Stock Code: 2023

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ANNUAL REPORT 2019

Information declaration: http://sii.twse.com.tw Open information website: http://mops.twse.com.tw Related information: Same as above

Publication Date: May 15, 2020

I. Names, Titles and Contact Information of the Company's Spokesperson and Deputy Spokesperson: Spokesperson: Wu Lin-Maw Title: General Manager Tel: (07) 611-7181 Email: [email protected] Deputy Spokesman: Chen Yung-Hsien Title: Executive Deputy General Manager Tel: (07) 611-7181 Email: [email protected]

II. Address and Telephone Number of HQ and Factory:

HQ Address: No.369, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.) Tel: (07) 611-7181 Factory Address: No.369, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.) (Kaohsiung Plant) Tel: (07) 611-7181 Factory Address: No.369, Yuliao Rd., Qiaotou Dist., Kaohsiung City 825, Taiwan (R.O.C.) (Kaohsiung Plant) Tel: (07) 611-7181 Factory Address: No.6, Gongye 6th Rd., Pingtung City, Pingtung County 900, Taiwan (R.O.C.) (Pingtung Plant) Tel: (08) 755-0979 Factory Address: No.909, Fuxing Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.) (Luzhu Plant) Tel: (07) 697-4428 Factory Address: No.600, Zhong’an Rd., Yanchao Dist., Kaohsiung City 824, Taiwan (R.O.C.) (Yanchao Plant)

Tel: (07) 616-3001

III. Name, Address, Website, and Telephone Number of Stock Transfer Agency:

Name: Shareholder Service Dept., Taipei Office, Yieh Phui Enterprise Co.,Ltd Address: 15F., No.30, Beiping E. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.) Company website: www.yiehphui.com.tw Tel: (02) 2395-6780

IV. Contact Information of the Certified Public Accountants for the Latest Financial Report:

Names of CPAs: Huang Ling-Wen, Tsai Shu-Man Name of Accounting Firm: Crowe Horwath (TW) CPAs Address: 27F., No.6, Siwei 3rd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.) Website: www.crowehorwath.net/tw Tel: (07) 331-2133

V. Overseas Trading Places for Listed Marketable Securities and Ways of Making Inquiries: Listing location: none Ways for inquiries: none
VI. Company website: www.yiehphui.com.tw

		Table of Contents	Table of Contents
Chapter	1	Letter to Shareholders ................................................................................1
Chapter	2	Company Profile .........................................................................................9
		I.	Date of Incorporation .......................................................................................... 9
		II.	Company History ................................................................................................ 9
Chapter	3	Corporate Governance Report ..................................................................11
		I.	Organization ...................................................................................................... 11
		II.	Information on the Directors, President, Vice President, Associate Managers
			and Heads of Departments and Branch Offices ................................................ 14
		III.	Compensations to Directors, President and Vice Presidents ............................ 25
		IV.	Implementation of Corporate Governance ....................................................... 30
		V.	Information on CPA Expenses .......................................................................... 67
		VI.	Information on Switching CPAs ....................................................................... 68
		VII.	The Company's Chairman, President, Manager of Finance or Accounting who
			has worked in CPA Firms or their Affiliates within the latest Fiscal Year ....... 69
		VIII.	Transfer or Pledge of Equity by the Company's Directors, Executive Officers
			and Shareholders with more than 10% of the Company's Shares .................... 69
		IX.	IX.Information on the Top 10 Shareholders of the Company Who Are Identified
			as Related Parties, Spouse or Relative within Second-Degree of Kinship ....... 71
		X.	Number of Shares invested by the Company, any of the Company’s Directors,
			Supervisors, Executive Officers and Businesses directly or indirectly controlled
			by the Company, and Consolidated Percentage of Shareholding ..................... 75
Chapter	4	Funding Status ..........................................................................................77
		I.	Capital and Shares ............................................................................................ 77
			(I) Source of Share Capital......................................................................... 77
			(II) Structure of Shareholders ...................................................................... 79
			(III) Share Distribution ................................................................................. 80
			(IV) List of Major Shareholders ................................................................... 81
			(V) Information on Market Price, Net Worth, Surplus and Dividend per
			Share for the Most Recent Two Years ................................................... 81
			(VI) Dividend Policy and Implementation ................................................... 82
			(VII) Impact on Business Performance and Earnings Per Share (EPS) of any
			Stock Dividend Distribution Proposed or Adopted at the Most Recent
			Shareholders’ Meeting .......................................................................... 83
			(VIII) Compensation to Employees and Directors .......................................... 84
			(IX) Repurchase of Shares by the Company................................................. 85
		II.	Issuance of Corporate Bonds ............................................................................ 85
		III.	Issuance of Preferred Shares ............................................................................. 85
		IV.	Issuance of Overseas Depositary Receipt ......................................................... 85
		V.	Issuance of Employee Stock Option Warrants ................................................. 85
		VI.	Issuance of New Shares in Connection with Mergers and Acquisitions .......... 85
		VII.	Implementation of Capital Utilization Plan ...................................................... 85
Chapter	5	Operational Overview ..............................................................................86
		I.	Business Content .............................................................................................. 86
			(I) Scope of Business ................................................................................. 86

			(II) Industry Overview................................................................................. 90
			(III) Technology and R&D Overview ........................................................... 93
			(IV) Short- and Long-Term Business Development Plans ........................... 94
		II.	Market, Production and Sales Overview .......................................................... 95
			(I) Market Analysis .................................................................................... 95
			(II) Applications and Manufacturing Processes of Main Products
			............................................................................................................... 97
			(III) Supply of the Main Raw Materials ....................................................... 99
			(IV) Information of Customers that Contribute More Than 10% of Total
			Purchases/Sales in the Most Recent Two Years .................................. 100
			(V) Production Volume and Value of the Most Recent Two Years ............ 102
			(VI) Sales Volume and Value of the Most Recent Two Years ..................... 102
		III.	Employee Information .................................................................................... 103
		IV.	Environmental Protection Expenditure .......................................................... 103
		V.	Labor-management Relations ......................................................................... 104
		VI.	Important Contracts ........................................................................................ 108
Chapter	6	Financial Conditions ................................................................................110
		I.	Condensed Balance Sheet and Consolidated Income Statement for the Most
			Recent Five Years ............................................................................................ 110
		II.	Financial Analysis for the Most Recent Five Years ......................................... 114
		III.	The Audit Committee's Audit Report of the Most Recent Fiscal Year ............ 119
		IV.	The Most Recent Fiscal Year's Consolidated Financial Statements of the Parent
			Company and Its Subsidiaries Audited and Attested by the CPAs ................. 120
		V.	Individual Financial Statement for the Most Recent Fiscal Year ....................252
		VI.	Impact on the Company's Financial Status due to Financial Difficulties
			Experienced by the Company and Its Affiliates ..............................................390
Chapter	7	Review, Analysis, and Risks of Financial Status and Performance ........391
		I.	Financial Status................................................................................................391
		II.	Financial Performance .....................................................................................392
		III.	Cash Flow ........................................................................................................396
		IV.	Major Capital Expenditures in the Most Recent Fiscal Year and Their Impact on
			the Company's Financial Affairs ..................................................................... 397
		V.	Investment Policies for the Most Recent Fiscal Year, the Main Reasons for the
			Profits or Losses Generated thereby, Improvement Plans, and Investment Plans
			for the Coming Year.........................................................................................397
		VI.	Risk Analysis and Assessment .........................................................................398
		VII.	Other Important Items .....................................................................................403
Chapter	8	Special Items ...........................................................................................404
		I.	Information on Affiliated Companies ..............................................................404
		II.	Private Placement of Marketable Securities ....................................................417
		III.	Holding or Disposal of Company's Shares by Subsidiaries ............................417
		IV.	Supplementary Agenda ....................................................................................417
Chapter	9	Events which have Material Impact on Shareholders' Equity or the
		Company's Securities as Prescribed in Article 36, Paragraph 3,
		Subparagraph 2 of the Securities and Exchange Act, and Have Occurred
		from	the Most Recent Year to the Printing Date of This Report .............418

Chapter 1 Letter to Shareholders

ToShareholders:

In October 2019 Worldsteel said that in the short run the global demand for steel would increase 3.9% to 1.775 billion tons and to 1.7% or 1.8 billion tons in 2020. Also in January 2020 the World Bank predicted in Global Economic Prospect that the economic growth for the world in 2019 would be 2.9%, with 3.3% and 3.4%, respectively for 2020 and 2021. Due to the impact of Covid-19, the World Bank noted on March 5 that the rate for 2020 will be lower than 2.9%. To actively deal with the crunch, the World Bank offers $50 billion to help poor and middle income countries.

In 2019 the US adopted tax reform to stimulate the economy and the effect will be positive in 2020. However, the Covid-19 has forced China to implement various economic policies to reduce the burden of various industries since February. The finance ministers and central bankers of G7 convened urgently and announced to adopt all possible measures to defer the impact of the pandemic on March 3. To deal with the impact on the same day the Federal Reserve of the US lower the interest rate by 0.25% and further down 0.5% on March 15 with $700 billion for quantitative easing (QE). On March 23 announcing again that no limit for QE to help the industries and local governments.In addition, President Trump offered low interest loan of $50 billion to those impacted industries and deferring the tax for individual and small/medium businesses for three months. On March 13 the whole nation was in emergency and $50 billion was offered to help state and local governments to defend and test against Covid-19. On March 25, the Congress approved $2 trillion to stimulate the economy, the highest ever in history, about 10% of the GDP of the US. This packet includes $500 billion subsidy or loan to impacted industries, $500 billion to support citizens, $350 billion of loans for small/medium businesses, $250 billion for unemployment insurance, $130 billion for hospitals and $150 billion for state and local governments.

In addition to the US, many countries also offered their own remedies. The bail out plan for Japan is an unprecedented $135 billion or NT$4.1 and more could be on the way. South Korea offered emergency funds of 100 trillion won or NT$2.4 trillion to help small/medium businesses. Of these, 29.1 trillion won is for stabilizing the industries, 20 trillion won for the bond market, 10 trillion won for the security market. The Bundestag of Germany approved €1.1 trillion (NT$36 trillion) of bailing out plan on March 26 to help the medical expenses and loans to enterprises. The plan for Italy is €25 billion (NT$850 billion) and that for France is €300 billion (NT$10.1 trillion). With such colossal efforts and determination by various countries, there is great hope for ameliorating the impact of the pandemic.

For the prospect of this year, though the situation has become better after the US and China reaching the settlement of phase 1, the global economy is still full of black swans and grey rhinos.

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Confronting such volatile environments as the new norm, Yieh Phui will continue to adjust as the market changes with daring approaches to deal with future challenges.

I. The Outline of the Operation of 2019

Comparing 2019 with 2018 the sale volume of Yieh Phui decreased 11.73% and that of revenue is NT$5.055 billion. Yieh Phui (China)’s sales decreased by NT$5.542 billion due to a lower sales than a year ago. The sales volume of Yieh Hsing decreased and the decreased in revenue is NT$2.206 billion. Overall, the consolidated revenue is NT$59.688 billion, an decreased of 19.18% compared to the previous year of NT$73.856 billion. The consolidated net income after tax is NT$1.7 billion, a reduction of 741.75% from NT$2.65 million of the previous year, of which NT$1.401 billion is for the mother company, comparing with the previous year of net profit after tax NT$3.08 million, a reduction of 554.15%.

1. The Performance of Business Plan:

Consolidated Information of Financial Statements

Unit NT$ in (000)

Year Item	2019	2018	Changes	Changes%
Operaiton Revenue	59,687,597	73,856,189	-14,168,592	-19.18
Operaiton Costs	57,138,479	67,944,988	-10,806,509	-15.90
Operaiton Gross Profit(Loss)	2,549,118	5,911,201	-3,362,083	-56.88
Operaiton Expenses	3,444,311	4,452,691	-1,008,380	-22.65
Operaiton Net Profit(Loss)	-895,193	1,458,510	-2,353,703	-161.38
Non-operation Revenue and Expenses	-1,090,273	-1,102,964	12,691	1.15
Net Profit(Loss)before Tax	-1,985,466	355,546	-2,341,012	-658.43
Income Tax Expenses	-285,181	90,602	-375,783	-414.76
Net Profit(Loss)after Tax	-1,700,285	264,944	-1,965,229	-741.75
Other Comprehensive Income(net)	-329,270	-21,012	-308,258	1,467.06
Total Amount of Comprehensive Income in this Term	-2,029,555	243,932	-2,273,487	-932.02
Net Profit that Belongs to the Owner of the Parent Company	-1,401,081	308,506	-1,709,587	-554.15
Net Profit that Belongs to the Non-controllingequity	-299,204	-43,562	-255,642	586.85
Total Amount of Comprehensive Income that Belongs to the Owner of the Parent Company	-1,745,191	293,049	-2,038,240	-695.53
Total Amount of Comprehensive Income that Belongs to the Non-controllingequity	-284,364	-49,117	-235,247	478.95

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Financial Information of Company

Financial Information of Company	Financial Information of Company	Financial Information of Company	Financial Information of Company	Financial Information of Company
Unit NT$ in(000) Year Item 2019 2018 Changes Changes% Operaiton Revenue 24,971,014 30,026,324 -5,055,310 -16.84 Operaiton Costs 24,305,157 27,587,558 -3,282,401 -11.90 Operaiton Gross Profit(Loss) 665,857 2,438,766 -1,772,909 -72.70 Operaiton Expenses 1,238,112 1,562,679 -324,567 -20.77 Operaiton Net Profit(Loss) -572,255 876,087 -1,448,342 -165.32 Non-operation Revenue and Expenses -1,168,073 -587,176 -580,897 98.93 Net Profit(Loss)before Tax -1,740,328 288,911 -2,029,239 -702.38 Income Tax Expenses 339,247 19,595 319,652 1,631.29 Net Profit(Loss)after Tax -1,401,081 308,506 -1,709,587 -554.15
Year Item	2019	2018	Changes	Changes%
Operaiton Revenue	24,971,014	30,026,324	-5,055,310	-16.84
Operaiton Costs	24,305,157	27,587,558	-3,282,401	-11.90
Operaiton Gross Profit(Loss)	665,857	2,438,766	-1,772,909	-72.70
Operaiton Expenses	1,238,112	1,562,679	-324,567	-20.77
Operaiton Net Profit(Loss)	-572,255	876,087	-1,448,342	-165.32
Non-operation Revenue and Expenses	-1,168,073	-587,176	-580,897	98.93
Net Profit(Loss)before Tax	-1,740,328	288,911	-2,029,239	-702.38
Income Tax Expenses	339,247	19,595	319,652	1,631.29
Net Profit(Loss)after Tax	-1,401,081	308,506	-1,709,587	-554.15

Execution of the Budget: Yieh-Phui has not disclosed financial guidance and is not applicable to the rules on disclosing the execution of the budget.
Analysis of the Revenue/Expenditure and Profitability :

Consolidated Financial Report Information

Consolidated Financial Report Information
Item	2019	2018
Net cash inflow of operation activities(thousand dollars)	2,821,675	2,336,596
Equity/Assets(%)	32.77	34.05
Liabilities/Assets(%)	67.23	65.95
Long-term Funds accounting for the ratio of real estates, plants and equipments(%)	130.12	146.73
Current ratio(%)	75.73	93.56
Quick ratio(%)	40.66	47.75
Return on assets(%)	-0.76	1.46
Return on equity (%)	-5.96	0.89
Netprofit margin(%)	-2.85	0.36
Earningsper share(dollar)	-0.73	0.16
Number of shares bythe end of theyear(share)	1,913,327,518	1,875,811,292

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Financial Information of Company

Financial Information of Company
Item	2019	2018
Net cash inflow of operation activities(thousand dollars)	421,321	2,043,610
Equity/Assets(%)	54.22	54.84
Liabilities/Assets(%)	45.78	45.16
Long-term Funds accounting for the ratio of real estates, plants and equipment(%)	472.25	504.59
Current ratio(%)	53.14	62.43
Quick ratio(%)	25.87	28.66
Return on assets(%)	-2.15	1.30
Return on equity (%)	-5.22	1.11
Netprofit margin(%)	-5.61	1.03
Earningsper share(dollar)	-0.73	0.16
Number of shares bythe end of theyear(share)	1,913,327,518	1,875,811,292

4. Research and Development

Due to the global trend of environmental friendliness, major enterprises across the world have joined RE100, promising to use 100% renewable energy. This act has increased the demand of their supply chain for green energy. Promoting power generation via renewable means and reducing the demand of fossil fuel has been an international trend. The government of Taiwan has also put that as a national goal, aiming to have 20% power generation to be green (only 4.6% in 2018). Among these, the solar power will be over 70% from 2.5GW in 2018 to 20GW in 2025.

The Legislative Yuan passed the modification of the “Act of Developing Renewable Energy” on April 12, 2019 and implemented on May 1 the same year, stipulating that big power users have to establish or purchase a certain amount of green power. On February 26, the Ministry of Economic Affairs announced the enactment of the implementation of “Big Users Rules” to be started in April 2020. Users of power over 5000KW have to use 10% renewable energy. That is, 10% or 500KW of the power has to come from owned/bought green power with five years grace period. Also, there is early bird discount program. If done before 2023, it has to be only 8% and 9% before 2024. There are four options to satisfy the rule, self-built power generation, purchase of voucher or power, set up energy storage, or payment of NT$4.06 per unit. No doubt, the demand for green energy will soar to conform to the new regulation. Since the quality of solar panel bracket varies widely, Yieh Phui has 、 dedicated to develop products of PhuizerFan PhuizerMax. and COLORFAN to satisfy such needs. Yieh Phui is determined to be an SSRSS (Solar Steel Racket Solution Supplier) based in Taiwan and deploys suitable materials to deal with the drastic environment of Taiwan, Yieh Phui formally presents the prepainted steel for roof-top photo-electric system brackets and the prepainted steel for ground photo-electric system. Moreover, on April 7, 2020 Yieh Phui has cooperated with Greenharvest (subsidiary of SinoGreenergy Consultancy, in charge of developing and building solar photo-electric generation), Pro Chain Technology (specializing in roof-top photo-electric system construction) and Bo Di

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Energy (specializing in the design and processing of the solar photo-electric system brackets), signing cooperation agreement and establishing “Glory Grand Alliance”, the best national team in the photo-electric industry, offering comprehensive solution to various solar generation projects with real-time services and suitable steel materials. Such sales in 2019 and 2020 has reached 75,000 tons. The quality has won the praise of enterprises and power generators around the world, doing our part of renewables.

On product differentiation, Yieh Phui has successfully developed anti-microbial metallic coated steel sheets – regular spangle, used for the pipes for air-conditioning, and gained recognition by the public construction projects of Hong Kong, such as MRT and hospitals, and those of Macao. Yieh Phui continues to develop other high-end prepainted steel sheets and Al-Zn coated steel sheets for inner panels of ovens. The sales have steadily increased in 2016 and expected to expand in the projects of other appliances. In addition, Yieh Phui has finalized the production of Printed Prepainted Steel Sheets (wood & hairline patterns) for special applications in the industry and will deliver those products in 2017, enhancing the market prospect and the diversity of our offers. In 2018, Yieh Phui plans to develop coated steel with anti-microbial plus and anti-fingerprint treatment to be used in ducting and green construction materials in hospitals and luxurious residences, enhancing market expansion and product diversification. In 2019, Yieh Phui has successfully developed PVF prepainted steel products, which outperform PVDF and can be used to endure corrosion, weather and great processing for high end construction markets.

The trend of globalization has triggered the EU to issue the regulation of RoHS and WEEE, which focus on the recycling of electronic appliances, environment friendly production and their re-use. This policy has won the recognition of the whole world and Yieh Phui has developed products compliant with those regulations and earned big and long-term orders of major appliance producers. Later on in 2007 the EU issued REACH, controlling 16 ingredients in the materials, mixtures and products exporting to EU that may cause cancers, deformation and toxicity to the human reproductive system. Up to the end of 2019, there have been 216 such items and they have been put into Yieh Phui’s quality control and auditing system to protect the environment and the health of consumers. Recently, EU asks again to set a deadline on the use of steel products that contain hexavalent chromium and other new environmental instructions on construction materials like metallic and color coated steel sheets. The company has been aggressively and speedily developing multi-combination and multi-purpose products with suppliers of surface treatment and paints, becoming the first among Taiwan’s competitors to produce outdoor environmentally protective coated steel products. Yieh Phui will cooperate with the sales channels of the supply chain of dealers and roll formers, making sure that our products will reach the world market seamlessly; In 2019, Yieh Phui has developed environment-friendly surface processing to replace oiled one as a measure to deal with the defensive tariff of EU. The sale is above 580,000 tons annually, a breakthrough of the global crunch. Yieh Phui has reached a sales and promotion record.

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II. Overview of 2020 Business Plan:

Business strategy

Yieh Phui has been developing the global market for many years and achieved a system of order transfer that makes us far more flexible than domestic competitors. With a well-developed distribution system, we will continue to secure the established distribution channels and existing customers and expand into the niche markets through a series of sales strategies, including developing niche products, actively seeking strategic alliances and expanding market shares, aiming to reach multiple targets in deeper and broader scope. The Company's projected sales for 2019,domestic sales accounts for 30%~40% of the total sales, showing that we have never neglected the development of the domestic market. As always, we actively provide assistance to our downstream processing service providers to minimize the risks of unstable quality, poor capital flow, delayed shipment and exchange rate fluctuation. Our active approach directly enhanced our market competitiveness. At this stage, over 60%~70% of the Company's total sales come from exports. Therefore, the fluctuation of the global market deeply influences and drives the Company's performance. In addition, anti-dumping and safeguard actions taken by Australia, Thailand, Indonesia, and the U.S. see the rising tide of protectionism. These events highlighted the disadvantageous position of Taiwan in the global trade chain. Therefore, in addition to urging the government to sign FTA with our trade partners, we will continue to consolidate the resources in the steel industry and seek ways to lower the cost of sales to help our customers and the Company maximize market competitiveness in the global steel industry.

Expected sales and marketing strategies:

The Company's projected sales for 2020 include galvanized steel sheets at798,480 tons, pre-painted steel sheets at 218,998 tons, rolled steel coils at 2,650 tons, HRPO steel coils at 12 tons, steel structure engineering at 14,989 tons, crane equipment 48 units, and others (sale and purchase, OEM, and scraps) at 123,530 tons. The total comes to 1,158,659 tons and 48 units of cranes.

The Company's (consolidated) projected sales for the major products in 2020 include: galvanized steel sheets at 1,418,480 tons, pre-painted steel sheets at556,998 tons, rolled steel sheets at 290,650 tons, HRPO steel coils at 12 tons, steel structure engineering at 14,989 tons, crane equipment 48 units, wires at 183,000 tons, stainless steel at74,600 tons, steel pipes at 140,000 tons and, other products at 142,071 tons.

III. Corporate Strategies for Future Development

To maintain stable growth, Yieh Phui is getting the fourth expansion done in Changshu Economic Development Zone, Jiangsu, of Yieh Phui (China). The total production of hot-dip galvanizing in Taiwan and China has reached 26 million tons per year, becoming the largest independent coated steel sheet producer in the world. The fourth expansion of Yieh Phui (China) includes a one-million ton pickling and tandem cold mill (PLTCM), 500,000 tons of continuous annealing line (CAL), a 400,000 tons of hot-dip galvanizing line that can produce galvannealed steel sheets and a 220,000 tons of coil coating line. In addition, under the third hot-dip galvanizing line, an aluminum coated equipment is added. The products of the expansion will supply the massive cars and appliances markets in China.

Yieh Phui and Yieh Phui (China) both can produce hot-dip galvanized, hot-dip 5% Al-Zn coated, and hot-dip 55% Al-Zn coated steel coils. In addition Yieh Phui (China) can produce hot-dip Al-Zi coated steel coils and prepainted hot-dip galvanized steel coils using the above

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materials as a base with all sorts of variety and sizes to satisfy the needs of one-stop shopping for customers worldwide. The competitiveness and profitability is second to none.

In recent years, under the dual-production base model formed by Yieh Phui and Yieh Phui (China), the Company has begun to reinforce dual-axis operations through developing export markets outside of China and the niche markets. In response to the environmental trends, we have also been actively developing green steel products, aiming to exceed the competitors in the industry through the blue ocean strategy. In addition to the domestic market of China, Yieh Phui (China) pays attention to the ASEAN market after RCEP to deal with the tariff differences via Taiwan and China, adjusting production accordingly. This will enhance our market share and competitiveness in ASEAN and other world markets. This will strengthen Yieh Phui’s position as a global steel enterprise.

To promote safe and healthy living environment, Yieh Phui has pioneered the supply of “Anti-Microbial Coated Steel Sheets”. In 2018, to deal with rigorous concerns on hygiene of living, Yieh Phui developed “PhuizerGreen  AMC Plus and ColorGreen AMC Plus  ”. The products of “PhuizerGreen  AMC Plus”, “ColorGreen AMC Plus  ”, and “ColorGreen AS & AMC Plus  ” all conform to the environmental regulation of RoHS and REACH of EU and are leading the trend of the time.

The product of hot-dip 5% Al-Zn coated and Al-Mg-Zn coated steel sheets are easy to process and highly anti-corrosion, suitable for use in solar power installation, satisfying the needs for green power worldwide.

Therefore, the business strategy of Yieh Phui is to keep on promoting the sale in non-US and emerging markets, enhancing the alliance with locals, offering close/timely services, developing high quality products around the world.

IV. Impact from competition, legal environment, and overall economy

The impact of external environment to domestic market ：
Cheap imports of steel products poured into Taiwan, filling the market with low-price, low-quality materials that pose potential risks to people’s lives and the quality of public infrastructure. As a countermeasure, the government joined the domestic coated steel manufacturers to put forward anti-dumping complaints against China and South Korea in 2016. The 5-year-term anti-dumping duty has been inflicted since August 22, 2016. Nonetheless, attempts of low-price steel imports from other countries to enter the Taiwanese market still sustained, and the Company will continuously assess the effects on the domestic market.

Besides, the US started the implementation of section 232 on March 23, 2018 and has imposed 25% duty on imported steel products, arousing protectionism worldwide, impacting Taiwan’s steel business and rendering supply to exceed demand. The price competition is fierce and down-stream customers tend to be conservative. On the other hand, the trade war between China and the US has made the prospect of China’s economy and the steel market dubious. To avoid any adverse impact, many Taiwanese producers based in China have moved to southeastern Asia or back to Taiwan. The whole scenario needs time to observe. The development of the industry has been restricted.

For the domestic market, the investment has slowed down and the clampdown on farmhouses, building on farmland and tearing down on new violations have contributed to the lower the demand for galvanized steel products, hurting the domestic market. In contrast, the policy on electricity, green energy, solar/wind power all will increase the

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demand for related industries and help the sale of galvanized steel products. On the other hand, the trade war between the US and China seems to have slowed down for the phase 1 agreement signed in January 2020. However, the impact is still not clear. As a result, many Taiwanese producers based in China have moved back to Taiwan to avoid further impact, a niche for domestic market.

The impact of external environment to the market of China:
Between 2008 and 2015,China has rapidly expanded its steel production and exports. Many countries around the world have retaliated, forcing China to implement supply side reform. In 2016, China strongly cuts steel capacity; in 2017 China further enforced cuts on dirty steel and allows no production during winter. China has started restriction on steel production since 2018. With more stringent environment concerns, restricted realty market, global protectionism, and on-going trade war between the US and China, China will continue to reform its steel market. As to enhance domestic market, reduce the taxes overall, and expand investment on infrastructure, China has reduced the steel export since 2016, benefiting the operation of the steel industry of the world.
The impact of external environment to the export market ：
In the global market, due to anti-dumping of numerous countries and defensive measures against China’s dumping, Taiwan has been adversely affected, particularly the accusation on anti-dumping and anti-subsidy by the US. The most severe impact is the section 232 imposition of 25% tariff on steel and aluminum, causing the dramatic increase of the price of steel and reducing customers’ demand for imported products willing to purchase what is necessary. According to the announcement of the U.S.Department of Commerce on the anti-dumping of anti-erosion products of Yieh Phui, the assessment of the second year review is 0.51%, much better than the other sued and beneficial to our competitiveness. To deflect the impact of US 232 tariff on steel and aluminum and to avoid all the steel swarming to EU, EU has implemented the final defense of steel for three years since February 2, 2019. With the impact of Brexit and its economy stutters, IMF lowers the economic growth of Eurozone down to 1.3% for 2020, another 0.1% down since previous estimate.

The negotiation of RCEP had been concluded in November 2019 and expected to be signed in 2020, with ten nations of ASEAN and China with other five nations, excluding India. Most major Asian countries join the agreement except Taiwan. Thus, China, Japan, and South Korea would enjoy beneficial tariff rate and be more competitive. In addition, Vietnam has new capacity and more efficient utilization, increasing difficult time to Taiwan steel producers.

Australia is completely exempt from section 232 and their steel mills will export more to the US, reducing their sales to the domestic market, good news for companies exporting to Australia.

In October 2019, the World Steel Association predicted the demand for steel will increase 3.9% and 1.7% in 2019 and 2020, respectively. However, due to the COVID-19 outbreak, the short term prospect will be dubious, though the long term future still looks good. Overall, the world steel market is full of challenges with aggravating short term swings and has to be dealt with cautiously in a timely fashion.

Chairman: Lin I-Shou President: Wu Lin-Maw; Accounting Supervisor: Chien-Hung Lin

－8－

Chapter 2 Company Profile

I. Date of Incorporation:

Date of incorporation: April 14, 1978

License number: Unified Business No. 75947936

II. Corporate History:
Mergers and Acquisitions in the most recent year up to the date of publication of this annual report: none
Reinvested companies: Please see details on page 404
Company restructuring: none
Massive transfer or exchange of the Company's shares by Directors, Supervisors or persons holding more than 10 percent of the Company's shares: none
Changes in ownership and their impact on the Company: none
Major changes in management or business: none
Other important matters that may affect shareholders' interests and their impact on the Company:
1978.04 Kuo Chiao Enterprise Co., Ltd. was established with a capital of NT$1,600,000. 1986.03 Revised company name to Yieh Phui Enterprise Co., Ltd.
1990 Production began by establishing the first cold-rolling machine (January), the first pickling production line (May), and the first continuous coating production line (December).
1991.05 Production began by establishing the first continuous hot-dip galvanization production line.
1993.08 Galvanized steel plate and painted steel plate certified by JIS MARK of Japan.
1994.04 Production began by establishing the second continuous hot-dip galvanizing production line.
1995.07 Yieh Phui officially became a listed company. 1996.08 Production began by establishing the second cold-rolling machine. 1997.02 Acquisition of the second continuous coating line. 1997.07 Introduced the TPM management developed by Japan Institute of Plant Maintenance (JIPM).
1997.09 Production began by establishing the third continuous hot-dip galvanizing line. 1998.05 Officially signed the contract for the fourth continuous galvanizing line, for an annual output of 250,000 tons. Environmental protection specialist won awards and commended by the President.
1999.05 Signed a contract with Japan's Kawasaki Heavy Industries (KHI) for the third rolling line.
2000.02 Hot commissioning of the fourth continuous galvanizing line (Pingtung). 2000.05 Hot commissioning and production of the third continuous paint line. 2001.11 Won the JIPM TPM Awards. 2002.11 Official ground-breaking ceremony for the Changshu Technomaterial Co., Ltd. in Mainland China (total investment of US$231 million with a capital of US$79 million).
2003.01 The Board of Directors approved purchase of the assets of Yieh Hsing steel pipe factory I, steel pipe factory II, galvanizing factory, cold rolling mill machinery division and administration building, and investment in Lien Kang Heavy Industrial Co., Ltd. (approved by the Board of Directors).
2004.12 Won the JIPM TPM Awards for continuous pursuit of excellence. 2005.08 Merged Lien Kang Heavy Industrial Co., Ltd. and established Engineering Business Division.

－9－

2006.08 Yieh Phui Enterprise Co., Ltd. took over EMMT Systems Corp. 2010.03 Won the JIPM "Special Award for TPM Achievement 2009." 2011.03 Yieh Phui's previous steel pipe business division became Shin Yang Steel Co., Ltd., a 100% subsidiary of Yieh Phui. 2011.07 The brand "Yieh Phui" was named one of Taiwan's Top 100 Brands in the Centennial Celebration held by the Ministry of Economic Affairs. 2016.03 Won the JIPM "TPM Advanced Special Award 2015." 2018.08 Selected as the "Excellent Business for Issuing Uniform Invoices in 2018" by the Ministry of Finance. 2018.12 Won the gold certification of Talent Quality-management System (TTQS), issued by the Ministry of Labor. 2019.12 Won the "Health Management Award" and "Excellent Promotion Staff" for outstanding and healthy workplaces from the Health Promotion Administration, Ministry of Health and Welfare in 2019.

－10－

Chapter 3 Corporate Governance Report

I. Organization:

Structure of Organization : December 31, 2019

Organization of Yieh Phui Enterprise Co., Ltd.

==> picture [752 x 486] intentionally omitted <==

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

Board of
Remuneration Committee Directors Audit Committee
The Auditor's Office
Chairman
Chairman's
Office
Vice
Chairman
President
China Business Division
Technology Planning Office
Overseas Technology Office Steel Pipe Technology Office
Trade Safeguards and
Expansion Planning Committee
Executive Vice Investigation Management Office
President Dept. of Administration and Analytics
President's
Dept. of Business Planning
Staff Office
Dept. of Innovation Promotion
Vice President - Global Vice President Vice President Vice President Vice President, Vice President - Engineering Vice President - Production
Marketing & Sales - Finance - Technology - Planning Administration Division
Assistant VP - Production
Assistant VP - Global
Marketing & Sales Assistant VP - Technology Assistant VP - Planning
Vice President's Vice President's Vice President's Vice President's Vice President's Vice President's Vice President's Technology Development
Office Office Office Office Office Office Office Office
Domestic M Domestic Ma Technology Technical
Finance Division Investing Division Pre-Painting Pingtun U Mechanica
Human Resources
Public Affairs Office
Purchasing Division
Information System Division Production Planning Division Sales Management Division
Marketing Development Division TPM Development Office tilities Division
Industrial Safety & Health Office
Export Marketing & Sales Division I Export Marketing & Sales Division II Import and Market Research Office Engineering Design Office
arketing & Sales Division I rketing & Sales Division II Mechanical Production Division Steel Structure Sales & Construction Division Steel Structure Production Division Steel Structure Technology Division Pickling and Rolling Production Division Galvanizing Steel Production Division Steel Production Division g Production Division l Maintenance Division I Mechanical Maintenance Division II Electrical Engineering Division I Electrical Engineering Division II
----- End of picture text -----

－11－

2. Roles and Responsibility of Departments:

Department	Content of Business
The Auditor's Office	Implements the audit system and provides advises for improvement to themanagement.
Expansion Planning Committee	Sets equipment standards and specifications, plans and analyzes overall expansion and manages coordination and installation progress.
Trade Safeguards and Investigation Management Office	Handles domestic and international anti-dumping and trade remedy actions.
President's Staff Office	Carries out organizational planning and coordination, implements and manages the internal control system and standardization, tracks and analyzes corporate goals and performance, and promotes innovationaffairs.
Division I and Division II of the Domestic Marketing & Sales Divisions Division I and Division II of the Export Marketing & Sales Divisions	Processes requests for import and export price quotes and orders, manages contacts for shipment and executes sales campaigns.
Marketing Development Division	Manages development of the domestic and international markets.
Finance Division	Carries out accounting, tax filing, costing, budgeting and variance analysis, financial management, asset management and shareholder services.
Investing Division	Carries out studies on foreign investments and analysis on the effectiveness.
Technology Division	Manages production technology development, quality control and product specifications.
TechnicalServiceDivision	Manages after-sale services and technical improvement.
Information System Division	Manages development of the Company's computerized management system,installationandmaintenance of hardware equipment.
Production Planning Division	Manages production schedules based on the orders and production plan, order delivery and shipment and tracking and raw material storage andmanagement.
Sales Management Division	Manages shipping of customer orders, vehicle dispatch and shipment verification.
Import and Market Research Office	Carries out survey and analysis on the domestic and foreign markets andmanagesrawmaterials procurement.
Human Resources	Manages personnel, general affairs and documents and other relevantmatters.
PublicAffairs Office	Handles publicrelations affairs.
Industrial Safety & Health Office	Manages and implements the Company's workplace and labor safety andhealth relatedmatters.
TPM Development Office	Implements TPM Management activities, including individual improvement, self-maintenance, planned maintenance, education and training, health and safety, quality management, initial flow management, planning and monitoring the efficiency of indirect departments.
PurchasingDivision	Managesprocurement and related matters.

－12－

Department	Content of Business
Steel Structure Sales & Construction Division	Manages marketing, contracting, budgeting, cost control and work progress for engineering projects, acting to control and coordinated cross-departmentalworks.
Steel Structure Production Division	Manages manufacturing, installation and contractors for steel structures and coordinatesrelated works.
Steel Structure Technology Division	Manages technology planning, project quality control and constructiondrawingsforsteelstructures.
Mechanical Production Division	Manages sales, production planning, design, manufacturing and installation related matters for lifting equipment and other engineering projects.
Technology Development Office	Manages improvement of production equipment and processes.
Production Divisions	Manages production line operations, production efficiency and qualityimprovement.
Utilities Division	Manages operations and maintenance of public and wastewater treatmentfacilities.
Mechanical Maintenance 1, 2, 2	Manages service and maintenance of on-site mechanical equipment andfacilities.
Division I and Division II of the Electrical Engineering Division	Manages and maintain the maintenance of on-site electrical facilities.
Engineering Design Office	Carries out improvement of production line equipment, design of expansionprojects and review of design drawings.

－13－

II. Information on the Directors, President, Vice President, Associate Managers and Heads of Departments and Branch Offices: (I) The Chairman

(I)	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman	The Chairman
																	April 30,2020 Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship Remarks (Note) Title Name Relationship None None None None None None None None None None None None None None None None
Title	Nationality or Place of Registration	Name	Gender	Date Elected (Appointed)	Term	Date of First Elected	Shares Held When Elected		Number of Shares Held		Shares Currently Held by Spouse and Minor Children		Shares Held in Names of Other Persons		Education and Work Experiences	Concurrent Position in the Company and/or Other Company	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship			Remarks (Note)
							Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Chairman	Taiwan, R.O.C.	Kuo Chiao Investment & Development Co. Ltd. Representative: Lin I-Shou	Male	2019.06.21	3 years	2004.06.20	60,657,497 157,096	3.23	61,870,646 160,237	3.23	52,470	0	0	0	Chairman of the Board - Yieh United Director - Yieh Hsing	Chairman of the Board - Yieh Phui Able Win International Investment Limited - Chairman of the Board Wei Hung Investment Co., Ltd. - Chairman of theBoard	None	None	None	None
Director	Taiwan, R.O.C.	Kuo Chiao Investment & Development Co. Ltd. Representative: Wu Lin-Maw	Male	2019.06.21	3 years	2005.09.28	60,657,497 136,252	3.23	61,870,646 138,977	3.23	0	0	0	0	EMBA, National Sun Yat-Sen University VP Global Marketing and Sales - Yieh Phui	President - Yieh Phui Chairman of the Board - Yieh Phui (China) Chairman of the Board - EMMT Systems Corp. Chairman of the Board - Shin Yang SteelCo.,Ltd.	None	None	None	None
	Taiwan, R.O.C.	Kuo Chiao Investment & Development Co. Ltd. Representative: Ping-Yung Liang	Male	2019.06.21	3 years	2015.10.15	60,657,497 45,196	3.23	61,870,646 46,099	3.23	136,950	0	0	0	Department of Industrial and Information Management, National Cheng Kung University Deputy CEO of Yieh Lian Group Head Office, President of Yieh United Steel Corp., Senior Consultant and Special Assistant to the Chairman - YUSCO Corp.	Chairman of the Group Purchasing Management Committee and Special Assistant to the Chairman, E United Group	None	None	None	None
	Taiwan, R.O.C.	Kuo Chiao Investment & Development Co. Ltd. Representative: Ching-Tsung Huang	Male	2019.06.21	3 years	2005.09.28	60,657,497 0	3.23	61,870,646 0	3.23	12,018	0	0	0	Department of Accounting, Feng Chia University Special Assistant, Eliter International Corp.	Chia Yuan Investment & Development Co., Ltd. - Chairman of the Board Hsing Long Investment & Development Co., Ltd. - Director Lien Shua Investment Development Co., Ltd. - Director	None	None	None	None

－14－

Title	Nationality or Place of Registration	Name	Gender	Date Elected (Appointed)	Term	Date of First Elected	Shares Held When Elected	Shares Held When Elected	Number of Shares Held	Number of Shares Held	Shares Currently Held by Spouse and Minor Children	Shares Currently Held by Spouse and Minor Children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Concurrent Position in the Company and/or Other Company	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Remarks (Note)
							Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Independent Director	Taiwan, R.O.C.	Chin-Shu Sun	Male	2019.06.21	3 years	2013.06.20	0	0.00	0	0.00	0	0	0	0	Department of Accountancy, National Cheng Kung University CPA, Republic of China in practice for over 40 years Chairman of the Kaohsiung City Institute of Certified Public Accountants Member of the National Federation of CPA Associations of R.O.C. Supervisor of the Taiwan Provincial Institute of Certified Public Accountants	Independent Director - Yieh Phui Independent Director - Yieh Hsing Director - Li Hsin Management Consultant Independent Director - Co-Tech Development Corporation Director - Chi Chiang Enterprise Co.,Ltd. Director - Chi Hsin Management Consultant Co., Ltd. Independent Director - Dun-Nan Technology Co.,Ltd. Director - Jing-Shin Co.Ltd.	None	None	None	None
Independent Director	Taiwan, R.O.C.	Te-Yuan Yang	Male	2019.06.21	3 years	2016.06.22	0	0.00	0	0.00	0	0	0	0	PhD Economics, University of California, Santa Barbara Assistant Lecturer, Department of Economics, University of California, Santa Barbara Director, Department of Finance, National Kaohsiung University of Science and Technology Professor, Department of Money and Banking, National Kaohsiung University of Science and Technology	Remuneration Committee Committee, Yieh Phui Enterprise Co., Ltd. Remuneration Committee, Yieh Hsing Co., Ltd. Yieh Hsing Enterprise Co., Ltd. - Independent Director Yieh Phui - Independent Director	None	None	None	None

－15－

Title	Nationality or Place of Registration	Name	Gender	Date Elected (Appointed)	Term	Date of First Elected	Shares Held When Elected	Shares Held When Elected	Number of Shares Held	Number of Shares Held	Shares Currently Held by Spouse and Minor Children	Shares Currently Held by Spouse and Minor Children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Concurrent Position in the Company and/or Other Company	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Any Executive Officer, Director or Supervisor Who is a Spouse or Relative within the Second Degree of Kinship	Remarks (Note)
							Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Independent Director	Taiwan, R.O.C.	Wen-I Chang	Male	2019.06.21	3 years	2017.06.22	60,657,497 157,096	0.00	0	0.00	0	0	0	0	Passed the Civil Service Special Examinations Class B for Customs Officers and Civil Service Special Examinations for Tax Personnel in 1976 Internal revenue agent and section head in Revenue Service Office, Kaohsiung County Revenue assessor, section chief, and inspector in Kaohsiung Branch National Tax Administration of Southern Taiwan Province (NTAS), Ministry of Finance Inspector and auditor in Fengshan Branch, National Taxation Bureau of Kaohsiung, Ministry of Finance	Remuneration Committee, Yieh Phui Enterprise Co., Ltd. Remuneration Committee, Yieh Hsing Co., Ltd. Independent Director - Yieh Hsing Enterprise Co., Ltd. Independent Director - Yieh Phui	None	None	None	None

Note: The Chairman of the Company and the President or equivalent (the top manager) are the same person, are relatives of each other, such as spouse or first relative, and should explain the reasons, rationality, necessity and corresponding measures (such as increasing the number of independent directors, And there should be more than half of the directors who do not serve as employees or managers, etc.) related information.

－16－

Table 1: Major Shareholders of Institutional Shareholders

March 31, 2020

		March 31, 2020
Name of institutional shareholders (Note 1)	Major shareholders of institutional shareholders (Note 2)	Shareholding Percentage
Kuo Chiao Investment & Development Co. Ltd.	Yu Hong Industrial Co., Ltd.	39.66%
	Kiu Ling Amusement Co., Ltd.	12.55%
	Kuo-Zong Investment and Development Co., Ltd.	12.27%
	Wei Hong Investment and Development Co., Ltd.	11.43%
	Yieh Hung Enterprise Co., Ltd.	11.23%

Note 1: For Directors and Supervisors who are representatives of institutional shareholders, the names of the institutional shareholders shall be disclosed.
Note 2: Please declare names of the major shareholders (top 10 shareholders) and their shareholding of the corporate shareholders. If the major shareholders are institutional shareholders, please fill out Table 2 below.
Note 3: The legal shareholder is not a company organizer. The name and shareholding ratio of the shareholder that should be disclosed previously disclosed name of the funder or donor and their contribution amount or contribution ratio.

Table 2: Major Shareholders of Major Shareholders in Table 1 Who Are Institutional Shareholders

March 31, 2020

		March 31, 2020
Name of Institutional Shareholder (Note 1)	Major Shareholders of Institutional Shareholders (Note 2)	Shareholding Percentage
Yu Hong Industrial Co., Ltd.	Tsung-ChengLin	26.00%
	Tsung-Ching Lin	18.00%
	Tsung-Hsien Lin	18.00%
	Chih-Long Lin	18.00%
	Li-Chuan Lin	10.00%
Kiu Ling Amusement Co., Ltd.	Li-Chuan Lin	15.00%
	Tsung-Ching Lin	20.00%
	Tsung-Cheng Lin	20.00%
	Tsung-Hsien Lin	20.00%
	Jiayuan Investment Development Co., Ltd.	11.00%
	Yu Hong Industrial Co., Ltd.	10.00%
Kuo-Zong Investment and Development Co., Ltd.	Wei Chiao Investment Development Co., Ltd.	30.03%
	Lian Shuo Investment Development Co., Ltd.	24.00%
	Wei Hong Investment and Development Co., Ltd.	22.21%
	Yieh Hung Enterprise Co., Ltd.	13.80%
Wei Hong Investment and	Yieh Hung Enterprise Co., Ltd.	25.41%

－17－

Name of Institutional Shareholder (Note 1)	Major Shareholders of Institutional Shareholders (Note 2)	Shareholding Percentage
Development Co., Ltd.	Lin I-Shou	18.21%
	Hsing Lung Investment & Development Co., Ltd.	20.19%
	Wei Chiao Investment Development Co., Ltd.	13.40%
	Chia Yuan Investment and Development Co., Ltd.	11.39%
	Lian Shuo Investment Development Co., Ltd.	10.42%
Yieh Hung Enterprise Co., Ltd.	Tsung-ChengLin	10.75%
	Chih-Long Lin	12.85%
	Hsing Lung Investment & Development Co., Ltd.	19.34%
	Wei Hong Investment and Development Co., Ltd.	18.26%
	Wei Chiao Investment Development Co., Ltd.	11.01%

Note 1: As shown in Table 1 above, when a major shareholder is an institutional shareholder, disclose the name of the institution.
Note 2: Names of major shareholders (ranked top 10 in terms of shareholding) in the corporate shareholders and their shareholding ratio shall be filled in this section.
Note 3: The legal shareholder is not a company organizer. The name and shareholding ratio of the shareholder that should be disclosed previously disclosed name of the funder or donor and their contribution amount or contribution ratio.

－18－

March 31, 2020

(II) Director profile (2)

Requirement Name (Note 1)	Has more than 5 years of work experience and the following professionalqualifications	Has more than 5 years of work experience and the following professionalqualifications	Has more than 5 years of work experience and the following professionalqualifications					Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)					Number of other public companies concurrently serving as the Independent Director
	Serve in lecturer roles or above in public or private college institutions in one of the following departments: business administration, law, finance, accounting, or another discipline relevant to the Company's operations	Currently serving as a judge, prosecutor, lawyer, accountant, or other professional practice or technician that must undergo national examinations and specialized license.	Work experience necessary for Business administration, legal affairs, finance, accounting, or business sector of the Company	1	2	3	4	5	6	7	8	9	10	11	12
Director: Lin I-Shou			ˇ	-	-	ˇ	-	-	-	ˇ	ˇ	ˇ	ˇ	ˇ	-	None
Director: Ping-YungLiang			ˇ	-	-	ˇ	-	-	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	-	None
Director: Wu Lin-Maw			ˇ	-	-	ˇ	-	-	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	-	None
Director: Ching-TsungHuang			ˇ	-	-	ˇ	-	-	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	-	None
Independent Director: Te-Yuan Yang	ˇ			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	2
Independent Director: Chin-Shu Sun		ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	3
Independent Director: Wen-I Chang		ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	2

Note 1: The number of fields depends on the actual number.

Note 2: Please " " the box under each criteria number if the Director or Supervisor meets the criteria two years prior to resuming the position or during the term of service.

(1) A person who is not employee of the Company or its affiliated enterprises.
(2) A person who is not serving as a Director or Supervisor of the Corporation or any affiliated business (this does not apply in cases where the person is an Independent Director of the Company, its parent or subsidiary established in pursuant to this law or local laws and regulations).
(3) A natural person who is not a shareholder that hold more than 1% of the Company’s total shares or rank among top-10 shareholders, this applies for the Director him/herself, spouse, minor children, or shares held under others’ names.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the officers in the preceding (1), or of any of the above persons in the preceding (2) and (3).
(5) Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the Bank,

－19－

ranks as its top five shareholders, or has representative director(s) serving on the company’s board as director(s) or supervisor(s) based on paragraph 1 or paragraph 2, Article 27 of the Company Law, except where the Bank and its parent company, subsidiaries or subsidiaries of the same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.

(6) Not a director, supervisor, or employee of the bank of which the majority of board seats or voting shares is controlled by a company that also controls the same of the Bank, except where the Bank and its parent company, subsidiaries or subsidiaries of the same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(7) Not a director, supervisor, or employee of a compay of which the chairman or CEO (or equivalent) themselves or their spouse also serve as the Bank’s chairman or CEO (or equivalent), except where the Bank and its parent company, subsidiaries or subsidiaries of the same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the Bank, except where a specific company or institution holds more than 20% of the total number of issued shares of the Bank and not more than 50% of the shares and is serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(9) Not a member of Remuneration Committee, Public Tender Offer Review Committee, or Special Committee for Merger and Acquisition pursuant to Securities and Exchange Act or Business Mergers and Acquisitions Act, not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that provides commercial, legal, financial, accounting services or consultation to the Bank or to any affiliate, or a spouse thereof, and the service provided is an “audit service” or a “non-audit service which total compensation within the recent two years exceeds NT$500,000”. This restriction does not apply 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) Who have spousal or second-degree kinship relationships to any other director within the Company
(11) Where none of the circumstances in the subparagraphs of Article 30 of the Company Act applies.
(12) No person shall be elected in the capacity of the government, a juristic person, or a representative thereof, as provided in Article 27 of the Company Act.

－20－

(III) Information on the Company's President, Vice President, Associate Manager, and the Supervisors of all the Company's divisions and branch units.

March 31, 2020

Title	Nationality	Name	Gender	Date Elected (Appointed)	Personally	Personally	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Positions Concurrently Held in Other Companies	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Remark (Note)
					Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
President	Taiwan, R.O.C.	Wu Lin-Maw	Male	2002.10.22	138,977	0	0	0	0	0	Master, National Sun Yat-Sen University Yieh Phui, VP Global Marketing and Sales	Yieh Phui (China) - Chairman of the Board Yieh United - Supervisor Yieh Hsing - Chairman EMMT Systems Corp. - Chairman of the Board	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Tien-Chi Chang	Male	2005.08.01	161,972	0	0	0	0	0	National Chengchi University Finance Manager, Yieh Phui	Kuo Chiao - Supervisor Chien Huan - Supervisor	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Hsien-Tung Liu	Male	2006.09.08	207,708	0	0	0	0	0	Master of Financial Management, University of Colorado Boulder, USA Chairman - Tang Eng	Chairman - Yeo Yih Steel	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Ching-Tsung Huang	Male	2014.05.16	0	0	12,018	0	0	0	Feng Chia University Special Assistant, Eliter International Corp.	Chia Yuan - Chairman Hsing Long - Director Lien Shua - Director	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Cheng-Chang Wu	Male	2014.10.21	0	0	0	0	0	0	I-Shou University Kaohsiung County Councilor	E United Group - Chairman	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Hsien-Yao Chang	Male	2017.09.01	0	0	0	0	0	0	PhD in Political Science, Pantheon-Sorbonne University, France Legislator of 6th and 7th Legislative Yuan Specially Appointed Deputy Minister, Mainland Affairs Council, Executive Yuan Vice Chairman and Chief Secretary, Straits Exchange Foundation	None	None	None	None	None
Special Assistant	Taiwan, R.O.C.	Chia-Cheng Lin	Male	2012.08.01	0	0	0	0	0	0	The Taipei College of Science and Technology VP - Planning, Yieh Phui	E United Group - Chairman Chairman - Cheng Hsin Security	None	None	None	None
Special Assistant	Taiwan, R.O.C.	Chen-Wu Chang	Male	2005.08.01	820	0	0	0	0	0	National Cheng Kung University Associate Manager, Information System Division, Yieh Phui	E-United Group - Vice Chairman	None	None	None	None
Vice President - Planning	Taiwan, R.O.C.	Wei-Cheng Chen	Male	2006.03.14	340	0	0	0	0	0	University of Oklahoma Associate Manager of Production Planning - Yieh Phui	None	None	None	None	None
Vice President - Production	Taiwan, R.O.C.	Yang-Cheng Lan	Male	2003.10.01	27,675	0	0	0	0	0	National Cheng Kung University Plant Manager - Pre-painting Steel Production Division	None	None	None	None	None
Executive Vice President	Taiwan, R.O.C.	Chen Yung-Hsi	enMale	2005.04.01	121,177	0	5	0	0	0	Tamkang University Associate Manager, Finance Division, Yieh Phui	VP Finance - Yieh Phui (China) VP Finance - Yieh Hsing Yieh United - Supervisor	None	None	None	None
Vice President - Engineering	Taiwan, R.O.C.	Yao-Hsing Chien	Male	2006.09.01	1,562	0	0	0	0	0	Chung Yuan Christian University Acting Associate Manager, Technology Division, USEC	None	None	None	None	None

－21－

Title	Nationality	Name	Gender	Date Elected (Appointed)	Personally	Personally	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Positions Concurrently Held in Other Companies	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Remark (Note)
					Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Vice President - Global Marketing & Sales	Taiwan, R.O.C.	Shih-Chi Yang	Male	2006.12.01	0	0	0	0	0	0	National Chengchi University Manager, Global Marketing & Sales, Yieh Phui	None	None	None	None	None
Assistant VP - Production	Taiwan, R.O.C.	De-Jen Huang	Male	2006.03.01	0	0	0	0	0	0	National Cheng Kung University Manager, Technology Department, Yieh Phui	None	None	None	None	None
Vice President - Technology	Taiwan, R.O.C.	Ting-Kuo Shih	Male	2004.06.01	0	0	0	0	0	0	National Cheng Kung University Manager, Technology Department, Yieh Phui	None	None	None	None	None
Vice President - Steel Pipe Technology	Taiwan, R.O.C.	Chang-Hsin Ming	Male	2009.10.01	5,023	0	0	0	0	0	National Tsing Hua University Plant Manager, Pickling and Rolling Production Division, Yieh Phui	None	None	None	None	None
Assistant VP - Production	Taiwan, R.O.C.	Cheng-Feng Wu	Male	2005.12.01	318	0	700	0	0	0	National Chiao Tung University Manager, Electrical Maintenance Division, Yieh Phui	None	None	None	None	None
Vice President, Administration Division	Taiwan, R.O.C.	Wen-Pin Lin	Male	2008.05.16	109	0	302	0	0	0	Feng Chia University Manager, Management Division	None	None	None	None	None
Assistant VP - Global Marketing & Sales	Taiwan, R.O.C.	Yi-Feng Yang	Male	2007.11.05	0	0	0	0	0	0	Dayeh University Associate Manager, Marketing & Sales	None	None	None	None	None
Vice President of Technical Planning Office	Taiwan, R.O.C.	Sen-Lung Chen	Male	2003.08.16	21,325	0	1,655	0	0	0	National Cheng Kung University Manager, Technical Service Division, Phieh Phui	Director - Yieh Phui (China)	None	None	None	None
Senior Manager	Taiwan, R.O.C.	Kuo-Lin Yang	Male	2004.06.01	1,703	0	0	0	0	0	National Kaohsiung University of Applied Sciences Plant Manager, Galvanizing Steel Production Division	VP Technology - Yieh Phui (China)	None	None	None	None
Senior Consultant	Taiwan, R.O.C.	Yung-Fang Chang	Male	1997.05.01	179,041	0	1,512	0	0	0	National Taiwan Ocean University Associate Manager, Plating Plant, Yieh Phui	Vice Chairman and President - Yieh Phui (China)	None	None	None	None
Senior Professional Manager	Taiwan, R.O.C.	Wen-Chih Liu	Male	2014.12.01	0	0	0	0	0	0	Master Degree, National Taiwan University Manager, Kraft Heinz Company Taiwan Manager, Unilever Taiwan	Tianjin Lianfa- Vice President	None	None	None	None
Senior Manager	Taiwan, R.O.C.	Chuan-Hsieng Huang	Male	2015.04.01	0	0	0	0	0	0	National Chung Hsing University	Assistant Vice Chairman - E United Group	None	None	None	None
Senior Engineer	Taiwan, R.O.C.	Tai-An Gong	Male	2016.03.01	0	0	0	0	0	0	Cultural University	Vice President - Yieh Phui (China)	None	None	None	None
Professional Engineer	Taiwan, R.O.C.	Wen-Chao Huang	Male	2008.03.01	0	0	0	0	0	0	Institute of Metallurgical Materials, Illinois Institute of Technology Manager, Technical Management Office	Vice President - Yieh Phui (China)	None	None	None	None
Associate Director of the Department of Galvanizing	Taiwan, R.O.C.	Shun-Chin Tsao	Male	2009.10.01	0	0	0	0	0	0	National Taiwan Ocean University Plant Manager, Yieh Phui Pingtung Plant	None	None	None	None	None

－22－

Title	Nationality	Name	Gender	Date Elected (Appointed)	Personally	Personally	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Positions Concurrently Held in Other Companies	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Remark (Note)
					Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Professional Manager	Taiwan, R.O.C.	Jung-Chang Liao	Male	2009.11.01	0	0	0	0	0	0	National Chiao Tung University Manager, Production Planning Division, Yieh Phui	Associate Director, E-United Group	None	None	None	None
Associate Director of Machinery Production Department	Taiwan, R.O.C.	Chiu-Lin Pan	Male	2010.03.01	43,832	0	0	0	0	0	National Chiayi Institute of Agricultural Plant Manager, Mechanical Production Division, Yieh Phui	None	None	None	None	None
Senior Manager	Taiwan, R.O.C.	Chi-Chen Li	Male	2010.10.01	826	0	0	0	0	0	National Sun Yat-Sen University Manager, President Staff's Office	Assistant Vice Chairman - E United Group	None	None	None	None
Associate Director, Mechanical Maintenance Division	Taiwan, R.O.C.	Sheng-Wei Sung	Male	2011.09.01	2,853	0	0	0	0	0	Chin-Yi Institute of Technology Chung Hung Co., Ltd.	None	None	None	None	None
Finance Department	Taiwan, R.O.C.	Chien-Hung Lin	Male	2012.03.05	0	0	0	0	0	0	National Chengchi University Manager, Chinfon Commercial Bank Co., Ltd. Manager, Far Eastern International Bank	None	None	None	None	None
Senior Manager	Taiwan, R.O.C.	Wei-Cheng Chen	Male	2012.11.08	33,943	0	0	0	0	0	Pingtung Provincial Institute of Agriculture RESA Engineering Corp. Ting Ku Construction Co., Ltd.	E United Group - Vice Chairman	None	None	None	None
Associate Director, Domestic Marketing & Sales Division I	Taiwan, R.O.C.	Ming-Chia Tien	Male	2014.09.01	0	0	6,220	0	0	0	Chung Yuan Christian University Manager, Domestic Marketing & Sales Division	None	None	None	None	None
Associate Manager, Steel Structural Sales & Construction Division	Taiwan, R.O.C.	Wei-Kung Chang	Male	2015.04.01	0	0	0	0	0	0	Cultural University Associate Manager, Steel Tube Division, Hsin Yang	None	None	None	None	None
Associate Director of Information System Division	Taiwan, R.O.C.	Chun-Kai Huang	Male	2015.05.01	0	0	0	0	0	0	National Kaohsiung Institute of Technology Manager, Information System Division	None	None	None	None	None
Associate Manager, Sales Management Division	Taiwan, R.O.C.	Yuan-Hsing Kuo	Male	2015.06.01	0	0	0	0	0	0	Feng Chia University Senior Manager, Sales Management Division	None	None	None	None	None
Assistant General Manager?	Taiwan, R.O.C.	Wen-Cheng Pan	Male	2015.09.01	5,753	0	0	0	0	0	Chung Yuan Christian University Senior Manager, President Staff's Office	None	None	None	None	None
Associate Manager, TPM Development Office	Taiwan, R.O.C.	Wen-I Weng	Male	2016.01.06	65,753	0	0	0	0	0	The Taipei College of Science and Technology	None	None	None	None	None
Associate Manager, Technology Division	Taiwan, R.O.C.	Ping-Lin Yang	Male	2016.03.01	0	0	0	0	0	0	I-Shou University Senior Manager, Technology Division	None	None	None	None	None

－23－

Title	Nationality	Name	Gender	Date Elected (Appointed)	Personally	Personally	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares Held in Names of Other Persons	Shares Held in Names of Other Persons	Education and Work Experiences	Positions Concurrently Held in Other Companies	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Managerial Officers Who Have Spousal or Second-degree Kinship Relationships within the Company	Remark (Note)
					Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage			Title	Name	Relationship
Associate Director of Technical Management Office	Taiwan, R.O.C.	Chung-Chan Chiang	Male	2016.03.01	130	0	0	0	0	0	Feng Chia University Senior Manager, Technology Development Office	None	None	None	None	None
Associate of Trade Management Office	Taiwan, R.O.C.	Wen-Chung Tien	Male	2017.02.01	91,939	0	0	0	0	0	Feng Chia University Finance Manager	None	None	None	None	None
Associate Manager, Import and Market Survey Office	Taiwan, R.O.C.	Chia-En Kuo	Male	2017.02.01	0	0	0	0	0	0	Chung Yuan Christian University Manager, Import and Market Survey Office	None	None	None	None	None
Associate Manager, Domestic Marketing & SalesDivision II	Taiwan, R.O.C.	Wei-Pin Kan	Male	2017.03.01	0	0	0	0	0	0	Yung Ta Institute of Technology & Commerce Manager, Domestic Marketing & Sales Division I	None	None	None	None	None
Professional Manager	Taiwan, R.O.C.	Chen-Hsieng Lin	Male	2018.06.01	1,094	0	0	0	0	0	National Kaohsiung Marine University Senior Manager	Yilian Group Associate Manager	None	None	None	None
Associate of the Ministry of Utilities	Taiwan, R.O.C.	Hui-Fung Li	Male	2018.06.01	41,426	0	9,455	0	0	0	National Taiwan Ocean University Senior Manager	None	None	None	None	None
Professional Manager	Taiwan, R.O.C.	Hui-Jung Liao	Male	2019.03.01	8,076	0	4	0	0	0	First Technology University Senior Manager	E United Group Associate Manager	None	None	None	None
Professional Manager	Taiwan, R.O.C.	Cheng Zhijian	Male	2019.05.01	0	0	0	0	0	0	Daye University Master Professional Manager	Vice President - Yieh Phui (China)	None	None	None	None
Associate of Market Development Department	Taiwan, R.O.C.	Chen Wenhong	Male	2019.07.01	0	0	0	0	0	0	Master, National Sun Yat-Sen University Market Development Manager	None	None	None	None	None
Associate for Export	Taiwan, R.O.C.	Huang Fucai	Male	2019.07.01	0	0	0	0	0	0	Chung Yuan Christian University Export Manager II	None	None	None	None	None
Associate of Pingtung Production Department	Taiwan, R.O.C.	Hong Tianfu	Male	2020.03.02	21,927	0	1,869	0	0	0	National Kaohsiung University of Applied Sciences Pingtung Production Manager	None	None	None	None	None

Remarks: Where the Chairperson of the Board of Directors and the General Manager or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto. (such as increasing the number of Independent Directors and there should be more than half of the Directors who do not concurrently serve as employees or managers, etc.)

－24－

III. Compensations to Directors, President, and Vice Presidents:

(I) Remuneration of Directors and Independent Directors ( it shall disclose the remuneration paid to each individual)

Unit: NT $ thousands

																								Unit:	Unit:	NT $ thousands
Title	Name	Remuneration of directors										Sum of Items A, B, C, and D to NIAT Ratio (Note 10)		Compensations Paid to Concurrent Employees										Sum of Items A, B, C, D, E, F, and G to NIAT Ratio (Note 10)		Receiving remuneration from reinvestment enterprises other than the Company’s subsidiaries or parent company. (Note 11)
		Base Remuneration (A) (Note 2)		Retirement Pension (B)			Directors' Remuneration (C) (Note 3)		Business expense (D) (Note 4)					Salaries, bonuses, and special expenses (E) (Note 5)			Retirement pension (F)		Employee remuneration (G) (Note 6)
		The Company	All companies listed in this financial report (Note 7)	The Company		All companies listed in this financial report (Note 7)	The Company	All companies listed in this financial report (Note 7)	The Company	All companies listed in this financial report (Note 7)		The Company	All companies listed in this financial report (Note 7)	The Company	All companies listed in this financial report (Note 7)		The Company	All companies listed in this financial report (Note 7)	The Company		All companies listed in this financial report (Note 7) (Note 7)			The Company	All companies listed in this financial report
																			Cash amount	Stock amount	Cash amount		Stock amount
Chairman	Kuo Chiao Investment & Development Co. Ltd Representative: Lin I-Shou	3,851	3,851	-		-	-	-	144	309		-0.29	-0.30	-	1,125		-	-	-	-	-		-	-0.29	-0.38	5,317
Director	Kuo Chiao Investment & Development Co. Ltd Representative: Wu Lin-Maw	-	2,877	-		-	-	-	144	333		-0.01	-0.23	5,359	5,522		-	-	-	-	-		-	-0.40	-0.62	893
Director	Kuo Chiao Investment & Development Co. Ltd Representative: PingYongLiang	-	-	-		-	-	-	144	144		-0.01	-0.01	737	737		-	-	-	-	-		-	-0.06	-0.06	3,966
Director	Kuo Chiao Investment & Development Co. Ltd Representative: Ching-TsungHuang	-	111	-		-	-	-	144	313		-0.01	-0.03	2,264	2,267		108	108	-	-	-		-	-0.18	-0.20	552
Independent Director	Chin-Shu Sun	600	949	-		-	-	-	-	144		-0.04	-0.08	-	-		-	-	-	-	-		-	-0.04	-0.08	-
Independent Director	Te-Yuan Yang	484	834	-		-	-	-	-	144		-0.03	-0.07	-	-		-	-	-	-	-		-	-0.03	-0.07	-
Independent Director	Wen-I Chang	600	833	-		-	-	-	-	144		-0.04	-0.07	-	-		-	-	-	-	-		-	-0.04	-0.07	-
1. Please state the policy, system, standards and structure of independent directors ’remuneration payment, and describe the relevance to the amount of remuneration according to the responsibilities, risks, and time invested: (1) Remuneration for Independent Directors is paid on a monthly basis but not participating in the annual distribution of director's remuneration. (2) According to the company's operating performance, the same year-end consolation fund will be awarded. 2. Otherthandisclosureinthe above table,Director remunerations earned by providing services (e.g. providing consulting services as anon-employee): None
					Table of Remuneration Range
Table of Remuneration Ranges for Directors					Name of Director
					Totalof(A+B+C+D)											Totalof(A+B+C+D+E+F+G)
					The Company (Note 8)						All companies listed in this financial report (Note 9)H					The Company ( Note 8)						All companies listed in this financial report (Note 9)I
Less than NT$ 1,000,000					Wu Lin-Maw, Ching-Tsung Huang, Ping-Yung Liang, Chin-Shu Sun,Te-Yuan Yang, Wen-IChang						Ching-Tsung Huang, Ping-Yung Liang, Te-Yuan Yang, Wen-IChang					Ping-Yung Liang, Chin-Shu Sun Te-Yuan Yang, Wen-IChang						Liang Pingyong, Yang Deyuan, Wen-IChang
FromNT$1,000,000 to1,999,999											Chin-Shu Sun											Chin-Shu Sun
FromNT$2,000,000 to2,499,99											Wu Lin-Maw					Ching-TsungHuang						Ching-TsungHuang
FromNT$ 3,500,000 to4,999,999					I. S. Lin						I. S. Lin					I. S. Lin
From NT$5,000,000 to 9,999,999																Wu Lin-Maw						Lin I-Shou,Wu Lin-Maw
FromNT$10,000,000 to14,999,999
FromNT$15,000,000 to29,999,999
FromNT$30,000,000 to49,999,999
FromNT$50,000,000 to 99,999,999
NT$100,000,000 or more
Total

－25－

(II) Remuneration for President and Vice Presidents (aggregate remuneration with name(s) indicated for each remuneration range)

														Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands
Title	Name	Salary (A) (Note 2)		Retirement Pension (B)			Bonuses and Special Allowance etc. (C ) (Note 3)		Employee Compensations (D) (Note 4)					Sum of items A, B, C and D to net income after taxes (NIAT) Ratio (%) (Note 8)		Remuneration received from parent company or an invested company other than the Company’s subsidiaries (Note 9)
		The Company	All companies listed in this financial report (Note 7) (Note 5)	The Company	All companies listed in this financial report (Note 7) (Note 5)		The Company	All companies listed in this financial report (Note 5)	The Company			All companies listed in this financial report (Note 5)		The Company	All companies listed in this financial report
									Cash amount	Stock amount		Cash amount	Stock amount
President	Wu Lin-Maw	16,925	18,701	528		528	2,795	3,028	-	-		-	-	-1.45	-1.59	1,297
Executive VP concurrently serve as Vice President - Finance	Chen Yung-Hsien
Vice President - Global Marketing& Sales	Shih-Chi Yang
Vice President - Production	Yang-ChengLan
Vice President - Planning	Wei-ChengChen
Vice President - Technology	Ting-Kuo Shih
Vice President - Steel Pipe Technology	Chang-Hsin Ming
Vice President - Engineering	Yao-Hsing Chien
Vice President, Administration Division	Wen-Pin Lin (Since May1,)
						Table of Remuneration Range
Compensations of Presidents and Vice Presidents by				Range		Names of the President and Vice Presidents
						The Company (Note 6)					All companies listed in this financial report(Note					7)E
Less than NT$ 1,000,000
From NT$ 1,000,000 to 1,999,999						Ting-Kuo Shih, Yang-Cheng Lan, Chang-Hsin Ming, Shih-Chi Yang,Yao-HsingChien,Wen-Pin Lin					Ting-Kuo Shih, Yang-Cheng Lan, Chang-Hsin Ming, Yao-HsingChien,Wen-Pin Lin
From NT$ 2,000,000 to 34,999,999						CHEN,YUNG-HSIEN,Wei-ChengChen					CHEN,YUNG-HSIEN,Shih-Chi Yang,Wei-ChengChen
From NT$ 3,500,000 to 4,999,999
From NT$5,000,000 to 9,999,999						WU,LIN-MAW					WU,LIN-MAW
From NT$10,000,000 to 14,999,999
From NT$15,000,000 to 29,999,999
From NT$30,000,000 to 49,999,999
From NT$50,000,000 to 99,999,999
NT$100,000,000 or more
Total

－26－

(III) The remuneration of the top 5 remuneration executives of the listed OTC company ( it shall disclose the remuneration paid to each individual)

Title	Name	Salary (A) (Note 2)	Salary (A) (Note 2)	Retirement Pension (B)	Retirement Pension (B)	Bonuses and Special Fees etc. (C ) (Note 3)	Bonuses and Special Fees etc. (C ) (Note 3)	Employee Remuneration (D) (Note 4)	Employee Remuneration (D) (Note 4)	Employee Remuneration (D) (Note 4)	Employee Remuneration (D) (Note 4)	Proportion of NIAT after summing the 4 items of A, B, C, andD(%) (Note 6)	Proportion of NIAT after summing the 4 items of A, B, C, andD(%) (Note 6)	Remuneration paid to directors from an invested company other than the Company’s subsidiaries or parent company (Note (Note 7)
		The Company	All companies listed in this financial report (Note 7) (Note 5)	The Company	All companies listed in this financial report (Note 7) (Note 5)	The Company	All companies listed in this financial report (Note 7) (Note 5)	The Company		All companies listed in this financial report (Note 5)		The Company	All companies listed in this financial report (Note 7)
								Cash amount	Stock amount	Cash amount	Stock amount
President	WU, LIN-MAW	4,859	5,022	-	-	500	500	-	-	-	-	-0.38	-0.39	893
Executive VP concurrently serve as Vice President - Finance	CHEN, YUNG-HSIEN	1,757	2,664	-	-	335	568	-	-	-	-	-0.15	-0.23	404
Vice President - Global Marketing & Sales	Shih-Chi Yang	1,516	2,046	90	90	247	247	-	-	-	-	-0.13	-0.17	-
Vice President - Planning	Wei-Cheng Chen	1,616	1,792	99	99	288	288	-	-	-	-	-0.14	-0.16	-
Vice President - Engineering	Yao-Hsing Chien	1,504	1,504	90	90	380	380	-	-	-	-	-0.14	-0.14	-

－27－

(IV) Employee Profit Sharing Granted to Management Team: Not applicable (no employee remuneration paid in 2019)
(V) Employee Profit Sharing Granted to Top 10 Employees: (no employee remuneration paid in 2019)
(VI) Analysis of the total remuneration paid to the Company's Directors, Supervisors, President, and Vice President by the Company and all consolidated entities in the most recent 2 years as a % of net income, and explanation on the remuneration policy, standards and packages, determination procedures, and correlation with business performance.
(1) Total compensations paid to the Company's Directors, Supervisors, President, and Vice Presidents in the most recent 2 years and its proportion to NIAT

	2018	2018	2019	2019
Title	Total remuneration paid to Directors, Supervisors, President, and Vice Presidents as a % of net income	Total remuneration paid to Directors, Supervisors, President, and Vice Presidents in the consolidated financial statements as a % of net income	Total remuneration paid to Directors, Supervisors, President, and Vice Presidents as a % of net income	Total remuneration paid to Directors, Supervisors, President, and Vice Presidents in the consolidated financial statements as a % of net income
Director	5.54%	7.54%	-1.04%	-1.48%
Supervisor	0%	0%	0%	0%
President and Vice Presidents	7.16%	8.18%	-1.45%	-1.59%

(2) Policies, standards, and packages of remuneration:
The Company pays fixed monthly traveling expenses to the Directors, monthly fixed remuneration and the same annual comfort payment to Independent Directors.
- The salary of the Chairman shall be agreed upon by the board of directors in accordance with the standards of relevant industries and listed companies, and other payment shall be paid in accordance with the remuneration system.
The Company's remuneration paid to managerial officers is determined in accordance with the Company's remuneration system, overall operating performance, and the managerial officer's performance evaluation.
Remuneration to Directors are determined in accordance with Article 30-1 of the Articles of Incorporation, where no greater than 0.1% of profits, if any, should be distributed as remuneration to Directors. The remuneration for 2018 is 0.05%.

－28－

(3) Procedures for setting remuneration and its relevance to business performance The procedures for formulating remuneration packages are reviewed on a regular basis for the reasonableness of the remuneration structure in accordance with the Company's Remuneration Committee. Directors serve as employee and managers participate in operation and reasonable remuneration is provided which takes into consideration the Company's overall operation performance, individual performance achievement rate , and level of contribution to the company's performance are subject to review by the Remuneration Committee and submitted to the Board of Directors submitted to the board of directors for general agreement.

－29－

IV. Implementation of Corporate Governance

(I) Operations of the Board of Directors

The Board of Directors met 9 times in 2019. Attendance is as follows:

Title	Name (Note 1)	Times of attendance in person	Times of attendance by proxy	Percentage of attendance in person (%) (Note2)	Remark
Chairman	Kuo Chiao Investment & Development Co. Ltd. Representative:Lin I-Shou	8	1	88.89%	Succeeded on June 21, 2019
Director a	Kuo Chiao Investment & Development Co. Ltd. Representative:Ping-YungLiang	9	0	100.00%	Succeeded on June 21, 2019
Director c	Kuo Chiao Investment & Development Co. Ltd. Representative: WuLin-Maw	9	0	100.00%	Succeeded on June 21, 2019
Director d	Kuo Chiao Investment & Development Co. Ltd. Representative: Ching-TsungHuang	9	0	100.00%	Succeeded on June 21, 2019
Independent Directora	Te-Yuan Yang	9	0	100.00%	Succeeded on June 21, 2019
Independent Directorb	Chin-Shu Sun	9	0	100.00%	Succeeded on June 21, 2019
Independent Director d	Wen-I Chang	9	0	100.00%	Succeeded on June 21, 2019
Other required disclosure: I. Where the proceedings of the board meeting include one of the following circumstances, then describe the date, session, topic discussed, opinions of every Independent Director, and the Company's handling the opinions of Independent Directors: (I) For items listed in Article 14-3 of the Securities and Exchange Act: Please refer to page 63 (II) In addition to the previous issues, other resolutions made by the Board of Directors which are opposed or reserved by the Independent Directors and have records or written statements: the Independent Directors of the Company agree with the major proposals of the Board of Directors without any objection or reservation. II. Regarding recusals of Directors from voting due to conflicts of interests, the names of the Directors, contents of motions, reasons for recusal, and results of voting shall be specified: None. The first meeting of the Board in 2019: January 22, 2019 1. Proposal 2: To discuss the annual (including years of service) and performance bonuses to the Chairman as approved by the Company's Remuneration Committee. (Since proposal 2 discussed the year-end (including seniority) and performance bonus of Chairman Lin I-Shou, which is related to his own interests, he should voluntary recuse. Chairman Lin I-Shou appointed Director lin-Maw Wu has been appointed as the acting Chairman of the second case. ) Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed. 2. Proposal 3: Discuss the year-end consolation fund approved by the Company's Remuneration Committee as an Independent Director and concurrently as an Audit Committee member. (Proposal was related to compensations paid to Independent Directors Chin-Shu Sun, Te-Yuan Yang, and Wen-I Chang; therefore, they recused themselves from the meeting to avoid conflict of interest.) Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed. 3. Proposal 4: To discuss the year-end consolation of the Company's Remuneration Committee through Independent Directors and concurrently serving as a Remuneration Committee member. (Proposal 4 was related to Remunerations paid to Independent Directors who are also members of the Remuneration Committee, namely, Chin-Shu Sun, Ching-Hui Hsieh , and Te-Yuan Yang , therefore, they recused themselves from the meeting to avoid conflict of interest). Resolutions: Except those abstained from the discussion and voting to avoid conflict of interest, all other Directors present voted in favor. The proposal was passed as proposed. 4. Proposal 5: To discuss the year-end (including seniority ) and performance bonuses to the managers of 2018 as approved by Remuneration Committee. (Proposal 5 was related to the year-end (including years of service) and performance bonuses paid to President Wu Lin-Maw and the senior consultant Ching-Tsung Huang, they recused themselves from the meeting to avoid conflict of interest. ) Resolution: Other than those Directors who recused themselves from participation, discussion, and voting at the meeting as required by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed. The 2nd meeting of the Board in 2019: March 21, 2019 1. Proposal 2: To discuss the allocation of remuneration to the Directors and employees in 2018. (Since the discussion on the remuneration of the Chairman, Directors and Managers in proposal 2 is related to their own interests, they should voluntary recuse. Chairman Lin I-Shou appointed Chin-Shu Sun has been appointed as the acting chairmanto discuss the second case. )

－30－

		Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required
		by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed.
	The	5th Meeting of the Board: : June 22, 2019
	1.	Proposal 9: To discuss the monthly traveling expenses proposed by the Directors of the Remuneration Committee.
		(As the proposal discussed the traveling expenses of Chairman Lin I-Shou, Director Lin-Mao Wu, Director Ping-
		Yung Liang and Director Chin-Tsung Huang; therefore, they recused themselves from the meeting to avoid conflict of
		interest and Independent Director Chin-Shu Sun has been appointed as the acting Chairman. )
		Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required
		by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed.
	2.	Proposal 10: To discuss the remuneration of Independent Directors proposed by the Remuneration Committee.
		(As the proposal was related to remunerations paid to Independent Directors Chin-Shu Sun, Te-Yuan Yang, and Wen-I
		Chang; therefore, they recused themselves from the meeting to avoid conflict of interest.)
		Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required
		by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed.
	3.	Proposal 11: To discuss the salary and remuneration of the members of the Remuneration Committee proposed by the
		remuneration committee.
		(The proposal was related to traveling expenses paid to Chin-Shu Sun, Te-Yuan Yang, and Wen-I Chang of remuneration
		committee; therefore, they recused themselves from the meeting to avoid conflict of interest.)
		Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required
		by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed.
	4.	Proposal 12: To discuss the structure and amount of the managers' remunerations proposed by the Remuneration
		Committee.
		(Because the proposal discusses the remuneration of President Wu Lin-Maw and senior consultant Ching-Tsung
		Huang, which are related to their own interests, they should voluntary recuse and Chin-Shu Sun has been appointed as
		the Acting Chairman. )
		Resolution: Other than those Directors who recused from participation, discussion, and voting at the meeting as required
		by law, all Directors presented at the meeting did not present any objection and approved the proposal as proposed. The
		7th meeting of the Board in 2019: September 6, 2019
	1.	Proposal 1: To discuss the Company's intent to participate in the capital increase of Great Emperor Hotel Co. Ltd.
		(hereinafter referred to as Great Emperor).
		(Since Chairman Lin I-Shou and Director Wu Lin-Maw are Directors of Great Emperor in the case of capital increase,
		they should voluntary recuse in accordance with the law, and Director Ping-Yung Liang has been appointed as the Acting
		Chairman by Chairman Lin I-Shou).
		Resolutions: Except those abstained from the discussion and voting to avoid conflict of interest, all other Directors
		present voted in favor. The proposal was passed as proposed.
	2.	Proposal 2: To discuss the Company intends to participate in the capital increase of Kingsgarden International Co., Ltd.
		(hereinafter referred to as Kingsgarden).
		(Since Chairman Lin I-Shou and Director Wu Lin-Maw are directors of Kingsgarden in the case capital increase, they
		should voluntary recuse in accordance with the law, Director Ping-Yung Liang has been appointed as the Acting
		Chairman by Chairman Lin I-Shou)
		Resolutions: Other than those abstained from the discussion and voting to avoid conflict of interest, all other Directors
		present voted in favor. The proposal was passed as proposed.
III.	The	Company shall disclose the evaluation cycle and period, evaluation scope, method and evaluation content of the board of
	directors' self (or peer) evaluation. Please refer to p63
IV.	The	goals (such as establishing the Audit Committee and increase information transparency, etc.) of strengthening the
	functionality of the Board of Directors in the current and immediately preceding fiscal years, and the evaluation of their
	executions.
	1.	2019.3.21 The Board of Directors establishes corporate governance supervisors to assist Directors to comply with laws
		and regulations, handle the Board of Directors and shareholders' meetings in accordance with the law, and provide
		Directors with information necessary for the execution of business in order to enhance the effectiveness of the Board of
		Directors.
	2.	2019.1.05 The Board of Directors passed the Board performance evaluation method, regularly evaluated the Board of
		Directors, functional Committees and Individual Directors, and submitted the evaluation results to the Board of Directors
		on 2020.01.10.
	3.	Conduct educational courses for directors to enhance their professional knowledge.
		The Company website discloses the quarterly and annual financial report and companyregulationsin English

－31－

Evaluation the performance of the Board of Directors

Evaluation cycle	Period	Scope	Methods	Content
Once a year	2019.01.01~ 2019.12.31	Performance evaluation of the Board of Directors, individual Board members and functional committees	1. Self-evaluation of the Board of Directors 2. Self-evaluation of Directors 3. Self-evaluation within the functional Committee	1. Board Performance Evaluation: It includes the degree of participation in the operation of the Company, the decision-making quality of the Board of Directors, the composition and structure of the Board of Directors, the selection and continuous learning of Directors, internal control, etc. 2. Performance Evaluation of Individual Directors: It includes the mastery of the Company's goals and tasks, the recognition of Directors' responsibilities, the degree of participation in the Company's operation, internal relationship management and communication, Directors' professional and continuous learning, internal control, etc. 3. Performance Evaluation of The Functional Committee: The degree of participation in the Company's operation, the cognition of the responsibilities of the functional Committee, the decision-making quality of the functional Committees, the composition and selection of the members of the functional Committees, and theinternalcontrol, etc.

－32－

(II) Operations of the Audit Committee:

Operations of the Auditing Committee

The Audit Committee met 8 times (A) in 2019. Information regarding attendance of the Independent Directors is provided below:

Title Name Times of Times of Percentage of actual Remark attendance in attendance by attendance (%) person (B) proxy ( Ｂ / Ａ ) (Note)
Independent Succeeded on June Te-Yuan Yang 8 0 100.00%
Director a 21, 2019
Independent Succeeded on June Chin-Shu Sun 8 0 100.00%
Director b 21, 2019
Independent Succeeded on June Wen-I Chang 8 0 100.00%
Director d 21, 2019
Other required disclosure: I. If the Audit Committee has any of the following circumstances, the date, session, proposal content, the resolution of the Audit Committee and the Company's response toward the audit Committee's opinions shall be specified. (I) For items listed in Article 14-5 of the Securities and Exchange Act: Please refer to note 1. (II) Except the preceding issues, other resolutions approved by two-thirds of all Directors but yet to be approved by the Audit Committee: Please refer to note 1.
II. In regard to any recusal of independent directors from voting due to conflict of interests, the name of the independent directors, the proposal, reasons for recusal due to conflict of interests and voting outcomes should be stated: None
III. Communication among Directors, Audit Supervisor, and CPA (including material issues, audit methods and results relating to the Company's finances and business).
Notes: (I) Communications between the internal auditor and Independent Directors once a year. The communication status: 1. After the audit report and tracking improvement report were submitted and approved, an official letter and a copy of the report are sent to each of the Independent Directors for review by double registered mail by the end of the following month.
1. Seminar held on March 21, 2019: Audit Business Report Implementation Status. The Company's Independent Directors have maintained optimal communication with the Audit Supervisor.
(II) Communication between the Company's CPA and Independent Directors twice a year. The communication status : 1. Meeting held on March 21, 2018: Communicated with the governing body and discussed audit conclusion matters for Yieh Phui Enterprise Co., Ltd. in 2018.
1. Meeting held on November 5, 2018: Communicated with the governing body and discussed audit planning matters for Yieh Phui Enterprise Co., Ltd. in 2019.
Communications between the Company's Independent Directors and CPAs are effective, where consensus over various communication matters is achieved.
Please visit Yieh Phui's website for the aforementioned communication matters.

Note 1

(I) The Audit Committee's deliberation items mainly include:
I. Formulate or amend internal control system pursuant to Article 14-1 of the Act; II. Assessment of the effectiveness of the internal control system.
III. The adoption or amendment, pursuant to Article 36-1 of the Act, of the procedures for handling financial or business activities of a material nature, such as acquisition or disposal of assets, derivatives trading, loaning of funds, and endorsements/guarantees for others.
IV. Transaction of material assets or derivatives.
V. A material loaning of funds, endorsement or provision of guarantee. VI. Annual and semi-annual financial reports.
VII. Other material matters governed by other companies or the competent authority.

－33－

(II) Items listed in Article 14 of the Securities and Exchange Act:

Date of Meeting	Agenda	Art. 14-5 of the Securities and Exchange Act	Resolutions made by the Audit Committee and how the resolutions were dealt with by the Board of Directors.
The 1st Audit Committee The 25th meeting 2019.01.22	1. Participate in Hong Yuh Assets Management Co., Ltd. cash capital Increase. 2. The Company's engagement in the derivatives transaction.	V	Approved by all members presented, proposed to the Board and approved by all directors presented at the meeting without any objection. (There is no resolution that is not approved by the Audit Committee but is approved by more than two-thirds of all the Directors)
The 1st Audit Committee The 26th meeting 2019.03.21	1. Business Report, Standalone Financial Statements, and Consolidated Financial Statements for 2018 2. Presentation of the Company's 2018 Statement of Internal Control System. 3. Amendment to the "Company's Standard Procedure for Acquisition or Disposal of Assets". 4. Revision of the "Operating Procedures for Loaning of Funds and Endorsements/Guarantees". 5. Amend some provisions of "Investment Cycle", "Property, Plant and Equipment Cycle" and "General Management". 6. Entrust a professional intermediary company to sell part of the company's land and buildings. 7. Engagement in the transaction of forward exchange derivatives.	V
The 1st Audit Committee The 27th meeting 2019.04.30	1. To discuss the remuneration paid to CPAs for 2019 and to assess their independence. 2. Amend the "Standards for The Internal Control Systems of Shareholder Services Units" and abolish the " "Procedures for Blank Spare Corporate Stocks". 3. The Proposal for Distribution of 2018 Profits. 4. Discussion of the proposal for shareholders’ dividends for 2018, wherein cash dividends and stock dividends are proposed and capital increase through capitalization of retained earnings 5. To remove the Non-competition Clause on the Company's Directors. 6. Endorsements/Guarantees provided by The Company to subsidiary Shin Yang Steel Co., Ltd. 7. Endorsements/Guarantees provided by The Company to subsidiary Yieh Phui (Hong Kong) Holdings Limited 8. The Company's engagement in the derivatives transaction.	V
The 2nd Audit Committee The 1st Meeting 2019.06.28	1. Endorsements/Guarantees provided by The Company to subsidiary Shin Yang Steel Co., Ltd. 2. Endorsements/Guarantees provided by The Company to subsidiary Yieh Phui (Hong Kong). 3. The Company's engagement in the derivatives transactions.	V
The 2nd Audit	1. The second quarter financial report.	V

－34－

Date of Meeting	Agenda	Art. 14-5 of the Securities and Exchange Act
Committee The 2nd meeting 2019.08.08	2. The repurchasing of the Company's equity interests by subsidiaries Champion Logistic Inc. 3. The Company's engagement in the derivatives transactions.
The 2nd Audit Committee The 3rd meeting 2019.09.06	1. Participation in capital increase for the Great Emperor Hotel. 2. Participation in the capital increase for Kingsgarden International Co., Ltd. 3. The Company's engagement in the derivatives transactions.	V
The 2nd Audit Committee The 4th Meeting 2019.11.05	1. Donate 4 plots of the Company's Pingnan Plant located in Pingnan Industrial Zone. 2. Endorsements/Guarantees provided by The Company to subsidiary Shin Yang Steel Co., Ltd. 3. The Company intends to engage in the derivatives transactions.	V
The 2nd Audit Committee The 5th Meeting 2019.12.24	1. The Company's 2020 Audit Plan. 2. Approved revisions of partial content of the "Corporate Governance Best-Practice Principles". 3. Approved revisions of partial content of "General Management"oftheinternalcontrolsystem	V

－35－

(III) The state of the company's implementation of corporate governance, any variance from the Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies, and the reason for any such variance.

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
I. Has the Company established and disclosed its code of practice on corporate governance based on "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies"?	V		In accordance with the latest amendments to the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies, the Company approved the amendment of the Corporate Governance Code by the Board of Directors on December 24, 2019.	No significant difference is found between the Company's practices and Article 1 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.
II. The shareholding structure of the Company and shareholders' rights (I) Did the Company establish an internal procedure for handling shareholder proposals, inquiries, disputes, and litigations? Are such matters handled according to the internal procedure? (II) Did the Company maintain a register of major shareholders with controlling power as well as a register of persons exercising ultimate control over those major shareholders? (III) Did the Company establish and enforce risk control and firewall systems with its affiliated businesses? (IV) Did the Company stipulate internal rules that prohibit company insiders from trading securities using information not disclosed to the market?	V V V V		(I) The Company's Shareholder Service Department is a dedicated unit set up to handle suggestions from and disputes relating to shareholders. The Shareholder Service Section on the Company's website is also set up with contact information to facilitate shareholder contact and inquiry. (II) The Company has a list of the major shareholders of the Company and the controlling parties of these shareholders. (III) The Company has established appropriate risk control mechanisms and firewalls in accordance with the "Procedure for Supervision and Management of Subsidiaries", the "Procedure for Loaning of Funds and Endorsements/Guarantees", the "Procedure for Acquisition and Disposal of Assets and Procedure for Management of Related-Party Transactions". (IV) The Company has set up the "Procedure for Handling of Internal Material Information" to regulate internal practices.	(I) No significant difference is found between the Company's practices and Article 13 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (II) No significant difference is found between the Company's practices and Article 19 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (III) No significant difference is found between the Company's practices and Article 14 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (IV) No significant difference is found between the Company's practices and the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.

－36－

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
III. Organization and responsibilities of the Board of Directors (I) Has a policy of diversity been established and implemented for the composition of the Board of Directors? (II) In addition to Remuneration Committee and Audit Committee established according to law, has the Company voluntarily established other functional committees? (III) Does the Company establish performance evaluation methods and methods for the Board of Directors, conduct performance evaluation annually and regularly, and report the results of performance evaluation to the Board of Directors, and apply these as the references of remuneration of Individual Directors and nomination and renewal? (IV) Does the Company regularly implement assessments on the independence of CPAs?	V V V	V	(I) The specific management policies of the Board of Directors on the formulation of diversified policies regarding the composition of the members are as follows: 1. The nomination and election of members of the Company's Board of Directors is conducted in accordance with regulations as stipulated in the Articles of Incorporation, wherein a candidate nomination system is adopted, the education and experience of candidates is evaluated, and practices are conducted in accordance with “Regulations Governing Election of Directors” and “Code of Conducts for Corporate Governance”, in order to ensure the independence and diversification of the Directors. 2. In order to strengthen corporate governance and promote the sound development of the composition and structure of the Board of Directors, the Company revised " Diversification of Board Members" in Article 20, Item 2 of the "Corporate Governance Best-Practice Principles" in 2019 states: The composition of the Board of Directors shall take into account the Company's operation style and business development needs, and shall evaluate various diversified aspects, like basic composition (such as gender, nationality, age, etc.), professional knowledge and skills (such as accounting, law, industry, finance, etc.). The current Board of Directors of the Company consists of 7 Directors, including 4 Directors and 3 Independent Directors. The members have extensive experience and expertise in the fields of industrial knowledge, operational judgment, international markets, financial accounting, taxation, business and management. The proportion of Directors with employee status in the Companyis 43%,and theproportion of Independent	(I) No significant difference is found between the Company's practices and Article 20 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (III) No significant difference is found between the Company's practices and Article 37 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (IV) No significant difference is found between the Company's practices and Article 28 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.

－37－

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
			Directors is 43%. The term of two Independent Directors are in the third term, the term of one Independent Director is in the second term, and the age of 3 Directors is over 70 years old. Two are between 60 and 69 years old, and 2 are under 60 years old. 3. Implementation of diversification of members of the Board of Directors: Please refer to (Note 1) (II) The Company set up functional Committees in compliance with relevant regulations. (III) The Company passed the performance appraisal method and its appraisal method at November 5, 2019 by Board of Directors, and conducts performance appraisal regularly every year, and the evaluation should be performed by an external professional independent agency at least every three years. The results of the performance appraisal in 2008 are superior to the standard. Please refer to the Company's website for relevant contents, which has been submitted to the Board of Directors on January 1, 2020 and can be used as a reference for nominating Directors. (IV) The Company assesses the independence of CPAs once every year. The result of the assessment was reported to and approved by the Board of Directors on May 6, 2020. It carried out assessment on the independence of CPA Ling-Wen Huang and CPA Shu-Man Tsai of the Crowe (TW) CPAs, both of whom are qualified for being the Company's CPAs. Assessed items: 1. Not serving as a Director, Supervisor, managerial officer, or a position of significant influence, and not a stakeholder of the Company 2. No direct and indirect conflicts of interests with the Company

－38－

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
			3. No profits gained from the Company's investments or interests shared with the Company 4. Not a natural person shareholder who directly or indirectly holds more than 1% of the total number of shares issued by Yieh Phui or is one of the top ten shareholders by shareholding 5. Not commissioned by the Company to audit and certify financial statement for seven consecutive years. 6. The accounting firm has issued the "Impartiality and IndependenceDeclaration Letter."
IV. Is the listed and OTC company equipped with competent and appropriate number of corporate governance personnel, and designated corporate governance director to be responsible for corporate governance related matters (including but not limited to providing information required by directors and supervisors to carry out business, assisting directors and supervisors to comply with laws and regulations, managing meetings related matters of the Board of Directors and shareholders' meeting in accordance with laws, making minutes of the Board of Directors and shareholders' meeting, etc.)?	V		The finance department is a part-time corporate governance unit. March 31, 2019 The Board of Directors is in charge of corporate governance by designated the Executive Vice President as corporate governance officer. He has more than three years of experience in financial, stock or business management in public companies. His main powers are to assist in providing the information needed for the Directors to carry out their business, assist the Directors, complying with laws and regulations, and handle the Board of Directors and related matters of the shareholders' meeting according to law, making minutes of the Board of Directors and shareholders' meeting, and other matters stipulated in the articles of association or contract. The corporate governance officer has completed the first 18 hours of training courses. Please refer to (Note 2) for the information of training courses. Status of operation and execution in 2019 is stated as follows: The status of execution was reported to the Board of Directors on March 17, 2020. 1. Helps Directors' understanding of the latest laws and regulations and thereby facilitating the compliance thereof,inorder to providea legalbasisfor the operation	No significant difference is found between the Company's practices and Article 3-1 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.

－39－

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
			of the Board of Directors and the shareholders' meeting. 2. Registration of capital increase registration for company surplus. 3. Produced 10 Board Meeting minutes and 1 Shareholders’ Meeting minutes in 2019. 4. The Company's Board of Directors and the corporate governance officer shall attend 6 hours of training courses for the Directors to assist the Directors to understand the latest laws and regulations and the direction of compliance. 5. The CPA and the Audit Supervisors shall convene meetings of the CPA and the Independent Directors from time to time to implement the internal audit and control system. 6. Held the 2019 investors conference as one of the diversified communication channels between the Company and investors.
V. Has the Company set up channels of communication for stakeholders (including but not limited to shareholders, employees, customers and suppliers), dedicated a section of your company's website for stakeholder affairs and adequately responded to stakeholders' inquiries on significant corporate social responsibility issues?	V		With stakeholders either as a correspondent bank, other creditors, an employee, consumer, supplier, community, or a company, the Company makes available clear communication channels, respects and secures their interests guaranteed by law. The Company sets up a stakeholders' section with contact information of the various responsible units available on the official website, constructs questionnaires for stakeholders to understand the key issues they care about, so as to adjust the Company's operating policies accordingly.	No significant difference is found between the Company's practices and Article 51 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.
VI. Does the Company commission professional shareholder services agency to hold Shareholders' Meeting and other relevant affairs?	V		The Company's shareholder service unit is staffed with professionals with required certification and continuing education to ensure that the shareholder meetings are legal, effective and safe.	No significant difference is found between the Company's practices and Article 7 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.

－40－

Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies" andReasons
	Y	N	Summary
VII. Information Disclosure (I) Did the company establish a website to disclose information on financial operations and corporate governance? (II) Did the Company adopt other means of information disclosure (such as establishing an English language website, delegating a professional to collect and disclose company information, implement a spokesperson system, and disclosing the process of investor conferences on the Company website)? (III) Does the Company publish and report its annual financial report within two months after the end of a fiscal year, and publish and report its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline?	V V V		(I) The Company has set up a website for disclosure of information relating to the Company's operations, financial and corporate governance practices in Chinese and English. Investors can also view the information at the Market Observation Post System (MOPS). (II) The Company has set up an English website and assigned a designated personnel to be in charge of the collection and disclosure of the Company's information. A spokesperson system has also been constructed as required, which is capable of disclosing information respecting the Company properly and timely. An investors conference was held in 2019, of which the video records are readily available on the Company's website. (III) The Company will announce and declare its financial report for the first, second, and third quarter ahead of the time limit prescribed in 2020 .	(I) No significant difference is found between the Company's practices and Article 57 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (II) No significant difference is found between the Company's practices and Article 57 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. (III) There are some differences was found between the Company's practices and Article 55 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies andthe Company's practices.
VIII. Has the Company disclosed other information to facilitate a better understanding of its corporate governance (including but not limited to employee's rights, employee care, investor relations, supplier relations, stakeholders' rights, further studies of Directors and Supervisors, implementation of risk management policies and measurement standards, implementation of customer policies and purchase of liability insurance for the Directors and Supervisors of the Company)?	v		1. For employee rights and benefits, please refer to P.104 2. The Company has set up an online platform with disclosure of the contact number and email of the Shareholder Service Department to facilitate shareholder communication and information transparency, providing the suppliers and stakeholders an overview of the Company's operations and practices. 3. The Company provides the Directors updated information on laws and regulations and schedules of available opportunities for continuing education. 4. The Company at all time takes notice of and understands relevant laws and regulations as stipulated or amended by the competent authority, so as to minimize its potential operation risks.	No significant difference is found between the Company's practices and Article 39, 47, 49, 50, 51, 52, and 53 of the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies.

－41－

	Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Current operation(Note)
		Y	N	Summary
				5. The Company has purchased for directors a liability insurance policy, of which the extent of coverage and contents were reported to the Board of Directors on the Board Meeting held on May 6, 2020. 6. For the Company's "Directors' and Supervisors' Continuing Education", please refer to the Directors' Continuing Education section in this annual report, p 39. (Note 3)
IX.	Please specify the Company's measures to improve the items listed in the corporate governance review result by Taiwan Stock Exchange's Corporate Governance Center and the improvement plans for items yet to be improved. (Leave blank if your company was not evaluated.) Evaluation Indicators Improved Have the rules adopted by the Company for assessing the performance of the Board of Directors been passed by the Board, with the express requirement that an external assessment be carried out at least once every three years, and has it furthermore carried out the assessment within the time limit under its rules, and disclosed the implementation status and assessmentresults on its website or in its annual report? In 2019, the rules adopted by the Company for assessing the performance of the Board of Directors been passed by the Board, with the express requirement that an external assessment be carried out at least once every three years, and has it furthermore carried out the assessment within the time limit under its rules, and disclosed assessment results on its website and in its annual report. Evaluation Indicators Priority improvement and actions for items not yet improved Did the Company attend or voluntarily hold investor conferences at least two times in the year being evaluated, and were the first and last investor conferencesinthe year held atleast 3months apart? A total of two investor conferences will be held in 2020. Has the financial report been approved or submitted to the Board of Directors 7 days before the date of announcement and published within 1 day afterthe date ofapprovalorsubmission? In 2020, the financial reports for the first, second, and third quarters will be announced within 1 day after the approval of the board of directors before the announcement date of7 days.
	Evaluation Indicators				Improved
	Have the rules adopted by the Company for assessing the performance of the Board of Directors been passed by the Board, with the express requirement that an external assessment be carried out at least once every three years, and has it furthermore carried out the assessment within the time limit under its rules, and disclosed the implementation status and assessmentresults on its website or in its annual report?				In 2019, the rules adopted by the Company for assessing the performance of the Board of Directors been passed by the Board, with the express requirement that an external assessment be carried out at least once every three years, and has it furthermore carried out the assessment within the time limit under its rules, and disclosed assessment results on its website and in its annual report.
	Evaluation Indicators				Priority improvement and actions for items not yet improved
	Did the Company attend or voluntarily hold investor conferences at least two times in the year being evaluated, and were the first and last investor conferencesinthe year held atleast 3months apart?				A total of two investor conferences will be held in 2020.
	Has the financial report been approved or submitted to the Board of Directors 7 days before the date of announcement and published within 1 day afterthe date ofapprovalorsubmission?				In 2020, the financial reports for the first, second, and third quarters will be announced within 1 day after the approval of the board of directors before the announcement date of7 days.

Note: Provide a brief description in the appropriate column, regardless whether "yes" or "no" is selected.

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The implementation is as follows:

Note 1: Implementation status of diversification of members of the Board of Directors:

Diversified core projects Name of Director	Age	Gender	Nationality	1	2	3	4	5	6	7	8
				Operational judgment	Business management	Finance and accounting	Crisis management	Industry knowledge	International Market Perspective	Leadership ability	Decision making abilities
Lin I-Shou	79	Male	Taiwan,R.O.C.	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Wu Lin-Maw	65	Male	Taiwan,R.O.C.	ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ
PingYongLiang	63	Male	Taiwan,R.O.C.	ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ
Ching-TsungHuang	57	Male	Taiwan,R.O.C.	ˇ	ˇ	ˇ	ˇ			ˇ	ˇ
Te-Yuan Yang	56	Male	Taiwan,R.O.C.		ˇ	ˇ	ˇ		ˇ	ˇ	ˇ
Chin-Shu Sun	77	Male	Taiwan,R.O.C.			ˇ	ˇ			ˇ	ˇ
Wen-I Chang	70	Male	Taiwan,R.O.C.			ˇ	ˇ			ˇ	ˇ

Note 2: The continuing education of the Corporate Governance Officer:

Title	Name	Date	Organizer	Course Name	Number of Hours
Chief Corporate Governance Officer	CHEN, YUNG-HSIEN	September 18	AccountingResearchandDevelopmentFoundation	TotalValueManagement	2
			Accounting Research and Development Foundation	Corporate Strategy in Response to the Climate Change and GlobalWarming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors’ Responsibilities and BoardPractices	2
		November 19	Taiwan Stock Exchange (TWSE)	Publicity meeting for effectively exerting the functions of Directors	3
		November 15	Taiwan Corporate Governance Association	The 15th International Forum on Corporate Governance - Directors' Financial Reporting Obligations, Global Institutional Investors' Active Role in Strengthening the Corporate Governance Ecology, the Application of Business Judgment Rules, the Implementation of Independent Director System, and the Performance of IndependentDirectors' Responsibilities	6
		February 21,2020	Taiwan Corporate Governance Association	Trend and Risk Management for Digital Technology and Artificial Intelligence	3
Total:					18

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Note 3: The continuing education of the Directors in 2019:

Title	Name	Date	Organizer	Course Name	Number of Hours
Chairman	Lin I-Shou.	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Business Cognition and Response to Climate Change and Global Warming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2
Director	Wu Lin-Maw	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Business Cognition and Response to Climate Change and Global Warming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2
Director	Ping Yong Liang	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Business Cognition and Response to Climate Change and Global Warming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2
Director	Ching-Tsung Huang	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Business Cognition and Response to Climate Change and Global Warming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2
Independent Director	Te-Yuan Yang	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Impacts of the US-China Trade War on the Risks of Taiwan-funded Enterprises and the Coping Strategies	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2
Independent Director	Chin-Shu Sun	August 14	Taiwan Corporate Governance Association	Impacts of the US-China Trade War on the Risks of Taiwan-funded Enterprises and the Coping Strategies	3
		August 1	The National Federation of CPA Associations of the R.O.C	Analysis of the latest tax laws and regulations	3
Independent Director	Wen-I Chang	September 18	Accounting Research and Development Foundation	Comprehensive enterprise value management	2
			Accounting Research and Development Foundation	Business Cognition and Response to Climate Change and Global Warming	2
			Accounting Research and Development Foundation	Board of Directors and Supervisors ’Responsibilities and Board Practices	2

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(IV) Information on the Members of the Remuneration Committee

Title (Note 1)	Requirement Name	Has more than 5 years of work experience and the following professionalqualifications	Has more than 5 years of work experience and the following professionalqualifications	Has more than 5 years of work experience and the following professionalqualifications	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Independence (note 2)	Number of other publicly listed companies concurrently serving as a member of the Remuneration Committee
		Currently serving as an instructor or a higher post in a private or public college or university in the field of business, law, finance, accounting, or the business sector of the Company	Currently serving as a judge, prosecutor, lawyer, accountant, or other professional practice or technician that must undergo national examinations and specialized license.	Work experience necessary for business administer, legal affairs, finance, accounting, or business sector of the Company	1	2	3	4	5	6	7	8	9	10
Independent Director	Te-Yuan Yang	V			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Independent Director	Chin-Shu Sun		V		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Independent Director	Wen-I Chang		V		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1

Note 1: For title, please identify whether the person is a Director, Independent Director or other.

Note 2: Please put quotation mark the boxes below each criterion if a member meets these conditions within two years prior to being elected and during his/her term of service.
(1) Not an employee of the Company or any of its affiliates.
(2) Not a Director or Supervisor of the Company or any of its affiliates (the Independent Directors of the Company or its parent company, subsidiary or subsidiary of the same parent company established in accordance with this law or local laws and regulations are not subject to this restriction).
(3) Not a natural person shareholder who holds more than one percent (1%) of issued shares or is ranked top ten in terms of the total quantity of shares held, including the shares held in the name of the person’s spouse, minor children, or in the name of others.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the officers in the preceding (1), or of any of the above persons in the preceding (2) and (3).
(5) Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the Bank, ranks as its top five shareholders, or has representative director(s) serving on the company’s board as director(s) or supervisor(s) based on paragraph 1 or paragraph 2, Article 27 of the Company Law, except where the Bank and its parent company, subsidiaries or subsidiaries of the

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same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.

(6) Not a director, supervisor, or employee of the bank of which the majority of board seats or voting shares is controlled by a company that also controls the same of the Bank, except where the Bank and its parent company, subsidiaries or subsidiaries of the same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(7) Not a director, supervisor, or employee of a company of which the chairman or CEO (or equivalent) themselves or their spouse also serve as the Bank’s chairman or CEO (or equivalent), except where the Bank and its parent company, subsidiaries or subsidiaries of the same parent are serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the Bank, except where a specific company or institution holds more than 20% of the total number of issued shares of the Bank and not more than 50% of the shares and is serving concurrently as independent directors set up in accordance with the Securities and Exchange Act or local laws.
(9) Not a member of Remuneration Committee, Public Tender Offer Review Committee, or Special Committee for Merger and Acquisition pursuant to Securities and Exchange Act or Business Mergers and Acquisitions Act, not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that provides commercial, legal, financial, accounting services or consultation to the Bank or to any affiliate, or a spouse thereof, and the service provided is an “audit service” or a “non-audit service which total compensation within the recent two years exceeds NT$500,000”. However, members of the Remuneration Committee, public acquisition review, or merger and acquisition who perform their functions and powers in accordance with the provisions of the Act or Business Mergers and Acquisitions Act and other relevant regulations shall not be subject to this provision.
(10) Where none of the circumstances in the subparagraphs of Article 30 of the Company Act applies.

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Operations of the Remuneration Committee

I. There are three members in the Remuneration Committee of the Company.
II. Term of the Committee: June 21, 2019 to June 20, 2022. In 2019, the Remuneration Committee held 3 meetings (A), in which the qualification and attendance of the Remuneration Committee members are stated as follows:

Title	Name	Times of attendance in person (B)	Percentage of actual attendance (%) (Ｂ/Ａ) (Note) (Note)	Remark
Convener	Te-Yuan Yang	3	100%	Succeeded onJune21,2019
Members	Chin-Shu Sun	3	100%	Succeeded onJune21,2019
Members	Wen-IChang	3	100%	Succeeded onJune21,2019

Regular review of Remuneration:

The function of the Company's Remuneration Committee evaluates the Company's Directors and managers' remuneration policies and systems, and meets at least twice a year. . The Power of Remuneration Committee

(1) Establishes and periodically reviews the performance evaluation and policies, system, standards, and structure of the remuneration for Directors and managers.
(2) Evaluate remuneration paid to Directors and managers on a regular basis.

To discuss and result of resolutions of the Remuneration Committee in 2019 and the Company's handling of opinions of the Committee:

handling	ofopinions ofthe Committee:
Date of Meeting	Agenda	Result of Resolution	The Company's actions in response to the opinions of the RemunerationCommittee
The 3rd Audit meeting The 9th Meeting 2019.01.22	1. The year-end and performance bonus of the Chairman and managers 2. Review of Independent Director ’s year-end comfort payments	All Directors present at the meeting adopted the resolution without dissidence	Report to Board of Directors All Directors present at the meeting adopted the resolution without dissidence
3rd Audit meeting The 10th Meeting 2019.03.21	1. Remuneration to Directors and Profit Sharing Bonus to Employees 2. Review the salary for the Executive Vice Present	All Directors present at the meeting adopted the resolution without dissidence	Reporting to the Board of Directors All Directors present at the meeting adopted the resolution without dissidence
The 4th Audit meeting 1st Meeting 2019.06.28	1. Target, Achievement and Remuneration System and Structure of Directors and Managers 2. Remuneration for Directors, Chairman, Independent Directors, Members of RemunerationCommittee andManagers	All Board members present at the meeting adopted the resolution without dissidence	Reporting to the Board of Directors All Directors present at the meeting adopted the resolution without dissidence

Other required disclosure:

If the Board of Directors does not adopt or amend the recommendations made by the Audit Committee, the date and session of the Board of Directors' meeting, resolutions, voting results and handling of opinions of the Remuneration Committee by the Company shall be disclosed (if the remuneration approved by the Board of Directors is better than that of the Remuneration Committee, the discrepancies and related reasons shall be stated): None
If the members of the Remuneration Committee have any dissenting opinion or qualified opinions on the resolutions of the Remuneration Committee, where such opinions are documented or issued through written statements, the date and session of the meeting of the Remuneration Committee, resolutions, all the members' opinions and handling of these opinions shall be stated: None

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(V) Corporate Social Responsibility (CSR), Deviations from "Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies

Companies
Assessed items			Current Operation (Note 1)	Corresponds to the Corporate Social Responsibility (CSR) for TWSE/GTSM Listed Companies Differences and causes of codes of practice
	Y	N	Brief Description (Note 2)
I. Has the Company assessed the environmental, social, and corporate governance risks related to its operations based on the principle of materiality and established related risk management policies or strategies? (Note 3)	ˇ		In 2019, the Company conducted a questionnaire survey on 17 issues that may be of concerned by stakeholders, and identified 5 of them as the critical issues that stakeholders are most concerned: Operational Financial Performance, Compliance with Regulations, Risk Management, Corporate Governance, Occupational Health and Safety. Relevant Departments of the Company have completed risk identification on these five major issues and formulated management policies respectively, including policies or commitments, short, medium and long-term objectives, responsibility allocation, input of resources and specific action plans. For details please refer to 2019 Yieh Phui CSR report.	Operations listed in the left column are referenced with Chapter II "Exercising Corporate Governance of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies". Results of actual implementation are listed below: No significant difference is found between the Company's practice and Article 9 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.
II. Does the Company establish an exclusively (or part-time) dedicated unit for promoting Corporate Social Responsibility? Is the unit authorized by the Board of Directors to implement CSR activities at the executive level? Does the unit report the progress of such activities to the Board of Directors?	ˇ		To implement corporate social responsibility and sustainable business management, we integrate our core competencies into our social welfare activities to promote public welfare. Our achievements has been widely recognized by the society and created business opportunities and competitive for our corporation. The Company set up a "Social Responsibility and Sustainable Development Committee" chaired by the President as chairman. The Committee was organized with five functional taskforces and a secretariat office. Information on the functions of each taskforce and the responsible unit is further provided below: 1. The Corporate Governance Taskforce is responsible for (1) internal control system (2) accounting system (3) operational performance (4) risk management (5) communication with banks (6) compliance; the Finance Division is responsible for coordination of the operations.	No significant difference is found between the Company's practice and Article 9 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.

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			2. The Green Energy-saving Taskforce is responsible for energy-saving, water-saving, carbon emission reduction, waste reduction and green process; the Production Division is responsible for coordination of the operations.. 3. The Safety and Health Management Taskforce is responsible for environmental safety and health, disaster prevention and control, environmental protection, organization communication and environmental audit and improvements; The Health and Safety Division is responsible for coordination of the operations.. 4. The Product Liability Taskforce is responsible for quality assurance, product environmental considerations and design, communication on product-related environmental issue, product safety, technology patents, customer satisfaction and supply chain management; The Technology Division is responsible for coordination of the operations. 5. The Employee and Social Engagement Taskforce is responsible for recruitment, employee training, labor relations, employee care, community engagement and charity events; the operations is coordinated by Administrative Department. 6. The Secretariat office and President Staff's Office act concurrently to implement CSR policies, track the progress of corporate social responsibility goals/policy implementation and compile the corporate social responsibility report, which shall beforwarded to theBoard of Directorsfor review every year.
III. Environmental Issues (I) Has the Company referred to the nature of its industry to establish a suitable environment management system (EMS)? (II) Is the Company committed to improving usage efficiency of various resources and utilizing renewable resources with reduced environmental impact? (III) Has the Company assessed the potential risks and opportunities arising	ˇ ˇ ˇ ˇ		(I) The Company mainly uses energy and resources such as steel, paint, zinc ingots, water, electricity and NG to produce galvanized and painted steel products, steel structures and lifting equipment. The waste water and process waste gas generated during the production process satisfy the mandated discharge standards after being properly handled through waste water and waste gas treatment facilities. For the treatment and disposal of solid industrial wastes, they shall be disposed by a licensed industrial solids waste treatment and disposal company according to the provisions of the Environmental Protection Law; the methods of shielding and isolation are used for noise control to ensure compliance with the Noise Control Act of the	(I) No significant difference is found between the Company's practice and Article 11 and 13 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.

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	from climate change at present and in the future and taken related countermeasures? (IV) Has the Company the calculated the greenhouse gas emissions, water consumption, and total weight of waste over the past two years and established the policies with regard to energy conservation and carbon reduction, greenhouse gas reductions, water consumption, and waste management?			Environmental Protection Agency, the Company has strict standards for the use of raw materials, production processes emissions and noise controls to ensure the health of employees and the friendliness to the environment. "There is only one earth." With this philosophy, Yieh Phui Enterprise Co., Ltd. spares no effort in environmental protection work. As a global citizen, Yieh Phui is committed to full implementation of social responsibility and the no compromise policy on workplace safety and environmental protection. In May 1997, Yieh Phui took the lead in Taiwan's steel industry to receive the first certification for ISO 14001 Environmental Management System. Yieh Phui Enterprise Co., Ltd. executes an environmental audit following the ISO 14001 Environmental Management System to identify the significant environmental issues, which is then followed up by a series of environment-related meetings to draft plans and set the goals and tracking targets for environmental management. (II) Since its incorporation in 1988, Yieh Phui Enterprise Co., Ltd. keeps investing in equipment for control of pollution, promoting the use of clean energy, implementing manufacturing processes that prevent pollution, including: 1. Regenerative Thermal Oxidizer (RTO) 2. Waste Acid Recovery Equipment 3. Waste Management 4. Wastewater Recovery and Reuse Processes 5. Using natural gas, a clean fuel, as power source for the various manufacturing processes Yieh Phui Enterprise Co., Ltd. is committed to enhancing the utilization efficiency of the resources. Taking into consideration the impact on the ecology, the Company implements a series of operations to minimize the impact on the environment, including improving manufacturing processes to reduce the consumption of resources and energy, reducing use of hazardous substances, avoiding emission of environmental pollution and waste and handle waste properly, enhancingrecyclability andreusability of rawmaterials and	(II) No significant difference is found between Article 12, 13 and 16 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.

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			products to maximize sustainability of renewable resources, extending use life of the products to cut down the burden on the environment and upgrading the efficiency of water resources to ensure sustainability of water resources. (III) The risks of climate change that the Company may face now or in the future are "flooding" and "carbon emission control", which may impact the company's operations, including the acquisition of raw materials, manufacturing and transportation safety etc.; they also provide market opportunities. In order to reduce global carbon emissions, solar power related industries have begun to flourish. The demand for solar mounting racks will grow substantially in the future. For details, please refer to the Yieh Phui CSR Report 2019. (IV) Since 2014, the Company's production site has been inspected annually by government recognized greenhouse gas inspection agency. For other information about energy saving and carbon reduction, greenhouse gas reduction, water consumption or other waste management in 2019, please refer to the 2019 Yieh Phui CSR Report.	(III) No significant difference is found between the Company's practice and Article 17 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies. (IV) No significant difference is found between Article 15, 16 and 17 of the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies.
IV. Social Issues (I) Has the Company referred to relevant laws and international human rights instruments to stipulate relevant management policies and procedures? (II) Has the Company established and offered proper employee benefits (including remuneration, leave, and other benefits) and reflected the business performance or results in employee remuneration appropriately? (III) Has the Company provided employees with safe and healthy work environments as well as regular classes on health and safety? (IV) Has the Company established an effective competency career	ˇ ˇ ˇ ˇ ˇ ˇ		(I) The Company adopts human-based management, respects personal opinions and abides by labor laws and internationally recognized basic human rights principles. The employment policy is based on the belief of "integrity and righteousness" without discrimination or any differential treatment in language, attitude and behavior based on race, class, language, thought, religion, party, native place, birthplace, gender, sexual orientation, age, marriage, appearance, facial features, physical and mental disorders, constellation, blood type or previous union membership. (II) In order to establish a harmonious working environment, the Company will provide equal opportunities to employees in terms of remuneration, employment conditions, training and promotion. According to the labor laws and regulations, the employees shall not suffer from work overload and risk due to long working hours; special leave shall be based on two hours increments, and employees can choose to take compensatory	Operations listed in the left column are referenced with Chapter IV Preserving Public Welfare of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies". Results of actual implementation are listed below: (I) No significant difference is found between Articles 18 and 19 of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies". (II) No significant difference is found between the Company's practice and Article 21 of the

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	development training program for employees? (V) Has the Company followed relevant laws, regulations and international guidelines for the customer health and safety, customer privacy, and marketing and labeling of its products and services and established related consumer protection policies and grievance procedures? (VI) Has the Company established the supplier management policies requesting suppliers to comply with laws and regulations related to environmental protection, occupational safety and health or labor rights and supervised their compliance?			leave or overtime pay for overtime duty, so employees be able to attain the perfect balance between work and family. The Company was awarded the "Outstanding Healthy Workplace Certificate" by the "National Health Agency of the Ministry of Health and Welfare" and the "Sports Department Sports Enterprise Certification" by Sports Administration Ministry of Education. The Company provides various kinds of subsidies and benefits, including subsidies in childbirth, marriage, travel, funeral and burial, hospitalization due to general injury or occupational injury, as well as student grants and incentives for employees' children. The production and sales bonus shall be paid according to the Company's monthly production, marketing operation performance and personal performance. In addition, the annual performance bonus shall be paid according to the Company's annual profit and individual performance. (III) Healthy and Safe Workplace 1. Healthy and Safe management system While Yieh Phui implementing the occupational safety and health management system, The Company continued to maintain the function of the system, and with the continuous efforts of all colleagues, obtained the OHSAS 18001 Verification Certificate in 1998, the safety and health model award issued by the Industrial Bureau of the Ministry of Economy Affair R.O.C. in 2010, and OHSAS in 2011 18001 and TOSHMS Verification Certificate, 2011 work environment and occupational health quality achievement publication and seminar were awarded "High Quality Occupational Health", received "Excellent Award", " Special Award" and "Progress Award "from Taiwan Iron and Steel Industry Association in 2019. 2. Workplace safety There are 14 themes planned for the Workplace Safety to make employees understand the safety management regulations in the plant. Through the introduction of each theme, we can improve the awareness andfeeling ofwork	"Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies". (III) No significant difference is found between the Company's practices and Article 20 of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies".

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safety through introducing physical objects and sharing experience, and strengthen the safety awareness of employees. We welcome other companies to visit our factory to share the efforts and experiences of strengthen safety. The visitors are Quanxing Company, Sin Yang Still Co., Ltd., Sysco Group and Yieh United Still Corp. In 2019, there are 852 trainees in the Company and 529 trainees from the external groups. 3. Courses of health and safety education and training The Company enhances the safety and health knowledge and skills of its employees and cultivate them to develop the proper attitude of safety and health operations. A variety of pre-work and on-job safety and health educational training courses cater to our employees for multiple purposes. A total of 1811 people were trained in 2019. 4. Joint defense of industrial safety areas Through the methods of self inspection and mutual safety inspection of all departments, problems can be found out to improve, so as to achieve the goal of mutual learning, which can improve the basic understanding of safety concept of employees, sand achieve the goal of no employee injury at work, and reduce 243 cases in 2019. 5. False incident reporting system It is possible that any employee might be faced with many types of danger in various workplaces. The Company provides all units with a safe working environment those hazards are extinguished before the occurrence. A total of 2,828 cases of false proposal were reported in 2018. 6. Monthly activities of work safety May 2 is the "Yieh Phui Safety Day." An expanded scale of morning seminar is presided by the President, and the award ceremony of "Highest Mountain of Safety" for each unit takes place at the seminar. 7. Health management and promotion activities: For the health of the employees, the hardware and software division set up a health scientific management center. The system has set up a world-class equipment and

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			professional coach to provide employee consultation services. The Company has established a system record for employees' consultation and the software and software department will also be organized for a regular period of two years of service and the Group's employees' health and safety activities, and the Group will also promote the health of the employees. (IV) Employee Training and Career Development The Company has established a clear set of training system chart to offer diversified training in order to strengthen the skills of the staff from the new recruits to senior level staff. The training system will be further developed into a learning map for each position. For instance, a processing engineer will follow the map and start from fundamental capacity in the initial year. Through this, the Company will then arrange management courses according to upper management's needs. Such as TWI management function for sub-divisional supervisors, coaching leadership training for divisional supervisors, innovation and transformation leadership for departmental supervisors. The Company was recognized by the Ministry of Labor for promoting a comprehensive training system. In 2018, it obtained the gold certification of the TTQS talent development quality management system, and in 2019 it was awarded a trophy by the Workforce Development Agency, Ministry of Labor. (V) The Company awarded the "QC 08000 IECQ HSPM Hazardous Substance Process Management Certification" in 2007. We are the 1st steel company in the world in compliance with the EU RoHS. From the purchase of raw materials to the storage and transportation of products, including packaging and labeling operations and the product specifications, everything complies with relevant regulations and international standards to ensure customer's health and safety. The Company has the responsibility to protect the personal information of customers. Without the customer's authorization,it will neverdisclosure to third partiesforuse or	(IV) No significant difference is found between the Company's practice and Article 21 of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies". (V) No significant difference is found between the Company's practice and Article 24 of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies".

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			use it without prior notice, and it strictly manages customer information, protect customer privacy and abide by marketing ethics. Yie Phui attaches great importance to the response and opinions of customers, and provides the best services to protect the interest of customers with the follows means: 1. Set up customer service department and management system to ensure service quality and protect customers' interests. 2. Conduct regular customer satisfaction survey for internal assessment. 3. Provide complete pre-sale and post-sale services. 4. Provide customers with complete product information and standardized contract. 5. The Technical Services (Customer Service) Division takes the initiative to visit customers every year, inquire customer feedback, listen to customers' suggestions, ask about product quality and usage and give customers recommendations on using the product. (VI) The Company has provided a "Safety, Hygiene and Environmental Protection Construction Management Specification" for suppliers. It requires suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health or labor human rights. The Company is the first in the world to be awarded "IECQ0800000HSPM Hazardous Substance Process Management Certification". It ensures that products meet the requirements of national environmental laws and regulations and is responsible for protecting the earth's environment. When signing a contract with a supplier, the Company may terminate the contract at any time in accordance with the Company's "Code of Integrity" in case of violation of the policies.	(VI) No significant difference is found between the Company's practice and Article 26 of the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies".
V. Did the Company follows internationally recognized guidelines to prepare and publish reports such as its Corporate Social ResponsibilityReport disclosing			The Company's corporate social responsibility report follows the guidelines of the Global Reporting Initiative (GRI) guidelines (Standard) and is compiled with the core option disclosure principles.Alsoreferto theISO26000 Social Responsibility	No significant difference is found between the practices of the "Company and Article 9 of the Corporate Social Responsibility

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non-financial information of the Company? Has the Company received assurance or certification of the aforesaid reports from a third party accreditation institution?			Standards Guide, "United Nations Global Compact (UNGC)", and United Nations Sustainable Development Goals (SDGs). The 2019 Corporate Social Responsibility Report Committee was verified by Afnor Asia, and the verification results were in accordance with the AA 1000AS2008 guarantee standard, type 1 intermediate guarantee level.	Best Practice Principles for TWSE/GTSM Listed Companies".
VI. Where the Company has stipulated its own Best Practices on CSR according to the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies", please describe any gaps between the prescribed best practices and actual activities taken by the Company: Yieh Phui Enterprise established the "Corporate Social Responsibility Best Practice Principles" on November 3, 2016. In general, the implementation status of the Company's corporate social responsibility practices conform to the corporate social responsibility best practice principles, as disclosed in the "Status of corporate governance operations, and deviation with the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and the reasons"section above.
VII. Other important information helpful in understanding CSR operation: Ye Hui Enterprise discloses the results of implementation of corporate social responsibility practices in the annual financial reports of the respective year and updates the latest news in the Company's external website from time to time, providing an overview on the status of implementation of corporate social responsibility andresults to the stakeholders.

Note 1: If "Yes" under the "Status of Operations" is ticked off, please explain the key policies, strategies, and measures adopted and their implementation results; if "No" is ticked off, please give the reason and specify related policies, strategies, and measures to be adopted in the future.

Note 2: Companies who have compiled CSR reports may specify the ways to access the CSR and the page numbers of the cited content in place of the above-requested description.
Note 3: The principle of materiality refers to environmental, social and corporate governance issues that have significant impacts on the company's investors and other stakeholders.

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(VI) The situation and reasons for the implementation of integrity management and the difference with the listed Company's code of integrity management

management
Assessed items	Current operation(Note)			Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companiesandthereasons
	Y	N	Summary
I. Formulating Policies and Plans for Integrity Operation (I) Has the Company established the ethical corporate management policies approved by the Board of Directors and specified in its rules and external documents the ethical corporate management policies and practices and the commitment of the Board of Directors and senior management to rigorous and thorough implementation of such policies? (II) Has the Company established a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within its business scope which are at a higher risk of being involved in unethical conduct, and establish prevention programs accordingly, which shall at least include the preventive measures specified in Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies"? (III) Has the Company specified in its prevention programs the operating procedures, guidelines, punishments for violations, and a grievance system and implemented them and review the prevention programs on a regular basis?	 		(I) The Company's Board of Directors approved the Yieh Phui Corporate Management Best Practice Principles in 2016, setting a policy of ethical business practices under the models of honesty, transparency and responsibility and establishing a good corporate governance and risk control mechanism to create a business environment for sustainable development. (II) Employees involved in finance, business and procurement shall submit "Employee Guarantee" and the current employees shall renew it every three years. If the employees fail to submit or renew the "Employee Guarantee" every three years, they shall apply for "Personnel Guarantee Insurance". (III) The Company has set up the Employee Work Rules and Guidelines for Employee Incentives, Reward and Punishment, so as to provide a norm for employees’ behavior in the Company.	(I) No significant difference is found between the Company's practices and Article 5 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies". (II) No significant difference is found between the Company's practices and Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies". (III) In contrast to Articles 6 and 7 of the "Code of Good Faith Management for Listed OTC Companies", it is currently stated that the operating procedures only regulate employees.

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Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companiesandthereasons
	Y	N	Summary
II. Implementation of Ethical Business Operations (I) Has the Company evaluated ethical records of its counterparty? Does the contract signed by the Company and its trading counterparty clearly provide terms on ethical conduct? (II) Has the Company set up a dedicated unit under the Board of Directors to promote ethical corporate management and regularly (at least once every year) report to the Board of Directors the implementation of the ethical corporate management policies and prevention programs against unethical conduct? (III) Has the Company established policies preventing conflict of interests, provided proper channels of appeal, and enforced these policies and channels accordingly? (IV) Has the Company established effective accounting systems and internal control systems to implement ethical corporate management and had its internal audit unit, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans and audit the compliance with the prevention programs accordingly or entrusted a CPA to conduct the audit? (V) Does the Company regularly organize internal and external training for ethical corporate management?	   		(I) The Company's Procedure for Procurement Management specifies a clause of termination or cessation for unethical conducts in the purchase agreement. (II) The Company’s Ethical Corporate Management Best Practice Team is the dedicated unit (formed by the President Staff’s Office, the Finance Division and HR Division) set up for operations and supervision of corporate management practices, including revision, implementation, interpretation, consultation, reporting and filing of ethical corporate business best practice related operating procedures and code of conducts. There were no unethical conducts in 2019. (III) The Company set up the Code of Conduct, by which the Directors, Supervisors and managers are bound to act in the best interest of the Company, deal with official business in an objective and effective way and refrain their spouse, parents, children or relative within the second-degree of kinship from gaining improper benefits using their positions in the Company. The Directors, Supervisors and managers shall follow the Procedure for the Board of Directors Meeting when discussing proposal and shall abstain from discussions and voting if found to be in conflict of interests. (IV) The Company set up an accounting system and an internal control system. In addition to audit activities conducted by the commissioned CPA, the Company's internal audit unit also implements regular audit plan every year. (V) The HR Division provides information on the Company’s work rules and guidelines for rewards and punishments duringnew employee education andtraining courses.	(I) (I) No significant difference is found between the Company's practices and Article 9 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies". (II) In contrast to Article 17 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies", the Company reported to the Board of Directors this year its ethical corporate management policy, plan for preventing unethical conducts and its supervision and implementation. (III) No significant difference is found between the Company's practices and Article 19 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies. (IV) No significant difference is found between the Company's practices and Article 20 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies".

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Assessed items	Current operation(Note)	Current operation(Note)	Current operation(Note)	Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companiesandthereasons
	Y	N	Summary
			Employees involving in the Company’s financial operations are required to participate in the ethical business best practice related courses organized by the Taiwan Stock Exchange Corporation to meet compliance with relevant regulations.	(V) No significant difference is found between the Company's practices and Article 22 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies".
III. Operation of Whistle-blowing Mechanism in the Company (I) Has the Company established concrete whistle-blowing and reward systems and accessible whistle-blowing channels? Does the company assign a suitable and dedicated individual for the case being exposed by the whistle-blower? (II) Has the Company established the standard operating procedures for investigating reported misconduct, follow-up measures to be adopted after the investigation, and related confidentiality mechanisms? (III) Has the Company adopted protection against inappropriate disciplinary actions for the whistle-blower?	 		(I) The Company set up the whistle-blower incentive standards in the Employee Work Rules and the Guidelines for Reward and Punishment. In addition to the Company's internal network, any named employee and individual not working in the Company may report directly to the corporate governance unit. The corporate governance unit assigns a dedicated personnel to handle the matters. (II) The standard operating procedures (SOP) and relevant systems of confidentiality for investigating the case being exposed by the whistle-blower is under developing. (III) No incident of inappropriate actions against the whistle-blower has occurred in the Company.	Compared with Article 23 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies", there is still no standard operating procedures (SOP) and relevant systems of confidentiality for investigating the case being exposed by the whistle-blower.
IV. Strengthening Information Disclosure Does the Company disclose its ethical corporate management policies and the results of its implementation on the Company’s website and MOPS?			The Company's Board of Directors has passed the "Yieh Phui Enterprise Co., Ltd." and announced the "Ethical Corporate Management Best Practice Principles" in 2016, and disclosed it on our website.	Difference from Article 25 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies", the Company has set up the Yieh Phui Corporate Management Best Practice Principles, but quantified data are not yet available.

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				Current operation(Note)	Deviations from the Ethical
Assessed	items	Y	N	Summary	Corporate Management Best Practice Principles for TWSE/GTSM Listed
					Companiesandthereasons

V. Where the Company has stipulated its own best practices on ethical corporate management according to the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies", please describe any gaps between the prescribed best practices and actual activities taken by the Company: The Company has set up the Yieh Phui Corporate Management Best Practice Principles. In general, the content conforms to the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies".
VI. Other information helpful to understand the integrity operation of the company: (e.g., the company's amendment of its principles of integrity operation) The Company revised the content of the original work rules based on the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" to make it more complete and conform to the principles of ethical practices.

Note: Provide a brief description in the appropriate column, regardless whether "yes" or "no" is selected.

(VII) If the Company has set up corporate governance principles and relevant rules, the Company shall disclose methods for inquiry: The Company has set up relevant corporate governance procedures and guidelines, including "Rules of Procedure for Shareholders Meetings", "Procedure for Board of Directors Meetings, Remuneration Committee Charter", Codes of Ethical Conduct, "Ethical Corporate Management Best Practice Principles and the Rules Governing the Scope of Powers of Independent Directors". The information can be found on the MOPS; please see the cover of this annual report for the web link.
(VIII) Other important information to facilitate better understanding of the Company's corporate governance activities may be disclosed here:
The Company has set up the "Procedures for Handling Material Inside Information," which is made available through the Company's internal website for the Directors, manager and all employee's references.
For details on the Company's corporate governance operations, please refer to page 36 of this annual report or visit the MOPS. please see the cover of this annual report for the web link.

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(IX) The following information relating to implementation of the internal control system shall be disclosed:
The Company's Internal Control Statement

Yieh Phui Enterprise Co., Ltd.

Statement of Internal Control System

Date: March 21, 2020

This Corporation makes the following statement according to the self-evaluation conducted of its internal control system of 2019:

I. The Company acknowledges that the establishment, implementation and conservation of the internal control system are the responsibilities of the Board of Directors and the managerial officers of the Company. The Company has constructed such a system. The objectives of the internal control system include achieving various objectives in business benefits and efficiency (including profitability, performance, and protection of assets and safety); ensuring the reliability, timeliness, transparency, and regulatory compliance of reporting; and providing reasonable assurance.
II. The internal control system has inherent constraints, and no matter how comprehensive its design may be, an effective internal control system is only capable of providing adequate assurance for achieving the above-mentioned objectives. Moreover, the effectiveness of the internal control system may be altered from changes in the environment and under different situations. Nevertheless, the Company's internal control system contains self-monitoring mechanisms, and the Company takes immediate remedial actions in response to any identified deficiencies.
III. The Company assesses for the effectiveness of the internal control system's design and practices through the effectiveness of internal control system, as stated in the "Protocols and Measures for the Establishment of Internal Control System in Publicly Listed Companies" (hereinafter referred to as "the Protocols"). The criteria adopted by the Protocols identify five key components of managerial internal control: (1) Control Environment; (2) Risk Assessment; (3) Control Activities; (4) Information and Communication; and (5) Monitoring Activities. Each component includes a number of categories. Please refer to the "Protocols for The Aforementioned Categories".
IV. The Company has evaluated the design and operating effectiveness of its internal control system according to the aforementioned Protocols.
V. Based on the aforementioned audit findings, the Company holds that within the aforementioned period, its internal control procedures of December 31, 2019 (including the procedures to monitor subsidiaries), effectiveness and efficiency of operations, reliability, timeliness, transparency of reporting, and compliance with relevant legal regulations, and design and enforcement of internal controls, are effective. The aforementioned goals can be achieved with reasonable assurance.
VI. This Statement will be an integral part of the annual report and the prospectus of the Company and disclosed. If the aforementioned content contains illegal matters such as any fraudulent information, or some information is intentionally hidden, the Company will entail legal liability in breaching Articles 20, 32, 171, and 174 in the Securities and Exchange Act and face legal consequences.
VII. The Statement has been resolved by the Company's Board of Directors on March 17, 2020. All of the seven Directors presented at the meeting approved the content of this statement.

Yieh Phui Enterprise Co., Ltd.

Chairman of the Board: Lin I-Shou (Signature) President: Wu Lin-Maw

Any CPA commissioned to conduct a project review of the ICS shall disclose(Signature) the CPA's audit report: None.

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(X) Any legal penalty enacted upon this Company, any penalty imposed to its personnel by the Company for violation of internal control rules, major fallacies and status of improvements in the most recent year up to the publication date of this report: None.
(XI) Significant resolutions made in/by the Shareholders' Meeting and the Board of Directors in the most recent fiscal year up to the date of publication of this Annual Report:

1. Shareholders' Meeting

Number of times	Time of Meeting	Major resolution	Status of implementation
2019 Shareholders' Meeting	2019/06/20	Reports Issues: 2018 Business Report. The 2018 Audit Committee’s Review Report The 2018 Director Remuneration andEmployeeBonusReport.	Not applicable
		Approved Items: Recognition of 2018 Final Accounts. Approve the 2018 Earnings Distribution.	To be implemented based on the content passed in the resolution and disclosed on the Company's website.
		Topics for Discussion: To discuss the proposal for shareholders' dividends for 2018, wherein cash dividends and stock dividends (i.e., capitalization of earnings) are proposed.	Cash dividend of NT$ 0.1 is distributed for each share as resolved. The base date for cash dividend distribution is Sep. 2, 2019. The amount had been distributed in full on Sep. 27, 2019 as resolved by the Shareholders’ meeting. Stock dividends were issued 20 shares for every one thousand shares held. The Ministry of Economic Affairs approved the change of the number of shares by Official Letter No. 10801128440 on September 19, 2019. The shares were listed on October 15, 2019.
		To discuss amendment to the "Company's Standard Procedure for Acquisitionor Disposalof Assets".	To be implemented based on the content passed in the resolution and disclosed on the Company's website.
		To discuss for revision of the "Procedure for Loaning of Funds andEndorsements/Guarantees".	To be implemented based on the content passed in the resolution and disclosed on the Company's website.
		Subject: To amend the Company's Articles of Incorporation.	The change of the number of shares by Official Letter No. 10801128440 approved by the Ministry of Economic Affairs was registered and announced on the Company's website onSeptember 19,2019.
		Election: Election of directors	The change of the number of shares by Official Letter No. 10801128440 approved by the Ministry of Economic Affairs was registered and announced on the Company's website onSeptember 19,2019.
		Other Agendas: To remove the Non-compete Clause onthe Company'sDirectors.	To be implemented based on the content passed in the resolution and disclosed on the Company's website.

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2. Board of Directors Meeting

Number of times	Time of Meeting	Material resolution	Items listed in Article 14-3 of Securities and Exchange Act	Independent Directors' opinions and the Company's handling of Independent Directors'opinions
1st Meeting Board of Directors	2019/01/22	1. To discuss of 2019 Business Plan		Unanimously approved by all the Independent Directors present.
		2. To discuss the 2016 annual (including years of service) and performance bonuses for the Chairman approved by the Remuneration Committee.
		3. To discuss the year-end consolation fund approved by the Company's Remuneration Committee for Independent Directors concurrently serving as Audit Committee members.
		4. To discuss the year-end consolation fund approved by the Company's Remuneration Committee for Independent Directors concurrently serving as Renumeration Committeemembers.
		5. To discuss the 2018 annual (including years of service) and performance bonuses for the managers approved by the Remuneration Committee.
		6. To discuss the Company's intent to participate in the capital increase case of Hong Yuh Assets Management Co., Ltd.. (hereinafter referred to asHongYuh).	V
		7. To discuss the Company’s intent to engage inthe derivatives transactions.	V
Second Meeting Board of Directors	2019/03/21	1. Discussion of convention of the 2019 annual shareholders' meeting.		Unanimously approved by all the Independent Directors present.
		2. To discuss the proposal for 2018 employees' andDirectors' remunerationdistribution.
		3. The Company's 2018 business report, financial statements and consolidated financial statements were submitted for deliberation.	V
		4. To discuss amendment to the" Company's Standard Procedure for Acquisition or Disposalof Assets"	V
		5. To discussion revision of the Procedure for Loaning of Funds and Endorsements/Guarantees.	V
		6. Electionof Directors
		7. Subject: To amend the Company's Articles of Incorporation.
		8. List of candidates for directors proposed by shareholders accepted by 2019 shareholder's meeting
		9. Shareholders' proposals received at the 2019 shareholders' meeting
		10. Presentation of the Company's 2017 "Statement of InternalControlSystem"	V

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		11. To discuss the Company revised part of the provisions of "Investment Cycle", "Real Estate, Plant and Equipment Cycle" and "General Management".	V
		12. Appointment of the corporate governance officer.
		13. To discuss the Company's proposal “Standard Operating Procedures for Handling Directors'Requests".
		14. To discuss the remuneration of managers promoted toExecutive VicePresident.
		15. To discuss that the Company entrusts a real estate agency to sell some lands and buildings of the Company.	V
		16. Proposal XVI: To discuss the Company's intent to engage in the forward exchange derivatives transactions.	V
3rd Meeting Board of Directors	2019/04/30	1. To discuss the payments paid to CPAs for 2019, and to assess their independence.	V	Unanimously approved by all the Independent Directors present.
		2. To approve the 2018 proposal for distributionofprofits.	V
		3. To discuss of the proposal for shareholders’ dividends for 2018, wherein cash dividends and stock dividends and capitalization of earnings are proposed.	V
		4. Amend the "Standards for The Internal Control Systems of Shareholder Services Units" and abolish the " "Procedures for BlankSpare Corporate Stocks".	V
		5. To discuss the election of Directors of the Company and the review of the list of candidates.
		6. To remove the Non-compete Clause on the Company'sDirectors.	V
		7. Proposal for the Company’s endorsements/guarantees of NT$ 200 million for Shin Yang Steel Co., Ltd. (Shin Yang Co. hereinafter)	V
		8. Proposal for the Company’s endorsements/guarantees of NT$ 180 million for Shin Yang Steel Co., Ltd. (Shin Yang Co.hereinafter).	V
		9. The Company provides a endorsements/guarantees of US$5 million for its subsidiary Yieh Phui (Hong Kong) Holdings Limited .	V
		10. To discuss the Company's intent to engage in forward rate derivatives transactions.	V
4th Meeting Board of Directors	2019/06/20	1. To discuss the case of selecting the Chairman of the Company.		Unanimously approved by all the Independent Directorspresent.
		2. Appointment members of the fourth Remuneration Committee
5th Meeting Board of Directors	2019/06/28	1. It is planned to authorize the Chairman to exercise the powers of the Board of Directors during the adjournment of the Board of Directors.		Unanimously approved by all the Independent Directors present.

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		2. The Directors other than the Chairman of the Board of Directors shall be exempted fromtheliability ofjoint guarantor.
		3. It is proposed to authorize the Chairman of the Board of Directors to represent and act for the Company in dealing with business related to financial institutions.
		4. Appointment of President
		5. Remove restrictions on the competition prohibition for managers of the Company.
		6. To discuss the Company’s 2017 Corporate Social Responsibility Report.
		7. To discuss the performance goals of the Directors and managers and the salary and remuneration system and structure proposed by the Company's Remuneration Committee.
		8. To discuss the structure and amount of the Chairman's remuneration proposed by the Company'sRemunerationCommittee.
		9. To discuss the monthly transportation expense charged by the Directors of the Company's Remuneration Committee.
		10. To discuss the remuneration of Independent Directors proposed by the Remuneration Committee.
		11. To discuss the remuneration of the Remuneration Committee proposed by the RemunerationCommittee ofthe Company.
		12. To discuss the structure and amount of the managers' remuneration proposed by the Company'sRemunerationCommittee.
		13. Proposal No. 4: Proposal for the Company’s endorsements/guarantees of NT$ 300 million for Shin Yang Steel Co., Ltd. (Shin Yang Co. hereinafter)	V
		14. The Company provides a endorsements/guarantees of US$ 12 million for its subsidiary Yieh Phui (Hong Kong) HoldingsLimited .	V
		15. To discuss the Company's intent to engage in the derivatives transactions of forward rate.	V
The 6th Meeting Board of Directors	2019/08/08	1. To discuss the base date for cash dividends distribution.		Unanimously approved by all the Independent Directors present.
		2. To discuss the base date for capital increase resulting from capitalization of stock dividends.
		3. To discuss the subsidiary Champion Logistic Inc. (hereinafter referred to as the Champion Company) will repurchase part of its shares held by the Company.	V
		4. To discuss the Company’s intent to engage inthe derivatives transactions.	V

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The 7th Meeting Board of Directors	2019/09/06	1. To discuss the Company intends to participate in the capital increase of Great Emperor Hotel Co. Ltd. (hereinafter referred to as GreatEmperor).	V	Unanimously approved by all the Independent Directors present.
		2. To discuss the Company's intent to participate in the capital increase case of Zhenhua International Co., Ltd. (hereinafter referred to asZhenhua).	V
		3. To discuss the Company’s intent to engage inthe derivatives transactions.	V
The 8th Meeting Board of Directors	2019/11/05	1. To discuss the Company's proposal to donate 4 lands of Pingnan factory located in Pingnan Industrial Park to the Industrial Development Bureau of the Ministry of Economy and completion of road construction project in the area.		Unanimously approved by all the Independent Directors present.
		2. To discuss the Company's proposal to donate 4 lands of Pingnan factory located in Pingnan Industrial Park to the Industrial Development Bureau of the Ministry of Economy and completion of road constructionprojectinthe area.	V
		3. The Company's intent to endorsements/guarantees for Shing Yang Steel Co., Ltd. (hereinafter referred to as Shing Yang) in the amount of NT$ 100 million.	V
		4. To discuss the Company's intent to engage inthe derivatives transactions.	V
The 9th Meeting Board of Directors	2019/12/24	1. To discuss the Company's2019 audit plan.	V	Unanimously approved by all the Independent Directors present.
		2. To discuss amendment to the "Corporate GovernanceBest-PracticePrinciples".	V
		3. To discuss amendment to the "General Management"oftheinternalcontrolsystem.	V

(XII) Major contents of any dissenting opinions on record or stated in a written statement made by Directors or Supervisors regarding key resolutions of the Directors' Meeting in the most recent year up to the publication date of this report: None.

(XIII) In the most recent fiscal year and as of the date of publication of the Annual Report, a summary of the resignation and dismissal of the Company personnel including Chairman, President, accounting managers, finance managers, internal auditing managers and R&D managers: None

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V. Information on the CPA Expenses:

Accountant Fees by Range (Please tick a range or fill in the amount)

Accounting Firm	Name of CPA	Name of CPA	Auditing Period	Note
Crowe Horwath (TW) CPAs	Ling-Wen Huang	Jen-Yao Hsieh	January 1, 2019 to June 30, 2019	Due to internal organization adjustment
	Ling-Wen Huang	Shu-Man Tsai	July 1, - December 31, 2019

Note: Where the Company replaces the CPA or accounting firm, please list the audit periods of the former and succeeding CPAs or firms and specify the reasons for the replacement in the remark column.

			Unit: NT$thousands	Unit: NT$thousands
Category of fees Intervalofthe amount		Audit fees	Non-audit fees	Total
1	Less thanNT$2,000 thousand			1,302
2	NT$2,000 thousand (inclusive) to NT$4,000 thousand
3	NT$4,000 thousand (inclusive) to NT$6,000 thousand			4,900
4	NT$6,000 thousand (inclusive) to NT$8,000 thousand
5	NT$8,000 thousand (inclusive) to NT$10,000 thousand
6	OverNT$10,000 thousand (inclusive)

Information on the CPA's Fees Unit: NT$ thousands

Accounting Firm	Name of CPA	Audit fees		Non-audit fees	Non-audit fees	Non-audit fees		Auditing period	Remark
			System design	Business registration	Human resource	Misc. (Note 2)	Subtotal
Crowe Horwath (TW) CPAs	Ling-Wen Huang, Jen-Yao Hsieh	760	0	0	0	419	419	Jan. 1, to Jun. 30, 2019	IFRS 9 conversion consultancy fee NT$ 204,000, consolidated and individual English financial statements fee NT$ 195,000, business tax direct debit method assessment and certification fee NT$ 20,000.
	Ling-Wen Huang Shu-Man Tsai	4,140	0	5	0	878	883	July. 1 to Dec. 31, 2019	Transfer pricing report review fee NT$ 350,000, provisional tax declaration assessed and certified fee of NT$ 150,000, consolidated and individual English financial report NT$ 130,000, IFRS 9 conversion consultancy fee NT$ 96,000, capital increase through capitalization of retained earnings NT$ 82,000 and others NT$70,000.

Note 1: Where the Company replaces the CPA or accounting firm, the auditing periods of the former and successor CPA or firm shall be annotated separately with the reason for replacement noted. The accounting and non-accounting fees paid to the former and successor CPA or firm shall also be disclosed.

Note 2: Non-audit fees shall be annotated separately in various service items. If the "Others" column in non-audit fees reaches 25% of the total non-audit fees, the service details should be listed in the "Remarks" column.

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VI. Information on Switching CPAs:

Change of accountant information (II)

(I) Information on the previous independent auditor

Date of Replacement	July,1,2019	July,1,2019	July,1,2019	July,1,2019
Reason of replacement and explanation	The formerly appointed CPAs, Ling-Wen Huang and Jen-Yao Hsieh, have served up to the five-year limit in the same company. Therefore, the accounting firm took the initiative to replace the CPAs. Since the second quarter of 2019, the CPAs for the financial statements are changedtoLing-Wen Huangand Shu-Man Tsai, CPAs.
Statement on whether the authorizing party or the accountant terminate or reject the authorization	Contracting Parties Situation	CPA		The authorizing party
	Voluntarily terminated the authorization	Not applicable		Not applicable
	Reject the (continuing) authorization	Not applicable		Not applicable
The opinions and reasons in the signed and issued audit reports which were not "no reservations" in the last two years	Not applicable
Different opinions from the issuer	Yes		Accounting principles orpractices
			Disclosure of financial report
			Scope orprocedure of auditing
			Others

	None
	Description: Not applicable
Other Disclosures (Matters that should be disclosed in accordance with Item 1-4 to 1-7, Subparagraph 6, Article 10 oftheRegulations)	None

(II) About the successor independent auditor

Name of accountingfirm	CroweHorwath(TW) CPAs
Name ofCPA	Ling-Wen Huangand Shu-Man Tsai, CPAs
Date of Appointment	July1,2019
Opinion inquiry on the accounting methods or principles for certain transactions and financial reporting and results possiblearise beforeappointment	None
Successor CPA to former CPA Writtenviews ondisagreements	None

(III) The former CPA's reply to items in Article 10-6-1 and 10-6-2-3: None.

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VII. The Company's Chairman, President, Vice Presidents, Managers of Finance or Accounting who has worked in CPA Firms or Their Affiliates within the Latest Fiscal Year: None.
VIII. Transfer or Pledge of Equity by the Company's Directors, Executive Officers and Shareholders with more than 10% of the Company's Shares:
Transfer of shares and changes in equity pledge relating to the Directors, managers and primary shareholders:

Title	Name	2019	2019	As of March 31 of the current year	As of March 31 of the current year
		Number of Shares Held Increase (decrease)	Increase (decrease) in equity pledges Increase (decrease)	Number of Shares Held Increase (decrease)	Increase (decrease) in equity pledges Increase (decrease)
Director	Kuo Chiao Investment & Development Co.Ltd.	1,213,149	-	-	-
Chairman	Lin I-Shou	3,141	-	-	-
Director	Wu Lin-Maw	2,725	-	-	-
Director	Ping Yong Liang	903	-	-	-
Manager	Tien-Chi Chang	3,175	-	-	-
Manager	Hsien-Tung Liu	4,072	-	-	-
Manager	Yung-Fang Chang	3,510	-	-	-
Manager	Sen-Lung Chen	418	-	-	-
Manager	Chen Yung-Hsien	2,376	-	-	-
Manager	Wei-Cheng Chen	6	-	-	-
Manager	Kuo-Lin Yang	33	-	-	-
Manager	Chen-Wu Chang	758	-	-	-
Manager	Chang-Hsin Ming	98	-	-	-
Manager	Yao-Hsing Chien	30	-	-	-
Manager	Wen-Pin Lin	2	-	-	-
Manager	Chi-Chen Li	16	-	-	-
Manager	Cheng-Feng Wu	(58,798)	-	(1,000)	-
Manager	Chiu-Lin Pan	859	-	-	-
Manager	Sheng-Wei Sung	55	-	-	-
Manager	Wei-Cheng Chen	665	-	-	-
Manager	Wen-Cheng Pan	112	-	-	-
Manager	Chung-Chan Chiang	2	-	-	-
Manager	Wen-Chung Tien	1,802	-	-	-
Manager	Chen-Hsieng Lin	21	-	-	-

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Title	Name	2019	2019	As of March 31 of the current year	As of March 31 of the current year
		Number of Shares Held Increase (decrease)	Increase (decrease) in equity pledges Increase (decrease)	Number of Shares Held Increase (decrease)	Increase (decrease) in equity pledges Increase (decrease)
Manager	Hui-Fung Li	31,822	-	-	-
Manager	Wen-I Weng	1,289	-	-	-
Manager	Ming-Chia Tien	(44,880)	-	(6,134)	-
Manager	Yang-Cheng Lan	(27,675)	-	-	-
Manager	Hui-Jung Liao	158
Major Shareholder	Wei Chiao Investment Development Co., Ltd.	4,033,716	4,743,000	-	-
Major Shareholder	Yieh United Steel Corporation	5,923,634	(22,000,000)	-	37,500,000
Shares Held in the Name of Other Persons	Lung Yuen Investment Development Co., Ltd.	220,986	(7,401,295)	-	-
Shares Held in the Name of Other Persons	Rong Feng Investment and Development Co., Ltd.	110,262	(5,049,563)	-	-
Shares Held in the Name of Other Persons	Chin-Chi Investment Development Co., Ltd.	165,376	(7,573,586)	-	-
Shares Held in the Name of Other Persons	Chi Chang Enterprise Co., Ltd.	26,930	(1,233,312)	-	-
Shares Held in the Name of Other Persons	Chao Ying Enterprise Co., Ltd.	49,255	(2,255,722)	-	-
Shares Held in the Name of Other Persons	Hsin Pang Enterprise Co., Ltd.	48,202	(2,207,462)	-	-
Shares Held in the Name of Other Persons	Li Hui Development Co., Ltd.	1,558,279	(16,251,871)	-	2,000,000

Note: The additional shares of Chen-Wu Chang and Li Huifeng are transferred from the employee shareholding trust

Note: The share increment is the shares distributed from earnings (in which Cheng-Feng Wu, Ming-Chia Tien, Yang-Cheng Lan and Chen-Wu Chang sells a portion of Yieh Phui’s shares.)

Equity Transfer Information: Not applicable
Equity pledge information: Not applicable

－70－

IX. Information on the Top 10 Shareholders of the Company Who Are Identified as Related Parties, Spouse or Relative within Second-Degree of Kinship:

Relationship Information among the 10 Largest Shareholders

April 20, 2020

Name (Note 1)	Shares held personally when elected	Shares held personally when elected	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares held in the name of others	Shares held in the name of others	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Type	Relationship
(1) Yieh United Co., Ltd. Representative: Lin I-Shou	302,105,336	15.79%	-	-	111,143,993	5.81%	Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co.,Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co.,Ltd.	Its Director is the Chairman of Yieh United
							Ta Ching Motor Industrial Co., Ltd.	Its Director is the Chairman of Yieh United.
(2) Wei Chiao Investment Development Co., Ltd. Representative: Lin I- Shou	205,719,551	10.75%	-	-	-	-	Yieh United Steel Corporation E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co.,Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co.,Ltd.	Its Director is the Chairman of Wei Chiao
							Ta Ching Motor Industrial Co., Ltd.	-
(3) Wei Hong Investment and Development Co., Ltd. Representative: Lin I-Shou	100,528,532	5.25%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co.,Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co., Ltd.	Its Director is the Chairman of Wei Hung

－71－

Name (Note 1)	Shares held personally when elected	Shares held personally when elected	Shares held minor	by spouse and children	Shares held in the name of others	Shares held in the name of others	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Type	Relationship
							Ta Ching Motor Industrial Co., Ltd.	Its Chairman is a Director of Wei Hung
(4) Li Hui Development Co., Ltd. Representative: Yin-Chen Wang	79,472,261	4.15%	-	-	-	-	E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co., Ltd. Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd.	Its Chairman is a Director of Li Hui
							Kuo Chiao Investment and Development Co., Ltd. Ta ChingMotor Industrial Co.,Ltd.	-
(5) E-Da Healthcare Group Representative: Lin I-Shou	66,997,208	3.50%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co., Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co., Ltd.	Its Director is the Chairman of E-Da Healthcare Group
							Ta Ching Motor Industrial Co., Ltd.	Its Chairman is a Director of E-Da Healthcare Group
(6) Hsing Lung Investment & Development Co., Ltd Representative: Lin I- Shou	66,607,694	3.48%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co.,Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co.,Ltd.	Its Director is the Chairman of Hsing-Lung

－72－

Name (Note 1)	Shares held personally when elected	Shares held personally when elected	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares held in the name of others	Shares held in the name of others	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Type	Relationship
							Ta Ching Motor Industrial Co., Ltd.	Its Director is a Supervisor of HsingLung
(7) Kuo Chiao Investment and Development Co., Ltd. Representative: He-Hsing Lai	61,870,646	3.23%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi Investment Co., Ltd.	Its Chairman is a Director of Kuo Chiao
							Ta Ching Motor Industrial Co., Ltd.	Its Chairman is a Supervisor of Kuo Chiao
							Li Hui Development Co., Ltd.	-
(8) Lian Shuo Investment Development Co., Ltd. Representative: Lin I- Shou	55,594,216	2.91%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Chi Yi Investment Co.,Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co.,Ltd.	Its Director is the Chairman of Lian Shuo
							Ta Ching Motor Industrial Co., Ltd.	-
(9) Wei Chiao Investment Development Co., Ltd Representative: Tien-Chi Chang	53,041,053	2.77%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Lian Shuo Investment Development Co., Ltd. Wei Hong Investment and Development Co., Ltd. Chi Yi Investment Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Li Hui Development Co.,Ltd.	-
							Kuo Chiao Investment and Development Co., Ltd.	Its Chairman is a Supervisor of Ta Ching Motors

－73－

Name (Note 1)	Shares held personally when elected	Shares held personally when elected	Shares held by spouse and minor children	Shares held by spouse and minor children	Shares held in the name of others	Shares held in the name of others	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)	NAME AND RELATIONSHIP BETWEEN THE COMPANY’S TOP TEN SHAREHOLDERS, OR SPOUSES OR RELATIVES WITHIN TWO DEGREES(NOTE 3)
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Type	Relationship
(10) Chi Yi Investment Co., Ltd. Representative: Lin I-Shou	42,202,410	2.21%	-	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd.	Chairman is the same person.
							Kuo Chiao Investment and Development Co., Ltd. Li Hui Development Co., Ltd.	Its Director is the Chairman of Chi Yi
							Ta Ching Motor Industrial Co., Ltd.	-
(11) Lin I-Shou	160,237	0.00%	52,470	-	-	-	Yieh United Steel Corporation Wei Chiao Investment Development Co., Ltd. E-Da Healthcare Group Wei Hong Investment and Development Co., Ltd. Hsing Lung Investment & Development Co., Ltd. Lian Shuo Investment Development Co., Ltd. Chi Yi InvestmentCo.,Ltd.	Chairman is the same person.
(12) Yin-Chen Wang	0	0.00%	-	-	-	-	Li Hui Development Co., Ltd.	Chairman is the sameperson.
(13) Tien-Chi Chang	161,972	0.00%	-	-	-	-	Ta Ching Motor Industrial Co., Ltd.	Chairman is the sameperson.
(14) He-Hsing Lai	0	0.00%	-	-	-	-	Kuo Chiao Investment and Development Co., Ltd.	Chairman is the sameperson.

Note 1: Please separately identify the names of corporate shareholders and their respective representatives within substantial shareholders.

Note 2: The calculation of shareholding ratio should separately indicate percentage of shares held under the person's own identity, under spouse, minor children, and others' identities. Note 3: The relationships between the shareholders listed above, including legal persons and natural persons, shall be disclosed.

－74－

X. Number of Shares Invested by the Company, any of the Company's Directors, Supervisors and Executive Officers and Businesses Directly or Indirectly Controlled by the Company and Consolidated Percentage of Shareholding:

Consolidated Shareholding Percentage

December 31, 2019 Unit: Shares; %

					December 31, 2019 Unit: Shares;%	December 31, 2019 Unit: Shares;%
Reinvestment (Note)	Investments by this Company		Investments of Directors, Supervisors, Managers and directly or indirectly controlled businesses		Comprehensive Investment
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage
GOODHONOR HOLDINGS LTD.	46,400	100.00%	0	0.00%	46,400	100.00%
Yieh Phui (Hong Kong) Holdings Limited	233,500,000	100.00%	0	0.00%	233,500,000	100.00%
WORTHING HONOR HOLDINGS LTD.	100,000	100.00%	0	0.00%	100,000	100.00%
Shin Phui Steel Co., Ltd..	20,715,131	100.00%	0	0.00%	20,715,131	100.00%
Shin Yang Steel Co., Ltd.	87,000,000	100.00%	0	0.00%	87,000,000	100.00%
Hsin Pang Investment and Development Co., Ltd.	19,312,500	100.00%	0	0.00%	19,312,500	100.00%
CHAMPION LOGISTIC INC. (SAMOA)	13,000,000	89.66%	1,500,000	10.34%	14,500,000	100.00%
Chian Huan Technology Co., Ltd.	2,814,354	86.99%	730	0.02%	2,815,084	87.01%
EMMT Systems Corporation	33,186,655	78.10%	3,177,962	7.48%	36,364,617	85.58%
Yieh Hsing Enterprise Co., Ltd.	302,376,386	56.98%	218,633	0.04%	302,595,019	57.02%
E-United Japan Co., Ltd.	470	47.00%	0	0.00%	470	47.00%
Kuo Chang Enterprise Co., Ltd.	100,486,824	99.04%	0	0.00%	100,486,824	99.04%
United Brightening Development Corp.	152,972,037	95.56%	0	0.00%	152,972,037	95.56%
Cheng Shin Security Co., Ltd.	1,400,000	35.00%	400,000	10.00%	1,800,000	45.00%
Eliter International Co., Ltd.	283,583,868	32.84%	96,509,050	11.18%	380,092,918	44.02%
E-Da Development Co., Ltd.	209,619,406	28.44%	47,172,184	6.40%	256,791,590	34.84%
Yieh Mau Corporation	51,123,974	23.00%	6,862	0.00%	51,130,836	23.00%
ASIAZONE CO., LTD.	15,090,000	32.80%	0	0.00%	15,090,000	32.80%
E-Da Tour Co., Ltd.	1,349,000	19.00%	28,400	0.40%	1,377,400	19.40%
E-Da Bus Co., Ltd.	1,845,307	17.09%	10,229	0.09%	1,855,536	17.18%
Skylark Hot Spring Co., Ltd.	1,170,000	14.63%	2,000,000	25.00%	3,170,000	39.63%
Tang Eng Iron Works Co., Ltd.	39,553,000	11.30%	69,500,000	19.86%	109,053,000	31.16%
Hong Yuh Assets Management Co., Ltd..	119,920,000	80.00%	0	0.00%	119,920,000	80.00%
LIAN SO (HK) CO., LIMITED	16,560,000	80.00%	0	0.00%	16,560,000	80.00%

－75－

Reinvestment (Note)	Investments by this Company	Investments by this Company	Investments of Directors, Supervisors, Managers and directly or indirectly controlled businesses	Investments of Directors, Supervisors, Managers and directly or indirectly controlled businesses	Comprehensive Investment	Comprehensive Investment
	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage	Number of Shares	Shareholding Percentage
YIEH PHUI AMERICA, INC.	1,000	100.00%	0	0.00%	1,000	100.00%
E-Da Recreation Co., Ltd.	7,410,000	19.00%	0	0.00%	7,410,000	19.00%
Li Hui Development Co., Ltd.	64,045,000	44.56%	0	0.00%	64,045,000	44.56%
Chi Chang Enterprise Co., Ltd.	1,042,200	45.00%	0	0.00%	1,042,200	45.00%
Yieh United Steel Corporation	671,290,515	25.62%	131,250,246	5.01%	802,540,761	30.63%
E-Da Visual Effects Co., Ltd.	1,470,000	49.00%	0	0.00%	1,470,000	49.00%
Groupco Technology	0	0.00%	8,330,000	92.50%	8,330,000	92.50%
E-Da Health Biotechnology Co., Ltd.	380,000	19.00%	380,000	19.00%	760,000	38.00%
APPLIED WIRELESS IDENTIFICATIONS GROUP INC.	0	0.00%	40,488,461	91.47%	40,488,461	91.47%
AWID Asia Co., Ltd.	0	0.00%	3,030,000	100.00%	3,030,000	100.00%
AWID Sanghai Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
AWID Changshu Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
Yieh Phui (China) Technomaterial Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
Changshu ChangHuei Trading Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
Tianjin Lianfa Precision Steel Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
E-Hwa International Co., Ltd.	0	0.00%	700,000	70.00%	700,000	70.00%
Huaglam International Co., Ltd.	0	0.00%	6,000,000	100.00%	6,000,000	100.00%
Shin Lin Steel Co., Ltd.	0	0.00%	3,425,000	100.00%	3,425,000	100.00%
PT. YIEH FERRO INDONESIA	0	0.00%	500,000	100.00%	500,000	100.00%
Luen Hang Mining Limited	0	0.00%	0	100.00%	0	100.00%
Lien-Hung Mining Co., Ltd.	0	0.00%	0	100.00%	0	100.00%
Asia Pacific Limited	0	0.00%	54,500	100.00%	54,500	100.00%
Lian Yang (Hong Kong) Trading Co., Ltd.	0	0.00%	100,000	100.00%	100,000	100.00%
Investment holding	0	0.00%	30,400,000	100.00%	30,400,000	100.00%
Kingsgarden International Co., Ltd.	206,000,000	49.28%	212,000,000	50.72%	418,000,000	100.00%
Great Emperor Hotel Co., Ltd.	147,000,000	41.18%	210,000,000	58.82%	357,000,000	100.00%

－76－

Chapter 4 Funding Status

I. Capital and Shares

(I) Source of Share Capital

Unit: NT$ thousands, thousand shares

							Unit: NT$ thousands, thousand shares	Unit: NT$ thousands, thousand shares
Year and month	Issue Price	Authorized Capital		Paid-in capital			Remark
		Number of Shares	Amount	Number of Shares	Amount	Source of Capital	Capital Increased by Assets Other than Cash	Others
1995.05	10	600,000	6,000,000	339,422	3,394,220	Capitalization of earnings 950,227	None	May 10, 1995 MOF Official Letter No. 27765
1996.04	10	600,000	6,000,000	424,278	4,242,780	Capitalization of earnings 848,556	None	Mar. 3, 1996 MOF Official Letter No. 21718
1997.01	10	600,000	6,000,000	484,278	4,842,780	Issuance of common stocks 600,000	None	Oct. 22, 1996 MOF Official Letter No. 59340
1997.06	10	600,000	6,000,000	508,492	5,084,920	Capitalization of earnings 242,139	None	May 30, 1997 MOF Official Letter No. 43183
1998.06	10	750,000	7,500,000	584,766	5,847,660	Capitalization of earnings 762,738	None	Apr. 30, 1998 MOF Official Letter No. 35445
1999.09	10	750,000	7,500,000	672,481	6,724,810	Capitalization of earnings 877,149	None	Aug. 10, 1999 MOF Official Letter No. 73628
1999.11	10	750,000	7,500,000	747,481	7,474,810	Cash capital increase 750,000	None	Nov. 11, 1999 MOF Official Letter No. 87166
2000.06	10	1,000,000	10,000,000	837,178	8,371,780	Capitalization of earnings 896,977	None	Jun. 21, 2000 MOF Official Letter No. 53713
2001.02	10	1,000,000	10,000,000	797,178	7,971,780	Capital reduction (cancellation of treasury stocks) 400,000	None	Nov. 14, 2000 MOF Official Letter No. 85102 Nov. 29, 2000 MOF Official Letter No. 97250 Jan. 17, 2001 MOF Official Letter No. 102095 Feb. 08, 2001 MOF Official LetterNo.107419
2001.10	10	1,000,000	10,000,000	829,065	8,290,659	Capitalization of earnings 318,871	None	Jul. 14, 2001 MOF Official Letter No. 144750
2001.12	10	1,000,000	10,000,000	809,065	8,090,660	Capital reduction (cancellation of treasury stocks) 200,000	None	Sep. 5, 2001 MOF Official Letter No. 156354
2003.09	10	1,250.000	12,500,000	922,335	9,223,352	Capitalization of earnings 1,132,692	None	Aug. 12, 2003 MOF Official Letter No. 0920136291
2003.12	10	1,250,000	12,500,000	994.605	9.946.051	Domestic corporate bonds	None	Jan. 20, 2004 MOEA Official Letter No. 0930101042

－77－

Year and month	Issue Price	Authorized Capital	Authorized Capital	Paid-in capital	Paid-in capital	Remark	Remark	Remark
		Number of Shares	Amount	Number of Shares	Amount	Source of Capital	Capital Increased by Assets Other than Cash	Others
						conversion 722,699
2004.03	10	1,250,000	12,500,000	1,034,618	10,346,181	Domestic corporate bonds conversion 400,130	None	Apr. 21, 2004 MOEA Official Letter No. 09301068070
2004.09	10	1,250,000	12,500,000	1,074,722	10,747,216	Domestic and overseas corporate bond conversion 401,035	None	Nov. 10, 2004 MOEA Official Letter No. 09301213380
2004.12	10	1,250,000	12,500,000	1,095,303	10,953,026	Domestic and overseas Corporate bond conversion 205,811	None	Feb. 24, 2005 MOEA Official Letter No. 09401031080
2005.03	10	1,320,000	13,200,000	1,195,303	11,953,026	Cash capital increase 1,000,000	None	Mar. 28, 2005 MOEA Official Letter No. 09401048940
2005.03	10	1,320,000	13,200,000	1,196,258	11,962,580	Domestic and overseas Corporate bond conversion 9,553	None	Apr. 26, 2005 MOEA Official Letter No. 09401072640
2005.08	10	1,520,000	15,200,000	1,256,071	12,560,709	Capitalization of earnings 598,129	None	Sep. 19, 2005 MOEA Official Letter No. 09401176700
2005.08	10	1,520,000	15,200,000	1,260,930	12,609,299	Capital Increase 48,590	None	Sep. 30, 2005 MOEA Official Letter No. 09401184830
2006.10	10	2,000,000	20,000,000	1,349,195	13,491,950	Capitalization of earnings 882,651	None	Oct. 25, 2006 MOEA Official Letter No. 09501235990
2007.09	10	2,000,000	20,000,000	1,389,671	13,896,708	Capitalization of earnings 404,758	None	Oct. 16, 2007 MOEA Official Letter No. 09601251540
2008.10	10	2,000,000	20,000,000	1,459,154	14,591,543	Capitalization of earnings 69,483	None	Oct. 21, 2008 MOEA Official Letter No. 09701268630
2009.03	10	2,000,000	20,000,000	1,411,863	14,118,633	Capital reduction (cancellation of treasury stocks) 47,291	None	Mar. 27, 2009 MOEA Official Letter No. 09801060200
2009.09	10	2,000,000	20,000,000	1,454,219	14,542,192	Capitalization of earnings 42,356	None	Sep. 22, 2009 MOEA Official Letter No. 09801218880

－78－

Year and month	Issue Price	Authorized Capital	Authorized Capital	Paid-in capital	Paid-in capital	Remark	Remark	Remark
		Number of Shares	Amount	Number of Shares	Amount	Source of Capital	Capital Increased by Assets Other than Cash	Others
2010.10	10	2,000,000	20,000,000	1,526,930	15,269,302	Capitalization of earnings 72,711	None	Oct. 5, 2010 MOEA Official Letter No. 09901224020
2011.10	10	2,000,000	20,000,000	1,603,276	16,032,767	Capitalization of earnings 76,346	None	Oct. 11, 2011 MOEA Official Letter No. 10001229410
2012.10	10	2,000,000	20,000,000	1,635,342	16,353,422	Capitalization of earnings 32,065	None	Oct. 3, 2012 MOEA Official Letter No. 10101203790
2014.09	10	2,000,000	20,000,000	1,668,049	16,680,491	Capitalization of earnings 32,707	None	Sep. 12, 2014 MOEA Official Letter No. 10301190130
2015.09	10	2,000,000	20,000,000	1,718,090	17,180,905	Capitalization of earnings 50,041	None	Sep. 21, 2015 MOEA Official Letter No. 10401195830
2017.09	10	2,000,000	20,000,000	1,821,176	18,211,760	Capitalization of earnings 103,085	None	Sep. 26, 2017 MOEA Official Letter No. 10601132590
2018.09	10	2,000,000	20,000,000	1,875,811	18,758,112	Capitalization of earnings 54,635	None	Sep. 17, 2018 MOEA Official Letter No. 10701118100
2019.09	10	2,000,000	20,000,000	1,913,327	19,133,275	Capitalization of earnings 37,516	None	Sep. 19, 2019 MOEA Official Letter No. 10801128440

Note 1: The information for the current year as of the publication date of this annual report shall be filled. Note 2: The effective (approval) date and the official letter number shall be specified for the capital increase. Note 3: Shares issued at a lower par value shall be indicated in a clear manner. Note 4: If the shares are denominated in currency debts, technology and the stock exchange, the Company shall state the following reasons and add the type and amount of the said funds. Note 5: Private placement shall be indicated in a clear manner.

Unit: Shares

				Unit: Shares
Share Category	Authorized Capital			Remark
	Outstanding Shares (Note)	Unissued shares	Total
Registered common shares	1,913,327,518	86,672,482	2,000,000,000	Shares of listed companies

Information on shelf registration

Unit: NT$ thousands, thousand shares

Types of securities	Estimatedissuanceamount	Estimatedissuanceamount	Amountof issued	Amountof issued	The purpose and expected benefits of the issuedportion	Unissued shares Scheduled time of issuance	Remark
	Total number ofshares	Approved Amount	Number of Shares	Price
Not applicable

(II) Structure of Shareholders:

Structure of Shareholders

As of April 20, 2020

－79－

Structure of Shareholders Quantity	Government Agencies	Financial Institutions	Other Legal Persons	Natural Person	Foreign Institutions and Foreigners	Treasury stocks	Total
Number of Individuals	1	2	148	74,840	139	1	75,131
Number of Shares Held	13	7,042,162	1,241,896,180	519,300,211	126,204,952	18,884,000	1,913,327,518
ShareholdingPercentage	0.00%	0.37%	64.90%	27.14%	6.60%	0.99%	100.00%
	Shares Held byCapital from Mainland China: 0%

Note: Companies primarily-listed on TWSE and OTC and emerging stocks listed at Taipei Exchange shall disclose the proportion of its shares held by investors from Mainland China. Investors from Mainland China refers to natural persons, legal persons, organizations, institutions or companies in areas other than Taiwan and Mainland China invested by persons of such identity as defined in Article 3 of the Regulations Governing Investment of Mainland Chinese in Taiwan.

(III) Share Distribution:

Conditions of Share Distribution

As of April 20, 2020

Shareholding Range	Number of Shareholders	Number of Shares Held	Shareholding Percentage
1 to 999	39,231	7,115,317	0.37%
1,000to 5,000	19,856	45,188,974	2.36%
5,001 to10,000	6,362	44,465,661	2.32%
10,001 to15,000	3,356	40,932,466	2.14%
15,001 to20,000	1,492	25,536,278	1.33%
20,001 to 30,000	1,797	43,302,941	2.26%
30,001 to 50,000	1,306	49,564,028	2.59%
50,001 to100,000	945	64,147,223	3.35%
100,001 to200,000	438	58,638,524	3.07%
200,001 to400,000	186	50,874,526	2.66%
400,001 to 600,000	52	25,597,224	1.34%
600,001 to 800,000	24	16,591,664	0.87%
800,001 to 1,000,000	8	7,242,504	0.38%
1,000,001 or more, grading depending on actualcircumstances	78	1,434,130,188	74.96%
Total	75,131	1,913,327,518	100%

Preferred stocks

As of April 20, 2020

Shareholding Range	Number of Shareholders	Number of Shares Held	Shareholding Percentage
Classification of actual situation	Not applicable
Total

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(IV) List of Major Shareholders:

List of Major Shareholders

As of April 20, 2020

As of April 20, 2020
Shares Name of substantial shareholders	Number of Shares Held	Shareholding Percentage
YiehUnited SteelCorporation	302,105,336	15.79%
WeiChiaoInvestment DevelopmentCo.,Ltd.	205,719,551	10.75%
Wei HongInvestment andDevelopmentCo.,Ltd.	100,528,532	5.25%
Li Hui DevelopmentCo.,Ltd.	79,472,261	4.15%
E-Da Healthcare Group	66,997,208	3.50%
HsingLungInvestment&DevelopmentCo.,Ltd.	66,607,694	3.48%
Kuo ChiaoInvestment andDevelopmentCo.,Ltd.	61,870,646	3.23%
LianShuoInvestment DevelopmentCo.,Ltd.	55,594,216	2.91%
TaChingMotor IndustrialCo.,Ltd.	53,041,053	2.77%
Chi Yi Investment Co.,Ltd.	42,202,410	2.21%

(V) Information on Market Price, Net Worth, Surplus, and Dividend per Share for the Most Recent Two Years:

Market Price, Net Worth, Earnings and Dividends

Year Item	Year Item	Year Item	2018	2019	Current year up to March 31, 2020 (Note 8)
Market Price per Share (Note 1)	Max.		12.80	10.30	9.15
	Min.		9.04	8.77	7.65
	Average		10.52	9.40	8.4
Net worth per share(Note 2)	Before distribution		14.81	—	—
	Afterdistribution		14.43	—	—
Earnings per share	Weighted average number of shares		1,875,811 thousand shares	1,913,327 thousand shares	1,913,327 shares
	Earnings pershare (note3)		0.16		—
Dividends per share	Cash Dividend		0.1	—	—
	Stock dividends	Dividends from retained earnings	0.2	—	—
		Capitalsurplus distribution	—	—	—
	Accumulated unpaid dividend (Note4)		—	—	—
Analysis of investment	Price-to-earningsratio (Note5)		65.75		—
	Price-to-dividendratio (Note 6)		105.2	Not applicable	—
	Cash dividend yield (Note 7)		0.01	Not applicable	—

If any revenue or capital surplus is transferred to capital increase or common stock, further disclose

information on market prices and cash dividends retroactively adjusted based on the number of shares after distribution.

Note 1: List the highest and lowest market price of the common shares for each year, and refer to the transaction value and transaction volume to calculate average market price for each year.

Note 2: The table should be filled by using the shares already issued by year-end as a basis, and also by referencing the allocation that the shareholders' meeting has decided on for the subsequent year.

Note 3: If there are any retroactive adjustments needed due to stock grants, Earnings per share before and

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after the adjustment should be listed.

Note 4: If there are any conditions in issuing equity securities that allow for unpaid out dividend for the year to be accumulated to subsequent years in which there is profit, the Company should separately disclose the accumulated unpaid out dividend up to that year.
Note 5: P/E Ratio = Average closing price for each share for the year/earnings per share
Note 6: P/D Ratio = Average closing price for each share for the year/cash dividend per share
Note 7: Cash dividend yield = cash dividend per share/average closing price per share for the year
Note 8: For net worth per share and earnings per share, information on the net worth per share from the most recent quarter of the year of the publication of the Annual Report has been audited or reviewed by a CPA shall be filled. For other columns, the Company shall fill in the information of the current year as of the publication date of this annual report.
(VI) Dividend Policy and Implementation:
1. Dividend policy stipulated in the Company's Articles of Incorporation is as follows:
  - Article 31: The earnings from each final account of the Company shall be distributed in accordance with the following principles:
  - A. Dividend Policy:
    - The life cycle of the Company's industry is in the mature period. The dividend policy is in line with the current and future development plans, taking into account the investment environment, demand for capital, domestic and foreign competitions and shareholder benefits. Each year, no less than 20% of the distributable earnings is distributed to the shareholders as dividends. However, when the accumulated distributable earning is less than 20% of the paid-in capital, dividends will not be allotted.
  - B. Conditions and timing of distribution:
    - The surplus earnings per unit of the Company shall be calculated as legal reserve. After completing all the tax losses and make up for the losses of the previous years, the Company shall first set aside 10% of its balance as legal reserve. After the balance of the shareholders' equity is set aside, the rest of the earning shall be distributed through resolutions of shareholders' meeting.
  - C. Dividend types: Cash dividends are distributed at between 20% to 100% of total dividends distributed in accordance with the actual profitability while stock dividends are distributed at 0%-80% of the total dividends distributed.
  - D. Distribution of dividends depends on the operation results. The Board of Directors plans distribution of dividends and forwards the plan to the shareholders' meeting for final decision.
2. The proposed appropriation of loss on the Shareholders' Meeting this year:

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appropriation of loss

The Company proposes to list 2019 appropriation of loss, as shown below in details:

Yieh Phui Enterprise Co., Ltd.

Deficit off-setting Table 2019

Unit: NTD

Item Amount

Undistributed surplus at the beginning of the period	717,742,787
Plus: Remeasurement of the confirmed benefit plan included in the retained surplus	74,829,096
Plus: changes in related companies and joint ventures recognized using the equity method	3,744,187
Minus: Changes in ownership interest in subsidiaries	(9,673,210)
Minus: net loss after tax of theperiod	(1,401,080,550)
Deficit to be offset at the end of theperiod(614,437,690)

(VII) Impact on Business Performance and Earnings per Share (EPS) of Any Stock Dividend Distribution Proposed or Adopted at the Most Recent Shareholders' Meeting: None.

(VII) Impact on Business Performance and Earnings per Share (EPS) of Any Stock Dividend Distribution Proposed or Adopted at the Most Recent Shareholders' Meeting: None.	(VII) Impact on Business Performance and Earnings per Share (EPS) of Any Stock Dividend Distribution Proposed or Adopted at the Most Recent Shareholders' Meeting: None.	(VII) Impact on Business Performance and Earnings per Share (EPS) of Any Stock Dividend Distribution Proposed or Adopted at the Most Recent Shareholders' Meeting: None.	(VII) Impact on Business Performance and Earnings per Share (EPS) of Any Stock Dividend Distribution Proposed or Adopted at the Most Recent Shareholders' Meeting: None.
Unit: NT$thousands(excludingNT$for earningsper share)
Year Item			2020 (Note 1) (Estimated)
Beginning paid-incapital			19,133,275
Distribution of dividends thisyear	Cashdividend pershare		—
	Surplusto capital increase stockdividend pershare		—
	Capital reserveto capital increase stockdividend pershare		-
Changes in Operating Performance	Operatingincome		Not applicable (Note 2)
	Ratio of increase (decrease)inoperating profitover the same periodlastyear
	Net incomeafter tax
	Ratio of increase (decrease) in NIAT over the same period last year
	Earnings pershare
	Ratio of increase (decrease)in EPS over the same periodlastyear
	Annual average return on investment (reciprocal of average annual interest rate)
Pro forma earnings per share and P/E ratio	If the surplus to capital increase is realized through cash dividend	Proformaearnings pershare	Not applicable (Note 2)
		Pro forma average annual return on investment
	If capital reserve to capital increase is not implemented	Proformaearnings pershare
		Pro forma average annual return on investment
	If the capital reserve is not paid and the surplus to capital increase is paid through cash dividend	Proformaearnings pershare
		Pro forma average annual return on investment

Note 1: Awaiting the resolution by the 2020 shareholders' meeting. Note 2: According to the "Regulations Governing the Publication of Financial Forecasts of PublicCompanies", the Company is not required to disclose financial projections for 2020.

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(VIII) Compensation to Employees and Directors:
The number or range of remunerations of employees and Directors as stated in the Company's Articles of Incorporation.
- Article 30-1 of the Articles of Incorporation of the Company provides the following:

If the Company makes a profit in the year (the so-called profit refers to the before tax profit before deducting compensation of employees and Directors), more than 0.2% shall be allotted for employees' compensation and 0.1% or less for compensations of the Directors. But the Company shall reserve a portion of profit to make up for accumulated losses, if any.

Accounting basis for discrepancies between the estimated and actual distributed amount of remunerations in the form of shares to the Company's employees and Directors in this period.
A. Estimation basis: When the profit gained in this year is at the same level of the previous year, use the distribution structure for estimation of this year's distribution.
B. Calculation basis for compensations paid with shares: the Company pays compensations of employees, Directors in cash, never with stock dividends.
C. Accounting practice when the amount of actual distribution is different from the estimated amount: If there is a difference between the actual distributed amount and the estimated amount, the difference shall be adjusted in the month recognized by the shareholders' meeting. The Company shall pay the remunerations of employees, and Directors in the amount recognized by the shareholders' meeting.
The board of directors passed the distribution of remuneration: due to the company’s loss in 2019, no employee director remuneration will be given
Actual distribution of remuneration to employees, directors and supervisors in the previous year (including number of shares, amount and per-share price) and the difference to the estimated amount, stating the amount of difference, cause and reconciliation.

	Estimated amount for 2018	Approved amount by the Board of Directors on March 21,2019	Amount of actual payment	Difference between estimate and actualpayment	Causes	Status
Employee compensation in cash	579,561	579,561	579,561	0	None	None
Employee compensation in shares	0	0	0	0	None	None
Directors' remuneration	289,781	144,890	144,890	144,891	The Board approved a resolution to distribute 0.05%.	The difference was adjusted in March 2019.

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Unit: NTD

(IX) Repurchase of Shares by the Company

	Unit: NTD
Share Buyback frequency	The Eighth Buyback
Purpose for share buyback	To enhance the credit of the company and the rights of stockholders
Buybackperiod	March 16- May15,2020
Buybackprice range	NT$8-9.5per share
Number and type of share buyback	Common shares 22,758,000 shares
Buyback volume	NT$185,259,045
The purchased shares as a percentage of the planned buyback	22.76%
Number of shares to be written off or transfer	0
Accumulated shareholding	22,758,000 shares
Accumulated shareholding as a percentage of outstandingshares(%)	1.19%
Reasons for not completing share buyback	To respect the market mechanism and safeguard the interests of the stockholders, Yieh Phui has not fully implemented the planned share buyback due to the fluctuation of the stock

II. Issuance of Corporate Bonds: The Company has not issued any corporate bonds in the most recent year up to the publication date of this annual report.
III. Issuance of Preferred Shares: The Company has not issued any preferred shares in the most recent year up to the publication date of this annual report.
IV. Issuance of Overseas Depository Receipts: The Company has not issued any overseas depository receipts in the most recent year up to the publication date of this annual report.
V. Issuance of Employee Stock Option Warrants: None.
VI. Issuance of New Share in Connection with Mergers and Acquisitions: None VII. Implementation of Capital Utilization Plan: None

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Chapter 5 Operational Overview

I. Business Content:

(I) Scope of Business:
The main contents of the Company's consolidated business:

Horticulture Service Basic Industrial Chemical Manufacturing Other Non-metallic Mineral Products Manufacturing Iron and Steel Refining Iron and Steel Rolls over Extends and Crowding Iron and Steel Casting Iron and Steel Rolling, Drawing, and Extruding Steel Wires and Cables Manufacturing Metal Architectural Components Manufacturing Metal line Products Manufacturing Other Fabricated Metal Products Manufacturing Not Elsewhere Classified Metal Surface Treating Machinery and Equipment Manufacturing Other Machinery Manufacturing Not Elsewhere Classified Electronic Parts and Components Manufacturing Automobiles and Parts Manufacturing Motor Vehicles and Parts Manufacturing Wholesale of Flowers Wholesale of hardware Wholesale of Building Materials Wholesale of Machinery Wholesale of Motor Vehicle Parts and Supplies Other Wholesale Trade Retail sale of Flowers Retail Sale of Ironware Retail Sale of Building Materials Retail Sale of Machinery and Equipment Retail Sale of Motor Vehicle Parts and Supplies Retail Sale of Other Retail Trade Not Elsewhere Classified International Trade Steel Construction Leasing, selling and development of residential and commercial buildings Specialized Field Construction and Development New County and Community Construction and Investment Real Estate Commerce

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Real Estate Rental and Leasing Rental and Leasing Business Wired Communication Equipment and Apparatus Manufacturing Telecommunication Equipment and Apparatus Manufacturing Computer and peripheral equipment manufacturing industry Parts Manufacturing Precision Instruments Manufacturing Medical Materials and Equipment Manufacturing Electric Appliance Installation Apparatus Installation Construction International Trade Software Design Services Electric Appliance and Audiovisual Electric Products Repair Shops Electrical Machinery, Avionics and Supplies Manufacturing Energy technology service Industry Surface treatment, manufacturing, processing, wholesale, retail, domestic sale and export of stainless steel wire material, carbon steel wire material, free-cutting steel wire material, alloy steel wire material, rolling door material, steel pipe, stainless steel pipe, mechanical parts, steel strip, steel strip, can, alloy steel and stainless steel.

Processing, manufacturing, trade, domestic sale and export of various types of parts and hardware for scooter and bicycles. Delegate construction companies in building public housing, lease and sale of commercial building.

Design, processing and sale of iron plate and composite steel frame. Design, processing, manufacturing and sale of mechanical frame. Processing, manufacturing and sale of galvanized iron plate, coated iron plate and cold pressed steel plate. Processing, manufacturing, domestic sale and export of rolled steel, steel, structural steel, steel wire, iron strip and iron wire. Operation of farm, livestock farm. Manufacture, processing, trade and import and export of various types of paper pulp, paper and their raw materials. Design, manufacture, installation and maintenance of machinery and equipment for steel mill, power plant, petrochemical plant, incineration plant and water treatment plant, including piping, pipe support, ventilation equipment, flue pipe, dust collector, fire extinguishing system, pressure vessel, furnace, annealing tank, heating furnace, conveyer and crane.

All business items that are not prohibited or restricted by the law, except those that are subject to special approval.

Proportion of consolidated businesses

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Main Products	Amount	Ratio %
Pickled steel coil	35,784	0.06
Rolled steel coil	6,288,890	10.54
Galvanized steel coil	21,844,754	36.60
Coated steel coil	16,161,594	27.08
Steelpipe	2,806,385	4.70
Wire	6,165,940	10.33
Construction revenue	1,497,478	2.51
Electronicproducts	681,874	1.14
Others	4,204,898	7.04
Total Revenue	59,687,597	100.00

The Company's current consolidated product items include: manufacturing, processing, and trade of pickled steel coil, cold-rolled steel coil, (aluminum) zinc plated steel coil, coated steel coil, steel coil products, mechanical parts, piping engineering design, stainless steel wire, carbon steel wire, alloy steel wire and free-cutting steel wire, steel bar and straight bar, OEM/ODM, RFID products, walkie-talkie, smart monitoring system for LED street light.

4. Consolidated planned new product development:

Item	Goal
1. Drawing quality thin gauge galvanized steel	Development of car shaft parts suitable for stamping and drawing for Volkswagen, with a thickness of 0.2mm. Main applications are rotary shafts including window wiper, car door, rear trunk, and could be expandedto othervehicleapplicationsin thefuture.
2. Pre-painted steel forphotovoltaic bracket	Development of economical bracket material for applications in harsh environments such as C5 and CX, with equal corrosion resistance, betterpriceand yieldthanpost-painted galvanized steel.
3. Anti-microbial plus metallic coated steel product with nanoMark	It is developed for the ducting (regular spangle) of top-class mansions located in Hong Kong and Singapore. In addition to inhibit the growth of ordinary pathogens, it shows notable inhibitionon legionella.
4. Anti-microbial plus color coated steel product with nanoMark	Nano zinc will be added into the paint to inhibit more types of pathogens and increase its performance. To promote the new product via acquisition of nanoMark.
5. Anti-microbial and anti-fingerprint treated metallic coated steel product	Develop low-temperature anti- microbial and anti-fingerprint treated metallic coated steel product so that product is equipped with self-cleaning and anti- microbial features, able to reduce contact between human body and bacteria, and improve operating environment. The product is applicable for ductingand decking.
6. HSLA steel product	Develop high-strength low-alloy (HSLA) galvanized steel sheet, reduces carbon content to avoid decrease in weldability. The product is applicable for automotive structuralparts.
7. Cold-rolled products of SEDDQ grade	Develop SEDDQ cold-rolled steel sheet for extra deep drawing, increases products' added value. The product is applicable for automotive panel.
8. Phosphorus-added high-strength IF	Develop Phosphorus-added high-strength IF cold-rolled steel, increases products' added value, product diversification and satisfies customers'

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Item	Goal
cold-rolled steel	special requirements. The product is applicable for automotive panel.
9. Bake hardening cold-rolled steel product	Develop bake hardening cold-rolled steel products, increases products' added value and product diversification, and satisfies customers' special requirements.The productis applicableforautomotive panel.
10. Duplex steel cold-rolled steel product	Develop duplex cold-rolled steels products, increases products' added value and product diversification, and satisfies customers' special requirements. The productis applicableforautomotive structuralparts.
11. Aluminum coated steel product	Develop Aluminum coated steel products, increases products' added value and product diversification, and satisfies customers' special requirements. The productis applicableforautomotive parts.
12. Tank with high precision cutting fluid filtration function	Develop tank with high precision cutting fluid filtration function, to extend cutting fluid's recycling useful life, thus reducing cost. Applicable for roll grindingmachines.
13. Welding wheel with self-cleaning and self-coolingfunctions	Develop welding wheel with self-cleaning and self-cooling function, increases efficiency of the welding machine and success rate of welding. Applicable forgalvanized wire.
14. Self-lubricating steel product	Develop anti-fingerprint treated metallic coated steel product with self-lubricating function, increasing product's processing and forming performance.
15. HSLA cold-rolled steel product	Develop high-strength low-alloy (HSLA) cold-rolled steel sheets, reduces steel sheets' carbon content to avoid drop in weldability. The product is applicablefor automotive structuralparts.
16. High corrosion resistant zinc-aluminum coated steelproduct	To cater to the requirements of materials for ABB electrical box, develops high corrosion-resistant zinc-aluminum coated steel products under salt spraytesting.
17. Cut and corrosion resistant PVDF color coated steel product	Develop cut and corrosion resistant PVDF color coated steel products, satisfying customer's special requirements. The product is applicable for engineeringwork in harsh environment.
18. Strip simulated annealing test equipment	Self-develop test equipment for use in simulated annealing, to reduce input and loss during online testing.
19. Portable metallographic testing method	Research and develop simple and fast metallographic detection methods, to be used in fast metallographic detection for advanced car steel (duplex steel, TRIPsteel)manufactured
20. Pickling communication disk temperature control system	Real-time monitoring of environmental temperature of electrical control room, prevent protective power outage due to overheating.
21. A new shape of backup roll development	Change backup roll forming in existing rolling mill to prevent slanted steel sheet
22. A type of equipment with highly efficient HCL gas absorption	Use in ARP HCL recovery and reuse, to reduce loss of materials and environmental pollution
23. A type of new air knife ystem that reduces over galvanization at the edge	Use to improve coated products' thick edge problem
24. A type of highly efficient online testing for surface defects	Use in PLTCM for fast online examination of detect resistance on the surface, to avoid defects from entering the rolling mill resulting in breakage
25. Galvanized products for steel-plastic composite sheet	Surface and forming quality are emphasized in the development of this product. It is currently used in China and North America container body market. It has high tensile strength, is convenient and light weight, and has added values such as economical value, safety, energy-saving and environmentallyfriendly.

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Item	Goal
26. High weather resistance and self-cleaning color coated steel sheet	Develop new type of self-cleaning color coated steel sheet, with hydrophilic additives added to the coating material, giving the product surface excellent self-cleaning and stain resistant characteristics. It is applicable for outdoor buildingmaterials of high added value.
27. Cold-rolled transformation induced plasticity steel product	Develop cold-rolled transformation induced plasticity steel products, increases products' added value, product diversification and satisfies customers' special requirements. The product is applicable for automotive structuralparts.
28. Cold-rolled products for flux cored wire	Develop cold-rolled products for flux cored wire, increases products' added value, product diversification and satisfies customers' special requirements.
29. Cold-rolled products for Bundy tube	Develop cold-rolled products for Bundy tube, increase products' added value & product diversification, and satisfy customers' special requirements, applicablefor freezers.
30. Cold-rolled products for rice cooker	Develop cold-rolled products for rice cooker, increases products' added value, product diversification and satisfies customers' special requirements.
31. Tungsten Carbide Coated Roll	Increase useful life of zinc pot and stability of quality
32. The development of antistatic, efficient anti-microbial pre-painted steel	Antistatic, efficient anti-microbial pre-painted steel sheet is developed by combining antistatic agents and anti-microbial paint coatings. The product can be applied to construction projects with specific requirements to increaseproduct competitiveness.
33. The development of efficient anti-microbial metallic coated steel 33	Efficient anti-microbial metallic coated steel with anti-microbial passivation is developed for construction projects with specific requirements to increase product competitiveness.
34. The development of hot-dip Al-Si hot stamping steel	Hot-dip Al-Si hot stamping steel, a product with bright market prospects for automotive safety parts, is developed to increase product variety.
35. The development of photocatalytic antibacterial pre-painted steel	Antibacterial pre-painted steel sheet was developed by combining paint coatings with photocatalysts, which can be applied to construction projects withspecificrequirementstoincrease productcompetitiveness.
36. The development of advanced high strength dual phase DP590 hot-dip galvanized steel	DP590 dual phase steel, which is widely applied for automotive safety structural part in the market at present , is developed to increase product variety.

(II) Industry Overview:

Current state and development of the industry Steel, being a necessary raw material for social and economic development, is a key indicator to evaluate a country's industrial production capability. Every country in the world deems its steel industry a sign of state power. To improve a nation's competitiveness, every country, developing and developed alike, takes an proactive stance in boosting the industry.
In the earlier phase, domestic steel industry develops in line with the post-war needs for economic development, and gains a footing gradually through the period in which the government carries out its economic planning and development in several phases. Generally, development of domestic steel industry can be broken down into 5 phases: The infancy phase before 1971; the growth phase in mid-1970s after the incorporation of China Steel Corporation (CSC); the mature period in 1980s when CSC launched its expansion of phase 2

－90－

and phase 3 construction, and private investors actively participates in plant construction.

After endeavors for half a century, domestic steel industry has shifted in line with the economic development from making steel out of scraps in the early days to adopting highly-mechanized steel mills and steel mills equipped with electric furnaces. The most advanced production techniques are also introduced, providing a complete basis for Taiwan's steel industry. Currently, domestic steel industry possess a comprehensive system comprising upstream, midstream, and downstream suppliers. Except for ultra-special steel products, it wields the ability to produce the various steels by itself.

The steel industry has a high capital and high technology-intensive characteristics, and the development of the industry must rely on the support of industrial, electrical machinery, civil, transportation and information industries, and the integration of downstream industries, and thus, the industry is highly capable of the industry's industrial and industrial development. Thus, the Company has made great contribution to the industry and thus has a significant output in the industry. Thus, the Company has made great contribution to the industry and the industry is highly committed to the industry. Thus, the Company has made great contribution to the industry and the industry is expected to have a significant output. Thus, the Company has made great contribution to the industry and the industry's overall economic growth.

Relationship between upstream, mid-stream and downstream companies:

From the production history of iron and steel advanced countries, plated steel has the effect of replacing hot-rolled and cold-rolled steel. The rapid growth of the demand can be seen from the continued demand growth of global plated steel materials in recent years. Also, plated steel materials such as galvanized and coated steel plate are equipped with features such as: excellent corrosion resistance, easy processing, nice exterior, long useful life, low maintenance cost, recyclable and reusable and can replace wood, etc. With global climate anomalies and increase in environmental protection awareness in recent years, it has become an ideal environmental friendly material for infrastructure.

If upstream steel mills are able to supply low cost and competitive raw materials to mid and downstream companies, and let mid and downstream companies to turn to processing, export or for domestic sale, it will effectively increase the performance of processing and export, enhance the growth of gross domestic product (GDP). In addition, if upstream steel mills are able to further provide mid and downstream companies with in-depth processing, creating raw materials with higher added values, it would be able to bring out the effect of up, mid and downstream supply chain integration. The industry's foundation will then continue to expand, and mid and downstream companies will be able to better obtain industrial upgrade opportunities, create cluster effect, increase investment

－91－

proportion in Taiwan, and create more job opportunities.

Yieh Phui is a professional manufacturer of plated steel materials such as galvanized products, coated steel coil, etc. Before the 90s, the supply of domestic plated steel material was less than demand, and had to rely on import to satisfy the gap after the significant increase in consumption. As such, the Company strived to replace imports with self-manufactured products. Besides attaining the goal of replacing imports with domestic products, it also relieves downstream processing companies of the inconvenience of delay in delivery date, unstable quality, tying down of funds, exchange rate risk, etc., that arise due to import. It directly increases operating efficiency and improves international competitiveness.

Product competitiveness and development trend:

In recent years, global plated steel material consumption continues to see a stable growth, leading to continued increase in production capacity. Influenced by globalization trend, the change of market share accelerated. Adapting to the change and adjusting the operating strategies to adapt to the global market pose a challenge.

As an island, the economy in Taiwan is the so-called "shallow-plate" type, of which natural resources are limited and economic growth heavily relies on international trades and income generated by exporting. With the backdrop of global marketing in steel, in terms of Free Trade Agreement (FTA), Taiwan is currently relatively weaker than other competing countries. This results in decrease in export competitiveness due to difference in tariff. Improvement in the short run is not expected and requires the government's active intervention. However, the Company will strive to maintain flexible operation, and continue to enhance our product categories, dimension combination, equipment capacity, etc. which are more superior to our peers'. We will also expand our marketing channels, providing customers with more comprehensive services and feedback on raw materials purchase. Besides actively increasing product quality and image, we will also actively develop new products, to realize the blue ocean strategy, exceed our competitors, and conform to environmental protection trend. Our product specifications are geared towards environmental friendly green products, with the aim to increase operating performance.

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(III) Technology and R&D Overview:
Consolidated research and development expenses invested in last fiscal year, up to the date of publishing of this annual report:

A total of NT$91,803(000) in 2019, and NT$22,071(000) between January and March 2020.

2. Consolidated products successfully researched and developed

Item	Date of Development
Environmental SGLC product development care and mobile device	February 2016	Successfully developed SGLC products (thickness 0.2mm - 0.3mm) of good flatness, and with substrate content and process adjustment, is applicable for electronic and electrical products for shallow drawn forming and welding, to meet the requirements of lightweight and low cost.
Environmentally friendly HSLA galvanized steel sheet	November 2016	Successfully developed HSLA galvanized products steel sheet with thickness of more than 2.0 mm and tensile strength of 410 MPa and 480 MPa, applicable for high processing and welding in motorcars and station wagon. This product complies with the requirements of European Union'sRoHSandautomotive directive.
Environmental trivalent-chromium metallic coated steel product for outdoor use	June 2017	The successful development of environmental trivalent chromium metallic coated steel sheets for outdoor building materials complies with the EU Directive of not using hexavalent chromium before September 20, 2017; it was produced approximately 15,000 tons in the fourth quarter of 2017 and saved approximatelyNT$8 million of solution cost.
Environmental color coated steel product for outdoor use	August 2017	The successful development of color coated steel product for outdoor building materials complies with the relevant regulations of the EU and Japan on 2019 green chrome-free green building materials, and the development progress and product physical and chemical properties are significantly ahead of those in the domestic coating industry, increasing YP's productcompetitivenessallover the world.
Environmental chrome-free color coated steel product for stone-coating metal products	October 2017	Successfully developed environmental chrome-free color coated steel product for stone-coating metal tiles in Europe. The performance evaluated by customers is better than that of European competitive steel products. This makes YP a leading player in the EU's relatively competitive market and has obtained great attention from customers of the US,Japan,Australia and New Zealand.
High performance nano environmental passivating and surfacing coated steel sheets	June 2018 October 2018	Surfacing and coated steel sheets were successfully developed. With the verifications of Food Industry Research and Development Institute and SGS, the products are anti-bacterial and anti-mold that can prevent bacteria with strong resistance, such as SA, Corynebacterium Diphtheriae, Legionella pneumophila, Aspergillus niger. The products are certified by Taiwan Nanotechnology Industry Development Association (TANIDA), wildly implemented in wall and air-con system in medical institutions, food and biotechnology factories, libraries, theaters, shopping malls, airports, MRT stations, and other public areas. Theycan avoid the risks of cluster infection.
Environmentally friendly surface treatment for pre-painted steel substrate	April 2019	Successfully developed chrome-free surface pretreatment which is decomposed during degreasing process in the coil coating line. By replacing conventional oil treatment, the new pretreatment successfully breached the barrier of the European Safeguards, with a accumulated annual sale of more than 60,000 tons.
High performance PVF (polyvinyl fluoride) pre-painted steel	July 2019	By fully understanding the paint properties and adjusting the curing temperature profile, paint supply and coating technologies for PVF (polyvinyl fluoride) were successfully developed. PVF offers higher weather and chemical resistance than PVDF and is suitable for high-end constructionprojectsand environments classifiedas C5and CX.
High performance PVF (polyvinyl fluoride) laminated steel	December 2019	By controlling the laminating pressure and temperature accurately, PVF laminated pre-painted steel was successfully developed. Possible applications are partitions and compartment boards for aerospace, yacht, and other more corrosive environments.
HSLAcold-rolled steelproduct	January2016	14003658Successfully developedHSLAcold-rolled steelof 260MPa

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Item	Date of Development
		grade tensile strength,applicable for automotive structuralparts.
HSLA metallic coated steel product	March 2016	Successfully developed HSLA cold-rolled metallic coated steel sheet of 260MPa grade tensile strength, applicable for automotive structural parts.
Pickling communication disk temperature controlsystem	June 2016	Real-time monitoring of environmental temperature of electrical control room, preventprotective poweroutage dueto overheating.
A new shape of backup roll development	October 2016	Change backup roll forming in existing rolling mill to prevent slanted steel sheet
Anti-microbial and anti-fingerprint treated metallic coated steel product	March 2017	Develop low-temperature anti- microbial and anti-fingerprint treated metallic coated steel product so that product is equipped with self-cleaning and anti- microbial features, able to reduce contact between human body and bacteria, and improve operating environment. Theproduct is applicable for ductingand decking.
Aluminum coated steel product	October 2017	Develop aluminum coated steel products, increases products' added value and product diversification, and satisfies customers' special requirements.The product isapplicablefor automotive parts.
Self-lubricating metallic coated steel product	November 2017	Develop anti-fingerprint treated metallic coated steel product with self-lubricating function, increasing product's processing and forming performance.
HSLA cold-rolled steel product	October 2017	Successfully developed HSLA cold-rolled steel of 340MPa grade tensile strength,applicablefor automotive structuralparts.
High corrosion resistant zinc-aluminum coated steel products	April 2017	To cater to the requirements of materials for ABB electrical box, develops high corrosion-resistant zinc-aluminum coated steel products under salt spraytesting.
A type of equipment with highly efficient HCLgas absorption	March 2017	Use in ARP HCL recovery and reuse, to reduce loss of materials and environmentalpollution
Cold-rolled products for Bundy tube	December 2017	Develop cold-rolled products for Bundy tube, increase products' added value & product diversification, and satisfy customers' special requirements,applicableforcondensers of refrigeratorsandfreezers.
The development of high strength low alloy hot-dip galvanized H260LA,H420LA steel	June 2018	Successfully developed the high strength low alloy hot-dip galvanized steel sheet, it is applied for the automobile stamping parts.
The development of high strength interstitial free H220YD hot-dip galvanized steel	July 2018	Starting from the market demand, develop the coating products conforming to EN10346-HX220YD which applicable for the automotive stamping parts.
The development of lubricant circulation system for temper mill at hot-dip galvanizingline	October 2018	In order to purify the recycling of the tempering emulsion and reduce the cost, one filtering device is developed to remove zinc or iron fines in thelubricantcirculationsystem.
The development of high strength low alloy hot-dip galvanized HX300LA steel	November 2018	Successfully developed the high strength low alloy hot-dip galvanized steel sheet, it is applied for the automobile stamping parts.
The development of thermal spraying tungsten carbide WC-12Co coated roll	November 2018	In order to effectively increase service life of zinc pot roll and improve the quality of hot-dip galvanized steel sheet, Yieh Phui(China) developed one thermal sprayingtungsten carbide coated roll.

(IV) Short- and Long-Term Business Development Plans
Long-term business development plans: Long-term business development direction is the fundamentals of continuing to develop niche products and niche market. The Company flexibly adjusts product profile based on customer requirements, continues to develop market or products for end use, embarks on the environmental-friendly trend, to cater to the rapid market growth in Asia regions and other emerging industrial countries, as well as catering to existing sales channels.
Short-term business development plan

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Taiwan is a thin market, and the Company estimates that the domestic hot-dip galvanized market share in 2019 is about 25%, the second largest supplier in the market. In terms of domestic coating market, it has a market share of 25%, and is also the second largest supplier in the market. Although domestic sales do not make up majority of overall sales, it is the basis of sales, especially significant during violent international market condition.

The short-term goal is to actively implement the business direction of securing domestic market share, and actively strengthen the product portfolio. At present, the main product applications are focused on four major material solutions such as health and environmental protection, renewable energy, safety and fire protection, and information electronics, while satisfying domestic customers' demand for material quality improvement and expanding the business scope of the Company.

II. Market, Production and Sales Overview

(I) Market Analysis:

Product's main sales regions: The Company's plated and coated products continue to be marketed to the world, with sales channels in various places around the world. Besides the basic domestic market, export markets include China, Southeast Asia, Middle East, United States, Canada, E.U., Australia and other regions.
Market share and market's future supply and demand situation and growth: According to the steel demand forecast of Taiwan (2019-2024) issued by Taiwan Iron and Steel Association in 2019, the annual demand of hot-dip galvanizing (including GI, GA, gf and GL) in 2018 was about 1.41 million tons, an increase of 0.66% compared with about 1.401 million tons in 2017, which was caused by the sluggish demand of domestic infrastructure projects. Annual demands of hot dip galvanizing in 2019 is projected to 1.6 million tones, increased by 13.46% as compared to 2018. It is expected that Mainland China will continue reducing steel capacity and continue to actively promote the reform of the steel industry in 2020, it is a positive message for our domestic and international steel market.
The Company will continue to implement global marketing strategy. The export ratio is expected to be 60~70% in 2019. The export ratio will be high when our capacity can meet the needs of the domestic market this year. The Company takes a flexible strategy in arranging the orders for individual customer base on their market conditions to ensure operating efficiency and performance.
Analyze the advantages and disadvantages of competitive niche and development prospect, and then provide countermeasures against the disadvantages:

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Advantages:

A. The product line of plating and coating are complete and the output ranks first in the industry. Under the production conditions of economic scale, the Company can fulfill the market demand, and the cost competitiveness is superior to other companies. In recent years, the Company actively develops all kinds of eco-friendly products , improves the added value of products and meets various needs of customers.
B. The purchase of hot rolling raw materials is mainly from domestic sources, which can avoid risks such as exchange rate, delivery date and quality, and reduce the impact by international economic fluctuations.
C. According to the statistics of the CRU International Steel Journal, the global consumption of plated steel in 2019 is about 180,400,000 tons, an increase of 790,000 tons from the 17.961 million tons in 2018, an increase of 0.44%. Even under the influence of the US China trade war, the demand has not declined During the 10 years from 2009 to 2019, the average compound annual growth rate of consumption has reached 5.5%, much higher than the global economic growth rate. It shows that the plated steel plate follows the global economic growth and is still a strong product in various application fields.
D. During the global climate change, there are frequent abnormal phenomena, and more and more attention is paid to the trend of environmental protection. The galvanized and painted steel processed with steel raw materials has the advantages of environmental protection and recyclability, and it still has development potential in the future.
E. Compared with the industry, the Company continues to implement internal management, which is conducive to the progress of production and marketing The Company had introduced Total Productive Maintenance (TPM) as early as 1998, of which the first-stage TPM focused on "equipment," the second-stage TPM focused on "personnel," the third-stage TPM focused on "corporate image" and "quality service," the fourth-stage TPM focused on "touching service," and the fifth-stage TPM focused on "comprehensive service," so as to make Yieh Phui an enterprise valuing both manufacturing and services. The Company has currently committed itself to "Becoming world's best iron and steel manufacturing and service enterprise by 2020."

Disadvantages:

A. Ever since Taiwan became a member of WTO in 2002, import tariff on steel products has been eliminated. Along with the fact that domestic infrastructure construction slows down, domestic demands for steel are not easy to rise. Although the Company wields an advantage in quality, the competition from low-price steel imports is inevitable and poses a greater

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operating difficulty for the Company.

  - B. The Company adopts a high proportion of export sales strategy. The international market fluctuates with the global economic situation, making it not as stable as the domestic market. In recent years, the prosperity of trade protection in various countries highlights the Company's difficult situation in global trade.

  - C. Taiwan's slow progress in negotiating and signing free trade agreements (FTA) with other countries has weaken Taiwan's competitiveness in foreign trade year by year and international market development become very difficult. In November 2019, ten Association of Southeast Asian Nations (ASEAN) countries and 5 non regional countries (excluding India) including Mainland China conducted free trade negotiations. The "Regional Comprehensive Economic Partnership", (RCEP) has announced the completion of the negotiations and is expected to be signed in 2020 Except for Taiwan, almost all economies with some scale in Asia are included. China, Japan and South Korea will be more competitive in the Southeast Asian market due to import tariff preferences, and Taiwan will continue to be excluded.

(II) Applications and Manufacturing Processes of Main Products
Main Products:

Product Item Main application

Pickled steel coil For use in electrical appliances, furniture and motor cars, industrial machinery, etc.

Cold-rolled steel coil For use in electrical appliances, furniture and motor cars, industrial machinery, etc.

Galvanized steel coil Raw materials for construction industry, household appliances, hardware, automobile industry, machinery Coated steel coil Raw materials for construction industry, household appliances, hardware, automobile industry, machinery Steel coil products Raw materials for construction industry, household appliances, automobile industry (scooter, bicycle), machinery Building's steel structure Building structure of residential buildings, office buildings, supermarkets, etc. Plant's steel structure Plant structure for electronic plant, power plant, steel mill, incineration plant, etc. Bridge's steel structure For use in roads and bridges Frame crane Bridge crane for transportation and hoisting in industrial plants Straddle Carrier Lifting equipment for arranging and transportation of containers at container yard Container crane Lifting equipment for hoisting of container at ports and harbors Steel pipe Raw materials for construction industry, furniture, automobile industry (scooter, bicycle), machinery

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2. Manufacturing process:

Hot rolled steel coils

==> picture [445 x 616] intentionally omitted <==

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

Pickling Pickled steel
Warehouse
outbound
Cold rolling Cold rolled
Warehouse
Galvanization Galvanized
inbound
Coating Coated steel
Hot-rolled/cold-rolle
d steel coil
Slitting
Warehouse
outbound
Hot-rolled/cold-r
Tubing olled steel pipe
Warehouse
inbound
Galvanized steel
Galvanization
pipe
Hot-rolled/pickled/cold-rolled Warehouse
steel coil outbound
Hot rolling/Pickling/cold rolling Warehouse
Cutting/Slitting
Cutting steel plate, steel strip inbound
Finished product inspection
Finished product inspection
inspection
Finished product
----- End of picture text -----

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Manufacturing process

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

Steel plate/structural
steel
Raw material
production Square tube, H-beam
Cold working Hoisting at site
Product: Building's steel structure
Welding Warehouse inbound
Product: Plant's steel structure
Coating Finished product Product: Bridge's steel structure
inspection
----- End of picture text -----

==> picture [459 x 213] intentionally omitted <==

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

Steel plate/machinery/electrical
product
On-site
Cold working Product: Overhead crane
inspection
Welding Hoisting Product: Straddle Carrier
Machining Factory test Product: Container crane
Coating Assembly
----- End of picture text -----

(III) Supply of Main Raw Materials:

Main raw materials	Supplybydomestic suppliers	Supplybyforeign suppliers
Steel rolls	91.17%	8.83%
Paint	100.00%	0.00%
Zinc(aluminum)ingots	39.91%	60.09%
Steel billet	83.30%	16.70%

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(IV) Information of Customers that Contribute More Than 10% of Total Purchase/Sales in the Most Recent Two Years:

1. List of suppliers that contribute to more than 10% of the Company's net purchase:

Information of major suppliers in the most recent 2 fiscal years

	2018	2018	2018	2018	2019	2019	2019	2019	As of lastquarter of 2020(Note 2)	As of lastquarter of 2020(Note 2)	As of lastquarter of 2020(Note 2)	As of lastquarter of 2020(Note 2)
Item	Type	Amount	Percentage of annual net purchase (%)	Relationship with the Issuer	Type	Amount	Percentage to net purchase in the year up to the previous quarter (%)	Relationship with the Issuer	Type	Amount	Percentage to net purchase in the year up to the previous quarter(%)	Relationship with the Issuer
1	4017	16,867,076	27.71%	Non-related parties	4017	13,519,552	27.36%	Non-related parties	4017	2,905,825	26.58%	Non-related parties
2									A00008	1,150,355	10.52%	Non-related parties
3									A00141	1,142,008	10.45%	Non-related parties
	Others	43,994,540	72.29%		Others	35,886,383	72.64%		Others	5,733,110	52.45%
	Net purchases ofgoods	60,861,616	100.00%		Net purchases of goods	49,405,934	100.00%		Net purchases of goods	10,931,297	100.00%

Note 1: List the names of suppliers with more than 10% of the total purchase amount in the most recent 2 fiscal years, as well as the purchase amount and proportion. However, if it

is not allowed to disclose the names of suppliers or trading partners as individuals and non related parties due to contractual agreements, it can be coded as such.

Note 2: As of the date of publication of the annual report, a company listed or whose stock is listed on the stock exchange or traded over the counter shall disclose any financial information in the most recent period that has been audited, certified or reviewed by a CPA, if any.

Reason for increase or decrease: cater to business requirements

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2. List of customers that contribute to more than 10% of the Company's consolidated net sales:

Information of major customers for the most recent 2 fiscal years

	2018	2018	2018	2018	2019	2019	2019	2019	As of lastquarterof 2020 (Note2)	As of lastquarterof 2020 (Note2)	As of lastquarterof 2020 (Note2)	As of lastquarterof 2020 (Note2)
Item	Type	Amount	% of annual net sales	Relationship with the Issuer	Type	Amount	% of annual net sales	Relationship with the Issuer	Type	Amount	Percentage to net sales in the year up to the previous quarter(%)	Relationship with the Issuer
1
2
3
4
5
6
7
8
9
10
	Others	73,856,189	100		Others	59,687,596	100		Others	12,653,192	100
	Net sales	73,856,189	100		Net sales	59,687,596	100		Net sales	12,653,192	100

Note 1: List the names of suppliers with more than 10% of the total sales amount in the most recent 2 fiscal years, as well as the purchase amount and proportion. However, if it is not allowed to disclose the names of suppliers or trading partners as individuals and non related parties due to contractual agreements, it can be coded as such.

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(V) Production Volume and Value of the Most Recent Two Years

Unit: tons; NT$ thousands

				Unit: tons; NT$ thousands	Unit: tons; NT$ thousands	Unit: tons; NT$ thousands
Year Production and volume Primary Products (ordepartment)	2019			2018
	Production capacity	Production volume	Production value	Production capacity	Production volume	Production value
Pickled steel coil	2,110,000	1,092,291	18,171,900	2,110,000	1,264,702	22,395,082
Rolled steel coil	1,020,000	444,877	7,985,921	1,020,000	552,103	10,440,642
Hard rolled steel coil	1,600,000	1,306,035	21,513,930	1,600,000	1,378,555	24,527,878
Cold rolled steel coil	500,000	99,805	1,907,895	500,000	240,495	4,677,931
Galvanized steel coil	1,900,000	1,610,579	32,909,003	1,900,000	1,815,444	39,531,048
Coated steel coil	710,000	495,765	12,743,276	710,000	522,614	14,229,180
OEM steel coil	-	74,221	148,766	-	78,732	137,494
Others	-	104,131	1,103,883	-	95,652	1,160,563
Steel pipe	300,000	232,512	4,814,523	300,000	271,641	5,604,932
Bridge crane	-	13	259,720	-	10	260,325
Steel structure	-	30,116	1,295,239	-	26,746	935,824
Wire	500,000	288,144	6,737,439	500,000	425,451	8,392,211
Total	8,640,000	5,778,490	109,591,495	8,640,000	6,672,145	132,293,110

(VI) Sales Volume and Value of the Most Recent Two Years: Unit: tons; NT$ thousands

(VI) Sales	Volume and Value of the Most Recent	Volume and Value of the Most Recent	Volume and Value of the Most Recent	Volume and Value of the Most Recent	Two Years: Unit: tons; NT$ thousands	Two Years: Unit: tons; NT$ thousands	Two Years: Unit: tons; NT$ thousands	Two Years: Unit: tons; NT$ thousands
Year Sales volume Main Product (Or Sector)	2019				2018
	Domestic sales		Export		Domestic sales		Export
	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount
Pickled steel coil	165	2,077	2,234	33,666	102	1,476	11,993	208,110
Rolled steel coil	1,523	18,939	-	-	2,085	30,352	-	-
Hard rolled steel coil	148	2,595	271,660	4,617,169	-	-	240,362	4,455,897
Cold rolled steel coil	-	-	93,759	1,649,109	1,945	42,157	222,648	4,210,937
Galvanized steel coil	300,733	6,353,649	782,735	18,280,314	263,989	6,388,647	1,102,884	24,824,408
Coated steelcoil	66,221	2,343,995	436,786	12,771,671	56,414	2,123,374	528,421	15,493,634
Trade	49,667	818,830	-	-	45,001	797,544	-	-
OEM steel coil	35,020	119,464	250	1,306	32,011	114,969	10,716	5,877
Wire	268,046	4,896,073	21,277	1,565,052	380,877	5,707,542	37,458	2,928,084
Steelpipe	85,663	1,637,304	67,449	1,767,019	63,767	1,389,243	96,358	2,488,113
Bridge crane	13	269,096	-	7	10	286,369	-	-
Steelstructure	30,116	1,377,586	-	-	26,746	967,702	-	-
Others	45,827	421,592	68,711	741,086	44,656	492,241	79,881	899,515
Total	883,142	18,261,199	1,744,861	41,426,398	917,603	18,341,615	2,330,722	55,514,574

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III. Employee Information of the Most Recent Two Fiscal Years up to the Printing of this Annual Report:

	Year	2018	2019	Current year up to March 31, 2020 (Note)
Number of employees	Male	3,614	3,634	3,606
	Female	609	645	665
	Total	4,223	4,279	4,271
Average age		39.45	40.22	40.34
Average year of services		9.78	10.81	10.82
Education level	Ph.D.	0.30%	0.30%	0.30%
	Master	7.36%	7.36%	7.45%
	University	53.07%	53.07%	53.38%
	Senior (Vocational) High	34.73%	34.73%	34.58%
	Below high school	4.53%	4.53%	4.28%

Note: The annual data shall be updated as of the publication date of this annual report.

IV. Environmental Protection Expenditure:

(I) Total damages (include compensation) and punishment due to environmental pollution in last fiscal year up till January 22, 2020:

Item	2016	2017	2018	2019	January 22, 2020
Pollution (type, extent)	None	None	In violation of the provisions of the "Air Pollution control Act", burning, melting, refining, grinding, casting, conveying or other operations are carried out, resulting in the generation of obvious granular pollutants, scattered in the air or otherpeople's property.	None	None
Compensation recipient or unit imposing the punishment	None	None	The unit imposing the punishment is Environmental Protection Bureau, Kaohsiung City Government	None	None
Compensation amount or punishment	None	None	Fine of NT$100,000, and 2 hours of environmental education workshop.	None	None
Other damages	None	None	None	None	None

(II) Future countermeasures and possible expenditure:

Improvement plans:
(1) Implement environmental protection and abide by the various environmental protection laws and regulations.
(2) Abide by ISO 14001 system, and carry out regular checks and identification in accordance to the environmental protection laws and regulations.
(3) Actively implement management by walking around in the plant, and deficiency correction preventive measures.
(4) Participate in seminars and lectures on environmental protection laws and regulations and strengthen communication and coordination with the competent authority.

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Item	2019	2020	2021	2022
Pollution control equipment to be purchase or expenditure	1. Supplies replacement and cleaning of air pollution control equipment. 2. VOCs air pollution charges. 3. Sulfur oxides and nitrogen oxides emission charge.	1. Supplies replacement and cleaning of air pollution control equipment. 2. VOCs air pollution charges. 3. Sulfur oxides and nitrogen oxides emission charge.	1. Supplies replacement and cleaning of air pollution control equipment. 2. VOCs air pollution charges. 3. Sulfur oxides and nitrogen oxides emission charge.	1. Supplies replacement and cleaning of air pollution control equipment. 2. VOCs air pollution charges. 3. Sulfur oxides and nitrogen oxides emission charge.
Expected Improvements	1. Replace Raschig ring, heat storage materials and dust filter bag regularly to improve air quality (approximately NT$3,224.5 thousand). 2. Expected to pay VOC emission charges of NT$357.5 thousand per year. 3. Expected to pay sulfur oxides and nitrogen oxides emission charges of NT$181.5 thousand peryear.	1. Replace Raschig ring, heat storage materials and dust filter bag regularly to improve air quality (approximately NT$3,224.5 thousand). 2. Expected to pay VOC emission charges of NT$357.5 thousand per year. 3. Expected to pay sulfur oxides and nitrogen oxides emission charges of NT$181.5 thousand peryear.	1. Replace Raschig ring, heat storage materials and dust filter bag regularly to improve air quality (approximately NT$3,224.5 thousand). 2. Expected to pay VOC emission charges of NT$357.5 thousand per year. 3. Expected to pay sulfur oxides and nitrogen oxides emission charges of NT$181.5 thousand peryear.	1. Replace Raschig ring, heat storage materials and dust filter bag regularly to improve air quality (approximately NT$3,224.5 thousand). 2. Expected to pay VOC emission charges of NT$357.5 thousand per year. 3. Expected to pay sulfur oxides and nitrogen oxides emission charges of NT$181.5 thousand peryear.
Amount	Approx. NT$3,763.5 thousand	Approx. NT$3,763.5 thousand	Approx. NT$3,763.5 thousand	Approx. NT$3,763.5 thousand

2. Expected environmental protection capital expenditures for next three years 3. Impact after improvements

Item	2019	2020	2021	2022
Impact on netprofit	Low impact	Low impact	Low impact	Low impact
Impact on competitive position	Continue to increase environmental protection performance, promote harmony in neighborhood,and maintaingood corporate image.

V. Labor-management Relations:

(I) Existing important labor-management agreements and implementation situation: The Company belongs to the iron and steel industry. Our employees are competent, and we implement people-oriented management. We fallow the clauses in the " Universal Declaration of Human Rights", The "the UN Guiding Principles on Business and Human Rights", "The United Nations Global Compact, (UNGC)" ", and "International Labor Organization" - recognize the right of everyone to freely choose / accept work for a living, treat and respect colleagues, contract staff and interns with dignity. In addition to providing guidance and training on job-related capacities, the Company provides legal, equitable and quality labor conditions to ensure that employees and their families lead a stable life; employees actively participate in matters of labor management relations while the Company develops a

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harmonious business environment both for the employer and the employees through honesty:

Respect basic human rights, demonstrating diversity and equal opportunities for all
(1) To ensure equal employment opportunities, an employer shall not discriminate against job applicants on the basis of race, social class, language, belief, religion, political party, origin, birth place, sex, sexual orientation, age, marital status, appearance, features, disability, horoscope, blood type or past membership of a labor union. The employer shall not conduct discriminative physical, verbal, or dispositional action based on the above listed.
(2) The Company has formulated a clear and fair employee policy/standards and do not hire child labor, and provide employees with fair wages and equal salary for the same type of jobs without discrimination. To motivate employee and retain/attract talent, the average adjustment of price and salary increments for employees ranges from 3% to 6% with reference to price changes and salaries within the industry. However, there is no salary adjustment given the operating conditions in 2019.
(3) The Company deploys fairness of employment, remuneration, training, evaluation, and promotion opportunities, and the provision of effective and appropriate grievance mechanisms. Employee complaint channels such as "Operations without Illegal Intervention", "Sexual Harassment Prevention Regulation", "Workplace Unlawful Prevention" and "Sexual Harassment Prevention Committee" are all established to prevent and respond to the rights and interests of employees.
(4) Established internal regulations of award and punishment for cases of management level or peer bullying and workplace violence such as physical and verbal assaults, intimidation and threatening, and sexual harassment.
(5) Employee Welfare Committee encourages employees to establish diverse clubs and promote leisure and entertainment to cultivate peer connection.
Healthy and safe workplace
(1) The Company has obtained the "Excellent Healthy Workplace" award by the "Healthy Workplace Certification of National Health Service, Ministry of Health and Welfare".
(2) The Company has obtained "Sports Enterprise Certification of Sports Administration, MOE".
(3) The Company has set up a health management center equipped with fitness equipment, and hired professional coach to provide trainings. The Company not conducts total productive maintenance (TPM) on machinery and equipment, but also pays attention to the daily healthcare and fitness of its employees.
(4) The Company provide each employee annual medical checkups by E-Da Hospital, serving as a preliminary health check for the employees.
(5) The Company worked with E-Da Hospital in setting up a clinic in the factory, assist employees in health management and regularly hold various healthy activities, encourage employees to participate freely in order to provide a healthy life for employees.
(6) The Company worked with E-Da Hospital to provide "Employee Health Management Planning and Services". Through the establishment of the Company's exclusive health care manager, we analyzed the annual health examination results and work-related factors, tracked specific personnel by grouping, prevented potential health risks, and provided the Company's

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employee health management, health information, medical consultation and other services.

(7) The working hours are based on labor laws and regulations to ensure that employees are not exposed to the risks of overwork and excessive hours. The regulations governing the determination of work hours and extended work hours are specified in the regulation to regularly manage and care for employees' attendance status and health risks.
Communication and rewards
(1) The Company has always worked hard for the establishment of internal communication channels. In order to reduce waste of paper, the GroupWise e-mail system has been widely used by employees.
(2) The Company has set up a labor-management Committee, meetings for members of Occupational Safety and Health Committee, and meetings for Employee Welfare Committee, providing a communication platform for both labor and management respecting employees' rights, benefits, and occupational safety.
(3) The Company has set up a employee centripetal web page on the internal website. By setting up a diversified communication platform, employees can better understand the Company's decision-making direction in a timely manner. Set up a "speak out loud column" to provide employees with instant up and down communication channels, making communication more efficient.
(4) The Company has regulations on rewards and punishments. In addition to reporting rewards for great achievements, merit recording and awards, the company may also issue a "bonus" to encourage employees according to the decision of the superior.
(5) In order to encourage the Company's employees to put forward suggestions for operation improvement, so as to achieve the purpose of improving performance, the Company has established management rules for innovation proposals, and calculates the benefits and bonuses according to the benefits of improvement proposals.
Welfare and training
(1) The Company treats its staff as one of its important assets. Besides purchasing labor and health insurance in accordance with the regulations, employees may also be protected by group insurance and travel insurance, comprising life insurance and business travel insurance and the insurance premium is fully paid by the Company, so that the work and provide employees with more security in work and life.
(2) Besides enjoying the benefits of group insurance for themselves, employees may also purchase discounted insurances in critical illness, medical, cancer insurance and personal accident, for their immediate family members and spouse and provide perfect care for employees and their families.
(3) Cooperates with E-Da Healthcare Group in providing discounts on medical expenditures incurred by employees' spouse or immediate family.
(4) The Company provides various kinds of subsidies and benefits, including subsidies in childbirth, marriage, travel, funeral and burial, hospitalization due to general injury or occupational injury, as well as subsidies and incentives for their children.
(5) The Company has established a well-organized Employee Welfare Committee, which is composed of representatives of various departments to organize various employee welfare and activities.
(6) Employees who have served more than three months may apply for Yieh

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Phui's stock ownership. 20% of stock ownership is set aside as awards each year, in order to achieve the goal of long-term savings and ensure a stable life in the future.

(7) Bonus shall be paid according to the Company's monthly sales performance and personal performance.
(8) The year-end performance bonus will be paid according to the Company's annual business profit and personal performance.
(9) Cooperates with Mega International Commercial Bank in providing employees with no more than 10 times of inter-bank withdrawals, ATM transfers and internet bank transfers per month with no administrative charges.
(10) Employees may apply special leave on 2-hourly basis, so that they can strike a better balance between work and family.
(11) Employees are allowed to extend their working hours and to perform duties in exchange for days off or for overtime allowance. The flexibility in working hours enable staff to have a balance between work and life.
(12) The Group's Leisure and Entertainment Business provides the employees with exclusive discounts on leisure and relaxation.
(13) The Company was awarded the gold certificate of "TTQS (Talent Quality-management System)" issued by the Ministry of Labor, and established a comprehensive talent cultivation and development plan according to the "Talent Quality-management System".
(14) The Company communicates its value and policy to new employees on time, to provide employees with a friendly and safe working environment.
(15) Employees are encouraged to take continuing education respecting their professional abilities. The Company holds a variety of required courses relating to occupational competence every year, helps employees obtain professional license, and subsidies them to have a bachelor's / master's degree from I-Shou University.
(16) The Company arranges training courses in accordance with work safety laws and regulations for employees in specific positions that conform to regulations governing occupational safety and health. The Company also coaching them in obtaining the necessary license for prevention of occupational hazards.
(17) The Company has set up a knowledge platform for education trainings, and integrated the platform with digital learnings, so as to put forward a systematic operation and management.
(18) Finance personnel obtaining relevant qualifications specified by the competent authority:
- A. The Company's chief financial officer has passed the course of "Professional Certification for Accounting Manager of Public Listed Company" of the Accounting Research and Development Foundation.
- B. Two auditors of the Company have obtained "Basic Proficiency Test for Corporate Internal Control" organized by the Securities and Futures Institute.
- C. One financial personnel of the Company has obtained the certificate "Certificate of Competency in Corporate Action" "Certificate of Professional Competence Test of Stock Affair Specialist" awarded by the Securities and Futures Institute.
- D. One finance personnel of the Company has obtained "Certified Public Accountant" license awarded by the Ministry of Examination.
Retirement measures and implementation:

－107－

(1) In order to provide a stable lifestyle for employees after retirement, in accordance with the Labor Standards Act, has established employees retirement mechanism. Regular employees of the Company who meet the retirement requirements of articles 53 and 54 of the Labor Standards Act will be given pension funs based on their years of service in the Company.
(2) In accordance with the Regulations for the Allocation and Management of the Workers' Retirement Reserve Funds, the Company shall make a monthly retirement reserve of 6% of the total salary paid to employees, and fill out the "Retirement Reserve Deposit Slip" and deposit it in the Bank of Taiwan before the 20th of the next month.

(II) List of damages due to labor-management disputes in the last two years: None

VI. Important Contracts:

Nature of the Contract	Contracting Parties	Contract start/end date	Major Contents
Superficies contract	Shin Phui Steel Co., Ltd.	June 15, 2001-June 14, 2051	1. Payment method of royalty: Payment of NT$120,000 thousand to be amortized over 50 years. 2. As of December 31, 2019, NT$44,500 thousand was allocated.
Superficies contract	Shin Yang Steel Co., Ltd.	April 1, 2015 - March 31, 2025	1. Rent collection method: Monthly rent of NT$983 thousand to be collected at the beginning of each month. 2. Rental income recognized in 2019 was NT$11,796 thousand.
Construction contract	Installation of six travelling container cranes at track 40T of Pier 120 rear storage area, Kaohsiung Harbor, Port of Keelung Taiwan International Ports Corporation.	August 14, 2015 - April 30, 2020	Total contract value: NT$311,100 thousand.
Construction contract	E-DA Asia Plaza ground structure construction project of Hing Chuan Construction Co.,Ltd.	March 30, 2015 - September 30, 2020	Total contract price: NT$1,928,244 thousand.
Construction contract	YKK Taiwan's Chungli Plant No.2 construction project by Chung Lu Construction	March 28, 2018 - June 30, 2020	Total contract price: NT$331,610 thousand.
Construction contract	Construction and installation of 40T*42M tracked overhead container crane for China Container Transport at Pier No. 10 and 11 of TaichungHarbor	February 20, 2017 - July 31, 2020	Contract price: NT$202,300 thousand
Construction contract	Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd.	August 07, 2017 - April 30, 2020	Total contract price: NT$220,806 thousand.
Construction contract	Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying	December 12, 2017 - June 30, 2020	Total contract price: NT$313,600 thousand.

－108－

Nature of the Contract	Contracting Parties	Contract start/end date	Major Contents
Construction contract	Development project phase 1 of district C of the core area of Shalun Smart Green Energy Science City by Reiju Construction	April 19, 2018 - June 30, 2020	Total contract price: NT$ 261,804 thousand.
Construction contract	Manufacture and installation of overhead cranes sized 300t(150t+150t)x 43m for the Wind Power Department of Century Iron and Steel IndustrialCo.Ltd.	September 10,2018 - April 30, 2020	Contract price: NT$205,000 thousand.
Construction contract	E-Da Asia Empire Commercial Building Construction Project to Steel Structure Engineering of Hing ChuanconstructionCo.,Ltd.	July 3,2018 - December 31, 2020	Total contract price: NT$1,320,433 thousand.
Construction contract	Tainan New Urban District New Crystal Section Warehouse New Construction Project of Dung Wei ConstructionCo.,Ltd.	May 20, 2019 - December 31, 2020	Total contract value: NT$ 203,675 thousand.
Construction contract	The project of 14 cranes and electric tracks installation of CSBC Corporation, Taiwan.	August 19,2019 - September 30, 2020	Total contract value: NT$ 170,567 thousand.

－109－

Chapter 6 Financial Conditions

I. Condensed Balance Sheet and Consolidated Income Statement for the Most Recent Five Years

(I) Condensed balance sheet (consolidated)

Unit: NT$ thousands

Year Item	Year Item	Financial Information for The Most Recent Five Years	Financial Information for The Most Recent Five Years	Financial Information for The Most Recent Five Years	Financial Information for The Most Recent Five Years	Financial Information for The Most Recent Five Years	Financial Information as of March 31, 2020 (Consolidated)
		2015	2016	2017	2018	2019
Current assets		21,294,005	24,414,242	27,335,270	25,004,843	20,910,987	20,813,076
Property, plant, and equipment		36,094,705	37,867,059	39,326,842	41,118,529	43,146,104	43,773,039
Intangibleassets		2,702	9,533	8,880	452,363	432,499	376,958
Other assets		18,968,584	19,745,656	20,557,356	20,485,858	19,263,272	18,807,228
Total assets		76,359,996	82,036,490	87,228,348	87,061,593	83,752,862	83,770,301
Current liabilities	Before distribution	17,614,075	23,911,787	27,092,385	26,727,244	27,611,293	25,423,856
	After distribution	-	-	-	-	-	-
Non-current liabilities		29,742,076	27,880,724	30,500,102	30,692,717	28,691,649	31,648,807
Total liabilities	Before distribution	47,356,151	51,792,511	57,592,487	57,419,961	56,302,942	57,072,663
	After distribution	-	-	-	-	-	-
Equity attributable to shareholders of the parent company		25,884,541	27,537,651	27,841,691	27,787,869	25,850,231	25,218,634
Share capital		17,180,905	17,180,905	18,211,760	18,758,113	19,133,275	19,133,275
Capitalsurplus		4,673,787	4,737,131	4,873,770	4,883,218	4,884,281	4,886,203
Retained Earnings	Before distribution	3,384,660	5,786,966	5,392,816	4,705,770	2,810,846	2,495,716
	After distribution	-	-	-	-	-	-
Otherequity		645,189	-167,351	-636,655	-559,232	-978,171	-1,173,165
Treasury stock		-	-	-	-	-	-123,395
Non-controlling interests		3,119,304	2,706,328	1,794,170	1,853,763	1,599,689	1,479,004
Total Equity	Before distribution	29,003,845	30,243,979	29,635,861	29,641,632	27,449,920	26,697,638
	After distribution	-	-	-	-	-	-

Source: The above consolidated financial statements of the first quarter of 2020 have been audited by the CPA

－110－

Condensed balance sheet (Parent company only)

Unit: NT$ thousands

		Unit: NT$thousands	Unit: NT$thousands	Unit: NT$thousands	Unit: NT$thousands	Unit: NT$thousands
Year Item		Financial Informationof theMost Recent FiveYears
		2015	2016	2017	2018	2019
Current assets		6,291,122	8,199,957	9,254,088	7,510,760	6,798,509
Property, plant, and equipment		8,939,016	8,559,554	8,106,718	7,656,732	7,386,910
Intangibleassets		-	-	-	-	-
Otherassets		30,096,771	31,473,561	33,581,429	35,499,170	33,493,056
Total assets		45,326,909	48,233,072	50,942,235	50,666,662	47,678,475
Current liabilities	Before distribution	10,676,939	11,076,491	12,540,901	12,031,176	12,793,730
	Afterdistribution	-	-	-	-	-
Non-current liabilities		8,765,429	9,618,930	10,559,643	10,847,617	9,034,514
Total liabilities	Before distribution	19,442,368	20,695,421	23,100,544	22,878,793	21,828,244
	Afterdistribution	-	-	-	-	-
Share capital		17,180,905	17,180,905	18,211,760	18,758,113	19,133,275
Capitalsurplus		4,673,787	4,737,131	4,873,770	4,883,218	4,884,281
Retained Earnings	Before distribution	3,384,660	5,786,966	5,392,816	4,705,770	2,810,846
	Afterdistribution	-	-	-	-	-
Otherequity		645,189	-167,351	-636,655	-559,232	-978,171
Treasury stock		-	-	-	-	-
Equity		25,884,541	27,537,651	27,841,691	27,787,869	25,850,231

－111－

(II) Statements of Comprehensive Income (Consolidated)

Unit: NT$ thousands

Year Item	Financial Information for theMost Recent FiveYears	Financial Information for theMost Recent FiveYears	Financial Information for theMost Recent FiveYears	Financial Information for theMost Recent FiveYears	Financial Information for theMost Recent FiveYears	Financial Information as of March 31, 2020 (Consolidated)
	2015	2016	2017	2018	2019
Operatingrevenue	49,784,834	52,847,410	71,158,662	73,856,189	59,687,597	12,653,193
GrossProfit	3,704,492	7,206,359	6,299,383	5,911,201	2,549,118	896,319
Operating income (loss)	861,677	3,844,037	2,211,374	1,458,510	(895,193)	29,306
Non-operating incomeand expenses	(2,458,392)	(471,965)	(406,009)	(1,102,964)	(1,090,273)	(474,455)
Income before tax	(1,596,715)	3,372,072	1,805,365	355,546	(1,985,466)	(445,149)
Net income (loss) from continuing operations	(1,614,837)	2,378,545	1,345,310	264,944	(1,700,285)	(402,674)
Loss from discontinued operations	-	-	-	-	-	-
Net income (loss)	(1,614,837)	2,378,545	1,345,310	264,944	(1,700,285)	(402,674)
Other comprehensive income (Net income after tax)	190,111	(904,716)	(504,626)	(21,012)	(329,270)	(217,743)
Total comprehensive income	(1,424,726)	1,473,829	840,684	243,932	(2,029,555)	(620,417)
Net Profit that Belongs to the Owner	(953,786)	2,502,005	1,367,405	308,506	(1,401,081)	(313,462)
of the Parent Company
Net income attributable to non-controlling interests	(661,051)	(123,460)	(22,095)	(43,562)	(299,204)	(89,212)
Total comprehensive income (loss) attributable to owners	(761,465)	1,612,620	878,961	293,049	(1,745,191)	(508,456)
of parent company
Total comprehensive income (loss) attributable to non-controlling interests	(663,261)	(138,791)	(38,277)	(49,117)	(284,364)	(111,961)
Earningsper share	-0.56	1.46	0.75	0.16	-0.73	-0.16

Source: The above consolidated financial statements of the first quarter of 2020 have been audited by the CPA

－112－

Consolidated income statement (Parent company only)

Unit: NT$ thousands

Consolidated income	statement (Parent company only) Unit: NT$thousands	statement (Parent company only) Unit: NT$thousands	statement (Parent company only) Unit: NT$thousands	statement (Parent company only) Unit: NT$thousands	statement (Parent company only) Unit: NT$thousands
Year Item	Financial Information for the Most Recent Five Years
	2015	2016	2017	2018	2019
Operatingrevenue	22,223,598	23,867,665	29,179,218	30,026,324	24,971,014
GrossProfit	1,869,039	3,857,918	3,789,635	2,438,766	665,857
Operatingincome (loss)	558,658	2,064,727	1,461,329	876,087	(572,255)
Non-operatingincomeand expenses	(1,623,316)	948,024	208,432	(587,176)	(1,168,073)
Income before tax	(1,064,658)	3,012,751	1,669,761	288,911	(1,740,328)
Net income (loss) from continuing operations	(953,786)	2,502,005	1,367,405	308,506	(1,401,081)
Lossfromdiscontinued operations	-	-	-	-	-
Net income (loss)	(953,786)	2,502,005	1,367,405	308,506	(1,401,081)
Other comprehensive income (Net income after tax)	192,321	(889,385)	(488,444)	(15,457)	(344,110)
Total comprehensive income	(761,465)	1,612,620	878,961	293,049	(1,745,191)
Earningsper share	-0.56	1.46	0.75	0.16	-0.73

(III) Names of CPAs for The Most Recent Five Years and Audit Opinions

Names of CPAs for The Most Recent Five Years and Their Audit Opinions

Year	Name of accounting firm	Name of CPA	Audit Opinion
2015	Crowe (TW) CPAs	Shu-Man Tsai, Jen-YaoHsieh	Modified unqualified opinion
2016	Crowe (TW) CPAs	Ling-Wen Huang, Jen-YaoHsieh	Unqualified opinion
2017	Crowe (TW) CPAs	Ling-Wen Huang, Jen-YaoHsieh	Unqualified opinion
2018	Crowe (TW) CPAs	Ling-Wen Huang, Jen-YaoHsieh	Unqualified opinion
2019	Crowe (TW) CPAs	Ling-Wen Huang, Shu-Man Tsai	Unqualified opinion

Change of CPA in the last five years if any: In response to the need of internal organization adjustments by Crowe (TW) CPAs, the Company has since 2019 Q2 financial statements attestation, changed the CPAs from Ling-Wen Huang and Jen-Yao Hsieh to CPAs Ling-Wen Huang and Shu-Man Tsai.

－113－

II. Financial Analysis for the Most Recent Five Years

Consolidated financial analysis

Year (Note 1) Item analyzed (note 3)	Year (Note 1) Item analyzed (note 3)	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial information as of March31,2020
		2015	2016	2017	2018	2019
Financial structure (%)	Liabilities to assets ratio	62.02	63.13	66.02	65.95	67.23	68.13
	Long-term capital to property, plant,and equipment ratio	162.75	153.50	152.91	146.73	130.12	133.29
Liquidity Analysis	Current ratio	120.89	102.10	100.90	93.56	75.73	81.86
	Quick ratio	77.76	58.52	52.82	47.75	40.66	40.92
	Interestprotection multiples	-0.88	5.27	2.61	1.28	-0.51	-0.45
Operating Performance Analysis	Receivables turnover(times)	15.81	16.05	16.77	15.60	14.69	15.23
	Average collection period (days)	23.09	22.74	21.77	23.40	24.84	23.96
	Inventoryturnover ratio(times)	6.95	6.50	7.11	6.68	6.31	5.85
	Accounts payables turnover ratio(times)	18.53	18.27	20.86	25.48	26.03	22.61
	Days' sales in inventory	52.52	56.15	51.34	54.64	57.84	62.44
	Property, plant, and equipment (PP&E)turnover ratio(times)	1.43	1.43	1.84	1.84	1.42	1.16
	Total asset turnover ratio (times)	0.67	0.67	0.84	0.85	0.72	0.6
Profitability Analysis	Return on assets(%)	-1.23	3.83	2.69	1.46	-0.76	-0.19
	Return on equity (%)	-5.54	8.03	4.49	0.89	-5.96	-1.49
	Pre-tax income to paid-in capital ratio(%) (Note 7)	-9.29	19.63	9.91	1.90	-10.38	-2.33
	Netprofit margin(%)	-3.24	4.50	1.89	0.36	-2.85	-0.8
	Earningsper share(NT$)	-0.56	1.46	0.75	0.16	-0.73	-0.16
Cash flow	Cash flow ratio(%)	20.14	14.11	0	8.74	10.22	0
	Cash flowadequacyratio (%)	50.31	44.44	32.72	36.83	43.90	35.98
	Cash re-investment ratio (%)	4.36	4.14	0	2.33	2.99	0
Leverage	Degree of operatingleverage	57.78	13.75	32.18	50.64	-66.68	30.58
	Degree of financial leverage	80.10	1.26	2.03	7.51	0.40	-0.11
Please state the causes of changes in each financial ratio for the preceding two fiscal years. (except when the change is less than 20% ). 1. Decline in interest coverage ratio: The decline in interest coverage ratio is due to a decline in the Income before tax. 2. Decrease in property, plant, and equipment (PP&E) turnover ratio: A result from decrease in sales revenue. 3. Decrease in return on assets: Mainly due to decrease in net income. 4. Decrease in return on equity: Mainly due to decrease in net income 5. Decrease in ratio of pre-tax income to paid-in capital: Mainly due to decrease in current net profit before tax compared to the same period last year. 6. Decrease in profit margin: Mainly due to decrease in net income. 7. Decrease in earnings per share: Mainly due to decrease in net income. 8. Increase in Cash re-investment ratio: Mainly due to increase in net operating cash flow compared to the prior period. 9. Operating leverage: Mainly due to the decrease in net operating profit compared to the prior period. 10. Financial leverage: Mainlydue to the decline in net operating profit.

Companies having produced a parent company only financial report shall produce an analysis report on parent company only financial ratios.
If the financial information under International Financial Reporting Standards (IFRS) is less than 5 years, the financial information under ROC GAAP should be prepared in Schedule (2) below.
Note 1: Fiscal years for which reports were not CPA audited or attested shall be stated.
Note 2: Until the date of publication of the annual report, a company whose stock is listed on the stock exchange or traded over the counter shall disclose the most recent financial statement audited or attested by CPA, if any.

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Note 3: The following calculation formulas shall be listed at the end of this table in the annual report: 1. Financial Structure
- (1) Liabilities to assets ratio = total liabilities / total assets.
- (2) Long-term capital to property, plant and equipment ratio = (total equity + non-current liabilities)/net property, plant and equipment assets
Liquidity Analysis
- (1) Current ratio = current assets/current liabilities.
- (2) Quick ratio = (current assets – inventory – prepaid expense) / current liabilities.
- (3) Interest protection multiples = net income before income tax and interest expense / current interest expense.
Operating Performance Analysis
- (1) Receivables (including accounts receivable and notes receivable arising from business operations) turnover rate = net sales / average receivables (including accounts receivable and notes receivable arising from business operations) for each period
- (2) Average collection period = 365 / receivables turnover.
- (3) Inventory turnover ratio = cost of goods sold / average inventory amount.
- (4) Payable (including accounts payable and business-related notes payable) turnover ratio = cost of goods sold / average payable balance of the period (including accounts payable and business-related notes payable).
- (5) Days' sales in inventory = 365 / inventory turnover rate.
- (6) Property, plant, and equipment (PP&E) turnover ratio = net sales/average net PP&E
- (7) Total asset turnover ratio = net sales / average total assets.
Profitability Analysis
- (1) Return on assets = (net income + interest expense x (1– tax rate)) / average total assets.
- (2) Return on equity = net income after tax/ average total equity
- (3) Net profit margin = net income / net sales.
- (4) Earnings per share = (income or loss attributable to owners of parent company – dividends on preferred shares) / weighted average number of issued shares. (Note 4)
Cash flow
- (1) Cash flow ratio = net operating cash flow / current liabilities.
- (2) Net cash flow adequacy ratio = net operating cash flow in the most recent 5 years / (capital expenditures + inventory increase + cash dividend) in the most recent 5 years.
- (3) Cash re-investment ratio = (Net operating cash flow – cash dividend) / (gross property, plant and equipment + long-term investment + other non-current assets + working capital). (Note 5)
Leverage:
- (1) Degree of operating leverage = (Net operating revenue - variable operating change cost and expense) / Operating income (Note 6).
- (2) Degree of financial leverage = Operating income / (operating income - interest expenses).
Note 4: The following shall be noted when using the above formula for earnings per share:
It should be based on the weighted average number of shares of common stock rather than the number of issued shares at the end of the year.
When there is a cash capital increase or treasury stock transaction, the period of time in circulation shall be considered in calculating the weighted average number of shares.
In the case of capital increase out of earnings or capital surplus, the calculation of earnings per share for the past fiscal year and the fiscal half-year shall be retrospectively adjusted based on the capital increase ratio, without the need to consider the issuance period for the capital increase.
If the preferred shares are non-convertible cumulative preferred shares, the dividend of the current year (whether issued or not) shall be subtracted from net profit after tax, or added to net loss after tax. In the case of non-cumulative preferred shares, if there is net profit after tax, dividend on preferred shares shall be subtracted from net profit after tax; no adjustment is required in case of loss.
Note 5: Special attention should be paid to the following matters when carrying out cash flow analysis:
Net cash flow from operating activities refers to the net cash inflow from operating activities in the cash flow statement.
Capital expenditures refer to the cash outflows for annual capital investment.

－115－

The increase in inventory is counted only when the balance at the end of the period is greater than the balance at the beginning of the period. If the inventory decreases at the end of the year, it is counted as zero.
Cash dividend includes cash dividends from common stocks and preferred stocks.
Gross property, plant and equipment value refers to the total value of property, plant and equipment before subtracting accumulated depreciation.
Note 6: The issuer shall classify the operating costs and operating expenses as fixed or variable according to their nature. If it involves estimation or subjective judgment, attention should be paid to its reasonableness and consistency.
Note 7: Where company shares have no par value or where the par value per share is not NT$ 10, any calculations that involve paid-up capital ratio shall be replaced with the equity ratio attributable to the owners of the parent company as stated in the balance sheet.

－116－

Individual financial analysis

Year (Note 1) Item analyzed(Note 2)	Year (Note 1) Item analyzed(Note 2)	Year (Note 1) Item analyzed(Note 2)	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years	Financial Analysis of The Most Recent Five Years
			2015	2016	2017	2018	2019
Financial structure (%)	Liabilitiestoassetsratio		42.89	42.91	45.35	45.16	45.78
	Long-term capital to property, plant, and equipment ratio		387.63	434.09	473.70	504.59	472.25
Liquidity Analysis	Current ratio		58.92	74.03	73.79	62.43	53.14
	Quick ratio		36.44	38.51	38.28	28.66	25.87
	Interestprotection multiples		-2.34	9.47	5.21	1.65	-3.05
Operating Performance Analysis	Receivablesturnover(times)		11.96	16.59	19.25	18.55	16.71
	Average collectionperiod (days)		30.52	22.00	18.96	19.68	21.85
	Inventoryturnover ratio (times)		7.93	6.85	6.51	6.96	6.85
	Accountspayables turnover ratio(times)		17.22	16.25	20.25	22.05	17.43
	Days' sales in inventory		46.03	53.28	56.07	52.45	53.30
	Property, plant, and equipment (PP&E) turnover ratio(times)		2.50	2.73	3.50	3.81	3.32
	Total asset turnover ratio(times)		0.49	0.51	0.59	0.59	0.51
Profitability Analysis	Return on assets(%)		-1.53	5.98	3.42	1.30	-2.15
	Return on equity (%)		-3.61	9.37	4.94	1.11	-5.22
	Percentage to net Income Capital Ratio (%)	Operatingincome	-3.25	12.02	8.02	4.67	-2.99
		Pre-tax net profit	-6.20	17.54	9.17	1.54	-9.10
	Netprofit margin(%)		-4.29	10.48	4.69	1.03	-5.61
	Earningsper share(NT$)		-0.56	1.46	0.75	0.16	-0.73
Cash flow	Cash flow ratio(%)		25.07	18.09	4.28	16.99	3.29
	Cash flow adequacyratio(%)		195.97	138.01	117.14	128.60	159.22
	Cash re-investment ratio (%)		5.82	4.10	1.07	4.05	0.80
Leverage	Degree of operatingleverage		39.78	11.56	19.97	34.27	-43.64
	Degree of financial leverage		2.33	1.21	1.37	2.02	0.57
Please state the causes of changes in each financial ratio for the preceding two fiscal years. (except when the change is less than 20% ) 1. Decline in interest coverage ratio: The decline in interest coverage ratio is due to a decline in the Income before tax. 2. Decrease in accounts payable turnover rate: Due to the decrease in cost of goods sold, the account payable turnover rate decreased. 3. Decrease in return on assets: Mainly due to decrease in net income. 4. Decrease in return on equity: Mainly due to decrease in net income 5. Decrease in the ratio of operating profits to paid-in-capital Mainly due to decrease in operating profits. 6. Decrease in ratio of pre-tax income to paid-in capital: Mainly due to decrease in current net profit before tax compared to the same period last year. 7. Decrease in profit margin: Mainly due to decrease in net income. 8. Decrease in earnings per share: Mainly due to decrease in net income. 9. Decrease in Cash flow ratio: Mainly due to decrease in net operating cash flow 10. The increase in the cash flow adequacy ratio was mainly due to the increase in net cash flow from operating activities in the most recent 5 years compared to the prior period. 11. Decrease in Cash re-investment ratio: Mainly due to decrease in net operating cash flow 12. Operating leverage: Mainly due to the decrease in operating net profit compared to the prior period. 13. Financial leverage: Mainlydue to the decline in operatingnetprofit.

Please state the causes of changes in each financial ratio for the preceding two fiscal years. (except when the change is less than 20% )
Decline in interest coverage ratio: The decline in interest coverage ratio is due to a decline in the Income before tax.
Decrease in accounts payable turnover rate: Due to the decrease in cost of goods sold, the account payable turnover rate decreased.
Decrease in return on assets: Mainly due to decrease in net income.
Decrease in return on equity: Mainly due to decrease in net income
Decrease in the ratio of operating profits to paid-in-capital Mainly due to decrease in operating profits.
Decrease in ratio of pre-tax income to paid-in capital: Mainly due to decrease in current net profit before tax compared to the same period last year.
Decrease in profit margin: Mainly due to decrease in net income.
Decrease in earnings per share: Mainly due to decrease in net income.
Decrease in Cash flow ratio: Mainly due to decrease in net operating cash flow
The increase in the cash flow adequacy ratio was mainly due to the increase in net cash flow from operating activities in the most recent 5 years compared to the prior period.
Decrease in Cash re-investment ratio: Mainly due to decrease in net operating cash flow
Operating leverage: Mainly due to the decrease in operating net profit compared to the prior period.
Financial leverage: Mainly due to the decline in operating net profit.

Note 1: Fiscal years for which reports were not CPA audited or attested shall be stated.

Note 2: The following calculation formulas shall be listed at the end of this Table in the annual report:

Financial Structure
(1) Liabilities to assets ratio = total liabilities / total assets.
(2) Long-term capital to fixed assets ratio = (shareholders' equity + long-term liabilities)/net fixed assets.
Liquidity Analysis
(1) Current ratio = current assets/current liabilities.
(2) Quick ratio = (current assets – inventory – prepaid expense) / current liabilities.

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  - (3) Interest protection multiples = net income before income tax and interest expense / current interest expense.

Operating Performance Analysis
- (1) Receivables (including accounts receivable and notes receivable arising from business operations) turnover rate = net sales / average receivables (including accounts receivable and notes receivable arising from business operations) for each period
- (2) Average collection period = 365 / receivables turnover.
- (3) Inventory turnover ratio = cost of goods sold / average inventory amount.
- (4) Payable (including accounts payable and business-related notes payable) turnover ratio = cost of goods sold / average payable balance of the period (including accounts payable and business-related notes payable).
- (5) Days' sales in inventory = 365 / inventory turnover rate.
- (6) Fixed assets turnover ratio ＝ net sales / average total assets.
- (7) Total asset turnover ratio = net sales / average total assets.
Profitability Analysis
- (1) Return on assets = (net income + interest expense x (1– tax rate)) / average total assets.
- (2) Return on equity = profit and loss after tax / average shareholders' equity.
- (3) Net profit margin = net income / net sales.
- (4) Earnings per share = (net profit after tax – dividends on preferred shares) / weighted average number of issued shares. (Note 4)
Cash flow
- (1) Cash flow ratio = net operating cash flow / current liabilities.
- (2) Net cash flow adequacy ratio = net operating cash flow in the most recent 5 years / (capital expenditures + inventory increase + cash dividend) in last 5 years.
- (3) Cash re-investment ratio = (Net cash flow from operating activities – cash dividend) / (gross fixed assets value + long-term investment + other assets + working capital). (Note 5)
Leverage:
- (1) Degree of operating leverage = (Net operating revenue - variable operating change cost and expense) / Operating income (Note 6).
- (2) Degree of financial leverage = Operating income / (operating income - interest expenses).
Note 3: The following shall be noted when using the above formula for earnings per share:
It should be based on the weighted average number of shares of common stock rather than the number of issued shares at the end of the year.
When there is a cash capital increase or treasury stock transaction, the period of time in circulation shall be considered in calculating the weighted average number of shares.
In the case of capital increase out of earnings or capital surplus, the calculation of earnings per share for the past fiscal year and the fiscal half-year shall be retrospectively adjusted based on the capital increase ratio, without the need to consider the issuance period for the capital increase.
If the preferred shares are non-convertible cumulative preferred shares, the dividend of the current year (whether issued or not) shall be subtracted from net profit after tax, or added to net loss after tax. In the case of non-cumulative preferred shares, if there is net profit after tax, dividend on preferred shares shall be subtracted from net profit after tax; no adjustment is required in case of loss.
Note 4: Special attention should be paid to the following matters when carrying out cash flow analysis:
Net cash flow from operating activities refers to the net cash inflow from operating activities in the cash flow statement.
Capital expenditures refer to the cash outflows for annual capital investment.
The increase in inventory is counted only when the balance at the end of the period is greater than the balance at the beginning of the period. If the inventory decreases at the end of the year, it is counted as zero.
Cash dividend includes cash dividends from common stocks and preferred stocks.
Gross fixed assets refer to the total fixed assets before the deduction of accumulated depreciation.
Note 5: The issuer shall classify the operating costs and operating expenses as fixed or variable according to their nature. If it involves estimation or subjective judgment, attention should be paid to its reasonableness and consistency.

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III. The Audit Committee's Audit Report of the Most Recent Fiscal Year:

While preparing the Company's 2019 business report, consolidated financial statement (including individual financial statement), and loss make-up proposal, the Board of Directors commissioned Crowe (TW) CPAs to audit the financial statement, and issue an audit report. The aforementioned business report, financial statement, and loss make-up proposal have been audited by this Audit Committee, and the committee does not find any discrepancies, so this report is made according to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act. Kindly review accordingly.

Yieh Phui Enterprise Co., Ltd. 2020 Annual Shareholders' Meeting

Chairman of the Audit Committee: Te-Yuan Yang

March 17, 2020

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IV. The Most Recent Fiscal Year's Consolidated Financial Statements of the Parent Company and Subsidiaries Audited and Attested by the CPA:

Representation Letter

The entities that are required to be included in the combined financial statements of Yieh Phui Enterprise Co., Ltd. as of and for the year ended December 31, 2019, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Financial Statements of Affiliated Enterprises and Consolidated Business Reports are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standards No.10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Yieh Phui Enterprise Co., Ltd. and Subsidiaries do not prepare a separate set of combined financial statements.

Very truly yours,

Yieh Phui Enterprise Co., Ltd.

Yi Shou Lin Chairman

March 17, 2020

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==> picture [102 x 30] intentionally omitted <==

�� Crowe (TW) CPAs 80250 �� 6 � 27 �� 1 27F-1., No.6, Siwei 3rd Rd., Lingya Dist., Kaohsiung City 80250, Taiwan Tel +886 7 3312133 Fax +886 7 3331710 www.crowe.tw

Independent Auditors’ Report

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

Opinion

We have audited the consolidated financial statements of Yieh Phui Enterprise Co., Ltd. and its subsidiaries (the “Group"), which comprise the consolidated balance sheets as of December 31, 2019 and 2018, 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, based on our audits and the report of the other independent accountants, as described in the other matters section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the report of other independent accountants, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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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, 2019. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group's consolidated financial statements for the year ended December 31, 2019 are stated as follows:

Revenue recognition

Please refer to Note 4.23 to the consolidated financial statements for the accounting policy on revenue recognition; Note 5.1.(1) for major accounting estimates and assumptions of revenue recognition; and Note 6.31 for the details of revenue recognition.

Description of key audit matter

Due to fierce competition in the industry, the Group may be affected by the growth of its performance and competition in the same industry, which increases the risk of recognition of operating income. Therefore, we determined the revenue recognition for those product lines and customers with significant sales increase in 2019 as a key audit matter.

How the matter was addressed in our audit

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

Valuation of inventory

Please refer to Note 4.8 to the consolidated financial statements for the accounting policy on inventories; Note 5.2.(6) for major accounting estimates and assumptions of inventories; and Note 6.6 for inventory valuation.

Description of key audit matter

The Group's inventory amounted to $7,749,584 thousand (net of $8,169,123 thousand of total inventory less $419,539 thousand of allowance for inventory valuation loss) as of December 31, 2019, which accounted for 9.25% of total assets. The inventory valuation is measured at the lower of inventory cost and net realizable value. Given that the valuation of net realizable value of inventory has a significant impact on critical judgments and estimates and since inventory valuation is dependent on the influence of frequently volatile fluctuations of international metal price, we have thus included this item in the key audit matters.

How the matter was addressed in our audit:

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

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Other Matters

We did not audit the financial statements of certain associates accounted for using equity method. Those financial statements were audited by the other independent accountants, whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the consolidated financial statements was based solely on the reports of the other independent accountants. Investments in these associates amounted to $4,796,695 thousand and $4,779,519 thousand, representing 5.73% and 5.49% of total consolidated assets as of December 31, 2019 and 2018, and the share of profit of these associates accounted for using equity method amounted to $17,752 thousand and ($424,772) thousand, representing (0.89%) and (119.47%) of total consolidated income before income tax for the years then ended, respectively. In addition, the share of other comprehensive income of these associates accounted for using equity method amounted to ($578) thousand and $27,756 thousand, representing 0.18% and (132.10%) of total consolidated comprehensive income for the years then ended, respectively.

We have also audited the standalone financial statements of Yieh Phui Enterprise Co., Ltd. as of and for the years ended December 31, 2019 and 2018 on which we have issued an unmodified opinion with emphasis of matter.

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 the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable 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.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in Our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financia1 statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the 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 ethica1 requirements regarding independence, and to communicate with them all re1ationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2019 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

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be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Ling Wen Huang and Shu Man Tsai.

Crowe (TW) CPAs Kaohsiung, Taiwan Republic of China March 17, 2020

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 accepted and 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.

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December 31, 2018	Amount %		19 $16,001,636 19	1 837,598 1	- 7,437 -		1 1,410,498 2	1 1,156,449 1	1 1,245,748 1	2 1,557,229 2	- 153,410 -	- 111,092 -	- 62,423 -		- - -	- 69 -	8 4,183,655 5	33 $26,727,244 31		33 $29,894,253 34	- 17,547 -	- - -	- 32,854 -	1 733,314 1	- 14,749 -	34 $30,692,717 35	67 $57,419,961 66				23 $18,758,113 22	6 4,883,218 6		3 2,835,202 3	1 636,655 1	(1) 1,233,913 1	(1) (559,232) (1)	31 $27,787,869 32	2 1,853,763 2	33 $29,641,632 34	100 $87,061,593 100
December 31, 2019	Amount %		$15,597,746	931,272	-		972,787	799,965	1,188,827	1,651,603	3,486	90,806	7,630		7,813	72	6,359,286	$27,611,293		$28,009,760	2,533	81,469	29,577	550,777	17,533	$28,691,649	$56,302,942				$19,133,275	4,884,281		2,866,052	559,232	(614,438)	(978,171)	$25,850,231	1,599,689	$27,449,920	$83,752,862
	Note		6(19)	6(20)	6(2)		6(31)			6(21)		6(22)	6(8)		6(13)		6(23)			6(23)	6(36)	6(13)	6(24)	6(25)						6(26)		6(27)	6(28)				6(29)		6(30)
December 31, 2019 December 31, 2018	Note Amount % Amount % Liabilities and Equity	CURRENT LIABLITIES	6(1) $5,023,717 6 $5,522,926 6 Short-term loans	6(2) 428,279 1 285,944 - Short-term notes and bills payable	Financial liabilities at fair value through profit or loss	6(31) 822,605 1 532,786 1 - current	6(3) 845,312 1 1,650,972 2 Contract liabilities - current	6(4) 1,682,946 2 1,990,296 2 Notes payable	7 789,857 1 1,166,014 1 Accounts payable	6(5) 193,409 - 274,801 - Other payables	10,559 - 12,577 - Current tax liabilities	6(6) 7,749,584 9 10,347,451 14 Provisions - current	6(7) 1,935,447 2 1,893,869 2 Liabilties directly associated with noncurrent assets	6(8) 23,342 - 218,096 - held for sale	6(9) 1,405,930 2 1,109,111 1 Lease liabilities - current	$20,910,987 25 $25,004,843 29 Advance receipts	Current portion of long-term loans	6(2) $289,289 - $1,011,252 1 Total Current Liabilities	NONCURRENT LIABILITIES	6(10) 709,886 1 715,117 1 Long-term loans	Deferred tax liabilities	6(11) 14,661,318 18 15,492,641 18 Lease liabilities - noncurrent	6(12) 43,146,104 50 41,118,529 46 Long-term deferred revenue	6(13) 526,096 1 - - Net defined benefit liability - noncurrent	6(14) 622,562 1 776,270 1 Guarantee deposits	6(15) 432,499 1 452,363 1 Total Noncurrent Liabilities	6(36) 983,851 1 583,658 1 Total Liabilities	6(16) 11,590 - 7,534 - EQUITY ATTRIBUTABLE TO OWNERS OF THE	6(17) 925,853 1 1,350,617 2 PARENT	8 532,827 1 114,465 - Share capital	6(18) - - 434,304 - Common stock	$62,841,875 75 $62,056,750 71 Capital surplus	Retained earnings	Legal reserve	Special reserve	Unappropriated earnings	Other equity	Total equity attributable to owners of the parent	NON-CONTROLLING INTERESTS	Total Equity	$83,752,862 100 $87,061,593 100 TOTAL LIABILITIES AND EQUITY	The accompanying notes are an integral part of the consolidated financial statements.
	Assets	CURRENT ASSETS	Cash and cash equivalents	Financial assets at fair value through profit or loss -	current	Contract assets - current	Notes receivable, net	Accounts receivable, net	Accounts receivable - related parties, net	Other receivables	Current tax assets	Inventories	Prepayments	Noncurrent assests held for sale	Other financial assets - current	Total Current Assets	NONCURRENT ASSETS	Financial assets at fair value through profit or loss - noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Investments accounted for using equity method －126－					Property, plant and equipment	Right-of-use asset	Investment properties	Intangible assets	Deferred tax assets	Other noncurrent assets	Refundable deposits	Other financial assets - noncurrent	Long-term prepaid rent	Total Noncurrent Assets									TOTAL ASSETS

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

Year Ended December 31	Year Ended December 31	Year Ended December 31
2019		2018
Amount	%	Amount	%
$59,687,597 (57,138,479)	100 (95)	$73,856,189 (67,944,988)	100 (93)
$2,549,118 (2,380,383) (954,670) (91,803) (17,455)	5 (4) (2) - -	$5,911,201 (3,280,971) (1,068,227) (100,245) (3,248)	7 (5) (1) - -
($3,444,311)	(6)	($4,452,691)	(6)
($895,193)	(1)	$1,458,510	1
$660,856 632,134 (1,315,673) (1,067,,590)	1 1 (2) (2)	$1,254,320 (20,238) (1,264,244) (1,072,802)	2 - (2) (1)
($1,090,273)	(2)	($1,102,964)	(1)
($1,985,466) 285,181	(3) -	$355,546 (90,602)	- -
($1,700,285)	(3)	$264,944	-
84,399 (15,997) (19,582) (16,880) (317,854) (116,231) 72,875	- - - - (1) - -	(32,943) 5,241 30,031 3,043 (125,682) 74,598 24,700	- - - - - - -
($329,270)	(1)	($21,012)	-
($2,029,555)	(4)	$243,932	-
($1,401,081) (299,204)	(2) (1)	$308,506 (43,562)	- -
($1,700,285)	(3)	$264,944	-
($1,745,191) (284,364)	(4) -	$293,049 (49,117)	- -
($2,029,555)	(4)	$243,932	-
($0.73)		$0.16
($0.73)		$0.16

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

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			Total	Equity	$29,635,861	123,468	29,759,329		-	-	(364,235)	-	41,949	264,944	(21,012)			243,932	-		-	(39,343)	-		29,641,632		-	(187,581)	-	-	5,360	(1,700,285)	(329,270)		(2,029,555)	-		-	20,064	$27,449,920
Retained Earnings Other Equity Item	Exchange Unrealized Gain (Loss) Unrealized	Differences on On Financial Assetsat Gain (Loss) on Gain (Loss) on	Unappropriated Translating Foreign Fair Value Through Other Hedging Available-for-sale Shareholders of Non-controlling	Common Stock Capital Surplus Legal Reserve Special Reserve Earnings Operations Comprehensive Income Instruments Financial Assets the parent Interests	$18,211,760 $4,873,770 $2,698,462 $327,757 $2,366,597 ($697,778) $- $6,390 $54,733 $27,841,691 $1,794,170	- - - - 51,160 - 123,526 - (54,733) 119,953 3,515	18,211,760 4,873,770 2,698,462 327,757 2,417,757 (697,778) 123,526 6,390 - 27,961,644 1,797,685		- - 136,740 - (136,740) - - - - - -	- - - 308,898 (308,898) - - - - - -	- - - - (364,235) - - - - (364,235) -	546,353 - - - (546,353) - - - - - -	- 6,930 - - 34,815 - - - - 41,745 204	- - - - 308,506 - - - - 308,506 (43,562)	- - - - (24,807) (26,025) 35,086 289 - (15,457) (5,555)			- - - - 283,699 (26,025) 35,086 289 - 293,049 (49,117)	- 2,518 - - (100,928) - - - - (98,410) 98,410		- - - - (45,924) - - - - (45,924) 45,924	- - - - - - - - - - (39,343)	- - - - 720 - (720) - - - -		18,758,113 4,883,218 2,835,202 636,655 1,233,913 (723,803) 157,892 6,679 - 27,787,869 1,853,763		- - 30,850 - (30,850) - - - - - -	- - - - (187,581) - - - - (187,581) -	375,162 - - - (375,162) - - - - - -	- - - (77,423) 77,423 - - - - - -	- (73) - - 3,744 - - - - 3,671 1,689	- - - - (1,401,081) - - - - (1,401,081) (299,204)	- - - - 74,829 (366,243) (52,355) (341) - (344,110) 14,840		- - - - (1,326,252) (366,243) (52,355) (341) - (1,745,191) (284,364)	- 1,136 - - - - - - - 1,136 (1,136)		- - - - (9,673) - - - - (9,673) 9,673	- - - - - - - - - - 20,064	$19,133,275 $4,884,281 $2,866,052 $559,232 ($614,438) ($1,090,046) $105,537 $6,338 - $25,850,231 $1,599,689
					BALANCE AT JANUARY 1,2018	Effect of retrospective application	ADJUSTED BALANCE AT JANUARY 1,2018	Appropriations of prior year's earnings:	Legal reserve	Special reserve	Cash dividends to ordinary shareholders	Stock dividends to ordinary shareholders	Changes in equity of associates and joint ventures	Net income in 2018	Other comprehensive income (loss) in 2018,	net of income tax		Total comprehensive income (loss) in 2018	Difference between consideration and carrying	amount of subsidiaries acquired or disposed	Changes in ownership interests in subsidiaries	Adjustment of non-controlling interests	Disposal of equity in struments at fair value through	Other comprehensive income by associates	BALANCE AT DECEMBER 31, 2018	Appropriations of prior year's earnings:	Legal reserve	Cash dividends to ordinary shareholders	Stock dividends to ordinary shareholders	Reversal of special reserve	Changes in equity of associates and joint ventures	Net loss in 2019	Other comprehensive income (loss) in 2019,	Net of income tax	Total comprehensive income (loss) in 2019	Difference between consideration and carrying	amount of subsidiaries acquired or disposed	Changes in ownership interests in subsidiaries	Adjustment of non-controlling interests	BALANCE AT DECEMBER 31, 2019
																	－128－

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Item	Year Ended December 31	Year Ended December 31
	2019	2018
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjudtments to rewncile profit and loss : Depreciation Amortization Expected credit loss Net gain on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss of associates and joint ventures Loss on disposal and retirement of property, plant and equipment Transfer of property, plant and equipment to expenses Gain on investment properties Gain on disposal of noncurrent assets held for sale Gain on disposal of investments Impairment loss recognized on nonfinancial assets Others Total adjudtments to rewncile profit and loss Changes in operating assets and liabilities Net changes in oprating assets: Decrease (increase) in financial assets as at fair value through profit or loss Decrease (increase) in contract assets Decrease (increase) in notes receivable Decrease (increase) in accounts receivables Decrease (increase) in accounts receivables - related parties Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments	($1,985,466) 1,728,926 42,353 17,455 (2,958) 1,315,673 (124,964) (106,632) 1,067,590 26,700 16,394 (341,434) (401,121) (20) - (217)	$355,546 1,739,734 10,701 3,248 (41,609) 1,264,244 (105,056) (34,213) 1,072,802 30,138 23,825 - - (115,938) 42,889 (217)
	3,237,745	3,890,548
	23,615 (290,493) 805,737 289,776 377,419 130,600 2,597,867 (49,671)	(23,452) (129,575) (261,060) 489,021 (406,959) 58,527 (302,601) 1,149,647

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Item	Year Ended December 31	Year Ended December 31
	2019	2018
Decrease (increase) in other financial assets Total net changes in operating assets Net changes in oprating liabilities: Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payables Increase (decrease) in provisions Increase (decrease) in advance receipts Increase (decrease) in net defined benefit liability Total net changes in operating liabilities Total net changes in operating assets and liabilities Total adjustments Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities 2.CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Acquisition of subsidiaries (deducting cash received) Proceeds from capital reduction of investments accounted for using equity mothod Acquisition of noncurrent assests held for sale Proceeds from disposal of noncurrent assets held for sale Acquisition of property, plant and equipment	576	783
	3,885,426	574,331
	(437,711) (356,484) (56,921) (35,189) (20,286) 3 (98,138)	(524,662) (660,045) 131,317 (40,050) (3,013) (41) (240,074)
	(1,004,726)	(1,336,568)
	2,880,700	(762,237)
	6,118,445	3,128,311
	4,132,979 125,400 106,632 (1,325,093) (218,243)	3,483,857 102,796 82,213 (1,248,176) (84,094)
	2,821,675	2,336,596
	(15,000) 4,234 - 550,145 (372,387) 203 - 679 (1,652) 566,075 (4,251,566)	- 2,352 (605,179) - (95,105) 617,884 (30,375) 21,981 - 62,423 (4,245,853)

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Item	Year Ended December 31	Year Ended December 31
	2019	2018
Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease (increase) in other receivables Acquisition of intangible assets Acquisition of right-of-use assets Acquisition of investment properties Proceeds from disposal of investment properties Decrease (increase) in other financial assets Decrease (increase) in other noncurrent assets Net cash used in investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term loans Increase (decrease) in short-term notes and bills payable Increase in long-term loans Repayment of long-term loans Increase (decrease) in guarantee deposits received Repayments of principal of lease liabilities Increase (decrease) in other noncurrent liabilities Cash dividends paid Increase (decrease) in non-controlling interests Net cash generated from (used in) financing activities 4.EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 5.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6.CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 7.CASH AND CASH EQUIVALENTS, END OF YEAR	329 424,764 - (4,768) (1,187) (13,930) 434,619 (715,757) (4,056)	20,471 (1,277,718) 46,072 - - (8,229) - 75,532 4,213
	(3,399,255)	(5,411,531)
	(403,890) 94,000 8,669,625 (8,378,067) 2,784 (9,325) (3,277) (187,581) 20,064	176,113 (150,000) 7,711,366 (6,602,770) 110 - (2,815) (364,235) (75,770)
	(195,667)	691,999
	274,038	201,437
	(499,209) 5,522,926	(2,181,499) 7,704,425
	$5,023,717	$5,522,926

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

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YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

(Amounts In Thousands of New Taiwan Dollars, Unless specified Otherwise)

1. GENERAL INFORMATION

1.1 Yieh Phui Enterprise Co., Ltd. (hereinafter referred to as the Company) was established in April 1978, currently a listed company in Taiwan Stock Exchange (hereafter referred to as TWSE). The Company engages mainly in the processing, manufacturing marketing and import/export trading of rolled steel coils, refined steel, molded steel, steel/iron wires, galvanized/ pre-painted/surface-treated metals.
1.2 The Company’s Board of Directors resolved on May 23, 2005 to merge (simplified merger) with Lien Kang Heavy Industrial Co., Ltd, with the Company as the surviving company. The record date of the merger was set on August 30, 2005. Every 2.5 common shares of Lien Kang Heavy Industrial Co., Ltd. were converted into 1 common share of the Company. The Company issued additional 4,859 thousand common shares for this merger. Rights and obligations of holders of the newly issued shares were the same as those of the Company’s original shareholders.
1.3 Lien Kang Heavy Industrial Co., Ltd., incorporated on November 23, 1989, mainly engages in manufacturing, processing, and trading of the various mechanical spare parts, as well as pipe installation and engineering design/manufacture/installation.
1.4 The Company's steel pipe department, due to its business expansion, was separated from the Company, and was named as Shin Yang Steel Co. Ltd. Relevant investment on this was approved by the Board of Directors on January 18, 2011, and a total of 191 employees were transferred to Shin Yang Steel Co., Ltd.
1.5 For main operation activities of the Company and its subsidiaries (hereinafter referred to as “the Group”), please refer to Note 4.3(2)
1.6 These consolidated financial statements are presented in the Company’s functional currency, New Taiwan Dollars.

2. THE AUTHORIZATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on March 17, 2020.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

3.1 Effect of the adoption of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and new or amended International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”):

Except for the following, the application of the above amendments did not have a significant effect on the Group’s financial condition and financial performance.

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(1) IFRS 16 “Leases”

IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 and IFRIC 4, a number of related interpretations. Upon initial application of IFRS 16, the Group will apply the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 will not be reassessed and will be accounted for in accordance with the transitional provisions under IFRS 16. Please refer to Note 4 for related accounting policies.

The Group as lessee

Upon initial application of IFRS 16, except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Group will recognize right-of-use assets and lease liabilities for all leases on the consolidated balance sheets. On the consolidated statements of comprehensive income, the Group will present the depreciation expense charged on right-of-use assets separately from the interest expense accrued on lease liabilities and computed using the effective interest method. On the consolidated statements of cash flows, cash payments for the principal portion and the interest portion of lease liabilities are classified within financing activities and operating activities, respectively.

Prior to application of IFRS 16, payments under operating lease contracts are recognized as expenses on a straight-line basis. Cash flows for operating leases are classified within operating activities on the consolidated statements of cash flows. Finance lease contracts are classified within lease assets and obligation under capital leases, respectively.

The Company elects to apply IFRS 16 retrospectively with the cumulative effect of the initial application of this standard on January 1, 2019. Comparative information is not restated.

Lease liabilities were recognized on January 1, 2019 for leases previously classified as operating leases under IAS 17. Lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. Right-of-use assets are measured at their carrying amount as if IFRS 16 had been applied since the commencement date, but discounted using the aforementioned incremental borrowing rate. The Company applies IAS 36 to all right-of-use assets.

The Company also applies the following practical expedients:

(1) The Company applies a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities.
(2) The Company accounts for those leases for which the lease term ends on or before December 31, 2019 as short-term leases.
(3) The Company excludes initial direct costs from the measurement of right-of-use assets on January 1, 2019.
(4) The Company uses hindsight, such as in determining lease terms, to measure lease liabilities.

The Group’s incremental borrowing rate applied to lease liabilities recognized on January 1, 2019 was 1.9661%. The difference between the lease liabilities recognized and the future minimum lease payments of non-cancellable lease on December 31, 2018 is explained as follows:

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The future minimum lease payments of non-cancellable operating lease on December 31, 2018 Less: Recognition exemption for short-term leases Undiscounted gross amounts on January 1, 2019 Discounted using the incremental borrowing rate on January 1, 2019 Less: prepaid rent Lease liabilities recognized on January 1, 2019	$73,900 (8,750)
	$65,150
	$67,197 (8,093)
	$59,104

The Group as lessor

The Group does not make any adjustments for leases in which it is a lessor, and it accounts for those leases with the applicafion of IFRS 16 starting from January 1, 2019.

The impact on assets, liabilities and equity as of January 1, 2019 from the initial application of IFRS 16 is set out as follows:

Prepayments Long-term prepaid rent Right-of-use assets Total impact on assets Lease liabilities - current Lease liabilities - noncurrent Total impact on liabilities	Unadjusted Carrying Amount as of January 1, 2019 $1,893,869 434,304 - $2,328,173 $ - - $-	Adjustments Arising from Initial Application ($8,093) (434,304) 501,501 $59,104 $4,392 54,712 $59,104	Adjusted Carrying Amount as of January 1, 2019
			$1,885,776 - 501,501
			$2,387,277
			$4,392 54,712
			$59,104

3.2 Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group:

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

Year 2020 are as below:
New, Revised or Amended Standards and Interpretations Amendments to IFRS 3 “Definition of a Business” Amendments to IAS 1 and IAS 8 “Definition of Material” Amendments to IFRS 9, IAS 39 and IFRS 7“Interest Rate Benchmark Reform”	Effective Date Announced by IASB
	January 1, 2020 (Note 1) January 1, 2020 (Note 2) January 1, 2020 (Note 3)

Note 1: The Group shall apply these amendments to business combinations for which the acquisition date is on or after January 1, 2020.
Note 2: The Group shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020.
Note 3: The Group shall apply these amendments retrospectively for annual reporting periods beginning on or after January 1, 2020.

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The Group has no plans to acquire any business in 2020, therefore it is not expected to have any effect on the Group's financial statements when the amendment to IFRS 3 is first applied in 2020 and the amendments to IAS 1 and IAS 8 are assessed as having no effect on the Group's financial statements. The Group is not engaged in hedging transaction, so the amendments to IFRS 9, IAS 39 and IFRS 7 is assessed as having no effect on the Group’s financial statements. However, the estimated impact of the abovementioned amendments may be subject to change due to future operating environment or program changes.

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

The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC are as below:

Effective Date Announced New, Revised or Amended Standards and Interpretations by IASB (Note) Amendments to IFRS 10 and IAS 28 “Sale or Contribution To be determined by IASB of Assets between an Investor and its Associate or Joint Venture”

IFRS 17 “Insurance Contracts” January 1, 2021 Amendments to IAS 1“ Classification of Liabilities as January 1, 2022 Current or Non-current”

Note: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.

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.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

4.1 Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the IFRSs, IASs interpretations as well as related guidance endorsed by the FSC with the effective dates.

4.2 Basis of Preparation

(1) Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
A. Financial assets and financial liabilities at fair value through profit or loss (including derivative instruments).
B. Financial assets and liabilities measured at fair value through other comprehensive income.

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C. Liabilities on cash-settled share-based payment arrangements measured at fair value.
D. Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
(2) The preparation of the consolidated financial statements in conformity with the IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) The Group applied IFRS 16 electing not to prepare comparative consolidated financial report and notes of Year 2018 and recognized the differences in retained earnings or other equity at January 1, 2019.

4.3 Basis of Consolidation

(1) The basis for the consolidated financial statements:
A. All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
B. Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
C. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.
D. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. 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.
E. When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss or transferred directly to retained

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earnings as appropriate, on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

(2) The subsidiaries in the consolidated financial statements:

Investee / Subsidiary Main Businesses 1. Yieh Phui Enterprise Co., Ltd. (the Company) Good Honor Holdings Ltd. Investment Shin Yang Steel Co., Ltd. Steel products related businesses Yieh Phui (Hong Kong) Holdings Limited Investment Yieh Hsing Enterprise Co., Ltd. Wire rods trading Great Emperor Hotel Co., Ltd. Hotel industry Kings Garden International Co., Ltd. Leasing, sales, and development of residential and commercial buildings, department stores Shin Phui Steel Corporation Trading of steel products Worthing Honor Holdings Ltd. Investment Sin Bang Investment & Development Co., Ltd. Investment Gen-Wan Technology Corp Telecommunication Champion Logistic Inc. Investment EMMT Systems Corporation Manufacturing and marketing of military specification printed circuit boards Kuo Chang Enterprise Co., Ltd. Wholesale of hardware United Brightening Development Corp. Technical consultation for steel products Hong Yuh Assets Management Co., Ltd. Management service Lian So (H.K) Co., Limited Investment	Percentage of Ownership	Percentage of Ownership
	December 31, 2019 100.00% 100.00% 100.00% 56.98% 41.18% 49.28% 100.00% 100.00% 100.00% 86.99% 89.66% 78.10% 99.04% 95.56% 80.00% 80.00%	December 31, 2018
		100.00% 100.00% 100.00% 56.73% 35.98% 40.11% 100.00% 100.00% 100.00% 86.99% 96.10% 78.10% 99.04% 95.56% 80.00% 80.00%

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Investee / Subsidiary Main Businesses Yieh Phui America Inc. Steel trading 2. Hong Yuh Assets Management Co., Ltd. Lien-Hsin steel Co., Ltd. Metal manufacturing industry Lien-Sheng steel Co., Ltd. Metal manufacturing industry Lien-Heng Mining Co., Ltd. Nickle mining Lien-Hung Mining Co., Ltd. Nickle mining Asiamax Mining Indonesia Nickle mining 3. Gen-Wan Technology Corp. EMMT Systems Corporation Manufacturing and marketing of military specification printed circuit boards 4. Yieh Phui (Hong Kong) Holdings Limited Yieh Phui (China) Technomaterial Co., Ltd. Manufacturing and marketing of pickled, cold rolled, galvanized and prepainted steel coils 5. Yieh Phui (China) Technomaterial Co., Ltd. Tianjin Lianfa Precision Steel Corporation Manufacturing and marketing of special high grade alloy Changshou ChangHuei Trading Co. Trading of steel products 6. EMMT Systems Corporation Applied Wireless Identifications Group, Inc. RFID Groupco Technology Inc. Radio 7. Applied Wireless Identifications Group, Inc. AWID Asia Co., Ltd. Telecommunications equipment wholesale 8. AWID Asia Co., Ltd. AWID Sanghai Co., Ltd. Telecommunications equipment wholesaling AWID Changshou Co., Ltd. Telecommunications equipment wholesaling	Percentage of Ownership	Percentage of Ownership
	December 31, 2019 100.00% (Please refer to Note 4 47.88% 10.00% 75.00% 19.00% (Please refer to Note 4 100.00% (Please refer to Note 4 7.48% 100.00% 100.00% 100.00% 91.47% 49.97% 100.00% 100.00% 100.00%	December 31, 2018
		100% 3. (2) (A) for details) 52.48% 10.00% 75.00% 19.00% 3. (2) (A) for details) 100.00% 3. (2) (A) for details) 7.48% 100.00% 100.00% 100.00% 91.47% 49.97% 100.00% 100.00% 100.00%

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Investee / Subsidiary Main Businesses 9. Shin Phui Steel Corporation Groupco Technology Radio Great Emperor Hotel Co., Ltd. Hotel industry Kings Garden International Co., Ltd. Leasing, sales, and development of residential and commercial buildings, department stores 10. Yieh Hsing Enterprise Co., Ltd. Great Emperor Hotel Co., Ltd. Hotel industry Kings Garden International Co., Ltd. Leasing, sales, and development of residential and commercial buildings, department stores 11. Kings Garden International Co., Ltd. Yi Hua International Co., Ltd. Leasing, selling and development of residential and commercial buildings Hua Li International Co., Ltd. Daily necessities wholesale 12. United Brightening Development Corp. Chao Ying Investment Development Co., Ltd. Investment Champion Logistic Inc. Investment 13. Lian So (H.K)Co., Limited Lien-Hsin Steel Co., Ltd. Metal manufacturing industry Lien-Sheng Steel Co., Ltd. Metal manufacturing industry Lian Yang (Hong Kong) Trading Limited Trading business 14. Lien-Hsin Steel Co., Ltd. Lien-Heng Mining Co., Ltd. (Note) Nickle mining Lien-Hung Mining Co., Ltd. (Note) Nickle mining	Percentage of Ownership	Percentage of Ownership
	December 31, 2019 42.53% 0.01% 0.01% 58.81% 50.71% 70.00% 100% (Please refer to Note 4 100.00% 10.34% 52.12% 90.00% 100.00% (Please refer to Note 4 25.00% 81.00% (Please refer to Note 4	December 31, 2018
		42.53% 0.01% 0.01% 64.01% 59.88% 70.00% - 3. (2) (A) for details) 100.00% 3.90% 47.52% 90.00% 100.00% 3. (2) (A) for details) 25.00% (Note 2) 81.00% 3. (2) (A) for details)

－139－

(Note): Due to legal restriction within the local jurisdiction, 25% shareholding of LienHeng Mining Co., Ltd. and 51% shareholding of Lien-Hung Mining Co., Ltd. are registered temporarily under the name of a third-party; in order that the rights be secured, the third-party has pledged all shares under his/her name to the Group through a contract agreement.
- A. Increase and decrease in consolidated subsidiaries:
  - Hua Li International Co., Ltd. which was invested by Kingsgarden International Co., Ltd. with 100% shareholding, was incorporated in October 2019.
  - Yieh Phui America Inc., which was invested by Yieh Phui Enterprise Co., Ltd. with 100% shareholding, was incorporated in March 2018. Lian Yang (Hong Kong) Trading Limited, which was invested by Lian So (H.K) Co., Limited with 100% shareholding, was incorporated in June 2018. In May 2018, Hong Yuh Assets Management Co., Ltd. increased its investment and acquired 100% shares of Asiamax Mining Indonesia, and thus obtained control over such company. Lien-Hung Mining Co., Ltd., which was co-invested by Hong Yuh Assets Management Co., Ltd. and Lien-Hsin steel Co., Ltd. with respective shareholding of 19% and 81%. The Group acquired 49% shares of Lien-Hung Mining Co., Ltd. in cash in 2014, followed by a purchase of another 41% shares of which in September 2018. Since the total shares acquired have reached 90% and constituted a control, such company is included into the consolidated financial statements. In addition, the Group acquired additional 10% shares in December 2018, resulting in the changes in its shareholding to 100%. In addition, Tycoons Steel International Co., Ltd., Da Yao Engineering & Consulting Co., Ltd., Golden Developments Holdings Ltd., and Hsing Jui Investments Ltd. had been liquidated in March 2018, April 2018, July 2018, and August 2018, respectively.
- B. The financial statements of subsidiaries, Changshou ChangHuei Trading Co. and Good Honor Holdings Ltd. and Worthing honor Holdings Ltd. for 2019 and 2018, were not audited. The mangement considered unaudited financial statements of these subsidiaries will not have a significant impact on the consolidated financial statements.
(3) Subsidiaries not consolidated in the consolidated financial statements: None.
(4) Adjustments for subsidiaries with different accounting periods: Not applicable.
(5) Major restrictions:

Cash and bank deposits of $3,039,247 thousand are deposited in China and subject to the local foreign exchange control. Such foreign exchange control restricts fund remitting out from China (except for regular dividends).

(6) Securities issued by the parent company and held by subsidiaries: None.
(7) Information about subsidiaries with significant non-controlling interest: December 31, 2019�

December 31, 2019�
Name of Subsidiary Yieh Hsing Enterprise Co., Ltd. Others Total	Shareholding % 43.02%	Non-controlling interests
		$1,178,613 421,076
		$1,599,689

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December 31, 2018�

December 31, 2018�
Name of Subsidiary Yieh Hsing Enterprise Co., Ltd. Others Total	Shareholding % 43.27%	Non-controlling interests
		$1,443,867 409,896
		$1,853,763

A. Please refer to Table 10 and Table 11 in Note 13 for the main operation location and countries of registration of the subsidiaries listed above.
B. Summary of the financial information are as follows:
a. Balance Sheets:

a. Balance Sheets:
Current assets Non-current assets Current liabilities Non-current liabilities Equity	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries
	December 31, 2019 $3,279,346 20,282,292 3,043,549 14,148,958 $6,369,131	December 31, 2018
		$3,257,389 17,072,005 3,899,783 10,517,737
		$5,911,874

b. Statements of Comprehensive Income�

Operating revenue Net income Other comprehensive income (net after tax) Total comprehensive income (loss) Total comprehensive income (loss) attributable to non-controlling interests Dividends paid to non-controlling interest	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries
	2019 $6,552,804 ($652,969) 18,750 ($634,219) ($269,459) $ -	2018
		$8,741,762
		$10,865 (7,623)
		$3,242
		$1,552
		$ -

c. Statements of Cash Flows�

Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of the period

Cash and cash equivalents, end of the period

	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries
	2019 ($224,007) (3,410,684) 3,777,337 $142,646 315,729 $458,375	2018
		$153,589 (2,403,714) 2,282,344
		$32,219 283,510
		$315,729

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4.4 Foreign Currencies

(1) Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.
(2) In preparing the financial statements of each individual consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year 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 nonmonetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.
(3) For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations 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, if any, are recognized in other comprehensive income and accumulated in equity (attributed to noncontrolling interests as appropriate).

4.5 Classification of Current and Noncurrent Assets and Liabilities

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

Otherwise they are classified as non-current assets.

B. Liabilities that meet one of the following criteria are classified as current liabilities:
a. Liabilities that are expected to be settled within the normal operating cycle;
b. Assets held primarily for trading purposes;
c. Liabilities that are expected to be settled within 12 months after the balance sheet date;
d. Liabilities for which the repayment date cannot be extended unconditionally

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to more than 12 months after balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Otherwise they are classified as non-current liabilities

(2) Heavy Industry Department

The business cycle of the majority of the construction contracts is longer than12 months. As a result, assets and liabilities related to the construction contracts are classified as current or non-current assets and liabilities according to the business cycle.

4.6 Cash and cash equivalents

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

4.7 Financial instruments

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

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

(1) Financial assets

The Group adopts trade-date accounting to recognize and derecognize financial assets.

A. Category of financial assets and measurement

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

a. Financial asset at FVTPL

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified or it is designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets are designated initially at FVTPL, if the designation can eliminated or significantly reduces the measurement or recognition of inconsistencies.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss (excluding relevant dividend or interest income). Fair value is determined in the manner described in Note 12(3).

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b. Financial assets at amortized cost

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

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

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

(a) Purchased or originated credit-impaired financial assets: for those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
(b) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Group shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.
c. Investments in equity instruments at FVTOCI

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

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

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

B. Impairment of financial assets
a. At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.
b. The Group always recognizes lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, 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

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instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equaling to 12-month ECL.

c. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
d. The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.
C. Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

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

On derecognition of financial asset at amortized cost in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of equity instruments at fair value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

(2) Equity instruments

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

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

(3) Financial liabilities
A. Subsequent measurement

All financial liabilities are measured at amortised cost using the effective interest method.

B. Derecognition of financial liabilities

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between

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the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

4.8 Inventories

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

4.9 Noncurrent assests held for sale

When the carrying amount of non-current assets (or disposal categories) is mainly recovered through sales transactions rather than continued use, and it is highly likely to be sold, it is classified as an asset held for sale. Assets classified as noncurrent assets held for sale are measured at the lower of the carrying amount and fair value less costs to sell.

4.10 Investments accounted for using equity method - associates

(1) Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly, 20% or more of the voting power of the investee. Investments in associates are initially recognised at cost and are accounted for using the equity method.
(2) The Group’s share of its associate’s profit or loss after the date of acquisition is recognised in the Group’s profit or loss, and its share of changes in the associate’s other comprehensive income is recognised in the Group’s other comprehensive income. When the Group’s share of losses of its associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group discontinues recognizing its share of further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
(3) Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(4) In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be

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required if the relevant assets or liabilities were disposed of.

(5) Upon loss of significant influence over an associate, the Group remeasures any retained investment in the former associate at its fair value. Any difference between the fair value and carrying amount is recognised in profit or loss.
(6) When the Group disposes its investment in an associate, if it loses significant influence over the associate, the Group shall account for all amounts previously recognised in other comprehensive income in relation to that investment on the same basis as would have been required if the associate had directly disposed of the related assets or liabilities. If it still retains significant influence over the associate, then the Group shall reclassify to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related assets or liabilities.
(7) When the Group disposes its investment in an associate, if it loses significant influence over the associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it still retains significant influence over the associate, then the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

4.11 Property, Plant and Equipment

(1) Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
(2) Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repair and maintenance is recognized in profit or loss as incurred.
(3) Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each end of reporting year. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows:

Buildings:

Main plants 15 to 56 years Main office buildings 40 to 60 years Other accessory equipment 5 to 35 years Machinery and equipment 2 to 38 years Other equipment 2 to 32 years

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

4.12 Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognised as non-current liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

4.13 Leases

2019

The Group assesses whether the contract is (or includes) a lease at the date of the contract.

(1) The Group as lessee

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

Right-of-use asset

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

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

Lease liability

The lease liability is initially measured by the present value of the lease payment (including fixed payment, substantive fixed payment, change in lease payment depending on the index or rate, etc.). If the implied interest rate on the lease is easy to determine, the lease payment is discounted using that interest rate. If the interest rate is not easy to determine, the lessee's increase borrowing rate is used.

If the lease period, the evaluation of the purchase choice, the amount of expected to be paid under the residual value guarantee or the change in the index or rate used to determine the lease payment result in a change in the future lease payment, the Group will measure the lease liability and adjust the right to use assets relatively. If the carrying amount has been reduced to zero, the remaining amount

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will recognize in the profit and loss. Lease liabilities are presented in a single-line project on the consolidated balance sheet.

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

(2) The Group as lessor

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

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

2018

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

(1) The Group as lessor

Operating lease income is recognized as income on a straight-line basis over the lease term.

(2) The Group as lessee

Payment made under operating lease are recognized in profit or loss on a straightline basis over the lease term.

4.14 Investment properties

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

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

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

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

4.15 Intangible assets

Separately acquired intangible assets with finite useful lives 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 over the estimated lives as follows:

(1) Mineral right : 12 years
(2) Computer software: 2 to 5 years;
(3) Trademarks and patents: the period of contractual rights or the future economic benefits flowing to the Group.

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The estimated useful life and amortization method for an intangible asset are reviewed at each financial year-end. Any changes in estimates is accounted for on a prospective basis.

An intangible asset is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising from the disposal of the assets is determined as the difference between the disposal proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.16 Other non-current assets - exploration and evaluation assets

Exploration and evaluation assets are initially measured at cost and classified as either tangible assets or intangible assets according to the nature of the assets acquired, and such classification shall be consistently applied. Tangible assets (eg. vehicles and drilling rigs) are subsequently measured at cost less accumulated depreciation and accumulated impairment, whereas intangible assets (eg. rights to explore minerals) are subsequently measured at cost less accumulated impairment. An exploration and evaluation asset is no longer be classified as such when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Prior to reclassification of an exploration and evaluation asset, the entity shall assess the impairment of which and recognize an impairment loss accordingly.

4.17 Impairment of non-financial assets

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

4.18 Provisions

Provisions (including warranty, onerous contracts, short-term employee benefits, and liability derecognition) are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

4.19 Employee benefits

Short-term employee benefits

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

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Pensions

(1) Defined contribution plans

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

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

Employees’ compensation and directors’ and supervisors’ remuneration

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

Termination benefits

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

4.20 Share capital

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

4.21 Share-based payment transactions

(1) For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the

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number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. And ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

(2) For the cash-settled share-based payment arrangements, the employee services received and the liability incurred are measured at the fair value of the liability to pay for those services, and are recognised as compensation cost and liability over the vesting period. The fair value of the liability shall be remeasured at each balance sheet date until settled at the settlement date, with any changes in fair value recognised in profit or loss.

4.22 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
(2) The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
(3) Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
(4) Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.
(5) Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

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(6) A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

4.23 Revenue Recognition

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

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

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

(1) Sale of goods

Sales revenue from goods mainly comes from the sales of galvanized steel coils, painted steel coils, steel pipes and electronic materials. Sales revenue is recognized when the control of goods is passed to customers. Since customers have obtained the right to set the price and make use of the goods and assumed the responsibility for resale and risks of obsolescence, the Group recognizes revenue and accounts receivable at such time point, presented as the net amount after deducting sales returns, discounts and allowance. When supplying materials for processing, control of the processed goods is not transfered, in which case it is not recognized as revenue.

(2) Service revenue

Service revenue is recognized when the service is rendered. Revenue from service rendered in accordance with contracts is recognized in proportion to the completion of a contract.

(3) Revenue from construction contracts

A real estate contract is a construction contract under which the real estate units have been controlled by customers in the process of construction, in which case the Group recognizes revenue over time. Since construction costs are directly related to the stage of completion of performance obligations, the Group measures the stage of completion by the ratio of real costs incurred to date to total expected costs. The Groups recognizes contract assets over the construction period, and transfers them to accounts receivables upon billing the customers. Where the construction proceeds received exceed the recognized amount, the difference is recognized as contract liability. Construction retainage, which is the amount withheld by customers in accordance with the contractual terms in order to assure that the Group will satisfy its contractual obligation, is recognized as a contract asset before the Group completes its performance obligation. If the outcome of the performance obligations cannot be measured reliably, construction revenue is recognized only to the extent of the expenses incurred for

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satisfaction of performance obligations that are expected to be recovered.

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

4.24 Borrowing costs

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

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

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

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

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

5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

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

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

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

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

A. The Group has primary responsibilities for the goods or services it provides;
B. The Group bears inventory risk before transferring the specific goods or

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services to customer, or after transferring the control to customer (for example, if the customer has the right to return).

C. The Group has the discretion to set prices.

(2) Lease term (applied to 2019)

In determining the lease term, the Group considers all the facts and circumstances that generate an economic incentive to exercise (or not exercise) the option, including all expected change of facts and circumstances from the inception of commencement to the exercise of the option. The considerations include the contract clause and conditions of the period covered by the option, the significant leasehold improvements made (or expected) during the contract period, and the importance of the underlying assets to the Group's operations. The lease period is reassessed when significant events or major changes occur within the control of the Group.

5.2 Critical accounting estimates and assumptions

(1) Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Please refen to Note 6.4 for major assumption and input adapted. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

(2) Process of fair value measurement and evaluation

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

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

Please refer to Note 12(3) for fair value valuation technique and input values.

(3) Impairment assessment of tangible and intangible assets

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

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

The Group assesses the impairment of an investment accounted for using the equity method once there is any indication that it might have been impaired and its carrying amount cannot be recoverable. The Group assesses the recoverable amounts of an investment accounted for using the equity method based on the present value of the Group’s share of expected future cash flows of the investee or

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the present value of expected cash dividends receivable from the investee and expected future cash flows from disposal of the investment, analyzing the reasonableness of related assumptions.

(5) Realisability of deferred tax assets

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

(6) Evaluation of inventories

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

(7) Calculation of accrued pension obligations

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

(8) Tenant's increase in borrowing interest rate

At the time of the decision to increase the borrowing rate of the lessee used in the lease payment, the risk-free interest rate and the same currency is used as the reference rate, and the estimated lessee's credit risk sticker and lease specific adjustments (such as asset-specific and secured factors) are taken into account.

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

Item Cash on hand Checking account Demand deposits Time deposits (with original maturities within three months) Total	December 31 2019 2018 $6,394 $7,649 732,449 698,269 4,239,184 3,623,502 45,690 1,193,506 $5,023,717 $5,522,926
	2019 $6,394 732,449 4,239,184 45,690 $5,023,717

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

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6 . 2 Financial assets at fair value through profit or loss

Item Financial assets - current: Non-derivative Financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stock Held for trading Derivatives Cross currency swap contracts Total Financial assets - noncurrent: Non-derivative financial assets mandatorily measured at FVTPL Domestic unlisted preferred stock Financial bonds Total Financial liabilities - current: Derivatives Cross currency swap contracts	December 31	December 31
	2019 $43,769 376,755 7,755 $428,279 $279,285 10,004 $289,289 $-	2018
		$63,093 220,540 2,311
		$285,944
		$1,001,236 10,016
		$1,011,252
		$7,437

1.The Group had no financial assets at fair value through profit or loss pledged to others. 2.Please refer to Note 12(2) for credit risk management and evaluation method.
3.The Group enters cross currency swaps contracts with banks to hedge exchange rate risk of assets denominated in foreign currencies. However, as the Group does not plan on adopting hedge accounting, those contracts are accounted for as financial instruments at fair value through profit or loss upon initial recognition. Outstanding contracts are as follows:

December 31, 2019�

Currency Contract Period USD(SELL) January 9, 2019 to June 24, 2020 RMB(BUY) December 31, 2018� Currency Contract Period USD(SELL)July 5, 2018 to December 11, 2019 RMB(BUY) USD(BUY)November 21, 2018 to January 31, 2019 NTD(SELL)	Contract Amount (in thousands) 19,000 129,243 Contract Amount (in thousands) 18,000 122,759 11,000 339,900	Paid Interest Rate Range 6.35%-7.21% Paid Interest Rate Range 6.80%-7.05% 1.73%	Received Interest Rate Range
			LIBOR+4.15% Received Interest Rate Range
			LIBOR+4.15% 4.186%

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6.3 Notes receivable, net

Notes receivable, net
Item At amortized cost Notes receivable Less: Loss allowance Net	December 31 2019 2018 $845,328 $1,651,065 (16) (93) $845,312 $1,650,972
	2019 $845,328 (16) $845,312

1.As of December 31, 2019 and 2018, the Group pledged a portion of its notes receivable as collateral for its borrowings. Please refer to Note 8.
2.Please refer to Note 7.3.5. for accounts receivable with related parties
Please refer to Note 6.4 for the relevant disclosure of loss allowance for notes receivable.
4.The Group has transferred the endorsement of the bank acceptance bills of the Mainland to the suppliers to pay the accounts payable. As the risks and rewards of the notes have been transferred, the Group has derecognized the bank acceptance bills and the corresponding accounts payable. The suppliers still have the right to request the Group to settle the payment if the outstanding bank acceptance notes are not fulfilled at the end of the period. Therefore, the Group continues to participate in the notes. The Group's maximum loss of the continued involvement in the derecognized bank acceptance bills is the amount of bank acceptance bills that have been transferred but not yet matured. As of December 31, 2019 and 2018, the balances were RMB441,574 thousand, and RMB735,198 thousand, respectively. These notes will expire within 1~12 months after the balance sheet date. In consideration of the credit risk of the bank acceptance bills, the Group's assessment of the fair value of its continuing involvement is not significant. The Group did not recognise any gains and losses on the transfer of the bank's acceptance for the year ended December 31, 2019 and 2018.

6.4 Accounts receivable, net

Accounts receivable, net
Item At amortized cost Accounts receivable Less: Loss allowance Net	December 31 2019 2018 $1,706,965 $1,997,090 (24,019) (6,794) $1,682,946 $1,990,296
	2019 $1,706,965 (24,019) $1,682,946

A. The Group’s accounts receivables that are not overdue nor impaired all meet the credit standards stipulated based on the counterparties' industrial characteristics, operation scale, and profitability. The average credit period varies: 30~60 days for Carbon Steel Department, and interest-bearing deferred payment is allowed upon mutual agreement; 7~26 days for the sale of steel products; agreed days for the Engineering Department based on the contractual terms; and 60~90 days for other departments.
B. For the information about the Group’s accounts receivable pledged as collateral, please see Note 8 for details.

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C. The Group factored part of its accounts receivables to banks without recourse. The Group had already transferred substantially all risks and rewards upon factoring the accounts receivables, which were thereby derecognized from the balance sheet. Please refer to Note 12 (4) for related information.
D.The Group applies the simplified approach to provisions for expected credit losses prescribed by IFRS 9, which permits the use of a lifetime expected credit losses provision for trade receivables. The expected credit losses on trade receivables are estimated by reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend. which receivables are past due. As the Group’s historical credit losses experience does not show significantly different loss patterns for different customer segments, the provision for losses based on past due status of receivables is not further distinguished between the Group’s different customer base.

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

The Group measures the allowance for notes receivable, accounts receivable according and contract assets to the preparation matrix (including related parties)�

December 31, 2019 No past due 181 to 365 days Total December 31, 2018 No past due	Expected credit loss rate 0%-0.5% 100% Expected credit loss rate 0%-0.5%	Gross carrying amount $3,326,056 16,699 $3,342,755 Gross carrying amount $4,816,036	Allowance for doubtful accounts (ECL) ($7,941) (16,699) ($24,640) Allowance for doubtful accounts (ECL) ($8,754)	Amortized cost
				$3,318,115 -
				$3,318,115
				Amortized cost
				$4,807,282

Movements of the loss allowance for notes receivable and accounts receivable (including related parites) were as follows:

Year Ended December 31

Beginning balance Add: Provision for impairment Less: Write-offs Impact of foreign exchange differences Ending balance	2019 $8,754 16,782 (349) (547) $24,640	2018
		$7,033 1,533 - 188
		$8,754

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As of December 31, 2019 and 2018, the above provision has already taken into consideration collateral or other credit enhancement. The other credit enhancement (e.g., L/C) possessed by above receivables were $2,806,110 thousand, and $3,312,555 thousand, respectively.

Please refer to Note 12(2) for the relevant credit risk management and assessment.

6.5 Other receivables

Item Business tax refundable Proceeds receivable from disposal of land Insurance claims receivables Purchase allowance receivable Proceeds rereivable arising from sale of funds Interest receivable Others Total Less: Loss allowance Net	December 31	December 31
	2019 $112,629 48,560 - 2,875 6,181 6,305 16,859 $193,409 - $193,409	2018
		$129,450 - 78,048 37,719 5,097 6,741 17,746
		$274,801 -
		$274,801

This is the insurance claims receivable, are the insurance claims for estimated loss incurred from fire. Please refer to Note 10 for details.
Please refer to Note 7.3.5 for related party transactions.

6.6 Inventories and operating cost

Item Steel Department and other Non-heavy Industry Department: Raw materials Supplies Work in progress Finished goods Other inventories Subtotal Less: Valuation allowance Net	December 31	December 31
	2019 $3,426,910 409,573 1,086,084 2,738,642 268,945 $7,930,154 (418,538) $7,511,616	2018
		$4,793,692 397,632 1,342,464 3,530,684 273,933
		$10,338,405 (260,763)
		$10,077,642

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Heavy Industry Department� Raw materials Supplies Subtotal Less: Valuation allowance Net Total	$233,533 5,436 $238,969 (1,001) $237,968 $7,749,584	$265,081 4,901
		$269,982 (173)
		$269,809
		$10,347,451

1.Inventory gains (losses) recognized as cost of sales are as follows: Year Ended December 31 Item 2019 2018 Cost of inventories sold $54,882,897 $66,342,655 Construction cost 1,434,748 1,101,467 Processing cost 397,128 520,131 Unallocated manufacturing overhead 212,147 78,158 Inventory counting gain (loss) 1,149 (763) Purchase and construction contract loss (recovery gain) (8,701) 1,362 Inventory valuation loss and obsolescence loss (recovery gain) 158,603 (99,488) Impact of foreign exchange difference 60,508 1,466 Total operating cost $57,138,479 $67,944,988	1.Inventory gains (losses) recognized as cost of sales are as follows: Year Ended December 31 Item 2019 2018 Cost of inventories sold $54,882,897 $66,342,655 Construction cost 1,434,748 1,101,467 Processing cost 397,128 520,131 Unallocated manufacturing overhead 212,147 78,158 Inventory counting gain (loss) 1,149 (763) Purchase and construction contract loss (recovery gain) (8,701) 1,362 Inventory valuation loss and obsolescence loss (recovery gain) 158,603 (99,488) Impact of foreign exchange difference 60,508 1,466 Total operating cost $57,138,479 $67,944,988	1.Inventory gains (losses) recognized as cost of sales are as follows: Year Ended December 31 Item 2019 2018 Cost of inventories sold $54,882,897 $66,342,655 Construction cost 1,434,748 1,101,467 Processing cost 397,128 520,131 Unallocated manufacturing overhead 212,147 78,158 Inventory counting gain (loss) 1,149 (763) Purchase and construction contract loss (recovery gain) (8,701) 1,362 Inventory valuation loss and obsolescence loss (recovery gain) 158,603 (99,488) Impact of foreign exchange difference 60,508 1,466 Total operating cost $57,138,479 $67,944,988
	2019 $54,882,897 1,434,748 397,128 212,147 1,149 (8,701) 158,603 60,508 $57,138,479	2018 $66,342,655 1,101,467 520,131 78,158 (763) 1,362 (99,488) 1,466 $67,944,988

The Group recognized inventory valuation loss (recovery gain) of $158,603 thousand and ($99,488) thousand for the year ended December 31, 2019 and 2018, respectively, due to inventory's write-down to net realizable value, or the net realizable value of inventories recovered as a result of market stabilization that enabled the Group to raise prices on certain products.
3.The Group has no inventories pledged to others.

6.7 Prepayments

Prepayments
Item Prepaid material purchase Prepaid (overpaid) sales tax Prepaid insurance Prepaid sea freight Prepaid rent Prepaid land usage rights, etc. Other prepayments Total	December 31 2019 2018 $1,293,220 $1,339,728 505,202 398,839 65,515 63,230 21,694 48,187 2,763 3,908 - 6,543 47,053 33,434 $1,935,447 $1,893,869
	2019 $1,293,220 505,202 65,515 21,694 2,763 - 47,053 $1,935,447

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6.8 Noncurrent assests held for sale / Liabilties directly associated with noncurrent assets held for sale

Item Noncurrent assests held for sale Less�Accumulated impairment Net Liabilties directly associated with noncurrent assets held for sale	December 31	December 31
	2019 $23,342 - $23,342 $7,630	2018
		$218,096 -
		$218,096
		$62,423

1.As stated in Note 6.34 and Note 9.10, on November 8, 2018, the Group entered into a contract to sell Land No. 0001-0002, Pingbei Section, Jiadong Township, Pingtung County, Land No. 0001-0027, Pingnan Section, Fangliao Township, Pingtung County, and Building No. 25, Pingnan Section, Fangliao Township, Pingtung County. The total contract price is $625 million (tax included). In May 2019, the ownership transfer was completed in accordance with the scheduled payment terms as stipulated in the contracts. In addition, In November 2019, the Group entered into a contract to sell part of Land No.0026 in Pingbei Section, Jiadong Township, Pingtung County. The contract price is $76,344 thousand, and the disposal is expected to be completed within 12 months. As of December 31, 2019, $7,630 thousand have been collected.
Please refer to Note 8 for the information of noncurrent assests held for sale pledged as collateral.

6.9 Other financial assets - current

Other financial assets - current
Item Time deposits within three months Pledged demand deposits Pledged time deposits Total	December 31
	2019 $26,681 741,017 638,232 $1,405,930	2018
		$27,257 485,078 596,776
		$1,109,111

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

noncurrent
Item Equity instruments� Domestic listed stocks Domestic unlisted stocks Subtotal Valuation adjustment Total	December 31 2019 2018 $45,000 $45,000 560,182 549,415 $605,182 $594,415 104,704 120,702 $709,886 $715,117
		2018 $45,000 549,415 $594,415 120,702 $715,117

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The Group invests in domestic listed and unlisted stocks in accordance with its medium/long-term strategies and expects to make a profit through long-term investment. Management of the Group believes that it is not consistent with the afore-mentioned long-term investment planning if the short-term fair value changes of such investment are presented in profit or loss. Therefore, the Group elects to designate such investment as to be measured at FVTOCI.
For related credit risk management and means of assessing, please refer to Note 12(2).
As of December 31, 2018 and 2019, the Group had no financial assets at FVTOCI pledged as collateral.

6.11 Investments accounted for using equity method

Investee Associates: Associates with significance: Eliter International Corp. E-Da Development Corp. Tangeng Iron Works Co., Ltd. Yieh United Steel Corp. Associates without significance Total	December 31 2019 2018 $3,536,605 $3,602,035 1,448,243 1,279,418 4,094,392 4,074,315 3,763,677 4,730,650 1,818,401 1,806,223 $14,661,318 $15,492,641
	2019 $3,536,605 1,448,243 4,094,392 3,763,677 1,818,401 $14,661,318

1. Associates:

(1) Major associates of the Group are as follows:

CompanyName Eliter International Corp. E-Da Development Corp. Tangeng Iron Works Co., Ltd. Yieh United Steel Corp.	ShareholdingPercentage	ShareholdingPercentage
	December 31,2019 43.56% 34.38% 31.16% 30.31%	December 31,2018
		43.56% 34.38% 31.16% 29.88%

Please refer to Table 10 and Table 11 in Note 13 for the nature of business, main operation location and countries of registration of the associates listed above.

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

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A. Balance Sheets

Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Equity
Share in associates’ net assets
Unrealized loss from transactions
with associates
Carrying amount of associate

Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Equity
Share in associates’ net assets
Unrealized loss from transactions
with associates
Carrying amount of associate

Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Equity
Share in associates’ net assets
Unrealized gain (loss) from
transactions with associates
Carrying amount of associate

Eliter International Corp.
December 31,2019 December 31,2018
$6,971,622
$6,938,640
5,195,803
5,001,312
1,603,831
1,228,879
2,299,960
2,297,166
$8,263,634
$8,413,907
$3,599,334
$3,664,787
(62,729)
(62,752)
$3,536,605
$3,602,035
E-Da Development Corp.
December 31,2019 December 31,2018
$867,776
$599,659
8,123,713
8,427,286
1,021,390
2,350,696
3,735,304
2,931,887
$4,234,795
$3,744,362
$1,456,096
$1,287,465
(7,853)
(8,047)
$1,448,243
$1,279,418
TangengIron Works Co., Ltd.
December 31,2019 December 31,2018
$4,274,280
$4,679,858
23,749,927
23,551,048
3,638,556
4,594,916
11,244,913
10,559,687
$13,140,738
$13,076,303
$4,094,392
$4,074,315
-
-
$4,094,392
$4,074,315

December 31,2019
$4,274,280
23,749,927
3,638,556
11,244,913
$13,140,738
$4,094,392
-
$4,094,392

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Yieh United Steel Corp.

Yieh United Steel Corp.	Yieh United Steel Corp.	Yieh United Steel Corp.
December 31,2019 December 31,2018 Current assets $8,343,346 $9,676,986 Noncurrent assets 36,320,870 38,151,425 Current liabilities 23,899,830 20,586,663 Noncurrent liabilities 8,107,714 11,203,793 Equity $12,656,672 $16,037,955 Share in associates’ net assets $3,835,884 $4,791,775 Unrealized loss from transactions with associates (72,207) (61,125) Carrying amount of associate $3,763,677 $4,730,650 B.Statements of Comprehensive Income Eliter International Corp. 2019 2018 Operating revenue $229,538 $427,657 Net loss ($144,372) ($149,541) Other comprehensive income (loss) (net after tax) (5,901) 1,086 Total comprehensive loss ($150,273) ($148,455) Dividends received from associate $ - $ - E-Da Development Corp. 2019 2018 Operating revenue $795,002 $845,419 Net loss ($294,609) ($261,012) Other comprehensive income (loss) (net after tax) (14,958) 718 Total comprehensive loss ($309,567) ($260,294) Dividends received from associate $ - $ - TangengIron Works Co., Ltd. 2019 2018 Operating revenue $12,350,956 $14,879,535 Net income (loss) $14,953 ($1,441,675) Other comprehensive income (loss) (net after tax) 49,483 24,697 Total comprehensive income (loss) $64,436 ($1,416,978) Dividends received from associate $ - $ -
	2019 $12,350,956 $14,953 49,483 $64,436 $ -	2018 $14,879,535 ($1,441,675) 24,697 ($1,416,978) $ -

－165－

Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive loss Dividends received from associate	Yieh United Steel Corp.	Yieh United Steel Corp.
	2019 $35,843,299 ($3,046,907) (325,289) ($3,372,196) $ -	2018
		$42,713,976
		($1,517,499) 170,755
		($1,346,744)
		$ -

(3)Shares of individually insignificant associates of the Group are summarized as follows:

follows:
Share of: Net income Other comprehensive income (loss) (net after tax) Total comprehensive income (loss)	Year Ended December 31
	2019 $29,989 (42,032) ($12,043)	2018 $4,959 32,964 $37,923

(4)Associates of the Group with quoted prices in active market (Level 1 fair value inputs) are as follow:

inputs) are as follow:
Yieh United Steel Corp. (Note) Tangeng Iron Works Co., Ltd. Total	December 31
	2019 $3,506,463 4,678,374 $8,184,837	2018 $4,026,050 5,016,438 $9,042,488

(Note): The fair value information above does not include shares acquired in private placement, which are not allowed to be transferred freely in open markets.

(5)For Skylark Hot Spring & Resort Corp., E-Da Tour Bus Corporation, E-Da Bus Transportation Co., Ltd., and E-Da Entertainment Co., the Group has significant influence over which as a result of being a director in such entities. Consequently, those entities are accounted for using equity method.
(6)The Group participated in the private placement of Yieh United Steel Corp. in February 2017, and December 2015, and subscribed at $7 per share, with the total subscription amount of $204,876 thousand and $1,100,400 thousand, respectively. Pursuant to the Securities and Exchange Act, securities from private placement can only be traded freely in the open markets when they are held for three years from the delivery date and the issuer has to complete the supplementary procedures of public offering.
(7)Due to cross ownership and the adoption of equity method between the Group and Yieh United Steel Corp., an investee accounted for using equity method, investment

－166－

gain (loss) is recognized using the treasury stock approach.

(8)All investments accounted for using equity method and the Group’s share of profit or loss and other comprehensive income in the investees, except for E United Japan Co., Ltd., which is calculated based on its unaudited financial statements, are calculated based on audited financial statements of those investees. However, the Group’s management believes unaudited financial statements of above investees would not have a significant impact on the Group.
(9)As of December 31, 2019 and 2018, the Group pledged part of its investments accounted for using equity method as collateral for its borrowings. Please refer to Note 8.

6.12 Property, Plant and Equipment

Property, Plant and Equipment
Item Land Buildings and structures Machinery Other equipment Equipment to be inspected and construction in progress Total cost Less: Accumulated depreciation Accumulated impairment Total	December 31
	2019 $6,008,209 8,480,633 34,700,290 3,280,289 16,386,255 $68,855,676 (25,222,049) (487,523) $43,146,104	2018
		$6,007,639 8,648,387 35,150,954 3,319,698 12,628,421
		$65,755,099 (24,148,930) (487,640)
		$41,118,529

Land	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
$6,007,639 570 - - - -	$35,150,954 70,873 (111) (96,467) 61,741 (486,700)	$3,319,698 186,610 - (251,676) 77,976 (52,319)	$12,628,421 4,126,507 (16,283) - (156,568) (195,822)	$65,755,099 4,390,585 (16,394) (429,635) - (843,979)
$6,008,209	$34,700,290	$3,280,289	$16,386,255	$68,855,676
$ - - - -	$18,443,813 1,212,924 (75,009) (185,620)	$2,226,177 254,320 (247,993) (21,033)	$330,638 - - -	$24,636,570 1,712,157 (402,606) (236,549)
$ -	$19,396,108	$2,211,471	$330,638	$25,709,572

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Cost	Land	Buildings and structures	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
	$6,007,639 - - - - - - -	$8,602,615 6,267 - (4,370) 95,329 - 6,663 (58,117)	$35,232,848 129,414 (231) (805,245) 807,525 - 94,892 (308,249)	$3,218,544 289,048 (26,389) (295,799) 86,222 - 76,824 (28,752)	$10,181,218 3,740,786 (14,051) - (989,076) (193,573) 5,110 (101,993)	$63,242,864 4,165,515 (40,671) (1,105,414) - (193,573) 183,489 (497,111)
Balance, January 1, 2018 Additions Transferred to expenses Disposals Reclassification Transferred to long-term prepaid rent Acquired through business combination Impact of foreign exchange differences Balance, December 31, 2018 Accumulated depreciation and impairment
	$6,007,639	$8,648,387	$35,150,954	$3,319,698	$12,628,421	$65,755,099
	$ - - - - - - - -	$3,411,580 245,545 - (3,673) - (6,793) 3,918 (14,635)	$18,027,574 1,164,093 - (684,545) 20,124 (710) 49,993 (132,716)	$2,146,230 328,748 (17,032) (272,275) 22,765 - 38,914 (21,173)	$330,638 - - - - - - -	$23,916,022 1,738,386 (17,032) (960,493) 42,889 (7,503) 92,825 (168,524)
Balance, January 1, 2018 Depreciation Transferred to expenses Disposals Impairment loss Repair expenses offset against accumulated impairment Acquired through business combination Impact of foreign exchange differences Balance, December 31, 2018
	$ -	$3,635,942	$18,443,813	$2,226,177	$330,638	$24,636,570

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

Item Increase in property, plant and equipment Repair payment on wind disasters Increase/decrease in payables for purchase of equipment Cash paid for acquisition of property, plants and equipment	Year Ended December 31 2019 2018 $4,390,585 $4,165,515 - 7,503 (139,019) 72,835 $4,251,566 $4,245,853
	2019 $4,390,585 - (139,019) $4,251,566

2.Please refer to Note 6.35 for details of the amount of capitalized borrowing costs.

－168－

3.Since the recoverable amount of part of the Group’s production equipment is less than the carrying amount, the impairment loss recognized for 2019 and 2018 were $0 thousand and $42,889 thousand, stated under other gains and losses on the consolidated statements of comprehensive income. The recoverable amount of such production equipment was determined by the Group by using its fair value less cost of disposal. The fair value, which was determined by reference to status in use and relevant market activities, is Level 3 fair value measurement.
4.For the information about property, plant and equipment pledged as collateral, please see Note 8 for details.
5.The Group’s land amounting to both $78,568 thousand as of December 31 2019 and 2018 is unable to be registered under the name of the Group due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

6.13 Lease Agreement

A. Right-of-use asset - 2019

	Item	December 31,2019 $503,019 38,579 $541,778 (15,682) - $526,096 Land Building $ - $ - 500,691 810 2,595 37,949 (267) - $503,019 $38,759 $ - $ - 9,887 6,179 (231) (153) $9,656 $6,026	Total
			$ - 501,501 40,544 (267)
			$541,778
			$ - 16,066 (384)
			$15,682

B. Lease liabilities - 2019

. Lease liabilities - 2019
Item Carrying amount of lease liabilities - current - noncurrent	December 31, 2019
	$7,813
	$81,469

The discount rate interval for lease liabilities is 1.9661%-2.4%. Please refer to Note 12(2) for lease liabilities with repayment periods.

－169－

C. Significant lease activities and clause

The Group rented land and buildings for operation. The lease terms range from 2 to 32 years. Part of the lease may be extended with its duration and is calculated based on the area of the land leased and the rate based on the announced land value of the current year. In accordance with the contract, without the lessor’s consent, the Group is not allowed to sublet the leased object to the third party. There is no sign of impairment of right-of-use assets, hence the Group didn’t assess the impairment as of December 31, 2019.

D. Other lease information:

(1) The current lease relevant expense information was as follows:

Short-term lease expense Gross cash outflow (Note)	Year Ended December 31, 2019
	$20,910
	$30,235

(Note): Including principle paid for lease liability for the year ended December 31, 2019.

The Group adopted exemption for short-term leases and low-value asset recognition, and did not recognize relevant right-of-use asset and lease liability.

(2) The Group rented the land under non-cancellable operating lease agreement in 2018, with the lease term from Year 1996 to 2050. The Group recognized rental expenses of $21,920 thousand for the year ended December 31, 2018. The future aggregate minimum lease payments under non-cancellable operating leases are as follow:

follow:
Item Within 1 year 1 to 5 years More than 5 years Total	December 31,2018
	$12,936 13,192 47,772
	$73,900

6.14 Investment properties

Investment properties
Item Land Buildings Construction in progress Total cost Less: Accumulated depreciation Accumulated impairment Total	December 31
	2019 $605,403 46,281 40,554 $692,238 (1,667) (68,009) $622,562	2018
		$760,128 48,196 36,988
		$845,312 (1,033) (68,009)
		$776,270

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1. Investment properties and accumulated depreciation and impairment c hanges are as follows

follows
Cost	Land	Buildings	Construction in progress	Total
	$760,128 - (132,853) (21,872) -	$48,196 - - - (1,915)	$36,988 13,930 (8,894) (1,470) -	$845,312 13,930 (141,747) (23,342) (1,915)
Balance, January 1, 2019 Additions Transferred to expenses Transferred to noncurrent assests held for sale Impact of foreign exchange differences Balance, December 31, 2019 Accumulated depreciation and impairment
	$605,403	$46,281	$40,554	$692,238
	$68,009 - -	$1,033 703 (69)	- - -	$69,042 703 (69)
Balance, January 1, 2019 Depreciation Impact of foreign exchange differences Balance, December 31, 2019 Cost
	$68,009	$1,667	$ -	$69,676
	Land	Buildings	Construction in progress	Total
	$950,636 - - (190,508) -	$69,950 5,775 - (26,604) (925)	$45,789 2,454 (186) (11,069) -	$1,066,375 8,229 (186) (228,181) (925)
Balance, January 1, 2018 Additions Transferred to expenses Transferred to noncurrent assests held for sale Impact of foreign exchange differences Balance, December 31, 2018 Accumulated depreciation and impairment
	$760,128	$48,196	$36,988	$845,312
	$68,009 - - -	$9,790 1,348 (10,085) (20)	- - - -	$77,799 1,348 (10,085) (20)

Please refer to Note 6.8 for details on transferred to noncurrent assests held for sale.

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

Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period	Year Ended December 31	Year Ended December 31
	2019 $ - $ - $8,459	2018
		$ -
		$ -
		$12,046

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3.As of December 31, 2019 and 2018, the fair values of investment properties held by the Group were $1,599,330 thousand and $1,787,908 thousand, respectively, which were based on evaluation appraised by independent appraisers as of December 2019 and 2018. Such evaluation adopted the comparative approach by reference to the market evidence similar to the real estate transaction prices. Those are Level 3 fair value inputs. Please refer to Note 12(3). The Group believes that there would not be any material fluctuation in the fair value of such investment properties after their appraisal. Appraisal will be taken place every two years on the investment properties.
For the information about investment properties pledged as collateral, please see Note 8 for details.
The Group’s land amounting to both $8,987 thousand as of December 31 2019 and 2018 is unable to be registered under the name of the Group due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

6.15 Intangible assets

December 31	December 31
2019 $504,111 8,207 10,241 $522,559 (90,060) - $432,499 Trademarks Others $8,207 $6,133 - 4,768 - (434) - (226) $8,207 $10,241 $ - $6,072 - 58 - (434) - (226) $ - $5,470		2018
		$484,468 8,207 6,133
		$498,808 (46,445) -
		$452,363
Trademarks $8,207 - - - $8,207 $ - - - - $ -		Total $498,808 4,768 (434) 19,417 $522,559 $46,445 42,353 (434) 1,696 $90,060
	$6,133 4,768 (434) (226)
	$10,241
	$6,072 58 (434) (226)
	$5,470

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Cost Balance, January 1, 2018 Acquired through business combination Impact of foreign exchange differences Balance, December 31,2018 Accumulated amortization and impairment Balance, January 1, 2018 Depreciation Acquired through business combination Impact of foreign exchange differences Balance, December 31, 2018	Mineral right $ - 484,468 - $484,468 $ - 10,093 30,280 - $40,373	Trademarks $8,207 - - $8,207 $ - - - - $ -	Others	Total
			$6,267 - (134)	$14,474 484,468 (134)
			$6,133	$498,808
			$5,594 608 - (130)	$5,594 10,701 30,280 (130)
			$6,072	$46,445

6.16 Other non-current assets

Item Intangible exploration and evaluation assets Less: Accumulated impairment Net	December 31	December 31
	2019 $11,590 - $11,590	2018
		$7,534 -
		$7,534

The above-mentioned intangible exploration and evaluation assets are mainly the rights to explore nickel laterite ores, which will be reclassified as “Intangible assets - drilling rights to minerals” when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable in the future.

6.17 Refundable deposits

Item Deposit for dumping margins Performance deposits Rent deposits Others Total	December 31	December 31
	2019 $851,218 27,544 33,616 13,475 $925,853	2018
		$1,291,745 18,529 34,513 5,830
		$1,350,617

An antidumping investigation into the corrosion-resistant steel sold from Taiwan, conducted by the Department of Commerce of the U.S. in June 2015, had completed in July 2016, with an official announcement that all corrosion resistant products manufactured in or sold from Taiwan must temporarily bear a dumping margin duty. The custom was also instructed to impose a temporary dumping margin on all entries of merchandise sold by the Company to the U.S. that had been covered by the investigation. The antidumping duty is imposed by the U.S. using the retrospective system. The difference between the tax rate of the provisional tax rate paid and the final survey result is presented as “refundable deposit”.

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6.18 Long-term prepaid rent – Year 2018 Item Land usage right Other long-term prepaid rent Subtotal Less: Transfer within 12 months Total	December 31, 2018 $238,671 202,176 $440,847 (6,543) $434,304

The prepaid rents above are mainly from the 50-year land-use right contract entered by the Group in China. The amount was fully paid when contract was executed. For 2018, RMB 1,349 thousand were respectively recognized as rental expenses. The Group has the right to use the land, to acquire benefits and to transfer or lease the land and is responsible for all taxes and dues arising from the land-use during the contract duration.

6.19 Short-term Loans

Type of Loan Credit loans Credit for material purchase Mortgage loans Total Type of Loan Credit loans Credit for material purchase Mortgage loans Total	December	31, 2019
	Amount $6,797,255 8,150,491 650,000 $15,597,746 December	Interest Rate 1.33%-5.50% 1.54%-3.98% 2.09%-2.84% 31, 2018
	Amount $8,292,147 7,084,489 625,000 $16,001,636	Interest Rate 1.21%-6.13% 1.50%-4.45% 2.09%-3.00%

Some financial assets, and property, plant, and equipment are pledged as collateral for short-term loans. Please refer to Note 8 for details.

6.20 Short-term notes and bills payable

Short-term notes and bills payable
Item Commercial paper payable Less: Unamortized discount Net Interest Rate Range	December 31
	2019 $934,000 (2,728) $931,272 1.70%-2.78%	2018
		$840,000 (2,402)
		$837,598
		1.71%-2.78%

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The Group pledged some of its property, plant, and equipment as collateral for some of its short-term bills payable. Please refer to Note 8 for details.

6.21 Other Payables

Other Payables
Item Compensations payable Equipment payable Interest payable Utility expense payable Consumables payable Export and transportation expense payable Business tax payable Cash dividends payable - from previous period Repairing charges payable Others Total	December 31
	2019 $408,153 560,606 63,945 50,256 25,407 74,538 56,562 22,994 19,223 369,919 $1,651,603	2018
		$538,763 421,587 72,619 55,490 36,248 46,669 7,770 22,944 19,467 335,672
		$1,557,229

Please refer to Note 7.3.6. for related party transactions

6.22 Provisions - current

	December 31 2019 2018 $82,750 $81,585 3,013 2,290 1,006 9,707 4,037 3,577 - 13,933 $90,806 $111,092 Onerous contract Derecognized liabilities Others Total $9,707 $ 3,577 $13,933 $111,092 - 460 - 2,348 (8,701) - (13,933) (22,634) $1,006 $4,037 $ - $90,806	December 31 2019 2018 $82,750 $81,585 3,013 2,290 1,006 9,707 4,037 3,577 - 13,933 $90,806 $111,092 Onerous contract Derecognized liabilities Others Total $9,707 $ 3,577 $13,933 $111,092 - 460 - 2,348 (8,701) - (13,933) (22,634) $1,006 $4,037 $ - $90,806	December 31 2019 2018 $82,750 $81,585 3,013 2,290 1,006 9,707 4,037 3,577 - 13,933 $90,806 $111,092 Onerous contract Derecognized liabilities Others Total $9,707 $ 3,577 $13,933 $111,092 - 460 - 2,348 (8,701) - (13,933) (22,634) $1,006 $4,037 $ - $90,806	December 31 2019 2018 $82,750 $81,585 3,013 2,290 1,006 9,707 4,037 3,577 - 13,933 $90,806 $111,092 Onerous contract Derecognized liabilities Others Total $9,707 $ 3,577 $13,933 $111,092 - 460 - 2,348 (8,701) - (13,933) (22,634) $1,006 $4,037 $ - $90,806
	2019
Warranty $2,290 723 - $3,013		$82,750 3,013 1,006 4,037 -
		$90,806
		Derecognized liabilities $ 3,577 460 - $4,037	Others $13,933 - (13,933) $ -
				$111,092 2,348 (22,634)
				$90,806

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Item January 1, 2018 Effect of adjustments made by retrospective application of IFRS 15 Beginning balance Recognized in current period Write-off in current period December 31, 2018	Employee benefits $75,797 - $75,797 5,788 - $81,585	Warranty $5,723 - $5,723 - (3,433) $2,290	Onerous contract $ - 8,345 $8,345 - 1,362 $9,707	Derecognized liabilities $ - - $ - 3,577 - $3,577	Others $20,663 - $20,663 - (6,730) $13,933	Total
						$102,183 8,345
						$110,528 9,365 (8,801)
						$111,092

Provision for employee benefits is an estimate of the short-term service leave vested to employees.
The Group’s “provision for warranty” is the warranty for the sales of electronic products, and is estimated based upon the historical warranty data of such products.
Provision for onerous contracts covers the irrevocable material purchase contract signed by the Group, the excess of costs incurred due to the performance of contractual obligation over the economic benefits expected to be obtained from the contract, and the expected loss of construction contracts.

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

Item Bank syndicated loans: The Company Subsidiaries Subtotal Secured loans from banks Unsecured loans from banks Other financial institutions Total Less: Unamortized discount Less: Current portion Long-term loans Interest rate range	December 31	December 31
	2019 $8,275,000 23,923,488 $32,198,488 1,808,880 429,089 42,036 $34,478,493 (109,447) (6,359,286) $28,009,760 1.50%-5.65%	2018
		$8,500,000 22,363,373
		$30,863,373 2,738,020 568,750 16,792
		$34,186,935 (109,027) (4,183,655)
		$29,894,253
		1.82%-6.42%

Please refer to Note 8 for the collateral of the above bank loans.
According to syndicated loan agreements with banks, the Group needs to maintain several financial ratios, including current ratio, liability ratio and interest coverage ratio, at a certain level, calculated based on the audited annual consolidated financial statements and the reviewed semi-annual consolidated financial statements or the audited annual financial statements of subsidiaries for the duration of the contracts. Since the Group failed to meet certain financial ratios in 2019, it needed to pay to the

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managing bank a compensation at 0.125% of the loan balance within agreed time, or was subject to 0.10%~1.50% incremental on its interest rate. However, this is not seen as a breach of contract.

6.24 Long-term Deferred Revenue

The subsidiary, Tianjin Lianfa Precision Steel Corporation Beneficiary, had received a subsidy for engineering construction from the Tianjin Economic Technological Development Area of RMB 11,470 thousand in 2006. As it is a government grant associated with assets, donation income would be recognized based on percentage used for the recognition of depreciation expense. Details are set out below:

Item Deferred revenue from government grants: Subsidy for engineering construction Less: Accumulated revenue recognized Ending balance	December 31	December 31
	2019 $49,292 (19,715) $29,577	2018
		$51,332 (18,478)
		$32,854

6.25 Benefit Plan After Retirement

1.Defined contribution plan
(1) The pension system based on the Labor Pension Act which is applicable to the Group’s domestic entities resided in the R.O.C. is a defined contribution plan managed by government. Companies would make monthly contribution equal to 6% of each employee's monthly salary to the employees' individual pension accounts at the Bureau of Labor Insurance. Subsidiaries outside the R.O.C. also participate in the local defined contribution plan and makes contribution to the local government accordingly.
(2) The Group recognized pension expense of $120,468 thousand and $116,903 thousand for the year ended December 31, 2019 and 2018, respectively.
2.Defined benefit plans
(1) The pension plan under the Labor Standards Law, which is applicable to the Group’s domestic entities, is a defined benefit pension plan managed by the government. Under the defined benefit pension plan, pension benefits are based on the average monthly salaries and wages of the last 6 months prior to retirement and the duration of employment. Those companies contributes monthly an amount equal to 4.2% ~ 10% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee. Before the end of year, if the balance at the retirement fund is not sufficient to cover all employees retiring next year, a lump-sum deposit should be made before March-end of the following year to cover the difference. The retirement fund is managed by the Bureau of Labor Funds, Ministry of Labor. The Group does not have rights to influence its investment management strategy.

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(2) The amounts recognized in the consolidated balance sheet for obligation from defined benefit plans are as

defined benefit plans are as
Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability	December 31
	2019 $1,726,682 (1,175,905) $550,777	2018
		$1,787,468 (1,054,154)
		$733,314

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

Year Ended December 31,2019	Year Ended December 31,2019	Year Ended December 31,2019
Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability $1,787,468 ($1,054,154) $733,314 8,628 - 8,628 (395) - (395) 13,322 (8,184) 5,138 $21,555 ($8,184) $13,371 $ - ($36,898) ($36,898) 203 - 203 8,750 - 8,750 (56,454) - (56,454) ($47,501) ($36,898) ($84,399) - (110,378) (110,378) (34,840) 33,709 (1,131) $1,726,682 ($1,175,905) $550,777 Year Ended December 31, 2018		Net defined benefit liability
		$733,314 8,628 (395) 5,138
		$13,371
		($36,898) 203 8,750 (56,454)
		($84,399)
		(110,378) (1,131)
		$550,777
Present value of defined benefit obligations $1,766,808 10,430 17,490 $27,920	Fair value of planned assets ($826,363) - (8,982) ($8,982)	Net defined benefit liability
		$940,445 10,430 8,508
		$18,938

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Remeasurement
Return on plan asset	$ -	($23,324)	($23,324)
(Amounts included in interest
income or expense are excluded)
Actuarial (gains) losses -
Effect of change in demographic	(307)	-	(307)
assumptions
Effect of change in financial	44,113	-	44,113
assumptions
Experience adjustment	12,461	-	12,461
Recognized in other comprehensive income	$56,267	($23,324)	$32,943
Pension fund contribution	-	(252,164)	(252,164)
Paid pension	(63,527)	56,679	(6,848)
Balance as of December 31	$1,787,468	($1,054,154)	$733,314

(4) Through the pension plan under the Labor Standards Law, the Group is exposed to the following risks:

A. Investment risk

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

B.Interest rate risk

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

C.Salary risk

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

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

valuation date were as follows:
Item Discount rate Future salary increase rate Average maturity period of defined benefit obligations	Measurement date
	December 31,2019 0.70%-1.00% 2.00% 8.4-9 years	December 31,2018
		0.75%-1.05%
		2.00%
		8.5-9 years

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

follows:
Item Discount rate Increase by 0.25% Decrease by 0.25% Expected growth rate of salaries Increase by 0.25% Decrease by 0.25%	December 31 2019 2018 (39,338) (43,308) 40,708 44,892 41,446 45,589 (40,114) (44,065)
		2018
		(43,308)
		44,892
		45,589
		(44,065)

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

(6) The Group expects to make contributions of $75,122 thousand to the pension plans for the year ended December 31, 2020.

6.26 Common Stock

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

and ending of periods were as follows:
Item January 1 Capitalization of earnings December 31 Item January 1 Capitalization of earnings December 31	Year Ended December 31,2019 Shares (thousand shares) Amount 1,875,811 $18,758,113 37,516 375,162 1,913,327 $19,133,275 Year Ended December 31,2018 Shares (thousand shares) Amount 1,821,176 $18,211,760 54,635 546,353 1,875,811 $18,758,113
	Shares (thousand shares) 1,821,176 54,635 1,875,811

2.As of December 31, 2019, the Company had an authorized capital of $20,000,000 thousand with 2,000,000 thousand shares.
3.The Company's shareholders' meeting held on June 20, 2019 had resolved to capitalize earnings of $375,162 thousand. The plan was approved by FSC on July 12, 2019 and 37,516 thousand shares of common share at the par value of $10 were issued. The record date for share capital increase is set on Sebtember 2, 2019.

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6.27 Capital Surplus

Capital Surplus
Item Share premium Treasury stock transaction Difference between the price received from acquisition or disposal of a subsidiary and its book value Change in ownership interests in subsidiaries accounted for using equity method Changes in associates and joint ventures recognized under equity method Total	December 31
	2019 $4,060,366 557,739 216,200 8,665 41,311 $4,884,281	2018
		$4,060,366 557,739 215,064 8,665 41,384
		$4,883,218

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

6.28 Retained Earnings

1.A residual dividend distribution policy is adopted in accordance with the Company’s business expansion and profitability after considering the the fact that the Company is currently in its growing phase. The annual net income, if any, should be used to pay off all the taxes and duties, as well as to compensate prior deficits. The remaining amount, if any, should be appropriated in the following order of presentation:
(1) 10% as legal reserve;
(2) set aside or reverse a certain amount as or of special reserve according to operating needs or laws or regulations;
(3) the remaining net income plus unappropriated earnings from prior years may be used as dividends or bonus for shareholders after proposed by the Board of Directors and resolved by the shareholders meeting.

In principle, earnings shall be distributed in the form of stock dividends in accordance with the Company’s capital requirement for business expansion and profitability. Cash dividends are distributed at between 20% to 100% of total dividends distributed in accordance with the actual profitability while stock dividends are distributed at between 0% to 80% of the total dividends distributed.

2.Legal reserves may only be used for offsetting deficits and issuing new shares or distributing cash in proportion to shareholders’ original holdings. However, when new shares are issued or cash is distributed, the amount shall be limited to 25% of the reserves in excess of the paid-in capital.

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3.Special reserve

Special reserve
Item Provision for debit balance of other equity Provision upon initial application of IAS Total	December 31
	2019	2018
	$231,475 327,757	$308,898 327,757
	$559,232	$636,655

(1) The Company may allocate earnings only after providing special reserve for debt balance in other equity on the date of balance sheet, and the reversal of debit balance in other equity, if any, may be stated into allocable earnings.
(2) Upon first-time adoption of IFRSs, the special reserve provided pursuant to the official letter under Jin-Guan-Jheng-Fa-Zih No. 1010012865 dated April 6, 2012 may be reversed to allocable retained earnings in proportion to the special reserve as provided originally, if the Company uses, disposes of or reclassifies the relevant assets in the future.
4.Earnings distribution proposals and dividends per share for 2018 and 2017, which were resolved by the Shareholders Meeting in June 2019 and June 2018, are stated below

below
Legal reserve Appropriation for (reversal of) special reserve Cash dividends for common stock Stock dividends for common stock Total	Earnings appropriation proposal 2018 2017 $30,850 $136,740 (77,423) 308,898 187,581 364,235 375,162 546,353 $516,170 $1,356,226	Dividends per share (NTD)
	2018 $30,850 (77,423) 187,581 375,162 $516,170	2018 0.1 0.2	2017
			0.2 0.3

5.The Company's appropriations of earnings for 2019 had been approved in the meeting of the board of directors held on March 17, 2020. No dividends will be distributed to the shareholders due to accumulated deficit as of December 31, 2019. The appropriations of earnings for 2019 are to be presented for approval in the Company's annual shareholders' meeting to be held in June 2020.
6.Information about earnings distribution approved by the Board of Directors and resolved by the shareholders meeting is available at the Taiwan Stock Exchange Market Observation Post System website.

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6.29 Other Equity Items

6.29 Other Equity Items
Item	Exchange differences on translation of foreign financial statements		Unrealized gain (loss) on financial asset at fair ralue through other comprehensive income		Gain (loss) on hedging instruments
	($723,803) (254,956) - (111,287)			$157,892 - (16,198) (36,157)		$6,679 - - (341)
	($1,090,046)			$105,537		$6,338
		Unrealized valuation gain (loss) on available -for-sale financial assets		Unrealized gain (loss) on financial asset at fair ralue through other comprehensive income		Gain (loss) on hedging instruments
		$54,733 (54,733)		$ - 123,526		$6,390 -	($636,655) 68,793
		$ - - - - -		$123,526 - 5,181 29,905 (720)		$6,390 - - 289 -	($567,862) (62,628) 5,181 66,797 (720)
		$ -		$157,892		$6,679	($559,232)

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6.30 Non-controlling Interest

Item Beginning balance (IAS 39) Effect of adjustments made by retrospective application of IFRS 9 Beginning balance (IFRS 9) Share attributable to non-controlling interest: Net loss for the current year Other comprehensive income of the year Remeasurement of defined benefit plans Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial asset at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial asset at fair ralue through other comprehensive income Remeasurement of defined benefit plans Gain (loss) on hedging instruments Changes in associates and joint ventures recognized under equity method Increase in non-controlling interest - acquisition from mergers Increase in non-controlling interest - capital increase by cash Decrease in non-controlling interest - sale Decrease in non-controlling interest - liquidating distribution Increase (decrease) in non-controlling interest Ending balance	Year Ended December 31	Year Ended December 31
	2019 $1,853,763 - $1,853,763 (299,204) 9,588 6,786 201 (1,406) (543) 220 (6) 1,689 - 26,098 (6,034) - 8,537 $1,599,689	2018
		$1,794,170 3,515
		$1,797,685 (43,562) (5,262) (1,179) 60 525 198 97 6 204 52,791 124,258 (185,743) (30,649) 144,334
		$1,853,763

6.31 Operating Revenue

Operating Revenue
Item Revenue from contracts with customers Sales revenue Construction revenue Processing revenue Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Year Ended December 31 2019 2018 $57,919,391 $72,399,191 1,497,479 1,154,174 359,186 571,931 217 217 $59,776,273 $74,125,513 (23,182) (38,199) (65,494) (231,125) $59,687,597 $73,856,189
	2019 $57,919,391 1,497,479 359,186 217 $59,776,273 (23,182) (65,494) $59,687,597

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1.Segments of revenue from contracts with customers

The Group’s source of revenue comes from providing goods and services that are transferred either over time or at a specific timing. Revenue can be split into the following segments:

(1) Segmented by revenue from different types of goods and services: 2019�

2019�
External customer	Steel coils and steel pipes	Wire rods $6,165,940 $6,165,940 - $6,165,940 Wire rods $8,096,135 $8,096,135 - $8,096,135	Construction revenue $1,497,696 $ - 1,497,696 $1,497,696 Construction revenue $1,154,391 $ - 1,154,391 $1,154,391	Others $3,786,039 $3,786,039 - $3,786,039	Total
	$48,237,922				$59,687,597
Contract revenue Timingof revenue recognition
	$48,237,922 -				$58,189,901 1,497,696
Revenue recognized at a specific timing Revenue recognized over time Total 2018� External customer
	$48,237,922				$59,687,597
	Steel coils and steel pipes			Others	Total $73,856,189 $72,701,798 1,154,391 $73,856,189
	$59,087,188			$5,518,475
Contract revenue Timingof revenue recognition
	$59,087,188 -			$5,518,475 -
Revenue recognized at a specific timing Revenue recognized over time Total
	$59,087,188			$5,518,475

(2) For detailed revenue information by business segments, please refer to Note 14.

2.Contract Balance

act Balance
Item Notes receivable and accounts receivable Contract assets - current Steel structure construction and overhead cranes Contract liabilities - current Unearned sales revenue Advance construction receipts Total	December31
	2019 $3,318,115 $822,605 $857,294 115,493 $972,787	2018
		$4,807,282
		$532,786
		1,264,258 146,240
		$1,410,498

(1) Changes in contract assets and contract liabilities are caused mainly by the difference of timing between when performance obligations are fulfilled and when customers make payments.

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(2) Allowance for contract assets:

) Allowance for contract assets:
Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net	December31
	2019 0%-0.5% $824,994 (2,389) $822,605	2018
		0%-0.5%
		$534,501 (1,715)
		$532,786

The Group recognizes allowance losses on contract assets based on expected credit losses during existence. Contract assets will be transferred to accounts receivable at the time of billing. Its credit risk characteristics are the same as accounts receivable generated from similar contracts. Therefore, the Group believes that the expected credit loss rate of accounts receivable can also be applied to contracts. Changes in allowance losses on contract assets are as follows:

follows:
Beginning balance Add: Provision for impairment Ending balance	Year EndedDecember31
	2019 $1,715 674 $2,389	2018
		$- $1,715
		$1,715

(3) Contract liabilities recognized for the years ended December 31, 2019 and 2018 under operating revenue amounted to $1,264,258 thousand and $1,888,654 thousand.

6.32 Employee benefits, depreciation and amortization expense

Year Ended December 31,2019	Year Ended December 31,2019	Year Ended December 31,2019
OperatingCost OperatingExpense Total $1,469,104 $706,546 $2,175,650 150,096 66,143 216,239 100,240 33,219 133,459 368,629 96,041 464,670 1,596,243 122,581 1,718,824 - 42,353 42,353 $3,684,312 $1,066,883 $4,751,195 Year Ended December 31,2018		Total
		$2,175,650 216,239 133,459 464,670 1,718,824 42,353
		$4,751,195
OperatingCost $1,474,761 140,877 100,019 394,849 1,616,988 - $3,727,494	OperatingExpense $778,693 65,891 35,079 109,371 115,653 10,701 $1,115,388	Total
		$2,253,454 206,768 135,098 504,220 1,732,641 10,701
		$4,842,882

－186－

(Note 1)Excluding pension of $380 thousand and depreciation of $10,102 thousand under equipment prepayments.
(Note 2)Excluding pension of $743 thousand and depreciation of $6,415 thousand under equipment prepayments.
1.According to Articles of Incorporation, compensation to employees and remuneration to directors shall neither be less than 0.2 % nor greater than 0.1% of the net income before tax and before which the compensation to employees and remuneration to directors are deducted from. Due to the accumulated loss of the Company for 2019, the estimated amount of the above compensation and remuneration were both $0 thousand. Compensation to employees and remuneration to directors for 2018 was distributed at 0.2% and 0.1% of the net income before tax. Any changes in the amounts, if any, after the annual financial statements were authorized for issue, shall be recorded as a change in accounting estimate, and should be adjusted the next year.
2.Compensation to employees and remuneration to directors for the years ended December 31, of 2019 and 2018 have been resolved and approved by the Board of Directors in March 2019 and 2018. Relevant amounts recognized in the financial statement are as follows:

			Year Ended	Year Ended	December 31
		2019			2018
	Employees’		Directors’		Employees’	Directors’
	Compensation		Remuneration		Compensation	Remuneration
Resolved distributed amount	$	-	$	-	$579	$145
Recognized amount in the		-		-	579	290
annual financial report
Difference amount	$	-	$	-	$ -	($145)

(1)The above-mentioned employee compensation was distributed in cash.
(2)The differences between the amount resolved for 2018 and the amount recognized in financial statements are mainly estimate difference and has been adjusted in profit or loss for 2019.
3.Information about employee compensation and remuneration to directors approved by the Board of Directors is available at the Taiwan Stock Exchange Market Observation Post System website.

－187－

6.33 Other Income

Item Interest income Interest from bank deposits Others Subtotal Dividend income Other income Income from subsidy (Note 1) Dumping margins (Note 2) Return of refundable deposits (Note 3) Income from sales of scraps Others Subtotal Total	Year Ended December 31	Year Ended December 31
	2019 $121,857 3,107 $124,964 106,632 - 255,998 71,952 63,416 37,894 $429,260 $660,856	2018
		$101,873 3,183
		$105,056
		34,213 102,256 929,959 - 49,219 33,617
		$1,115,051
		$1,254,320

(Note 1) Financial subsidy granted in 2018 by Changshu Economic Development Zone to the sub-subsidiary, Yieh Phui (China) Technomaterial Co., Ltd.

(Note 2) For information on dumping margins, please refer to Note 6.17. (Note 3) For information on return of refundable deposits, please refer to Note 10.

6.34 Other gains and losses

Item Gain (loss) on disposal of financial assets at fair value through profit and loss Gain (loss) on disposal of investments under equity method Valuation gain (loss) on financial assets and financial liabilities Financial assets mandatorily measured at FVTPL Net foreign exchange gain (loss) Realized gain from disposal of property, plant, and equipment Gain (loss) from disposal of property, plant, and equipment Insurance claims income Gain on disposal of investment proverties Gain on disposal of noncurrent assets held for sale (Note) Impairment loss on property, plant, and equipment Others Total	Year Ended December 31	Year Ended December 31
	2019 552 20 2,406 (71,202) - (26,700) - 341,434 401,121 - (15,497) $632,134	2018
		($650) 115,938 42,259 (79,757) 16,264 (124,450) 78,048 - - (42,889) (25,001)
		($20,238)

－188－

(Note) On November 8, 2018, the Group sold to San-Hsin Crop. (1) Land No. 00010002 in Pingbei Section, Jiadong Township, Pingtung County; (2) Land No. 0001-0027 in Pingnan Section, Fangliao Township, Pingtung County; and (3) Building No. 25 in Pingnan Section, Fangliao Township, Pingtung County. The contract price is $625 million. The afore-mentioned transaction price is determined by both parties upon negotiation by reference to the appraisal report made by Euro-Asia Asset Evaluation Group. In May 2019, the ownership transfer was completed in accordance with the scheduled payment terms as stipulated in the contracts, and the disposal gain of $401,121 thousand is presented as “other gains and losses”

6.35 Finance Costs

Finance Costs
Item Interest expense: Interest on loans Interest on lease liabilities Subtotal Less: Amount qualified for capitalization Finance costs	Year Ended December 31 2019 2018 $1,763,137 $1,765,242 1,340 - $1,764,477 $1,765,242 (448,804) (500,998) $1,315,673 $1,264,244
	2019 $1,763,137 1,340 $1,764,477 (448,804) $1,315,673

6.36 Income Tax

1.Income tax expense
(1) Components of income tax expense

Item Current income tax Current income tax expense Adjustment to prior year income taxes Tax on undistributed retained earnings Land value increment tax Current income tax expense Deferred income tax Deferred income tax on temporary differences originated and reversed Effect of tax rate changes Deferred income tax expense Income tax expense (benefit)	Year Ended December 31	Year Ended December 31
	2019 $42,972 111 1,513 25,741 $70,337 ($355,518) - ($355,518) ($285,181)	2018
		$232,817 3,119 175 -
		$236,111
		($118,624) (26,885)
		($145,509)
		$90,602

－189－

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

Item Remeasurement of defined benefit plans Exchange differences on translation of foreign financial statements Effect of tax rate changes Total	Year Ended December 31 2019 2018 $16,880 $6,980 (72,875) (1,553) - (33,170) ($55,995) ($27,743)	Year Ended December 31 2019 2018 $16,880 $6,980 (72,875) (1,553) - (33,170) ($55,995) ($27,743)
		2018
		$6,980 (1,553) (33,170)
		($27,743)

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

profit or loss is as follows:
Item Income (loss) before tax Income tax expense (benefit) at the statutory rate Tax effect of adjusting items: Investment loss (gain) recognized under equity method Unrealized inventory valuation loss (recovery gain) Timing difference of revenue recognition Realized (unrealized) investment loss Gain (loss) on sale of land exempt from income tax Paid (unpaid) pension Other adjustments Loss carryforwards Adjustment to prior year income taxes Additional tax on undistributed retained earnings Land value increment tax Net changes of deferred income tax Income tax expense (benefit) recognized in profit or loss	2019 ($1,985,466) ($439,402) 213,518 33,270 (1,526) (12,265) (148,608) (19,627) 78,846 338,766 111 1,513 25,741 (355,518) ($285,181)	2018
		$355,546
		$56,211 214,560 (27,883) (36,946) (96,050) - (48,014) (2,831) 173,770 3,119 175 - (145,509)
		$90,602

The Group was subject to a tax rate of 20% from 17% starting from 2018 as stipulated in the Income Tax Act of the Republic of China. In addition, the tax rate on the undistributed earnings in 2018 is lowered from 10% to 5%. The taxable amount in other jurisdictions is calculated based on the tax rate applicable therein.

－190－

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

	Year Ended December 31,	Year Ended December 31,	2019
Beginning balance $7,020 155,868 14,388 5,000 73,897 4,808 63,415 146,808 68,261 44,193 $583,658 ($57) (16,769) (721) ($17,547) $566,111	Recognized in profit or loss $274,009 - 38,953 - - (1,526) (3,577) (19,772) 42,319 10,176 $340,582 ($537) 16,769 (1,296) $14,936 $355,518	Recognized in other comprehensive income $ - 72,875 - - - - - (16,880) - - $55,995 $ - - - $- $55,995	Effect of Exchange Rate Changes $ - - 3,618 - - - - - - (2) $3,616 $ - - 78 $78 $3,694	Ending balance
				$281,029 228,743 56,959 5,000 73,897 3,282 59,838 110,156 110,580 54,367
				$983,851
				($594) - (1,939)
				($2,533)
				$981,318

－191－

		Year Ended December 31, 2018	Year Ended December 31, 2018	Year Ended December 31, 2018
Beginning balance	Acquired through business combination	Recognize d in profit or loss	Recognized in other comprehensive income $ - 1,553 - - - - - 6,589 (13,569) - - ($5,427) $ - - - $ - ($5,427)	Effect of Exchange Rate Changes	Effect of tax rate changes	Ending balance
	$ - - - - - - - - - 9,068 -	($171) - (55,307) - (3,488) (37,190) (6,973) (47,869) - (5,681) 25,592		$ - - 1,247 - - - - - - - (24)	$1,079 23,147 657 750 11,608 6,300 10,558 28,213 2,035 9,731 6,067	$7,020 155,868 14,388 5,000 73,897 4,808 63,415 146,808 - 68,261 44,193
$609,736	$9,068	($131,087)		$1,223	$100,145	$583,658
	- - -	($17) 250,458 (730)		$ - - 9	($6) (40,084) -	($57) (16,769) (721)
($227,177)	$ -	$249,711		$9	($40,090)	($17,547)
$382,559	$9,068	$118,624		$1,232	$60,055	$566,111

－192－

4.Items not recognized as deferred income tax assets:

Item Investment loss recognized under equity method Impairment loss of investments under the cost approach Loss carryforwards Others Total	December 31	December 31
	2019 $856,053 48,499 1,343,196 107,190 $2,354,938	2018
		$643,658 48,499 929,509 96,992
		$1,718,658

5.The Company’s income tax returns through 2017 have been ractified by the tax authorities.

6.37 Other Comprehensive Income

Year Ended December	Year Ended December	31, 2019
Before tax $84,399 (15,997) 17,118 (36,700) $48,820 ($317,854) (115,884) (347) ($434,085) ($385,265)	Income tax expense (benefit) ($16,880) - - - ($16,880) $69,684 3,191 - $72,875 $55,995	After tax
		$67,519 (15,997) 17,118 (36,700)
		$31,940
		($248,170) (112,693) (347)
		($361,210)
		($329,270)

－193－

Year Ended December	Year Ended December	31,2018
Before tax ($32,943) 5,241 (72) 30,103 $2,329 ($125,682) 74,303 295 ($51,084) ($48,755)	Income tax expense (benefit) $12,816 - (9,773) - $3,043 $61,875 (37,175) - $24,700 $27,743	After tax
		($20,127) 5,241 (9,845) 30,103
		$5,372
		($63,807) 37,128 295
		($26,384)
		($21,012)

6.41 Earnings (loss) Per Share

Earnings (loss) Per Share
Item A.Basic earnings (loss) per share Net income (loss) attributable to shareholders of parent company (A) Weighted average number of outstanding shares (thousand shares) Weighted average number of shares outstanding after retrospective adjustment (thousand shares) (B) Basic earnings (loss) per share (after tax) (NT$)(A)/(B)	Year Ended December 31
	2019 ($1,401,081) 1,913,327 1,913,327 ($0.73)	2018
		$308,506 1,875,811 1,913,327
		$0.16

－194－

B.Diluted earnings (loss) per share Net income (loss) attributable to shareholders of parent company (C) Weighted average number of outstanding shares (thousand shares) Impact on employees' compensation (Note) Weighted average number of ordinary shares outstanding after dilution (thousand shares) (D) Diluted earnings (loss) per share (after tax) (NT$) (C)/(D)	($1,401,081) 1,913,327 - 1,913,327 ($0.73)	$308,506 1,875,811 80
		1,875,891
		$0.16

The Company's shareholders' meeting held on June 20, 2019 had resolved to capitalize earnings and issue 37,516 thousand new shares . The record date for capital increase was set on September 2, 2019. After retrospective adjustment for 2018, the number of shares was 1,913,327 thousand shares.

(Note) Since the Group offered to settle compensation paid to employees in cash or shares, the Group assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as 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.

6.42 Business Combination

2019�None.

2018�

1.Acquisition of subsidiaries

Name Asiamax Mining Indonesia Lien-Hung Mining Co., Ltd.	Date of Acquisition May 23, 2018 September 30, 2018	Ownership interest with voting power/Acquisition percentage (%) 100%/100% 90%/41%	Consideration Transferred
			$38,542 239,208

Purposes and means of acquiring the aforementioned subsidiaries by the Group are stated as follows�

(1) Asiamax Mining Indonesia

In consideration of long-term operation development and a diversified investment strategy, the Group acquired 100% shares of Asiamax Mining Indonesia, constituting a control. Therefore, Asiamax Mining Indonesia is consolidated into the consolidated financial statements.

－195－

(2) Lien-Hung Mining Co., Ltd.

In consideration of long-term operation development and a diversified investment strategy, the Group acquired 49% shares of Lien-Hung Mining Co., Ltd. in cash in 2014, followed by a purchase of another 41% shares (Note) of which in September 2018. Since the total shares acquired have reached 90% and constituted a control, such company is included into the consolidated financial statements. In addition, the Group acquired additional 10% shares (Note) in December 2018, resulting in the changes in its shareholding to 100%.

(Note)Due to legal restriction within the local jurisdiction, the shares are registered temporarily under the name of a third-party; in order that the rights be secured, the third-party has pledged all shares under his/her name to the Group through a contract agreement.

2.Assets acquired and liabilities assumed upon acquisition date

Item Current assets Cash and cash equivalents Other receivables Inventory Prepayments Non-current assets Intangible assets Property, plant and equipment Deferred income tax assets Refundable deposits Current liabilities Provisions - current Other payables Contract liabilities Identifiable net assets	Asiamax Mining Indonesia $4,583 26 - 1,091 - 47,943 - - - 15,101 - $38,542	Lien-Hung Mining Co., Ltd. $21,941 - 51,405 9,697 454,188 42,721 9,068 3,329 3,577 3,448 34,650 $550,674	Total
			$26,524 26 51,405 10,788 454,188 90,664 9,068 3,329 3,577 18,549 34,650
			$589,216

3.Goodwill arising out of acquisition

odwill arising out of acquisition
Consideration transferred Add: Fair value of previously held equity on acquisition date Non-controlling interests Less: Fair value of obtained identifiable assets Goodwill arising out of acquisition	Asiamax Mining Indonesia $38,542 - - 38,542 $ -	Lien-Hung Mining Co., Ltd. $239,208 258,675 52,791 550,674 $ -	Total
			$277,750 258,675 52,791 589,216
			$ -

－196－

4.Net cash outflows from the acquisition of subsidiaries

Consideration paid in cash Less: Prepaid investment Balance of cash and cash equivalents acquired Net cash outflows (inflows)	Asiamax Mining Indonesia $38,542 - (4,583) $33,959	Lien-Hung Mining Co., Ltd. $239,208 (220,851) (21,941) ($3,584)	Total
			$277,750 (220,851) (26,524)
			$30,375

5.Between the acquisition date and the end of 2018, revenue from the aforementioned subsidiaries was $45,325 thousand.
6.If the business combination had occurred at the beginning of the year, the Group’s pro forma operating revenue would have been $73,958,431 thousand.

6.40 Transactions with Non-controlling Interests

1.Acquisition of additional equities in subsidiaries

2019�

Between January and December, 2018, the Group had purchased in cash additional equities of 0.25% for the subsidiaries, Yieh Hsing Enterprise Co., Ltd. with $6,034 thousand, resulting in the changes in its shareholding percentage from 56.73% to 56.98%, respectively. Since the said transaction did not change the Group’s control over the said subsidiaries, it is deemed as an equity transaction.

Carrying amount of non-controlling interests acquired Capital surplus - consideration paid to non-controlling interests Capital surplus - difference between the price received and its book value from acquisition or disposal of a subsidiary	Yieh Hsing Enterprise Co., Ltd.
	$7,170 (6,034)
	$1,136

2018�

Between January and December 2018, the Group had purchased in cash additional equities of 10%, 0.56%, 25% (Note), 10% (Note), and 0.3% for the subsidiaries, Da Yao Engineering & Consulting Co., Ltd., EMMT Systems Corporation, Lien-Heng Mining Co., Ltd., Lien-Hung Mining Co., Ltd., and Yieh Hsing Enterprise Co., Ltd. with $2,236 thousand, $1,917 thousand, $15,612 thousand, $123,542 thousand, and $7,647 thousand, resulting in the changes in its shareholding percentage from 50% to 60%, 85.02% to 85.58%, 75% to 100%, 90% to 100%, and 56.43% to 56.73%, respectively. Since the said transaction did not change the Group’s control over the said subsidiaries, it is deemed as an equity transaction.

－197－

	Da Yao
	Engineering		Lien-		Yieh
	&	EMMT	Heng	Lien-Hung	Hsing
	Consulting	Systems	Mining	Mining	Enterprise
	Co., Ltd.	Corporation	Co., Ltd.	Co., Ltd.	Co., Ltd.
Carrying amount of non- controlling interests acquired	$2,234	$2,121	($2,057)	$40,285	$9,961
Consideration paid to non- controlling interests	(2,236)	(1,917)	(15,612)	(123,542)	(7,647)
Difference between the price
received from acquisition or disposal of a subsidiary and its	($2)	$204	($17,669)	($83,257)	$2,314
book value

Note�Due to legal restriction within the local jurisdiction, the shares are registered temporarily under the name of a third-party; in order that the rights be secured, the third-party has pledged all shares under his/her name to the Group through a contract agreement.

7. RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

The Company is the ultimate controlling party of the Group.

7.2 Names of related parties and relationship categories

Name of related party Related party category Yieh United Steel Corp. Associate Yieh Mau Corp. Associate Synn Industrial CO., Ltd. Associate (all shares were disposed of in May 2018) Asiazone Co., Ltd. Associate Zheng Xin Security Co., Ltd. Associate Eliter International Corp. Associate Unipattern Corporation Co.,Ltd. Associate E-Da Bus Transportation Co., Ltd. Associate E-DA Tour Bus Co., Ltd. Associate E-Da Development Corp. Associate E United Japan Co., Ltd. Associate Lien-Hung Mining Co., Ltd. Associate (which has become a subsidiary in September 2018) E- Da Visual Effects Company Limited. Associate Yieh Hong Enterprise Co., Ltd. Other related party Yieh Mau Corp. Other related party Li-Hsin Co., Ltd. Other related party Angang Hanyang (Guangzhou) Stainless Other related party Steel Corporation

－198－

Name of relatedparty
Angang Lianzhong (Guangzhou)
Stainless Steel Corporation
Fujian Lian Wei Logistics Co., Ltd.
Fujian Lian De Enterprise Co., Ltd.
Asiamax Mining Indonesia
Skylark International Hotel Co., Ltd.
Pacific Harbor Stevedoring Corporation
Royal Palace Hong Kong Style
Restaurant Co., Ltd.
Jinghua Commercial Asset Management
Limited
I-Hsiang-Le International Co., Ltd.
Chiao-Ling Leisure Co., Ltd.
New Spring Construction Corp.
E-Da Royal Hotel Company Ltd.
E-Da Hospital
I-Shou University
I-Shou University Internship Center
Long Hua Travel Services Co., Ltd.
I-Shou International School

Relatedpartycategory

Other related party
Other related party
Other related party
Other related party
( which has become a subsidiary in
May 2018)
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party

7.3 Significant transactions with related parties

Balance and transactions between the Company and subsidiaries (i.e., related parties) were eliminated and not disclosed when preparing such consolidated financial statements. Disclosure of related party transactions are as follows:

1. Operating revenue

Item Sales revenue Construction revenue	Relatedpartycategory Associates Other related parties Total Associates Other related parties Subtotal Less: Construction revenue that are eliminated in consolidation Total	Year Ended Decmber 31 2019 2018 $3,165,523 $3,009,745 2,134,157 2,959,872 $5,299,680 $5,969,617 $5,053 $3,706 969,048 223,187 $974,101 $226,893 (147,277) (99,650) $826,824 $127,243
		2019 $3,165,523 2,134,157 $5,299,680 $5,053 969,048 $974,101 (147,277) $826,824

－199－

(a) Selling price to the Group's related parties, including hot rolled steel coils, galvanized steel coils, scraps (bars), etc. and trading terms are the same with those to other customers. Payment periods were within one to two months.
(b) Selling price of hot-rolled steel coil and nickel laterite ores to related parties are set by reference to the purchase price of a non-related party as a trading counterparty. Payment term is 3 months.
(c) Selling price of carbon steel and steel scraps to related parties are set with reference to the purchase price of a non-related party as a trading counterparty. Payment term is monthly, and closes in 15 days.
(d) The construction contracts between the Group and above-mentioned related parties were established at prices negotiated by both parties. Contract proceeds were collected according to the collection clauses stated in these contracts. Unless agreed on by both parties, payments cannot be delayed.
(e) Since the Group contracted from and sub-contracted to related parties a portion of steel construction engineering at the same time, where the construction engineering belonged to the same project, the accounting treatment of which was deemed the same as such project would have been managed and supervised by other related parties. In 2019 and 2018, the eliminated construction revenue was $147,277 thousand, and $99,650 thousand, respectively.
Purchases

Purchases
Relatedpartycategory Associate� Yieh United Steel Corp. Others Other related parties Total	Year Ended Decmber 31 2019 2018 $4,525,596 $5,705,975 - 198,109 1,069,144 3,106,056 $5,594,740 $9,010,140
	2019 $4,525,596 - 1,069,144 $5,594,740

Items purchased by the Group from above related parties were mainly stainless billets and carbon steel billets. The purchase prices are similar to that offered to other suppliers. Payment term is L/C at sight (not significantly different than terms to other suppliers) or T/T before shipment or payment is due 120 days from invoices issued.

Contract assets

issued. Contract assets
Relatedpartycategory Associates Other related party: New Spring construction Corp. Total Less: Loss allowance Total	December 31 2019 2018 $3,435 $2,856 518,380 35,563 $521,815 $38,419 - - $521,815 $38,419
	2019 $3,435 518,380 $521,815 - $521,815

－200－

4. Contract liability

Contract liability
Relatedpartycategory Other related party: New Spring construction Corp. Others Total	December 31 2019 2018 $84,625 $59,892 1,091 5,320 $85,716 $65,212
	2019 $84,625 1,091 $85,716

Receivables from related parties (excluding loans to related parties and contract assets )

assets )
Item Notes receivable Accounts receivable Other receivables	Related party category Associates Other related parties Total Less: Loss allowance Net Associates: Asiazone Co., Ltd. Yieh United Steel Corp. Other related party� Fujian Lian Wei Logistics Co., Ltd. Others Total Less: Loss allowance Net Associates: Yieh United Steel Corp. Others Other related parties Total Less: Loss allowance Net	December 31 2019 2018 $45 $1,102 23 23 $68 $1,125 - - $68 $1,125 $169,307 403,413 446,230 142,403 173,026 451,554 1,899 170,511 $790,462 $1,167,881 (605) (1,867) $789,857 $1,166,014 $2,134 $28,176 160 50 646 5,422 $2,940 $33,648 - - $2,940 $33,648
			2018 $1,102 23 $1,125 - $1,125 403,413 142,403 451,554 170,511 $1,167,881 (1,867) $1,166,014 $28,176 50 5,422 $33,648 - $33,648

Payables to related parties (excluded loans from related parties)

Item Notes payable Accounts payable	Related party category Associates Other related parties Total Associates Other related parties Total	December 31	December 31
		2019 $2,638 1,159 $3,797 $20,525 6,876 $27,401	2018
			$472 6,884
			$7,356
			$102,948 13,357
			$116,305

－201－

Item Other payables Advance receipts	Related party category Associates Other related parties Total Other related parties	December 31	December 31
		2019 $27,833 8,628 $36,461 $72	2018
			$22,385 2,595
			$24,980
			$69

7. Prepayments

Prepayments
Relatedpartycategory Other related parties Others Total	December 31
	2019 $28,823 - $28,823	2018
		$97,196 1,665
		$98,861

Asset transaction
(1)Acquisition of property, plant and equipment:

2019:

2019:
Type of related party Other related party� New Spring Construction Corp. Associates	Transaction target Construction in progress (Note 1) Other equipment (Note 2)	Transaction amount
		$997,478 136,381

(Note 1) The above-mentioned transaction price was by reference to appraisal reports offered by professional institutions, and were agreed on by both parties upon negotiation or through price comparision. As of December 31, 2019, the unpaid portion was $28,962 thousand.

(Note 2) The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2019, the transaction price was fully paid.

2018:

fully paid. 2018:
Type of related party Other related party� New Spring Construction Corp. Others Associates	Transaction target Construction in progress (Note 1) Other equipment (Note 2) Prepayments for equipment (Note 2)	Transaction amount
		$879,526 52 85,882

－202－

(Note 2) The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2018, the transaction price was fully paid.

(2)Disposal of property, plant and equipment:

2019: Type of related party / Name Associates	Transaction target Transportation equipment	Transaction amount $50	Gain or loss on disposal
			$42

The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2019, all the transaction amount was fully recovered.

2018: None.

(3)Acquisition of investment properties:

2019:

2019:
Type of related party / Name Other related party� New Spring Construction Corp.	Transaction content Construction in progress	Transaction amount
		$8,411

The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2019, the transaction price was fully paid.

2018: None.

(4)Acquisition of other assets:

2019: None.

4)Acquisition of other assets: 2019: None.
2018: Type of relatedparty/ Name Other related party : Unique Step Investments Holding Ltd.	Transaction target 38 thousand shares of Asiamax Mining Indonesia.	Transaction amount
		$38,542

The above-mentioned transaction price of shares was agreed on by both parties upon negotiation with reference to the net worth per share of the investees. As of December 31, 2018, the transaction price was fully paid.

－203－

(5)Disposal of other assets: 2019:

2019:
Type of related party Associate	Transaction target 26 thousand shares of E-Da Cultural Creative Industry Co., Ltd.	Transaction amount $203	Gain or loss on disposal
			$20

The above-mentioned transaction price of shares was agreed on by both parties upon negotiation with reference to the net worth per share of the investees. As of December 31, 2019, all the transaction amount was fully recovered.

2018: None.

9. Others

(1)Miscellaneous income

recovered. 018: None. ers Miscellaneous income
Relatedpartycategory Associates Other related parties Total	Year Ended December 31
	2019 $21,503 1,088 $22,591	2018
		$26,741 1,556
		$28,297

These are mainly technical service income, and sporadic rent income. The rent price is determined by contract and received monthly or quarterly.

(2)Miscellaneous expenses

Miscellaneous expenses
Relatedpartycategory Associates Other related parties Total	Year Ended December 31
	2019 $57,997 118,555 $176,552	2018
		$58,674 144,622
		$203,296

These are mainly service charges, export expenses, and not applicable to IFRS 16 of rent expense. The rent price is determined by contract and paid monthly or quarterly.

(3)Construction contracts

(a)Unfinished construction contracts with related parties as of December 31, 2019 were as follows:

Type of related party / Name Associates Other related party� New Spring Construction Corp.	Name of construction Flue pipe installation construction Above-ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price $12,271 $3,376,861 (Note)	contract assets / liabilities
			$3,435/$ - $518,380/$84,625

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(b)Unfinished construction contracts with related parties as of December 31, 2018 were as follows:

Type of related party / Name Associates Other related party� New Spring Construction Corp.	Name of construction Flue pipe installation construction Above-ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price $8,975 $3,430,491 (Note)	contract assets / liabilities
			$2,856/ $- $35,563/$56,245

(Note) As stated in Note 7.3.1.(e), where the Group contracts from and subcontracts to related parties the same construction project, the accounting treatment of which is deemed the same as such construction project would have been commissioned to other related parties to manage and supervise.

Where the Group participated in the cash offering by related parties and consequently increased its investment are disclosed as follows:

2019:

2019:
Investee Associate� E-Da Development Crop. E-Da Bus Transportation Co., Ltd. E-DA Tour Bus Co., Ltd. 2018: Investee Associate� Eliter International Corp. E-Da Development Crop.	Investment Increase Shares (thousand shares) Amount 27,507 275,073 1,367 13,669 1,140 11,400 Investment Increase Shares (thousand shares) Amount 26,133 261,338 34,384 343,841	Shareholding Percentage
		Before Offering After Offering 34.38% 34.38% 17.09% 17.09% 19.00% 19.00% Shareholding Percentage	After Offering
	Shares (thousand shares) 26,133 34,384	Before Offering (Note) (Note)	After Offering
			(Note) (Note)

(Note) Subscription to associates’ preferred stock and listed as financial assets at fair value through profit or loss.

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7.4 Information about remunerations to the major management:

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Year Ended December 31	Year Ended December 31
	2019 $91,537 1,578 - - - $93,115	2018
		$96,247 1,221 - - -
		$97,468

8. PLEDGED ASSETS

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

Item
Pledged demand deposits
Pledged time deposits
Subtotal of other financial assets - current
Pledged demand deposits
Pledged time deposits
Subtotal of other financial assets - noncurrent
Property, plant and equipment (net)
Non-current assets held for sale
Right-of-use asset
Long-term prepaid rent - land-use right
(including current portion)
Investment properties
Investments accounted for using equity
method
Notes receivable and accounts receivable
Total

December 31
2019
2018
$741,017
$485,078
638,232
596,776
$1,379,249
$1,081,854
$130,202
$67,590
402,625
46,875
$532,827
$114,465
$24,934,945
$21,055,755
23,342
207,097
57,975
-
-
62,176
502,790
657,514
1,415,693
1,374,566
176,523
79,170
$29,023,344
$24,632,597

2019
$741,017
638,232
$1,379,249
$130,202
402,625
$532,827
$24,934,945
23,342
57,975
-
502,790
1,415,693
176,523
$29,023,344

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Guarantee notes issued by the Group to banks for loans and purchases performance totaled $49,635,722 thousand, $50,099,480 thousand as of December 31, 2019 and 2018, respectively.
(2) Guarantee notes receired by the Group for its contract performance and creditor’s right totaled $187,662 thousand, $431,820 thousand, as of December 31, 2019 and 2018, respectively.

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(3) The unused letters of credit as of December 31, 2019, and 2018 are as follows:

Item L/C Amount	December 31	December 31
	2019 USD 19,634 NTD 708,194 JPY 4,679	2018
		USD 22,658 NTD 806,684 JPY 13,180

(4) As of December 31, 2019 and 2018, guarantees provided to banks by the Group for performance and warranty amounted to $134,679 thousand, and $212,161 thousand, respectively.
(5) As of December 31, 2019 and 2018, guarantee letters of credit issued by the Group for export business totaled USD13,400 thousand, and USD9,100 thousand, respectively.
(6) The Group entered into raw material purchase agreements with suppliers of billets, including MUKAND, EAST, and OUTO KUMPU. The price was agreed on by both parties upon negotiation. As of December 31, 2019, the unperformed portion totaled 11,412 tons, amounting to $152,552 thousand.
(7) Capital expenditures committed but not yet incurred are as follows:

Item Property, plant and equipment	December 31 2019 2018 $3,619,656 $4,097,733
	2019 $3,619,656

(8) Establishment of important construction contracts

(8) Establishment of important construction contracts	(8) Establishment of important construction contracts	(8) Establishment of important construction contracts	(8) Establishment of important construction contracts
(a) As of December 31, 2019, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below: Type of construction Contract price /Total estimated construction cost Construction cost paid /Completion % Expected year of completion /Accumulated profit or loss recognized Construction and installation of 40T42M tracked overhead container crane for China Container Transport at pier 10 and 11 of Taichung Harbor 202,300 205,019 204,853 99.92% Year 2020 (2,716) Manufacture and installation of overhead cranes sized 300t(150t+150t)43m for the Wind Power Department of Century Iron and Steel Industrial Co., Ltd. 205,000 200,458 156,173 77.91% Year 2020 3,539 6 40T-gantry cranes for storage in the rear area at Wharf No. 120 of Kaohsiung Harbor 311,100 260,717 259,208 99.42% Year 2020 50,091 Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd. 220,807 224,596 185,857 82.75% Year 2020 (3,789) Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying 313,600 312,494 227,278 72.73% Year 2020 804
Type of construction	Contract price /Total estimated construction cost	Construction cost paid /Completion %	Expected year of completion /Accumulated profit or loss recognized
Construction and installation of 40T*42M tracked overhead container crane for China Container Transport at pier 10 and 11 of Taichung Harbor	202,300 205,019	204,853 99.92%	Year 2020 (2,716)
Manufacture and installation of overhead cranes sized 300t(150t+150t)*43m for the Wind Power Department of Century Iron and Steel Industrial Co., Ltd.	205,000 200,458	156,173 77.91%	Year 2020 3,539
6 40T-gantry cranes for storage in the rear area at Wharf No. 120 of Kaohsiung Harbor	311,100 260,717	259,208 99.42%	Year 2020 50,091
Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd.	220,807 224,596	185,857 82.75%	Year 2020 (3,789)
Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying	313,600 312,494	227,278 72.73%	Year 2020 804

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YKK Taiwan's Chungli Plant No.2 construction project by Chung Lu Construction	341,610 335,419	317,844 94.76%	Year 2020 5,867
Development project phase 1 of district C of the core area of Shalun Smart Green Energy Science City by Reiju Construction	261,804 260,244	247,754 95.20%	Year 2020 1,485
Steel structure engineering construction of E-Da Empire Buildings by New Spring Construction Corp.	1,320,433 1,280,441	779,886 60.91%	Year 2020 24,358
New Construction of New Crystal Section of Tainan City for Dongpu Construction	203,675 200,918	45,632 22.71%	Year 2020 626
Manufacturing and installation of 14 overhead cranes, and safety electric bus-way for CSBC Corporation Taiwan	170,567 165,017	18,659 11.31%	Year 2020 628

(b) As of December 31, 2018, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:

Type of construction	Contract price /Total estimated construction cost	Construction cost paid /Completion %	Expected year of completion /Accumulated profit or loss recognized
Construction of international multi-purpose business building with Hwa Xung Kee Ta	217,362 217,428	213,628 98.25%	Year 2019 (66)
Construction and installation of 40T*42M tracked overhead container crane for China Container Transport at pier 10 and 11 of Taichung Harbor	202,300 203,114	199,082 98.01%	Year 2019 (814)
Construction of E-Da Empire Buildings by New Spring Construction Corp.	154,688 142,907	129,517 90.63%	Year 2019 10,678
Manufacture and installation of overhead cranes sized 300t(150t+150t)*43m for the Wind Power Department of Century Iron and Steel Industrial Co., Ltd.	205,000 201,019	19,217 9.56%	Year 2019 381
6 40T-gantry cranes for storage in the rear area at Wharf No. 120 of Kaohsiung Harbor	311,100 260,717	258,917 99.31%	Year 2019 50,035
Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd.	220,806 224,596	138,606 61.71%	Year 2019 (3,790)
Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying	313,600 312,494	147,495 47.20%	Year 2019 522

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YKK Taiwan's Chungli Plant No.2 construction project by Chung Lu Construction	331,610 331,262	281,545 84.99%	Year 2019 296
Development project phase 1 of district C of the core area of Shalun Smart Green Energy Science City by Reiju Construction	259,065 257,640	153,812 59.70%	Year 2019 851
Steel structure engineering Construction of E-Da Empire Buildings by New Spring Construction Corp.	1,320,433 1,280,441	85,104 6.65%	Year 2020 2,659

(9) Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., two subsidiaries, entered into the syndicated loan agreements with Land Bank of Taiwan and First Commercial Bank in August 2014. Yieh United Steel Corp., Yieh Phui Enterprise Co., Ltd., and Yieh Hsing Enterprise Co., Ltd. issued a commitment letter before the first use that the Company and its related parties shall jointly hold more than 50% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd.’s issued shares and gain the majority of directors' seats at all times. The Group held 100% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd. and acquired all directors' seats of both companies as of December 31, 2019.
(10) In November, 2019, the Group sold part of Land in Pingbei Section, Jiadong Township, Pingtung County. The total contract price is $76,344 thousand, from which the expected disposal gain of $53,022 thousand is derived. The above-mentioned transaction price is determined by both parties upon negotiation. As of December 31, 2019, contract deposits of $7,630 thousand have been collected. The ownership transfer will be completed in accordance with the scheduled payment terms as stipulated in the contracts.

10. SIGNIFICANT DISASTER LOSS

The Group’s Rolling Plant No. 3 was caught on fire in April 2018, resulting in damage of part of the equipment therein. The carrying amount of the damaged equipment was $85,048 thousand. Aside from recognizing deductible for fire loss of $7,000 thousand , an insurance claim receivable for the damaged part in the amount of $78,048 thousand was also recognized in December 31, 2018. The Group has obtained $150,000 thousand in insurance claim in 2019. After offsetting the insurance claim receivable, $71,952 thousand is recorded as “other income”.

11. SIGNIFICANT SUBSEQUENT EVENTS

(1) The Company's Board of Directors resolved on March 13, 2020 to repurchase 100,000 shares in the concentrated market from March 16 to May 15, 2020 at a price of $8 to $9.5 per share. The number of shares repurchased by the Company as of March 17, 2020 is zero.
(2) Sun company Kings Garden International Co., Ltd.( Originally acquired by the subsidiary Yieh Hsing Enterprise Co., Ltd for 50.71% shareholding, which was control obtained.) On February 24, 2020, the Board of Directors resolved to raise working capital by issuing 7,000 thousand shares of common stock at a cash issue price of $10.3 per share, and the total amount of funds raised was $ 72,100

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thousand. The capital increase base date is set on March 11, 2020. The Company intends to fully subscribe the shares. After the subscription, the Company's shareholding will increase from 49.28% to 50.12%. Yieh Hsing Enterprise Co., Ltd's shareholding will be reduced from 50.71% to 49.87%, The Company thus obtained control over such company.

12. OTHERS

(1) Capital risk management

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

(2) Financial Instruments

1. Financial risk of financial instruments

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

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

The nature and degree of significant financial risks

A. Market risks

(A)Foreign exchange rate risk

The Group is exposed to exchange rate risk arising from the sales, purchases and borrowings in currencies other than the Group’s functional currency, as well as from net investment of foreign operations. Functional currencies adopted by entities within the Group mainly comprise New Taiwan Dollars, RMB, USD, and IDR. However, such transactions are denominated mainly in RMB and USD. To avoid a decrease in the value of assets dominated in foreign currency and volatility in future cash flows due to changes in exchange rates, the Group hedges the exchange rate risk with foreign-currency borrowings and derivative financial instruments .Those derivative financial instruments can diminish but not completely eliminate the impacts of changes in exchange rate. As net investments in foreign operations are for strategic purposes, they are not hedged by the Group.

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a. Exchange rate exposure and sensitivity analysis

Exchange rate		December 31, 2019	December 31, 2019	December 31, 2019
	Presented amount (New Taiwan Dollars) 1,446,787 736,427 145,181 101,641 741,614 3,608,632 144,977	Sensitivity Analysis
		December 31, 2018 Range of change Effects on profitor loss Up 1% 14,468 Up 1% 7,364 Up 1% 1,452 Up 1% 1,016 Up 1% - Up 1% (36,086) Up 1% (1,450)		Effects on Equity
Exchange rate 29.98 6.9762 1.1203 13,924.50 29.98 6.9762 7.8155				- - - 7,416 - -
	Presented amount (New Taiwan Dollars) 1,574,508 1,625,178 147,216 742,578 447,195 5,069,332 107,895	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1%	Effects on profitor loss 15,745 16,252 1,472 - (4,472) (50,693) (1,079)	Effects on Equity
30.715 6.8632 0.1457 30.715 30.715 6.8632 7.865				- - - 7,426 - -

If NTD appreciates against the above-mentioned currencies, held all other variables constant, the impact generated as of December 31, 2019 and 2018 would stay the same with the reverse result.

Note: Referring to non-functional currency of the respective consolidated entities denominated in foreign currency, including inter-group transaction items that have been written off, and exchange risks that

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can not be fully written off.

b. Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Group’s monetary items amounted to ($71,202) thousand and ($79,757) thousand for the years ended December 31, 2019 and 2018, respectively.

(B) Price risk

Since the Group’s investment in securities is classified as financial assets at FVTPL or financial assets at FVTOCI on the consolidated balance sheet, the Group does not expose to price risks of securities. The Group mainly invests in domestic listed and unlisted stocks and beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.

If the security price goes up or down by 1%, the post-tax profit or loss for the year 2019 and 2018 will increase or decrease by $7,098 thousand and $12,949 thousand due to the increase or decrease of the fair value of financial assets measured at FVTPL. The post-tax other comprehensive income for the year 2019 and 2018 will increase or decrease by $7,099 thousand and $7,151 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

(C) Interest rate risk

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

follows:
Item With fair value interest rate risk Financial assets Financial liabilities Net With cash flow interest rate risk Financial assets Financial liabilities Net	Carrying Amount
	December 31, 2019 $1,385,094 (1,020,554) 364,540 $5,523,436 (49,966,792) ($44,443,356)	December 31, 2018
		$3,086,190 (837,598)
		2,248,592
		$4,186,186 (50,079,544)
		($45,893,358)

a. Sensitivity analysis of those with fair value interest rate risk:

Starting from 2018, the Group classifies its investment in preferred stocks with fixed income as financial assets measured at FVTPL. Fair value of such preferred stock investment changes in line with the interest rate changes in the market. If the market interest rate goes up 1% and other variables are held constant, the profit or loss for the year 2019 and 2018 will increase or decrease by $8,101 thousand and $30,566 thousand, respectively.

b. Sensitivity analysis of those with cash flow interest rate risk:

The interest-fluctuate instruments possessed by the Group were floatinginterest assets (liabilities). Therefore the effective interest rate, as well as

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the future cash flows, changes along with the market movement. Every one percent reduce (increase) in the market interest will increase (decrease) the net profit by ($444,434) thousand and ($458,934) thousand for the years 2019 and 2018, respectively.

B.Credit risk

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

Credit risk related to operations

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

Financial credit risk

The credit risks of bank deposits and other Financial instruments are measured and monitored by the Group’s financial departments. The Group does not expect significant credit risk because the counterparties are creditworthy and investment-graded financial institutions, companies and government agencies without any significant default concerns. In addition, the Group does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI.

(A) Credit concentration risk

As of December 31, 2019 and 2018, the top ten clients accounted for 45.14% and 42.60% of the Group’s accounts receivable, indicating a credit concentration risk. However, no significant credit concentration risk was shown from the remaining accounts receivables.

(B) Measurement of expected credit impairment loss
a. Accounts receivables and contract assets apply the simplified approach. Please refer to Note 6.4. for details.
b. Indications for determining whether the credit risk is increased significantly: None (the Group does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI).
c. Collaterals and other credit enhancement held to avoid credit risks from financial assets

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

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

C.Liquidity risk

(A) Overview

The Group’s objecting in managing liquidity risk is to maintain a sufficient level of cash and cash equivalents, highly-liquid marketable securities and credit lines with banks for daily operations in order to ensure the financial flexibility of the Group.

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

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Non-derivative financial Liabilities			December 12, 2019	December 12, 2019	December 12, 2019
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years	Contractual cash flows $ 15,597,746 934,000 799,965 1,188,827 1,651,603 107,319 34,478,493 17,533 $54,775,486	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Lease liabilities (including current) Long-term loans (including current portion) Guarantee deposits Received Subtotal	$ 13,978,543 934,000 799,785 1,188,827 1,651,603 5,766 3,223,243 2,026	$1,619,203 - 180 - - 3,310 3,151,262 1,845	$ - - - - - 9,279 8,168,322 559	$ - - - - - 26,621 12,699,886 9,972	$ - - - - - 62,343 7,235,780 3,131		$ 15,597,746 931,272 799,965 1,188,827 1,651,603 89,282 34,369,046 17,533
	$21,783,793	$4,775,800	$8,178,160	$12,736,479	$7,301,254		$54,645,274

Further information on lease liability maturity analysis is as follows:

Lease liabilities Non-derivative financial Liabilities	Less than 1 year	1-5 years $35,900	5-10 years	10-15 years $12,278	15-20 years	Over 20 years $19,397	Total undiscounted lease payments
	$ 9,076		$18,390		$12,278		$107,319
			December 12, 2018
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years	Contractual cash flows $ 16,001,636 840,000 1,156,449 1,245,748 1,557,229 34,186,935 14,749 $55,002,746 $7,437	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term loans (including current portion) Guarantee deposits Received Subtotal Derivative financial liabilities Cross currency swap contracts	$ 13,646,952 840,000 1,156,399 1,245,748 1,556,360 1,224,421 134	$2,354,684 - 50 - 869 2,972,618 603	$ - - - - - 12,167,904 284	$ - - - - - 12,774,314 11,728	$ - - - - - 5,047,678 2,000		$ 16,001,636 837,598 1,156,449 1,245,748 1,557,229 34,077,908 14,749
	$19,670,014	$5,328,824	$12,168,188	$12,786,042	$5,049,678		$54,891,317
	$7,437	$-	$-	$-	$-		$7,437

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

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2. Types of Financial instruments

December 31

Financial assets Financial assets measured at amortized cost Cash and cash equivalents Notes receivables and accounts receivables (including related parties) Other receivables(including related parties) Other financial assets - current Refundable deposits Other financial assets - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Financial liabilities Financial liabilities measured at amortized costs Short-term loans Short-term notes and bills payable Notes receivables and accounts payable (including related parties) Other payables (including related parties) Long-term loans (including current portion) Guarantee deposits Lease liabilities (including due within one year) Financial liabilities at fair value through profit or loss - current	2019 $5,023,717 3,318,115 193,409 1,405,930 925,853 532,827 428,279 289,289 709,886 15,597,746 931,272 1,988,792 1,651,603 34,369,046 17,533 89,282 -	2018
		$5,522,926 4,807,282 274,801 1,109,111 1,350,617 114,465 285,944 1,011,252 715,117 16,001,636 837,598 2,402,198 1,557,229 34,077,908 14,749 - 7,437

(3) Fair Value Information:

For information on fair value of financial assets and financial liabilities not measured at fair value, please refer to Note 12(3)3.For fair value of investment property measured at cost, please refer to Note 6.14. For fair value of investments in associates with quoted prices in an open market, please refer to Note 6.11
Definition of the three levels in fair value:

Level 1:

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificates, onthe-run Taiwan central government bonds and derivative instruments with quoted market prices is included in Level 1.

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Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in off-the-run government bonds, corporate bonds, bank debentures, convertible bonds and most derivative instruments is included in Level 2.

Level 3

Unobservable inputs for the asset or liability. The fair value of the Group’s investment in certain derivative instruments, equity investment without active market and investment property is included in Level 3.

3. Financial instruments not measured at fair value

Management of the Group thinks that the carrying amount of financial instruments not measured at fair value, including cash and cash equivalents, accounts receivables, other financial assets, refundable deposits, short term loans, short-term bills payable, accounts payable, lease liabilities (including current and noncurrent), long-term loans (including current portion), and guarantee deposits received, is the reasonable approximation of their fair value.

4. Fair value hierarchy:

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

in the following table:
Item Assets: Recurring fair value Financial assets at fair value through profit or loss Non-derivative financial assets held for trading Domestic unlisted stocks Derivative financial instruments Financial assets measured at FVTOCI Domestic unlisted stocks Domestic listed stocks Total		December 31, 2019
	Level 1 $43,769 - - - 33,885 $77,654	Level 2 $10,004 - 7,755 - - $17,759	Level 3 $- 656,040 - 676,001 - $1,332,041	Total
				$53,773 656,040 7,755 676,001 33,885
				$1,427,454

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	December 31, 2018	December 31, 2018
Level 1 $63,093 - - - 31,050 $94,143 $-	Level 2 $10,016 - 2,311 - - $12,327 $7,437	Level 3 $- 1,221,776 - 684,067 - $1,905,843 $-	Total
			$73,109 1,221,776 2,311 684,067 31,050
			$2,012,313
			$7,437

Fair value valuation technique for instruments measured at fair value:
(1) The fair value of financial instruments with quoted prices in active markets is the quoted market prices. Market prices published by major trading centers and exchanges for on-the-run government bonds are the basis for the fair value of listed equity instruments and debt instruments with quoted prices in active markets. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. If one of the conditions fails, the market is not deemed active. In general, indications of an inactive market include a wide bid-ask spread, a significant increase in the bid-ask spread and low level of trading volume. The fair value of financial instruments with active markets held by the Group are stated by their natures and types as follows:
- a. Listed stocks: closing prices
- b. Open-end funds: net worth
(2) Except for financial assets with an active market, the fair value of other financial assets is obtained either based on the valuation technique or by reference to the quotes from counter-parties. Fair value can be obtained by using a valuation technique that refers to the fair value of financial instruments having substantially the same terms and characteristics, the discounted cash flow method, or other valuation technique e.g. the one that applies market information available on the balance sheet date to a pricing model for calculation.

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

(3) When evaluating financial instruments that are non-standard and with lower complexity, e.g. debt instruments with no active markets, interest rate swaps, foreign exchange swaps and options, the Group adopts valuation techniques that are commonly used by market participants.The parameters used in the valuation models for those financial instruments are normally observable data in the market.
(4) Valuation of derivative financial instruments adopts valuation models that are commonly used by marketparticipants, e.g. discounted cash flows method and option pricing model.
(5) Outputs from the valuation models are estimates and valuation techniques may not be able to reflect all relevant factors of the financial and nonfinancial instruments held by the Group.Therefore, when needed, estimates from the valuation model would be adjusted based on additional parameters, e.g. model risk or liquidity risk.According to the Group's policies of fair value valuation management and relevant control procedures, the Group's management considers that valuation adjustments as being necessary and appropriate for a fair and just presentation of financial and non-financial instruments on the individual balance sheet. Every price data and parameters used in the valuation is reviewed thoroughly and adjusted for current market conditions.
(6) The Group incorporates the adjustment of credit risk assessment into the fair value measurement of financial and non-financial instruments to reflect the credit risk of counter-party and the credit quality of the Group.
Transfers between Level 1 and Level 2 fair value hierarchy: None
Statement of changes in Level 3 fair value hierarchy:

Item January 1, 2019 Additions Special shares recovered Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income December 31, 2019	Investment in unquoted financial instruments
	$1,905,843 15,000 (550,145) (4,234) (15,590) (18,833)
	$1,332,041

－219－

Item January 1, 2018 Adjustment due to retrospective application of IFRS 9 Additions Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income December 31, 2018	Investment in unquoted financial instruments
	$- 1,253,273 605,179 (2,352) 30,641 19,102
	$1,905,843

Valuation process for Level 3 fair value measurement: Valuation process regarding fair value Level 3 is conducted by the Group’s finance department, by which the independence of fair value of financial instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

(4) Transfer of financial assets:

Transferred financial assets fully derecognized

The Group entered into accounts receivable factoring agreement with Chang Hwa Bank. According to the contract, the Group does not bear the risk of default over the transferred accounts receivables but only the loss from trade disputes. As the Group did not have any continued participation over those transferred accounts receivables, they were derecognized from the accounts. Information on outstanding receivables is as follows:

December 31, 2019 �

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

December 31, 2018 � None.

Transferred financial assets not fully derecognized: None

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

－220－

13. SUPPLEMENTARY DISCLOSURES

A. Significant transactions information
(a) Loans to others: Please see Table 1 attached;
(b) Endorsements and guarantees provided to others: Please see Table 2 attached;
(c) Marketable securities held (excluding investments in subsidiaries and associates) at the end of the period: Please see Table 3 attached;
(d) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached;
(e) Acquisition of individual real estate properties at costs of at least NT$300 million
- or 20% of the paid-in capital: Please see Table 5 attached;
(f) Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 6 attached;
(g) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 7 attached;
(h) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 8 attached;
(i) Information about the derivative financial instruments transaction: Please see Note 6.2. for details;
(j) The business relationship between the parent and the subsidiaries and significant transactions between them: Please see Table 9 attached;
B. Information on investees : Please see Table 10 attached.
C. Information on investment in mainland China : Please see Table 11 attached.

－221－

Ceiling on total loans granted	Ceiling on total loans granted	10,340,092 (Note 3)	10,340,092 (Note 3)	10,340,092 (Note 3)	179,777 (Note 1)	10,340,092 (Note 3)	366,299 (Note 1)	5,987 (Note 1)	85,458 (Note 1)
Limit on loans granted to a single party		10,340,092 (Note 3)	10,340,092 (Note 3)	10,340,092 (Note 3)	179,777 (Note 2)	10,340,092 (Note 3)	366,299 (Note 2)	5,987 (Note 2)	85,458 (Note 2)
Collateral	Value	�	�	�	�	�	�	�	�
	Item	�	�	�	�	�	�	�	�
Allowance for doubtful accounts		�	�	�	�	�	�	�	�
Reason for short-term financing		Operating capital	Operating capital	Operating capital	Operating capital	Operating capital	Operating capital	Operating capital	Operating capital
Transaction amount		�	�	�	�	�	�	�	�
Nature of loan		2	2	2	2	2	2	2	2
Interest rate		2.00%- 8.09267%	4.00%	0%- 4.15%	�	4.00%	4.00%	4.00%	4.00%
Amount actually drawn		2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	107,438 (RMB 25,000)	134,910 (USD 4,500)	�	�	�	�	65,956 (USD 2,200)
Ending balance		2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	107,438 (RMB 25,000)	134,910 (USD 4,500)	�	�	�	�	65,956 (USD 2,200)
Maximum outstanding balance for the period		4,622,096 (RMB222,880) (USD109,570) (EUR 4,300)	114,888 (RMB 25,000)	142,200 (USD 4,500)	142,200 (USD 4,500)	528,530 (USD 17,000)	376,680	40,807 (USD 1,300)	69,058 (USD 2,200)
Related party		Y	Y	Y	Y	Y	Y	Y	Y
General ledger account		Long-term receivable – related party and Other receivables - related party	Long-term receivable – related party	Long-term receivable – related party	Other receivables - related party	Other receivables - related party	Other receivables - related party	Other receivables - related party	Other receivables - related party
Borrower		Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Yieh Phui (Hong Kong) Holdings Limited	Lian Yang (Hong Kong) Trading Limited	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (Hong Kong) Holdings Limited
Creditor		Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Good Honor Holdings Ltd.	Lian So (H.K) Co., Limited	Champion Logistic Inc.	Shin Yang Steel Co., Ltd.	Lian Yang (Hong Kong) Trading Limited	Applied Wireless Identifications Group, Inc.
No.		1	2	3	4	5	6	7	8
		－	22－

－223－

Guarantee provided to subsidiaries in Mainland China	Guarantee provided to subsidiaries in Mainland China	Y	�	�	�	�	�	�	Y	�
Guarantee provided by a subsidiary to parent company		�	�	�	Y	�	�	Y	�	�
Guarantee provided by parent company to subsidiary		Y	Y	Y	�	�	�	�	Y	�
Maximum endorsement/ guarantee allowable		25,850,231	25,850,231	25,850,231	1,081,496	28,919,925	25,643,265	2,747,239	8,416,022	460,644 (USD 15,365)
Ratio of accumulated endorsement/ guarantee to net equity per latest financial statement		24.73%	4.78%	17.05%	435.61%	173.94%	202.36%	98.28%	0.51%	104.13%
Amount of endorsement/ guarantees collateralized by properties		�	336,000	�	942,230	7,186,000	7,413,000	900,000	�	430,761 (USD 14,368)
Amount actually drawn		2,296,477 (RMB 534,375)	870,799	2,832,176 (USD 84,630) (RMB 20,160) (EUR 4,300)	942,230	5,465,000	5,904,000	560,000	42,674 (RMB 9,930)	151,734 (USD 5,061)
Ending balance		6,392,531 (RMB 1,487,500)	1,236,000	4,407,060 (USD 147,000)	942,230	7,186,000	7,413,000	900,000	42,674 (RMB 9,930)	479,680 (USD 16,000)
Maximum balance for the period		6,835,806 (RMB 1,487,500)	1,536,000	4,645,200 (USD 147,000)	942,230	7,186,000	7,413,000	900,000	78,124 (RMB 17,000)	505,600 (USD 16,000)
Limit on endorsement/ guarantees provided for a single party		25,850,231	25,850,231	25,850,231	1,081,496	28,919,925	25,643,265	2,747,239	8,416,022	460,644 (USD 15,365)
Party being endorsed/guaranteed	Relationship with the endorser/ guarantor	Investee of the Company’s Sub-subsidiary	Subsidiary of the Company	Subsidiary of the Company	Parent company of the company	(Note 9)	(Note 9)	Parent company of the company	Subsidiary of the Company	The same ultimate parent company
	Company name	Yieh Phui (China) Technomaterial Co., Ltd.	Shin Yang Steel Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kingsgarden International Co., Ltd.	Yieh Phui Enterprise Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Yieh Phui (Hong Kong) Holdings Limited
	Endorser/ guarantor	Yieh Phui Enterprise Co., Ltd. (Note 1)			Shin Phui Steel Corporation (Note 2)	Kings Garden International Co., Ltd. (Note 3)	Great Emperor Hotel Co., Ltd. (Note 4)	Shin Yang Steel Co., Ltd. (Note 6)	Yieh Phui (China) Technomaterial Co., Ltd. (Note 5)	Champion Logistic Inc. (Note 7)
	No.	0			1	2	3	4	5	6

－224－

－225－

	Note
As of December 31, 2019	Fair value	7,564	2,986	4,903	3,007	5,001	284,110	307,571	10,004	210,573	220,577
	Ownership (%)	�	�	�	�	�	�		�	�	�
	Carrying value	7,564	2,986	4,903	3,007	5,001	284,110	307,571	10,004	210,573	220,577
	Shares (in thousands)	25	300	500	0.3	500	26,275		10,000	19,706
	General ledger account	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 - noncurrent	Financial assets at fair value through profit or loss - noncurrent
	Relationship with the securities issuer	None	None	None	None	None	An investee accounted for using equity method	Total	None	An investee accounted for using equity method	Total
	Marketable securities	Fund/ Schroder 2023 Maturity Asian Emerging Bond Fund	Fund/ Capital Global Financial Bond Fund	Fund/ Fubon 3-Year Maturity Asia USD Bond Fund	Fund/ NN (L) Emerging Markets Debt (Hard Currency)	Fund/FSITC Global Wealthy Nations Bond Fund	Preferred stock/ Eliter International Corp.- Preferred stock D		Financial bonds/ Bank of Panhsin Sinsing Branch – 2014 First term subordinated financial bonds	Preferred stock/ Eliter International Corp.- Preferred stock E
	Securities held by	Yieh Phui Enterprise Co., Ltd.

－226－

Note
Fair value	50,618	116,234	17,155	5,569	41,042	6,674	94,155	5,481	535	7,398	315,349	��	��	704,405	�	�	21,592	16,014
Ownership (%)	3.60%	15.49%	6.42%	4.20%	0.17%	0.91%	4.82%	3.00%	0.96%	0.79%	13.68%	2.41%	�		�	0.73%	�	�
Carrying value	50,618	116,234	17,155	5,569	41,042	6,674	94,155	5,481	535	7,398	315,349	��	��	704,405	�	�	21,592	16,014
Shares (in thousands)	1,800	15,187	1,693	701	4,367	1,100	200	150	24	1,000	20,528	��	��		1	17	1,997	1,498
General ledger account	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent	Financial assets at fair value through other comprehensive income or loss - noncurrent		Financial assets at fair value through profit or loss - current	Financial assets at fair value through other comprehensive income - noncurrent	Financial assets at fair value through profit or loss - current	Financial assets at fair value through profit or loss - noncurrent
Relationship with the securities issuer	Related party in substance	Related party in substance	None	None	None	None	Related party in substance	Director of the entity is the Company’s director	None	None	Related party in substance	None	None	Total	None	None	An investee of the Parent Company under equity method.	An investee of the Parent Company under equity method.
Marketable securities	Stock/ TaiwanVes-Power Co., Ltd.	Stock/ New Spring Construction Corp.	Stock/ Ascentke Venture Capital Corp.	Stock/ Taiwan Implant Technology Company, Ltd.	Stock/ Sunny Bank	Stock/ Universal Venture Capital Investment Co., Ltd.	Stock/ Yieh Corporation Limited	Stock/ Pacific Harbor Stevedoring Corporation	Stock/ ImageDJ Software Corp.	Stock/ Chao-Feng Venture Capital Co., Ltd.	Stock/ Skylark International Hotel Co.,Ltd.	Stock/ Neolink Capital Corp.	Stock/ Asia Pacific Telecom Co., Ltd.		Stock/ SEE Corporation None Financial assets at fair value through profit	Stock/ Rodan (Taiwan) Ltd.	Preferred stock/ Eliter International Corp.- Preferred stock D	Preferred stock/ Eliter International Corp.- Preferred stock E
Securities held by	Yieh Phui Enterprise Co., Ltd.														Worthing Honor Holdings Ltd.	EMMT Systems Corporation	Kuo Chang Enterprise Co., Ltd.

－227－

Note
Fair value	6,910	5,124	4,283	6,051	2,002	1,991	2,000	995	64,143	81,465	47,574	5,481	2,986
Ownership (%)	�	�	�	�	�	�	�	�	�	�	�	3.00%	�
Carrying value	6,910	5,124	4,283	6,051	2,002	1,991	2,000	995	64,143	81,465	47,574	5,481	2,986
Shares (in thousands)	639	479	221	20	154	200	200	100	5,934		4,450	150	300
General ledger account	Financial assets at fair value through profit or loss - current	Financial assets at fair value through profit or loss - noncurrent	Financial assets at fair value through 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 - noncurrent	Financial assets at fair value through other comprehensive income - noncurrent	Financial assets at fair value through profit or loss - current
Relationship with the securities issuer	An investee of the Parent Company under equity method.	An investee of the Parent Company under equity method.	None	None	None	None	None	None	An investee accounted for using equity method		An investee accounted for using equity method	Director of the entity is the Company’s chairman	None
Marketable securities	Preferred stock/ Eliter International Corp.- Preferred stock D	Preferred stock/ Eliter International Corp.- Preferred stock E	Fund/ SinoPac CSI 300 Dividend Index Fund	Fund/ Schroder 2023 Maturity Asian Emerging Bond Fund	Fund/ Allianz Global Investors All Seasons Harvest Fund of Bond Funds	Fund/ Capital Global Financial Bond Fund	Fund/ FSITC Global Wealthy Nations Bond Fund	Fund/ Amundi TW - Emerging Markets High Yield Bond Fund	Preferred stock/Eliter International Corp.- Preferred stock D	Total	Preferred stock/Eliter International Corp.- Preferred stock E	Pacific Harbor Stevedoring Corporation	Fund/ Capital Global Financial Bond Fund
Securities held by	United Brightening Development Corp.		Yieh Hsing Enterprise Co., Ltd										Kings Garden International Co., Ltd.

－228－

Ending balance	Amount	412,991	2,036,058
	Number of shares	13,000	206,000
Disposal	Gain (loss) on disposal	�	�
	Book value	752,438 (Note 1)	�
	Selling price	�	�
	Number of shares	24,000	�
Addition	Amount	�	636,204 (Note 2)
	Number of shares	�	64,000
Beginning balance	Amount	1,165,429	1,399,854
	Number of shares	37,000	142,000
	Relationship with the investor	Subsidiary of the Company	Investee of the Company’s Sub- subsidiary
	Counterparty	Proceeds from Capital reduction	Capital increase by cash
	General ledger account	Investments accounted for using equity method	Investments accounted for using equity method
	Marketable securities	Champion Logistic Inc.	Kings Garden International Co., Ltd.
	Investor		Yieh Phui Enterprise Co., Ltd.

－229－

	Other terms	None	None
	Purpose of acquisition	To build a boutique shopping mall	For development of an international hotel
	Price reference	Determined at prices agreed on by both parties upon negotiation or through price comparison with reference to appraisal reports issued by professional appraisal institutions
Prior transaction of related counterparty	Amount	�
	Transfer Date	�
	Relationship	�
	Owner	�
	Relationship with the seller	Related party in substance, Parent company, ultimate parent company
	Counterparty	New Spring Construction Corp., Taiwan Cement Corporation, Yieh Hsing Enterprise Co., Ltd. and Yieh Phui Enterprise Co., Ltd. Union Engineering Co., Ltd. Teco Electric & Machinery Co., Ltd., Hsin.Kao Gas Co,. Ltd. etc.
	Payment terms	4,561,463	4,163,484
	Transaction amount	5,399,904	5,917,200
	Transaction date	January 28, 2014	~ November 29, 2019
	Real estate	Construction of commercial building at E-da Asia Plaza
	Company name	Kings Garden International Co., Ltd.	Great Emperor Hotel Co., Ltd.

－230－

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Disposal of Individual Real Estate Properties at Prices of at Least NT$300 Million or 20% of the Paid-in Capital For The Year Ended December 31, 2019 Unit: Thousands of NT Dollars/Foreign Currency	Other terms	None	(Note 1):. Please refer to Note 6.34
	Price reference	Euro-Asia Asset Evaluation Group
	Reason for disposal	Enrich the working capital of the company
	Relationship with the seller	�
	Counterparty	Sanxin Industrial Co., Ltd.
	Gain (loss) on disposal	401,121 (Note 1)
	Status of collection of proceeds	Fully recovery
	Transaction amount	620,868 (Note 2)
	Carrying value	219,747
	Acquisition date	June 2006- May 2019
	Transaction date or date of the event	November 8, 2018
	Real estate	No.0001, 0002, Pingbei Section, Jiadong Township, No.0001- 0027, Pingnan Section, Jixiang Township, and No. 25, Pingnan Section, Minxiang Township
	Real estate disposed by	Yieh Phui Enterprise Co., Ltd.

－231－

	Note	�	�	Accounts receivable	Accounts receivable	Accounts receivable	Accounts payable	�	Accounts receivable
Notes/accounts receivable (payable)	Percentage of total notes/accounts receivable (payable)	�	�	0.14%	12.50%	2.37%	39.91%	�	2.31%
	Balance	�	�	1,900	169,307	31,979	333,615	�	31,143
Differences in transaction terms compared to third party transactions	Credit term	�	�	�	�	�	�	�	�
	Unit price	�	�	�	�	�	�	�	�
Transaction	Credit term	T/T or Sight L/C before goods acceptance.	T/T or Sight L/C before goods acceptance.	1-2 months	1-2 months	1-2 months	1-2 months	Pursuant to the agreement	1-2 months
	Percentage of total purchases (sales)	4.73%	0.99%	5.34%	5.82%	3.58%	1.58%	3.88%	0.96%
	Amount	996,124	208,746	1,332,730	1,452,611	893,720	331,794	969,047	239,462
	Purchases (sales)	Purchases	Purchases	Sales	Sales	Sales	Purchases	Sales	Sales
	Relationship with the counterparty	Related party in substance	An investee accounted for using equity method	Related party in substance	An investee accounted for using equity method	Subsidiary of the Company		Related party in substance	Subsidiary of the Company
	Counterparty	Yieh Hong Enterprise Co., Ltd.	Yieh United Steel Corporation	Yieh Corporation Limited	Asiazone Co., Limited	Shin Yang Steel Co., Ltd.		New Spring Construction Corp.	Shin Phui Steel Corporation
	Purchaser/ seller	Yieh Phui Enterprise Co., Ltd.

－232－

	Note	Accounts receivable	Accounts receivable	Accounts receivable	Accounts receivable	Accounts payable
Notes/accounts receivable (payable)	Percentage of total notes/accounts receivable (payable)	1.26%	29.10%	70.90%	42.69%	93.13%
	Balance	17,006	173,026 (USD 5,771)	421,557 (USD 14,061)	195,011 (RMB 45,378)	20,524
Differences in transaction terms compared to third party transactions	Credit term	�	�	�	�	�
	Unit price	�	�	�	�	�
Transaction	Credit term	Galvanized steel coils�payment periods were within one to two months. carbon steel: payment term is monthly, and closes in 15 days. Project is contractually agreed	The agreed period is 3 months, but a grace period may be granted by mutual agreement.	The agreed period is 3 months, but a grace period may be granted by mutual agreement.	1-2 months	T/T or Sight L/C before goods acceptance.
	Percentage of total purchases (sales)	0.81%	34.95%	65.05%	15.86%	77.92%
	Amount	202,376	722,092 (USD 23,449)	1,344,148 (USD 43,649)	1,421,521 (RMB 318,103)	4,313,858
	Purchases (sales)	Sales	Sales	Sales	Sales	Purchases
	Relationship with the counterparty	An investee accounted for using equity method	Related party in substance	An investee of the Parent Company under equity method.	Subsidiaries	An investee accounted for using equity method
	Counterparty	Yieh United Steel Corporation	Fujian Lian Wei Logistics Co., Ltd.	Yieh United Steel Corporation	Tianjin Lianfa Precision Steel Corporation	Yieh United Steel Corporation
	Purchaser/ seller	Yieh Phui Enterprise Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited		Yieh Phui (China) Technomaterial Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.

－233－

Allowance for doubtful accounts	Allowance for doubtful accounts	�	�	�	�	�	�	�	�
Amount collected subsequent to the end of the reporting period (Note 2)		151,110	USD 9,945	USD 5,000	�	333,615	�	RMB 45,186	�
Overdue receivables	Action taken	�	�	�	�	�	�	�	�
	Amount	�	�	�	�	�	�	�	�
	Turnover rate	5.08	(Note 1)	2.60	4.90	2.00	(Note 1)	6.50	(Note 1)
	Ending balance	169,307	2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	173,026 (USD 5,771)	421,557 (USD 14,061)	333,615	107,438 (RMB 25,000)	195,011 (RMB 45,378)	134,910 (USD 4,500)
	Relationship with the counterparty	Affiliated enterprises	Subsidiaries	Related party in substance	An investee of the Parent Company under equity method.	Parent company	Subsidiaries		Subsidiaries
	Counterparty	Asiazone Co., Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Fujian Lian Wei Logistics Co., Ltd.	Yieh United Steel Corporation	Yieh Phui Enterprise Co., Ltd.	Tianjin Lianfa Precision Steel Corporation		Yieh Phui (Hong Kong) Holdings Limited
	Creditor	Yieh Phui Enterprise Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited			Shin Yang Steel Co., Ltd.	Yieh Phui (China) Technomaterial Co., Ltd.		Good Honor Holdings Ltd.

－234－

Percentage of consolidated total operating revenues or total assets (Note 3)	��	��	��	��	��	��	��	��	��	0.23%	0.13%
Transaction terms	�	�	�	(Note 5)		�	�	�	�	�	�
Amount	239,462	73,100	893,720	147,277	111,655	331,794	333,615	2,681,625 (RMB 20,160) (USD 81,740) ��	�� ��	195,011 (RMB 45,378)	107,438 (RMB 25,000)
Account	Sales revenue	Right-of-use asset	Sales revenue	Sales revenue	Construction-in-progress	Sales revenue	Accounts receivable	Long-term receivables	Sales revenue	Accounts receivable	Long-term receivables
Relationship (Note 2)	1		1	1		2		1	1
Counterparty	Shin Phui Steel Corporation		Shin Yang Steel Co., Ltd.	Kings Garden International Co.,Ltd. and Great Emperor Hotel Co., Ltd.		Yieh Phui Enterprise Co., Ltd.		Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation
Company name	Yieh Phui Enterprise	Co., Ltd.				Shin Yang Steel Co., Ltd.		Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.
Number (Note 1)	0					1		2	3

－235－

0.16%	0.08%	0.07%	3.01%	2.92%	0.10%	0.09%
�	�	�	(Note 4)	(Note 4)	�	�
134,910 (USD 4,500)	65,956 (USD 2,200)	58,080	2,522,985	2,445,476	79,906	76,564
Long-term receivables	Long-term receivables	Other receivables	Land	Land	Construction in progress	Construction in progress
3	3	1	2	2	1	1
Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (Hong Kong) Holdings Limited	Lien-Hsin steel Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.	Kings Garden International Co.,Ltd.	Great Emperor Hotel Co., Ltd.
GOOD HONOR HOLDINGS LTD.	APPLIED WIRELESS IDENTIFICATIONS	Hong Yuh Assets Management Co.,Ltd.	Kings Garden International Co., Ltd.	Great Emperor Hotel Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.
4	5	6	7	8	9

－236－

－237－

	Note
	Share of Profit/Loss of Investee	(524,935)	23,249	(47,417)	(353,733)	1,690	(83,794)	(80,903)	7,830	23,482	(83,768)	11,783	4,598
	Net Income (Loss) of the Investee	(524,935)	24,497	(144,372)	(642,188)	14,953	(294,609)	(84,660)	7,048	102,117	(84,580)	35,920	4,151
Shares held as the period-end	Carrying Value	8,390,606	412,991	2,666,548	1,207,867	1,221,462	1,196,618	1,587,809	916,528	614,711	1,080,043	649,497	217,565
	Percentage of Ownership	100%	89.66%	32.84%	56.98%	11.30%	28.44%	95.56%	100%	23%	99.04%	32.80%	100%
	Shares (in thousands)	233,500	13,000	283,584	302,376	39,553	209,619	152,972	87,000	51,124	100,487	15,090	20,715
Initial investment amount	December 31, 2018	7,455,887	1,282,475	2,833,595	2,246,530	1,453,572	1,868,658	1,836,383	870,000	422,605	1,256,726	595,424	295,736
	December 31, 2019	7,455,887	504,629	2,833,595	2,252,564	1,453,572	2,096,196	1,836,383	870,000	422,605	1,287,428	595,424	185,736
	Main business activities	Investment	Investment	Construction of buildings	Wire rods trading	Steel trading	Leisure development	Technical consultation for steel products manufacturing	Steel products related business	Trading & manufacturing	Wholesale of hardware	Steel trading	Trading of steel products
	Location	Hong Kong	Samoa	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Hong Kong	Kaohsiung City
	Investee	Yieh Phui (Hong Kong) Holdings Limited	Champion Logistic Inc.	Eliter International Corp.	Yieh Hsing Enterprise Co., Ltd.	Tangeng Iron Works Co., Ltd.	E-Da Development Corp.	United Brightening Development Corp.	Shin Yang Steel Co., Ltd.	Yieh Mau Corp.	Kuo Chang Enterprise Co., Ltd.	Asiazone Co., Limited	Shin Phui Steel Corporation
	Investor	Yieh Phui Enterprise Co., Ltd.

－238－

	Note
Share of	Profit/Loss of Investee	178	76,087	2,805	6,130	(1,545)	(8,606)	3	(72)	13	(878)	�	(197)
Net Income	(Loss) of the Investee	178	97,422	2,805	7,046	(4,414)	(50,367)	16	(381)	13	(1,868)	(1,760)	(1,036)
Shares held as the period-end	Carrying Value	225,720	432,637	159,972	36,841	12,728	9,743	13,377	�	2,764	3,861	�	42,837
	Percentage of Ownership	100%	78.10%	100%	86.99%	35%	17.09%	19%	�	100%	47%	14.63%	19%
	Shares (in thousands)	19,313	33,187	46	2,814	1,400	1,845	1,349	�	100	�	1,170	7,410
Initial investment amount	December 31, 2018	295,809	308,075	14,723	148,609	14,000	36,086	9,500	22,800	6,672	8,027	11,700	74,100
	December 31, 2019	265,809	308,076	14,723	148,610	14,000	49,755	20,900	�	6,672	8,027	11,700	74,100
	Main business activities	Investment	Manufacturing and marketing of military specification printed circuit boards	Investment	Telecommunication	Security	Bus transportation	Bus transportation	Cultural creativity	Investment	Steel trading	Hotel industry	Entertainment industry
	Location	Kaohsiung City	Taichung City	British Virgin Islands	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	British Virgin Islands	Japan	Kaohsiung City	Kaohsiung City
	Investee	Sin Bang Investment & Development Co., Ltd.	EMMT Systems Corporation	Good Honor Holdings Ltd.	Gen-Wan Technology Corp.	Cheng Shin Security Co., Ltd.	E-Da Bus Transportation Co., Ltd.	E-DA Tour Bus Co., Ltd.	E-Da Cultural Creative Industry Co., Ltd.	Worthing Honor Holdings Ltd.	E United Japan Co., Ltd.	Skylark Hot Spring & Resort Corp.	E-Da Entertainment Co., Ltd.
	Investor	Yieh Phui Enterprise Co., Ltd.

－239－

	Note	(Note 1)	(Note 1)	(Note 1)
Share of	Profit/Loss of Investee	(826)	(63)	(781,228)	(108,274)	�	(51,712)	(13)	38,734	(7,211)	�	(7,682)	(1,946,275)
Net Income	(Loss) of the Investee	5,938	(6)	(3,046,907)	(135,343)	(12,204)	(64,640)	(69)	38,734	(18,300)	�	(17,560)	(4,789,361)
Shares held as the period-end	Carrying Value	310,935	4,743	3,193,845	549,734	�	359,554	3,705	53,286	1,453,417	133,597	2,036,058	29,201,599
	Percentage of Ownership	44.56%	45%	25.62%	80%	49%	80%	19%	100%	41.18%	�	49.28%	�
	Shares (in thousands)	64,045	1,042	671,291	119,920	1,470	16,560	380	1	147,000	�	206,000	�
Initial investment amount	December 31, 2018	321,216	5,050	4,923,615	1,064,000	10,393	507,342	3,800	292	1,215,400	�	1,462,600	32,881,400
	December 31, 2019	321,216	5,050	4,995,078	1,167,200	10,393	507,342	3,800	292	1,514,100	133,597	2,121,800	33,496,259
	Main business activities	Investment	Investment	Steel products related businesses	Management service	Entertainment industry	Investment	Manufacturer of food additives	Trading of steel products	Hotel industry	Hotel industry	Leasing, sales, and development of residential and commercial buildings, department stores
	Location	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Hong Kong	Kaohsiung City	U.S.	Kaohsiung City	Kaohsiung City	Kaohsiung City
	Investee	Li Hui Development Co., Ltd.	Ji Chang Enterprise Co., Ltd.	Yieh United Steel Corporation	Hong Yuh Assets Management Co.,Ltd.	E-Da Visual Effects Company Limited.	Lian So(H.K) Co., Limited	E-Da Health Biotechnology Co., Ltd.	Yieh Phui America Inc.	Great Emperor Hotel Co., Ltd.	Prepayment for stock subscription - Great Emperor Hotel Co., Ltd.	Kings Garden International Co., Ltd.	Total
	Investor	Yieh Phui Enterprise	Co., Ltd.

－240－

	Note		(Note 1)
Share of	Profit/Loss of Investee	218	(4,055)	(3)	(2)	7,286	256	40,673	1,310	(13) (USD 1)
Net Income	(Loss) of the Investee	513	(3,046,907)	(18,300)	(17,560)	97,422	513	44,465	3,022	(13) (USD 1)
Shares held as the period-end	Carrying Value	3,912	14,734	494	494	41,429	4,597	193,209	52,806	17,759 (USD 592)
	Percentage of Ownership	42.53%	0.12%	0.01%	0.01%	7.48%	49.97%	91.47%	43.33%	100%
	Shares (in thousands)	3,830	3,178	50	50	3,178	4,500	40,488	5,200	3,030
Initial investment amount	December 31, 2018	37,492	24,562	515	515	27,630	45,000	242,545	54,960	77,070 (USD 2,509)
	December 31, 2019	37,492	24,562	515	515	27,630	45,000	242,545	54,960	75,220 (USD 2,509)
	Main business activities	RADIO	Steel products related businesses	Hotel industry	Leasing, sales, and development of residential and commercial buildings, department stores	Manufacturing and marketing of military specification printed circuit boards	RADIO	RFID	Manufacturing of computer and peripherals	Telecommunications equipment wholesale
	Location	Taichung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Taichung City	Taichung City	San Francisco, US	Taipei City	Kaohsiung City
	Investee	Groupco Technology Inc.	Yieh United Steel Corporation	Great Emperor Hotel Co., Ltd.	Kings Garden International Co., Ltd.	EMMT Systems Corporation	Groupco Technology Inc.	Applied Wireless Identifications Group, Inc.	UniPattern Corporation	AWID Asia Co., Ltd.
	Investor	Shin Phui Steel Corporation				Gen-Wan Technology Corp.	EMMT Systems Corporation			Applied Wireless Identifications Group, Inc.

－241－

Note	Note	(Note 1)		(Note 1)				(Note 1)
Share of Profit/Loss of Investee		(2,799)	309	(72,514)	(3,605)	911	(110)	(74,216)	1,248	1,369	(1,153)
Net Income (Loss) of the Investee		(3,046,907)	14,953	(3,046,907)	(144,372)	14,953	(110)	(3,046,907)	24,497	14,953	(144,372)
Shares held as the period-end	Carrying Value	10,181	223,089	263,471	202,755	957,014	276,304	269,656	47,653	1,418,042	64,890
	Percentage of Ownership	0.08%	2.06%	2.17%	2.50%	6.09%	100%	2.22%	10.34%	9.16%	0.8%
	Shares (in thousands)	2,195	7,224	56,817	21,558	21,328	30,400	58,151	1,500	32,050	6,898
Initial investment amount	December 31, 2018	17,385	265,482	439,197	219,977	786,714	341,992	449,508	49,376	1,177,838	70,393
	December 31, 2019	17,385	265,482	439,197	219,977	786,714	341,992	449,508	49,376	1,177,838	70,393
	Main business activities	Steel products related businesses	Steel trading	Steel products related businesses	Construction of buildings	Steel trading	Investment	Steel products related businesses	Investment	Steel trading	Construction of buildings
	Location	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Samoa	Kaohsiung City	Kaohsiung City
	Investee	Yieh United Steel Corporation	Tangeng Iron Works Co., Ltd.	Yieh United Steel Corporation	Eliter International Corp.	Tangeng Iron Works Co., Ltd.	Chao Ying Investment Development Co., Ltd.	Yieh United Steel Corporation	Champion Logistic Inc.	Tangeng Iron Works Co., Ltd.	Eliter International Corp.
	Investor	Shin Yang Steel Co., Ltd.	Sin Bang Investment & Development Co., Ltd.	Kuo Chang Enterprise Co.,	Ltd.		United Brightening	Development Corp.

－242－

	Note
Share of	Profit/Loss of Investee	380	(58,045)	(251)	(16,842)	(19,095)	�	(409)	�	(2,256) (USD 73)	1,744 (USD 57)	(54,112) (USD 1,757)
Net Income	(Loss) of the Investee	14,953	(112,157)	(2,507)	(52,570)	(25,460)	�	(409)	�	(2,507) (USD 81)	1,744 (USD 57)	(112,157) (USD 3,642)
Shares held as the period-end	Carrying Value	274,785	376,059	682	79,107	(27,221)	69,365	76,668	�	6,134 (USD 205)	14,967 (USD 499)	409,308 (USD 13,653)
	Percentage of Ownership	2.54%	47.88%	10%	19%	75%	�	100%	�	90%	100%	52.12%
	Shares (in thousands)	8,898	1,640	0.05	3,319	381	�	55	�	0.45	100	1,785
Initial investment amount	December 31, 2018	336,957	514,670	1,633	100,303	9,371	�	38,542	50,844	13,822 (USD 450)	92,145 (USD 3,000)	456,118 (USD 14,850)
	December 31, 2019	336,957	514,670	1,633	100,303	9,371	69,365	89,386	�	13,491 (USD 450)	2,998 (USD 100)	535,143 (USD 17,850)
	Main business activities	Steel trading	Metal manufacturing industry	Metal manufacturing industry	Nickle mining	Nickle mining	Nickle mining	Nickle mining	Nickle mining	Metal manufacturing industry	Trading business	Metal manufacturing industry
	Location	Kaohsiung City	Indonesia	Indonesia	Indonesia	Indonesia	Indonesia	Indonesia	Indonesia	Indonesia	Hong Kong	Indonesia
	Investee	Tangeng Iron Works Co., Ltd.	Lien-Hsin Steel Co., Ltd.	Lien-Sheng Steel Co., Ltd.	Lien-Hung Mining Co., Ltd.	Lien-Heng Mining Co., Ltd.	Prepayment of stock subscription - Lien Heng Mining Co., Ltd.	Asiamax Mining Indonesia	Prepayment for stock subscription - Asiamax Mining Indonesia	Lien-Sheng Steel Co., Ltd.	Lian Yang (Hong Kong) Trading Limited	Lien-Hsin Steel Co., Ltd.
	Investor	Chao Ying Investment Development Co., Ltd.	Hong Yuh Assets	Management Co., Ltd.						Lian So (H.K) Co., Limited

－243－

Note	Note			(Note 3)	(Note 3)					(Note 1)
Share of Profit/Loss of Investee		(71,800)	(6,365)	(11,293)	(10,108)	6,066	(441)	(10,708)	(17,505)	(3,244)	(14)	9,603	(815)
Net Income (Loss) of the Investee		(52,570)	(25,460)	(18,300)	(17,560)	17,975	(4,414)	(144,372)	(294,609)	(3,046,907)	(69)	13,719	(815)
Shares held as the period-end	Carrying Value	351,857	(9,074)	� (Note 2)	� (Note 2)	92,117	3,637	602,412	251,625	11,790	3,704	12,249	59,185
	Percentage of Ownership	81%	25%	58.81%	50.71%	33.75%	10%	7.42%	5.94%	0.1%	19%	70%	100%
	Shares (in thousands)	16,142	127	209,950	211,950	�	400	64,043	43,791	2,542	380	700	6,000
Initial investment amount	December 31, 2018	453,419 (USD14,762)	20,994 (USD 684)	2,099,500	2,119,500	108,153	4,000	639,772	390,380	20,204	3,800	7,000	�
	December 31, 2019	442,565 (USD14,762)	20,506 (USD 684)	2,099,500	2,119,500	107,474	4,000	639,772	437,915	20,204	3,800	7,000	60,000
	Main business activities	Nickle mining	Nickle mining	Hotel industry	Leasing, sales, and development of residential and commercial buildings, department stores	Scrap steel recycling	Security	Construction of buildings	Leisure development	Steel products related business	Manufacturer of food additives	Leasing, selling and development of residential and commercial buildings	Daily necessities, cosmetics wholesaler
	Location	Indonesia	Indonesia	Kaohsiung City	Kaohsiung City	Virginia, US	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City	Kaohsiung City
	Investee	Lien-Hung Mining Co., Ltd.	Lien-Heng Mining Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kings Garden International Co., Ltd.	United Winner Metals L.P	Cheng Shin Security Co., Ltd.	Eliter International Corp.	E-Da Development Corp.	Yieh United Steel Corporation	E-Da Health Biotechnology Co., Ltd.	Yi Hua International Co., Ltd	Hua Li International Co., Ltd.
	Investor	Lien-Hsin steel Co., Ltd.		Yieh Hsing Enterprise Co.,	Ltd.							Kings Garden International Co., Ltd.

－244－

－245－

Accumulated Inward	Remittance of Earnings as of December 31, 2019	�	�	�	�	�
Carrying	Amount as of December 31, 2019	8,416,022	45,101	(134,207)	2,295	3,513
	Share of Profit/Loss (Note 2)	(519,628) (2) 3	506 (2) 3	(50,533) (2) 2	(165) (2) 2	(2,210) (2) 2
Ownership held by the	Company (direct or indirect) (%)	100%	100%	100%	100%	100%
	Net Income (Loss) of the Investee	(519,628)	506	(50,533)	(165)	(1,210)
Accumulated Outflow of	Investment from Taiwan as of December 31, 2019	7,000,330 (USD 233,500)	�	�	20,986 (USD 700)	8,994 (USD 300)
Investment Flows	Inflow	�	�	�	�	�
	Outflow	�	�	�	�	�
Accumulated	Outflow of Investment from Taiwan as of January 1, 2019	7,000,330 (USD 233,500)	�	�	20,986 (USD 700)	8,994 (USD 300)
	Investment method (Note 1)	(2) a	(2) a (Note 4)	(2) a (Note 5)	(1)	(1)
	Total Amount of Paid-in Capital	7,081,276 (USD 236,200) (Note 6)	42,975 (RMB 10,000)	404,730 (USD 13,500)	20,986 (USD 700)	8,994 (USD 300)
	Main business activities	Manufacturing and marketing of pickled, cold rolled, galvanized and pre-painted steel coils	Trading of steel products	Manufacturing and marketing of special high grade alloy	Telecommunications equipment wholesale	Telecommunications equipment wholesale
	Investee in Mainland China	Yieh Phui (China) Techno material Co., Ltd.	Changshou ChangHuei Trading Co.	Tianjin Lianfa Precision Steel Corporation	AWID Sanghai Co., Ltd.	AWID Changshou Co., Ltd.
	Name of Investor	Yieh Phui Enterprise Co., Ltd.			AWID Asia Co., Ltd.

－246－

Accumulated Investment in Mainland Investment Amounts Authorized by U	Investee in China Investment pp	Investor Mainland China as of December 31, 2019 Commissio er	Yieh Phui Enterprise Co., Ltd. Yieh Phui (China) Technomaterial Co., Ltd. 7,000,330 (USD 233,500) 7,081,276 (USD 236,200) 15,510,139	AWID Sanghai Co., Ltd. 20,986 (USD 700) 20,986 (USD 700) 80,000	AWID Asia Co., Ltd.	AWID Changshou Co., Ltd. 8,994 (USD 300) 8,994 (USD 300) 80,000	(Note 1): Investment methods are classified into the following three categories.	(1) Directly invest in a company in Mainland China.	(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.	a. Yieh Phui (Hong Kong) Holdings Limited	(3) Others	(Note 2): Investment gain or loss recognized in the current period:	(1) Please specify if it is in the preparation stage without any investment gains or losses generated.	(2) Recognition basis of investment profit or loss is categorized into three types, which shall be identified.	1. Financial statements audited and certified by the international CPA firms that cooperates with ROC CPA firms.	2. Financial statements reviewed, or audited and certified by the CPA firm of the parent company in Taiwan.	3. Others	(Note 3): The figures in the Table shall be expressed in New Taiwan Dollars. Carrying amount at the end of the period is converted using the exchange rate on the reporting date (USD:NTD 1:29.98;	RMB: NTD 1:4.2975). Investment gain or loss recognized in the current period is converted using the average exchange rate in from January 1 to December 31, 2019 (USD: NTD	1:30.7946; RMB: NTD 1:4.4784).	(Note 4): Yieh Phui (China) Technomaterial Co., Ltd. invests in Changshou ChangHuei Trading Co. with equity funds of RMB 10 million. As of December 31, 2019, accumulated investment	amounted to RMB 10 million.	(Note 5): The Company originally holds 100% of Tianjin Lianfa Precision Steel Corporation Beneficiary (paid-in capital equals USD 13,500 thousand) through its holding in Hsing Jui Investments	Limited. It transfered its ownership to Yieh Phui (China) Technomaterial Co., Ltd. at RMB 20,000 thousand in July 2015. The said proceed, net of tax, of RMB 19,990 thousand	(equivalent to USD 3,213 thousand) has been transferred back to the Company’s account in Taiwan.	(Note 6): Yieh Phui (China) Technomaterial Co., Ltd. recapitalized its retained earnings of USD 2,700 thousand in April 2016.

－247－

－248－

14. Segment Information

(1)General information

For the purpose of management, the Group separates its operations based on business unit and has four reportable segments as below:

Business Unit Yieh Phui: Primarily engaging in manufacturing and marketing of coated steel and manufacturing and installation of crane.
Business Unit Yieh Hsing: Primarily engaging in manufacturing and marketing of steel pipe, steel sheet, and wire rods.
Business Unit Yieh Phui (China, including Yieh Phui Hong Kong): Primarily engaging in manufacturing and marketing of coated steel.
Other business units: Primarily engaging in manufacturing and marketing of steel, iron, and military supplies, wholesale of telecommunication equipment, and investment business.

(2) Measurement basis

Management monitors the operation results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss before tax and is measured consistently with profit or loss before tax in the consolidated financial statements. Furthermore, because the information of assets and liabilities is not reported to the chief operating decision maker for operation decision making, segment assets and liabilities are not disclosed. The accounting policies for reportable segments are the same as Group’s accounting policies described in Note 2.

(3) Segment information details:

－249－

Year 2019 Sales from external customers Sales among intersegments Total sales Operating loss Non-operating income and expenses Loss before income tax Income tax benefit Net loss Total assets Total liabilities Year 2018 Sales from external customers Sales among intersegments Total sales Operating income Non-operating income and expenses Income before income tax Income tax expense Net income Total assets Total liabilities	Business Unit Yieh Phui $23,892,475 1,138,427 $25,030,902 $(519,522) Business Unit Yieh Phui $29,815,797 1,223,319 $31,039,116 $898,759	Business Unit Yieh Hsing $6,552,804 � $6,552,804 $(477,681) Business Unit Yieh Hsing $8,741,762 � $8,741,762 $140,202	Business Unit Yieh Phui (China) $23,326,516 1,421,521 $24,748,037 $138,186 Business Unit Yieh Phui(China) $28,938,752 1,389,628 $30,328,380 $266,666	All other business units $6,063,079 452,295 $6,515,374 $(37,165) All other business units $6,459,528 140,371 $6,599,899 $121,917	Elimination $(147,277) (3,012,243) $(3,159,520) $989 Elimination $(99,650) (2,753,318) $(2,852,968) $30,966	Total
						$59,687,597 �
						$59,687,597
						$(895,193) (1,090,273)
						$(1,985,466) 285,181
						$(1,700,285)
						$83,752,862
						$56,302,942
						Total
						$73,856,189 �
						$73,856,189
						$1,458,510 (1,102,964)
						$355,546 (90,602)
						$264,944
						$87,061,593
						$57,419,961

(4) Information on product and service:

Revenue derived from main goods and services provided by the Company’s continuing operations are classified by business segment. Please refer to disclosure of revenue by business segment.

－250－

(5) Geographical information:

Geographical information:
Area Sales from external customers: Taiwan US Asia Europe Others Total Area Non-current assets: Taiwan China Others Total	Year Ended December 31
	2019 2018 $18,261,199 $18,341,615 5,767,800 10,104,815 28,877,668 36,017,634 6,672,707 9,230,750 110,223 161,375 $59,689,597 $73,856,189 Year Ended December 31	2018
		$18,341,615 10,104,815 36,017,634 9,230,750 161,375
		$73,856,189
	2019 $43,076,902 15,449,795 873,472 $59,400,169	2018
		$41,150,036 16,340,698 790,907
		$58,281,641

(6) Major customer information: No customer has reached the disclosure standard.

－251－

V. Parent Company Only Financial Statement for the Most Recent Fiscal Year

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Notice to Readers

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

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

－256－

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－359－

－360－

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－361－

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－365－

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－366－

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－370－

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－372－

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－377－

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－381－

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－388－

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－389－

VI. Impact on the Company's Financial Status due to Financial Difficulties Experienced by the Company and Its Affiliates: None.

－390－

Chapter 7 Review, Analysis, and Risks of Financial Status and

Performance

I. Financial Status:

Comparative analysis of financial conditions

Unit: NT$ thousands

			Unit: NT$ thousands	Unit: NT$ thousands
Year Item	2019	2018	Differences
			Amount	%
Current assets	20,910,987	25,004,843	-4,093,856	-16.37%
Non-current assets	62,841,875	62,056,750	785,125	1.27%
Total assets	83,752,862	87,061,593	-3,308,731	-3.80%
Current liabilities	27,611,293	26,727,244	884,049	3.31%
Non-current liabilities	28,691,649	30,692,717	-2,001,068	-6.52%
Total liabilities	56,302,942	57,419,961	-1,117,019	-1.95%
Total equity of owners of parentcompany	25,850,231	27,787,869	-1,937,638	-6.97%
Non-controlling interests	1,599,689	1,853,763	-254,074	-13.71%
Totalequity	27,449,920	29,641,632	-2,191,172	-7.39%
Total liabilitiesand equity	83,752,862	87,061,593	-3,308,731	-3.80%




Changes in percentage of the ratio are analyzed as follows (change of 20%): 1. There has been no significant change in thepast twophases.

－391－

II. Financial Performance

1. Comparative analysis of financial performance

Unit: NT$ thousands

Year Item	2019	2018	Increase (decrease) amount	Change ratio%
Net operatingrevenue	59,687,597	73,856,189	-14,168,592	-19.18
Operatingcost	57,138,479	67,944,988	-10,806,509	-15.90
Gross operating profit(loss)	2,549,118	5,911,201	-3,362,083	-56.88
Operatingexpenses	3,444,311	4,452,691	-1,008,380	-22.65
Operatingincome(loss)- net	-895,193	1,458,510	-2,353,703	-161.38
Non-operatingincome and expenses	-1,090,273	-1,102,964	12,691	1.15
Net income(loss)before tax	-1,985,466	355,546	-2,341,012	-658.43
Income tax expenses(gains)	-285,181	90,602	-375,783	-414.76
Current netprofit(loss)	-1,700,285	264,944	-1,965,229	-741.75
Other comprehensive income(net)	-329,270	-21,012	-308,258	1,467.06
Total comprehensive income	-2,029,555	243,932	-2,273,487	-932.02
Analysis of change in ratios:

Gross operating profit, operating net profit, pre-tax net profit and current net profit decreased: Since this year, under the influence of the world trade protectionism measures, the steel industry has been sold in the international steel market by competitive bidding, and the profit margin has been seriously compressed. In addition, the high price of raw materials has resulted in the loss of the Company's operation revenue.
Decrease in operating expenses: Because of the decrease in external sales in this period and the reduction of the anti-dumping tax rate, the sales expenses decreased by NT$900,588 thousand yuan compared with the previous year.
Decrease in income tax: Decrease in income tax expenses as compared to the previous period.
Decrease in other comprehensive income: Mainly due to the disadvantages in floating exchange rate from the calculation of over sea's operation financial statements compared with the last period.
Decrease in total comprehensive income for the period: For detail, please refer to 1-4 above.

－392－

Explanation of significant changes in gross margin of main products or departments in the most recent two years
(1) The changes of gross profit in the last two years

Unit: NT$ thousands

				Unit: NT$	Unit: NT$	Unit: NT$	thousands
Year	2018			2019
Product Category	Operating revenue	Gross Profit	Gross Margin Percentage	Operating revenue	Gross Profit	Gross Margin Percentage	Change
Galvanized steel coil	31,213,055	1,789,343	5.73%	24,633,962	942,134	3.82%	-33.29%
Coated steel coil	17,617,007	1,557,601	8.84%	15,115,666	1,227,606	8.12%	-8.14%
Steel pipe	3,877,356	432,497	11.15%	3,404,323	222,293	6.53%	-41.46%
Wire	8,635,626	295,458	3.42%	6,461,125	-220,029	-3.41%	-199.53%
Others	12,513,145	1,836,302	14.67%	10,072,520	377,115	3.74%	-74.49%
Total	73,856,189	5,911,201	8.00%	59,687,597	2,549,118	4.27%	-46.64%

Details of main products with 20% change in gross margin between 2018 and 2019:

Unit: NT$ thousands/ton

	Year	2018	2019
	Item
Galvanized steel coil	Unit Cost	21.526	21.867
	UnitPrice	22.835	22.736
	Sales Volume	1,366,873	1,083,468
Steel pipe	Unit Cost	21.514	20.782
	UnitPrice	24.215	22.234
	Sales Volume	160,125	153,112
Wire	Unit Cost	19.937	23.092
	Unit Price	20.643	22.332
	Sales Volume	418,335	289,323
Others	UnitCost	14.867	16.183
	Unit Price	17.424	16.813
	Sales Volume	718,156	599,092

Unit: NT$ thousands

		Unit: NT$ thousands
sMain Products	Analyzed Items	From 2018 to 2019
Galvanized steel coil	I.Analysis ofdifferencesinoperatingrevenue
	(Q'-Q)×P	(6,471,668)
	(P'-P)×Q	(135,524)
	(P'-P)×(Q'-Q)	28,099
	P'Q'-PQ	(6,579,093)
	II.Analysis ofdifferencesinoperating costs
	(Q'-Q)×P	(6,100,668)
	(P'-P)×Q	465,249
	(P'-P)×(Q'-Q)	(96,464)
	P'Q'-PQ	(5,731,883)
	III. Gross profitchange	(847,210)

－393－

Steel pipe	I.Analysis ofdifferencesinoperatingrevenue
	(Q'-Q)×P	(169,831)
	(P'-P)×Q	(317,091)
	(P'-P)×(Q'-Q)	13,889
	P'Q'-PQ	(473,033)
	II.Analysis ofdifferencesinoperating costs
	(Q'-Q)×P	(150,887)
	(P'-P)×Q	(117,069)
	(P'-P)×(Q'-Q)	5,128
	P'Q'-PQ	(262,829)
	III. Gross profit change	(210,204)
Wire	I.Analysis ofdifferencesinoperatingrevenue
	(Q'-Q)×P	(2,663,175)
	(P'-P)×Q	706,579
	(P'-P)×(Q'-Q)	(217,905)
	P'Q'-PQ	(2,174,501)
	II.Analysis ofdifferencesinoperating costs
	(Q'-Q)×P	(2,572,058)
	(P'-P)×Q	1,320,179
	(P'-P)×(Q'-Q)	(407,135)
	P'Q'-PQ	(1,659,014)
	III. Gross profitchange	(515,487)
Others	I.Analysis ofdifferencesinoperatingrevenue
	(Q'-Q)×P	(2,074,558)
	(P'-P)×Q	(438,819)
	(P'-P)×(Q'-Q)	72,752
	P'Q'-PQ	(2,440,624)
	II.Analysis ofdifferencesinoperating costs
	(Q'-Q)×P	(1,770,117)
	(P'-P)×Q	945,421
	(P'-P)×(Q'-Q)	(156,742)
	P'Q'-PQ	(981,438)
	III. Gross profitchange	(1,459,187)

Note: P’Q’: Unit price and quantity of the most recent year

P Q : Unit price and quantity of the previous year

Reasons for difference in price and volume:

I. Galvanized steel coil:

The unit price of galvanized steel coil products in 2019 is lower than that in 2018, where it has a comparative price disadvantage of NT$135,524 thousand. In terms of cost, due to the increase of unit cost in 2019, where it has a comparative cost disadvantage of NT$465,249 thousand. As a result, the

gross profit of galvanized steel coil products in 2019 decreased by NT$847,210 thousand compared with that in 2018.

II. Steel Pipe:

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The unit price of steel pipe products in 2019 is lower than that in 2018, where it has a comparative price advantage of NT$317,091 thousand. In terms of cost, where it has a comparative cost advantage of NT$117,069 thousand in 2019 due to the decrease of unit cost. Because the range of unit cost reduced was smaller than that of unit price decrease, the operating gross profit of steel tube products in 2019 is reduced by NT$210,204 thousand compared with that in 2018.

III. Wire:

The unit selling price of wire rod products in 2019 increased compared with that in 2018, where it has a comparative price advantage of NT$706,579 thousand. In terms of cost, where it has a comparative cost disadvantage of NT$1,320,179 thousand due to the unit cost in creased in 2019 . Its range of rising unit price is smaller than that of rising unit cost, which reduces the gross profit of wire products in 2019 by NT$515,487 thousand compared with that in 2018.

IV. Others:

In 2019, the unit selling prices of other products drop compared to 2018, where it has a comparative price disadvantage of NT$422,153 thousand. In terms of cost, 2019 is due to the increase of unit cost, where it has a comparative cost disadvantage of NT$945,421 thousand. As a result, the operating gross profit of other products in 2019 decreased by NT$1,459,187 thousand yuan compared with that in 2018.

Expected sales volume and basis 2020 Expected Sales Volume

Main Products	Quantity (tons)
Pickled steel coil	12
Rolled steel coil	290,650
Galvanized steel coil	1,418,480
Coated steel coil	556,998
Steel structure engineering	14,989
Bridge crane (number)	48
Wire	183,000
Stainless steel	74,600
Steel pipe	140,000
Others	142,071

With the 2020 production capacity planning by the sales departments of each company in assessing production capacity and sales quantity, the projected 2020 sales volume by main products are as follows:

Pickled steel coil: Besides 12 tons estimated for sales, most of the remaining steel coil is put into production line.

Rolled steel coil: Besides estimated 290,650 tons for sales, the most of the remaining steel coils are put into production.

Galvanized steel coil: Due to the serious competition in the global market, the demand for steel products is slowing down and the estimated sales volume of the steel is approximately 1,418,480 tons.

Coated steel coil: Due to the serious competition in the global market, the demand for steel products is slowing down and the estimated sales volume is approximately 556,998 tons.

Wire: Because of the serious competition in the global market, the demand for steel products is slowing down and the estimated sales volume is approximately 183,000 tons.

Steel Pipe: Because of the serious competition in the global market, the demand for steel products is slowing down and the estimated sales volume is approximately 158,600 tons.

Others: Mostly include steel structure, steel plate, stainless steel, scrap and by-products.

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III. Cash Flow:

Analysis of cash flow changes in recent years, improvement plan of liquidity shortage and analysis of cash liquidity in the next year

Analysis of changes in 2019 cash flow and improvement plans for liquidity shortage

Year Item	2019	2018	Percentage of change
Cash flow ratio	10.22%	8.74%	16.93%
Cash flow adequacyratio	43.90%	36.83%	19.20%
Cash re-investment ratio	2.99%	2.33%	28.33%
Increase in Cash Re-Investment Ratio: This was mainly due to currently increase in net cash flow from operating activities compared to the previousperiod.

Increase in Cash Re-Investment Ratio:

This was mainly due to currently increase in net cash flow from operating activities compared to the previous period.

Unit: NT$ thousands


2019				Unit: NT	$ thousands
				Remedial measures for
Cash balance at	Net operating cash	Annual cash	Cash surplus	cash inadequacy
beginning of year	flow of the year	inflow/outflow	(inadequacy)	Investment	Financial
				plans	plans
5,522,926	2,821,675	(3,320,884)	5,023,717	-	-

Analysis cash flow change in this year :
(1) Business activities: Net cash inflow of NT$2,821,675 thousand, due to the decrease of NT$2,597,867 thousand in inventory this year.
(2) Investment activities: Net cash outflow was NT$3,399,255 thousand, mainly for the purchase of real estate, plant and equipment for NT$4,251,566 thousand and the disposal of non-current assets for sale price of NT$566,075 thousand, and disposal of investment properties of NT$434,619 thousand.
(3) Fund-raising activities: Net cash outflow was NT$195,667 thousand, mainly due to the cash dividend distribution of NT$187,581 thousand.
Remedial measures for cash inadequacies: No cash inadequacies.

2. Cash liquidity analysis for the upcoming year

Unit: thousands of NT$

				Unit: thousands of NT$	Unit: thousands of NT$
Cash balance at beginning of year (1)	Expected net operating cash flow for the year (2)	Net investment and financing cash flows (3)	Expected cash surplus (inadequacy) (1)+(2)-(3)	Remedial measures for projected cash deficit
				Investment plans	Financing plans
5,023,717	1,645,491	(1,251,200)	5,418,008	-	-

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(1) Analysis of next year's cash flow changes:
1) Operating activities: As global iron and steel industry continue to growth, current operating activities is expected to generate a net cash inflow.
2) Investment activities: Net cash outflows due to extension and engagement in new constructions.
3) Fund-raising activities: Because of the repayment of bank loans, fund-raising activities resulted in net cash outflows.
(2) Remedial measures for projected cash deficit: None

IV. Major Capital Expenditures in the Most Recent Fiscal Year and Their Impact on the Company's Financial Affairs: None.

V. Investment Policies for the Most Recent Fiscal Year, the Main Reasons for the Profits or Losses Generated thereby, Improvement Plans, and Investment Plans for the Coming Year
Investment policies for last year:
- Considering long-term business development, besides keep maintaining the market advantage of our core business such as carbon steel, and maintain profitability, we also branch into stainless steel domain, increasing diversified income by adopting a diversified investment strategy.
Causes of business profit or loss in investments, and countermeasures: Yieh United Steel Corp.

Main reason for the loss in 2019:

In recent years, the global stainless steel industry has undergone structural changes, and our major competitors have carried out cross-border resource integration to cost down, so as to improve the competitive advantages. Nickel pig iron is widely used in China, even in Indonesia, where laterite is used to extract nickel and hot steel plants are used to smelt stainless steel, bringing revolutionary development to the industry. The quantity of import stainless steel embryos and hot rolling are on the rise. Because of impacted by the low price products from China and Indonesia, Taiwan's upstream enterprises are facing great competitive pressure. Yieh United Steel Corp. is the leader of domestic stainless steel supplier, and has suffered the most from the competition.

In 2019, under the impact of global protectionism on imported steel products (For example, the EU has taken defensive measures against imported steel since February 2019). A global trade war with the United States over the imposition of tariffs of 25% and 10% respectively on specific cold and hot rolled carbon steel, stainless steel and aluminum products in China in accordance with Article 232 of the Trade Expansion Act. Our market demand was impacted by the low-cost hot-rolled steel products imported from Indonesia TSI Steel ,which has exacerbated the imbalance of global steel supply and demand and also suppressed the Yieh United's overall performance. Improvement plans:

The Yieh United has advanced production facility, complete and flexible product

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domain, and professional technical and R & D teams. In response to the changes in the stainless steel industry, Yieh United ’s future development will focus on actively participate in the group ’s resources integration on investment on Indonesia projects. In addition to obtaining the Indonesian government's approval on laterite nickel ore export, it is also accelerating the construction plan of the Indonesian nickel iron and steel smelter plant . Currently, the Company is actively seeking suitable land for plant establishment, developing laterite nickel ore, built new plant, and purchasing equipment. It is expected that the investment and construction of ferronickel and stainless steel smelters plants. These new factories will be completed in the next few years, which should ensure a stable supply source of low-priced nickel materials and stainless steel rolls, and strongly integrate the supply chain of upstream and downstream products in the industry. Through these efforts, our products will be more competitive in the future.

Investment plans for next year:

In line with the Company's diversification management policy, the Company will keep investing in the stainless steel business, whereas Yieh Hsing Enterprise Co., Ltd., the subsidiary, will be investing in tourism, recreation, and relevant industries.

VI. Risk Analysis and Assessment:

(I) Impact on the Company's consolidated profit and loss performance due to changes in interest rate, exchange rates, and inflation, as well as the future countermeasures:
Impact of interest income and exchange rate changes on the company's profit and loss in 2019:

Unit: In thousands of NT$

Item	Account	2019 Amount/ Percentage of Impact	Future response measures
Interest Rate	Interest income (expense)	(1,315,673)	In 2019, when the Federal Reserve Board of the United States and other major countries' central bank adopted a expansive monetary policy, coupled with the slowdown of domestic economic momentum and no inflationary pressure, the interest rates of the Taiwan dollar, the US dollar, and the RMB did not increase significantly. In addition, due to the completion of major investment projects of subsidiaries and the expansion of financing, the interest expense of the Company and subsidiaries increased throughout the year, but remained within 2.5% of the revenue. Looking forward to 2020, the main domestic and foreign financial and money markets are affected by COVID-19 pandemic, and the trend of interest rate will continue to be revised downward. The Company will pay close attention to the trend of interest rate inthe capital market, and strictly control interest expenditure.
	Percentage of Revenue (%)	2.204%
Exchange Rate	Exchange gain (loss)	(71,202)	Besides adopting natural hedging and FX Swap transaction, the Company will also make adjustment by selling when foreign currency exchange rate increases.
	Percentage of Revenue (%)	0.119%
	Operatingrevenue	59,687,597

Our products are widely used in the factory buildings, residential door panels and household appliances as intermediate materials, and the product usages

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  - will be expanded to vehicle steel plates in the future. We understood that most of our business related to boom and bust cycle, therefore, adding customer service to existing management activities is important for  promoting YPS (Yieh phii production services System) business activities and to improve the quality of work, keep zero waste and reduce costs, so as to reduce the impact of inflation on the Company's revenue.

(II) The main reasons for profits and losses, and the future countermeasures of the Company's policies to engage in high-risk, high-leverage investments, lending funds to others, endorsements and guarantees, and the transactions of derivative products:
The Company does not engage in high risk and highly leveraged investments. Endorsements and guarantees shall be carried out in accordance with the Company's "Regulation Governing Loading of Funds and Making of Endorsements/Guarantees". Derivative product transactions shall comprise mainly of exchange rate and interest hedging products. Hence, there is no material gain or loss. In the future, the Company will continue to carry out prudent assessment, and avoid investments and transactions with excessive risks.
(III) Projection of research and development plans and R&D investment expenditures: With the rise in health awareness, consumers not only expect steel materials to comply with environmental protection requirements. In 2008, Yieh PhuiIn developed new products in the direction of reducing the contact between human body and bacteria, and provided antibacterial steel products that can improve the health environment to meet the market demand. At present, Yieh Phui Enterprise's anti-bacteria, healthy eco-friendly steel plate has been installed on the air-conditioning and duct system of National Cheng Kung University's Yun-Suan Sun Green Building Research Center (also known as the Magic School of Green Technologies). The university is the first in the world to own a 100% green building, and is also Taiwan's first zero-carbon emission building. This innovative building with the characteristics of green energy was awarded EEWH's highest Diamond Grade Building Label by the Ministry of the Interior in April 2011. In May 2011, it was again awarded U.S. Green Building Council LEED's highest Platinum Grade Building Label. During March 2015 to June 2018, Yieh Phui developed a nano-grade environmental friendly, fingerprint resistant steel plate and high-effective-nano passivated steel plate which both passed the certification by the Industrial Development Bureau, Ministry of Economic Affairs, and was awarded Nano Label, setting a new milestone in innovative research and development. The high-effective-nano passivated steel plate is especially effective in antibacterial and anti-mildew ability regarding staphylococcus, diphtheria, legionella pneumophila and rhizopus nigricans on the long run. Since August 2018, Taiwan, Hong Kong and Singapore have received orders of up to 4,000 tons in hospitals and public transportation areas such as subway systems and prove Yieh Phui's progress in innovation and R & D and move forward to a new milestone.
As above mentioned, Yieh Phui has continued its current successful model on research and development, and to develop new products via cooperating with suppliers on develop innovated surface treatment and coating materials , and integrates with the supply chain's system such as dealers or molding plants, in order to maximize the products' benefits. In 2014, the Company plans to cooperate with hot-rolling and cold-rolling suppliers to develop high forming and high tensile strength steel for structural building materials and steel plate for automotive molding. Also, it will develop low cost processing products that conform to Australia's G450 and Japan's STK 700 specifications, and gold color metallic paint,

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wood grain and marble grain coated steel plate, to be used on home appliances or indoor purposes, creating higher added value for the Company. Also, in response to the concept of global village, EU has implemented directives, RoHS and WEEE, in 2006, which emphasize that electronic and electrical appliances are to comply with the requirements of product, environmentally friendly processing and recycle and reuse. It has also received response and attention from governments and industries throughout the world. At that time, as Yieh Phui has completed the research and development of eco-friendly products and processes, it received large amount and long-term orders from home appliance brands. In June 2007, the Company obtained the IECQ QC080000 certification to ensure safer and more efficient product quality assurance and management, and letting customers have more confidence in the value of our products.

In the past two years, EU launch another two directives in 2nd phases, in which building materials such as plated and coated products are required to be surface treated without using any chromium or hexavalent chromium, while maintaining their product characteristics; the Company successfully developed its outdoor environmental friendly plated and coated products as early as May 2017, making the application of building materials use can be smoothly replaced with environmentally friendly products, and create good results in sales.

The government is still firm in the development and direction of green energy when implementing the nuclear abolition policy and plans increase the proportion of green enegy in Taiwan to account for 20% of the average annual domestic electricity consumption by 2025 (about 27GW), of which 20GW will be developed by solar systems; The medium solar photovoltaic system must use high-strength corrosion-resistant support to maintain its efficient and durable power generation, so Ye Hui has invested resources since the end of 107 to develop corrosion-resistant steel more suitable for Taiwan’s tropical monsoon and high temperature, high humidity environment. We hope to occupy the earthquake-resistant, corrosion-resistant steel market of the production and application of solar photovoltaic system support frame products in 2021.

This year's research and development projects are expected to be completed by 2019 Q4, with an estimated investment amount of around NT$96,800 thousand. Upon successful research and development, it will provide more complete product portfolio of environmental friendly home appliances and building materials. Also, with the promotion and production of high quality and usage products, it would be able to create more profit.

(IV) The impact of changes of important domestic and foreign policies and laws on the Company's finance and business, and the countermeasures: None
(V) The impact of changes in technologies and industries on the Company's finance and business, and the countermeasures:
The Company's main products are traditional iron and steel products. With more than 50 years of technological development, our technologies are considerably stable, and we do not see major changes. Hence, technology and industry changes without significant impact on the Company's products.
(VI) The impact and countermeasures of enterprise crisis management to change the corporate image :
In line with the vision of "Become the best steel manufacturing company in the world by 2020", the Company set annual targets to be executed by company members in a top-down approach and strengthen education, training and guidance, hoping to upgrade the image of the enterprise.
(VII) Expected benefits of mergers and possible risks: None
(VIII) Expected benefits and possible risks of plant expansion:

The Company Mainland China subsidiary, Yieh Phui (China) Techno material Co.,

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Ltd., is expanding its plant in Changshu Economic Development Zone, with an annual capacity of 620,000 tons of galvanized steel roll, and 420,000 tons of color coated steel roll. It is estimated that with the mass production in the future, besides increasing the sale of steel plate for motor cars, it can also provide more comprehensive color steel roll products, which in turn doubled Yieh Phui (China) 's revenue. However, there is still a potential threat of demand reduction of iron and steel from worldwide and China due to global economic slowdown.
(IX) Risks due to concentrated procurement and sales, and the countermeasures: Besides choosing suppliers that we have long-term cooperation and good relationship with raw materials suppliers, we also maintain good relationship with potential suppliers, so as to ensure stable supply of materials, high production yield, and long term cost advantage over other competitors.
Our products are sold to countries all over the world, and we engaged the largest local dealers and customers, with the strongest sales capabilities, establishing highly fragmented market. Also, the Company carries products with all sizes, which is beneficial for the Company to cultivate good market transfer ability in the face of constantly changing market.
(X) The impact on the Company, and risks arising from major exchange or transfer of shares by directors, supervisors or major shareholders with over 10% of shareholdings, and the countermeasures: The Company's Directors, Supervisor and major shareholders with more than 10% shareholding, pose no risk of significant equity transfer due to their high shareholding and low movement.
(XI) The impact to the Company, and risk due to changes in managerial authority, and the countermeasures: None
(XII) For any litigious or non-litigious matters, company's name and company's Directors, Supervisors, Presidents, who with actual responsibility, and major shareholders holding more than 10% of the Company's shares, shall be disclosed. If there has been any substantial impact upon shareholders' equity or prices for the company's securities as a result of any litigation, non-litigious proceeding, or administrative dispute involving the Company that was finalized or remained pending during the most recent 2 fiscal years or during the current fiscal year as of to the printing date of the annual report, the report shall disclose the facts in dispute, amount in dispute, commencement date, main parties involved, and current status of the case as at the date of printing of the report: None.
(XIII) Other material risks and countermeasures: None Risk Description: Internal risk of information security Impact: Leakage of company's confidential information Affected stakeholder: employees and clients Suppliers

Responding methods:

[Implementation of Information Security Policy]

To ensure smooth execution regarding the Company's information assets, information security and various corporate operations, "Information Security Policy" is established and announced by the President on November 15, 2012 for all employees to follow. In addition to implementing various information security protection and management regulations, it is also compliant with the government's information security-related policies and regulations.

The Company has been awarded the certification of "AEO Safety Certification" by the Customs Administration, Ministry of Finance which include 14 major items and 220 related items of the universal, regulatory standard of 170 countries around the certification of "AEO Safety

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Certification" by the Customs Administration, Ministry of Finance in December 2012.

[Information Security Check Measures]

Regular information security control operations are conducted annually to audit the status of information security measures for each information safety operation.
Cooperate with the internal control/ self inspection work regularly carried out by the company annually, the company also receives external review and verification for the internal control and inspection of ISO 9001/QC 080000, etc.

[Information Security Management Mechanism]

To formulate various information operation management methods for the safety protection management of the Company's employees and information Department, including the following

Corporate Information Security Management Regulations
Electronic Media Management Regulations
Use of Personal Computer Software
Computer Hardware Application Regulations
Internet Telephone Communication Management Regulations
Standard Operation Standards for Abnormal Information Facilities
Operation Standard of Computer Server Room Settings
Host Backup Operation Standard

[Information Security Management Measures]

For important hardware, network switches, uninterruptible power supply (UPS), and air-conditioning systems, backup systems are established as well as real-time monitoring, alarming for the temperature and humidity of computer centers and fire systems. Data backup structure and initiatives are set up at separate locations.
For security threats from external networks, intrusion prevention system (IPS) is established along the DDos protection, as well as the filtering spam e-mails, firewall, illegal software monitoring and web filter management are also in place.
The use of firewalls and computer connection networks, Internet access records and e-mail activities are recorded in detail.
The key personnel shall be assigned One-Time Password (OTP) APP to the personal mobile phone; each login into the Company's IT system is required with a dynamic password (different every time) generated from the mobile APP.
EIP important documents can only be viewed online. When opening important documents, watermarks are generated
(Display open date and time, user name, computer IP), keep user records in detail.
For restriction and the usage of USB connections to a computer, all copy operations from computer to USB are prohibited. Partial authority is accessible on computers while the process of file-copying shall be recorded in a detail manner.

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[Information Security Educational Training]

To cultivate the Company employees' information security risk awareness, the Company regularly hosts digital curriculum and online testing of the Company's employees in the fourth quarter of every year. The results of the Company's employee information security training and online tests to help employees' awareness of the risks of information security and threat to the Company.

==> picture [280 x 114] intentionally omitted <==

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

Number of Participants of the Information
Security Educational Training
1250
1200
1150
1100
2016 2017 2018 2019
----- End of picture text -----

[Risk protection of data facilities]

Maintenance contract sign up: To prevent the risks of damage to the important data facilities, the system is designed to establish a maintenance contract with the system companies. The maintenance contract is signed to maintain the stability of the system and equipment.
Emergency drill arrangement: The emergency response drills for the data centers are scheduled to be held twice every year to prepare data staff with an emergency and urgent solution to a speedy recovery of all related application and services from emergency situations.
Data backup and verification: It shall regular backup and verification of important hardware data
are done to ensure that the Company's business is rapidly restored to the operations, and minimize business interruption time and losses.

VII. Other Important Items: None

－403－

Chapter 8 Special Items

I. Information on Affiliated Companies:

Overview of affiliated companies:
(I) Consolidated Operating Report of Affiliates
- (1) Organization chart of affiliated companies: as of December 31, 2019

==> picture [1066 x 473] intentionally omitted <==

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

Yieh Phui Enterprise Co., Ltd.
100% 100% 100% 100% 100% 86.99% 78.10% 100% 41.18% 56.98% 49.28% 89.66% 95.56% 99.04% 80% 100% 80%
WORTHING HONOR Sin Bang Investment & Yieh Phui (Hong GOOD HONOR Chian Huan EMMT Systems Shin Phui Steel Great Emperor Yieh Hsing Kingsgarden CHAMPION LOGISTIC United Brightening Kuo Chang Hong Yuh Assets Shin Yang LIAN SO (HK) CO.,
HOLDINGS LTD Development Co., Ltd. Kong) Holdings Limited HOLDINGS LTD Technology Co., Ltd. Corporation Corporation Hotel CO., Ltd. Enterprise Co., Ltd. International CO., Ltd. INC. Development Corp. Enterprise Co., Ltd. Management Co.,Ltd. Steel Co., Ltd. LIMITED
10% 90%
100% 0.01%
7.48% 58.81% 50.71%
10.34% PT. YIEH 100%
YIEH PHUI 91.47% 49.97% 42.53% 0.01% FERRO
AMERICA, Yieh Phui (China) APPLIED 70% 100% 100%
WIRELESS
Techno material Co., Lian Yang
INC. IDENTIFICATIO Groupco Yi Hua HUAGLAM Chao Ying Investment 47.88% 52.12%
Ltd. NS GROUP INC. (Hong Kong)
Technology Inc. Internationa International & Development Co.,
Shin Lin Steel Trading Co.,
100% l Co., Ltd. Co., Ltd. Ltd. Co., Ltd. Ltd.
100% 100%
AWID Asia Co., Ltd.
Tianjin Lianfa Changshu 75% 25%
Precision Chang Huei Luen Hang
100% 100%
Steel Co., Ltd. Trading Co., Mining Limited
19%
Ltd.
AWID AWID
81%
Lien-Hung
Sanghai Co., Changshu
Mining Co.,
Ltd. Co., Ltd. 100%
Ltd.
----- End of picture text -----

－404－

(2) Basic information of various affiliated businesses Data date: December 31, 2019; Unit: NT$ thousands (exchange rate for US$:29.76) (exchange rate for RMB: 4.5729) (exchange rate for IDR: 0.0022)

rate for IDR: 0.0022)
Company name	Date of Incorporation	Address	Paid-in Capital	Main Business Activities
Yieh Phui Enterprise Co., Ltd.	1978.04.14	No. 369, Yuliao Road, Qiaotou District, Kaohsiung City	NT$ 19,133,275	Galvanized, coated steel coil
WORTHING HONOR HOLDINGS LTD.	1995.07.24	Tropic Isle Building POBOX 438, Road Town, Tortola BVI	US$ 100	Investment
GOOD HONOR HOLDINGS LTD.	1995.12.04	Tropic Isle Building POBOX 438, Road Town, Tortola BVI	US$ 46	Investment
Shin Phui Steel Co., Ltd..	1990.06.25	1st Floor, No.25, Lane 175, Daren Road, Taishang Village, Gangshan District, Kaohsiung City	NT$ 207,151	Trading of steel goods
Yieh Phui (Hong Kong) Holdings Limited	2000.06.10	20th Floor, Tesbury Centre, 28 Queen's Road East, HongKong	US$ 233,500	Investment
Yieh Phui (China) Techno material Co., Ltd.	2002.01.28	No.1, Yehui Road, Riverside Industrial Park, Changshu City, Jiangsu Province, China	RMB$ 1,689,322	Galvanized, coated steel coil
Chian Huan Technology Co., Ltd.	2000.05.01	No. 366, Zhongcheng Street, Gangshan Village, GangshangDistrict,Kaohsiung City	NT$ 32,352	Telecommunication subcontract
EMMT Systems Corporation	1988.10.04	No. 16-1, South 2nd Road, Taichung Export Processing Zone, Tanzi District, Taichung City	NT$ 424,922	Manufacture of military standard printed circuit boards and module boards
Groupco Technology	2006.09.05	1st Floor, No. 100, Shengli 3rd Street, Ganzhe Village, Tanzi Village, Taichung City	NT$ 90,050	Wholesale of telecommunications equipment and electronicmaterials
APPLIED WIRELESS IDENTIFICATIONS GROUP,INC.	1997.07.09	Gorporation Trust Center, 1209 Orange Street, Wilmington,Delaware, USA	US$ 441	RFID technology product

－405－

Company name	Date of Incorporation	Address	Paid-in Capital	Main Business Activities
AWID Asia Co., Ltd.	2008.07.15	3rd Floor, No.9, Section 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 30,300	Wholesale of telecommunications equipment and electronicmaterials
AWID Sanghai Co., Ltd.	2011.01.26	Room 706, Rongke Building, No.443, Dapu Road, Luwan District, Shanghai City	RMB$ 4,472	Wholesale of telecommunications equipment and electronicmaterials
AWID Changshu Co., Ltd.	2016.6.28	No.1, Yehui Road, Riverside Industrial Park, Changshu City, Jiangsu Province, China	US$ 300	Wholesale of telecommunications equipment and electronicmaterials
Yieh Hsing Enterprise Co., Ltd.	1978.07.18	No. 369, Baomi Road, Baimi Village, Gangshan District, Kaohsiung City	NT$ 5,306,516	Production and sales of steel pipe, steel coil products, wire
Great Emperor Hotel Co., Ltd.	2011.11.24	2F., No. 111, Yinghua 1st Rd., Zuoying Dist., ZuoyingDist.,Kaohsiung City	NT$ 3,570,000	Hotel Industry, etc.
Kingsgarden International Co., Ltd.	2011.11.24	2F., No. 111, Yinghua 1st Rd., Zuoying Dist., Zuoying Dist., Kaohsiung City	NT$ 4,180,000	Departmental stores, supermarkets, etc.
Shin Yang Steel Co., Ltd.	2011.02.15	No.297, Yuliao Road, Qiaotou District, Kaohsiung City	NT$ 870,000	Black steel pipe, galvanized steel pipe, EMT steel pipe, rectangular tube, API casing, pipeline, etc.
CHAMPION LOGISTIC INC.	2002.02.08	Offshore Chambers, POBox 217, Apia, Samoa	US$ 14,500	Investment

－406－

Company name	Date of Incorporation	Address	Paid-in Capital	Main Business Activities
Tianjin Lianfa Precision Steel Co., Ltd.	2006.07.20	No.125, Zhongnan 6th Street, West Zone, Tianjin Economic-Technological Development Area, Tianjin City	RMB$ 143,438	Steel manufacturing, processing, sale, etc.
Changshu ChangHuei Trading Co., Ltd.	2014.08.15	No.1, Yehui Road, Riverside Industrial Park, Changshu City, Jiangsu Province, China	RMB$ 10,000	Wholesale and import and export, etc. of various fabricated metal products
Hsin Pang Investment and Development Co.,Ltd.	2001.05.10	2F., No.9, Sec. 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 193,125	Investment
Hong Yuh Assets Management Co.,Ltd.	2007.01.10	2F., No.9, Sec. 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 1,499,000	Wholesale and real estate related management consultancy
United Brightening Development Corp.	2002.10.01	2nd Floor, No.9, Section 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 1,600,756	Consultation of manufacturing technology of iron and steel
Kuo Chang Enterprise Co., Ltd.	2003.07.01	1st Floor, No.62-1, Renai Road, Luzhu District, Kaohsiung City	NT$ 1,014,608	Wholesale of hardware
Chao Ying Investment Development Co., Ltd.	2001.05.11	2F., No.9, Sec. 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 304,000	Investment
Shin Lin Steel Co., Ltd.	2014.09.16	Perwata Tower, Lt.2 Suite DEF Jl.Pluit Selatan Raya, Kav.1, Kel.Penjaringan, Kec. Penjaringan, JakartaUtara 14440	US$ 34,250	Metal manufacturing industry
PT. YIEH FERRO INDONESIA	2016.03.17	Perwata Tower, Lt.2 Suite DEF Jl.Pluit Selatan Raya, Kav.1, Kel.Penjaringan, Kec. Penjaringan, JakartaUtara 14440	US$ 500	Metal manufacturing industry
LIAN SO (HK) CO., LIMITED	2015.01.16	20th Floor, Tesbury Centre, 28 Queen's Road East, HongKong	US$ 20,700	Investment

－407－

Company name	Date of Incorporation	Address	Paid-in Capital	Main Business Activities
E-Hwa International Co., Ltd.	2015.10.05	3rd Floor, No.5, Section 1, Xuecheng Road, Dashu District, Kaohsiung City	NT$ 10,000	Leasing, selling and development of residential and commercial buildings
YIEH PHUI AMERICA, INC.	2018.03.20	18300 Sutter Boulevard Morgan Hill, Ca 95037	US$ -	Steel trading
Lian Yang (Hong Kong) Trading Co., Ltd.	2018.04.09	20th Floor, Tesbury Centre, 28 Queen's Road East, HongKong	US$ 100	Trading business
Luen Hang Mining Limited	2006.03.13	Perwata Tower, Lt.2 Suite DEF Jl.Pluit Selatan Raya, Kav.1, Kel.Penjaringan, Kec. Penjaringan, JakartaUtara 14440	IDR $5,075,000	Nickel mining
Lien-Hung Mining Co., Ltd.	2006.03.13	Perwata Tower, Lt.2 Suite DEF Jl.Pluit Selatan Raya, Kav.1, Kel.Penjaringan, Kec. Penjaringan, JakartaUtara 14440	IDR$ 199,289,810	Nickel mining
Asia Pacific Limited	2008.05.09	Jalan Trans Sulawesi, Desa Mohoni, Kecamatan Petasia Timur, Kabupaten Morowali Utara, ProvinsiSulawesi Tengah, 94671,Indonesia	IDR$ 53,243,700	Nickel mining
Wabo Global Trading Corporation	2019.10.30	3rd Floor, No.5, Section 1, Xuecheng Road, Dashu District,KaohsiungCity	NT$ 60,000	Cosmetics wholesale

Note: 1. All affiliated companies, regardless of its scale, shall be disclosed.

Note: 2. If any of the affiliated company has a factory, and the sales value of the plant's products exceeds 10% of this company's operating revenue, the plant's name, date of incorporation, address and the main product items manufactured shall be stated.

Note: 3. If any of the affiliated company is a foreign company, the company name and address shall be stated in English, the date of incorporation indicated in Gregorian format, and paid-up capital indicated in foreign currency (the exchange rate on the date of report shall be stated).

(3) Companies presumed to have a relationship of control and subordination according to Article 369-3 of the Company Act: None.

－408－

(4) The industries that are covered by the affiliated companies, and their distribution of work if the businesses of affiliated companies are interconnected with others:
A. Business of all affiliated companies: Plated steel products manufacturing, steel products trading, steel products cutting and slitting, manufacture of black steel pipe, galvanized steel pipe, EMT steel pipe, rectangular tube, API casing and pipeline, etc., investment, hotel industry and departmental stores, supermarkets, nickel iron manufacturing, etc.

(Base Date: December 31, 2018)

Industry	Name of affiliated company	Business relationship with other affiliated companies
Investment holding companies	Yieh Phui (Hong Kong) Holdings Limited	Holding company of Yieh Phui (China)
	Hsin Pang Investment and Development Co., Ltd.	Invested enterprise of Yieh Phui
	Chao Ying Investment Development Co., Ltd.	Investment of United Brightening Development Corp.
	Hong Yuh Assets Management Co.,Ltd.	Invested enterprise of Yieh Phui
	UnitedBrighteningDevelopment Corp.	Holding company ofChaoYing
	LIAN SO (HK) CO., LIMITED	Invested enterprise of Yieh Phui
Overseas investment companies	WORTHINGHONOR HOLDINGSLTD.	Invested enterprise of Yieh Phui
	CHAMPION LOGISTIC INC.	Invested enterprise of Yieh Phui
	GOODHONOR HOLDINGS LTD.	Invested enterprise of Yieh Phui
Iron and steel industry	Yieh Phui (China) Technomaterial Co., Ltd.	Investment of Yieh Phui (Hong Kong)
	Shin Phui Steel Co., Ltd..	Sale of some products of Yieh Phui
	Yieh HsingEnterprise Co.,Ltd.	Invested enterprise of Yieh Phui
	Shin Yang Steel Co., Ltd.	Invested enterprise of Yieh Phui
	Tianjin LianfaPrecisionSteelCo.,Ltd.	Investment of Yieh Phui(China)
	YIEH PHUI AMERICA, INC.	Sale of some products of Yieh Phui
Electronics industry	Chian Huan Technology Co., Ltd.	Invested enterprise of Yieh Phui
	EMMT Systems Corporation	Investment of Gen-Wan Technology
	Groupco Technology	Investment of EMMT Systems Corporation
	APPLIED WIRELESS IDENTIFICATIONS GROUP, INC.	Investment of EMMT Systems Corporation
	AWID Asia Co., Ltd.	A reinvestment company of APPLIED WIRELESS IDENTIFICATIONS GROUP,INC.
	AWIDSanghaiCo.,Ltd.	Investment of AWID
	AWID Changshu Co., Ltd.	Investment of AWID
Hotel industry	GreatEmperor HotelCo.,Ltd.	Investment of Yieh Hsing
Departmental stores, supermarkets, etc.	Kingsgarden International Co., Ltd.	Investment of Yieh Hsing
	E-Hwa International Co., Ltd.	Investment of Kingsgarden
	Wabo Global Trading Corporation	Investment of Kingsgarden
Trading business	Changshu ChangHuei Trading Co., Ltd.	Investment of Yieh Phui (China)
	Kuo ChangEnterprise Co.,Ltd.	Invested enterprise of Yieh Phui
	Lian Yang (Hong Kong) Trading Co., Ltd.	Investment of Lian So (H.K)
Metal manufacturing industry	Shin Lin Steel Co., Ltd.	Investment of PT. E-UNITED FERRO INDONESIA
	PT. YIEH FERRO INDONESIA	Investment of Lian So (H.K)
Nickel mining	Luen Hang Mining Limited	Investment of PT. E-UNITED FERRO INDONESIA
	Lien-Hung Mining Co., Ltd.	Invested enterprise of Lian-Shin
	Asia Pacific Limited	Investment of PT. E-UNITED FERRO INDONESIA

(5) The names of the directors, supervisors,and presidents of each affiliated enterprises,

－409－

and the number of shares they hold or the amount of capital they contributed: Information of affiliated company's Directors, Supervisors and presidents as of December 31, 2019

Unit: Shares; %

			Unit: Shares;%	Unit: Shares;%
Company name	Title	Name or representative	Shareholding (Note 2)(Note 3)
	Note (1)		Number of Shares	Shareholding Percentage
Yieh Phui Enterprise Co., Ltd.	Chairman	Kuo Chiao Investment & Development Co. Ltd. Representative: Lin I-Shou	61,870,646	3.23%
	Director	Kuo Chiao Investment & Development Co. Ltd. Representative: Ping-YungLiang	61,870,646	3.23%
	Director	Kuo Chiao Investment & Development Co. Ltd. Representative: Wu Lin-Maw	61,870,646	3.23%
	Director	Kuo Chiao Investment & Development Co. Ltd. Representative: Ching-TsungHuang	61,870,646	3.23%
	Independent Director	Chin-Shu Sun	-	-
	Independent Director	Wen-I Chang	-	-
	Independent Director	Te-Yuan Yang	-	-
	Manager	Wu Lin-Maw	-	-
GOOD HONOR HOLDINGS LTD.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Pi-Hsien Li	46,400	100.00%
WORTHING HONOR HOLDINGS LTD.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Pi-Hsien Li	100,000	100.00%
Yieh Phui (Hong Kong) Holdings Limited	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Pi-Hsien Li	233,500,000	100.00%
Shin Phui Steel Co., Ltd..	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	20,715,131	100.00%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	20,715,131	100.00%
	Director	YShiou eh P hui Enterprise Co., Ltd. Representative: Wu Lin-Maw	20,715,131	100.00%
	Supervisor	Yieh Phui Enterprise Co., Ltd. Representative: He-HsingLai	20,715,131	100.00%
Shin Yang Steel Co., Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	87,000,000	100.00%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	87,000,000	100.00%
	Director	YShiou eh P hui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	87,000,000	100.00%
	Supervisor	Yieh Phui Enterprise Co., Ltd. Representative: Ching-TsungHuang	87,000,000	100.00%
	Manager	Wu Lin-Maw	-	-
Hong Yuh Assets Management Co.,Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	119,920,000	80.00%
	Director	Yieh United Steel Corporation Representative:	14,990,000	10.00%
	Director	Yi Lin eh P I-Shou hui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	119,920,000	80.00%
	Supervisor	Yieh Mau Corporation Representative: Tien-Chi Chang	14,990,000	10.00%
	Supervisor	Yieh Mau Corporation Representative: Hung-Chih Chang	14,990,000	10.00%
Shin Lin Steel Co., Ltd.	Chairman	Pi-Hsien Li	-	-
	Director	Chen Yung-Hsien	-	-
	Director	Chong-Chi Kuo	-	-
	Director	Wu Lin-Maw	-	-
	Director	Cheng-TungLin	-	-
	Director	Wu Mingtong	-	-
	Supervisor	Chia-ChengLin	-	-

－410－

Company name	Title	Name or representative	Shareholding (Note 2)(Note 3)	Shareholding (Note 2)(Note 3)
	Note (1)		Number of Shares	Shareholding Percentage
Hsin Pang Investment and Development Co., Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	19,312,500	100.00%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	19,312,500	100.00%
	Director	Shou Yieh Phui Enterprise Co., Ltd. Representative: Ping-YungLiang	19,312,500	100.00%
	Supervisor	Yieh Phui Enterprise Co., Ltd. Representative: Tien-Chi Chang	19,312,500	100.00%
Yieh Phui (China) Technomaterial Co., Ltd.	Chairman	Yieh Phui (Hong Kong) Holdings Limited Representative: Wu Lin-Maw	-	-
	Director	Yieh Phui (Hong Kong) Holdings Limited Representative: Tien-Chi Chang	-	-
	Director	Yieh Phui (Hong Kong) Holdings Limited Representative: Yung-FangChang	-	-
	Director	Yieh Phui (Hong Kong) Holdings Limited Representative: Sen-LongChen	-	-
	Director	Yieh Phui (Hong Kong) Holdings Limited Representative: Chen Yung-	-	-
	Supervisor	Hsien Yieh Phui (Hong Kong) Holdings Limited Representative: Ching-TsungHuang	-	-
	Manager	Yung-FangChang	-	-
Changshu Chang Huei Trading Co., Ltd.	Chairman	Yieh Phui (China) Technomaterial Co., Ltd. Yung-FangChang	-	-
	Director	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Wu Lin-Maw	-	-
	Director	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Chen Yung-Hsien	-	-
	Supervisor	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Ching-TsungHuang	-	-
Tianjin Lianfa Precision Steel Co., Ltd.	Chairman	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Yung-FangChang	-	-
	Director	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Wu Lin-Maw	-	-
	Director	Yieh Phui (China) Technomaterial Co., Ltd. representative: Chen Yung-Hsien	-	-
	Supervisor	Yieh Phui (China) Technomaterial Co., Ltd. Representative: Ching-TsungHuang	-	-
Chian Huan Technology Co., Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	2,814,354	86.99%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	2,814,354	86.99%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Tien-Chi Chang	2,814,354	86.99%
	Supervisor	Wei Chiao Investment Development Co., Ltd. Representative: He-HsingLai	19,882	0.61%
EMMT Systems Corporation	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	33,186,655	78.10%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	33,186,655	78.10%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	33,186,655	78.10%
	Supervisor	Shou Chian Huan Technology Co., Ltd. Representative: Tien-Chi Chang	3,177,962	7.48%
Groupco Technology	Chairman	EMMT Systems Corporation Representative: Wu Lin-Maw	4,500,000	49.97%
	Director	EMMT Systems Corporation Representative: Ching-TsungHuang	4,500,000	49.97%
	Director	EMMT Systems Corporation Representative: Chen Yung-Hsien	4,500,000	49.97%
	Director	Ke-Chin Chen	530,000	5.89%
	Director	EMMT Systems Corporation Representative: Tien-Chi Chang	4,500,000	49.97%
	Supervisor	Shin Phui Steel Co., Ltd.. Representative: Ching-ShengYu	3,830,000	42.53%

－411－

Company name	Title	Name or representative	Shareholding (Note 2)(Note 3)	Shareholding (Note 2)(Note 3)
	Note (1)		Number of Shares	Shareholding Percentage
	Supervisor	Shin Phui Steel Co., Ltd.. Representative: He-HsingLai	3,830,000	42.53%
APPLIED WIRELESS IDENTIFICATIONS GROUP, INC.	Chairman	EMMT Systems Corporation Representative: Wu Lin-Maw	40,488,461	91.47%
	Director	EMMT Systems Corporation Representative: Chen Yung-Hsien	40,488,461	91.47%
	Director	EMMT Systems Corporation Representative: Ching-TsungHuang	40,488,461	91.47%
	Director	EMMT Systems Corporation Representative: Shih-Yi Chou	40,488,461	91.47%
	Director	EMMT Systems Corporation Representative: You-ShengHuang	40,488,461	91.47%
AWID Asia Co., Ltd.	Chairman	U.S. Morgan Asia Co., Ltd. Representative: Wu Lin-Maw	3,030,000	100.00%
	Director	U.S. Morgan Asia Co., Ltd. Representative: Ching-TsungHuang	3,030,000	100.00%
	Director	U.S. Morgan Asia Co., Ltd. Representative: Chen Yung-Hsien	3,030,000	100.00%
	Supervisor	U.S. Morgan Asia Co., Ltd. Representative: Tien-Chi Chang	3,030,000	100.00%
AWID Sanghai Co., Ltd.	Chairman	AWID Asia Co., Ltd. Representative: Wu Lin-Maw	-	-
	Director	AWID Asia Co., Ltd. Representative: Ching-TsungHuang	-	-
	Director	AWID Asia Co., Ltd. Representative: Chen Yung-Hsien	-	-
	Supervisor	AWID Asia Co., Ltd. Representative: Tien-Chi Chang	-	-
CHAMPION LOGISTIC INC.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Pi-Hsien Li	13,000,000	89.66%
	Director	Lin I-Shou	-	-
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	13,000,000	89.66%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	13,000,000	89.66%
Yieh Hsing Enterprise Co., Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	302,376,386	56.98%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Chen Sen-Long	302,376,386	56.98%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	302,376,386	56.98%
	Director	YShiou eh P hui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	302,376,386	56.98%
	Director	Yieh United Steel Corporation Representative: Tien-Chi Chang	85,717,552	16.15%
	Director	Yieh United Steel Corporation Representative: Yu-Kun Su	85,717,552	16.15%
	Independent Director	Chin-Shu Sun	-	-
	Independent Director	Wen-I Chang	-	-
	Independent Director	Te-Yuan Yang	-	-
	Manager	Sen-LungChen	-	-
Great Emperor Hotel Co., Ltd.	Chairman	Yieh Hsing Enterprise Co., Ltd. Representative: Wu Lin-Maw	209,950,000	58.81%
	Director	Yieh Hsing Enterprise Co., Ltd. Representative: TSANG WAI CHEUNG	209,950,000	58.81%
	Director	Yieh Hsing Enterprise Co., Ltd. Representative: Lin I-	209,950,000	58.81%
	Director	Shou Yieh Phui Enterprise Co., Ltd. Representative: Tien-Chi Chang	147,000,000	41.18%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	147,000,000	41.18%

－412－

Company name	Title	Name or representative	Shareholding (Note 2)(Note 3)	Shareholding (Note 2)(Note 3)
	Note (1)		Number of Shares	Shareholding Percentage
	Supervisor	Shin Phui Steel Co., Ltd.. Representative: Chang-Chih Chang	50,000	0.01%
Kingsgarden International Co., Ltd.	Chairman	Yieh Hsing Enterprise Co., Ltd. Representative: Wu Lin-Maw	211,950,000	50.71%
	Director	Yieh Hsing Enterprise Co., Ltd. Representative: Lin I-	211,950,000	50.71%
	Director	Shou Yieh Phui Enterprise Co., Ltd. Representative: Tien-Chi Chang	206,000,000	49.28%
	Supervisor	Shin Phui Steel Co., Ltd.. Representative: Chang-Chih Chang	50,000	0.01%
E-Hwa International Co., Ltd.	Chairman	Kingsgarden International Co., Ltd. Representative: Chun-ShengLin	700,000	70.00%
	Director	Kingsgarden International Co., Ltd. Representative: Chen Yung-Hsien	700,000	70.00%
	Director	Jinghua Business Asset Management Limited Representative: Chun-Wan Wang	300,000	30.00%
	Supervisor	Ching-ShengYu	-	-
Kuo Chang Enterprise Co., Ltd.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	100,486,824	99.04%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	100,486,824	99.04%
	Director	YShiou eh P hui Enterprise Co., Ltd. Representative: Wu Lin-Maw	100,486,824	99.04%
	Supervisor	Jiayuan Investment Development Co., Ltd. Representative: Hung-Chih Chang	974,024	0.96%
United Brightening Development Corp.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	152,972,037	95.56%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Lin I-	152,972,037	95.56%
	Director	YShiou eh P hui Enterprise Co., Ltd. Representative: Wu Lin-Maw	152,972,037	95.56%
	Supervisor	Xinyang Investment Development Co., Ltd. Representative: Hung-Chih Chang	7,103,624	4.44%
Chao Ying Investment Development Co., Ltd.	Chairman	United Brightening Development Corp. Representative: Wu Lin-Maw	30,400,000	100.00%
	Director	United Brightening Development Corp. Representative: Lin I-Shou	30,400,000	100.00%
	Director	United Brightening Development Corp. Representative: Tien-Chi Chang	30,400,000	100.00%
	Supervisor	United Brightening Development Corp. Representative: Ching-TsungHuang	30,400,000	100.00%
LIAN SO (HK) CO., LIMITED	Chairman	Pi-Hsien Li	-	-
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	16,560,000	80.00%
	Director	Yieh United Steel Corporation Representative: Yu-Kun Su	2,070,000	10.00%
	Director	Yieh Mau Corporation Representative: Tien-Chi Chang	2,070,000	10.00%
AWID Changshu Co., Ltd.	Chairman	AWID Asia Co., Ltd. Representative: Wu Lin-Maw	-	-
	Director	AWID Asia Co., Ltd. Representative: Ching-TsungHuang	-	-
	Director	AWID Asia Co., Ltd. Representative: Chen Yung-Hsien	-	-
	Supervisor	AWID Asia Co., Ltd. Representative: Tien-Chi Chang	-	-
PT. YIEH FERRO INDONESIA	Chairman	Pi-Hsien Li	-	-
	Director	Wu Lin-Maw	-	-
	Director	Chong-Chi Kuo	-	-
	Director	Cheng-TungLin	-	-
	Director	Wu Mingtong	-	-
	Director	Chen Yung-Hsien	-	-
	Supervisor	Chia-ChengLin	-	-
Luen Hang Mining Limited	Chairman	Wu Lin-Maw	-	-
	Director	Chia-ChengLin	-	-

－413－

Company name	Title	Name or representative	Shareholding (Note 2)(Note 3)	Shareholding (Note 2)(Note 3)
	Note (1)		Number of Shares	Shareholding Percentage
	Director	Achmad Kurniadi	-	-
	Director	Cheng-TungLin	-	-
	Supervisor	Chen Yung-Hsien	-	-
Lien-Hung Mining Co., Ltd.	Chairman	Wu Lin-Maw	-	-
	Director	Chia-ChengLin	-	-
	Director	Achmad Kurniadi	-	-
	Director	Cheng-TungLin	-	-
	Supervisor	Chen Yung-Hsien	-	-
YIEH PHUI AMERICA, INC.	Chairman	Yieh Phui Enterprise Co., Ltd. Representative: Wu Lin-Maw	1,000	100.00%
	Director	Yieh Phui Enterprise Co., Ltd. Representative: Pi-Hsien Li	1,000	100.00%
	Manager	Yieh Phui Enterprise Co., Ltd. Representative: Chen Yung-Hsien	1,000	100.00%
Lian Yang (Hong Kong) Trading Co.,Ltd.	Chairman	LIAN SO (HK) CO., LIMITED Representative: Pi-Hsien Li	100,000	100.00%
Asia Pacific Limited	Chairman	Chen Yung-Hsien	-	-
	Director	Wei-Min Chen	-	-
	Director	Cheng-TungLin	-	-
	Supervisor	Chia-ChengLin	-	-
Wabo Global Trading Corporation	Chairman	Kingsgarden International Co., Ltd. Representative: Chun-ShengLin	6,000,000	100.00%
	Director	Kingsgarden International Co., Ltd. Representative: Lin I-Shou	6,000,000	100.00%
	Director	Kingsgarden International Co., Ltd. Representative: Chen Yung-Hsien	6,000,000	100.00%
	Supervisor	Kingsgarden International Co., Ltd. Representative: Tien-Chi Chang	6,000,000	100.00%

Note 1: If the affiliated company is a foreign company, list the personnel holding equivalent positions.

Note 2: If the invested company is a company limited by shares, fill in the number of shares and proportion of shareholding. For others, fill in the investment amount and indicate the proportion of contribution.

Note 3: If the director or supervisor is a legal person, the related information of the representatives shall be disclosed.

－414－

(6) Operational overview of related companies:

Data date: 31 December 2019 Unit: NT$ thousands

Company name	Capital	Total assets	Total liabilities	Net value	Operating revenue	Operating income	Current profit and loss (after tax)	Earnings per share (NT$) (after tax)
Yieh Phui Enterprise Co., Ltd.	19,133,275	47,678,475	21,828,244	25,850,232	24,971,014	(572,255)	(1,401,081)	(0.73)
WORTHING HONOR HOLDINGS LTD.	2,998	2,764	-	2,764	-	-	13	-
GOODHONOR HOLDINGS LTD.	1,391	159,972	-	159,972	-	-	2,805	-
Shin Phui Steel Co., Ltd..	207,151	327,987	111,724	216,263	252,248	6,590	4,151	0.13
Chian Huan Technology Co., Ltd.	32,352	42,512	161	42,351	-	(162)	7,046	2.18
Yieh Phui (China) Technomaterial Co., Ltd.	7,259,863	22,980,361	14,564,277	8,416,083	22,591,919	164,371	(520,750)	-
Changshu ChangHuei Trading Co., Ltd.	42,975	45,117	16	45,102	-	(136)	507	-
EMMT Systems Corporation	424,922	647,294	93,347	553,948	449,362	54,657	97,422	-
Groupco Technology	90,050	10,260	1,062	9,198	12,569	256	513	0.06
APPLIED WIRELESS IDENTIFICATIONS GROUP, INC.	13,232	274,681	61,037	213,645	258,388	43,955	44,465	-
AWID Asia Co., Ltd.	30,300	20,793	3,034	17,759	23,781	1,336	(12)	-
AWID Sanghai Co., Ltd.	19,220	2,317	21	2,295	237	(351)	(165)	-
AWID Changshu Co., Ltd.	8,573	4,223	710	3,513	4,461	(1,180)	(1,210)	-
Yieh Hsing Enterprise Co., Ltd.	5,306,516	9,031,094	6,291,273	2,739,820	6,535,275	(449,292)	(642,188)	(1.21)
Great Emperor Hotel Co., Ltd.	3,570,000	9,519,228	5,855,904	3,663,324	-	(18,211)	(18,300)	(0.05)
Kingsgarden International Co., Ltd.	4,180,000	10,140,077	6,008,659	4,131,418	-	(26,466)	(17,560)	(0.05)
E-Hwa International Co., Ltd.	10,000	22,370	4,871	17,499	25,727	16,207	13,719	13.72
Wabo Global Trading Corporation	60,000	59,655	470	59,185	-	(825)	(815)	(0.14)
Shin Yang Steel Co., Ltd.	870,000	2,477,397	1,561,651	915,746	3,404,323	23,017	7,048	0.08
Hong Yuh Assets Management Co.,Ltd.	1,499,000	719,278	32,110	687,168	-	(43,094)	(135,343)	(0.92)

－415－

Company name	Capital	Total assets	Total liabilities	Net value	Operating revenue	Operating income	Current profit and loss (after tax)	Earnings per share (NT$) (after tax)
Hsin Pang Investment and Development Co., Ltd.	193,125	225,790	70	225,720	-	(158)	178	0.01
Tianjin Lianfa Precision Steel Co., Ltd.	616,427	403,057	537,265	(134,208)	1,569,713	(45,539)	(50,642)	-
Yieh Phui (Hong Kong) Holdings Limited	7,000,330	11,881,705	3,491,099	8,390,606	2,066,240	19,747	(524,935)	-
CHAMPION LOGISTIC INC.	434,710	460,704	60	460,644	-	(189)	24,497	-
United Brightening Development Corp.	1,600,757	1,666,567	445,959	1,220,608	-	(142)	(84,660)	(0.53)
Chao Ying Investment Development Co., Ltd.	304,000	276,370	66	276,304	-	(500)	(110)	-
Kuo Chang Enterprise Co., Ltd.	1,014,608	1,168,846	364,054	804,793	-	(476)	(84,580)	(0.83)
LIAN SO (HK) CO., LIMITED	620,586	450,212	770	449,442	-	(10,137)	(64,640)	-
YIEH PHUI AMERICA, INC.	-	720,522	667,236	53,286	59,887	52,733	38,734	-
Lian Yang (Hong Kong) Trading Co., Ltd.	2,998	15,017	50	14,967	-	(54)	1,744	-
Shin Lin Steel Co., Ltd.	859,291	854,355	68,988	785,367	-	(31,345)	(112,157)	-
PT. YIEH FERRO INDONESIA	14,486	6,990	173	6,816	-	(2,311)	(2,507)	-
Luen Hang Mining Limited	11,165	38,219	4,111	34,109	-	(24,803)	(25,460)	-
Lien-Hung Mining Co., Ltd.	438,438	136,192	62,529	73,663	-	(52,455)	(52,570)	-
Asia Pacific Limited	117,136	81,873	5,204	76,668	34,029	(7,681)	(409)	-

(II) Consolidated financial statements of affiliated companies: Please refer to page 120 for details. (III) Affiliation report: None.

－416－

II. Private Placement of Marketable Securities: None

III. Holding or Disposal of the Company's Shares by Subsidiaries: None

IV. Supplementary Agenda: None.

－417－

Chapter 9 Events Which Have Material Impact on Shareholders' Equity or the Company’s Securities as Prescribed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, Have Occurred from the Most Recent Year to the Printing Date of This Report: None

－418－

Company seal: Yieh Phui Enterprise Co., Ltd.

Company representative: Lin I-Shou

AI assistant

YP — Annual Report 2019

51950_rns_2020-06-24_c0c7c928-d667-46ae-aa6a-d2b69ac4d030.pdf

Stock Code: 2023

ANNUAL REPORT 2019

III. Name, Address, Website, and Telephone Number of Stock Transfer Agency:

Table of Contents

Chapter 1 Letter to Shareholders

ToShareholders:

I. The Outline of the Operation of 2019

1. The Performance of Business Plan:

Consolidated Information of Financial Statements

Financial Information of Company

4. Research and Development

II. Overview of 2020 Business Plan:

III. Corporate Strategies for Future Development

IV. Impact from competition, legal environment, and overall economy

Chapter 2 Company Profile

Chapter 3 Corporate Governance Report

I. Organization:

Organization of Yieh Phui Enterprise Co., Ltd.

2. Roles and Responsibility of Departments:

II. Information on the Directors, President, Vice President, Associate Managers and Heads of Departments and Branch Offices: (I) The Chairman

Table 1: Major Shareholders of Institutional Shareholders

(II) Director profile (2)

III. Compensations to Directors, President, and Vice Presidents:

(III) The remuneration of the top 5 remuneration executives of the listed OTC company ( it shall disclose the remuneration paid to each individual)

IV. Implementation of Corporate Governance

(I) Operations of the Board of Directors

Evaluation the performance of the Board of Directors

(II) Operations of the Audit Committee:

Operations of the Auditing Committee

Note 1

(II) Items listed in Article 14 of the Securities and Exchange Act:

(IV) Information on the Members of the Remuneration Committee

Operations of the Remuneration Committee

Regular review of Remuneration:

Yieh Phui Enterprise Co., Ltd.

Statement of Internal Control System

1. Shareholders' Meeting

2. Board of Directors Meeting

V. Information on the CPA Expenses:

VI. Information on Switching CPAs:

Change of accountant information (II)

(II) About the successor independent auditor

IX. Information on the Top 10 Shareholders of the Company Who Are Identified as Related Parties, Spouse or Relative within Second-Degree of Kinship:

Consolidated Shareholding Percentage

Chapter 4 Funding Status

I. Capital and Shares

(I) Source of Share Capital

Information on shelf registration

(III) Share Distribution:

Conditions of Share Distribution

Preferred stocks

(IV) List of Major Shareholders:

List of Major Shareholders

Market Price, Net Worth, Earnings and Dividends

(IX) Repurchase of Shares by the Company

Chapter 5 Operational Overview

I. Business Content:

4. Consolidated planned new product development:

(II) Industry Overview:

2. Consolidated products successfully researched and developed

II. Market, Production and Sales Overview

(I) Market Analysis:

2. Manufacturing process:

Manufacturing process

(IV) Information of Customers that Contribute More Than 10% of Total Purchase/Sales in the Most Recent Two Years:

1. List of suppliers that contribute to more than 10% of the Company's net purchase:

Information of major suppliers in the most recent 2 fiscal years

2. List of customers that contribute to more than 10% of the Company's consolidated net sales:

Information of major customers for the most recent 2 fiscal years

(V) Production Volume and Value of the Most Recent Two Years

III. Employee Information of the Most Recent Two Fiscal Years up to the Printing of this Annual Report:

IV. Environmental Protection Expenditure:

2. Expected environmental protection capital expenditures for next three years 3. Impact after improvements

V. Labor-management Relations:

VI. Important Contracts:

Chapter 6 Financial Conditions

I. Condensed Balance Sheet and Consolidated Income Statement for the Most Recent Five Years

YP Annual Report 2019