YP - Annual Report 2021 | FinancialReports.eu

Stock Code: 2023

YIEH PHUI ENTERPRISE CO., LTD . STANDALONE 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. Independent Auditors’ Report	3
4. Standalone Balance Sheets	4
5. Standalone Statements of Comprehensive Income	5
6. Standalone Statements of Changes in Equity	6
7. Standalone Statements of Cash Flows	7
8.Notes to Standalone Financial Statements
(1) General Information	8
(2) The Authorization of the standalone Financial Statements	8
(3) Application of New and Amended Standards and Interpretations	8~11
(4) Summaryof Significant AccountingPolicies	11~23
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	24~26
(6) Details of Significant Accounts	26~60
(7) Related PartyTransactions	60~69
(8) Pledged Assets	70
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	70~71
(10) Significant Disaster Loss	71
(11) Significant Subsequent Events	71
(12) Others	71~80
(13) SupplementaryDisclosures	81
A. Significant transactions information	82~93
B. Information on investees	94~99
C. Information on investments in Mainland China	100~101
D. Major Shareholders	102
(14)Segment information	102
9. Statements of major accountingitem	103~130

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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 accompanying standalone balance sheets of Yieh Phui Enterprise Co., Ltd. (the “Company") as of December 31, 2021 and 2020, and the standalone statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the standalone 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 standalone financial statements present fairly, in all material respects, the standalone financial position of the Company as of December 31, 2021 and 2020, and its standalone financial performance and its standalone cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our 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 standalone Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the standalone 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 Company's standalone financial statements for the year ended December 31, 2021 are stated as follows:

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Revenue recognition

Please refer to Note 4.18 to the standalone financial statements for the accounting policy on revenue recognition; Note 5.1.(1) for major accounting estimates and assumptions of revenue recognition; and Note 6.26 for the details of revenue recognition.

Description of key audit matter

Due to fierce competition in the industry, the Company 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 4.7 to the standalone 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 Company's inventory amounted to $7,565,814 thousand as of December 31, 2021, which accounted for 14.18% 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.

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 standalone financial statements was based solely on the reports of the other independent accountants. Investments in these associates amounted to $5,019,274 thousand and $4,518,839 thousand, representing 9.41% and 9.87% of total standalone assets as of December 31, 2021 and 2020, and the share of profit of these associates accounted for using equity method amounted to $509,171 thousand and

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($175,775) thousand, representing 8.08% and (20.99%) of total standalone 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 ($8,736) thousand and ($10,372) thousand, representing 5.42% and (13.29%) of total standalone comprehensive income for the years then ended, respectively.

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

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

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

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

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.

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

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

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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financia1 statements, including the disclosures, and whether the standalone 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 Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethica1 requirements regarding independence, and to communicate with them all re1ationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone 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.

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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 parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only 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 parent company only financial statements shall prevail.

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YIEH PHUI ENTERPRISE CO., LTD STANDALONE BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

December31,2021 Amount % $915,280 2 218,128 - 70,702 - 6,836 - 920,688 2 258,495 - 226,334 - 61,872 - - - 7,565,814 15 413,555 1 - - 55,001 - 10,712,705 20 792,920 1 32,775,735 61 7,260,302 14 282,984 1 443,349 1 539,119 1 545,925 1 160 - 42,640,494 80 $53,353,199 100	December31,2020	December31,2020
Amount $915,280 218,128 70,702 6,836 920,688 258,495 226,334 61,872 - 7,565,814 413,555 - 55,001 10,712,705 792,920 32,775,735 7,260,302 282,984 443,349 539,119 545,925 160 42,640,494 $53,353,199	Amount $338,824 234,138 322,636 27,788 1,101,844 234,163 100,068 10,506 99 3,351,119 231,594 159,832 164,162 6,276,773 690,916 29,773,995 7,108,161 298,214 443,349 705,423 422,407 46,238 39,488,703 $45,765,476	%
		1 1 1 - 2 1 - - - 7 1 - -
		14
		2 65 14 1 1 2 1 -
		86
		100

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December31,2021 Amount % $5,764,136 11 648,832 1 1,908,988 4 455,374 1 769,888 1 857,639 2 752,666 1 84,691 - - - 9,550 - 427,459 1 11,679,223 22 9,402,884 18 140,277 - 190,909 - 433,518 1 2,000 - 10,169,588 19 21,848,811 41 18,905,695 36 4,928,849 9 2,882,426 5 706,593 1 5,113,787 10 (1,032,962) (2) 31,504,388 59 $53,353,199 100	December31,2020	December31,2020
Amount $5,764,136 648,832 1,908,988 455,374 769,888 857,639 752,666 84,691 - 9,550 427,459 11,679,223 9,402,884 140,277 190,909 433,518 2,000 10,169,588 21,848,811 18,905,695 4,928,849 2,882,426 706,593 5,113,787 (1,032,962) 31,504,388 $53,353,199	Amount $7,911,299 599,115 515,069 345,662 411,842 463,749 - 52,176 70,000 10,307 1,988,415 12,367,634 6,324,384 - 199,663 402,584 2,000 6,928,631 19,296,265 18,905,695 4,929,007 2,866,052 559,232 163,734 (954,509) 26,469,211 $45,765,476	%
		18 1 1 1 1 1 - - - - 4
		27
		14 - - 1 -
		15
		42
		41 11 7 1 - (2)
		58
		100

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

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YIEH PHUI ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

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

Note	Year Ended December 31	Year Ended December 31	Year Ended December 31
	2021		2020
	Amount	%	Amount	%
6(26) 6(6) 6(28) 6(29) 6(30) 6(31) 6(32) 6(33) 6(34) 6(34)	$36,785,446 (31,340,778)	100 (85)	$20,936,210 (19,419,910)	100 (93)
	5,444,668 (1,430,599) (395,087)	15 (4) (1)	1,516,300 (824,390) (323,542)	7 (3) (2)
	(1,825,686)	(5)	(1,147,932)	(5)
	3,618,982	10	368,368	2
	16,256 130,487 606,863 (349,428) 2,276,311	- - 2 (1) 6	73,103 429,017 649,638 (382,190) (300,571)	- 2 3 (2) (1)
	2,680,489	7	468,997	2
	6,299,471 (1,096,633)	17 (3)	837,365 (102,127)	4 -
	5,202,838	14	735,238	4
	(78,859) 92,851 47,480 15,772 (251,808) 13,473	- 1 - - (1) -	37,591 (12,402) 157,828 (7,518) (73,460) (23,984)	- - - - - -
	(161,091)	-	78,055	-
	$5,041,747	14	$813,293	4
	$2.75		$0.39
	$2.75		$0.39

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

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YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Common Stock	Capital Surplus		Retained Earnings			Other EquityItem		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 Hedginginstruments
$ 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
-	-	-	-	788,875	(97,490)	121,862	46	813,293
- (227,580) - - -	- 42,373 2,374 - -	- - - - -	- - - - -	- - - (10,120) 756	- - - - -	- - - - (756)	- - - - -	(185,207) - 2,374 (10,120) -
$ 18,905,695	$ 4,929,007	$ 2,866,052	$ 559,232	$ 163,734	$(1,187,536)	$ 226,643	$ 6,384	$ 26,469,211
- - - - -	- - (158) - -	16,374 - - - -	- 147,361 - - -	(16,374) (147,361) (231) 5,202,838 (84,063)	- - - - (238,497)	- - - - 161,307	- - - - 162	- - (389) 5,202,838 (161,091)
-	-	-	-	5,118,775	(238,497)	161,307	162	5,041,747
- -	- -	- -	- -	(9,905) 5,149	- -	- (1,425)	- -	(9,905) 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

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

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YIEH PHUI ENTERPRISE CO., LTD. STANDALONE 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 Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss (gain) of associates, subsidiaries and joint ventures Loss on disposal and retirement of property, plant and equipment Gain on disposal of investment properties Gain on disposal of non-current assets held for sale Gain on disposal of investments 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 Total net changes in operating assets 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 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	$6,299,471 499,603 15,630 349,428 (16,256) (21,621) (2,276,311) 12,128 - (539,284) (110,716) (41) 8,478	$837,365 509,644 (3,673) 382,190 (73,103) (42,969) 300,571 10,968 (750,788) (49,270) - (413) 3,252
	(2,078,962)	286,409
	(20,942) 252,664 21,020 180,535 (24,509) (150,147) (4,214,695) (197,061)	16,335 419,031 (22,943) (3,886) 16,504 (332) (37,106) (41,153)
	(4,153,135)	346,450
	1,393,919 109,712 358,046 333,299 32,515 (47,925)	14,124 (270,027) (424,092) 47,937 1,357 (63,829)
	2,179,566	(694,530)
	(1,973,569)	(348,080)
	(4,052,531)	(61,671)
	2,246,940 16,256 22,780 (357,276) (8,042)	775,694 73,452 219,732 (395,102) (39,888)
	1,920,658	633,888

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Item	Year Ended December 31	Year Ended December 31
	2021	2020
2.CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income and loss Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through profit or loss 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 Increase in refundable deposits Decrease in refundable deposits Acquisition of right-of-use assets Acquisition of investment properties Proceeds from disposal of investment properties Decrease in other financial 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 Decrease in guarantee deposits received Repayments of principal of lease liabilities Payments for buy-back of treasury shares Net cash generated from (used in) financing activities 4.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5.CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6.CASH AND CASH EQUIVALENTS AT END OF PERIOD	(10,000) 4,571 - (868,640) 23,505 - 629,116 (586,100) (123,518) - - - - 155,239	($15,000) 16,087 284,488 (1,559,693) 581,023 (190) 137,461 (208,317) - 716,983 (7,943) (20,065) 1,178,282 4,974
	(775,827)	1,108,090
	(2,147,163) 50,000 9,293,079 (7,754,820) - (9,471) -	(224,823) - 200,000 (1,848,307) (100) (10,247) (185,207)
	(568,375)	(2,068,684)
	576,456 338,824	(326,706) 665,530
	$915,280	$338,824

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

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YIEH PHUI ENTERPRISE CO., LTD. NOTES TO STANDALONE 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 These standalone financial statements are presented in the Company’s functional currency, New Taiwan Dollars.
2 THE AUTHORIZATION OF THE STANDALONE FINANCIAL STATEMENTS
The accompanying standalone 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 Company’s assessment, the above standards and interpretations have no significant effect on the Company’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:

from 2022 are as follows:
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 Company 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 Company 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 Company (the borrower) and the lender, including fees paid or received by either the Company 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 Company’s assessment, the above standards and interpretations have no significant effect on the Company’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

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

As of the date the accompany standalone financial statements are authorized for issue, the Company 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 Company completes the evaluation.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these standalone 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 standalone financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

4.2 Basis of Preparation

(1) Except for the following items, the standalone 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.
(2) The preparation of the standalone 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 Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the

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standalone financial statements are disclosed in Note 5.

(3) When preparing the standalone financial statements, the Company account for subsidiaries, associates and joint ventures by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the standalone financial statements, the differences of the accounting treatment between the standalone basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures in the standalone financial statements.

4.3 Foreign Currencies

(1) Foreign currency transactions and balance
A. Foreign currency transactions are translated into the functional currency using the exchange rates on the trade dates or measurement date. Therefore, foreign exchange differences resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
C. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the 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.
(2) Translation of foreign operations
A. The operating results and financial position of all the Company’s subsidiaries, associates and joint ventures that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- (c) All resulting exchange differences are recognized in other comprehensive income.
B. When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

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C. When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

4.4Classification of Current and Noncurrent Assets and Liabilities

(1) Steel 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
(2) Heavy Industry Department
The business cycle of the majority of the construction contracts is longer than 12 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.

4.5 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).

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4.6 Financial instruments

Financial assets and financial liabilities are recognized when the Company 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 Company 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 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.

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. Except 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 Company 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 Company shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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c. Investments in equity instruments at FVTOCI
- On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation 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 Company’s right to receive the dividends is established, unless the Company’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 Company always recognizes lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount 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 Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.
C. Derecognition of financial assets
The Company 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 Company has transferred substantially all risks and rewards of ownership of the financial asset.
c. The Company 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.

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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 Company 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 Company 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 Company derecognizes financial liabilities when, and only when, the Company’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.

4.7 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.

4.8 Noncurrent assets held for sale

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

4.9 Investments accounted for using equity method / subsidiaries and associates

(1) Subsidiary are all entities controlled by the Company (including structured entities) .The Company controls an entity when the Company is exposed, or variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(2) Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the

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Company.

(3) The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize its share in the subsidiary’s loss proportionately.
(4) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transaction 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.
(5) When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.
(6) Associates are all entities over which the Company 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 percent or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost.
(7) The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
(8) Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’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 Company.
(9) In the case where an associate issues new shares and the Company does not subscribe or proportionately acquire the new shares, which results in a change in the Company’s ownership percentage of the associate while maintains significant influence on the associate, then “Capital surplus” and “Investments accounted for using 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 Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other

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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.

(10)When the Company disposes of its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
(11)According to “Regulations Governing the Preparation of Financial Statements by Securities Issuers”, profit for the year and other comprehensive income for the year reported in the standalone financial statement, shall equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the standalone financial statements, equity reported in the standalone financial statements shall equal to equity attributable to owners of parent reported in the standalone financial statements.

4.10 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 Company 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 40 to 44 years Main office buildings 40 to 60 years Other accessory equipment 8 to 35 years Machinery and equipment 5 to 50 years Other equipment 3 to 33 years

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

4.11 Leases

The Company assesses whether the contract is (or includes) a lease at the date of the contract.
(1) The Company 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 Company will recognize right-of-use assets and lease liabilities for all leases at the inception of lease. Right-of-use asset

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

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

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4.12 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes) and include land held for a currently undetermined future use.
Investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.
Investment properties under construction are stated at cost less accumulated impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use.

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

4.13 Impairment of non-financial assets

The Company 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.

4.14 Provisions

Provisions (including short-term employee benefits, and onerous contracts) are recognized when the Company 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. The discount rate (or rates) shall be a pre-tax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as interest expense. Provisions are not recognized for future operating losses.

4.15 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 recognized as expenses in that period when the employees render service.

Pensions

(1) Defined contribution plans

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

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(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 Company in current period or prior period. The liability recognized 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 recognized immediately in profit or loss.
(3) Employees’ compensation and directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognized 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.
(4) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of either the Company’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 Company recognizes expense when it can no longer withdraw an offer of termination benefits or when it recognizes 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.

4.16 Share capital

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

4.17 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized 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 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

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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 recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the 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 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 Company 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 realized or the deferred tax liability is settled.
(4) Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.
(5) Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize 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 realize the asset and settle the liability simultaneously.
(6) A deferred tax asset shall be recognized 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.

4.18 Revenue Recognition

The Company 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 Company 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 and painted steel coils. Sales revenue is recognized when the control of goods is

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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 Company 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.

(2) Service revenue

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

(3) Revenue from construction contracts

A real estate contract is a construction contract under which the real estate units have been controlled by customers in the process of construction, in which case the Company recognizes revenue over time. Since construction costs are directly related to the stage of completion of performance obligations, the Company measures the stage of completion by the ratio of real costs incurred to date to total expected costs. The Company 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 Company will satisfy its contractual obligation, is recognized as a contract asset before the Company 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.

(4) Revenue from leases, dividends and interests
A. The rental revenue shall be recognized as revenue in the duration of the lease based on straight-line method.
B. Dividend revenue from investments is recognized when the rights of shareholders to receive payment are established, provided that the economic profits arising from such transaction are highly probable to flow to the Company 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.

4.19 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 capitalization 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 Company 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 standalone financial statements, the critical accounting judgments the Company 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 Company 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 Company is acting as a principal or an agent in that transaction. When the Company acts as an agent, revenue is recognized on a net basis.

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

A. The Company gains control over the goods from the other party before transferring goods to customers.
B. The Company 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 Company 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 Company controls the goods or services before transferring goods or services to customers:

A. The Company has primary responsibilities for the goods or services it provides;
B. The Company 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 Company has the discretion to set prices.

(2) Lease term

In determining the lease term, the Company 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 Company's operations. The lease period is reassessed when significant events or major changes occur within the control of the Company.

－24－

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 Company uses judgement in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’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 Company 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 Company 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 Company 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 Company determines, based on how assets are utilized and relevant industrial characteristics, the useful lives of assets and the future cash flows of a specific company of the assets. Changes in economic circumstances or the Company’s strategy might result in material impairment of assets in the future.

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

The Company 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 Company assesses the recoverable amounts of an investment accounted for using the equity method based on the present value of the Company’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 recognized only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilized. The Company’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.

－25－

(6) Evaluation of inventories

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

(7) Calculation of accrued pension obligations

When calculating the present value of defined pension obligations, the Company 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

Item Cash on hand Checking account Demand deposits Total	December 31	December 31
	2021 $1,740 441,232 472,308 $915,280	2020
		$1,740 163,868 173,216
		$338,824

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

6.2 Financial assets at fair value through profit or loss - current

Item Non-derivative financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stock Total	December 31 2021 2020 $21,320 $20,846 196,808 213,292 $218,128 $234,138
	2021 $21,320 196,808 $218,128

1.The Company 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.

－26－

6.3 Notes receivable, net

Notes receivable, net
Item At amortized cost Notes receivable Less: Loss allowance Net	December 31
	2021 $6,875 (39) $6,836	2020
		$27,895 (107)
		$27,788

1.The Company had no notes receivable pledged to others.
2.Please refer to Note 7.3.5. for accounts receivable with related parties
3.The relevant disclosure of loss allowance for notes receivable. Please refer to Note 6.4.

6.4 Accounts receivable, net

Accounts receivable, net
Item At amortized cost Accounts receivable Less: Loss allowance Net	December 31
	2021 $925,956 (5,268) $920,688	2020
		$1,106,491 (4,647)
		$1,101,844

A. Accounts receivable are created by the Company by selling goods, and the average collection period for Carbon Steel Department is 30~60 days. The collection period for Engineering Department is based on contractual terms. The Company’s accounts receivables all meet the credit standards stipulated based on the counterparties' industrial characteristics, operation scale and profitability.
B. The Company had no accounts receivable pledged to others.
C. The Company 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 Company’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 Company’s different customer base.

The Company 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 Company 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.

－－ 27

The Company measures the allowance for notes receivable, and accounts receivable 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 $1,192,171 Gross carrying amount $1,369,217	Allowance for doubtful accounts (ECL) $(6,152) Allowance for doubtful accounts (ECL) $(5,422)	Amortized cost
				$1,186,019
				Amortized cost
				$1,363,795

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

Beginning balance Add: Provision for impairment Ending balance	Year Ended December 31	Year Ended December 31
	2021 $5,422 730 $6,152	2020
		$4,168 1,254
		$5,422

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., L/C) possessed by above receivables were $855,301 thousand, and $1,009,197 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 Others Total Less: Loss allowance Net	December 31
	2021 $203,500 21,323 1,511 226,334 - $226,334	2020
		$98,500 - 1,568
		100,068 -
		$100,068

－28－

6.6 Inventories and operating cost

Inventories and operating cost
Item Steel Department： Raw materials Supplies Work in progress Finished goods By-products and scraps Subtotal Heavy Industry Department： Raw materials Supplies Subtotal Total	December 31
	2021 $1,995,263 18,041 956,461 4,379,693 127,317 7,476,775 81,666 7,373 89,039 $7,565,814	2020
		$1,321,197 17,539 428,856 1,398,101 82,850
		3,248,543
		99,570 3,006
		102,576
		$3,351,119

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

Item Cost of inventories sold Construction cost Processing cost Unallocated manufacturing overhead Purchase and construction contract loss (recovery gain) Inventory valuation loss and obsolescence loss (recovery gain) Total operating cost	Year Ended December 31	Year Ended December 31
	2021 $30,262,635 621,332 170,071 10,809 31,411 244,520 $31,340,778	2020
		$18,257,540 1,021,635 182,135 116,344 2,263 (160,007)
		$19,419,910

2.The Company recognized inventory valuation loss (recovery gain) of $244,520 thousand and $(160,007) thousand for the years 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 Company to raise prices on certain products.

3.The Company had no inventory pledged as collateral.

－－ 29

6.7 Prepayments

Prepayments
Item Prepaid material purchase Prepaid insurance Prepaid sea freight Prepaid syndicated loan arrangement fee Other prepayments Total	December 31
	2021 $215,352 45,268 149,035 - 3,900 $413,555	2020
		$152,716 40,599 19,216 15,100 3,963
		$231,594

Prepaid syndicated loan arrangement fee was paid to the lead bank of syndicated loan. In December 2020, the Company 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 / Liabi assets held for sale	lities directly associated with noncurrent	lities 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
		$159,832 -
		$159,832
		$70,000

1.In November 2020, the Company entered into a contract to sell part of land in Pingnan Section, Fangliao Township, Pingtung County. The total contract price was $699,634 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.

6.9 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	December 31
	2021 $45,000 566,106 611,106 181,814 $792,920	2020
		$45,000 556,953
		601,953 88,963
		$690,916

－30－

1.The Company 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 Company 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 Company elects to designate such investment as to be measured at FVTOCI.
2.For related credit risk management and means of assessing, please refer to Note 12(2).
3.As of December 31, 2021 and 2020, the Company had no financial assets at FVTOCI pledged as collateral.

6.10 Investments accounted for using equity method

Investee Subsidiaries: Yieh Phui (Hong Kong) Holdings Limited Yieh Hsing Enterprise Co., Ltd. Kuo Chang Enterprise Co., Ltd. United Brightening Development Corp. Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Others Subtotal Associates: Associates with significance: Yieh United Steel Corp. Eliter International Corp. Tangeng Iron Works Co., Ltd. E-Da Development Corp. Associates without significance Subtotal Prepaid investment: Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Total	December 31	December 31
	2021 $9,952,393 990,377 1,241,988 1,659,556 2,706,640 2,454,872 3,021,201 22,027,027 3,809,524 2,612,724 1,337,428 1,024,355 1,829,875 10,613,906 134,802 -	2020
		$9,502,034 971,579 1,062,054 1,445,019 2,491,930 2,087,966 2,686,631
		20,247,213
		2,653,964 2,650,801 1,154,704 1,116,484 1,741,763
		9,317,716
		- 209,066
	$32,775,735	$29,773,995

1.Subsidiaries:

(1) For information of the Company’s subsidiaries, please refer to Note 4.3 of the Company’s Year 2021 consolidated financial statements.
(2) Investments accounted for using equity method and the Company’s share of profit or loss and share of other comprehensive income were calculated based on audited financial statements, except for those of Good Honor Holdings Ltd. and Worthing Honor Holdings Ltd. However, management of the Company considered no material adjustment if the financial statements of afore-mentioned subsidiaries had been audited.

－31－

2.Associates:

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

CompanyName Yieh United Steel Corp. Eliter International Corp. Tangeng Iron Works Co., Ltd. E-Da Development Corp.	ShareholdingPercentage	ShareholdingPercentage
	December 31,2021 25.82% 30.06% 11.30% 28.44%	December 31,2020
		25.82% 32.84% 11.30% 28.44%

Please refer to Table 9 and Table 10 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 Company’s major associates is as follows:
A. Balance Sheets

associates is as follows: A. Balance Sheets
Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate	Yieh United
	December 31,2021 $7,201,584 4,938,621 2,606,211 697,067 $8,836,927 $2,656,247 (43,523) $2,612,724

－32－

Tangeng Iron Works Co., Ltd.

	TangengIron	TangengIron	Works Co., Ltd.	Works Co., Ltd.
	December 31,2021		December 31,2020
Current assets		$6,013,103		$3,180,884
Noncurrent assets		23,420,763		23,623,947
Current liabilities		3,929,425		2,439,751
Noncurrent liabilities		11,337,528		11,815,071
Equity		$14,166,913		$12,550,009
Share in associates’ net assets		$1,337,428		$1,154,704
Unrealized loss from transactions
		-		-
with associates
Carrying amount of associate		$1,337,428		$1,154,704
		E-Da Development Corp.
	December 31,2021		December 31,2020
Current assets		$477,649		$605,393
Noncurrent assets		7,831,811		7,974,851
Current liabilities		879,467		886,455
Noncurrent liabilities		3,802,219		3,741,418
Equity		$3,627,774		$3,952,371
Share in associates’ net assets		$1,031,821		$1,124,143
Unrealized loss from transactions with associates		(7,466)		(7,659)
Carrying amount of associate		$1,024,355		$1,116,484
B.Statements of Comprehensive Income
		Yieh United Steel Corp.
		2021		2020
Operating revenue		$52,515,518		$31,873,617
Net income (loss)		4,734,265		(1,877,471)
Other comprehensive income (loss) (net after	tax)	(257,373)		(259,646)
Total comprehensive income (loss)		$4,476,892		$ (2,137,117)
Dividends received from associate			$ -	$ -
		Eliter International Corp.
		2021		2020
Operating revenue		$316,081		$267,888
Net income (loss)		(201,946)		(66,028)
Other comprehensive income (loss) (net after	tax)	23,256		18,011
Total comprehensive income (loss)		$(178,690)		$ (48,017)
Dividends received from associate			$ -	$ -

－33－

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	TangengIron Works Co., Ltd. 2021 2020 $16,813,060 $10,828,679 1,586,251 (665,673) 30,654 74,943 $1,616,905 $(590,730) $ - $ - E-Da Development Corp. 2021 2020 $561,189 $704,305 (376,515) (322,389) 51,917 39,953 $(324,598) $(282,436) $ - $ -
	2021 $561,189 (376,515) 51,917 $(324,598) $ -

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

as follows:
Share of: Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss)	Year Ended December 31
	2021 $44,419 16,430 $60,849	2020 $37,015 38,807 $75,822

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

value inputs) are as follow:
Yieh United Steel Corp. (Note) Tangeng Iron Works Co., Ltd. Total	December 31
	2021 $5,573,489 1,414,020 $6,987,509	2020
		$4,019,579 1,530,701
		$5,550,280

(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.

－34－

(5) For Tangeng Iron Works Co., Ltd., Skylark Hot Spring & Resort Corp., E-Da Tour Bus Corporation, E-Da Bus Transportation Co., Ltd., E-Da Entertainment Co. and E-Da Health Biotech Co., Ltd, the Company has significant influence either as a result of holding more than 20% of their respective shares with its subsidiaries, or 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 Company is not able to lead the company’s activities. Thus, the Company and its subsidiaries 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 Company only had significant impact to these companies, so classified them as the associates.
(7) The Company 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 Company and Yieh United Steel Corp., an investee accounted for using equity method, investment gain (loss) is recognized using the treasury stock approach.
(9) Except for E United Japan Co., Ltd., investments accounted for using equity method and the Company’s share of profit or loss and other comprehensive income are calculated based on audited financial statements of those investees. However, the Company’s management considers no material impact if the financial statements of above investees had been audited.
(10) As of December 31, 2021 and 2020, no investments under equity method were pledged as collateral by the Company.

6.11 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 $1,507,283 3,572,808 13,329,841 859,127 230,584 19,499,643 (12,168,670) (70,671) $7,260,302	2020
		$1,507,283 3,619,042 12,664,614 831,549 363,056
		18,985,544 (11,806,712) (70,671)
		$7,108,161

－35－

Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$1,507,283 - - -	$3,619,042 8,146 (63,211) 8,831	$12,664,614 46,282 (27,561) 646,506	$831,549 9,397 (43,770) 61,951	$363,056 584,816 - (717,288)	$18,985,544 648,641 (134,542) -
Balance, January 1, 2021 Additions Disposals Reclassifications Balance, December 31, 2021 Accumulated depreciation andimpairment
	$1,507,283	$3,572,808	$13,329,841	$859,127	$230,584	$19,499,643
	$ - - -	$2,187,978 110,784 (59,286)	$9,034,548 319,106 (20,154)	$584,186 54,483 (42,975)	$70,671 - -	$11,877,383 484,373 (122,415)
Balance, January 1, 2021 Depreciation Disposals Balance, December 31, 2021
	$ -	$2,239,476	$9,333,500	$595,694	$70,671	$12,239,341

Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$1,507,283 - - - -	$3,619,138 5,043 (8,362) 3,223 -	$12,805,210 49,763 (253,612) 63,253 -	$1,042,585 13,206 (236,262) 12,020 -	$435,118 158,879 - (78,496) (152,445)	$19,409,334 226,891 (498,236) - (152,445)
Balance, January 1, 2020 Additions Disposals Reclassifications Write-off cumulative impairment Balance, December 31, 2020 Accumulated depreciation
	$1,507,283	$3,619,042	$12,664,614	$831,549	$363,056	$18,985,544
	$ - - - -	$2,086,060 109,696 (7,778) -	$8,948,169 330,789 (244,410) -	$765,079 54,187 (235,080) -	$223,116 - - (152,445)	$12,022,424 494,672 (487,268) (152,445)

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	Year Ended December 31
	2021 $648,641 (62,541) $586,100	2020
		$226,891 (18,574)
		$208,317

－36－

2.Please refer to Note 6.31 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 Company 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.
5.For the information about property, plant and equipment pledged as collateral, please see Note 8 for details.
6.The Company’s land amounting to both $8,516 thousand as of December 31 2021 and 2020 is unable to be registered under the name of the Company due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

6.12 Lease Agreement

A. Right-of-use asset

	Item		December 31	December 31	2020 $300,031 26,630 $326,661 (28,447) - $298,214 Total
			2021 $300,031 26,630 $326,661 (43,677) - $282,984 Land Buildings $300,031 $26,630 - - $300,031 $26,630 $19,925 $8,522 10,970 4,260 $30,895 $12,782 Land Buildings $291,555 $26,630 9,793 - (1,317) - $300,031 $26,630 $10,531 $4,261 10,711 4,261 (1,317) - $19,925 $8,522



			Land $300,031 - $300,031 $19,925 10,970 $30,895 Land $291,555 9,793 (1,317) $300,031 $10,531 10,711 (1,317) $19,925
					$326,661 -
					$326,661
					$28,447 15,230
					$43,677
					Total
					$318,185 9,793 (1,317)
					$326,661
					$14,792 14,972 (1,317)
					$28,447

－－ 37

B. Lease liabilities

. Lease liabilities
Item Carrying amount of lease liabilities - current - noncurrent	December 31
	2021 $9,550 $190,909	2020
		$10,307
		$199,663

The discount rate interval for lease liabilities is 1.9661%.

Please refer to Note 12(2) for lease liabilities with repayment periods.

C. Significant lease activities and clause

The Company 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 Company 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 Company 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:

er lease information: The current lease relevant expense	information was as follows:	information was as follows:
Item Short-term lease expense Gross cash outflow (Note)	Year Ended December 31
	2021 $11,206 $20,718	2020
		$12,517
		$22,764

(Note): Including principle paid for lease liability.

6.13 Investment properties

Investment properties
Item Land Less: Accumulated impairment Total	December 31 2021 2020 $443,349 $443,349 - - $443,349 $443,349
	2021 $443,349 - $443,349
		$443,349 -
		$443,349

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

Cost	Land
	$443,349 -
Balance, January 1, 2021 Additions Balance, December 31, 2021
	$443,349

－38－

Cost	Land	Construction in progress
	$923,785 - (378,934) (146,062) 44,560	$40,554 20,065 - (16,059) (44,560)
Balance, January 1, 2020 Additions Disposals Transferred to noncurrent assets held for sale Reclassifications Balance, December 31, 2020
	$443,349	$ -

Changes in accumulated impairment: None.

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

Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period	Year Ended December 31	Year Ended December 31
	2021 $11,796 $1,775 $9	2020
		$11,796
		$1,775
		$3,324

3.As of December 31, 2021 and 2020, the fair values of investment properties held by the Company were $978,200 thousand and $861,405 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 Company 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.
Please refer to Note 8 for investment properties pledged to others.

6.14 Refundable deposits

Refundable deposits
Item Customs duty guarantee Deposit for dumping margins Rent deposits Others Total	December 31
	2021 $539,760 2,098 3,266 801 $545,925	2020
		$270,560 148,596 3,234 17
		$422,407

－－ 39

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

6.15 Short-term Loans

Type of Loan Credit for material purchase Credit loans Total Type of Loan Credit for material purchase Credit loans Total	December 31,2021	December 31,2021
	Amount Interest Rate $4,014,136 1.39%-2.10% 1,750,000 1.39%-2.09% $5,764,136 December 31, 2020	Interest Rate
	Amount $4,613,299 3,298,000 $7,911,299	Interest Rate
		0.93%-2.00% 1.39%-2.05%

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

6.16 Short-term notes and bills payable

Item Commercial paper payable Less: Unamortized discount Net Interest Rate Range	December 31	December 31
	2021 $650,000 (1,168) $648,832 1.69%~1.85%	2020
		$600,000 (885)
		$599,115
		1.67%-1.85%

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6.17 Other Payables

6.17 Other Payables
Item Compensations payable Export and transportation expenses payable Equipment payable Dumping margins payable Utility expense payable Cash dividends payable - from previous period Repairing charges payable Compensation and remuneration payable to employees and directors - current period Interest payable Others Total	December 31
	2021 $346,415 136,318 85,480 62,154 34,946 22,980 18,942 18,955 13,724 117,725 $857,639	2020
		$204,534 79,177 22,939 - 33,524 23,065 14,689 671 15,674 69,476
		$463,749

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

2.Please refer to Note 6.14 for dumping margins payable

6.18 Provisions - current

Item Employee benefits Onerous contract Total Item January 1, 2021 Recognized in current period Write-off in current period December 31, 2021 Item January 1, 2020 Recognized in current period Write-off in current period December 31, 2020	December 31 2021 2020 $50,011 $48,907 34,680 3,269 $84,691 $52,176 Employee benefits Onerous contract Total $48,907 $3,269 $52,176 50,011 34,680 84,691 (48,907) (3,269) (52,176) $50,011 $34,680 $84,691 Employee benefits Onerous contract Total $49,813 $1,006 $50,819 48,907 3,269 52,176 (49,813) (1,006) (50,819) $48,907 $3,269 $52,176	December 31 2021 2020 $50,011 $48,907 34,680 3,269 $84,691 $52,176 Employee benefits Onerous contract Total $48,907 $3,269 $52,176 50,011 34,680 84,691 (48,907) (3,269) (52,176) $50,011 $34,680 $84,691 Employee benefits Onerous contract Total $49,813 $1,006 $50,819 48,907 3,269 52,176 (49,813) (1,006) (50,819) $48,907 $3,269 $52,176



	Employee benefits $48,907 50,011 (48,907) $50,011 Employee benefits $49,813 48,907 (49,813) $48,907
January 1, 2021 Recognized in current period Write-off in current period December 31, 2021 Item		$52,176 84,691 (52,176)
		$84,691
		Total
January 1, 2020 Recognized in current period Write-off in current period December 31, 2020		$50,819 52,176 (50,819)
		$52,176

－41－

1.Provision for employee benefits is an estimate of the short-term service leave vested to employees.
2.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.

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

Item Bank syndicated loans: Secured loans from banks Unsecured loans from banks Total Less: Unamortized discount Less: Current portion Long-term loans Interest rate range	December 31	December 31
	2021 $8,900,000 593,920 369,079 9,862,999 (32,656) (427,459) $9,402,884 1.15%-2.25%	2020
		$7,312,500 764,240 248,000
		8,324,740 (11,941) (1,988,415)
		$6,324,384
		1.45%-2.25%

1.Please refer to Note 8 for the collateral of the above bank loans.
2.According to syndicated loan agreements with banks, the Company 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 for the duration of the contracts. The Company do meet the ratio stipulated in the loan agreements in 2021 in all respects

6.20 Benefit Plan After Retirement

1.Defined contribution plan

The pension system based on the Labor Pension Act which is applicable to the Company’s domestic entities 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.
Contributions based on the percentage stipulated in the defined contribution pension plans of the Company and recognized as expenses in the standalone statement of comprehensive income were $52,846 thousand and $49,882 thousand for the years 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 Company’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 8%-10% of the employees' monthly salaries and wages to the

－42－

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 Company does not have rights to influence its investment management strategy.

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

defined benefit plans are as
Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability	December 31
	2021 $1,290,479 (856,961) $433,518	2020
		$1,241,948 (839,364)
		$402,584

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

Year Ended December 31,2021	Year Ended December 31,2021	Year Ended December 31,2021
Present value of defined benefit obligations $1,241,948 2,953 3,665 6,618 - 2,250 (45,438) 134,710 91,522 - (49,609) $1,290,479	Fair value of planned assets $(839,364) - (2,542) (2,542) (12,663) - - - (12,663) (52,001) 49,609 $(856,961)	Net defined benefit liability
		$402,584 2,953 1,123
		4,076
		(12,663) 2,250 (45,438) 134,710
		78,859
		(52,001) -
		$433,518

－43－

Year Ended December 31, 2020

Item Balance as of January 1 Cost of service Current service cost Interest expense (income) Recognized in profit and loss Remeasurement Return on plan asset (Amounts included in interest income or expense are excluded) Actuarial (gains) losses - Effect of change in demographic assumptions Effect of change in financial assumptions Experience adjustment Recognized in other comprehensive income Pension fund contribution Paid pension Balance as of December 31	Present value of defined benefit obligations $1,338,657 4,311 9,114 13,425 - 16 44,909 (55,398) (10,473) - (99,661) $1,241,948	Fair value of planned assets $(834,654) - (5,801) (5,801) (27,118) - - - (27,118) (60,669) 88,878 $(839,364)	Net defined benefit liability
			$504,003 4,311 3,313
			7,624
			(27,118) 16 44,909 (55,398)
			(37,591)
			(60,669) (10,783)
			$402,584

(4)Through the pension plan under the Labor Standards Law, the Company 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 Company’ 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.

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(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 0.70% 2.00% 8 yeas	December 31,2020
		0.30%
		2.00%
		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	2020 $(28,346) $29,306 $28,738 $(27,949)
	$(27,637)
	$28,530
	$28,090
	$(27,357)

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

(6)The Company expects to make contributions of $49,579 thousand to the pension plans for the year ended December 31, 2022.

6.21 Common Stock

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

Item January 1 Capital increase in cash December 31	Year Ended December31,2021	Year Ended December31,2021
	Shares (thousand shares) 1,890,569 - 1,890,569	Amount
		$18,905,695 -
		$18,905,695

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Item January 1 Cancellation of treasury shares December 31	Year Ended December31,2020	Year Ended December31,2020
	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.

6.22 Capital Surplus

6.22 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 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.

6.23 Retained Earnings

1.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;

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(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

3.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.
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)
		- -

－－ 47

5.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.

6.24 Other Equity Items

6.24 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 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 by associates Balance, December 31, 2021 Item	$(1,187,536) - (238,497) -	$226,643 92,851 68,456 (1,425)	$6,384 - 162 -	$(954,509) 92,851 (169,879) (1,425)
	$(1,426,033)	$386,525	$6,546	$(1,032,962)
	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 $(978,171) (12,402) 36,820 (756) $(954,509)
Balance, January 1, 2020 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 by associates Balance, December 31, 2020	$(1,090,046) - (97,490) -	$105,537 (12,402) 134,264 (756)	$6,338 - 46 -
	$(1,187,536)	$226,643	$6,384

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6.25 Treasury stock

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

easury stock Purpose of treasury stock and changes in quantity: December 31, 2021：None	easury stock Purpose of treasury stock and changes in quantity: December 31, 2021：None
Unit: Thousand Shares Year Ended December 31, 2020
January 1 Addition Reduction - 22,758 (22,758)	December 31
	-

2.In order to protect the Company’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 Company 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.

6.26 Operating Revenue

Operating Revenue
Item Revenue from contracts with customers Sales revenue Construction revenue Processing revenue Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Year Ended December 31
	2021 $35,942,635 687,651 196,728 (8,478) $36,818,536 (817) (32,273) $36,785,446	2020
		$19,686,105 1,135,230 167,736 (3,252)
		$20,985,819 - (49,609)
		$20,936,210

1.Segments of revenue from contracts with customers

The Company’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:

－－ 49

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

External customer Contract revenue Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total 2020： External customer Contract revenue Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total	Steel coils and steel pipes $35,909,545 $35,909,545 - $35,909,545 Steel coils and steel pipes $19,636,496 $19,636,496 - $19,636,496	Construction revenue $679,173 $ - 679,173 $679,173 Construction revenue $1,131,978 $ - 1,131,978 $1,131,978	Others $196,728 $196,728 - $196,728 Others $167,736 $167,736 - $167,736	Total $36,785,446 $36,106,273 679,173 $36,785,446 Total $20,936,210 $19,804,232 1,131,978 $20,936,210

(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 $1,186,019 $70,702 $1,760,522 148,466 $1,908,988	2020
		$1,363,795
		$322,636
		$434,560 80,509
		$515,069

(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.

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(2)Allowance for contract assets:

Allowance for contract assets:
Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net		December 31 2021 2020 0%-0.5% 0%-0.5% $71,107 $323,771 (405) (1,135) $70,702 $322,636
		2021 0%-0.5% $71,107 (405) $70,702

The Company 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 Company 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 (Reversal) for impairment Ending balance		Year Ended December 31 2021 2020 $1,135 $2,389 (730) (1,254) $405 $1,135
		2021 $1,135 (730) $405

(3)Amount from previous period’s satisfied performance obligations and beginning contract liabilities recognized in the current period as income were $434,560 thousand and $385,452 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 $571,599 thousand and $674,268 thousand, respectively. The Company will recognize revenue as the construction is being completed and the expected timing for recognition of revenue is on various dates through May 2023.

6.27 Employee benefits, depreciation and amortization expense

Year Ended December 31, 2021	Year Ended December 31, 2021	Year Ended December 31, 2021
OperatingCost $786,415 77,819 39,593 - 149,058 475,106 $1,527,991	OperatingExpense $391,462 33,157 17,135 9,725 46,091 24,497 $522,067	Total
		$1,177,877 110,976 56,728 9,725 195,149 499,603
		$2,050,058

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Year Ended December 31, 2020

Nature Employee benefits Salary Insurance Pension (Note 2) Remuneration to directors Other employee benefits Depreciation Total	OperatingCost $651,786 71,366 39,591 - 137,709 484,214 $1,384,666	OperatingExpense $312,765 29,779 17,206 7,060 40,401 25,430 $432,641	Total
			$964,551 101,145 56,797 7,060 178,110 509,644
			$1,817,307

(Note 1) Excluding pension of $194 thousand recognized as equipment prepayments. (Note 2) Excluding pension of $709 thousand recognized as equipment prepayments.

1.As of December 31, 2021 and 2020, the Company had 1,378 and 1,402 employees, respectively. Among them 4 directors did not serve concurrently as employees in 2021 and 2020, respectively.
Additional disclosures are as follows:
(1)Average employee benefits for the year ended December 31, 2021 was $1,121 thousand (Amounts of employee benefits for the year ended December 31, 2021 less amounts of remuneration of directors for the year ended December 31, 2021/number of employees for the year ended December 31, 2021 less number of directors not serving concurrently as employees for the year ended December 31, 2021).
Average employee benefits for the year ended December 31, 2020 was $930 thousand (Amounts of employee benefits for the year ended December 31, 2020 less amounts of remuneration of directors for the year ended December 31, 2020/number of employees for the year ended December 31, 2020 less number of directors not serving concurrently as employees for the year ended December 31, 2020).
(2)Average salaries for the year ended December 31, 2021 was $857 thousand (Amounts of salaries for the year ended December 31, 2021/number of employees for the year ended December 31, 2021 less number of directors not serving concurrently as employees for the year ended December 31, 2021).
Average salaries for the year ended December 31, 2020 was $690 thousand (Amounts of salaries for the year ended December 31, 2020/number of employees for the year ended December 31, 2020 less number of directors not serving concurrently as employees for the year ended December 31, 2020).
(3)Changes of adjustments of average salaries was 24.20% (Average salaries for the year ended December 31, 2021 less average salaries for the year ended December 31, 2020/average salaries for the year ended December 31, 2020).
(4) The company has established an audit committee, and the remuneration of independent directors has been included in the remuneration to directors for disclosure.

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(5)The Company’s remuneration policies are as follows:
A.The remuneration of the directors of the company shall be determined in accordance with the rules of the remuneration system and structure of the company, with reference to the levels of competitors and listed companies. If the company has net income, it shall be allocated in accordance with the provisions of the Articles of Incorporation, and shall be reported to the shareholders meeting after being reviewed by the remuneration committee and approved by the board of directors. If the director is also an employee, remuneration should be paid in accordance with the rules of B and C below.
B.The remuneration standards for the general manager, senior executive vice president and vice general manager of the company shall be determined by the human resource department in accordance with the relevant rules of the company's personnel performance appraisal, then depend on individual performance and contribution to the overall operation of the company, and with reference to the market peer levels. The remuneration standard shall be reviewed by the remuneration committee and approved by the board of directors.
C.The remuneration policy of the company is based on individual's ability, contribution to the company, and personal performance, and it is positively correlated with operating performance. The overall remuneration package mainly includes three parts: basic salary, bonuses, employees’ compensation, and benefits, etc. According to the remuneration standards, the basic salary is based on the market competition situation of the position held by the employee and the remuneration policy. Bonuses and employees’ compensation are paid in connection with the achievement of the employee's, department goals or the company's operating performance; the benefit design should be based on the premise of complying with the law and taking into account the demands of the employees.
3.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.
4.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

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

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The above-mentioned employee compensation was distributed in cash.

5.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.

6.28 Interest Income

Interest Income
Item Bank deposits Refundable deposits Loans to others Others Total	Year Ended December 31
	2021 $284 15,933 - 39 $16,256	2020
		$2,036 70,786 152 129
		$73,103

6.29 Other Income

Other Income
Item Rental income Dividend income Other income Income from insurance claim of fire disaster Income from sales of scraps Guaranteed fee income Others Subtotal Total	Year Ended December 31
	2021 $15,407 21,621 - 44,079 27,206 22,174 93,459 $130,487	2020
		$15,052 42,969 291,160 31,746 28,748 19,342
		370,996
		$429,017

1.The Company’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 Company 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, $71,952 thousand are recorded as “other income”.

－54－

6.30 Other gains and losses

Item Gain (loss) on disposal of investments under equity method Valuation gain (loss) of financial assets mandatorily measured at FVTPL Net foreign exchange gain (loss) 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 (Note) Others Total	Year Ended December 31 2021 2020 $110,716 $ - (15,630) 3,673 47,405 (85,486) (12,128) (10,968) - 750,788 539,284 49,270 (60,982) (46,192) (1,802) (11,447) $606,863 $649,638
	2021 $110,716 (15,630) 47,405 (12,128) - 539,284 (60,982) (1,802) $606,863

(Note)For information on dumping margins, please refer to Note 6.14.

6.31 Finance Costs

Item Interest on loans Interest on lease liabilities Financing interest others Subtotal Less: Amount qualified for capitalization Finance costs	Year Ended December 31 2021 2020 $350,596 $376,090 3,554 3,675 1,527 - 4,660 4,618 360,337 384,383 (10,909) (2,193) $349,428 $382,190	Year Ended December 31 2021 2020 $350,596 $376,090 3,554 3,675 1,527 - 4,660 4,618 360,337 384,383 (10,909) (2,193) $349,428 $382,190
		2020
		$376,090 3,675 - 4,618
		384,383 (2,193)
		$382,190

6.32 Income Tax

1.Income tax expense

(1)Components of income tax expense

Item Current income tax expense Adjustment to prior year income taxes Tax on repatriation of offshore funds Land value incremental tax Deferred income tax originating and reversed temporary differences Income tax expense (benefit)	Year Ended December 31	Year Ended December 31
	2021 $752,718 (816) - 8,905 335,826	2020
		$ - - 12,240 27,597 62,290
	$1,096,633	$102,127

－55－

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

Item Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements Remeasurement of defined benefit plans Total	Year Ended December 31	Year Ended December 31
	2021 $(13,473) (15,772) $(29,245)	2020
		$23,984 7,518
		$31,502

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

in 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 Gain (loss) on sale of land exempt from income tax Unrealized (realized) impairment loss Other adjustments Loss carryforwards Tax on repatriation of offshore funds Adjustment to prior year income taxes Land value increment tax Net changes of deferred income tax Income tax benefit recognized in profit or loss	Year Ended December 31 2021 2020 $6,299,471 $837,365 $1,259,894 $167,473 (455,262) 60,114 48,904 (32,002) 92,132 7,414 (30,146) (16,623) (107,857) (160,012) - (30,489) (7,969) 4,125 (46,978) - - 12,240 (816) - 8,905 27,597 335,826 62,290 $1,096,633 $102,127
	2021
	$6,299,471
	$1,259,894 (455,262) 48,904 92,132 (30,146) (107,857) - (7,969) (46,978) - (816) 8,905 335,826
	$1,096,633

The Company 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.

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

－56－

	Year Ended December 31,2021	Year Ended December 31,2021
Beginning balance $286,197 204,758 237 14,134 608 17,978 9,781 80,517 10,391 1,716 32,128 46,978 $705,423 $ - - $- $705,423	Recognized in profit or loss Recognized in other comprehensive income $(286,197) $ - - 13,473 48,904 - - - (235) - (1,283) - 221 - (9,585) 15,772 93,413 - (1,716) - 7,907 - (46,978) - $(195,549) $29,245 $(4,846) $ - (135,431) - $(140,277) $- $(335,826) $29,245 Year Ended December 31,2020		Ending balance
			$ - 218,231 49,141 14,134 373 16,695 10,002 86,704 103,804 - 40,035 -
			$539,119
			$4,846) (135,431)
			$(140,277)
			$398,842

Beginning balance $273,241 228,742 32,239 44,623 2,039 19,233 9,963 100,801 2,977 6,824 31,495 47,038 $799,215	Recognized in profit or loss $12,956 - (32,002) (30,489) (1,431) (1,255) (182) (12,766) 7,414 (5,108) 633 (60) $(62,290)	Recognized in other comprehensive income $ - (23,984) - - - - - (7,518) - - - - $(31,502)	Ending balance
			$286,197 204,758 237 14,134 608 17,978 9,781 80,517 10,391 1,716 32,128 46,978
			$705,423

－－ 57

4.Items not recognized as deferred income tax assets:

Item Temporary differences Investment loss recognized under equity method Impairment loss on investments under the cost approach Remeasurement of defined benefit plans Exchange differences on translation of foreign financial statements Total	December 31	December 31
	2021 $526,576 46,539 18,769 110,621 $702,505	2020
		$606,637 48,499 14,574 73,700
		$743,410

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

6.33 Other Comprehensive Income

6.33 Other Comprehensive Income
	Year	Ended December	31,	2021
		Income tax expense
Item	Before tax	(benefit)		Aftertax
Items that will not be reclassified
subsequently to profit or loss：
Remeasurement of defined benefit plans	$(78,859)	$15,772		$(63,087)
Unrealized gain (loss) on financial assets at	92,851		-	92,851
fair value through other comprehensive
income
Share of subsidiaries, associates and joint
ventures accounted for using equity method:
Remeasurement of defined benefit plans	(20,976)		-	(20,976)
Unrealized valuation gain (loss) on
financial assets at fair value through other comprehensive income	68,456		-	68,456
Subtotal	61,472	15,772		77,244
Items that may be reclassified subsequently to
profit or loss:
Share of subsidiaries, associates and joint
ventures accounted for using equity method:
Exchange differences on translation of foreign financial statements	(141,254)	13,473		(127,781)
Gain (loss) from exchange differences on translation of foreign financial statements	(110,716)		-	(110,716)
Gains (loss) on hedging instruments	162		-	162
Subtotal	(251,808)	13,473		(238,335)
Recognized in other comprehensive income	$(190,336)	$29,245		$(161,091)

－58－

Year Ended December 31, 2020	Year Ended December 31, 2020	Year Ended December 31, 2020
Income tax expense (benefit) Aftertax $(7,518) $30,073 - (12,402) - 23,564 - 134,264 (7,518) 175,499 (23,984) (97,490) - 46 (23,984) (97,444) $(31,502) $78,055 Year Ended December 31		Aftertax
		$30,073 (12,402) 23,564 134,264
		175,499
		(97,490) 46
		(97,444)
		$78,055
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

－－ 59

(Note) Since the Company offered to settle compensation paid to employees in cash or shares, the Company 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.

7.RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

The Company is the ultimate controlling party of the Group.

Related party category

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
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

－60－

Names of related parties Related party category E-Da Royal Hotel Company Ltd. Other related party E-Da Hospital Other related party I-Shou University Other related party I-Shou University Internship Center Other related party Long Hua Travel Services Co., Ltd. Other related party Chen,Yung-Shian Other related party

7.3 Significant transactions with related parties

1.Operating revenue

Operating revenue
Item Sales revenue Construction revenue	Related party category/Name Subsidiaries Associates Other related parties Total Subsidiaries Associates Other related parties Total	Year Ended December 31 2021 2020 $1,662,267 $970,195 1,518,552 1,198,693 2,214,277 886,253 $5,395,096 $3,055,141 $1,101 $664 16,126 2,023 121,801 471,628 $139,028 $474,315
		2021 $1,662,267 1,518,552 2,214,277 $5,395,096 $1,101 16,126 121,801 $139,028

(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 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.

(c)The construction contracts between the Company 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.

2.Purchases

Related party category/Name Subsidiaries Associates Other related party: Yieh Hong Enterprise Co., Ltd. Others Total	Year Ended December 31 2021 2020 $40,200 $4,996 41,336 50,563 7,641,372 3,273,609 34,163 34,265 $7,757,071 $3,363,433
	2021 $40,200 41,336 7,641,372 34,163 $7,757,071

Items purchased by the company from above related parties were mainly stainless billets and carbon steel billets. The purchase prices were similar to that offered to other suppliers. Payment term is LC at sight or T/T before shipment (not significantly different than terms to other suppliers).

－61－

3.Contract assets

Item Contract assets	Related party category/Name Subsidiaries Associates Other related party: New Spring construction Corp. Others Total Less: Loss allowance Net	December 31 2021 2020 $754 $563 1,199 - 37,021 92,604 - 164 $38,974 $93,331 - - $38,974 $93,331
		2021 $754 1,199 37,021 - $38,974 - $38,974

4.Contract liability

Item Contract liabilities	Related party category/Name Subsidiaries Associates Other related parties Net	December 31 2021 2020 $ - $5,180 2,302 1,239 - 38,183 $2,302 $44,602
		2021 $ - 2,302 - $2,302

5.Receivables from related parties (excluding loans to related parties and Contract assets )

assets )
Item Notes receivable Accounts receivable	Related party category/Name Other related parties Associate: Yieh United Steel Corp. Others Total Less: Loss allowance Net Subsidiaries Associate: Asiazone Co., Ltd. Others Other related parties Total Less: Loss allowance Net	December 31
		2021 $ - - 48 48 - $48 $110,802 100,257 35,547 12,734 $259,340 (845) $258,495	2020
			$ 22 5,557 47
			5,626 -
			$5,626
			$60,536 154,046 19,261 988
			$234,831 (668)
			$234,163

－62－

Item Other receivables	Related party category/Name Subsidiaries Associates Other related party: Yieh Hong Enterprise Co., Ltd. Others Total Less: Loss allowance Net	December 31	December 31
		2021 $8,872 8,266 38,570 6,164 61,872 - $61,872	2020
			$8,943 1,562 - 1
			10,506 -
			$10,506

6.Payables to related parties (excluded loans from related parties)

Item Notes payable Accounts payable Other payables	Related party category/Name Other related parties Other related parties Subsidiaries Associates Other related parties Total	December 31	December 31
		2021 $9,890 $5,901 $1,593 2,276 50,239 $54,108	2020
			$166
			$6,031
			$1,790 2,414 16,523
			$20,727

7.Prepayments

Prepayments
Related party category/Name Other related party: Yieh Hong Enterprise Co., Ltd.	December 31
	2021 $50,239	2020 $108,340

8.Asset transaction

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

Type of related party Subsidiaries Associates Other related parties	Transaction target Equipment prepayment Machinery equipment Computer communication equipment and Construction in progress	Transaction amount $392 963 5,238

The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2021, the transaction payments were fully paid.

－63－

2020:

2020:
Type of related party Subsidiaries Associates Other related parties	Transaction target Equipment prepayment Computer communication equipment Computer communication equipment	Transaction amount
		$406 1,250 254

The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2020, the transaction payments were fully paid.

(2)Acquisition of investment properties:

2021:None 2020: Type of related party / Name Other related party： New Spring Construction Corp.	Transaction content Construction in progress	Transaction amount
		$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.

(3) Disposal of investment properties:

2021:None 2020:

2021:None 2020:
Type of related party/ Name Subsidiary: Shin Phui Steel Corporation	Transaction target Land	Transaction amount $154,786	Gain or loss on disposal
			$112,805

The above-mentioned transaction price was set 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, all the transaction amount was fully recovered.

(4) Disposal of financial assets

2021:None

2020:

Transaction Gain or loss Type of related party/ Name Transaction target amount on disposal Subsidiary: 26,275 thousand shares United Brightening of Eliter International $284,488 $ - Development Corp. Corp.- Preferred stock D

－64－

The above-mentioned transaction price of shares was agreed on by both parties upon negotiation with reference to the net worth per share of the investees. As of December 31, 2020, the transaction amount was fully recovered.

9.Lessee agreement:

(1)Acquisition of right-of-use assets: None.
(2) Lease liabilities:

		December	31
Accounting	Item Transaction target	2021	2020
Lease liabilities	Subsidiaries	$150,125	$157,851
		Year Ended December		31
Item	Related Party Category	2021	2020
Lease liabilities	Subsidiaries	$3,017		$3,167
Rent expense	Associates	$5,430		$5,256
	Other related parties	1,950		2,008
	Total	$7,380		$7,264

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

10.Lessor agreement:

The Company leased the lands in Yuliao Rd., Qiaotou Dist. and Ding-Yen-Tien Section in Kaohsiung City, with a total area of 45,785 square meters to its subsidiary, Shin Yang Steel Co., Ltd. under operating leases. The lease term started is from April 1, 2015 to March 31, 2025, for a total of 10 years. The rent is collected on a monthly basis with reference to the rent level of similar assets. Rental income were both $11,796 thousand for the years ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, the total lease payments to be received in the future were $38,337 thousand and $50,133 thousand, respectively.

Financing activities - lending: (1)Other receivables

2021: None. 2020:

. Financing activities - lending: (1)Other receivables 2021: None. 2020:
Type of related party / Name Subsidiary： United Brightening Development Corp.	Year Ended December 31, 2020
	Endingbalance $ -	Highest balance
		$60,000

(2)Interest income

(2)Interest income
Type of related party / Name Subsidiary： United Brightening Development Corp. Interest Rate Range	Year Ended December 31, 2020
	$152
	2.25%

－65－

12. Financing activities - borrowing:

(1) Other payables

Type of related party / Name Subsidiary： Yieh Phui (Hong Kong) Holdings Limited

Year Ended December 31, 2021 Ending balance Highest balance $ - $404,985

2020: None.

(2) Interest expense

Year Ended Type of related party / Name December 31, 2020 Subsidiary： Yieh Phui (Hong Kong) Holdings $1,527 Limited Interest Rate Range 2.00%

2020: None.

13.Endorsements and guarantees:

(1)The Company borrowed from banks for the related parties and details of endorsement were as follows:

ements and guarantees: Company borrowed from banks rsement were as follows:	for the related parties and details of
Type of related party Subsidiaries	December 31, 2021 Currency Amount USD 113,500 CNY 1,400,000 NTD 1,236,000
	Currency USD CNY NTD

Type of related party Subsidiaries	December 31, 2020 Currency Amount USD 121,000 CNY 1,487,500 NTD 1,236,000
	Currency USD CNY NTD

(2)Lands and Buildings were provided by subsidiaries as collateral for bank loans amounted to $1,881,890 thousand and $1,842,230 thousand as of December 31, 2021 and 2020.
(3)The company provided Lands for subsidiaries as collateral for bank loans amounted to both $336,000 thousand as of December 31, 2021 and 2020.

－66－

14.Others

(1)Miscellaneous income

thers )Miscellaneous income
Relatedpartycategory/Name Subsidiaries Associate： Yieh United Steel Corp. Others Other related parties Total	Year Ended December 31
	2021 2020 $36,269 $39,765 33,432 20,889 221 160 58 323 $69,980 $61,137

These were mainly guarantee fee, and technical service income, etc.

(2)Miscellaneous expenses

)Miscellaneous expenses
Relatedpartycategory Subsidiaries Associates Other related parties Total	Year Ended December 31
	2021 $16,829 29,989 138,110 $184,928	2020
		$6,508 32,321 79,645
		$118,474

These were mainly technical service, and export cost, etc.

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

Type of related party/Name Subsidiaries Associates Other related party： New Spring Construction Corp.	Name of construction Plant column beam renewal and assembly engineering, etc. Precision steel belt factory crane assembly engineering, etc. Ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price $2,796 81,276 3,416,612	contract assets / liabilities
			$754 / $ - 1,199 / 2,302 37,021 / -

－－ 67

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

Type of related party/Name Subsidiaries Associates Other related party： New Spring Construction Corp. Other	Name of construction Plant column beam renewal and assembly engineering, etc. Door type double host grab of overhead cranes, etc. Ground structures construction for E-Da Asia Commercial Plaza, etc. LED screen construction	Total contract price $2,167 5,296 3,388,026 3,300	contract assets / liabilities
			$563 / $ - - / 1,239 92,064 /38,183 164 / -

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

2021:
Investee Subsidiary： Hong Yuh Assets Management Co., Ltd. Great Emperor Hotel Co., Ltd. Corp. Great Emperor Hotel Co., Ltd. Corp. Kings Garden International Co., Ltd. Associate： E-Da Visual Effects Company Limited. E-Da Bus Transportation Co., Ltd.	Investment	Increase Amount 40,000 412,000 134,802 463,500 17,150 10,252	Shareholding Percentage
	Shares (thousand shares) 4,000 40,000 - 45,000 1,715 1,025		Before Offering 80.00% 54.55% 58.17% 50.12% 49.00% 17.09%	After Offering
				80.00% 58.17% (Note) 54.89% 49.00% 17.09%

(Note) Prepaid investment

－68－

2020:

2020:
Investee Subsidiary： Kuo Chang Enterprise Co., Ltd. Great Emperor Hotel Co., Ltd. Corp. Kings Garden International Co., Ltd. Kings Garden International Co., Ltd. Shin Phui Steel Corporation Sin Bang Investment & Development Co., Ltd. United Brightening Development Corp.	Investment	Increase Amount $68,833 1,081,500 72,100 209,066 178,500 18,900 23,890	Shareholding Percentage
	Shares (thousand shares) 6,883 105,000 7,000 - 17,850 1,890 2,389		Before Offering 99.04% 41.18% 49.28% 50.12% 100.00% 100.00% 95.56%	After Offering
				99.04% 54.55% 50.12% (Note) 100.00% 100.00% 95.56%

(Note) Prepaid investment

16.The Company entrusted the subsidiary, Yieh Phui America Inc., to sell the prepainted and galvanized steel coils amounted to $8,099,594 thousand and $2,472,052 thousand, respectively. Due to the above transactions, the contract liabilities were $1,617,653 thousand and $252,055 thousand as of December 31, 2020 and 2019, respectively.
17.Some of the Company’s lands recorded as property, plant, and equipment, are unable to be registered under the name of the Company temporarily and registered under the executive specialist of the Company due to regulation restriction. Accordingly, the lands are mortgage registered to the Company 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 $37,697 591 - - - $38,288	2020
		$30,663 11,357 - - -
		$42,020

－－ 69

8.PLEDGED ASSETS

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

Item Pledged demand deposits Subtotal of other financial assets - current Pledged demand deposits Pledged time deposits Sub-total of other financial assets - noncurrent Property, plant and equipment (net) Noncurrent assets held for sale Investment properties Total	December 31	December 31
	2021 $55,001 55,001 - 160 160 6,091,631 - 443,349 $6,590,141	2020
		$164,162
		164,162
		46,078 160
		46,238
		6,422,400 159,832 443,349
		$7,235,981

9.SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1)Guarantee notes issued to banks by the Company for loans and purchases performance totaled $25,029,087 thousand and $25,050,703 thousand of as December 31, 2021 and 2020, respectively.

(2) Guarantee notes received by the Company for its contract performance and creditor’s right totaled $190,094 thousand and $169,019 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:

December 31,2021 L/C Amount SecurityDeposit NTD 436,582 - USD 45,176 - JPY 2,606 - -	December 31,2020	December 31,2020
L/C Amount NTD 436,582 USD 45,176 JPY 2,606	L/C Amount NTD 294,737 USD 14,362 JPY 1,094,460 EUR 71	SecurityDeposit
		- - -

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

Item Property, plant and equipment	December 31	December 31
	2021 $ -	2020
		$362,477

(5)For the Company’s endorsement for others as of the years ended December 31, 2021 and 2020, please refer to Note 7.3.13.
(6)As of December 31, 2021 and 2020, guarantees provided to banks by the Company for performance and warranty amounted to $62,619 thousand, and $31,963 thousand, respectively.
(7)The Company entered into raw material purchase agreements with suppliers of Hot Rolled Steel Coils, Zinc Ingot and Aluminum alloy, including ARCELOR, TENNANT and KOREA ZINC, etc. The price was agreed on by both parties upon negotiation. As of December 31, 2021, the unperformed portion totaled 30,354 tons, amounting to $841,430 thousand.

－－ 70

(8)Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., two subsidiaries, entered into the syndicated loan agreements with Land Bank of Taiwan and First Commercial Bank in August 2014. Yieh United Steel Corp., Yieh Phui Enterprise Co., Ltd., and Yieh Hsing Enterprise Co., Ltd. issued a commitment letter before the first use that. the Company and its related parties shall jointly hold more than 50% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd.’s issued shares and gain the majority of directors' seats at all times. The YIEH PHUI Group held 100% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd. and acquired all directors' seats of both companies as of December 31, 2021.

10.SIGNIFICANT DISASTER LOSS:NONE.

11.SIGNIFICANT SUBSEQUENT EVENTS:NONE.

12.OTHERS

(1) Capital risk management

As the Company needs to maintain sufficient capital to meet the needs for expansion and plant and equipment improvement, capital management of the Company 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 Company’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 Company 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 Company 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 Company is exposed to exchange rate risk arising from the sales, purchases and borrowings in currencies other than the Company’s functional currency, as well as from net investment of foreign operations. Functional currencies adopted by entities within the Company mainly comprise New Taiwan Dollars, Such transactions are denominated mainly in USD. To avoid a decrease in the value of assets dominated in foreign currency and volatility in future cash flows due to changes in exchange rates, the Company 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 Company.

－－ 71

a. Exchange rate exposure and sensitivity analysis:

Exchange rate		December31,2021	December31,2021	December31,2021
	Presented amount (New Taiwan Dollars) 1,352,791 10,962,053 1,154,909 194,642	SensitivityAnalysis
		Range of change Effects on profit or loss UP1% 13,528 UP1% - UP1% (11,549) UP1% (1,946) December 31, 2020		Effects on Equity
27.68 27.68 27.68 0.2405 Exchange rate				- 109,621 - -
	Presented amount (New Taiwan Dollars) 988,035 10,506,412 679,337	Sensitivity Analysis
		Range of change Up 1% Up 1% Up 1%	Effects on profit or loss 9,880 - (6,793)	Effects on Equity
28.48 28.48 28.48				- 105,064 -

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.

b. Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Company’s monetary items amounted to $47,405 thousand and $(85,486) thousand for the years ended December 31, 2021 and 2020, respectively.

(B) Price risk

Since the Company’s investment in securities is classified as financial assets at FVTPL or financial assets at FVTOCI on the standalone balance sheet, the Company does not expose to price risks of securities.

The Company mainly invests in domestic listed and unlisted stocks and

－－ 72

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 $2,181 thousand and $2,341 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 $7,929 thousand and $6,909 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

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

liabilities that are exposed to as follows:	interest rate risk at the	reporting date is stated
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 $160 (849,291) $(849,131) $527,309 (15,594,479) $(15,067,170)	December 31,2020
		$213,452 (809,085)
		$(595,633)
		$383,456 (16,224,098)
		$(15,840,642)

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

     - The Company 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 decrease by $1,774 thousand.

  - b. Sensitivity analysis of those with cash flow interest rate risk: The interest-fluctuate instruments possessed by the Company were floating-interest 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 $(150,672) thousand and $(158,406) thousand for 2021 and 2020, respectively.

B. Credit risk
Credit risk refers to the risk of financial loss to the Company arising from default by counter-parties of financial instruments on the contract obligations. Credit risk of the Company 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.

－－ 73

Credit risk related to operations

To maintain the quality of accounts receivable, the Company 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 Company’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 Company’s financial departments. The Company 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 Company 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 60.34% and 61.71% of the Company’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 6.26 for details.
b. Indications for determining whether the credit risk is increased significantly: None (the Company 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 standalone balance sheets, pledged collateral, master netting arrangements and other credit enhancement held by the Company:

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

－－ 74

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

C. Liquidity risk
(A) Liquidity risk management
- The Company’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 Company.
(B) The table below shows an analysis of the financial liabilities held by the Company with defined repayment terms based on maturity dates and undiscounted payment at maturity:

Non-derivative financial Liabilities			December 31, 2021	December 31, 2021	December 31, 2021
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - 198,757 42,020 2,000 $242,777	Contractual cash flows $5,764,136 650,000 455,374 769,888 857,639 257,031 9,862,999 2,000 $18,619,067	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term loans (including current portion) Long-term loans (including current portion) Guarantee deposits Received Subtotal	$5,564,136 650,000 455,374 769,888 838,684 6,741 125,190 -	$200,000 - - - 18,955 6,659 302,269 -	$ - - - - - 13,198 1,308,380 -	$ - - - - - 31,676 8,085,140 -			$5,764,136 648,832 455,374 769,888 857,639 200,459 9,830,343 2,000
	$8,410,013	$527,883	$1,321,578	$8,116,816			$18,528,671

Further information on the maturity analysis of lease liabilities is as follows:

	follows:
							Total
					15-20		undiscounted
	Lessthan 1year	1-5 years	5-10 years	10-15 years	years	Over 20 years	lease payments
Lease liabilities	$13,400	$44,874	$42,715	$42,278	$42,277	$71,487	$257,031

－－ 75

Non-derivative financial Liability			December 31,2020	December 31,2020	December 31,2020
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - 206,162 56,200 2,000 $264,362	Contractual cash flows $7,911,299 600,000 345,662 411,842 463,749 270,097 8,324,740 2,000 $18,329,389	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term loans (including current portion) Long-term loans (including current portion) Guarantee deposits Received Subtotal	$7,161,299 600,000 345,662 411,842 463,749 6,407 857,070 -	$750,000 - - - - 7,928 1,133,570 -	$ - - - - - 13,400 4,094,760 -	$ - - - - - 36,200 2,183,140 -			$7,911,299 599,115 345,662 411,842 463,749 209,970 8,312,799 2,000
	$9,846,029	$1,891,498	$4,108,160	$2,219,340			$18,256,436

Further information on the maturity analysis of lease liabilities is as follows:

	follows:
Lease liabilities	Lessthan 1year	1-5 years	5-10 years	10-15 years	15-20 years $42,278	Over 20 years $78,673	Total undiscounted lease payments
	$14,335	$49,600	$42,933	$42,278			$270,097

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

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	December 31	December 31
	2021 $915,280 1,186,019 288,206 55,001 545,925 160 218,128 792,920	2020
		$338,824 1,363,795 110,574 164,162 422,407 46,238 234,138 690,916

－－ 76

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) Lease liabilities (including current portion) Deposits received	December 31	December 31
	2021 5,764,136 648,832 1,225,262 857,639 9,830,343 200,459 2,000	2020
		7,911,299 599,115 757,504 463,749 8,312,799 209,970 2,000

(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 6.13. For fair value of investments in associates with quoted prices in an open market, please refer to Note 6.10.
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 Company’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.

Level 3

Unobservable inputs for the asset or liability. The fair value of the Company’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 Company thinks that the carrying amount of financial instruments not measured at fair value except those listed in the table below, 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 non-current), long-term loans (including current portion), and 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 Company’s fair value hierarchy is disclosed in the following table:

－－ 77

	December 31,2021	December 31,2021
Level 1 $21,320 - - 24,244 $45,564	Level 2 Level 3 $ - $ - - 196,808 - 768,676 - - $- $965,484 December 31, 2020		Total
			$21,320 196,808 768,676 24,244
			$1,011,048

Level 1 $20,846 - - 29,789 $50,635	Level 2 $ - - - - $-	Level 3 $ - 213,292 661,127 - $874,419	Total
			$20,846 213,292 661,127 29,789
			$925,054

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 Company 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

－－ 78

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 Company 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 Company. 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 Company's policies of fair value valuation management and relevant control procedures, the Company'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 standalone balance sheet. Every price data and parameters used in the valuation is reviewed thoroughly and adjusted for current market conditions.
(6) The Company 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 Company.
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 Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income Ending balance	Investment in unquoted financial instruments Year Ended December 31 2021 2020 $874,419 $1,165,203 10,000 15,000 - (284,488) (847) (16,087) (16,484) 3,097 98,396 (8,306) $965,484 $874,419
	2021 $874,419 10,000 - (847) (16,484) 98,396 $965,484

－－ 79

Valuation process for Level 3 fair value measurement: Valuation process regarding fair value Level 3 is conducted by the Company’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 Company 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 Company are used to measure the significant unobservable inputs of fair value.

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

(4) Transfer of financial assets: 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)
B. Information on investees (Table 9)
C. Information on investments in mainland China (Table 10)
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 11)

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TABLE 1

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

		Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	Unit: Thousands of NT Dollar/ Foreign Currency	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’.

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TABLE 2

Yieh Phui Enterprise Co., Ltd. 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	－	－	－

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(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.

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TABLE 3

Yieh Phui Enterprise Co., Ltd. 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

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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

－86－

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

－－ 87

TABLE 4

Yieh Phui Enterprise Co., Ltd.

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.

－88－

TABLE 5

Yieh Phui Enterprise Co., Ltd. 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

			For The Year Ended December	For The Year Ended December	For The Year Ended December	For The Year Ended December	31, 2021	31, 2021	31, 2021	31, 2021	31, 2021
							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

－－ 89

TABLE 6

Yieh Phui Enterprise Co., Ltd. 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/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	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.

－－ 90

TABLE 7

Yieh Phui Enterprise Co., Ltd. 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
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 contractuallyagreed	－	－	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

－－ 91

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.

－－ 92

TABLE 8

Yieh Phui Enterprise Co., Ltd.

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
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.

－－ 93

TABLE 9

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

Unit: Thousands of NT Dollar/ Foreign Currency

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
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

－－ 94

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)

－－ 95

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.	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 HotelCo.,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)

－－ 96

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as theperiod-end	Shares held as theperiod-end	Shares 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
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
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)

－－ 97

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
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value
United Brightening Development Corp.	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	-	-
	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)

－－ 98

Investor	Investee	Location	Mainbusiness 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
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 Mining Co., 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
	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 commercialbuildings	-	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.

－－ 99

TABLE 10

Yieh Phui Enterprise Co., Ltd. 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

(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

－100－

(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 8 attached ~ Table 9 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.

－101－

TABLE 11

Yieh Phui Enterprise Co., Ltd. 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.

14. SEGMENTINFORMATION

Information regarding business segments has been disclosed in the consolidated financial statements. Therefore, the Company does not disclose such information in the standalone financial statements.

－102－

STATEMENTS OF MAJOR ACCOUNTING ITEMS

STATEMENTS OF MAJOR ACCOUNTING ITEMS CONTENTS
Item	Statement Index
Major accountingitems in assets,liabilities and equity
Statement of cash and cash equivalents	P.105
Statement of financial assets measured at fair value through profit or loss - current	P.106
Statement of notes receivable	P.107
Statement of accounts receivable	P.108
Statement of other receivables	P.109
Statement of inventories	P.110
Statement ofprepayments	Note 6(7)
Statement of other financial assets - current	P.111
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent	P.112
Statement of changes in investments accounted for usingequitymethod	P.113
Statement of changes inproperty, plant and equipment	Note 6(11)
Statement of changes in accumulated depreciation and accumulated impairment ofproperty, plant and equipment	Note 6(11)
Statement of changes in right-of-use assets	Note 6(12)
Statement of changes in accumulated depreciation and accumulated impairment of right-of-use assets	Note 6(12)
Statement of changes in investmentproperties	Note 6(13)
Statement of changes in accumulated depreciation and accumulated impairment of investmentproperties	Note 6(13)
Statement of deferred income tax assets	Note 6(32)
Statement of refundable deposits	P.115
Statement of other financial assets - noncurrent	P.116
Statement of short-term loans	P.117
Statement of short-term notes and billspayable	P.119
Statement of notespayable	P.120
Statement of accountspayables	P.121
Statement of otherpayables	Note 6(17)
Statement ofprovisions - current	Note 6(18)

－103－

Item	Statement Index
Statement of long-term loans and currentportion of long-term loans	P.122
Statement of lease liabilities	P.125
Deferred tax liabilities	Note 6(32)
Statement ofguarantee deposits	P.126
Major accountingitems inprofit or loss
Statement ofoperatingrevenue	P.127
Statement ofoperating cost	P.128
Statement of sellingand marketingexpenses	P.130
Statement ofgeneral and administrative expenses	P.130
Statement of employee benefits,depreciation and amortization expense	Note 6(27)
Statement of othergains and losses	Note 6(30)
Statement of finance costs	Note 6(31)

－104－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021

	(In Thousands of New Taiwan Dollars and Foreign Currencies)	(In Thousands of New Taiwan Dollars and Foreign Currencies)	(In Thousands of New Taiwan Dollars and Foreign Currencies)
Item	Description	Amount	Remark
Cash	Petty cash	$1,740
Bank savings	Checking accounts	$441,232
	Demand deposits - New Taiwan Dollars	18,825
	Demand deposits - foreign currencies	453,483 USD 16,383
Subtotal		$913,540
Total		$915,280
Exchange rate as	of December 31, 2021: USD:NTD 1:27.68

－105－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT DECEMBER 31, 2021

(In Thousand Shares & Thousands of New Taiwan Dollars) Fair Value

Financial Instrument Name	Description	Shares or Unit	Acquired Cost	Unit Price	Amount
Fubon 3-Year Maturity Asia USD Bond Fund Invesco 3 to 6 Year Maturity Emerging Market Bond Fund Hua Nan Real Harvest Fund of Funds JPMorgan Funds – US Technology Fund - JPM US Technology F (acc) –USD Allianz Global Investors Income and Growth Fund Subtotal Eliter International Corp.- Preferred stock E Total	Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Preferred Stock	500 100 600 1 13 19,706	$5,030 1,015 6,045 5,000 5,045	8.91 9.74 10.31 4,744.00 381.77 9.99	$4,453 974 6,186 4,744 4,963
			22,135		21,320
			197,061		196,808
			$219,196		$218,128

－106－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF NOTES RECEIVABLE

DECEMBER 31, 2021

Client Name Company A Others Total Less: Allowance for doubtful accounts Net	Description	(In Thousands of New Taiwan Dollars) Amount Remark $6,827 48 $6,875 (39) $6,836	(In Thousands of New Taiwan Dollars) Amount Remark $6,827 48 $6,875 (39) $6,836
	Construction receivable Under 5%	$6,827 48
		$6,875 (39)
		$6,836

－－ 107

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2021

	(In Thousands of New	Taiwan Dollars and Foreign Currencies)	Taiwan Dollars and Foreign Currencies)
Client Name	Description	Amount	Remark
Unrelated parties:
Company B	Trade receivable	$151,416
Company C	Trade receivable	84,734 USD 3,061
Company D	Trade receivable	80,284
Company E	Trade receivable	61,322 USD 2,215
Company F	Trade receivable	47,349
Others	Under 5%	500,851
Total		$925,956
Less: Allowance for		(5,268)
doubtful accounts
Net		$920,688
Related parties:
Asiazone Co., Limited	Trade receivable	$100,257 USD 3,622
Shin Yang Steel Co., Ltd.	Trade receivable	82,612
Shin Phui Steel Corporation	Trade receivable	28,190
Yieh United Steel Corporation	Trade receivable	35,547
Others	Under 5%	12,734
Total		$259,340
Less: Allowance for		(845)
doubtful accounts
Net		$258,495

Exchange rate as of December 31, 2021: USD:NTD 1:27.68

－108－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OTHER RECEIVABLES

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item Other receivables - unrelated parties Other receivables - related parties	Description Business tax refunded Proceeds from disposal of mutual funds Others Discounts receivable Scrap iron revenue receivable Dividend income receivable Guarantee Fee receivable Manpower support receivable Others	Amount	Remark
		$203,500 21,323 1,511	USD 220 USD 213
		$226,334
		$38,570 8,209 6,162 5,891 2,163 877
		$61,872

Exchange rate as of December 31, 2021: USD:NTD 1:27.68

－－ 109

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount	Remark
		Cost	Net Realizable Value
		$2,240,948 18,041 956,461 4,379,693 127,320	$2,025,548 18,125 1,103,361 5,454,299 138,678
		7,722,463 (245,688)	8,740,011 -
		7,476,775	8,740,011
		81,685 7,373	97,288 7,389
		89,058 (19)	104,677 -
		89,039	104,677
		$7,565,814	$8,844,688

－110－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS - CURRENT DECEMBER 31, 2021

Item	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,000 Pledge demand deposits 1 $55,001	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,000 Pledge demand deposits 1 $55,001	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,000 Pledge demand deposits 1 $55,001
Land Bank - Gangshan Branch Taichung Commercial Bank- Kaohsiung Branch Total	Pledge demand deposits Pledge demand deposits	$55,000 1
		$55,001

－111－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT FOR THE YEAR ENDED DECEMBER 31, 2021

Item	Balance, January 1, 2021	Balance, January 1, 2021	Increase	Increase	Decrease	Decrease	Decrease	Decrease
	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value
	2,949 1,800 15,863 85 701 4,541 1,100 200 150 24 1,000 20,528 3,000 - 980 5,000 3,558 100 18,469	$29,789 53,910 119,370 6,208 6,777 38,256 6,266 86,559 4,494 535 7,508 304,001 27,243 - - - - - -	- - 1,140 - - 182 - - - - - - - - - - - - -	$ - 25,809 10,866 - - 7,228 878 38,903 311 - - 21,180 424 10,000 - - - - -	- - - 85 - - - - - - - - - - 980 - - - -	$5,545 - - 6,208 1,778 - - - - - 64 - - - - - - - -	2,949 1,800 17,003 - 701 4,723 1,100 200 150 24 1,000 20,528 3,000 - - 5,000 3,558 100 18,469	$24,244 79,719 130,236 - 4,999 45,484 7,144 125,462 4,805 535 7,444 325,181 27,667 10,000 - - - - -

Current increase of $115,599 thousand includes capital increase by cash for $10,000 thousand and unrealized gain on financial assets at FVTOCI for $105,599 thousand.
Current decrease of $13,595 thousand includes proceeds from capital reduction for $847 thousand and unrealized loss on financial assets at FVTOCI for $12,748 thousand.

－112－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021

Name	Beginning	Balance	In	crease	De	crease	Ending Balan	Ending Balan	ce	(In T Marke Net	housand Shares & t Value or Value	Thousands of New Tai Collateral or Pledge	wan Dollars) Remark
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
Yieh Phui (Hong Kong) Holdings Limited Champion Logistic Inc. Eliter International Corp. Yieh Hsing Enterprise Co., Ltd. Tangeng Iron Works Co., Ltd. E-Da Development Corp. United Brightening Development Corp. Shin Yang Steel Co., Ltd. Yieh Mau Corp. Kuo Chang Enterprise Co., Ltd. Asiazone Co., Ltd. Shin Phui Steel Corporation Sin Bang Investment & Development Co., Ltd. EMMT Systems Corporation Good Honor Holdings Ltd. Gen-Wan Technology Corp. Cheng Shin Security Co., Ltd. E-Da Bus Transportation Co., Ltd. E-DA Tour Bus Co., Ltd. Worthing honor Holdings Ltd. E United Japan Co., Ltd. Skylark Hot Spring & Resort Corp. E-Da Entertainment Co., Ltd. Li Hui Development Co., Ltd. Ji Chang Enterprise Co., Ltd. Yieh United Steel Corporation Hong Yuh Assets Management Co.,Ltd.	233,500 90 283,584 304,654 39,553 209,619 150,893 87,696 52,658 107,370 15,090 23,917 21,203 40,033 46 3,293 1,400 1,845 1,349 100 - 1,170 7,410 64,045 1,042 676,661 119,920	$9,502,034 4,772 2,650,801 971,579 1,154,704 1,116,484 1,445,019 834,458 699,843 1,062,054 637,907 252,846 232,955 529,305 3,901 44,511 9,598 684 13,108 2,629 4,147 - 57,924 310,169 4,692 2,653,964 426,085	- - - - - - - - 2,633 - - - - 8,807 - 658 - - - - - - - - - - 4,000	$450,359 - - 18,798 182,724 - 214,537 207,442 83,540 179,934 - 6,210 12,147 126,043 - 10,293 - 383 - - - - 17,573 - - 1,155,560 -	- 90 - - - - - - - - - - 2,100 - - - - - - - - - - - - - -	$ - 4,772 38,077 - - 92,129 - - - - 1,275 - - - 114 - 2,010 - 780 73 225 - - 9,243 47 - 34,122	233,500 - 283,584 304,654 39,553 209,619 150,893 87,696 55,291 107,370 15,090 23,917 19,103 48,840 46 3,951 1,400 1,845 1,349 100 - 1,170 7,410 64,045 1,042 676,661 123,920	100.00 - 30.06 57.41 11.30 28.44 95.56 100.00 23.00 99.04 32.80 100.00 100.00 78.51 100.00 86.99 35.00 17.09 19.00 100.00 47 14.63 19.00 44.56 45.00 25.82 80.00	$9,952,393 - 2,612,724 990,377 1,337,428 1,024,355 1,659,556 1,041,900 783,383 1,241,988 636,632 259,056 245,102 655,348 3,787 54,804 7,588 1,067 12,328 2,556 3,922 - 75,497 300,926 4,645 3,809,524 391,963	42.62 - 9.37 3.77 33.81 4.92 10.92 11.86 15.26 11.68 42.19 10.68 12.83 13.42 82.33 13.87 5.42 0.58 9.14 25.56 - (0.73) 10.19 5.15 4.95 5.72 3.16	$9,952,393 - 2,656,247 1,147,452 1,337,428 1,031,821 1,647,467 1,040,430 843,716 1,254,516 636,632 255,541 245,102 655,348 3,787 54,804 7,588 1,067 12,328 2,556 3,922 (859) 75,497 329,896 5,153 3,870,286 391,963	None None None None None None None None None None None None None None None None None None None None None None None None None None None

－113－

Name	Beginning	Balance	In	crease	De	crease	Ending Balan	Ending Balan	ce	Marke Net	t Value or Value	Collateral or Pledge
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
E-Da Visual Effects Company Limited. Lian So(H.K) Co., Limited E-Da Health Biotechnology Co., Ltd. Yieh Phui America Inc. Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Subtotal Prepaid shares: Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Total	1,470 16,560 380 1 252,000 213,000	- 289,013 3,691 66,156 2,491,930 2,087,966	1,715 - - - 40,000 45,000	207 - - 42,894 214,710 366,906	- - - - - -	- 31,378 11 - - -	3,185 16,560 380 1 292,000 258,000	49.00 80.00 19.00 100 58.17 54.89	207 257,635 3,680 109,050 2,706,640 2,454,872	0.06 15.56 9.68 109,050 9.27 9.52	207 257,636 3,680 109,050 2,706,640 2,454,872	None None None None None None
		$29,564,929 - 209,066		$ 3,290,260 134,802 -		$ 214,256 - 209,066			$32,640,933 134,802 -		$32,994,166 - -
		$29,773,995		$ 3,425,062		$423,322			$32,775,735		$32,994,166

Note:In addition to the increase or decrease in investment, the increase and decrease in the current year were mainly due to the elimination of unrealized gains and losses from downstream transactions, the use of equity method to recognize

－114－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF REFUNDABLE DEPOSITS

DECEMBER 31, 2021

	(In Thousands of New Taiwan Dollars and Foreign Currencies)	(In Thousands of New Taiwan Dollars and Foreign Currencies)
Item	Description	Amount Remark
Refundable deposits	Customs duty guarantee	$539,760 USD 19,500
	Dumping difference	2,098 USD 76
	Rent deposits	3,266
	Others	801
Total		$545,925
Exchange rate as of December 31, 2021: USD:NTD 1:27.68

－115－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS - NONCURRENT

DECEMBER 31, 2021

Item	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 $160	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 $160	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 $160
Taiwan Bank Total	Pledged time deposits	$160
		$160

－116－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM LOANS

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Creditor	Description	Beginning Balance	Contract Period November 4, 2021~June 22, 2022 October 21, 2021~June 20, 2022 December 2, 2021~March 30, 2022 October 21, 2021~June 27, 2022 November 11, 2021~June 7, 2022 December 16, 2021~June 28, 2022 October 7, 2021~June 21, 2022 September 23, 2021~June 21, 2022 November 11, 2021~March 18, 2022 December 9, 2021~June 14, 2022 November 2, 2021~April 9, 2022 December 2, 2021~June 7, 2022 November 4, 2021~March 30, 2022 November 4, 2021~April 22, 2022 November 11, 2021~April 15, 2022 December 9, 2021~June 14, 2022 October 7, 2021~June 28, 2022 September 8, 2021~June 24, 2022 November 19, 2021~May 20, 2022 December 24, 2021~June 22, 2022 December 29, 2021~June 27, 2022 October 15, 2021~June 18, 2022	Loan Commitment (Note 3)	Collateral	Remark
Bangkok - Kaohsiung Branch KGI Bank - Kaohsiung Branch CTBC Bank - Minzu branch Mega Bank - Gangdu Branch Shanghai Bank - Chien Chin Branch Taiwan Cooperative Bank - Kaohsiung Branch Land Bank - Gangshan Branch Taiwan Bank - Gangshan Branch Shin Kong Bank- Chihsien Branch Chang Hwa Bank - Kaohsiung Branch Bank SinoPac - North Kaohsiung Branch O-Bank- Kaohsiung Branch Entie Bank - Kaohsiung Branch China Bank -Taipei Branch Taiwan Business Bank - Kaohsiung Branch TCBBank - Kaohsiung Branch Panhsin Bank - Hsin Hsing Branch TCBBank - Kaohsiung Branch Hua Nan Bank - Gangshan Branch Bangkok - Kaohsiung Branch Mega Bank - Gangdu Branch Taiwan Business Bank - Kaohsiung Branch	Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase	$136,616 150,340 175,528 43,644 133,889 130,629 453,095 603,220 99,939 46,097 216,263 99,808 299,105 232,557 82,715 99,684 225,507 47,510 54,458 18,346 26,594 189,017		$563,600 400,000 230,000 1,180,000 149,950 550,000 550,000 750,000 200,000 700,000 300,000 100,000 400,000 590,400 120,000 200,000 230,000 200,000 120,000 563,600 1,180,000 660,800	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	USD 1,716 USD 1,967 USD 663 USD 961 USD 6,829

－－ 117

Creditor	Description	Beginning Balance	Loan Commitment (Note 3)	Collateral	Remark
Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch First Bank - Hsin Hsing Branch First Bank - Hsin Hsing Branch KGI Bank - Kaohsiung Branch Chang Hwa Bank - Kaohsiung Branch Jih Sun Bank - Kaohsiung Branch China Bank -Taipei Branch Far Eastern Int'l Bank - Kaohsiung Branch KGI Bank - Kaohsiung Branch Yuanta Bank - Kaohsiung Branch Sunny Bank- Liwen Branch Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch COTA Bank-Fengshan Branch Taishin International Bank - Lingya Branch Entie Bank - Kaohsiung Branch Jih Sun Bank - Kaohsiung Branch Credit Loan Subtotal Total Range of Interest Rates (%)	Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan	36,211 38,791 151,658 1,563 41,502 137,382 42,468	550,000 750,000 600,000 600,000 400,000 700,000 300,000	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 None None None None None None None None None None None	USD 1,308 USD 1,401 USD 5,479 JPY 6,500 USD 1,499 USD 4,963 USD 1,534
		$4,014,136	$13,838,350
		200,000 250,000 150,000 250,000 100,000 100,000 100,000 100,000 200,000 100,000 200,000	590,400 250,000 400,000 500,000 100,000 550,000 750,000 100,000 250,000 400,000 300,000
		$1,750,000	$4,190,400
		$5,764,136
		1.39%-2.10%

Note 1: Please refer to Note 8 for the collaterals of the above short-term loans. Note 2: Exchange rate as of December 31, 2021: USD:NTD 1:27.68, JPD:NTD 1:0.2405. Note 3: Credit lines shown above are the combined limits from each banks.

－118－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE DECEMBER 31, 2021

Contract Period November 10, 2021~ January 22, 2022 November 11, 2021~ January 25, 2022 November 12, 2021~ February 22, 2022 November 2, 2021~ February 7, 2022 December 27, 2021~March 29, 2022	(In Thousands of New Taiwan Dollars) Issued Amount Discount Book Value Remark $100,000 $66 $99,934 200,000 176 199,824 100,000 148 99,852 100,000 163 99,837 150,000 615 149,385 $650,000 $1,168 $648,832 1.69%-1.85%	(In Thousands of New Taiwan Dollars) Issued Amount Discount Book Value Remark $100,000 $66 $99,934 200,000 176 199,824 100,000 148 99,852 100,000 163 99,837 150,000 615 149,385 $650,000 $1,168 $648,832 1.69%-1.85%

－－ 119

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF NOTES PAYABLE

DECEMBER 31, 2021

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $121,751 35,693 30,162 267,768 $455,374	(In Thousands of New Taiwan Dollars) Amount Remark $121,751 35,693 30,162 267,768 $455,374
MEGA Bank (Note) Company G Company H Others Total	Trade payable Trade payable Trade payable Under 5%	$121,751 35,693 30,162 267,768
		$455,374

Note: Notes payable to China Steel Corporation, and China Steel Corporation transferred such notes receivable to Mega International Commercial Bank.

－120－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS PAYABLES

DECEMBER 31, 2021

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $243,296 USD 8,790 139,289 125,431 59,425 USD 2,147 202,447 $769,888	(In Thousands of New Taiwan Dollars) Amount Remark $243,296 USD 8,790 139,289 125,431 59,425 USD 2,147 202,447 $769,888
Unrelated parties: Company I Company J Company K Company L Others Total	Trade payable Trade payable Trade payable Trade payable Under 5%	$243,296 139,289 125,431 59,425 202,447	USD 8,790 USD 2,147
		$769,888

Exchange rate as of December 31, 2021: USD:NTD 1:27.68.

－121－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF LONG-TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Creditor Description Amount Contract Period Collateral Remark Syndicated Loan of Mega Bank: Mega Bank - Gangdu Branch Pledge Loan $344,000 January 7, 2021~ January 7, 2026 Land, plant, machinery and equipment Chang Hwa Bank - Kaohsiung Branch Pledge Loan 344,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Agricultural Bank - Sales Department Pledge Loan 256,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Taiwan Cooperative Bank - Kaohsiung Branch Pledge Loan 256,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Taiwan Bank - Gangshan Branch Pledge Loan 256,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment First Bank Pledge Loan 256,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Hua Nan Bank - Gangshan Branch Pledge Loan 256,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Taiwan Business Bank - Kaohsiung Branch Pledge Loan 179,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Land Bank - Gangshan Branch Pledge Loan 153,000[January 7, 2021~ January 7, 2026] Land, plant, machinery and equipment Mega Bank - Gangdu Branch Credit Loan 331,000[January 7, 2021~ January 7, 2026] None Chang Hwa Bank - Kaohsiung Branch Credit Loan 331,000[January 7, 2021~ January 7, 2026] None Agricultural Bank - sales Department Credit Loan 244,000[January 7, 2021~ January 7, 2026] None Taiwan Cooperative Bank - Kaohsiung Branch Credit Loan 244,000[January 7, 2021~ January 7, 2026] None Taiwan Bank - Gangshan Branch Credit Loan 244,000[January 7, 2021~ January 7, 2026] None First Bank Credit Loan 244,000[January 7, 2021~ January 7, 2026] None Hua Nan Bank - Gangshan Branch Credit Loan 244,000[January 7, 2021~ January 7, 2026] None Taiwan Business Bank - Kaohsiung Branch Credit Loan 171,000[January 7, 2021~ January 7, 2026] None Land Bank-Gangshan Branch Credit Loan 147,000[January 7, 2021~ January 7, 2026] None Subtotal 4,500,000

－122－

Creditor	Description Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan	Amount 380,000 219,000 305,000 94,000 219,000 94,000 94,000 94,000 156,000 45,000 605,000 347,000 485,000 149,000 347,000 149,000 149,000 149,000 248,000 72,000 4,400,000	Contract Period June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026	Collateral Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment None None None None None None None None None None	Remark
Syndicated Loan of Taiwan Cooperative Bank: Taiwan Cooperative Bank-Kaohsiung Branch HUA NAN Bank - Gangshan Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch First Bank - Hsin Hsing Branch Agricultural Bank - Sales Department SCSB - Qianjin Branch Taishin International Bank - Lingya Branch Chang Hwa Bank - Kaohsiung Branch Taiwan Business Bank - Kaohsiung Branch Taiwan Cooperative Bank - Kaohsiung Branch HUA NAN Bank - Gangshan Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch First Bank - Hsin Hsing Branch Agricultural Bank - Sales Department SCSB - Qianjin Branch Taishin International Bank - Lingya Branch Chang Hwa Bank - Kaohsiung Branch Taiwan Business Bank - Kaohsiung Branch Subtotal

－123－

Creditor	Description	Amount	Collateral	Remark
Mega Bank - Gangdu Branch First Bank - Hsin Hsing Branch First Bank - Hsin Hsing Branch The Export-Import Bank of the Republic of China Subtotal of Pledge Loan Obank - Kaohsiung Branch Taiwan Cooperative Bank Subtotal Total Less: unamortized syndicated loan arrangement fee Less: Current portion of long-term loans Balance of long-term loans Range of interest rates	Pledge Loan Pledge Loan Pledge Loan Pledge Loan Credit Loan Credit Loan	280,000 53,800 60,120 200,000	Land, buildings Buildings Buildings Land, plants None None	JPY 802,821
		593,920
		176,000 193,079
		369,079
		9,862,999 (32,656) (427,459)
		$9,402,884
		1.15%-2.25%

Exchange rate as of December 31, 2021: JPY:NTD 1:0.2405

－124－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $186,204 6 years 1.9661 14,255 200,459 (9,550) $190,909	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $186,204 6 years 1.9661 14,255 200,459 (9,550) $190,909	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $186,204 6 years 1.9661 14,255 200,459 (9,550) $190,909
3 to 32 years 6 years	1.9661 1.9661	$186,204 14,255
		200,459 (9,550)
		$190,909

－125－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF GUARANTEE DEPOSITS

DECEMBER 31, 2021

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $2,000	(In Thousands of New Taiwan Dollars) Amount Remark $2,000
Guarantee deposits	Sales deposits from customers	$2,000

－126－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2021

Item	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 48,112 $1,188,757 1,379 36,418 1,225,175 783,679 24,480,940 234,990 9,697,860 1,536 26,012 34,204,812 43,526 196,728 38,032 512,648 36,139,363 687,651 36,827,014 (8,478) (817) (32,273) $36,785,446	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 48,112 $1,188,757 1,379 36,418 1,225,175 783,679 24,480,940 234,990 9,697,860 1,536 26,012 34,204,812 43,526 196,728 38,032 512,648 36,139,363 687,651 36,827,014 (8,478) (817) (32,273) $36,785,446
Steel Department Hot Rolled Steel Coils Others Subtotal of revenue from raw materials Galvanized Steel Coils Pre-painted Steel Coils Others Subtotal of revenue from finished goods Processing income of Steel Plates Revenue from by-products and scraps Subtotal Heavy Industry Departments Construction revenue Total Realized (unrealized) gross profit Less: Sales return Sales discount Net operating revenue	48,112 1,379 783,679 234,990 1,536 43,526 38,032	$1,188,757 36,418
		1,225,175
		24,480,940 9,697,860 26,012
		34,204,812
		196,728 512,648
		36,139,363 687,651
		36,827,014 (8,478) (817) (32,273)
		$36,785,446

－－ 127

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Amount
Steel Department Raw materials, beginning of the year Add: Raw materials purchased Freight expenses Less: Raw materials, ending of the year Transfer to operating expenses Raw materials sold Raw materials used Supplies, beginning of the year Add: Supplies purchased Less: Supplies, ending of the year Transfer to operating expenses Supplies used Add: Direct labor Factory overheads Production cost Work in progress, beginning of the year Add: Transfer from finished goods Less: Work in progress, ending of the year Scraps and by-products Cost of finished goods Finished goods, beginning of the year Add: Transfer from raw material Less: Finished goods, ending of the year Transfer to operating expenses Transfer to work in progress Cost of finished goods sold	$1,321,864 31,880,161 253,200 (2,240,948) (248,652) (1,226,602)
	29,739,023
	17,564 704,019 (18,041) (703,542)
	-
	282,469 2,944,459
	32,965,951 428,903 106,585 (956,461) (481,900)
	32,063,078
	1,398,131 (4,379,693) (170,071) (160,889) (106,585)
	28,643,971

－128－

Cost adjustment items： Inventory valuation loss (recovery gain) Purchase and construction contract loss (recovery gain) Unallocated fixed factory overhead Purchase discounts- Pick-up bonus, etc. Subtotal cost for Steel Department Cost of raw materials sold Cost of by-products sold Processing cost Total operating cost for Steel Department Heavy Industry Department Construction cost Inventory valuation loss (recovery gain) Purchase and construction contract loss (recovery gain) Total operating cost for Heavy Industry Department Total operating cost	244,919 31,735 10,809 (45,367)
	28,886,067
	1,226,602 437,429 170,071
	30,720,169
	621,332 (399) (324)
	620,609
	$31,340,778

－－ 129

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2021

Item Payroll expense Insurance Entertain expense Depreciation Employee benefits/welfare Pension Transportation expense Other expenses (Note) Total	Selling and marketing expenses $164,844 17,823 13,203 11,916 9,111 7,679 1,148,886 57,137 $1,430,599	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $236,343 $401,187 22,503 40,326 12,049 25,252 12,581 24,497 11,120 20,231 9,456 17,135 - 1,148,886 91,035 148,172 $395,087 $1,825,686	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $236,343 $401,187 22,503 40,326 12,049 25,252 12,581 24,497 11,120 20,231 9,456 17,135 - 1,148,886 91,035 148,172 $395,087 $1,825,686
			$401,187 40,326 25,252 24,497 20,231 17,135 1,148,886 148,172
			$1,825,686

(Note): None of the individual item exceeds 2% of the amount.

－130－

AI assistant

YP — Annual Report 2021

51950_rns_2021-12-01_97e800d4-1321-4e0d-85d7-434f86168520.pdf

Table of Contents

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 Standalone Financial Statements

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Notice to Readers

YIEH PHUI ENTERPRISE CO., LTD STANDALONE BALANCE SHEETS

YIEH PHUI ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CASH FLOWS

YIEH PHUI ENTERPRISE CO., LTD. NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

1 GENERAL INFORMATION

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 Foreign Currencies

4.4Classification of Current and Noncurrent Assets and Liabilities

(1) Steel Department

4.5 Cash and cash equivalents

4.6 Financial instruments

4.7 Inventories

4.8 Noncurrent assets held for sale

4.9 Investments accounted for using equity method / subsidiaries and associates

4.10 Property, Plant and Equipment

4.11 Leases

4.12 Investment properties

4.13 Impairment of non-financial assets

4.14 Provisions

4.15 Employee benefits

Pensions

(1) Defined contribution plans

4.16 Share capital

4.17 Income tax

4.18 Revenue Recognition

(1) Sale of goods

4.19 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 - current

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

6.10 Investments accounted for using equity method

1.Subsidiaries:

2.Associates:

6.11 Property, Plant and Equipment

6.12 Lease Agreement

B. Lease liabilities

YP Annual Report 2021