YP - Annual Report 2021 | FinancialReports.eu

Stock Code: 2023

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 AND INDEPENDENT AUDITORS’ REPORT

Address: No. 369, Yuliao Road, Qiaotou District, Kaohsiung City Tel: (07) 611-7181

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Item	Page
1. Cover	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5.Consolidated Balance Sheets	5
6.Consolidated Statements of Comprehensive Income	6
7.Consolidated Statements of Changes in Equity	7
8.Consolidated Statements of Cash Flows	8
9.Notes to Consolidated Financial Statements
(1) General Information	9
(2) The Authorization of the Consolidated Financial Statements	9
(3) Application of New and Amended Standards and Interpretations	9~12
(4) Summary of Significant Accounting Policies	12~30
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	31~33
(6) Details of Significant Accounts	33~73
(7) Related Party Transactions	73~81
(8) Pledged Assets	82
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	82~83
(10) Significant Disaster Loss	83
(11) Significant Subsequent Events	83
(12) Others	83~93
(13) Supplementary disclosures	94
A. Significant transactions information	95~108
B. Information on investees	109~115
C. Information on investments in Mainland China	116~117
D. Major Shareholders	118
(14)Segment information	119~121

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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, 2021 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 9, 2022

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

Independent Auditors’ Report

To the Board of Directors and Shareholders Yieh 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, 2021 and 2020, 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, 2021 and 2020, 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, 2021. 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, 2021 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 2021 as a key audit matter.

How the matter was addressed in our audit

Our key audit procedures included analyzing the industry trends, income types, product lines, and customers' two-year operating income status to confirm whether there are abnormal circumstances or centralized transactions and identify possible risks; understanding and testing the internal control procedure to assess the effectiveness of the relevant internal control for revenue recognition; conducting a sample test on the sales transactions of the top ten new customers to confirm the sales transaction actually occurred and performing 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 $14,055,171 thousand as of December 31, 2021, which accounted for 14.77% 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 drastic fluctuations of international metal price, we have thus included this item in the key audit matters.

How the matter was addressed in our audit

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

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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 $5,119,085 thousand and $4,608,127 thousand, representing 5.38% and 5.48% of total consolidated assets as of December 31, 2021 and 2020, and the share of profit of these associates accounted for using equity method amounted to $519,517 thousand and ($178,629) thousand, representing 8.22% and (30.65%) 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 ($8,558) thousand and ($9,939) thousand, representing 5.16% and (16.17%) 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, 2021 and 2020 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.

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

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

Crowe (TW) CPAs Kaohsiung, Taiwan Republic of China March 9, 2022

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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YIEH PHUI ENTERPRISE CO., LTD CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

December31,2021 Amount % $7,209,529 8 289,451 - 117,272 - 441,324 - 2,241,654 3 171,786 - 290,915 - 109,370 - 115,592 - 14,055,171 15 2,720,948 3 - - 1,131,517 1 28,894,529 30 797,724 1 15,993,554 17 46,844,013 49 497,125 1 56,959 - 359,251 - 997,026 1 6,821 - 59,834 - 1,220 - 632,997 1 66,246,524 70 $95,141,053 100	December31,2020	December31,2020
Amount $7,209,529 289,451 117,272 441,324 2,241,654 171,786 290,915 109,370 115,592 14,055,171 2,720,948 - 1,131,517 28,894,529 797,724 15,993,554 46,844,013 497,125 56,959 359,251 997,026 6,821 59,834 1,220 632,997 66,246,524 $95,141,053	Amount $3,730,782 697,978 334,945 572,750 1,860,885 185,803 132,208 74,919 4,834 8,532,107 3,524,160 160,114 807,846 20,619,331 725,334 13,864,013 46,222,080 495,998 101,583 374,347 960,802 20,769 222,895 10,777 414,441 63,413,039 $84,032,370	%
		4 1 - 1 2 - - - - 11 4 - 1
		24
		1 17 55 1 - - 1 - - - 1
		76
		100

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December31,2021 Amount % $13,905,468 15 1,356,226 1 - - 3,062,400 3 1,508,569 2 1,698,869 2 2,373,932 2 777,146 1 135,039 - - - 13,713 - 4,645,390 5 29,476,752 31 32,027,032 33 140,801 - 78,393 - 25,896 - 477,441 1 19,113 - 32,768,676 34 62,245,428 65 18,905,695 20 4,928,849 5 2,882,426 3 706,593 1 5,113,787 6 (1,032,962) (1) 31,504,388 34 1,391,237 1 32,895,625 35 $95,141,053 100	December31,2020	December31,2020
Amount $13,905,468 1,356,226 - 3,062,400 1,508,569 1,698,869 2,373,932 777,146 135,039 - 13,713 4,645,390 29,476,752 32,027,032 140,801 78,393 25,896 477,441 19,113 32,768,676 62,245,428 18,905,695 4,928,849 2,882,426 706,593 5,113,787 (1,032,962) 31,504,388 1,391,237 32,895,625 $95,141,053	Amount $14,925,307 1,289,365 14,495 2,119,604 469,760 995,914 1,753,874 14,393 93,802 70,070 8,419 5,322,794 27,077,797 28,561,294 2,205 73,501 28,038 439,736 18,685 29,123,459 56,201,256 18,905,695 4,929,007 2,866,052 559,232 163,734 (954,509) 26,469,211 1,361,903 27,831,114 $84,032,370	%
		17 2 - 3 1 1 2 - - - - 6
		32
		34 - - - 1 -
		35
		67
		22 6 3 1 - (1)
		31
		2
		33
		100

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

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

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

Item	Note	Year Ended December 31	Year Ended December 31	Year Ended December 31
		2021		2020
		Amount	%	Amount	%
OPERATING REVENUE OPERATING COST GROSS PROFIT OPERATING EXPENSES Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain (loss) Total operating expenses INCOME (LOSS) FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income Other income Other gains and losses Finance costs Share of profit (loss) of associates and joint ventures Total non-operating income and expenses INCOME (LOSS) BEFORE INCOME TAX INCOME TAX (EXPENSE) BENEFIT NET INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures Income tax benefit (expense) related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Share of other comprehensive income (loss) of associates and joint ventures Income tax benefit (expense) related to items that may be reclassified subsequently to profit or loss Total other comprehensive income (loss), net of income tax TOTAL COMPREHENSIVE INCOME (LOSS) NET INCOME (LOSS) ATTRIBUTABLE TO Shareholders of the parent Non-controlling interests Total TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent Non-controlling interests Total EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share Diluted earnings (loss) per share	6(31) 6(6) 6(33) 6(34) 6(35) 6(36) 6(37) 6(38) 6(39) 6(39)	$90,046,653 (79,145,500)	100 (87)	$55,421,795 (51,270,778)	100 (93)
		10,901,153 (4,052,732) (1,714,128) (100,842) 17	13 (5) (2) - -	4,151,017 (2,015,222) (909,885) (92,748) (76)	7 (3) (2) - -
		(5,867,685)	(7)	(3,017,931)	(5)
		5,033,468	6	1,133,086	2
		34,126 219,525 643,227 (1,363,204) 1,749,206	- - 1 (2) 2	105,057 546,409 824,336 (1,146,553) (879,545)	- 1 1 (1) (2)
		1,282,880	1	(550,296)	(1)
		6,316,348 (1,095,895)	7 (1)	582,790 (65,202)	1 -
		5,220,453	6	517,588	1
		(97,423) 93,162 60,080 19,485 (167,727) (86,791) 13,473	- - - - - - -	43,250 (11,208) 155,183 (8,650) 62,132 (155,248) (23,984)	- - - - - - -
		(165,741)	-	61,475	-
		$5,054,712	6	$579,063	1
		$5,202,838 17,615	6 -	$735,238 (217,650)	1 -
		$5,220,453	6	$517,588	1
		$5,041,747 12,965	6 -	$813,293 (234,230)	1 -
		$5,054,712	6	$579,063	1
		$2.75		$0.39
		$2.75		$0.39

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

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YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

Common Stock	Capital Surplus		Retained Earnings			Other Equity Item		TreasuryStock	Shareholders of the parent	Non-controlling Interests	Total Equity
		Legal Reserve	Special Reserve	Unappropriated Earnings (Accumulated Deficits)	Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) On Financial Assets at Fair Value Through Other Comprehensive Income	Gain (Loss) on Hedging Instruments
$19,133,275 - - -	$4,884,281 (21) - -	$2,866,052 - - -	$559,232 - - -	$(614,438) (1,339) 735,238 53,637	$(1,090,046) - - (97,490)	$105,537 - - 121,862	$6,338 - - 46	$- - - -	$25,850,231 (1,360) 735,238 78,055	$1,599,689 - (217,650) (16,580)	$27,449,920 (1,360) 517,588 61,475
-	-	-	-	788,875	(97,490)	121,862	46	-	813,293	(234,230)	579,063
- (227,580) - - - -	- 42,373 2,374 - - -	- - - - - -	- - - - - -	- - - (10,120) - 756	- - - - - -	- - - - - (756)	- - - - - -	(185,207) 185,207 - - - -	(185,207) - 2,374 (10,120) - -	- - (2,374) 10,120 (11,302) -	(185,207) - - - (11,302) -
18,905,695 - - - - -	4,929,007 - - (158) - -	2,866,052 16,374 - - - -	559,232 - 147,361 - - -	163,734 (16,374) (147,361) (231) 5,202,838 (84,063)	(1,187, 536) - - - - (238,497)	226,643 - - - - 161,307	6,384 - - - - 162	- - - - - -	26,469,211 - - (389) 5,202,838 (161,091)	1,361,903 - - 6 17,615 (4,650)	27,831,114 - - (383) 5,220,453 (165,741)
-	-	-	-	5,118,775	(238,497)	161,307	162	-	5,041,747	12,965	5,054,712
- - -	- - -	- - -	- - -	(9,905) - 5,149	- - -	- - (1,425)	- - -	- - -	(9,905) - 3,724	9,905 6,458 -	- 6,458 3,724
$18,905,695	$4,928,849	$2,882,426	$706,593	$5,113,787	$(1,426,033)	$386,525	$6,546	$-	$31,504,388	$1,391,237	$32,895,625

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

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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
	2021	2020
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit (gain) loss Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of(gain) lossof associates and joint ventures Loss on disposal and retirement of property, plant and equipment Transfer of property, plant and equipment to expenses Gain on disposal of investment properties Gain on disposal of noncurrent assets held for sale Impairment loss recognized on nonfinancial assets Other income recognized from rent concessions Others Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities Net changes in operating 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 Decrease (increase) in other financial assets Decrease (increase) in other operating assets Total net changes in operating assets	$6,316,348 2,003,252 44,568 (17) 5,510 1,363,204 (34,126) (21,891) (1,749,206) 9,096 9,641 (10,146) (539,330) 12,412 (41) (217)	$582,790 1,652,369 40,493 76 12,267 1,146,553 (105,057) (43,344) 879,545 14,764 16,699 (750,473) (49,270) - (413) (580)
	1,092,709	2,813,629
	(18,536) 218,403 131,485 (381,408) 13,841 (156,325) (5,523,064) 830,650 (66,466) 9,557	27,701 488,914 272,469 (179,085) 603,990 (73,797) (782,523) (1,573,613) (3,714) (10,777)
	(4,941,863)	(1,230,435)

－－ 8

Year Ended December 31

Item	2021	2020
Net changes in operating liabilities: Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payables Increase (decrease) in provisions Increase (decrease) in advance receipts Increase (decrease) in net defined benefit liability Total net changes in operating liabilities Total net changes in operating assets and liabilities Total adjustments Cash generated from (used in) operations Interest received Dividends received Interest paid Income tax paid Net cash generated from (used in) operating activities 2.CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income and loss Proceeds from disposal 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 investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity method Acquisition of noncurrent assets held for sale Proceeds from disposal of noncurrent assets held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Acquisition of intangible assets Acquisition of right-of-use assets Acquisition of investment properties	942,796 1,038,809 702,955 622,191 41,237 - (59,718)	1,146,817 (330,205) (192,913) 180,797 2,996 (72) (67,791)
	3,288,270	739,629
	(1,653,593)	(490,806)
	(560,884)	2,322,823
	5,755,464 30,790 15,729 (1,404,849) (309,034)	2,905,613 110,396 43,344 (1,156,347) (56,870)
	4,088,100	1,846,136
	(10,000) 29,925 4,571 (27,402) - - 629,374 (2,769,502) 59,178 163,061 (29,472) - -	(58,620) 15,876 16,087 (84,537) 140 (190) 137,531 (4,599,380) 620 702,958 (12,637) (7,943) (20,065)

－－ 8-1

Item	Year Ended December 31	Year Ended December 31
	2021	2020
Proceeds from disposal of investment properties Increase in other financial assets Decrease in other financial assets Increase in other noncurrent assets Decrease in other noncurrent assets Net cash generated from (used in) investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term loans Increase in short-term notes and bills payable Increase in long-term loans Repayment of long-term loans Increase in guarantee deposits received Repayments of principal of lease liabilities Decrease in other noncurrent liabilities Payments for buy-back of treasury shares 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	54,322 (475,761) - - 1,536	1,177,685 - 720,184 (197) -
	(2,370,170)	(2,012,488)
	(1,019,839) 66,900 14,214,826 (11,412,863) 428 (8,052) (2,142) - 6,458	(672,439) 358,000 6,114,376 (6,612,879) 1,152 (8,400) (1,539) (185,207) (11,302)
	1,845,716	(1,018,238)
	(84,899)	(108,345)
	3,478,747	(1,292,935)
	3,730,782	5,023,717
	$7,209,529	$3,730,782

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

－－ 8-2

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

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(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 9, 2022.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

(1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC):
New standards, interpretations and amendments endorsed by the FSC and effective from 2021 are as follows:

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New, Amended or Revised Standards and Interpretations (the “New IFRSs”)[Effective Date Announced ] by IASB Amendments to IFRS 4 “Extension of the Temporary June 25, 2020 (Effective Exemption from IFRS 9” from issue date) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and January 1, 2021 IFRS 16 “Interest Rate Benchmark Reform - Phase 2” Amendments to IFRS 16 “Leases regarding COVID-19 April 1, 2021 (Note) related rent concessions after June 30, 2021”

(Note) Earlier application from January 1, 2021 is allowed by the FSC.

Base on the Group’s assessment, the above standards and interpretations have no significant effect on the Group’s financial position and financial performance.

(2) The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC:

New standards, interpretations and amendments endorsed by the FSC and effective from 2022 are as follows:

by FSC: New standards, interpretations and amendments endorsed from 2022 are as follows:	by the FSC and effective
New IFRSs Amendments to IAS 16 “Property, Plant and Equipment: Proceeds Before Intended Use” Amendments to IAS 37 “Onerous Contract - Cost of Fulfilling a Contract” Amendments to IFRS 3 “Reference to the Conceptual Framework” Annual Improvements to IFRSs 2018-2020	Effective Date Announced by IASB (Note 1)
	January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4) January 1, 2022 (Note 5)

Note 1: Unless stated otherwise, the New IFRSs above are effective for annual periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented, January 1, 2021, in the financial statements in which the entity first applies the amendments.
Note 3: An entity shall apply these amendments to contracts for which it has not yet fulfilled all its obligations on January 1, 2022.
Note 4: These amendments apply to business combinations whose acquisition date occur during the annual reporting periods beginning on or after January 1, 2022.
Note 5: The amendments to IFRS 9 apply to financial liabilities that are modified or exchanged during the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 apply to fair value measurement on or after the beginning of the first annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 apply to the annual reporting periods beginning on or after January 1, 2022.

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A. Amendments to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”
These amendments set out that proceeds from selling items produced while bringing an item of property, plant and equipment to the location and condition necessary for them to be capable of operating in the manner intended by management shall not be recognized as a deduction of the asset. Instead, the proceeds and the costs of those items, measured in accordance with IAS 2, shall be recognized in profit or loss in accordance with applicable IFRS Standards. In addition, the amendment also clarified that the normal operating cost of a test asset refers to the expenditure for assessing whether the technology and physical properties of the asset are sufficient to be used to produce or provide goods or services, lease to others, or for management purposes.
The Group shall apply these amendments retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Group first applies the amendments. The cumulative effect of initially applying the amendments shall be recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of that earliest period presented with comparative information restated.
B. Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract” The amendments set out that, when determining whether a contract is onerous, the cost of fulfilling a contract comprises (a) the incremental costs of fulfilling that contract (for example, direct labor and materials); and (b) an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling that contract among others).
C. Amendments to IFRS 3 “Reference to the Conceptual Framework”
The amendments update a reference to the Framework in IFRS 3 and require the acquirer shall apply IFRIC 21 for a levy that would be within the scope of IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date.
D. Annual Improvement to IFRSs 2018-2020
The annual improvements amend several Standards. Among which, the amendment to IFRS 9 clarifies that, in determining whether an exchange or modification of the terms of a financial liability is substantially different from the original one, only fees paid or received between the Group (the borrower) and the lender, including fees paid or received by either the Group or the lender on the other’s behalf, shall be included in the ‘10 percent’ test of discounting present value of the cash flows under the new terms.

Base on the Group’s assessment, the above standards and interpretations have no significant effect on the Group’s financial position and financial performance.

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(3) The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendment to IFRS 17 ”Initial Application of IFRS 17 and IFRS 9 - Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Noncurrent” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendment to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”	Effective Date Announced by IASB
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution
of Assets between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17
Amendment to IFRS 17 ”Initial Application of IFRS 17 and
IFRS 9 - Comparative Information”
Amendments to IAS 1 “Classification of Liabilities as
Current or Noncurrent”
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting
Estimates”
Amendment to IAS 12 “Deferred Tax Related to Assets and
Liabilities Arising from a Single Transaction”

Effective Date
Announced by IASB

To be determined by
IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023

As of the date the accompany consolidated financial statements are authorized for issue, the Group is still 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.
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.

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(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.

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 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.

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(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 Yieh Phui America Inc. Steel trading 2. Hong Yuh Assets Management Co., Ltd. Lien-Hsin steel Co., Ltd. Metal manufacturing industry	Percentage of Ownership	Percentage of Ownership
	December 31, 2021 December 31, 2020 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 57.41% 57.41% 58.17% 54.55% 54.89% 50.12% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 86.99% 86.99% - 89.66% (Please refer to Note 4 3. (2) A. for details) 78.51% 78.51% 99.04% 99.04% 95.56% 95.56% 80.00% 80.00% 80.00% 80.00% 100.00% 100% 49.36% 47.88%	December 31, 2020

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Investee / Subsidiary Main Businesses 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 9. Shin Phui Steel Corporation Groupco Technology Radio Great Emperor Hotel Co., Ltd. Hotel industry	Percentage of Ownership	Percentage of Ownership
	December 31, 2021 December 31, 2020 10.00% 10.00% 75.00% 75.00% 19.00% 19.00% 100.00% 100.00% 7.48% 7.48% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 91.47% 91.47% 49.97% 49.97% 100.00% 100.00% - - (Please refer to Note 4 3. (2) A. for details) - 100.00% (Please refer to Note 4 3. (2) A. for details) 42.53% 42.53% 0.01% 0.01%	December 31, 2020

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Investee / Subsidiary Main Businesses 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, 2021 December 31, 2020 0.01% 0.01% 41.82% 45.44% 45.10% 49.87% - 70.00% (Please refer to Note 4 3. (2) A. for details) 100.00% 100.00% 100.00% 100.00% - 10.34% (Please refer to Note 4 3. (2) A. for details) 50.64% 52.12% 90.00% 90.00% 100.00% 100.00% 25.00% 25.00% 81.00% 81.00%	December 31, 2020

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(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:
  - Yi Hua International Co., Ltd., CHAMPION LOGISTIC INC, AWID Changshou Co., Ltd. and AWID Shanghai Co., Ltd. had been liquidated in December 2021, July 2021, June 2021, and July 2020, respectively.
- B. The financial statements of subsidiaries, Changshou ChangHuei Trading Co. and Good Honor Holdings Ltd. and Worthing honor Holdings Ltd. for 2021 and 2020, were not audited. The management 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:
- As of December 31, 2021 and 2020, cash and bank deposits of $4,073,600 thousand, and $2,242,530 thousand, respectively 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, 2021：

December 31, 2021：
			Net income (loss)
		Non-controlling	attributable to Non-
Name of Subsidiary	Shareholding %	interests	controlling interests
Yieh Hsing	42.59%	$989,639	$5,605
Enterprise Co., Ltd.
Others		401,598	12,010
Total		$1,391,237	$17,615
December 31, 2020：
			Net income (loss)
		Non-controlling	attributable to Non-
Name of Subsidiary	Shareholding %	interests	controlling interests
Yieh Hsing	42.59%	$977,330	($201,081)
Enterprise Co., Ltd.
Others		384,573	(16,569)
Total		$1,361,903	($217,650)

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.

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B. Summary of the financial information are as follows: a. Balance Sheets:

Current assets Non-current assets Current liabilities Non-current liabilities Equity	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries
	December 31, 2021 $3,074,824 10,073,777 3,541,478 2,153,660 $7,453,463	December 31, 2020
		$2,457,761 10,481,456 2,929,969 2,584,687
		$7,424,561

b. Statements of Comprehensive Income：

Operating revenue Net income (loss) 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
	2021 $7,018,786 $13,160 (7,516) $5,644 $2,404 $ -	2020
		$5,589,791
		($484,760) 1,384
		($483,412)
		($200,511)
		$ -

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
2021 $17,221 (85,152) 110,454 $42,523 208,795 $251,318	2020
	($332,199) (2,747,335) 2,829,954
	($249,580) 458,375
	$208,795

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.

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(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. (Even if a long-term refinancing or re-arrangement of payment agreements is completed after the balance sheet date and before the issuance of the financial report is approved, it is classified as current liabilities).
d. Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Otherwise they are classified as non-current liabilities

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(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. The net gain or loss recognized in profit or loss does not incorporate any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 12(3).
b. Financial assets at amortized cost
Financial assets that meet the following conditions are subsequently measured at amortized cost:
(a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
(b) The contractual terms of the financial assets give rise on specified date to cash flow that are solely payments of principal and interest on the principal amount outstanding.

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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 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

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

4.9 Noncurrent assets 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.

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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 recognized 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 recognized in the Group’s profit or loss, and its share of changes in the associate’s other comprehensive income is recognized 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) Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the 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 recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
(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 recognized 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 recognized 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 recognized 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 recognized 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 recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.

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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 70 years Main office buildings 40 to 60 years Other accessory equipment 5 to 35 years Machinery and equipment 2 to 50 years Other equipment 2 to 41 years

(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 recognized 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 recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using the straight-line method.

4.13 Leases

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.

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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 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.

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.

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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.

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 (e.g. vehicles and drilling rigs) are subsequently measured at cost less accumulated depreciation and accumulated impairment, whereas intangible assets (e.g. 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

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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.

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 value of the defined benefit obligation at the balance sheet date less the fair value of plan assets The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate is determined by using the interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the defined benefit plans.
b. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

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.

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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 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.

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(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.
(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, electronic materials and Food and beverage sales. 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 transferred, in which case it is not recognized as revenue.

When other party participates providing in goods or services to customers, the Group obtains control of the specified goods or services before they are transferred to the customers and, therefore, is acting as a principal in the transaction. On the contrary, the other party is acting as an agent. As the principal, the total amount of the consideration that is expected to be obtained in exchange for the transfer of goods or services is recognized as income. As an agent, the amount of any fees or commissions that the other party expected to obtain in exchange for the provision of goods or services, recognized as income. The charge or commission of the Group may be the net amount of the consideration. The income retained by the Group in exchange for goods or services is the amount retained after payment to the other party.

The Group offers award credits which can be used for future purchases when the customer shops (customer loyalty program). The award credits provide a material right to the customer. The transaction price allocated to the award credits is recognized as a contract liability when collected and will be recognized as revenue when the award credits are redeemed or have expired.

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(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) Room revenue is recognized when services are rendered to customers during the financial reporting periods. Customers pay the bills based on the agreed payment schedule.
(4) 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 Group 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 satisfaction of performance obligations that are expected to be recovered.
(5) 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.

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

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change in an accounting estimate shall be recognized prospectively by including it in profit or loss in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

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 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

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.

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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. 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 monitor if the measurement of fair value is appropriate.

(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 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

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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

The fair values 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

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Item Cash on hand Checking account Demand deposits Cash equivalents Time deposits (with original maturities within three months) Quintuple stimulus voucher and Kaohsiung voucher Total	December 31
	2021 $12,285 1,120,200 5,871,748 169,380 35,916 $7,209,529	2020
		$7,995 696,295 2,903,492 123,000 -
		$3,730,782

1.The financial institutions dealing with the Group are credit worthy, and the Group’s transactions with a number of financial institutions to diversify credit risk are unlikely to be expected to default.
2.The Group had no cash and cash equivalents pledged to others.

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

Item Financial assets - current: Non-derivative Financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stock Total	December 31	December 31
	2021 $28,449 261,002 $289,451	2020
		$35,327 662,651
		$697,978

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Financial liabilities - current: Derivatives Forward exchange contracts Exchange interest rate swap contracts Total	$ - - $ -	$14,237 258
		$14,495

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 derivatives 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:
(1) Forward exchange contracts:
December 31, 2021：None
December 31, 2020：

Currency EUR(BUY) RMB(SELL) USD(BUY) RMB(SELL)	Contract Period April 3, 2020 to January 19, 2021 July 6, 2020 to July 15, 2021	Execution Rate 7.6782-8.00 6.9998-7.11	Contract Amount (in thousands)
			EUR 4,300 USD 10,000

(2) Exchange interest rate swap contracts

(2) Exchange interest rate swap contracts
December 31, 2021：None December 31, 2020： Nominal principal (thousand yuan) Contract period USD 10,000 April 22, 2020 to March 29, 2021	Interest rate paid 0.6%	Charge variable interest rate
		LIBOR 3 months

6.3 Notes receivable, net

Notes receivable, net
Item At amortized cost Notes receivable Less: Loss allowance Net	December 31
	2021 $441,374 (50) $441,324	2020
		$572,859 (109)
		$572,750

1.As of December 31, 2021 and 2020, the Group pledged part 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
3.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 to the suppliers to pay the accounts payable and the endorsement was transferred to the bank for discounting. As the risks and rewards of the notes have been transferred, the Group has derecognized the bank acceptance bills and the corresponding accounts

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payable. The suppliers and the bank 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, 2021 and 2020, the balances were RMB 226,853 thousand, and RMB 337,290 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, 2021 and 2020.

6.4 Accounts receivable, net

Accounts receivable, net
Item At amortized cost Accounts receivable Less: Loss allowance Net	December 31
	2021 $2,247,468 (5,814) $2,241,654	2020
		$1,866,089 (5,204)
		$1,860,885

A. The Group’s accounts receivables of sales of goods. 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 based on encounter parties’ industry characteristics, operation scale and profit status.
B. For the information about the Group’s accounts receivable pledged as collateral, please refer to Note 8 for details.
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 provision matrix and reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend. 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.

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

December 31, 2021 Not past due December 31, 2020 Not past due	Expected credit loss rate 0%-0.5% Expected credit loss rate 0%-0.5%	Gross carrying amount $2,861,473 Gross carrying amount $2,625,420	Allowance for doubtful accounts (ECL) ($6,709) Allowance for doubtful accounts (ECL) ($5,982)	Amortized cost
				$2,854,764
				Amortized cost
				$2,619,438

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

Beginning balance Add: Provision for impairment Less: Write-offs Impact of foreign exchange differences Ending balance	Year Ended December 31	Year Ended December 31
	2021 $5,982 713 (29) 43 $6,709	2020
		$24,640 1,330 (19,961) (27)
		$5,982

As of December 31, 2021 and 2020, the above provision has already taken into consideration collateral or other credit enhancement. The other credit enhancement (e.g., banker’s acceptance and L/C) possessed by above receivables were $1,751,711 thousand, and $1,947,012 thousand, respectively.

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

6.5 Other receivables

Other receivables
Item Business tax refundable Proceeds from disposal of mutual funds Interest receivable Others Total Less: Loss allowance Net	December 31
	2021 $245,405 27,335 4,303 13,872 $290,915 - $290,915	2020
		$114,141 - 967 17,100
		$132,208 -
		$132,208

－－ 36

6.6 Inventories and operating cost

Inventories and operating cost
Item Steel Department and other Non-heavy Industry Department: Raw materials Supplies Work in progress Finished goods Process product By-products and scraps Subtotal Heavy Industry Department： Raw materials Supplies Subtotal Total	December 31
	2021 $4,698,803 452,274 1,660,929 6,896,852 23,122 234,152 13,966,132 81,666 7,373 89,039 $14,055,171	2020
		$3,687,518 427,679 1,019,422 3,118,889 - 176,022
		8,429,530
		99,571 3,006
		102,577
		$8,532,107

1.Inventory gains (losses) recognized as cost of sales are as follows:

Item Cost of inventories sold Construction cost Loss on retirement of Inventory Unallocated manufacturing overhead Inventory counting gain (loss) Purchase and construction contract loss (recovery gain) Inventory valuation loss and obsolescence loss (recovery gain) Impact of foreign exchange difference Total operating cost	Year Ended December 31	Year Ended December 31
	2021 $77,889,315 580,918 17,111 303,697 552 37,906 312,692 3,309 $79,145,500	2020
		$49,937,853 978,208 32,635 495,507 547 2,263 (174,193) (2,042)
		$51,270,778

2.The Group recognized inventory valuation loss (recovery gain) of $312,692 thousand and ($174,193) thousand for the year ended December 31, 2021 and 2020, 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 for the year ended December 31, 2021 and 2020, respectively.

－－ 37

6.7 Prepayments

Prepayments
Item Prepaid material purchase Prepaid (overpaid) sales tax Prepaid insurance Prepaid sea freight Prepaid syndicated loan arrangement fee Other prepayments Total	December 31
	2021 $2,163,238 228,593 97,141 149,035 42,538 40,403 $2,720,948	2020
		$2,688,591 661,438 74,113 26,479 15,100 58,439
		$3,524,160

1.Prepaid syndicated loan arrangement fee was paid to the lead bank of syndicated loan. In December 2021, the Group entered a syndicated loan agreement with 9 joint lending banks including Bank of China, with a credit line of RMB 0.824 billion, The syndicated loan agreement was first actually drawn in January 2022.
Prepaid syndicated loan arrangement fee was paid to the lead bank of syndicated loan. In December 2020, the Group entered a syndicated loan agreement with 9 joint lending banks including Megabank, with a credit line of $4.5 billion, the syndicated loan agreement was first actually drawn in January 2021 and the arrangement fee was transfer to long-term loans deductions.
Please refer to Note 7.3.7. for prepayments with related parties

6.8 Noncurrent assets held for sale / Liabilities directly associated with noncurrent assets held for sale

Noncurrent assets held for sale / Liabilities assets held for sale	directly associated with noncurrent	directly associated with noncurrent
Item Noncurrent assets held for sale Less：Accumulated impairment Net Liabilities directly associated with noncurrent assets held for sale	December 31
	2021 $- - $-	2020
		$160,114 -
		$160,114
		$70,070

1.In December 2020, the Group entered into a contract to sell part of land in Pingnan Section and Pingbei Section, Fangliao Township, Pingtung County. The total contract price was $699,980 thousand. In January 2021, the transfer of ownership was completed in accordance with the scheduled payment terms as stipulated in the contract.
2.Please refer to Note 8 for the information of noncurrent assets held for sale pledged as collateral.

－－ 38

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
	2021 2020 $96,861 $30,395 423,168 644,677 611,488 132,774 $1,131,517 $807,846

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

Item Equity instruments： Domestic listed stocks Domestic unlisted stocks Subtotal Valuation adjustment Total	December 31 2021 2020 $45,000 $45,000 568,248 587,102 $613,248 $632,102 184,476 93,232 $797,724 $725,334

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, 2021 and 2020, 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	December 31
	2021 $3,786,382 1,239,912 4,414,127 4,500,934 2,052,199 $15,993,554	2020
		$3,515,714 1,351,328 3,910,332 3,131,828 1,954,811
		$13,864,013

－－ 39

1. Associates:

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

Shareholding Percentage

1. Associates: (1) Major associates of the Group are as follows: Shareholding	Percentage
CompanyName December 31, 2021 Eliter International Corp. 43.56% E-Da Development Corp. 34.38% Tangeng Iron Works Co., Ltd. 31.16% Yieh United Steel Corp. 30.51%	December 31, 2020
	43.56% 34.38% 31.16% 30.31%

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:
A. Balance Sheets

The summarized financial information s as follows: A. Balance Sheets	in respect of the Group’s major associates	in respect of the Group’s major associates
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	Eliter International Corp.
	December 31,2021 December 31,2020 $7,201,584 $7,219,188 4,938,621 4,963,316 2,606,211 2,693,464 697,067 1,273,422 $8,836,927 $8,215,618 $3,849,039 $3,578,420 (62,657) (62,706) $3,786,382 $3,515,714 E-Da Development Corp.	December 31,2020 $7,219,188 4,963,316 2,693,464 1,273,422 $8,215,618 $3,578,420 (62,706) $3,515,714
	December 31, 2021 $477,649 7,831,811 879,467 3,802,219 $3,627,774 $1,247,378 (7,466) $1,239,912	December 31, 2020
		$605,393 7,974,851 886,455 3,741,418
		$3,952,371
		$1,358,987 (7,659)
		$1,351,328

－－ 40

Tangeng Iron Works Co., Ltd.

December 31,2021 $6,013,103 23,420,763 3,929,425 11,337,528 $14,166,913 $4,414,127 - $4,414,127 Yieh United	December 31,2020	December 31,2020
	$3,180,884 23,623,947 2,439,751 11,815,071
	$12,550,009
	$3,910,332 -
	$3,910,332
	Steel Corp.
	December 31, 2020
	$8,876,058 35,131,909 21,887,485 11,607,523
	$10,512,959
	$3,204,035 (72,207)
	$3,131,828
2021 $316,081 (201,946) 23,256 ($178,690) $ -		2020
		$267,888
		(66,028) 18,011
		($48,017)
		$ -

－－ 41

Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate	E-Da Development Corp.	E-Da Development Corp.
	2021 2020 $561,189 $704,305 (376,515) (322,389) 51,917 39,953 ($324,598) ($282,436) $ - $ - TangengIron Works Co., Ltd.	2020
		$704,305
		(322,389) 39,953
		($282,436)
		$ -
	2021 $16,813,060 1,586,251 30,654 $1,616,905 $ - Yieh United	2020 $10,828,679 (665,673) 74,943 ($590,730) $ -
		Steel Corp.
	2021	2020
	$52,515,518	$31,873,617
	4,734,265 (257,373)	(1,877,471) (259,646)
	$4,476,892	($2,137,117)
	$ -	$ -

(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
	2021 $56,331 13,794 $70,125	2020
		$47,617 34,089
		$81,706

－－ 42

(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
	2021 $6,970,672 3,898,645 $10,869,317	2020
		$4,983,188 4,220,351
		$9,203,539

(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)After considering the amount and distribution of other shareholders which are not extremely dispersed, the Group is not able to lead the company’s activities. Thus, the Group has no control even though it holds 38%, 45%, 43.56%, 34.38% and 30.51% of E-Da Health Biotechnology Co., Ltd., Zheng Xin Security Co., Ltd., Eliter International Corp., E-Da Development Corp., and Yieh United Steel Corp. and is the single largest shareholder. The management of the Company believes the Group only had significant impact to these companies, so classified them as the associates.
(7)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.
(8)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 gain (loss) is recognized using the treasury stock approach.
(9)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.
(10)As of December 31, 2021 and 2020, the Group pledged part of its investments accounted for using equity method as collateral for its borrowings. Please refer to Note 8.

－－ 43

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
	2021 $6,008,209 17,399,842 40,705,311 10,555,826 447,564 $75,116,752 (27,939,956) (332,783) $46,844,013	2020
		$6,008,209 8,485,254 40,118,043 3,230,583 15,077,536
		$72,919,625 (26,375,533) (322,012)
		$46,222,080

Land	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
$6,008,209 - - - - -	$40,118,043 71,629 - (167,843) 779,915 (96,433)	$3,230,583 641,115 - (158,977) 6,851,974 (8,869)	$15,077,536 1,797,188 (9,641) (2,700) (16,414,521) (298)	$72,919,625 2,767,907 (9,641) (441,349) - (119,790)
$6,008,209	$40,705,311	$10,555,826	$447,564	$75,116,752
$ - - - -	$20,384,550 1,200,663 (151,812) (28,184)	$2,114,707 462,332 (157,283) (6,130)	$178,193 - - -	$26,697,545 1,986,952 (373,076) (38,682)
$ -	$21,405,217	$2,413,626	$178,193	$28,272,739

－－ 44

Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$6,008,209 - - - - - -	$8,480,633 7,955 - (8,592) - (35,664) 40,922	$34,700,290 78,823 - (262,395) - 5,417,949 183,376	$3,280,289 211,439 - (331,286) - 57,132 13,009	$16,386,255 4,231,920 (16,699) - (152,445) (5,439,417) 67,922	$68,855,676 4,530,137 (16,699) (602,273) (152,445) - 305,229
Balance, January 1, 2020 Additions Transferred to expenses Disposals write-down accumulated Impairment Reclassification Impact of foreign exchange differences Balance, December 31, 2020 Accumulated depreciation andimpairment
	$6,008,209	$8,485,254	$40,118,043	$3,230,583	$15,077,536	$72,919,625
	$ - - - - - -	$3,771,355 233,024 11,164 (7,846) - 12,398	$19,396,108 1,172,288 (11,164) (249,687) - 77,005	$2,211,471 230,486 - (329,356) - 2,106	$330,638 - - - (152,445) -	$25,709,572 1,653,798 - (586,889) (152,445) 91,509
Balance, January 1, 2020 Depreciation Reclassification Disposals write-down accumulated Impairment Impact of foreign exchange differences Balance, December 31, 2020
	$ -	$4,020,095	$20,384,550	$2,114,707	$178,193	$26,697,545

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

Item Increase in property, plant and equipment Increase/decrease in payables for purchase of equipment Cash paid for acquisition of property, plants and equipment	Year Ended December 31 20201 2020 $2,767,907 $4,530,137 1,595 69,243 $2,769,502 $4,599,380
	20201 $2,767,907 1,595 $2,769,502

2.Please refer to Note 6.36 for details of the amount of capitalized borrowing costs.
3.Impairment losses for property, plant and equipment recognized for 2021 and 2020 were both $0 thousand.
4.The accumulative impairment losses of the painting equipment and other equipment in Pingnan plant was $223,116 thousand due to the termination of expansion of such plant, of which the land was sold in 2020, so the Group reversed the accumulated impairment $152,445 thousand and write off the related equipment to be inspected and construction in progress. The accumulated impairment losses were both $70,671 thousand as of December 31, 2021 and 2020.

－－ 45

5.For the information about property, plant and equipment pledged as collateral, please see Note 8 for details.
6.The Group’s land amounting to both $78,568 thousand as of December 31 2021 and 2020 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

	December 31	December 31
	2021 $504,457 36,842 $541,299 (44,174) - $497,125 Building	2020
Land		$486,602 37,907
		$524,509 (28,511) -
		$495,998
		Total
	$37,907 - (1,065)	$524,509 19,049 (2,259)
	$36,842	$541,299
	$11,004 5,568 (372)	$28,511 16,090 (427)
	$16,200	$44,174
	Building	Total
	$38,759 1,927 (810) (1,969)	$541,778 11,721 (12,000) (16,990)
	$37,907	$524,509
	$6,026 6,283 (810) (495)	$15,682 15,896 (2,759) (308)
	$11,004	$28,511

－－ 46

B. Lease liabilities

. Lease liabilities
Item Carrying amount of lease liabilities - current - noncurrent	December 31
	2021 $13,713 $78,393	2020
		$8,419
		$73,501

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

C. Significant lease activities and clause

The Group rented land and buildings for operation. The lease terms range from 1 to 30 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, 2021 and 2020.

D. Other lease information:

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

Item Short-term lease expense Gross cash outflow (Note)	Year Ended December 31 2021 2020 $19,647 $19,091 $27,740 $27,491
	2021 $19,647 $27,740

(Note): Including principle paid for lease liability.

E. For the information about right-of-use assets pledged as collateral, please see Note 8 for details.

6.14 Investment properties

Investment properties
Item Land Buildings Total cost Less: Accumulated depreciation Accumulated impairment Total	December 31 2021 2020 $124,968 $124,968 - 47,006 $124,968 $171,974 - (2,382) (68,009) (68,009) $56,959 $101,583
	2021 $124,968 - $124,968 - (68,009) $56,959

－－ 47

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

		Land	Buildings	Total
		$124,968 - -	$47,006 (46,755) (251)	$171,974 (46,755) (251)
		$124,968	$ -	$124,968
		$68,009 - - -	$2,382 210 (2,579) (13)	$70,391 210 (2,579) (13)
		$68,009	$ -	$68,009
		Buildings	Construction in progress	Total
	$605,403 - 44,569 (378,652) (146,352) -	$46,281 - - - - 725	$40,554 20,065 (44,569) - (16,050) -	$692,238 20,065 - (378,652) (162,402) 725
Balance, January 1, 2020 Additions Reclassification Disposals Transferred to noncurrent assets held for sale Impact of foreign exchange differences Balance, December 31, 2020 Accumulated depreciation and impairment
	$124,968	$47,006	$ -	$171,974
	$68,009 - -	$1,667 675 40	$ - - -	$69,676 675 40
Balance, January 1, 2020 Depreciation Impact of foreign exchange differences Balance, December 31, 2020
	$68,009	$2,382	$ -	$70,391

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

Item	Year Ended December 31 2021 2020 $ - $ - $- $- $493 $3,324	Year Ended December 31 2021 2020 $ - $ - $- $- $493 $3,324
		2020
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		$ -
		$-
		$3,324

－－ 48

3.As of December 31, 2021 and 2020, the fair values of investment properties held by the Group were $119,492 thousand and $123,953 thousand, respectively, which were based on evaluation appraised by independent appraisers as of December 2021 and 2019. Such evaluation adopted the comparative approach by reference to the market evidence similar to the real estate transaction prices. Those are Level 3 fair value inputs. Please refer to Note 12(3). The 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, 2021 and 2020 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
2021 $464,202 8,207 46,878 $519,287 (160,036) - $359,251 Trademarks Others $8,207 $17,406 - 29,472 $8,207 $46,878 $ - $118 308 5,810 $308 $5,928		2020
		$464,202 8,207 17,406
		$489,815 (115,468) -
		$374,347
Trademarks $8,207 - $8,207 $ - 308 $308		Total $489,815 29,472 $519,287 $115,468 44,568 $160,036
	$17,406 29,472
	$46,878
	$118 5,810
	$5,928

－－ 49

Cost Balance, January 1, 2020 Additions Disposals Impact of foreign exchange differences Balance, December 31,2020 Accumulated amortization and impairment Balance, January 1, 2020 Amortization Disposals Impact of foreign exchange differences Balance, December 31, 2020	Mineral right $504,111 - - (39,909) $464,202 $84,590 40,372 - (9,612) $115,350	Trademarks $8,207 - - - $8,207 $ - - - - $ -	Others	Total
			$10,241 12,637 (5,493) 21	$522,559 12,637 (5,493) (39,888)
			$17,406	$489,815
			$5,470 121 (5,493) 20	$90,060 40,493 (5,493) (9,592)
			$118	$115,468

6.16 Other non-current assets

Other non-current assets
Item Intangible exploration and evaluation assets Other Total Less: Accumulated impairment Net	December 31
	2021 2020 $12,412 $10,536 6,821 10,233 19,233 20,769 (12,412) - $6,821 $20,769

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. However, due to external environmental factors, the construction progress of the smelter was delayed, and the mineral resources have been unable to be exploited and used. After evaluating the recoverable value in the future, an impairment loss of $12,412 thousand was withdrawn in 2021.

6.17 Refundable deposits

Refundable deposits
Item Deposit for dumping margins Performance deposits Rent deposits Others Total	December 31
	2021 $2,098 662 33,194 23,880 $59,834	2020
		$148,596 16,921 32,135 25,243
		$222,895

－－ 50

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 Group to the U.S. that had been covered by the investigation. The antidumping duty is imposed by the U.S. using the retrospective system. If the provisional tax rate paid was higher than the final survey result. The difference between the tax rate paid and the final survey result is presented as “refundable deposit”, otherwise, presented as “other payables”.

6.18 Short-term Loans

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, 2021
	Amount $6,667,992 6,647,476 590,000 $13,905,468 December	Interest Rate 1.39%~5.25% 1.12%~2.55% 1.81%~2.83% 31, 2020
	Amount $7,636,483 6,696,824 592,000 $14,925,307	Interest Rate 1.39%-5.00% 0.93%-2.55% 1.81%-2.83%

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

6.19 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
	2021 $1,358,900 (2,674) $1,356,226 1.69%-2.74%	2020
		$1,292,000 (2,635)
		$1,289,365
		1.67%-2.78%

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

－－ 51

6.20 Other Payables

Other Payables
	December 31
Item	2021	2020
Compensations payable	$764,824	$539,006
Equipment payable	489,768	491,363
Export and transportation expenses payable	170,894	82,812
Tax payable	140,886	5,886
Utility expense payable	66,318	49,025
Dumping margins payable	62,154	-
Business tax payable	57,302	50,213
Interest payable	55,075	55,613
Consumables payable	27,942	28,272
Cash dividends payable - from previous period	22,980	23,065
Repairing charges payable	22,713	18,341
Compensation and remuneration payable to employees and directors - current period	18,955	671
Others	474,121	409,607
Total	$2,373,932	$1,753,874

1.Please refer to Note 7.3.6. for related party transactions.

2.Please refer to Note 6.17 for dumping margins payable.

6.21 Provisions - current

Provisions - current
Item Employee benefits Warranty Onerous contract Derecognized liabilities Total	December 31
	2021 $90,693 3,171 41,175 - $135,039	2020
		$83,394 3,469 3,269 3,670
		$93,802

Item January 1, 2021 Recognized in current period Write-off in current period December 31, 2021	Employee benefits $83,394 90,693 (83,394) $90,693	Warranty $3,469 3,171 (3,469) $3,171	Onerous contract $3,269 41,175 (3,269) $41,175	Derecognized liabilities $3,670 - (3,670) $ -	Total
					$93,802 135,039 (93,802)
					$135,039

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Item January 1, 2020 Recognized in current period Write-off in current period December 31, 2020	Employee benefits $82,750 83,394 (82,750) $83,394	Warranty $3,013 2,068 (1,612) $3,469	Onerous contract $1,006 3,269 (1,006) $3,269	Derecognized liabilities $4,037 - (367) $3,670	Total
					$98,806 88,731 (85,735)
					$93,802

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

6.22 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
	2021 $8,900,000 26,693,011 $35,593,011 489,920 689,078 9,944 $36,781,953 (109,531) (4,645,390) $32,027,032 1.15%-5.38%	2020
		$7,312,500 25,292,911
		$32,605,411 924,240 424,026 26,313
		$33,979,990 (95,902) (5,322,794)
		$28,561,294
		1.50%-5.56%

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. The Group do meet the ratio stipulated in the loan agreements in 2021 in all respects.

6.23 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:

－－ 53

Item Deferred revenue from government grants: Subsidy for engineering construction Less: Accumulated revenue recognized Ending balance	December 31	December 31
	2021 $49,797 (23,901) $25,896	2020
		$50,064 (22,026)
		$28,038

6.24 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 $147,182 thousand and $124,738 thousand for the year ended December 31, 2021 and 2020, 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 contribute 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.
(2) The amounts recognized in the consolidated balance sheet for obligation from defined benefit plans are as

Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability Recorded as: Net defined benefit assets - Noncurrent Net defined benefit liability - Noncurrent Total	December 31	December 31
	2021 $1,660,851 (1,184,630) $476,221 $(1,220) 477,441 $476,221	2020
		$1,603,957 (1,174,998)
		$428,959
		$(10,777) 439,736
		$428,959

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

Year Ended December 31, 2021

	Present value of
	defined benefit	Fair value of	Net defined
Item	obligations	planned assets	benefit liability
Balance as of January 1	$1,603,957	($1,174,998)	$428,959
Cost of service
Current service cost	4,461	-	4,461
Interest expense (income)	4,902	(3,686)	1,216
Recognized in profit and loss	$9,363	($3,686)	$5,677
Remeasurement
Return on plan asset
(Amounts included in interest income or expense are excluded)	$ -	($17,586)	($17,586)
Actuarial (gains) losses -
Effect of change in demographic assumptions	2,798	-	2,798
Effect of change in financial assumptions	(56,896)	-	(56,896)
Experience adjustment	169,107	-	169,107
Recognized in other comprehensive income	$115,009	($17,586)	$97,423
Pension fund contribution	-	(55,838)	(55,838)
Paid pension	(67,478)	67,478	-
Balance as of December 31	$1,660,851	($1,184,630)	$476,221
	Year Ended December 31,		2020
	Present value of
	defined benefit	Fair value of	Net defined
Item	obligations	planned assets	benefit liability
Balance as of January 1	$1,726,682	($1,175,905)	$550,777
Cost of service
Current service cost	6,549	-	6,549
Interest expense (income)	11,838	(8,237)	3,601
Recognized in profit and loss	$18,387	($8,237)	$10,150
Remeasurement
Return on plan asset	$ -	($38,243)	($38,243)
(Amounts included in interest
income or expense are excluded)
Actuarial (gains) losses -
Effect of change in demographic	19	-	19
assumptions
Effect of change in financial	56,776	-	56,776
assumptions
Experience adjustment	(61,802)	-	(61,802)
Recognized in other comprehensive income	($5,007)	($38,243)	($43,250)
Pension fund contribution	-	(72,950)	(72,950)
Paid pension	(136,105)	120,337	(15,768)
Balance as of December 31	$1,603,957	($1,174,998)	$428,959

－－ 55

(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 31,2021 0.65%-0.70% 2.00% 7.7-8 years	December 31,2020 0.30%-0.80% 2.00% 8.5-9 years

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

follows:
Item Discount rate Increase by 0.25% Decrease by 0.25% Expected growth rate of salaries Increase by 0.25% Decrease by 0.25%	December 31
	2021 ($34,952) $36,070 $36,625 ($35,569)	2020
		($36,030)
		$37,243
		$37,860
		($36,675)

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.

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(6) The Group expects to make contributions of $51,890 thousand to the pension plans for the year ended December 31, 2022.

6.25 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 Capital increase in cash December 31 Item January 1 Cancellation of treasury shares December 31	Year Ended December 31, 2021 Shares (thousand shares) Amount 1,890,569 $18,905,695 - - 1,890,569 $18,905,695 Year Ended December 31, 2020
	Shares (thousand shares) 1,913,327 (22,758) 1,890,569	Amount
		$19,133,275 (227,580)
		$18,905,695

2.As of December 31, 2021, the Company had an authorized capital of $20,000,000 thousand with 2,000,000 thousand shares.
3.The Company’s Board of Directors resolved on August 4, 2020 to cancel its treasury stocks. The amount of capital reduction was $227,580 thousand, with 22,758 thousand shares eliminated, and the capital reduction ratio was 1.19%. The record date for capital reduction was set on August 14, 2020.

6.26 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
	2021 $4,060,366 600,112 218,574 8,665 41,132 $4,928,849	2020
		$4,060,366 600,112 218,574 8,665 41,290
		$4,929,007

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

－－ 57

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.

6.27 Retained Earnings

A residual dividend distribution policy is adopted in accordance with the Company’s business expansion and profitability after considering 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 between 20% to 100% of total dividends distributed in accordance with the actual profitability while stock dividends are distributed 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.
3.Special reserve

the reserves in excess of the paid-in capital. Special reserve
Item Provision for debit balance of other equity Provision upon initial application of IFRSs Total	December 31
	2021 $378,836 327,757 $706,593	2020
		$231,475 327,757
		$559,232

(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) On March 9, 2022, the Board of Directors of the Company proposed to amend the Articles of Incorporation of the Company to expressly stipulate that when the special surplus reserve is set aside to the net debit balance of other equity items accumulated in the previous period, if the undistributed earnings in the previous period is insufficient, the amount other than the net profit after tax plus the net profit after tax for the current period will be set aside in the undistributed earnings for the current period. Prior to the amendment, the Company shall set aside earning in accordance with the provisions of Order No. 1010012865 of the Financial Management Certificate and Order no. 1030006415 of the Financial Management Certificate.

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4.The Company’s appropriations of earnings for 2019 had been approved in the shareholders’ meeting held in June 2020. No dividends will be distributed to the shareholders due to accumulated deficit. The appropriation of earnings for 2020 had been proposed by the shareholders’ meeting on August 2021. Details were summarized below:

summarized below:
Item Legal reserve Appropriation for special reserve Cash dividends for common stock Stock dividends for common stock Total	Year Ended December 31,2020
	Earnings appropriation proposal $16,374 147,361 - - $163,735	Dividends per share (NTD)
		- -

As of March 9, 2022, neither dividends nor the earnings appropriation proposal was approved by the Board of Directors of the Company.
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.

6.28 Other Equity Items

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2021 Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Disposal of unrealized gain (loss) on financial assets at fair value through other comprehensive income Balance, December 31, 2021	($1,187,536) (156,617) - (81,880)	$226,643 - 93,030 68,277 (1,425)	$6,384 - - 162 -	($954,509) (156,617) 93,030 (13,441) (1,425)
	($1,426,033)	$386,525	$6,546	($1,032,962)

－－ 59

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2020 Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Disposal of unrealized gain (loss) on financial assets at fair value through other comprehensive income Balance, December 31, 2020	($1,090,046) 48,541 - (146,031)	$105,537 - (10,794) 132,656 (756)	$6,338 - - 46 -	($978,171) 48,541 (10,794) (13,329) (756)
	($1,187,536)	$226,643	$6,384	($954,509)

6.29 Treasury stock

1.P Purpose of treasury stock and changes in quantity: December 31, 2021：None

Unit: Thousand Shares

Year Ended December 31, 2020

January 1 -	Addition 22,758	Reduction (22,758)	December 31
			-

2.In order to protect the Group’s credit and shareholders’ equity, the Board of Directors resolved on March 13, 2020 to repurchase 100,000 thousand shares from March 16 to May 15, 2020. The number of shares repurchased by the Group as of May 15, 2020 was 22,758 thousand shares, with the amount of $185,207 thousand. The Board of Directors resolved on August 4, 2020 to cancel its treasury stocks with 22,758 thousand shares eliminated, and the capital reduction ratio was 1.19%. The record date for capital reduction was set on August 14, 2020.
3.Pursuant to the Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.
4.Pursuant to the Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to shareholder’s rights before it is reissued.

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6.30 Non-controlling Interest

Item Beginning balance 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 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 Gain (loss) on hedging instruments Changes in associates and joint ventures recognized under equity method Increase (decrease) in non-controlling interests Ending balance	Year Ended December 31	Year Ended December 31
	2021 $1,361,903 17,615 (4,251) (1,259) 132 (14) (1,454) 2,193 3 6 16,363 $1,391,237	2020
		$1,599,689 (217,650) 1,296 (17,051) (414) 438 (2,606) 1,756 1 - (3,556)
		$1,361,903

6.31 Operating Revenue

Operating Revenue
Item Revenue from contracts with customers Sales revenue Construction revenue Other operating revenue(Note) Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Year Ended December 31 2021 2020 $89,468,302 $54,423,363 636,880 1,086,627 18,862 - 217 217 $90,124,261 $55,510,207 (27,696) (31,150) (49,912) (57,262) $90,046,653 $55,421,795
	2021 $89,468,302 636,880 18,862 217 $90,124,261 (27,696) (49,912) $90,046,653

(Note)The Group recognizes other operating income on a net basis as an agent for the commissioned sales of goods to the European Union. Please refer to Note 7(3)2. 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:

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(1) Segmented by revenue from different types of goods and services: 2021：

2021：
External customer	Steel coils and steelpipes	Wirerods $6,541,505 $6,541,505 - $6,541,505 Wirerods $5,407,927 $5,407,927 - $5,407,927	Construction revenue $637,097 $ - 637,097 $637,097 Construction revenue $1,086,844 $ - 1,086,844 $1,086,844	Others $3,775,041 $3,775,041 - $3,775,041	Total
	$79,093,010				$90,046,653
Contract revenue Timingof revenue recognition
	$79,093,010 -				$89,409,556 637,097
Revenue recognized at a specific timing Revenue recognized over time Total 2020： External customer
	$79,093,010				$90,046,653
	Steel coils and steelpipes			Others	Total $55,421,795 $54,334,951 1,086,844 $55,421,795
	$46,590,000			$2,337,024
Contract revenue Timingof revenue recognition
	$46,590,000 -			$2,337,024 -
Revenue recognized at a specific timing Revenue recognized over time Total
	$46,590,000			$2,337,024

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

Contract Balances
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	December 31
	2021 $2,854,764 $117,272 $2,913,933 148,467 $3,062,400	2020
		$2,619,438
		$334,945
		$2,035,162 84,442
		$2,119,604

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

when customers make payments. ) Allowance for contract assets:
Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net	December 31
	2021 0%-0.5% $117,677 (405) $117,272	2020
		0%-0.5%
		$336,080 (1,135)
		$334,945

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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 were as follows:

follows:
Beginning balance Add: Provision for (Reversal of) impairment Ending balance	Year Ended December 31
	2021 $1,135 (730) $405	2020
		$2,389 (1,254)
		$1,135

(3) Amount from previous period’s satisfied performance obligations and beginning contract liabilities recognized in the current period as income were $2,035,162 thousand and $857,294 thousand for the years ended December 31, 2021 and 2020, respectively.
(4) As of December 31, 2021 and 2020, the transaction prices allocated to the performance obligations that were not fully satisfied amounted to $554,795 thousand and $637,615 thousand, respectively. The Group will recognize revenue as the construction is being completed and the expected timing for recognition of revenue is on various dates through May 2023.

6.32 Employee benefits, depreciation and amortization expense

Year Ended December 31,2021	Year Ended December 31,2021	Year Ended December 31,2021
OperatingCost $1,898,394 179,600 110,333 409,959 1,587,187 - $4,185,473	OperatingExpense $979,611 85,677 42,507 121,844 410,532 44,568 $1,684,739	Total
		$2,878,005 265,277 152,840 531,803 1,997,719 44,568
		$5,870,212

Year Ended December 31,2020	Year Ended December 31,2020	Year Ended December 31,2020
OperatingCost $1,455,944 138,589 98,686 337,936 1,545,588 - $3,576,743	OperatingExpense $792,422 67,790 36,005 97,089 86,839 40,493 $1,120,638	Total
		$2,248,366 206,379 134,691 435,025 1,632,427 40,493
		$4,697,381

－－ 63

(Note 1)Excluding pension of $19 thousand and depreciation of $5,533 thousand under equipment prepayments and other losses.
(Note 2)Excluding pension of $197 thousand and depreciation of $19,942 thousand under equipment prepayments.
According to Articles of Incorporation, compensation to employees and remuneration to directors shall neither be less than 0.2 % nor more than 0.1% of the net income before tax and before which the compensation to employees and remuneration to directors are deducted from. Compensation to employees and remuneration to directors for 2021 and 2020 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.
Compensation to employees and remuneration to directors for the years ended December 31, 2021 and 2020 has been resolved and approved by the Board of Directors in March 2022 and 2021. Relevant amounts recognized in the financial statements are as follows:

Year Ended December 31	Year Ended December 31	Year Ended December 31
2021 Employees’ Compensation Directors’ Remuneration $12,637 $3,159 12,637 6,318 $ - ($3,159)	2020
Employees’ Compensation $12,637 12,637 $ -	Employees’ Compensation $447 447 $ -	Directors’ Remuneration
		$224 224
		$ -

The above-mentioned employee compensation was distributed in cash.

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.

6.33 Interest Income

Interest Income
Item Bank deposits Refundable deposits Cross currency swap contracts Exchange interest rate swap Others Total	Year Ended December 31
	2021 $17,986 15,933 - 167 40 $34,126	2020
		$23,889 70,786 10,253 - 129
		$105,057

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6.34 Other Income

Other Income
Item Rental income Dividend income Other income Income from subsidy Insurance claims income Income from sales of scraps Others Subtotal Total	Year Ended December 31
	2021 $29,011 21,891 57,226 6,398 73,550 31,449 168,623 $219,525	2020
		$3,965 43,344 115,610 291,160 49,947 42,383
		499,100
		$546,409

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. In July 2020, January 2020, and January 2019, the Group has obtained $124,554 thousand, $166,606 thousand, and $150,000 thousand in insurance claim. After offsetting the insurance claim receivable, $124,554 thousand, $166,606 thousand, and $71,952 thousand are recorded as “other income”.

6.35 Other gains and losses

Other gains and losses
Item Valuation gain (loss) on financial assets mandatorily measured at FVTPL Net foreign exchange gain (loss) Impairment loss recognized on exploration and evaluation assets Gain (loss) from disposal of property, plant, and equipment Gain on disposal of investment properties Gain on disposal of noncurrent assets held for sale Dumping margins Others Total	Year Ended December 31
	2021 ($5,510) 191,162 (12,412) (9,096) 10,146 539,330 (60,982) (9,411) $643,227	2020
		($12,267) 112,947 - (14,764) 750,473 49,270 (46,192) (15,131)
		$824,336

1.For information on dumping margins, please refer to Note 6.17.

－－ 65

6.36 Finance Costs

Finance Costs
	Year Ended	December 31
Item	2021	2020
Interest expense:
Interest on loans	$1,453,016	$1,559,132
Interest on lease liabilities	1,091	1,168
Subtotal	1,454,107	1,560,300
Less: Amount qualified for capitalization	(90,903)	(413,747)
Finance costs	$1,363,204	$1,146,553

6.37 Income Tax

1.Income tax expense

(1) Components of income tax expense

ome Tax ncome tax expense 1) Components of income tax expense
Item Current income tax expense Adjustment to prior year income taxes Tax on undistributed retained earnings Tax on repatriation of offshore funds Land value incremental tax Deferred income tax on temporary differences originated and reversed Income tax expense (benefit)	Year Ended December 31
	2021 $952,740 (903) 287 - 8,905 134,866 $1,095,895	2020
		$33,457 - 208 12,240 27,597 (8,300)
		$65,202

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

Item Remeasurement of defined benefit plans Exchange differences on translation of foreign financial statements Total	Year Ended December 31	Year Ended December 31
	2021 $(19,485) (13,473) $(32,958)	2020
		$8,650 23,984
		$32,634

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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 Unrealized (realized) investment loss Unrealized (realized) impairment loss Gain (loss) on sale of land exempt from income tax Paid (unpaid) pension Tax-exempt subsidy income under Special Act for Relief Other adjustments Loss carryforwards Adjustment to prior year income taxes Additional tax on undistributed retained earnings Tax on repatriation of offshore funds Land value increment tax Net changes of deferred income tax Income tax expense (benefit) recognized in profit or loss	2021 $6,316,348 $1,296,017 (349,841) 64,610 93,552 (31,729) - (107,857) (448) (8,170) (6,157) 2,763 (903) 287 - 8,905 134,866 $1,095,895	2020
		$582,790
		$150,356 175,909 (30,360) 7,378 (15,932) (30,489) (160,012) (15,714) (9,217) 27,451 (65,913) - 208 12,240 27,597 (8,300)
		$65,202

The Group was subject to a tax rate of 20%as stipulated in the Income Tax Act of the Republic of China. The taxable amount in other jurisdictions is calculated based on the tax rate applicable therein.

The Group applied for and was approved the repatriation of offshore funds (including mainland China) within the time limit in accordance with the “The Management, Utilization, and Taxation of Repatriated Offshore Funds Act ” effective from August 15, 2019. The applicable tax rate exempt from taxation is 8% for the first year and 10% for the second year under the general income tax system. A profit-seeking enterprise may apply to the Ministry of Economic Affairs for engaging in substantive investment within one year from the date of repatriating funds and has a 50% tax refund preference when completing the investment within the time limit.

－－ 67

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

	Year Ended December 31,	Year Ended December 31,	2021
Beginning balance $343,618 204,759 35,702 5,000 43,408 11,257 53,694 87,947 52,520 122,897 $960,802 ($50) - (2,155) - ($2,205) $958,597	Recognized in profit or loss ($281,077) - 69,090 - - 92,811 (5,649) (9,506) 6,996 133,504 $6,169 ($4,831) (135,431) (527) (246) ($141,035) ($134,866)	Recognized in other comprehensive income $ - 13,473 - - - - - 17,046 - - $30,519 $ - - 2,439 - $2,439 $32,958	Effect of Exchange Rate Changes ($263) - (178) - - - - - (23) - ($464) $ - - - - $ - ($464)	Ending balance
				$62,278 218,232 104,614 5,000 43,408 104,068 48,045 95,487 59,493 256,401
				$997,026
				($4,881) (135,431) (243) (246)
				($140,801)
				$856,225

	Year Ended December 31,	Year Ended December 31,	2020
Beginning balance $281,029 228,743 56,959 5,000 73,897 3,282 59,838 110,156 54,367 110,580 $983,851	Recognized in profit or loss $62,589 - (22,870) - (30,489) 7,975 (6,144) (13,559) (1,847) 12,317 $7,972	Recognized in other comprehensive income $ - (23,984) - - - - - (8,650) - - ($32,634)	Effect of Exchange Rate Changes - - 1,613 - - - - - - - $1,613	Ending balance
				$343,618 204,759 35,702 5,000 43,408 11,257 53,694 87,947 52,520 122,897
				$960,802

－－ 68

Deferred income tax liabilities Temporary differences Unrealized exchange gains Net defined benefit assets Others Subtotal Total	($594) - (1,939) ($2,533) $981,318	$544 (2,155) 1,939 $328 $8,300	$ - - - $ - ($32,634)	$ - - - $ - $1,613	($50) (2,155) -
					($2,205)
					$958,597

4.Items not recognized as deferred income tax assets:

Item Investment loss recognized under equity method Loss carryforwards Others Total	December 31	December 31
	2021 $937,750 1,060,551 234,278 $2,232,579	2020
		$1,027,590 1,306,952 201,896
		$2,536,438

5.The Company’s income tax returns through 2019 have been ratified by the tax authorities.

6.38 Other Comprehensive Income

Year Ended December	Year Ended December	31, 2021
Before tax ($97,423) 93,162 (10,390) 70,470 55,819	Income tax expense (benefit) $19,485 - - - 19,485	Aftertax
		($77,938) 93,162 (10,390) 70,470
		75,304

－－ 69

(167,727) 9,851 (86,956) 3,622 165 - (254,518) 13,473 ($198,699) $32,958 Year Ended December	(167,727) 9,851 (86,956) 3,622 165 - (254,518) 13,473 ($198,699) $32,958 Year Ended December	(157,876) (83,334) 165
		(241,045)
		($165,741)
		31,2020
Before tax $43,250 (11,208) 20,771 134,412 187,225 62,132 (155,295) 47 (93,116) $94,109	Income tax expense (benefit) ($8,650) - - - (8,650) (30,642) 6,658 - (23,984) ($32,634)	Aftertax
		$34,600 (11,208) 20,771 134,412
		178,575
		31,490 (148,637) 47
		(117,100)
		$61,475

－－ 70

6.39 Earnings (loss) Per Share

Item A.Basic earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Basic earnings (loss) per share (after tax) (NT$) B.Diluted earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Impact on employees' compensation (Note) Weighted average number of ordinary shares outstanding after dilution (thousand shares) Diluted earnings (loss) per share (after tax) (NT$)	Year Ended December 31	Year Ended December 31
	2021 $5,202,838 1,890,569 $2.75 $5,202,838 1,890,569 508 1,891,077 $2.75	2020
		$735,238 1,894,147
		$0.39
		$735,238 1,894,147 33
		1,894,180
		$0.39

(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.

6.40 Transactions with Non-controlling Interests

1. Acquisition of additional equities in subsidiaries

2021:None

2020:

Between January and December 2020, the Group had purchased in cash additional shares of 0.43% and 0.41% for the subsidiaries, Yieh Hsing Enterprise Co., Ltd. and EMMT System Corporation with $8,733 thousand and $2,271 thousand, resulting in the changes in its shareholding percentage from 56.98% to 57.41% and 78.10% to 78.51%, 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 consideration and carrying amount of subsidiaries acquired or disposed	Yieh Hsing Enterprise Co., Ltd. $10,893 (8,733) $2,160	EMMT System Corporation
		$2,485 (2,271)
		$214

－－ 71

Change in ownership interests in subsidiaries 2021:
(1)The subsidiary, Kings Garden International Co., Ltd., issued common stocks in June 2021. After the subscription, the Company’s shareholding increased from 50.12% to 54.89%, Yieh Hsing Enterprise Co., Ltd.’s shareholding reduced from 49.87% to 45.10%, and Shin Phui Steel Corporation’s shareholding remained 0.01%. Since the said transaction did not change the Group’s control over the said subsidiary, it is deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Yieh Phui Enterprise Co., Ltd. ($463,500) 452,169 ($11,331)	Yieh Hsing Enterprise Co., Ltd. $ - 6,504 $6,504	Shin Phui Steel Corporation
			$ - 3
			$3

(2)The subsidiary, Great Emperor Hotel Co., Ltd. issued common stocks in June 2021. After the subscription, the Company’s shareholding increased from 54.55% to 58.17%, Yieh Hsing Enterprise Co., Ltd.’s shareholding reduced from 45.44% to 41.82%, and Shin Phui Steel Corporation’s shareholding remained 0.01%. Since the said transaction did not change the Group’s control over the said subsidiary, it is deemed as an equity transaction.

deemed as an equity transaction.
Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Yieh Phui Enterprise Co., Ltd. ($412,000) 400,067 ($11,933)	Yieh Hsing Enterprise Co., Ltd. $ - 6,849 $6,849	Shin Phui Steel Corporation
			$ - 3
			$3

(3)The sub-subsidiary, PT. E-UNITED FERRO INDONESIA issued common stocks in September 2021. After the subscription, Hong Yuh Assets Management Co., Ltd.’s shareholding increased from 47.88% to 49.36%, and LIAN SO (H.K.) CO., LIMITED’s shareholding reduced from 52.12% to 50.64%. Since the above-mentioned transaction did not change the Group’s control over the said subsidiary, it was deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Hong Yuh Assets Management Co., Ltd. ($27,695) 22,497 ($5,198)	LIAN SO (H.K.) CO., LIMITED
		$ - 5,198
		$5,198

－－ 72

2020:

(1)The sub-subsidiary, Kings Garden International Co., Ltd., issued common stocks in March 2020. After the subscription, the Company’s shareholding increased from 49.28% to 50.12%, Yieh Hsing Enterprise Co., Ltd.’s shareholding reduced from 50.71% to 49.87%, and Shin Phui Steel Corporation’s shareholding remained 0.01%. Since the said transaction did not change the Group’s control over the said subsidiary, it is deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Yieh Phui Enterprise Co., Ltd. ($72,100) 70,603 ($1,497)	Yieh Hsing Enterprise Co., Ltd. $ - 852 $852	Shin Phui Steel Corporation
			$ - 1
			1

(2)The sub-subsidiary, Great Emperor Hotel Co., Ltd. issued common stocks between June and October 2020. After the subscription, the Company’s shareholding increased from 41.18% to 54.55%, Yieh Hsing Enterprise Co., Ltd.’s shareholding reduced from 58.81% to 45.44%, and Shin Phui Steel Corporation’s shareholding remained 0.01%. Since the said transaction did not change the Group’s control over the said subsidiary, it is deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Yieh Phui Enterprise Co., Ltd. ($1,081,500) 1,059,256 ($22,244)	Yieh Hsing Enterprise Co., Ltd. $ - 12,763 $12,763	Shin Phui Steel Corporation
			$ - 5
			$5

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 Yieh United Steel Corp. Yieh Mau Corp. Asiazone Co., Ltd. Zheng Xin Security Co., Ltd. Eliter International Corp. Unipattern Corporation Co., Ltd. E-Da Bus Transportation Co., Ltd.

Related party category Associate Associate Associate Associate Associate Associate Associate

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Name of related party E-DA Tour Bus Co., Ltd. E-Da Development Corp. E-Da Cultural Creative Industry Co., Ltd. E- Da Visual Effects Company Limited. Tangeng Iron Works Co., Ltd. Yieh Hong Enterprise Co., Ltd. Yieh Mau Corp. Li-Hsin Co., Ltd. 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 Apartment Building Management and Maintenance Co., Ltd. E-Da Royal Hotel Company Ltd. E-Da Hospital I-Shou University I-Shou University Internship Center Long Hua Travel Services Co., Ltd. Yieh Mau International Co., Ltd. Shin Huo Environmental Engineering Co., Ltd Yulin Industrial Co., Ltd E-Da Cancer Hospital Guan Ying Enterprise Co., Ltd. E-Da Dachang Hospital Zhengzi Technology Co., Ltd E-DA Healthcare Preschool E-DA Preschool E-DA Bassinet Mother and Baby Care Center E-DA Home Health Care E-DA Nursing Care Center E-DA Postpartum and Baby care Center Wei Hong Investment Development Co., Ltd.

Lianshuo Investment Development Co., Ltd.

Related party category Associate Associate Associate Associate Associate 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 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

Other related party Other related party Other related party Other related party

Other related party

－－ 74

	Name of relatedparty
Chain-dollars Enterprise Co., Ltd.		Other related party
Lian	Cheng Ready-Mixed Products Co.,	Other related party
Ltd.
You,	Jing-Sheng	Other related party
Chen,Yung-Shian		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:

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 December 31 2021 2020 $1,850,513 $1,659,929 2,315,274 898,533 $4,165,787 $2,558,462 $16,293 $2,023 121,635 471,628 137,928 473,651 (49,670) (47,939) $88,258 $425,712
		2021 $1,850,513 2,315,274 $4,165,787 $16,293 121,635 137,928 (49,670) $88,258

(a) Selling price to the related parties, including hot rolled steel coils, galvanized steel coils, scraps (bars), etc. and trading terms were the same with those to other customers. Payment terms 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 were 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 payment terms 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 2021 and 2020, the eliminated construction revenue was $49,670 thousand, and $47,939 thousand, respectively.

－－ 75

2. Purchases

Purchases
Relatedpartycategory/ Name Associate： Yieh United Steel Corp. Other related parties Yieh Hong Enterprise Co., Ltd. Others Total	Year Ended December 31
	2021 $5,012,954 7,742,106 34,635 $12,789,695	2020
		$3,567,447 3,491,708 34,265
		$7,093,420

(a) Items purchased by the Group from above related parties were mainly stainless billets, carbon steel billets, Steel plate, cold rolled steel coils, and hot rolled steel coils. 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.
(b) The amount of associated companies entrusted the Group to sell stainless steel coils to the European Union amounted to $1,049,059 thousand, and the purchase amount of the aforementioned transaction was $1,030,197 thousand, The Group recognizes income on a net basis for the transaction, and the above disclosed purchase amount does not include the purchase of commissioned sales.

3. Contract assets

Contract assets
Relatedpartycategory/ Name Associates Other related party: New Spring construction Corp. Total Less: Loss allowance Total	December 31
	2021 $1,199 37,021 38,220 - $38,220	2020
		$164 92,604
		92,768 -
		$92,768

4. Contract liability

Contract liability
Relatedpartycategory/ Name Associates Other related party: New Spring construction Corp. Others Total	December 31
	2021 $4,266 - 875 $5,141	2020
		$1,239 38,183 1,091
		$40,513

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

assets )
Item Notes receivable Accounts receivable Other receivables	Related party category / Name Associates Other related parties Total Less: Loss allowance Net Associates Other related parties Total Less: Loss allowance Net Associate: Yieh United Steel Corp. Others Other related parties Total Less: Loss allowance Net	December 31
		2021 $59 266 325 - $325 $154,903 17,728 172,631 (845) $171,786 $64,575 57 44,738 109,370 - $109,370	2020
			$5,604 22
			5,626 -
			$5,626
			$185,016 1,456
			186,472 (669)
			$185,803
			$74,203 88 628
			74,919 -
			$74,919

Payables to related parties (excluded loans from related parties)

Name	December 31	December 31	December 31
	2021 2020 $1,633 $253 12,064 240 $13,697 $493 $593 $ - 5,901 9,907 $6,494 $9,907 $31,149 $105,575 50,954 28,313 $82,103 $133,888 December 31		2020
			$253 240
			$493
			$ - 9,907
			$9,907
			$105,575 28,313
			$133,888
2021		2020
$55,604 30 $55,634		$113,383 -
		$113,383

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Asset transaction
(1)Acquisition of property, plant and equipment: 2021:

2021:
Related party category / Name Other related party： New Spring Construction Corp. Others Associate： Unipattern Corporation Co., Ltd. Other	Transaction target Building and construction (Note 1) Other equipment Computer communication equipment (Note 2) Other equipment	Transaction amount
		$238,860 377 193,268 2,710

(Note 1) The above-mentioned transaction prices were by reference to appraisal reports offered by professional institutions, and were agreed on by both parties upon negotiation or through price comparison. As of December 31, 2021, the unpaid portion were $4,101 thousand.
(Note 2) The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2021, the unpaid portion were $21,268 thousand.

2020:

2020:
Related party category / Name Other related party： New Spring Construction Corp. Associate： Unipattern Corporation Co., Ltd. Others	Transaction target Construction in progress (Note 1) Construction in progress (Note 2) Other equipment	Transaction amount
		$745,001 287,075 1,379

(Note 1) The above-mentioned transaction prices were by reference to appraisal reports offered by professional institutions, and were agreed on by both parties upon negotiation or through price comparison. As of December 31, 2020, the unpaid portion were $10,767 thousand.
(Note 2) The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2020, the unpaid portion were $97,817 thousand.
(2)Disposal of property, plant and equipment:
2021:None
2020:

2021:None 2020:
Related party category / Name Other related party	Transaction target Transportation equipment	Transaction amount $215	Gain or loss on disposal
			$49

－－ 78

The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2020, all the transaction amount was fully recovered.

(3)Acquisition of investment properties:

2021:None 2020:

Transaction Type of related party / Name Transaction content amount Other related party ： New Spring Construction Corp. Construction in progress $14,367

The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2020, the unpaid portion was $14,367 thousand.

9. Tenancy Agreement:

(1) Acquire right-of-use assets

nancy Agreement: ) Acquire right-of-use assets
Item Acquire right-of-use assets	Related party category Associate	Year Ended December 31, 2021
		$19,049

(2) Lease Liability:

Item Lease Liability	Related party category Associates	December 31	December 31
		2021 $18,424	2020
			$ -

(3)Miscellaneous expenses:

Item Interest expense Rental expense	Related party category Associates Associates Other related parties Total	December 31	December 31
		2021 $24 $8,066 4,235 $12,301	2020
			$ -
			$6,550 2,092
			$8,642

Above lease terms are based on the contract, and rent is paid monthly or annually.

10. Others

(1)Miscellaneous income

hers Miscellaneous income
Relatedpartycategory Associates Other related parties Total	Year Ended December 31
	2021 $34,299 999 $35,298	2020
		$21,169 538
		$21,707

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

(2)Miscellaneous expenses

Miscellaneous expenses
Relatedpartycategory Associates Other related parties Total	Year Ended December 31
	2021 $74,924 151,364 $226,288	2020
		$57,522 92,468
		$149,990

These were mainly service charges and export expenses.

(3)Construction contracts

(a)Construction contracts in progress with related parties as of December 31, 2021 were as follows:

Type of related party / Name Associates Other related party： New Spring Construction Corp.	Name of construction Precision steel belt factory crane assembly engineering, etc. Above-ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price contract assets / liabilities $81,276 $1,199 / $2,302 $3,416,612 (Note) $37,021 / $ -

(b)Construction contracts in progress with related parties as of December 31, 2020 were as follows:

2020 were as follows:
Type of related party / Name Name of construction Total contract price Associates Door type double host grab of overhead cranes, etc. $8,596 Other related party： New Spring Construction Corp. Above-ground structures construction for E-Da Asia Commercial Plaza, etc. $3,388,026 (Note)	contract assets / liabilities
	$164 / $1,239 $92,604 / $38,183

(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.

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Where the Group participated in the cash offering by related parties and consequently increased its investment are disclosed as follows: 2021:

2021:
Investee Associate： E-Da Bus Transportation Co., Ltd. E- Da Visual Effects Company Limited.	Investment Increment Shares (thousand shares) Amount 1,025 10,252 1,715 17,150	Shareholding Percentage
	Shares (thousand shares) 1,025 1,715	Before Offering 17.09% 49.00%	After Offering
			17.09% 49.00%

2020:

Investee Associate： E Mau Development Crop.	InvestmentIncrement Shares (thousand shares) Amount 5,504 55,040	ShareholdingPercentage	ShareholdingPercentage
	Shares (thousand shares) 5,504	Before Offering 0%	After Offering
			25.60%

Part lands of the Group are unable to be registered under the name of the Group.

Type of related party Major transaction Other related parties Some of the Group’s lands recognized as property, plant, and equipment as well as investment properties, are unable to be registered under the name of the Group temporarily and registered under the executive specialist of the Company and the financial president of subsidiary-Yieh Hsing due to regulation restriction. Accordingly, the lands are mortgage registered to the Group as safeguard measures.

7.4 Information about remunerations to the major management:

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Year Ended December 31	Year Ended December 31
	2021 $117,514 3,443 - - - $120,957	2020
		$103,886 12,866 - - -
		$116,752

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8. PLEDGED ASSETS

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

Item Pledged demand deposits Pledged time deposits Subtotal of other financial assets - current Pledged demand deposits Pledged time deposits Subtotal of other financial assets - noncurrent Property, plant and equipment (net) Noncurrent assets held for sale Right-of-use asset Investment properties Investments accounted for using equity method Notes receivable and accounts receivable Total	December 31 2021 2020 $423,168 $644,677 611,488 132,774 1,034,656 777,451 89,105 139,740 543,892 274,701 632,997 414,441 31,508,904 23,941,229 - 159,832 159,803 165,047 22,355 22,355 2,049,171 1,729,055 366,568 358,347 $35,774,454 $27,567,757
	2021 $423,168 611,488 1,034,656 89,105 543,892 632,997 31,508,904 - 159,803 22,355 2,049,171 366,568 $35,774,454

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Guarantee notes issued by the Group to banks for loans and purchases performance totaled $49,127,184 thousand, and $49,066,365 thousand as of December 31, 2021 and 2020, respectively.
(2) Guarantee notes received by the Group for its contract performance and creditor’s right totaled $1,806,719 thousand, and $1,412,366 thousand, as of December 31, 2021 and 2020, respectively.
(3) The unused letters of credit as of December 31, 2021, and 2020 are as follows:

Item L/C Amount	December 31	December 31
	2021 USD 56,685 NTD 597,440 JPY 4,116	2020
		USD 32,223 NTD 437,122 JPY 1,095,040 EUR 71

(4) As of December 31, 2021 and 2020, guarantees provided to banks by the Group for vouchers sales, performance and warranty amounted to $218,278 thousand, and $49,103 thousand, respectively.
(5) As of December 31, 2021 and 2020, guarantee letters of credit issued by the Group for export business totaled USD19,600 thousand, and USD9,600 thousand, respectively.
(6) The Group entered into raw material purchase agreements with suppliers of Hot Rolled Steel Coils, Zinc Ingot, Aluminum alloy and billets, including ARCELOR, TENNANT, ARSEN and EAST, etc. The price was agreed on by both parties upon negotiation. As of December 31, 2021, the unperformed portion totaled 38,354 tons, amounting to $994,084 thousand.

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(7) Capital expenditures committed but not yet incurred are as follows:

apital expenditures committed but	not yet incurred are as follows:
Item Property, plant and equipment	December 31 2021 2020 $163,041 $1,908,014
	2021 $163,041

(8) Two subsidiaries, Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., 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% shareholding of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd. and acquired all directors’ seats of both companies as of December 31, 2021.

10. SIGNIFICANT DISASTER LOSS:NONE.

11. SIGNIFICANT SUBSEQUENT EVENTS:NONE.

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

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

－－ 83

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. a. Exchange rate exposure and sensitivity analysis

Exchange rate		December31,2021	December31,2021	December31,2021
	Presented amount (New Taiwan Dollars) 2,253,819 1,993,046 692,092 729,878 194,642 1,614,286 2,602,190 760,915	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% December 31,	Effects on profit or loss 22,538 19,930 6,921 - (1,946) (16,143) (26,022) (7,609) 2020	Effects on Equity
27.68 6.3757 0.1568 27.68 0.2405 27.68 6.3757 0.1568 Exchange rate				- - - 7,299 - - - -
	Presented amount (New Taiwan Dollars) 1,533,891 654,169 129,005 729,644 844,145 3,604,751 128,531 128,394	Sensitivity Analysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1%	Effects on profit or loss 15,339 6,542 1,290 - (8,441) (36,048) (1,285) (1,284)	Effects on Equity
28.48 6.5294 1.2299 28.48 28.48 6.5294 8.025 1.2299				- - - 7,296 - - - -

－－ 84

If NTD appreciates against the above-mentioned currencies, held all other variables constant, the impact generated as of December 31, 2021 and 2020 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 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 $191,162 thousand and $112,947 thousand for the years ended December 31, 2021 and 2020, respectively.
(A) 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 2021 and 2020 will increase or decrease by $2,895 thousand and $6,980 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 2021 and 2020 will increase or decrease by $7,977 thousand and $7,253 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

(B) 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, 2021 $1,423,766 (1,448,332) ($24,566) $6,401,162 (50,577,890) ($44,176,728)	December 31, 2020
		$1,223,521 (1,371,285)
		($147,764)
		$3,705,050 (48,809,395)
		($45,104,345)

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

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 2020 will increase or decrease by $2,436 thousand.

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  - 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 the future cash flows, changes along with the market movement. Every one percent decrease (increase) in the market interest rate will increase (decrease) the net profit by ($441,767) thousand and ($451,043) thousand for 2021 and 2020, 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, 2021 and 2020, the top ten clients accounted for 42.07% and 48.61% 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. and Note 6.31. 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:

－－ 86

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 12,2021	December 12,2021	December 12,2021
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - 51,922 12,051,870 10,033 $12,113,825	Contractual cash flows $13,905,468 1,358,900 1,508,569 1,698,869 2,373,932 108,296 36,781,953 19,113 $57,755,100	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	$11,752,928 1,358,900 1,508,569 1,698,869 2,354,977 7,733 1,256,938 5,346	$2,152,540 - - - 18,955 7,653 3,400,555 912	$ - - - - - 15,190 4,847,415 87	$ - - - - - 25,798 15,225,175 2,735			$13,905,468 1,356,226 1,508,569 1,698,869 2,373,932 92,106 36,672,422 19,113
	$19,944,260	$5,580,615	$4,862,692	$15,253,708			$57,626,705

Further information on lease liability maturity analysis is as follows:

	Less than 1 year	1-5 years	5-10 years	10-15 years	10-15 years	15-20 years		Over 20 years	Total undiscounted lease payments
Lease liabilities	$15,386	$40,988	$12,879	$12,278		$12,278		$14,487	$108,296
			December 12,2020
Non-derivative financial Liabilities	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years			Contractual cash flows	Carrying amount
Short-term loans	$12,089,375	$2,835,932	$ -	$ -		$	-	$14,925,307	$14,925,307
Short-term notes and bills payable	1,292,000	-	-	-			-	1,292,000	1,289,365
Notes payable	469,760	-	-	-			-	469,760	469,760
Accounts payable	995,914	-	-	-			-	995,914	995,914
Other payables	1,753,874	-	-	-			-	1,753,874	1,753,874
Lease liabilities (including current)	4,198	5,721	8,992	24,896		53,440		97,247	81,920
Long-term loans
(including current portion)	3,005,392	2,329,412	7,745,904	9,072,657		11,826,625		33,979,990	33,884,088
Guarantee deposits Received	1,211	1,131	3,272	7,186		5,885		18,685	18,685
Subtotal	$19,611,724	$5,172,196	$7,758,168 $9,104,739		$11,885,950			$53,532,777	$53,418,913
Derivative financial
liabilities
Cross currency swap contracts	$14,495	$ -	$ -	$ -		$	-	$14,495	$14,495
	Further information on lease liability maturity analysis is						as	follows:
	Less than 1 year	1-5 years	5-10 years	10-15 years		15-20 years		Over 20 years	Total undiscounted lease payments
Lease liabilities	$9,919	$33,888	$13,211	$12,278		$12,278		$15,673	$97,247

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

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 other comprehensive income or loss - noncurrent Financial liabilities Financial liabilities measured at amortized costs Short-term loans Short-term notes and bills payable Notes payable 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	December31	December31
	2021 $7,209,529 2,854,764 400,285 1,131,517 59,834 632,997 289,451 797,724 13,905,468 1,356,226 3,207,438 2,373,932 36,672,422 19,113 92,106 -	2020
		$3,730,782 2,619,438 207,127 807,846 222,895 414,441 697,978 725,334 14,925,307 1,289,365 1,465,674 1,753,874 33,884,088 18,685 81,920 14,495

(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 and beneficiary certificates with quoted market prices is included in Level 1.

Level 2

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

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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.

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.
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:

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 Financial assets measured at FVTOCI Domestic unlisted stocks Domestic listed stocks Total Item Assets: Recurring fair value Financial assets at fair value through profit or loss Non-derivative financial assets held for trading Domestic unlisted stocks Financial assets measured at FVTOCI Domestic unlisted stocks Domestic listed stocks Total		December 31, 2021
	Level 1 $28,449 - - 24,244 $52,693	Level 2 Level 3 $ - $ - - 261,002 - 773,480 - - $- $1,034,482 December 31, 2020		Total
				$28,449 261,002 773,480 24,244
				$1,087,175

	Level 1 $35,327 - - 29,789 $65,116	Level 2 $ - - - - $-	Level 3 $ - 662,651 695,545 - $1,358,196	Total
				$35,327 662,651 695,545 29,789
				$1,423,312

－－ 90

Liabilities: Recurring fair value Financial liabilities at fair value through profit or loss Derivative financial instruments

$ - $14,495

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.
(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 market participants, 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

－－ 91

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 Beginning balance Addition Disposal Transferred to Investments accounted for using equity method Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income Ending balance	Investment in unquoted financial instruments	Investment in unquoted financial instruments
	Year Ended December 31
	2021 $1,358,196 10,000 (29,925) (379,811) (847) (21,838) 98,707 $1,034,482	2020
		$1,332,041 58,620 (15,876) - (16,087) 6,611 (7,113)
		$1,358,196

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.
The unlisted company stocks held by the Group in an inactive market are mainly based on the market method and net asset value method to estimate the fair value. The market method is judgment is based on the same type of company evaluation, third party quotation, company net value and operating status assessment. The net assets method is based on the assets on the balance sheet of the enterprise as the main basis for evaluating the value of the enterprise.
Quantified information on value fair measured on the basis of major unobservable input value (Level 3):
Part of unlisted stocks are mainly based on market method and net asset value method, in which significant unobservable inputs include liquidity discounts and control premiums. When liquidity discounts decrease or control discount increase, the fair value of these investments will increase.
10.The sensitivity analysis of the fair value on assumption that could possibly and reasonable be substituted for measurement of Level 3 fair value: The assets measured by the fair value of the third level of the fair value hierarchy of the Group are used to measure the significant unobservable inputs of fair value.

－－ 92

Item	Evaluation technology	Check the input value	interval	Input value and fair value relationship
Financial assets at fair	Market	Lack of	10%~30%	The higher the degree of
value through profit or	Approach	liquidity		lack of liquidity, the
loss		discount rate		lower the fair value
				estimate
Financial assets at fair	Market	Lack of	10%~30%	The higher the degree of
value through profit or	Approach	liquidity		lack of liquidity, the
loss		discount rate		lower the fair value
				estimate
	Net Asset	Lack of	5%~15%	The higher the degree of
	Value	liquidity		lack of liquidity, the
	Method	discount rate		lower the fair value
				estimate
		Control	5%~20%	The higher the control
		discount		discount, the lower the
				fair value estimate

(4) Transfer of financial assets:

1. 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, 2021 ：

Counter-party	Advance Amount - Beginningof the Period	Factoring Amount	Amount Collected in Cash	Advance Amount - End of the Period	Annual Interest Rate for the Advance Amount	Line of Credit EUR 2,300 Line of Credit EUR 2,300
			1,801 (EUR 52) Amount Collected in Cash	- (EUR 0) Advance Amount - End of the Period	1.16464% Annual Interest Rate for the Advance Amount
Chang Hwa Bank	25,906 (EUR 746)	49,993 (EUR 1,475)	75,089 (EUR 2,221)	- (EUR 0)	1.16464%

2. Transferred financial assets not fully derecognized: None

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

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13. SUPPLEMENTARY DISCLOSURES

A. Significant transactions information
(a)Financing provided to others (Table 1)
(b)Endorsements/guarantees provided (Table 2)
(c)Marketable securities held (excluding investments in subsidiaries and associates) (Table 3)
(d)Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
(e)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (Table 5)
(f)Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (Table 6)
(g)Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 7)
(h)Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 8)
(i)Trading in derivative instruments (Note 6.2)
(j)The business relationship between the parent and the subsidiaries and significant transactions between them (Table 9)
B. Information on investees (Table 10)
C. Information on investments in mainland China (Table 11)
D. Information of major shareholders: List all shareholders with a stake of 5 percent or greater in shareholding percentage and the number of shares. (Table 12)

－－ 94

TABLE 1

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021

TABLE 1	TABLE 1	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021	Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others For The Year Ended December 31, 2021
		Unit: Thousands of NT Dollar/ Foreign Currency
No.	Creditor	Borrower	General ledger account	Related party	Maximum outstanding balance for the period	Ending balance	Amount actually drawn	Interest rate	Nature of loan	Transaction amount	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party	Ceiling on total loans granted
													Item	Value
1	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Long-term receivable – related party and Other receivables - relatedparty	Y	3,253,895 (RMB197,720) (USD 83,470) (EUR 2,365)	3,138,461 (RMB 197,720) (USD 83,470)	2,995,191 (RMB 157,720) (USD 83,470)	2.00%- 7.53%	2	－	Operating capital	－	－	－	12,601,755 (Note 3)	12,601,755 (Note 3)
		Yieh Phui Enterprise Co., Ltd.	Other receivables - relatedparty	Y	404,985 (USD 14,500)	－	－	2.00%	2	－	Operating capital	－	－	－	12,601,755 (Note 3)	12,601,755 (Note 3)
2	Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Long-term receivable – relatedparty	Y	109,830 (RMB 25,000)	108,538 (RMB 25,000)	108,538 (RMB 25,000)	4.00%	2	－	Operating capital	－	－	－	12,601,755 (Note 3)	12,601,755 (Note 3)
3	Kuo Chang Enterprise Co., Ltd.	United Brightening Development Corp.	Other receivables - relatedparty	Y	25,000	－	－	3.00%	2	－	Operating capital	－	－	－	387,323 (Note 2)	387,323 (Note 1)
4	Shin Yang Steel Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	278,500 (USD 10,000)	193,760 (USD 7,000)	－	2.00%	2	－	Operating capital	－	－	－	416,172 (Note 2)	416,172 (Note 1)
5	Applied Wireless Identifications Group, Inc.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	89,472 (USD 3,200)	88,576 (USD 3,200)	88,576 (USD 3,200)	2.35%- 3.00%	2	－	Operating capital	－	－	－	113,763 (Note 2)	113,763 (Note 1)
6	EMMT Systems Corporation	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	267,360 (USD 9,600)	166,080 (USD 6,000)	166,080 (USD 6,000)	2.00%	2	－	Operating capital	－	－	－	333,890 (Note 2)	333,890 (Note 1)

(Note 1) The maximum amount of total loans to others shall not exceed 40% of the creditor's net worth.

(Note 2) The maximum amount of loans granted to a single entity shall not exceed 40% of the creditor's net worth.

(Note 3) Total loans between foreign entities that are 100% owned directly or indirectly by the Company shall not exceed 40% of the Company’s net worth and loans to a single entity shall not exceed 40% of the Company’s net worth.

(Note 4) Nature of loans is classified as follows: Entities having business relations with the Company is ‘1’; entities with needs for short-term financing is ‘2’.

(Note 5) Transactions between the aforesaid subsidiaries and the parent company have been written off.

－－ 95

TABLE 2

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Endorsements/guarantees provided For The Year Ended December 31, 2021

Unit: Thousands of NT Dollar/ Foreign Currency

No.	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsement/ guarantees provided for a single party	Maximum balance for the period	Ending balance	Amount actually drawn	Amount of endorsement/ guarantees collateralized by properties	Ratio of accumulated endorsement/ guarantee to net equity per latest financial statement	Maximum endorsement/ guarantee allowable	Guarantee provided by parent company to subsidiary	Guarantee provided by a subsidiary to parent company	Guarantee provided to subsidiaries in Mainland China
		Company name	Relationship with the endorser/ guarantor
0	Yieh Phui Enterprise Co., Ltd. (Note 1)	Yieh Phui (China) Technomaterial Co., Ltd.	Investee of the Company’s Sub-subsidiary	31,504,388	8,538,641 (RMB 1,962,500)	6,078,100 (RMB 1,400,000)	1,888,553 (RMB 435,000)	－	19.29%	31,504,388	Y	－	Y
		Shin Yang Steel Co., Ltd.	Subsidiary of the Company	31,504,388	1,236,000	1,236,000	887,320	336,000	3.92%	31,504,388	Y	－	－
		Yieh Phui (Hong Kong) Holdings Limited	Subsidiary of the Company	31,504,388	4,223,180 (USD 148,000)	3,141,680 (USD 113,500)	2,838,085 (USD 75,000) (RMB 175,535)	－	9.97%	31,504,388	Y	－	－
1	Shin Phui Steel Corporation (Note 2)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	1,277,704	981,890	981,890	981,890	981,890	384.24%	1,277,704	－	Y	－
2	Kings Garden International Co., Ltd.(Note 3)	Great Emperor Hotel Co., Ltd.	The same ultimate parent company	31,304,381	8,175,000	8,175,000	8,061,000	8,175,000	182.80%	31,304,381	－	－	－
3	Great Emperor Hotel Co., Ltd. (Note 4)	Kings garden International Co., Ltd.	The same ultimate parent company	33,515,990	7,583,000	7,583,000	7,190,000	7,583,000	158.38%	33,515,990	－	－	－
4	Shin Yang Steel Co., Ltd.(Note 6)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	3,121,289	900,000	900,000	280,000	900,000	86.50%	3,121,289	－	Y	－
5	Yieh Phui (China) Technomaterial Co., Ltd.(Note 5)	Tianjin Lianfa Precision Steel Corporation	Subsidiary of the Company	9,999,128	43,624 (RMB 9,930)	43,111 (RMB 9,930)	43,111 (RMB 9,930)	－	0.43%	9,999,128	Y	－	Y
6	Sin Bang Investment & Development Co., Ltd.(Note 7)	United Brightening Development Corp.	The same ultimate parent company	490,205	200,000	200,000	200,000	200,000	81.60%	490,205	－	－	－

－－ 96

(Note 1): The maximum amount of endorsement/guarantee provided by the Company shall not exceed the Company’s net worth. The same limit applies to the endorsement/guarantee provided by the Company to a single subsidiary.
(Note 2): The maximum amount of endorsement/guarantee provided by Shin Phui Steel Corporation shall not exceed 5 times of Shin Phui’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Phui Steel Corporation to a single entity.
(Note 3): The maximum amount of endorsement/guarantee provided by Kings Garden International Co., Ltd. shall not exceed 7 times of Kings Garden’s net worth. The same limit applies to the endorsement/guarantee provided by Kings Garden International Co., Ltd. to a single entity.
(Note 4): The maximum amount of endorsement/guarantee provided by Great Emperor Hotel Co., Ltd. shall not exceed 7 times of Great Emperor Hotel’s net worth. The same limit applies to endorsement/guarantee provided by Great Emperor Hotel Co., Ltd. to a single entity.
(Note 5): The maximum amount of endorsement/guarantee provided by Yieh Phui (China) Technomaterial Co., Ltd. shall not exceed the net worth of Yieh Phui (China) Technomaterial Co., Ltd. The same limit applies to the endorsement/guarantee provided Yieh Phui (China) Technomaterial Co., Ltd. to a single subsidiary.
(Note 6): The maximum amount of endorsement/guarantee provided by Shin Yang Steel Co., Ltd. shall not exceed 3 times of Shin Yang’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Yang Steel Co., Ltd. to a single entity.
(Note 7) : The maximum amount of endorsement/guarantee provided by Sin Bang Investment & Development Co., Ltd. shall not exceed 2 times of Sin Bang’s net worth. The same limit applies to the endorsement/guarantee provided by Sin Bang Investment & Development Co., Ltd. to a single entity.
(Note 8): The net worth referred to above is based on the latest financial statements audited or reviewed by independent auditors.

－－ 97

TABLE 3

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Marketable securities held (excluding investments in subsidiaries and associates) For The Year Ended December 31, 2021

Unit: Thousand Shares；Thousands of NT Dollar/ Foreign Currency

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Fund/ Fubon 3-Year Maturity Asia USD Bond Fund	None	Financial assets at fair value through profit or loss - current	500	4,453	－	4,453
	Fund/Invesco 3 to 6 Year Maturity Emerging Market Bond Fund	None	Financial assets at fair value through profit or loss - current	100	974	－	974
	Fund/Hua Nan Real Harvest Fund of Funds	None	Financial assets at fair value through profit or loss - current	600	6,186	－	6,186
	Fund/JPMorgan Funds – US Technology Fund - JPM US TechnologyF(acc)–USD	None	Financial assets at fair value through profit or loss - current	1	4,744	－	4,744
	Fund/Allianz Global Investors Income and Growth Fund	None	Financial assets at fair value through profit or loss - current	13	4,963	－	4,963
	Preferred stock/ Eliter International Corp.- Preferred stock E	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	19,706	196,808	－	196,808
		Total			218,128		218,128
	Stock/ TaiwanVes-Power Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,800	79,719	3.60%	79,719
	Stock/ New Spring Construction Corp.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	17,003	130,236	15.49%	130,236
	Stock/ Taiwan Implant Technology Company, Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	701	4,999	4.20%	4,999
	Stock/ Sunny Bank	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	4,723	45,484	0.16%	45,484

－－ 98

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Stock/ Universal Venture Capital Investment Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,100	7,144	0.91%	7,144
	Stock/ Yieh Corporation Limited	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	200	125,462	4.18%	125,462
	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s director	Financial assets at fair value through other comprehensive income or loss - noncurrent	150	4,805	3.00%	4,805
	Stock/ ImageDJ Software Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	24	535	0.96%	535
	Stock/ Chao-Feng Venture Capital Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,000	7,444	0.79%	7,444
	Stock/ Skylark International Hotel Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	20,528	325,181	13.68%	325,181
	Stock/ Neolink Capital Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	3,000	27,667	2.57%	27,667
	Stock/Taiwan Enterprise No.1 Venture Capital Limited Partnership	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	-	10,000	-	10,000
	Stock/ Asia Pacific Telecom Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	2,949	24,244	0.08%	24,244
		Total			792,920		792,920
Worthing Honor Holdings Ltd.	Stock/ SEE Corporation None Financial assets at fair value through profit	None	Financial assets at fair value through profit or loss - current	1	－	－	－
Kuo Chang Enterprise Co.,Ltd.	Preferred stock/ Eliter International Corp.- Preferred stock E	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	1,498	14,961	－	14,961

－－ 99

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
United Brightening Development Corp.	Preferred stock/ Eliter International Corp.- Preferred stock E	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	479	4,787	－	4,787
Yieh Hsing Enterprise Co., Ltd	Fund/ TCB DAH-FA FUND	None	Financial assets at fair value through profit or loss - current	38	2,063	－	2,063
	Fund/Invesco 3 to 6 Year Maturity Emerging Market Bond Fund	None	Financial assets at fair value through profit or loss - current	100	974	－	974
	Fund/Hua Nan Real Harvest Fund of Funds	None	Financial assets at fair value through profit or loss - current	300	3,093	－	3,093
	Fund/Neuberger Berman Disruptive Innovation Equity Securities Investment Trust Fund	None	Financial assets at fair value through profit or loss - current	100	999	－	999
	Preferred stock/Eliter International Corp.- Preferred stock E	An investee accounted for usingequitymethod	Financial assets at fair value through profit or loss - current	4,450	44,446	－	44,446
		Total			51,575	－	51,575
	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s chairman	Financial assets at fair value through other comprehensive income - noncurrent	150	4,805	3.00%	4,805

－－ 100

TABLE 4

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital For The Year Ended December 31, 2021

Unit: Thousand Shares；Thousands of NT Dollar

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investor	Beginning balance	Beginning balance	Addition	Addition	Disposal	Disposal	Disposal	Disposal	Ending balance	Ending balance
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Yieh Phui Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Investments accounted for using equity method	Capital increase by cash	Investee of the Company’s Sub-subsidiary	252,000	2,491,930	40,000	349,512 (Note 1)	－	－	－	－	292,000	2,841,442
	Kings garden International Co., Ltd.	Investments accounted for using equity method	Capital increase by cash	Investee of the Company’s Sub-subsidiary	213,000	2,087,966	45,000	366,906 (Note 2)	－	－	－	－	258,000	2,454,872

(Note 1):Including capital increase by cash of $412,000 thousand, Prepaid investment $134,802 thousand, income and loss on investment accounted for using equity method in the amount of ($185,357) thousand and accumulated earning/loss of ($11,933) thousand recognized due to the failure to subscribe to new shares in proportion to its shareholding percentage.

(Note 2):Including capital increase by cash of $463,500 thousand, income and loss on investment accounted for using equity method in the amount of ($85,263) thousand and accumulated earning/loss of ($11,331) thousand recognized due to the failure to subscribe to new shares in proportion to its shareholding percentage.

－－ 101

TABLE 5

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital For The Year Ended December 31, 2021

									Unit: Thousands of NT Dollar	Unit: Thousands of NT Dollar	Unit: Thousands of NT Dollar	Unit: Thousands of NT Dollar
Company name	Real estate	Transaction date	Transaction amount	Payment terms	Counterparty	Relationship with the seller	Prior transaction of		related counterparty		Price reference	Purpose of acquisition	Other terms
							Owner	Relationship	Transfer Date	Amount
Kings Garden International Co., Ltd.	Construction of commercial building at E-da Asia Plaza	January 28, 2014 ~ January 28, 2021	5,698,870	5,612,158	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.	Related party in substance, Parent company, ultimate parent company	－	－	－	－	Determined at prices agreed on by both parties upon negotiation or through price comparison with reference to appraisal reports issued by professional appraisal institutions	To build a boutique shopping mall	None
Great Emperor Hotel Co., Ltd.			6,453,062	6,098,809								For development of an international hotel

Note: Transactions between the aforesaid subsidiaries and the parent company are eliminated.

－－ 102

TABLE 6

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital For The Year Ended December 31, 2021

Unit: Thousands of NT Dollars

								Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency
Real estate disposed by	Real estate	Transaction date or date of the event	Acquisition date	Carrying value	Transaction amount(Note )	Status of collection of proceeds	Gain (loss) on disposal	Counterparty	Relationship with the seller	Reason for disposal	Price reference	Other terms
Yieh Phui Enterprise Co., Ltd.	No.0001-0062, Pingnan Section, Fangliao Township	December 1,2020	June 6 ,2006	159,643	698,927	Fully recovery	539,284	Shenfeng Special Application Materials Co., Ltd.	－	Enrich the working capital of the company	Evermore Valuation Real Estate Appraisal Firm	None

(Note): The amount of the contract price without tax minus the necessary fee.

－－ 103

TABLE 7

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital For The Year Ended December 31, 2021

			Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Yieh Phui Enterprise Co., Ltd.	Yieh Hong Enterprise Co., Ltd.	Related party in substance	Purchases			T/T or Sight L/C before goods acceptance.	－	－	－	－	－
				7,641,372	23.29%

	Yieh United Steel Corporation	An investee accounted for using equity method	Sales			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	－	－	35,547	3.00%	Accounts receivable
				316,360	0.86%

	Yieh Corporation Limited	Related party in substance	Sales			1-2 months	－	－	12,734	1.07%	Accounts receivable
				2,214,041	6.02%

	Asiazone Co., Limited	An investee accounted for using equitymethod	Sales			1-2 months	－	－	100,257	8.46%	Accounts receivable
				1,218,318	3.31%

	Shin Yang Steel Co., Ltd.	Subsidiary of the Company	Sales	1,318,203	3.58%	1-2 months	－	－	82,612	6.97%	Accounts receivable
	New Spring Construction Corp.	Related party in substance	Sales	121,635	0.33%	Pursuant to the agreement	－	－	－	－	－
	Shin Phui Steel Corporation	Subsidiary of the Company	Sales	335,392	0.91%	1-2 months	－	－	28,190	2.38%	Accounts receivable

－－ 104

Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Shin Yang Steel Co., Ltd.	Yieh Hong Enterprise Co., Ltd.	Related party in substance	Purchases	100,734	3.12%	T/T or Sight L/C before goods acceptance.	－	－	－	－	－
	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	643,429	19.93%	T/T or Sight L/C before goods acceptance.	－	－	－	－	－
Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	Sales	1,446,240 (RMB 333,380)	3.57%	1-2 months	－	－	242,040 (RMB 55,751)	31.84%	Accounts receivable
	Asiazone Co., Limited	An investee of the Parent Company under equity method.	Sales	208,894 (USD 7,547)	0.52%	1-2 months	－	－	－	－	－
Yieh Hsing Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	4,328,189	75.13%	T/T or Sight L/C before goods acceptance.	－	－	－	－	(Note 1)

(Note 1): The amount of associated companies entrusted the Group to sell stainless steel coils to the European Union amounted to $1,049,059 thousand, and the purchase amount of the aforementioned transaction was $1,030,197 thousand, The Group recognizes income on a net basis for the transaction, and the above disclosed purchase amount does not include the purchase of commissioned sales.

(Note 2):Transactions between the aforesaid subsidiaries and the parent company are eliminated.

－－ 105

TABLE 8

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital For The Year Ended December 31, 2021

					Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Creditor	Counterparty	Relationship with the counterparty	Ending balance	Turnover rate	Overdue	receivables	Amount collected subsequent to the end of the reporting period (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Yieh Phui Enterprise Co.,Ltd.	Asiazone Co., Limited	Affiliated enterprises	100,257	9.58	－	－	100,257	－
Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Subsidiaries	2,995,191 (RMB 157,720) (USD 83,470)	(Note 1)	－	－	RMB 40,000	－
Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	108,538 (RMB 25,000)	(Note 1)	－	－	－	－
			242,040 (RMB 55,751)	7.52	－	－	RMB 26,500	－
EMMT Systems Corporation	Yieh Phui (Hong Kong) Holdings Limited	Fellow subsidiary	166,080 (USD 6,000)	(Note 1)	－	－	－	－

(Note 1): These are accounts receivable financing, on which the calculation of turnover doesn’t apply.

(Note 2): Amounts received as of March 9, 2022.

(Note 3):Transactions between the aforesaid subsidiaries and the parent company are eliminated.

－－ 106

TABLE 9

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Intercompany Relationship and Significant Intercompany Transactions For The Year Ended December 31, 2021

Individual transactions not exceeding NT$50,000 thousand are not disclosed. Transactions disclosed in assets or revenue will not be disclosed in the opposite transaction.

Unit: Thousands of NT Dollars/Foreign Currency

				Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				Account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0	Yieh Phui Enterprise	Shin Phui Steel Corporation	1	Right-of-use asset	68,300	－	0.07%
				Sales revenue	335,392	1-2 months after shipment	0.37%
		Shin Yang Steel Co., Ltd.	1	Sales revenue	1,318,203	1-2 months after shipment	1.46%
				Accounts receivable	82,612		0.09%
1	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	1	Long-term receivables and Other receivables	2,995,191	－	3.15%
					(RMB 157,720)
					(USD 83,470)
2	Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	1	Sales revenue	1,446,240	1-2 months after shipment	1.61%
					(RMB 333,380)
				Accounts receivable	242,040 (RMB 55,751)		0.25%
				Long-term receivables	108,538 (RMB 25,000)	－	0.11%
3	APPLIED WIRELESS IDENTIFICATIONS	Yieh Phui (Hong Kong) Holdings Limited	3	Other receivables	88,576 (USD 3,200)	－	0.09%
4	EMMT Systems Corporation	Yieh Phui (Hong Kong) Holdings Limited	3	Other receivable	166,080 (USD 6,000)	－	0.17%

－－ 107

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Transactions between the aforesaid subsidiaries and the parent company have been written off.

－－ 108

TABLE 10

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information on Investees For The Year Ended December 31, 2021

Unit: Thousands of NT Dollar/ Foreign Currency

							Unit: Thousands of NT	Unit: Thousands of NT	Dollar/ Foreign	Currency
Investor	Investee	Location	Main business activities	Initial investment amount		Shares	held as the period-end		Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Hong Kong	Investment	7,455,887	7,455,887	233,500	100.00%	9,952,393	499,615	499,615
	Champion Logistic Inc.	Samoa	Investment	-	118,287	-	-	-	(131)	(118)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	2,833,595	2,833,595	283,584	30.06%	2,612,724	(201,946)	(45,091)
	Yieh Hsing Enterprise Co., Ltd.	Kaohsiung City	Wire rods trading	2,261,296	2,261,296	304,654	57.41%	990,377	13,160	18,456
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,453,572	1,453,572	39,553	11.30%	1,337,428	1,586,251	179,260
	E-Da Development Corp.	Kaohsiung City	Leisure development	2,096,196	2,096,196	209,619	28.44%	1,024,355	(376,515)	(107,089)
	United Brightening Development Corp.	Kaohsiung City	Technical consultation for steel products manufacturing	1,815,593	1,815,593	150,893	95.56%	1,659,556	225,100	215,111
	Shin Yang Steel Co., Ltd.	Kaohsiung City	Steel products related business	870,000	870,000	87,696	100.00%	1,041,900	211,905	212,102
	Yieh Mau Corp.	Kaohsiung City	Trading & manufacturing	422,605	422,605	55,291	23.00%	783,383	560,363	68,522
	Kuo Chang Enterprise Co., Ltd.	Kaohsiung City	Wholesale of hardware	1,356,261	1,356,261	107,370	99.04%	1,241,988	184,792	183,018
	Asiazone Co., Limited	Hong Kong	Steel trading	595,424	595,424	15,090	32.80%	636,632	51,321	16,835
	Shin Phui Steel Corporation	Kaohsiung City	Trading of steel products	214,236	214,236	23,917	100.00%	259,056	10,670	11,778
	Sin Bang Investment & Development Co.,Ltd.	Kaohsiung City	Investment	263,709	284,709	19,103	100.00%	245,102	32,515	32,515

－－ 109

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as theperiod-end	held as theperiod-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	310,348	310,347	48,840	78.51%	655,348	166,595	130,794
	Good Honor Holdings Ltd.	British Virgin Islands	Investment	14,723	14,723	46	100.00%	3,787	(5)	(5)
	Gen-Wan Technology Corp.	Kaohsiung City	Telecommunication	148,610	148,610	3,951	86.99%	54,804	12,284	10,686
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	14,000	14,000	1,400	35.00%	7,588	(5,744)	(2,010)
	E-Da Bus Transportation Co., Ltd.	Kaohsiung City	Bus transportation	60,007	49,755	1,845	17.09%	1,067	(57,761)	(9,869)
	E-DA Tour Bus Co., Ltd.	Kaohsiung City	Bus transportation	20,900	20,900	1,349	19.00%	12,328	(4,105)	(780)
	Worthing Honor Holdings Ltd.	British Virgin Islands	Investment	6,672	6,672	100	100.00%	2,556	1	1
	E United Japan Co., Ltd.	Japan	Steel trading	8,027	8,027	-	47.00%	3,922	707	332
	Skylark Hot Spring & Resort Corp.	Kaohsiung City	Hotel industry	11,700	11,700	1,170	14.63%	-	(1,682)	-
	E-Da Entertainment Co., Ltd.	Kaohsiung City	Entertainment industry	74,100	74,100	7,410	19.00%	75,497	(11,272)	(2,142)
	Li Hui Development Co., Ltd.	Kaohsiung City	Investment	321,216	321,216	64,045	44.56%	300,926	(21,247)	(9,468)	(Note 1)
	Ji Chang Enterprise Co., Ltd.	Kaohsiung City	Investment	5,050	5,050	1,042	45.00%	4,645	(105)	(47)	(Note 1)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	5,023,625	5,023,625	676,661	25.82%	3,809,524	4,734,265	1,221,811	(Note 1)
	Hong Yuh Assets Management Co.,Ltd.	Kaohsiung City	Management service	1,207,200	1,167,200	123,920	80.00%	391,963	(87,871)	(70,297)

－－ 110

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	E-Da Visual Effects Company Limited.	Kaohsiung City	Entertainment industry	27,543	10,393	3,185	49.00%	207	(4,001)	(16,943)
	Lian So(H.K) Co., Limited	Hong Kong	Investment	507,342	507,342	16,560	80.00%	257,635	(44,126)	(35,301)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	3,800	3,800	380	19.00%	3,680	(58)	(11)
	Yieh Phui America Inc.	U.S.	Trading of steel products	292	292	1	100.00%	109,050	45,266	45,266
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	3,007,600	2,595,600	292,000	58.17%	2,706,640	(327,342)	(185,357)
	Prepayment for stock subscription - Great Emperor Hotel Co.,Ltd.	Kaohsiung City	Hotel industry	134,802	-	-	-	134,802	-	-
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,657,400	2,193,900	258,000	54.89%	2,454,872	(157,574)	(85,263)
	Total			35,203,331	34,264,913			32,775,735	7,033,325	2,276,311
Shin Phui Steel Corporation	Groupco Technology Inc.	Taichung City	RADIO	37,492	37,492	3,830	42.53%	3,955	50	21
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	24,562	24,562	3,178	0.12%	17,878	4,734,265	5,833	(Note 1)
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	515	515	50	0.01%	463	(327,342)	(34)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	515	515	50	0.01%	476	(157,574)	(17)

－－ 111

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Gen-Wan Technology Corp.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	27,630	27,630	4,653	7.48%	62,429	166,595	12,459
EMMT Systems Corporation	Groupco Technology Inc.	Taichung City	RADIO	45,000	45,000	4,500	49.97%	4,647	50	25
	Applied Wireless Identifications Group,Inc.	San Francisco, US	RFID	242,545	242,545	40,488	91.47%	260,153	59,380	54,316
	UniPattern Corporation	Kaohsiung City	Manufacturing of computer andperipherals	54,960	54,960	5,200	43.33%	68,325	19,470	8,437
Applied Wireless Identifications Group,Inc.	AWID Asia Co., Ltd.	Kaohsiung City	Telecommunications equipment wholesale	69,454	71,456	3,030	100.00%	18,318	(1,463)	(1,463)
Shin Yang Steel Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	17,385	17,385	2,195	0.08%	12,350	4,734,265	4,029	(Note 1)
Sin Bang Investment & Development Co.,Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	265,482	265,482	7,224	2.07%	244,269	1,586,251	32,740
Kuo Chang Enterprise Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	439,197	439,197	56,817	2.17%	319,685	4,734,265	104,299	(Note 1)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	241,748	219,977	23,555	2.50%	217,094	(201,946)	(6,815)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	786,714	786,714	21,328	6.09%	1,019,546	1,586,251	96,662

－－ 112

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
United Brightening Development Corp.	Chao Ying Investment Development Co.,Ltd.	Kaohsiung City	Investment	341,992	341,992	30,400	100.00%	302,038	40,127	40,127
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	449,508	449,508	58,151	2.22%	327,190	4,734,265	106,747	(Note 1)
	Champion Logistic Inc.	Samoa	Investment	-	4,798	-	-	-	(131)	(13)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,177,838	1,177,838	32,050	9.16%	1,512,010	1,586,251	145,255
	Eliter International Corp.	Kaohsiung City	Construction of buildings	363,755	70,393	33,812	3.58%	311,630	(201,946)	(47,071)
Chao Ying Investment Development Co.,Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	336,957	336,957	8,898	2.54%	300,873	1,586,251	40,327
Hong Yuh Assets Management Co., Ltd.	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	542,365	514,670	1,740	49.36%	290,022	(74,234)	(36,107)
	Prepayment of stock subscription- Lien-Hsin Steel Co.,Ltd.	Indonesia	Metal manufacturing industry	55,440	55,440	-	-	55,440	-	-
	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	1,633	1,633	0.05	10.00%	219	(2,168)	(217)
	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	100,303	100,303	3,787	19.00%	53,619	(21,768)	(10,367)
	Prepayment of stock subscription - Lien-Hung MiningCo.,Ltd.	Indonesia	Nickle mining	7,367	7,367	-	-	7,367	-	-

－－ 113

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Hong Yuh Assets Management Co., Ltd.	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	9,371	9,371	381	75.00%	(42,302)	(18,293)	(13,720)
	Prepayment of stock subscription - Lien Heng MiningCo.,Ltd.	Indonesia	Nickle mining	69,365	69,365	-	-	69,365	-	-
	Asiamax Mining Indonesia	Indonesia	Nickle mining	89,386	89,386	55	100.00%	49,024	687	687
Lian So (H.K) Co., Limited	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	12,456	12,816	0.45	90.00%	1,974	(2,168)	(1,951)
	Lian Yang (Hong Kong) TradingLimited	Hong Kong	Trading business	2,768	2,848	100	100.00%	12,852	(39)	(39)
	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	494,088	508,368	1,785	50.64%	297,523	(74,234)	(38,127)
Lien-Hsin steel Co., Ltd.	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	410,207	429,574	16,142	81.00%	216,632	(21,768)	(44,195)
	Prepayment of stock subscription - Lien-Hung MiningCo.,Ltd.	Indonesia	Nickle mining	72,393	72,393	-	-	72,393	-	-
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	18,586	20,267	127	25.00%	(14,101)	(18,293)	(4,573)
Yieh Hsing Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	2,099,500	2,099,500	209,950	41.82%	1,946,093	(327,342)	(141,952)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,119,500	2,119,500	211,950	45.10%	2,016,706	(157,574)	(72,295)
	United Winner Metals L.P	Virginia, US	Scrap steel recycling	107,334	107,334	-	33.75%	93,246	12,279	4,144

－－ 114

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Hsing Enterprise Co., Ltd.	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	4,000	4,000	400	10.00%	2,168	(5,744)	(574)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	704,450	639,772	69,976	7.42%	644,934	(201,946)	(20,319)
	E-Da Development Corp.	Kaohsiung City	Leisure development	437,915	437,915	43,791	5.94%	215,557	(376,515)	(22,372)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related business	20,204	20,204	2,542	0.10%	14,306	4,734,265	4,668	(Note 1)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	3,800	3,800	380	19.00%	3,680	(58)	(11)
Kings Garden International Co., Ltd.	Yi Hua International Co., Ltd	Kaohsiung City	Leasing, selling and development of residential and commercial buildings	-	7,000	-	-	-	(11,198)	(7,839)
	Hua Li International Co., Ltd.	Kaohsiung City	Daily necessities, cosmetics wholesaler	60,000	60,000	6,000	100.00%	28,733	(27,902)	(27,902)
	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,452	(324)	(42)
Great Emperor Hotel Co., Ltd.	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,452	(324)	(42)

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

(Note 2): Transactions between the aforesaid subsidiaries and the parent company are eliminated.

－－ 115

TABLE 11

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information on Investment in Mainland China For The Year Ended December 31, 2021

Unit: Thousands of NT Dollar/ Foreign Currency

Name of	Name of	Investee in Mainland China	Main business activities	Main business activities	Total Amount of Paid-in Capital	Investment method (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	Ownership held by the Company (direct or indirect) (%)	Share of Profit/Loss (Note 2)	Share of Profit/Loss (Note 2)	Carrying Amount as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
									Outflow	Inflow
Investor
Yieh Phui Enterprise Co., Ltd.		Yieh Phui (China) Techno material Co., Ltd.	Manufacturing and marketing of pickled, cold rolled, galvanized and pre-painted steel coils		6,538,016 (USD 236,200) (Note 6)	(2) a	6,463,280 (USD 233,500)		－	－	6,463,280 (USD 233,500)		494,355	100%	494,355 (2) 2		9,999,128	－
		Changshou ChangHuei Trading Co.	Trading of steel products		43,415 (RMB 10,000)	(2) a (Note 4)	－		－	－		－	517	100%	517 (2) 3		46,577	－
		Tianjin Lianfa Precision Steel Corporation	Manufacturing and marketing of special high grade alloy		373,680 (USD 13,500)	(2) a (Note 5)	－		－	－		－	4,446	100%	4,446 (2) 2		(130,743)	－
AWID Asia Co., Ltd.		AWID Changshou Co., Ltd.	Telecommunications equipment wholesale		8,304 (USD 300)	(1)	8,304 (USD 300)		－	8,304 (USD 300)		－	(1,860)	100%	(1,860) (2) 3		(Note 7)	－

				Investee in Mainland China				Accumulated Investment in Mainland China as of December 31, 2021				Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment
		Investor
	Yieh Phui Enterprise Co., Ltd.			Yieh Phui (China) Technomaterial Co., Ltd.				6,463,280 (USD 233,500)				6,538,016 (USD 236,200)				18,902,633

－－ 116

(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:
- 27.68; RMB: NTD 1: 4.3415). Investment gain or loss recognized in the current period is converted using the average exchange rate in from January 1 to December 31, 2021 (USD: NTD 1: 27.9973; RMB: NTD 1: 4.3381).
(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, 2021, 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 transferred 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.
(Note 7): AWID Sanghai Co., Ltd. was liquidated in June 2021.
(Note 8): Investment in Changshu Chief Leading Edge Construction Materials Co., Ltd. was completely sold in February 2013. Investment amount and earnings were received. Investment in Jiangsu J & Y Engineering Co., Ltd. was liquidated in 2012. Thus:
- (1) Accumulated investment of NT$ 498,539 thousand by investees in China that were disposed of.
- (2) Investment gains received from China investees that were disposed: NT$ 69,518 thousand.
(2) Significant transactions between the Company and investees in Mainland China during January 1 and December 31, 2021, directly or indirectly through the third area are as follows:
Significant transactions between the Company and investees in China: Table 7 attached ~ Table 8 attached in Note 13.
Financing between the Company and investees in China: Table 1 attached in Note 13.
Endorsement and guarantee provided by the Company for investees in China: Table 2 attached in Note 13.

－－ 117

TABLE 12

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information of Major Shareholders December 31, 2021

Name of major shareholder	Number of shares	Percentage of ownership (%)
Yieh United Steel Corporation	302,105,336	15.97%
Weiqiao Investment Development Co., Ltd.	205,719,551	10.88%

Note: The information of major shareholders is based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (included treasury shares) by the Company as of December 31, 2021. The share capital in consolidated financial report may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

－－ 118

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.
Business Unit Great Emperor: Primarily engaging in Hotel, Leisure development, and restaurants.
Business Unit Kings Garden: Primarily engaging in department stores.
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:

－－ 119

Year 2021 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Loss before income tax Income tax benefit Net loss Total assets Total liabilities	Business Unit Yieh Phui $35,190,621 1,663,368 $36,853,989 $3,684,447	Business Unit Yieh Hsing $7,018,786 - $7,018,786 $380,307	Business Unit Yieh Phui (China) $40,644,552 1,446,240 $42,090,792 $1,172,533	Great Emperor $630,851 11,402 $642,253 ($321,131)	Kings Garden $335,365 3,759 $339,124 ($134,150)	All other business units $6,276,148 128,950 $7,386,475 $250,044	Elimination ($49,670) (3,253,719) ($3,303,389) $1,418	Total
								$90,046,653 -
								$90,046,653
								$5,033,468 1,282,880
								$6,316,348 (1,095,895)
								$5,220,453
								$95,141,053
								$62,245,428

Year 2020 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Loss before income tax Income tax benefit Net loss Total assets Total liabilities	Business Unit Yieh Phui $19,990,323 970,859 $20,961,182 $390,938	Business Unit Yieh Hsing $5,589,791 - $5,589,791 ($321,838)	Business Unit Yieh Phui (China) $24,939,377 1,390,254 $26,329,631 $1,228,376	All other business units $4,950,243 86,062 $5,036,305 ($167,409)	Elimination ($47,939) (2,447,175) ($2,495,114) $3,019	Total
						$55,421,795 -
						$55,421,795
						$1,133,086 (550,296)
						$582,790 (65,202)
						$517,588
						$84,032,370
						$56,201,256

－－ 120

(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.

(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
	2021 2020 $21,139,839 $15,667,333 13,260,879 4,759,271 43,999,926 30,689,670 11,584,591 4,270,816 61,418 34,705 $90,046,653 $55,421,795 Year Ended December 31	2020
		$15,667,333 4,759,271 30,689,670 4,270,816 34,705
		$55,421,795
	2021 $48,630,687 14,436,686 690,350 $63,757,723	2020
		$45,021,757 15,307,015 750,018
		$61,078,790

(6) Major customer information: No customer has reached the disclosure standard.

－－ 121

AI assistant

YP — Annual Report 2021

51950_rns_2021-12-01_fd150c3c-426d-4c98-8f0d-fe4281bd387a.pdf

Table of Contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Description of key audit matter

How the matter was addressed in our audit

Valuation of inventory

Description of key audit matter

How the matter was addressed in our audit

Other Matters

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

YIEH PHUI ENTERPRISE CO., LTD CONSOLIDATED BALANCE SHEETS

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

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. THE AUTHORIZATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of Preparation

4.3 Basis of Consolidation

(2) The subsidiaries in the consolidated financial statements:

B. Summary of the financial information are as follows: a. Balance Sheets:

b. Statements of Comprehensive Income：

4.4 Foreign Currencies

4.5 Classification of Current and Noncurrent Assets and Liabilities

4.6 Cash and cash equivalents

4.7 Financial instruments

4.8 Inventories

4.9 Noncurrent assets held for sale

4.10 Investments accounted for using equity method - associates

4.11 Property, Plant and Equipment

4.12 Government grants

4.13 Leases

Right-of-use asset

4.14 Investment properties

4.15 Intangible assets

4.16 Other non-current assets - exploration and evaluation assets

4.17 Impairment of non-financial assets

4.18 Provisions

4.19 Employee benefits

4.20 Share capital

4.21 Share-based payment transactions

4.22 Income tax

4.23 Revenue Recognition

4.24 Borrowing costs

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

5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

(2) Lease term

5.2 Critical accounting estimates and assumptions

(1) Estimated impairment of financial assets

(2) Process of fair value measurement and evaluation

(3) Impairment assessment of tangible and intangible assets

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

(5) Realisability of deferred tax assets

(6) Evaluation of inventories

(7) Calculation of accrued pension obligations

(8) Tenant's increase in borrowing interest rate

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

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

6.3 Notes receivable, net

6.4 Accounts receivable, net

6.5 Other receivables

6.6 Inventories and operating cost

6.7 Prepayments

6.8 Noncurrent assets held for sale / Liabilities directly associated with noncurrent assets held for sale

6.9 Other financial assets - current

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

6.11 Investments accounted for using equity method

YP Annual Report 2021