YP - Audit Report / Information 2019

Stock Code: 2023

YIEH PHUI ENTERPRISE CO., LTD . STANDALONE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 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	11~24
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	24~26
(6) Details of Significant Accounts	26~61
(7) Related PartyTransactions	61~71
(8) Pledged Assets	71
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	71~74
(10) Significant Disaster Loss	74~75
(11) Significant Subsequent Events	75
(12) Others	75~84
(13) Supplementarydisclosures	84
A.Significant transactions information	85~97
B.Information on investees	98~105
C.Information on investments in Mainland China	106~108
(14)Segment information	108
9. Statements of major accountingitems	109~136

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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, 2019 and 2018, 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, 2019 and 2018, 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, 2019. 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, 2019 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 2019 as a key audit matter.

How the matter was addressed in our audit

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

Valuation of inventory

Please refer to Note 4.7 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 $3,314,013 thousand (net of $3,475,207 thousand of total inventory less $161,194 thousand of allowance for inventory valuation loss) as of December 31, 2019, which accounted for 6.95% of total assets. The inventory valuation is measured at the lower of inventory cost and net realizable value. Given that the valuation of net realizable value of inventory has a significant impact on critical judgments and estimates and since inventory valuation is dependent on the influence of frequently volatile fluctuations of international metal price, we have thus included this item in the key audit matters.

How the matter was addressed in our audit:

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

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 $4,704,770 thousand and $4,644,045 thousand, representing 9.87% and 9.17%

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of total standalone assets as of December 31, 2019 and 2018, and the share of profit of these associates accounted for using equity method amounted to $17,477 thousand and ($417,282) thousand, representing (1.00%) and (144.43%) 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 ($857) thousand and $27,596 thousand, representing 0.25% and (178.53%) 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 the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of 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’s 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, 2019 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably 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 17, 2020

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying standalone financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and standalone financial statements shall prevail.

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YIEH PHUI ENTERPRISE CO., LTD. STANDALONE BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Assets	Note	December 31, 2019	December 31, 2019	December 31,	2018	Liabilities and Equity	Note	December 31, 2019	December 31, 2019	December 31, 2018	December 31, 2018
		Amount	%	Amount	%			Amount	%	Amount	%
CURRENT ASSETS Cash and cash equivalents Financial assets at fair value through profit or loss - current Contract assets - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties, net Other receivables Current tax assets Inventories Prepayments Noncurrent assests held for sale Other financial assets - current Total Current Assets NONCURRENT ASSETS Financial assets at fair value through profit or loss - noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Investments accounted for using equity method Property, plant and equipment Right-of-use asset Investment properties Deferred tax assets Refundable deposits Other financial assets - noncurrent Long-term prepaid rent Total Noncurrent Assets TOTAL ASSETS	6(1) 6(2) 6(26) 6(3) 6(4) 7 6(5) 6(6) 6(7) 6(8) 8 6(2) 6(9) 6(10) 6(11) 6(12) 6(13) 6(31) 6(14) 8 6(15)	$665,530 307,571 740,413 4,936 1,099,058 250,730 162,291 48 3,314,013 175,341 23,342 55,236	1 1 2 - 2 1 - - 7 - - -	$327,063 227,960 535,243 28,911 895,226 710,459 213,603 6,508 3,783,904 278,228 218,096 285,559	1 - 1 - 2 1 - - 8 1 - 1	CURRENT LIABLITIES Short-term loans Short-term notes and bills payable Financial liabilities at fair value through profit or loss - current Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Current tax liabilities Provisions - current Liabilties directly associated with noncurrent assets held for sale Lease liabilities - current Current portion of long-term loans Total Current Liabilities NONCURRENT LIABILITIES Long-term loans Deferred tax liabilities Lease liabilities - noncurrent Net defined benefit liability - noncurrent Guarantee deposits Total Noncurrent Liabilities Total Liabilities Share capital Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other Equity Total Equity TOTAL LIABILITIES AND EQUITY	6(16) 6(17) 6(2) 6(26) 7 6(18) 6(19) 6(8) 6(12) 6(20) 6(20) 6(31) 6(12) 6(21) 6(22) 6(23) 6(24) 6(25)	$8,136,122 598,840 - 500,945 615,689 496,418 339,516 401,777 - 50,819 7,630 9,639 1,636,335	18 1 - 1 1 1 1 1 - - - - 3	$7,628,382 499,472 1,998 826,831 626,515 703,792 6,742 474,542 131,576 67,958 62,423 - 1,000,945	16 1 - 2 1 1 - 1 - - - - 2
		$6,798,509	14	$7,510,760	15
		$220,577 704,405 29,201,599 7,386,910 303,393 964,339 799,215 1,139,390 160,138 -	- 1 62 15 1 2 2 3 - -	$790,797 710,093 31,068,139 7,656,732 - 1,115,497 389,068 1,295,104 46,875 83,597	2 1 61 15 - 2 1 3 - -
								$12,793,730	27	$12,031,176	24
								$8,319,270 - 209,141 504,003 2,100	18 - - 1 -	$10,216,633 16,825 - 612,159 2,000	20 - - 1 -
								$9,034,514	19	$10,847,617	21
								$21,828,244	46	$22,878,793	45
								$19,133,275 4,884,281 2,866,052 559,232 (614,438) (978,171)	40 10 6 1 (1) (2)	$18,758,113 4,883,218 2,835,202 636,655 1,233,913 (559,232)	37 10 6 1 2 (1)
		$40,879,966	86	$43,155,902	85

								$25,850,231	54	$27,787,869	55
		$47,678,475	100	$50,666,662	100			$47,678,475	100	$50,666,662	100

The accompanying notes are an integral part of the 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
	2019		2018
	Amount	%	Amount	%
6(26) 6(6) 6(28) 6(29) 6(30) 6(31) 6(32) 6(33) 6(33)	$24,971,014 (24,305,157)	100 (97)	$30,026,324 (27,587,558)	100 (92)
	$665,857 (905,328) (332,784)	3 (4) (1)	$2,438,766 (1,184,854) (377,825)	8 (4) (1)
	(1,238,112)	(5)	(1,562,679)	(5)
	($572,255)	(2)	$876,087	3
	$536,971 671,353 (430,122) (1,946,275)	2 3 (2) (8)	$1,088,806 128,970 (442,745) (1,362,207)	4 - (1) (5)
	($1,168,073)	(5)	($587,176)	(2)
	($1,740,328) 339,247	(7) 1	$288,911 19,595	1 -
	($1,401,081)	(6)	$308,506	1
	$55,074 (16,454) (5,131) (11,015) (439,459) 72,875	- - - - (2) 1	($15,660) 5,410 21,455 (926) (50,436) 24,700	- - - - - -
	($344,110)	(1)	($15,457)	-
	($1,745,191)	(7)	$293,049	1
	($0.73)		$0.16
	($0.73)		$0.16

The accompanying notes are an integral part of the 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 EquityI	tem	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	Unrealized Gain (Loss) on Available-for-sale Financial Assets
$18,211,760 -	$4,873,770 -	$2,698,462 -	$327,757 -	$2,366,597 51,160	($697,778) -	$ - 123,526	$54,733 (54,733)	$27,841,691 119,953
18,211,760 - - - 546,353 - - -	4,873,770 - - - - 6,930 - -	2,698,462 136,740 - - - - - -	327,757 - 308,898 - - - - -	2,417,757 (136,740) (308,898) (364,235) (546,353) 34,815 308,506 (24,807)	(697,778) - - - - - - (26,025)	123,526 - - - - - - 35,086	- - - - - - - -	27,961,644 - - (364,235) - 41,745 308,506 (15,457)
-	-	-	-	283,699	(26,025)	35,086	-	293,049
- - -	2,518 - -	- - -	- - -	(100,928) (45,924) 720	- - -	- - (720)	- - -	(98,410) (45,924) -
18,758,113 - - 375,162 - - - -	4,883,218 - - - - (73) - -	2,835,202 30,850 - - - - - -	636,655 - - - (77,423) - - -	1,233,913 (30,850) (187,581) (375,162) 77,423 3,744 (1,401,081) 74,829	(723,803) - - - - - - (366,243)	157,892 - - - - - - (52,355)	- - - - - - - -	27,787,869 - (187,581) - - 3,671 (1,401,081) (344,110)
-	-	-	-	(1,326,252)	(366,243)	(52,355)	-	(1,745,191)
- -	1,136 -	- -	- -	- (9,673)	- -	- -	- -	1,136 (9,673)
$19,133,275	$4,884,281	$2,866,052	$559,232	($614,438)	($1,090,046)	$105,537	$ -	$25,850,231

The accompanying notes are an integral part of the 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
	2019	2018
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjustments to reconcile profit and 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 of associates, subsidiaries and joint ventures Loss on disposal and retirement of property, plant and equipment Transfer of property, plant and equipment to expenses Gain on disposal of investment properties Gain on disposal of non-current assets held for sale Gain on disposal of investments Others Total adjustments to reconcile profit and loss Changes in operating assets and liabilities Net changes in oprating assets: Decrease (increase) in financial assets as at fair value through profit or loss Decrease (increase) in contract assets Decrease (increase) in notes receivable Decrease (increase) in accounts receivables Decrease (increase) in accounts receivables - related parties Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments Total net changes in operating assets	($1,740,328) 543,985 8,656 430,122 (10,799) (105,987) 1,946,275 19,102 - (341,433) (401,121) (20) 29,986	$288,911 556,096 (21,454) 442,745 (20,798) (33,688) 1,362,207 36,616 186 - - (37,520) 9,064
	$2,118,766	$2,293,454
	26,837 (205,844) 24,052 (204,497) 460,991 97,835 469,891 98,840	(19,256) (129,771) (8,421) 329,877 (383,023) 55,153 361,233 30,632
	$768,105	$236,424

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Item	Year Ended December 31	Year Ended December 31
	2019	2018
Net changes in oprating liabilities: Increase (decrease) Contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in accounts payable - related parties 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 operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities 2.CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity mothod Acquisition of disposal of noncurrent assets held for sale Proceeds from disposal of noncurrent assets held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease (increase) in other receivables - related parties Acquisition of right-of-use assets Acquisition of investment properties	(325,886) (10,826) (207,374) 332,774 (59,659) (17,139) (53,082)	(460,433) (9,168) 184,505 (3,328) (33,920) (8,277) (50,951)
	($341,192)	($381,572)
	$426,913	($145,148)
	$2,545,679	$2,148,306
	$805,351 10,878 184,287 (428,214) (150,981)	$2,437,217 22,651 83,032 (441,783) (57,507)
	$421,321	$2,043,610
	(15,000) 4,234 - 455,076 (1,556,286) 203 917,846 (1,652) 566,075 (287,888) 50 155,714 - (1,187) (13,930)	- 2,352 (481,483) - (3,277,429) 617,884 774,713 - 62,423 (231,795) - (1,251,172) 950,000 - (2,454)

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Item	Year Ended December 31	Year Ended December 31
	2019	2018
Proceeds from disposal of investment properties Decrease (increase) in other financial assets Decrease (increase) in other noncurrent assets Net cash generated from (used in) investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term loans Increase (decrease) in short-term notes and bills payable Increase in long-term loans Repayment of long-term loans Increase (decrease) in guarantee deposits received Repayments of principal of lease liabilities Cash dividends paid Net cash used in financing activities 4.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5.CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6.CASH AND CASH EQUIVALENTS, END OF YEAR	434,619 117,060 -	- (151,428) 2,906
	$774,934	($2,985,483)
	$507,740 100,000 - (1,267,473) 100 (10,574) (187,581)	($552,394) (150,000) 1,105,000 (239,140) - - (364,235)
	($857,788)	($200,769)
	$338,467 327,063	($1,142,642) 1,469,705
	$665,530	$327,063

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

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

FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

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

1 GENERAL INFORMATION

1.1 Yieh Phui Enterprise Co., Ltd. (hereinafter referred to as the Company) was established in April 1978, currently a listed company in Taiwan Stock Exchange (hereafter referred to as TWSE). The Company engages mainly in the processing, manufacturing marketing and import/export trading of rolled steel coils, refined steel, molded steel, steel/iron wires, galvanized/pre-painted/surface-treated metals.
1.2 The Company’s Board of Directors resolved on May 23, 2005 to merge (simplified merger) with Lien Kang Heavy Industrial Co., Ltd, with the Company as the surviving company. The record date of the merger was set on August 30, 2005. Every 2.5 common shares of Lien Kang Heavy Industrial Co., Ltd. were converted into 1 common share of the Company. The Company issued additional 4,859 thousand common shares for this merger. Rights and obligations of holders of the newly issued shares were the same as those of the Company’s original shareholders.
1.3 Lien Kang Heavy Industrial Co., Ltd., incorporated on November 23, 1989, mainly engages in manufacturing, processing and trading of the various mechanical spare parts, as well as pipe installation and engineering design /manufacture / installation.
1.4 The Company's steel pipe department, due to its business expansion, was separated from the Company, and was named as Shin Yang Steel Co. Ltd.. Relevant investment on this was approved by the Board of Directors on January 18, 2011, and a total of 191 employees were transferred to Shin Yang Steel Co., Ltd.
1.5 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 17, 2020.

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

3.1 Effect of adoption of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of SIC (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC):

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

(1) IFRS 16 “Leases”
IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 and IFRIC 4, a number of related interpretations. Upon initial application of IFRS

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

The Company as lessee

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

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

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

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

The Company also applies the following practical expedients:

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

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

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The future minimum lease payments of non-cancellable operating lease on December 31, 2018 Less: Recognition exemption for short-term leases Undiscounted gross amounts on January 1, 2019 Discounted using the incremental borrowing rate on January 1, 2019 Less: prepaid rent Lease liabilities recognized on January 1, 2019	$390,409 (3,772)
	$386,637
	$231,992 (4,047)
	$227,945

The Company as lessor

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

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

Prepayments Long-term prepaid rent Right-of-use assets Total impact on assets Lease liabilities - current Lease liabilities - noncurrent Total impact on liabilities	Unadjusted Carrying Amount as of January 1, 2019 $278,228 83,597 - $361,825 $ - - $-	Adjustments Arising from Initial Application ($4,047) (83,597) 315,589 $227,945 $11,496 216,449 $227,945	Adjusted Carrying Amount as of January 1, 2019
			$274,181 - 315,589
			$589,770
			$11,496 216,449
			$227,945

3.2 Effect of new, revised or amendments IFRSs as endorsed by the FSC but not yet adopted by the Company:

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

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

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

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

3.3 The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC	3.3 The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC
	Effective Date Announced
New, Revised or Amended Standards and Interpretations	by IASB (Note)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution	To be determined by IASB
of Assets between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”	January 1, 2021
Amendments to IAS 1“ Classification of Liabilities as	January 1, 2022
Current or Non-current”

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

The Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

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

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accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the 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) The Company applied IFRS 16 electing not to prepare comparative standalone financial report and notes of Year 2018 and recognized the differences in retained earnings or other equity at January 1, 2019.

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.

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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.
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;
- 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 (excluding relevant dividend or interest income). 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.

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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.

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

4.8 Non-current 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.

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(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 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-acqusition 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

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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 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 55 years Main office buildings 40 to 60 years Other accessory equipment 8 to 35 years Machinery and equipment 2 to 38 years Other equipment 3 to 32 years

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

4.11 Leases

2019

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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2018

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

(1) The Company as lessor

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

(2) The Company as lessee

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

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 recognised 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 recognised as interest expense. Provisions are not recognised for future operating losses.

4.15 Employee benefits

Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the

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benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

Pensions

(1) Defined contribution plans

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

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

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

Termination benefits

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

4.16 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.

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4.17 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
(2) The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
(3) Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the 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 realised or the deferred tax liability is settled.
(4) Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.
(5) Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.
(6) A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

4.18 Revenue Recognition

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

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(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 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 transfered, in which case it is not recognized as revenue.

(2) Service revenue
Service revenue is recognized when the service is rendered. Revenue from service rendered in accordance with contracts is recognized in proportion to the completion of a contract.
(3) Revenue from construction contracts
A real estate contract is a construction contract under which the real estate units have been controlled by customers in the process of construction, in which case the 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 Companys 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.

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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 capitalisation as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

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

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

In the preparation of the 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 (applied to 2019)

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.

－24－

The lease period is reassessed when significant events or major changes occur within the control of the Company.

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, please refer to Note 6.4 for major assumption and input adopted. 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 moniter if the measurement of fair value is appropriate. Please refer to Note 12(3) for fair value valuation technique and input values.

(3) Impairment assessment of tangible and intangible assets

In the course of impairment assessments, the Company determines, based on how assets are utilised 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 recognised only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilised. The 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

－25－

material adjustments to deferred tax assets.

(6) Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value; thus, the 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

1 Cash and cash equivalents
Item Cash on hand Checking account Demand deposits Time deposits (with original maturities within three months) Total	December 31
	2019 $1,940 152,593 481,017 29,980 $665,530	2018
		$1,940 202,959 91,449 30,715
		$327,063

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

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6.2 Financial assets at fair value through profit or loss

Item Financial assets - current: Non-derivative financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stock Total Financial assets - noncurrent: Non-derivative financial assets mandatorily measured at FVTPL Domestic unlisted preferred stock Financial bonds Total Financial liabilities - current: Derivatives Cross currency swap contracts	December 31	December 31
	2019 $23,461 284,110 $307,571 $210,573 10,004 $220,577 $-	2018
		$45,531 182,429
		$227,960
		$780,781 10,016
		$790,797
		$1,998

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.
3.The Company enters cross currency swaps contracts with banks to hedge exchange rate risk of assets denominated in foreign currencies. However, as the Company does not plan on adopting hedge accounting, those contracts are accounted for as financial instruments at fair value through profit or loss upon initial recognition. Outstanding contracts are as follows:
December 31, 2019：None.

December 31, 2018：

Currency USD(BUY) NTD(SELL)	Contract Period November 21, 2018 to January 31, 2019	Contract Amount (in thousands) 11,000 339,900	Paid Interest Rate Range Received Interest Rate Range
			1.73% 4.186%

6.3 Notes receivable, net

Notes receivable, net
Item At amortized cost Notes receivable Less: Loss allowance Net	December 31
	2019 $4,952 (16) $4,936	2018
		$29,004 (93)
		$28,911

1.The Company had no notes receivable pledged to others.

－－ 27

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
	2019 $1,102,605 (3,547) $1,099,058	2018
		$898,108 (2,882)
		$895,226

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 reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend. which receivables are past due. As the 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.

The Company measures the allowance for notes receivable, and accounts receivable to the preparation matrix (including related parties)：

December 31, 2019 No past due December 31, 2018 No past due	Expected credit loss rate 0%-0.5% Expected credit loss rate 0%-0.5%	Gross carring amout $1,358,892 Gross carring amout $1,639,438	Allowance for doubtful accounts (ECL) ($4,168) Allowance for doubtful accounts (ECL) ($4,842)	Amortized cost
				$1,354,724
				Amortized cost
				$1,634,596

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

Beginning balance Less: Reversal of impairment Ending balance	Year Ended December 31	Year Ended December 31
	2019 $4,842 (674) $4,168	2018
		$6,557 (1,715)
		$4,842

As of December 31, 2019 and 2018, the above provision has already taken into consideration collateral or other credit enhancement. The other credit enhancement (e.g., L/C) possessed by above receivables were $954,434 thousand, and $989,984 thousand, respectively.

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

6.5 Other receivables

Item Business tax refundable Proceeds receivable from disposal of land Guarantee fee receivable Insurance claims receivables Purchase allowance receivable Proceeds rereivable arising from sale of funds Interest receivable Others Total Less: Loss allowance Net	December 31	December 31
	2019 $97,000 48,560 6,805 - 1,537 3,139 349 4,905 $162,295 - $162,295	2018
		$106,500 - 8,061 78,048 10,996 5,097 428 4,473
		$213,603 -
		$213,603

1.This is the insurance claims receivable, among which are the insurance claims for estimated loss incurred from fire. Please refer to Note 10 for details.

Please refer to Note 7.3.5 for related party transactions.

－－ 29

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 Less: Valuation allowance Net Heavy Industry Department： Raw materials Supplies Subtotal Less: Valuation allowance Net Total	December 31
	2019 $1,444,900 17,492 510,236 1,191,650 71,961 $3,236,239 (160,193) $3,076,046 $233,532 5,436 $238,968 (1,001) $237,967 $3,314,013	2018
		$1,050,100 16,751 615,762 1,777,684 69,511
		$3,529,808 (15,713)
		$3,514,095
		$265,081 4,901
		$269,982 (173)
		$269,809
		$3,783,904

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

Item Cost of inventories sold Construction cost Processing cost Unallocated manufacturing overhead Inventory valuation loss and obsolescence loss (recovery gain) Purchase and construction contract loss (recovery gain) Total operating cost	Year Ended December 31	Year Ended December 31
	2019 $22,340,173 1,554,784 138,201 128,101 (1,410) 145,308 $24,305,157	2018
		$26,204,357 1,197,632 127,625 49,531 (5,929) 14,342
		$27,587,558

2.The Company recognized inventory valuation loss of $145,308 thousand and $14,342 thousand for the years ended December 31, 2019 and 2018, respectively, due to writing down inventory cost to net realizable value.

The Company had no inventory pledged as collateral.

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6.7 Prepayments

Prepayments
Item Prepaid material purchase Prepaid insurance Prepaid sea freight Prepaid rental Prepaid land usage rights Other prepayments Total	December 31
	2019 $96,317 38,751 21,694 1,317 - 17,262 $175,341	2018
		$167,311 37,170 48,187 3,843 2,906 18,811
		$278,228

Please refer to Note 7.3.7. for prepayments with related parties

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

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

1.As stated in Note 6.29 and Note 9.10, on November 8, 2018, the Company entered into a contract to sell Land No. 0001-0002, Pingbei Section, Jiadong Township, Pingtung County, Land No. 0001-0027, Pingnan Section, Fangliao Township, Pingtung County, and Building No. 25, Pingnan Section, Fangliao Township, Pingtung County. The total contract price is $625 million (tax included). In May 2019, the ownership transfer was completed in accordance with the scheduled payment terms as stipulated in the contracts. In addition, In November 2019, the Company entered into a contract to sell part of Land No.0026 in Pingbei Section, Jiadong Township, Pingtung County. The total contract price is $76,344 thousand, and the disposal is expected to be completed within 12 months. As of December 31, 2019, $7,630 thousand have been collected.
2.Please refer to Note 8 for the information of noncurrent assets held for sale pledged as collateral.

－31－

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

Financial assets at fair value through noncurrent	other comprehensive income or loss -	other comprehensive income or loss -
Item Equity instruments： Domestic listed stocks Domestic unlisted stocks Subtotal Valuation adjustment Total	December 31
	2019 $45,000 558,040 $603,040 101,365 $704,405	2018
		$45,000 547,274
		$592,274 117,819
		$710,093

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, 2019 and 2018, 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 Champion Logistic Inc. 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	December 31	December 31
	2019 $8,390,606 412,991 1,207,867 1,080,043 1,587,809 1,453,417 2,036,058 2,954,601 $19,123,392 $3,193,845 2,666,548 1,221,462 1,196,618 1,666,137 $9,944,610	2018
		$9,263,962 1,165,429 1,559,024 1,137,467 1,671,139 1,168,965 1,399,854 3,069,057
		$20,434,897
		$3,988,269 2,715,880 1,214,180 1,056,934 1,657,979
		$10,633,242

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Prepaid investment: Great Emperor Hotel Co., Ltd. Total

$133,597 $29,201,599	$-
	$31,068,139

1.Subsidiaries:

(1) For information of the Company’s subsidiaries, please refer to Note 4.3 of the Company’s Year 2019 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 are calculated based on audited financial statements, except for those of Good Honor Holdings Ltd. and Worthing Honor Holdings Ltd. However, management of the Company considers no material adjustment if the financial statements of afore-mentioned subsidiaries had been audited.
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 31,2019 25.62% 32.84% 11.30% 28.44%	December 31,2018
		25.19% 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	Yieh United	Steel Corp.
	December 31, 2019 $8,343,346 36,320,870 23,899,830 8,107,714 $12,656,672 $3,254,607 (60,762) $3,193,845	December 31, 2018
		$9,676,986 38,151,425 20,586,663 11,203,793
		$16,037,955
		$4,039,682 (51,413)
		$3,988,269

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Eliter International Corp.

	Eliter International Corp.	tional Corp.
Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized gain (loss) from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate	December 31, 2019 December 31, 2018 $6,971,622 $6,938,640 5,195,803 5,001,312 1,603,831 1,228,879 2,299,960 2,297,166 $8,263,634 $8,413,907 $2,714,066 $2,763,421 (47,518) (47,541) $2,666,548 $2,715,880 TangengIron Works Co., Ltd.	December 31, 2018
		$6,938,640 5,001,312 1,228,879 2,297,166
		$8,413,907
		$2,763,421 (47,541)
		$2,715,880
	December 31, 2019 December 31, 2018 $4,274,280 $4,679,858 23,749,927 23,551,048 3,638,556 4,594,916 11,244,913 10,559,687 $13,140,738 $13,076,303 $1,221,462 $1,214,180 - - $1,221,462 $1,214,180 E-Da Development Corp.	December 31, 2018
		$4,679,858 23,551,048 4,594,916 10,559,687
		$13,076,303
		$1,214,180 -
		$1,214,180
	December 31,2019 $867,776 8,123,713 1,021,390 3,735,304 $4,234,795 $1,204,471 (7,853) $1,196,618	December 31,2018
		$599,659 8,427,286 2,350,696 2,931,887
		$3,744,362
		$1,064,981 (8,047)
		$1,056,934

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B.Statements of Comprehensive Income

B.Statements of Comprehensive Income
Operating revenue Net loss Other comprehensive income (loss) (net after tax) Total comprehensive loss Dividends received from associate Operating revenue Net loss Other comprehensive income (loss) (net after tax) Total comprehensive loss Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net loss Other comprehensive income (loss) (net after tax) Total comprehensive loss Dividends received from associate	Yieh United	Steel Corp.
	2019 2018 $35,843,299 $42,713,976 ($3,046,907) ($1,517,499) (325,289) 170,755 ($3,372,196) ($1,346,744) $- $- Eliter International Corp. 2019 2018 $229,538 $427,657 ($144,372) ($149,541) (5,901) 1,086 ($150,273) ($148,455) $- $- TangengIron Works Co., Ltd. 2019 2018 $12,350,956 $14,879,535 $14,953 ($1,441,675) 49,483 24,697 $64,436 ($1,416,978) $ - $ - E-Da Development Corp. 2019 2018 $795,002 $845,419 ($294,609) ($261,012) (14,958) 718 ($309,567) ($260,294) $ - $ -	2018
		$42,713,976
		($1,517,499) 170,755
		($1,346,744)
		$-
	2019 $795,002 ($294,609) (14,958) ($309,567) $ -

－35－

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

as follows:
Share of: Net income Other comprehensive income (loss) (net after tax) Total comprehensive income (loss)	Year Ended December 31
	2019 2018 $23,068 $41,908 (39,810) 34,860 ($16,742) $76,768

(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
	2019 $2,797,426 1,696,824 $4,494,250	2018
		$3,196,587 1,819,438
		$5,016,025

(Note): The fair value information above does not include shares acquired in private placement, which are not allowed to be transferred freely in open markets.
(5) For 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 subsidairies, or being a director in such entities. Consequently, those entities are accounted for using equity method.
(6) 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.
(7) 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.
(8) 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.
(9) As of December 31, 2019 and 2018, no investments under equity method were pledged as collateral by the Company.

－36－

6.11 Property, Plant and Equipment

Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment
Item			Machinery
				2019
				$1,507,283 3,619,138 12,805,210 1,042,585 435,118
				$19,409,334 (11,799,308) (223,116)
				$7,386,910
				Otherequipment	Equipment to be inspected and construction in progress
	$1,506,714 569 - -	$3,685,177 5,255 (81,188) 9,894	$12,806,994 47,696 (75,982) 26,502	$1,151,102 9,017 (151,496) 33,962	$289,490 215,986 - (70,358)	$19,439,477 278,523 (308,666) -
	$1,507,283	$3,619,138	$12,805,210	$1,042,585	$435,118	$19,409,334
	$ - - -	$2,057,363 108,199 (79,502)	$8,642,254 366,581 (60,666)	$860,012 54,413 (149,346)	$223,116 - -	$11,782,745 529,193 (289,514)

Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$1,506,714 - - -	$3,679,410 4,206 (4,171) 5,732	$13,497,416 65,305 (784,278) 28,551	$1,174,019 17,612 (109,588) 69,059	$262,042 130,790 - (103,342)	$20,119,601 217,913 (898,037) -
Balance, January 1, 2018 Additions Disposals Reclassifications Balance, December 31, 2018
	$1,506,714	$3,685,177	$12,806,994	$1,151,102	$289,490	$19,439,477

－－ 37

Accumulated depreciation andimpairment	$ - - - -	$1,950,521 111,836 (3,618) (1,376)	$8,950,220 364,962 (672,218) (710) $8,642,254	$889,026 78,523 (107,537) -	$223,116 - - -	$12,012,883 555,321 (783,373) (2,086)
Balance, January 1, 2018 Depreciation Disposals Repair expenses offset against accumulated impairment Balance, December 31, 2018
	$ -	$2,057,363		$860,012	$223,116	$11,782,745

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

Item Increase in property, plant and equipment Repair payment on wind disasters Increase/decrease in payables for purchase of equipment Cash paid for acquisition of property, plants and equipment	Year Ended December 31	Year Ended December 31
	2019 $278,523 - 9,365 $287,888	2018
		$217,913 2,086 11,796
		$231,795

2.Please refer to Note 6.30 for details of the amount of capitalized borrowing costs.
3.Impairment losses for property, plant and equipment recognized for 2019 and 2018 were both $0 thousand.
4.The accumulated impairment losses, which were provided for painting equipment and other equipment in Pingnan plant due to the termination of expansion of such plant, were both $223,116 thousand as of December 31, 2019 and 2018.
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 2019 and 2018 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 - 2019

Lease Agreement . Right-of-use asset - 2019
Item Land Buildings Total cost Less: Accumulated depreciation Accumulated impairment Net	December 31,2019
	$291,555 26,630
	$318,185 (14,792) -
	$303,393

－38－

Cost Balance at January 1, 2019 Adjustment on initial application of IFRS 16 Additions Balance at December 31, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation expense Balance at December 31, 2019	Land $ - 288,959 2,596 $291,555 $ - 10,531 $10,531	Buildings $ - 26,630 - $26,630 $ - 4,261 $4,261	Total
			$ - 315,589 2,596
			$318,185
			$ - 14,792
			$14,792

B. Lease liabilities - 2019

. Lease liabilities - 2019
Item Carrying amount of lease liabilities - current - noncurrent	December 31,2019
	$9,639
	$209,141

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 2 to 32 years. Part of the lease may be extended with its duration and is calculated based on the area of the land leased and the rate based on the announced land value of the current year. In accordance with the contract, without the lessor’s consent, the 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, 2019.

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

Short-term lease expense Gross cash outflow (Note)	Year Ended December 31, 2019
	$14,015
	$24,589

(Note): Including principle paid for lease liability for 2019.

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

(2) The Company rented the land under non-cancellable operating lease agreement in 2018, with the lease term from Year 1996 to 2050. The Company recognized rental expenses of $28,161 thousand for 2018. The future aggregate minimum lease payments under non-cancellable operating leases are as follow:

Item Within 1 year 1 to 5 years More than 5 years Total	December 31,2018 $21,206 80,122 289,081 $390,409

－－ 39

6.13 Investment properties

	Item	Item	December 31	December 31	2018 $1,078,509 36,988 $1,115,497 Total

	Land Construction in progress Total cost Cost


				$36,988 13,930 (8,894) (1,470)	$1,115,497 13,930 (141,746) (23,342)
				$40,554	$964,339
				Construction in progress
		$1,269,017 - - (190,508)	$26,604 - - (26,604)	45,789 2,454 (186) (11,069)
Balance, January 1, 2018 Additions Transferred to expenses Transferred to noncurrent assests held for sale Balance, December 31, 2018 Accumulated depreciation and impairment
		$1,078,509	$ -	$36,988
		$ - - -	$9,310 775 (10,085)	- - -
		$ -	$ -	$ -

－40－

2.As of December 31, 2019 and 2018, the fair values of investment properties held by the Company were $2,336,794 thousand and $2,385,737 thousand, respectively, which were based on evaluation appraised by independent appraisers as of December, 2019 and December, 2017. 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

Item Deposit for dumping margins Customs duty guarantee Rent deposits Others Total	December 31 2019 2018 $851,218 $1,291,745 284,810 - 3,345 3,342 17 17 $1,139,390 $1,295,104
	2019 $851,218 284,810 3,345 17 $1,139,390

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

6.15 Long-term prepaid rent

December 31 , 2019:None.

Item Long-term prepaid rent Less: Transfer to within 1 year Total	December 31,2018
	$86,503 (2,906)
	$83,597

6.16 Short-term Loans

Short-term Loans
Type of Loan Credit for material purchase Credit loans Total	December 31,2019
	Amount $4,919,122 3,217,000 $8,136,122	Interest Rate
		1.54%-3.98% 1.34%-2.17%

－41－

December 31, 2018

	December	31,2018
Type of Loan	Amount	Interest Rate
Credit for material purchase	$3,935,517	1.54%-2.03%
Credit loans	3,692,865	1.33%-4.19%
Total	$7,628,382

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

6.17 Short-term notes and bills payable

December 31	December 31	December 31
2019 2018 $600,000 $500,000 (1,160) (528) $598,840 $499,472 1.70%-1.80% 1.63%-1.80% December 31	2018
	$500,000 (528)
	$499,472
	1.63%-1.80%
2019 $156,283 64,873 33,781 22,996 19,262 16,216 4,365 8,266 3,107 951 - 579 71,098 $401,777		2018
		$253,613 34,814 31,891 22,956 22,222 16,975 13,730 8,050 6,759 1,733 869 3,350 57,580
		$474,542

6.18 Other Payables

Please refer to Note 7.3.6 for related party transactions

－42－

6.19 Provisions - current

Provisions - current
Item	Employee benefits $48,711 49,813 (48,711) $49,813 Employee benefits $47,235 - $47,235 48,711 (47,235) $48,711	December 31 2019 2018 $49,813 $48,711 1,006 2,416 - 16,831 $50,819 $67,958 Onerous contract Others Total $2,416 $ 16,831 $67,958 - - 49,813 (1,410) (16,831) (66,952) $1,006 $ - $50,819 Onerous contract Others Total $ - $20,655 $67,890 8,345 - 8,345 $8,345 $20,655 $76,235 - 16,831 65,542 (5,929) (20,655) (73,819) $2,416 $16,831 $67,958
		2019 $49,813 1,006 - $50,819 Onerous contract $2,416 - (1,410) $1,006 Onerous contract $ - 8,345 $8,345 - (5,929) $2,416


		Onerous contract $2,416 - (1,410) $1,006 Onerous contract $ - 8,345 $8,345 - (5,929) $2,416	Others $ 16,831 - (16,831) $ - Others $20,655 - $20,655 16,831 (20,655) $16,831
				$67,958 49,813 (66,952)
				$50,819
				Total
				$67,890 8,345
				$76,235 65,542 (73,819)
				$67,958

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

2.Provision for onerous contracts covers the expected loss of construction contract.

6.20 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 2019 2018 $8,275,000 $8,500,000 1,509,380 2,310,520 188,667 430,000 $9,973,047 $11,240,520 (17,442) (22,942) (1,636,335) (1,000,945) $8,319,270 $10,216,633 1.82%-2.25% 1.82%-2.25%
	2019 $8,275,000 1,509,380 188,667 $9,973,047 (17,442) (1,636,335) $8,319,270 1.82%-2.25%

－43－

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. Since the Company failed to meet certain financial ratios in 2019, it needed to pay to the managing bank a compensation at 0.15% of the loan balance within agreed time. However, this is not seen as a breach of contract.

6.21 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 $50,228 thousand and $47,787 thousand for the years ended December 31, 2019 and 2018, respectively
2.Defined benefit plans
(1)The pension plan under the Labor Standards Law, which is applicable to the 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 contributes monthly an amount equal to 10% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee. Before the end of year, if the balance at the retirement fund is not sufficient to cover all employees retiring next year, a lump-sum deposit should be made before March-end of the following year to cover the difference. The retirement fund is managed by the Bureau of Labor Funds, Ministry of Labor. The 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

Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability	December 31	December 31
	2019 $1,338,657 (834,654) $504,003	2018
		$1,370,595 (758,436)
		$612,159

－44－

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

Year Ended December 31, 2019

Present value of defined benefit obligations Fair value of planned assets $1,370,595 ($758,436) 6,073 - (395) - 10,133 (5,779) $15,811 ($5,779) $ - ($28,303) 203 - 6,306 - (33,280) - ($26,771) ($28,303) - (63,114) (20,978) 20,978 $1,338,657 ($834,654) Year Ended December 31,	Present value of defined benefit obligations Fair value of planned assets $1,370,595 ($758,436) 6,073 - (395) - 10,133 (5,779) $15,811 ($5,779) $ - ($28,303) 203 - 6,306 - (33,280) - ($26,771) ($28,303) - (63,114) (20,978) 20,978 $1,338,657 ($834,654) Year Ended December 31,	Net defined benefit liability
		$612,159 6,073 - 4,354
		$10,032
		($28,303) 203 6,306 (33,280)
		($55,074)
		(63,114) -
		$504,003
		2018
Present value of defined benefit obligations $1,358,578 7,444 13,358 $20,802	Fair value of planned assets ($711,128) - (7,202) ($7,202)	Net defined benefit liability
		$647,450 7,444 6,156
		$13,600

－45－

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	$ - (308) 33,973 3,295 $36,960 - (45,745) $1,370,595	($21,300) - - - ($21,300) (64,551) 45,745 ($758,436)	($21,300) (308) 33,973 3,295
			$15,660
			(64,551) -
			$612,159

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

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

－46－

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

follows:
Item Discount rate Increase by 0.25% Decrease by 0.25% Expected growth rate of salaries Increase by 0.25% Decrease by 0.25%	December 31
	2019 ($31,096) $32,185 $31,689 ($30,780)	2018
		($33,961)
		$35,211
		$34,685
		($33,633)

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 $61,409 thousand to the pension plans for the year ended December 31, 2020.

6.22 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 Capitalization of earnings December 31 Item January 1 Capitalization of earnings December 31	Year Ended December31,2019	Year Ended December31,2019
	Shares (thousand shares) Amount 1,875,811 $18,758,113 37,516 375,162 1,913,327 $19,133,275 Year Ended December31,2018	Amount
		$18,758,113 375,162
		$19,133,275
	Shares (thousand shares) 1,821,176 54,635 1,875,811	Amount
		$18,211,760 546,353
		$18,758,113

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

－－ 47

6.23 Capital Surplus

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

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

6.24 Retained Earnings

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

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

－48－

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

the reserves in excess of the paid-in capital. 3.Special reserve
	December 31
Item	2019	2018
Provision for debit balance of other equity	$231,475	$308,898
Provision upon initial application of IAS	327,757	327,757
Total	$559,232	$636,655

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

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

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

－－ 49

6.25 Other Equity Items

	6.25 Other Equity Items	6.25 Other Equity Items
	Item		Exchange differences on translation of foreign financial statements		Unrealized gain (loss) on financial asset at fair ralue through other comprehensive income		Gain (loss) on hedging instruments		Total ($559,232) (16,454) (402,485) ($978,171) Total
			($723,803) - (366,243)			$157,892 (16,454) (35,901)		$6,679 - (341)
			($1,090,046)			$105,537		$6,338
Balance as at January 1, 2018 (IAS 39) Effect of adjustments made by retrospective application of IFRS 9 Balance as at January 1, 2018 (IFRS 9) Unrealized gain (loss) on financial asset at fair ralue through other comprehensive income Share of associates and joint ventures accounted for using equity method Disposal of unrealized gain (loss) on financial assets at fair value through other comprehensive income Balance, December 31, 2018		($697,778) -		$54,733 (54,733)		$ - 123,526		$6,390 -	($636,655) 68,793
		($697,778) - (26,025) -		$ - - - -		$123,526 5,410 29,676 (720)		$6,390 - 289 -	($567,862) 5,410 3,940 (720)
		($723,803)		$ -		$157,892		$6,679	($559,232)

－50－

6.26 Operating Revenue

				Year Ended December 31	Year Ended December 31	Year Ended December 31
		Item		2019		2018
	Revenue from contracts with customers
	Sales revenue			$23,307,579		$28,839,080
	Construction revenue			1,646,688		1,254,071
	Processing revenue			119,464		114,969
	Realized (unrealized) profits from sales			(29,986)		(9,064)
	Total sales revenue from customers		contracts with	$25,043,745		$30,199,056
	Less: Sales return				-	(12,940)
	Sales discount			(72,731)		(159,792)
	Net operating revenue			$24,971,014		$30,026,324
	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:
	(1)Segmented by	revenue from different		types of goods and services:
	2019：
		Steel coils and		Construction
			steel pipes	revenue	Others	Total
External customer
Contract revenue			$23,234,848	$1,616,702	$119,464	$24,971,014
Timing	of revenue recognition
Revenue recognized at a specific timing			$23,234,848	$ -	$119,464	$23,354,312
Revenue recognized over		time	-	1,616,702	-	1,616,702
Total			$23,234,848	$1,616,702	$119,464	$24,971,014
	2018：
			Steel coils and	Construction
			steel pipes	revenue	Others	Total
External customer
Contract revenue			$28,666,348	$1,245,007	$114,969	$30,026,324
Timing	of revenue recognition
Revenue recognized at a specific timing			$28,666,348	$ -	$114,969	$28,781,317
Revenue recognized over		time	-	1,245,007	-	1,245,007
Total			$28,666,348	$1,245,007	$114,969	$30,026,324

－51－

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

Contract Balance
Item Notes receivable and accounts receivable Contract assets - current Steel structure construction and overhead cranes Contract liabilities - current Unearned sales revenue Advance construction receipts Total	December 31
	2019 $1,354,724 $740,413 $385,452 115,493 $500,945	2018 $1,634,596 $535,243 $686,125 140,706 $826,831

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

when customers make payments. Allowance for contract assets:
Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net	December 31
	2019 0%-0.5% $742,802 (2,389) $740,413	2018
		0%-0.5%
		$536,958 (1,715)
		$535,243

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 Group believes that the expected credit loss rate of accounts receivable can also be applied to contracts. Changes in allowance losses on contract assets are as follows:

follows:
Beginning balance Add: Provision for impairment Ending balance	Year Ended December 31
	2019 $1,715 674 $2,389	2018
		$- $1,715
		$1,715

(3)Contract liabilities recognized for the years ended December 31, 2019 and 2018 under operating revenue amounted to $686,125 thousand and $1,275,342 thousand.

－52－

Year Ended December 31, 2019

6.27 Employee benefits, depreciation and amortization expense

Nature Employee benefits Salary Insurance Pension (Note 1) Remuneration to directors Other employee benefits Depreciation Total	OperatingCost $624,630 73,915 41,417 - 128,165 513,440 $1,381,567	OperatingExpense $304,046 31,682 18,327 6,111 35,713 30,545 $426,424	Total
			$928,676 105,597 59,744 6,111 163,878 543,985
			$1,807,991

Year Ended December 31, 2018	Year Ended December 31, 2018	Year Ended December 31, 2018
OperatingCost $684,828 69,799 42,041 - 135,225 517,553 $1,449,446	OperatingExpense $344,362 30,401 19,016 6,951 39,323 37,768 $477,821	Total
		$1,029,190 100,200 61,057 6,951 174,548 555,321
		$1,927,267

(Note 1) Excluding pension of $516 thousand listed as equipment prepayments. (Note 2) Excluding pension of $330 thousand listed as equipment prepayments. (Note 3) Excluding depreciation of $775 thousand listed as other gains and losses.

1.Additional information for numer of employees and employees’ benefit expense in 2019 and 2018 is as below:
(1) The numeber of employees in 2019 and 2018 were 1,420 and 1,413, respectively; the number of non-employee directors were both 4.
2.Additional information for the Company's employee welfare expenses in 2019 and 2018 are as follows:
(1) The Company’s average employee benefit expenses in 2019 and 2018 were $893 thousand and $973 thousand, respectively.
(2) The Company’s average wages and salaries for the current year and the previous year were $656 thousand and $730 thousand, respectively.
(3) Arerage wages and salaries decreased by 10.14%.

－53－

3.According to Articles of Incorporation, compensation to employees and remuneration to directors shall neither be less than 0.2 % nor greater than 0.1% of the net income before tax and before which the compensation to employees and remuneration to directors are deducted from. Due to the accumulated loss of the Company for 2019, the estimated amount of the above compensation and remuneration were both $0 thousand. Compensation to employees and remuneration to directors for 2018 was distributed at 0.2% and 0.1% of the net income before tax. Any changes in the amounts, if any, after the annual financial statements were authorized for issue, shall be recorded as a change in accounting estimate, and should be adjusted the next year.
4.Compensation to employees and remuneration to directors for the years ended December 31, 2019 and 2018 has been resolved and approved by the Board of Directors in March 2020 and 2019. Relevant amounts recognized in the financial statements are as follows:

Year Ended December 31

2019 Employees’ Compensation Directors’ Remuneration $ - $ - - - $ - $ -	2018	2018
Employees’ Compensation $ - - $ -	Employees’ Compensation $579 579 $ -	Directors’ Remuneration
		$145 290
		($145)

(1)The above-mentioned employee compensation was distributed in cash.
(2)The differences between the amount resolved for 2018 and the amount recognized in financial statements are mainly estimate difference and has been adjusted in profit or loss for 2019.
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 Other Income

Other Income
Item Interest income Interest from bank deposits Interest from loans to others Others Subtotal	Year Ended December 31
	2019 $7,693 - 3,106 $10,799	2018
		$7,131 10,490 3,177
		$20,798

－54－

Rent income Dividend income Other income Dumping margins (Note) Income form insurance claim of fire Income from sales of scraps Guaranteed fee income Others Subtotal Total	14,975 105,987 246,943 71,952 34,828 31,245 20,242 $405,210 $536,971	14,975 33,688 929,959 - 33,319 31,705 24,362
		$1,019,345
		$1,088,806

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

2.For information on insurance claim of fire, please refer to Note 10.

6.29 Other gains and losses

Item Gain (loss) on disposal of financial assets at fair value through profit and loss Gain (loss) on disposal of investments under equity method Valuation gain (loss) of financial assets and financial liabilities 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 proverties Gain on disposal of noncurrent assets held for sale (Note) Insurance claims income Others Total	Year Ended December 31	Year Ended December 31
	2019 ($568) 20 (8,088) (33,204) (19,102) 341,433 401,121 - (10,259) $671,353	2018
		($454) 37,520 21,908 121,810 (114,664) - - 78,048 (15,198)
		$128,970

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

－55－

6.30 Finance Costs

Finance Costs
	Year Ended	December 31
Item	2019	2018
Interest expense:
Interest on loans	$427,099	$444,540
Interest on lease liabilities	3,843	-
Subtotal	$430,942	$444,540
Less: Amount qualified for capitalization	(820)	(1,795)
Finance costs	$430,122	$442,745

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

Year Ended December 31	Year Ended December 31	Year Ended December 31
	2018
	$189,083 - -
	$189,083
	($216,667) 7,989
	($208,678)
	($19,595)
2019		2018
($72,875) - 11,015 -		($1,554) 13,569 (3,131) (32,658)
($61,860)		($23,774)

－56－

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 Realized (unrealized) investment loss Non-levied securities and futures trading income (loss) Gain (loss) on sale of land exempt from income tax Other adjustments Loss carryforwards 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
	2019 ($1,740,328) ($348,066) 389,255 29,062 (1,778) (12,265) 130 (148,608) 45,232 47,038 124 25,741 (365,112) ($339,247)	2018
		$288,911
		$57,782 272,442 1,682 (26,587) (59,913) (31,535) - (24,788) - - - (208,678)
		($19,595)

The corpoate income tax rate was increased from 17% to 20% starting from 2018. In addition, the tax rate applicable to unappropriated earnings was reduced from 10% to 5%.

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

	Year Ended December 31,2019	Year Ended December 31,2019
Beginning balance $ - 155,867 3,177 44,623 3,366 18,881 9,742 122,431 4,755 - 26,226 - $389,068	Recognized in profit or loss $ 273,241 - 29,062 - (1,327) 352 221 (10,615) (1,778) 6,824 5,269 47,038 $348,287	Recognized in other comprehensive income $ - 72,875 - - - - - (11,015) - - - - $61,860	Ending 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

－－ 57

Deferred income tax liabilities: Temporary differences Unrealized exchange gains Investment income (loss) recognized under equity method Subtotal Total Item Beginning balance Deferred income tax assets: Temporary differences Exchange differences on translation of foreign financial statements $131,167 Provision for inventory valuation loss 1,681 Impairment loss from property, plant and equipment 38,308 Provision for sales return & discount 3,511 Booking difference for depreciation 13,438 Compensation to unused annual leave 8,030 Net defined benefit liability 110,067 Remeasurement of defined benefit plans 11,533 Timing differences in recognition of cost and sales revenue 26,640 Unrealized exchange losses 1,844 Others 20,717 Subtotal $366,936 Deferred income tax liabilities: Temporary differences Unrealized exchange gains $ - Investment income (loss) recognized under equity method (227,145) Subtotal ($227,145) Total $139,791	$ (56) $56 $ - (16,769) 16,769 - ($16,825) $16,825 $- $372,243 $365,112 $61,860 Year Ended December 31, 2018	$ (56) $56 $ - (16,769) 16,769 - ($16,825) $16,825 $- $372,243 $365,112 $61,860 Year Ended December 31, 2018	$ (56) $56 $ - (16,769) 16,769 - ($16,825) $16,825 $- $372,243 $365,112 $61,860 Year Ended December 31, 2018	$ - - $- $799,215



Beginning balance	Recognized in profit or loss $ - 1,682 (445) (765) 3,071 295 (10,190) - (26,586) (2,170) 1,370 ($33,738) ($56) 250,461 $250,405 $216,667	Recognized in other comprehensive income $1,554 - - - - - 3,131 (13,569) - - - ($8,884) $ - - $ - ($8,884)	Effect of tax rate changes	Ending balance
			$23,146 297 6,760 620 2,372 1,417 19,423 2,036 4,701 326 3,656	$155,867 3,660 44,623 3,366 18,881 9,742 122,431 - 4,755 - 25,743
			$64,754	$389,068
			$ - (40,085)	($56) (16,769)
			($40,085)	($16,825)
			$24,669	$372,243

－58－

4.Items not recognized as deferred income tax assets:

Item 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
	2019 $500,338 48,499 35,016 19,287 $603,140	2018
		$391,415 48,499 20,067 25,441
		$485,422

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

6.32 Other Comprehensive Income

6.32 Other Comprehensive Income
	Year	Ended December	31,	2019
		Income tax expense
Item	Before tax	(benefit)		After tax
Items that will not be reclassified
subsequently to profit or loss：
Remeasurement of defined benefit plans	$55,074	($11,015)		$44,059
Unrealized gain (loss) on financial assets at	(16,454)		-	(16,454)
fair value through other comprehensive
income
Share of subsidiaries, associates and joint
ventures accounted for using equity method:
Remeasurement of defined benefit plans	30,770		-	30,770
Unrealized valuation gain (loss) on	(35,901)		-	(35,901)
financial assets at fair value through other
comprehensive income
Subtotal	$33,489	($11,015)		$22,474
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	(439,118)	72,875		(366,243)
foreign financial statements
Gains (loss) on hedging instruments	(341)		-	(341)
Subtotal	($439,459)	$72,875		($366,584)
Recognized in other comprehensive income	($405,970)	$61,860		($344,110)

－－ 59

Year Ended December 31, 2018	Year Ended December 31, 2018	Year Ended December 31, 2018
Income tax expense (benefit) Aftertax $10,608 ($5,052) - 5,410 (11,534) (19,755) - 29,676 ($926) $10,279 24,700 (26,025) - 289 $24,700 ($25,736) $23,774 ($15,457) Year Ended December 31		Aftertax
		($5,052) 5,410 (19,755) 29,676
		$10,279
		(26,025) 289
		($25,736)
		($15,457)
2019 ($1,401,081) 1,913,327 1,913,327 ($0.73)	2018
	$308,506 1,875,811 1,913,327
	$0.16

－60－

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

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

－61－

Names of related parties Related party category Yieh United Steel Corp. Associate Yieh Mau Corp. Associate Synn Industrial Co., Ltd. Associate (all shares were disposed of in May 2018) Asiazone Co., Ltd. Associate Cheng Shin Security Co., Ltd. Associate Eliter International Corp. Associate UniPattern Corporation Associate E-Da Bus Co., Ltd. Associate E-DA Tour Bus Co., Ltd. Associate E-Da Development Co., Ltd Associate E United Japan Co., Ltd. Associate E-Da Visual Effects Company Limited. Associate Yieh Hong Enterprise Co., Ltd. Other related party Yieh Corporation Limited Other related party LI-SIN Business Co., Ltd. Other related party Skylark International Hotel Co., Ltd. Other related party Pacific Harbor Stevedoring Corporation Other related party Royal Palace Hong Kong Style Restaurant Other related party Co., Ltd. I-Hsiang-Le International Co., Ltd. Other related party New Spring Construction Corp. Other related party Chiao-Ling Leisure Co., Ltd. Other related party 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

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
		2019 $1,196,381 1,649,934 1,332,992 $4,179,307 $1,933 5,053 969,047 $976,033	2018
			$1,223,072 1,919,527 1,559,171
			$4,701,770
			$246 2,740 224,153
			$227,139

(a)Selling price to the Company's related parties, including hot rolled steel coils, galvanized steel coils, scraps (bars), etc. and trading terms are the same with those to other customers. Payment periods were within one to two months.

－62－

(b)Selling price of carbon steel and steel scraps to related parties are set with reference to the purchase price of a non-related party as a trading counterparty. Payment term is monthly, and closes in 15 days.
(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 collection clauses stated in these contracts. Unless agreed on by both parties, payments cannot be delayed.

2.Purchases

Purchases
Related party category/Name Subsidiaries Associates Other related party: Yieh Hong Enterprise Co., Ltd. Others Total	Year Ended December 31
	2019 $331,794 208,746 996,124 34,235 $1,570,899	2018
		$30,095 96,960 2,673,899 43,385
		$2,844,339

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

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	Year Ended December 31	Year Ended December 31
		2019 $ - 3,271 518,380 164 $521,815 - $521,815	2018
			$2,457 2,692 35,563 163
			$40,875 -
			$40,875

4.Contract liability

Item Contract liabilities	Related party category/Name Other related party: New Spring construction Corp.	Year Ended December 31	Year Ended December 31
		2019 $84,625	2018
			$59,892

－63－

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

assets )
Item Notes receivable Accounts receivable Other receivables	Related party category/Name Other related parties Associates Total Less: Loss allowance Net Subsidiaries Associates: Asiazone Co., Ltd. Others Other related party: New Spring Construction Corp. Others Total Less: Loss allowance Net Subsidiaries Associates Other related parties Total Less: Loss allowance Net	December 31
		2019 $23 45 $68 - $68 $63,122 169,307 17,006 - 1,900 $251,335 (605) $250,730 $10,305 1,900 570 $12,775 - $12,775	2018
			$1,062 57
			$1,119 -
			$1,119
			$130,276 402,111 14,857 164,519 563
			$712,326 (1,867)
			$710,459
			$10,756 1,744 4,460
			$16,960 -
			$16,960

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

Item Notes payable Accounts payable Other payables	Related party category/Name Other related parties Subsidiary: Shin Yang Steel Co.,Ltd. Other related parties Total Subsidiaries Associates Other related parties Total	December 31	December 31
		2019 $2,506 $333,615 5,901 $339,516 $1,371 35 4,610 $6,016	2018
			$3,213
			$422 6,320
			$6,742
			$1,288 2,329 2,023
			$5,640

－64－

7.Prepayments

Prepayments
Related party category/Name Other related party: Yieh Hong Enterprise Co., Ltd.	December 31
	2019 $24,215	2018
		$92,227

8.Asset transaction

(1)Acquisition of property, plant and equipment:

2019:

019:
Type of related party Subsidiaries Other related parties	Transaction target Equipment prepayment Wall construction and computer equipment	Transaction amount
		$106,015 1,157

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

2018:

018:
Type of related party Other related parties	Transaction target Computer equipment and machinery	Transaction amount
		$5,170

The above-mentioned transaction price was agreed on by both parties upon negotiation with reference to appraisal reports. As of December 31, 2018, the transaction price was fully paid.

(2)Disposal of property, plant and equipment:

2019:

019:
Type of related party Associates	Transaction target Transportation equipment	Transaction amount $50	Gain or loss on disposal
			$42

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

2018:None.

(3)Acquisition of investment properties: 2019:

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

－65－

The above-mentioned transaction price was agreed on by both parties upon negotiation. As of December 31, 2019, the transaction price was fully paid. 2018:None.

(4)Acquisition of other assets:

2019: None. 2018: Type of relatedparty/ Name Subsidiary: Yieh Hsing Enterprise Co., Ltd.	Transaction target 3,000 thousand shares of Kings Garden International Co., Ltd.	Transaction mount $30,900

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

(5)Disposal of other assets: 2019:

(5)Disposal of other assets: 2019:
Type of related party Associates	Transaction target 26 thousand shares of E-Da Cultural Creative Industry Co., Ltd.	Transaction amount $203	Gain or loss on disposal
			$20

2018: None.

9.Lessee agreement:

Lessee agreement:
Accounting Item Acquisition of right-of-use assets Accounting Item Lease liabilities	Related party category Subsidiaries (Note) Related party category Subsidiaries (Note)	December 31, 2019
		$250,757 December 31, 2019
		$165,426

(Note): Recognized by IFRS 16 for right-of-use assets and lease liabilities.

Item Related Party Category Interest expense Subsidiaries Rent expense Associates Other related parties Total	Year Ended December 31, 2019
	$3,311
	$5,466 2,036
	$7,502

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

－66－

10.Loans to related parties:

(1)Other receivables

December 31, 2019: None.

.Loans to related parties: (1)Other receivables December 31, 2019: None.
Type of related party / Name Subsidiaries： Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Total	December 31, 2018
	Endingbalance $ - - $ -	Highest balance
		$500,000 760,000
		$1,260,000

(2)Interest income

(2)Interest income
Type of related party / Name Subsidiaries： Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Total Interest Rate Range	Year Ended December 31, 2018
	$4,138 6,352
	$10,490
	2.50%

11.Endorsements and guarantees:
(1)The Company borrowed for related parties from banks and details of endorsement are as follows:

ements and guarantees: Company borrowed for related rsement are as follows:	parties from banks and details of	parties from banks and details of
Type of related party Subsidiaries	December 31, 2019
	Currency USD CNY NTD	Amount
		147,000 1,487,500 1,236,000

Type of related party Subsidiaries	December 31, 2018	December 31, 2018
	Currency USD CNY NTD	Amount
		147,000 1,487,500 1,536,000

(2)Land provided by subsidiaries as collateral for bank loans amounted to $1,278,230 thousand and $1,842,230 thousnd as of December 31, 2019 and 2018, respectively.

－－ 67

12.Others

(1)Miscellaneous income

thers )Miscellaneous income
Relatedpartycategory/Name Subsidiary： Shin Yang Steel Co., Ltd. Yieh Phui (Hong Kong) Holdings imited Yieh Phui (China) Technomaterial Co., Ltd. Others Associate： Yieh United Steel Corp. Others Other related parties Total	Year Ended December 31
	2019 2018 $10,384 $11,207 11,291 10,736 16,538 16,915 5,115 5,026 20,716 23,612 186 917 530 1,247 $64,760 $69,660

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

(2)Miscellaneous expenses

Miscellaneous expenses
	Year Ended	December 31
Relatedpartycategory	2019	2018
Subsidiaries	$6,261	$10,796
Associates	31,747	40,326
Other related parties	99,035	130,226
Total	$137,043	$181,348

These are mainly technical service, and export cost.

(3)Construction contracts

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

Type of related party/Name Associates Other related party： New Spring Construction Corp. Others	Name of onstruction 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 $8,971 $3,376,861 $3,300	contract assets / liabilities
			$3,271 / $ - $518,380 / $84,625 $164 / $ -

－68－

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

Type of related party/Name Subsidiaries Associates Other related party： New Spring Construction Corp. Other	Name of onstruction Installation of overhead cranes, etc. Renovation of overhead cranes, etc. Ground structures construction for E-Da Asia Commercial Plaza, etc. LED screen construction	Total contract price $3,000 $5,657 $3,430,491 $3,300	contract assets / liabilities
			$2,457 / $ - $2,692 / $ - $35,563 / $56,245 $163 / $ -

13.The subsidiary, Shin Yang Steel Co., Ltd., entered into an agreement with the Company to obtain the right to use the Company’s steel pipe plant for plant expansion. Details of the agreement are as follows:
(1)Lease object: Lands located at Yuliao Rd., Qiaotou Dist and Ding-Yen-Tien Section in Kaohsiung City, with a total area of 13,849 Pings.
(2)Contract period: 10 years from April 1, 2015 to March 31, 2025.
(3)Rental and payment: monthly rental of NT$ 983 thousand collected at the beginning of each month.
(4)Rental income were both $ 11,796 thousand for the years ended December 31, 2019 and 2018.
14.To expand the plants, the Company signed a contract with the subsidiary, Shin Phui Steel Corporation and acquired right of use on the lands. Contract content is as follows:
(1)Lease object: Land No. 163, Sinping section, Pingtung City.
(2)Contract period: 50 years from June 15, 2001 to June 14, 2051.
(3)Rental and payment: monthly rental of $500 thousand closing at the beginning of each month.
(4)Royalty payment method: A lump-sum payment of $120,000 thousand, amortized over 50 years.
(5)As of December 31, 2018, $42,100 thousand has been amortized.
(6)As of December 31, 2018, the current portion of lease payments totaled $2,400 thousand for both respective years and were recognized in prepayments; lease payments for periods beyond 12 months totaled $75,500 thousand, and was recorded under long-term rental prepayments.
(7)Rent expenses was $8,400 thousand for the year ended December 31, 2018. The above lease transactions from January 1, 2019. were recorded as right-of-use assets and lease liabilities according to IFRS 16.

－－ 69

15.Where the Company participated in the cash offering by related parties and consequently increased its investment are disclosed as follows: 2019:

2019:
Investee Subsidiaries： Kuo Chang Enterprise Co., Ltd. Hong Yuh Assets Management Co., Ltd. Great Emperor Hotel Co., Ltd. Corp. Great Emperor Hotel Co., Ltd. Corp. Kings Garden International Co., Ltd. Associates： E-Da Development Crop. E-DA Tour Bus Co., Ltd. E-Da Bus Transportation Co., Ltd.	Investment	Increase Amount $30,702 103,200 298,700 133,597 659,200 227,538 11,400 13,669	Shareholding Percentage
	Shares (thousand shares) 3,070 10,320 29,000 - 64,000 22,754 1,140 1,367		Before Offering 99.04% 80.00% 35.98% 41.18% 39.27% 28.44% 19.00% 17.09%	After Offering
				99.04% 80.00% 41.18% (Note) 49.28% 28.44% 19.00% 17.09%

(Note) Prepaid investment

2018:

2018:
Investee Subsidiaries： Lian So (H.K) Co., Limited Yieh Phui America Inc. Hong Yuh Assets Management Co., Ltd. Great Emperor Hotel Co., Ltd. Corp. Kings Garden International Co., Ltd. Associates： Eliter International Corp. E-Da Development Co., Ltd.	Investment	Increase Amount $196,232 292 296,000 1,215,400 1,431,700 197,061 284,423	Shareholding Percentage
	Shares (thousand shares) 6,400 10 29,600 118,000 139,000 19,706 28,442		Before Offering 80.00% - 80.00% - - (Note ) (Note )	After Offering
				80.00% 100.00% 80.00% 35.98% 39.27% (Note ) (Note )

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

16.The Company entrusted the subsidiary, Yieh Phui America Inc., to sell the prepainted and galvanized steel coils amounted to $2,973,461 thousand and $3,797,035 thousand, respectively. Due to the above transactions, the contract liabilities were $286,719 thousand and $589,076 thousand as of December 31, 2019 and 2018, respectively.

－－ 70

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
	2019 2018 $28,514 $38,857 560 461 - - - - - - $29,074 $39,318

8.PLEDGED ASSETS

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

Item Pledged demand deposits Pledged time deposits Subtotal of other financial assets - current Pledged demand deposits Pledged time deposits Sub-total of other financial assets - noncurrent Property, plant and equipment (net) Noncurrent assests held for sale Investment properties Total	December 31	December 31
	2019 $55,236 - $55,236 $46,055 114,083 $160,138 $6,857,942 23,342 923,785 $8,020,443	2018
		$55,196 230,363
		$285,559
		$46,018 857
		$46,875
		$7,135,535 207,097 1,078,509
		$8,753,575

9.SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED

CONTRACT COMMITMENTS

(1)Guarantee notes issued to banks by the Company for loans and purchases performance totaled $26,791,984 thousand and $26,894,086 thousand of as December 31, 2019 and 2018, respectively.

(2) Guarantee notes received by the Company for its contract performance and creditor’s right totaled $179,826 thousand and $399,110 thousand as of December 31, 2019 and 2018, respectively.

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

December 31,2019 L/C Amount SecurityDeposit NTD 436,680 - USD 3,360 - JPY 4,679 -	December 31,2018	December 31,2018
L/C Amount NTD 436,680 USD 3,360 JPY 4,679	L/C Amount NTD 731,700 USD 16,538 JPY 13,180	SecurityDeposit
		- - -

－－ 71

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

December 31

Item Property, plant and equipment	2019 $445,707	2018
		$ -

(5)For the Company’s endorsement for others as of the years ended December 31, 2019 and 2018, please refer to Note 7.3.11.

(6)As of December 31, 2019 and 2018, guarantees provided to banks by the Company for performance and warranty amounted to $115,823 thousand, and $193,717 thousand, respectively.

(7)As of December 31, 2019 and 2018, guarantee letters of credit issued by the Company for export business totaled USD3,800 thousand and USD7,500 thousand, respectively.

(8)Establishment of important construction contracts

(a)As of December 31, 2019, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:

Type of construction	Contract price /Total estimated construction cost	Construction cost paid /Completion %	Expected year of completion /Accumulated profit or loss recognized
Above-ground structures construction for E-Da Asia Commercial Plaza	1,928,244 1,811,465	1,731,965 95.61%	Year 2020 111,655
Construction and installation of 40T*42M tracked overhead container crane for China Container Transport at pier 10 and 11 of Taichung Harbor	202,300 205,019	204,853 99.92%	Year 2020 (2,716)
Manufacture and installation of overhead cranes sized 300t(150t+150t)*43m for the Wind Power Department of Century Iron and Steel Industrial Co. Ltd.	205,000 200,458	156,173 77.91%	Year 2020 3,539
6 40T-gantry cranes for storage in the rear area at Wharf No. 120 of Kaohsiung Harbor	311,100 260,717	259,208 99.42%	Year 2020 50,091
Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd.	220,807 224,596	185,857 82.75%	Year 2020 (3,789)
Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying	313,600 312,494	227,278 72.73%	Year 2020 804

－－ 72

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

(b)As of December 31, 2018, estimated total contract costs,	contract costs paid, and
expected completion dates but not completed are summarized below:
Contract price Construction	Expected year of
/Total estimated cost paid	completion /Accumulated
Type of construction construction cost /Completion %	profit or loss recognized

(b)As of December 31, 2018, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:	(b)As of December 31, 2018, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:	(b)As of December 31, 2018, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:	(b)As of December 31, 2018, estimated total contract costs, contract costs paid, and expected completion dates but not completed are summarized below:
Type of construction	Contract price /Total estimated construction cost	Construction cost paid /Completion %	Expected year of completion /Accumulated profit or loss recognized
Above-ground structures construction for E-Da Asia Commercial Plaza	1,826,404 1,739,116	1,615,270 92.88%	Year 2019 81,072
Construction of international multi-purpose business building with Hwa Xung Kee Ta	217,362 217,428	213,628 98.25%	Year 2019 (66)
Construction and installation of 40T*42M tracked overhead container crane for China Container Transport at pier 10 and 11 of Taichung Harbor	202,300 203,114	199,082 98.01%	Year 2019 (814)
Construction of E-Da Empire Buildings by New Springb Construction Corp.	154,688 142,907	129,517 90.63%	Year 2019 10,678
Manufacture and installation of overhead cranes sized 300t(150t+150t)*43m for the Wind Power Department of Century Iron and Steel Industrial Co. Ltd.	205,000 201,019	19,217 9.56%	Year 2019 381

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6 40T-gantry cranes for storage in the rear area at Wharf No. 120 of Kaohsiung Harbor	311,100 260,717	258,917 99.31%	Year 2019 50,035
Construction of phase 1 Pangu buildings by Greaten Construction Co., Ltd.	220,806 224,596	138,606 61.71%	Year 2019 (3,790)
Manufacturing and installation of 13 overhead cranes, their steel tracks and safety electric bus-way for GMTC steel furnace plant at Liuying	313,600 312,494	147,495 47.20%	Year 2019 522
YKK Taiwan's Chungli Plant No.2 construction project by Chung Lu Construction	331,610 331,262	281,545 84.99%	Year 2019 296
Development project phase 1 of district C of the core area of Shalun Smart Green Energy Science City by Reiju Construction	259,065 257,640	153,812 59.70%	Year 2019 851
Steel structure engineering construction of E-Da Empire Buildings by New Spring Construction Corp.	1,320,433 1,280,441	85,104 6.65%	Year 2019 2,659

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

10.SIGNIFICANT DISASTER LOSS

The 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

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$7,000 thousand , an insurance claim receivable for the damaged part in the amount of $78,048 thousand was also recognized in December 31, 2018. The Company has obtained $150,000 thousand in insurance claim in 2019. After offsetting the insurance claim receivable, $71,952 thousand is recorded as “other income”.

11.SIGNIFICANT SUBSEQUENT EVENTS

(1) The Company's Board of Directors resolved on March 13, 2020 to repurchase 100,000 shares in the concentrated market from March 16 to May 15, 2020 at a price of $8 to $9.5 per share. The number of shares repurchased by the Company as of March 17, 2020 is zero.
(2) Sun company Kingsgarden International Co., Ltd.( Originally acquired by the subsidiary Yieh Hsing Enterprise Co., Ltd for 50.71% shareholding, which was control obtained.) On February 24, 2020, the Board of Directors resolved to raise working capital by issuing 7,000 thousand shares of common stock at a cash issue price of $10.3 per share, and the total amount of funds raised was $ 72,100 thousand. The capital increase base date is set on March 11, 2020. The Company intends to fully subscribe the shares. After the subscription, the Company's shareholding will increase from 49.28% to 50.12%. Yieh Hsing Enterprise Co., Ltd's shareholding will be reduced from 50.71% to 49.87%, The Company thus obtained control over such company.

12.OTHERS

(1) Capital risk management

As the 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

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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. a. Exchange rate exposure and sensitivity analysis:

Exchange rate		December31,2019	December31,2019	December31,2019
	Presented amount (New Taiwan Dollars) 2,167,350 10,028,670 46,430	SensitivityAnalysis
		Range of change Effects on profitor loss Up 1% 21,674 Up 1% - Up 1% (464) December31,2018		Effects on Equity
29.98 29.98 29.98 Exchange rate				- 100,287 -
	Presented amount (New Taiwan Dollars) 2,368,015 11,611,039 337,897	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1%	Effects on profitor loss 23,680 - (3,379)	Effects on Equity
30.715 30.715 30.715				- 116,110 -

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

b. Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Company’s monetary items amounted to ($33,204) thousand and $121,810 thousand for the years

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ended December 31, 2019 and 2018, 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 beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.

If the security price goes up or down by 1%, the post-tax profit or loss for the year 2019 and 2018 will increase or decrease by $5,281 thousand and $10,188 thousand due to the increase or decrease of the fair value of financial assets measured at FVTPL. The post-tax other comprehensive income for the year 2019 and 2018 will increase or decrease by $7,044 thousand and $7,101 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

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

as follows:
Item With fair value interest rate risk Financial assets Financial liabilities Net With cash flow interest rate risk Financial assets Financial liabilities Net	Carrying	Amount
	December 31,2019 $638,746 (817,620) $(178,874) $592,312 (18,091,727) ($17,499,415)	December 31,2018
		$1,225,145 (499,472)
		$725,673
		$202,679 (18,845,960)
		($18,643,281)

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 the year 2019 and 2018 will decrease by $6,109 thousand and $24,245 thousand, respectively.
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 reduce (increase) in the market interest will increase (decrease) the net profit by ($174,994) thousand and ($186,433) thousand for the years 2019 and 2018, 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.

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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.

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, 2019 and 2018, the top ten clients accounted for 69.24% and 71.60% 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 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
			$-
			- -
			$-

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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:

December 31, 2019

Non-derivative financial Liabilities	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - 215,967 70,580 2,100 $288,647	Contractual cash flows	Carrying amount $ 8,136,122 598,840 615,689 835,934 401,777 218,780 9,955,605 2,100 $20,764,847
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	$ 7,286,122 600,000 615,689 835,934 401,777 5,472 801,237 -	$850,000 - - - - 7,928 837,070 -	$ - - - - - 13,400 1,950,640 -	$ - - - - - 39,796 6,313,520 -		$ 8,136,122 600,000 615,689 835,934 401,777 282,563 9,973,047 2,100
	$10,546,231	$1,694,998	$1,964,040	$6,353,316		$20,847,232

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 $42,277	Over 20 years $87,129	Total undiscounted lease payments
	$13,400	$53,196	$44,283	$42,278			$282,563

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Non-derivative financial Liability			December 31,2018	December 31,2018	December 31,2018
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - - 70,580 2,000 $72,580 $-	Contractual cash flows $ 7,628,382 500,000 626,515 710,533 474,542 11,240,520 2,000 $21,182,492 $1,998	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term loans (including current portion) Guarantee deposits Received Subtotal Derivative financial liabilities Cross currency swap contracts	$ 6,948,382 500,000 626,515 710,533 473,673 392,237 -	$680,000 - - - 869 609,236 -	$ - - - - - 1,638,307 -	$ - - - - - 8,530,160 -			$ 7,628,382 499,472 626,515 710,533 474,542 11,217,578 2,000
	$9,651,340	$1,290,105	$1,638,307	$8,530,160			$21,159,022
	$1,998	$-	$-	$-			$1,998

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.

Types of Financial instruments

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 profit or loss – noncurrent Financial assets at fair value through other comprehensive income or loss - noncurrent Financial liabilities Financial liabilities measured at amortized costs Short-term loans Short-term notes and bills payable Notes receivables and accounts payable (including related parties) Other payables (including related parties) Long-term loans (including current portion) Lease liabilities (including current portion) Deposits received Financial liabilities at fair value through profit or loss - current	December 31
	2019 $665,530 1,354,724 162,291 55,236 1,139,390 160,138 307,571 220,577 704,405 8,136,122 598,840 1,451,623 401,777 9,955,605 218,780 2,100 -	2018
		$327,063 1,634,596 213,603 285,559 1,295,104 46,875 227,960 790,797 710,093 7,628,382 499,472 1,337,049 474,542 11,217,578 - 2,000 1,998

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(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, beneficiary certificates, on-the-run Taiwan central government bonds and derivative instruments 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. The fair value of the Company’s investment in off-the-run government bonds, corporate bonds, bank debentures, convertible bonds and most derivative instruments is included in Level 2. Level 3

Unobservable inputs for the asset or liability. The fair value of the 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:

Item Assets: Recurringfair value Financial assets at fair value through profit or loss Non-derivative financial assets held for trading Domestic unlisted stocks Financial assets measured at FVTOCI Domestic unlisted stocks Domestic listed stocks Total	December 31,2019
	Level 1 Level 2 Level 3 $23,461 $10,004 $ - - - 494,683 - - 670,520 33,885 - - $57,346 $10,004 $1,165,203	Total
		$33,465 494,683 670,520 33,885
		$1,232,553

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	December 31, 2018	December 31, 2018
Level 1 $45,531 - - 31,050 $76,581 $-	Level 2 $10,016 - - - $10,016 $1,998	Level 3 $ - 963,210 679,043 - $1,642,253 $-	Total
			$55,547 963,210 679,043 31,050
			$1,728,850
			$1,998

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 using a valuation technique that refers to the fair value of financial instruments having substantially the same terms and characteristics, the discounted cash flow method, or other valuation technique e.g. the one that applies market information available on the balance sheet date to a pricing model for calculation.

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

(3) When evaluating financial instruments that are non-standard and with lower complexity, e.g. debt instruments with no active markets, interest rate swaps, foreign exchange swaps and options, the 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 January 1, 2019 Additions Withdrawal of special shares Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income December 31, 2019	Investment in unquoted financial instruments
	$1,642,253 15,000 (455,076) (4,234) (13,450) (19,290)
	$1,165,203

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Item January 1, 2018 Adjustment due to retrospective application of IFRS 9 Additions Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income December 31, 2018	Investment in unquoted financial instruments
	$- 1,119,906 481,483 (2,352) 23,946 19,270
	$1,642,253

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.

(4) Transfer of financial assets: None.

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

13.SUPPLEMENTARY DISCLOSURES

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

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TABLE 1

Yieh Phui Enterprise Co., Ltd. Loans to Others For The Year Ended December 31, 2019

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	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	4,622,096 (RMB222,880) (USD109,570) (EUR 4,300)	2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	2.00%- 8.09267%	2	－	Operating capital	－	－	－	10,340,092 (Note 3)	10,340,092 (Note 3)
2	Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Long-term receivable – relatedparty	Y	114,888 (RMB 25,000)	107,438 (RMB 25,000)	107,438 (RMB 25,000)	4.00%	2	－	Operating capital	－	－	－	10,340,092 (Note 3)	10,340,092 (Note 3)
3	Good Honor Holdings Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Long-term receivable – relatedparty	Y	142,200 (USD 4,500)	134,910 (USD 4,500)	134,910 (USD 4,500)	0%- 4.15%	2	－	Operating capital	－	－	－	10,340,092 (Note 3)	10,340,092 (Note 3)
4	Lian So (H.K) Co., Limited	Lian Yang (Hong Kong) Trading Limited	Other receivables - relatedparty	Y	142,200 (USD 4,500)	－	－	－	2	－	Operating capital	－	－	－	179,777 (Note 2)	179,777 (Note 1)
5	Champion Logistic Inc.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	528,530 (USD 17,000)	－	－	4.00%	2	－	Operating capital	－	－	－	10,340,092 (Note 3)	10,340,092 (Note 3)
6	Shin Yang Steel Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	376,680	－	－	4.00%	2	－	Operating capital	－	－	－	366,299 (Note 2)	366,299 (Note 1)
7	Lian Yang (Hong Kong) Trading Limited	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	40,807 (USD 1,300)	－	－	4.00%	2	－	Operating capital	－	－	－	5,987 (Note 2)	5,987 (Note 1)
8	Applied Wireless Identifications Group, Inc.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	69,058 (USD 2,200)	65,956 (USD 2,200)	65,956 (USD 2,200)	4.00%	2	－	Operating capital	－	－	－	85,458 (Note 2)	85,458 (Note 1)

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(Note 1) The maximum amount of total loans to othjers 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 and Guarantees Provided to Others For The Year Ended December 31, 2019

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	25,850,231	6,835,806 (RMB 1,487,500)	6,392,531 (RMB 1,487,500)	2,296,477 (RMB 534,375)	－	24.73%	25,850,231	Y	－	Y
		Shin Yang Steel Co., Ltd.	Subsidiary of the Company	25,850,231	1,536,000	1,236,000	870,799	336,000	4.78%	25,850,231	Y	－	－
		Yieh Phui (Hong Kong) Holdings Limited	Subsidiary of the Company	25,850,231	4,645,200 (USD 147,000)	4,407,060 (USD 147,000)	2,832,176 (USD 84,630) (RMB 20,160) (EUR 4,300)	－	17.05%	25,850,231	Y	－	－
1	Shin Phui Steel Corporation (Note 2)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	1,081,496	942,230	942,230	942,230	942,230	435.61%	1,081,496	－	Y	－
2	Kings Garden International Co., Ltd.(Note 3)	Great Emperor Hotel Co., Ltd.	(Note 9)	28,919,925	7,186,000	7,186,000	5,465,000	7,186,000	173.94%	28,919,925	－	－	－
3	Great Emperor Hotel Co., Ltd. (Note 4)	Kingsgarden International Co., Ltd.	(Note 9)	25,643,265	7,413,000	7,413,000	5,904,000	7,413,000	202.36%	25,643,265	－	－	－
4	Shin Yang Steel Co., Ltd.(Note 6)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	2,747,239	900,000	900,000	560,000	900,000	98.28%	2,747,239	－	Y	－
5	Yieh Phui (China) Technomaterial Co., Ltd.(Note 5)	Tianjin Lianfa Precision Steel Corporation	Subsidiary of the Company	8,416,022	78,124 (RMB 17,000)	42,674 (RMB 9,930)	42,674 (RMB 9,930)	－	0.51%	8,416,022	Y	－	Y
6	Champion Logistic Inc. (Note 7)	Yieh Phui (Hong Kong) Holdings Limited	The same ultimate parent company	460,644 (USD 15,365)	505,600 (USD 16,000)	479,680 (USD 16,000)	151,734 (USD 5,061)	430,761 (USD 14,368)	104.13%	460,644 (USD 15,365)	－	－	－

－－ 87

(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 shall not exceed 5 times of Shin Phui’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Phui 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 shall not exceed 3 times of Shin Yang’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Yang to a single entity.
(Note 7): The maximum amount of endorsement/guarantee provided by Champion Logistic Inc. shall not exceed 100% of its net worth; the same limit applies to the endorsement/guarantee provided by Champion Logistic Inc. 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.

(Note 9): Mutually guaranteed companies based on the need of construction contract.

－88－

TABLE 3

Yieh Phui Enterprise Co., Ltd. Marketable securities held at the end of the period (not including subsidiaries, associates and joint ventures) For The Year Ended December 31, 2019

Unit: Thousands of NT Dollar/ Foreign Currency

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

－－ 89

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Stock/ TaiwanVes-Power Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,800	50,618	3.60%	50,618
	Stock/ New Spring Construction Corp.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	15,187	116,234	15.49%	116,234
	Stock/ Ascentke Venture Capital Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,693	17,155	6.42%	17,155
	Stock/ Taiwan Implant Technology Company, Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	701	5,569	4.20%	5,569
	Stock/ Sunny Bank	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	4,367	41,042	0.17%	41,042
	Stock/ Universal Venture Capital Investment Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,100	6,674	0.91%	6,674
	Stock/ Yieh Corporation Limited	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	200	94,155	4.82%	94,155
	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	5,481	3.00%	5,481
	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	7,398	0.79%	7,398
	Stock/ Skylark International Hotel Co.,Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	20,528	315,349	13.68%	315,349
	Stock/ Neolink Capital Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,500	10,310	2.41%	10,310
	Stock/ Asia Pacific Telecom Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	4,500	33,885	－	33,885
		Total			704,405		704,405
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	－	－	－
EMMT Systems Corporation	Stock/ Rodan (Taiwan) Ltd.	None	Financial assets at fair value through other comprehensive income - noncurrent	17	－	0.73%	－
Kuo Chang Enterprise Co., Ltd.	Preferred stock/ Eliter International Corp.- Preferred stock D	An investee of the Parent Company under equity method.	Financial assets at fair value through profit or loss - current	1,997	21,592	－	21,592
	Preferred stock/ Eliter International Corp.- Preferred stock E	An investee of the Parent Company under equity method.	Financial assets at fair value through profit or loss - noncurrent	1,498	16,014	－	16,014

－－ 90

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

－－ 91

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, 2019

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

(Note 1):Including proceeds from capital reduction of ($777,846) thousand, gain (loss) on investments accounted for using equity method and shares of other comprehensive income of $25,744 thousand, accumulated earning/loss recognized in non-proportion to the Company’s shareholding percentage of ($336) thousand.
(Note 2):Including capital increase by cash of $659,200 thousand, income and loss on investment accounted for using equity method in the amount of ($7,682) thousand and accumulated earning/loss of ($15,314) thousand recognized due to the failure to subscribe to new shares in proportion to its shareholding percentage.

－－ 92

TABLE 5

Yieh Phui Enterprise Co., Ltd. Acquisition of individual Real Estate Properties at Costs of At Least NT$300 Million or 20% of the Paid-in Capital For The Year Ended December 31, 2019

Company name	Real estate	Transaction date	Transaction amount	Payment terms	Counterparty	Relationship with the seller	Prior transaction of related counterparty	Prior transaction of related counterparty	Prior transaction of related counterparty	Prior transaction of related counterparty	Price reference	Purpose of acquisition	Other terms
							Owner	Relationship	Transfer Date	Amount
Kings Garden International Co., Ltd.	Construction of commercial building at E-da Asia Plaza	January 28, 2014 ~ November 29, 2019	5,399,904	4,561,463	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.			5,917,200	4,163,484								For development of an international hotel

－－ 93

TABLE 6

Yieh Phui Enterprise Co., Ltd. Disposal of Individual Real Estate Properties at Prices of at Least NT$300 Million or 20% of the Paid-in Capital For The Year Ended December 31, 2019

								Unit:Thousands of NT Dollars/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	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, 0002, Pingbei Section, Jiadong Township, No.0001- 0027, Pingnan Section, Jixiang Township, and No. 25, Pingnan Section, Minxiang Township	November 8, 2018	June 2006- May 2019	219,747	620,868 (Note 2)	Fully recovery	401,121 (Note 1)	Sanxin Industrial Co., Ltd.	－	Enrich the working capital of the company	Euro-Asia Asset Evaluation Group	None

(Note 1):. Please refer to Note 6.29

(Note 2): The amount of the contract price without tax minus the necessary fee.

－－ 94

TABLE 7

Yieh Phui Enterprise Co., Ltd. Purchases from or Sales to Related Parties of at Least NT$100 Million or 20% of the Paid-in Capital For The Year Ended December 31, 2019

							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)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Note
Yieh Phui Enterprise Co., Ltd.	Yieh Hong Enterprise Co., Ltd.	Related party in substance	Purchases			T/T or Sight L/C before goods acceptance.	－	－	－	－	－
				996,124	4.73%

	Yieh United Steel Corporation	An investee accounted for using equitymethod	Purchases			T/T or Sight L/C before goods acceptance.	－	－	－	－	－
				208,746	0.99%

	Yieh Corporation Limited	Related party in substance	Sales			1-2 months	－	－	1,900	0.14%	Accounts receivable
				1,332,730	5.34%

	Asiazone Co., Limited	An investee accounted for using equitymethod	Sales			1-2 months	－	－	169,307	12.50%	Accounts receivable
				1,452,611	5.82%

	Shin Yang Steel Co., Ltd.	Subsidiary of the Company	Sales	893,720	3.58%	1-2 months	－	－	31,979	2.37%	Accounts receivable
			Purchases	331,794	1.58%	1-2 months	－	－	333,615	39.91%	Accounts payable
	New Spring Construction Corp.	Related party in substance	Sales	969,047	3.88%	Pursuant to the agreement	－	－	－	－	－
	Shin Phui Steel Corporation	Subsidiary of the Company	Sales	239,462	0.96%	1-2 months	－	－	31,143	2.31%	Accounts receivable

－－ 95

Purchaser/ seller	Counterparty	Relationship with the counterparty			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)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Note
Yieh Phui Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Sales	202,376	0.81%	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	－	－	17,006	1.26%	Accounts receivable
Yieh Phui (Hong Kong) Holdings Limited	Fujian Lian Wei Logistics Co., Ltd.	Related party in substance	Sales	722,092 (USD 23,449)	34.95%	The agreed period is 3 months, but a grace period may be granted by mutual agreement.	－	－	173,026 (USD 5,771)	29.10%	Accounts receivable
	Yieh United Steel Corporation	An investee of the Parent Company under equity method.	Sales	1,344,148 (USD 43,649)	65.05%	The agreed period is 3 months, but a grace period may be granted by mutual agreement.	－	－	421,557 (USD 14,061)	70.90%	Accounts receivable
Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	Sales	1,421,521 (RMB 318,103)	15.86%	1-2 months	－	－	195,011 (RMB 45,378)	42.69%	Accounts receivable
Yieh Hsing Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	4,313,858	77.92%	T/T or Sight L/C before goods acceptance.	－	－	20,524	93.13%	Accounts payable

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

－－ 96

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, 2019

					Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Creditor	Counterparty	Relationship with the counterparty	Ending balance	Turnover rate	Overdue receivables		Amount collected subsequent to the end of the reporting period (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Yieh Phui Enterprise Co.,Ltd.	Asiazone Co., Limited	Affiliated enterprises	169,307	5.08	－	－	151,110	－
Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Subsidiaries	2,681,625 (RMB 20,160) (USD 81,740) (EUR 4,300)	(Note 1)	－	－	USD 9,945	－
	Fujian Lian Wei Logistics Co.,Ltd.	Related party in substance	173,026 (USD 5,771)	2.60	－	－	USD 5,000	－
	Yieh United Steel Corporation	An investee of the Parent Company underequitymethod.	421,557 (USD 14,061)	4.90	－	－	－	－
Shin Yang Steel Co.,Ltd.	Yieh Phui Enterprise Co., Ltd.	Parent company	333,615	2.00	－	－	333,615	－
Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	107,438 (RMB 25,000)	(Note 1)	－	－	－	－
			195,011 (RMB 45,378)	6.50	－	－	RMB 45,186	－
Good Honor Holdings Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Subsidiaries	134,910 (USD 4,500)	(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 17, 2020.

－－ 97

TABLE 9

Yieh Phui Enterprise Co., Ltd. Information on Investees (Excluding Information on Investment in Mainland China) For The Year Ended December 31, 2019

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, 2019	December 31, 2018	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%	8,390,606	(524,935)	(524,935)
	Champion Logistic Inc.	Samoa	Investment	504,629	1,282,475	13,000	89.66%	412,991	24,497	23,249
	Eliter International Corp.	Kaohsiung City	Construction of buildings	2,833,595	2,833,595	283,584	32.84%	2,666,548	(144,372)	(47,417)
	Yieh Hsing Enterprise Co., Ltd.	Kaohsiung City	Wire rods trading	2,252,564	2,246,530	302,376	56.98%	1,207,867	(642,188)	(353,733)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,453,572	1,453,572	39,553	11.30%	1,221,462	14,953	1,690
	E-Da Development Corp.	Kaohsiung City	Leisure development	2,096,196	1,868,658	209,619	28.44%	1,196,618	(294,609)	(83,794)
	United Brightening Development Corp.	Kaohsiung City	Technical consultation for steel products manufacturing	1,836,383	1,836,383	152,972	95.56%	1,587,809	(84,660)	(80,903)
	Shin Yang Steel Co., Ltd.	Kaohsiung City	Steel products related business	870,000	870,000	87,000	100%	916,528	7,048	7,830
	Yieh Mau Corp.	Kaohsiung City	Trading & manufacturing	422,605	422,605	51,124	23%	614,711	102,117	23,482
	Kuo Chang Enterprise Co., Ltd.	Kaohsiung City	Wholesale of hardware	1,287,428	1,256,726	100,487	99.04%	1,080,043	(84,580)	(83,768)
	Asiazone Co., Limited	Hong Kong	Steel trading	595,424	595,424	15,090	32.80%	649,497	35,920	11,783
	Shin Phui Steel Corporation	Kaohsiung City	Trading of steel products	185,736	295,736	20,715	100%	217,565	4,151	4,598

－－ 98

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
				December 31, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	Sin Bang Investment & Development Co.,Ltd.	Kaohsiung City	Investment	265,809	295,809	19,313	100%	225,720	178	178
	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	308,076	308,075	33,187	78.10%	432,637	97,422	76,087
	Good Honor Holdings Ltd.	British Virgin Islands	Investment	14,723	14,723	46	100%	159,972	2,805	2,805
	Gen-Wan Technology Corp.	Kaohsiung City	Telecommunication	148,610	148,609	2,814	86.99%	36,841	7,046	6,130
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	14,000	14,000	1,400	35%	12,728	(4,414)	(1,545)
	E-Da Bus Transportation Co., Ltd.	Kaohsiung City	Bus transportation	49,755	36,086	1,845	17.09%	9,743	(50,367)	(8,606)
	E-DA Tour Bus Co., Ltd.	Kaohsiung City	Bus transportation	20,900	9,500	1,349	19%	13,377	16	3
	E-Da Cultural Creative Industry Co.,Ltd.	Kaohsiung City	Cultural creativity	－	22,800	－	－	－	(381)	(72)
	Worthing Honor Holdings Ltd.	British Virgin Islands	Investment	6,672	6,672	100	100%	2,764	13	13
	E United Japan Co., Ltd.	Japan	Steel trading	8,027	8,027	－	47%	3,861	(1,868)	(878)
	Skylark Hot Spring & Resort Corp.	Kaohsiung City	Hotel industry	11,700	11,700	1,170	14.63%	－	(1,760)	－
	E-Da Entertainment Co., Ltd.	Kaohsiung City	Entertainment industry	74,100	74,100	7,410	19%	42,837	(1,036)	(197)

－－ 99

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, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise ~~C~~o., Ltd.	Li Hui Development Co., Ltd.	Kaohsiung City	Investment	321,216	321,216	64,045	44.56%	310,935	5,938	(826)	(Note 1)
	Ji Chang Enterprise Co., Ltd.	Kaohsiung City	Investment	5,050	5,050	1,042	45%	4,743	(6)	(63)	(Note 1)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	4,995,078	4,923,615	671,291	25.62%	3,193,845	(3,046,907)	(781,228)	(Note 1)
	Hong Yuh Assets Management Co.,Ltd.	Kaohsiung City	Management service	1,167,200	1,064,000	119,920	80%	549,734	(135,343)	(108,274)
	E-Da Visual Effects Company Limited.	Kaohsiung City	Entertainment industry	10,393	10,393	1,470	49%	－	(12,204)	－
	Lian So(H.K) Co., Limited	Hong Kong	Investment	507,342	507,342	16,560	80%	359,554	(64,640)	(51,712)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	3,800	3,800	380	19%	3,705	(69)	(13)
	Yieh Phui America Inc.	U.S.	Trading of steel products	292	292	1	100%	53,286	38,734	38,734
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	1,514,100	1,215,400	147,000	41.18%	1,453,417	(18,300)	(7,211)
	Prepayment for stock subscription - Great Emperor HotelCo.,Ltd.	Kaohsiung City	Hotel industry	133,597	－	－	－	133,597	－	－
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,121,800	1,462,600	206,000	49.28%	2,036,058	(17,560)	(7,682)
	Total			33,496,259	32,881,400	－	－	29,201,599	(4,789,361)	(1,946,275)

Note 1: Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corporation and its subsidiaries, Li Hui Development Co., Ltd. and Ji Chang Enterprise Co., Ltd., investment income/loss is accounted for using the treasury stock approach. Thus, the income/loss of investee for the period excludes income/loss accounted for using equity method by Yieh United Steel Corporation in relation to the Company.

－100－

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, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Shin Phui Steel ~~C~~orporation	Groupco Technology Inc.	Taichung City	RADIO	37,492	37,492	3,830	42.53%	3,912	513	218
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	24,562	24,562	3,178	0.12%	14,734	(3,046,907)	(4,055)	(Note 1)
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	515	515	50	0.01%	494	(18,300)	(3)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	515	515	50	0.01%	494	(17,560)	(2)
Gen-Wan Technology Corp.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	27,630	27,630	3,178	7.48%	41,429	97,422	7,286
EMMT Systems Corporation	Groupco Technology Inc.	Taichung City	RADIO	45,000	45,000	4,500	49.97%	4,597	513	256
	Applied Wireless Identifications Group,Inc.	San Francisco, US	RFID	242,545	242,545	40,488	91.47%	193,209	44,465	40,673
	UniPattern Corporation	Taipei City	Manufacturing of computer andperipherals	54,960	54,960	5,200	43.33%	52,806	3,022	1,310
Applied Wireless Identifications Group,Inc.	AWID Asia Co., Ltd.	Kaohsiung City	Telecommunications equipment wholesale	75,220 (USD 2,509)	77,070 (USD 2,509)	3,030	100%	17,759 (USD 592)	(13) (USD 1)	(13) (USD 1)

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

－101－

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, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Shin Yang Steel Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	17,385	17,385	2,195	0.08%	10,181	(3,046,907)	(2,799)	(Note 1)
Sin Bang Investment & Development Co.,Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	265,482	265,482	7,224	2.06%	223,089	14,953	309
Kuo Chang Enterprise Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	439,197	439,197	56,817	2.17%	263,471	(3,046,907)	(72,514)	(Note 1)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	219,977	219,977	21,558	2.50%	202,755	(144,372)	(3,605)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	786,714	786,714	21,328	6.09%	957,014	14,953	911
United Brightening Development Corp.	Chao Ying Investment Development Co., Ltd.	Kaohsiung City	Investment	341,992	341,992	30,400	100%	276,304	(110)	(110)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	449,508	449,508	58,151	2.22%	269,656	(3,046,907)	(74,216)	(Note 1)
	Champion Logistic Inc.	Samoa	Investment	49,376	49,376	1,500	10.34%	47,653	24,497	1,248
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,177,838	1,177,838	32,050	9.16%	1,418,042	14,953	1,369
	Eliter International Corp.	Kaohsiung City	Construction of buildings	70,393	70,393	6,898	0.8%	64,890	(144,372)	(1,153)

Note 1: Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corporation , investment income/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.

－102－

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, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Chao Ying Investment Development Co.,Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	336,957	336,957	8,898	2.54%	274,785	14,953	380
Hong Yuh Assets Management Co., Ltd.	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	514,670	514,670	1,640	47.88%	376,059	(112,157)	(58,045)
	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	1,633	1,633	0.05	10%	682	(2,507)	(251)
	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	100,303	100,303	3,319	19%	79,107	(52,570)	(16,842)
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	9,371	9,371	381	75%	(27,221)	(25,460)	(19,095)
	Prepayment of stock subscription - Lien Heng MiningCo.,Ltd.	Indonesia	Nickle mining	69,365	－	－	－	69,365	－	－
	Asiamax Mining Indonesia	Indonesia	Nickle mining	89,386	38,542	55	100%	76,668	(409)	(409)
	Prepayment for stock subscription - Asiamax Mining Indonesia	Indonesia	Nickle mining	－	50,844	－	－	－	－	－
Lian So (H.K) Co., Limited	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	13,491 (USD 450)	13,822 (USD 450)	0.45	90%	6,134 (USD 205)	(2,507) (USD 81)	(2,256) (USD 73)
	Lian Yang (Hong Kong) TradingLimited	Hong Kong	Trading business	2,998 (USD 100)	92,145 (USD 3,000)	100	100%	14,967 (USD 499)	1,744 (USD 57)	1,744 (USD 57)
	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	535,143 (USD 17,850)	456,118 (USD 14,850)	1,785	52.12%	409,308 (USD 13,653)	(112,157) (USD 3,642)	(54,112) (USD 1,757)

Note 1: Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corporation , investment income/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.

－103－

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2019	December 31, 2018	Shares (in thousands)	Percentage of Ownership	Carrying Value
Lien-Hsin steel Co., Ltd.	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	442,565 (USD14,762)	453,419 (USD14,762)	16,142	81%	351,857	(52,570)	(71,800)
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	20,506 (USD 684)	20,994 (USD 684)	127	25%	(9,074)	(25,460)	(6,365)
Yieh Hsing Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	2,099,500	2,099,500	209,950	58.81%	－ (Note 2)	(18,300)	(11,293)	(Note 3)
	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	50.71%	－ (Note 2)	(17,560)	(10,108)	(Note 3)
	United Winner Metals L.P	Virginia, US	Scrap steel recycling	107,474	108,153	－	33.75%	92,117	17,975	6,066
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	4,000	4,000	400	10%	3,637	(4,414)	(441)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	639,772	639,772	64,043	7.42%	602,412	(144,372)	(10,708)
	E-Da Development Corp.	Kaohsiung City	Leisure development	437,915	390,380	43,791	5.94%	251,625	(294,609)	(17,505)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related business	20,204	20,204	2,542	0.1%	11,790	(3,046,907)	(3,244)	(Note 1)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	3,800	3,800	380	19%	3,704	(69)	(14)
Kings Garden International Co.,Ltd.	Yi Hua International Co., Ltd	Kaohsiung City	Leasing, selling and development of residential and commercial buildings	7,000	7,000	700	70%	12,249	13,719	9,603
	Hua Li International Co., Ltd.	Kaohsiung City	Daily necessities, cosmetics wholesaler	60,000	－	6,000	100%	59,185	(815)	(815)

－104－

(Note 1): Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corporation, investment gain/loss is accounted for using the treasury stock approach. Thus, the income/loss of investee for the period excludes gain/loss accounted for using equity method by Yieh United Steel Corporation in relation to the Company.
(Note 2): The Group sold land lot No. 16, 17 and 18 at Long Dong Section, Gushan District, Kaohsiung City to subsidiaries, Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., in December 2012. The unrealized gain from the sale of land was about $4,968,461 thousand. After deducting the investments accounted for using equity method, the credit balance of investment of $958,926 thousand was reclassified to “other noncurrent liabilities - others”.
(Note 3): The internal gains under the consolidation basis are eliminated.

－105－

TABLE 10

Yieh Phui Enterprise Co., Ltd. Information on Investment in Mainland China For The Year Ended December 31, 2019

Unit: Thousands of NT Dollar/ Foreign Currency

Name of	Investee in Mainland China	Main business activities	Total Amount of Paid-in Capital	Investment method (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2019	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2019	Net Income (Loss) of the Investee	Ownership held by the Company (direct or indirect) (%)	Share of Profit/Loss (Note 2)	Carrying Amount as of December 31, 2019	Accumulated Inward Remittance of Earnings as of December 31, 2019
						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	7,081,276 (USD 236,200) (Note 6)	(2) a	7,000,330 (USD 233,500)	－	－	7,000,330 (USD 233,500)	(519,628)	100%	(519,628) (2) 3	8,416,022	－
	Changshou ChangHuei Trading Co.	Trading of steel products	42,975 (RMB 10,000)	(2) a (Note 4)	－	－	－	－	506	100%	506 (2) 3	45,101	－
	Tianjin Lianfa Precision Steel Corporation	Manufacturing and marketing of special high grade alloy	404,730 (USD 13,500)	(2) a (Note 5)	－	－	－	－	(50,533)	100%	(50,533) (2) 2	(134,207)	－
AWID Asia Co., Ltd.	AWID Sanghai Co., Ltd.	Telecommunications equipment wholesale	20,986 (USD 700)	(1)	20,986 (USD 700)	－	－	20,986 (USD 700)	(165)	100%	(165) (2) 2	2,295	－
	AWID Changshou Co., Ltd.	Telecommunications equipment wholesale	8,994 (USD 300)	(1)	8,994 (USD 300)	－	－	8,994 (USD 300)	(1,210)	100%	(2,210) (2) 2	3,513	－

－106－

	Investee in Mainland China	Accumulated Investment in Mainland China as of December 31, 2019	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Investor
Yieh Phui Enterprise Co., Ltd.	Yieh Phui (China) Technomaterial Co., Ltd.	7,000,330 (USD 233,500)	7,081,276 (USD 236,200)	15,510,139
AWID Asia Co., Ltd.	AWID Sanghai Co., Ltd.	20,986 (USD 700)	20,986 (USD 700)	80,000
	AWID Changshou Co., Ltd.	8,994 (USD 300)	8,994 (USD 300)	80,000

(Note 1): Investment methods are classified into the following three categories.
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
- a. Yieh Phui (Hong Kong) Holdings Limited
(3) Others

(Note 2): Investment gain or loss recognized in the current period:

(1) Please specify if it is in the preparation stage without any investment gains or losses generated.
(2) Recognition basis of investment profit or loss is categorized into three types, which shall be identified.
1. Financial statements audited and certified by the international CPA firms that cooperates with ROC CPA firms.
2. Financial statements reviewed, or audited and certified by the CPA firm of the parent company in Taiwan.
3. Others
(Note 3): The figures in the Table shall be expressed in New Taiwan Dollars. Carrying amount at the end of the period is converted using the exchange rate on the reporting date (USD:NTD 1:29.98; RMB: NTD 1:4.2975). Investment gain or loss recognized in the current period is converted using the average exchange rate in from January 1 to December 31, 2019 (USD: NTD 1:30.7946; RMB: NTD 1:4.4784).
(Note 4): Yieh Phui (China) Technomaterial Co., Ltd. invests in Changshou ChangHuei Trading Co. with equity funds of RMB 10 million. As of December 31, 2019, accumulated investment amounted to RMB 10 million.
(Note 5): The Company originally holds 100% of Tianjin Lianfa Precision Steel Corporation Beneficiary (paid-in capital equals USD 13,500 thousand) through its holding in Hsing Jui Investments Limited. It transfered its ownership to Yieh Phui (China) Technomaterial Co., Ltd. at RMB 20,000 thousand in July 2015. The said proceed, net of tax, of RMB 19,990 thousand (equivalent to USD 3,213 thousand) has been transferred back to the Company’s account in Taiwan.
(Note 6): Yieh Phui (China) Technomaterial Co., Ltd. recapitalized its retained earnings of USD 2,700 thousand in April 2016.

－－ 107

(Note 7): 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, 2019, directly or indirectly through the third area are as follows:
Significant transactions between the Company and investees in China: Table 7 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.

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.

－108－

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.111
Statement of financial assets measured at fair value through profit or loss - current	P.112
Statement of notes receivable	P.113
Statement of accounts receivable	P.114
Statement of other receivables	Note 6(5)
Statement of inventories	P.115
Statement ofprepayments	Note 6(7)
Statement of noncurrent assests held for sale	Note 6(8)
Statement of other financial assets - current	P.116
Statement of financial asset at fair value throughprofit or loss - noncurrent	P.117
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent	P.118
Statement of changes in investments accounted for usingequitymethod	P.119
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(31)
Statement of refundable deposits	P.121
Statement of other financial assets - noncurrent	P.122
Statement of short-term loans	P.123
Statement of short-term notes and billspayable	P.125
Statement of notespayable	P.126
Statement of accountspayables	P.127
Statement of otherpayables	Note 6(18)
Statement ofprovisions - current	Note 6(19)
Statement of liabilties directly associated with noncurrent assets held for sale	Note 6(8)

－－ 109

Statement of long-term loans and currentportion of long-term loans	P.128
Statement of lease liabilities	P.131
Statement of deferred income tax liabilities	Note 6(31)
Statement ofguarantee deposits	P.132
Major accountingitems inprofit or loss
Statement of net revenue	P.133
Statement of cost of revenue	P.134
Statement of sales and marketingexpenses	P.136
Statement ofgeneral and administrative expenses	P.136
Statement of employee benefits,depreciation and amortization expense	Note 6(27)
Statement of othergains and losses	Note 6(29)
Statement of finance costs	Note 6(30)

－110－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item	Description	Amount	Remark
Cash Bank savings Subtotal Cash equivalents Total	Petty cash Checking accounts Demand deposits - New Taiwan Dollars Demand deposits - foreign curriencies Time deposits with original due date within three months	$1,940	USD 15,642 USD 1,000
		$152,593 12,055 468,962
		$633,610
		$29,980
		$665,530

Exchange rate as of December 31, 2019: USD:NTD 1:29.98

－111－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT DECEMBER 31, 2019

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

Acquired Cost	Unit Price	Amount
$7,853 3,015 5,030 3,000 5,000	302.56 9.95 9.81 9,985.74 10.00 10.81	$7,564 2,986 4,903 3,007 5,001
$23,903		$23,461
262,748		284,110
$286,651		$307,571

－112－

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

DECEMBER 31, 2019

Client Name Company A Company B Others Total Less: Allowance for doubtful accounts Net	Description	(In Thousands of New Taiwan Dollars) Amount Remark $2,610 2,269 73 $4,952 (16) $4,936	(In Thousands of New Taiwan Dollars) Amount Remark $2,610 2,269 73 $4,952 (16) $4,936
	Construction receivable Construction receivable Under 5%	$2,610 2,269 73
		$4,952 (16)
		$4,936

－113－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2019

Client Name	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Trade receivable $209,662 Trade receivable 181,806 USD 6,064 Trade receivable 74,996 Trade receivable 70,546 Construction receivable 63,282 Under 5% 502,313 $1,102,605 (3,547) $1,099,058 Trade receivable $169,307 USD 5,647 Trade receivable 31,979 Trade receivable 31,143 Trade receivable 17,006 Under 5% 1,900 $251,335 (605) $250,730	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Trade receivable $209,662 Trade receivable 181,806 USD 6,064 Trade receivable 74,996 Trade receivable 70,546 Construction receivable 63,282 Under 5% 502,313 $1,102,605 (3,547) $1,099,058 Trade receivable $169,307 USD 5,647 Trade receivable 31,979 Trade receivable 31,143 Trade receivable 17,006 Under 5% 1,900 $251,335 (605) $250,730	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Trade receivable $209,662 Trade receivable 181,806 USD 6,064 Trade receivable 74,996 Trade receivable 70,546 Construction receivable 63,282 Under 5% 502,313 $1,102,605 (3,547) $1,099,058 Trade receivable $169,307 USD 5,647 Trade receivable 31,979 Trade receivable 31,143 Trade receivable 17,006 Under 5% 1,900 $251,335 (605) $250,730
Unrelated parties: Company C Company D Company E Company F Company G Others Total Less: Allowance for doubtful accounts Net Related parties: Asiazone Co., imited Shin Yang Steel Co., Ltd. Shin Phui Steel Corporation Yieh United Steel Corporation Others Total Less: Allowance for doubtful accounts Net	Trade receivable Trade receivable Trade receivable Trade receivable Construction receivable Under 5% Trade receivable Trade receivable Trade receivable Trade receivable Under 5%	$209,662 181,806 74,996 70,546 63,282 502,313	USD 6,064 USD 5,647
		$1,102,605 (3,547)
		$1,099,058
		$169,307 31,979 31,143 17,006 1,900
		$251,335 (605)
		$250,730

Exchange rate as of December 31, 2019: USD:NTD 1:29.98

－114－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount	Remark
		Cost	Net Realizable Value
		$1,444,900 17,492 510,236 1,191,650 71,961	$1,301,443 17,461 615,762 1,191,833 68,904
		$3,236,239 (160,193)	$3,195,403 -
		$3,076,046	$3,195,403
		$233,532 5,436	$261,942 5,436
		$238,968 (1,001)	$267,378 -
		$237,967	$267,378
		$3,314,013	$3,462,781

－115－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OTHER FINANCIAL ASSETS - CURRENT DECEMBER 31, 2019

Item	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,236	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,236	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledge demand deposits $55,236
Land Bank - Gangshan Branch	Pledge demand deposits	$55,236

－116－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT OR LOSS - NONCURRENT DECEMBER 31, 2019

DECEMBER 31, 2019
Item Description Shares or Unit Bank of Panhsin Sinsing Branch - 2014 First term subordinated financial bonds Financial Bonds 10,000 Eliter International Corp. - Preferred stock F Preferred Stock 19,706 Total	(In Thousand Shares & Thousands of New Taiwan Dollars) Fair Value Acquired Cost Unit Price Amount Remark $10,000 1.00 $10,004 197,061 10.69 210,573 $207,061 $220,577
		Unit Price 1.00 10.69
	$10,000 197,061
	$207,061

－－ 117

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, 2019

Balance, January 1, 2019	Balance, January 1, 2019	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
4,500 1,800 8,549 2,117 701 4,159 1,100 200 150 24 1,000 20,528 - 980 5,000 3,558 100 18,469	$31,050 54,104 79,354 20,916 6,466 37,400 7,535 110,368 5,008 535 7,553 349,804 - - - - - -	- - 6,638 - - 208 - - - - - - 1,500 - - - - -	$2,835 - 36,880 473 - 3,642 - - 473 - - - 15,000 - - - - -	- - - 424 - - - - - - - - - - - - - -	$- 3,486 - 4,234 897 - 861 16,213 - - 155 34,455 4,690 - - - - -	4,500 1,800 15,187 1,693 701 4,367 1,100 200 150 24 1,000 20,528 1,500 980 5,000 3,558 100 18,469	$33,885 50,618 116,234 17,155 5,569 41,042 6,674 94,155 5,481 535 7,398 315,349 10,310 - - - - -
		8,346	$59,303	424

Current increase of $59,303 thousand includes capital increase by cash for $15,000 thousand and unrealized gain on financial assets at FVTOCI for $44,303 thousand.
Current decrease of $64,991 thousand includes proceeds from capital reduction for $4,234 thousand and unrealized loss on financial assets at FVTOCI for $60,757 thousand.

－118－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2019

Name	Beginning	Balance	In	crease	De	crease	EndingBalan	EndingBalan	ce	(In Marke Ne	Thousand Shares & t Value or t Value	Thousands of New Ta Collateral or Pledge
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
PriceTotalYieh 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. E-Da Cultural Creative Industry Co.,Ltd. Worthing honor Holdings Ltd. E United Japan Co., Ltd. Skylark Hot Spring & Resort Corp. E-Da Entertainment Co., Ltd. Li Hui Development Co., Ltd. Ji Chang Enterprise Co., Ltd. Yieh United Steel Corporation Hong Yuh Assets Management Co.,Ltd. E-Da Visual Effects Company Limited. Lian So(H.K) Co., Limited E-Da Health Biotechnology Co., Ltd. Yieh Phui America Inc. Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Subtotal Prepaid shares: Great Emperor Hotel Co., Ltd. Total	233,500 37,000 283,584 301,042 39,553 186,866 152,972 87,000 47,779 97,417 15,090 31,246 22,313 28,858 46 2,447 1,400 3,609 950 2,280 100 - 1,170 7,410 62,884 1,042 660,037 109,600 1,470 16,560 380 10 118,000 142,000	$9,263,962 1,165,429` 2,715,880 1,559,024 1,214,180 1,056,934 1,671,139 986,272 610,022 1,137,467 653,667 323,368 254,521 359,992 161,096 30,998 14,273 4,679 1,974 255 2,819 4,755 - 48,037 311,793 4,806 3,988,269 527,323 - 406,710 3,718 15,958 1,168,965 1,399,854	- - - 1,334 - 22,753 - - 3,345 3,070 - 469 - 4,329 - 367 - 1,366 1,140 - - - - - 1,161 - 11,254 10,320 - - - - 29,000 64,000	$- 25,424 23 45,973 7,408 227,732 5,412 8,853 23,567 33,089 11,783 5,410 1,223 76,373 2,805 6,154 - 13,669 11,403 20 13 - - - - - 77,405 130,686 - 4,314 - 38,734 294,705 650,501	- 24,000 - - - - - - - - - 11,000 3,000 - - - - 3,130 741 2,280 - - - - - - - - - - - 9 - -	$873,356 777,862 49,355 397,130 126 88,048 88,742 78,597 18,878 90,513 15,953 111,213 30,024 3,728 3,929 311 1,545 8,605 - 275 68 894 - 5,200 858 63 871,829 108,275 - 51,470 13 1,406 10,253 14,297	233,500 13,000 283,584 302,376 39,553 209,619 152,972 87,000 51,124 100,487 15,090 20,715 19,313 33,187 46 2,814 1,400 1,845 1,349 - 100 - 1,170 7,410 64,045 1,042 671,291 119,920 1,470 16,560 380 1 147,000 206,000	100.00 89.66 32.84 56.89 11.30 28.44 95.56 100.00 23.00 99.04 32.80 100.00 100.00 78.10 100.00 86.99 35.00 17.09 19.00 - 100.00 47.00 14.63 19.00 44.56 45.00 25.62 80.00 49.00 80.00 19.00 100.00 41.18 49.28	$8,390,606 412,991 2,666,548 1,207,867 1,221,462 1,196,618 1,587,809 916,528 614,711 1,080,043 649,497 217,565 225,720 432,637 159,972 36,841 12,728 9,743 13,377 - 2,764 3,861 - 42,837 310,935 4,743 3,193,845 549,734 - 359,554 3,705 53,286 1,453,417 2,036,058	35.93 31.77 9.57 5.16 30.88 5.75 10.30 10.53 12.02 10.87 43.04 10.44 11.69 13.04 3,478 13.09 9.09 5.28 9.92 - 27.64 - (0.31) 5.78 5.31 5.04 4.83 4.58 (7.41) 21.71 9.75 53,286 9.89 9.88	$8,390,606 412,991 2,714,066 1,561,207 1,221,462 1,204,471 1,575,721 915,746 614,711 1,092,572 649,497 216,263 225,720 432,637 159,972 36,841 12,728 9,743 13,377 - 2,764 3,861 (362) 42,837 339,905 5,251 3,242,352 549,734 (10,895) 359,554 3,705 53,286 1,453,417 2,036,058	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 None None None None None None None
		$31,068,139 -		$1,702,679 133,597		$3,702,816 -			$29,068,002 133,597		$29,541,798 -
		$31,068,139		$1,836,276		$3,702,816			$29,201,599		$29,541,798

－－ 119

Note: (1) Details of current increase for $1,836,276 thousand are as below: (2) Details of current decrease for $3,702,816 thousand are as below:

Additions Gain on disposal of investments Equity method recognition Exchange differences on translation of foreign financial statements Unrealized gain and loss of financial assets at fair value through profit or loss Actuarial gain and loss of defined benefit plans Gain or loss on hedging instruments Accumulated loss Capital surplus Realized investment income (downstream) Total	$1,555,504 Sales 20 Proceeds from capital reduction 208,275 Equity method recognition 34,295 Exchange differences on translation of foreign financial statements 3,413 Unrealized gain and loss of financial assets at fair value through profit or loss 30,770 Actuarial gain and loss of defined benefit plans - Gain or loss on hedging instruments 2,259 Accumulated loss 1,143 Capital surplus 597 Realized investment income (downstream) Cash dividends $1,836,276 Total	$ 203 917,846 2,154,550 465,707 39,314 - 341 15,892 80 30,583 78,300 $ 3,702,816

(3) Net value of investees under equity method, except for that of Hsing Jui Investments Limited and E United Japan Co., Ltd., was calculated based on the audited financial states for the same period.

－120－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF REFUNDABLE DEPOSITS

DECEMBER 31, 2019

	(In Thousands of New Taiwan Dollars and Foreign Currencies)	(In Thousands of New Taiwan Dollars and Foreign Currencies)
Item	Description	Amount Remark
Refundable deposits	Dumping difference	$851,218 USD 28,393
	Customs duty guarantee	284,810 USD 9,500
	Rent deposits	3,345
	Others	17
Total		$1,139,390
Exchange rate as of December 31, 2019: USD:NTD 1:29.98

－121－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS - NONCURRENT

DECEMBER 31, 2019

Item	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Pledged time deposits $113,924 USD 3,800 Pledged demand deposits 46,055 Pledged time deposits 159 $160,138	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Pledged time deposits $113,924 USD 3,800 Pledged demand deposits 46,055 Pledged time deposits 159 $160,138	(In Thousands of New Taiwan Dollars and Foreign Currencies) Description Amount Remark Pledged time deposits $113,924 USD 3,800 Pledged demand deposits 46,055 Pledged time deposits 159 $160,138
Mega International Commercial Bank Co., Ltd Taiwan Cooperative Bank Taiwan Bank Total	Pledged time deposits Pledged demand deposits Pledged time deposits	$113,924 46,055 159	USD 3,800
		$160,138

Exchange rate as of December 31, 2019: USD:NTD 1:29.98

－122－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM LOANS DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Creditor	Description	Beginning Balance	Contract Period	Loan Commitment (Note3)	Collateral	Remark
						USD
Shin Kong Bank- Chihsien Branch 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 HUA NAN Bank - Gangshan Branch Land Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch First Bank - Hsin Hsing Branch Chang Hwa Bank - Kaohsiung Branch Bank SinoPac - Kaohsiung Branch Entie Bank - Kaohsiung Branch TCBBank -Taipei Branch Taiwan Business Bank - Kaohsiung Branch TCBBank - Kaohsiung Branch Jih Sun Bank - Kaohsiung Branch Jih Sun 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	$69,866 347,180 142,570 79,880 720,371 149,147 148,919 119,672 264,093 401,408 290,631 595,117 297,433 194,147 279,759 603,431 146,355 22,793 46,350	November 14, 2019~March 20, 2020 August 1, 2019~April 28, 2020 September 19, 2019~March 11, 2020 September 12, 2019~March 17, 2020 August 8, 2019~June 24, 2020 October 31, 2019~April 10, 2020 August 15, 2019~March 10, 2020 October 31, 2019~April 1, 2020 July 18, 2019~June 9, 2020 September 5, 2019~May 12, 2020 October 14, 2019~May 16, 2020 August 29, 2019~June 28, 2020 October 31, 2019~March 27, 2020 October 24, 2019~March 25, 2020 October 3, 2019~April 24, 2020 August 22, 2019~May 28, 2020 August 15, 2019~March 2, 2020 October 31, 2019~April 27, 2020 November 21, 2019~June 12, 2020	NTD 200,000 NTD 619,800 NTD 600,000 NTD 230,000 NTD 1,180,000 NTD 155,250 NTD 550,000 NTD 120,000 NTD 550,000 NTD 750,000 NTD 400,000 NTD 700,000 NTD 300,000 NTD 400,000 NTD 613,700 NTD 660,800 NTD 200,000 NTD 200,000 NTD 300,000	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 1,546
		$4,919,122		NTD 8,729,550

－123－

Shin Kong Bank- Chihsien Branch Credit Loan Bangkok - Kaohsiung Branch Credit Loan CTBC Bank - Minzu Branch Credit Loan TCBBank - Taipei Branch Credit Loan Far Eastern Int'l Bank - Kaohsiung Branch Credit Loan KGI Bank - Kaohsiung Branch Credit Loan Yuanta Bank - Kaohsiung Branch Credit Loan Sunny Bank Credit Loan Taiwan Cooperative Bank - Kaohsiung Branch Credit Loan Mega Bank - Gangdu Branch Credit Loan Taiwan Bank - Gangshan Branch Credit Loan Land Bank - Gangshan Branch Credit Loan Jih Sun Bank - Kaohsiung Branch Credit Loan Panhsin Bank - Hsin Hsing Branch Credit Loan Taishin International Bank - Lingya Branch Credit Loan Entie Bank - Kaohsiung Branch Credit Loan The Export-Import Bank of the Republic of China Credit Loan - Kaohsiung Branch Credit Loan Subtotal Total Range of Interest Rates (%)	$30,000 October 21, 2019~April 21, 2020 150,000 November 25, 2019~May 22, 2020 150,000 October 7, 2019~April 7, 2020 200,000 November 21, 2019~March 20, 2020 300,000 December 16, 2019~March 20, 2020 150,000 October 18, 2019~February 18, 2020 390,000 November 4, 2019~March 22, 2020 100,000 November 7, 2019~November 7, 2020 340,000 May 15, 2019~November 19, 2020 207,000 September 19, 2019~June 10, 2020 100,000 November 7, 2019~May 19, 2020 100,000 November 15, 2019~January 14, 2020 200,000 December 20, 2019~March 20, 2020 150,000 December 11, 2019~March 10, 2020 250,000 December 13, 2019~January 20, 2020 200,000 November 19, 2019~February 17, 2020 200,000 July 12, 2019~July 12, 2020 $3,217,000 $8,136,122 1.34%-3.98%	NTD 200,000 None NTD 619,800 None NTD 230,000 None NTD 613,700 None NTD 300,000 None NTD 600,000 None NTD 500,000 None NTD 100,000 None NTD 550,000 None NTD 1,180,000 None NTD 750,000 None NTD 550,000 None NTD 300,000 None NTD 230,000 None NTD 250,000 None NTD 400,000 None NTD 200,000 None NTD 7,573,500

Note 1: Please refer to Note 8 for the collaterals of the above short-term loans. Note 2: Exchange rate as of December 31, 2019: USD:NTD 1:29.98. Note 3: Credit lines shown above are the combined limits from each banks.

－124－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE

DECEMBER 31, 2019

Contract Period December 13, 2019~January 20, 2020 November 20, 2019~March 24, 2020 December 20, 2019~ February 18, 2020 November 8, 2019~February 11, 2020 December 13, 2019~ February 14, 2020	(In Thousands of New Taiwan Dollars) Issued Amount Discount Book Value Remark $100,000 $94 $99,906 200,000 445 199,555 50,000 115 49,885 100,000 195 99,805 150,000 311 149,689 $600,000 $1,160 $598,840 1.70%-1.80%	(In Thousands of New Taiwan Dollars) Issued Amount Discount Book Value Remark $100,000 $94 $99,906 200,000 445 199,555 50,000 115 49,885 100,000 195 99,805 150,000 311 149,689 $600,000 $1,160 $598,840 1.70%-1.80%

－125－

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

DECEMBER 31, 2019

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $399,491 216,198 $615,689	(In Thousands of New Taiwan Dollars) Amount Remark $399,491 216,198 $615,689
MEGA Bank (Note) Others Total	Trade payable Under 5%	$399,491 216,198
		$615,689

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

－126－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF ACCOUNTS PAYABLES

DECEMBER 31, 2019

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $153,013 98,318 93,664 29,146 122,277 $496,418 $333,615 5,901 $339,516
Unrelated parties: Company H Company I Company J Company K Others Total Related party: Shin Yang Steel Co., Ltd. Others Total	Trade payable Trade payable Trade payable Trade payable Under 5% Trade payable Under 5%	$153,013 98,318 93,664 29,146 122,277
		$496,418
		$333,615 5,901
		$339,516

－－ 127

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF LONG-TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS DECEMBER 31, 2019

Credior	Description 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	Amount $302,100 302,100 260,300 260,300 260,300 231,800 171,950 171,950 129,200 315,400 315,400 271,700 271,700 271,700 243,200 179,550 179,550 136,800 $4,275,000	Contract Period December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022 December 5, 2017~ December 5, 2022	(In Thousands of New Taiwan Dollars) Range of interest rate 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 None None None None None None None None None	(In Thousands of New Taiwan Dollars) Range of interest rate 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 None None None None None None None None None
Joint Loan of Mega Bank: Mega Bank - Gangdu Branch Chang Hwa Bank - Kaohsiung Branch Agricultural Bank - Sales Department Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch First Bank Hua Nan Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch Chang Hwa Bank - Kaohsiung Branch Agricultural Bank - sales Department Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch First Bank Hua Nan Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch Land Bank-Gangshan Branch Subtotal

－128－

Joint Loan of Taiwan Cooperative Bank:

Taiwan Cooperative Bank-Kaohsiung Branch
Pledge Loan
HUA NAN Bank - Gangshan Branch
Pledge Loan
Land Bank - Gangshan Branch
Pledge Loan
Mega Bank - Gangdu Branch
Pledge Loan
First Bank - Hsin Hsing Branch
Pledge Loan
Agricultural Bank - Sales Department
Pledge Loan
Shin Kong Bank - Chihsien Branch
Pledge Loan
SCSB - Qianjin Branch
Pledge Loan
Taishin International Bank - Lingya Branch
Pledge Loan
Chang Hwa Bank - Kaohsiung Branch
Pledge Loan
Taiwan Business Bank - Kaohsiung Branch
Pledge Loan
Entie Bank - Kaohsiung Branch
Pledge Loan
Taiwan Cooperative Bank - Kaohsiung Branch
Credit Loan
HUA NAN Bank - Gangshan Branch
Credit Loan
Land Bank - Gangshan Branch
Credit Loan
Mega Bank - Gangdu Branch
Credit Loan
First Bank - Hsin Hsing Branch
Credit Loan
Agricultural Bank - Sales Department
Credit Loan
Shin Kong Bank - Chihsien Branch
Credit Loan
SCSB - Qianjin Branch
Credit Loan
Taishin International Bank - Lingya Branch
Credit Loan
Chang Hwa Bank - Kaohsiung Branch
Credit Loan
Taiwan Business Bank - Kaohsiung Branch
Credit Loan
Entie Bank - Kaohsiung Branch
Credit Loan
Subtotal

$266,000
June 22, 2018~June 22, 2023
Land,
233,000
June 22, 2018~June 22, 2023
Land,
233,000
June 22, 2018~June 22, 2023
Land,
185,000
June 22, 2018~June 22, 2023
Land,
233,000
June 22, 2018~June 22, 2023
Land,
233,000
June 22, 2018~June 22, 2023
Land,
62,000
June 22, 2018~June 22, 2023
Land,
93,000
June 22, 2018~June 22, 2023
Land,
93,000
June 22, 2018~June 22, 2023
Land,
93,000
June 22, 2018~June 22, 2023
Land,
114,000
June 22, 2018~June 22, 2023
Land,
62,000
June 22, 2018~June 22, 2023
Land,
299,000
June 22, 2018~June 22, 2023
None
257,000
June 22, 2018~June 22, 2023
None
257,000
June 22, 2018~June 22, 2023
None
205,000
June 22, 2018~June 22, 2023
None
257,000
June 22, 2018~June 22, 2023
None
257,000
June 22, 2018~June 22, 2023
None
68,000
June 22, 2018~June 22, 2023
None
102,000
June 22, 2018~June 22, 2023
None
102,000
June 22, 2018~June 22, 2023
None
102,000
June 22, 2018~June 22, 2023
None
126,000
June 22, 2018~June 22, 2023
None
68,000
June 22, 2018~June 22, 2023
None
$4,000,000

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 Land, plant, machinery and equipment Land, plant, machinery and equipment

－－ 129

Taiwan Business Bank - Kaohsiung Branch
Pledge Loan
Mega Bank - Gangdu Branch
Pledge Loan
Mega Bank - Gangdu Branch
Pledge Loan
Mega Bank - Gangdu Branch
Pledge Loan
Taiwan Bank - Gangshin Branch
Pledge Loan
First Bank - Hsin Hsing Branch
Pledge Loan
First Bank - Hsin Hsing Branch
Pledge Loan
Taiwan Cooperative Bank - Kaohsiung Branch
Pledge Loan
Subtotal of Pledge Loan
Obank - Kaohsiung Branch
Credit Loan
CTBC Bank - Ethnic branch
Credit Loan
Subtotal
Total
Less: unamortized syndicated loan arrangement
fee
Less: Current portion of long-term loans
Balance of long-term loans
Range of interest rates

$76,900 January 21, 2015~ January 21, 2022
Land, buildings
220,000 October 16, 2014~ October 16, 2021
Land, buildings
370,000 August 12, 2016~August 12, 2021
Land, buildings
560,000 August 12, 2016~August 12, 2021
Land, buildings
60,000 May 16, 2017~May 16, 2021
Land, plants
69,200 July 29, 2013~ July 29, 2028
Buildings
73,280 August 3, 2016~ July 15, 2030
Buildings
80,000 October 9, 2014~ October 9, 2021
Land
$1,509,380
$112,000 August 13, 2018~August 13, 2021
None
76,667 June 25, 2018~June 25, 2020
None
$188,667
$9,973,047
(17,442)
(1,636,335)
$8,319,270
1.82%~2.25%

－130－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $196,194 6 years 1.9661 22,586 $218,780 (9,639) 209,141	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $196,194 6 years 1.9661 22,586 $218,780 (9,639) 209,141	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 3 to 32 years 1.9661 $196,194 6 years 1.9661 22,586 $218,780 (9,639) 209,141
3 to 32 years 6 years	1.9661 1.9661	$196,194 22,586
		$218,780 (9,639)
		209,141

－131－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF GUARANTEE DEPOSITS

DECEMBER 31, 2019

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $2,000 100 $2,100	(In Thousands of New Taiwan Dollars) Amount Remark $2,000 100 $2,100
Guarantee deposits Total	Sales deposits from customers Others	$2,000 100
		$2,100

－132－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF NET REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars)

Item	Quantity (tons)	Amount
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	49,214 452 704,010 216,807 1,688 35,020 36,487	$828,452 10,865
		$839,317
		$15,327,061 6,767,853 21,016
		$22,115,930
		$119,464 352,332
		$23,427,043
		$1,646,688
		$25,073,731 (29,986) - (72,731)
		$24,971,014

－133－

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

FOR THE YEAR ENDED DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars) Item 2019 Steel Department Beginning raw materials $1,050,100 Add: Raw materials purchased 19,458,213 Freight expenses 121,812 Less:Ending raw materials (1,444,900) Transfer to operating expenses (127,771) Transfer to finished goods (2,454) Raw materials sold (838,297) Raw materials used $18,216,703 Beginning supplies $16,751 Add: Supplies purchased 765,130 Less: Ending supplies (17,492) Transfer to operating expenses (764,389) Supplies used $- Add: Direct labor $247,747 Factory overheads 2,674,436 Production cost $21,138,886 Beginning work in progress 615,762 Add: Transfer from finished goods 60,916 Less: Ending work in progress (510,236) Scraps and by-products (324,249) Cost of finished goods $20,981,079 Beginning finished goods $1,777,684 Add: Transfer from raw material 2,454 Less: Ending finished goods (1,191,650) Transfer from processing cost (138,201) Transfer to operating expenses (162,516) Transfer to work in progress (60,916) Cost of finished goods sold $21,207,934	(In Thousands of New Taiwan Dollars) Item 2019 Steel Department Beginning raw materials $1,050,100 Add: Raw materials purchased 19,458,213 Freight expenses 121,812 Less:Ending raw materials (1,444,900) Transfer to operating expenses (127,771) Transfer to finished goods (2,454) Raw materials sold (838,297) Raw materials used $18,216,703 Beginning supplies $16,751 Add: Supplies purchased 765,130 Less: Ending supplies (17,492) Transfer to operating expenses (764,389) Supplies used $- Add: Direct labor $247,747 Factory overheads 2,674,436 Production cost $21,138,886 Beginning work in progress 615,762 Add: Transfer from finished goods 60,916 Less: Ending work in progress (510,236) Scraps and by-products (324,249) Cost of finished goods $20,981,079 Beginning finished goods $1,777,684 Add: Transfer from raw material 2,454 Less: Ending finished goods (1,191,650) Transfer from processing cost (138,201) Transfer to operating expenses (162,516) Transfer to work in progress (60,916) Cost of finished goods sold $21,207,934
Steel Department Beginning raw materials Add: Raw materials purchased Freight expenses Less:Ending raw materials Transfer to operating expenses Transfer to finished goods Raw materials sold Raw materials used Beginning supplies Add: Supplies purchased Less: Ending supplies Transfer to operating expenses Supplies used Add: Direct labor Factory overheads Production cost Beginning work in progress Add: Transfer from finished goods Less: Ending work in progress Scraps and by-products Cost of finished goods Beginning finished goods Add: Transfer from raw material Less: Ending finished goods Transfer from processing cost Transfer to operating expenses Transfer to work in progress Cost of finished goods sold	$1,050,100 19,458,213 121,812 (1,444,900) (127,771) (2,454) (838,297)
	$18,216,703
	$16,751 765,130 (17,492) (764,389)
	$-
	$247,747 2,674,436
	$21,138,886 615,762 60,916 (510,236) (324,249)
	$20,981,079
	$1,777,684 2,454 (1,191,650) (138,201) (162,516) (60,916)
	$21,207,934

－134－

Cost adjustment items： Allowance for inventory valuation loss Unallocated fixed factory overhead Purchase discounts 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 Allowance for inventory valuation loss Loss on purchase and contract loss (gain on recovery) Total operating cost for Heavy Industry Department Total operating cost	$144,480 128,101 (27,856)
	$21,452,659
	$838,297 321,798 138,201
	$22,750,955
	$1,554,784 828 (1,410)
	$1,554,202
	$24,305,157

－135－

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

FOR THE YEAR ENDED DECEMBER 31, 2019

Item Payroll expense Insurance expense Entertain expense Depreciation Employee benefits/welfare Professional service fee Pension Transportation expense Other expenses (Note) Total	Sales and marketing expenses $136,984 17,836 12,991 12,024 6,174 7,681 8,407 659,558 43,673 $905,328	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $173,176 $310,160 21,836 39,672 11,846 24,837 18,521 30,545 7,221 13,395 8,834 16,515 9,920 18,327 - 659,558 81,430 125,103 $332,784 $1,238,112	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $173,176 $310,160 21,836 39,672 11,846 24,837 18,521 30,545 7,221 13,395 8,834 16,515 9,920 18,327 - 659,558 81,430 125,103 $332,784 $1,238,112
			$310,160 39,672 24,837 30,545 13,395 16,515 18,327 659,558 125,103
			$1,238,112

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

－136－

AI assistant

YP — Audit Report / Information 2019

51950_rns_2019-11-13_5fe85930-3d32-43e2-a3fb-c99c800d3d75.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, 2019 AND 2018

1 GENERAL INFORMATION

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

The Company as lessor

3.2 Effect of new, revised or amendments IFRSs as endorsed by the FSC but not yet adopted by the Company:

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

4.5 Cash and cash equivalents

4.6 Financial instruments

4.7 Inventories

4.8 Non-current assets held for sale

4.9 Investments accounted for using equity method / subsidiaries and associates

4.10 Property, Plant and Equipment

4.11 Leases

2019

4.12 Investment properties

4.13 Impairment of non-financial assets

4.14 Provisions

4.15 Employee benefits

4.16 Share capital

4.17 Income tax

4.18 Revenue Recognition

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 (applied to 2019)

5.2 Critical accounting estimates and assumptions

(1) Estimated impairment of financial assets

(2) Process of fair value measurement and evaluation

(3) Impairment assessment of tangible and intangible assets

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

(5) Realisability of deferred tax assets

(6) Evaluation of inventories

(7) Calculation of accrued pension obligations

(8) Tenant's increase in borrowing interest rate

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

6.2 Financial assets at fair value through profit or loss

6.3 Notes receivable, net

6.4 Accounts receivable, net

6.5 Other receivables

6.6 Inventories and operating cost

6.7 Prepayments

6.8 Noncurrent assests held for sale / Liabilties 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:

B.Statements of Comprehensive Income

6.11 Property, Plant and Equipment

6.12 Lease Agreement

B. Lease liabilities - 2019

YP Audit Report / Information 2019