,219
678,729 (Note 3)
6,548,440 (Note 4)
405,477 (Note 5)
201,683 (Note 6)
151,317 (Note 7)
7,510,233 (Note 8)
192,559 (Note 9)
105,398 (Note 10)
531,224 (Note 10)
108,325 (Note 10)
103,422 (Note 11)
236,916 (Note 11)		 26.94
-
5.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
142,490
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
Depends on
status of fund
Depends on
status of fund
Depends on
status of fund
-
-
-
-
-
-
-
-
-
-
-
-		 $ 99,353
-
-
-
-
-
-
515
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
358,919
-
172,800
6,972

285,806

136,532

1,362
678,729
6,542,628
405,477
-
-
7,510,233
132,623
105,398
531,224
107,600
103,422
-

(Continued)

188
YULON MOTOR
Company Name Related Party Relationship Ending Balance Turnover
Rate		 Overdue Amounts
Received in
Subsequent
Period		 Allowance for
Impairment
Loss
Amount Action Taken
Sheng Qing
Yu-Jie
Yu-Hsin Intl
Yu-Hsin Intl HK
Ke Yu
Qing Tai
Mei De
Nan Jing Yu Hua
Chuang Jie New Energy Vehicle
Hangchow Liangrun
Yulon China		 Yu-Jie
Xiamen Young Chang
Yulon Motor Investment
Nanjing Hanhong
Dongfeng Yulon
Hang Zhou Haitec Company
Dongfeng Yulon
Yu-Hsin Intl HK
Hangchow Y-Teks
Tai Feng
Sheng Qing
Dong Tai
Shi Cheng
Nanjing Hanhong
Hang Zhou Haitec Company
Dongfeng Yulon
Wen Yang		 The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company		 $ 174,742 (Note 11)
167,789 (Note 11)
889,952 (Note 11)
154,077 (Note 11)
157,133 (Note 11)
100,383 (Note 11)
218,650 (Note 11)
113,920 (Note 11)
113,920 (Note 11)
207,206 (Note 11)
213,002 (Note 11)
109,120 (Note 11)
130,944 (Note 11)
118,382 (Note 11)
100,908 (Note 11)
156,694 (Note 11)
603,075 (Note 11)		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
11,645
157,133
-
218,650
-
-
-
-
-
-
-
-
156,694
-

Note 1: The receivables comprised accounts and notes receivable of $59,931 thousand and other receivables of $87,523 thousand. Note 2: The receivables comprised accounts and notes receivable of $138,588 thousand and other receivables of $58,162 thousand. Note 3: The receivables comprised accounts and notes receivable of $6,940 thousand and other receivables of $671,789 thousand. Note 4: The receivables comprised accounts and notes receivable of $2,930 thousand and other receivables of $6,545,510 thousand. Note 5: The receivables comprised accounts and notes receivable of $91,117 thousand and other receivables of $314,360 thousand. Note 6: The receivables comprised accounts and notes receivable of $294 thousand and other receivables of $201,389 thousand. Note 7: The receivables comprised accounts and notes receivable of $151,185 thousand and other receivables of $132 thousand. Note 8: The receivables comprised accounts and notes receivable of $6,851,396 thousand and other receivables of $658,837 thousand. Note 9: The receivables comprised accounts and notes receivable of $19,226 5thousand and other receivables of $294 thousand. Note 10: The receivables comprises account receivables. Note 11: The receivables comprises other receivables.

TABLE 9

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES ON WHICH THE CORPORATION EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor
Company		 Investee Company Location Main Businesses and Products Investmen t Amount Balance a s of Decembe r 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits (Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
The Company Yulon Nissan
China Motor
YFC
Yueki
Yue Sheng
China Cast Iron Pipe
Union & NKH Auto Parts
Uni-calsonic
Yu Chang
China Ogihara
Yuan Lon
Yu Ching
Yu Pong
Yung Hong
Yushin
China Engine
Cheng Long
Yu Tang
ROC-Spicer
Car-plus Corporation
Empower
Chan Yun
Sin Chi
Yu Sing
Y-Teks
Yulon Overseas
Tokio Marine Newa
Insurance
Haitec
Hui-Lian
DXMEDIA
Luxgen
Yulon Management
Yulon Construction
Hong Kong-Spicer
Advance Power Machinery		 Miaoli, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
Kaohsiung, Taiwan
Taoyuan, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taichung, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taichung, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taoyuan, Taiwan
B.V.I.
Taipei, Taiwan
New Taipei City, Taiwan
Changhua, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Hong Kong
Miaoli, Taiwan		 Sales of cars
Manufacturing and sales of cars
Sale and lease of cars and parts
Manufacturing and sale of car components
Car manufacture and furnishing; manufacture,
installation and sale of car parts
Metal casting and related business
Manufacturing and sale of springs for various motor
vehicles and sale of nonmotorized vehicles
Production and sales of various kinds of radiators, heat
transfer apparatus, geysers, water tank and car parts
Sale, maintenance and repair of cars and parts
Design, manufacturing and sales of cars and various
kinds of molds, fixtures, stamping parts and
inspection implements
Sale, maintenance and repair of cars and parts
Import and export and sale of cars and parts
Yulon basketball team management and related services
Investments
Sale, maintenance and repair of cars and parts
Manufacturing of car engines and parts
Sale, maintenance and repair of cars and parts
Sale, maintenance and repair of cars and parts
Manufacturing and sales of cars and parts
Sales and lease of cars
Sale, maintenance and repair of cars and parts
Wholesale and retail of information software
General advertising planning services
Sale, maintenance and repair of cars and parts
Manufacturing and furnishing, cars and the import and
export of, and serving as sales agent for, car parts
Investments
Property insurance
Product design
Sale, maintenance and repair of cars and parts
Publication
Sales and producing of cars and related parts
Investment advisor and temporary labor services
Construction industry
Investment
Sales and producing of cars and related parts		 $ 7,062,225
810,409
512,150
169,978
238,872
24,850
183,692
96,449
114,096
280,071
84,405
1,077,221
1,122,659
537,311
132,986
320,000
51,677
71,166
476,740
106,372
29,987
40,680
871,157
325,199
61,307
32,321,598
796,956
2,047,449
74,366
-
20,840,000
32,991
3,034,485
56,475
10,787		 $ 7,062,225
810,409
512,150
169,978
238,872
24,850
183,692
96,449
114,096
280,071
84,405
1,077,221
1,122,659
537,311
132,986
320,000
51,677
71,166
476,740
106,372
29,987
40,680
871,157
325,199
61,307
23,813,725
796,956
2,047,449
74,366
10,000
14,840,000
32,991
3,034,485
56,475
-		 143,500
44,592
152,044
12,767
23,061
25
21,729
5,983
13,999
25,470
7,999
72,691
28,470
77,622
19,999
32,000
11,491
7,117
102
3,254
5,999
16,664
108,000
17,999
602
1,083,098
52,010
747,400
6,116
-
605,000
3,299
122,100
1,585
500		 47.83
8.05
45.75
65.58
80.07
77.66
25.01
30.68
64.99
37.76
20.00
60.00
100.00
100.00
99.99
18.95
27.00
20.33
20.46
3.46
20.00
87.71
100.00
99.99
34.00
100.00
17.39
58.84
20.34
-
100.00
32.99
100.00
20.50
100.00		 $ 10,305,719
4,090,118
5,211,313
399,358
359,474
67,110
587,055
127,517
74,902
512,082
105,927
522,967
841,467
628,734
211,693
154,861
226,747
109,692
204,539
70,929
73,206
33,927
1,229,079
130,781
307,654
7,936,718
1,672,821
(1,567,265)
66,406
-
204,974
30,232
4,546,029
50,557
11,520		 $ 6,540,938
3,277,320
3,139,301
(36,575)
(1,246)
12,353
119
(6,256)
29,254
131,073
3,543
88,545
35,129
27,181
3,046
29,898
131,052
12,653
139,675
245,067
10,648
(1,926)
103,608
(9,431)
83,931
2,621,431
860,719
(3,873,434)
21,639
(3,995)
(2,465,119)
5,176
178,025
(9,679)
10,380		 $ 3,251,759
257,087
1,328,915
(20,955)
(688)
9,593
(589)
(2,212)
8,331
55,112
6,416
53,127
36,028
27,181
(23,465)
6,865
33,588
1,851
28,661
8,479
(4,990)
(1,689)
103,608
(11,028)
29,751
1,899,933
149,679
(2,477,765)
2,428
(799)
(2,463,134)
(3,547)
169,721
(1,984)
733		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Investor Company Investee Company Location Main Businesses and Products Investmen t Amount Balance a s of Decembe r 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits (Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
YFC
Shinshin
YES Energy Service
Car-plus Corporation
Da-Wei
Diamond Leasing
Sin Jang
Car-Plus Samoa
TAC Global		 Car-plus Corporation
Shinshin
TAC Global
Tokio Marine Newa Insurance
Empower
Yu Rich
Yulon Finance Philippines
Investment (Samoa) Co., Ltd.
Sin Gan
Shinshin Samoa
YES Energy Service
Power Engineering
Diamond Leasing
Car-Plus Samoa
Da-Wei
Hong Shou Culture
Da Teng
Da-Chuan
Da-Mu
Da-Chung
Yong-Xiang
Guo-Ma
Jin-Yu
Zhong-Xing
Li-Yang
He-Yang
Jia-Yu
Tian-Yang
H. K. Manpower
Sinjang International Investment
(Samoa) Co., Ltd.
Car-Plus China
Car-Plus Shanghai
Car-Plus Hangzhou Investment
(Samoa) Co., Ltd.
Car-Plus China
Car-Plus Shanghai
Car-Plus Hangzhou Investment
(Samoa) Co., Ltd.
Yu Rong International
Sinjang International Investment
(Samoa) Co., Ltd.		 Taipei, Taiwan
Taipei, Taiwan
Samoa
Taipei, Taiwan
Taichung, Taiwan
Taipei, Taiwan
Samoa
Taipei, Taiwan
Samoa
New Taipei City, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Samoa
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa		 Car lease and trade
Installment financing services for cars and trucks
Shareholding company
Property insurance
Retail of cars and related parts
Installment loans of consumer goods and
wholesale of cars and parts
Shareholding company
Wholesale and retail of information software
Shareholding company
Energy Technical Services
Wholesale and retail sale of batteries
Car lease and trade
Shareholding company
brokerage of electric vehicles
Publication
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Temporary labor services
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company		 $ 757,288
419,808
3,342,688
58,070
48,843
1,160,662
437,490
315,157
389,077
246,407
2,000
85,000
941,992
40,000
11,881
7,028
1,125
1,575
900
3,810
2,286
3,048
3,810
5,381
2,032
1,778
2,159
10,000
42,790
193,004
185,183
563,805
128,647
123,455
375,906
2,698,460
16,220		 $ 757,288
419,808
3,089,942
58,070
48,843
1,160,662
437,490
315,157
389,077
131,407
2,000
85,000
563,071
20,000
11,881
7,028
1,125
1,575
900
-
-
-
-
-
-
-
-
10,000
42,790
193,004
185,183
184,884
128,647
123,455
123,160
2,698,460
16,220		 64,570
221,833
108,833
5,807
8,100
138,209
15,000
21,004
12,000
29,000
200
8,500
31,200
4,000
4,050
600
300
600
300
300
400
300
350
900
600
300
600
1,000
1,337
6,000
6,000
19,200
4,000
4,000
12,800
87,496
537		 68.57
100.00
100.00
1.94
27.00
100.00
100.00
73.26
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
71.34
60.00
60.00
60.00
40.00
40.00
40.00
100.00
28.66		 $ 1,411,342
3,781,840
4,370,654
185,430
104,402
2,155,384
264,695
341,489
(32,547)
215,314
(10,714)
110,727
790,208
43,418
15,361
7,587
2,112
2,286
1,766
3,868
2,318
3,181
3,910
5,454
2,050
1,805
2,213
20,371
22,734
363,135
246,871
180,060
242,090
164,581
120,040
3,841,319
9,133		 $ 245,067
591,295
88,675
860,719
10,648
481,496
(147,846)
116,541
(226,022)
(8,407)
2,621
15,927
(243,120)
(2,100)
4,865
(2,645)
(244)
219
158
58
32
133
100
73
18
27
54
4,594
546
(13,467)
32,464
(424,217)
(13,467)
32,464
(424,217)
250,607
546		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Investor Company Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits
(Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
Yulon Finance Philippines
Investment (Samoa) Co.,
Ltd.
Yulon Finance Philippines
Corporation
Singan
Yu Pong
Yue Sheng
Yung Hong
Yu Ching
Yueki
Yu Chang
Yushin
Empower
Sin Chi
Yu Sing		 Yulon Finance Philippines
Corporation
Yulon Finance Philippines
Corporation
Hsiang Shuo
Singgual
Sin Jang
Ching-Tong
Hong Shou Culture
China Motor
Yu Ching
Y-Teks
China Motor
Tokio Marine Newa Insurance
Yulon Nissan
Chinh-Ling
Yulon Management
China Motor
Uni-calsonic
Yue Ki Samoa
Yue Ki HK
Tian Wang
Yu Pool
Luxgen Taoyuan
Yu Shin Investment
Chunmin
Hong Yen
Yu Ming Insurance
Minxiang Leasing Company
Yulon Nissan
Yu Chia
Yulon TOBE
Ding Long
Kuen You Trading		 Samoa
Philippine
New Taipei City, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Tainan, Taiwan
Taipei, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taoyuan, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan
Taoyuan, Taiwan
Miaoli, Taiwan
Samoa
Hong Kong
Kaohsiung, Taiwan
Miaoli, Taiwan
Taoyuan, Taiwan
Samoa
Taichung, Taiwan
Samoa
Taichung, Taiwan
Taichung, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan		 Shareholding company
Financing and leasing of cars and commercial vehicles,
and car purchases and loans to car dealers for car
purchases
Towing
Sale of cars and parts
Sale and brokerage of secondhand vehicles
Sales maintenance and repair of cars and parts
Publication
Manufacturing and sales of cars
Import and export and sale of cars and parts
Manufacturing and furnishing, cars and the import and
export of, and serving as sales agent for, car parts
Manufacturing and sales of cars
Property insurance
Sales of cars
Product design
Investment advisor and temporary labor services
Manufacturing and sales of cars
Production and sales of various kinds of radiators, heat
transfer apparatus, geysers, water tank and car parts
Investment
Investment
Secondhand cars and car related products
Supply of and providing services on information
software and retail trade of spare parts of vehicles
Sales, maintenance and repair of cars and related
products
Investment
Comprehensive retail of car parts
Investment
Property insurance
Lease of cars and related services
Sales of cars
Sales, maintenance and repair of heavy vehicles and
related products
Sale, maintenance and repair of cars and parts
Sales, maintenance and repair of cars and parts
Sale, maintenance and repair of cars and parts		 $ 437,490
437,490
128,400
130,591
518,754
75,578
-
35,269
682,685
25,510
193,869
55,467
336,923
36,098
9
243
17,328
123,058
330,094
17,000
7,000
12,250
98,111
8,000
47,082
5,000
30,000
311,853
84,000
27,996
37,790
10,000		 $ 437,490
437,490
128,400
130,591
518,754
75,578
-
35,269
682,685
25,510
193,869
55,467
336,923
36,098
9
243
17,328
123,058
330,094
17,000
7,000
12,250
46,331
8,000
47,082
5,000
-
311,853
84,000
27,996
37,790
10,000		 15,000
7,500
10,000
13,000
42,824
6,746
-
454
48,461
212
3,998
3,500
3,500
5,000
1
11
800
4,126
10,600
1,700
1,000
2,100
350
800
4,576
500
3,000
3,050
50,000
28,080
3,779
1,000		 100.00
100.00
100.00
100.00
100.00
100.00
-
0.08
40.00
11.99
0.72
1.17
1.17
100.00
0.01
-
4.10
100.00
100.00
100.00
100.00
20.00
100.00
100.00
100.00
100.00
100.00
1.02
100.00
100.00
37.79
100.00		 $ 264,695
264,695
236,438
174,788
539,926
33,525
-
22,975
584,238
112,403
29,730
112,161
248,679
-
9
583
17,328
448,493
37,179
28,715
51,352
18,028
58,505
11,367
41,830
4,590
30,004
216,528
29,146
220,235
27,944
13,811		 $ (147,846)
(147,846)
71,546
5,036
77,964
(19,964)
-
3,277,320
88,545
83,931
3,277,320
860,719
6,540,938
13
5,176
3,277,320
(6,256)
(2,108)
(10,237)
7,442
6,727
15,425
(17,005)
190
(11,646)
(339)
-
6,540,938
154
(420)
(12,878)
1,603		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Investor Company Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits
(Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
Y-Teks
Yu-Hsin Intl
Union & NKH Auto Parts
Luxgen
Yulon Construction
Haitec
Hua-Chung Overseas
Investment Co., Ltd
Yulon Overseas
Yulon Philippine
Yulon China
Yulon China Holding		 Yu-Hsin Intl
China Motor
Yu-Hsin Intl HK
China Motor
Uni Investment
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Tainan
Luxgen Kaohsiung
Luxgen Overseas Holdings
Singan
Haitec
China Motor
Yufong Property Management
SinYi Co., Ltd.
Hua-Chung Overseas Investment Co., Ltd
Foxtron Vehicle Technologies Corporation
Haitec China Investment
Haitec Japan
Yulon Philippine
Yulon China
UMPI & SCIC
NPI
Qing Yi
Wen Yang
Tai Xin
Yulon China (Hong Kong) Investment
Limited
Yulon China Holding
Feng Hua
Yulon China (HK) Holding		 B.V.I.
Taoyuan, Taiwan
Hong Kong
Taoyuan, Taiwan
B.V.I.
Taipei, Taiwan
Taoyuan, Taiwan
Taichung, Taiwan
Tainan, Taiwan
Kaohsiung, Taiwan
Singapore
New Taipei City, Taiwan
New Taipei City, Taiwan
Taoyuan, Taiwan
New Taipei City, Taiwan
New Taipei City, Taiwan
B.V.I.
New Taipei City, Taiwan
Hong Kong
Japan
Cayman
B.V.I.
Philippine
Philippine
Samoa
Samoa
Samoa
Hong Kong
Cayman
Hong Kong
Hong Kong		 Investments
Manufacturing and sales of cars
Investments
Manufacturing and sales of cars
Investments
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Investments
Wholesale and retail of information software
Product design
Manufacturing and sales of cars
Construction greening industry
Wholesale and retail of cars and parts
Investments
Product design
Investments
Product design of cars
Investments
Investments
Manufacturing of cars and factory lease
Sale, maintenance and repair of cars and parts
Investments
Investments
Investments
Investments
Investments
Investments
Investments		 $ 65,854
265
311,194
256
289,287
184,999
44,329
103,599
98,897
65,998
-
81,191
5,227,000
1,497
24,990
500
490,393
7,542,000
461,709
-
1,017,726
30,221,151
831,445
66,990
436,427
844,432
-
7,754,130
20,439,529
79,744
20,439,529		 $ 65,854
265
311,194
256
289,287
184,999
44,329
103,599
98,897
65,998
1,300,595
81,191
-
1,497
24,990
500
490,393
-

461,709
28,608
1,071,328
23,211,593
875,236
70,518
919,606
482,678
726,152

8,162,529
12,844,035
83,944
12,844,035		 3,347
11
12,391
26
8,403
18,500
6,299
10,360
9,890
6,600
-
5,670
522,700
13
2,499
50
5,465
754,200
6,328
-
35,741
1,050,171
10,914
12
-
31,450
-
-
702,043
-
-		 66.67
-
100.00
-
100.00
99.99
59.99
97.73
94.18
92.94
-
19.78
41.15
-
99.96
100.00
100.00
49.00
100.00
-
100.00
100.00
100.00
24.50
100.00
100.00
-
100.00
100.00
40.00
100.00		 $ 928,291
572
320,473
1,295
1,895,272
132,047
53,710
116,049
102,498
50,034
-
92,182
-
1,496
49,542
8,896
(398,033)
7,431,785
(398,320)
-
97,375
7,961,705
95,118
-
78,097
784,834
-
14,926
6,284,898
142,037
6,284,893		 $ 90,054
3,277,320
(24,806)
3,277,320
4,245
(49,538)
15,425
13,131
5,753
(16,681)
4,388
116,541
(3,873,434)
3,277,320
6,090
(785)
(108,920)
(223,010)
(127,818)
19,208
1,617
2,620,017
2,421
(2,433)
(17,266)
(20,158)
1,271
14,298
2,582,206
27,953
2,582,206		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

TABLE 10

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company Main Businesses and Products Paid-in
Capital		 Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020
Note

Outward		 Inward
Xiamen Young Chang
Ke Yu
Tai Feng
Qing Tai
Dongfeng Yulon
Su Zhou Chen Long
Yulon Motor Investment
Luxgen (Hangzhou) Motor Sales
Yulon Motor Finance (China)
Hang Zhou Jian Tai
Hang Zhou Chun Yu
Hang Zhou Xian Bo
Hang Zhou Yong Ren
Hang Zhou Yo Zhan
Hang Zhou Haitec Company		 Cars, electronics, textiles and related business
investment consulting services; advanced
technology, products and equipment import
consulting
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Manufacturing of key car components, electric
cars and related parts
Sale, maintenance and repair of cars and parts
Investment, shareholding and related business
Sales of cars and car parts
Car purchases and loans to car dealers for car
purchases
Tailpipe, catalyzer assembling, chassises,
connection arms, crossrails of engines and
other stamping and welding parts
Tire monitors, blue tooth communication
device, keyless entry system
Manufacturing and design of fixtures and jigs
of vehicles, mechanical and electrical
products; inner and external fittings and
furnishing
Manufacturing of machinery, car accessory and
seat parts
Manufacturing of car models and related parts,
fixtures and jigs, stamping, and related metal
products
Product design		 $ 67,539
785,798
498,520
524,934
15,466,923
192,743
8,247,492
12,862,466
4,364,800
139,641
59,650
75,016
109,068
346,126
449,428		 b.
b.
b.
b.
b.
b.
b.
b.
a.
b.
b.
b.
b.
b.
b.		 $ 55,763
723,154
445,203
460,193
7,969,003
83,944
1,745,943
7,031,809
2,191,725
2,998
2,998
2,998
2,249
2,998
-		 $ -
-
-
-
-
-
-
5,897,000
-
-
-
-
-
-
-		 $ -

-

-

-

-
-
-
-

-

-

-

-

-

-
-		 $ 55,763

723,154

445,203

460,193

7,969,003
83,944
1,745,943
12,928,809

2,191,725

2,998

2,998

2,998

2,249

2,998
-		 $ (50,746)
1,400
(1,186)
(20,330)
(6,818,549)
27,954
3,218,531
(594,813)
(89,115)
-
-
-
2,003
-
(132,085)		 100.00
100.00
100.00
100.00
50.00
40.00
100.00
100.00
73.42
-
-
-
2.59
2.10
100.00		 $ (50,746)
1,400
(1,186)
(20,330)
-
11,181
3,218,531
(470,669)
(339,976)
-
-
-
-
-
(132,085)		 $ 491,891
655,665
358,953
369,058
-
355,094
5,552,817
227,205
3,205,745
-
-
-
2,136
-
(411,813)		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, b.
2, b.
2, b.
2, b.
2, c.
2, b.
2, b.
2, a.
2, b.
-
-
-
-
-
2, a.

(Continued)

Investee Company Main Businesses and Products Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Fujian Spicer
Shenyang Spicer
Hui Zhou Deng Feng Yi Jing
Hangchow Yue Wan
Hangchow Y-Teks
Changzhou Y-TEKS
Liu Zhou Yu Xin Fang Sheng
Guang Zhou He Xi
Fuzhou Lianghong
Hangchow Liangrun
Guang Zhou Ri Zheng Spring
Yu-Jie
Car-Plus (Suzhou)
Car-Plus Leasing (Shanghai)
Car-Plus Go Co., Ltd.
TAC Leasing (Suzhou)
TAC Finance Company
Zhe Jiang Cheng Yi Company
Hangzhou Cheng-Yi-Jun
Zhejiang Cheng-Yi Auction
Su Zhou Yu Guo
Shanghai Yu Guo
Hefei YuGuo
Qingdao YuGuo		 Production of car key parts, drive axle
assemblies and parts
Manufacturing and sales of automotive drive
shafts, mechanical drive shafts and parts
Manufacturing of car parts
Manufacturing of car parts
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing of car seats
Manufacturing of car seats
Manufacturing of vibration damper springs
Construction industry
Lease of cars and related services
Lease of cars and related services
Lease of cars and related services
Equipment and cars leasing business
Equipment and cars leasing business
Equipment and cars leasing business
Secondhand vehicle consulting service and
vehicle agent
Secondhand vehicle authenticate and
evaluation service
Car purchases and loans to car dealers for car
purchases
Sales of cars
Sales of cars
Sales of cars		 $ 893,937
375,053
654,720
591,789
305,061
50,825
142,400
400,738
453,783
647,067
761,840
2,182,400
284,800
284,800
911,360
2,150,126
854,400
87,296
6,547
8,730
-
8,730
-
-		 a.
a.
b.
b.
b.
b.
b.
b.
b.
b.
b.
a.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ 228,152
55,124
-
267,362
44,327
-
-
-
-
142,431
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 228,152
55,124
-
267,362
44,327
-
-
-
-
142,431
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 255,856
(12,413)
(3,962)
(18,317)
(21,935)
(7,344)
34,713
593,722
38,451
(29,524)
24,099
1,800
(13,454)
32,480
(424,218)
476,627
(563,770)
(31,955)
(3,138)
(873)
(1,276)
(261)
(119)
(253)		 20.50
14.30
22.30
80.75
33.39
14.82
5.00
6.00
16.67
40.38
10.00
100.00
39.20
39.20
37.12
45.75
56.60
56.60
56.60
56.60
-
56.60
-
-		 $ 52,451
(1,775)
(884)
(14,791)
(7,324)
(1,088)
1,736
35,623
6,410
(11,922)
2,410
1,800
(5,274)
12,731
(157,476)
218,057
(319,094)
(18,087)
(1,776)
(494)
-
(148)
(24)
(51)		 $ 274,846
342,301
434,008
41,053
26,956
65,541
132,606
917,456
509,240
8,322
1,248,236
2,015,423
604,141
411,448
300,100
3,912,432
(117,506)
18,182
2,538
3,277
-
4,944
-
-		 $ -

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-

-
-
-
-		 2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, b.
2, b.
2, b.
2, b.
2, a.
2, b.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
Investee Company Main Businesses and Products Paid-in
Capital		 Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment
Gain (Loss)
(Note 2)		 Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Master Good Car (Wuhan)
Shang Hai Jing-Huei
Dong Yu Tech. Company
Fu Jian Yu Xin
Ning Bo Yu Cheng
Shanghai Yuming
Ka Shing Yu Da
Dong Feng Yulon Sales Company
Chuang Jie New Energy Vehicle
Sheng Qing
Mei De
Shi Cheng
Jin Ce
Yi Ding
Dong Tai
Gao Te
Shen Jun Yu Peng
Su Zhou Feng Shen
Guang Zhou Yuan Du
Zhu Hai Fu Te En
Nanjing Hanhong
Wuhan Yu Hsin
HangZhou Yu Zhong
Jiangmen Junxing
Jiangmen Yuli
He-Shan Li-Sheng		 Sales of cars
Sales of car parts
Sales of car parts
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars and car parts
Manufacturing of key car components, electric
cars and related parts
Investments
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Investments
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Trading
Sales of cars
Sales of cars
Sales of cars		 $ 8,730
49,231
65,472
229,483
197,620
325,177
81,164
-
3,448,192
5,410,916
356,991
325,229
88,328
247,874
331,381
260,447
-
215,542
157,166
154,269
581,720
439,999
44,904
90,717
45,813
-		 b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ -
-
-
-
-
-
-
-
3,432,301
469,733
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
2,610,874
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-

-
-

-

-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -

-

-

-

-

-

-

-

3,432,301

3,080,606

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 $ (11,631)
(15,464)
-
(15,897)
(15,238)
(60,253)
(31,731)
(1,298)
(573,192)
(231,634)
1,726
(19,850)
(1,537)
(2,326)
(22,060)
(2,639)
111
150,845
(35,259)
848
(93,050)
34,441
728
(21,739)
(12,424)
(51)		 56.60
53.30
42.99
100.00
100.00
66.99
66.99
50.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.00
40.00
51.00
100.00
100.00
100.00
100.00
60.00
60.00
60.00		 $ (6,583)
(8,242)
-
(15,897)
(15,238)
(40,361)
(21,255)
(649)
(573,192)
(231,634)
1,726
(19,850)
(1,537)
(2,326)
(22,060)
(2,639)
72
60,338
(17,982)
848
(93,050)
34,441
728
(13,043)
(7,454)
(31)		 $ (12,028)
25,824
18,112
24,411
14,954
(31,097)
(20,266)
-
2,842,148
4,043,078
321,782
152,111

70,570

183,540
154,811
207,816
-
330,097
63,252
242,534
285,894
393,718
67,899
12,610
11,706
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, c.
2, c.
2, c.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
(Continued)
YULON MOTOR Investee Company Main Businesses and
Products		 Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Guang Zhou Yuan Zhi
Qingdao Yuanhuang
Hang Zhou Hua Zhi
Chang Sha Yu Lu
Hang Zhou Tang Yu
Hang Zhou Chien Yu
Zhuhai Yuhsin
Shenzhen Yu Zhi
Xiao Gan Yu Feng
Su Zhou Feng Shun
Suzhou Yueshun
Su Chou Cheng Pin
Wu Jiang Lian Cheng
Su Zhou Cheng Li
Hang Zhou hsiao Yu
Nan Jing Yu Shang
Hang Zhou Hua You
Su Zhou Cheng Pang
Nan Jing Yu Hua
Su Zhou Cheng Guo
Su Zhou Cheng Hung
Tai Chang Cheng Mau
An Hui Min Tung
An Ching Tsai Tung
An Ching Ling Tung
Tung Ling Kuo Tung
Ho Fei Chun Hui
Zi Bo Yu An
Fu Zhou Yu Xin		 Sales of cars
Sales of cars
Sales of cars
Sales of cars
Investments
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars		 $ -
222,010
89,809
141,314
44,904
44,904
22,452
88,552
141,684
112,898
44,904
181,435
44,904
67,811
44,904
35,924
35,924
44,904
134,714
89,461
45,813
45,813
45,813
120,752
-
74,904
-
68,475
51,912		 b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ (8,317)
(23,157)
(107,286)
(47,487)
(46)
(69)
(14,912)
(10,120)
28,137
71,898
(4,921)
5,816
23,872
6,698
(39)
(48,656)
(43,517)
10,056
(29,683)
(8,861)
844
12,321
(28,454)
(6,565)
6,034
(7,880)
(1,546)
(7,174)
(9,189)		 51.00
51.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
40.00
40.00
40.00
40.00
40.00
99.00
100.00
80.00
40.00
100.00
40.00
40.00
40.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00		 $ (4,242)
(11,810)
(85,829)
(47,487)
(46)
(69)
(14,912)
(10,120)
28,137
28,759
(1,968)
2,326
9,549
2,679
(38)
(48,656)
(34,813)
4,022
(29,683)
(3,544)
337
4,929
(28,454)
(6,565)
6,034
(7,880)
(1,546)
(7,174)
(9,189)		 $ -
(28,518)
(213,378)
4,697
42,845
39,178
12,431
11,073
224,831
241,909
34,159
192,951
85,016
53,517
39,116
5,718
(219,641)
58,236
130,529
37,917
42,941
73,975
23,557
(150)
-
38,694
-
(2,113)
42,825		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
(Continued)
Accumulated Investment in Mainland China
as of December 31, 2020
Accumulated Outward Remittance for
Investment from Taiwan as of
December 31, 2020		 Investment Amounts Authorized by
Investment Commission, MOEA		 Upper Limit on the Amount of Investment
Stipulated by Investment Commission, MOEA
Yulon Motor Company Ltd. $33,868,281 $35,674,593 $38,925,192

  • Note 1: Method of investment have following type:

  • a. Direct investment in Mainland China.

  • b. Indirect investment in the Company of Mainland China through a third place.

  • c. Other

  • Note 2: a. If it is in preparation, there is no investment gains and losses, should be noted.

  • b. The amounts of investment gain (loss) was recognized on following bases:

    • 1) Based on the financial statements audited by a ROC CPA firm cooperating with an international CPA firm

    • 2) Based on the financial statements audited by the auditor of parent company.

    • 3) Other

Note 3: The upper limit on investment was calculated in accordance with the regulations of the Investment Commission of the Ministry of Economic Affairs for 60% of the net equity or consolidated net equity.

(Concluded)

TABLE 11

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

BUSINESS RELATIONSHIP AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
0 The Company Luxgen
Luxgen
YFC
Yu Ching
Yulon Construction
Yu Sing
Haitec
Luxgen
Luxgen Taipei
Luxgen
Yushin
Yu Sing
Yu Chang
Empower
Yushin
Yu Sing
Yu Chang
Empower
YFC
The Company
Yushin
Yu Sing
Yu Chang
Empower
Singan
Yushin
Yu Sing
Yu Chang
Empower
The Company
The Company
The Company		 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Unrealized gain on transactions with associates
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Long term investment
Unrealized gain on transactions with associates
Unrealized gain on transactions with associates		 $ 59,931
87,522
14,836
13,389
65,404
17,302
71,195
3,785,338
16,098
19,224
1,940,921
2,919,978
3,251,083
2,321,610
25,729
56,862
86,821
28,504
66,739
40,617
205,468
260,152
295,364
261,040
55,524
13,389
18,061
33,971
17,565
15,381
15,381
13,610		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
5
-
-
2
4
4
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 YFC Yu Chang
Yu Sing
Luxgen Taipei
Shinshin
Yu Rich		 3
3
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties		 11,203
13,448
29,652
23,276
16,975		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
(Continued)
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
1 YFC Yu Chang
Empower
Yu Rich
Hsiang Shuo
Luxgen
Sin Jang		 3
3
3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 $ 14,927
11,182
14,970
16,438
12,233
56,968		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
2 Yue Sheng The Company
The Company
Singgual		 2
2
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 37,916
185,464
10,728		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
3 Yueki The Company
Hangchow Yue Wan
Hangchow Yue Wan
The Company
Shinshin
Luxgen		 2
3
3
2
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net		 86,182
131,616
58,162
414,402
22,588
49,841		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
1
-
-
4 Yu Chang YFC
Tian Wang
Car-plus Corporation		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 29,383
32,982
43,108		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
5 Singan The Company
The Company
YFC
Hsiang Shuo
Sin Jang		 2
2
3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 39,541
104,528
12,804
13,508
13,913		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
6 Singgual The Company
Luxgen
Singan
Ching-Tong
The Company
Luxgen
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung		 2
3
3
3
2
3
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 22,460
17,743
20,135
10,057
114,982
16,461
18,108
10,954
12,947		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
-
-
7 Yu Pool Yushin
Yushin		 3
3		 Notes and trade receivables, net
Operating revenue, net		 18,571
91,453		 Based on regular terms
Based on regular terms		 -
-
8 Yu Sing Kuen You Trading
Car-plus Corporation
Kuen You Trading
Luxgen Taipei
Kuen You Trading		 3
3
3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 15,458
252,352
18,553
12,446
29,052		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
9 Y-Teks The Company
The Company
Yueki		 2
2
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 $ 49,366
229,361
10,129		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
10 Union & NKH Auto Parts The Company
Diamond Leasing
Uni Investment
Fuzhou Lianghong
Hangchow Liangrun
The Company		 2
3
3
3
3
2		 Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Operating revenue, net		 181,595
21,804
21,603
17,350
201,389
782,241		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
1
11 Car-plus Corporation Diamond Leasing
Yu Sing
Hsiang Shuo		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 81,341
16,098
27,380		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
12 Nanjing Hanhong Nan Jing Yu Shang 3 Operating revenue, net 12,824 Based on regular terms -
13 Luxgen YFC
The Company
YFC
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Kaohsiung
The Company
YFC		 3
2
3
3
3
3
3
2
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 40,472
21,655
3,437,799
213,020
143,207
130,642
77,992
32,855
16,000		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
4
-
-
-
-
-
-
14 Luxgen Taipei Luxgen
Car-plus Corporation
Luxgen		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 19,927
98,035
41,310		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
15 Luxgen Taoyuan Car-plus Corporation
Luxgen		 3
3		 Operating revenue, net
Operating revenue, net		 19,506
19,535		 Based on regular terms
Based on regular terms		 -
-
18 Yulon Motor Investment Hang Zhou Hua You
Hang Zhou Haitec Company
Sheng Qing		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Nonoperating revenue and expense		 97,612
236,916
48,853		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
20 TAC Finance Company Master Good Car (Wuhan) Automobile Sales Co.,
Ltd.		 3 Notes and trade receivables, net 28,063 Based on regular terms -
22 Luxgen (Hangzhou) Motor Sales Car-Plus Go Co., Ltd.
Luxgen		 3
3		 Notes and trade receivables, net
Other receivables from related parties		 31,045
34,078		 Based on regular terms
Based on regular terms		 -
-
23 Kuen You Trading Yu Sing
Yu Sing		 3
3		 Notes and trade receivables, net
Operating revenue, net		 13,469
145,586		 Based on regular terms
Based on regular terms		 -
-
(Continued)
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
24 Chuang Jie The Company
Hang Zhou Haitec Company
The Company
Hang Zhou Haitec Company		 2
3
2
3		 Notes and trade receivables, net
Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 $ 21,194
100,908
37,765
189,751		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
25 Yu-Hsin Intl Yu-Hsin Intl HK 3 Other receivables from related parties 113,920 Based on regular terms -
26 Yulon China Wen Yang
Sheng Qing		 3
3		 Other receivables from related parties
Nonoperating revenue and expense		 603,075
20,061		 Based on regular terms
Based on regular terms		 -
-
27 Yue Ki Samoa Yue Ki HK 3 Other receivables from related parties 14,241 Based on regular terms -
29 Ke Yu Tai Feng
Yi Ding
Sheng Qing		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 207,206
21,824
213,002		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
30 Tai Feng Yi Ding
Dong Tai		 3
3		 Other receivables from related parties
Other receivables from related parties		 13,094
21,824		 Based on regular terms
Based on regular terms		 -
-
31 Qing Tai Shi Cheng
Dong Tai		 3
3		 Other receivables from related parties
Other receivables from related parties		 17,459
109,120		 Based on regular terms
Based on regular terms		 -
-
32 Mei De Shi Cheng 3 Other receivables from related parties 130,944 Based on regular terms -
33 Jin Ce Yi Ding 3 Other receivables from related parties 17,459 Based on regular terms -
34 Sheng Qing Xiamen Young Chang
Su Zhou Feng Shen
Guang Zhou Yuan Du
Zhu Hai Fu Te En
Nanjing Hanhong
Wuhan Yu Hsin
Jiangmen Junxing
Qingdao Yuanhuang
Hang Zhou Hua Zhi
Xiao Gan Yu Feng
Yulon Motor Investment
Nan Jing Yu Hua
Ka Shing Yu Da
Yu-Jie
Hang Zhou Haitec Company
Yulon China
Yulon Motor Investment		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Nonoperating revenue and expense
Nonoperating revenue and expense		 167,789
52,378
26,618
69,837
142,710
73,329
43,873
90,774
47,821
52,146
893,731
53,797
15,755
174,742
100,880
24,183
45,555		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
35 Su Zhou Feng Shen Su Zhou Feng Shun
Su Chou Cheng Pin
Su Zhou Cheng Hung
Su Zhou Cheng Guo
Tai Chang Cheng Mau
Su Zhou Cheng Pang		 3
3
3
3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 $ 39,283
24,006
17,459
21,824
39,283
15,277		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
36 Guang Zhou Yuan Du Qingdao Yuanhuang
Guang Zhou Yuan Zhi		 3
3		 Other receivables from related parties
Other receivables from related parties		 59,798
12,951		 Based on regular terms
Based on regular terms		 -
-
38 HangZhou Yu Zhong Hang Zhou hsiao Yu
Hang Zhou Hua You
Yulon Motor Investment		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 17,459
17,896
11,785		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
39 Hang Zhou Tang Yu Yulon Motor Investment 3 Other receivables from related parties 38,410 Based on regular terms -
40 Wu Jiang Lian Cheng Su Zhou Feng Shen
Su Zhou Feng Shun
Su Zhou Chen Long
Su Chou Cheng Pin
Su Zhou Cheng Pang
Su Zhou Cheng Guo
Tai Chang Cheng Mau		 3
3
3
3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 40,117
24,613
24,155
11,048
48,250
27,210
10,946		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
41 Hsiang Shuo Singan
YFC
Car-plus Corporation
Luxgen		 3
3
3
3		 Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net		 90,604
15,752
17,672
15,505		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
42 Yu-Hsin Intl HK Hangchow Y-Teks 3 Other receivables from related parties 113,920 Based on regular terms -
43 Sin Jang Singan
YFC		 3
3		 Other receivables from related parties
Operating revenue, net		 211,405
66,633		 Based on regular terms
Based on regular terms		 -
-
46 Su Zhou Chen Long Su Zhou Cheng Guo
Tai Chang Cheng Mau
Suzhou Yueshun		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Operating revenue, net		 21,824
24,006
11,731		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
48 Nan Jing Yu Hua Nanjing Hanhong 3 Other receivables from related parties 118,382 Based on regular terms -
49 Yulon Construction The Company
The Company
Yufong Property Management
The Company		 2
2
3
2		 Guarantee deposits
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense		 40,180
32,037
11,153
12,783		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
50 Luxgen Taichung YFC
Car-plus Corporation		 3
3		 Other current assets
Operating revenue, net		 15,590
24,660		 Based on regular terms
Based on regular terms		 -
-
(Continued)
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
52 Yu Pong The Company 2 Operating revenue, net $ 20,571 Based on regular terms -
53 Yushin Car-plus Corporation
Yu Pool		 3
3		 Operating revenue, net
Nonoperating revenue and expense		 18,187
14,908		 Based on regular terms
Based on regular terms		 -
-
54 Empower Yu Chang
Car-plus Corporation
Luxgen Taichung
Minxiang Leasing Company		 3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 16,250
17,126
10,338
20,190		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
55 Tian Wang Yu Chang 3 Operating revenue, net 107,008 Based on regular terms -
57 H. K. Manpower Car-plus Corporation 3 Operating revenue, net 22,351 Based on regular terms -
59 Luxgen Kaohsiung Car-plus Corporation
Luxgen		 3
3		 Operating revenue, net
Operating revenue, net		 19,300
12,879		 Based on regular terms
Based on regular terms		 -
-
60 Hangchow Liangrun Fuzhou Lianghong
Fuzhou Lianghong
Union & NKH Auto Parts
Fuzhou Lianghong		 3
3
3
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net		 31,576
22,138
14,315
17,026		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
61 Yufong Property Management The Company 2 Operating revenue, net 15,800 Based on regular terms -
62 Hangchow Y-Teks Y-Teks
Hang Zhou Haitec Company		 3
3		 Operating revenue, net
Operating revenue, net		 15,941
16,046		 Based on regular terms
Based on regular terms		 -
-
63 Car-Plus (Suzhou) Car-Plus Go Co., Ltd.
TAC Leasing (Suzhou)		 3
3		 Notes and trade receivables, net
Operating revenue, net		 10,144
12,208		 Based on regular terms
Based on regular terms		 -
-
65 Suzhou Yueshun Su Chou Cheng Pin 3 Other receivables from related parties 24,006 Based on regular terms -
66 Hong Yen Empower
Shanghai Yuming		 3
3		 Other receivables from related parties
Other current assets		 23,716
11,130		 Based on regular terms
Based on regular terms		 -
-
67 Shinshin Yulon Energy
Yulon Energy
Yulon Energy		 3
3
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net		 264,219
206,915
16,172		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
68 Fuzhou Lianghong Hangchow Liangrun
Hangchow Liangrun		 3
3		 Notes and trade receivables, net
Operating revenue, net		 18,983
12,344		 Based on regular terms
Based on regular terms		 -
-
69 Su Zhou Feng Shun Su Zhou Cheng Li 3 Operating revenue, net 19,102 Based on regular terms -
75 Yu Rich YFC 3 Operating revenue, net 14,970 Based on regular terms -
77 Yulon Energy Shinshin
Shinshin		 3
3		 Notes and trade receivables, net
Operating revenue, net		 31,744
46,501		 Based on regular terms
Based on regular terms		 -
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
79 Haitec Luxgen
Luxgen		 3
3		 Notes and trade receivables, net
Operating revenue, net		 $ 59,642
567,134		 Based on regular terms
Based on regular terms		 -
1%
80 Hang Zhou Haitec Company The Company
Haitec
The Company
Haitec
Luxgen
Chuang Jie		 2
3
2
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 47,628
30,470
396,994
113,816
315,493
27,547		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
82 Hang Zhou hsiao Yu Hang Zhou Haitec Company 3 Other receivables from related parties 56,602 Based on regular terms -
83 Jiangmen Junxing Jiangmen Yuli 3 Other receivables from related parties 39,432 Based on regular terms -
85 Fu Jian Yu Xin Fu Zhou Yu Xin 3 Other receivables from related parties 21,875 Based on regular terms -
91 Yulon China (HK) Investment Haitec 3 Nonoperating revenue and expense 13,945 Based on regular terms -
92 Advance Power Machinery The Company
The Company		 2
2		 Notes and trade receivables, net
Operating revenue, net		 11,317
31,369		 Based on regular terms
Based on regular terms		 -
-
93 Zhe Jiang Cheng Yi Company Yulon Motor Finance (China) 3 Operating revenue, net 13,598 Based on regular terms -

Note 1: From the parent company to a subsidiary.

Note 2: From a subsidiary to the parent company.

Note 3: Between subsidiaries.

(Concluded)

YULON MOTOR CO., LTD

Annual Report 2020

TABLE 12

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2020

Name of Major Shareholder Shares Shares
Number of
Shares		 Percentage of
Ownership (%)
Tai-Yuen Textiles
China Motor
Yen Kai-Tai		 181,128,973
166,714,441
101,801,954		 18.11
16.67
10.18

Annual Report 2020 205

Financial Information

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2020 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we have not prepared a separate set of consolidated financial statements of affiliates.

Very truly yours, YULON MOTOR COMPANY LTD. By:

==> picture [45 x 45] intentionally omitted <==

YEN CHEN LI-LIEN Chairman

March 25, 2021

206 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

INDEPENDENT AUDITORS’ REPORT

Yulon Motor Company Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Yulon Motor Company Ltd. (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2020 and 2019, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit of the consolidated financial statements for the year ended December 31, 2020 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. We conducted our audit of the consolidated financial statements for the year ended December 31, 2019 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission of the Republic of China on February 25, 2020, and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2020 are stated as follows:

Annual Report 2020 207

Financial Information

Impairment Assessment of Luxgen’s Vehicle Model Development Cost and Molds

(Please refer to Notes 4, 5, 12, 14, 21 and 30.)

Luxgen Co., Ltd., a subsidiary, identifies different models of vehicles as separate cash-generating units, and tests them for impairment if there are indicators of impairment annually. Because impairment assessment is an area of professional judgment, we determined that impairment assessment of the vehicle model development cost and molds equipment is a key audit matter.

The main audit procedures we have performed in respect of the key audit matter stated above about impairment assessment of the vehicle model development cost and molds equipment are as follows:

  1. We understood the process and basis for the estimated growth rate and profitability of the sales forecast of the Group.

  2. We reviewed whether the estimated operating cash flow considered the latest operating performance and industry overview.

  3. We assessed the evaluation model used by the management.

  4. We assessed the weighted average cost of capital (WACC) used by the management in calculating the recoverable amount in accordance with the valuation model, including risk-free rate, volatility and risk premium. We verified that the WACC was consistent with the Group status and the industry.

Estimated Impairment of Trade Receivable

As described in Note 5, the determination of estimated impairment of trade receivable of the Group’s horizontal segments subsidiary - Yulon Finance Co., Ltd. - takes into consideration the present value of estimated future cash flows based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. When the actual future cash inflows are less than expected, a material impairment loss may arise. The key assumptions and inputs used involved significant management judgment and estimation uncertainty; thus, this is determined as a key audit matter.

Our audit procedures included the following:

  1. We understood the policies on impairment of trade receivable and assessed the reasonableness of impairment of receivables by performing inquiry, inspection and reperformance of related internal controls.

  2. We involved our internal IT specialists in testing Yulon Finance Co., Ltd.’s system that generated related documents used by management in the evaluation and determination of default rate and expected loss rate; the tests verified the correctness of the assumptions used in the determination of default rate and expected loss rate.

  3. We recalculated the impairment based on the impairment policy of the Group.

208 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Other Matter

As described in Note 32, Dongfeng Yulon Motor Sales Co., Ltd., a subsidiary, was adjudged by a court as bankrupt on November 9, 2020 and the court appointed a trustee on November 16, 2020. The Company has lost control over the subsidiary since then. Therefore, the assets and liabilities of Dongfeng Yulon Motor Sales Co., Ltd. were not included in the consolidated financial statements for the year ended December 31, 2020.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

Annual Report 2020 209

Financial Information

  1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

  2. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

  3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

  4. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2020 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

210 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The engagement partners on the audits resulting in this independent auditors’ report are Li-Wen Kuo and Yu-Wei Fan.

Deloitte & Touche Taipei, Taiwan Republic of China

March 30, 2021

Notice to Readers

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

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

Annual Report 2020 211

Financial Information

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)
Financial assets at fair value through profit or loss - current (Notes 4 and
7)
Financial assets at fair value through other comprehensive income -
current (Notes 4 and 8)
Derivative financial assets for hedging - current (Note 11)
Financial assets at amortized cost - current (Notes 4, 9 and 10)
Notes and trade receivable (Notes 4 and 12)
Notes and trade receivable from related parties (Notes 4, 12 and 35)
Finance lease receivables (Notes 4 and 13)
Other receivables (Notes 4 and 14)
Inventories (Notes 4, 15, 29 and 36)
Other current assets (Note 35)
Incremental costs of obtaining a contract - current (Notes 28 and 35)
Total current assets
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4
and 7)
Financial assets at fair value through other comprehensive income -
non-current (Notes 4 and 8)
Financial assets at amortized cost - non-current (Notes 4, 9 and 10)
Investments accounted for using the equity method (Notes 4 and 17)
Property, plant and equipment (Notes 4, 18, 29 and 36)
Right-of-use assets (Note 20)
Investment properties (Notes 4, 19 and 29)
Goodwill (Note 4)
Vehicle model development cost (Notes 4 and 21)
Other intangible assets (Notes 4 and 21)
Deferred tax assets (Notes 4 and 30)
Long-term finance lease receivables (Notes 4 and 13)
Refundable deposits
Other non-current assets
Total non-current assets
TOTAL		 2020
Amount
%
$ 20,036,878
7
4,315,296
1
113,077
-
1,594
-
4,386,706
1
141,722,783
47
457,018
-
22,838,380
7
1,818,711
1
11,997,687
4
4,876,780
2
2,621,758

1

215,186,668
71

2,136
-
438,922
-
624,140
-
28,968,473
10
35,542,275
12
3,190,202
1
11,832,290
4
882
-
328,319
-
475,147
-
2,471,273
1
1,074,998
1
311,288
-
875,733

-

86,136,078
29

$ 301,322,746
100
 2019












Amount
%
$ 26,147,935
8
3,122,549
1
123,754
-
232
-
9,863,773
3
134,239,270 43
2,624,469
1
27,576,053
9
3,094,985
1
16,573,045
5
6,015,310
2
2,562,866

1
231,944,241
74
2,249
-
486,268
-
464,750
-
21,095,613
7
36,381,174 12
3,629,258
1
8,324,573
3
882
-
6,309,074
2
460,577
-
1,855,003
1
1,330,231
-
380,281
-
1,227,369

-
81,947,302
26
$ 313,891,543
100

(Continued)

212 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

ASSETS
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term bills payable (Note 22)
Short-term borrowings (Note 22)
Financial liabilities for hedging - current (Notes 4 and 11)
Financial liabilities at amortized cost - current (Notes 4 and 9)
Notes and trade payables
Notes and trade payable to related parties (Note 35)
Other payables (Notes 21, 23 and 35)
Current tax liabilities (Notes 4 and 30)
Provisions - current (Notes 4 and 25)
Lease liabilities - current (Notes 4 and 20)
Current portion of bonds payable (Notes 4 and 23)
Current portion of long-term borrowings (Note 22)
Other current liabilities (Note 24)
Total current liabilities
NON-CURRENT LIABILITIES
Bonds payable (Notes 4 and 23)
Long-term borrowings (Note 22)
Provisions - non-current (Notes 4 and 25)
Deferred tax liabilities (Notes 4 and 30)
Lease liabilities - non-current (Notes 4 and 20)
Net defined benefit liabilities - non-current (Notes 4 and 26)
Other non-current liabilities (Note 24)
Total non-current liabilities
Total liabilities
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 27)
Share capital
Ordinary shares
Capital surplus
Retained earnings
Legal reserve
Special reserve
Unappropriated earnings
Total retained earnings
Other equity
Exchange differences on translation of foreign operations
Unrealized gain on financial assets at fair value through other
comprehensive income
Gain (loss) on hedging instrument
Total other equity
Treasury shares
Total equity attributable to owners of the Company
NON-CONTROLLING INTERESTS (Note 27)
Total equity
TOTAL		 2020
Amount
%
$ 106,544,979
35
45,307,626
15
1,541
-
-
-
4,655,668
2
1,817,464
1
12,327,544
4
948,109
-
159,271
-
604,309
-
14,121,823
5
1,480,632
-
13,040,517
4

201,009,483
66

15,300,000
5
12,337,066
4
641,441
-
3,942,336
2
1,742,404
1
725,107
-
749,589
-

35,437,943
12

236,447,426
78

10,000,000
3

6,563,888
2

8,281,822
3
24,228,565
8
(363,310)
-

32,147,077
11

(1,118,814)
-
1,522,597
-
24
-

403,807
-

(376,304)
-

48,738,468
16
16,136,852
6

64,875,320
22

$ 301,322,746
100
 2019















Amount
%
$ 98,483,301
32
78,122,271
25
241
-
1,834,953
1
4,966,357
2
8,649,402
3
10,005,161
3
677,559
-
223,494
-
788,127
-
10,340,447
3
3,549,488
1
12,962,448
4
230,603,249
74
15,300,000
5
2,780,352
1
724,016
-
4,045,315
1
1,951,982
1
1,001,238
-
404,240
-
26,207,143
8
256,810,392
82
15,729,199
5
6,566,495
2
8,281,822
3
39,373,565
13
(23,880,202)
(8)
23,775,185
8
(1,255,680 )
-
1,397,517
-
(4)
-
141,833
-
(376,304)
-
45,836,408
15
11,244,743
3
57,081,151
18
$ 313,891,543
100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ report dated March 30, 2021)

(Concluded)

Annual Report 2020 213

Financial Information

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 28, 29 and 35)
Sales
Investment income
Rental revenue
Service revenue
Other operating revenue
Total operating revenue
OPERATING COSTS (Notes 4, 15, 18, 21, 26, 29
and 35)
Cost of goods sold
Investment cost
Rental cost
Service cost
Other operating cost
Total operating costs
GROSS PROFIT
REALIZED (UNREALIZED) GAIN ON
TRANSACTIONS WITH ASSOCIATES AND
JOINT VENTURES
REALIZED GROSS PROFIT
OPERATING EXPENSES (Notes 4, 12, 14, 26, 29
and 35)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit loss
Total operating expenses
PROFIT (LOSS) FROM OPERATIONS
NON-OPERATING INCOME
Other income (Notes 4 and 29)
Other gains and losses (Notes 4 and 29)		 2020
Amount
%
$ 53,786,768
65
103,725
-
8,177,344
10
3,311,791
4
17,217,886
21
82,597,514
100
48,541,228
59
-
-
6,541,523
8
2,161,336
2
6,735,840
8
63,979,927
77
18,617,587
23
12,018
-
18,629,605
23
7,681,741
9
5,738,720
7
1,364,120
2
5,063,486
6
19,848,067
24
(1,218,462)
(1)
1,010,417
1
2,423,204
3		 2019
Amount
%
$ 58,150,540
68
19,741
-
8,219,150
10
3,573,043
4
15,616,436
18
85,578,910
100
49,412,806
57
316
-
6,708,816
8
2,399,963
3
21,336,100
25
79,858,001
93
5,720,909
7
4,364
-
5,725,273
7
8,018,465
9
6,465,023
8
803,572
1
21,185,752
25
36,472,812
43
(30,747,539)
(36)
1,267,328
1
266,775
-
(Continued)

214 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Finance costs (Notes 4 and 29)
Share of profit of associates and joint ventures
accounted for by the equity method (Notes 4
and 17)
Interest income (Notes 4 and 29)
Total non-operating income
PROFIT (LOSS) BEFORE INCOME TAX
INCOME TAX EXPENSE (Notes 4 and 30)
NET PROFIT (LOSS) FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of defined benefit plans
Unrealized gain on investments in equity
instruments at fair value through other
comprehensive income
Share of the other comprehensive income of
associates and joint ventures accounted for
by the equity method
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translation of
foreign operations
Loss on hedging instruments not subject to
basis adjustment
Share of the other comprehensive income
(loss) of associates and joint ventures
accounted for by the equity method
Other comprehensive income (loss) for the
year, net of income tax
TOTAL COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR		 2020
Amount
%
$ (821,441)
(1)
4,031,743
5
298,087
-
6,942,010
8
5,723,548
7
883,986
1
4,839,562
6
(7,250)
-
7,373
-
70,111
-
70,234
-
163,749
-
61
-
6,945
-
170,755
-
240,989
-
$ 5,080,551
6		 2019
Amount
%
$ (1,122,664)
(1)
6,300,049
7
598,903
1
7,310,391
8
(23,437,148)
(28)
1,096,329
1
(24,533,477)
(29)
(98,701)
-
197,175
-
106,811
-
205,285
-
(242,559)
-
(451)
-
(267,007)
-
(510,017)
-
(304,732)
-
$ (24,838,209)
(29)
(Continued)

Annual Report 2020 215

Financial Information

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET PROFIT (LOSS) ATTRIBUTABLE TO:
Owners of the Company
Common control of predecessor rights
Non-controlling interests
TOTAL COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO:
Owners of the Company
Common control of predecessor rights
Non-controlling interests
EARNINGS (LOSS) PER SHARE (Note 31)
Basic
Diluted		 2020
Amount
%
$ 2,739,210
3
-
-
2,100,352
3
$ 4,839,562
6
$ 2,949,501
3
-
-
2,131,050
3
$ 5,080,551
6
$2.80
$2.80		 2019
Amount
%
$ (24,465,408)
(29)
(564,712)
(1)
496,643
1
$ (24,533,477)
(29)
$ (24,603,974)
(29)
(564,712)
(1)
330,477
1
$ (24,838,209)
(29)
$(26.13)
$(26.13)

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

(With Deloitte & Touche auditors’ report dated March 30, 2021)

(Concluded)

216 YULON MOTOR

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

BALANCE, JANUARY 1, 2019

Appropriation of the 2018 earnings
Legal reserve
Special reserve
Cash dividends distributed by the Company (NT$0.67 per share)
Cash dividends distributed by subsidiaries
Change in equity from investments in associates and joint ventures
accounted for by using equity method
Change in equity from the differences between the consideration
received or paid and the carrying amount of the subsidiaries' net
assets during disposal or acquisition
Change in non-controlling interests
Net profit for the year ended December 31, 2019
Other comprehensive income for the year ended December 31, 2019,
net of income tax

Total comprehensive income for the year ended December 31, 2019
Associates disposed the investments in equity instruments designed
as at fair value through other comprehensive income

BALANCE AT JANUARY 1, 2020
Capital reduction for covering accumulated deficit
Appropriation of the 2019 earnings
Special reserve
Cash dividends distributed by subsidiaries
Change in equity from investments in associates and joint ventures
accounted for by using equity method
Change in equity from the differences between the consideration
received or paid and the carrying amount of the subsidiaries' net
assets during disposal or acquisition
Net profit for the year ended December 31, 2020
Other comprehensive income for the year ended December 31, 2020,
net of income tax

Total comprehensive income for the year ended December 31, 2020
Disposed the investments in equity instruments designed as at fair
value through other comprehensive income
Associates disposed the investments in equity instruments designed
as at fair value through other comprehensive income
Effect of deconsolidation of subsidiary

BALANCE, DECEMBER 31, 2020
 Equ ity Attributable to Ow ners of the Company C
Total

$ 71,737,128
-
-
(1,053,856 )
-
(130,607 )
(112,283 )
-
(24,465,408 )
(138,566)
(24,603,974)
-
45,836,408
-
-
-
(7,134 )
(40,307 )
2,739,210
210,291
2,949,501
-
-
-
$ 48,738,468		 ommon Control
of Predecessor
Rights
N
$ 564,712
-
-
-
-
-
-
-
(564,712)
-
(564,712)
-
-
-
-
-
-
-
-
-
-
-
-
-
$ -		 on-controlling
Interests
$ 12,122,134
-
-
-
(1,106,576)
-
196,389
(297,681)
496,643
(166,166)
330,477
-
11,244,743
-
-
(1,293,234)
-
-
2,100,352
30,698
2,131,050
-
-
4,054,293
$ 16,136,852		 Total Equity
$ 84,423,974
-
-
(1,053,856 )
(1,106,576 )
(130,607 )
84,106
(297,681 )
(24,533,477 )
(304,732)
(24,838,209)
-
57,081,151
-
-
(1,293,234 )
(7,134 )
(40,307 )
4,839,562
240,989
5,080,551
-
-
4,054,293
$ 64,875,320







Share Capital
C
$ 15,729,199

-
-
-
-
-
-
-
-
-
-
-
15,729,199
(5,729,199 )
-
-
-
-
-
-
-
-
-
-
$ 10,000,000
 apital Surplus
$ 6,597,972
-
-
-
-
(31,477)
-
-
-
-
-
-
6,566,495
-
-
-
(2,607)
-
-
-
-
-
-
-
$ 6,563,888		 Retained Earnings Other Equity Gain (Loss) on
Hedging
Instruments
$ 252
-
-
-
-
-
-
-
-
(256)
(256)
-
(4)
-
-
-
-
-
-
28
28
-
-
-
$ 24		 Treasury
Shares
$ (376,304 )
-
-
-
-
-
-
-
-
-
-
-
(376,304 )
-
-
-
-
-
-
-
-
-
-
-
$ (376,304)
Fo Exchange
Differences on
U
Fi

Translation of
reign Operations

$ (919,398)
-
-
-
-
-
-
-
-
(336,282)
(336,282)
-
(1,255,680)
-
-
-
-
-
-
136,866
136,866
-
-
-
$ (1,118,814)		 nrealized Gain on
nancial Assets at
Fair Value
Through Other

Comprehensive
Income
$ 1,466,521
-
-
-
-
-
-
-
-

285,397

285,397

(354,401)
1,397,517
-
-
-
-
-
-

82,760

82,760
42,851
(531)

-
$ 1,522,597
Legal Reserve
S
$ 8,078,119
203,703
-
-
-
-
-
-
-
-
-
-
8,281,822
-
-
-
-
-
-
-
-
-
-
-
$ 8,281,822		 pecial Reserve
U
$ 38,373,565
-
1,000,000
-
-
-
-
-
-
-
-
-
39,373,565
-
(15,145,000)
-
-
-
-
-
-
-
-
-
$ 24,228,565		 nappropriated
Earnings
$ 2,787,202
(203,703)
(1,000,000)
(1,053,856)
-
(99,130)
(112,283)
-
(24,465,408)
(87,425)
(24,552,833)
354,401
(23,880,202)
5,729,199
15,145,000
-
(4,527)
(40,307)
2,739,210
(9,363)
2,729,847
(42,851)
531
-
$ (363,310)

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

(With Deloitte & Touche auditors’ report dated March 30, 2021)

Financial Information

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Interest income
Depreciation expense
Expected credit loss
Gain on deconsolidation of subsidiary
Share of profit of associates and joint ventures accounted for by
the equity method
Finance costs
Impairment loss recognized on non-financial assets
Amortization expense
Loss (gain) on disposal of property, plant and equipment
Net gain on fair value change of financial assets and liabilities
designated as at fair value through profit or loss
Net loss (gain) on foreign currency exchange
Recognition (reversal) of provisions
Loss on disposal of intangible assets
Dividend income
Loss (gain) on modification of lease
Loss on disposal of investment properties
Realized gain on the transactions with associates and joint
ventures accounted for by the equity method
Impairment loss recognized on financial assets
Gain on investments accounted for using the equity method
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through
profit or loss
Notes and trade receivable
Other receivables
Inventories
Other current assets
Finance lease receivables
Available-for-operating-lease assets
Incremental cost of obtaining a contract
Other operating assets
Notes and trade payable
Other payables
Provisions
Guarantee deposits received
Other current liabilities
Accrued pension liabilities
Other operating liabilities
Cash used in operations
Interest received		 2020
$ 5,723,548
(15,923,588)
8,091,102
5,063,486
(4,040,489)
(4,031,743)
3,797,371
2,790,669
2,677,899
(681,587)
(38,706)
(34,609)
28,542
28,111
(26,680)
18,964
14,143
(2,568)
738
(422)
(1,270,134)
(10,988,873)
138,074
1,149,905
771,276
4,283,112
(5,316,321)
(2,436,781)
325,259
379,548
4,091,532
(175,341)
(463,295)
432,232
(283,381)
(183,250)

(6,092,257)
15,748,753		 2019
$ (23,437,148)

(14,833,597)

7,829,520

21,185,752

-

(6,300,049)

4,259,798

15,906,408

2,440,283

26,171

(42,819)

392,212

(18,131)

5,765

(40,366)

(43,745)

-

(4,364)

-

(3,150,981)

(2,444,466)

(20,969,812)

(2,986,874)

1,435,159

238,090

(4,849,395)

(5,902,672)

(2,641,734)

(863,775)

(162,611)

169,807

(191,926)

1,140,787

(745,673)

(104,668)

50,183

(34,654,871)

15,059,719
(Continued)

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YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

Interest paid
Income tax paid
Net cash generated from (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at amortized cost
Purchase of financial assets at amortized cost
Dividends received
Payments for property, plant and equipment
Payments for investment properties
Proceeds from disposal of property, plant and equipment
Payments for intangible assets
Proceeds from financial assets at fair value through other
comprehensive income
Decrease (increase) in refundable deposits
Proceeds from investment properties
Proceeds from disposal of subsidiaries
Purchase of financial assets at fair value through other
comprehensive income
Increase in prepayments for leases
Proceeds from disposal of associates
Proceeds from the capital reduction of investments accounted for
using the equity method
Payment for right-of-use assets
Net cash generated from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term bills payable
Repayment of short-term bills payable
Repayment of short-term borrowings
Proceeds from short-term borrowings
Repayment of long-term borrowings
Proceeds from long-term borrowings
Issuance of bonds payable
Repayment of bonds
Dividends paid
Proceeds of financial liabilities at amortized cost
Repayment of financial liabilities measured at cost
Payment for principal portion of lease liabilities
Increase (decrease) in guarantee deposits received
Change in non-controlling interests
Net cash generated from (used in) financing activities		 2020
$ (4,184,571)
(1,306,714)

4,165,211

9,536,783
(4,072,570)
3,733,337
(3,235,982)
(1,798,478)
1,536,937
(324,791)
66,551
56,943
38,598
21,837
(1,642)
262
199
-
-

5,557,984

324,967,931
(316,838,794)
(139,897,554)
117,023,460
(28,495,067)
25,676,238
8,100,976
(4,350,000)
(1,214,015)
-
(753,630)
(653,403)
648,705
(40,307)

(15,825,460)
 2019
$ (3,815,630)

(1,488,363)

(24,899,145)

3,229,295

(9,068,553)

3,447,908

(4,851,284)

(307,270)

1,112,448

(1,711,579)

397,883

(74,027)

-

9,147

(2,539)

-

11,159,039

668,883

(12,931)

3,996,420

285,247,376
(268,628,212)
(158,616,675)

157,502,187

(22,233,460)

22,816,461

3,892,150

-

(2,152,500)

697,703

-

(818,040)

(153,522)

(303,398)

17,250,070
(Continued)

Annual Report 2020 219

Financial Information

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH HELD IN FOREIGN CURRENCIES
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		 2020
$ (8,792)

(6,111,057)
26,147,935

$ 20,036,878
 2019
$ (100,631)

(3,753,286)

29,901,221
$ 26,147,935

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ report dated March 30, 2021) (Concluded)

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YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Yulon Motor Company Ltd. (the “Company”) was incorporated in September 1953. It manufactures and markets automobiles and parts.

The Company’s shares have been listed on the Taiwan Stock Exchange since July 1976.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on March 30, 2021.

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

  • a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the FSC

Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies:

  • 1) Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform”

Upon retrospective application of the amendments, the Group complied with the hedge accounting requirements under the assumption that the interest rate benchmark (such as the London Interbank Offered Rate or LIBOR) on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform. Refer to Note 11 for the affected hedge relationship.

  • 2) Amendment to IFRS 16 “Covid-19 - Related Rent Concessions”

The Group elected to apply the practical expedient provided in the amendment to IFRS 16 with respect to rent concessions negotiated with the lessor as a direct consequence of the COVID-19. The related accounting policies are stated in Note 4. Prior to the application of the amendment, the Group shall determine whether or not the abovementioned rent

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Financial Information

concessions need to be accounted for as lease modifications.

The Group applied the amendment from January 1, 2020. Because the abovementioned rent concessions affect only in 2020, retrospective application of the amendment has no impact on the retained earnings as of January 1, 2020.

  • b. The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2021

Effective Date New IFRSs Announced by IASB

Amendments to IFRS 4 “Extension of the Temporary Effective immediately upon Exemption from Applying IFRS 9” promulgation by the IASB Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS January 1, 2021 16 “Interest Rate Benchmark Reform - Phase 2”

  • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform - Phase 2”

“Interest Rate Benchmark Reform - Phase 2” primarily amends IFRS 9, IFRS 7 and IFRS 16 to provide practical relief from the impact of the interest rate benchmark reform.

Changes in the basis for determining contractual cash flows as a result of interest rate benchmark reform

The changes in the basis for determining contractual cash flows of financial assets, financial liabilities or lease liabilities are accounted for by updating the effective interest rate at the time the basis is changed, provided the changes are necessary as a direct consequence of the reform and the new basis is economically equivalent to the previous basis.

Hedging accounting

The amendments provide the following temporary exceptions to hedging relationships that are subject to the reform:

  • 1) The changes to the hedging relationship that are needed to reflect changes required by the reform are treated as a continuation of the existing hedging relationship, and do not result in the discontinuation of hedge accounting or the designation of a new hedging relationship.

  • 2) After a cash flow hedging relationship is amended, the amount accumulated in the gain/(loss) on hedging instruments of cash flow hedge is deemed to be based on the alternative benchmark rate on which the hedged future cash flows are determined.

  • 3) An entity should allocate the hedged items of a group hedge that is subject to the reform to subgroups based on whether the hedged items have been changed to reference an alternative benchmark rate, and should designate the hedged benchmark rate separately.

As of the date the consolidated financial statements were authorized for issue, the Group continues in evaluating the impact on its financial position and financial performance as a

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result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Group completes the evaluation.

  • c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC
New IFRSs
“Annual Improvements to IFRS Standards 2018-2020”
Amendments to IFRS 3 “Reference to the Conceptual
Framework”
Amendments to IFRS 10 and IAS 28 “Sale or Contribution
of Assets between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17
Amendments to IAS 1 “Classification of Liabilities as
Current or Non-current”
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 16 “Property, Plant and Equipment -
Proceeds before Intended Use”
Amendments to IAS 37 “Onerous Contracts - Cost of
Fulfilling a Contract”		 Effective Date
Announced by IASB (Note 1)
January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 6)
January 1, 2023 (Note 7)
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

  • Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

  • Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

  • Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

  • Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

  • Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

  • Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

  • Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

Annual Report 2020 223

Financial Information

As of the date the consolidated financial statements were authorized for issue, the Group continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Group completes the evaluation.

d. Reclassification

The management of the Group considered the presentation within impairment of lease assets (included in administrative expenses) and reversal of expected credit loss (included in other operating revenue) classifying as rental cost and expected credit loss to be more appropriate; therefore, the management of the Group changed the presentation of the consolidated statements of comprehensive income and cash flows in 2020. Comparative information of 2019 were reclassified to conform to the current period’s presentation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

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

Basis of Preparation

The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments which are measured at fair value and net defined benefit liabilities which are measurement at the present value of the defined benefit obligations less the fair value of the plan assets.

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

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

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

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

Classification of Current and Non-current Assets and Liabilities

Current assets include:

  • a. Assets held primarily for the purpose of trading;

  • b. Assets expected to be realized within an operating cycle after the reporting period; and

  • c. Cash and cash equivalents.

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Current liabilities include:

  • a. Liabilities held primarily for the purpose of trading;

  • b. Liabilities due to be settled within an operating cycle after the reporting period; and

  • c. Liabilities for which the Group does not have an unconditional right to defer settlement for at least an operating cycle after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets and liabilities are classified as noncurrent.

Since the operating cycles of YFC Co., Ltd., Shinshin Credit Co., Ltd., TAC Leasing Co., Ltd., TAC Financial Leasing Co., Ltd., Yu Rich Financial Services Co., Ltd., Yulon Finance Philippines Corporation, Yulon Motor Finance (China) Co., Ltd., Yulon Construction Co., Ltd., Yu Sing Co., Ltd., and Yushin Co., Ltd. are more than one year, the classification of balance sheet accounts depends on whether their realization or settlement will be within or beyond one year from the balance sheet date.

Basis of Consolidation

  • Principles for preparing consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including special-purpose entities).

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

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this attribution results in the non-controlling interests having a deficit balance.

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

Please refer to Note 16 and Table 10 for the subsidiaries’ name, percentage of shares owned by the Company and main businesses.

Annual Report 2020 225

Financial Information

Business Combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as incurred.

Goodwill is measured as the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree in excess of the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

If the initial accounting for a business combination is not completed by the end of the reporting period in which the combination occurs, the Group, as the acquiring entity, reports in its financial statements provisional amounts for the items for which the accounting is incomplete. These provisional amounts recognized at the acquisition date are adjusted retrospectively during the measurement period when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of other assets and liabilities.

Foreign Currencies

In preparing the financial statements of each group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured at historical cost in a foreign currency are recognized at the rates of exchange prevailing on the dates of the transactions and are not retranslated.

Exchange differences resulting from the settlement or translation of monetary items are recognized in profit or loss in the period when these differences arise.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into New Taiwan dollars at exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences are recognized in other comprehensive income and are attributed to owners’ equity or non-controlling interests.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and included in the calculation of equity transactions and not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

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Inventories

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

Yulon Finance Corporation (YFC) provides retailers with cars for the purpose of displays and sales, and charges display fees till the cars are sold. Before the ownership of cars is transferred to retailers, the cars are treated as YFC’s inventories.

Construction Industry Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories production or conversion costs, and other costs incurred in bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The inventory of construction business are measured at the lower of cost and net realizable value. The cost of inventories includes expenditure incurred in bringing them to their existing location and condition and capitalized borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The net realizable value is estimated as follows:

Land held for development

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses, or estimated by recent market value (development analytical method or comparison method).

Construction-in-progress

Net realizable value is the estimated selling price (current market condition) in the ordinary course of business, less the estimated costs of completion and selling expenses.

Properties and land held for sale

Net realizable value is the estimated selling price (refer to the market condition estimated by authority) in the ordinary course of business, less the estimated costs of completion and selling expenses, or estimated by recent market value or estimated by recent market value.

Investments in Associates and Jointly Controlled Entities

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

The Group uses the equity method to account for its investments in associates and joint ventures.

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Financial Information

Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group’s share of equity of associates and joint venture.

When the Group subscribes for additional new shares of the associate and joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Group’s ownership interest is reduced due to the additional subscription of the new shares of associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

When the Group’s share of losses of an associate and joint venture equals or exceeds its interest in that associate and joint venture, the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate and joint venture.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate and joint venture recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increased.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and the joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and the joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required if that associate and joint venture had directly disposed of the related assets or liabilities.

When a Group entity transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate and joint venture of entities that are not related to the Group.

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Property, Plant and Equipment

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

Property, plant and equipment under construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. These assets are depreciated and placed in the appropriate categories of property, plant and equipment when completed and ready for intended use.

Freehold land is not depreciated.

Depreciation is recognized using the straight-line method and units of production method. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For leased asset, if the lease term is shorter than the useful life of the asset, the asset is depreciated over the lease term. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

An entity that, in the course of its ordinary activities, routinely sells items of property, plant and equipment that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets are recognized as revenue in accordance with IFRS 15 “Revenue from Contracts with Customers”. IFRS 15 does not apply when assets held for sale in the ordinary course of business are transferred to inventories.

Assets held for rental that are transferred to inventories at their carrying amount are classified under operating activities.

Investment Properties

Investment properties are properties held for earning rentals and/or for capital appreciation, including property under construction for these purposes. Investment properties also include land held for a currently undetermined future use.

Own investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer from the investment properties classification to inventories, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of development with a view to future sale.

For a transfer from the property, plant and equipment classification to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount

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

Annual Report 2020 229

Financial Information

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

Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the acquisition date less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the acquirer’s cash-generating units (CGUs), or groups of cash-generating units (referred to as cash-generating units), that are expected to benefit from the synergies of the combination.

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

Intangible Assets

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

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

Assets Related to Contract Costs

When a sales contract is obtained, commissions of accounts receivable purchasing and the equipment leasing business are recognized as incremental costs of obtaining a contract to the extent the costs are expected to be recovered, and are recognized as commission expenses using interest method through the contract period. However, the Group elects not to capitalize the incremental costs of obtaining a contract if the amortization period of the asset that the Group otherwise would have recognized is expected to be one year or less.

Impairment of Tangible and Intangible Assets Other Than Goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, for any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of a corporate asset, the asset is tested for impairment in the context of the cash-generating unit (CGU) to which the asset belongs. If a portion of the carrying amount of the asset can be allocated on a reasonable and consistent basis to the CGU, the Group compares the carrying amount of the CGU, including the

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portion of the asset’s carrying amount allocated to the CGU, with the recoverable amount of the CGU to which the asset belongs. If this reasonable and consistent basis of allocation cannot be applied to the CGU to which the asset belongs and can be applied instead to the smallest group of CGUs to which the CGU belongs, this smallest group is used for impairment testing.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, or whenever there is an indication of asset impairment.

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

Before the Group recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit

When the carrying amount of the asset or CGU is increased to a revised estimate of its recoverable amount, the impairment loss is reversed, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or CGU in prior years. A reversal of an impairment loss is recognized in profit or loss.

Financial Instruments

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

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

  • a. Financial assets

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

1) Measurement category

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

  • a) Financial asset at FVTPL

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

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Financial Information

classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 34.

  • b) Financial assets at amortized cost

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

  • i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

  • ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable at amortized cost, trade receivables, finance lease receivables, treasury bills and other receivables and government bonds, are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

  • i. Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset; and

  • ii. Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset from the second reporting period after the impairment.

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

  • c) Investments in equity instruments at FVTOCI

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

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

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

2) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivables, trade receivables, and other receivables), finance lease receivables, as well as contract assets.

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

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

The Group recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

  • 3) Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

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Financial Information

b. Equity instruments

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

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

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

c. Financial liabilities

1) Subsequent measurement

Except the following situation, all financial liabilities are measured at amortized cost using the effective interest method.

a) Financial liability at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading. Financial liabilities held for trading are stated at fair value, with any gain or loss arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 34.

  • b) Financial liability at amortized cost

The group’s financial liability measured at amortized cost transfers financial assets and related right to trust institutions, which issue beneficiary certificates, and all proceeds raised go to consolidated entities. Under this transaction architecture, the Group does not lose the right of controlling financial assets, and nor derecognize them.

2) Derecognition of financial liabilities

The Group only derecognizes the financial liabilities when the obligation is lifted, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in profit or loss.

d. Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate risks and foreign exchange rate risks, including interest rate swaps and cross-currency swaps.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset;

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when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL.

Hedge Accounting

The Group designates certain hedging instruments as cash flow hedges.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the non-financial asset or non-financial liability.

The group discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

The Group’s provision is for contracts with guarantees. For car loan contracts signed by the Group’s customers with financial institutions, the Group provides payment guarantees as well as account management services. Under the contracts, the Group is responsible for the collection of loan repayments or will assume the risk of loss on uncollectable loans in the event of default. The provision is subsequently measured under IAS 37 “Provision, Contingent Liabilities and Contingent Assets”.

Annual Report 2020 235

Financial Information

Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products and at the Group management’s best estimate of the expenditure required to settle the Group’s obligations.

Revenue Recognition

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

  • a. Revenue from sale of goods

Revenue from the sale of goods comes from sales of cars and materials. The Group recognize revenue on goods delivered to subcontractors because this delivery involve a transfer of control.

Revenue from sale of goods comes from sales of operating assets held for rental to others. Sales of operating assets held for rental to others are recognized as revenue when ownership of the goods are transferred to the buyers.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and similar allowances. Sales returns are recognized at the time of sale if the Group can reliably estimate future returns and a liability for returns is recognized on the basis of previous experience and relevant factors.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

Income from properties developed for sale is recognized when construction is complete, rewards of ownership of the properties are transferred to buyers, and collectability of the related receivables is reasonably assured. Deposits received on the sale of properties and installment payments are presented in the consolidated balance sheets under current liabilities.

Under the Group’s award scheme, the sale of goods that results in award credits for customers is accounted for as a multiple element revenue transaction, and award credits are accounted for as a separately identifiable component of a sales transaction in which these credits are granted (“initial sale”). The fair value of the consideration received or receivable is allocated between the award credits granted and other components of the sale. The consideration allocated to the award credits is measured at their fair value, i.e., the amount for which the award credits could be sold separately. Such consideration is not recognized as revenue at the time of the initial sale but is deferred and recognized as revenue when the award credits are redeemed and the Group’s obligations to supply the award have been fulfilled.

b. Rental revenue

A lease is classified as a finance lease if it transfers substantially all the risks, and rewards upon transfer of property or asset. Otherwise, it is classified as an operating lease.

Under finance leases, the lease payments comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives payable. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any

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unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s net investment outstanding in respect of leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

When the lease contains both land and building, the Company is based on whether almost all the risks and compensation attached to the ownership of the elements have been transferred to the lessee to assess whether the elements are classified as financial or business leases. The lease payment shall be distributed to the land and buildings in proportion to the fair value of the lease rights of the land and buildings at the date of the establishment of the contract. If lease payments can be reliably allocated to these two elements, each element is treated according to the applicable lease classification. If the lease payment cannot be reliably apportioned to these two elements, then the overall lease is classified as a financial lease, but if both elements clearly meet the operating lease criteria, the overall lease is classified as an operating lease.

c. Investment income

For security transactions by Yung Hong Investment Company, the difference between the carrying amount of security and the actual selling price is recognized in profit or loss when these Group entities transfer substantially all the risks and rewards of security ownership to another party.

d. Rendering of services

Revenue from a contract to provide services is recognized by reference to the stage of completion of the contract.

e. Dividend and interest income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established and if it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

Annual Report 2020 237

Financial Information

Leasing

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

The Group as lessee

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

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

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

Lease liabilities are initially measured at the present value of the lease payments, which comprise in-substance fixed payments and variable lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate.

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

The Group negotiates with the lessor for rent concessions as a direct consequence of the Covid-19 to change the lease payments originally due by June 30, 2021, that results in the revised consideration for the lease less than the consideration for the lease immediately preceding the change. There is no substantive change to other terms and conditions. The Group elects to apply the practical expedient to these rent concessions and, therefore, does not assess whether the rent concessions are lease modifications. Instead, the Group recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments in the period in which the events or conditions that trigger the concession occur, and makes a corresponding adjustment to the lease liability.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

Borrowing Costs

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

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Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

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

Government Grants

Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

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

Employee Benefits

  • a. Short-term employee benefits

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

  • b. Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

  • c. Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognizes any related restructuring costs.

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Financial Information

Share-based Payment Arrangements

Equity-settled share-based payment arrangements granted to employees

The fair value at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. It is recognized as an expense in full at the grant date if vested immediately.

Taxation

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

  • a. Current tax

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

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

b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint arrangements, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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

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

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  • c. Current and deferred taxes for the year

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

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

a. Estimated impairment of financial assets

The provision for impairment of trade receivables, investments in debt instruments, and financial guarantee contracts is based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 9, 12 and 13. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

  • b. Impairment of property, plant and equipment

The impairment of property, plant and equipment was based on the recoverable amount of those assets, which is the higher of fair value less costs to sell or value-in-use of those assets. Any changes in the market price or future cash flows will affect the recoverable amount of those assets and may lead to recognition of additional or reversal of impairment losses.

  • c. Impairment of intangible assets (vehicle model development cost)

The impairment of intangible asset (vehicle model development cost) was based on the recoverable amount of those assets, which is the higher of fair value less costs to sell or value-in-use of those assets. Any changes in the market price or future cash flows will affect the recoverable amount of those assets and may lead to recognition of additional or reversal of impairment losses.

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Financial Information

6. CASH AND CASH EQUIVALENTS

December 31
2020
2019
Cash on hand
$ 20,171 $ 105,792
Checking accounts and demand deposits
16,564,754
20,954,693
Cash equivalent
Time deposits with original maturities within 3 months
3,451,322
4,586,468
Short-term notes and bills
-
1,181
Third-party payment service deposits
631
350
Repurchase agreements collateralized by bonds
-

499,451
$ 20,036,878
$ 26,147,935
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
December 31
2020
2019
Financial assets at FVTPL-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic quoted shares
$ 9,619
$ 22,942
Domestic unlisted shares
-
652
Mutual funds
3,789,176
1,621,794
Hybrid financial assets
Structured deposits
301,971
628,620
Principal guaranteed financial assets
214,530

848,541
$ 4,315,296
$ 3,122,549
Financial assets at FVTPL-non-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic unlisted shares
$ 2,136
$ 2,249		 December 31 December 31
2020
$ 9,619

-
3,789,176
301,971
214,530

$ 4,315,296

$ 2,136
 2019
$ 22,942
652
1,621,794
628,620

848,541
$ 3,122,549
$ 2,249

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Current
Quoted stocks		 December 31 December 31
2020
$ 113,077
 2019
$ 123,754

(Continued)

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Non-current
Domestic investments
Quoted stocks
Domestic unlisted shares
Others		 December 31
2020
2019
$ 31,303
$ 82,255
406,095
402,492
1,524

1,521
$ 438,922
$ 486,268
(Concluded)
2020
$ 31,303

406,095
1,524

$ 438,922

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

In May 2019, the Group dispose of financial assets at fair value through other comprehensive income - ordinary shares of Taiwin Company to Xiang Wei Co., Ltd., the disposal price was 396,000 thousand, and related other equity - the unrealized gains and losses of financial assets at fair value through other comprehensive income of financial assets of 369,760 thousand are transferred to retained earnings.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current
Time deposits with original maturity more than 3 months
Reserve account
Restricted Bank deposit
Pledged time deposits
Bank deposit for specified purpose
Debt instruments investment
Non-current
Central Government Development Bonds (a)
Pledged time deposits
Restricted Bank deposit
Time deposits with original maturity more than 3 months
Debt instruments investment
Securitization beneficiary securities loan (b)		 December 31 December 31
2020
$ 3,557,812

218,324
52,504
19,457
54,116
484,493

$ 4,386,706

$ 15,245

44,630
314,263
244,057
5,945

$ 624,140

$ -
 2019
$ 9,469,602
231,577
8,599
111,607
42,388

-
$ 9,863,773
$ 15,708
44,629
397,730
-

6,683
$ 464,750
$ 1,834,953

Annual Report 2020 243

Financial Information

  • a. Yulon Finance Co, Ltd. and Yustar invested in Central Government Development Bonds with yearly payment coupon rates of 3.75% and 1.42% and with maturity dates of August 16, 2022 and February 13, 2021, respectively. As of December 31, 2020 and 2019, the Central Government Development Bonds with face value of $4,700 thousand and $9,300 thousand, respectively, were pledged as guarantee deposits for evidence of claims in the courthouse.

  • b. Yulon Motor Finance (China) Co., Ltd. holds the creditor’s right to the beneficiary securities issued by trust institutions through accounts receivable securitization in March and September 2019. The value of the first time issue of priority trust beneficiary rights is RMB530 million, which accounts for 85.13% of total beneficiary rights. Among the priority trust beneficiary rights, the value of the A1-category is RMB310 million, and the annual beneficiary rate is 4.6%, which has expired in September 2019. The value of the A2-category is RMB150 million, and the annual beneficiary rate is 4.8%, which has expired in February 2020. The value of the B-category is RMB70 million, and the annual beneficiary rate is 6.5%, which has expired in May 2020. The interest is paid monthly for such beneficiary certificates. The value of the secondary beneficiary right is RMB93 million, and there is no annual beneficiary rate, which has expired in July 2020. The value of the second time issue of priority trust beneficiary rights is RMB251 million, which accounts for 81.07% of total beneficiary rights. Among the priority trust beneficiary rights, the value of the A1-category is RMB74 million, and the annual beneficiary rate is 4.2%, which has expired in December 2019. The value of the A2-category is RMB151 million, and the annual beneficiary rate is 5.2%, which has expired in October 2020. The value of the B-category is RMB26 million, and the annual beneficiary rate is 6.5%, which has expired in November 2020. The interest is paid monthly for such beneficiary certificates. The value of the secondary beneficiary rights is RMB59 million, and there is no annual beneficiary rate, which has expired in November 2020.

  • c. Refer to Note 10 for information relating to credit risk management and impairment of financial assets at amortized cost.

  • d. Refer to Note 36 for information relating to financial assets at amortized cost pledged as security.

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as at amortized cost.

Gross carrying amount
Less: Allowance for impairment loss
Amortized cost		 December 31 December 31
2020
$ 5,014,801
(3,955)

$ 5,010,846
 2019
$ 10,331,739

(3,216)
$ 10,328,523

The Group only invests in government bonds and deposits that are assessed with no impairment loss, rated the equivalent of investment grade or higher and have low credit risk for the purpose of impairment assessment. The credit rating information of government bonds is supplied by independent rating agencies. The Group’s exposure and the external credit ratings are continuously monitored. The Group reviews changes in bond yields and other public information and makes an assessment whether there has been a significant increase in credit risk since the last period to the reporting date.

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11. FINANCIAL INSTRUMENTS FOR HEDGING - CURRENT

Financial assets under hedge accounting
Cash flow hedges - interest rate swaps (a)
Financial liabilities under hedge accounting
Cash flow hedges - interest rate swaps (a)		 December 31
2020
$ 1,594

$ 1,541
 2019
$ 232
$ 241
  • a. The Group entered into interest rate swap (IRS) contracts to mitigate the risk of adverse changes in interest rates on the cash flow exposure related to outstanding floating-rate debts. The terms of the IRS contracts are identical to those for debts under hedging; thus, the management considered these contracts as highly effective tool for hedging. The outstanding IRS contracts at the end of the reporting period were as follows:

December 31, 2020 and December 31, 2019

Notional Amounts Interest Rates -
(In Thousands) Maturity Date **Interest Rates - Receipt ** Payment
$ 500,000 2022.04.29 Note 0.715%
500,000 2022.05.23 Note 0.708%

Note: Based on the three months TAIBOR - Reuters interest rate prevailing on two operating days before the IRS contract issue date.

12. NOTES RECEIVABLE AND TRADE RECEIVABLES

Notes and trade receivables
Less: Allowance for impairment loss
Unrealized interest income		 December 31 December 31
2020
$ 177,304,626
(12,790,762)
(22,334,063)

$ 142,179,801
 2019
$ 169,215,481

(12,803,452)

(19,548,290)
$ 136,863,739

Trade and notes receivable

The average credit period for the sale of goods for “Brand Segments” was 45 to 180 days. In assessing recoverability of its trade and notes receivables, the Group’s management considers any changes in the counterparties’ credit quality as of the balance sheet dates, including the financial and economic status of the counterparties, since the major counterparties were related parties.

Principal and interests for Horizontal Segments within the Group are collected monthly. For delayed payments, interests are accrued on the basis of the number of days that payments are outstanding. For the assessment of expected credit losses, in addition to considering the impairment losses recognized by individual customers, the Group assessed expected credit losses

Annual Report 2020 245

Financial Information

of different business on a collective basis based on macroeconomic factors, past experience and forward-looking indicators.

The average credit period for the sale of goods by other “Supporting Segments” is 45 to 65 days. In assessing recoverability of its trade and notes receivables, the Group’s management considers any changes in the counterparties’ credit quality as of the balance sheet dates, including the financial and economic status of the counterparties, since the major counterparties were related parties.

For Taiwan and China-based retailers, overdue payments are reported to the Group’s internal legal department for confirmation and collection.

The clients of the Group are widely spread and unrelated; thus, credit risk is limited.

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

December 31, 2020

Gross carrying amount
Loss allowance
(Lifetime ECL)


Amortized cost


December 31, 2019

Gross carrying amount
Loss allowance
(Lifetime ECL)


Amortized cost
 Not Past Due
$ 143,587,444

(3,141,537)
$ 140,445,907
$ 136,431,439

(3,673,256)
$ 132,758,183		 1-180 Days
$ 2,142,719
(463,176)
$ 1,679,543
$ 2,427,962
(226,759)
$ 2,201,203		 More Than
180 Days
$ 9,240,400
(9,186,049)

$ 54,351

$ 10,807,790
(8,903,437)

$ 1,904,353
 Total
$ 154,970,563

(12,790,762)
$ 142,179,801

$ 149,667,191

(12,803,452)
$ 136,863,739

The movements of the loss allowance of note and trade receivables were as follows:

Balance at January 1
Add: Net remeasurement of loss allowance
Add: Amounts recovered
Less: Reclassification
Less: Amounts written off
Less: Amounts related to loss of control
Foreign exchange gains and losses
Balance at December 31 (Note)		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 12,803,452
3,267,672
328,157
(617)
(3,484,481)
(129,990)
6,569

$ 12,790,762
 2019
$ 3,281,081

11,113,188

212,825

-

(1,792,232)

-

(11,410)
$ 12,803,452

246 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Note: Included the receivable from related parties of the Group - Dongfeng Yulon Motor Co., Ltd. was assessed according to the expected credit loss model, and the expected credit loss mentioned in the current period was $8,227,027 thousand.

13. FINANCE LEASE RECEIVABLES

Undiscounted lease payments
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 onwards
Less: Unearned finance income
Less: Allowance for impairment loss
Discounted unguaranteed residual value
Net investment in leases presented as finance lease
receivables		 December 31 December 31
2020
$ 18,977,361
7,316,573
2,631,490
1,241,016
285,761
169,773

30,621,974
(3,499,449)
(3,209,147)

$ 23,913,378

$ 23,913,378
 2019
$ 22,919,330

8,180,354

2,584,438

1,173,354

403,103

183,395

35,443,974

(4,279,479)

(2,258,211)
$ 28,906,284
$ 28,906,284

The Group signed finance lease agreements for cars and equipment having an average lease term of 2.43 years.

The interest rates inherent in leases are fixed at the contract dates for the entire term of the lease. The ranges of interest rates inherent in the finance leases were approximately 2.47%-13.98% and 3.66%-13.81% per annum as of December 31, 2020 and 2019, respectively.

Finance lease receivables are secured by holding leased equipment as collaterals. The expected credit losses on trade receivables are recognized as loss allowance by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, general economic conditions of the industry in which the debtors operate and expected credit loss rates of forward-looking indicators.

The Group writes off a finance lease receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the finance lease receivables are over 180 days past due, whichever occurs earlier. For finance lease receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

Annual Report 2020 247

Financial Information

The Group assesses the loss allowance of finance lease receivables individually and collectively. The movements were as follows:

December 31, 2020

Gross carrying
amount

Loss allowance
(Lifetime ECL)

Amortized cost

December 31, 2019
Gross carrying
amount

Loss allowance
(Lifetime ECL)

Amortized cost
 Not Past Due
$ 22,386,761
(266,551)
$ 22,120,210
Not Past Due
$ 28,648,436
(361,570)
$ 28,286,866		 1-180 Days
More Than 180
Days
$ 2,037,023
$ 2,698,741
(243,855)
(2,698,741)

$ 1,793,168
$ -

1-180 Days
More Than 180
Days
$ 1,097,457
$ 1,418,601
(478,040)
(1,418,601)

$ 619,417
$ -
 Total
$ 27,122,525

(3,209,147)
$ 23,913,378
Total
$ 31,164,494

(2,258,211)
$ 28,906,283

The movements of the loss allowance of finance lease receivables were as follows:

Balance at January 1
Add: Net remeasurement of loss allowance
Add: Amounts recovered
Less: Amounts written off
Foreign exchange gains and losses
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 2,258,211

1,081,013
13,909
(195,721)
51,735

$ 3,209,147
 2019
$ 1,411,594
1,188,040
-

(247,722)

(93,701)
$ 2,258,211

14. OTHER RECEIVABLES

Other receivable - at amortized cost
Less: Allowance for impairment loss		 December 31 December 31
2020
$ 10,952,089
(9,133,378)

$ 1,818,711
 2019
$ 12,005,943

(8,910,958)
$ 3,094,985

248 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The movements of the loss allowance of other receivables were as follows:

Balance at January 1
Add: Net remeasurement of loss allowance
Add: Reclassification
Less: Amounts related to loss of control
Foreign exchange gains and losses
Balance at December 31 (Note)		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 8,910,958

714,801
617
(565,706)
72,708

$ 9,133,378
 2019
$ 388,335
8,884,526
-

-

(361,903)
$ 8,910,958

Note: The balance at December 31 included the loss allowance of the receivables from Dongfeng Yulon Motor Co., Ltd., a related party, in the amount of $8,408,842 thousand.

15. INVENTORIES

The Group’s inventories include finished goods, work in progress, raw materials, properties for sale and construction land.

Finished goods
Work in progress
Raw materials
Properties for sale
Yu-Wen Garden
Hsin-Dian Da Feng section
Construction land
Property under construction		 December 31 December 31
2020
$ 3,675,705
899,533
2,899,246

7,474,484

2,584
1,757

4,341

4,518,862

$ 11,997,687
 2019
$ 4,723,321

921,182

3,609,842

9,254,345

2,584

1,757

4,341

7,314,359
$ 16,573,045

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2020 and 2019 was $48,541,228 thousand and $49,412,806 thousand, respectively.

The cost of goods sold for the years ended December 31, 2020 and 2019 included inventory write-downs of $235,411 thousand and reversal of inventory write-downs $98,383 thousand, respectively.

The design of the planned development of a commercial district of Yulon Town was modified in October 2019, and only consisted of malls. In addition, the declaration of the commencement of the residential district was temporarily stopped, and will be re-designed depending on the market situation. Therefore, the Group expected a portion of the asset to have no economic benefits and recognized impairment loss on the residential district (included in inventory) $779,745 thousand in 2019.

Annual Report 2020 249

Financial Information

The part of Yulon Town’s land and building was reclassified to investment property due to the modification of the construction license. Please refer to Note 19.

The amount of inventories pledged as collateral for bank borrowings was disclosed in Note 36.

16. SUBSIDIARIES

  • a. Subsidiaries included in consolidated financial statements

Entities included in the Group’s consolidated financial statements were as follows:

Investor
Investee
Main Businesses
The Company
Yulon Finance Corporation (“Yulon
Finance Corporation”)
Sale and lease of cars and parts
Yu Sing Motor Co., Ltd. (“Yu Sing”)
Sale, maintenance and repair of cars and
parts
Yushin Motor Co., Ltd. (“Yushin”)
Sale, maintenance and repair of cars and
parts
Yu Chang Motor Co., Ltd. (“Yu Chang”)
Sale and maintenance of cars and parts
Sin Chi Co., Ltd. (“Sin Chi”)
General advertising planning services
Yu Ching Business Co., Ltd. (“Yu
Ching”)
Import and export and sale of cars and parts
Yung Hong Investment Co., Ltd. (“Yung
Hong”)
Investments
Yu Pong Business Co., Ltd. (“Yu Pong”)
Yulon basketball team management and
related services
Chan Yun Technology Co., Ltd. (“Chan
Yun”)
Wholesale and retail of information software
Yulon Overseas Investment Co., Ltd.
(“Yulon Overseas”)
Investments
Y-Teks Co., Ltd. (“Y-Teks”)
Manufacturing and furnishing, cars and the
import and export of, and serving as sales
agent for, car parts
Union & NKH Auto Parts Co., Ltd.
(“Union & NKH”)
Manufacturing and sale of springs for
various motor vehicles and sale of
nonmotorized vehicles
Yueki Industrial Co., Ltd. (“Yueki”)
Manufacturing and sale of car components
Yue Sheng Industrial Co., Ltd. (“Yue
Sheng”)
Car manufacture and furnishing;
manufacture, installation and sale of car
parts
China Cast Iron Pipe Co., Ltd. (“China
Cast Iron”)
Metal casting and related business
Car-plus Auto Leasing Corporation
(“Car-plus Auto”)
Car lease and trade
Empower Co., Ltd. (“Empower”)
Sale, maintenance and repair of cars and
parts
Luxgen Motor Co., Ltd. (“Luxgen”)
Sale of cars and parts
Yulon Motor Finance (China) Co., Ltd.
(“Yulon Motor Finance”)
Car purchases and loans to car dealers for
car purchases
Yulon Construction Co., Ltd. (“Yulon
Construction”)
Construction
Yulon New Energy Motor (Cayman) Inc.
Investments
Haitec Co., Ltd. (“Haitec”)
Product design of cars
Advance Power Machinery Co., Ltd.
(“Advance Power Machinery”)
Manufacturing and furnishing cars and the
import and export of, and serving as sales
agent for, car parts
Yulon New Energy
Motor (Cayman)
Inc.
Yulon New Energy Motor (HK) Limited.
Investments
Yulon Finance
Corporation
Yustar Finance Corporation (“Yustar”)
Installment-related financing services for car
and truck purchases
Car-plus Auto
Car lease and trade
TAC Global Investment (Samoa) Co.,
Ltd. (“TAC Global”)
Shareholding company
Empower
Sale, maintenance and repair of cars and
parts
Sin Gan Co., Ltd. (“Sin Gan”)
Wholesale and retail of information software
Yulon Motor Finance
Car purchases and loans to car dealers for
car purchases
Yu Rich Financial Services Co., Ltd.
(“Yu Rich”)
Installment loans of consumer goods and
wholesale of cars and parts
Yulon Finance Overseas Investment
(Samoa) Co., Ltd. (“Yulon Finance
Overseas”)
Shareholding company
Yustar
Shinshin Global Investment (Samoa)
Co., Ltd. (“Shinshin Samoa”)
Shareholding company
Yes-Energy Service Co., Ltd.
(“YES-Energy”)
Wholesale and retail of batteries
YES-Energy
Power Engineering Co., Ltd.
Wholesale and retail of batteries
Car-plus Auto
Diamond Leasing Service Corporation
(“Diamond Leasing”)
Car sale and lease
Car-Plus Global Investment (Samoa)
Co., Ltd. (“Car-Plus Samoa”)
Shareholding company
Hong Shou Culture Enterprise Co., Ltd.
(“Hong Shou Culture”)
Publication
Da-Wei Technology Co., Ltd.
(“Da-Wei”)
Brokerage of electric vehicles		 % of Ownership
December 31
2020
2019
Remark
45.75
45.75
-
99.99
99.99
-
99.99
99.99
-
65.00
65.00
-
100.00
100.00
-
60.00
60.00
The Group owned 100% of Yu Ching in the
two reporting periods.
100.00
100.00
-
100.00
100.00
-
87.71
87.71
-
100.00
100.00
-
34.00
34.00
The Group owned 45.99% of Y-Teks in the
two reporting periods.
25.01
25.01
-
65.58
65.58
-
80.07
80.07
-
77.66
77.66
-
3.46
3.46
The Group owned 72.03% of Car-plus in
the two reporting periods.
20.00
20.00
The Group owned 47% of Empower in the
two reporting periods.
100.00
100.00
-
51.00
51.00
The Group owned 100% of Yulon Motor
Finance in the two reporting periods.
100.00
100.00
-
-
100.00
Liquidated in 4thquarter of 2020.
58.84
35.46
The Group acquired control on December
31, 2019 and retrospectively stated to
December 31, 2018 The Group owned
99.99% of Haitec in the 4thquarter of
2020.
100.00
-
The Group owned 100% of Advance Power
Machinery since 3rd quarter of 2020.
-
100.00
Liquidated in 4thquarter of 2020.
100.00
100.00
-
68.57
68.57
The Group owned 73.03% of Car-plus in
the two reporting periods.
100.00
100.00
-
27.00
27.00
The Group owned 47% of Empower in the
two reporting periods.
73.26
73.26
The Group owned 93.04% of Sin Gan in
the two reporting periods.
49.00
49.00
The Group owned 100% of Yulon Motor
Finance in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
(Continued)

250 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Investor
Investee
Main Businesses
Sin Gan
Singgual Travel Service Co., Ltd.
(“Singgual Travel”)
Sale of information software,
telecommunications equipment and
maintenance of cars and parts
Hsiang Shou Enterprise Co., Ltd.
(“Hsiang Shou”)
Towing
Sin Jang
Sales and brokerage of secondhand vehicles
Qinton Motor Co., Ltd. (“Qinton”)
Sale and maintenance of cars and parts
Singgual Travel
Shang Hai Jing-Huei Investment Co.,
Ltd. (“Shang Hai Jing-Huei”)
Sale of car equipment and parts
Da-Wei
Da Teng Traffic Co., Ltd
Taxi
Dachuan Transportation Co., Ltd.
Taxi
Damu Transportation Co., Ltd.
Taxi
Dajun Transportation Co., Ltd.
Taxi
Yong-Xiang Transportation Co., Ltd.
(“Yong-Xiang”)
Taxi transportation
Guo-Ma Transportation Co., Ltd.
(“Guo-Ma”)
Taxi transportation
Jin-Yu Transportation Co., Ltd.
(“Jin-Yu”)
Taxi transportation
Zhong-Xing Automobile Co., Ltd.
(“Zhong-Xing”)
Taxi transportation
Li-Yang Automobile Co., Ltd.
(“Li-Yang”)
Taxi transportation
He-Yang Transportation Co., Ltd.
(“He-Yang”)
Taxi transportation
Jia-Yu Transportation Co., Ltd.
(“Jia-Yu”)
Taxi transportation
Tian-Yang Transportation Co., Ltd.
(“Tian-Yang”)
Taxi transportation
Diamond Leasing
H.K. Manpower Service Co., Ltd. (“H.K.
Manpower”)
Temporary labor services
Sin Jang
Sinjang International Investment
(Samoa) Co., Ltd. (“Sinjang Samoa)
Holding company
Car-Plus Samoa
Car-Plus China Investment (Samoa) Co.,
Ltd. (“Car-Plus China”)
Holding company
Car-Plus Shanghai Investment (Samoa)
Co., Ltd. (“Car-Plus Shanghai”)
Holding company
Car-Plus Hangzhou Investment (Samoa)
Co., Ltd. (“Car-Plus Hangzhou”)
Holding company
TAC Global
Car-Plus China Investment (Samoa) Co.,
Ltd.
Holding company
Car-Plus Shanghai Investment (Samoa)
Co., Ltd.
Holding company
Car-Plus Hangzhou Investment (Samoa)
Co., Ltd.
Holding company
Yu Rong International Investment
(Samoa) Co., Ltd.
Holding company
Sinjang International Investment
(Samoa) Co., Ltd.
Holding company
Zhejiang Cheng-Yi
Hangzhou Cheng-Yi-Jun Used-cars
Authenticated Evaluation Service Co.,
Ltd.
Secondhand vehicle authentication and
evaluation service
Zhejiang ChengYi Auction Co., Ltd.
Car trading
Wuhan TAC Auto Trade Co., Ltd.
Secondhand vehicles authentication and
evaluation service
Shinshin Samoa
TAC Financial Leasing Co., Ltd. (“TAC
Financial”)
Financial lease of equipment
Car-Plus China
Car-Plus (Suzhou) Auto Leasing Co.,
Ltd. (“Car-Plus (Suzhou) “)
Lease of cars and related services
Car-Plus Shanghai
Car-Plus Leasing (Shanghai) Co., Ltd.
(“Car-Plus Leasing (Shanghai)”)
Car lease and trading
Car-Plus Hangzhou
CAR-PLUS GO Co., Ltd.
Lease of cars and related services
Yu Rong International
TAC Leasing Co., Ltd. (“TAC Leasing”)
Financial lease of equipment
TAC Financial Leasing Co., Ltd.
Financial lease of equipment
TAC Financial
Wuhan TAC Auto Trade Co., Ltd.
Car trade
Zhejiang Cheng-Yi
Sales and brokerage of secondhand vehicles
Suzhou TAC Auto Trade Co., Ltd.
Car trade
Shanghai YuGuo Auto Trade Co., Ltd
Car trade
Hefei YuGuo Auto Trade Co., Ltd.
Car trade
Qingdao YuGuo Auto Trade Co., Ltd.
Car trade
Yulon Finance
Overseas
Yulon Finance Philippines
Shareholding company
Yulon Finance
Philippines
Yulon Finance Philippines Corporation
Financial lease of car and loans to car
dealers for purpose of purchasing
automobiles
Yu Sing Company
Kuen You Trading Co., Ltd.(“Kuen
You”)
Sale, maintenance and repair of car and parts
Yushin Company
Yu Pool Co., Ltd. (“Yu Pool”)
Supply of and providing services on
information software and retail trade of
spare parts of vehicles
Luxgen Motor Taoyuan Co., Ltd.
(“Luxgen Taoyuan”)
Sale, maintenance and repair of cars and
related products
Yu Shin Investment (“Yu Shin
Investment”)
Investments
Yu Shin Investment
Ltd.
Fu Jian Yu Xin Auto Sales & Services
Co., Ltd. (“Fu Jian Yu Xin”)
Sale and maintenance and repair of cars and
parts.
Fu Zhou Yu xin Auto Technology Co.,
Ltd (“Fu Zhou Yu xin”)
Sale and maintenance and repair of cars and
parts.
Sin Chi Company
Yu Chia Motor Co., Ltd. (“Yu Chia”)
Sale, maintenance and repair of heavy
vehicles and parts
Yulon TOBE Motor Co., Ltd. (“Yulon
TOBE”)
Sale of cars and parts
Yu Ching
Chinh-Ling RTC Co., Ltd.
(“Chinh-Ling”)
Product design
Yu Pong
Yu Ching
Import and export and sale of cars and parts
Yulon Construction
Hangzhou Yu-Jie Real Estate Co., Ltd.
(“Yu-Jie”)
Construction
Yufong Property Management Co., Ltd.
Management consulting and lease of real
estate
Yulon Overseas
Yulon China Investment Co., Ltd.
(“Yulon China”)
Investments
Yulon Philippine Investment Co., Ltd.
(“Yulon Philippine”)
Investments		 % ofOwnership
December 31
2020
2019
Remark
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
-
The Group owned 100% of Yong-Xiang in
1st quarter of 2020.
100.00
-
The Group owned 100% of Guo-Ma in 1st
quarter of 2020.
100.00
-
The Group owned 100% of Jin-Yu in 1st
quarter of 2020.
100.00
-
The Group owned 100% of Zhong-Xing in
1st quarter of 2020.
100.00
-
The Group owned 100% of Li-Yang in 1st
quarter of 2020.
100.00
-
The Group owned 100% of He-Yang in 1st
quarter of 2020.
100.00
-
The Group owned 100% of Jia-Yu in 1st
quarter of 2020.
100.00
-
The Group owned 100% of Tian-Yang in
1st quarter of 2020
100.00
100.00
-
71.34
71.34
The Group owned 100% of Sinjang
(Samoa) in the two reporting periods.
60.00
60.00
The Group owned 100% of Car-Plus China
in the two reporting periods.
60.00
60.00
The Group owned 100% of Car-Plus
Shanghai in the two reporting periods.
60.00
60.00
-
40.00
40.00
The Group owned 100% of Car-Plus China
in the two reporting periods.
40.00
40.00
The Group owned 100% of Car-Plus
Shanghai in the two reporting periods.
40.00
40.00
-
100.00
100.00
-
28.66
28.66
The Group owned 100% of Sinjang
(Samoa) in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
100.00
-
Zhejiang Cheng-Yi acquired 100% of
shares from TAC Financial Leasing in
the 1st quarter of 2020.
40.00
40.00
The Group owned 100% of TAC Financial
in the two reporting periods
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
40.00
40.00
The Group owned 100% of TAC Financial
in the two reporting periods.
-
100.00
Zhejiang Cheng-Yi acquired 100% of
shares from TAC Financial Leasing in
the 1st quarter of 2020.
100.00
100.00
-
-
100.00
Liquidated in 2ndquarter of 2020.
100.00
100.00
-
-
100.00
Liquidated in 4thquarter of 2020.
-
100.00
Liquidated in 4thquarter of 2020.
100.00
100.00
-
99.99
99.99
-
100.00
100.00
-
100.00
100.00
-
20.00
20.00
The Group owned 79.99% of TAC
Financial in the three reporting periods.
100.00
100.00
-
49.00
49.00
The Group owned 100% of Fu Jian Yu Xin
in the two reporting periods.
100.00
-
Established in 1st quarter of 2020.
100.00
100.00
-
100.00
100.00
-
-
100.00
Liquidated in 4thquarter of 2020.
40.00
40.00
The Group owned 100% of Yu Ching in the
three reporting periods.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
(Continued)

Annual Report 2020 251

Financial Information

Investor
Investee
Main Businesses
Yulon China
Qing Yi Investment Co., Ltd. (“Qing
Yi”)
Investments
Wen Yang Investment Co., Ltd. (“Wen
Yang”)
Investments
Tai Xin Investment Co., Ltd. (“Tai Xin”)
Investments
Yulon China (Hong Kong) Investment
Co., Ltd. (“Yulon China HK”)
Investments
Feng Hua Investment Co., Ltd. (“Feng
Hua”)
Investments
Yulon China Holding Co., Ltd. (“Yulon
China Holding”)
Investments
Yulon China Holding
Yulon China (HK) Holding Limited
(“Yulon China (HK) Holding”)
Investments
Yulon China (HK)
Holding
Yulon China Motor Investment Limited
(“Yulon China Motor Investment”)
Investments
Xiamen Young Chang Investment Co.,
Ltd. (“Xiamen Young Chang”)
Renders consulting services on cars,
electronics, textiles and related products
Luxgen (Hangzhou) Motor Sales Co.,
Ltd.
Sale of cars and parts
Yulon China Motor
Investment
Dong Feng Yulon Motor Sales Co., Ltd.
(“Dong Feng Yulon Sales Company”)
Sale of cars and parts
TAC Financial Leasing Co., Ltd.
Financial lease of equipment
Sheng Qing (Bei Jin) Investment Co.,
Ltd. (“Sheng Qing”)
Investments
Chuang Jie New Energy Vehicle (HZ)
Limited (“Chuang Jie”)
Manufacturing of key car components,
electric cars and related parts
Hang Zhou Haitec Company (“Hang
Zhou Haitec”)
Product design of cars
Xiamen Young Chang
Sheng Qing (Bei Jin) Investment Co.,
Ltd. (“Sheng Qing”)
Investments
Feng Hua
Su Zhou Chen Long Auto Sale & Service
Co., Ltd. (“Su Zhou Cheng Long”)
Sale and maintenance of cars and parts
Qing Yi
Hangzhou Yuwan Auto Motive Parts
Limited (“Hangzhou Yuwan”)
Manufacturing of key car components,
electric cars and related parts
Hangchow Liangrun Motor Parts Co.,
Ltd. (“Hangchow Liangrun”)
Manufacturing of car seats and developing
the related market
Hangchow Y-Teks Automotive Trim
Parts (“Hangchow Y-Teks”)
Manufacturing and sale of car interior
furnishing and related business
Wen Yang
Qing Tai (Nan Jing) Technology Co.,
Ltd. (“Qing Tai”)
Computer software maintenance and
computer system integration
Tai Feng (Nan Jing) Software
Technology Co., Ltd. (“Tai Feng”)
Computer software maintenance and
computer system integration
Ke Yu (Nan Jing) Information
Technology Co., Ltd. (“Ke Yu”)
Computer software maintenance and
computer system integration
Tai Xin
Ke Yu (Nan Jing) Information
Technology Co., Ltd. (“Ke Yu”)
Computer software maintenance and
computer system integration
Qing Tai
Jin Ce (Zhang Zhou) Software
Technology Co., Ltd. (“Jin Ce”)
Computer software maintenance and
computer system integration
Shi Cheng (Zhang Zhou) Technology
Develop Co., Ltd. (“Shi Cheng”)
Computer software maintenance and
computer system integration
Mei De (Zhang Zhou) Software
Technology Co., Ltd. (“Mei De”)
Computer software maintenance and
computer system integration
Tai Feng
Jin Ce (Zhang Zhou) Software
Technology Co., Ltd. (“Jin Ce”)
Computer software maintenance and
computer system integration
Mei De (Zhang Zhou) Software
Technology Co., Ltd. (“Mei De”)
Computer software maintenance and
computer system integration
Yi Ding (Zhang Zhou) Information
Technology Co., Ltd. (“Yi Ding”)
Computer software maintenance and
computer system integration
Jin Ce
Dong Tai (Bei Jin) Investment Co., Ltd.
(“Dong Tai”)
Investments
Gao Te (Bei Jin) Investment Co., Ltd.
(“Gao Te”)
Investments
Shi Cheng
Dong Tai (Bei Jin) Investment Co., Ltd.
(“Dong Tai”)
Investments
Yi Ding
Gao Te (Bei Jin) Investment Co., Ltd.
(“Gao Te”)
Investments
Dong Tai
Hang Zhou Tang Yu Investment Co.,
Ltd. (“Hang Zhou Tang Yu”)
Investments
An Hui Min Tung Auto Sale & Service
Co., Ltd. (“An Hui Min Tong”)
Sale and maintenance of cars and parts
Tong Ling Kuo Tong Auto Sale &
Service Co., Ltd. (“Tong Ling Kuo
Tong”)
Sale and maintenance of cars and parts
Zi Bo Yu An Auto Sale & Service Co.,
Ltd. (“Zi Bo Yu An”)
Sale and maintenance of cars and parts
Sheng Qing
Zhu Hai Fu Te En Industry & Trade Co.,
Ltd. (“Zhu Hai Fu Te En”)
Sale and maintenance of cars and parts
Guang Zhou Yuan Du Auto Sale &
Service Co., Ltd. (“Guang Zhou Yuan
Du”)
Sale and maintenance of cars and parts
Su Zhou Feng Shen Auto Sale & Service
Co., Ltd. (“Su Zhou Feng Shen”)
Sale and maintenance of cars and parts
Shen Jun Yu Peng Auto Sale & Service
Co., Ltd. (“Shen Jen Yu Peng”)
Sale and maintenance of cars and parts
Nanjing Hanhong Motor Trading Co.,
Ltd. (“Nanjing Hanhong”)
Sale and maintenance of cars and parts
Wuhan Yu Hsin Auto Sale & Service
Co., Ltd. (“Wuhan Yu Hsin”)
Sale and maintenance of cars and parts
Jiangmen Junxing Auto Sale & Service
Co., Ltd. (“Jiangmen Junxing”)
Sale and maintenance of c and parts
Shanghai Yuming Auto Sale & Service
Co., Ltd. (“Shanghai Yuming”)
Sale and maintenance of cars and parts
Qingdao Yuanhuang Auto Sale &
Service Co., Ltd. (“Qingdao
Yuanhuang”)
Sale and maintenance of cars and parts
Hang Zhou Yu Zhong Trading Co., Ltd.
(“Hang Zhou Yu Zhong”)
Trading
Ning Bo Yu Cheng Auto Sales &
Services Co., Ltd. (“Ning Bo Yu
Cheng”)
Sale, maintenance and repair of cars and
parts
Fu Jian Yu Xin
Sale, maintenance and repair of cars and
parts
Hang Zhou Hua Zhi Auto Sales &
Services Co., Ltd. (“Huang Zhou Hua
Zhi”)
Sale, maintenance and repair of cars and
parts		 % of Ownership
December 31
2020
2019
Remark
100.00
100.00
-
100.00
100.00
-
-
100.00
Liquidated in 4thquarter of 2020.
100.00
100.00
-
40.00
40.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
-
50.00
Announced bankruptcy and the court
assigned bankruptcy trustee in the 4th
quarter of 2020. The Group lost control
over Dong Feng Yulon Sales Company.
20.00
20.00
The Group owned 100% of TAC Financial
in the two reporting periods.
83.87
69.50
The Group owned 100% of Sheng Qing in
the two reporting periods.
100.00
100.00
-
3.23
3.23
The Group owned 100% of Hang Zhou
Haitec in the two reporting periods.
16.13
30.50
The Group owned 100% of Sheng Qing in
the two reporting periods.
100.00
100.00
-
44.11
44.11
The Group owned 100% of Hangzhou
Yuwan in the two reporting periods.
20.50
20.50
The Group owned 100% of Hangchow
Y-Teks in the two reporting periods.
13.87
13.87
The Group owned 100% of Hangchow
Liangrun in the two reporting periods.
100.00
100.00
The Group owned 100% of Qing Tai in the
two reporting periods.
100.00
100.00
-
100.00
-
Wen Yang acquired 100% of Ke Yu from
Tai Xin in 3rdquarter of 2020.
-
100.00
Wen Yang acquired 100% of Ke Yu from
Tai Xin in 3rdquarter of 2020.
70.00
70.00
The Group owned 100% of Jin Ce in the
two reporting periods.
100.00
100.00
-
10.00
10.00
The Group owned 100% of Mei De in the
two reporting periods.
30.00
30.00
The Group owned 100% of Jin Ce in the
two reporting periods.
90.00
90.00
The Group owned 100% of Mei De in the
two reporting periods.
100.00
100.00
-
5.97
5.97
The Group owned 100% of Dong Tai in the
two reporting periods.
10.00
10.00
The Group owned 100% of Gao Te in the
two reporting periods.
94.03
94.03
The Group owned 100% of Dong Tai in the
two reporting periods.
90.00
90.00
The Group owned 100% of Gao Te in the
two reporting periods.
100.00
100.00
-
35.09
100.00
The Group owned 100% of An Hui Min
Tong in the two reporting periods.
29.56
100.00
The Group owned 100% of Tong Ling Kuo
Tong in the two reporting periods.
32.38
100.00
The Group owned 100% of Zi Bo Yu An in
the two reporting periods.
100.00
100.00
-
51.00
51.00
-
40.00
40.00
The Group owned 100% of Su Zhou Feng
She in the two reporting periods.
-
65.00
Sold in the 3rdquarter of 2020.
100.00
100.00
-
100.00
100.00
-
60.00
60.00
The Group owned 100% of Jiangmen
Junxing in the two reporting periods.
51.00
51.00
The Group owned 100% of Shanghai
Yuming in the two reporting periods.
30.60
30.60
The Group owned 70.6% of Qingdao
Yuanhuang in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
51.00
51.00
The Group owned 100% of Fu Jian Yu Xin
in the two reporting periods.
60.00
60.00
The Group owned 100% of Huang Zhou
Hua Zhi in the two reporting periods.

(Continued)

252 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Investor
Investee
Main Businesses
Changsha Yu Lu Auto Sale & Service
Co., Ltd. (“Changsha Yu Lu”)
Sale and maintenance of cars and parts
He-Shan Li-Sheng Auto Sales & Service
Co., Ltd. (“He-Shan Li-Sheng”)
Sale and maintenance of cars and parts
An Ching Tsai Tong Auto Sale &
Service Co., Ltd. (“An Ching Tsai
Tong”)
Sale and maintenance of cars and parts
An Ching Ling Tong Auto Sale &
Service Co., Ltd. (“An Ching Ling
Tong”)
Sale and maintenance of cars and parts
He Fei Chun Hui Auto Sale & Service
Co., Ltd. (“He Fei Chun Hui”)
Sale and maintenance of cars and parts
Tong Ling Kuo Tong Auto Sale &
Service Co., Ltd. (“Tong Ling Kuo
Tong”)
Sale and maintenance of cars and parts
Zi Bo Yu An Auto Sale & Service Co.,
Ltd. (“Zi Bo Yu An”)
Sale and maintenance of cars and parts
Gao Te
Hang Zhou Qien Yu Investment Co., Ltd.
(“Hang Zhou Qien Yu”)
Investments
Su Zhou Cheng Long
Su Zhou Cheng Guo Auto Sale &
Service Co., Ltd. (“Su Zhou Cheng
Co., Ltd.”)
Sale and maintenance of cars and parts
Su Zhou Cheng Hang Auto Sale &
Service Co., Ltd. (“Su Zhou Cheng
Hung”)
Sale and maintenance of cars and parts
Su Zhou Feng Shen
Su Zhou Feng Shun Auto Sale & Service
Co., Ltd. (“Su Zhou Feng Shun”)
Sale and maintenance of cars and parts
Su Zhou Yueshun Auto Sale & Service
Co., Ltd. (“Su Zhou Yueshun”)
Sale and maintenance of cars and parts
Su Zhou Cheng Pin Auto Sale & Service
Co., Ltd. (“Su Zhou Cheng Pin”)
Sale and maintenance of cars and parts
Su Zhou Cheng Pang Auto Sale &
Service Co., Ltd. (“Su Zhou Cheng
Pang”)
Sale and maintenance of cars and parts
Tai Chang Cheng Mau Auto Sale &
Service Co., Ltd. (“Tai Chang Cheng
Mau”)
Sale and maintenance of cars and parts
Su Zhou Feng Shun
Wu Jiang Lian Cheng Auto Sale &
Service Co., Ltd. (“Wu Jiang Lian
Cheng”)
Sale and maintenance of cars and parts
Su Zhou Cheng Li Auto Sale & Service
Co., Ltd. (“Su Zhou Cheng Li”)
Sale and maintenance of cars and parts
Zhu Hai Fu Te En
Zhuhai Yuhsin Auto Sales & Parts Co.,
Ltd. (“Zhuhai Yuhsin”)
Sale and maintenance of cars and parts
Shenzhen Yu Zhi Auto Sales & Services
Co., Ltd. (“Shenzhen Yu Zhi”)
Sale and maintenance of cars and parts
Guang Zhou Yuan Du
Guang Zhou Yuan Zhi Auto Sales &
Services Co., Ltd. (“Guang Zhou
Yuan Zhi”)
Sale and maintenance of cars and parts
Qingdao Yuanhuang Auto Sale &
Service Co., Ltd. (“Qingdao
Yuanhuang”)
Sale and maintenance of cars and parts
Jiang Men Junxing
Auto Sale & Service
Co., Ltd. (“Jiang
Men Junxing”)
Jiang Men Yuli Auto Sale & Service Co.,
Ltd. (“Jiang Men Yuli”)
Sale and maintenance of cars and parts
Wuhan Yu Hsin Auto
Sale & Service
Company
Xiao Gan Yu Feng Auto Sale & Service
Co., Ltd. (“Xiao Gan Yu Feng”)
Sale and maintenance of cars and parts
Hang Zhou Hua Zhi
Hang Zhou Hua You Auto Sales &
Services Co., Ltd. (“Hang Zhou Hua
You”)
Sale and maintenance of cars and parts
Nanjing Hanhong
Trading Company
Nan Jing Yu Shang Auto Sale & Service
Co., Ltd. (“Nan Jing Yu Shang”)
Sale and maintenance of cars and parts
Nan Jing Yu Hua Auto Sale & Service
Co., Ltd. (“Nan Jing Yu Hua”)
Sales and maintenance of cars and parts
Shang Hai Yuming
ChiaHsing YuTa Automobiles Sales &
Service Limited (“ChiaHsing YuTa”)
Sale and maintenance of cars and parts
Hang Zhou Qien Yu
Hang Zhou Hsiao Yu Business Co., Ltd.
(“Hang Zhou Hsiao Yu”)
Investments
Hang Zhou Tang Yu
Hang Zhou Hsiao Yu Business Co., Ltd.
(“Hang Zhou Hsiao Yu”)
Investments
Yulon Philippine
Univation Motor Philippines, Inc.
(UMPI)
Car manufacturing
Sta. Cruz Island Corporation (SCIC)
Plant lease
Y-Teks
Yu-Hsin Intl Investment Co., Ltd.
(“Yu-Hsin Intl”)
Investments
Yu-Hsin Intl
Yu-Hsin Intl (H.K) Investment Co., Ltd.
(“Yu-Hsin Intl HK)
Investments
Yu-Hsin Intl HK
Hangchow Y-Teks Automotive Trim
Parts (“Hangchow Y-Teks”)
Manufacturing and sale of car interior
furnishing and related business
Changzhou Y-Teks Automotive Trim
Parts (“Changzhou Y-Teks”)
Manufacturing and sale of car interior
furnishing and related business
Union & NKH Auto
Parts Company
Uni Investment Co., Ltd. (“Uni
Investment”)
Investments
Uni Investment
Fuzhou Lianghong Motor Parts Co., Ltd.
(“Fuzhou Lianghong”)
Manufacturing of car seats and developing
the related market
Hangchow Liangrun Motor Parts Co.,
Ltd. (“Hangchow Liangrun”)
Manufacturing of car seats and developing
the related market
Yueki
Yue Ki Industrial (Samoa) Co., Ltd.
(“Yue Ki Samoa”)
Investments
Yue Ki Investment (HK) Co., Ltd. (“Yue
Ki HK”)
Investments
Yue Ki HK
Hangzhou Yuwan Auto Motive Parts
Limited (“Hangzhou Yuwan”)
Manufacturing of key car components,
electric cars and related parts
Yue Sheng
Y-Teks Co., Ltd. (“Y-Teks”)
Manufacturing and furnishing, cars and the
import and export of, and serving as sales
agent for, car parts
Yueki Industrial Co., Ltd. (“Yueki”)
Manufacturing and sale of car components
Yu Chang Company
Tian Wang Co., Ltd.
Sale of secondhand cars and related products
Luxgen Kaohsiung Co., Ltd. (“Luxgen
Kaohsiung”)
Sale, maintenance and repair of cars and
related products
Empower
Chunmin Enterprise Co., Ltd.
(“Chunmin”)
Comprehensive retail of car parts
Luxgen Motor Taichung Co., Ltd.
(“Luxgen Taichung”)
Sale, maintenance and repair of cars and
related products
Hong Yen Motor Ltd. (“Hong Yen”)
Investments
Yu Ming Insurance Co., Ltd.
Property insurance		 % ofOwnership
December 31
2020
2019
Remark
100.00
100.00
-
-
100.00
Liquidated in 3rd quarter of 2020.
100.00
100.00
-
-
100.00
Liquidated in 4th quarter of 2020.
-
100.00
Liquidated in 4th quarter of 2020.
70.44
-
The Group owned 100% of Tong Ling Kuo
Tong in the two reporting periods.
67.62
-
The Group owned 100% of Zi Bo Yu An in
the two reporting periods.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
-
100.00
Sold in 2ndquarter of 2020.
40.00
40.00
The Group owned 70.6% of Qingdao
Yuanhuang in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
90.00
90.00
The Group owned 99% of Hang Zhou
Hsiao Yu in the two reporting periods.
9.00
9.00
The Group owned 99% of Hang Zhou
Hsiao Yu in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
66.67
66.67
-
100.00
100.00
-
86.13
86.13
The Group owned 100% of Changzhou
Y-Teks in the two reporting periods.
51.00
51.00
-
100.00
100.00
-
66.67
66.67
-
79.50
79.50
The Group owned 100% of Hangchow
Liangrun in the two reporting periods.
100.00
100.00
-
100.00
100.00
-
55.89
55.89
The Group owned 100% of Hangzhou
Yuwan in the two reporting periods.
11.99
11.99
The Group owned 45.99% of Y-Teks in the
two reporting periods.
0.08
0.08
-
100.00
100.00
-
3.50
3.50
The Group owned 96.5% of Luxgen
Kaohsiung in the two reporting periods.
100.00
100.00
-
1.10
1.10
The Group owned 98.9% of Luxgen
Taichung the two reporting periods.
100.00
100.00
-
100.00
100.00
-
(Continued)

Annual Report 2020 253

Financial Information

Investor
Investee
Main Businesses
Hong Yen
Shanghai Yuming
Sale and maintenance of cars and parts
Luxgen
Luxgen Taipei
Sale, maintenance and repair of cars and
parts
Luxgen Taoyuan
Sale, maintenance and repair of cars and
parts
Luxgen Taichung
Sale, maintenance and repair of cars and
parts
Luxgen Tainan
Sale, maintenance and repair of cars and
parts
Luxgen Kaohsiung
Sale, maintenance and repair of cars and
parts
Sin Gan
Wholesale and retail of information software
Luxgen Overseas Holdings Private
Limited (“Luxgen Overseas
Holdings”)
Investments
Haitec Co., Ltd.
Product design of cars
Haitec
SinYi Co., Ltd. (“SinYi”)
Wholesale and retail of cars and parts
Hua-Chung Overseas Investment Co.,
Ltd. (“Hua-Chung Overseas”)
Investments
Haitec China Investment Company
(“Haitec China”)
Investments
Haitec Japan Company (“Haitec Japan”)
Product design of cars
Hang Zhou Haitec Company (“Hang
Zhou Haitec”)
Product design of cars		 % of Ownership
December 31
2020
2019
Remark
49.00
49.00
The Group owned 100% of Shanghai
Yuming in the two reporting periods.
99.99
99.99
-
59.99
59.99
The Group owned 79.99% of Luxgen
Taoyuan in the two reporting periods.
97.73
97.80
The Group owned 98.9% of Luxgen
Taichung in the two reporting periods.
94.18
94.20
-
92.24
93.00
The Group owned 96.5% of Luxgen
Kaohsiung in the two reporting periods.
19.78
19.78
The Group owned 93.04% of Sin Gan in in
the two reporting periods.
-
100.00
Liquidated in 3rd quarter of 2020.
41.15
100.00
The Group owned 99.99% of Haitec in 4th
quarter of 2020.
100.00
100.00
The Group acquiring control at December
31, 2019 and retrospect to December 31,
2018
100.00
100.00
The Group acquiring control at December
31, 2019 and retrospect to December 31,
2018
100.00
100.00
The Group acquiring control at December
31, 2019 and retrospect to December 31,
2018
-
100.00
The Group acquired control at December
31, 2019 and retrospect to December 31,
2018 and liquidated in 2nd quarter of
2020
96.77
96.77
The Group owned 100% of Hang Zhou
Haitec in the two reporting periods.
(Concluded)

  • b. Subsidiaries excluded from the consolidated financial statements: None.

  • c. Details of subsidiaries that have material non-controlling interests

Name of Subsidiary
YFC		 Proportion of Ownership and
Voting Rights Held by
Non-controlling Interests
December 31
2020
2019
54.25%
54.25%

See Table 9 for the information on place of incorporation and principal place of business.

Name of Subsidiary
YFC (excluding its
subsidiaries’
non-controlling
interests)
 Profit (Loss) Allocated to
Non-controlling Interests
For the Year Ended
December 31

2020
2019
$ 1,689,351
$ 1,621,650		 Accumulated Non-controlling
Interests
December 31
2020
2019
$ 11,277,818 $ 10,471,827

The summarized financial information below represents amounts before intragroup eliminations.

254 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Yulon Finance Corporation and Yulon Finance Corporation’s subsidiaries:

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Equity attributable to:
Owners of Yulon Finance Corporation
Non-controlling interests of Yulon Finance
Corporation
Non-controlling interests of Yulon Finance
Corporation’s subsidiaries
Revenue
Net profit from continuing operations
Other comprehensive income (loss) for the year
Total comprehensive income for the year
Profit attributable to:
Owners of YFC
Non-controlling interests of YFC
Non-controlling interests of YFC’s subsidiaries
Total comprehensive income attributable to:
Owners of YFC
Non-controlling interests of YFC
Non-controlling interests of YFC’s subsidiaries
Net cash inflow (outflow) from:
Operating activities
Investing activities
Financing activities
Net foreign exchange gains/(losses)
Net cash (outflow) inflow
2020
$ 29,632,864

$ 2,897,250
140,710

$ 3,037,960

$ 1,131,259
1,689,351
76,640

$ 2,897,250

$ 1,210,490
1,746,915
80,555

$ 3,037,960

$ 1,102,419
51,919
81,509
66,058

$ 1,301,905

Annual Report 2020 255

Financial Information

Dividends paid to non-controlling interest:
Non-controlling interests of YFC
Non-controlling interests of YFC’s subsidiaries		 December 31
2020
2019

$ 940,762 $ 856,912
44,773

48,516
$ 985,535
$ 905,428
(Concluded)
2020

$ 940,762
44,773

$ 985,535

17. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investment in associates
Investment in joint venture		 December 31 December 31
2020
$ 28,960,884
7,589

$ 28,968,473
 2019
$ 21,077,779

17,834
$ 21,095,613

a. Investments in associates

Material associates
Yulon Nissan Motor Co., Ltd.
China Motor Company
Foxtron Vehicle Technologies Co., Ltd.
Non-material associates		 December 31 December 31
2020

$ 10,770,926
4,146,769
7,431,785

22,349,480
6,611,404

$ 28,960,884
 2019
$ 10,619,377

3,898,949

-

14,518,326

6,559,453
$ 21,077,779

1) Material associates

Name
Yulon Nissan Motor Co., Ltd.
China Motor Company
Foxtron Vehicle Technologies Co., Ltd.		 December 31
2020
2019
50.02%
50.02%
8.87%
8.87%
49.00%
-

For the information of associates’ main business, operating location and registered country, please refer to Table 9.

The Group controlled over 50% of the shares of Yulon Nissan Motor Co., Ltd. (“Yulon Nissan”). However, an assessment of core technologies and the supply of major materials showed that the Group did not exercise control over Yulon Nissan. Thus, Yulon Nissan was not considered a Group subsidiary.

256 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

The investment in China Motor Company was accounted for by the equity method because despite the individual investment being less than 20%, the Group exercised significant influence on the investee’s operating and financial policy decisions.

The Group and China Motor Company and Tai-Yuen Textile Company had cross-shareholdings was accounted by equity method, and their recognition of investment income was accounted by the treasury stock method. In May 2019, in order to eliminate cross-shareholdings, focus on the automotive industry, and reduce the management scale, YuenWen Investment Company, which holds the shares of Taiyuan Textile and Taiwin Company, was merged with Xiang Wei Company. The combined consideration was $11,555,039 thousand. The Group recognized disposal of the investment accounted for using the equity method of $3,150,981 thousand, please refer to Note 29. Other gains and losses.

The Company, Haitec Co., Ltd. (“Haitec”), and Hon Hai Precision Ind. Co., Ltd. (“Hon Hai”) signed a joint venture agreement on March 6, 2020. Haitec and Hon Hai jointly invested in a new joint venture company- Foxtron Vehicle Technologies Co., Ltd. (“Foxtron Technologies”) to develop automobile-related businesses. As of December 31, 2020, Haitec held 49% of the joint venture and invested NT$7,542,000 thousand in assets.

In accordance with the joint loan contract, Haitec pledged all of its shares in Foxtron Technologies to the joint loan financial institutions. Please refer to Note 36 for further information regarding the amount of pledged investments accounted for using the equity method.

Fair values of investments in associates, based on the Level 1 fair value measurement derived from published quoted prices, are summarized as follows:

Associate
Yulon Nissan Motor Co., Ltd.
China Motor Company		 December 31
2020
2019
$ 38,862,950 $ 43,064,350
2,484,713
1,920,006

Share of profit or loss and other comprehensive income of material associates was calculated based on the financial statements which have been reviewed.

Summarized financial information in respect of each of the Group’s material associates is set out below. The summarized financial information below represents amounts shown in the associates’ financial statements prepared in accordance with IFRSs adjusted by the Group for equity accounting purposes.

Annual Report 2020 257

Financial Information

Yulon Nissan Motor Co., Ltd. and subsidiaries

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Proportion of the Group’s ownership
Equity attributable to the Group
Unrealized gain or loss with associates
Carrying amount
Revenue
Net income
Other comprehensive income
Total comprehensive income
Dividends received from Yulon Nissan Motor Co.,
Ltd.
China Motor Company and subsidiaries
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Non-controlling interest
2020
$ 20,378,864
34,218,829
(7,272,243)
(1,618,806)

45,706,644
(3,583,254)

$ 42,123,390

258 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Proportion of the Group’s ownership
Equity attributable to the Group
Unrealized gain or loss in associates
Intersect shareholding (accounted for by the
treasury stock method)
Carrying amount
Revenue
Net income
Other comprehensive income
Total comprehensive income
Dividends received from China Motor Company
Foxtron Technologies
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Non-controlling interest
Proportion of the Group’s ownership
Equity attributable to the Group
Carrying amount
2020
$ 30,874,600

$ 3,540,548
129,049

$ 3,669,597

$ -

Annual Report 2020 259

Financial Information

For the Year For the Year
Ended
December 31,
2020
Revenue $
-
Net income $ (223,010)
Other comprehensive income (1,925)
Total comprehensive income $ (224,935)

2) Aggregate information of associates that are not individually material

The Group’s share of:
(Loss) profit for the year
Other comprehensive income (loss)
Total comprehensive (loss) income for the year		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 317,591

40,447

$ 358,038
 2019
$ 2,280,034

117,416
$ 2,397,450

To enhance the Group’s competitiveness and further promote specialization in manufacture and sales as well increase the integration of sales resources in the Philippine as required by Nissan Motors Company, the Group invested in Nissan Philippines, Inc., the joint venture among Nissan Motor Co., Ltd., the UMC Group and Yulon Philippine.

The net equity of Nissan Philippines, Inc. has become negative. The amount has been reclassified to credit balance of long-term equity investments accounted for by the equity method (Note 27).

Though the Group’s percentage of ownership in China Engine Co., Ltd. was less than 20%, the Group exercised significant influence over the invested company and accounted for the investment by using the equity method.

The investments accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2020 and 2019 were based on the associates’ financial statements audited by auditors for the same years.

The investments accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2019 and 2018 were based on the associates’ financial statements audited by auditors for the same years. Some of the investments accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2020 and 2019 were based on the associates’ unaudited financial statements. However, the management of the Group considers the unaudited financial statements mentioned above do not have material impact on the Group’s consolidated financial statements.

260 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

b. Investment in joint ventures

Joint ventures that are not individually material
The Group’s share of:
Loss for the year
Total comprehensive income (loss) for the year		 December 31
2020
2019
$ 7,859
$ 17,834
For the Year Ended December 31
2020
$ -

$ -
 2019
$ (863)
$ (863)

The Group exercises joint control over Dong Yu (Hangzhou) Accessory Technology Co., Ltd. (“Dong Yu Tech. Company”), whose 75% investment in this entity and 50% of total number of directors were made through and composed of Yulon China Motor Investment, Dong Feng Yulon Sales Company and Singgual Travel. Dong Yu Tech. Company’s main business is car furnishing, installation and sale of car parts.

Dongfeng Yulon Company, the associate of the Group, re-elected directors and amended the agreement of shareholders in July 2017. Therefore, the relationship between Dongfeng Yulon Company and the Group changed from associate to joint venture. The amount of investment is zero as of December 31, 2020.

The investments accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2019 and 2018 were based on the associates’ financial statements audited by auditors for the same years. Some of the investments accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2020 and 2019 were based on the associates’ unaudited financial statements. However, the management of the Group considers the unaudited financial statements mentioned above do not have material impact on the Group’s consolidated financial statements.

18. PROPERTY, PLANT AND EQUIPMENT

a. Assets used by the Group

Cost
Balance at January 1, 2019
Effect of acquiring IFRS 16 within entities
merged
Additions
Disposals
Effect of foreign currency exchange differences
Reclassifications
Balance at December 31, 2019		 Freehold Land
$ 6,819,840

-
-
-
543
29,341

$ 6,849,724
 Buildings
$ 8,404,454
-
65,189
(9,665 )
(91,538 )

116,346
$ 8,484,786		 Equipment
$ 16,602,691
-
1,254,106
(730,166 )
(56,755 )
3,195,443
$ 20,265,319		 Vehicles
$ 1,620,815
-
1,378,879
(1,027,431 )
(35,667 )
(102,630)
$ 1,833,966		 Miscellaneous
Equipment
$ 7,645,711
-
695,755
(558,855 )
(62,376 )
81,839
$ 7,802,074		 Property on
Lease

$ 26,808,061

(26,808,061 )
-
-
-
-

$ -
 Construction in
Progress
Total
$ 496,777
$ 68,398,349
-
(26,808,061 )
556,881
3,950,810
-
(2,326,117 )
(20,145 )
(265,938 )

(345,033)
2,975,306
$ 688,480
$ 45,924,349
(Continued)

Annual Report 2020 261

Financial Information

Accumulated depreciation and impairment
Balance at January 1, 2019
Effect of acquiring IFRS 16 within entities
merged
Disposals
Reclassifications
Impairment loss
Depreciation expense
Effect of foreign currency exchange differences
Balance at December 31, 2019
Carrying amount at December 31, 2019
Cost
Balance at January 1, 2020
Effect of loss of control
Effect of disposal of consolidated entities
Additions
Disposals
Effect of foreign currency exchange differences
Reclassifications
Balance at December 31, 2020
Accumulated depreciation and impairment
Balance at January 1, 2020
Effect of loss of control
Effect of disposal of consolidated entities
Disposals
Reclassifications
Impairment loss
Depreciation expense
Effect of foreign currency exchange differences
Balance at December 31, 2020
Carrying amount at December 31, 2020		 Freehold Land
$ -

-
-
-
-
-
-

$ -

$ 6,849,724

$ 6,849,724

-
-
-
(253,870 )
(27,621 )
311,208

$ 6,879,441

$ -

-
-
-
-
-
-
-

$ -

$ 6,879,441
 Buildings
$ (4,152,646 )
-
9,123
1,278
-
(278,586 )

21,344
$ (4,399,487)
$ 4,085,299
$ 8,484,786
(60,352 )
-
78,016
(165,063 )
27,218

1,132,001
$ 9,496,606
$ (4,399,487 )
60,352
-
84,915
(53,118 )
(27,526 )
(304,004 )

(13,979)
$ (4,652,847)
$ 4,843,759		 Equipment
$ (10,854,708 )
-
460,432
(13,947 )
(6,225,237 )
(497,915 )
56,655
$ (17,074,720)
$ 3,190,599
$ 20,265,319
(22,604 )
(1,556 )
1,120,876
(766,849 )
26,613
(468,101)
$ 20,153,698
$ (17,074,720 )
52,576
1,441
752,948
6,950
(1,093,065 )
(367,362 )
(23,175)
$ (17,744,407)
$ 2,409,291		 Vehicles
$ (522,738 )
-
292,868
(10,947 )
(14,830 )
(254,466 )
5,984
$ (504,129)
$ 1,329,837
$ 1,833,966
(34,352 )
(4,177 )
439,827
(617,845 )
(911 )
(11,627)
$ 1,604,881
$ (504,129 )
34,352
2,314
199,460
(17,773 )
(178,761 )
(281,838 )
329
$ (746,046)
$ 858,835		 Miscellaneous
Equipment
$ (5,465,544 )
-
429,567
8,793
(44,166 )
(642,215 )
47,473
$ (5,666,092)
$ 2,135,982
$ 7,802,074
(477,261 )
(32,318 )
253,989
(583,570 )
(73,691 )
61,301
$ 6,950,524
$ (5,666,092 )
447,289
23,082
485,270
98,939
(7,877 )
(521,441 )
62,485
$ (5,078,345)
$ 1,872,179		 Property on
Lease

$ (9,418,242 )

(9,418,242 )
-
-
-
-
-

$ -

$ -

$ -

-
-
-
-
-
-

$ -

$ -

-
-
-
-
-
-
-

$ -

$ -
 Construction in
Progress
Total
$ -
$ (30,413,878 )
-
(9,418,242 )
-
1,191,990
-
(14,823 )
(53,019 )
(6,337,252 )
-
(1,673,182 )

-
131,456
$ (53,019)
$ (27,697,447)
$ 635,461
$ 18,226,902
$ 688,480
$ 45,924,349
-
(594,569 )
-
(38,051 )
725,543
2,618,251
(1,736 )
(2,388,933 )
2,179
(46,213 )

(980,357)
44,425
$ 434,109
$ 45,519,259
$ (53,019 )
$ (27,697,447 )
-
594,569
-
26,837
-
1,522,593
-
34,998
-
(1,307,229 )
-
(1,474,645 )

-
25,660
$ (53,019)
$ (28,274,664)
$ 381,090
$ 17,244,595
(Concluded)

For the years ended December 31, 2020 and 2019, the brand segments evaluated the sales volume of the remaining car models declined; therefore, the recoverable amounts of some equipment were lower than the carrying amounts. As a result, there were impairment losses of $1,307,229 thousand and $6,337,252 thousand for 2020 and 2019.

The Brand Segments tested for impairment of motor design and research and development outputs and mold of the model at the end of the financial reporting period, and calculation of recoverable amount is based on the value in use and the net fair value. The calculation of the value in use is based on the cash flows of the Group’s future product life cycle financial forecasts to reflect the specific risks of the relevant cash-generating unit. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Both of calculations are calculated using an annual discount rate of 9.25% and 8.23% at December 31, 2020 and 2019.

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives as follows:

Buildings 3-60 years
Equipment 2-20 years or unit-of-production method
Vehicles 4-5 years
Miscellaneous equipment 1-15 years
Leased assets 3 years or according to terms of lease

262 YULON MOTOR

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Annual Report 2020

b. Assets leased under operating leases

Cost
Balance at January 1, 2019
Effect of acquiring IFRS 16 within entities merged
Additions
Disposals
Reclassifications
Effect of foreign currency exchange differences
Balance at December 31, 2019
Accumulated depreciation and impairment
Balance at January 1, 2019
Effect of acquiring IFRS 16 within entities merged
Disposals
Recognized reversal of impairment losses
Reclassifications
Depreciation
Effect of foreign currency exchange differences
Balance at December 31, 2019
Carrying amounts at December 31, 2019
Cost
Balance at January 1, 2020
Additions
Disposals
Reclassifications
Effect of foreign currency exchange differences
Balance at December 31, 2020
Accumulated depreciation and impairment
Balance at January 1, 2020
Disposals
Recognized reversal of impairment losses
Reclassifications
Depreciation
Effect of foreign currency exchange differences
Balance at December 31, 2020
Carrying amounts at December 31, 2020		 Leased Assets
$ 26,808,061
(26,808,061)
-
-
-
-

$ -

$ (9,418,242)
9,418,242
-
-
-
-
-

$ -

$ -

$ -
-
-
-
-

$ -

$ -
-
-
-
-
-

$ -

$ -
 Vehicles
$ -

26,808,061

10,183,820

(9,085,585)

(109,462)

(76,972)
$ 27,719,862
$ -

(9,418,242)

4,781,962

69,782

47,863

(5,078,767)

31,812
$ (9,565,590)
$ 18,154,272
$ 27,719,862

9,531,414

(8,597,408)

(85,116)

18,939
$ 28,587,691
$ (9,565,590)

5,011,038

1,017

42,934

(5,772,410)

(7,000)
$ (10,290,011)
$ 18,297,680

Annual Report 2020 263

Financial Information

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives as follows:

Vehicles 3 years or according to terms of lease

For the year ended December 31, 2020 and 2019, the Group recognized reversal of impairment losses due to the sale of second-handed vehicles for $1,017 thousand and $69,782 thousand.

Property, plant and equipment pledged as collateral for bank borrowings were disclosed in Note 36.

19. INVESTMENT PROPERTIES

Freehold Land
Cost
Balance at January 1, 2019
$ 5,998,254
Reclassifications to property, plant and
equipment
(29,341)
Reclassifications to property under
construction
(1,222,389)
Additions
-
Effect of foreign currency exchange
differences
-
Balance at December 31, 2019
$ 4,746,524
Accumulated depreciation and impairment
Balance at January 1, 2019
$ -
Reclassifications to property, plant and
equipment
-
Recognized of impairment losses
-
Depreciation expense
-
Effect of foreign currency exchange
differences
-
Balance at December 31, 2019
$ -
Carrying amount at December 31, 2019
$ 4,746,524		 Buildings
$ 4,748,281
102,251
-
307,270
(179)

$ 5,157,623

$ (990,085)
3,843
(533,488)
(55,935)
(3,909)

$ (1,579,574)

$ 3,578,049
 Total
$ 10,746,535

72,910

(1,222,389)

307,270

(179)
$ 9,904,147
$ (990,085)

3,843

(533,488)

(55,935)

(3,909)
$ (1,579,574)
$ 8,324,573
(Continued)

264 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Freehold Land
Cost
Balance at January 1, 2020
$ 4,746,524
Reclassifications to property, plant and
equipment
(311,208)
Reclassifications to property under
construction
1,253,791
Additions
-
Disposals
(52,741)
Effect of foreign currency exchange
differences
22
Balance at December 31, 2020
$ 5,636,388
Accumulated depreciation and impairment
Balance at January 1, 2020
$ -
Reclassifications to property, plant and
equipment
-
Depreciation expense
-
Effect of foreign currency exchange
differences
-
Balance at December 31, 2020
$ -
Carrying amount at December 31, 2020
$ 5,636,388		 Buildings
$ 5,157,623
(1,264,155)
1,863,414
1,798,478
-
(372)

$ 7,554,988

$ (1,579,574)
287,139
(66,808)
157

$ (1,359,086)

$ 6,195,902
 Total
$ 9,904,147

(1,575,363)

3,117,205

1,798,478

(52,741)

(350)
$ 13,191,376
$ (1,579,574)

287,139

(66,808)

157
$ (1,359,086)
$ 11,832,290
(Concluded)

The investment properties are depreciated on a straight-line basis over their estimated useful lives of 30 to 60 years.

The design of the commercial district of Yulon Town was modified in October 2019 and only consisted of malls. In addition, the declaration of the commencement of the district was temporarily stopped, and will be re-designed depending on the market situation. Therefore, the Group expected a portion of the individual asset had become no economic benefits and recognized impairment loss of commercial district (included in investment properties) $533,488 in 2019.

The fair values of investment assets as of December 31, 2020 and 2019 based on the valuation by an independent professional appraiser were $29,197,259 thousand and $23,519,792 thousand.

Annual Report 2020 265

Financial Information

20. LEASE ARRANGEMENTS

  • a. Right-of-use assets
Carrying amount
Land
Buildings
Vehicles
Others		 December 31 December 31
2020
$ 1,577,884

1,569,039
18,471
24,808

$ 3,190,202
 2019
$ 1,614,287
1,893,932
32,894

88,145
$ 3,629,258
Additions of right-of-use assets
Depreciation charge for right-of-use assets
Land
Buildings
Vehicles
Others		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 562,958

$ 182,242

557,512
12,669
24,636

$ 777,059
 2019
$ 387,074
$ 277,759
706,291
22,529

15,057
$ 1,021,636
  • b. Lease liabilities
Carrying amount
Current
Non-current
Range of discount rate for lease liabilities was as follows:		 December 31 December 31
2020
$ 604,309

$ 1,742,404
 2019
$ 788,127
$ 1,951,982
Land
Buildings
Vehicles
Others		 December 31
2020
2019
0.9%-6.41%
0.9%-6.41%
0.9%-7.08%
0.9%-6.64%
0.9%-5.24%
0.9%-5.24%
0.9%-6.64%
0.9%-6.64%

266 YULON MOTOR

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Annual Report 2020

  • c. Material leasing activities and terms - as lessee

The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

  • d. Other lease information
Expenses relating to short-term leases
Expenses relating to low-value asset leases
Total cash outflow for leases		 For the Year Ended For the Year Ended December 31
2020
$ 109,079

$ 12,797

$ (780,094)
 2019
$ 152,354
$ 16,793
$ (965,643)

The Group’s leases of certain vehicles and office equipment qualify as short-term leases and leases of certain vehicles and office equipment qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

21. INTANGIBLE ASSETS

Cost
Balance at January 1, 2019
Additions
Reclassifications
Disposals
Effect of foreign currency exchange
differences
Balance at December 31, 2019
Accumulated amortization and impairment
Balance at January 1, 2019
Amortization expense
Impairment loss
Reclassifications
Disposals
Effect of foreign currency exchange
differences
Balance at December 31, 2019
Carrying amount at December 31, 2019		 Motor Design
and Research
and
Development
Outputs
$ 18,159,977
1,980,115
(317,391)
-
(7,997)
$ 19,814,704
$ (7,021,126)
(237,702)
(6,246,802)
-
-
-
$ (13,505,630)
$ 6,309,074		 Others
(Including
Software)
$ 1,556,215
154,761
20
(3,175)
(80,571)

$ 1,627,250

$ (1,118,468)
(112,802)
(4,507)
-
1,145
67,959

$ (1,166,673)

$ 460,577
 Total
$ 19,716,192

2,134,876

(317,371)

(3,175)

(88,568)
$ 21,441,954
$ (8,139,594)

(350,504)

(6,251,309)

-

1,145

67,959
$ (14,672,303)
$ 6,769,651

(Continued)

Annual Report 2020 267

Financial Information

Cost
Balance at January 1, 2020
Additions
Reclassifications
Disposals
Effect of foreign currency exchange
differences
Balance at December 31, 2020
Accumulated amortization and impairment
Balance at January 1, 2020
Amortization expense
Impairment loss
Reclassifications
Disposals
Effect of foreign currency exchange
differences
Balance at December 31, 2020
Carrying amount at December 31, 2020		 Motor Design
and Research
and
Development
Outputs
$ 19,814,704
326,876
(5,897,888)
(389,907)
1,528
$ 13,855,313
$ (13,505,630)
(173,042)
(1,224,632)
1,376,310
-
-
$ (13,526,994)
$ 328,319		 Others
(Including
Software)
$ 1,627,250
170,732
13,171
(53,147)
4,581

$ 1,762,587

$ (1,166,673)
(120,288)
(24,414)
(360)
25,047
(752)

$ (1,287,440)

$ 475,147
 Total
$ 21,441,954

497,608

(5,884,717)

(443,054)

6,109
$ 15,617,900
$ (14,672,303)

(293,330)

(1,249,046)

1,375,950

25,047

(752)
$ (14,814,434)
$ 803,466
(Concluded)

The vehicle model development cost of the Group includes SUV model, MPV model, GPS (S5 Sedan) model, GPK (U6 SUV) model, LCS (S3 Sedan) model, LCH model (U5 SUV), GPM model, MBU model, M platform, ME engine, EF engine, Plug-in hybrid electric vehicle and other related vehicle model development cost.

The Brand Segments test impairment of motor design and research and development outputs and molds of the models on an annual basis and in the event of signs of impairment; the calculation of recoverable amount is based on the value in use and the net fair value. The calculation of the value in use is based on the cash flows of the Group’s future product life cycle financial forecasts to reflect the specific risks of the relevant cash-generating unit. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Both calculations use an annual discount rate of 9.25% and 8.23% at December 31, 2020 and 2019.

In 2020 and 2019, the amounts of impairment loss on intangible assets were $1,224,632 thousand and $6,246,802 thousand; the estimated future cash flows of the intangible assets were reduced and the estimated recoverable amounts were lower than the carrying amounts.

268 YULON MOTOR

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Annual Report 2020

The ownership of vehicle registration plates, the other intangible assets of the Group, was acquired by Car-Plus (Suzhou) Auto Leasing Co., Ltd. and Car-Plus Leasing (Shanghai) for operating purpose. The ownership can be transacted in the market, and can also be transferred to various vehicles; thus, it was classified as intangible assets with infinite useful life.

The decrease in the recoverable amount of vehicle registration plates led to recognition of impairment loss of $428 thousand and $4,507 thousand in 2020 and 2019. As the estimated future cash flows expected to arise from the related plates have decreased, the Group carried out a review of the recoverable amount of that related plates and determined that the carrying amount exceeded the recoverable amount; thus, impairment loss was recognized.

Intangible assets are amortized on a straight-line basis over the following estimated useful lives of the asset:

Computer software 2-3 years Motor design and research and development outputs Units-of-production method Others 1-10 years

22. BORROWINGS

  • a. Short-term borrowings
Secured borrowings (Note 36)
Bank loans
Unsecured borrowings
Line of credit borrowings
Interest rate		 December 31 December 31
2020
$ 3,974,704
41,332,922

$ 45,307,626

0.75%-6.95%		 2019
$ 9,227,430

68,894,841
$ 78,122,271
0.8%-8.50%
  • b. Short-term bills payable
Commercial paper
Less: Unamortized discount on bills payable
Interest rate		 December 31 December 31
2020
$ 106,747,380
202,401

$ 106,544,979

0.37%-2.05%		 2019
$ 98,766,249

282,948
$ 98,483,301
0.72%-2.61%

Annual Report 2020 269

Financial Information

c. Long-term borrowings

Secured borrowings
Bank loans
Unsecured borrowings
Credit borrowings
Commercial paper (recurring)
Less: Current portion long-term borrowings
Interest rates		 December 31 December 31
2020
$ 10,263,184

408,906
3,145,608
1,480,632

$ 12,337,066

0.91%-5.23%		 2019
$ 199,901
3,284,199
2,845,740

3,549,488
$ 2,780,352
1.01%-5.23%

Note: Haitec Co., Ltd. borrowed a total of NT$12.199 billion from 17 financial institutions, and as the original loan maturity date expired, Haitec Co., Ltd. consulted with the 17 financial institutions and reached a consensus and adopted a joint loan case model; on July 7, 2020, the board of directors of Haitec Co., Ltd. approved the application for a joint loan line of NT$12.199 billion from the 17 financial institutions to repay the matured loan, and had paid 15% of the loan on August 31, 2020. The credit term for this joint loan is 5 years, and when it expires in the 5th year, if certain conditions are met, Haitec Co., Ltd. will automatically extend the credit period for 2 years

23. BONDS PAYABLE

Convertible bonds
Unsecured domestic bonds
Secured domestic bonds
Less: Discounts on bonds payable
Less: Current portion
Unsecured domestic bonds		 December 31 December 31
2020
$ 25,200,000
4,288,000
(66,177)

29,421,823
(14,121,823)

$ 15,300,000
 2019
$ 25,650,000

-

9,553

25,640,447

10,340,447
$ 15,300,000

The Group issued unsecured corporate bonds on December 12, 2017, with each issuance amounting to NT$7 billion and NT$3 billion, respectively, and the bonds have five-year maturities and seven-year maturities and simple interest at rates of 1.04% and 1.07%, respectively, payable annually. The principal amounts of both bonds would be repaid on the maturity date. The Group also issued unsecured corporate bonds on December 25, 2018, with each issuance amounting to NT$3.6 billion and NT$1.7 billion, respectively, and the bonds have five-year maturities and ten-year maturities and simple interest at rates of 1.18% and 1.80%, respectively, payable annually.

Yulon Finance Corporation issued three-year maturity, unsecured corporate bonds on May 12, 2017, August 11, 2017, January 8, 2018, August 20, 2020, and November 9, 2020 with issuance

270 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

amounts of $2 billion, $2.35 billion, $2.1 billion, $1.7 billion and $2.2 billion and simple interest rates of 1.07%, 1.02%, 0.85%, 0.85% and 0.85% payable annually, respectively. The principal amounts of the bonds are repayable on the maturity date. The principal amount of the unsecured corporate bond issued on May 12, 2017 and August 11, 2017 had been repaid on May 12, 2020 and August 11, 2020. Yulon Finance Corporation also issued five-year maturity unsecured corporate bonds on July 9, 2019 and August 14, 2019, with issuance amounts of $2 billion and $1.9 billion and simple interest rates both of 0.90% payable annually. The principal amounts of the bonds are repayable 50% in the fourth year and 50% in the fifth year. Yulon Finance Corporation issued three-year maturity secured corporate bonds on January 13, 2020, with issuance amount of $4.288 billion and simple interest rate of 0.69% payable annually. The principal amount of the bonds is repayable on the maturity date.

24. OTHER LIABILITIES

Current
Other payables
Equipment payables
Accrued expense payable
Dividends payable
Others
Other liabilities
Guarantee deposits received
Others
Non-current
Other liabilities
Guarantee deposits received
Others		 December 31 December 31
2020
$ 1,670,165
7,467,083
289,948
2,900,348

$ 12,327,544

$ 10,487,968
2,552,549

$ 13,040,517

$ 698,287
51,302

$ 749,589
 2019
$ 2,489,902

4,404,614

224,088

2,886,557
$ 10,005,161
$ 10,869,711

2,092,737
$ 12,962,448
$ 164,007

240,233
$ 404,240

Annual Report 2020 271

Financial Information

25. PROVISIONS

Current
Financial guarantee provisions
Warranties
Non-current
Warranties		 December 31 December 31
2020
$ 156,060

3,211

$ 159,271

$ 641,441
 2019
$ 221,556

1,938
$ 223,494
$ 724,016

The customers of Yulon Finance Corporation and SCC signed car loan contracts with banks, with Yulon Finance Corporation and SCC acting as car loan agents and providing customers with account management services. Under the contracts, Yulon Finance Corporation and SCC are responsible for repaying any uncollectable loans arising from customer default. Yulon Finance Corporation and SCC have estimated their potential financial guarantee loss on any default on the basis of past experience.

Sin Jang and YES-Energy recognized provision cost based on the estimated amount of service costs during the terms of service warranties of the products.

The validity of warranties for Nissan and Luxgen cars provided by the Group are limited to 3 years of purchase or mileage of under 100,000 kilometers. Provisions have been estimated for possible maintenance costs.

26. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company and subsidiaries of the Group adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Company and its subsidiaries of the Group are in accordance with the Labor Standards Law. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company and subsidiaries contribute amounts equal to 7% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Group has

272 YULON MOTOR

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no right to influence the pension fund investment policy and strategy.

The amounts included in the consolidated balance sheets on of the Group’s defined benefit plans were as follows:

Present value of the defined benefit obligation
Fair value of plan assets
Net defined benefit liability		 December 31 December 31
2020
$ 2,165,878

(1,491,385)

$ 674,493
 2019
$ 2,422,456
(1,464,590)
$ 957,866

Movements in net defined benefit liability were as follows:

Present Value
of the Defined Net Defined
Benefit Fair Value of Benefit
Obligation the Plan Assets
Liability (Asset)
Balance at January 1, 2019 $ 2,528,904 $ (1,554,462)
 $ 974,442
Service cost
Current service cost 31,218 - 31,218
Past service cost and loss (gain)
on settlements (670) - (670)
Net interest expense (income) 28,026 (17,400)
 10,626
Recognized in profit or loss 58,574 (17,400) 41,174
Remeasurement
Return on plan assets (excluding
amounts included in net
interest) - (56,494) (56,494)
Actuarial loss - changes in
demographic assumptions (1,403) - (1,403)
Actuarial loss - changes in
financial assumptions 96,344 - 96,344
Actuarial loss - experience
adjustments 60,254 -
 60,254
Recognized in other comprehensive
income 155,195 (56,494)
 98,701
Contributions from the employer - (72,617) (72,617)
Benefits paid (320,217) 236,383
 (83,834)
Balance at December 31, 2019 $ 2,422,456 $ (1,464,590)
 $ 957,866
Balance at January 1, 2020 $ 2,422,456 $ (1,464,590)
 $ 957,866
Service cost
Current service cost 28,939 - 28,939
Net interest expense (income) 17,911 (11,558)
 6,353
Recognized in profit or loss 46,850 (11,558)
 35,292
(Continued)

Annual Report 2020 273

Financial Information

Present Value Present Value
of the Defined Net Defined
Benefit Fair Value of Benefit
Obligation the Plan Assets
Liability (Asset)
Remeasurement
Return on plan assets (excluding
amounts included in net
interest) $ - $ (50,028) $
(50,028)
Actuarial loss - changes in
demographic assumptions 9,436 - 9,436
Actuarial loss - changes in
financial assumptions 60,209 - 60,209
Actuarial loss - experience
adjustments (12,367) -
 (12,367)
Recognized in other comprehensive
income 57,278 (50,028)
 7,250
Contributions from the employer - (174,782) (174,782)
Benefits paid (360,706) 209,573
 (151,133)
Balance at December 31, 2020 $ 2,165,878 $ (1,491,385)
 $
674,493
(Concluded)

The Group is exposed to the following risks:

  • 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. Based on relevant regulations, the return on plan assets should not be below the interest rate for a two-year time deposit with local banks.

  • 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

  • 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. Thus, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used in the actuarial valuations were as follows:

Discount rate(s)
Expected rate(s) of salary increase		 December 31
2020
2019
0.35%-0.75%
0.68%-1.25%
1%-2.5%
1%-3%

274 YULON MOTOR

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If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

December 31, December 31,
2020 2019
Discount rate(s)
0.25% increase $ (59,929) $ (67,459)
0.25% decrease $ 65,803 $ 72,385
Expected rate(s) of salary increase
0.25% increase $ 63,918 $ 72,069
0.25% decrease $ (58,512) $ (67,589)

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

The expected contributions to the plan for the next year
The average duration of the defined benefit obligation		 December 31 December 31
2020
$ 85,147

9-16 years		 2019
$ 168,306
9-17 years

27. EQUITY

  • a. Share capital

Common shares

Number of shares authorized (in thousands)
Shares authorized
Number of shares issued and fully paid (in thousand)
Shares capital
Capital surplus		 December 31 December 31
2020
2,000,000

$ 20,000,000

1,000,000

$ 10,000,000
4,508,131

$ 14,508,131
 2019

2,000,000
$ 20,000,000

1,572,920
$ 15,729,199

4,508,131
$ 20,237,330

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

On June 18, 2020, the Company’s shareholders held a meeting and resolved to make up for the loss by reducing capital by NT$5,729,199 thousand, i.e., eliminating 572,920 thousand shares. The ratio of capital reduced was about 36.4239%, and ended with 1,000,000 shares after the reduction. The resolution was approved by the Financial Supervisory Commission on July 21, 2020, and the board of directors resolved to set August 11, 2020 as the base date for

Annual Report 2020 275

Financial Information

capital reduction with the authorization of the shareholders in their meeting.

b. Capital surplus

May be used to offset a deficit, distributed as cash
dividends, ortransferred to share capital (Note)
Arising from issuance of common shares
Arising from treasury share transactions
Not be used for any purpose
Arising from share of changes in capital surplus of
associates or joint ventures		 December 31 December 31
2020
$ 4,508,131

2,018,204
$ 37,553

$ 6,563,888
 2019
$ 4,508,131
2,018,204
$ 40,160
$ 6,566,495
(Concluded)

Note: Such capital surplus maybe used to offset a deficit, in addition, when the Company have no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

c. Retained earnings and dividend policy

The Company’s Articles of Incorporation provide that appropriation for legal reserve should be made at 10% of annual net income, less any accumulated deficit. From the remainder of the net income, appropriation for special reserve will be made based on relevant laws and regulations, and then any remaining profit together with any undistributed retained earnings may be appropriated and distributed.

The Company’s operating environment is in a mature industry. The Company shall consider profitability, future operating plans and funding needs, and industry condition, and long-term shareholders’ rights and long-term financial planning in the distribution of earnings. Dividends may be paid in cash or stock; total dividends should not be lower than 10% of distributable net profit, and cash dividends should not be lower than 20% of total dividends. The distribution plan will be proposed by the Company’s board of directors and approved in the shareholders’ meeting.

In accordance with the amendments to the Company Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The shareholders held their regular meeting on June 21, 2016 and, in that meeting, had resolved amendments to the Company’s Articles of Incorporation (the “Articles”), particularly the amendment to the policy on dividend distribution and the addition of the policy on distribution of employees’ compensation.

For information on accrued compensation of employees and remuneration to directors and supervisors and the actual appropriations, please refer to Note 29-g.

276 YULON MOTOR

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Under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”, the Company should appropriate to or reverse from special reserve.

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

The appropriations of earnings for 2018 approved in the shareholders meeting on June 21, 2019, respectively, were as follows:

Legal reserve
Special reserve
Cash dividend		 Appropriation
of Earnings
2018
$ 203,703
1,000,000
1,053,856
Dividend Per
Share
(N.T. Dollar)
2018
$ 0.67

At the shareholders’ meeting on June 18, 2020, the Company approved the reduction of capital to offset deficit and resolved not to distribute dividends.

At the board of directors’ meeting on March 25, 2021, the Company proposed appropriation and distribution of earnings as follows:

Reversal of special reserve
Cash dividends		 Appropriation
of Earnings
2020
$ 2,000,000
1,000,000
Dividend Per
Share
(N.T. Dollar)
2020
$ 1

The appropriations of earnings for 2020 are subject to the resolution in the shareholders’ meeting to be held on June 17, 2021.

  • d. Special reserve
Balance at January 1
Appropriation of earnings
Offset deficit
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 39,373,565
-
(15,145,000)

$ 24,228,565
 2019
$ 38,373,565

1,000,000

-
$ 39,373,565

On first-time adoption of IFRSs, the Group appropriated for special reserve, the amounts that were the same as the unrealized revaluation increment and cumulative translation differences transferred to retained earnings, which were $8,255,468 thousand and $655,829 thousand,

Annual Report 2020 277

Financial Information

respectively.

If the special reserve appropriated on the first-time adoption of IFRSs relates to property, plant and equipment and investment property other than land, the special reserve may be reversed continuously over the period of use. The special reserve relating to land may be reversed on the disposal or reclassification of the related assets. A proportionate share of the special reserve relating to exchange differences arising from the translation of the financial statements of foreign operations (including the subsidiaries of the Company) will be reversed on the Group’s disposal of foreign operations; on the Group’s loss of significant influence, however, the entire special reserve will be reversed.

Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and thereafter distributed.

  • e. Others equity items

  • 1) Exchange differences on translating foreign operations

Balance at January 1
Exchange differences arising on translating the
financial statements of foreign operations
Share of exchange difference of subsidiaries,
associates and jointly ventures accounted for
using the equity method
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ (1,255,680)
146,448
(9,582)

$ (1,118,814)
 2019
$ (919,398)
(69,275)

(267,007)
$ (1,255,680)
  • 2) Unrealized gain/(loss) on financial assets at FVTOCI
Balance at January 1
Unrealized gain/(loss) - equity instruments
Share from associates accounted for using the
equity method
Cumulative unrealized gain/(loss) of equity
instruments transferred to retained earnings due
to disposal
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 1,397,517

7,358
74,871
42,851

$ 1,522,597
 2019
$ 1,466,521
194,934
90,460

(354,401)
$ 1,397,514

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Annual Report 2020

3) Gain (loss) on hedging instruments

Balance at January 1
Interest rate risk - interest rate swaps
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ (4)

28

$ 24
 2019
$ 252

(256)
$ (4)

f. Non-controlling interests

Balance at January 1
Attributable to non-controlling interests:
Share of profit for the year
Exchange difference arising on translation of foreign
entities
Unrealized gain/(loss) on financial assets at FVTOCI
Gain/(loss) on hedging instruments
Remeasurement on defined benefit plans
Share of other comprehensive income of associates
and joint ventures accounted for using the equity
method
Partial disposal of subsidiaries
Non-controlling interest relating to differences between
acquisition or disposal price and carrying value of
subsidiaries
Amount related to disposal of subsidiaries (Note 32)
Cash dividends from subsidiaries
Balance at December 31		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 11,244,743
2,100,352
15,228
15
33
(5,062)
18,411
-
-
4,056,366
(1,293,234)


$ 16,136,852
 2019
$ 12,122,134

496,643

(173,284)

2,238

(195)

586

4,489

(297,681)

196,389
-

(1,106,576)
$ 11,244,743

g. Treasury shares

Number of
Shares, Addition Reduction Number of
Beginning of During the During the Shares, End of
Reasons for Redemption Year Year Year Year
For the year ended
December 31, 2020
Long-term investment of
subsidiary transferred to
treasury stock
7,527		 - -
7,527
(Continued)

Annual Report 2020 279

Financial Information

Number of
Shares, Addition Reduction Number of
Beginning of During the During the Shares, End of
Reasons for Redemption Year Year Year Year
For the year ended
December 31, 2019
Long-term investment of
subsidiary transferred to
treasury stock
11,839		 - -
11,839
(Concluded)

The Company’s shares held by subsidiaries as of December 31, 2020 and 2019 were as follows:

Number of Carrying
Shares Held Amount Market Value
Name of Subsidiaries (In Thousands) (In Thousands)
(In Thousands)
December 31, 2020
Yu Ching Business Co., Ltd. 7,526 $ 352,990
 $ 352,990
Yu Pong Business Co., Ltd. 1 4
4
$ 352,994
 $ 352,994
December 31, 2019
Yu Ching Business Co., Ltd. 11,838 $ 231,442
 $ 231,442
Yu Pong Business Co., Ltd. 1 2
2
$ 231,444
 $ 231,444

The subsidiaries holding treasury shares, however, retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

28. REVENUE

  • a. Contract information

  • 1) Revenue from the sale of goods

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

Revenue from the sale of goods comes from sales of vehicles and parts. The Group recognized revenue when goods are delivered and legal ownership is transferred.

Horizontal Segments property on lease includes property, plant and equipment held for rental to others that are transferred to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets are

280 YULON MOTOR

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Annual Report 2020

recognized as revenue.

The Group does not recognize sales revenue on materials delivered to subcontractors because this delivery does not involve a transfer of risks and rewards of the materials’ ownership.

The sale of goods that results in awarded credits for customers under the Group’s award scheme is accounted for as a multiple element revenue transaction, and the fair value of the consideration received or receivable is allocated between the goods supplied and the awarded credits granted. The consideration allocated to the awarded credits is measured with reference to their fair value, i.e. the amount for which the awarded credits could be sold separately. Such consideration is not recognized as revenue at the time of the initial sale transactions but is deferred and recognized as revenue when the awarded credits are redeemed and the Group’s obligations have been fulfilled.

  • 2) Rental income

Rental income from an operating lease is recognized on a straight-line basis over the term of the lease.

Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding on the leases.

  • 3) Investment income

For security transactions by Yung Hong Investment Company, the difference between the carrying amount of security and the actual selling price is recognized in profit or loss when these Group entities transfer substantially all the risks and rewards of security ownership to another party.

  • 4) Revenue from the rendering of services

Revenue from a contract to provide services is recognized with reference to the stage of completion of the contract.

  • 5) Interest revenue from acquired accounts receivable

Interest revenues from the accounts receivable of YFC and Yustar and Yu Rich collectively during the years ended December 31, 2020 and 2019 were $6,991,134 thousand and $5,974,987 thousand, respectively. As of December 31, 2020 and 2019, the uncollected accounts receivable of YFC and Yustar and Yu Rich collectively were $103,425,844 thousand and $90,946,522 thousand, respectively, and recognized as accounts receivable.

  • 6) Interest income on installment sales

Interest revenue on acquired receivables from installment sales of the Company, Shinshin and TAC Leasing (Suzhou) in 2020 and 2019 amounted to $2,438,933 thousand and $2,022,352 thousand, respectively. The income from sales and cost of goods sold of the combined company without a dealer’s interest were expressed in net amount; the gross amounts were not included in the consolidated statements of comprehensive income.

Annual Report 2020 281

Financial Information

  • 7) Agency revenue (included in other operating revenue)

Agency revenues of YFC and Yustar recognized for the years ended December 31, 2020 and 2019 were $348,980 thousand and $458,322 thousand, respectively. In the event that payments were not made on due dates, the Company and Yustar reimburse the bank for the loan and assumes all collection rights against the debtor. As of December 31, 2020 and 2019, the managerial service account balances of the loans provided by the Company and Yustar collectively were $4,166,684 thousand and $5,904,738 thousand, respectively. The reimbursements from the Company and Yustar to banks as of December 31, 2020 and 2019 were $523,070 thousand and $750,778 thousand, respectively. The reimbursements to banks were listed as accounts receivable before recognition of interest revenue from acquired accounts receivable using effective interest method.

The amounts of financial guarantee contracts listed above were the maximum total managerial service loans provided by the Group that require full payment by the Group in the event of debtor’s default. The Group had estimated the potential financial guarantee loss on any default on the basis of past experience (see Note 25).

b. Disaggregation of revenue

Refer to Note 41 for details of revenue information.

29. NET PROFIT AND OTHER COMPREHENSIVE INCOME

  • a. Other operating revenue
Rental revenue
Commission revenue
Subsidy revenue
Others
Other gains and losses
Gains (losses) on disposal of property, plant and
equipment, investment property and intangible assets
Gain on disposal of associates
Net foreign exchange loss
Net gain (loss) on financial assets mandatorily as at
FVTPL
Impairment loss
Compensation loss (Note)		 For the Year Ended December 31
2020
2019
$ 128,128
$ 133,706
264,397
263,619
186,729
250,702
431,163

619,301
$ 1,010,417
$ 1,267,328
For the Year Ended December 31
2020
2019
$ 681,587
$ (26,171)
(422)
3,150,981
60,679
(184,527)
39,122
42,819
-
(2,278,134)
(1,948,043)
-
(Continued)
  • b. Other gains and losses

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Annual Report 2020

Gain on deconsolidation of subsidiary (refer to Note 32)
Others		 4,040,489
(450,208)

$ 2,423,204
 -

(438,193)
$ 266,775
(Concluded)

Note: Foxtron Technologies, the Haitec associate, repositioned original business plans and products, including termination of development of some systems and gasoline power related parts, etc. Since Haitec was first party of the original development contract, Haitec recognized the compensation loss related to the contract.

c. Finance costs

Interest on bank overdrafts and loans
Interest on corporate bonds
Other interest expense
Less: Interest accounted for as operating cost		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 3,341,003

323,332
133,036

3,797,371
2,975,930

$ 821,441
 2019
$ 3,830,126
263,960

165,712
4,259,798

3,137,134
$ 1,122,664

d. Interest revenue

Interest revenue from acquired accounts receivable
Interest revenue from installment sales
Interest revenue from capital leases
Others
Less: Interest revenue accounted for as operating
revenue
Depreciation and amortization
An analysis of depreciation by function
Operating costs
Operating expenses		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
2019
$ 6,990,956 $ 5,974,987
2,438,933
2,022,352
3,010,148
3,666,443
3,483,607

3,169,815
15,923,644
14,833,597
15,625,557

14,234,694
$ 298,087
$ 598,903
For the Year Ended December 31
2020
$ 6,730,335

1,360,767

$ 8,091,102
 2019
$ 6,163,148

1,666,372
$ 7,829,520

e. Depreciation and amortization

(Continued)

Annual Report 2020 283

Financial Information

An analysis of amortization by function
Operating costs
Operating expenses
f. Employee benefit expense
Post-employment benefits
Defined contribution plans
Defined benefit plans
Other employee benefits
Equity-settled share-based payment transaction
An analysis of employee benefits expense by function
Operating costs
Operating expenses		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
2019
$ 172,840
$ 272,458
2,505,059

2,167,825
$ 2,677,899
$ 2,440,283
(Concluded)
For the Year Ended December 31
2020
$ 226,440
35,292

261,732
8,851,214

$ 9,112,946

$ 2,729,533
6,383,413

$ 9,112,946
 2019
$ 177,564

41,174

218,738

10,035,400
$ 10,254,138
$ 3,462,816

6,791,322
$ 10,254,138

g. Compensation of employees and remuneration of directors and supervisors

According to the Articles of Incorporation of the Company, the Company accrued compensation of employees and remuneration of directors and supervisors at the rates no less than 0.1% and no higher than 0.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. In 2020, the Company reserved net income to cover accumulated loss. In 2019, the Company proposed not to distribute dividends due to net loss before income tax. In 2020 and 2019, the compensation of employees and the remuneration of directors and supervisors were as follows:

Accrual rate

Compensation of employees
Remuneration of directors and supervisors		 For the Year Ended December 31
2020
2019
0.10%
0.10%
0.50%
0.50%

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Amount

Compensation of
employees
Remuneration of
directors and
supervisors		 For the Year Ended December 31
2020
2019
Cash
Share
Cash
Share
$ -
-
$ -
-
-
-
-
-

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

There was no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2018 and 2019.

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

h. Impairment losses on non-financial assets (reversal of impairment loss)

Property, plant and equipment (included in other
operating cost, Note 18)
Inventories (included in operating cost, Note 15)
Inventories for construction business (included in other
gains and losses, Note 15)
Investment properties (included in other gains and
losses,
Note 19)
Other current asset (included in other gains and losses,
Note)
Motor designs and research and development outputs
(included in other operating cost, Note 21)
Other asset (included in other operating cost)
Other intangible assets (included in other operating
cost,
Note 21)		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 1,306,212
235,411
-
-
-
1,224,632
-
24,414

$ 2,790,669
 2019
$ 6,267,470

(98,383)

779,745

533,488

964,901

6,246,802

1,207,878

4,507
$ 15,906,408

Note: As of the date December 31, 2019, the Group recognized impairment loss of $964,901 thousand from prepayment to Dongfeng Yulon.

Annual Report 2020 285

Financial Information

30. INCOME TAXES

  • a. Income tax recognized in profit or loss

Major components of tax expense (income) were as follows:

Current tax
In respect of the current year
Income tax on unappropriated earnings
Adjustments for prior years
Deferred tax
In respect of the current year
Effect of change in tax rate
Income tax expense recognized in profit or loss		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 1,679,531

26,721
(118,889)

1,587,363
(703,377)
-

$ 883,986
 2019
$ 1,252,180
70,030

(10,392)
1,311,818

(215,489)

-
$ 1,096,329

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

Profit before tax from continuing operations
Income tax expense calculated at the statutory rate
Nondeductible expenses in determining taxable income
Tax-exempt income
Income tax on unappropriated earnings
Unrecognized deductible temporary differences
Adjustments for prior years’ tax
Temporary difference - share of the profit of associates
and joint ventures operating in other jurisdictions
Income tax expense recognized in profit or loss		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 5,723,548

$ 1,337,494
8,106
(315,530)
26,721
(196,253)
23,448
-

$ 883,986
 2019
$ (23,437,148)
$ (723,609)

7,582

(221,976)

70,030

2,001,613

(10,392)

(26,919)
$ 1,096,329

In July 2019, the president of the ROC announced the amendments to the Statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings. When calculating the tax on unappropriated earnings, the Group only deducts the amount of the unappropriated earnings that has been reinvested in capital expenditure.

  • b. Deferred tax assets and liabilities

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

286 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

For the year ended December 31, 2020
Net Profit
(Loss) and
Balance at the Other
Beginning of Comprehensive Balance at the
the Year Income (Loss)
End		 of the Year
Deferred tax assets
Temporary differences
Share of loss of subsidiaries,
associates and joint ventures $ 172,639 $ 150,215 $ 322,854
Property, plant and equipment 227,498 (62,399) 165,099
Defined benefit obligation 282,388 (13,150) 269,238
Doubtful debts 797,363 469,710 1,267,073
Loss carryforward 125,901 (16,224) 109,677
Others 249,214 88,118
 337,332
$ 1,855,003 $ 616,270
 $ 2,471,273
Deferred tax liabilities
Temporary differences
Property, plant and equipment $ 1,033,522 $ 71,515
 $ 1,105,037
Land value increment tax 2,509,919 (112,101) 2,397,818
Share of profit of subsidiaries,
associates and joint ventures 489,300 (95,619) 393,681
Others 12,574 33,226
 45,800
$ 4,045,315 $ (102,979)
 $ 3,942,336
For the year ended December 31, 2019
Net Profit
(Loss) and
Balance at the Other
Beginning of Comprehensive Balance at the
the Year Income (Loss)
End		 of the Year
Deferred tax assets
Temporary differences
Share of loss of subsidiaries,
associates and joint ventures $ 198,393 $ (25,754) $ 172,639
Property, plant and equipment 184,633 42,865 227,498
Defined benefit obligation 322,694 (40,306) 282,388
Doubtful debts 490,113 307,250 797,363
Loss carryforward 143,335 (17,434) 125,901
Others 211,862 37,352
 249,214
$ 1,551,030 $ 303,973
 $ 1,855,003
(Continued)

Annual Report 2020 287

Financial Information

Net Profit Net Profit
(Loss) and
Balance at the Other
Beginning of Comprehensive Balance at the
the Year Income (Loss)
End of the Year
Deferred tax liabilities
Temporary differences
Property, plant and equipment $ 959,179 $ 74,343
 $ 1,033,522
Land value increment tax 2,509,919 - 2,509,919
Share of profit of subsidiaries,
associates and joint ventures 484,975 4,325 489,300
Others 47,814 (35,240)
12,574
$ 4,001,887 $ 43,428
 $ 4,045,315
(Concluded)
  • c. Items for which no deferred tax assets have been recognized

As of December 31, 2020 and 2019, deductible temporary differences with unrecognized deferred tax assets were $4,113,002 thousand and $3,253,359 thousand, respectively.

  • d. Income tax assessed

The tax returns through 2018 have been assessed by the tax authorities.

31. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings (loss) per share
Diluted earnings (loss) per share		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 2.80

$ 2.80
 2019
$ (26.13)
$ (26.13)

In the calculation of earnings (loss) per share, the number of outstanding shares has been adjusted retrospectively for the impact of the reduction of capital to offset deficit. The base date of the reduction of capital is August 11, 2020. As a result of retrospective adjustment, the loss per share for 2019 before and after adjustment was as follows:

Unit: NT$ Per Share

Basic earnings (loss) per share
Diluted earnings (loss) per share		 Before
Retrospective
Adjustment
2019
$ (16.61)
$ (16.61)		 After
Retrospective
Adjustment		 After
Retrospective
Adjustment
2019
$ (26.13)
$ (26.13)

288 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

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

Net Profit for the Year

Net profit attributable to owners of the Company
Net profit attributable to common control of predecessor
rights
Earnings used in the computation of basic earnings per
share
Earnings used in the computation of diluted earnings per
share		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 2,739,210
-

$ 2,739,210

$ 2,739,210
 2019
$ (24,465,408)

(564,712)
$ (25,030,120)
$ (25,030,120)

Shares

Net profit attributable to owners of the Company
Weighted average number of ordinary shares in
computation of basic earnings per share
Weighted average number of ordinary shares used in the
computation of diluted earnings per share		 For the Year Ended For the Year Ended December 31
2020
977,704

977,704
 2019

957,815

957,815

In calculating the weighted average number of shares outstanding for the consolidated EPS, the Company recognized the number of the shares held by associates as treasury shares and deducted the number of treasury shares from the weighted average number of outstanding shares in the current period.

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

32. DISPOSAL OF SUBSIDIARY

Dongfeng Yulon Motor Sales Co., Ltd. was ruled by the court as bankrupt in November 2020. The Group has lost control on Dongfeng Yulon Motor Sales Co., Ltd. since then. The Group derecognized related assets, liabilities, and non-controlling interests of Dongfeng Yulon Motor Sales Co., Ltd.

Annual Report 2020 289

Financial Information

a. Analysis of assets and liabilities over which the Group lost control

Current assets
Cash and cash equivalents

Accounts receivable
Other receivables
Inventories
Non-current assets
Property, plant and equipment
Intangible assets
Other non-current assets
Investments accounted for using the equity method
Current liabilities
Accounts payable
Other payable
Other current liabilities
Non-current liabilities
Guarantee deposits received

Net assets deconsolidated

Gain on deconsolidation of subsidiary
Net assets deconsolidated

Non-controlling interests


Gain on deconsolidation of subsidiary

Net cash outflow arising from deconsolidation of the subsidiary
The balance of cash and cash equivalents deconsolidated		 November 9,
2020
$ 4,146
93,487
54,935
48
-
374
278,033
10,525
7,464,444
1,021,035
31,897
32,758
$ (8,108,586)
November 9,
2020
$ 8,108,586
(4,054,293)
$ 4,054,293
November 9,
2020
$ 4,146

  • b. Gain on deconsolidation of subsidiary

  • c. Net cash outflow arising from deconsolidation of the subsidiary

  • d. The Group also disposed of some non-significant subsidiaries in 2020 and lost control over them. Net cash flow arising from deconsolidation of such subsidiaries was $25,983 thousand.

290 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

33. CAPITAL MANAGEMENT

The Group manages its capital to ensure the entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings, and other equity).

According to externally imposed capital requirement of banks, part of the subsidiaries should keep the agreed equity during the borrowing period. As of December 31, 2020, the Company has met the requirements of banks.

The Group’s management reviews the capital structure whenever necessary. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. Based on the management’s recommendations, the Group expects to balance its capital structure by paying dividends, borrowing new loans or repaying original loans.

34. FINANCIAL INSTRUMENTS

  • a. Fair value of financial instruments - fair value of financial instruments not measured at fair value

  • 1) Except as detailed in the following table, management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

Financial assets
Financial assets at
amortized cost

Financial liabilities
Corporate bonds		 December 31 December 31
2020
Carrying
Amount
Fair Value
$ 15,245
$ 15,722
29,421,823
29,486,557		 2019
Carrying
Amount
Fair Value
$ 15,708 $ 16,250
25,640,447
25,653,487
  • 2) Fair value hierarchy

The fair value of financial instruments that are not measured at fair value is belong to Level 1.

Annual Report 2020 291

Financial Information

b. Fair value financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2020
Financial assets at FVTPL
Domestic quoted shares

Domestic unlisted shares
Derivative financial
assets
Mutual funds
Others


Financial assets at FVTOCI
Domestic quoted shares

Domestic unlisted shares
Others


Financial liabilities at FVTPL
Derivative financial
liabilities

December 31, 2019
Financial assets at FVTPL
Domestic quoted shares

Domestic unlisted shares
Derivative financial
assets
Mutual funds
Others


Financial assets at FVTOCI
Domestic quoted shares

Domestic unlisted shares
Others


Financial liabilities at FVTPL
Derivative financial
liabilities
 Level 1
$ 9,619
-
-
4,003,706

-
$ 4,013,325
$ 144,380
-

-
$ 144,380
$ -
Level 1
$ 22,942
-
-
2,470,335

-
$ 2,493,277
$ 206,009
-

-
$ 206,009
$ -		 Level 2
$ -
-
1,594
-
-
$ 1,594
$ -
-
1,524
$ 1,524
$ 1,541
Level 2
$ -
-
232
-
-
$ 232
$ -
-
1,521
$ 1,521
$ 241		 Level 3
$ -
2,136
-
-
301,971

$ 304,107

$ -
406,095
-

$ 406,095

$ -

Level 3
$ -
2,901
-
628,620

$ 631,521

$ -
402,492
-

$ 402,492

$ -
 Total
$ 9,619

2,136

1,594

4,003,706

301,971
$ 4,319,026

$ 144,380

406,095

1,524
$ 551,999
$ 1,541
Total
$ 22,942

2,901
232

2,470,335

628,620
$ 3,125,030

$ 206,009

402,492

1,521
$ 610.022
$ 241

292 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

There were no transfers between Levels 1 and 2 in the current and prior periods.

  • 2) Reconciliation of Level 3 fair value measurements of financial assets

For the year ended December 31, 2020

Financial Assets
at Fair Value
Through Profit
or Loss
Balance at January 1, 2020
$ 631,521
Recognized in profit or loss
(included in other gains and
losses)
5,465
Recognized in other
comprehensive income
(included in unrealized
gain/(loss) on financial assets at
FVTOCI)
-
Reclassification
-
Purchases
1,464,800
Disposals/settlements
(1,797,566)
Effects of exchange rate changes
(113)
Balance at December 31, 2020
$ 304,107
For the year ended December 31, 2019
Financial Assets
at Fair Value
Through Profit
or Loss
Balance at January 1, 2019
$ 18,358
Recognized in profit or loss
(included in other gains and
losses)
6,308
Recognized in other
comprehensive income
(included in unrealized
gain/(loss) on financial assets at
FVTOCI)
-
Reclassification
-
Purchases
4,028,500
Disposals/settlements
(3,421,590)
Effects of exchange rate changes
(55)
Balance at December 31, 2019
$ 631,521		 Available-for-
sale Financial
Assets
Equity
Instruments
$ 402,492

-
2,446
-
1,642
(485)
-

$ 406,095

Available-for-
sale Financial
Assets
Equity
Instruments
$ 547,279

-
250,278
-
2,435
(397,500)
-

$ 402,492
 Total







$ 1,034,013
5,465
2,446
-
1,466,442
(1,798,051)

(113)
$ 710,202
Total
$ 565,637
6,308
250,278
-
4,030,935
(3,819,090)

(55)
$ 1,034,013

Annual Report 2020 293

Financial Information

  • 3) Valuation techniques and inputs to Level 2 fair value measurement
Financial Instruments
Derivatives - interest rate swap
contracts
Derivatives - cross currency
swap contracts		 Valuation Techniques and Inputs
Discounted cash flow.
Future cash flows were estimated based on observable
rates at the end of the reporting period, discounted at a
rate that reflects the credit risk of various
counterparties.
Discounted cash flow.
Future cash flows were estimated based on observable
exchange rates and interest rates at the end of the
reporting period, discounted at a rate that reflects the
credit risk of various counterparties.

The fair values of non-public stocks and funds are mainly determined by using the asset approach, and the market approach.

To determine the fair value for the funds, the Company utilizes the asset approach and takes into account the net asset value measured at the fair value by independent parties. On December 31, 2020, the Company uses unobservable inputs derived from discount for lack of marketability and lack of non-controlling interest.

For the remaining few investments, the market approach is used to arrive at their fair value, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.

  • c. Categories of financial instruments
Financial assets
Fair value through profit or loss (FVTPL)
Mandatorily at FVTPL
Derivative instruments in designated hedge
accounting relationships
Financial assets at amortized cost (Note 1)
Fair value through other comprehensive income
(FVTOCI)
Financial liabilities
Derivative instruments in designated hedge accounting
relationships
Amortized cost (Note 2)
Financial guaranteed contracts		 December 31
2020
2019
$ 4,317,432 $ 3,124,798
1,594
232
192,959,614 205,341,466
551,999
610,022
1,541
241
225,079,057 245,065,450
156,060
221,556

294 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, finance lease receivables, and other receivables.

  • Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term loans and bills payables, notes payable, trade and other payables, corporate bond payables, long-term loans and other payables, guarantee deposits received and current portion of long-term borrowings.

  • d. Financial risk management objectives and policies

In order to develop a clear direction and system for the Group to analyze, execute and respond to financial risk, it is of great importance to clarify the definition and the purpose of financial risk management prior to the establishment of related critical issues and policies. Through the process of financial risk management, the Group manages the financial risks relevant to the daily operation, including market risk (foreign exchange rate risk, interest rate risk, other price risk), credit risk, and liquidity risk. The Group strives to identify, evaluate and decrease market uncertainty to mitigate influence of the market fluctuation towards its financial performance.

  • 1) Financial risk management is defined by the Group as: To achieve various methods to control and handle risks by assessing direct and indirect potential risks affecting Group’s financial status. By minimizing “cost of risk”, the Group ensures operation security and continue as going concern.

  • 2) The critical issues of financial risk management: The Group emphasizes precautions in advance as well as controls during the ongoing process. In the event, with precautions and controls in place, of inevitable loss or discrepancies with Group’s operational goal, post-event measures are to be taken to deter or ease the unfavorable factors and retain the Group’s ongoing development. The source of financial risk includes external and internal factors. The key points of management, control mechanisms, and management tools of precautions, controls during the ongoing process and post-event measures are as follows:

a) Precautions

Key points of management

  • i. Business planning: The goal is for the Group to launch its business basing on key performance indicators that are clearly defined. The future operating guidelines and programs, from short term to long term, are also explicitly stated. In addition, goals and ways of achieving it for financial functions will also be specifically described within business planning.

  • ii. Identification of risk and establishment of indicator: This is based on the previous phase of key points of management, to identify potential risks and its monitoring indicators.

Control mechanisms

  • i. Business planning and adjustment: This is achieved by mid-term operating prospectus.

Annual Report 2020 295

Financial Information

  • ii. Macro-economic and study of laws and regulation: The Group invites external professional and scholars for workshops regarding current economic status and updates on laws and regulations nonscheduled.

Management tools

  • i. Research reports on micro and macro-economics: This includes reports on foreign exchange rates, interest rates and economic growths around the world.

  • ii. Operating prospectus: This is the Group’s mid-term operating prospectus.

  • iii. Articles of incorporation: Clearly states in the Group’s article of incorporation the management measures and the standard of risk indicator.

  • b) Controls during the ongoing process

Key points of management

  • i. Assessment and monitor of risk: Carry out instant or periodical monitoring towards defined critical risk indicator and related financial process.

  • ii. Risk feedbacks: The information system automatically sends reports regarding financial operation and indicator statistics simultaneously or periodically to the management of the Group. Internal audit teams are assigned, according to yearly or quarterly audit plans, to conduct audits relating to financial risk management of the Group and its subsidiaries. Internal audit teams are also assigned to conduct audits regarding financial risk management indicators and execution results.

Control mechanisms

  • i. Internal audit: Each financial sub-unit within the Group manages, controls and conducts independent internal audits after audit plans are proposed to the management.

  • ii. Financial management system and procedures: The Group establishes financial management system and monitors daily operations and specifically designated risks.

Management tools

  • i. BIS (Business Intelligent System) reports and alerts: The Group utilizes BIS to provide feedbacks for important operation related financial indicators monthly, at least.

  • ii. Monthly reports on profits of the Group and its subsidiaries: Operating profit and loss reports are summarized monthly, particularly including analytical summaries and reviews of items not meeting standards set by the management.

  • iii. Internal audit report: Internal audit reports are issued by the internal audit team including the execution and result of financial risk management.

296 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • iv. Reports on capital financing and balance of endorsement: The Group issues a summary report of capital financing and balance of endorsement monthly for the prior month.

  • v. ERP, DMS and SAP system verifications: Operating management systems from external parties assist in verification, and strengthens the Group’s financial risk management.

  • c) Post-event measures

Key points of management

  • i. Reasons and strategies for statistical deviations: Internal and external comprehension should be assembled, when abnormal outcomes arise for critical financial management indicators, to determine a corresponding strategy.

  • ii. Execution and follow-ups on strategy: The Group keeps track of the execution of the corresponding strategy mentioned in the previous phase, determined for the statistics to improve.

Control mechanisms

  • i. Analysis and feedbacks for unattainable indicators: The Group reviews the cause of unattainable financial management indicators in periodical reports and management meetings. In addition, improvement plans and schedules are also considered in management meetings.

  • ii. Board and financial meetings: The Group summons board meetings and review of financial management meetings on a timely basis, to ensure that the related financial risk management matters be resolved promptly, if not simultaneously.

Management tools

  • i. Reports on unfavorable factors and impacts: The Group lists the impacts of unattainable indicators and its actual status within its internal financial reports.

  • ii. Board meeting reports: The execution of financial risk management is summarized in the board meeting reports.

  • iii. Endorsement valuation report: Balance of endorsement is assessed and evaluated on a timely basis whether it conforms to local regulations and corporate rules.

  • iv. Periodic review meetings according to corporate classifications: The Group holds comprehensive review meetings periodically for different corporate classifications, which is in accordance to their different industry attributes.

  • 3) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

Annual Report 2020 297

Financial Information

a) Foreign currency risk

The Group had foreign currency sales and purchases, which exposed the Group to exchange rate risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposing to exchange rate risk at the end of the reporting period are set out in Note 38.

Sensitivity analysis

The Group was mainly exposed to Currency USD, Currency RMB and Currency JPY.

The following table details the Group’s sensitivity to a 1% increase and decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign currency forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates.

Profit or loss USD Impact
For the Year Ended
December 31
2020
2019
$ (1,065)
$ (8,261)		 RMB Impact
For the Year Ended
December 31
2020
2019
$ (262)
$ (82)		 JPY Impact
For the Year Ended
December 31
2020
2019
$ 744
$ 1,381

Hedge accounting

The Group entered into cross-currency swap contracts to mitigate the risk of changes in foreign currency exchange rates on cash flow exposure. Interest rate swaps are settled on a quarterly basis.

The following tables summarize the information relating to the hedges for foreign currency exchange rate risk.

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and forward interest rate contracts.

298 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

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

Fair value interest rate risk
Financial assets
Financial liabilities
Cash flow interest rate risk
Financial assets
Financial liabilities		 December 31
2020
2019
$ 158,881,172 $ 159,556,252
135,966,802 124,123,748
15,776,195
20,581,161
59,125,324
79,178,941

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period.

If interest rates had been 1% higher and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2020 and 2019 would decrease by $433,491 thousand and $585,978 thousand, respectively.

Hedge accounting

The Group entered into interest rate swap contracts and cross-currency swap contracts to mitigate the risk of changes in interest rates on cash flow exposure related to its outstanding variable rate debt. Interest rate swaps and cross-currency swaps are settled on a quarterly basis. The floating rate on interest rate swaps is the interbank rate.

The following tables summarize the information relating to the hedges for interest rate risk.

December 31, 2020

Hedging
Notion
Instruments
Amoun
Cash flow hedge
Commercial paper
payable-interest
$500 millio
rate swaps
$500 millio
Hedged Items
Cash flow hedge
Commercial paper payable		 al
Range of
Interest Rates
Range of
Interest Rates
Line Item in
Carrying Amount
Change in
Value Used for
Calculating
Hedge
t
Maturity
Paid
Received
Balance Sheet
Asset
Liability
Ineffectiveness
ns
2019.4.30-
2022.4.29
0.715%
TAIBOR 3M
Financial assets for
hedging
$ 1,594
$ - $ -
ns
2019.5.24-
2022.5.23
0.708%
TAIBOR 3M
Financial liabilities
for hedging
-
(1,541 )
-
Carrying Amount
Accumulated Amount of Fair
Value Hedge Adjustments
Change in
Value Used for
Calculating
Hedge
Accumulated
Amount of Fair
Value Hedge
Adjustments
for Hedged
Items That
Have Ceased to
Be Adjusted for
Hedging Gains
Asset
Liability
Asset
Liability
Ineffectiveness
and Losses
$ -
$ 1,000,000
$ -
$ -
$ -
$ -

Annual Report 2020 299

Financial Information

December 31, 2019

Hedging
Notiona
Instruments
Amoun
Cash flow hedge
Commercial paper
payable-interest
$500 millio
rate swaps
$500 millio
Hedged Items
Cash flow hedge
Commercial paper payable		 l
Range of
Interest Rates
Range of
Interest Rates
Line Item in
Carrying Amount
Change in
Value Used for
Calculating
Hedge
t
Maturity
Paid
Received
Balance Sheet
Asset
Liability
Ineffectiveness
ns
2019.4.30-
2022.4.29
0.715%
TAIBOR 3M
Financial assets for
hedging
$ 232
$ - $ -
ns
2019.5.24-
2022.5.23
0.708%
TAIBOR 3M
Financial liabilities
for hedging
-
(241 )
-
Carrying Amount
Accumulated Amount of Fair
Value Hedge Adjustments
Change in
Value Used for
Calculating
Hedge
Accumulated
Amount of Fair
Value Hedge
Adjustments
for Hedged
Items That
Have Ceased to
Be Adjusted for
Hedging Gains
Asset
Liability
Asset
Liability
Ineffectiveness
and Losses
$ -
$ 1,000,000
$ -
$ -
$ -
$ -

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities.

Sensitivity analysis

The Group assesses equity price risk using sensitivity analysis.

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 1% lower, as of December 31, 2020, financial assets at FVTPL and FVTOCI would have decreased by $43,190 thousand and $5,520 thousand, respectively.

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 1% lower, as of December 31, 2019, financial assets at FVTPL and FVTOCI would have decreased by $31,248 thousand and $6,100 thousand, respectively.

4) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantees provided by the Group could arise from:

  • a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

  • b) The amount of contingent liabilities in relation to financial guarantee issued by the Group.

300 YULON MOTOR

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It is the Group’s policy that transactions only be dealt with credit worthy counter parties. Credit information of transaction parties are gathered by independent rating agencies by conducting credit search and analysis. Credits are then given to parties, according to its nature of transaction, financial status and conditions of collateral, with terms be renewed after careful reexamination to ensure credit risk of counter parties are within scope of the Group.

The clients of the Group are widely spread and the Group analyzes its numerous trade receivable clients’ financial status continuously.

5) Liquidity risk

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

Liquidity and interest risk rate table

The following table shows the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed-upon repayment periods. The tables had been drawn up on the basis of undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables included both interest and principal cash flows.

December 31, 2020

Non-derivative financial
liabilities
Non-interest bearing
Variable interest rate liabilities
Fixed interest rate liabilities
Lease liabilities
Financial guarantee contracts		 Less than
1 Year
$ 18,800,676
31,766,593
97,960,935
670,395
4,166,684
$ 153,365,283		 1-5 Years
$ -
11,118,243
51,426,000
1,312,094
-

$ 63,856,337
 5+ Years
$ -

-

1,700,000

362,785

-
$ 2,062,785

Annual Report 2020 301

Financial Information

December 31, 2019

Non-derivative financial
liabilities
Non-interest bearing
Variable interest rate liabilities
Fixed interest rate liabilities
Lease liabilities
Financial guarantee contracts		 Less than
1 Year
$ 23,620,920
69,457,680
115,449,592
301,066
5,904,738
$ 214,733,996		 1-5 Years
$ -
650,000
21,734,199
2,086,556
-

$ 24,470,755
 5+ Years
$ -

-

1,700,000

512,124

-
$ 2,212,124

The amount of variable interest rate liabilities included above varies as to the different floating rates estimated at the balance sheet date.

As of Balance Sheets date, the amounts included above for financial guarantee contracts were the maximum amounts the Group could be required to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. The Group has estimated the probabilities of default and recognized related provisions (see Note 25).

35. TRANSACTIONS WITH RELATED PARTIES

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

a. Related parties

Related Party
Advance Power Machinery Co., Ltd.
Dongfeng Yulon Motor Co., Ltd.
Dong Yu Tech. Co., Ltd.
Cheng Long Co., Ltd.
Yuan Lon Co., Ltd.
Yu Tang Co., Ltd.
Yulon-Nissan Motor Co., Ltd.
Guangzhou He Xi Co., Ltd.
China Motor Co., Ltd.
Tokio Marine Newa Insurance Co., Ltd.
ROC-Spicer Co., Ltd.
Hong Kong Spicer Co., Ltd.
Fujian Spicer Co., Ltd.
Uni-calsonic Co., Ltd.		 Relationship with the Group
From associate’s subsidiary to a
subsidiary since the third quarter
of 2020
Joint ventures
Joint ventures
Associates
Associates
Associates
Associates
Associates
Associates
Associates
Associates
Associates
Associates
Associates

(Continued)

302 YULON MOTOR

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Annual Report 2020

Related Party

China Ogihara Co., Ltd. China Engine Co., Ltd. HuiZhou DongFeng Yi Jing Co., Ltd. Hui-Lian Motor Co., Ltd. Yulon Management Co., Ltd. Ding Long Co., Ltd. Tang Li Co., Ltd. Yuan Zhi Co., Ltd. Lian Cheng Co., Ltd. Yuen-Jin Co., Ltd. Kian Shen Co., Ltd. Hua Ling Co., Ltd. Dongguan HuaShun Co., Ltd. Tianjin HuaHong Co., Ltd. Guangzhou HuaYou Co., Ltd. Yizhan Overseas Investment Co., Ltd Tai-Yuen Textiles Co., Ltd. Wen Shen Co., Ltd. Lowin Industrial Co., Ltd. Lin Wei Co., Ltd. Yu Lai Co., Ltd. Xiang Wei Co., Ltd. Taiwin Company Hui-Fong Motor Co., Ltd. Snappy Machinery Co., Ltd. Nissan Motor Co., Ltd. Shug Ye Motor Co., Ltd. Southeast Motor Co., Ltd. Jin De Technology Co., Ltd. Gunze Co., Ltd. Taiway Co., Ltd. ROC-Keeper Co., Ltd. Carnival Industrial Co., Ltd. Hua-Qun Software Creative Technology Co., Ltd. Yuan Rui Auto Co., Ltd. Green Convenient E-Vehicle Co., Ltd. Chang Yue Plastics Industrial Co., Ltd. Dongguan HuaShun Co., Ltd. Shengzhen Henchi Co., Ltd Brilliant Insight International Consultancy Service Co., Ltd. Tai Yuan Vietnam Co., Ltd. Suzhou Huiting Co., Ltd. North Hebei Tangshan Co., Ltd. Dx Creative House Co., Ltd.

Relationship with the Group

Associates Associates Associates Associates Associates Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Associate’s subsidiary Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties

Other related parties Other related parties Other related parties Other related parties

(Concluded)

Annual Report 2020 303

Financial Information

b. Operating revenue

  • 1) Sales of goods
Related Party Categories
Associates
Yulon Nissan Motor Co., Ltd.
Others
Joint venture
Other related parties
Other operating revenue
Related Party Categories
Associates
Yulon Nissan
Others
Joint venture
Other related parties		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
2019
$ 11,719,035 $ 12,928,433
12,349,685

13,474,824
24,068,720
26,403,257
3,750
154,952
1,525,168

1,443,039
$ 25,597,638
$ 28,001,248
For the Year Ended December 31
2020
$ 632,385
257,835

890,220
7,295
57,997

$ 955,512
 2019
$ 603,023

242,042
845,065
31,109

78,500
$ 954,674

2) Other operating revenue

  • 3) Installment sales interest subsidies revenue
Related Party Categories
Associates
Yulon Nissan
Others
Other related parties		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 179,553

12,883

192,436
813

$ 193,249
 2019
$ 273,446

12,634

286,080

1,065
$ 287,145

304 YULON MOTOR

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Annual Report 2020

c. Purchase of goods

Related Party Categories
Associates
Yulon Nissan
Others
Joint venture
Dong Feng Yulon
Other related parties
Nissan Motor Co., Ltd.
Others		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 15,693,343
957,830

16,651,173
216,848

8,840,735
605,971

9,446,706

$ 26,314,727
 2019
$ 17,108,780

1,068,952

18,177,732

815,129

9,568,706

496,126

10,064,832
$ 29,057,693
  • d. Operating expenses
Related Party Categories
Associates
Other related parties		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 351,230
8,107

$ 359,337
 2019
$ 421,169

8,091
$ 429,260
  • e. Acquisition of assets for lease
Related Party Categories
Associates
Other related parties
Hui-Fong Motor
Shug Ye Motor
Others		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 178,287
368,456
147,243
7,564

523,263

$ 701,550
 2019
$ 218,811

480,714

241,396

3,289

725,399
$ 944,210
  • f. Acquisition of receivables
Related Party Categories
Associates
Yulon Nissan
Hui-Lian Motor		 For the Year Ended December 31
2020
2019
$ 2,039,906 $ 2,000,392
1,334,335
1,304,900
(Continued)

Annual Report 2020 305

Financial Information

Related Party Categories
Cheng Long Co., Ltd.
Others
Other related parties		 For the Year Ended December 31
2020
2019
729,781
731,550
1,118,850

1,319,833
5,222,872
5,356,675
399,452

409,430
$ 5,622,324
$ 5,766,105
(Concluded)		 For the Year Ended December 31
2020
2019
729,781
731,550
1,118,850

1,319,833
5,222,872
5,356,675
399,452

409,430
$ 5,622,324
$ 5,766,105
(Concluded)
2020
729,781
1,118,850

5,222,872
399,452

$ 5,622,324
  • g. Commissions paid (included in incremental costs of obtaining a contract and amortized over a period of time)
Related Party Categories
Associates
Yulon Nissan
Others
Other related parties
Receivable from related parties
1) Notes receivable and trade receivables
Related Party Categories
Associates
Joint venture (Note 1)
Dong Feng Yulon
Others
2) Other financial assets
Related Party Categories
Associates
Yulon Nissan
Others		 For the Year Ended December 31
2020
2019

$ 35,637 $ 103,599
14,194

25,882
49,831
129,481
2,730

3,106
$ 52,561
$ 132,587
December 31
2020
2019
$ 380,567 $ 633,204
75,726
1,867,000
725

124,265
$ 457,018
$ 2,624,469
December 31
2020
2019
$ 72,267 $ 70,277
17,460

33,697
89,727

103,974
(Continued)		 For the Year Ended December 31
2020
2019

$ 35,637 $ 103,599
14,194

25,882
49,831
129,481
2,730

3,106
$ 52,561
$ 132,587
December 31
2020
2019
$ 380,567 $ 633,204
75,726
1,867,000
725

124,265
$ 457,018
$ 2,624,469
December 31
2020
2019
$ 72,267 $ 70,277
17,460

33,697
89,727

103,974
(Continued)
2020
$ 72,267
17,460

89,727
  • h. Receivable from related parties

306 YULON MOTOR

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Annual Report 2020

Related Party Categories
Joint venture (Note 2)
Dong Feng Yulon
Others
Other related parties		 December 31 December 31
2020
$ 10,107
-

10,107

121,117

$ 220,951
 2019
$ 110,808

109,537

220,345

40,503
$ 364,822
(Concluded)

  • Note 1: As of December 31, 2020, the receivable from related parties of the Group - Dongfeng Yulon Motor Co., Ltd. was assessed according to the expected credit loss model. At the end of the period, the carrying amount of receivable which deducts allowance loss of 8,227,027 thousand is 75,726 thousand.

  • Note 2: As of December 31, 2020, the receivable from related parties of the Group - Dongfeng Yulon Motor Co., Ltd. was assessed according to the expected credit loss model. At the end of the period, the carrying amount of receivable which deducts allowance loss of 8,408,842 thousand is 10,107 thousand.

  • i. Prepayment (included in other current assets)

Related Party Categories
Joint venture
Dongfeng Yulon Motor Co., Ltd		 December 31 December 31
2020
$ 1,905
 2019
$ 67,735

Note: As of December 31, 2020, the accumulated impairment loss on the prepayment to Dongfeng Yulon was $964,901 thousand.

  • j. Payable to related parties

  • 1) Notes payable and trade payable

Related Party Categories
Associates
Joint venture
Dong Feng Yulon
Other related parties
Nissan Motor Co., Ltd.
Others		 December 31 December 31
2020
$ 690,497
18,813
971,470
136,684

1,108,154

$ 1,817,464
 2019
$ 687,989

6,764,620

1,048,104

148,689

1,196,793
$ 8,649,402

Annual Report 2020 307

Financial Information

  • 2) Other payables
Related Party Categories
Associates
Joint venture
Other related parties		 December 31 December 31
2020
$ 234,123
27,326
42,531

$ 303,980
 2019
$ 120,613

82,736

13,225
$ 216,574
  • k. Endorsement/guarantees provided

Information about endorsement/guarantee provided, see Table 2.

  • l. Compensation of key management personnel
Short-term employee benefits
Post-employment benefits		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
$ 62,266
1,565

$ 63,831
 2019
$ 58,802

1,620
$ 60,422

The compensation of the board members and the Group’s management is determined by the remuneration committee based on personal performances and market conditions.

36. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings or the tariff of imported raw materials guarantees:

Notes and trade receivables
Property, plant and equipment
Investment properties
Vehicle certificates (classified as inventories)
Reserve account and pledged time deposits
Prepayment of long-term investment
Others		 December 31 December 31
2020
$ 3,477,051
1,027,695
555,842
376,629
282,412
7,431,785
4,700

$ 13,156,114
 2019
$ 1,670,324

1,223,813

-

607,024

387,813

-

49,825
$ 3,938,799

308 YULON MOTOR

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Annual Report 2020

37. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other Notes, information on significant contingent liabilities and unrecognized commitments on the balance sheet date is as follows:

  • a. The Company has a manufacturing contract with Yulon Nissan Motor Co., Ltd. (“Yulon Nissan”) with a five-year validity from May 1, 2015 to April 30, 2020. (The contract is automatically renewed unless either party issues a notice of discontinuance within three months before contract expiry). The contract states that Yulon Nissan has authorized the Company to manufacture Nissan automobiles and parts, and Yulon Nissan is responsible for the subsequent development of new automobile parts. The volume of the Company’s manufacturing should be based on Yulon Nissan’s projection of car unit sales for the year. In addition, the Company manufactures other service parts for Yulon Nissan upon the latter’s request.

Yulon Nissan is responsible for developing new car models, refining designs, and providing the Company with sales projections. The Company is responsible for transforming the sales projections into manufacturing plans and making the related materials orders and purchases, providing product quality assurance, delivering cars, and providing warranty-related services.

  • b. Luxgen Motor Co., Ltd. (“Luxgen”) entrusted to the Company the assembly of cars, for which the obtaining of the manufacturing and selling license was assigned by Haitec Co., Ltd. (“Haitec”) to Luxgen. This car assembly is based on a five-year contract valid from May 1, 2015 to April 30, 2020. (The contract is automatically renewed unless either party issues a notice of discontinuance within three months before contract expiry.) The contract states that Luxgen authorizes the Company to manufacture Luxgen automobiles and parts. The volume of the Company’s manufacturing should be based on Luxgen’s projection of car unit sales for the year. In addition, the Company manufactures other service parts for Luxgen upon the latter’s request.

Luxgen is responsible for contracting out the manufacture of new-car model parts, refining designs, registering products, and providing the Company with sales projections. The Company is responsible for transforming the sales projections into manufacturing plans and making the related materials orders and purchases, providing product quality assurance, delivering cars, and providing warranty-related services.

Annual Report 2020 309

Financial Information

38. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group entities’ significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

December 31, 2020

Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 33,281
28.48 (USD:NTD)
USD
113
6.5249 (USD:RMB)
JPY
312,304
0.276 (JPY:NTD)
RMB
4,276
4.365 (RMB:NTD)
SGD
19
21.56 (SGD:NTD)
EUR
135
35.02 (EUR:NTD)

Non-monetary items
Associates and joint ventures
accounted for by the equity
method
USD
1,775
28.48 (USD:NTD)
RMB
349,670
4.365 (RMB:NTD)
RMB
240,575
0.153 (RMB:USD)

Financial liabilities
Monetary items
USD
29,747
28.48 (USD:NTD)
JPY
581,950
0.276 (JPY:NTD)
RMB
380
4.365 (RMB:NTD)
EUR
388
35.02 (EUR:NTD)
 Carrying
Amount
$ 947,851

3,218

86,196

18,664

408

4,720


$ 1,061,057

$ 50,557

1,526,239
1,050,062
$ 2,626,858

$ 847,207

160,618

1,660

13,604


$ 1,023,089

310 YULON MOTOR

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Annual Report 2020

December 31, 2019

Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 56,317
29.98 (USD:NTD)
USD
113
6.9762 (USD:RMB)
JPY
676,132
0.276 (JPY:NTD)
RMB
439,124
4.298 (RMB:NTD)
SGD
18
22.28 (SGD:NTD)
EUR
807
33.59 (EUR:NTD)

Non-monetary items
Associates and joint ventures
accounted for by the equity
method
USD
1,726
29.98 (USD:NTD)
RMB
346,433
4.298 (RMB:NTD)
RMB
256,292
0.143 (RMB:USD)

Financial liabilities
Monetary items
USD
27,673
29.98 (USD:NTD)
JPY
1,176,415
0.276 (JPY:NTD)
RMB
2,834
4.298 (RMB:NTD)
EUR
722
33.59 (EUR:NTD)
 Carrying
Amount
$ 1,688,378

3,388

186,613

1,887,354

391
27,097
$ 3,793,221

$ 51,743

1,488,798
1,101,413
$ 2,641,954

$ 829,637

324,691

12,179

24,252


$ 1,190,759

For the years ended December 31, 2020 and 2019, realized and unrealized foreign exchange gains (losses) were $60,679 thousand and $184,527 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) on each significant foreign currency there were many foreign currency transactions and the Group entities had different functional currencies.

39. SEPARATELY DISCLOSED ITEMS

  • a. Information about significant transactions and investees:

  • 1) Financing provided to others. (Table 1)

  • 2) Endorsements/guarantees provided. (Table 2)

  • 3) Marketable securities held (excluded investment in subsidiaries, associates and joint controlled entities). (Table 3)

Annual Report 2020 311

Financial Information

  • 4) Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital. (Table 4)

  • 5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (Table 5)

  • 6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital. (Table 6)

  • 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 7)

  • 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 8)

  • 9) Information on investees. (Table 9)

  • 10) Trading in derivative instruments. (Notes 7, 11 and 34)

11) Others: Intercompany relationships and significant intercompany transactions. (Table 11)

  • b. Information on investments in mainland China

There was no information on investments in mainland China should be disclosed excluding in Table 10.

40. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments were “brand segments”, “supporting segments”, “horizontal segments”, “Taiwan retail segments”, “China retail segments” and “others”.

  • a. Segment revenues and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segment.


For the year ended
December 31, 2020
Revenues from external
customers

Intersegment revenues

Segment revenues

Segment income
For the year ended
December 31, 2019
Revenues from external
customers

Intersegment revenues

Segment revenues

Segment income		 Brand Segments
$ 12,726,345


20,161,162

$ 32,887,507

$ 14,665,825


20,868,147

$ 35,533,972
 Supporting
Segments
$ 3,173,620


1,841,822

$ 5,015,442

$ 3,738,764


1,970,863

$ 5,709,627
 Horizontal
Segments
$ 29,474,412


1,202,718
$ 30,677,130
$ 28,421,384

1,017,614
$ 29,438,998		 Taiwan Retail
Segments
$ 21,389,060

1,116,221
$ 22,505,281
$ 21,551,169
2,266,749
$ 23,817,918		 China Retail
Segments
$ 15,135,062

313,728
$ 15,448,790
$ 16,895,275
2,813,324
$ 19,708,599		 Others

$ 699,015

1,883,368

$ 2,582,383

$ 306,493

2,285,373

$ 2,591,866
 Adjustment and
Eliminations
$ -

(26,519,019)
$ (26,519,019)
$ -
(31,222,070)
$ (31,222,070)		 Total
$ 82,597,514
-
$ 82,597,514
$ 5,723,548
$ 85,578,910
-
$ 85,578,910
$ (23,437,148)

312 YULON MOTOR

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Annual Report 2020

This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

  • b. Segment total assets and liabilities

The segment information on total assets and liabilities were not reported to the chief operating decision maker, therefore was not disclosed.

  • c. Geographical information

The Group operates in three principal geographical areas - Taiwan, China and Philippines.

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

Revenue from External

Revenue from External Revenue from External
Taiwan

China
Others

 Customers
For the Year Ended December 31
2020
2019
$ 58,596,754
$ 58,777,432
23,493,164
26,495,960

507,596
305,518
$ 82,597,514
$ 85,578,910		 Non-current Assets
December 31


2020
$ 58,596,754
23,493,164

507,596
$ 82,597,514		 2020
$ 47,578,054
6,792,783
325,495

$ 54,696,332
 2019
$ 51,142,791

7,598,030

255,865
$ 58,996,686
  • d. Information about major customers

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

Customer
Yulon Nissan Motor Co., Ltd.		 For the Year Ended December 31 For the Year Ended December 31 For the Year Ended December 31
2020
Amount
% on
Sales
$ 12,530,973
15		 2019
Amount
% on
Sales
$ 13,804,902
16

Annual Report 2020 313

TABLE 1

YULON MOTOR COMPANY LTD.

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending
Balance		 Actual
Borrowing
Amount		 Interest
Rate		 Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **		 Aggregate
Financing
Limits		 Note
Item Value
0 The Company Luxgen (hangzhou)
Motor Sales		 Accounts receivable -
related parties		 Y $ 4,317,000 $ - $ - - Repaying loan $ - Repaying loan $ - - $ - $ 4,873,847 $ 14,621,541 Note 1
1 Yulon China (HK) Holding Sheng Qing Other receivables Y 758,250 712,700 - - Operating capital
-		 Operating capital - - - 712,700 712,700 Note 1
2 Yulon China Sheng Qing Other receivables Y 2,123,100 1,995,560 - - Operating capital
-		 Operating capital - - - 3,420,960 3,420,960 Note 1
3 Singgual Ching-Tong
Singan		 Other receivables
Other receivables		 Y
Y		 10,000
50,000		 10,000
50,000		 10,000
20,000		 0.97%
0.97%		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 69,915
69,915		 69,915
69,915		 Note 1
Note 1
4 Hsiang Shuo Singan Other receivables Y 90,000 90,000 90,000 0.97% Operating capital
-		 Operating capital - - - 94,575 94,575 Note 1
5 Yulon Motor Investment Wuhan Yu Hsin
Zi Bo Yu An
Dong Tai
Shi Cheng
Yi Ding
Mei De
Tai Feng
Shenzhen Yu Zhi
Nan Jing Yu Hua
Chang Sha Yu Lu
Hang Zhou Hua You
Hang Zhou Haitec
Company
Dongfeng Yulon		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 65,682
6,111
12,796
17,061
25,592
38,388
51,184
58,929
59,714
4,379
81,008
240,834
459,774		 65,388
-
-
-
-
-
-
-
-
4,359
80,645
239,756
457,716		 -
-
-
-
-
-
-
-
-
-
80,645
180,907
305,144		 -
-
-
-
-
-
-
-
-
-
4.00%
-
6%-6.15%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
-
457,716		 -
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-		 5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
5,508,661
2,203,464
2,203,464
2,203,464		 16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
16,525,983
2,203,464
2,203,464
2,203,464		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
6 Sheng Qing Shanghai Yuming Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 75,652
8,758
17,460
87,302
8,758
23,571
30,556
48,016
52,381
113,492		 -
8,718
-
-
8,718
8,718
13,078
41,412
45,990
52,310		 -
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-		 979,665
979,665
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162
2,449,162		 979,665
979,665
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487
7,347,487		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
(Continued)
No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending Balance Actual
Borrowing
Amount		 Interest
Rate		 Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **		 Aggregate
Financing
Limits		 Note
Item Value
Tung Ling Kuo Tung
Shenzhen Yu Zhi
Fu Jian Yu Xin
Hang Zhou Hua You
Ka Shing Yu Da
Guang Zhou Yuan Du
Jiangmen Junxing
Hang Zhou Hua Zhi
Xiao Gan Yu Feng
Nan Jing Yu Hua
Zhu Hai Fu Te En
Wuhan Yu Hsin
Qingdao Yuanhuang
Hang Zhou Haitec
Company
Nanjing Hanhong
Dongfeng Yulon
Xiamen Young Chang
Yu-Jie
Yulon Motor Investment		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 $ 106,944
58,238
144,048
14,757
15,764
46,232
43,788
61,303
130,952
61,303
191,190
213,016
87,576
218,940
237,024
157,637
182,024
179,531
1,604,167		 $ 56,016
57,977
39,233
14,691
15,693
34,874
43,592
61,029
52,310
61,029
116,827
82,825
87,184
217,960
153,880
156,931
166,521
178,727
1,220,576		 $ -
-
7,847
7,969
15,693
26,155
43,592
47,760
52,079
53,503
69,747
73,235
85,004
100,255
142,250
156,931
166,521
174,368
888,810		 -
-
6.00%
5.75%
3.00%
6.00%
6.00%
5.75%
5.60%
0%-6%
0%-6%
0%-6%
6.00%
5.75%
0%-6%
6.15%
0.5%-3%
1.00%
0.5%-3%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
156,931
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 2,449,162

2,449,162

979,665

979,665

979,665

979,665

979,665

979,665

2,449,162

2,449,162

2,449,162

2,449,162

979,665

979,665

2,449,162

979,665

2,449,162

2,449,162

2,449,162		 $ 7,347,487
7,347,487
979,665
979,665
979,665
979,665
979,665
979,665
7,347,487
7,347,487
7,347,487
7,347,487
979,665
979,665
7,347,487
979,665
7,347,487
7,347,487
7,347,487		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
7 Zhu Hai Fu Te En Wuhan Yu Hsin
Nanjing Hanhong
Nan Jing Yu Hua
Zhuhai Yuhsin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y		 4,365
15,714
21,825
56,746		 -
6,975
17,437
45,772		 -
-
-
-		 -
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-		 -
-
-
-		 -
-
-
-
263,512

263,512

263,512

263,512		 527,023
527,023
527,023
527,023		 Note 1
Note 1
Note 1
Note 1
8 Nanjing Hanhong Nan Jing Yu Shang Accounts receivable -
related parties		 Y 48,167 47,951 47,951 6.00% Operating capital
-		 Operating capital - - -
286,437		 572,874 Note 1
9 Su Zhou Feng Shen Wu Jiang Lian Cheng
Su Zhou Chen Long
Su Zhou Cheng Hung
Su Zhou Cheng Guo
Su Chou Cheng Pin
Tai Chang Cheng Mau
Su Zhou Feng Shun		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y
Y
Y
Y
Y		 21,894
21,894
21,894
43,788
43,788
65,682
70,061		 21,796
21,796
21,796
43,592
43,592
65,388
69,747		 -
-
17,437
21,796
23,976
39,233
39,233		 -
-
4.10%
4.10%
4.10%
4.10%
4.10%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
-

-

-

-

-

-

-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-		 -
-
-
-
-
-
-		 -
-
-
-
-
-
-
309,432

309,432

309,432

309,432

309,432

309,432

309,432		 309,432
309,432
309,432
309,432
309,432
309,432
309,432		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
10 Wu Jiang Lian Cheng Tai Chang Cheng Mau Accounts receivable -
related parties		 Y 26,190 21,796 - - Operating capital
-		 Operating capital - - -
25,933		 25,933 Note 1

(Continued)

No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending
Balance		 Actual
Borrowing
Amount		 Interest Rate Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **		 Aggregate
Financing
Limits		 Note
Item Value
11 HangZhou Yu Zhong Dongfeng Yulon
Yulon Motor Investment
Hang Zhou hsiao Yu
Hang Zhou Hua You		 Other receivables
Other receivables
Other receivables
Other receivables		 Y
Y
Y
Y		 $ 7,444
15,103
17,515
17,953		 $ 7,411
11,770
17,437
17,873		 $ 7,411
11,770
17,437
17,873		 6.15%
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital		 $ -
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital		 $ 7,411
-
-
-		 -
-
-
-		 $ -
-
-
-		 $ 29,792
744,791
744,791
29,792		 $ 29,792
1,117,186
1,117,186
29,792		 Note 1
Note 1
Note 1
Note 1
12 Shinshin A13
A2
A23
A16
A27
A8
A24
A17
A11
A9
A12
A1
A28
S1
A5
A6
A21
A20
A19
A22
A7
A14
A26
A10
A18
A4
A15
A25
K1		 Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables
Other receivables		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 15,000
45,000
10,000
20,000
25,000
30,000
40,000
10,000
10,000
25,000
20,000
51,287
10,000
17,606
6,000
30,000
7,000
25,000
20,000
12,000
15,000
15,000
18,000
40,000
45,000
69,632
60,000
70,000
113,050		 15,000
-
10,000
20,000
25,000
30,000
40,000
10,000
10,000
25,000
20,000
-
10,000
3,380
4,655
4,900
7,000
23,330
18,333
10,482
10,965
11,580
17,032
33,344
37,765
67,773
56,394
69,001
109,911		 -
-
-
-
-
-
-
-
-
-
-
-
-
3,380
4,655
4,900
7,000
8,330
8,333
10,482
10,965
11,580
17,032
33,344
37,765
47,773
56,394
69,001
109,911		 1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%
1.5%-19.99%		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
66,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital
Operating capital		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
68
93
98
140
167
167
210
219
232
341
667
755
955
1,128
1,380		 Inventory
-
-
-
-
-
-
Property
Land
Property
Land
Property
-
Performance bond
Property
Inventory
Property
Inventory
-
-
-
-
-
Stock
-
Inventory/
performance
bond
-
-
Property		 -
-
-
-
-
-
-
2,000
8,600
25,000
27,540
66,000
-
9,000
2,300
-
9,788
-
-
-
-
-
-
57,200
-
1,500
-
-
35,000		 1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
945,460
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736		 1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
3,781,840
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736
1,512,736		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
13 Guang Zhou Yuan Du Qingdao Yuanhuang Accounts receivable -
related parties		 Y 87,576 87,184 59,721 6.40% Operating capital - Operating capital 1,843 - - 143,450 143,450 Note 1
14 Su Zhou Feng Shun Tai Chang Cheng Mau
Su Zhou Cheng Hung
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y
Y		 21,894
21,894
30,556		 21,796
21,796
21,796		 -
-
-		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 -
-
-		 -
-
-		 65,596
65,596
65,596		 65,596
65,596
65,596		 Note 1
Note 1
Note 1
15 Suzhou Yueshun Tai Chang Cheng Mau
Su Zhou Feng Shun		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 6,568
6,568		 6,539
6,539		 -
-		 -
-		 Operating capital
Operating capital		 -
-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 17,499
17,499		 17,499
17,499		 Note 1
Note 1
16 Nan Jing Yu Hua Nanjing Hanhong Accounts receivable -
related parties		 Y 118,762 118,230 118,230 - Operating capital - Operating capital - - - 144,490 288,980 Note 1
17 Xiao Gan Yu Feng Wuhan Yu Hsin
Chang Sha Yu Lu		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 21,825
19,643		 -
10,898		 -
-		 -
-		 Operating capital
Operating capital		 -
-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 258,170
258,170		 516,339
516,339		 Note 1
Note 1
18 Yu-Jie Dongfeng Yulon Other receivables Y 218,940 217,960 217,960 6.15% Operating capital - Operating capital 217,960 - - 891,149 891,149 Note 1
19 Yu-Hsin Intl Yu-Hsin Intl HK Other receivables Y 151,650 142,540 114,032 2.90% Operating capital - Operating capital - - - 285,005 427,507 Note 1
20 Su Zhou Chen Long Su Zhou Feng Shun
Su Zhou Cheng Pang
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties
Accounts receivable -
relatedparties		 Y
Y
Y		 21,894
21,894
21,894		 21,796
21,796
21,796		 -
-
-		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 Operating capital
Operating capital
Operating capital		 -
-
-		 -
-
-		 -
-
-		 147,215
147,215
147,215		 147,215
147,215
147,215		 Note 1
Note 1
Note 1
(Continued)
No. Lender Borrower Financial Statement
Account		 Related
Parties		 Highest Balance
for the Period		 Ending Balance Actual
Borrowing
Amount		 Interest
Rate		 Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Impairment
Loss		 Col lateral Financing Limit
for Each
Borrower		 Aggregate
Financing
Limits		 Note
Item Value
Tai Chang Cheng Mau
Su Zhou Cheng Guo		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 $ 21,894
52,546		 $ 21,796
52,310		 $ 21,796
23,976		 5.00%
4.35%		 Operating capital
Operating capital		 $ -

-		 Operating capital
Operating capital		 $ -
-		 -
-		 $ -
-		 $ 147,215
147,215		 $ 147,215
147,215		 Note 1
Note 1
21 Su Zhou Cheng Pang Su Zhou Cheng Hung Accounts receivable -
related parties		 Y 13,136 13,078 - - Operating capital
-		 Operating capital - - - 19,727 19,727 Note 1
22 Hang Zhou Tang Yu Dongfeng Yulon
Yulon Motor Investment		 Other receivables
Other receivables		 Y
Y		 4,817
38,937		 4,795
38,361		 4,795
38,361		 6.15%
-		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 19,055
476,385		 19,055
714,578		 Note 1
Note 1
23 Hang Zhou hsiao Yu Yulon Motor Investment Other receivables Y 873 392 - - Operating capital
-		 Operating capital - - - 435,920 653,880 Note 1
24 Hang Zhou Chien Yu Yulon Motor Investment Other receivables Y 3,929 3,487 3,487 - Operating capital
-		 Operating capital - - - 435,920 653,880 Note 1
25 Ke Yu Yi Ding
Dongfeng Yulon
Sheng Qing		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 21,894
74,440
436,508		 21,796
74,106
405,406		 21,796
74,106
212,729		 0.50%
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
74,106
-		 -
-
-		 -
-
-		 726,153
290,461
726,153		 1,452,307
290,461
1,452,307		 Note 1
Note 1
Note 1
26 Gao Te Dongfeng Yulon Other receivables Y 23,646 23,540 23,540 6.15% Operating capital
-		 Operating capital 23,540 - - 93,564 93,564 Note 1
27 Mei De Sheng Qing
Dongfeng Yulon
Shi Cheng		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 135,317
35,381
209,524		 130,776
35,222
130,776		 -
35,222
130,776		 -
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
35,222
-		 -
-
-		 -
-
-		 531,020
141,605
531,020		 1,062,040
141,605
1,062,040		 Note 1
Note 1
Note 1
28 Xiamen Young Chang Dongfeng Yulon Other receivables Y 65,682 65,388 65,388 6.15% Operating capital
-		 Operating capital 65,388 - - 323,660 323,660 Note 1
29 Qing Tai Shi Cheng
Dongfeng Yulon
Dong Tai		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 17,515
30,652
109,470		 17,437
30,514
108,980		 17,437
30,514
108,980		 0.50%
6.15%
0.50%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
30,514
-		 -
-
-		 -
-
-		 465,461
124,123
465,461		 930,922
124,123
930,922		 Note 1
Note 1
Note 1
30 Jin Ce Dongfeng Yulon
Yi Ding		 Other receivables
Other receivables		 Y
Y		 7,006
39,286		 6,975
30,514		 6,975
30,514		 6.15%
0.50%		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 6,975
-		 -
-		 -
-		 28,066
701,655		 28,066
1,052,482		 Note 1
Note 1
31 Tai Feng Yi Ding
Dong Tai
Dongfeng Yulon		 Other receivables
Other receivables
Other receivables		 Y
Y
Y		 13,136
21,894
48,167		 13,078
21,796
47,951		 13,078
21,796
47,951		 0.50%
0.50%
6.15%		 Operating capital
Operating capital
Operating capital
-

-

-		 Operating capital
Operating capital
Operating capital		 -
-
47,951		 -
-
-		 -
-
-		 1,106,131
1,106,131
294,968		 2,212,261
2,212,261
294,968		 Note 1
Note 1
Note 1
32 Dong Tai Dongfeng Yulon Other receivables Y 11,823 11,770 11,770 6.15% Operating capital
-		 Operating capital 11,770 - - 28,688 28,688 Note 1
33 Shi Cheng Dongfeng Yulon Other receivables Y 13,968 13,731 13,731 6.15% Operating capital
-		 Operating capital 13,731 - - 36,453 36,453 Note 1
34 Yi Ding Dongfeng Yulon Other receivables Y 23,135 22,973 22,973 6.15% Operating capital
-		 Operating capital 22,973 - - 91,678 91,678 Note 1
35 Sin Jang Singan Other receivables Y 210,000 210,000 210,000 0.97% Operating capital
-		 Operating capital - - - 210,828 210,828 Note 1
36 Su Zhou Cheng Li Su Zhou Feng Shun
Su Chou Cheng Pin		 Accounts receivable -
related parties
Accounts receivable -
related parties		 Y
Y		 8,758
8,758		 8,718
8,718		 -
-		 -
-		 Operating capital
Operating capital
-

-		 Operating capital
Operating capital		 -
-		 -
-		 -
-		 20,151
20,151		 20,151
20,151		 Note 1
Note 1
37 Yu Ching Haitec Other receivables Y 339,000 - - - Operating capital
-		 Operating capital - - - 539,244 539,244 Note 1
38 Chuang Jie New
Energy Vehicle		 LUXGEN(hangzhou)
Motor Sales		 Other receivables Y 120,876 - - - Operating capital
-		 Operating capital - - - 336,274 1,008,822 Note 1
39 Sin Chi Haitec Other receivables Y 269,000 - - - Operating capital
-		 Operating capital - - - 501,555 501,555 Note 1
40 Genwise Zhe Jiang Cheng Yi
Company		 Other receivables Y 9,635 9,603 9,603 4.00% Operating capital
-		 Operating capital - - - 10,330 10,330 Note 1
41 Shanghai Yuming Ka Shing Yu Da Other receivables Y 26,273 26,155 8,718 5.00% Operating capital
-		 Operating capital - - - 37,922 37,922 Note 1
42 Tai Chang Cheng
Mau		 Su Zhou Cheng Guo Accounts receivable -
related parties		 Y 8,758 8,718 - - Operating capital
-		 Operating capital - - - 24,310 24,310 Note 1

(Continued)

  • Note: 0. The Company: While credit financing limit for each borrower was 10% of the lender’s net equity and aggregate financing limits was 30% of the lender’s net equity.

  • Yulon China (HK) Holding: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was $25 million and aggregate financing limits was $25 million.

  • Yulon China: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was $120 million and aggregate financing limits was $120 million.

  • Singgual Travel: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Hsiang Shou: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Yulon Motor Investment: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Sheng Qing: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Zhu Hai Fu Te En: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Nanjing Hanhong: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Su Zhou Feng Shen: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Wu Jiang Lian Cheng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • HangZhou Yu Zhong: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  • Shinshin: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. Business transactions financing limit for each borrower were not exceeding 100% of the lender’s net equity and aggregate financing limits were not exceeding 25% of the lender’s net equity.

  • Guang Zhou Yuan Du: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Su Zhou Feng Shun: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Suzhou Yueshun: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Nan Jing Yu Hua: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Xiao Gan Yu Feng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  • Yu-Jie: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 60% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Yu-Hsin Intl: Credit financing limit for each borrower were not exceeding 20% of the lender’s net equity and aggregate financing limits were not exceeding 30% of the lender’s net equity.

  • Su Zhou Chen Long: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Su Zhou Cheng Pang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  • Hang Zhou Tang Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  • Hang Zhou hsiao Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was RMB100 million and aggregate financing limits was RMB150 million.

  • Hang Zhou Chien Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was RMB100 million and aggregate financing limits was RMB150 million.

  • Ke Yu: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 100% of the lender’s net equity and aggregate financing limits was 200% of the lender’s net equity.

  • Gao Te: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 200% of the lender’s net equity and aggregate financing limits was 400% of the lender’s net equity.

  • Mei De: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

(Continued)

  1. Xiamen Young Chang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  2. Qing Tai: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  3. Jin Ce: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 1,000% of the lender’s net equity and aggregate financing limits was 1,500% of the lender’s net equity.

  4. Tai Feng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity. While the financing was provided to a foreign subsidiary which was directly or indirectly held by the Company, credit financing limit for each borrower was 150% of the lender’s net equity and aggregate financing limits was 300% of the lender’s net equity.

  5. Dong Tai: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  6. Shi Cheng: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  7. Yi Ding: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  8. Sin Jiang: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  9. Su Zhou Cheng Li: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  10. Yu Ching: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  11. Chuang Jie: Credit financing limit for each borrower were not exceeding 10% of the lender’s net equity and aggregate financing limits were not exceeding 30% of the lender’s net equity.

  12. Sin Chi: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  13. Genwise: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  14. Shanghai Yuming: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

  15. Tai Chang Cheng Mau: Credit financing limit for each borrower and aggregate financing limits were not exceeding 40% of the lender’s net equity.

(Concluded)

TABLE 2

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. Endorser/Guarantor Endorsee/Guarantee Endorsee/Guarantee Limits on Each
Endorsement/
Guarantee
Given on Behalf
of Each Party
Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at the
End of the Period		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed
by Collaterals		 Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Latest
Financial
Statements (%)
Aggregate
Endorsement/
Guarantee Limit		 Endorsement/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries		 Endorsement/
Guarantee
Given by
Subsidiaries
on Behalf of
Parent		 Endorsement/
Guarantee
Given on
Behalf of
Companies in
Mainland
China		 Note
Name Relationship
(Note 2)
0 The Company Luxgen Kaohsiung
Luxgen Taichung
Luxgen Tainan
Luxgen Taoyuan
Luxgen Taipei
Sin Chi
Yu Sing
UMPI
Yu Ching
Luxgen
LUXGEN(hangzhou) Motor Sales		 b
b
b
b
b
b
b
b
b
b
b		 $ 13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922
13,750,922		 $ 164,250
165,000
200,000
208,000
600,000
500,000
1,440,000
758,250
1,000,000
11,350,000
9,099,000		 $ 50,000
50,000
50,000
50,000
50,000
500,000
510,000
570,160
1,000,000
8,100,000
-		 $ -
-
-
-
50,000
-
280,000
93,760
-
100,000
-		 $ -
-
-
-
-
-
-
-
-
-
-		 0.10
0.10
0.10
0.10
0.10
1.03
1.05
1.17
2.05
16.62
-		 $ 36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851
36,553,851		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 N
N
N
N
N
N
N
N
N
N
N		 N
N
N
N
N
N
N
N
N
N
Y		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
1 Union & NKH Auto Parts Hangchow Liangrun b 327,770 312,000 312,000 - - 13.33 936,484 N N Y Note 1
2 YFC Yulon Finance Philippines
Corporation
TAC Leasing (Suzhou)
Car-Plus Go Co., Ltd.
TAC Finance Company		 b
b
b
b		 48,158,883
48,158,883
48,158,883
48,158,883		 2,408,000
5,961,152
320,000
10,000,000
2,344,000
5,936,128
-
3,800,000		 1,029,680
3,317,248
-
1,747,325		 -
-
-
-		 12.17
30.82
-
19.73		 96,317,765
96,317,765
96,317,765
96,317,765		 N
N
N
N		 N
N
N
N		 N
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
3 Car-plus Corporation Car-Plus Go Co., Ltd. b 5,145,628 480,000 - - - - 10,291,255 N N Y Note 1
4 Sheng Qing Tung Ling Kuo Tung
Shanghai Yuming
Xiao Gan Yu Feng
Chang Sha Yu Lu
Jiangmen Junxing
Nan Jing Yu Hua
Nanjing Hanhong
Qingdao Yuanhuang
Wuhan Yu Hsin
Guang Zhou Yuan Du
Yu-Jie		 b
b
b
b
b
b
b
b
b
b
b		 12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811
12,245,811		 17,460
21,825
21,825
30,556
43,651
65,476
211,305
218,940
262,728
350,304
875,760		 -
-
-
-
-
-
108,980
217,960
261,552
348,736
871,840		 -
-
-
-
-
-
60,157
78,577
254,621
83,374
-		 -
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
4.45
8.90
10.68
14.24
35.60		 61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055
61,229,055		 N
N
N
N
N
N
N
N
N
N
N		 N
N
N
N
N
N
N
N
N
N
N		 Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
5 Nanjing Hanhong Nan Jing Yu Hua
Zhu Hai Fu Te En		 b
d		 435,920
435,920		 109,470
218,940		 108,980
217,960		 -
31,168		 -
-		 57.07
114.14		 588,492
588,492		 N
N		 N
N		 Y
Y		 Note 1
Note 1
6 Zhu Hai Fu Te En Nan Jing Yu Hua
Nanjing Hanhong		 d
d		 527,023
527,023		 109,470
175,152		 108,980
174,368		 -
-		 -
-		 41.36
66.17		 790,535
790,535		 N
N		 N
N		 Y
Y		 Note 1
Note 1
7 Su Zhou Feng Shen Wu Jiang Lian Cheng
Su Zhou Feng Shun
Su Zhou Cheng Pang
Tai Chang Cheng Mau		 b
b
b
b		 773,581
773,581
773,581
773,581		 43,788
76,366
131,364
148,879		 43,592
76,024
130,776
148,213		 -
-
37,560
43,674		 -
-
-
-		 5.64
9.83
16.91
19.16		 2,320,742
2,320,742
2,320,742
2,320,742		 N
N
N
N		 N
N
N
N		 Y
Y
Y
Y		 Note 1
Note 1
Note 1
Note 1
(Continued)
No. Endorser/Guarantor Endorsee/Guar antee Limits on Each
Endorsement/
Guarantee Given
on Behalf of
Each Party		 Maximum
Amount
Endorsed/
Guaranteed
During the
Period		 Outstanding
Endorsement/
Guarantee at the
End of the Period		 Actual
Borrowing
Amount		 Amount
Endorsed/
Guaranteed by
Collaterals		 Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Latest
Financial
Statements (%)
Aggregate
Endorsement/
Guarantee Limit		 Endorsement/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries		 Endorsement/
Guarantee
Given by
Subsidiaries on
Behalf of
Parent
Endorsement/
Guarantee
Given on
Behalf of
Companies in
Mainland
China		 Note
Name Relationship
(Note 2)
8 Wu Jiang Lian Cheng Su Zhou Feng Shen
Su Zhou Feng Shun		 c
c		 $ 392,328
392,328		 $ 43,788
229,624		 $ 43,592
228,596		 $ -
75,937		 $ -
-		 67.24
352.59		 $ 871,840
871,840		 N
N		 N
N		 Y
Y		 Note 1
Note 1
9 Su Zhou Feng Shun Su Zhou Cheng Li
Su Zhou Feng Shen
Wu Jiang Lian Cheng		 b
c
b		 819,944
819,944
819,944		 26,273
43,788
153,258		 26,155
43,592
152,572		 -
-
49,856		 -
-
-		 15.95
26.58
93.04		 1,639,888
1,639,888
1,639,888		 N
N
N		 N
N
N		 Y
Y
Y		 Note 1
Note 1
Note 1
10 Su Zhou Cheng Pang Su Zhou Feng Shen c 392,328 153,258 152,572 20,996 - 309.36 784,656 N N Y Note 1
11 Tai Chang Cheng Mau Su Zhou Feng Shen c 392,328 153,258 152,572 20,996 - 251.05 871,840 N N Y Note 1
12 Su Zhou Cheng Guo Su Zhou Chen Long c 392,328 109,470 108,980 48,934 - 999.99 871,840 N N Y Note 1
13 Su Zhou Chen Long Su Zhou Cheng Hung b 1,840,191 78,818 78,466 6,362 - 21.32 3,680,382 N N Y Note 1
14 Nan Jing Yu Hua Nanjing Hanhong
Zhu Hai Fu Te En		 c
d		 481,633
481,633		 175,152
218,940		 174,368
217,960		 -
-		 -
-		 -
-		 963,265
963,265		 N
N		 N
N		 Y
Y		 Note 1
Note 1

Note 1: The Company: The aggregate endorsement/guarantee limit was calculated for 75% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 40% of the aggregate endorsement/guarantee amounts.

Union & NKH Auto Parts: The aggregate endorsement/guarantee limit was calculated for 40% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 35% of the aggregate endorsement/guarantee amounts.

YFC: The aggregate endorsement/guarantee limit was calculated for 500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 50% of the aggregate endorsement/guarantee amounts.

Car-plus Corporation: The aggregate endorsement/guarantee limit was calculated for 500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 250% of the endorser’s/guarantor’s net equity.

Sheng Qing: The aggregate endorsement/guarantee limit was calculated for 2,500% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 500% of the endorser’s/guarantor’s net equity.

Nanjing Hanhong: The aggregate endorsement/guarantee limit was RMB135 million. The limits on each endorsement/guarantee given on behalf of each party was RMB100 million.

Zhu Hai Fu Te En: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 200% of the endorser’s/guarantor’s net equity.

Su Zhou Feng Shen: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party was calculated for 100% of the endorser’s/guarantor’s net equity.

Wu Jiang Lian Cheng: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Su Zhou Feng Shun: The aggregate endorsement/guarantee limit was calculated for 300% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 100% of the aggregate endorsement/guarantee amounts.

Su Zhou Cheng Pang: The aggregate endorsement/guarantee limit was RMB180 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Tai Chang Cheng Mau: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

Su Zhou Cheng Guo: The aggregate endorsement/guarantee limit was RMB200 million. The limits on each endorsement/guarantee given on behalf of each party was RMB90 million.

(Continued)

Su Zhou Chen Long: The aggregate endorsement/guarantee limit was calculated for 1,000% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 500% of the aggregate endorsement/guarantee amounts.

Nanjing YuHua: The aggregate endorsement/guarantee limit was calculated for 1,000% of the endorser’s/guarantor’s net equity. The limits on each endorsement/guarantee given on behalf of each party were not exceeding 500% of the aggregate endorsement/guarantee amounts. Note 2: The relationship between guarantor and guarantee are as follows: a. The Company in relation to business. b. Subsidiaries’ common stocks which were directly owned by parent company over 50%. c. Investees’ common stocks which were both owned by parent company and subsidiary over 50%. d. Investees’ common stocks which were was directly or indirectly held by the Company over 90%.

  • e. Based on contract projects among their peers in accordance with contract provisions which need mutual insurance company.

  • f. Owing to the joint venture funded by the shareholders on its endorsement of its holding company.

g. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

(Concluded)

TABLE 3

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding
Company
Name		 Type and Name of Marketable Securities Relationship
with the
Holding
Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
The Company Structured finance products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
KGI Securities CLN-structured products
Yuanta Securities CLN - M.J. 1st
Yuanta Securities CLN - Yeong Guan 3
KGI Securities CLN-structured products
Yuanta Securities CLN -Singtex 2nd
Yuanta Securities CLN -Center 5
KGI Securities CLN-structured products
KGI Securities CLN-structured products
Beneficiary certificates
Fuh Hwa Intelligence Fund
Taishin Dragon Fund
KGI Feng-Li Fund
KGI Kifly Strategic Fund
The RSIT Enhanced Money Market
Jih Sun Money Market Fund
Capital Money Market Fund
FSITC Taiwan Money Market
Hua Nan Phoenix Money Market
Union Money Market Fund
Taishin 1699 Money Market
Taishin Ta-Chong Money Market
Allianz Glbl Investors Taiwan Money Mkt
Nomura Taiwan Money Market
Fuh Hwa Global Balanced
Shin Kong Global Bond Fund
Yuanta Global ETFs Stable Fund of Funds
PGIM US Corporate Bond Fund USD T
Distribution		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current		 125
500
290
250
300
300
17
200
100
181
100
200
150
3,000
1,819
739
2,349
830
1,372
1,702
13,932
18,309
30,786
4,409
17,458
2,501
608
1,180
910
1,721

7		 $ 12,515
50,037
29,076
25,073
30,072
30,027
1,708
20,052
10,003
18,162
10,026
20,009
15,060
30,213
21,160
10,890
32,584
10,005
20,518
27,689
215,015
300,007
409,748
60,168
250,005
31,592
10,005
30,840
9,938
26,514
25,431		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 12,515
50,037
29,076
25,073
30,072
30,027
1,708
20,052
10,003
18,162
10,026
20,009
15,060
30,213
21,160
10,890
32,584
10,005
20,518
27,689
215,015
300,007
409,748
60,168
250,005
31,592
10,005
30,840
9,938
26,514
25,431		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Holding Company
Name
Type and Name of Marketable Securities		 Relationship
with the Holding
Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
YFC
Shinshin
Diamond Leasing		 FSITC 4-Year Maturity Emerging Market
Investment Grade Bond Fund Inc USD
Cathay Smart ETF Conservative Fund of ETFs
Taishin North American Income Trust
Taishin Strategy Senior Total Return High Yield
Bond Fund
PineBridge Emerg Mkt AsiaPac Strat Bd
Allianz Global Investors All Seasons Harvest
Fund of Bond Funds
NN (L) US Credit - X Dis(M) USD
Union Advantage Global Fixed Income Portfolio
Fund
KGI Taiwan Multi-Asset Income Fund
THE RSIT Digital Fund
Capital Conservative Allocation Fund of Funds
Capital Global Abundant Income Fund Of Fund
TWD Inc
Capital Global Biotech Fund
FSITC AI Global Precision Medicine Fund
Preferred Securities Income Fund
UPAMC GREAT CHINA Fund
Nomura Global Equity Fund
Nomura Taiwan Equity Fund
Franklin Templeton SinoAm AI Hi-Tech Fund
Common stocks
Taiwan Stock Exchange
Taiwan Aerospace Company
Yulon Finance Corporation, Preferred Shares A
Mison - Century Technology, Ltd
Bonds
Government bonds
Bonds
Government bonds
Beneficiary certificates
Union Money Market Fund
Cathay Taiwan Money Market Fund
Subsidiary
Related party in
substance		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
1,300
1,929
208

1,860
1,585

1,974
1

1,180
994
221
500

2,193
822
335
510
119
233
77
1,500
7,503
811
36,604
5,025
-
-
2,256
798		 $ 13,007
21,716
4,808
18,941
20,194
26,687
25,228
19,527
10,338
10,120
4,987
29,035
15,271
5,278
5,403
5,816
5,426
5,449
15,525
366,234
-
1,874,124
31,303
5,203
10,042
30,024
10,003		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.00
0.60
36.60
8.37
-
-
-
-		 $ 13,007
21,716
4,808
18,941
20,194
26,687
25,228
19,527
10,338
10,120
4,987
29,035
15,271
5,278
5,403
5,816
5,426
5,449
15,525
366,234
-
1,874,124
31,303
5,671
10,051
30,024
10,003		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or
Units		 Carrying
Amount		 Percentage of
Ownership
(%)
Fair Value
H. K. Manpower
Da Wei
Yu Pong
Yu Pong
Yu Pong
China Cast Iron Pipe
Yue Sheng
Yung Hong
Yung Hong		 Beneficiary certificates
Union Money Market Fund
The RSIT Enhanced Money Market
Jih Sun Money Market Fund
Capital Money Market Fund
Beneficiary certificates
Jih Sun Money Market Fund
Structured finance products
CLN Jiajing Three
Beneficiary certificates
FSITC US Top 100 Bond Fund
FSITC Taiwan Money Market
KGI Global ESG Sustainable High Yield
Bond Fund
Taishin 1699 Money Market
KGI Feng-Li Fund
Common stocks
Yulon Motor Company
Fubon Financial Company
Beneficiary certificates
Franklin Templeton Sinoam Money Market
The RSIT Enhanced Money Market Fund
Common stocks
YUE KI INDUSTRIAL CO., LTD.
Beneficiary certificates
FSITC Taiwan Money Market
Cathay Asian High Yield Bond Fund
Common stocks
CARNIVAL Company
Kian-shen Company
TAC Corporation
Yulon Finance Corporation, Preferred
Shares A		 The parent company
The same ultimate parent
company
Related party in substance
Related party in substance
The same ultimate parent
company
The same ultimate parent
company		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - current
Financial assets at fair value through other comprehensive
income - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - current		 235
254
206
129
172
-
1,000
2,798

1,000
734
800
-
2,419
153
42
16
3,582
500
141
81

7
8,001		 $ 3,123
3,061
3,076
2,093
2,578
30,150
10,218
43,177
10,516
10,023
11,793
4
113,077
1,600
509
100
55,280
5,093
1,578
5,515
710
409,665		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.80
-
-
-
-
-
8.00		 $ 3,123
3,061
3,076
2,093
2,578
30,150
10,218
43,177
10,516
10,023
11,793
4
113,077
1,600
509
100
55,280
5,093
1,578
5,515
710
409,665		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

Holding
Company
Name		 Type and Name of Marketable
Securities		 Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
Yu Ching
Yu Ching
Yu Chang
Yushin
Empower
Yu Sing		 Orgchem Technology Company
T-Car Inc.
ADTO Company
ROCKER ZONE
Beneficiary certificates
Jih Sun Money Market Fund
Franklin Templeton SinoAm Fund
Common stocks
Yulon Motor Company
Yulon Management
Common stocks
Luxgen Taichung
Kai Xing Insurance Agency
Common stocks
Kai Xing Insurance Agency
Common stocks
Kai Xing Insurance Agency
Luxgen Taichung
Common stocks
Kai Xing Insurance Agency
Beneficiary certificates
Jih Sun Money Market Fund		 The parent company
Related party in substance
The same ultimate parent
company
The same ultimate parent
company		 Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current		 291
1,275
1
330
11,974
1,631
7,526
1
250
43
43
43
120
43
61,757		 $ 5,085
25,728
10
5,945
179,004
17,006
352,990
9
1,896
1,785
781
1,477
1,200
842
923,266		 -
-
-
-
-
-
0.75
0.01
3.52
6.96
6.96
6.67
1.13
6.97
-		 $ 5,085
25,728
10
5,945
179,004
17,006
352,990
9
1,896
1,785
781
1,477
1,200
842
923,266		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Holding Company
Name		 Type and Name of Marketable Securities Relationship with the
Holding Company		 Financial Statement Account December 31, 2020 December 31, 2020 December 31, 2020 Note
Shares or
Units		 Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
Sin Chi
Yulon China
Luxgen
Luxgen
Yu-Jie
Su Zhou Feng Shen
Chuang Jie		 Common stocks
CARNIVAL Company
RECTRON LTD.
Yang Ming Marine Transport Corporation
SHIN KONG SECURITY CO.,LTD.
Compal Electronics, INC
Yue Sheng Company
Beneficiary certificates
Jih Sun Money Market Fund
Beneficiary certificates
Franklin Money Fund
Common stocks
YUNG JEN INDUSTRIAL CO., LTD.
Beneficiary certificates
CTBC Hwa-win Money Market Fund
Common stocks
Yulon Finance Corporation, Preferred
Shares A
Financial products
7-Day Call Deposit
Lidodo Public Structural Deposit
Common stocks
Guang Zhou Cheng Yi
Financial products
Bank Of Nanjing Call Deposit
Fubon Bank (China) Structured Deposit
Financial products
Structural Deposit		 Related party in substance
The same ultimate parent
company
The same ultimate parent
company		 Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through profit or loss -
non-current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - current
Financial assets at fair value through profit or loss - current
Financial assets at fair value through other comprehensive
income - non-current
Financial assets at amortized cost - current
Financial assets at amortized cost - current
Financial assets at fair value through profit or loss - current		 59
16
6
50
14
2
569
12,476
75
36,012
8,000
-
-
660
-
-
-		 $ 660
403
163
1,852
291
33
8,506
130,109
2,136
400,000
409,600
65,472
144,038
4,153
375,373
43,648
130,944		 -
-
-
-
-
-
-
-
-
-
8.00
-
-
2.20
-
-
-		 $ 660
403
163
1,852
291
33
8,506
130,109
2,136
400,000
409,600
65,472
144,038
4,153
375,373
43,648
130,944		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued)

328
YULON MOTOR
Holding Company
Name		 Type and Name of Marketable Securities Relationship
with the Holding
Company		 Financial Statement Account December 31, 2020 Note
Shares or Units Carrying
Amount		 Percentage
of
Ownership
(%)

Fair Value
HangZhou Yu Zhong
Hangchow Liangrun
Hang Zhou Haitec
Company		 Financial products
Yuntong Wealth Term Structured Deposit
Financial products
Yuntong Wealth Term Structured Deposit
Financial products
Pension Financial products
Daily schedule Financial products
Income Progressive Wealth Management Products		 Financial assets at fair value through profit or
loss - current
Financial assets at fair value through profit or
loss - current
Financial assets at fair value through profit or
loss - current
Financial assets at fair value through profit or
loss - current
Financial assets at fair value through profit or
loss - current		 -
-
-
-
-		 $ 19,642
21,824
27,498
8,511
6,111		 -
-
-
-
-		 $ 19,642
21,824
27,498
8,511
6,111		 -
-
-
-
-

(Concluded)

TABLE 4

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name Type and Name of Marketable
Securities		 Financial Statement Account Counterparty Relationship Beginning Balance Beginning Balance Acquisition Acquisition Disposal Disposal Disposal Disposal Ending Balance Ending Balance
Shares/Units Amount
(Note)		 Shares/Units Amount Shares/Units Amount Carrying
Value		 Gain (Loss)
on Disposal		 Shares/Unit
s		 Amount
(Note)
The Company
Yulon Overseas
Yulon China
Yulon China
Holding
Yulon China (HK)
Holding
Yulon Motor
Investment
Yulon China (HK)
Holding		 KGI Securities PGN-structured
products
ML Securities PGN-Commercial
Paper-90 Days
KGI Securities CLN-structured
products
Yuanta De-Li Money Market Fund
Jih Sun Money Market Fund
Capital Money Market Fund
Prudential Financial Money Market
FSITC Taiwan Money Market
Hua Nan Phoenix Money Market
Union Money Market Fund
CTBC Hwa-win Money Market Fund
Taishin 1699 Money Market
Yulon Overseas
Haitec
Luxgen
Yulon China
Yulon China Holding
Yulon China (HK)
Yulon Motor Investment
Sheng Qing
LUXGEN(hangzhou) Motor Sales		 Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Financial assets at fair value
through profit or loss - current
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method
Investments accounted for using
equity method		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 6
-
-
-
33,775
-
31,582
-
-
-
-
-
-
116,370
980,000
-
-
-
-
-
-		 $ 600,011

-

-

-

502,492

-

501,580

-

-

-

-

-
(2,540,934)
(9,314,207)

727,182
(3,199,133)
(4,784,558)
(4,784,563)

(108,285)
1,847,524
(5,022,369)
-

5

6

30,481

1,707

32,523

-

33,750

48,903

64,688

45,123

41,159

-

631,030

600,000

-

-

-

-

-

-		 $ -

500,000

600,000

500,000

25,503

527,675

-

520,000

800,000

859,739

500,000

560,156
8,507,874
7,474,000
6,000,000
8,507,874
8,578,779
8,578,779
2,603,385
2,610,874
5,897,000
6

5

6

30,481

34,110

30,821

31,582

19,818

30,594

33,902

45,123

36,750

-

-

975,000

-

-

-

-

-

-		 $600,379
500,721
600,568
500,263
509,297
500,637
503,262
305,437
500,668
450,631
500,614
500,786
-
-
-
-
-
-
-
-
-		 $ 600,000
500,000
600,000
500,000
506,214
500,000
500,000
304,999
500,000
450,000
500,000
500,000
-
-
-
-
-
-
-
-
-		 $ 379

721

568

263

3,083

637

3,262

437

668

631

614

786

-

-

-

-

-

-

-

-

-
-

-

-

-

1,372

1,702

-

13,932

18,309

30,786

-

4,409

-
747,400
605,000

-

-

-

-

-

-		 $ -
-
-
-
20,518
27,689
-
215,015
300,007
409,748
-
60,168
7,936,718
(1,567,265)
204,974
7,961,705
6,284,898
6,284,893
5,552,817
4,043,078
227,205

(Continued)

Company Name Type and Name of Marketable
Securities		 Financial Statement
Account		 **Counterparty ** Relationship Beginning Balance Beginning Balance Acquisition Acquisition Disposal Disposal Disposal Disposal Ending Balance Ending Balance
Shares/Units Amount
(Note)		 Shares/Units Amount Shares/Units Amount Carrying
Value		 Gain (Loss)
on Disposal		 Shares/Units Amount
(Note)
Yulon China
Luxgen
Haitec
Car-plus Corporation
Car Plus Global
Investment (Samoa)
Corporation
Car Plus Hangzhou
Investment (Samoa)
Corporation
Luxgen		 Wen Yang
Haitec
Foxtron Vehicle Technologies Co.,
Ltd.
Car Plus Global Investment (Samoa)
Co., Ltd.
Car Plus Hangzhou Investment
(Samoa) Co., Ltd.
Car-Plus Go Co., Ltd.
Hua Nan Phoenix Money Market
CTBC Hwa-win Money Market Fund		 Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Investments accounted for
using equity method
Financial assets at fair
value through profit or
loss - current
Financial assets at fair
value through profit or
loss - current		 -
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-		 -
-
-
18,000
6,000
68,662
-
-		 $ 192,658
-
-
643,644
54,306
90,510
-
-
-

522,700

754,200

13,200

13,200

146,747

61,229

126,336		 $ 452,518
5,227,000
7,542,000

378,921

378,921

631,667
1,000,000
1,400,000		 -
-
-
-
-
-
61,229
90,324		 $ -
-
-
-
-
-
1,000,072
1,000,025		 $ -
-
-
-
-
-
1,000,000
1,000,000		 $ -

-

-

-

-

-

72

25
-

522,700

754,200

31,200

19,200

215,409

-

36,012		 $ 681,189

-
7,477,802

790,208

180,060

300,100

-

400,000
(Concluded)

TABLE 5

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

ACQUISITION OF INDIVIDUAL REAL ESTATE AT PRICES OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company
Name		 Types of
Property		 Transaction
Date		 Transaction
Amount		 Payment Term Counterparty Nature of
Relationships		 Prior Transaction of Related Counterparty Prior Transaction of Related Counterparty Prior Transaction of Related Counterparty Prior Transaction of Related Counterparty Price Reference Purpose of
**Acquisition **		 Other
Terms
Owner Relationships Transfer Date Amount
Haitec Building
Land		 2020/8/10
2020/8/10		 $ 359,270
1,490,730		 Asset-based
investment
Asset-based
investment		 The Company
The Company		 The parent
company
The parent
company		 -
-		 -
-		 -
-		 $ -
-		 Great Eastern Real
Estate
Appraisers,
Zhengyi Real
Estate Appraisers
Great Eastern Real
Estate
Appraisers,
Zhengyi Real
Estate Appraisers		 Asset-based
investment
Asset-based
investment		 None
None

TABLE 6

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

DISPOSAL OF INDIVIDUAL REAL ESTATE AT PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Seller **Property ** Event Date
Original
Acquisition
Date		 Carrying
Amount		 Transaction
Amount		 Collection of
Payments		 Gain (Loss) on
Disposal		 Counterparty Relationship Purpose of Disposal Price Reference Other
Terms
The Company Land
Building
Land		 2020/5/14
2020/8/10
2020/8/10		 1989/12/1
2007/11/1
1965/6/1		 $ 129,136
321,626
234,216		 $ 443,416
359,270
1,490,730		 Collected
Asset-based
investment
Asset-based
investment		 $ 314,280
20,536
(Note)
1,256,514
(Note)		 Eunition
Enterprise
Haitec
Haitec		 Other related
party
Subsidiary
Subsidiary		 Revitalising of assets
Asset-based
investment
Asset-based
investment		 Tianyi Real Estate
Appraisers
Great Eastern Real Estate
Appraisers, Zhengyi
Real Estate Appraisers
Great Eastern Real Estate
Appraisers, Zhengyi
Real Estate Appraisers		 -
-
-

Note: Gain (loss) on disposal is deferred since counterparty of transaction is a consolidated entity.

TABLE 7

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Purchasing or (Selling)
Company Name		 Related Party Relationship Tra nsaction De tails Abnormal Tra nsaction Notes/Acco
(Payable) or R		 unts
eceivable		 Note
Purchase/
(Sale)		 Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total
The Company
YFC
Sin Jang
Union & NKH Auto Parts
Yueki
Y-Teks
Yue Sheng
Luxgen
Singgual
Kuen You Trading
Tian Wang
Hang Zhou Haitec Company
Chuang Jie		 Yulon Nissan
Luxgen
Yu Chang
Yuan Lon
Hui-Lian
Luxgen Taipei
Yu Sing
Yushin
Yu Tang
Luxgen Taoyuan
Empower
Cheng Long
Luxgen Taichung
Luxgen Kaohsiung
Luxgen Tainan
Ding Long
Lian Cheng
Yuan Zhi
YFC
The Company
China Motor
The Company
China Motor
Kian-shen
The Company
The Company
Hui-Fong
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
YFC
The Company
Yu Sing
Yu Chang
The Company
Hang Zhou Haitec Company		 An investee accounted for by equity method
The Company’s subsidiary
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The parent company
An investee accounted for by equity method
The parent company
An investee accounted for by equity method
A related party in substance
The parent company
The parent company
A related party in substance
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The parent company
The same ultimate parent company
The same ultimate parent company
The parent company
The same ultimate parent company		 Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales		 $ (23,301,919)
(3,740,173)
(3,833,223)
(2,996,425)
(3,160,020)
(1,250,642)
(3,407,116)
(2,259,352)
(1,984,081)
(613,283)
(2,565,226)
(2,491,927)
(718,125)
(491,278)
(389,318)
(625,571)
(585,756)
(503,188)
(13,085,762)
(782,091 )
(638,455 )
(414,402)
(173,176)
(145,425)
(229,361)
(185,464)
(176,432)
(213,020)
(143,207)
(179,895)
(3,435,097)
(114,982)
(145,586)
(107,008)
(396,994)
(189,165 )		 86
14
9
7
7
3
8
5
5
1
6
6
2
1
1
1
1
1
97
47
38
49
20
17
73
49
4
5
3
4
76
24
90
75
94
90		 Within 45 days
Within 10 days
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
60 days
60 days
45 days
45 days
45 days
45 days
At sight or a month
At sight
At sight
At sight
At sight
Within 3 days
At sight or a month
At sight or a month
At sight or a month
25 days
60 days		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Because the standard and
characteristic of products are
different, there is no base to
compare.
Because the standard and
characteristic of products are
different, there is no base to
compare.
Bargaining
Bargaining
Bargaining
-
Bargaining
-
-
-
-
-
Bargaining
Bargaining
Bargaining
-
Because the standard and
characteristic of products are
different, there is no base to
compare.		 3 days to 45 days
3 days to 10 days
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Same as general customer
Same as general customer
45 days
45 days
45 days
-
At sight or a month
At sight
At sight
At sight
At sight
Within 3 days
At sight or a month
At sight or a month
At sight or a month
-
60 days		 $ 21,295
59,931
11,203
6,721
15,340
29,652
13,448
6,681
1,964
8,538
6,475
10,068
8,297
3,070
3,567
2,262
809
1,428
-
181,595
151,185
86,182
45,762
67,950
49,366
37,916
-
752
532
775
40,472
22,460
13,469
6,822
47,628
-		 23
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
37
24
13
19
55
52
-
2
1
2
85
22
95
83
61
-

(Continued)

Purchasing or (Selling)
Company Name		 Related Party Relationship Transaction Details Transaction Details Transaction Details Transaction Details Abnormal Transaction Abnormal Transaction Notes/Accounts
(Payable) or Receivable		 Notes/Accounts
(Payable) or Receivable		 Note
Purchase/
(Sale)		 Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total
The Company
YFC
Yu Sing
Yushin
Yu Chang
Empower
Luxgen
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Tainan
Luxgen Kaohsiung
Hang Zhou Haitec Company		 Union & NKH Auto Parts
Yueki
Nissan Motor Co., Ltd.
Y-Teks
Yue Sheng
Dongfeng Yulon
Singgual
China Ogihara
Yuen-jin
Taiway
Hang Zhou Haitec Company
Yulon Nissan
Luxgen
Sin Jang
YFC
Yulon Nissan
Kuen You Trading
YFC
Yulon Nissan
YFC
Yulon Nissan
Tian Wang
YFC
Yulon Nissan
The Company
YFC
Luxgen
YFC
Luxgen
YFC
Luxgen
YFC
YFC
Chuang Jie		 The Company’s subsidiary
The Company’s subsidiary
A related party in substance
The Company’s subsidiary
The Company’s subsidiary
An investee accounted for by equity method
The Company’s subsidiary
An investee accounted for by equity method
A related party in substance
A related party in substance
The Company’s subsidiary
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company		 Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase		 $ 782,091
414,402
8,840,735
229,361
185,464
134,966
114,982
147,668
114,280
147,668
396,994
25,778,687
3,435,097
13,085,762
3,407,116
356,625
145,586
2,259,352
287,826
3,833,223
444,912
107,008
2,565,226
351,733
3,740,173
1,250,642
213,020
613,283
143,207
718,125
179,895
389,318
491,278
189,165		 4
2
43
1
1
1
1
1
1
1
2
61
9
29
86
9
4
84
11
86
10
2
38
5
100
80
14
75
18
79
20
73
80
54		 60 days
45 days
12 days after bill of lading
45 days
At sight or a month
60 days after monthly closing
At sight or a month
45 days after monthly closing
45 days after monthly closing
45 days after monthly closing
25 days
Within 3 days
Within 3 days
Payment on the day
Receipt of payment on the day
Receipt of payment on the day
60 days
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Receipt of payment on the day
Within 10 days
Receipt of payment on the day
At sight
Receipt of payment on the day
At sight
Receipt of payment on the day
At sight
Receipt of payment on the day
Receipt of payment on the day
60 days		 Because the standard and
characteristic of products are
different, there is no base to
compare.
Bargaining
-
-
Bargaining
-
Bargaining
Bargaining
Bargaining
Bargaining
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Because the standard and
characteristic of products are
different, there is no base to
compare.		 -
45 days
12 days after bill of lading
-
At sight or a month
60 days after monthly closing
At sight or a month
45 days after monthly closing
45 days after monthly closing
45 days after monthly closing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3 days to 10 days
-
-
-
-
-
-
-
-
60 days		 $ (181,595 )
(86,182)
(971,470)
(49,366)
(37,916)
(546)
(22,460)
(46,870)
-
(29,117)
(47,628)
(229,334)
(40,472)
-
(13,448)
(25,756)
(13,469)
(6,681)
(12,929)
(11,203)
(21,255)
(6,822)
(6,475)
(7,763)
(59,931)
(29,652)
(752)
(8,538)
(532)
(8,297)
(775)
(3,567)
(3,070)
-		 6
3
32
2
1
-
1
2
-
1
2
50
9
-
10
19
10
4
7
14
26
8
4
5
100
57
1
36
2
45
4
26
20
-

Note: The balance of Accounts receivable $358,920 thousand less allowance for uncollectible accounts $358,920 thousand to Dongfeng Yulon is $0.

(Concluded)

TABLE 8

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name Related Party Relationship Ending Balance Turnover
Rate		 Overdue Overdue Amounts
Received in
Subsequent
Period		 Allowance for
Impairment
Loss
Amount Action Taken
The Company
Union & NKH Auto Parts
Luxgen
Yueki
TAC Leasing (Suzhou)
Yulon Motor Finance
Shinshin
LUXGEN (Hangzhou) Motor Sales
Yulon Motor Investment
Union & NKH Auto Parts
Haitec
Hangchow Y-Teks
Hang Zhou Haitec Company
Hangchow Yue Wan
Haitec
Yulon Motor Investment		 Luxgen
Dongfeng Yulon
The Company
Dongfeng Yulon
Hangchow Yue Wan
Dongfeng Yulon
Dong Feng Yulon Sales Company
YES Energy Service
Dong Feng Yulon Sales Company
Dongfeng Yulon
Dongfeng Yulon
Hangchow Liangrun
China Motor
Dongfeng Yulon
Luxgen
Dongfeng Yulon
Dongfeng Yulon
Dongfeng Yulon
Yulon Motor Investment
Hang Zhou Haitec Company		 Subsidiary
An investee accounted for by equity method
The parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
An investee accounted for by equity method
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company		 $ 147,454 (Note 1)
358,919
181,595
172,800
196,750 (Note 2)
285,806
136,532
264,219
678,729 (Note 3)
6,548,440 (Note 4)
405,477 (Note 5)
201,683 (Note 6)
151,317 (Note 7)
7,510,233 (Note 8)
192,559 (Note 9)
105,398 (Note 10)
531,224 (Note 10)
108,325 (Note 10)
103,422 (Note 11)
236,916 (Note 11)		 26.94
-
5.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
142,490
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
Depends on
status of fund
Depends on
status of fund
Depends on
status of fund
-
-
-
-
-
-
-
-
-
-
-
-		 $ 99,353
-
-
-
-
-
-
515
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
358,919
-
172,800
6,972
285,806
136,532
1,362
678,729
6,542,628
405,477
-
-
7,510,233
132,623
105,398
531,224
107,600
103,422
-

(Continued)

336
YULON MOTOR
Company Name Related Party Relationship Ending Balance Turnover
Rate		 Overdue Amounts
Received in
Subsequent
Period		 Allowance for
Impairment
Loss
Amount Action Taken
Sheng Qing
Yu-Jie
Yu-Hsin Intl
Yu-Hsin Intl HK
Ke Yu
Qing Tai
Mei De
Nan Jing Yu Hua
Chuang Jie New Energy Vehicle
Hangchow Liangrun
Yulon China		 Yu-Jie
Xiamen Young Chang
Yulon Motor Investment
Nanjing Hanhong
Dongfeng Yulon
Hang Zhou Haitec Company
Dongfeng Yulon
Yu-Hsin Intl HK
Hangchow Y-Teks
Tai Feng
Sheng Qing
Dong Tai
Shi Cheng
Nanjing Hanhong
Hang Zhou Haitec Company
Dongfeng Yulon
Wen Yang		 The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
The same ultimate parent company
An investee accounted for by equity method
The same ultimate parent company		 $ 174,742 (Note 11)
167,789 (Note 11)
889,952 (Note 11)
154,077 (Note 11)
157,133 (Note 11)
100,383 (Note 11)
218,650 (Note 11)
113,920 (Note 11)
113,920 (Note 11)
207,206 (Note 11)
213,002 (Note 11)
109,120 (Note 11)
130,944 (Note 11)
118,382 (Note 11)
100,908 (Note 11)
156,694 (Note 11)
603,075 (Note 11)		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
11,645
157,133
-
218,650
-
-
-
-
-
-
-
-
156,694
-

Note 1: The receivables comprised accounts and notes receivable of $59,931 thousand and other receivables of $87,523 thousand.

Note 2: The receivables comprised accounts and notes receivable of $138,588 thousand and other receivables of $58,162 thousand.

Note 3: The receivables comprised accounts and notes receivable of $6,940 thousand and other receivables of $671,789 thousand. Note 4: The receivables comprised accounts and notes receivable of $2,930 thousand and other receivables of $6,545,510 thousand. Note 5: The receivables comprised accounts and notes receivable of $91,117 thousand and other receivables of $314,360 thousand. Note 6: The receivables comprised accounts and notes receivable of $294 thousand and other receivables of $201,389 thousand. Note 7: The receivables comprised accounts and notes receivable of $151,185 thousand and other receivables of $132 thousand. Note 8: The receivables comprised accounts and notes receivable of $6,851,396 thousand and other receivables of $658,837 thousand.

(Continued)

(Concluded)

Note 9: The receivables comprised accounts and notes receivable of $19,226 5thousand and other receivables of $294 thousand.

Note 10: The receivables comprises account receivables.

Note 11: The receivables comprises other receivables.

TABLE 9

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES ON WHICH THE CORPORATION EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor
Company		 Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits (Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
The Company
YFC		 Yulon Nissan
China Motor
YFC
Yueki
Yue Sheng
China Cast Iron Pipe
Union & NKH Auto Parts
Uni-calsonic
Yu Chang
China Ogihara
Yuan Lon
Yu Ching
Yu Pong
Yung Hong
Yushin
China Engine
Cheng Long
Yu Tang
ROC-Spicer
Car-plus Corporation
Empower
Chan Yun
Sin Chi
Yu Sing
Y-Teks
Yulon Overseas
Tokio Marine Newa Insurance
Haitec
Hui-Lian
DXMEDIA
Luxgen
Yulon Management
Yulon Construction
Hong Kong-Spicer
Advance Power Machinery
Car-plus Corporation
Shinshin
TAC Global
Tokio Marine Newa Insurance
Empower
Yu Rich		 Miaoli, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
Kaohsiung, Taiwan
Taoyuan, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taichung, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Taichung, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taoyuan, Taiwan
B.V.I.
Taipei, Taiwan
New Taipei City, Taiwan
Changhua, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Hong Kong
Miaoli, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Samoa
Taipei, Taiwan
Taichung, Taiwan
Taipei, Taiwan		 Sales of cars
Manufacturing and sales of cars
Sale and lease of cars and parts
Manufacturing and sale of car components
Car manufacture and furnishing; manufacture,
installation and sale of car parts
Metal casting and related business
Manufacturing and sale of springs for various motor
vehicles and sale of nonmotorized vehicles
Production and sales of various kinds of radiators, heat
transfer apparatus, geysers, water tank and car parts
Sale, maintenance and repair of cars and parts
Design, manufacturing and sales of cars and various
kinds of molds, fixtures, stamping parts and
inspection implements
Sale, maintenance and repair of cars and parts
Import and export and sale of cars and parts
Yulon basketball team management and related services
Investments
Sale, maintenance and repair of cars and parts
Manufacturing of car engines and parts
Sale, maintenance and repair of cars and parts
Sale, maintenance and repair of cars and parts
Manufacturing and sales of cars and parts
Sales and lease of cars
Sale, maintenance and repair of cars and parts
Wholesale and retail of information software
General advertising planning services
Sale, maintenance and repair of cars and parts
Manufacturing and furnishing, cars and the import and
export of, and serving as sales agent for, car parts
Investments
Property insurance
Product design
Sale, maintenance and repair of cars and parts
Publication
Sales and producing of cars and related parts
Investment advisor and temporary labor services
Construction industry
Investment
Sales and producing of cars and related parts
Car lease and trade
Installment financing services for cars and trucks
Shareholding company
Property insurance
Retail of cars and related parts
Installment loans of consumer goods and wholesale of
cars and parts		 $ 7,062,225
810,409
512,150
169,978
238,872
24,850
183,692
96,449
114,096
280,071
84,405
1,077,221
1,122,659
537,311
132,986
320,000
51,677
71,166
476,740
106,372
29,987
40,680
871,157
325,199
61,307
32,321,598
796,956
2,047,449
74,366
-
20,840,000
32,991
3,034,485
56,475
10,787
757,288
419,808
3,342,688
58,070
48,843
1,160,662		 $ 7,062,225
810,409
512,150
169,978
238,872
24,850
183,692
96,449
114,096
280,071
84,405
1,077,221
1,122,659
537,311
132,986
320,000
51,677
71,166
476,740
106,372
29,987
40,680
871,157
325,199
61,307
23,813,725
796,956
2,047,449
74,366
10,000
14,840,000
32,991
3,034,485
56,475
-
757,288
419,808
3,089,942
58,070
48,843
1,160,662		 143,500
44,592
152,044
12,767
23,061
25
21,729
5,983
13,999
25,470
7,999
72,691
28,470
77,622
19,999
32,000
11,491
7,117
102
3,254
5,999
16,664
108,000
17,999
602
1,083,098
52,010
747,400
6,116
-
605,000
3,299
122,100
1,585
500
64,570
221,833
108,833
5,807
8,100
138,209		 47.83
8.05
45.75
65.58
80.07
77.66
25.01
30.68
64.99
37.76
20.00
60.00
100.00
100.00
99.99
18.95
27.00
20.33
20.46
3.46
20.00
87.71
100.00
99.99
34.00
100.00
17.39
58.84
20.34
-
100.00
32.99
100.00
20.50
100.00
68.57
100.00
100.00
1.94
27.00
100.00		 $ 10,305,719
4,090,118
5,211,313
399,358
359,474
67,110
587,055
127,517
74,902
512,082
105,927
522,967
841,467
628,734
211,693
154,861
226,747
109,692
204,539
70,929
73,206
33,927
1,229,079
130,781
307,654
7,936,718
1,672,821
(1,567,265)
66,406
-
204,974
30,232
4,546,029
50,557
11,520
1,411,342
3,781,840
4,370,654
185,430
104,402
2,155,384		 $ 6,540,938
3,277,320
3,139,301
(36,575)
(1,246)
12,353
119
(6,256)
29,254
131,073
3,543
88,545
35,129
27,181
3,046
29,898
131,052
12,653
139,675
245,067
10,648
(1,926)
103,608
(9,431)
83,931
2,621,431
860,719
(3,873,434)
21,639
(3,995)
(2,465,119)
5,176
178,025
(9,679)
10,380
245,067
591,295
88,675
860,719
10,648
481,496		 $ 3,251,759
257,087
1,328,915
(20,955)
(688)
9,593
(589)
(2,212)
8,331
55,112
6,416
53,127
36,028
27,181
(23,465)
6,865
33,588
1,851
28,661
8,479
(4,990)
(1,689)
103,608
(11,028)
29,751
1,899,933
149,679
(2,477,765)
2,428
(799)
(2,463,134)
(3,547)
169,721
(1,984)
733
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Investor Company Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits (Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
Shinshin
YES Energy Service
Car-plus Corporation
Da-Wei
Diamond Leasing
Sin Jang
Car-Plus Samoa
TAC Global
Yulon Finance Philippines
Investment (Samoa)
Co., Ltd.
Yulon Finance Philippines
Corporation
Singan		 Yulon Finance Philippines
Investment (Samoa) Co., Ltd.
Sin Gan
Shinshin Samoa
YES Energy Service
Power Engineering
Diamond Leasing
Car-Plus Samoa
Da-Wei
Hong Shou Culture
Da Teng
Da-Chuan
Da-Mu
Da-Chung
Yong-Xiang
Guo-Ma
Jin-Yu
Zhong-Xing
Li-Yang
He-Yang
Jia-Yu
Tian-Yang
H. K. Manpower
Sinjang International Investment
(Samoa) Co., Ltd.
Car-Plus China
Car-Plus Shanghai
Car-Plus Hangzhou Investment
(Samoa) Co., Ltd.
Car-Plus China
Car-Plus Shanghai
Car-Plus Hangzhou Investment
(Samoa) Co., Ltd.
Yu Rong International
Sinjang International Investment
(Samoa) Co., Ltd.

Yulon Finance Philippines
Corporation

Yulon Finance Philippines
Corporation
Hsiang Shuo
Singgual
Sin Jang
Ching-Tong
Hong Shou Culture		 Samoa
Taipei, Taiwan
Samoa
New Taipei City, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Samoa
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Taipei, Taiwan
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Samoa
Philippine
New Taipei City, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
Tainan, Taiwan
Taipei, Taiwan		 Shareholding company
Wholesale and retail of information software
Shareholding company
Energy Technical Services
Wholesale and retail sale of batteries
Car lease and trade
Shareholding company
brokerage of electric vehicles
Publication
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Taxi service
Temporary labor services
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Shareholding company
Financing and leasing of cars and
commercial vehicles, and car purchases
and loans to car dealers for car purchases
Towing
Sale of cars and parts
Sale and brokerage of secondhand vehicles
Sales maintenance and repair of cars and
parts
Publication		 $ 437,490
315,157
389,077
246,407
2,000
85,000
941,992
40,000
11,881
7,028
1,125
1,575
900
3,810
2,286
3,048
3,810
5,381
2,032
1,778
2,159
10,000
42,790
193,004
185,183
563,805
128,647
123,455
375,906
2,698,460
16,220
437,490
437,490
128,400
130,591
518,754
75,578
-		 $ 437,490
315,157
389,077
131,407
2,000
85,000
563,071
20,000
11,881
7,028
1,125
1,575
900
-
-
-
-
-
-
-
-
10,000
42,790
193,004
185,183
184,884
128,647
123,455
123,160
2,698,460
16,220
437,490
437,490
128,400
130,591
518,754
75,578
-		 15,000
21,004
12,000
29,000
200
8,500
31,200
4,000
4,050
600
300
600
300
300
400
300
350
900
600
300
600
1,000
1,337
6,000
6,000
19,200
4,000
4,000
12,800
87,496
537
15,000
7,500
10,000
13,000
42,824
6,746
-		 100.00
73.26
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
71.34
60.00
60.00
60.00
40.00
40.00
40.00
100.00
28.66
100.00
100.00
100.00
100.00
100.00
100.00
-		 $ 264,695
341,489
(32,547)
215,314
(10,714)
110,727
790,208
43,418
15,361
7,587
2,112
2,286
1,766
3,868
2,318
3,181
3,910
5,454
2,050
1,805
2,213
20,371
22,734
363,135
246,871
180,060
242,090
164,581
120,040
3,841,319
9,133
264,695
264,695
236,438
174,788
539,926
33,525
-		 $ (147,846)
116,541
(226,022)
(8,407)
2,621
15,927
(243,120)
(2,100)
4,865
(2,645)
(244)
219
158
58
32
133
100
73
18
27
54
4,594
546
(13,467)
32,464
(424,217)
(13,467)
32,464
(424,217)
250,607
546
(147,846)
(147,846)
71,546
5,036
77,964
(19,964)
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Investor Company Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits
(Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
Yu Pong
Yue Sheng
Yung Hong
Yu Ching
Yueki
Yu Chang
Yushin
Empower
Sin Chi
Yu Sing
Y-Teks
Yu-Hsin Intl
Union & NKH Auto Parts
Luxgen
Yulon Construction		 China Motor
Yu Ching
Y-Teks
China Motor
Tokio Marine Newa Insurance
Yulon Nissan
Chinh-Ling
Yulon Management
China Motor
Uni-calsonic
Yue Ki Samoa
Yue Ki HK
Tian Wang
Yu Pool
Luxgen Taoyuan
Yu Shin Investment
Chunmin
Hong Yen
Yu Ming Insurance
Minxiang Leasing Company
Yulon Nissan
Yu Chia
Yulon TOBE
Ding Long
Kuen You Trading
Yu-Hsin Intl
China Motor
Yu-Hsin Intl HK
China Motor
Uni Investment
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Tainan
Luxgen Kaohsiung
Luxgen Overseas Holdings
Singan
Haitec
China Motor
Yufong Property Management		 Taoyuan, Taiwan
Taipei, Taiwan
Taoyuan, Taiwan
Taoyuan, Taiwan
Taipei, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan
Taoyuan, Taiwan
Miaoli, Taiwan
Samoa
Hong Kong
Kaohsiung, Taiwan
Miaoli, Taiwan
Taoyuan, Taiwan
Samoa
Taichung, Taiwan
Samoa
Taichung, Taiwan
Taichung, Taiwan
Miaoli, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan
Taipei, Taiwan
New Taipei City, Taiwan
B.V.I.
Taoyuan, Taiwan
Hong Kong
Taoyuan, Taiwan
B.V.I.
Taipei, Taiwan
Taoyuan, Taiwan
Taichung, Taiwan
Tainan, Taiwan
Kaohsiung, Taiwan
Singapore
New Taipei City, Taiwan
New Taipei City, Taiwan
Taoyuan, Taiwan
New Taipei City, Taiwan		 Manufacturing and sales of cars
Import and export and sale of cars and parts
Manufacturing and furnishing, cars and the import and
export of, and serving as sales agent for, car parts
Manufacturing and sales of cars
Property insurance
Sales of cars
Product design
Investment advisor and temporary labor services
Manufacturing and sales of cars
Production and sales of various kinds of radiators, heat
transfer apparatus, geysers, water tank and car parts
Investment
Investment
Secondhand cars and car related products
Supply of and providing services on information
software and retail trade of spare parts of vehicles
Sales, maintenance and repair of cars and related
products
Investment
Comprehensive retail of car parts
Investment
Property insurance
Lease of cars and related services
Sales of cars
Sales, maintenance and repair of heavy vehicles and
related products
Sale, maintenance and repair of cars and parts
Sales, maintenance and repair of cars and parts
Sale, maintenance and repair of cars and parts
Investments
Manufacturing and sales of cars
Investments
Manufacturing and sales of cars
Investments
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Repair, wholesale and retail of cars and parts
Investments
Wholesale and retail of information software
Product design
Manufacturing and sales of cars
Construction greening industry		 $ 35,269
682,685
25,510
193,869
55,467
336,923
36,098
9
243
17,328
123,058
330,094
17,000
7,000
12,250
98,111
8,000
47,082
5,000
30,000
311,853
84,000
27,996
37,790
10,000
65,854
265
311,194
256
289,287
184,999
44,329
103,599
98,897
65,998
-
81,191
5,227,000
1,497
24,990		 $ 35,269
682,685
25,510
193,869
55,467
336,923
36,098
9
243
17,328
123,058
330,094
17,000
7,000
12,250
46,331
8,000
47,082
5,000
-
311,853
84,000
27,996
37,790
10,000
65,854
265
311,194
256
289,287
184,999
44,329
103,599
98,897
65,998
1,300,595
81,191
-
1,497
24,990		 454
48,461
212
3,998
3,500
3,500
5,000
1
11
800
4,126
10,600
1,700
1,000
2,100
350
800
4,576
500
3,000
3,050
50,000
28,080
3,779
1,000
3,347
11
12,391
26
8,403
18,500
6,299
10,360
9,890
6,600
-
5,670
522,700
13
2,499		 0.08
40.00
11.99
0.72
1.17
1.17
100.00
0.01
-
4.10
100.00
100.00
100.00
100.00
20.00
100.00
100.00
100.00
100.00
100.00
1.02
100.00
100.00
37.79
100.00
66.67
-
100.00
-
100.00
99.99
59.99
97.73
94.18
92.94
-
19.78
41.15
-
99.96		 $ 22,975
584,238
112,403
29,730
112,161
248,679
-
9
583
17,328
448,493
37,179
28,715
51,352
18,028
58,505
11,367
41,830
4,590
30,004
216,528
29,146
220,235
27,944
13,811
928,291
572
320,473
1,295
1,895,272
132,047
53,710
116,049
102,498
50,034
-
92,182
-
1,496
49,542		 $ 3,277,320
88,545
83,931
3,277,320
860,719
6,540,938
13
5,176
3,277,320
(6,256)
(2,108)
(10,237)
7,442
6,727
15,425
(17,005)
190
(11,646)
(339)
-
6,540,938
154
(420)
(12,878)
1,603
90,054
3,277,320
(24,806)
3,277,320
4,245
(49,538)
15,425
13,131
5,753
(16,681)
4,388
116,541
(3,873,434)
3,277,320
6,090		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Continued)
Investor Company Investee Company Location Main Businesses and Products Investment Amount Investment Amount Balance as of December 31, 2020 Balance as of December 31, 2020 Balance as of December 31, 2020 Net Income
(Loss) of the
Investee		 Share of
Profits (Loss)		 Note
December 31,
2020		 December 31,
2019		 Shares Percentage
of
Ownership		 Carrying Value
Haitec
Hua-Chung Overseas
Investment Co., Ltd.
Yulon Overseas
Yulon Philippine
Yulon China
Yulon China Holding		 SinYi Co., Ltd.
Hua-Chung Overseas Investment
Co., Ltd.
Foxtron Vehicle Technologies
Corporation
Haitec China Investment
Haitec Japan
Yulon Philippine
Yulon China
UMPI & SCIC
NPI
Qing Yi
Wen Yang
Tai Xin
Yulon China (Hong Kong)
Investment Limited
Yulon China Holding
Feng Hua
Yulon China (HK) Holding		 New Taipei City, Taiwan
B.V.I.
New Taipei City, Taiwan
Hong Kong
Japan
Cayman
B.V.I.
Philippine
Philippine
Samoa
Samoa
Samoa
Hong Kong
Cayman
Hong Kong
Hong Kong		 Wholesale and retail of cars and parts
Investments
Product design
Investments
Product design of cars
Investments
Investments
Manufacturing of cars and factory lease
Sale, maintenance and repair of cars and
parts
Investments
Investments
Investments
Investments
Investments
Investments
Investments		 $ 500
490,393
7,542,000
461,709
-
1,017,726
30,221,151
831,445
66,990
436,427
844,432
-
7,754,130
20,439,529
79,744
20,439,529		 $ 500
490,393
-
461,709
28,608
1,071,328
23,211,593
875,236
70,518
919,606
482,678
726,152
8,162,529
12,844,035
83,944
12,844,035		 50
5,465
754,200
6,328
-
35,741
1,050,171
10,914
12
-
31,450
-
-
702,043
-
-		 100.00
100.00
49.00
100.00
-
100.00
100.00
100.00
24.50
100.00
100.00
-
100.00
100.00
40.00
100.00		 $ 8,896
(398,033)
7,431,785
(398,320)
-
97,375
7,961,705
95,118
-
78,097
784,834
-
14,926
6,284,898
142,037
6,284,893		 $ (785)
(108,920)
(223,010)
(127,818)
19,208
1,617
2,620,017
2,421
(2,433)
(17,266)
(20,158)
1,271
14,298
2,582,206
27,953
2,582,206		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Concluded)

TABLE 10

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company Main Businesses and Products Paid-in
Capital		 Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittanc e of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment
Gain (Loss)
(Note 2)		 Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Xiamen Young Chang
Ke Yu
Tai Feng
Qing Tai
Dongfeng Yulon
Su Zhou Chen Long
Yulon Motor Investment
LUXGEN (Hangzhou) Motor Sales
Yulon Motor Finance (China)
Hang Zhou Jian Tai
Hang Zhou Chun Yu
Hang Zhou Xian Bo
Hang Zhou Yong Ren
Hang Zhou Yo Zhan
Hang Zhou Haitec Company		 Cars, electronics, textiles and related business
investment consulting services; advanced
technology, products and equipment import
consulting
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Computer software maintenance and computer
system integration
Manufacturing of key car components, electric
cars and related parts
Sale, maintenance and repair of cars and parts
Investment, shareholding and related business
Sales of cars and car parts
Car purchases and loans to car dealers for car
purchases
Tailpipe, catalyzer assembling, chassis,
connection arms, crossrails of engines and
other stamping and welding parts
Tire monitors, blue tooth communication
device, keyless entry system
Manufacturing and design of fixtures and jigs
of vehicles, mechanical and electrical
products; inner and external fittings and
furnishing
Manufacturing of machinery, car accessory and
seat parts
Manufacturing of car models and related parts,
fixtures and jigs, stamping, and related metal
products
Product design		 $ 67,539
785,798
498,520
524,934
15,466,923
192,743
8,247,492
12,862,466
4,364,800
139,641
59,650
75,016
109,068
346,126
449,428		 b.
b.
b.
b.
b.
b.
b.
b.
a.
b.
b.
b.
b.
b.
b.		 $ 55,763
723,154
445,203
460,193
7,969,003
83,944
1,745,943
7,031,809
2,191,725
2,998
2,998
2,998
2,249
2,998
-		 $ -
-
-
-
-
-
-
5,897,000
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 55,763
723,154
445,203
460,193
7,969,003
83,944
1,745,943
12,928,809
2,191,725
2,998
2,998
2,998
2,249
2,998
-		 $ (50,746 )
1,400
(1,186 )
(20,330 )
(6,818,549)
27,954
3,218,531
(594,813)
(89,115 )
-
-
-
2,003
-
(132,085)		 100.00
100.00
100.00
100.00
50.00
40.00
100.00
100.00
73.42
-
-
-
2.59
2.10
100.00		 $ (50,746 )
1,400
(1,186 )
(20,330 )
-
11,181
3,218,531
(470,669 )
(339,976 )
-
-
-
-
-
(132,085 )		 $ 491,891
655,665

358,953

369,058
-
355,094
5,552,817
227,205

3,205,745
-
-
-
2,136
-
(411,813)		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, b.
2, b.
2, b.
2, b.
2, c.
2, b.
2, b.
2, a.
2, b.
-
-
-
-
-
2, a.
(Continued)
Investee Company Main Businesses and Products Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of
Funds		 Remittance of
Funds		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Fujian Spicer
Shenyang Spicer
Hui Zhou Deng Feng Yi Jing
Hangchow Yue Wan
Hangchow Y-Teks
Changzhou Y-TEKS
Liu Zhou Yu Xin Fang Sheng
Guang Zhou He Xi
Fuzhou Lianghong
Hangchow Liangrun
Guang Zhou Ri Zheng Spring
Yu-Jie
Car-Plus (Suzhou)
Car-Plus Leasing (Shanghai)
Car-Plus Go Co., Ltd.
TAC Leasing (Suzhou)
TAC Finance Company
Zhe Jiang Cheng Yi Company
Hangzhou Cheng-Yi-Jun
Zhejiang Cheng-Yi Auction
Su Zhou Yu Guo
Shanghai Yu Guo
Hefei YuGuo		 Production of car key parts, drive axle
assemblies and parts
Manufacturing and sales of automotive drive
shafts, mechanical drive shafts and parts
Manufacturing of car parts
Manufacturing of car parts
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing and sales of car interior
furnishing and related business
Manufacturing of car seats
Manufacturing of car seats
Manufacturing of vibration damper springs
Construction industry
Lease of cars and related services
Lease of cars and related services
Lease of cars and related services
Equipment and cars leasing business
Equipment and cars leasing business
Equipment and cars leasing business
Secondhand vehicle consulting service and
vehicle agent
Secondhand vehicle authenticate and
evaluation service
Car purchases and loans to car dealers for car
purchases
Sales of cars
Sales of cars		 $ 893,937
375,053
654,720
591,789
305,061
50,825
142,400
400,738
453,783
647,067
761,840
2,182,400
284,800
284,800
911,360
2,150,126
854,400
87,296
6,547
8,730
-
8,730
-		 a.
a.
b.
b.
b.
b.
b.
b.
b.
b.
b.
a.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ 228,152
55,124
-
267,362
44,327
-
-
-
-
142,431
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 228,152
55,124
-
267,362
44,327
-
-
-
-
142,431
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ 255,856
(12,413)
(3,962)
(18,317)
(21,935)
(7,344)
34,713
593,722
38,451
(29,524)
24,099
1,800
(13,454)
32,480
(424,218)
476,627
(563,770)
(31,955)
(3,138)
(873)
(1,276)
(261)
(119)		 20.50
14.30
22.30
80.75
33.39
14.82
5.00
6.00
16.67
40.38
10.00
100.00
39.20
39.20
37.12
45.75
56.60
56.60
56.60
56.60
-
56.60
-		 $ 52,451
(1,775)
(884)
(14,791)
(7,324)
(1,088)
1,736
35,623
6,410
(11,922)
2,410
1,800
(5,274)
12,731
(157,476)
218,057
(319,094)
(18,087)
(1,776)
(494)
-
(148)
(24)		 $ 274,846
342,301
434,008
41,053
26,956
65,541
132,606
917,456
509,240
8,322
1,248,236
2,015,423
604,141
411,448
300,100
3,912,432
(117,506)
18,182
2,538
3,277
-
4,944
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.
2, b.
2, b.
2, b.
2, b.
2, a.
2, b.
2, c.
2, c.
2, c.
2, c.
2, c.
2, c.

(Continued)

Investee Company Main Businesses and Products Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31, 2020		 Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Qingdao YuGuo
Master Good Car (Wuhan)
Genwise
Dong Yu Tech. Company
Fu Jian Yu Xin
Ning Bo Yu Cheng
Shanghai Yuming
Ka Shing Yu Da
Dong Feng Yulon Sales Company
Chuang Jie New Energy Vehicle
Sheng Qing
Mei De
Shi Cheng
Jin Ce
Yi Ding
Dong Tai
Gao Te
Shen Jun Yu Peng
Su Zhou Feng Shen
Guang Zhou Yuan Du
Zhu Hai Fu Te En
Nanjing Hanhong
Wuhan Yu Hsin
HangZhou Yu Zhong
Jiangmen Junxing
Jiangmen Yuli		 Sales of cars
Sales of cars
Sales of car parts
Sales of car parts
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars and car parts
Manufacturing of key car components,
electric cars and related parts
Investments
Computer software maintenance and
computer system integration
Computer software maintenance and
computer system integration
Computer software maintenance and
computer system integration
Computer software maintenance and
computer system integration
Investments
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Trading
Sales of cars
Sales of cars		 $ -
8,730
49,231
65,472
229,483
197,620
325,177
81,164
-
3,448,192
5,410,916
356,991
325,229
88,328
247,874
331,381
260,447
-
215,542
157,166
154,269
581,720
439,999
44,904
90,717
45,813		 b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ -
-
-
-
-
-
-
-
-
3,432,301
469,733
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
2,610,874
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-

3,432,301
3,080,606

-

-
-

-
-
-
-
-
-
-
-
-
-
-
-		 $ (253 )
(11,631 )
(15,464 )
-
(15,897 )
(15,238 )
(60,253 )
(31,731 )
(1,298 )
(573,192 )
(231,634 )
1,726
(19,850 )
(1,537 )
(2,326 )
(22,060 )
(2,639 )
111
150,845
(35,259 )
848
(93,050 )
34,441
728
(21,739 )
(12,424 )		 -
56.60
53.30
42.99
100.00
100.00
66.99
66.99
50.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.00
40.00
51.00
100.00
100.00
100.00
100.00
60.00
60.00		 $ (51)
(6,583)
(8,242)
-
(15,897)
(15,238)
(40,361)
(21,255)
(649)
(573,192)
(231,634)
1,726
(19,850)
(1,537)
(2,326)
(22,060)
(2,639)
72
60,338
(17,982)
848
(93,050)
34,441
728
(13,043)
(7,454)		 $ -
(12,028)
25,824
18,112
24,411
14,954
(31,097)
(20,266)
-
2,842,148
4,043,078
321,782
152,111
70,570
183,540
154,811
207,816
-
330,097
63,252
242,534
285,894
393,718
67,899
12,610
11,706		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, c.
2, c.
2, c.
2, c.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
(Continued)
Investee Company Main Businesses and
Products		 Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittance of Funds Remittance of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31, 2020		 Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
He-Shan Li-Sheng
Guang Zhou Yuan Zhi
Qingdao Yuanhuang
Hang Zhou Hua Zhi
Chang Sha Yu Lu
Hang Zhou Tang Yu
Hang Zhou Chien Yu
Zhuhai Yuhsin
Shenzhen Yu Zhi
Xiao Gan Yu Feng
Su Zhou Feng Shun
Suzhou Yueshun
Su Chou Cheng Pin
Wu Jiang Lian Cheng
Su Zhou Cheng Li
Hang Zhou hsiao Yu
Nan Jing Yu Shang
Hang Zhou Hua You
Su Zhou Cheng Pang
Nan Jing Yu Hua
Su Zhou Cheng Guo
Su Zhou Cheng Hung
Tai Chang Cheng Mau
An Hui Min Tung
An Ching Tsai Tung
An Ching Ling Tung
Tung Ling Kuo Tung
Ho Fei Chun Hui		 Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Investments
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Investments
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars
Sales of cars		 $ -
-
222,010
89,809
141,314
44,904
44,904
22,452
88,552
141,684
112,898
44,904
181,435
44,904
67,811
44,904
35,924
35,924
44,904
134,714
89,461
45,813
45,813
45,813
120,752
-
74,904
-		 b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.
b.		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ (51)
(8,317)
(23,157)
(107,286)
(47,487)
(46)
(69)
(14,912)
(10,120)
28,137
71,898
(4,921)
5,816
23,872
6,698
(39)
(48,656)
(43,517)
10,056
(29,683)
(8,861)
844
12,321
(28,454)
(6,565)
6,034
(7,880)
(1,546)		 60.00
51.00
51.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
40.00
40.00
40.00
40.00
40.00
99.00
100.00
80.00
40.00
100.00
40.00
40.00
40.00
100.00
100.00
100.00
100.00
100.00		 $ (31)
(4,242)
(11,810)
(85,829)
(47,487)
(46)
(69)
(14,912)
(10,120)
28,137
28,759
(1,968)
2,326
9,549
2,679
(38)
(48,656)
(34,813)
4,022
(29,683)
(3,544)
337
4,929
(28,454)
(6,565)
6,034
(7,880)
(1,546)		 $ -
-
(28,518)
(213,378)
4,697
42,845
39,178
12,431
11,073
224,831
241,909
34,159
192,951
85,016
53,517
39,116
5,718
(219,641)
58,236
130,529
37,917
42,941
73,975
23,557
(150)
-
38,694
-		 $ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
2, b.
(Continued)

==> picture [7 x 59] intentionally omitted <==

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

YULON MOTOR
----- End of picture text -----

Investee Company Main Businesses and
Products		 Main Businesses and
Products		 Paid-in Capital Method of
Investment
(Note 1)		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Accumulated
Outward
Remittance for
Investment from
Taiwan as of
January 1, 2020		 Remittanc e of Funds Accumulated
Outward
Remittance for
Investment from
Taiwan as of
December 31,
2020
Net Income
(Loss) of the
Investee		 %
Ownership
of Direct or
Indirect
Investment		 Investment Gain
(Loss) (Note 2)
Carrying
Amount as of
December 31,
2020		 Accumulated
Repatriation of
Investment
Income as of
December 31,
2020		 Note

Outward		 Inward
Zi Bo Yu An
Fu Zhou Yu Xin		 Sales of cars
Sales of cars		 $ 68,475
51,912		 b.
b.		 $ -
-		 $ -
-		 $ -
-		 $ -
-		 $ (7,174)
(9,189)		 100.00
100.00		 $ (7,174)
(9,189)		 $ (2,113)
42,825		 $ -
-		 2, b.
2, b.
Accumulated Investment in Mainland China
as of December 31, 2020
Accum
In		 ulated Outward Remittance fo
vestment from Taiwan as of
December 31, 2020		 r Inves
Inve		 tment Amounts Authorized by
stment Commission, MOEA		 Upper Limit o
Stipulated by In		 n the Amount of Investment
vestment Commission, MOEA
Yulon Motor Company Ltd. $33,868,281 $35,674,593 $38,925,192

  • Note 1: Method of investment have following type:

  • a. Direct investment in Mainland China.

  • b. Indirect investment in the Company of Mainland China through a third place.

  • c. Other

  • Note 2: a. If it is in preparation, there is no investment gains and losses, should be noted.

  • b. The amounts of investment gain (loss) was recognized on following bases:

    • 1) Based on the financial statements audited by a ROC CPA firm cooperating with an international CPA firm

    • 2) Based on the financial statements audited by the auditor of parent company.

    • 3) Other

Note 3: The upper limit on investment was calculated in accordance with the regulations of the Investment Commission of the Ministry of Economic Affairs for 60% of the net equity or consolidated net equity.

(Concluded)

TABLE 11

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

BUSINESS RELATIONSHIP AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
0 The Company Luxgen
Luxgen
YFC
Yu Ching
Yulon Construction
Yu Sing
Haitec
Luxgen
Luxgen Taipei
Luxgen
Yushin
Yu Sing
Yu Chang
Empower
Yushin
Yu Sing
Yu Chang
Empower
YFC
The Company
Yushin
Yu Sing
Yu Chang
Empower
Singan
Yushin
Yu Sing
Yu Chang
Empower
The Company
The Company
The Company		 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Unrealized gain on transactions with associates
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Long term investment
Unrealized gain on transactions with associates
Unrealized gain on transactions with associates		 $ 59,931
87,522
14,836
13,389
65,404
17,302
71,195
3,785,338
16,098
19,224
1,940,921
2,919,978
3,251,083
2,321,610
25,729
56,862
86,821
28,504
66,739
40,617
205,468
260,152
295,364
261,040
55,524
13,389
18,061
33,971
17,565
15,381
15,381
13,610		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
5
-
-
2
4
4
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 YFC Yu Chang
Yu Sing
Luxgen Taipei
Shinshin
Yu Rich		 3
3
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties		 11,203
13,448
29,652
23,276
16,975		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
1 YFC Yu Chang
Empower
Yu Rich
Hsiang Shuo
Luxgen
Sin Jang		 3
3
3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 $ 14,927
11,182
14,970
16,438
12,233
56,968		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
2 Yue Sheng The Company
The Company
Singgual		 2
2
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 37,916
185,464
10,728		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
3 Yueki The Company
Hangchow Yue Wan
Hangchow Yue Wan
The Company
Shinshin
Luxgen		 2
3
3
2
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net		 86,182
131,616
58,162
414,402
22,588
49,841		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
1
-
-
4 Yu Chang YFC
Tian Wang
Car-plus Corporation		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 29,383
32,982
43,108		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
5 Singan The Company
The Company
YFC
Hsiang Shuo
Sin Jang		 2
2
3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 39,541
104,528
12,804
13,508
13,913		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
6 Singgual The Company
Luxgen
Singan
Ching-Tong
The Company
Luxgen
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung		 2
3
3
3
2
3
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 22,460
17,743
20,135
10,057
114,982
16,461
18,108
10,954
12,947		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
-
-
7 Yu Pool Yushin
Yushin		 3
3		 Notes and trade receivables, net
Operating revenue, net		 18,571
91,453		 Based on regular terms
Based on regular terms		 -
-
8 Yu Sing Kuen You Trading
Car-plus Corporation
Kuen You Trading
Luxgen Taipei
Kuen You Trading		 3
3
3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 15,458
252,352
18,553
12,446
29,052		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
9 Y-Teks The Company
The Company
Yueki		 2
2
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 $ 49,366
229,361
10,129		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
10 Union & NKH Auto Parts The Company
Diamond Leasing
Uni Investment
Fuzhou Lianghong
Hangchow Liangrun
The Company		 2
3
3
3
3
2		 Notes and trade receivables, net
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Operating revenue, net		 181,595
21,804
21,603
17,350
201,389
782,241		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
1
11 Car-plus Corporation Diamond Leasing
Yu Sing
Hsiang Shuo		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 81,341
16,098
27,380		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
12 Nanjing Hanhong Nan Jing Yu Shang 3 Operating revenue, net 12,824 Based on regular terms -
13 Luxgen YFC
The Company
YFC
Luxgen Taipei
Luxgen Taoyuan
Luxgen Taichung
Luxgen Kaohsiung
The Company
YFC		 3
2
3
3
3
3
3
2
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense
Nonoperating revenue and expense		 40,472
21,655
3,437,799
213,020
143,207
130,642
77,992
32,855
16,000		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
4
-
-
-
-
-
-
14 Luxgen Taipei Luxgen
Car-plus Corporation
Luxgen		 3
3
3		 Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 19,927
98,035
41,310		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
15 Luxgen Taoyuan Car-plus Corporation
Luxgen		 3
3		 Operating revenue, net
Operating revenue, net		 19,506
19,535		 Based on regular terms
Based on regular terms		 -
-
18 Yulon Motor Investment Hang Zhou Hua You
Hang Zhou Haitec Company
Sheng Qing		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Nonoperating revenue and expense		 97,612
236,916
48,853		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
20 TAC Finance Company Master Good Car (Wuhan) Automobile Sales Co.,
Ltd.		 3 Notes and trade receivables, net 28,063 Based on regular terms -
22 LUXGEN (Hangzhou)
Motor Sales		 Car-Plus Go Co., Ltd.
Luxgen		 3
3		 Notes and trade receivables, net
Other receivables from related parties		 31,045
34,078		 Based on regular terms
Based on regular terms		 -
-
23 Kuen You Trading Yu Sing
Yu Sing		 3
3		 Notes and trade receivables, net
Operating revenue, net		 13,469
145,586		 Based on regular terms
Based on regular terms		 -
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
24 Chuang Jie The Company
Hang Zhou Haitec Company
The Company
Hang Zhou Haitec Company		 2
3
2
3		 Notes and trade receivables, net
Notes and trade receivables, net
Operating revenue, net
Operating revenue, net		 $ 21,194
100,908
37,765
189,751		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
25 Yu-Hsin Intl Yu-Hsin Intl HK 3 Other receivables from related parties 113,920 Based on regular terms -
26 Yulon China Wen Yang
Sheng Qing		 3
3		 Other receivables from related parties
Nonoperating revenue and expense		 603,075
20,061		 Based on regular terms
Based on regular terms		 -
-
27 Yue Ki Samoa Yue Ki HK 3 Other receivables from related parties 14,241 Based on regular terms -
29 Ke Yu Tai Feng
Yi Ding
Sheng Qing		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 207,206
21,824
213,002		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
30 Tai Feng Yi Ding
Dong Tai		 3
3		 Other receivables from related parties
Other receivables from related parties		 13,094
21,824		 Based on regular terms
Based on regular terms		 -
-
31 Qing Tai Shi Cheng
Dong Tai		 3
3		 Other receivables from related parties
Other receivables from related parties		 17,459
109,120		 Based on regular terms
Based on regular terms		 -
-
32 Mei De Shi Cheng 3 Other receivables from related parties 130,944 Based on regular terms -
33 Jin Ce Yi Ding 3 Other receivables from related parties 17,459 Based on regular terms -
34 Sheng Qing Xiamen Young Chang
Su Zhou Feng Shen
Guang Zhou Yuan Du
Zhu Hai Fu Te En
Nanjing Hanhong
Wuhan Yu Hsin
Jiangmen Junxing
Qingdao Yuanhuang
Hang Zhou Hua Zhi
Xiao Gan Yu Feng
Yulon Motor Investment
Nan Jing Yu Hua
Ka Shing Yu Da
Yu-Jie
Hang Zhou Haitec Company
Yulon China
Yulon Motor Investment		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Nonoperating revenue and expense
Nonoperating revenue and expense		 167,789
52,378
26,618
69,837
142,710
73,329
43,873
90,774
47,821
52,146
893,731
53,797
15,755
174,742
100,880
24,183
45,555		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
35 Su Zhou Feng Shen Su Zhou Feng Shun
Su Chou Cheng Pin
Su Zhou Cheng Hung
Su Zhou Cheng Guo
Tai Chang Cheng Mau
Su Zhou Cheng Pang		 3
3
3
3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 $ 39,283
24,006
17,459
21,824
39,283
15,277		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
36 Guang Zhou Yuan Du Qingdao Yuanhuang
Guang Zhou Yuan Zhi		 3
3		 Other receivables from related parties
Other receivables from related parties		 59,798
12,951		 Based on regular terms
Based on regular terms		 -
-
38 HangZhou Yu Zhong Hang Zhou hsiao Yu
Hang Zhou Hua You
Yulon Motor Investment		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Other receivables from related parties		 17,459
17,896
11,785		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
39 Hang Zhou Tang Yu Yulon Motor Investment 3 Other receivables from related parties 38,410 Based on regular terms -
40 Wu Jiang Lian Cheng Su Zhou Feng Shen
Su Zhou Feng Shun
Su Zhou Chen Long
Su Chou Cheng Pin
Su Zhou Cheng Pang
Su Zhou Cheng Guo
Tai Chang Cheng Mau		 3
3
3
3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 40,117
24,613
24,155
11,048
48,250
27,210
10,946		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
-
41 Hsiang Shuo Singan
YFC
Car-plus Corporation
Luxgen		 3
3
3
3		 Other receivables from related parties
Operating revenue, net
Operating revenue, net
Operating revenue, net		 90,604
15,752
17,672
15,505		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
42 Yu-Hsin Intl HK Hangchow Y-Teks 3 Other receivables from related parties 113,920 Based on regular terms -
43 Sin Jang Singan
YFC		 3
3		 Other receivables from related parties
Operating revenue, net		 211,405
66,633		 Based on regular terms
Based on regular terms		 -
-
46 Su Zhou Chen Long Su Zhou Cheng Guo
Tai Chang Cheng Mau
Suzhou Yueshun		 3
3
3		 Other receivables from related parties
Other receivables from related parties
Operating revenue, net		 21,824
24,006
11,731		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
48 Nan Jing Yu Hua Nanjing Hanhong 3 Other receivables from related parties 118,382 Based on regular terms -
49 Yulon Construction The Company
The Company
Yufong Property Management
The Company		 2
2
3
2		 Guarantee deposits
Operating revenue, net
Operating revenue, net
Nonoperating revenue and expense		 40,180
32,037
11,153
12,783		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
50 Luxgen Taichung YFC
Car-plus Corporation		 3
3		 Other current assets
Operating revenue, net		 15,590
24,660		 Based on regular terms
Based on regular terms		 -
-

(Continued)

Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
52 Yu Pong The Company 2 Operating revenue, net $ 20,571 Based on regular terms -
53 Yushin Car-plus Corporation
Yu Pool		 3
3		 Operating revenue, net
Nonoperating revenue and expense		 18,187
14,908		 Based on regular terms
Based on regular terms		 -
-
54 Empower Yu Chang
Car-plus Corporation
Luxgen Taichung
Minxiang Leasing Company		 3
3
3
3		 Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 16,250
17,126
10,338
20,190		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
55 Tian Wang Yu Chang 3 Operating revenue, net 107,008 Based on regular terms -
57 H. K. Manpower Car-plus Corporation 3 Operating revenue, net 22,351 Based on regular terms -
59 Luxgen Kaohsiung Car-plus Corporation
Luxgen		 3
3		 Operating revenue, net
Operating revenue, net		 19,300
12,879		 Based on regular terms
Based on regular terms		 -
-
60 Hangchow Liangrun Fuzhou Lianghong
Fuzhou Lianghong
Union & NKH Auto Parts
Fuzhou Lianghong		 3
3
3
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net
Operating revenue, net		 31,576
22,138
14,315
17,026		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
61 Yufong Property
Management		 The Company 2 Operating revenue, net 15,800 Based on regular terms -
62 Hangchow Y-Teks Y-Teks
Hang Zhou Haitec Company		 3
3		 Operating revenue, net
Operating revenue, net		 15,941
16,046		 Based on regular terms
Based on regular terms		 -
-
63 Car-Plus (Suzhou) Car-Plus Go Co., Ltd.
TAC Leasing (Suzhou)		 3
3		 Notes and trade receivables, net
Operating revenue, net		 10,144
12,208		 Based on regular terms
Based on regular terms		 -
-
65 Suzhou Yueshun Su Chou Cheng Pin 3 Other receivables from related parties 24,006 Based on regular terms -
66 Hong Yen Empower
Shanghai Yuming		 3
3		 Other receivables from related parties
Other current assets		 23,716
11,130		 Based on regular terms
Based on regular terms		 -
-
67 Shinshin Yulon Energy
Yulon Energy
Yulon Energy		 3
3
3		 Notes and trade receivables, net
Other receivables from related parties
Operating revenue, net		 264,219
206,915
16,172		 Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
68 Fuzhou Lianghong Hangchow Liangrun
Hangchow Liangrun		 3
3		 Notes and trade receivables, net
Operating revenue, net		 18,983
12,344		 Based on regular terms
Based on regular terms		 -
-
69 Su Zhou Feng Shun Su Zhou Cheng Li 3 Operating revenue, net 19,102 Based on regular terms -
75 Yu Rich YFC 3 Operating revenue, net 14,970 Based on regular terms -
77 Yulon Energy Shinshin
Shinshin		 3
3		 Notes and trade receivables, net
Operating revenue, net		 31,744
46,501		 Based on regular terms
Based on regular terms		 -
-
Number Company Name Counterparty Relationship
(Note)		 Transaction Details Transaction Details % to Total
Revenue or
Assets
Financial Statement Account Amount Transaction Terms
79 Haitec Luxgen
Luxgen		 3
3		 Notes and trade receivables, net
Operating revenue, net		 $ 59,642
567,134		 Based on regular terms
Based on regular terms		 -
1
80 Hang Zhou Haitec Company The Company
Haitec
The Company
Haitec
Luxgen
Chuang Jie		 2
3
2
3
3
3		 Notes and trade receivables, net
Notes and trade receivables, net
Operating revenue, net
Operating revenue, net
Operating revenue, net
Operating revenue, net		 47,628
30,470
396,994
113,816
315,493
27,547		 Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms
Based on regular terms		 -
-
-
-
-
-
82 Hang Zhou hsiao Yu Hang Zhou Haitec Company 3 Other receivables from related parties 56,602 Based on regular terms -
83 Jiangmen Junxing Jiangmen Yuli 3 Other receivables from related parties 39,432 Based on regular terms -
85 Fu Jian Yu Xin Fu Zhou Yu Xin 3 Other receivables from related parties 21,875 Based on regular terms -
91 Yulon China (HK)
Investment		 Haitec 3 Nonoperating revenue and expense 13,945 Based on regular terms -
92 Advance Power Machinery The Company
The Company		 2
2		 Notes and trade receivables, net
Operating revenue, net		 11,317
31,369		 Based on regular terms
Based on regular terms		 -
-
93 Zhe Jiang Cheng Yi
Company		 Yulon Motor Finance (China) 3 Operating revenue, net 13,598 Based on regular terms -

Note 1: From the parent company to a subsidiary.

Note 2: From a subsidiary to the parent company.

Note 3: Between subsidiaries.

(Concluded)

Financial Information

TABLE 12

YULON MOTOR COMPANY LTD. AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2020

Name of Major Shareholder Shares Shares
Number of
Shares		 Percentage of
Ownership (%)
Tai-Yuen Textiles
China Motor
Yen Kai-Tai		 181,128,973
166,714,441
101,801,954		 18.11
16.67
10.18

354 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

  • VI. If the Company or its affiliates have experienced financial difficulties from the most recent year up to the date of publication of the annual report, the effects on the Company’s financial status: Not applicable.

Annual Report 2020 355

The review and analysis of financial position and financial performance, and the risk matters

VII.The review and analysis of financial position and financial performance, and the risk matters

I. Financial status

Comparative Analysis of Consolidated Financial Status

Unit: Thousands of NTD

Year Difference Difference
Items 2020 2019 Amount ％
Current assets 215,186,668 231,944,241 (16,757,573)
(7.22%)
Non-Current assets 86,136,078 81,947,302 4,188,776
5.11%
Totalassets 301,322,746 313,891,543 (12,568,797)
(4.00%)
Currentliabilities 201,009,483 230,603,249 (29,593,766)
(12.83%)
Non-current liabilities 35,437,943 26,207,143 9,230,800
35.22%
Total liabilities 236,447,426 256,810,392 (20,362,966)
(7.93%)
Capitalstock 10,000,000 15,729,199 (5,729,199)
(36.42%)
Capitalsurplus 6,563,888 6,566,495 (2,607)
(0.04%)
Retained earnings 32,147,077 23,775,185 8,371,892
35.21%
Total shareholders’
64,875,320 57,081,151 7,794,169
13.65%
equity
Analysis of the change in the increase or decrease percentage: (The main reasons for the significant changes and their

effects, and if the effects are significant, the future response plan should be stated. )
1. The decrease in current liabilities was mainly due to the decrease in short-term borrowings.

2. The increase in non-current liabilities was mainly due to the increase in long-term borrowings.
3. The decrease in capital stock was mainlydue to the capital reduction to cover losses.

Analysis of the change in the increase or decrease percentage: (The main reasons for the significant changes and their effects, and if the effects are significant, the future response plan should be stated. )

Comparative Analysis of Standalone Financial Status

Unit: Thousands of NTD

Year Difference Difference
Items 2020 2019 Amount ％
Current assets 13,430,414 27,778,211 (14,347,797)
(51.65%)
Non-Current assets 65,762,614 52,141,138 13,621,476
26.12%
Total assets 79,193,028 79,919,349 (726,321)
(0.91%)
Currentliabilities 9,951,525 6,082,477 3,869,048
63.61%
Non-currentliabilities 20,503,035 28,000,464 (7,497,429)
(26.78%)
Total liabilities 30,454,560 34,082,941 (3,628,381)
(10.65%)
Capitalstock 10,000,000 15,729,199 (5,729,199)
(36.42%)
Capitalsurplus 6,563,888 6,566,495 (2,607)
(0.04%)
Retained earnings 32,147,077 23,775,185 8,371,892
35.21%
Total shareholders’
48,738,468 45,836,408 2,902,060
6.33%
equity
Analysis of the change in the increase or decrease percentage: (The main reasons for the significant changes and their
effects, and if the effects are significant, the future response plan should be stated. )

1. The decrease in current assets was mainly due to the decrease in cash and cash equivalents and fund investments as
a result of the capital increase in investees.

2. The increase in non-current assets was mainly due to the recognition of gain on investees and the increase in
investment properties.

3. The increase in current liabilities was mainly due to the increase in short-term borrowings.
4. The decrease in non-current liabilities was mainly due to the decrease in the loss of the investees in 2020, which

resulted in the decrease in the Company's investment credit balance using the equity method.
5. The decrease in capital stock was mainlydue to the capital reduction to cover losses.

Analysis of the change in the increase or decrease percentage: (The main reasons for the significant changes and their effects, and if the effects are significant, the future response plan should be stated. )

  1. The decrease in current assets was mainly due to the decrease in cash and cash equivalents and fund investments as a result of the capital increase in investees.

  2. The increase in non-current assets was mainly due to the recognition of gain on investees and the increase in investment properties.

  3. The decrease in non-current liabilities was mainly due to the decrease in the loss of the investees in 2020, which resulted in the decrease in the Company's investment credit balance using the equity method.

356 YULON MOTOR

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II. Financial Performance Analysis

Comparative Analysis of Consolidated Financial Performance

Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance Comparative Analysis of Consolidated Financial Performance
Unit: Thousands of NTD
Year 2020 2019 Increase Variation (%)
Items Subtotal Total Subtotal Total (decrease)
amount
Operatingrevenues 82,597,514 85,578,910 (2,981,396)
(3.48%)
Operating costs 63,979,927 79,858,001 (15,878,074)
(19.88%)
Gross profits 18,617,587 5,720,909 12,896,678 225.43%
Realized (unrealized) profits or losses on
12,018 4,364 7,654
175.39%
sales
Net operatingmargin 18,629,605 5,725,273 12,904,332
225.39%
Operating expenses 19,848,067 36,472,812 (16,624,745)
(45.58%)
Netoperating profits (losses) (1,218,462) (30,747,539) 29,529,077 96.04%
Non-operatingincome and expenses 6,942,010 7,310,391 (368,381)
(5.04%)
Other income 1,308,504 1,866,231 (557,727)
(29.89%)
Otherprofitsandlosses 2,423,204 266,775 2,156,429 808.33%
Financialcosts (821,441) (1,122,664) 301,223
26.83%
Shareholding in the affiliated

companies and joint ventures under		 4,031,743 6,300,049 (2,268,306)
(36.00%)
the equitymethod
Profit beforeincome tax 5,723,548 (23,437,148) 29,160,696
124.42%
Income taxexpense 883,986 1,096,329 (212,343)
(19.37%)
continuing operations 4,839,562 (24,533,477) 29,373,039 119.73%
Othercomprehensive profit andloss (net) 240,989 (304,732) 545,721
179.08%
Titles not reclassified as profit and loss
accounts:
Reevaluation of determined benefit
(7,250) (98,701) 91,451
92.65%
plan
Unrealized valuation gains or losses
on investments in equity instruments
7,373 197,175 (189,802)
(96.26%)
measured at fair value through other
comprehensiveincome
The share of other comprehensive
income of affiliates and joint
70,111 106,811 (36,700)
(34.36%)
ventures recognized in equity
method
Accounts to be reclassified to profit or
loss subsequently:
Exchange differences on the

translation of financial statements of		 163,749 (242,559) 406,308
167.51%
foreignoperations
Profit or loss on hedging instruments
notsubject to basisadjustment
61		 (451) 512
113.53%
The share of other comprehensive
income of affiliates and joint
6,945 (267,007) 273,952
102.60%
ventures recognized in equity
method
Total comprehensive income for the
period		 5,080,551 (24,838,209) 29,918,760
120.45%

Analysis of the change in the increase or decrease percentage:

  1. The decrease in operating costs was mainly due to the impairment of vehicle models and tooling in 2019.

  2. The decrease in operating expenses was mainly due to the provision of expected credit impairment loss in 2019.

  3. The increase in other gains and losses was mainly due to the gain on disposal of subsidiary, Dong Feng Yulon Motor Sales Limited in 2020.

  4. The decrease in finance costs was mainly due to the decrease in interest on bank loans in 2020.

  5. The decrease in the shares of affiliates and joint ventures recognized under the equity method was mainly due to the decrease in investment income under the equity method in 2020.

  6. The increase in the remeasurement of defined benefit plans is mainly due to the adjustment of actuarial reporting through experience.

  7. The decrease in the share of other comprehensive income of affiliates and joint ventures recognized under the equity method was mainly due to the unrealized loss on the fair value of the investment in equity instruments through other comprehensive income of subsidiaries in 2020.

Annual Report 2020 357

The review and analysis of financial position and financial performance, and the risk matters

Comparative Analysis of Standalone Financial Performance

Unit: Thousands of NTD Unit: Thousands of NTD Unit: Thousands of NTD Unit: Thousands of NTD
Increase Variation
Year
 2020 2019
(decrease) (%)
Items Subtotal Total Subtotal Total
amount
Operatingrevenues 28,271,894 30,261,929
(1,990,035)		 -6.58%
Operatingcosts 25,987,175 27,625,290
(1,638,115)		 -5.93%
Grossprofits 2,284,719 2,636,639
(351,920)		 -13.35%
Realized (unrealized) profits or losses on
41,655 695
40,960
5893.53%

sales
Net operatingmargin 2,326,374 2,637,334
(310,960)		 -11.79%
Operatingexpenses 1,313,118 1,589,446
(276,328)		 -17.39%
Net operating profits(losses) 1,013,256 1,047,888
(34,632)		 -3.30%
Non-operatingincome and expenses 1,625,139 (26,084,898) 27,710,037
106.23%
Other income 60,249 64,760 (4,511) -6.97%
Otherprofits and losses (560,798) 494,501 (1,055,299) -213.41%
Financialcosts (215,326) (216,931) 1,605
0.74%
Shareholdings in the subsidiaries,
affiliated companies and joint 2,236,307 (26,534,175) 28,770,482
108.43%
ventures underthe equitymethod
Interest revenue 104,707 106,947 (2,240) -2.09%
Profit before income tax 2,638,395 (25,037,010) 27,675,405
110.54%
Income tax expense (100,815) (6,890) (93,925) -1363.21%
continuing operations 2,739,210 (25,030,120) 27,769,330
110.94%
Other comprehensive profit and loss (net) 210,291 (138,566) 348,857
251.76%

Exchange differences on the
translation of financial statements of 0 0
0.00%
foreignoperations
Unrealized valuation gains or losses
on investments in equity instruments
6,552 285,487 (278,935)
-97.70%
measured at fair value through other
comprehensiveincome
Reevaluation of determined benefit
6,208 (91,351) 97,559
106.80%
plan
The share of other comprehensive
income of subsidiaries, affiliates and
197,531 (332,702) 530,233
159.37%
joint ventures recognized in equity
method
Total comprehensive income for the
2,949,501 (25,168,686)
28,118,187
111.72%

period

Analysis of the change in the increase or decrease percentage:

  1. The increase in unrealized gain or loss on sales was mainly due to the increase in dealership inventory as a result of consumers placing orders that could not be registered.

  2. The decrease in other gains and losses was mainly due to the impairment of assets. .

  3. The increase in the share of profits and losses of affiliated companies and joint ventures recognized under the equity method was mainly due to the impairment of assets recognized by the investees last year.

  4. The decrease in income tax expense was mainly due to the application for tax refund.

  5. The decrease in unrealized valuation gains or losses on investments in equity instruments measured at fair value through other comprehensive income was mainly due to the decrease in the value of the fund's investments after valuation.

  6. The increase in remeasurement of defined benefit plans is mainly due to an increase in the projected employee turnover rate and discount rate.

  7. The increase in the share of other comprehensive income of affiliated companies and joint ventures recognized under the equity method was mainly due to the impairment of assets recognized by the investees last year.

358 YULON MOTOR

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III. Cash flow analysis

(I) Liquidity analysis for the most recent 2 years

Year
2020 2019 Increase (decrease) amount
Items
Cash flowratio 2.07 (10.80) 119.17%
Cash flow adequacyratio (274.67) (251.31) (9.30%)
Cash reinvestment ratio 2.40 (25.13) 109.55%
Analysis of the change in the increase or decrease percentage:
Mainly due to the continued growth of the subsidiary's financing business in 2020. But the increase in notes and accounts
receivable was slower than in 2019. So the net cash flow from operating activities improved and showed a net cash inflow
in 2020 compared to 2019, which led to a significant improvement in the cash flow ratio and cash reinvestment ratio
compared to 2019. In addition, the amount of capital expenditure decreased in 2020 compared to 2019, resulting in a slight
decrease in the cash flow adequacyratio compared to 2019.

Note: The information presented in the table is based on the consolidated financial statements.

(II) Cash liquidity analysis for the coming year

Unit: Thousands of NTD

Cash balance at Estimated net cash flow Estimated cash Estimated cash Remedy for estimated cash shortage Remedy for estimated cash shortage
the beginning of
from operating activities
inflow for the		 balance①＋②＋
Investing plan Financing plan
theperiod① for the wholeyear② wholeyear③ ③
1,602,487 4,865,551 (3,526,870) 2,941,168 - -
Analysis of Changes in Cash Flow Scenarios for 2021:

Operating activities:
The inflow of $4,865,551 thousand was mainly due to the estimated profit for 2021 plus
amortization of depreciation, sale of financial assets at fair value through profit or loss - current,

and financial assets at amortized cost - current.
Investing activities:
The outflow of $1,319,248 thousand was mainly due to the acquisition of fixed assets, the


development of Yulon City, external investments and the receipt of dividends in 2021.
Financing activities:
The outflow of $2,207,622 thousand was mainly due to the repayment of bank loans and cash


dividends in 2021.
Remedyfor estimated cash shortage and liquidityanalysis: Not applicable.

Note: The information presented in the table is based on the standalone financial statements.

Annual Report 2020 359

IV. Material capital expenditures in the latest year and impacts on business performance

(I) Status of major capital expenditures and sources of funds for the most recent year:

Unit: Thousands of NTD

Actual and
 Actual and
 Actual or expected uses of funds Actual or expected uses of funds Actual or expected uses of funds Actual or expected uses of funds Actual or expected uses of funds Actual or expected uses of funds Actual or expected uses of funds
Plans expected expected Total fund
funding completion required 2017 2018 2019 2020 2021 2022 2023
source date
Expansion of
machinery and
equipment		 Self-owned
Capital		 2023.12.31 $602,995 $63,044 $9,784 $152,714 $77,310 $64,535 $107,983 $127,625
Production Self-owned
2023.12.31 $1,505,503 $86,342 $433,705 $188,641 $147,237 $304,937 $239,010 $105,631
equipment Capital
Environmental
protection
equipment		 Self-owned
Capital		 2023.12.31 $45,345 $5,208 $1,806 $2,518 $2,143 $5,240 $13,030 $15,400
Self-owned
IT Equipment 2023.12.31 $88,430 $21,035 $16,689 $3,180 $20,712 $4,173 $10,377 $12,264
Capital
Quality assurance
equipment		 Self-owned
Capital		 2023.12.31 $428,749 $97,515 $30,710 $51,390 $43,443 $32,011 $79,600 $94,080
Construction and Self-owned
2023.12.31 $7,006,787 $1,025,490 $245,679 $595,296 $1,734,528 $3,378,238 $180 $27,376
Maintenance Capital

  • (II) Expected benefits from major capital expenditures in the most recent year

  • Strengthen the multi-brand OEM strategy, and with the introduction of mass production of new models of each brand, through the expansion of machinery and equipment, in order to improve the efficiency and quality of each production line, and further increase the competitiveness of products in the market.

  • Renew and replace old production systems and equipment according to the project schedule of new vehicle models of each brand to achieve the development schedule and quality target of each product.

  • In line with the government's “six phases of emissions“ environmental protection policy, we will increase the use of pollution prevention and control equipment, and at the same time reduce the energy consumed in the production process.

  • In response to system integration and efficiency improvement, we invested in information equipment hardware and software to update production information systems, financial information systems, and management information systems to increase the accuracy of financial and management analysis reports.

  • By updating the quality inspection equipment, we can reduce the defects arising from the production process to ensure the stability of the whole production process.

  • Improve the efficiency of the Company's land resources and consider the development of the overall cityscape, in addition to the construction of residential and commercial complexes, we will also build parks and green areas to beautify the overall environment, further creating a comprehensive business effect and driving the new consumer life circle in the areas surrounding the new factory.

YULON MOTOR CO., LTD

Annual Report 2020

V. Investment policy for 2020, the main reasons for profit or loss, improvement plan and investment plan for the coming year:

In 2020, the Company's private brand value chain continued to be a key development project. In the fourth quarter, we launched the Luxgen URX 7-seater LOHAS model, which is based on the design of the special car environment in Taiwan, and is designed to meet the needs of year-round multi-passenger vehicles and senior mobility services, with the practical functions of “multi-crossover“, “multi-purpose“ and “three-generation sharing“, and equipped with different features only found in luxury imported cars. It is equipped with different features that are only available in luxury imported cars, such as: ARD extended reality head-up display system. We are upgrading our existing products to include more safety technologies and artificial intelligence (AR View+, ADAS, AI, etc.) to enable consumers to experience the convenience and safety of technology. We will continue to expand our investment in the electric vehicle industry by participating in government-initiated energy saving projects, cooperating with government policies to build battery charging stations, and expanding our business projects into the solar power generation and financing industries. In terms of real estate development, the development project of Xindian Yulon City is expected to obtain the license in the fourth quarter of 2021 and officially open in the fourth quarter of 2022.

In terms of overseas investments, (1) UMPI in the Philippines transformed into an asset management company, revitalizing vacant plants and providing stable cash flow. (2) Auto Finance in China was affected by the decline in sales of the Group's brand companies, but it is growing steadily after actively exploring the financing of used cars.

Looking ahead to 2021’s investment plan, the focus will continue to be on strengthening the competitiveness of existing vehicle platforms. Through the joint venture, Foxtron Vehicle Technologies, which the Company established with Hon Hai, we promote the new business model of MIH open platform and sharing in the global automobile industry, combining the complementary advantages of both companies in vehicle research and development and ICT industry resources to develop more competitive new vehicle platform, aim at lowering the cost of future vehicles with the new platform, and provide consumers with a higher CP value vehicle choice to create long-term brand value and increase market share. In response to global climate change, the use of renewable energy in the industry is growing significantly, and the demand for energy storage equipment is increasing along with the trend of electricity liberalization, the Company has integrated the accumulated resources of new energy vehicle research and development, assembly technology, and common use to build a new production line of energy storage products and strive for business opportunities in the energy storage market and develop solar power business. Lastly, we expect to continue to generate profits to meet the expectations of our shareholders, while taking into account the principles of revenue generation and cost reduction.

Annual Report 2020 361

The review and analysis of financial position and financial performance, and the risk matters

IV. Risk management and assessment

  • (I) Organizational structure of risk management

The execution and the units of authority and responsibility for risk management of the Company are as follows.

Units of
authority and Content of execution
responsibility
Audit office Based on the risk assessment results, incorporate main audit items in the annual audit plan, and audit the
internal control system, and disclose the audit results in the audit report, and deliver it or notify each
supervisor in accordance with theregulations,andfollow upfor improvement.
1. Manage the company's business strategy, objectives and operational plans, manage working capital and
provide financial analysis, handle accounting, stock affairs, taxation and human resources management,
Finance
provide management with fast and effective operational management information, and reduce corporate
planning risks through strict control and regular updates on technological changes, industry trends, and important
department domestic and international policies and laws.
2. Supervise each unit and subsidiary to include revenue and profit in the annual KPI and track the
achievementinorderto avoid theriskofoperationalperformance.
Safety and
health office		 Regularly perform labor environmental inspection and monitoring. Conduct industrial safety and health
related business in accordance with the company's regulations, prevent occupational disasters, and guide
relevant units toimplementrelated plans toreduce work relatedrisksforemployees
1. Coordination, planning and control of integrated production planning; management of D&C evaluation
Production
of new vehicle series and suppliers; planning and control of parts and materials requirements; control and
management follow-up of outsourced parts delivery to reduce the risk of material failure by suppliers
and 2. Supply productivity and storage cost control; planning and control of parts and material supply; planning
coordination and establishment of logistics supply application system; assistance and support of material supply
department activities in overseas production sites; support of brand sales service parts storage and distribution to
reducetheriskof material failureinproduction lines.
Planning and promotion of company-wide quality assurance strategy and quality assurance system;
Quality
promotion and monitoring of product inspection and intelligence system; promotion of quality awareness
inspection
and improvement activities. In addition, also manage the quality of automobile parts and components
department
produced bysuppliers to reduce the risk of assembled vehicles.

  • (II) The impact of changes in interest rates, exchange rates and inflation on the Company's profit and loss from 2020 up to the publication date of the annual report, and future countermeasures.

  • The impact of changes in interest rates on the Company's profit or loss and countermeasures.

    • The Company manages and maintains a sufficient portion of cash and cash equivalents to support the Group's operations by monitoring the availability and utilization of bank facilities and ensuring compliance with the terms of borrowing contracts. The interest rate risk arising is managed by maintaining an appropriate mix of fixed and floating interest rates and by using interest rate swap contracts and forward interest rate contracts. The impact of changes in interest rates on profit or loss is limited, as the current cash position is still considered sufficient. Based on the analysis of the consolidated financial statements for 2020, if interest rates increase by 1%, with all other variables held constant, the Company's net profits before tax for 2020 will decrease by $433,491 thousand.

  • The impact of changes in exchange rates on the Company's profit or loss and countermeasures.

    • The Company's material costs are affected by the double cross-exchange rates of USD, RMB, JPY and NTD. The impact on profit or loss is not fixed, but depends on a combination of (1) the correctness of foreign currency hedging operations, (2) the level of imports, (3) the size of inventory, (4) the appreciation or depreciation of NTD, and (5) other factors. The Company has established a foreign exchange hedging operation group to be responsible for foreign exchange hedging operations in order to reduce the risk of exchange rate changes. We have an exchange rate risk sharing measure with Nissan Motor Co., Ltd., a major material supplier, to ensure stable and reasonable material supply prices. In addition, we set annual targets for domestic procurement of parts in order to reduce foreign exchange requirements and material prices. Based on the analysis of the consolidated financial statements for 2020, if the exchange rate of NTD had appreciated by 1%, the Company's net profits before tax would have decreased by $583 thousand for 2020 with all other variables held constant.

  • The impact of inflation on the Company's profit or loss and countermeasures. According to the data released by the Directorate-General of Budget, Accounting and Statistics, Executive Yuan, the average total consumer price index for 2020 was 102.31, down 0.23% from the average of

362 YULON MOTOR

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102.55 for 2019. The total consumer price index increased to 102.99 in March 2021 from 102.71 in December 2020, a increase of 0.27%, and the average of 103.23 in January-March increased by 0.82% compared to 102.39 in the same period of 2020. Inflation showed a slight increase in 2021, which is still within an acceptable range. Therefore, the impact of inflation on the Company is not expected to be material.

  • (III) Policies on high-risk, high-leverage investments, lending funds to others, endorsement and guarantee, and derivatives transactions from 2020 up to the publication date of the annual report , main reasons for gain or loss, and future countermeasures:

  • Engagement in high-risk and high-leverage investments

The Company has never engaged in high-risk and high-leverage investments

  1. Engagement in lending funds to others, and endorsement and guarantee

  2. All handled in accordance with the policies set forth in the Company's “Operating Procedures for Lending Funds to Others“ and “Management Measures for Endorsements and Guarantees“. The relevant rules are disclosed on the Company's official website.

  3. Engagement in derivative transactions

The derivative transactions entered into by the Company include forward exchange contracts, foreign exchange options and interest rate swaps to manage the Consolidated Company's interest rate and exchange rate risks, which are handled in accordance with the policies set forth in the “Procedures for Handling Derivative Transactions“. Derivatives are initially recognized at fair value upon entering into derivative contracts and subsequently remeasured at fair value at the balance sheet date, with gains or losses arising from subsequent measurements recognized directly in profit or loss.

  • (IV) Future and projected research and development plans, current progress of uncompleted research and development projects, additional research and development costs, projected time for completion of mass production, and major factors affecting the success of future research and development.

The Company is committed to transforming and upgrading from manufacturing to manufacturing service industry, and will move towards multi-brand OEM operation, expecting to create new profit model with new business model and service model to provide more value to consumers while creating greater benefits for the enterprise.

  • (V) The impact of important domestic and foreign policy and legal changes on the Company's finance and business from 2020 up to the publication date of the annual report and countermeasures

The Company has been paying close attention to the laws and policies affecting its business and operations. Currently, there are no significant domestic or foreign policy and legal changes that have a material impact on the Company's finance or business.

  • (VI) The impact of important changes in technology or industry on the Company's finance and business from 2020 up to the publication date of the annual report and countermeasures

The Company has established relevant internal operation regulations in accordance with Article 9, “Computerized Information System Processing,“ of the “Regulations Governing Establishment of Internal Control Systems by Public Companies“ in order to reduce the risk of unknown information security threats arising from emerging information technology applications and environmental changes. In order to manage information security risk, we respond to and prevent the occurrence of risk events from three aspects: (1) before the occurrence: regular independent inventory inspection, from the process and technical aspects, proactive prevention of information security incidents; (2) when the event occurs: damage control emergency response; (3) after the occurrence: tracking and included in the prevention.

In order to strengthen overall information security, the company will carry out a number of information security enhancement projects, including “hack prevention for internal and external transmission networks“, “employee information security awareness enhancement“, “malicious website prevention and control“, “remote work connection protection“, “system vulnerability improvement and enhancement“, “data leakage protection (DLP)“, “cross-company off-site server room enhancement“, and “IT infrastructure enhancement“. In addition, we have planned the blueprint of “Information Security Risk Management Measures“ from 2021 to 2023 to steadily promote the overall information security strategy in the medium to long term and continuously optimize it, including infrastructure information construction, smart manufacturing protection, and information security training. In response to the transformation of Yulon Group, under the scenario of “full openness, multiple customers, and shared resources“, we will focus on “confidentiality risk“ information security enhancement as the main axle, and upgrade the information security level to be in line with the technology/international industry, to gain the trust of customers and prevent the leakage of sensitive information. The report on the current status and future planning of information security management shall be presented to the Board of Directors by the responsible unit at least once a year to implement information

Annual Report 2020 363

The review and analysis of financial position and financial performance, and the risk matters

security risk management.

Due to open platform and multi-product development strategy, the Company has set targets toward intellectual property management, including re-inventorying and examining our intellectual property achievement, grouping technics for future business development. The Company has simultaneously strengthened the intellectual property protection and managerial mechanism for diversified customers, raised awareness of protection of intellectual property in staff, and prohibited intellectual property risk and safeguard the Company’s intellectual property. Those measures are our primary optimization jobs year by year.

The Company has completed the formulation of relevant intellectual property management measures and operating specifications since 2012, and has regularly reported intellectual property related matters to the Board of Directors at least once per year since 2018. As of the publication date of this annual report, the Company: (1) has obtained 161 pieces of registered trademarks and 4 pieces of approved patents. (2) held 7 series of courses in intellectual property, strengthening the significance of Intellectual property rights in staff.

  • (VII) The impact of change in corporate image on corporate crisis management from 2020 up to the publication date of the annual report and countermeasures

To enhance corporate governance, the Company has appointed independent directors and set up an audit committee and a remuneration committee that regularly open meetings. In addition, the Company complies with the governmental requirements by timely making announcements and disclosing significant information, and continues to pay attention to social responsibility issues so as to establish better corporate reputation. In order to effectively control the quality of communication with the media and prevent negative corporate image due to improper crisis reaction, the Company has implemented a spokesperson mechanism. We also have a dedicated unit to handle customer feedback and shareholder suggestions, ensuring our reputation and image effectively maintained.

In response to the COVID-19 pandemic, the Company followed up the BCP contingency plans to build up a epidemic team for crisis management and emergency responses. The epidemic team is responsible for handling current situation of various emergencies, judging the crisis situation, issuing decisions, making internal or public announcements, and identifying the risks and recovery time of key business activities and operations to meet the needs of brand customers and implement action plans. The action plans includes satisfying the continuous operation of the production line with the personnel availability, ensuring the availability of overseas (mainland) imported parts complied with quantity and timing requirements, monitoring production and sales estimates, cash flows, and precautionary measures such as district offices and working from home.

  • (VIII) Expected benefits and possible risks of mergers and acquisitions from 2020 up to the publication date of the annual report and countermeasures: None.

  • (IX) Expected benefits and possible risks of plant expansion from 2020 up to the publication date of the annual report and countermeasures:

  • The current equipment capacity is still sufficient to supply the market demand, but the benefits and risks will be evaluated if there is a need for future capacity expansion.

  • (X) Risks of concentrations of purchases or sales from 2020 up to the publication date of the annual report and countermeasures:

The Company's purchases are mainly from Nissan Japan and domestic and foreign collaborative suppliers. Due to our cooperative relationship and long-term supply contracts, the supply of raw material of the Company is stable and there is no risk of concentration of purchases.

Besides the Nissan brand continues growing, our own brand, Luxgen, has gradual growth. The Company continues to take its expertise and strengths in production and manufacturing to serve as an OEM service provider in the domestic market, selling to various brand companies in accordance with contractual requirements. Regarding the overseas market, we believe that continuously expand global OEM business would increase revenue.

  • (XI) The impact on the Company and risks of the massive transfer or change of shares by directors, supervisors or major shareholders with 10% stake or more from 2020 up to the publication date of the annual report and countermeasures: None.

  • (XII) Changes in management rights, significant changes in operating methods or business content, and other significant events that may affect shareholders' equity: None.

  • (XIII) For litigious and non-litigious matters from 2019 up to the publication date of the annual report, please list major litigious, non-litigious or administrative disputes that have been resolved or are still proceeding involving the Company and/or any director, supervisor, the president, any person with actual responsibility for the firm and any major shareholder holding a more than 10% of the

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YULON MOTOR CO., LTD

Annual Report 2020

shares, and the affiliated companies. Moreover,where such a dispute could materially affect shareholders' equity or the prices of the securities, the annual report shall disclose the facts of the dispute, amount of money at stake in the dispute, the date of litigation commencement, the main parties to the dispute, and the status of the dispute as of the publication date of the annual report: None.

(XIV) Other major risks: None.

VII. Other important matters:

The Company's personnel involved in the transparency of financial information obtain the relevant licenses specified by the competent authorities:

Type of license Department No. of People
Passed the Higher Examination for Specialized Occupational
and Technical Personnel (HESPP) 2006 for CPAs.
(License No. (2006)Zhuan-Gao-Kuai-ZiNo. 000850)		 Finance planning department 1
Passed the Higher Examination for Specialized Occupational
and Technical Personnel (HESPP) 2015 for CPAs.
(License No. (2015)Zhuan-Gao-Kuai-ZiNo. 000378)		 Finance planning department 1
Passed the Higher Examination for Specialized Occupational
and Technical Personnel (HESPP) 2013 for CPAs.
(License No.(2013)Zhuan-Gao-Kuai-Zi No. 000381)		 Audit office 1

Annual Report 2020 365

Special Notes

VIII. Special Notes

I. Information on Affiliates

(I) Consolidated business report of affiliates

  1. Organizational Chart of Affiliates

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99.99% (Note 31)(Note 49)20.00% (Note 1)20)Yu Hsin Automobile Co., Ltd. Yushin Motor Co., Ltd. 99.99% Yu Chang Motor Co., Ltd. 64.99%EMPOWER MOTORS CO., LTD. Sin Chi Co., Ltd. 100.00%Luxgen Motor Co., Ltd. 100% (Note KUEN YOU TRADING CO., LTD. 100.00% (Note 39)YU SHIN Investment 100.00%Limited 100.00%Anser motors Inc. 100.00%Yumin Insurance Broker Co., Ltd 100.00%MINXIANG LEASING CO., LTD 100.00%(Note 59)100.00%Tian Wang Co., Ltd. 100.00%Yupu Motor Enterprise Corporation Chi Min Business Co., Ltd. Yu Chia Motor Co., Ltd. 100.00%Yulon TOBE Motor Co., Ltd. 99.99% (Note 2)59.99% (Note 3)97.73% (Note 4)94.18% (Note 5)92.94% (Note 6)Luxgen Taipei Motor Co., Ltd. Luxgen Taoyuan Motor Co., Ltd. Luxgen Taichung Motor Co., Ltd. Luxgen Kaohsiung Motor Co., Ltd. Luxgen Tainan Motor Co., Ltd. Fuzhou Yushin Automobile Technology Co. 100.00% RMB300 million on December 13, 2016, 100% owned by Yuyuen.Note 31: Yu Hsin Automobile and Yuzhan Trading were merged on January 1, 2017, with Yuzhan Trading as the extinguished company and Yu Hsin Automobile as the surviving company. On September 4, 2019, Yu Hsin reduced capital by 380 million and Yulon made up for its losses, then increased China Banking Regulatory Commission for its commencement of business on 2015.12.25. It is incorporated into Yulon Finance’s consolidated Note 28: 100% of Da Wei Technology Co., Ltd held by Car-Plus.Note 29: 60% of Yu Ching held by Yulon Motor, and 40% by Yu Pong (Yulon Motor participated in the capital increase of Yu Ching with 40% of Yu Pong's shares as consideration on November 25, 2016)Note 30: Hangzhou Yujie Real Estate Co., Ltd. has completed the business registration on September 22, 2016 and completed the capital injection of statements, considering the substantial control.Note 26: 100% of Zhejiang Cheng Yi Automobile Technology Service Co., Ltd held by Yu-Kuo Finance LeasingNote 27: 100% of Hangzhou Chengrui Used Car Appraisal Co., Ltd. held by Zhejiang Chengyi since October 27, 2016 (originally held 90%).surviving company. Bluewater and Prosperity were dissolved on 2014.4.15 and the liquidation process was completed on 2015.12.23.Note 19: UMPI has completed the transfer of ownership in 2014.10 and is 100% owned by Yulon Motor.(SAMOA) Co., Ltd. and 20% by Yulon China Holdings.Note 18: Yung Hang, Li Da, and Yuhong were merged on October 31, 2014, with Li Da and Yuhong as the extinguished companies and Yonghan as the Note 20: Taina completed the capital reduction in December 2015 and is 100% owned by Yulon Motor.Note 21: Hokuto Kobe was dissolved in December 2014 and the court liquidation procedure was completed on 2015.9.24.Note 22: 100% of SHIN SHIN Global Investment Co. (Samoa) by SHIN SHIN.Note 23: Taichuang filed for dissolution on 2016.12.29 and liquidation was completed on 2017.11.24.Note 24: 100% Yu Rich Financial Services Co., Ltd. held by Yulon, (formerly 17.88% held by Yulon Motor, and 82.12% by Yulon Finance. On 2019.1.31. fully sold to Yulon Finance by Yulon)Note 25: Yulon Motor Finance (China) Limited, 51% which is owned by Yulon Motor and 49% by Yulon Finance, has obtained the approval from the held by Luxgen Motor, 20% by Yu Chang Motor and 20% by FORTUNE MOTORS; after the Luxgen Kaohsiung’s capital reduction on 2019.12.30, 2015, with a new shareholding of 34%)Note14: 65.58% of Yueki held directly by Yulon Motor and 0.08% by Yue Sheng.Note 17: 40% of Yu-Kuo Finance Leasing (Hangzhou) Limited by Shin Shin International Investment and 40% by Yu Rong International Investment Note 15: The organization chart of Yulon's subsidiaries in Mainland China is shown in Figure 1.Note 16: 71.34% of Sinjang II (Samoa) held by Sinjang and 28.66% by TAC global.Luxgen Motor’s shareholding changed proportionally upon its independent capital increase on 2019.12.31)Note 7: 68.57% of Car-Plus Auto held by Yulong Finance and 3. 46% by Yulong Motor.Note 8: 60% of CAR-PLUS China Investment held by CAR-PLUS Global Investment and 40% by TAC Global Investment.Note 9: 60% of CAR-PLUS Shanghai Investment held by CAR-PLUS Global Investment and 40% by TAC Global Investment.Motor in a merger on August 11, 2016). Name changed to Yulon Construction since January 2017.Note 12: Yulon completed the transfer of equity interest on March 29, 2019. 73.26% held by TAC, 19.78% by Luxgen and 6.96% by othersNote 13: 34% of Y-Teks held directly by Yulon Motor and 12.00% by Yue Sheng. (Yulon Motor increased the capital of Y-Teks on November 18, independent capital increase on 2019.12.31)Note 6: 93% of Luxgen Kaohsiung held by Luxgen Motor Co., Ltd. and 3.5% by Yu Chang Motor and 3.5% by FORTUNE MOTORS.(Formerly 60% Note 10: 100% of Sinjang held by Singan (On 2019.1.31 Yulon Motor, China Motor, TAC and Car-Plus sold all their shareholdings to Singan).Note 11: 100% of Yuyuen Development held by Yulon since 2016.07.20. (Formerly 98.6% held by Yuping Investment, which was absorbed by Yulon Note 32: Zhejiang Cheng Yi auction Ltd. 100% held by Zhejiang Cheng Yi Automobile Technology Service Co., Ltd.Note 33: 100% of Ta Teng Transportation Co.,Ltd. held by Da Wei Technology Co., Ltd.Note 34: Formerly, 100% of Wuhan TAC Auto Trade Co., Ltd. held by Yu-Kuo Finance Leasing (Hangzhou) Limited, sold to Zhejiang Cheng Yi Automobile Technology Service Co., Ltd. on March 31, 2020 and 100% owned by Zhejiang Cheng Yi Automobile Technology Service Co., Ltd.capital by 180 million. 99.994% held by Yulon and 0.006% by Yulon-Administered Enterprises.Note 1: 20.00% of EMPOWER MOTORS is directly held by Yulong Motors and 27.00% by Yulong Finance.Note 2: Luxgen Taipei is 100% owned by Luxgen Motor. (Formerly 99.99% held by Luxgen Motor, 0.01% by Yulon-Administered Enterprises; after 60% held by Luxgen Motor, 20% by EMPOWER MOTORS and 20% by FORTUNE MOTORS; after the Luxgen Taichung’s capital reduction on 2019.12.30, Luxgen Motor’s shareholding changed proportionally upon its independent capital increase on 2019.12.31)Note 5: 94.2% of Luxgen Tainan held by Luxgen Motor and 5.8% by FORTUNE MOTORS. (Formerly 80% held by Luxgen Motor and 20% by FORTUNE MOTORS; after the Luxgen Tainan’s capital reduction on 2019.12.30, Luxgen Motor’s shareholding changed proportionally upon its Note 35: 99.96% of Yufong Property Management Co., Ltd. by Yulon Construction and 0.04% by Yulon-Administered Enterprises Company Limited.Finance.Note 38: LUXGEN MOTOR LIMITED LIABILITY COMP was liquidated and its registration was cancelled in July 2017.Note 36: 80.07% of Yue Sheng Industrial owned by Yulon Motor (formerly 50.97% owned by Yulon Motor, which purchased the 29.10% shareholding Note 39: The establishment of Kuen Yu Trading Co., Ltd. was completed on April 27, 2018, and the company is 100% owned by Yu Hsin.in Yue Sheng Industrial from Japan Central Nitro Co. in March 2018).Note 37: Yulon Finance Overseas Invenstment (Samoa) Co., Ltd. was registered and established January 28, 2018 and 100.00% owned by Yulon the Luxgen Taipei’s capital reduction on 2019.12.30, Luxgen Motor’s shareholding changed proportionally upon its independent capital increase on 2019.12.31)Note 3: 60% of Luxgen Taoyuan held by Luxgen Motor Co., Ltd. and 20% by Yushin Motor and 20% by FORTUNE MOTORS.Note 4: 97.8% of Luxgen Taichung held by Luxgen Motor Co., Ltd. and 1.1% by EMPOWER MOTORS and 1.1% by FORTUNE MOTORS. (Formerly Note 40: Yulon New Energy Vehicle (Cayman) Company was registered and established on April 10, 2018 and is 100% owned by Yulon. Cancelled registration in 2020Q4. (Samoa) Co., LtdNote 41: Yulon New Energy Vehicle (HK) Company was registered and established on June 5, 2018 and is 100% owned by Yulon New Energy Vehicle (Cayman) Company. Cancelled registration in 2020Q4.Note 42:entity and included in the consolidated statements in 2019Q4. The original holding was 35.46%; in June 2020, bought back the external shareholding, raising the shareholding to 57.5%. 2020.08 increased to 58.85% after the capital increase of Hua-chuang, and 41.15% held by Taina.Note 56: 96.77% of Hangzhou Hua-chuang held by Hua-chuang China Investment and 3.23% held by Yulon China.Note 57: Da Wei Technology Co., Ltd. added 8 subsidiaries on January 2020, Yongxiang, Guoma, Jinyu, Zhongxing, Liyang, Heyang, Jiayu and Tianyang, all 100% owned.Note 58: The liquidation process of Hua-chuang Japan, which was 100% invested by Hua-chuang Overseas, was completed in 2020/5.Note 59: The registration of establishment of Minshang Leasing was completed on July 8, 2020, with 100% investment by EMPOWER MOTORS.Note 60: YL purchased 100% of the shares of Advanced Power from China Power on July 17, 2020, and Advanced Power was included in the Consolidated Entity.Note 43: 60% of CAR-PLUS Hangzhou Investment held by CAR-PLUS Global Investment and 40% by TAC Global Investment.Note 44: The establishment of CAR-PLUS GO Co., Ltd. was registered on November 13, 2018 and is 100% owned by CAR-PLUS Hangzhou Investment (Samoa) Co.Note 45: 100% of Hong Shuo held by Singan (Formerly 100% held by Singan, and sold to Car-Plus on January 31, 2019).Note 46: 100% of Qinton held by Singan (Formerly 100% held by Yulon Motor, and sold to Singan on January 31, 2019).Note 47: Yulon invested its investment in Yuwan through Qing Yi on July 31, 2019, with Qing Yi holding 44.11% overall and Hong Kong Yueki holding 55.89%.Note 48: On April 30, 2019, Hangzhou Lian Ren's shareholding changed to be 79.49% held by UNI INVESTMENT and 20.51% held by Qing Yi Investment (formerly 100% held by UNI INVESTMENT).Note 49: YL increased its shareholding from 80% to 99.99% on 5/31 by purchasing the shares of Yushin's outside shareholdersNote 50: On March 2019, Car-Plus added 3 subsidiaries, Dachuan Transportation, Damu Transportation and Dajun Transportation, all100% owned.Note 51: YL sold 100% of its equity interest in Yulon Power to SHIN SHIN on April 30, 2019. Yulon Power was renamed to YES-Energy Service Co., LTD. on 5/29.Note 52: 100% of Hefei Yu-Kuo, Shanghai Yu-Kuo, Qingdao Yu-Kuo and Suzhou Yu-Kuo held by Yu-Kuo Finance Leasing Limited from 2019/4/30 (originally held 30%); in 2020Q4 Suzhou Yu-Kuo, Hefei Yu-Kuo and Qingdao Yu-Kuo deregistered.Note 53: YL purchased the equity interest in Yulon It Solutions Inc. from China Motor on 2019.6.28 and changed the shareholding from 43.85% to 87.71%.Note 54: Originally 100% invested by Yu Hsin International Investment (HK), on November 15, 2019; Qing Yi Investment invested inHang Ying and acquired 13.87% of the equity, and the shareholding of Yu Hsin International Investment (HK) became 86.13%.Note 55: Since Yulon plans to hold 100% of equity in Hua-chuang in the future (after 2020), it must be recognized as a consolidated 100% of Yulon Finance Philippines Co., Ltd.. held by Yulon Finance Philippines Invenstment
100.00%Diamond Auto Service Co., Ltd. Xie Guan Manpower Service Co., Ltd. 100.00%
Ta Teng Transportation Co., Ltd. 100.00% (Note 33)
Corporation 68.57% (Note 7)Car-Plus Auto Leasing Dachuan Transportation Co., Ltd. 100.00% (Note 50)
Damu Transportation Co., Ltd. 100.00% (Note 50)
Dajun Transportation Co., Ltd. 100.00% (Note 50)
Yongxiang Transportation Co., Ltd. 100.00%(Note 57)
Da Wei Technology Co., Ltd. 100.00% Guoma Transportation Co., Ltd. 100.00%(Note 57)
(Note 28) Jinyu Transportation Enterprise Co., Ltd. 100.00%(Note
Zhongxing Automobile Co., Ltd.100.00%(Note 57)
Liyang Automobile Co., Ltd.100.00%(Note 57)
Heyang Transportation Co., Ltd. 100.00%(Note 57)
Jiayu Transportation Enterprise Co., Ltd. 100.00%(Note
Hong Shuo Cultural Enterprises Co., Tianyang Transportation Co., Ltd. 100.00%(Note 57)
Ltd. 100.00% (Note 45)
CAR-PLUS China Investment 60% (Note 8) CAR-PLUS Auto Leasing (Suzhou) Limited 100.00%
CAR-PLUS Global Investment 100.00% CAR-PLUS Shanghai Investment 60% (Note 9) CAR-PLUS Auto Leasing (Shanghai) Limited 100.00%
CAR-PLUS Hangzhou Investment 60%(Note 43) CAR-PLUS GO Co., Ltd. 100.00%
Corporation 45.75%Taiwan Acceptance Shinshin Credit Corporation 100.00% 100.00% (Note 51)YES-Energy Service Co., LTD. 100.00%Energy Engineering Co., Ltd.
SHIN SHIN Global Investment (Samoa) Co.,
100.00% (Note 22)
TAC Global Investment 100.00% Yu Rich Financial Services Co., Ltd. (SAMOA) Co., Ltd. 100.00%Yu Rong International Investment Yu-Kuo Finance Leasing (Hangzhou) Limited 40.00%(Note 17)100.00%Yu-Rong Leasing (Suzhou) Limited Zhejiang Cheng Yi Automobile Technology Service Co., Ltd 100.00% (Note 26)(Note 52)Shanghai Yu-Kuo Auto Trade Co., Ltd. 100.00% Hangzhou Cheng Yi second - hand car identification assessment Limited 100% (Note Zhejiang Cheng Yi auction Ltd. 100% (Note
100% (Note 24) Wuhan TAC Auto Trade Co., Ltd. 100.00% (Note
Yulon Motor Finance (China) Limited 49% (Note 25) Qinton Motor Co., Ltd. 100.00% (Note 46)
Hsiang Shou Enterprise Co., Ltd.
100.00%
Singan Co., Ltd. 73.26% (Note 12) Sinjang Co.,Ltd 100.00% (Note 10) Sinjang Investment (Samoa) Co., Ltd. 71.34% (Note 16)
100.00%Sinqual Technology Co.,Ltd. Technology Limited 100.00%Jing-Hui (Shanghai) Motor
Yulon Finance Overseas Invenstment (Samoa) Co., Ltd. 100% (Note Yulon Finance Philippines Invenstment (Samoa) Co., Ltd. 100% Yulon Finance Philippines 100% (Note 42)
Hangzhou Yujie Real Estate Co., Ltd
Yulon Construction Co., Ltd. 100%(Note 30)
100.00% (Note 11) Yufong Property Management Co., Ltd.
Yung Hang Investment Co., Ltd. 99.96% (Note 35)
100.00% (Note 18)
Yu Pong Business Co., Ltd. 100.00%
Yu Ching Business Co., Ltd. 60.00%
(Note 29)
Yulon It Solutions Inc. 87.71%(Note
53)Y-Teks Co., Ltd. 34% (Note 13) CO., LTD. 66.66%YU HSIN INT'L INVESTMENT 100.00%Yu Hsin International (HK) Co., Ltd. Hangzhou Y-teks Automotive Trim Parts Lt 86.13% (Note 54)Limited 51.00%Changzhou Y-Teks Automotive Trim Parts
Uni Auto Parts Manufacture Co., Ltd UNI INVESTMENT COMPANY Limited 66.67%Fuzhou Lianghong Motor Parts
25.01% LIMITED 100.00% HANGZHOU LIAN RUN MOTOR
PARTS CO., LTD 79.49% (Note 48)
Yue Ki Industrial (Samoa) Co., Ltd.
(Note 14)Yueki Industrial Co., Ltd. 65.58% 100.00%
Yue Ki Industrial (HK) Co., Ltd. Hangzhou Yuwan Auto Motive Parts Limited
Yue Sheng Industrial Co., Ltd. 100.00% 55.89% (Note 47)
80.07% (Note 36)
China Cast Iron Pipe Co., Ltd.
77.66%
Yulon Overseas Investment Co., Ltd. 100% Ltd. 100.00%Yulon Philippines Investment Co., Yulon China Investment Co., Ltd. Univation Motor Philippines, Inc. 100% (Note 19) PACGM 40% Sta. Cruz Island Corporation 60% Eastern Crown Industries Inc. 100%
(BVI) 100.00% (Note 15)
Sin Etke Technology Co.,
Information Technical Center Co., Ltd. 58.85% (Note 55)Hua-Chuang Automobile Investment Co., Ltd. 100%Ltd. 100%Hua-chuang Overseas Investment Co., Ltd. 100%Hua-chuang China Automobile 96.77% (Note 56)Hangzhou Hua-chuang
ADVANCE POWER MACHINERY
CO., LTD. 100%(Note 60)
Consolidated entity
YULON MOTOR CO., LTD
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366 YULON MOTOR

Figure 1:

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Yulon China Investment 22010067 Note 1: 100% of “Yi Ding Investment” held by TaiFeng Software. (Formerly, KeYu Information owned 90% and TaiFeng Software owned 10%. On 2017.3.29, KeYu Information transfer its 90% shareholding to TaiFeng Software).Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment.2017.3.29, KeYu Information transfer its 90% shareholding to TaiFeng Software).Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment.Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment.
Co., Ltd. Note 3: 90% of “Hsiao Yu Industrial Investment” held by QienYu Investment and 9% by TangYu Investment.
(BVI) Note 4: 100% of “Shi Chen Investment” held by QingTai Technology. (Formerly, QingTai owned 53.04% and KeYu Information owned 46.96%. On
2017.3.29, KeYu Information transfer its 46.96% shareholding to QingTai Technology). )
Note 5: 70% of “Jin Ce Investment” held by QingTai Technology and 30% by TaiFeng Software.
Note 6: 94.03% of “DongTai Investment” by Shi Cheng Investment and 5.97% by Jin Ce Investment
(SAMOA)100% InvestmentWen Yang 22010098 Qing Yi Investment(SAMOA) 100% 22010099 Investment Co., Yulon China (HK) (USD)22010138Ltd. Yulon China Holdings22010191(Cayman)100% Investment(HK) 40%22010184Feng-hua unconsolidated long-term investment under the equity method, and therefore the majority interest became 60%.Ltd. was subject to the 50% proportional consolidation method, and therefore the majority interest totaled 80%; in 2013Q2, it changed to be an Note 7: 90% of “Mei De Investment” held by TaiFeng Software and 10% by QingTai TechnologyNote 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., Ltd. was subject to the 50% proportional consolidation method, and therefore the majority interest totaled 80%; in 2013Q2, it changed to be an Note 7: 90% of “Mei De Investment” held by TaiFeng Software and 10% by QingTai TechnologyNote 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co.,
100% Note 10: “Dongfeng Sales“, 50% owned by Yulon (China) Automobile, was declared bankrupt by the court in November 2020 and went into
liquidation, so the control has been lost and it is listed as a non-consolidated entity.
Note 11: Minority shareholdings in Yulon China's Consolidation: HangZhou Hsiao Yu 1%, SuZhou FengShen 60%, Guangzhou YuanDou 49%,
TaiFeng ((Nanjing) Software Technology Limited 100% 22010101 QingTai Technology 100% (Note 27)22010102(NanJing) (Nanjing) 100%(Note 31) Technology LimitedKeYu Information 22010100 Yulon Motor Investment (HK) (USD)22010192100% Automobile Service LimitedSuzhou Chenglong 22010185100% Shenzhen Yu Pong 35%, Hangzhou HuaZhi 40%, Feng-hua Investment 60%.Note 12: In May 2012, the share transfer of “Guangzhou YuanDou” was completed, with 51% owned by Sheng-Cing and 49% by Yuanlong.Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 12: In May 2012, the share transfer of “Guangzhou YuanDou” was completed, with 51% owned by Sheng-Cing and 49% by Yuanlong.Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share
transfer document has not yet been completed).
Note 15: Deregistration of Taixin (HK), Qing Yi (HK), Wen Yang (HK) were completed on 2014.9.12.
Yi Ding Investment Investment LimitedGaoTe (Beijing) 100% (Note 1)90% (Note 2)(ZhangZhou)2201010522010109 Mei De Investment 90% (Note 7)(ZhangZhou)22010106 Shi Cheng Investment DongTai Investment (Zhangzhou) 100%94.03% (Note 6)2201010722010111 (Beijing)(Note 4) Technology Limited Jin Ce Software 70% (Note 5)(ZhangZhou)22010108 100% (Note 28)Sales Co., Ltd. Luxgen Motor (Hangzhou)22010228 (China) Investment Yulon Automotive 22010193Limited100% Xiamen Y.C. Investment22010051100% 16.13% Suzhou Cheng-Hung Service LimitedAuto Sales & 22010208100% Suzhou Cheng-Kuo Service LimitedAuto Sales & 22010209100% equity interests are 25% by Sanli Holdings Limited and 15% by Zhang Zhicong; sold to unrelated parties in December 2020.by Yuanchuang.Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-by Yuanchuang.Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-
Note 26: The deregistration of “Heshan Risen“ was completed on August 27, 2020.
Note 27: The share transfer of “QingTai Technology” was completed on January 2017, with 100% owned by Wen Yang.
Investment LimitedHangZhou QienYu 22010126100% Investment LimitedHangZhou TangYu 100% (Note 20)22010125 Chuang Jie New Energy Vehicle Limited (Hangzhou)100% (Note 29)22010236 83.87% (Note 8)Sheng-Cing Investment 22010110(Beijing) Note 28: “Luxgen (Hangzhou) Motor Sales Co., Ltd“ completed its business registration on August 15, 2017 and is 100% owned by Yulon Motor Investment (HK).Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Investment (HK).Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin
Investment to Wen Yang Investment.
22010129
HangZhou Hsiao Yu
90% (Note 3)Industrial Zhong Trading HangZhou Yu 22010124Limited100% Automobiles. Sale & SuZhou FengShen Service Limited40% (Note 18)22010112 & Services LimitedAutomobiles Sales 67.62% (Note 21)Zibo Yu An 22010216 Industry & Trade Zhu Hai FuTeEn 22010116Limited100% Automobiles Sales & Service LimitedShanghai Yumin 51%(Note 13)22010173 Automobiles Sales & Wuhan Yu Hsin Service Limited22010127100% NanJing HanHong Trading LimitedAutomobiles 22010123100% Automobiles Sales & Service Limited51% (Note 24)Fujian YuXin 22010176 Guangzhou YuanDou Automobile Sales & Service Limited51%(Note 12)22010114 Automobiles Sales & Ningbo Yu Chang Service Co., Ltd.100% (Note 14)22010175 Automobile Sales & Hangzhou HuaZhi Service Limited60% (Note 9)22010177 Automobile Sales & Service LimitedChangsha Yulu 22010188100% Automobiles Sales & Service LimitedAnqing Cai Tong 100% (Note 20)22010212 Tongling Kuo Tong & Services LimitedAutomobiles Sales 70.44% (Note 20)22010215 Automobiles Sales & Service Limited64.91% (Note 20)Anhui Min Tong 22010211
Automobiles Sales & Service LimitedSuzhou YuShun 22010157100% Automobiles Sales & Service LimitedSuzhou FengShun 22010113100% Automobiles Sales & Service LimitedSuzhou Eslite 22010200100% Suzhou ChengBang Automobiles Sales & Service Limited22010202100% Automobiles Sales & Service LimitedChengMao 22010210TaiTsang Automobiles Sales & Service Limited ZhuHai Esinn 22010156100% & Service LimitedAutomobile Sales Shenzhen Yuzhi 22010180100% Automobiles Sales & Service LimitedChiaHsing YuTa 22010207100% Automobile Sales & XiaoGan YuFeng Service Limited22010179100% Automobile Sales & Nanjing YuShang Service Limited22010181100% Automobile Sales & Nanjing HanHong Service Limited22010201100% Qingdao YuanHuang Automobiles Sales & Services Limited40% (Note 23)22010174 Automobile Sales & Hangzhou HuaYou Service Limited22010183100%
22010128 22010182
Wu Jiang Lian Cheng Suzhou ChengLi
Automobiles Sale & Automobile Sales &
Service Limited Service Limited
100% 100%
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Note 1: 100% of “Yi Ding Investment” held by TaiFeng Software. (Formerly, KeYu Information owned 90% and TaiFeng Software owned 10%. On 2017.3.29, KeYu Information transfer its 90% shareholding to TaiFeng Software).Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment.2017.3.29, KeYu Information transfer its 90% shareholding to TaiFeng Software).Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment.Note 2: 90% of “GaoTe Investment” held by Yi Ding Investment and 10% by Jin Ce Investment. Note 3: 90% of “Hsiao Yu Industrial Investment” held by QienYu Investment and 9% by TangYu Investment. Note 4: 100% of “Shi Chen Investment” held by QingTai Technology. (Formerly, QingTai owned 53.04% and KeYu Information owned 46.96%. On 2017.3.29, KeYu Information transfer its 46.96% shareholding to QingTai Technology). ) Note 5: 70% of “Jin Ce Investment” held by QingTai Technology and 30% by TaiFeng Software. Note 6: 94.03% of “DongTai Investment” by Shi Cheng Investment and 5.97% by Jin Ce Investment Note 7: 90% of “Mei De Investment” held by TaiFeng Software and 10% by QingTai TechnologyNote 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., Note 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., (Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., unconsolidated long-term investment under the equity method, and therefore the majority interest became 60%.Ltd. was subject to the 50% proportional consolidation method, and therefore the majority interest totaled 80%; in 2013Q2, it changed to be an Note 7: 90% of “Mei De Investment” held by TaiFeng Software and 10% by QingTai TechnologyNote 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., Ltd. was subject to the 50% proportional consolidation method, and therefore the majority interest totaled 80%; in 2013Q2, it changed to be an Note 7: 90% of “Mei De Investment” held by TaiFeng Software and 10% by QingTai TechnologyNote 8: 83.87% of “Sheng-Cing Investment” held by China Automobile Investment and 16.13% by Xiamen Y.C. after capital increase on 2020.4.25.(Original shareholding: 69.5% by China Automobile Investment and 30.5% by Xiamen Y.C.) )Note 9: 60% of “Hangzhou HuaZhi” held by Sheng-Cing Investment and 40% by Dengfeng Yulon In 2013Q1, Dongfeng Yulon (Manufacturing) Co., Note 10: “Dongfeng Sales“, 50% owned by Yulon (China) Automobile, was declared bankrupt by the court in November 2020 and went into liquidation, so the control has been lost and it is listed as a non-consolidated entity. Note 11: Minority shareholdings in Yulon China's Consolidation: HangZhou Hsiao Yu 1%, SuZhou FengShen 60%, Guangzhou YuanDou 49%, Shenzhen Yu Pong 35%, Hangzhou HuaZhi 40%, Feng-hua Investment 60%.Note 12: In May 2012, the share transfer of “Guangzhou YuanDou” was completed, with 51% owned by Sheng-Cing and 49% by Yuanlong.Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 12: In May 2012, the share transfer of “Guangzhou YuanDou” was completed, with 51% owned by Sheng-Cing and 49% by Yuanlong.Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 13: The share transfer of “Shanghai Yumin“ was completed in December 2018, with 51% owned by SHENG-CING and 49% owned by Anser Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Motor Inc.Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share Note 14: in August 2014, the share transfer of Ningbo Yu Chang was completed, with 100% owned by Sheng-Cing. (Formerly, Yu Chang China had owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share owned 49%. In November 2016, the Board of Directors approved the buyback of 49% equity through Sheng-Cing, but the signing of the share transfer document has not yet been completed). Note 15: Deregistration of Taixin (HK), Qing Yi (HK), Wen Yang (HK) were completed on 2014.9.12. Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Shengequity interests are 25% by Sanli Holdings Limited and 15% by Zhang Zhicong; sold to unrelated parties in December 2020.by Yuanchuang.Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-by Yuanchuang.Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 24: The share transfer of “Fujian YuXin” was completed in June 2016, with 51% owned by Sheng-Cing and 49% by YuXin Investment.Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 25: The share transfer of “Jiangmen Junxing” was completed in July 2016, with 60% owned by Sheng-Cing Investment and the other 40% 35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-35.09%; Anqing Lingtong & Hefei Chunhui were deregistered in December 2020.Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 21: DongTai Investment established Zibo Yu An on April 14, 2015, and Beijing ShengCing increased its capital on 2020.08. After the capital increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-increase, DongTai Investment held 32.38% and Beijing Sheng-Cing held 67.62%.Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 22: Huiman Investment was extinguished on 2015.10.9Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Note 23: “Qingdao YuanHuang” increased capital in December 2018, with 30.6% owned by Sheng-Cing, 40% by Guangzhou YuanDou and 29.4% Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing Sheng-Cing invested in Anhui Min Tong on October 29, 2020, with a shareholding of 64.91%; in addition, DongTai Investment's shareholding dropped to Note 16: The 100% ownership of “Shenzhen Yu Pong” was fully transferred to a natural person, Hsiao-Chung Yao, on July 25, 2020.Note 17: 40% of “Feng-hua Investment” held by Yulon China (BVI) and 60% by Chenglong Automobile.Note 18: 40% of “SuZhou FengShen” held by Sheng-Cing Investment and 60% by Chenglong AutomobileNote 19: All of the interest in Guangzhou YuanZhi was fully disposed of in 2020.4 and is no longer held by the Yulon Group.Note 20: DongTai Investment has acquired five companies in Anhui Province since March 31, 2015, all with a 100% shareholding. Beijing ShengNote 26: The deregistration of “Heshan Risen“ was completed on August 27, 2020. Note 27: The share transfer of “QingTai Technology” was completed on January 2017, with 100% owned by Wen Yang. Note 28: “Luxgen (Hangzhou) Motor Sales Co., Ltd“ completed its business registration on August 15, 2017 and is 100% owned by Yulon Motor Investment (HK).Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Investment (HK).Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 29: “Chuang Jie New Energy Vehicle (HZ) Limited” completed its business registration on 2018.9.10 and is 100% owned by Yulon (China) Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Automobile InvestmentNote 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 30: The sale of Guangzhou YuanZhi, a subsidiary of Guangzhou YuanDou (formerly 100% shareholding), was completed on May 21, 2020, and Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Guangzhou YuanZhi was removed from the consolidated entity after the sale.Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Note 31: The share transfer of “KeYu Information Nanjing” was completed in July 2020, where 100% of the shares were transferred from Taixin Investment to Wen Yang Investment.

Special Notes

2. Information on affiliates

As of 2020.12.31

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
YULON MOTOR
CO.,LTD
1		 Taiwan Acceptance
Corporation		 1990.04.12 15F., No. 2,Sec. 2,
Dunhua S. Rd.,Da’an
Dist., Taipei City		 4,323,013 Sales of various types of
automobiles and related products,
etc.
2 14F., No. 2,Sec. 2,
Shinshin Credit Installment payment for all types
1987.11.19 Dunhua S. Rd.,Da’an 2,218,333
Corporation of cars and trucks
Dist.,TaipeiCity
3 11F., No. 2,Sec. 2, Leasing of passenger cars and
Carplus Auto Leasing
1978.11.13 Dunhua S. Rd.,Da’an 941,618
small trucks, and wholesale and
Corporation
Dist., Taipei City retail sales of automobiles, etc.
4 2F., No. 3,Sec. 3, Consumer goods installment
Taiwan Yu Rich Financial
2003.12.30 Zhongxing Rd.,Xindian 1,382,092
business, auto parts wholesale and
Acceptance Services Co., Ltd.
Dist., New Taipei City retail, etc.
Corporation
5 Room 1301-1305,
Oriental Century Center,

Xiaoshan Economic and
RMB
Yulon Motor Finance
Car purchase and car dealership
2016.2.19 Technological 1,000,000
(China) Limited
purchase loan business
Development Zone, thousand
Xiaoshan District,
Hangzhou
Shinshin Credit
Corporation		 6 Shin Shin Investment
(Samoa) Co., Ltd.		 2015.8.24 Portcullis Trustnet
Chambers, P.o. Box
1225,Apia,Samoa		 USD
12,000
thousand
Holding company
7 YES-Energy
Service
Co., LTD.
2010.06.15		 2F.,
No.
3,Sec.
3,
Zhongxing Rd.,Xindian
Dist., New Taipei City

290,000		 Wholesale and retail of batteries
and wholesale and retail of cara
and
motorcycle
parts
and
accessories

8		 2F., No. 3,Sec. 3,
YES-Energy Power Engineering Electrical appliance wholesale and
2012.05.10 Zhongxing Rd.,Xindian 2,000
Service Co., LTD. Co., LTD. battery wholesale and retail, etc.
Dist., New Taipei City
Taiwan
Acceptance
Corporation		 9 Yulon Finance
Overseas Invenstment
(Samoa)Co.,Ltd.		 2018.1.31 Portcullis TrustNet
Chambers, P.O. Box
1225,Apia,Samoa		 USD
15,000
thousand
Holding company
Yulon Finance 10 Yulon Finance
Portcullis TrustNet USD
Overseas Philippines
2018.2.1 Chambers, P.O. Box 15,000
Holding company
Invenstment Invenstment (Samoa)
1225, Apia, Samoa thousand
(Samoa)Co.,Ltd. Co.,Ltd.
Yulon Finance
Philippines
Invenstment
(Samoa)Co.,Ltd.		 11 Yulon Finance
Philippines Co., Ltd		 2018.4.26 17 floor, Curve, 32nd
Street corner 3rd
Ave ,BGC ,Taguig City		 PHP
750,000
thousand
Car purchase loan business and
finance lease business.
Taiwan 12 TAC Global Portcullis TrustNet USD
Acceptance Investment 2006.11.01 Chambers, P.O. Box 108,833
Holding company
Corporation (Samoa)Co.,Ltd 1225,Apia,Samoa thousand
TAC Global
Investment
(Samoa)Co.,Ltd		 13 Yu Rong International
Investment (SAMOA)
Co.,Ltd.		 2010.04.01 Portcullis TrustNet
Chambers P.O. Box
1225 Apia,Samoa		 USD
87,496
thousand
Holding company
14 Room 1118, Building RMB
Yu-Rong Leasing
Equipment and vehicle finance
2010.06.30
23, Times Square,		 500,000
(Suzhou) Limited
lease business
Yu Rong SuzhouIndustrial Park thousand

International		 15 Room 124, Science and
Investment Technology Cultural
Yu-Kuo Finance USD
(SAMOA) Co.,
Center, Linjiang High-
Equipment and vehicle finance
Leasing (Hangzhou) 2014.03.06 30,000
Ltd.
tech Industrial Park,

lease business
Limited thousand
Xiaoshan District,
Hangzhou
Yu-Kuo Finance 2nd Floor, Building 1, Car trading
Leasing
(Hangzhou)
Limited		 16 Shanghai YuGuo Auto
Trade Co., Ltd.		 2015.12.09 No.84 Sanlin Road,
Pudong New Area,
Shanghai		 RMB
2,000 thousand

368 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
17 Zhejiang Cheng Yi
Automobile
Technology Service
Co., Ltd		 2014.01.31 Room 203-3, Bonded
Building, West of
Bonded Road,
Hangzhou Airport
Economic Zone,
Xiaoshan District,
Hangzhou,Hangzhou		 RMB
20,000
thousand
Sales and brokerage services of
used vehicles
18 Room 203-5, Bonded
Building, West of
Hangzhou Cheng Yi
Bonded Road,

second - hand car		 RMB Used Vehicle Identification
2014.10.22 Hangzhou Airport
identification 1,500 thousand Service
Economic Zone,
assessment Limited
Xiaoshan District,
Hangzhou,Hangzhou
19 418Y, 99 Shixin North
Road, Xiaoshan
Zhejiang Cheng Yi RMB Sales and brokerage services of
2016.11.16 Economic and
Zhejiang Cheng
auction Ltd.		 2,000 thousand
used vehicles
Technological
Yi Automobile
Development Zone
Technology
Automobile sales; motor vehicle
Service Co., Ltd
trading and brokerage services;
automobile leasing; sales of
No. 3, 23rd Floor, Unit motorcycles, electrical and
1, Building 1, Fuxing mechanical equipment and parts,
20 Wuhan TAC Auto 2017.02.13
City, Hejiadun Village,		 RMB automobile supplies, automobile
Trade Co., Ltd.
Jianghan District,		 2,000 thousand parts and accessories; automobile

Wuhan		 technical consulting services;
business information consulting
(excluding business surveys);
machineryand equipment leasing
Carplus Auto
Leasing
Corporation		 21 Diamond Auto Service
Co., Ltd.		 1988.11.10 15F., No. 2,Sec. 2,
Dunhua S. Rd.,Da’an
Dist., Taipei City		 85,000 Small passenger car rental,
automobile wholesale and retail
business, etc.
22 Da Wei Technology
Co., Ltd		 2016.09.19 No. 59,Jingmao 1st
Rd.,Nangang Dist.,
Taipei City		 40,000 Electric car brokerage service
23 Hong Shuo Cultural
Enterprises Co.,Ltd.		 1999.02.01 15F., No. 2,Sec. 2,
Dunhua S. Rd.,Da’an
Dist.,TaipeiCity		 40,500 Magazine Book Publishing
24 CAR-PLUS Global
Investment(Samoa)Co.,
Ltd
2006.11.02		 Portcullis TrustNet
Chambers, P.O. Box
1225,Apia,Samoa		 USD
31,200
thousand
Holding company
25 CAR-PLUS China Portcullis TrustNet USD
Investment(Samoa) 2006.11.02 Chambers, P.O. Box 10,000
Holding company
Co.,Ltd 1225,Apia,Samoa thousand
CAR-PLUS
26		 Car-Plus Shanghai Portcullis TrustNet USD
Global Investment
Investment(Samoa)		 2008.12.22 Chambers, P.O. Box 10,000
Holding company
(Samoa) Co., Ltd co.,ltd 1225,Apia,Samoa thousand
27 CAR-PLUS Hangzhou Portcullis TrustNet USD

Investment (Samoa)		 2018.8.23 Chambers, P.O. Box 32,000
Holding company
Co.,Ltd 1225,Apia,Samoa thousand
CAR-PLUS
China Investment
(Samoa)Co.,Ltd		 28 CAR-PLUS Auto
Leasing (Suzhou)
Limited		 2007.1.29 No. 8 Dongfu Road,
Suzhou Industrial Park		 USD
10,000
thousand
Vehicle leasing business and
related ancillary services
29 Block A, 3rd Floor,
Car-Plus
CAR-PLUS Auto Building 1, No. 5179, USD
Shanghai
Vehicle leasing business and
Leasing (Shanghai) 2009.07.09
Longdong Avenue,		 10,000
Investment
related ancillary services
Limited Pudong New Area, thousand
(Samoa) Co.,Ltd
Shanghai

Annual Report 2020 369

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
CAR-PLUS
Hangzhou
Investment
(Samoa) Co., Ltd		 30 CAR-PLUS GO Co.,
Ltd.		 2018.11.13 Room 2402, Oriental
Century Center,
Xiaoshan Economic and
Technological
Development Zone,
Xiaoshan District,
Hangzhou City,
ZhejiangProvince		 USD
32,000
thousand
Internet booking taxi passenger
transportation
31 15F., No. 2,Sec. 2,
Diamond Auto Xie Guan Manpower Corporate Management
2001.11.09 Dunhua S. Rd.,Da’an 10,000
Service Co., Ltd. Service Co., Ltd. Consulting Business
Dist.,TaipeiCity
Da Wei
Technology Co.,
Ltd		 32 Ta Teng Transportation
Co.,Ltd.
1973.06.29		 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 6,000 Taxicab Transportation Business
33 Dachuan
Transportation Co.,
Ltd.		 1978.06.19 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,000 Taxicab Transportation Business
34 Damu Transportation
Co., Ltd.		 1976.07.01 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 6,000 Taxicab Transportation Business
35 Dajun Transportation
Co., Ltd.		 1979.05.24 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,000 Taxicab Transportation Business
36 Yongxiang
Transportation Co.,
Ltd.		 1977.10.28 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,000 Taxicab Transportation Business
37 Guoma Transportation
Co., Ltd.		 1978.11.16 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 4,000 Taxicab Transportation Business
38 Jinyu Transportation
Enterprise Co., Ltd		 1977.06.02 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,000 Taxicab Transportation Business
39 Zhongxing Automobile
Co., Ltd.		 1968.02.17 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,500 Taxicab Transportation Business
40 Liyang Automobile
Co., Ltd.		 1977.12.08 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 9,000 Taxicab Transportation Business
41 Heyang Transportation
Co., Ltd.		 1974.12.10 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 6,000 Taxicab Transportation Business
42 Jiayu Transportation
Enterprise Co., Ltd		 1977.09.13 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 3,000 Taxicab Transportation Business
43 Tianyang
Transportation Co.,
Ltd.		 1978.05.27 1F., No. 81,Dexing W.
Rd.,Shilin Dist., Taipei
City		 6,000 Taxicab Transportation Business
Taiwan 44 2F., No. 3,Sec. 3, Wholesale of automobile and
Acceptance Singan Co., Ltd. 1999.12.15 Zhongxing Rd.,Xindian 286,700 motorcycle parts, wholesale of
Corporation Dist., NewTaipeiCity informationsoftware, etc.
Singan Co., Ltd. 45 Sinqual Technology
Co.,Ltd.		 1999.12.17 2F., No. 3,Sec. 3,
Zhongxing Rd.,Xindian
Dist., New Taipei City		 130,000 Wholesale of automobile and
motorcycle parts, wholesale of
machine, etc.
46 Hsiang Shou Enterprise
Co., Ltd.
1999.02.02		 2F., No. 3,Sec. 3,
Zhongxing Rd.,Xindian
Dist., New Taipei City		 100,000 Car and Motorcycle parts retail
and wholesale and car towing
47 Qinton Motor Co., Ltd. 2005.05.24 No. 315,Zhongzheng S.
Rd.,Yongkang Dist.,
TainanCity		 67,459 Sale and purchase of automobiles
and parts, repair and maintenance
ofautomobiles and vehicleleasing
48 Sinjang Co.,Ltd 2000.08.09 No. 136,Sanmin
Rd.,Linkou Dist., New
TaipeiCity		 428,240 Sales and brokerage services of
used vehicles
49 Sinjang Investment TMF Chambers P.O. USD
Sinjang Co.,Ltd 2013.9.16 Holding company
(Samoa)Co.,Ltd. Box3269. Apia. Samoa 1,874 thousand

370 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Sinqual
Technology
Co.,Ltd.		 50 Jing-Hui (Shanghai)
Motor Technology
Limited		 2008.03.03 Room 3254, 3rd Floor,
No. 17, Lane 658,
Jinzhong Road,
Changning District,
Shanghai		 USD
1 ,675
thousand
Import, export, wholesale,
commission agency (except
auction) and other related services
for auto parts and auto repair
equipment

51		 2F., No. 3, Sec. 3,
YULON MOTOR Yu Ching Business Import and export of automobiles,
1992.04.20 Zhongxing Rd., Xindian 1,211,522
CO.,LTD Co., Ltd. materials and parts, etc.
Dist., NewTaipeiCity
YULON MOTOR
CO.,LTD
52		 Yulon Construction
Co., Ltd.		 1977.01.28 8F., No. 150, Sec. 2,
Nanjing E. Rd.,
Zhongshan Dist., Taipei
City		 1,221,000 Commissioned construction of
residential buildings for sale and
introduction of related housing for
rent and sale, etc.
The development, construction
Room A-B102-548, No.
and operation and management of
198, Qidi Road,
the Xiaozheng Storage (2016) No.
Xiaoshan Economic and RMB
Hangzhou Yujie Real

14 land parcel (except for those
Yulon 53 Estate Co., Ltd 2016.09.22 Technological 500,000
involving the implementation of
Dl Z hd
Construction Co., eveopment one, tousan special management measures for
ih ii
Ltd. Xaosan Dstrct, access as stipulated by the
h
Hangzou country)
54 2F., No. 3,Sec. 3,
Yufong Property Condominium Buildings

2017.11.27		 Zhongxing Rd.,Xindian 25,000
Management Co., Ltd. Management Service
Dist., New Taipei City
YULON MOTOR
CO.,LTD
55		 Sin Chi Co., Ltd. 2001.12.25 7F., No. 150,Sec. 2,
Nanjing E.
Rd.,Zhongshan Dist.,
TaipeiCity		 1,080,000 Advertising services and business
management consulting, etc.
56 No. 83,Da'an Automobile retail industry, vehicle
Yu Chia Motor Co.,
1999.08.25 Rd.,Tucheng Dist., New 26,000
parts retail industry, automobile
Ltd.
Taipei City repair industry, etc.
Sin Chi Co., Ltd.
57 2F., No. 3,Sec. 3, Manufacture of automobiles and
Yulon TOBE Motor
2009.09.25 Zhongxing Rd.,Xindian 28,080 parts, and wholesale mold
Co., Ltd.
Dist., New Taipei City manufacturing, etc.
YULON MOTOR
CO.,LTD		 58 Yung Hang Investment
Co., Ltd.		 1994.09.12 2F., No. 3,Sec. 3,
Zhongxing Rd.,Xindian
Dist., NewTaipeiCity		 776,220 Investment in various production
and service busiesses.
59 Yu Pong Business Co.,
Ltd.		 1992.04.13 2F., No. 3,Sec. 3,
Zhongxing Rd.,Xindian
Dist., New Taipei City		 284,704 Management and related business
of Yulon professional basketball
team
60 Yulon It Solutions Inc. 2000.09.01 4F.-1, No. 30,Taiyuan
St.,Zhubei City, Hsinchu
County

190,000		 Information Software Services

61		 China Cast Iron Pipe
Co., Ltd.		 1954.03.17 10F., No. 2,Sec. 2,
Dunhua S. Rd.,Da’an
Dist., Taipei City		 32,000 Casting and operation of various
sizes of cast iron pipes and parts,
etc.
62 Yue Sheng Industrial
Co., Ltd.		 1969.04.29 No. 40-
5,Bogongkeng,Sanyi
Township, Miaoli
County		 288,000 Manufacture of automobiles and
parts, etc.
63 Advance Power
Machinery Co., Ltd.		 2008.06.03 No. 39-
1,Bogongkeng,Sanyi
Township, Miaoli
County		 5,000 Manufacture and sale of
automobile and motorcycle parts,
etc.
64 Yueki Industrial Co.,
Ltd.		 1978.09.26 No. 23,Wenhua
Rd.,Hukou Township,
Hsinchu County		 194,670 Manufacture, processing,
assembly and sales of automobile
and motorcycle parts, etc.
65 TrustNet Chambers,
Yue Ki Industrial Lotemau Centre, P. O. USD
2002.01.03 Holding company
(Samoa) Co., Ltd. BOX 1225, Apia, 4,126 thousand
Yueki Industrial Samoa.
Co., Ltd. 66 Flat B, 6/F., Teda
USD
Hong Kong Yueki Building, 87 Wing Lok
2008.07.28 10,600
Holding company
Holdings Co., Ltd. Street, Sheung Wan,
thousand
HongKong

Annual Report 2020 371

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Hong Kong Yueki
Holdings Co.,
Ltd.
67		 Hangzhou Yuwan Auto
Motive Parts Limited
2010.02.02		 Linlong Branch Road,
Linjiang Industrial Park,
Xiaoshan District,
Hangzhou		 USD
19,860
thousand
Automobile parts design,
development, manufacturing,
sales, installation and after-sales
service,etc.
68 No. 40-1,Siyuan Sale and purchase of automobiles
Esinn Co., Ltd 2002.04.09
Rd.,Xinzhuang Dist.,		 180,000
and parts, repair and maintenance
New Taipei City of automobiles

69		 No. 2, Sec. 1, Jingguo Sale and purchase of automobiles
YULON MOTOR
Yushin Motor Co., Ltd.
1994.09.27
Rd., East Dist., Hsinchu		 200,000
and parts, repair and maintenance
CO.,LTD
City ofautomobiles
70 No. 399, Dazhong 1st Sale and purchase of automobiles
Yu Chang Motor Co.,
1990.05.16
Rd., Zuoying Dist.,		 215,385
and parts, repair and maintenance
Ltd.
Kaohsiung City of automobiles
Yushin Motor
Co., Ltd.		 71 Yupu Enterprise Co.,
Ltd.		 2000.05.16 No. 668, Guohua Rd.,
Miaoli City, Miaoli
County		 10,000 Information software service
industry, electronic information
supply service and automobile and
motorcycle spare parts retail
industry
72 YU SHIN Investment
Ltd.		 2011.3.23 Portcullis TrustNet
Chambers, P.O.Box
1225,Apia,Samoa		 RMB
37,480
thousand
Holding company
73 Sales of new cars; retail of auto
The whole car sales
parts and accessories; wholesale of
complex building, No. 3
Fuzhou YuShin RMB
auto parts and accessories; sales of
YU SHIN
Xiangtong Road,
Automobile 2019.11.13 12,000

auto decoration supplies.
Investment Ltd. Shanggan Town,
Technology Co. thousand Lubricant sales; used car
Minhou County, Fuzhou
dealership; motor vehicle repair
City, Fujian Province
and maintenance
Esinn Co., Ltd 74 KUEN YOU
TRADING CO., LTD.		 2018.04.27 No. 154-5, Sec. 1,
Datong Rd., Xizhi Dist.,
New Taipei City		 10,000 Wholesale and retail of
automobiles and motorcycles and
parts, tires
75 No. 356, Yixin 1st Rd., Automobile wholesale and retail
Yu Chang Motor
Tian Wang Co., Ltd. 2000.05.15 Qianzhen Dist., 17,000 trade, automobile and motorcycle
Co., Ltd.
Kaohsiung City parts wholesale
YULON MOTOR
CO.,LTD
76		 Yulon Overseas
Investment Co., Ltd.		 2003.07.04 TrustNet Limited of
TrustNet Chambers,
P.O. Box 3444, Road
Town, Tortola, British
Virgin Islands		 USD
1,083,098
thousand
Investment
77 TrustNet Limited of
TrustNet Chambers, USD
Yulon China
2003.07.08 P.O. Box 3444, Road 1,058,071
Investment
Investment Co., Ltd.
Town, Tortola, British thousand
Yulon Overseas Virgin Islands
Investment Co., 78 2/F.,Cayside, Harbour
Ltd.
Drive P.O. Box 30592
USD
Yulon Philipines S.M.B George Town
1999.11.17
35,741
Investment
Investment Co., Ltd. Grand Cayman, Cayman

thousand
Islands British West
Indies
Yulon Philipines
Investment Co.,
Ltd.		 79 UNIVATION MOTOR
PHILIPPINES, INC.
1982.04.28		 Nissan Technopark
Barangay. Pulong Sta.
Cruz, Sta. Rosa, Laguna,
Philippines
PHP
881,383
thousand
Automobile Manufacturing
UNIVATION 80 Nissan Technopark
PHP
MOTOR STA.CRUZ ISLAND
Barangay. Pulong Sta.
1991.09.23
264,028
Housing Leasing
PHILIPPINES, CORPORATION Cruz, Sta. Rosa, Laguna,

thousand
INC. Philippines

372 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Yulon China
Investment Co.,
Ltd.		 81 Wen Yang Investment
Co., Ltd.		 2005.09.01 Portcullis TrustNet
Chambers, P.O. Box
1225,Apia,SAMOA		 USD
29,650
thousand
Investment
82 Qing Yi Investment
Co., Ltd.		 2005.09.01 Portcullis TrustNet
Chambers, P.O. Box
1225,Apia,SAMOA		 USD
15,324
thousand
Investment
83 Yulon China
Investment Co., Ltd.		 2008.02.13 15/F BOC Group Life
Assurance Tower, 136
Des Voeux Rd Central,
Central,HongKong		 USD
270,415
thousand
Investment
84 Yulon China Holdings
Co. Ltd.		 2012.01.06 The Grand Pavilion
Commercial Centre,
Oleander Way, 802
West Bay Road, P.O.
Box32052, Grand
Cayman KY1-1208,
Cayman Islands		 USD
711,803
thousand
Investment
85 Feng-hua Investment
(HK) Co., Ltd.		 2011.03.22 UNIT 706 HALESON
BLDG1 JUBILEE
ST,HK.		 USD
7,000 thousand		 Holding company
86 Type I of automotive repair
(passenger cars). Sales of
automobiles and parts, supporting
services for the sale of
automobiles; used car dealership;
technical consultation, technical
services and related consulting
services for automobiles; business
No. 2959, Sun Road,
Feng-hua Suzhou Chenglong information consulting services,
Yuanhe Street, USD

Investment (HK)
Auto Sales & Service		 2011.06.17
economic information consulting
Xiangcheng District, 7,000 thousand
Co., Ltd. Co. services; wholesale and retail of
Suzhou City
lubricating oil; wholesale and
import/export of automobile parts
and accessories, retail of
automobile decorations,
automobile cleaning and
maintenance supplies, automobile
safety supplies, automobile tools
and electrical appliances
Suzhou
Chenglong Auto
Sales & Service
Co.		 87 Suzhou Cheng-Hung
Auto Sales & Service
Limited		 2014.05.22 No. 149, Luzhi Avenue,
Luzhi Town, Wuzhong
District, Suzhou City		 RMB
10,000
thousand
Sales: automobiles and
accessories, motorcycles and
accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
products, construction materials,
lubricants, non-hazardous
chemicals; used car dealership; car
licensing procedures; car rental;
motor vehicle repair and technical
consulting services, business
information consulting services;
economic information consulting
services; automotive information
consulting services; self-
supporting and acting as a dealer
for the import and export of
variousgoods and technologies

Annual Report 2020 373

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
88 Suzhou Cheng-Kuo
Auto Sales & Service
Limited		 2014.05.22 South side of Nanhuan
Road, Shengze Town,
Wujiang District,
Suzhou City (Maota
Village)		 RMB
20,000
thousand
Sales: automobiles and
accessories, motorcycles and
accessories, metal materials,
hardware, electrical and
mechanical products, construction
materials, lubricants, non-
hazardous chemical products; used
car dealership; car licensing
procedures on behalf of the office;
car rental; motor vehicle repair and
technical advisory services.
Business information consulting
services; economic information
consulting services; automobile
information consulting services;
self-management and agency for
the import and export of various
commodities and technologies
89 Research and development,
production of software and related
Room 413-39,
products, sales of self-produced
KeYu (Nanjing) RMB
Commercial Office
products; computer hardware,

Information		 2005.11.10 180,031
Building, Nanjing High-
automotive electronics and its in-
Technology Limited thousand
tech Development Zone vehicle navigation system product
development, technology transfer
and related services
90 Research and development,
production of software and related
Room 413-38,
products; sales of self-produced
TaiFeng ((Nanjing) USD
Commercial Office
products; wholesale, retail and

Software Technology		 2005.11.10 14,850
Building, Nanjing High-
distribution of auto parts and
Limited thousand
tech Development Zone software products; commission
Wen Yang
agency; import and export of self-
Investment
owned and non-ownedproducts
(Samoa) Co., Ltd.
91 Research and development,
production of software and related
products; Research and
development, technology transfer
and related services for computer
Room 413-37,
hardware, automotive electronic
USD
QingTai (NanJing) Commercial Office
products and their in-vehicle
2005.09.28 15,350
Technology Limited Building, Nanjing High-
navigation system products. sales
thousand
tech Development Zone of self-produced products;
wholesale, retail and distribution
of auto parts and software
products; commission agency;
import and export of self-owned
and non-ownedproducts
TaiFeng
((Nanjing)
Software
Technology
Limited		 92 Zhangzhou
Development Zone Yi
Ding Investment Co.,
Ltd.		 2005.12.09 Room 604-4, Building
6, Shanhuyuan, No. 8
Xiangjiang Road,
Zhangzhou
Development Zone		 RMB
55,200
thousand
Investment management and
investment consulting for the
automotive industry and related
industries; consulting services for
the introduction of advanced
international technologies,
products and equipment; computer
software and hardware
development and technical
services and consulting

374 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
93 Zhangzhou
Development Zone
Mei De Investment
Co., Ltd.		 2005.12.09 Room 604-2, Building
6, Shanhuyuan, No. 8
Xiangjiang Road,
Zhangzhou
Development Zone		 RMB
79,500
thousand
Investment management and
investment consulting for the
automotive industry and related
industries; consulting services for
the introduction of advanced
international technologies,
products and equipment; computer
software and hardware
development and technical
services and consulting
94 Investment management and
investment consulting for the
automotive industry and related
Room 604-3, Building
Zhangzhou
industries; consulting services for

6, Shanhuyuan, No. 8		 RMB
Development Shi
the introduction of advanced
2005.12.09
Xiangjiang Road,		 71,830
Cheng Investment Co.,
international technologies,
Zhangzhou thousand
Ltd. products and equipment; computer
Development Zone
software and hardware
QingTai development and technical

(NanJing)		 services and consulting
Technology 95 Investment management and
Limited
investment consulting for the
automotive industry and related
Room 604-1, Building
Zhangzhou
industries; consulting services for

6, Shanhuyuan, No. 8		 RMB
Development Zone Jin
the introduction of advanced
2005.12.09
Xiangjiang Road,		 19,670
Ce Investment Co.,
international technologies,
Zhangzhou thousand
Ltd. products and equipment; computer
Development Zone
software and hardware
development and technical
services and consulting
Zhangzhou
Development
Zone Yi Ding
Investment Co.,
Ltd.		 96 GaoTe (Beijing)
Investment Limited		 2005.12.23 Room 1602, 16th Floor,
Building 3, No. 17,
Zhongguancun South
Street, Haidian District,
Beijing		 RMB
58,000
thousand
Project investment, investment
management, investment
consulting, business management,
market research, marketing
planning, public relations
planning; technical consulting,
technical services
97 Investment management,
GaoTe (Beijing) Room 507, No. 428 RMB
investment consulting (except
HangZhou QienYu

Investment		 2007.09.13 Wensan West Road, 10,000

securities and futures), market
Investment Limited
Limited Xihu District, Hangzhou thousand research; corporate marketing
planning; public relationsplanning
HangZhou
QienYu
Investment
Limited		 98 HangZhou Hsiao Yu
Investment Limited		 2007.10.22 No. 310, North District,
Zhongyu Modern City,
Beigan Street, Xiaoshan
District		 RMB
10,000
thousand
Business investment and all other
legal projects that do not require
approval
99 Room 1603, 16th Floor, Investment management,
Zhangzhou
Building 3, No. 17, RMB
investment consulting (except

Development Shi		 DongTai (Beijing)
2005.12.23 Zhongguancun South 73,200
brokerage); business management,
Cheng Investment Investment Limited
Street, Haidian District, thousand market research; marketing
Co., Ltd.
Beijing planning, public relationsplanning
DongTai (Beijing)
Investment
Limited
100		 HangZhou TangYu
Investment Limited		 2007.09.13 Room 508, No. 428
Wensan West Road,
Xihu District, Hangzhou		 RMB
10,000
thousand
Investment management,
investment consulting (except
securities and futures), business
management consulting, market
research; corporate marketing
planning; public relationsplanning
101 Suites 2302-6, 23/F
Yulon Motor USD
Yulon China Great Eagle Centre, 23
Investment (HK) Co., 2012.01.30 711,803
Investment
Holdings Co. Ltd. Harbour Road,
Ltd. thousand
Wanchai,HongKong

Annual Report 2020 375

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Yulon Motor
Investment (HK)
Co., Ltd.		 102 Yulon Automotive
(China) Investment
Limited		 2012.09.26 Room 123, Science and
Technology Cultural
Center, Linjiang
Industrial Park,
Xiaoshan District,
Hangzhou		 USD
274,940
thousand
Purchase of machinery and
equipment, office equipment, raw
materials and components for
production, and provision of after-
sales services; technical support,
staff training, and internal
personnel management services;
research and development of new
products and high technology; and
provision of consultation services
on market information and
investment policies related to its
investments
103 Xiamen Y.C. Invest.
Consulting Limited		 1995.12.29 Room 8-21-201,
Dongpu Road, Siming
District, Xiamen		 USD
1,860
thousand
Investment advisory services in
the automotive, electronics, textile
and related industries and
consulting services for the
introduction of advanced
international technologies,
products and equipment
104 Luxgen (Hangzhou)
Motor Sales Co., Ltd		 2017.08.15 Room B1-3-007, No.
198, Qidi Road,
Xiaoshan Economic and
Technological
Development Zone,
Hangzhou City,
ZhejiangProvince		 USD434,550
thousand
R&D, design and sales of
passenger cars, their chassis,
engines and parts, commercial
vehicles, sales, import and export
of auto parts and auto supplies
105 Research and development,
manufacturing and sales of
automobile engines, parts and
components and automobile
electronic devices; sales of
complete automobiles. Vehicle
design and development,
technology transfer, technical
consultation and technical
services; system, parts and
components research and
development, manufacturing,
sales, technology transfer,
No. 2688, New Century
technical consultation and
Chuang Jie New
Avenue, Linjiang High-		 RMB technical services; agent for the

Energy Vehicle (HZ)		 2018.09.10
tech Industrial Park,		 790,000

import and export of new energy
Limited Hangzhou, Zhejiang thousand goods and technologies. Vehicle
Yulon
Province charging module sales; new
Automotive
materials technology promotion
(China)
services; charging pile facilities
Investment
installation; vehicle energy-saving
Limited
technology promotion services.
Internet of things technology
research and development; vehicle
engineering technology research
and development; agent for the
import and export of machinery
and equipment (except for those
involving the implementation of
special management measures for
state access)
106 Investment consulting (except
No. 100, Fangshan
brokerage); business management;

Science and Technology		 RMB
marketing planning, public
Sheng Qing (Beijing)
2005.12.23
Industrial Park,		 1,239,671
relations planning; technical
Investment Limited
Fangshan District, thousand consulting (except brokerage),
Beijing technical services; technology
import and export

376 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Sheng Qing
(Beijing)
Investment
Limited		 107 SuZhou FengShen
Automobiles. Sale &
Service Limited		 2000.10.23 1268 Donghuan South
Road, Guoxiang,
Wuzhong District,
Suzhou City		 RMB
48,000
thousand
Sales: Dongfeng Nissan brand
cars, imported Nissan brand cars,
cars and accessories, motorcycles
and accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
products, construction materials,
non-hazardous chemical products;
lubricants; used car dealership; car
licensing services; car rental; type
I vehicle maintenance (small
passenger cars); motor vehicle
insurance part-time agent; car
information consulting services;
business information consulting
services. Economic information
consultingservices
108 Dongfeng Nissan brand vehicles;
sales of automobiles and auto
parts, motorcycles and parts, metal
materials, hardware and electrical
appliances, electrical and
mechanical products, construction
materials, chemical products
(except dangerous chemicals);
used car replacement; car leasing,
car licensing procedure agency
services; type II car repair
South of Jiangling North
(passenger cars); technical
Suzhou ChengBang
Road, Wujiang
RMB

consultation and technical services
Automobiles Sales & 2013.11.21 Economic and 10,000

in the field of automobile
Service Limited Technological thousand
technology; self-supporting and
Development Zone
acting as an agent for the import
and export of various goods and
technologies Automobile
information consulting services;
business information consulting
SuZhou FengShen services; economic information

Automobiles. Sale
consulting services; social and
& Service economic consulting; wholesale
Limited and retail of lubricating oil and
motor oil (closed cup flash point
>60C)
109 Sales: automobiles and
accessories, motorcycles and
accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
products, construction materials,
lubricants, non-hazardous
chemicals; used car dealership; car
Suzhou Eslite No. 149, Luzhi Avenue, RMB

licensing procedures; car rental;
Automobiles Sales & 2013.07.18 Luzhi Town, Wuzhong 40,000

motor vehicle repair and technical
Service Limited District, Suzhou City thousand
consulting services, business
information consulting services;
economic information consulting
services; automotive information
consulting services; self-
supporting and acting as an agent
for the import and export of
variousgoods and technologies

Annual Report 2020 377

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
110 Sales: automobiles and
accessories, motorcycles and
accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
products, construction materials,
chemical products (excluding
dangerous goods), motor oil,
lubricating oil; type I complete
vehicle repair (passenger cars);
motor vehicle insurance agency;
automobile licensing procedures
Suzhou YuShun 98 Fengrui Road, Mudu RMB

on behalf of the service; car rental;
Automobiles Sales & 2009.11.12
Town, Wuzhong		 10,000

automobile class technical advice,
Service Limited District, Suzhou City thousand
technical services and related
consulting services; automotive
information consulting, business
information consulting, economic
information consulting; self-
employment and agency of various
technologies and commodities
import and export business.
Economic information consulting;
self-management and agency
import and export of various
technologies and commodities
111 Distribution of automobiles and
accessories, motorcycles and
accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
TaiTsang ChengMao RMB products, construction materials,
16 Ningbo West Road,

Automobiles Sales &		 2014.08.21 10,000

non-hazardous chemical products;
Taicang City
Service Limited thousand used car dealership; agent car
licensing services; car rental; car
repair and maintenance;
commodity consulting services;
trade consulting; distribution of
lubricatingoil
112 Sales: cars, auto parts, motorcycles
and accessories, metal materials,
hardware, electrical and
mechanical products, construction
materials, non-hazardous chemical
products, motor oil, lubricating oil;
type I vehicle repair (small cars);
motor vehicle insurance agency;
136 East Zhongshan
Suzhou FengShun RMB
used car dealership; car licensing
Road, Mudu Town,

Automobiles Sales &		 2012.11.07 25,000

procedures; car rental; automotive
Wuzhong District,
Service Limited thousand technical advice, technical services
Suzhou City
and related consulting services,
automotive information
consulting, business information
Consulting, economic information
consulting. Direct operation and
agent for import and export of
various commodities and
technologies

378 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Suzhou FengShun
Automobiles
Sales & Service
Limited
113		 Wu Jiang Lian Cheng
Automobiles Sale &
Service Limited		 2007.09.28 Northeast of Pingwang
Bridge, Zhonglu
Village, Pingwang
Town, Wujiang, Suzhou
City		 RMB
10,000
thousand
Sales of automobiles and auto
parts, imported automobiles and
parts, motorcycles and parts, metal
materials, hardware and electricity,
construction materials, motor oil,
lubricating oil; type I auto repair
(passenger cars); insurance agency
(limited to the scope of the
license); used car replacement;
motor vehicle licensing services;
car rental; technical advice and
technical services in the field of
automotive technology; catering
services; automotive information
consulting services; business
Information consulting services;
economic information consulting
services; self-management and
agency import and export business
of various commodities and
technologies
114 Suzhou ChengLi
Automobile Sales &
Service Limited		 2011.08.17 136 East Zhongshan
Road, Mudu Town,
Wuzhong District,
Suzhou City		 RMB
15,000
thousand
Sales: automobiles, motorcycles
and accessories, metal materials,
hardware and electrical appliances,
electrical and mechanical
products, construction materials,
non-hazardous chemical products,
motor oil, lubricating oil;
automobile licensing procedures
agency services; automobile
leasing; automotive technical
advice, technical services and
related consulting services;
automotive information
consulting, business information
consulting, economic information
consulting; self-management and
agency of various technologies
and commodities import and
export business
115 Sales of Dongfeng Luxgen brand
33#, East Building 2,
vehicles. General business items:
Anqing Cai Tong
Phase I, Guangcai		 RMB car sales (excluding brand cars)

Automobiles Sales &		 2012.07.12
Market, Development		 27,417

and after-sales services; auto parts
Service Limited Zone, Anqing City, thousand sales; insurance agency services;
Anhui Province car mortgage consulting services;
car rental services
116 20# Workshop of Anhui Luxgen brand car sales, auto parts,
South Vehicle Industry lubricants, electrical and
Co., Ltd. at the mechanical products, car beauty
Sheng Qing
Anhui Min Tong intersection of Fanhua RMB
supplies sales; car decoration
(Beijing)
Automobiles Sales & 2011.07.01 Avenue and Tianjin 28,502
(excluding car beauty); used car
Investment
Service Limited Road, Baohe Economic thousand trading, car rental; type I motor
Limited
Development Zone, vehicle repair; vehicle affairs,
Hefei City, Anhui insurance affairs agency and
Province consulting
117 Dongfeng Citroen brand car sales,
Gusheng Community
auto parts, lubricating oil,
Neighborhood
Tongling Kuo Tong RMB
electrical and mechanical products
Committee, Qiaonan

Automobiles Sales &		 2010.08.27 16,913

sales, car decoration, auto parts
Office, Suburb,
Services Limited thousand agency services, used car
Tongling City, Anhui
dealership, type II motor vehicle
Province
repair(small vehicle repair)

Annual Report 2020 379

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
118 Sales of automobiles, second-
handed cars, auto parts, lubricating
No. 212, Shanquan
Zibo Yu An RMB
oil, auto equipment; auto beauty;
Road, Zhangdian
Automobiles Sales & 2015.04.14 15,440
auto repair and maintenance;
District, Zibo City,
Services Limited thousand convention services; second-
Shandong Province
handed car appraisal and
evaluation;auto leasing
119 Auto parts and accessories
wholesale; auto parts and
Guangzhou YuanDou No. 1, Helianbei Road, RMB
accessories retail; commodity
Automobile Sales & 2006.10.16 Zhucun, Tianhe District, 35,000
information consulting services;
Service Limited Guangzhou thousand auto repair and maintenance;
insurance agency services; brand
car sales
120 Wholesale and retail of branded
cars, motor vehicle parts and
accessories, steel, chemical
products (excluding dangerous and
easily toxic chemicals), household
appliances, daily necessities; used
Zhu Hai FuTeEn No. 123, Huayu Road, RMB

car sales; car leasing; complete
Industry & Trade 2003.04.29
Xiangzhou District,		 35,200

vehicle repair, total repair,
Limited Zhuhai City thousand
complete vehicle maintenance,
minor repair, special repair; motor
vehicle insurance agency (permit
valid until December 23, 2012);
business services (excluding
licensed items)
Guangzhou
YuanDou
Automobile Sales
& Service
Limited		 121 Qingdao YuanHuang
Automobiles Sales &
Services Limited		 2011.01.26 West side of Qingwei
Road, Chengyang
District, Qingdao		 RMB
50,000
thousand
Motor vehicle repair, total repair,
vehicle maintenance, minor
repairs, repair and rescue; special
repair (motor vehicle repair
business permit The validity
period is subject to the permit).
Sales: cars and their auto parts;
auto technical consulting services;
auto information consulting
services;surrogate car registration
122 Wholesale and retail of branded
cars, motor vehicle parts and
accessories, steel, chemical
products (excluding dangerous and
easily toxic chemicals), household
appliances, daily necessities; used
Zhu Hai FuTeEn ZhuHai Esinn Room 101, 1st Floor, RMB
car sales; car leasing; business
Industry & Trade Automobiles Sales & 2009.10.16 No. 2, Minghua 3rd 25,200

services (excluding licensed
Limited Service Limited Road, Qianshan, Zhuhai thousand items); complete vehicle repair,
total repair, complete vehicle
maintenance, minor repair, special
repair, repair and rescue (permit
valid until May 6, 2016), motor
vehicle insurance agency (permit
valid until June 16,2013)

380 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
123 General business items are: the
sale of cars (including small cars),
auto parts and other domestic trade
(laws, administrative regulations,
the State Council decided to
require approval before
registration, except for items); the
establishment of industrial
Shenzhen Yuzhi No. 7028 B, Beihuan RMB (specific projects are separately
Automobile Sales & 2011.07.18 Avenue, Futian District, 20,000
reported); used car sales; car
Service Limited Shenzhen thousand leasing; information consulting
and licensing; marketing planning;
own housing rental; accept
financial institutions entrusted to
engage in financial outsourcing
services;. Import and export
business. Permitted business items
are: motor vehicle insurance; type
II vehicle repair
Sheng Qing
(Beijing)
Investment
Limited		 124 Wuhan Yu Hsin
Automobiles Sales &
Service Limited		 2007.09.12 No. 1 Gongnong Road,
Qiaokou District,
Wuhan City, Hubei
Province		 RMB
100,000
thousand
Dongfeng Nissan brand car sales,
imported Nissan brand car sales;
auto parts, daily necessities
wholesale and retail; old motor
vehicle trading (excluding old
motor vehicle evaluation),
consulting and dealer services; car
rental, small vehicle maintenance
(type I); motor vehicle insurance
dealer
125 Sales of branded cars; wholesale
Wuhan Yu Hsin Fairy Lake East Road,
Xiaogan Yufeng RMB and retail of auto parts, daily
Automobiles Xiaonan Economic

Automobile Sales		 2011.05.16 32,000

necessities, trading of used motor
Sales & Service Development Zone,
Service Co., Ltd. thousand vehicles, type I (small vehicle
Limited Xiaogan City
repair),consultingservices
Sheng Qing
(Beijing)
Investment
Limited		 126 NanJing HanHong
Automobiles Trading
Limited		 2003.09.27 228 Mufu East Road,
Yanziji Street, Qixia
District, Nanjing		 RMB
131,000
thousand
Type I car repair (small vehicles);
car, imported brand car sales; auto
parts, lubricants, daily necessities,
hardware and electricity sales;
used car broker; agent motor
vehicle insurance; economic
information consulting;car rental
127 Motor vehicle type I repair
(passenger cars); accidental injury
insurance; motor vehicle
Nanjing YuShang 9-8 Yanshan East Road, RMB

insurance; sales of automobiles,
Automobile Sales & 2011.08.31 Taishan Street, Jiangbei 38,000

auto parts, daily necessities,
Service Limited New District, Nanjing thousand
hardware and electricity; lubricant
NanJing
sales; used car brokerage; business
HanHong
information consulting;car rental
Automobiles 128 Automobile, auto parts, daily
Trading Limited
Room 410, Building 8,
department store, lubricant,
Nanjing HanHong
No. 18 Fenghua Road,		 RMB
hardware and electricity sales;

Automobile Sales &		 2013.09.22
Yuhua Economic		 44,000

used car brokerage; social and
Service Limited Development Zone, thousand economic consulting (except
Nanjing investment consulting); car rental
service;motor vehicle repair

Annual Report 2020 381

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
Sheng Qing
(Beijing)
Investment
Limited		 129 HangZhou Yu Zhong
Trading Limited		 2007.09.25 Room 105, No. 69,
Quzhou Street, Gongshu
District, Hangzhou		 RMB
10,000
thousand
Wholesale, retail and design of
automotive parts and molds;
wholesale, retail and technical
development of mechanical
equipment and electronic products;
import and export of goods and
technologies (except for items
prohibited by laws and
administrative regulations; items
restricted by laws and
administrative regulations may be
operated only after obtaining a
permit); all other legal items not
subject to approval
130 Hangzhou HuaZhi
Automobile Sales &
Service Limited		 2011.05.20 520 Huzhou Road,
Gongshu District,
Hangzhou City,
Zhejiang Province		 RMB
20,000
thousand
Luxgen brand car sales (excluding
wholesale); motor vehicle repair:
Type II motor vehicle repair (small
vehicle repair); motor vehicle
insurance, accident insurance; car
rental; auto parts, motorcycles and
accessories, metal materials,
hardware, electrical and
mechanical products, construction
materials, chemical products
(except chemical dangerous goods
and toxic chemicals), used cars
(commercial vehicles and
passenger cars with nine seats or
more only)Sales

131		 Motor vehicle repair: Type II
motor vehicle repair (small vehicle
Room 2004-32,
repair); Luxgen brand car sales;
Qianjiang Century City
sales: nine seats and more than
Smart Technology Park,
nine seats left with cars, auto parts,
Building 1, Zhejiang
Hangzhou HuaZhi
motorcycles and accessories, metal
Hangzhou HuaYou
Private Enterprise

Automobile Sales		 RMB
materials, hardware and electricity,

Automobile Sales &		 2011.09.05
Development Building,
& Service 8,000 thousand electrical and mechanical
Service Limited No. 3 Fuye Lane,
Limited products, construction materials,
Ningwei Street,
chemical products (except
Xiaoshan District,
chemical dangerous goods and
Hangzhou City,
easily toxic chemicals),
Zhejiang Province
automotive agency services; used
car dealership;car rental
Sheng Qing
(Beijing)
Investment
Limited		 132 Jiangmen Junxing
Automobile Sales
Service Co., Ltd.		 2007.04.09 119 Wuyi Road,
Jiangmen City		 RMB
20,000
thousand
As a brand dealer of Guangzhou
Honda Motor brand cars and
import Honda brand cars, engaged
in the sale (excluding wholesale)
of the above brands of cars.
Engaged in the wholesale and
retail of automotive parts
(excluding engines). Type II motor
vehicle maintenance (small vehicle
maintenance) (operating with a
valid “road transport operating
permit“). Agency: motor vehicle
insurance (operating with a valid
“insurance agency business
license“). Used car sales and
brokerage business (excluding
used car dismantling and appraisal
and evaluation). Acting on behalf
of motor vehicles annual audit,
licensing, transfer, mortgage
procedures; car rental services
(excludingcar operation)

382 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
133 Sales: cars, auto parts; motor
vehicle repair (with a valid “road
Jiangmen Junxing Jiangmen YuLi Building 1, No.119, RMB
transport operating permit“ to
Automobile Sales Automobiles Sales & 2014.03.26 Wuyi Road, Jianghai 10,000
operate); used car sales; used car
Service Co., Ltd. Service Limited District, Jiangmen City thousand brokerage services; on behalf of
the motor vehicle annual audit,
licensing,transferprocedures
Sheng Qing
(Beijing)
Investment
Limited		 134 Changsha Yulu
Automobile Sales &
Service Limited		 2012.04.13 D-06, Lugu Auto World,
No. 9 Jiayun Road,
Lugu Street, Changsha
High-tech Development
Zone
RMB
31,800
thousand
Sales of branded cars, small cars
with less than nine seats, auto
supplies, auto interior supplies;
used car business; auto retail; auto
parts retail; auto-related technical
consulting services; auto leasing;
auto repair; auto repair technical
consulting; venue leasing;
machineryand equipment leasing
135 Ningbo Yu Chang
Automobile Sales
Service Co., Ltd.		 2011.5.30 No. 885, Huancheng
South Road, Yinzhou
District, Ningbo City,
Zhejiang Province		 RMB
44,700
thousand
Luxgen brand car sales, Southeast
Mitsubishi brand car sales; motor
vehicle insurance, accidental
injury insurance agent. Motor
vehicle repair (the above with a
valid permit to operate);
commercial vehicles and
passenger cars with nine seats or
more sales; auto parts, motorcycle
parts, metal materials, hardware
and electricity, electrical and
mechanical products, construction
materials, chemical products
wholesale and retail; used car
dealership; agent car licensing
services; car rental; business
information consultingservices
136 Fujian YuXin
Automobiles Sales &
Service Limited		 2011.04.29 No. 3 Xiangtong Road,
Qingkou Investment
Zone, Minhou County,
Fujian Province		 RMB
52,000
thousand
Sales of automobiles, auto parts,
vehicle daily necessities and
lubricants; used car dealership,
auto technology-related research
and development and consulting
services; one type of auto repair
(passenger car repair)
137 Shanghai Yumin
Automobiles Sales &
Service Limited		 2011.01.27 Room 222-U, 2nd Floor,
Area B, Building 6,
No.255 Hongliu Road,
Putuo District, Shanghai
RMB
72,792
thousand		 Engaged in the sale of brand-name
cars; commercial vehicles and
passenger cars with more than nine
seats; wholesale and retail of daily
necessities, auto parts and
accessories; repair of type II motor
vehicles;rental of own houses
138 Wholesale and retail of
automobiles, daily necessities,
Exhibition Hall 3,
auto parts and accessories; auto
Shanghai Yumin
ChiaHsing YuTa Yuantong Automobile RMB
consulting; licensing services;
Automobiles

Automobiles Sales &		 2014.07.23
Shop, Jiaxing		 18,000

used car brokerage services; auto
Sales & Service
Service Limited Automobile Trade Park, thousand leasing services; auto technical
Limited
Zhejiang Province consulting services; entrusted with
auto mortgage services; motor
vehicle repair
YULON MOTOR
CO.,LTD
139		 Y-Teks Co., Ltd. 1973.12.28 No. 1,Shanping
Rd.,Zhongli Dist.,
Taoyuan City		 177,100 Computer and peripheral
equipment manufacturing industry,
automobile and parts
manufacturingindustry,etc.

Annual Report 2020 383

Special Notes

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
140 P.O.BOX957,
OFFSHORE
YU HSIN INT'L INCORPORATIONS
USD
Y-Teks Co., Ltd. INVESTMENT (BVI) 2002.07.02 CENTRE, ROAD Holding company
3,347 thousand
CO., LTD. TOWN, TORTOLA,
BRITISH VIRGIN
ISLANDS'
YU HSIN INT'L
INVESTMENT
(BVI)CO.,LTD.
141		 YU HSIN INT'L
INVESTMENT (HK)
CO.,LTD.		 2008.04.28 1004 AXA Centre, 151
Gloucester Road, Wan
Chai,HongKong		 USD
12,391
thousand
Holding company
142 Production of mid- and high-end
Changzhou Y-Teks 833 Laodong East Road,
automotive engineering plastics
USD

Automotive Trim Parts		 1995.12.15
Tianning District,
and plastic alloys and other
1,400 thousand
Limited Changzhou City interior parts and materials, and
YU HSIN INT'L
sales of self-producedproducts
INVESTMENT
143 No. 926-180, Linlong
(HK) CO., LTD.
Hangzhou Y-teks
Road, Linjiang High-		 USD Design, development,
Automotive Trim Parts 2010.01.13 tech Industrial Park, 10,450
manufacturing and sales services
Lt Dajiangdong Industrial thousand of automotive interior components
Cluster,Hangzhou
YULON MOTOR
CO.,LTD
144		 Uni Auto Parts
Manufacture Co., Ltd		 1969.09.04 No. 40-
10,Bogongkeng,Sanyi
Township, Miaoli
County		 868,892 Manufacture and sale of various
motor vehicle springs and their
products
145 P. O. Box 957, Offshore
Uni Auto Parts
Uni Investment Co., Incorporations Centre USD
Manufacture Co., 1998.06.25 Holding company
Ltd. Road Town, Tortola, 8,403 thousand
Ltd
British Virgin Islands.
Uni Investment
Co., Ltd.		 146 Fuzhou Lianghong
Motor Parts Limited		 1995.12.19 Fuzhou Minhou
Qingkou Investment
Zone (Southeast
Automobile City)		 USD
13,980
thousand
Manufacture and sale of car seats,
etc.
147 HANG ZHOU LIAN
RUN MOTOR PARTS
CO.,LTD		 2010.03.24 No. 926-118, Linlong
Road, Linjiang High-
tech Industrial Park,
Dajiangdong Industrial
Cluster, Hangzhou,
ZhejiangProvince		 USD
22,500
thousand
Manufacture and sale of car seats,
etc.

148		 No. 39-
Sale and purchase of automobiles
YULON MOTOR Luxgen Motor Co., 1,Bogongkeng,Sanyi
2008.05.29 6,050,000
and parts, repair and maintenance
CO.,LTD Ltd. Township, Miaoli
of automobiles
County
Luxgen Motor
Co., Ltd.		 149 Luxgen Taipei Motor
Co., Ltd.		 2009.03.11 No. 59, Ln. 10,Jihu
Rd.,Neihu Dist., Taipei
City		 185,000 Sale and purchase of automobiles
and parts, repair and maintenance
of automobiles
159 Luxgen Taoyuan
Motor Co., Ltd.		 2009.03.10 No. 256,Zhonghua
Rd.,Bade Dist., Taoyuan
City		 105,000 Sale and purchase of automobiles
and parts, repair and maintenance
of automobiles
151 Luxgen Taichung
Motor Co., Ltd.		 2009.03.10 No. 618,Wenxin S.
Rd.,South Dist.,
Taichung City		 106,000 Sale and purchase of automobiles
and parts, repair and maintenance
ofautomobiles
152 Luxgen Tainan Motor
Co., Ltd.		 2009.03.12 No. 546,Zhongzheng S.
Rd.,Yongkang Dist.,
Tainan City		 105,000 Sale and purchase of automobiles
and parts, repair and maintenance
of automobiles
153 Luxgen Kaohsiung
Motor Co., Ltd.		 2009.03.23 No. 1, Sec. 2, Guangfu
Rd., Fengshan Dist.,
Kaohsiung City		 71,000 Sale and purchase of automobiles
and parts, repair and maintenance
of automobiles

154		 No. 27,Gongyequ 36th Sale and purchase of automobiles
YULON MOTOR EMPOWER MOTORS
2000.01.07
Rd.,Xitun Dist.,		 300,000
and parts, repair and maintenance
CO.,LTD CO.,LTD.
TaichungCity of automobiles

384 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.
Paid-up Capital
Investing Incorporation
Unit:

Enterprise Name
Address		 Primary Business or Product
Company Date Thousands of
NTD
EMPOWER
MOTORS
CO.,LTD.		 155 Chi Min Business Co.,
Ltd.		 2011.02.16 No. 385, Sec. 4,
Huanzhong Rd., Nantun
Dist., Taichung City		 8,000 Wholesale and retail of automobile
and motorcycle parts and
equipment, computer and business
machines and equipment, and
information software
156 Hongyan Automobile
Co., Ltd.		 2010.12.15 Portcullis TrustNet
Chambers, P.O. Box
1225, Apia, SAMOA		 190,063 Holding company
157 Yumin Inurance
Broker Co., Ltd		 2013.12.11 3F., No. 1161, Sec. 2,
Wuquan W. Rd., Nantun
Dist.,Taichung City
5,000		 Property and Liability Insurance
Broker
158 Mingxiang Auto
Leasing Corporation		 2020.07.08 4F., No. 1161, Sec. 2,
Wuquan W. Rd., Nantun
Dist., Taichung City
30,000		 Car and Motorcycles and parts,
tires wholesale and retail, small
passenger car rental

159		 Hna-Chuang Automobile product design
2F., No. 3,Sec. 3,
YULON MOTOR
Automobile
business and parts manufacturing,
2005.12.27 Zhongxing Rd.,Xindian 12,701,001
CO.,LTD Information Technical wholesale and retail, and
Dist., New Taipei City
CenterCo.,Ltd. management consulting
Hna-Chuang
Automobile
Information
Technical Center
Co., Ltd.		 160 Sin Etke Technology
Co., Ltd..		 1999.12.29 2F., No. 3,Sec. 3,
Zhongxing Rd.,Xindian
Dist., New Taipei City		 500 Automobile parts and components
wholesale, information software
wholesale, services and electronic
information supply services, etc.
161 Hua-Chuang Overseas
Investment Co., Ltd.		 2012.07.13 Palm Grove House, P.O.
Box 438, Road Town,
Tortola, British Virgin
Islands		 490,393 Investment
Hua-Chuang 162 15/F BOC Group Life

Overseas		 Hua-chuang China
Assurance Tower, 136
2012.08.29 461,709 Investment
Investment Co., Investment Co., Ltd. Des Voeux Rd Central,
Ltd. Central, Hong Kong
Hua-chuang
China Investment
Co., Ltd.		 163 Hangzhou Hua-chuang
Automobile Informati		 2012.11.28 No.407, Building No.2,
Nong Erchang, Linjiang
Industrial Park,
Xiaoshan District,
Hangzhou City,
Zhejiang Province		 USD15,500
thousand
Automobile parts and components
research and development;
automotive parts and components
retail; technical services,
technology development,
technology consulting, technology
exchange, technology transfer,
technology promotion; domestic
freight forwarding agent;
international freight forwarding
agent

  1. Shareholders representing both holding companies and subordinates: None

  2. Industries covered by all the affiliates (Please describe the business relationship and the division of work among the affiliates, if any): Please refer to Item 1 and Item 2 for details

Annual Report 2020 385

Special Notes

  1. Names of directors, supervisors and presidents of affiliated enterprises and their shareholdings or capital contributions to such enterprises (as of December 31, 2020)
Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
1











 Taiwan Acceptance
Corporation
Chairman
Vice Chairman
Director

Director
Director (and
President)
Director
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director		 YULON MOTOR CO.,LTD
Yen Chen Li-Lien
Kuo-Rong Chen
Zhen-Xiang Yao
Yulon-Administered Enterprises Company Limited
Wen-Jung Tsai
Kuo-Hsing Hsu
Chen-Cheng Li
Liang Zhang
Jiqing Chen
Yi-Hong Hsieh
Zhongqi Zhou
Huang Gao-Qian		 152,044,446



12,100
45.75




-
2 Shinshin Credit Corporation Taiwan Acceptance Corporation 221,833,300
100.00
Chairman Kuo-Hsing Hsu
Director Fa-ke Chen
Director (and
Yuan-Lung Chueh
President)
Supervisor Shu-hua Liao
3








 Carplus Auto Leasing
Corporation
Chairman
Director (and
President)
Director
Director
Director

Supervisor

Supervisor		 Taiwan Acceptance Corporation
Kuo-Hsing Hsu
Jun Chen
Qing-yuan Bai
Chen Zong-Yu
Chun-Chieh Chang
Ruiyi Investment Co., Ltd.
Chen Zhi-Long
YULON MOTOR CO.,LTD
Wen-Yi Lo		 64,570,378





7,040,418

3,254,036
68.57






7.48


3.46
4 Yu Rich Financial Services Taiwan Acceptance Corporation 138,209,150
100.00
Co., Ltd. Chairman Kuo-Hsing Hsu
Director Zhuang Yi-Xue
Director Fa-ke Chen
Supervisor Shu-hua Liao
5







 Yulon Motor Finance
(China) Limited
Director
Director
Supervisors

Chairman
Director (and
President)
Director
Supervisors		 YULON MOTOR CO.,LTD
Chin-Chuan Chen
Shi-hao Fang
Yuan-long Chen
Taiwan Acceptance Corporation
Fa-ke Chen
Chun-Cheng Lin
Kuo-Hsing Hsu
Shu-hua Liao		 RMB 510,000
thousand



RMB 490,000
thousand

51.00





49.00
6 Shin Shin Investment USD 12,000
Shinshin Credit Corporation

100.00
(Samoa) Co., Ltd. thousand*
Director Kuo-HsingHsu
7

 YES-Energy Service Co.,
LTD.
Chairman
Director		 Shinshin Credit Corporation
Kuo-Hsing Hsu
Yuan-LungChueh		 29,000,000
100.00

386 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)






Director
Director
Director
Supervisor		 Chen-xing Zhu
Wei-Ting Yang
Chia-Chi Li
Shu-hua Liao





8 Power Engineering Co., YES-Energy Service Co., LTD. 200,000
100.00
LTD. Chairman Xiuzhi Gao
Director Wong Pak-Tong
Director Jing-Wei Lin
Supervisor Jian-Wen Wang
9
 Yulon Finance Overseas
Invenstment (Samoa) Co.,
Ltd.
Director		 Taiwan Acceptance Corporation
Kuo-Hsing Hsu		 USD 15,000
thousand*

100.00
10 Yulon Finance Philippines Yulon Finance Overseas Invenstment (Samoa) Co.,
USD 15,000


100.00
Invenstment (Samoa) Co., Ltd. thousand*
Ltd. Director Kuo-Hsing Hsu
11






 Yulon Finance Philippines
Co., Ltd
Chairman
Director (and
President)
Director
Director
Director
Independent
Director
Independent
Director		 Yulon Finance Philippines Investment (Samoa)
Co., Ltd.
Kuo-Hsing Hsu
Mingqi Hu
Hsiang Tseng
Shu-hua Liao
Zhiling Zhan
Charles Kohchet-Chua
Rene K. Limcaoco		 PHP 750,000
thousand*

100.00
12 TAC Global Investment Taiwan Acceptance Corporation USD 108,833 100.00
(Samoa)Co.,Ltd. Director Kuo-HsingHsu thousand*
13
 Yu Rong International
Investment (SAMOA) Co.,
Ltd.
Director		 TAC Global Investment (Samoa) Co., Ltd.
Kuo-Hsing Hsu		 USD 87,496
thousand*

100.00
14 Yu-Rong Leasing (Suzhou) Yu Rong International Investment (SAMOA) Co., RMB 500,000


100.00
Limited Ltd. thousand*
Chairman (and
Fu-Hsiung Liu
President)
Director Kuo-Hsing Hsu
Director Yuan-Lung Chueh
Director Fa-ke Chen
Director Xiao Yong-Lin
Supervisor Shu-hua Liao
15







 Yu-Kuo Finance Leasing
(Hangzhou) Limited
Chairman
Director
Director
Supervisors

Director

Director		 Yu Rong International Investment (SAMOA) Co.,
Ltd.
Fa-ke Chen
Chun-Cheng Lin
Kuo-Hsing Hsu
Shu-hua Liao
Shin Shin Investment (Samoa) Co., Ltd.
Wen-zheng Liao
Yulon Automotive (China) Investment Limited
Chin-Chuan Chen		 USD 12,000
thousand




USD 12,000
thousand

USD 6,000
thousand*

40.00






40.00



20.00
16 Shanghai YuGuo Auto Trade RMB 2,000

Yu-Kuo Finance Leasing (Hangzhou) Limited

100.00
Co., Ltd. thousand*
Managing director Ching-Yu Tsai
Supervisors Huang Hung
17



 Zhejiang Cheng Yi
Automobile Technology
Service Co., Ltd
Chairman
Director
Director
Supervisors		 Yu-Kuo Finance Leasing (Hangzhou) Limited
Wen-zheng Liao
Chun-Cheng Lin
Yu-Long Zhang
Ching-Yu Tsai		 RMB 20,000
thousand*

100.00

Annual Report 2020 387

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
18 Hangzhou Cheng Yi second Zhejiang Cheng Yi Automobile Technology RMB 1,500


100.00
- hand car identification Service Co.,Ltd thousand*
assessment Limited Managing director Yu-Long Zhang
Supervisors Ching-YuTsai
19

 Zhejiang Cheng Yi auction
Ltd.
Director (and
President)
Supervisors		 Zhejiang Cheng Yi Automobile Technology
Service Co., Ltd
Yu-Long Zhang
Ching-YuTsai		 RMB 2,000
thousand*

100.00
20 Wuhan TAC Auto Trade Zhejiang Cheng Yi Automobile Technology RMB 2,000


100.00
Co., Ltd. Service Co., Ltd thousand*
Director (and
Yu-Long Zhang
President)
Supervisors Ching-YuTsai
21
 Diamond Auto Service Co.,
Ltd.
Chairman		 Carplus Auto Leasing Corporation
Jun Chen		 8,500,000
100.00
22 Da Wei Technology Co., Ltd Carplus Auto Leasing Corporation 4,000,000
100.00
Chairman Chi-Mu Hsu
23
 Hong Shuo Cultural
Enterprises Co.,Ltd.
Chairman (and
President)		 Carplus Auto Leasing Corporation
Jun Chen		 4,050,000
100.00
24 CAR-PLUS Global USD 31,200
Carplus Auto Leasing Corporation

100.00
Investment (Samoa) Co., thousand*
Ltd. Director JunChen
25

 CAR-PLUS China
Investment
(Samoa) Co., Ltd
Director
 CAR-PLUS Global Investment
Jun Chen
TAC Global Investment		 USD 6,000
thousand

USD 4,000
thousand

60.00



40.00
26 CAR-PLUS Shanghai USD 6,000
CAR-PLUS Global Investment

60.00
Investment (Samoa) Co., thousand*
Ltd. Director Jun Chen
USD 4,000
TAC Global Investment

40.00
thousand*
27

 CAR-PLUS Hangzhou
Investment (Samoa) Co., Ltd
Director
 CAR-PLUS Global Investment
Jun Chen
TAC Global Investment		 USD 19,200
thousand
USD 12,800
thousand

60.00

40.00
28 CAR-PLUS Auto Leasing USD 10,000
CAR-PLUS China Investment (Samoa) Co., Ltd

100.00
(Suzhou) Limited thousand*
Chairman (and
Jun Chen
President)
Director Keyu Lin
Director Guo Ting-Fei
Director Fu-Hsiung Liu
Director Chun-Cheng Lin
Supervisors Shu-hua Liao
Supervisors Xinzhen Lin
29






 CAR-PLUS Auto Leasing
(Shanghai) Limited
Chairman (and
President)
Director
Director
Director
Director
Supervisors
Supervisors		 CAR-PLUS Shanghai Investment (Samoa) Co.,
Ltd
Jun Chen
Guo Ting-Fei
Keyu Lin
Fu-Hsiung Liu
Chun-Cheng Lin
Xinzhen Lin
Shu-hua Liao		 USD 10,000
thousand*

100.00
30 CAR-PLUS GO Co., Ltd. CAR-PLUS Hangzhou Investment (Samoa) Co., USD 32,000


100.00
Ltd thousand*

388 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Chairman (and
Jun Chen
President)
Director Chin-Chuan Chen
Director Qingya Chen
Director Po-An Lai
Director Weimin Pan
Supervisors Xinzhen Lin
31
 Xie Guan Manpower Service
Co., Ltd.
Chairman		 Diamond Auto Service Co., Ltd.
Jun Chen		 1,000,000
100.00
32 Ta Teng Transportation NTD 6,000
Director Da Wei Technology Co., Ltd
100.00
Co.,Ltd. thousand*
33 Dachuan Transportation Co.,
Ltd.		 Director Da Wei Technology Co., Ltd NTD 3,000
thousand*
100.00
34 Damu Transportation Co., NTD 6,000
Director Da Wei Technology Co., Ltd
100.00
Ltd. thousand*
35 Dajun Transportation Co.,
Ltd.		 Director Da Wei Technology Co., Ltd NTD 3,000
thousand*
100.00
36 Yongxiang Transportation NTD 3,000
Director Da Wei Technology Co., Ltd
100.00
Co., Ltd. thousand*
37 Guoma Transportation Co.,
Ltd.		 Director Da Wei Technology Co., Ltd NTD 4,000
thousand*
100.00
38 Jinyu Transportation NTD 3,000
Director Da Wei Technology Co., Ltd
100.00
Enterprise Co., Ltd thousand*
39 Zhongxing Automobile Co.,
Ltd.		 Director Da Wei Technology Co., Ltd NTD 3,500
thousand*
100.00
40 NTD 9,000
Liyang Automobile Co., Ltd. Director Da Wei Technology Co., Ltd
100.00
thousand*
41 Heyang Transportation Co.,
Ltd.		 Director Da Wei Technology Co., Ltd NTD 6,000
thousand*
100.00
42 Jiayu Transportation NTD 3,000
Director Da Wei Technology Co., Ltd
100.00
Enterprise Co., Ltd thousand*
43 Tianyang Transportation
Co., Ltd.		 Director Da Wei Technology Co., Ltd NTD 6,000
thousand*
100.00
44 Singan Co., Ltd. Taiwan Acceptance Corporation 21,004,499
73.26
Chairman Kuo-Hsing Hsu
Vice Chairman Wen-zheng Liao
Director Yu-Cho Hsieh
Director Shun-Chi Tsai
Director (and
Shun-Yen Hung
President)
Luxgen Motor Co., Ltd. 5,669,791
19.78
Supervisor Yuan-long Chen
45



 Sinqual Technology Co.,Ltd.




Chairman (and
President)
Director
Director
Supervisor		 Singan Co., Ltd.
Shun-Yen Hung
Wen-zheng Liao
Chang-Lin Wu
Lu Yu-Xuan		 13,000,000
100.00
46 Hsiang Shou Enterprise Co., Singan Co., Ltd. 10,000,000
100.00

Ltd.		 Chairman (and
Shun-Yen Hung
President)
Director Wen-zheng Liao
Director Chien Lai-Fong
Supervisor LuYu-Xuan
47



 Qinton Motor Co., Ltd.
Chairman (and
President)
Director
Director
Supervisor		 Singan Co., Ltd.
Shun-Yen Hung
Wen-zheng Liao
Liao Jin-Wei
Lu Yu-Xuan		 6,745,947
100.00
48 Sinjang Co.,Ltd Singan Co., Ltd. 42,824,000
100.00

Chairman (and
Shun-Yen Hung
President)

Annual Report 2020 389

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Director Wen-zheng Liao
Director Lin Chi-Wai
Supervisor LuYu-Xuan
49


 Sinjang Investment (Samoa)
Co., Ltd.
Director

Director		 Sinjang Co.,Ltd
Shun-Yen Hung
TAC Global Investment (Samoa) Co., Ltd.
Kuo-Hsing Hsu		 USD 1,337
thousand

USD 537
thousand

71.34



28.66
50 Jing-Hui (Shanghai) Motor USD 1,675
Sinqual Technology Co.,Ltd.

100.00
Technology Limited thousand*
Chairman Wen-zheng Liao
Director Keyu Lin
Director (and
Yu-Hsuan Wu
President)
Supervisors Wan-Chin Li
51




 Yu Ching Business Co., Ltd.





Chairman
Director
Director

Supervisor		 YULON MOTOR CO.,LTD
Jian-Hui Li
Wen-Yi Lo
Hsun-Kuei Hsieh
Yu Pong Business Co., Ltd.
HongYao Jian		 72,691,327



48,460,885
60.00




40.00
52 Yulon Construction Co., Ltd. YULON MOTOR CO.,LTD 122,100,000
100.00
Chairman Zhen-Xiang Yao
Director Yen Chen Li-Lien
Director Chen Bo-Yung
Director Jack, J.T .Huang
Director Chui-Yan Chen
Supervisor Qi-hong Tasi
53



 Hangzhou Yujie Real Estate
Co., Ltd
Chairman (and
President)
Director
Director
Supervisors		 Yulon Construction Co., Ltd.
Chin-Chuan Chen
Hu Guang-Hua
Guo Su-Jeong
Qi-hong Tasi		 RMB 500,000
thousand*

100.00
54 Yufong Property
Yulon Construction Co., Ltd. 2,499,000
99.96
Management Co., Ltd.
Chairman Chui-Yan Chen
Director Chien Sik-Nin
Director Wen-Yi Lo
Yulon-Administered Enterprises Company Limited 1,000
0.04
Supervisor Qi-hongTasi
55



 Sin Chi Co., Ltd.
Chairman
Director
Director
Supervisor		 YULON MOTOR CO.,LTD
Zhen-Xiang Yao
Jian-Hui Li
Wen-Yi Lo
Hong Yao Jian		 108,000,000
100.00
56 Yu Chia Motor Co., Ltd. Sin Chi Co., Ltd. 2,600,000
100.00
Chairman Shun-Yen Hung
Director Wen-Yi Lo
Director Wenxiu Zhu
Supervisor Yuan-long Chen
57



 Yulon TOBE Motor Co.,
Ltd.
Chairman
Director
Director
Supervisor		 Sin Chi Co., Ltd.
Zhen-Xiang Yao
Kuo-Hsing Hsu
Shun-Yen Hung
HongYao Jian		 2,808,038
100.00
58 Yung Hang Investment Co.,
YULON MOTOR CO.,LTD 77,622,000
100.00
Ltd.
Chairman Yen Chen Li-Lien
Director Zhen-Xiang Yao
Supervisor Qi-hongTasi

390 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
59



 Yu Pong Business Co., Ltd.
Chairman (and
President)
Director
Director
Supervisor		 YULON MOTOR CO.,LTD
Yen Chen Li-Lien
Kuo-Rong Chen
Qinghang Meng
Youan Huang		 28,470,422
100.00
60 Yulon It Solutions Inc. YULON MOTOR CO.,LTD 16,663,998
87.71
Chairman (and
Zhen-Xiang Yao
President)
Director Xiong Jin-Do
Director Hong-Zheng Chen
Tai Yuen Textile Co., Ltd. 2,336,002
12.29
Supervisor Hong Yao Jian
61





 China Cast Iron Pipe Co.,
Ltd.





Chairman
Director

Director

Supervisor		 YULON MOTOR CO.,LTD
Jian-Hui Li
Li-Hua Wu
Tai Yuen Textile Co., Ltd.
Chien Sik-Nin
Tai Yuen Textile Co., Ltd.
Wen-Yi Lo		 24,850


430

5,679
77.66



1.34


17.75
62 Yue Sheng Industrial Co., YULON MOTOR CO.,LTD 23,061,050
80.07
Ltd. Chairman Wen-Jung Tsai
Director Pu-Chin Chien
Director (and
Tseng Guo-Feng
President)
Director Meng-Yue Jie
Japan Central Glass Co., Ltd. 5,731,200
19.90
Director Gong Nei-Che
Supervisor Kawabe Morihiro -
-
Yulon-Administered Enterprises Company Limited 1,000
-
Supervisor Wen-Yi Lo
63



 Advance Power Machinery
Co., Ltd.



Chairman
Director
Director (and
President)
Supervisor		 YULON MOTOR CO.,LTD
Hong-Zheng Chen
Meng-Yue Jie
Lei Li-Huang
Hsun-Kuei Hsieh		 500,000
100
64 Yueki Industrial Co., Ltd. YULON MOTOR CO.,LTD 12,766,887
65.58
Chairman Chun-Hung Chen
Director Yan Zhou
Director Li-Hua Wu
Director Shih-Lin Wu
Director Zhixiong Wu
Japan MARELLI CORPORATION 3,698,000
19.00
Director Shānxī zhèngbó
China Motor Corporation 2,936,222
15.08
Director Chen-xing Zhu
Yulon-Administered Enterprises Company Limited 1,000
0.01
Supervisor Yuan-long Chen
Supervisor Akiyama Toyohiko 0
-
65 Yue Ki Industrial (Samoa)
Co., Ltd.		 Director Yueki Industrial Co., Ltd. 4,125,945
100.00
66 Hong Kong Yueki Holdings
Director Yueki Industrial Co., Ltd. 10,600,000
100.00
Co., Ltd.
Director Chun-Hung Chen
Director Zhixiong Wu
67


 Hangzhou Yuwan Auto
Motive Parts Limited
Chairman
Director (and
President)
 Hong Kong Yueki Holdings Co., Ltd.
Zhixiong Wu
Shunxiong Fan
Qing Yi Investment Co., Ltd.		 USD 11,100
thousand
USD 8,760
thousand

55.89


44.11

Annual Report 2020 391

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)


Director
Supervisor		 Huang Shi-Gu
Yuming Zhuang		 - -
68 Esinn Co., Ltd YULON MOTOR CO.,LTD 17,999,000
99.99
Chairman Zhen-Xiang Yao
Director (and
Wen- Chiang Hsu
President)
Director Meng-Fen Hsiao
Director Wen- Chiang Hsu
Director Chun-Chieh Chang
Yulon-Administered Enterprises Company Limited 1,000
0.01
Supervisor Yuan-long Chen
69






 Yushin Motor Co., Ltd.
Chairman
Director
Director
Director
Director

Supervisor		 YULON MOTOR CO.,LTD
Wen- Chiang Hsu
Chun-Chieh Chang
Shih-Hao Tseng
Meng-Fen Hsiao
Jian-Hui Li
Yulon-Administered Enterprises Company Limited
Yuan-long Chen		 19,999,000




1,000
99.99





0.01
70 Yu Chang Motor Co., Ltd. Chairman Yao-Hsin Kuo 2,920,400
13.56
Director Yu-Hung Kuo 1,545,200
7.17
YULON MOTOR CO.,LTD 13,998,500
64.99
Director Yue-Feng Liao
Director Chen-Cheng Li
Director Meng-Fen Hsiao
Supervisor Yulon-Administered Enterprises Company Limited 1,000
0.01
Yuan-long Chen
Supervisor Chiu-Hua Chen 1,111,200 5.16
71



 Yupu Enterprise Co., Ltd.
Chairman
Director
Director
Supervisor		 Yushin Motor Co., Ltd.
Shih-Hao Tseng
Jian-Syong Liao
Wentian Guo
I-Hsuan Lin		 1,000,000
100.00
72 YU SHIN Investment Ltd. RMB 37,480
Yushin Motor Co., Ltd.

100.00
thousand*
Chairman Shih-Hao Tseng
73



 Fuzhou YuShin Automobile
Technology Co.
Chairman
Director
Director
Supervisors		 YU SHIN Investment Ltd.
Shih-Hao Tseng
Huang Jun-Quan
Zhiqiang Yan
I-Hsuan Lin		 RMB 12,000
thousand*

100.00
74 KUEN YOU TRADING Esinn Co., Ltd 1,000,000
100.00
CO., LTD. Chairman Wen- Chiang Hsu
Director Wen- Chiang Hsu
Director Chun-Chieh Chang
Supervisor Meng-Fen Hsiao
75



 Tian Wang Co., Ltd.
Chairman
Director
Director
Supervisor		 Yu Chang Motor Co., Ltd.
Yao-Hsin Kuo
Meng-Fen Hsiao
Chun-Chieh Chang
Qi-hong Tasi		 1,700,000
100.00
76 Yulon Overseas Investment YULON MOTOR CO.,LTD 1,083,097,900
100.00
Co., Ltd. Director Heng-Yao Wang
77
 Yulon China Investment Co.,
Ltd.

Director		 Yulon Overseas Investment Co., Ltd.
Heng-Yao Wang		 1,058,071,472
100.00
78 Yulon Philipines Investment Yulon Overseas Investment Co., Ltd. 35,740,966
100.00
Co., Ltd. Director Zhen-Xiang Yao
79


 UNIVATION MOTOR
PHILIPPINES, INC.
Chairman
Director (and
CEO)
Director		 Yulon Philipines Investment Co., Ltd.
Jian-Hui Li
Hsiang Tseng
Mei-Man Hung		 4,365,527
1
1
1
40.00

-

-

-

392 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)






Director
Director

 Wenxiu Zhu
I-Chen Chiu
EASTERN CROWNE INDUSTRIES,INC.
STA.CRUZ ISLAND CORP.		 1
1
350,000
6,198,296
-

-

3.21

56.79
80 STA.CRUZ ISLAND Yulon Philipines Investment Co., Ltd. 749,370
14.04
CORROPATION Pacific Gem Corporation 3,202,792
60.00
Director Reynaldo J. Concepcion 1
-
Chairman William C. Yu 1
-
Director Eric R. Recalde 1
-
UNIVATION MOTOR PHILIPPINES, INC. 1,385,826
25.96
Director Nedia O. Sagun 1
-
Director Teresita D. Hamor 1
-
81
 Wen Yang Investment Co.,
Ltd.
Director		 Yulon China Investment Co., Ltd.
Kuo-Rong Chen		 29,650,000
100.00
82 Qing Yi Investment Co., Ltd.
Yulon China Investment Co., Ltd. 15,323,977
100.00
Director Kuo-Rong Chen
83
 Yulon China Investment Co.,
Ltd.

Director		 Yulon China Investment Co., Ltd.
Kuo-Rong Chen		 270,415,153
100.00
84 Yulon China Holdings Co.
Yulon China Investment Co., Ltd. 711,803,436
100.00
Ltd.
Director Chin-Chuan Chen
85



 Feng-hua Investment (HK)
Co., Ltd.
Director

Director
 Chenglong Limited.
I-Wei Wang
Yulon China Investment Co., Ltd.
Ming-Hui Hsiao
Huamao International Investment Co., Ltd.		 USD 2,100
thousand

USD 2,800
thousand

USD 2,100
thousand*

30.00



40.00


30.00
86 Suzhou Chenglong Auto USD 7,000
Feng-hua Investment (HK) Co., Ltd.

100.00
Sales & Service Co. thousand*
Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Jhih-Ciang Yan
Director Ching-Yi Wang
Director Ming-Tsang Chao
Supervisors Liu Zong-Xin
Supervisors Yan Zhou
87






 Suzhou Cheng-Hung Auto
Sales & Service Limited
Chairman (and
President)
Director
Director
Director
Director
Supervisors
Supervisors		 Suzhou Chenglong Auto Sales & Service Co.
I-Wei Wang
Chin-Chuan Chen
Jhih-Ciang Yan
Ching-Yi Wang
Ming-Tsang Chao
Liu Zong-Xin
Yan Zhou		 RMB 10,000
thousand*

100.00
88 Suzhou Cheng-Kuo Auto RMB 20,000
Suzhou Chenglong Auto Sales & Service Co.

100.00
Sales & Service Limited thousand*
Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Jhih-Ciang Yan
Director Ching-Yi Wang
Director Ming-Tsang Chao
Supervisors Liu Zong-Xin
Supervisors Yan Zhou
89

 KeYu (Nanjing) Information
Technology Limited
Managing director
Supervisors		 Tai xin Investment (Samoa) Co., Ltd.
Chin-Chuan Chen
Qi-hongTasi		 RMB 180,031
thousand*

100.00

Annual Report 2020 393

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
90 TaiFeng ((Nanjing) Software USD 14,850
Wen Yang Investment (Samoa) Co., Ltd.

100.00
Technology Limited thousand*
Managing director Chin-ChuanChen
91

 QingTai (NanJing)
Technology Limited
Managing director
Supervisors		 Wen Yang Investment (Samoa) Co., Ltd.
Chin-Chuan Chen
Wen-Yi Lo		 USD15,350
thousand*

100.00
92 Zhangzhou Development RMB 55,200
TaiFeng ((Nanjing) Software Technology Limited

100.00
Zone Yi Ding Investment thousand*
Co., Ltd. Director (and
Yuan-long Chen
President)
Supervisors Wen-Yi Lo
93


 Zhangzhou Development
Zone Mei De Investment
Co., Ltd.

Director (and
President)
Supervisors		 TaiFeng ((Nanjing) Software Technology Limited
QingTai (NanJing) Technology Limited
Yuan-long Chen
Wen-Yi Lo		 RMB 71,550
thousand
RMB 7,950
thousand

90.00


10.00
94 Zhangzhou Development Shi RMB 71,830
QingTai (NanJing) Technology Limited

100.00
Cheng Investment Co., Ltd. thousand*
Director (and
Yuan-long Chen
President)
Supervisors Wen-Yi Lo
95


 Zhangzhou Development
Zone Jin Ce Investment Co.,
Ltd.



Director (and
President)
Supervisors		 QingTai (NanJing) Technology Limited
TaiFeng ((Nanjing) Software Technology Limited
Yuan-long Chen
Wen-Yi Lo		 RMB 13,769
thousand
RMB 5,901
thousand

70.00


30.00
96 GaoTe (Beijing) Investment Zhangzhou Development Zone Yi Ding Investment
RMB 52,200


90.00
Limited Co., Ltd. thousand*
Zhangzhou Development Zone Jin Ce Investment RMB 5,800


10.00
Co., Ltd. thousand*
Director (and
I Liu
President)
Supervisors Qi-hong Tasi
97

 HangZhou QienYu
Investment Limited
Director (and
President)
Supervisors		 GaoTe (Beijing) Investment Limited
I Liu
Ya-Ming Chen		 RMB 10,000
thousand*

100.00
98 HangZhou Hsiao Yu RMB 900
HangZhou TangYu Investment Limited

9.00
Investment Limited thousand*
RMB 9,000
HangZhou QienYu Investment Limited

90.00
thousand*
RMB 100
Zhejiang Zhongyu (Holdings) Group Co., Ltd.

1.00
thousand*
Chairman Chi-Wu Liu
Director Chi-Hou Wen
Director (and
Wen-Chiang tien
President)
Supervisors Lai Liu
99


 DongTai (Beijing)
Investment Limited

Director (and
President)
Supervisors		 Zhangzhou Development Shi Cheng Investment
Co., Ltd.
Zhangzhou Development Zone Jin Ce Investment
Co., Ltd.
Lai Liu
Qi-hong Tasi		 RMB 68,830
thousand
RMB 4,370
thousand

94.03


5.97
100 HangZhou TangYu RMB 10,000
DongTai (Beijing) Investment Limited

100.00
Investment Limited thousand*
Director (and
Chi-Tsai Wen
President)

394 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Supervisors Ming Chen
101
 Yulon Motor Investment
(HK) Co., Ltd.
Director		 Yulon China Holdings Co. Ltd.
Kuo-Rong Chen		 711,803,436
100.00
102 Yulon Automotive (China) USD 274,940
Yulon Motor Investment (HK) Co., Ltd.

100.00
Investment Limited thousand*
Chairman Kuo-Rong Chen
Director (and
Chin-Chuan Chen
President)
Director Zhen-Xiang Yao
Supervisors Yuan-long Chen
103

 Xiamen Y.C. Invest.
Consulting Limited
Managing director
Supervisors		 Yulon Motor Investment (HK) Co., Ltd.
Chin-Chuan Chen
Wen-Yi Lo		 USD 1,860
thousand*

100.00
104 Luxgen (Hangzhou) Motor USD 434,550
Yulon Motor Investment (HK) Co., Ltd.

100.00
Sales Co., Ltd thousand*
Chairman Chong-Yuan Chen
Director (and
Chin-Chuan Chen
President)
Director Kuo-Rong Chen
Supervisors Heng-Yao Wang
105



 Chuang Jie New Energy
Vehicle (HZ) Limited
Chairman
Director (and
President)
Director
Supervisors		 Yulon Automotive (China) Investment Limited
Binglin Chen
Huang Shi-Gu
Chin-Chuan Chen
Wen-Yi Lo		 RMB 790,000
thousand*

100.00
106 Sheng Qing (Beijing) RMB 1,039,671
Yulon Automotive (China) Investment Limited

83.87
Investment Limited thousand*
Vice Chairman Chin-Chuan Chen
RMB 200,000
Xiamen Y.C. Invest. Consulting Limited

16.13
thousand*
Chairman (and
Yuan-long Chen
President)
Director Wen-Cheng Lin
Supervisors Wen-Yi Lo
107







 SuZhou FengShen
Automobiles. Sale & Service
Limited







Director
Director
Director
Supervisors

Chairman (and
President)
Director
Supervisors		 Sheng Qing (Beijing) Investment Limited
Chin-Chuan Chen
Jhih-Ciang Yan
Chi-Ruei Chen
Yan Zhou
Suzhou Chengfeng Trading Co., Ltd.
I-Wei Wang
Ching-Yi Wang
Ming-Tsang Chao		 RMB 19,200
thousand




RMB 28,800
thousand

40.00






60.00
108 Suzhou ChengBang SuZhou FengShen Automobiles. Sale & Service RMB 10,000


100.00
Automobiles Sales & Limited thousand*
Service Limited Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Zhiqiang Yan
Director Chi-Ruei Chen
Director Ching-Yi Wang
Supervisors Ming-Tsang Chao
Supervisors Yan Zhou
109
 Suzhou Eslite Automobiles
Sales & Service Limited
Chairman (and
President)		 SuZhou FengShen Automobiles. Sale & Service
Limited
I-Wei Wang		 RMB 40,000
thousand*

100.00

Annual Report 2020 395

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)










Director
Director
Director
Director
Supervisors
Supervisors		 Chin-Chuan Chen
Tian-Shiang Su
Jhih-Ciang Yan
Ching-Yi Wang
Ming-Tsang Chao
Yan Zhou









110 Suzhou YuShun SuZhou FengShen Automobiles. Sale & Service RMB 10,000


100.00
Automobiles Sales & Limited thousand*
Service Limited Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Tian-Shiang Su
Director Jhih-Ciang Yan
Director Ching-Yi Wang
Supervisors Ming-Tsang Chao
Supervisors Yan Zhou
111






 TaiTsang ChengMao
Automobiles Sales &
Service Limited






Chairman (and
President)
Director
Director
Director
Director
Supervisors
Supervisors		 SuZhou FengShen Automobiles. Sale & Service
Limited
I-Wei Wang
Chin-Chuan Chen
Tian-Shiang Su
Jhih-Ciang Yan
Ching-Yi Wang
Ming-Tsang Chao
Yan Zhou		 RMB 10,000
thousand*

100.00
112 Suzhou FengShun SuZhou FengShen Automobiles. Sale & Service RMB 25,000


100.00
Automobiles Sales & Limited thousand*
Service Limited Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Jhih-Ciang Yan
Director Chi-Ruei Chen
Director Ching-Yi Wang
Supervisors Ming-Tsang Chao
Supervisors Yan Zhou
113






 Wu Jiang Lian Cheng
Automobiles Sale & Service
Limited






Chairman (and
President)
Director
Director
Director
Director
Supervisors
Supervisors		 Suzhou FengShun Automobiles Sales & Service
Limited
I-Wei Wang
Chin-Chuan Chen
Jhih-Ciang Yan
Chi-Ruei Chen
Ching-Yi Wang
Ming-Tsang Chao
Yan Zhou		 RMB 10,000
thousand*

100.00
114 Suzhou ChengLi Automobile Suzhou FengShun Automobiles Sales & Service RMB 15,000



100.00
Sales & Service Limited Limited thousand*
Chairman (and
I-Wei Wang
President)
Director Chin-Chuan Chen
Director Tian-Shiang Su
Director Jhih-Ciang Yan
Director Ching-Yi Wang
Supervisors Ming-Tsang Chao
Supervisors Yan Zhou
115



 Anqing Cai Tong
Automobiles Sales &
Service Limited
Chairman
Director
Director
Supervisors		 Sheng-Cing (Beijing) Investment Limited
Huang Yu-Zheng
Zhiqiang Yan
Chin-Chuan Chen
Zhou Yan		 RMB 27,417
thousand*

100.00

396 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
116 Anhui Min Tong
RMB 10,000

Automobiles Sales &		 DongTai (Beijing) Investment Limited

35.09
thousand*
Service Limited
RMB 18,502
Sheng Qing (Beijing) Investment Limited

64.91
thousand*
Chairman (and
Tian-Shiang Su
President)
Director Zhiqiang Yan
Director Chin-Chuan Chen
Supervisors Zhou Yan
117




 Tongling Kuo Tong
Automobiles Sales &
Services Limited

Chairman (and
President)
Director
Director
Supervisors		 DongTai (Beijing) Investment Limited
Sheng Qing (Beijing) Investment Limited
Huang Yu-Zheng
Zhiqiang Yan
Chin-Chuan Chen
Yan Zhou		 RMB 5,000
thousand
RMB 11,913
thousand

29.56


70.44
118 Zibo Yu An Automobiles RMB 5,000
DongTai (Beijing) Investment Limited

32.38
Sales & Services Limited thousand*
RMB 10,440
Sheng Qing (Beijing) Investment Limited

67.62
thousand*
Chairman (and
Huang Yu-Zheng
President)
Director Chin-Chuan Chen
Director Zhiqiang Yan
Supervisors Yan Zhou
119







 Guangzhou YuanDou
Automobile Sales & Service
Limited
Chairman
Director
Supervisors

Vice Chairman
Director
Director
Supervisors		 YUAN LONG CO., LTD
Chen-Fang Chang
Ming-Jung Hsu
Ming-Ching Chen
Sheng Qing (Beijing) Investment Limited
Chin-Chuan Chen
Zhiqiang Yan
Tian-Shiang Su
Yan Zhou		 RMB 17,150
thousand


RMB 17,850
thousand

49.00




51.00
120 Zhu Hai FuTeEn Industry & RMB 35,200
Sheng Qing (Beijing) Investment Limited

100.00
Trade Limited thousand*
Chairman Chin-Chuan Chen
Director Chi-Ruei Chen
Director Zhiqiang Yan
President Huang Xian-Wu
Supervisors Huang Shi-Gu
121








 Qingdao YuanHuang
Automobiles Sales &
Services Limited
Director
Director
Director
Supervisors


Chairman
Director
Supervisors		 Sheng Qing (Beijing) Investment Limited
Zhiqiang Yan
Chin-Chuan Chen
Tian-Shiang Su
Yan Zhou
Guangzhou YuanDou Automobile Sales & Service
Limited
Yuanchuang Co., Ltd.
Chen-Fang Chang
Ming-Jung Hsu
Ming-Ching Chen		 RMB 15,300
thousand



RMB 20,000
thousand
RMB 14,700
thousand*

30.60





40.00


29.40
122 ZhuHai Esinn Automobiles RMB 25,200
Zhu Hai FuTeEn Industry & Trade Limited

100.00
Sales & Service Limited thousand*
Chairman Chi-Ruei Chen
Director Chin-Chuan Chen

Annual Report 2020 397

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Director Po-An Lai
President Cheng Jung-Fu
Supervisors Wen-ChengLin
123




 Shenzhen Yuzhi Automobile
Sales & Service Limited
Chairman
Director
Director
President
Supervisors		 Zhu Hai FuTeEn Industry & Trade Limited
Chi-Ruei Chen
Chin-Chuan Chen
Po-An Lai
Gong Yi-Ming
Wen-Cheng Lin		 RMB 20,000
thousand*

100.00
124 Wuhan Yu Hsin
RMB 100,000
Automobiles Sales & Sheng Qing (Beijing) Investment Limited

100.00
thousand*
Service Limited
Chairman Chin-Chuan Chen
Director Zhiqiang Yan
Director Chi-Ruei Chen
President Chen Zu-Yin
Supervisors Huang Shi-Gu
125



 Xiaogan Yufeng Automobile
Sales Service Co., Ltd.
Chairman
Director
Director
Supervisors		 Wuhan Yu Hsin Automobiles Sales & Service
Limited
Chin-Chuan Chen
Zhiqiang Yan
Chi-Ruei Chen
Huang Shi-Gu		 RMB 32,000
thousand*

100.00
126 NanJing HanHong
RMB 131,000

Automobiles Trading		 Sheng Qing (Beijing) Investment Limited

100.00
thousand*
Limited
Chairman Chin-Chuan Chen
Director Zhiqiang Yan
Director Chi-Ruei Chen
Supervisors Huang Shi-Gu
127



 Nanjing YuShang
Automobile Sales & Service
Limited
Chairman
Director
Director
Supervisors		 NanJing HanHong Automobiles Trading Limited
Chi-Ruei Chen
Chin-Chuan Chen
Zhiqiang Yan
Huang Shi-Gu		 RMB 38,000
thousand*

100.00
128 Nanjing HanHong RMB 44,000
NanJing HanHong Automobiles Trading Limited

100.00
Automobile Sales & Service thousand*
Limited Chairman Chin-Chuan Chen
Director Chi-Ruei Chen
Director Zhiqiang Yan
Supervisors Huang Shi-Gu
129


 HangZhou Yu Zhong
Trading Limited
Managing director
President
Supervisors		 Sheng Qing (Beijing) Investment Limited
Chin-Chuan Chen
Chun-Chung Li
Qi-hong Tasi		 RMB 10,000
thousand*

100.00
130 Hangzhou HuaZhi RMB 8,000
DengfengYulon Motor Co.Ltd

40.00
Automobile Sales & Service thousand*
Limited Chairman Tsai Wei-Feng
Supervisors Shi-hao Fang
RMB 12,000
Sheng Qing (Beijing) Investment Limited

60.00
thousand*
Director Chin-Chuan Chen
Director Tian-Shiang Su
131

 Hangzhou HuaYou
Automobile Sales & Service
Limited
Managing director
Supervisors		 Hangzhou HuaZhi Automobile Sales & Service
Limited
Tsai Wei-Feng
Shi-hao Fang		 RMB 8,000
thousand*

100.00
132 Jiangmen Junxing RMB 12,000
Sheng Qing (Beijing) Investment Limited

60.00
Automobile Sales Service thousand*
Co., Ltd. Chairman (and
Jung-Fu Cheng
President)

398 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Director Wu Xin-Fa
Director Zhiqiang Yan
Supervisors Wen-Cheng Lin
RMB 3,000
Director Zhang Zhicong

15.00
thousand*
RMB 5,000
Sanli Holddings Limited

25.00
thousand*
Director Zhenlong Lin
133





 Jiangmen YuLi Automobiles
Sales & Service Limited
Chairman
Director
Director
Director
Director
Supervisors		 Jiangmen Junxing Automobile Sales Service Co.,
Ltd.
Chin-Chuan Chen
Tian-Shiang Su
Zhiqiang Yan
Zhang Zhicong
Zhenlong Lin
Wen-Cheng Lin		 RMB 10,000
thousand*

100.00
134 Changsha Yulu Automobile RMB 31,800
Sheng Qing (Beijing) Investment Limited

100.00
Sales & Service Limited thousand*
Chairman Chi-Ruei Chen
Director Chin-Chuan Chen
Director Po-An Lai
Supervisors Wen-Cheng Lin
135



 Ningbo Yu Chang
Automobile Sales Service
Co., Ltd.



Chairman
Director
Director
Supervisors		 Sheng Qing (Beijing) Investment Limited
Chin-Chuan Chen
Tian-Shiang Su
Zhiqiang Yan
Wen-ChengLin		 RMB 44,700
thousand*

100.00
136 Fujian YuXin Automobiles RMB 26,250
Sheng Qing (Beijing) Investment Limited

51.00
Sales & Service Limited thousand*
Director Chin-Chuan Chen
Director Zhiqiang Yan
Supervisors Wen-Cheng Lin
RMB 25,480
YU SHIN Investment Ltd.

49.00
thousand*
Chairman Shih-HaoTseng
137




 Shanghai Yumin
Automobiles Sales &
Service Limited




Director
Supervisors

Chairman
Director		 Sheng Qing (Beijing) Investment Limited
Chin-Chuan Chen
Wen-Cheng Lin
Hongyan Automobile Co., Ltd.
Chin-Feng Kao
ZhiqiangYan		 RMB 37,124
thousand


RMB 35,668
thousand

51.00




49.00
138 ChiaHsing YuTa Shanghai Yumin Automobiles Sales & Service RMB 18,000


100.00
Automobiles Sales & Limited thousand*
Service Limited Chairman Chin-Feng Kao
Director Chin-Chuan Chen
Director Zhiqiang Yan
Supervisors Wen-ChengLin
139












 Y-Teks Co., Ltd.
Chairman
Director

Director
Director

Director

Director

Director
Supervisor
Supervisor		 YULON MOTOR CO.,LTD
Chun-Hung Chen
Chin-Chu Lin
Kasai Kogyo Co., Ltd.
Yasushi Ishii
Sandou Shouichi
Yue Sheng Industrial Co., Ltd.
Tseng Guo-Feng
Sanlong Asset Management Co., Ltd.
Chung-Hsien Chen
Changyu Industrial Co., Ltd.
Shang-Hui Chen
Chia-Ching Chen
Li-HsiungCheng		 602,124


591,185


212,388

93,948

213,299

-
-
34.00



33.38



11.99


5.30


12.04


-

-

Annual Report 2020 399

Special Notes

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
140 YU HSIN INT'L
USD 2,231
INVESTMENT (BVI) CO., Y-Teks Co., Ltd.

66.66
thousand*
LTD.
Director Sandou Shouichi
Chun-Hung Chen
Chin-Chu Lin
USD 558
YU SHIN Investment Ltd.

16.67
thousand*
Director Li-Hsiung Cheng
USD 558
SAMOA Fangbang Investment Co., Ltd.

16.67
thousand*
Director Li-Tai Kuo
141




 YU HSIN INT'L
INVESTMENT (HK) CO.,
LTD.
Director
Director
Director
Director
Director		 YU HSIN INT'L INVESTMENT (BVI) CO., LTD.
Chun-Hung Chen
Sandou Shouichi
Chin-Chu Lin
Li-Hsiung Cheng
Li-Tai Kuo
USD 12,391
thousand*

100.00
142 Changzhou Y-Teks USD 714
YU HSIN INT'L INVESTMENT (HK) CO., LTD.

51.00
Automotive Trim Parts thousand*
Limited Director Li-Sung Cheng
Director Imamura Hitoshi
Director (and
Chung-Kun Hsueh
President)
Jiangsu Changbian Integration Technology Co., USD 462


33.00
Ltd. thousand*
Chairman Pin-Gang Ruei
Director Chien-Min Kuo
Supervisors Wun-Long Li

China National Machinery International		 USD 224


16.00
Cooperation Co., Ltd. thousand*
Director Jyun-Min Mao
Supervisors Li-Tai Kuo
143







 Hangzhou Y-teks
Automotive Trim Parts Lt
Chairman
President
Director
Director
Director

Director
Supervisors		 YU HSIN INT'L INVESTMENT (HK) CO., LTD.
Chin-Chu Lin
Sun Dong-Yu
Li-Tai Kuo
Imamura Hitoshi
Zhao-Zhi Lu
Qing Yi Investment Co., Ltd.
Shih-Ming Jhuang
Li-Hsiung Cheng		 USD 9,000
thousand





USD 1,450
thousand

86.12







13.88
144 Uni Auto Parts Manufacture
YULON MOTOR CO.,LTD 21,728,516
25.01
Co., Ltd
Chairman Zhen-Xiang Yao
Director Tsan-Huang Lin
Director (and
Teng-Hung Yang
President)
Xinchang Machinery Factory Co., Ltd. 17,377,154
20.00
Managing Director Chih-Hsiung His
Director Chin-Ming His
China Motor Corporation 13,032,137
15.00
Director Wu Jian-Xi
Quanxing Investment Development Co., Ltd. 5,211,979
6.00
Managing Director Chungsin-Wu
Japan Clockwork Co., Ltd. 13,033,833
15.00
Director Shinichi Kanzawa
British Channel Islands Merchant Adient Global
8,688,921
10.00
Holdings Ltd.
Director Chien Huang

400 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Shareholding
(shares)
(Investment Shareholding
Enterprise Name Title Name or Representative

amount,		 s (%)
thousands of
NTD*)
Yulon-Administered Enterprises Company Limited 1,000
-
Supervisor Wen-Yi Lo
Supervisor Kuei-Fen Tien -
-
145

 Uni Investment Co., Ltd.
Director
Director		 Uni Auto Parts Manufacture Co., Ltd
Teng-Hung Yang
Chih-Hsiung His		 USD 8,403
thousand*

100.00
146 Fuzhou Lianghong Motor USD 9,320
Uni Investment Co., Ltd.

66.67
Parts Limited thousand*
Chairman Teng-Hung Yang
Director Deng Ji-Xiong
Director Chih-Hsiung His
Director HUANG JIANJAMES
Director Chungsin-Wu
Director Wu Jian-Xi
Supervisor Chang Shun-Xian
Supervisor Chiu Qiong-Kuan
USD 4,660
Namba Press Industry Co., Ltd.

33.33
thousand*
Director Namba Chikako
Director Junichi Namba
Director Namba Kurihara
147








 HANG ZHOU LIAN RUN
MOTOR PARTS CO.,LTD
Chairman
Director
Director
Director
Director
Director
Supervisor

Director		 Uni Investment Co., Ltd.
Teng-Hung Yang
Deng Ji-Xiong
Chang Shun-Xian
Chih-Hsiung His
Chungsin-Wu
Chien Huang
Chiu Qiong-Kuan
Qing Yi Investment Co., Ltd.
YumingZhuang		 USD 17,885
thousand







USD 4,615
thousand

79.49









20.51
148 Luxgen Motor Co., Ltd. YULON MOTOR CO.,LTD 605,000,000
100.00
Chairman Zhen-Xiang Yao
Director Chen-Hung Huang
Director (and
Wen-Jung Tsai
President)
Supervisor Yuan-long Chen
149






 Luxgen Taipei Motor Co.,
Ltd.
Chairman
Director
Director
Director
Director

Supervisor		 Luxgen Motor Co., Ltd.
Wen-Jung Tsai
Chung-Yung Tsao
Meng-Fen Hsiao
Wen-Yuan Li
Qing-yuan Bai
Yulon-Administered Enterprises Company Limited
Yuan-long Chen		 18,499,000





1,000
99.99






0.01
150 Luxgen Taoyuan Motor Co.,
Luxgen Motor Co., Ltd. 6,299,000
59.99
Ltd.
Chairman Wen-Jung Tsai
Director Chung-Yung Tsao
Director Meng-Fen Hsiao
Yushin Motor Co., Ltd. 2,100,000
20.00
Director Shih-Hao Tseng
Huifeng Automobile Co., Ltd. 2,100,000
20.00
Director Chi-Feng Tsai
Yulon-Administered Enterprises Company Limited 1,000
0.01
Supervisor Yuan-long Chen
151


 Luxgen Taichung Motor Co.,
Ltd.

Chairman
Director
Director		 Luxgen Motor Co., Ltd.
Wen-Jung Tsai
Chung-Yung Tsao
Meng-Fen Hsiao		 10,359,000
97.73

Annual Report 2020 401

Special Notes

Item
No.		 Enterprise Name Title Name or Representative Shareholding
(shares)
(Investment
amount,
thousands of
NTD*)		 Shareholding
s (%)











Director

Director

Supervisor		 EMPOWER MOTORS CO.,LTD.
Chin-Feng Kao
Huifeng Automobile Co., Ltd.
Zicheng Huang
Yulon-Administered Enterprises Company Limited
Yuan-long Chen		 120,000

120,000

1,000
1.13


1.13


0.01
152 Luxgen Tainan Motor Co.,
Luxgen Motor Co., Ltd. 9,889,000
94.18
Ltd.
Chairman Wen-Jung Tsai
Director Chung-Yung Tsao
Director Meng-Fen Hsiao
Director Qing-yuan Bai
Huifeng Automobile Co., Ltd. 610,000
5.81
Director Chi-Feng Tsai
Yulon-Administered Enterprises Company Limited 1,000
0.01
Supervisor Yuan-long Chen
153








 Luxgen Kaohsiung Motor
Co., Ltd.
Chairman
Director
Director

Director

Director

Supervisor		 Luxgen Motor Co., Ltd.
Wen-Jung Tsai
Chung-Yung Tsao
Meng-Fen Hsiao
Yu Chang Motor Co., Ltd.
Yao-Hsin Kuo
Huifeng Automobile Co., Ltd.
Kelong Bi
Yulon-Administered Enterprises Company Limited
Yuan-long Chen		 6,599,000



250,000

250,000

1,000
92.944




3.521


3.521


0.014
154 EMPOWER MOTORS Yupu Enterprise Co., Ltd. 15,900,000
53.00
CO.,LTD. Chairman Chin-Feng Kao
Director His-Kun Liu
Director Kuo-Lung Lai
Director Mei-Chang Hsu
YULON MOTOR CO.,LTD 5,998,780
19.996
Director Fang-Zhong Lai
Director Yu-Cho Hsieh
Director Meng-Fen Hsiao
Taiwan Acceptance Corporation 8,100,000
27.00
Director Fa-ke Chen
Director Mingde Lo
Yulon-Administered Enterprises Company Limited 1,220
0.004
Supervisor Yuan-long Chen
Supervisor Nan-Cheng Pan -
-
Supervisor Shu-hua Liao - -
155






 Chi Min Business Co., Ltd.
Chairman
Director
Director
Director
Director
Supervisor
Supervisor		 EMPOWER MOTORS CO.,LTD.
Chin-Feng Kao
His-Kun Liu
Fang-Zhong Lai
Meng-Fen Hsiao
Fa-ke Chen
Mei-Chang Hsu
Qi-hong Tasi		 800,000
100.00
156 Hongyan Automobile Co., EMPOWER MOTORS CO.,LTD. 19,006,262
100.00
Ltd. Chairman Chin-Feng Kao
157






 Yumin Inurance Broker Co.,
Ltd
Chairman
Director
Director
Director
Director
Supervisor
Supervisor		 EMPOWER MOTORS CO.,LTD.
Chin-Feng Kao
Meng-Fen Hsiao
Fang-Zhong Lai
His-Kun Liu
Fa-ke Chen
Qi-hong Tasi
Mei-Chang Hsu		 500,000
100.00
158 Minxiang Leasing EMPOWER MOTORS CO.,LTD. 3,000,000
100.00
Chairman Chin-Feng Kao
Director His-Kun Liu
Director Fang-Zhong Lai
Director Meng-Fen Hsiao

402 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Item
No.		 Enterprise Name Title Name or Representative Shareholding
(shares)
(Investment
amount,
thousands of
NTD*)		 Shareholding
s (%)
Director Fa-ke Chen
Supervisor Mei-Chang Hsu
Supervisor Qi-hongTasi
159





 Hna-Chuang Automobile
Information Technical
Center Co., Ltd.
Chairman
Director
Director
Director

Supervisor		 YULON MOTOR CO.,LTD
Tsai Wen-Jung
Qiu Minhui
Wen-Yi Lo
Sun Wen-Ling
Luxgen Motor Co., Ltd.
Yuan-long Chen		 747,400,170
522,700,000
58.84

41.15
160 Sin Etke Technology Co., Hna-Chuang Automobile Information Technical
50,000
100.00
Ltd.. Center Co., Ltd.
Chairman (and
Kan-Lin Chu
President)
Director Rao Xian-Qiu
Director Ronggui Chen
Supervisor Hong Yao Jian
161
 Hua-Chuang Overseas
Investment Co., Ltd.
Director		 Hna-Chuang Automobile Information Technical
Center Co., Ltd.
Chun-Chung Li		 490,393,020
100.00
162 Hua-chuang China NTD 461,709
Hua-Chuang Overseas Investment Co., Ltd.

100.00
Investment Co., Ltd. thousand*
Director Chun-Chung Li
Director Qingya Chen
Director Chin-Chuan Chen
163




 Hangzhou Hua-chuang
Automobile Informati
Chairman
Director

Director
Supervisor		 Hua-chuang China Investment Co., Ltd.
Chen-Hung Huang
Qingya Chen
Yulon Automotive (China) Investment Limited
Chin-Chuan Chen
HongYao Jian		 USD 15,000
thousand
USD 500
thousand

96.77


3.23

Annual Report 2020 403

Special Notes

6. Operating overview of affiliated companies (as of December 31, 2020)

6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020) 6. Operating overview of affiliated companies (as of December 31, 2020)
(In Thousands of NTD Except Earnings Per Share in NTD)
Gain or loss
Company Paid-up Total Total Operating Operating Earnings
Company name Net Worth in current

code
Capital		 assets liabilities
revenues
profits
per share
period
22010001 Taiwan Acceptance Corporation 4,323,013 95,471,899 76,208,346 19,263,553 7,162,335 2,502,026 3,139,301
8.85
22010002 Yu Ching Business Co., Ltd. 1,211,522
1,464,010
1,397
1,462,613
13,868
(289)
88,545
0.73
22010004 YuPongBusiness Co.,Ltd. 284,704
878,791
33,896		 844,895 46,356 (13,035) 35,129 1.23
22010005 Yung Hang Investment Co., Ltd. 776,220
813,551
2,665
810,886
103,093
100,882
27,181
0.35
22010008 Yue ShengIndustrialCo.,Ltd. 288,000 555,615 103,210 452,405 382,386 (9,463) (1,246) (0.04)
22010010 Yueki Industrial Co., Ltd. 194,670
1,605,214
932,788
672,426
985,810
(17,984)
(36,575)		 (1.88)
22010012 China CastIron Pipe Co.,Ltd. 32,000 120,618 34,203 86,415 19,152
15,061
12,353		 3.86
22010014 Yu Chang Motor Co., Ltd. 215,385
1,286,896
1,170,157
116,739
5,192,884
(61,655)
29,254
1.36
22010017 Yushin MotorCo.,Ltd. 200,000 983,044
771,922
211,122
3,011,775		 (78,621) 3,046 0.15
22010020 Yu Chia Motor Co., Ltd. 26,000
30,453
1,308
29,145
186
(277)
154
0.06
22010022 Sin Etke Technology Co., Ltd.. 500
11,481		 2,585
8,896
20,827
1,050
(785)		 (15.70)
22010023 Singan Co., Ltd. 286,700
1,087,612
621,479
466,133
238,899
(39,509)
116,541
4.06
22010024 Sinqual Technology Co.,Ltd. 130,000
314,727
139,939
174,788
476,382
25,379
5,036
0.39
22010027 Yulon Construction Co., Ltd. 1,221,000
5,789,026
909,182
4,879,844
206,242
79,437
178,025
1.46
22010034 EMPOWER MOTORS CO.,LTD. 300,000 1,286,465
899,791
386,674
3,764,979
(65,264)
10,648
0.35
22010035 Tian Wang Co., Ltd. 17,000
56,988
28,273
28,715
143,151
8,863
7,442
4.38
22010036 Yupu Enterprise Co., Ltd. 10,000
65,646
14,293
51,353
109,883
4,522
6,727
6.73
22010042 Yulon It Solutions Inc. 190,000
49,323
10,687
38,636
28,449
(2,029)
(1,926)		 (0.10)
22010047 STA. CRUZ ISLAND CORPORATION 154,720 335,895 3,416 332,478 8,006 5,158 (12,231) (5.73)
22010051 Xiamen Y.C. Invest. Consulting Limited 67,539
663,854
171,963
491,891
0
(1,071)
(50,746)		 Note
22010053 Sin Chi Co., Ltd. 1,080,000 1,284,165
30,343		 1,253,822
56,945
35,269
103,608
0.96
22010054 Esinn Co., Ltd 180,000
1,204,163
1,060,392
143,771
4,567,624
(181,487)
(9,431)		 (0.52)
22010055 Y-Teks Co., Ltd. 177,100 1,276,382
338,911
937,471
324,754
31,142
83,931
47.39
YU HSIN INT'L INVESTMENT (BVI) CO.,
22010060

LTD.		 95,323
1,392,514
147
1,392,367
0
(9,596)
90,054
Note
22010063 Yulon Overseas Investment Co., Ltd. 30,846,631 8,077,997
97		 7,936,718 180,825
(339)
2,621,431		 24.20
22010067 Yulon China Investment Co., Ltd. 30,133,862
7,961,990
399
7,961,705		 0
(1,602)
2,620,017		 24.76
22010068 Yulon Philipines Investment Co., Ltd. 1,017,904
97,644
268
97,375		 0
(828)
1,617		 0.45
22010070 Uni Auto Parts Manufacture Co., Ltd 868,892
3,310,588
942,564
2,368,024
1,683,072
6,800
119
0.00
22010073 Shinshin Credit Corporation 2,218,333 39,066,461
35,284,622		 3,781,839
2,232,118
1,011,888
591,295
2.67
22010076 Carplus Auto Leasing Corporation 941,618
20,114,865
18,056,614
2,058,251
10,104,413
536,146
245,067
2.60
22010077 Chi Min Business Co., Ltd. 8,000
30,709
19,341
11,367
92,335
(275)
190
0.24
22010079 Diamond Auto Service Co., Ltd. 85,000
502,690
391,962
110,728
445,817
15,680
15,927
1.87
22010081 Yu Rich Financial Services Co., Ltd. 1,382,092 17,541,464
15,386,080		 2,155,384
1,652,741
601,688
481,496
3.48
22010085 Uni Investment Co., Ltd. 289,287
1,913,633
17,693
1,895,940
0
(4,304)
4,245
Note
22010086 Fuzhou Lianghong Motor Parts Limited 453,783 1,190,491
426,669
763,822
1,205,798
(2,744)
38,451
Note
22010087 Yue Ki Industrial (Samoa) Co., Ltd. 142,811
448,493
0
448,493
0
(1)
(2,108)		 (0.01)
22010093 Qinton Motor Co., Ltd. 67,459
123,876
90,350
33,526
185,584
(19,311)
(19,964)		 (2.96)
Hna-Chuang Automobile Information
22010096

Technical Center Co., Ltd.		 12,701,001
13,090,732
13,390,280
(299,548)		 661,632
(1,415,910)
(3,873,434)		 (3.05)
22010098 Wen Yang Investment (Samoa) Co., Ltd. 844,432 1,387,924
603,075
784,849
0
(185)
(20,158)		 (6.80)
22010099 Qing Yi Investment (Samoa) Co., Ltd. 436,427 78,093
0
78,097		 0
(227)
(17,266)		 (11.27)
22010100 KeYu (Nanjing) Information Technology
Limited		 785,798 655,665 0 655,665 0 (455) 1,400 Note
TaiFeng ((Nanjing) Software Technology
22010101

Limited		 498,520
566,159
207,206
358,953
0
(264)
(1,186)		 Note
22010102 QingTai (NanJing) Technology Limited 524,934
369,058
0
369,058
0
(213)
(20,330)		 Note
22010104 Xie Guan Manpower Service Co., Ltd. 10,000
25,057
4,686
20,371
49,322
5,680
4,594
4.59
22010105 Zhangzhou Development Zone Yi Ding
Investment Co., Ltd.		 247,874
235,918
52,378
183,540
0
(195)
(2,326)		 Note
Zhangzhou Development Zone Mei De
22010106

Investment Co.,Ltd.		 356,991
321,782
0		 321,782
0		 (238) 1,726 Note
22010107 Zhangzhou Development Shi Cheng
Investment Co., Ltd.		 325,229
300,514
148,403
152,111
0
(170)
(19,850)		 Note
Zhangzhou Development Zone Jin Ce
22010108

Investment Co., Ltd.		 88,328
70,570
0
70,570
0
(129)
(1,537)		 Note
22010109 GaoTe (Beijing) Investment Limited 260,447
208,643
827
207,816
2
(4,598)
(2,639)		 Note
22010111 DongTai (Beijing) Investment Limited 331,381
288,294
133,483
154,811
19,493
12,712
(22,060)		 Note
22010112 SuZhou FengShen Automobiles. Sale &
Service Limited		 215,542 1,051,493
226,239
825,254
1,446,888
47,019
150,845
Note
Suzhou FengShun Automobiles Sales &
22010113

Service Limited		 112,898 423,049
181,140
241,909
1,485,599
52,285
71,898
Note
22010114 Guangzhou YuanDou Automobile Sales &
Service Limited		 157,166 324,776
200,759
124,017
676,871
12,068
(8,317)		 Note
22010116 Zhu Hai FuTeEn Industry & Trade Limited 154,269
398,416
155,880
242,536
1,257,315
28,845
848
Note
22010117 TAC Global Investment (Samoa)Co., Ltd 3,099,564 4,377,206
0		 4,377,206
0
0
88,675
Note
CAR-PLUS China Investment (Samoa)
22010118

Co.,Ltd		 284,800
605,226
0
605,226
0
(16)
(13,467)		 Note
22010119 CAR-PLUS Auto Leasing (Suzhou) Limited 318,194 3,370,421
2,766,283
604,141		 1,476,462
(33,472)
(13,454)		 Note

CAR-PLUS Global Investment (Samoa) Co.,
22010121

Ltd		 888,576
790,208
0
790,208
0
(20)
(243,120)		 Note
22010122 Changzhou Y-Teks Automotive Trim Parts
Limited		 50,825
158,424
15,330
143,094
33,128
(3,132)		 (7,344) Note

404 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

Gain or loss
Company Paid-up Total Total Operating Operating Earnings
Company name Net Worth in current

code
Capital		 assets liabilities
revenues
profits
per share
period
NanJing HanHong Automobiles Trading
22010123

Limited		 581,720
722,009
436,098
285,911
1,033,830
(18,626)
(93,050)		 Note
22010124 HangZhou Yu Zhong Trading Limited 44,904 68,126
227
67,899
0
873
728
Note
22010125 HangZhou TangYu Investment Limited 44,904
42,845
0
42,845
0
(46)
(46)		 Note
22010126 HangZhou QienYu Investment Limited 44,904
39,178
0
39,178
0
(34)
(69)		 Note

Wuhan Yu Hsin Automobiles Sales &
22010127
Service Limited 439,999
771,667
377,949
393,718
1,480,027
14,781
34,441
Note
22010128 Wu Jiang Lian Cheng Automobiles Sale &
Service Limited		 44,904 177,576
92,560
85,016
746,013
31,417
23,872
Note
22010129 HangZhou Hsiao Yu Investment Limited 44,904
56,575
17,459
39,116
0
(38)
(39)		 Note
22010130 Hong Shuo Cultural Enterprises Co.,Ltd. 40,500
24,174
8,814
15,360
39,747
4,561
4,865
1.20
22010131 Hsiang Shou Enterprise Co., Ltd. 100,000
370,619
134,181
236,438
591,808
87,369
71,546
7.15
22010138 YulonChinaInvestment (HK) Co.,Ltd. 7,701,419 15,048 122
14,926		 0 (475) 14,298 0.53
22010143 Luxgen Motor Co., Ltd. 6,050,000
3,396,027
3,143,167
252,860
4,530,393
(1,209,894)
(2,465,119)		 (4.07)
22010146 YU HSIN INT'L INVESTMENT (HK) CO.,
LTD.		 352,896
434,688
114,215
320,473
0
(1,539)
(24,806)		 Note
22010147 Luxgen Taipei Motor Co., Ltd. 185,000
710,086
577,372
132,714
2,015,537
(87,876)
(49,538)		 (2.68)
22010148 Luxgen Taoyuan Motor Co., Ltd. 105,000
286,769
196,629
90,140
986,030
(7,112)
15,425
1.47
22010149 Luxgen Taichung Motor Co., Ltd. 106,000
322,019
202,888
119,131
1,053,315
(19,178)
13,131
1.24
22010150 Luxgen Tainan Motor Co., Ltd. 105,000
211,828
102,726
109,102
668,905
(20,206)
5,753
0.55
22010151 Luxgen Kaohsiung Motor Co., Ltd. 71,000
147,119
93,286
53,833
766,140
(23,210)
(16,681)		 (2.35)
22010152 Car-Plus Shanghai Investment (Samoa) co.,
Ltd		 284,800
411,451
0
411,451
0
(16)
32,464
Note
CAR-PLUS Auto Leasing (Shanghai)
22010153

Limited		 284,800 751,402
339,955		 411,448 237,132
36,214
32,480		 Note
22010154 Yulon TOBE Motor Co., Ltd. 28,080
220,405
170
220,235
0
(403)
(420)		 (0.15)
Suzhou YuShun Automobiles Sales &
22010157
ServiceLimited 44,904 42,865 8,706 34,159 3,677 (7,379) (4,921) Note
22010158 Jiangmen Junxing Automobile Sales Service
Co., Ltd.		 90,717 173,735
152,718
21,017
867,484
(9,123)
(21,739)		 Note
22010163 Hangzhou Y-teks Automotive Trim Parts Lt 305,061
234,055
140,313
93,742
77,286
(17,260)
(21,935)		 Note
22010164 YES-Energy Service Co., LTD. 290,000
837,374
616,841
220,534
163,125
2,765
(8,407)		 (0.29)
22010165 Hangzhou Yuwan Auto Motive Parts Limited 591,789
352,510
261,546
90,964
170,876
28,081
(18,317)		 Note
22010166 Hong Kong Yueki Holdings Co., Ltd. 301,888
51,423
14,244
37,179
0
0
(10,237)		 (0.03)

Yu Rong International Investment (SAMOA)
22010167

Co., Ltd.		 2,491,886 3,841,319
0
3,841,319
0
0
250,607
Note
22010169 Yu-Rong Leasing (Suzhou) Limited 2,182,400 20,363,439
16,451,024		 3,912,415
2,147,265
576,139
476,627
Note
22010170 Sinjang Co.,Ltd 428,240
1,078,609
538,683
539,926
440,686
94,455
77,964
1.82
22010174 Hangzhou HuaZhi Automobile Sales &
ServiceLimited		 89,809 2,077 357,709 (355,632) 3,111
(54,866)		 (107,286) Note
22010175 Feng-hua Investment (HK) Co., Ltd. 192,745
355,090
0
355,090
0
0
27,953
Note
22010176 Fujian YuXin Automobiles Sales & Service
Limited		 229,483 35,623 11,212
24,411
21,375		 (13,503) (15,897) Note
Hangzhou HuaYou Automobile Sales &
22010177

Service Limited		 35,924
129
219,770
(219,641)		 2,657
(32,840)
(43,517)		 Note
22010179 Xiaogan Yufeng Automobile Sales Service
Co., Ltd.		 141,684
469,357
244,526
224,831
1,378,535
45,755
28,137
Note
Ningbo Yu Chang Automobile Sales Service
22010180

Co.,Ltd.		 197,620 15,106 152 14,954
750		 (8,020) (15,238) Note
22010181 Shanghai Yumin Automobiles Sales &
Service Limited		 325,177 91,091
122,188
(31,097)		 10,472
(21,136)
(60,253)		 Note
Qingdao YuanHuang Automobiles Sales &
22010182

Services Limited		 222,010 343,586
383,980
(40,394)		 504,768
(2,896)
(23,157)		 Note
22010183 Suzhou Chenglong Auto Sales & Service Co. 192,743
453,174
98,080
355,094
1,365,596
41,711
27,954
Note

Suzhou ChengLi Automobile Sales &
22010184

Service Limited		 67,811 71,940
18,423
53,517
154,249
(753)
6,698
Note
22010185 Shenzhen Yuzhi Automobile Sales & Service
Limited		 88,552
12,806		 1,733 11,073 771
(4,331)		 (10,120) Note
Nanjing YuShang Automobile Sales &
22010186

Service Limited		 35,924
31,461
25,743
5,718
115,623
(14,885)
(48,656)		 Note
22010188 Yulon China Holdings Co. Ltd. 20,439,529 6,284,773
0		 6,284,898 0
0
2,582,206		 (26.76)
22010189 Yulon Motor Investment (HK) Co., Ltd. 20,439,529 6,284,842
74
6,284,893		 0
(332)
2,582,206		 Note
22010190 Yulon Automotive (China) Investment
Limited		 8,247,492 6,861,544
1,308,727		 5,552,817
7,929
128,401
3,218,531
Note
22010192 Power Engineering Co., LTD. 2,000
18,106
14,601
3,505
14,368
2,985
2,621
13.11
22010194 Changsha Yulu Automobile Sales & Service
Limited		 141,314 31,799
27,102
4,697
19,876
(10,809)
(47,487)		 Note
22010198 Hongyan Automobile Co.,Ltd. 190,063 41,830 0 41,830 0 0 (11,646) (0.61)
22010199 YU SHIN Investment Ltd. 161,852 64,552
3,577
60,975
0
(16)
(17,005)		 Note
22010201 HangzhouHua-chuangAutomobileInformati 449,428 240,292
652,105		 (411,813) 857,835 (128,901) (132,085) Note
22010202 Hua-chuang China Investment Co., Ltd. 461,709
(398,320)		 0
(398,320)		 0
0
(127,818)		 (2.77)
22010203 Hua-Chuang Overseas Investment Co., Ltd. 490,393
(398,033)		 0
(398,033)		 0
0
(108,920)		 (2.22)
22010205 Suzhou Eslite Automobiles Sales & Service
Limited		 181,435 310,924
117,973
192,951
417,718
9,527
5,816
Note
Suzhou ChengBang Automobiles Sales &
22010206

Service Limited		 44,904 208,826
150,590
58,236
549,161
15,856
10,056
Note

Annual Report 2020 405

Special Notes

Gain or loss
Company Paid-up Total Total Operating Operating Earnings
Company name Net Worth in current

code
Capital		 assets liabilities
revenues
profits
per share
period
22010207 Nanjing HanHong Automobile Sales &
Service Limited		 134,714
186,893
56,364
130,529
10,066
(24,891)
(29,683)		 Note
22010208 Yumin Inurance Broker Co., Ltd 5,000
4,900
310
4,590
36
(333)
(339)		 (0.68)
22010209 Jiangmen YuLi Automobiles Sales & Service
Limited		 45,813 107,269
95,563
11,706
304,023
(7,856)
(12,424)		 Note
Yu-Kuo Finance Leasing (Hangzhou)
22010210

Limited		 833,389 2,532,767
2,662,366
(129,599)		 480,329
(540,904)
(563,770)		 Note
22010211 Sinjang Investment (Samoa) Co., Ltd. 53,372 31,871
3		 31,868 0
(33)
546		 Note

Zhejiang Cheng Yi Automobile Technology
22010212

Service Co., Ltd		 87,296
28,616
13,145
15,471
15,953
(15,954)
(31,955)		 Note
22010213 ChiaHsing YuTa Automobiles Sales &
Service Limited		 81,164 23,117
43,383
(20,266)		 28,973
(13,923)
(31,731)		 Note
Suzhou Cheng-Hung Auto Sales & Service
22010214

Limited		 45,813
161,728
118,787
42,941
272,735
1,120
844
Note
22010215 Suzhou Cheng-Kuo Auto Sales & Service
Limited		 89,461
91,073
53,156
37,917
97,018
(556)
(8,861)		 Note
TaiTsang ChengMao Automobiles Sales &
22010216

Service Limited		 45,813 197,194
123,219
73,975
511,577
15,981
12,321
Note
22010218 Anhui Min Tong Automobiles Sales &
Service Limited		 45,813
25,342
1,785
23,557
3,083
(22,364)
(28,454)		 Note
Anqing Cai Tong Automobiles Sales &
22010219

Service Limited		 120,752
211
362
(151)		 0
(8,120)
(6,565)		 Note
22010222 Tongling Kuo Tong Automobiles Sales &
Services Limited		 74,904
11,015
2,866
8,149
299
(11,377)
(7,880)		 Note
Zibo Yu An Automobiles Sales & Services
22010223
Limited 68,475
546
2,659
(2,113)		 0
(1,984)
(7,174)		 Note
22010224 UNIVATION MOTOR PHILIPPINES, INC. 639,550
495,513		 302,637 192,876 197,832 90,092
2,421
0.51
22010225 Sheng Qing (Beijing) Investment Limited 5,410,916
4,561,732
518,654
4,043,078
1,370
(66,073)
(231,634)		 Note
22010226 Jing-Hui (Shanghai) Motor Technology
Limited		 49,231
67,933		 42,109 25,824
0		 (14,007) (15,464) Note
ZhuHai Esinn Automobiles Sales & Service
22010227
Limited 22,452
13,026
595
12,431
387
(5,307)
(14,912)		 Note
22010228 HANG ZHOU LIAN RUN MOTOR PARTS
CO.,LTD		 647,067
516,900
482,542
34,358
141,910
(47,865)
(29,524)		 Note
22010229 Shin Shin Investment (Samoa) Co., Ltd. 341,760
(32,547)		 0
(32,547)		 0
0
(226,022)		 Note
22010230 Yulon Motor Finance (China) Limited 4,364,800 15,461,850
11,382,418		 4,079,432
1,827,845
(711,511)
(89,115)		 Note
22010232 Da Wei Technology Co., Ltd 40,000
43,418
0
43,418
2
(32)
(2,100)		 (0.53)
22010233 Hangzhou Cheng Yi second - hand car
identification assessment Limited		 6,547 2,937
398
2,539
2,332
(3,135)
(3,138)		 Note
22010235 Zhejiang ChengYiauction Ltd. 8,730 3,697 420 3,277 240 (958) (873) Note
22010236 Hangzhou Yujie Real Estate Co., Ltd 2,182,400 2,203,652
188,229		 2,015,423
0
(6,021)
1,800
Note
22010237 Ta Teng Transportation Co.,Ltd. 6,000
8,192
1,840
6,352
11,659
(3,198)
(2,645)		 Note
22010239 Luxgen (Hangzhou) Motor Sales Co., Ltd 12,862,466 1,099,461
872,256
227,205
135,380
(451,249)
(594,813)		 Note
22010240 Yufong Property Management Co., Ltd. 25,000
82,984
33,422
49,562
92,916
7,465
6,090
2.44
22010241 Yulon Finance Overseas Invenstment
(Samoa) Co., Ltd.		 427,200
264,695
0		 264,695
0
0
(147,846)		 Note
Yulon Finance Philippines Invenstment
22010242

(Samoa) Co., Ltd.		 427,200
264,695
0
264,695
0
0
(147,846)		 Note
22010243 KUEN YOU TRADING CO., LTD. 10,000
52,541
38,730
13,811
163,585
(1,332)
1,603
1.60
22010246 Yulon Finance Philippines Co., Ltd 439,500
1,320,267
1,055,572
264,695
137,024
(147,184)
(147,846)		 (19.71)
22010247 Chuang Jie New Energy Vehicle (HZ)
Limited		 3,448,192 3,072,294
230,146		 2,842,148
231,953
(616,196)
(573,192)		 Note
CAR-PLUS Hangzhou Investment (Samoa)
22010248

Co., Ltd		 911,360
300,100
0
300,100
0
0
(424,217)		 Note
22010249 CAR-PLUS GO Co.,Ltd. 911,360 307,532
7,433		 300,100 16,238 (427,246) (424,218) Note
22010250 Wuhan TAC Auto Trade Co., Ltd. 8,730
17,621
29,468		 (11,847) 1,593
(11,484)
(11,631)		 Note
22010252 Dachuan Transportation Co., Ltd. 3,000
1,302
314
988
2,593
(310)
(244)		 Note
22010253 Damu Transportation Co., Ltd. 6,000
955
244
711
2,415
283
219
Note
22010254 Dajun Transportation Co., Ltd. 3,000
1,154
288
866
2,199
204
158
Note
22010256 Shanghai YuGuo Auto Trade Co., Ltd. 8,730
5,383
246
5,137
547
(56)
(261)		 Note
22010260 Fuzhou YuShin Automobile Technology Co. 51,912
196,704
153,879
42,825
314,474
(5,702)
(9,189)		 Note
22010261 Yongxiang Transportation Co., Ltd. 3,000
212
154
58
353
77
58
Note
22010262 Guoma Transportation Co., Ltd. 4,000
64
32
32
263
41
32
Note
22010263 Jinyu Transportation Enterprise Co., Ltd 3,000
323
189
134
311
162
133
Note
22010264 Zhongxing Automobile Co., Ltd. 3,500
169
69
100
218
131
100
Note
22010265 Liyang Automobile Co., Ltd. 9,000
5,480
408
5,072
1,009
91
73
Note
22010266 Heyang Transportation Co., Ltd. 6,000
164
146
18
127
22
18
Note
22010267 Jiayu Transportation Enterprise Co., Ltd 3,000
156
129
27
93
36
27
Note
22010268 Tianyang Transportation Co., Ltd. 6,000
214
160
54
266
73
54
Note
22010269 MINXIANG LEASING CO., LTD 30,000
32,346
2,342
30,004
1,355
(16)
0		 0.00
22010270 Advance Power MachineryCo.,Ltd. 5,000
45,536
35,155
10,381
68,061
(299)		 10,380
20.76
Note 1:
Not applicable because it is a limited company.
Note 2:
For those that are not mandatorily required to adopt IFRSs, the disclosures are still based		 on financial information prepared in accordance with GAAP.

406 YULON MOTOR

YULON MOTOR CO., LTD

Annual Report 2020

(II) Consolidated Financial Statements of Affiliates

Statement of Consolidated Financial Statements of Affiliates

The companies to be included by the Bank in the Sale or Contribution of Assets between an Investor and its Associate or Joint Venture of affiliates in accordance with the “Rules Governing the Preparation of Affiliated Company’s Consolidated Business Report, Affiliated Company’s Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and Relationship Report” in 2020 (from January 1 to December 31, 2020) are identical to those to be included in the Sale or Contribution of Assets between an Investor and its Associate or Joint Venture of the Parent Company and subsidiaries in accordance with the International Financial Reporting Standards No. 10. Also, the information to be disclosed in the Sale or Contribution of Assets between an Investor and its Associate or Joint Venture of the affiliated companies has been disclosed in said Sale or Contribution of Assets between an Investor and its Associate or Joint Venture of the Parent Company and subsidiaries. Therefore, the Bank will not separately prepare the Sale or Contribution of Assets between an Investor and its Associate or Joint Venture of the affiliated companies. Hereby declare

Company name: YULON MOTOR CO.,LTD

Responsible Person: Yen Chen Li-Lien

March 30, 2021

==> picture [44 x 43] intentionally omitted <==

(III) Relations Report: Not applicable

  • II. From 2020 up to the publication date of the annual report, private placement of marketable securities:

No such matter.

  • III. Holding or disposal of shares in the Company by the Company's subsidiaries during the most recent year (2020) or during the current year up to the date of publication of the annual report:

Unit: Thousands of NTD; shares; % As of 2021.4.30

Subsidiary Paid-up Source of The
Company’s		 Date of
 Number
 Acquisition Number
 Disposal Investment
 Number of
shares as of
the
 Set the pledge
 Amount of
endorsement
and
Amount as
of the
publication		 Amount
funds
lending by
name Capital capital shareholding
percentage		 acquisition
or disposal		 of shares
acquired		 amount of shares
disposed		 amount Gain or
loss		 publication
date of the
annual
report		 date of the
annual
report		 Circumstance
(Note)		 guarantee by
the Company
for its
subsidiaries
the
Company to
subsidiaries
Yu Ching 1,211,522 Operating
revenues		 100.00 2014.7.28 - - - - - 7,526,431 341,700 - - -
Operating
Yu Pong 271,697 100.00 2014.7.28 - - - - - 76 3 - - -
Revenues

Note: Impact on the Company's financial performance and financial position: None.

IV. Other supplementary information: None

  • V. Any of the situations listed in Subparagraph 2, Paragraph 3 of Article 36 of the Securities and Exchange Act, which might materially affect shareholder equity or the price of the Company's securities, which has occurred during 2020 or during the current year up to the date of publication of the annual report: No such matter.

Annual Report 2020 407

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Yulon Motor Co., Ltd. No. 39-1, Bir-Gong-Kong, Shi-Fu Village, Sanyi Town, Miaoli County

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