YP - Interim / Quarterly Report 2022

Stock Code: 2023

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 AND INDEPENDENT AUDITORS’ REVIEW 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’ Review Report	3
4.Consolidated Balance Sheets	4
5.Consolidated Statements of Comprehensive Income	5
6.Consolidated Statements of Changes in Equity	6
7.Consolidated Statements of Cash Flows	7
8.Notes to Consolidated Financial Statements
(1) General Information	8
(2) The Authorization of the Consolidated Financial Statements	8
(3) Application of New and Amended Standards and Interpretations	8~11
(4) Summary of Significant Accounting Policies	11~18
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	18
(6) Details of Significant Accounts	18~56
(7) Related Party Transactions	56~65
(8) Pledged Assets	65
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	65~66
(10) Significant Disaster Loss	66
(11) Significant Subsequent Events	67
(12) Others	67~79
(13) Supplementary Disclosures	80
A. Significant transactions information	81~90
B. Information on investees	91~97
C. Information on investments in Mainland China	98~99
D. Major shareholders	100
(14)Segment information	101~103

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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’ Review Report

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Yieh Phui Enterprise Co., Ltd. and subsidiaries (the “Group”) as of June 30, 2022 and 2021, the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2022 and 2021, the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies (together “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standards 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission (FCS) of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as disclosed in basis for qualified conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Basis for Qualified Conclusion

As disclosed in Note 4.3 to the consolidated financial statements, the financial statements of non-significant subsidiaries were consolidated based on their unreviewed financial statements as of and for the same periods. These subsidiaries’ total assets amounted to $37,790,601 thousand and $11,082,242 thousand, representing 38.65% and 12.12% of the consolidated assets, and their total liabilities amounted to $21,995,554 thousand and $5,413,574 thousand, representing 34.32% and 8.86% of the consolidated liabilities as of June 30, 2022 and 2021, respectively. And their total comprehensive income (loss) amounted to ($93,034) thousand, $168,579 thousand, ($94,371) thousand, and $156,594 thousand, representing (89.26%), 11.67%, (5.62%), and 6.37% of the consolidated comprehensive income (loss) for the three months and six months ended June 30, 2022 and 2021, respectively. In addition, as described in Note 6.10 to the consolidated financial statements, the financial statements of investments accounted for using equity method were not reviewed by independent accountants. The carrying values of these investments amounted to $16,580,467 thousand and $15,014,583 thousand, representing 16.96% and 16.42% of the consolidated assets as of June 30, 2022 and 2021, respectively, and share of profit (loss) of these associates accounted for using equity method amounted to $428 thousand, $370,155 thousand, $294,630 thousand, and $412,046 thousand, representing 0.07%, 23.94%, 14.48%, and 13.96% of total consolidated income before income tax for the three months and six months ended June 30, 2022 and 2021, respectively. In addition, share of other comprehensive income of these associates accounted for using equity method amounted to ($107,024) thousand, $350,418 thousand, $35,419 thousand, and $333,395 thousand, representing 40.64%, 130.51%, 18.82%, and 197.76% of total consolidated comprehensive income for the three months and six months ended June 30, 2022 and 2021, respectively. These amounts were recognized solely based on these investees’ unreviewed financial statements for the same periods. The information related to above subsidiaries, and investees accounted for under the equity method disclosed in Note 13 was also not reviewed by independent accountants.

Qualified Conclusion

Based on our reviews, except for the effects of any adjustments as might have been determined to be necessary had the financial statements and related information of the Company’s non-significant subsidiaries and investees accounted for using equity method described in basis for qualified conclusion paragraph, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2022 and 2021, its consolidated financial performance for the three months and six months ended June 30, 2022 and 2021, and its consolidated cash flows for the six months ended June 30, 2022 and 2021, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by the Financial Supervisory Commission (FSC) of the Republic of China.

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

Crowe (TW) CPAs Kaohsiung, Taiwan Republic of China

August 8, 2022

Notice to Readers

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

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

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YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(The Consolidated Balance Sheets as of June 30, 2022 and 2021 Were Reviewed Only, Not Audited in Accordance with the Generally Accepted Auditing Standards in the Republic of China) (In Thousands of New Taiwan Dollars)

Assets	Note	June 30,2022	June 30,2022	December31,2021	December31,2021	June 30,2021 Amount ％ $3,374,709 4 333,194 - 98,341 - 340,390 - 3,195,968 3 397,785 1 249,007 - 4,448 - 3,791 - 12,642,324 14 4,287,912 5 1,671,779 2 26,599,648 29 675,794 1 15,014,583 16 46,752,990 51 475,611 1 56,959 - 343,322 - 764,852 1 24,351 - 199,192 - 12,929 - 505,654 1 64,826,237 71 $91,425,885 100
		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 Other receivables - related parties Current tax assets Inventories Prepayments Other financial assets - current Total Current Assets NONCURRENT ASSETS 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 assets Investment properties Intangible assets Deferred tax assets Other noncurrent assets Refundable deposits Net defined benefit assets - noncurrent Other financial assets - noncurrent Total Noncurrent Assets TOTAL ASSETS	6(1) 6(2) 6(29) 6(3) 6(4) 7 6(5) 7 6(6) 6(7) 6(8) 6(9) 6(10) 6(11) 6(12) 6(13) 6(14) 6(15) 6(16) 8	$7,978,867 9 79,058 - 121,302 - 113,893 - 2,312,269 2 425,577 - 245,179 - 37,179 - 11,001 - 14,603,110 15 3,719,854 4 1,760,208 2		$7,209,529 289,451 117,272 441,324 2,241,654 171,786 290,915 109,370 115,592 14,055,171 2,720,948 1,131,517	8 - - - 3 - - - - 15 3 1	$3,374,709 333,194 98,341 340,390 3,195,968 397,785 249,007 4,448 3,791 12,642,324 4,287,912 1,671,779
		31,407,497 32		28,894,529	30	26,599,648
		726,636 1 16,580,467 17 46,507,163 48 485,866 - 129,987 - 337,899 - 946,079 1 5,201 - 58,278 - 1,263 - 588,888 1		797,724 15,993,554 46,844,013 497,125 56,959 359,251 997,026 6,821 59,834 1,220 632,997	1 17 49 1 - - 1 - - - 1	675,794 15,014,583 46,752,990 475,611 56,959 343,322 764,852 24,351 199,192 12,929 505,654
		66,367,727	68	66,246,524	70	64,826,237
		$97,775,224	100	$95,141,053	100	$91,425,885

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Liabilities and Equity	Note	June 30,2022	June 30,2022	December31,2021	December31,2021	June 30,2021	June 30,2021
		Amount	％	Amount	％	Amount	％
CURRENT LIABILITIES 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 Lease liabilities - current Current portion of long-term loans Total Current Liabilities NONCURRENT LIABILITIES Long-term loans Deferred tax liabilities Lease liabilities - noncurrent Long-term deferred revenue Net defined benefit liability - noncurrent Guarantee deposits Total Noncurrent Liabilities TOTAL LIABILITIES EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT Share capital Common stock Stock dividend to be distributed Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Total equity attributable to owners of the parent NON-CONTROLLING INTERESTS Total Equity TOTAL LIABILITIES AND EQUITY	6(17) 6(18) 6(2) 6(29) 7 6(19) 6(20) 6(12) 6(21) 6(21) 6(12) 6(22) 6(24) 6(25) 6(26) 6(27) 6(28)	$16,484,351 1,603,669 1,401 1,455,518 1,454,478 1,142,048 58,647 2,724,328 551,816 110,763 13,395 4,630,039	17 2 - 1 1 1 - 3 1 - - 5	$13,905,468 1,356,226 - 3,062,400 1,508,569 1,692,375 6,494 2,373,932 777,146 135,039 13,713 4,645,390	15 1 - 3 2 2 - 2 1 - - 5	$16,008,811 1,328,183 11,506 2,303,056 1,305,953 1,477,786 175,482 1,686,912 296,030 95,871 7,428 2,880,586	18 1 - 3 1 2 - 2 - - - 3
		30,230,453 31		29,476,752	31	27,577,604	30
		33,182,773 124,044 66,617 26,513 445,093 17,236	34 1 - - - -	32,027,032 140,801 78,393 25,896 477,441 19,113	33 - - - 1 -	33,020,797 2,586 70,124 27,656 415,278 20,431	36 - - - 1 -
		33,862,276	35	32,768,676	34	33,556,872	37
		64,092,729 66		62,245,428	65	61,134,476	67
		18,905,695 945,285 4,928,948 3,393,805 785,047 4,184,664 (852,161)	19 1 5 3 1 5 (1)	18,905,695 - 4,928,849 2,882,426 706,593 5,113,787 (1,032,962)	20 - 5 3 1 6 (1)	18,905,695 - 4,929,007 2,866,052 559,232 2,426,479 (780,986)	21 - 5 3 1 2 (1)
		32,291,283 1,391,212	33 1	31,504,388 1,391,237	34 1	28,905,479 1,385,930	31 2
		33,682,495	34	32,895,625	35	30,291,409	33
		$97,775,224	100	$95,141,053	100	$91,425,885	100

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

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

(Reviewed Only, Not Audited in Accordance with the Generally Accepted Auditing Standards in the Republic of China) (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Item	Note	Three Months Ended June 30	Three Months Ended June 30	Three Months Ended June 30	Six Months Ended June 30	Six Months Ended June 30	Six Months Ended June 30
		2022		2021	2022		2021
		Amount	%	Amount % $23,129,569 100 (20,403,908) (88) 2,725,661 12 (874,766) (4) (399,390) (2) (24,559) - (5) - (1,298,720) (6) 1,426,941 6 3,551 - 71,520 1 30,752 - (356,816) (2) 370,155 2 119,162 1 1,546,103 7 (369,552) (2) 1,176,551 5 6,216 - 429,907 2 (112,075) (1) (79,489) - 23,948 - 268,507 1 $1,445,058 6 $1,169,185 5 7,366 - $1,176,551 5 $1,437,340 6 7,718 - $1,445,058 6 $0.62 $0.62	Amount	%	Amount % $41,819,844 100 (37,099,528) (89) 4,720,316 11 (1,514,410) (3) (665,268) (2) (50,222) - (8) - (2,229,908) (5) 2,490,408 6 7,253 - 114,344 - 547,505 1 (619,310) (1) 412,046 1 461,838 1 2,952,246 7 (662,348) (2) 2,289,898 5 (18,769) - 407,987 1 (176,177) (1) (74,592) - 30,140 - 168,589 - $2,458,487 5 $2,273,404 5 16,494 - $2,289,898 5 $2,448,352 5 10,135 - $2,458,487 5 $1.20 $1.20
OPERATING REVENUE OPERATING COST GROSS PROFIT OPERATING EXPENSES Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain (loss) Total operating expenses INCOME (LOSS) FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income Other income Other gains and losses Finance costs Share of profit (loss) of associates and joint ventures Total non-operating income and expenses INCOME (LOSS) BEFORE INCOME TAX INCOME TAX (EXPENSE) BENEFIT NET INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations Share of other comprehensive income (loss) of associates and joint ventures Income tax benefit (expense) related to items that may be reclassified subsequently to profit or loss Total other comprehensive income (loss), net of income tax TOTAL COMPREHENSIVE INCOME (LOSS) NET INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent Non-controlling interests Total TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Shareholders of the parent Non-controlling interests Total EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share Diluted earnings (loss) per share	6(29) 6(6) 6(31) 6(32) 6(33) 6(34) 6(35) 6(36) 6(37) 6(37)	$22,967,005 (20,274,448)	100 (88)		$46,115,164 (40,427,914)	100 (88)
		2,692,557 (1,305,777) (535,978) (30,300) (4)	12 (6) (2) - -		5,687,250 (2,613,765) (1,009,388) (58,668) 51	12 (6) (2) - -
		(1,872,059)	(8)		(3,681,770)	(8)
		820,498	4		2,005,480	4
		19,422 65,148 145,911 (409,382) 428	- - 1 (2) -		21,381 229,755 282,643 (799,635) 294,630	- - 1 (2) 1
		(178,473)	(1)		28,774	-
		642,025 (274,461)	3 (1)		2,034,254 (542,005)	4 (1)
		367,564	2		1,492,249	3
		(54,953) (210,605) (124,640) 103,581 23,283	- (1) (1) - (1)		(55,605) (191,143) 264,517 226,562 (56,103)	(1) - 1 - -
		(263,334)	(1)		188,228	-
		$104,230	1		$1,680,477	3
		$421,920 (54,356)	2 -		$1,558,089 (65,840)	3 -
		$367,564	2		$1,492,249	3
		$155,483 (51,253)	1 -		$1,738,890 (58,413)	3 -
		$104,230	1		$1,680,477	3
		$0.22			$0.82
		$0.22			$0.82

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

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YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Reviewed Only, Not Audited in Accordance with the Generally Accepted Auditing Standards in the Republic of China)

(In Thousands of New Taiwan Dollars)

shar	e capital	Capital Surplus		Retained Earnings	Retained Earnings		Other EquityItem	Total Equity Attributable to Shareholders of theparent	Non-controlling Interests	Total Equity
Common Stock	Stock dividend to be distributed		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
$18,905,695 - - -	$ - - - -	$4,929,007 - - -	$2,866,052 - - -	$559,232 - - -	$163,734 (2,179) 2,273,404 -	($1,187,536) - - (211,787)	$226,643 - - 368,782	$26,469,211 (2,179) 2,273,404 174,948	$1,361,903 $27,831,114 (13) (2,192) 16,494 2,289,898 (6,359) 168,589
-	-	-	-	-	2,273,404	(211,787)	368,782	2,448,352	10,135	2,458,487
- - -	- - -	- - -	- - -	- - -	(9,905) - 1,425	- - -	- - (1,425)	(9,905) - -	9,905 - 4,000 - 4,000 -
$18,905,695	$-	$4,929,007	$2,866,052	$559,232	$2,426,479	($1,399,323)	$612,000	$28,905,479	$1,385,930	$30,291,409
$18,905,695 - - - - - - -	$ - $4,928,849 - - - - - - 945,285 - - 99 - - - -		$2,882,426 511,379 - - - - - -	$706,593 - 78,454 - - - - -	$5,113,787 (511,379) (78,454) (945,285) (945,285) 4,820 1,558,089 -	($1,426,033) - - - - - - 425,030	$386,525 - - - - - - (245,066)	$31,504,388 - - (945,285) - 4,919 1,558,089 180,801	$1,391,237 $32,895,625 - - - - - (945,285) - - 215 5,134 (65,840) 1,492,249 7,427 188,228
-	-	-	-	-	1,558,089	425,030	(245,066)	1,738,890	(58,413)	1,680,477
- -	- -	- -	- -	- -	(11,629) -	- -	- -	(11,629) -	11,629 - 46,544 46,544
$18,905,695	$945,285 $4,928,948		$3,393,805	$785,047	$4,184,664	($1,001,003)	$141,459	$32,291,283	$1,391,212	$33,682,495

－－ 6

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Reviewed Only, Not Audited in Accordance with the Generally Accepted Auditing Standards in the Republic of China)

(In Thousands of New Taiwan Dollars)

(In Thousands of New Taiwan Dollars)
Item	Six Months Ended June 30 2022 2021 $2,034,254 $2,952,246 1,153,573 941,956 22,786 17,943 (51) 8 8,545 (5,683) 799,635 619,310 (21,381) (7,253) (4,561) (13,954) (294,630) (412,046) 3,618 (1,081) 10,730 2,968 - (10,173) - (539,330) (241) - (126) (108) 1,677,897 592,557 (33,719) (12,164) (4,023) 237,449 327,477 232,422 (68,260) (1,335,012) (256,170) (212,940) 104,313 (47,295) (547,939) (4,110,217) (1,030,462) (778,852) (317,881) (66,510) (43) (2,152) (1,826,707) (6,095,271) (1,606,882) 183,452 (54,091) 836,193 (498,174) 657,354 (350,570) (5,123) (24,276) 2,069 (32,348) (24,458) (2,566,341) 1,649,487 (4,393,048) (4,445,784)
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit gain (loss) Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of (gain) loss of associates and joint ventures Loss (gain) on disposal and retirement of property, plant and equipment Transfer of property, plant and equipment to expenses Loss (gain) on disposal of investment properties Loss (gain) on disposal of noncurrent assets held for sale Loss (gain) on disposal of Investments accounted for using equity method Others Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities Net changes in operating assets: Decrease (increase) in financial assets at fair value through profit or loss Decrease (increase) in contract assets Decrease (increase) in notes receivable Decrease (increase) in accounts receivables Decrease (increase) in accounts receivables - related parties Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments Decrease (increase) in other financial assets Decrease (increase) in other operating assets Total net changes in operating assets Net changes in operating liabilities: Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payables Increase (decrease) in provisions Increase (decrease) in net defined benefit liability Total net changes in operating liabilities Total net changes in operating assets and liabilities	$2,034,254 1,153,573 22,786 (51) 8,545 799,635 (21,381) (4,561) (294,630) 3,618 10,730 - - (241) (126)	$2,952,246 941,956 17,943 8 (5,683) 619,310 (7,253) (13,954) (412,046) (1,081) 2,968 (10,173) (539,330) - (108)
	1,677,897	592,557
	(33,719) (4,023) 327,477 (68,260) (256,170) 104,313 (547,939) (1,030,462) (317,881) (43)	(12,164) 237,449 232,422 (1,335,012) (212,940) (47,295) (4,110,217) (778,852) (66,510) (2,152)
	(1,826,707)	(6,095,271)
	(1,606,882) (54,091) (498,174) (350,570) (24,276) (32,348)	183,452 836,193 657,354 (5,123) 2,069 (24,458)
	(2,566,341)	1,649,487
	(4,393,048)	(4,445,784)

－－ 7

Item	Six Months Ended June 30	Six Months Ended June 30
	2022	2021
Total adjustments Cash generated from (used in) operations Interest received Dividends received Interest paid Income tax paid Net cash generated from (used in) operating activities 2.CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets measured at fair value through other comprehensive income and loss Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Proceeds from capital reduction of investees accounted for using equity method Proceeds from disposal of noncurrent assets held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Acquisition of intangible assets Proceeds from disposal of investment properties Increase in other financial assets Increase in other non-current assets Decrease in other non-current assets Net cash generated from (used in) investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Increase in short-term bills payable Increase in long-term loans Repayment of long-term loans Increase in guarantee deposits received Decrease in guarantee deposits received Repayments of principal of lease liabilities Increase in other noncurrent liabilities Decrease in other noncurrent liabilities Increase (decrease) in non-controlling interests Net cash generated from (used in) financing activities 4.EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 5.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6.CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 7.CASH AND CASH EQUIVALENTS AT END OF PERIOD	(2,715,151)	(3,853,227)
	(680,897) 21,378 10,722 (778,741) (682,603)	(900,981) 8,220 13,954 (634,868) (154,377)
	(2,110,141)	(1,668,052)
	- 15,484 (14,752) 7,600 184 - (808,123) 822 1,556 (1,434) - (266,701) - 1,620	29,925 847 (27,402) - - 629,374 (1,791,424) 55,933 23,703 (596) 53,982 (888,636) (3,582) -
	(1,063,744)	(1,917,876)
	2,578,883 247,100 9,498,747 (8,342,177) - (1,877) (5,776) 617 - 46,544	1,083,504 39,000 11,872,615 (9,827,248) 1,746 - (3,771) - (382) 4,000
	4,022,061	3,169,464
	(78,838)	60,391
	769,338 7,209,529	(356,073) 3,730,782
	$7,978,867	$3,374,709

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

－－ 7-1

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Amounts In Thousands of New Taiwan Dollars, Unless specified Otherwise) (Reviewed, Not Audited)

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. 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/prepainted/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 18th, 2011, and a total of 191 employees were transferred to Shin Yang Steel Co., Ltd.
1.5 For main operation activities of the Company and its subsidiaries (hereinafter referred to as “the Group”), please refer to Note 4.3.(2).
1.6 These consolidated financial statements are presented in the Company’s functional currency, New Taiwan Dollars.

2. THE AUTHORIZATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements were reported to the Board of Directors and approved for issue on August 8, 2022.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

(1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC):
New standards, interpretations and amendments endorsed by the FSC and effective from 2022 are as follows:

－－ 8

New, Amended or Revised Standards and Interpretations (the “New IFRSs”)[Effective Date Announced ] by IASB Amendments to IAS 16 “Property, Plant and Equipment: January 1, 2022 (Note 2) Proceeds Before Intended Use” Amendments to IAS 37 “Onerous Contract - Cost of January 1, 2022 (Note 3) Fulfilling a Contract” Amendments to IFRS 3 “Reference to the Conceptual January 1, 2022 (Note 4) Framework” Annual Improvements to IFRSs 2018-2020 January 1, 2022 (Note 5)

Note 1: Unless stated otherwise, the New IFRSs above are effective for annual periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented, January 1, 2021, in the financial statements in which the entity first applies the amendments.
Note 3: An entity shall apply these amendments to contracts for which it has not yet fulfilled all its obligations on January 1, 2022.
Note 4: These amendments apply to business combinations whose acquisition date occur during the annual reporting periods beginning on or after January 1, 2022.
Note 5: The amendments to IFRS 9 apply to financial liabilities that are modified or exchanged during the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 apply to fair value measurement on or after the beginning of the first annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 apply to the annual reporting periods beginning on or after January 1, 2022.
A. Amendments to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”
These amendments set out that proceeds from selling items produced while bringing an item of property, plant and equipment to the location and condition necessary for them to be capable of operating in the manner intended by management shall not be recognized as a deduction of the asset. Instead, the proceeds and the costs of those items, measured in accordance with IAS 2, shall be recognized in profit or loss in accordance with applicable IFRS Standards. In addition, the amendment also clarified that the normal operating cost of a test asset refers to the expenditure for assessing whether the technology and physical properties of the asset are sufficient to be used to produce or provide goods or services, lease to others, or for management purposes.
The Group shall apply these amendments retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Group first applies the amendments. The cumulative effect of initially applying the amendments shall be recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of that earliest period presented with comparative information restated.

－－ 9

B. Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract” The amendments set out that, when determining whether a contract is onerous, the cost of fulfilling a contract comprises (a) the incremental costs of fulfilling that contract (for example, direct labor and materials); and (b) an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling that contract among others).
C. Amendments to IFRS 3 “Reference to the Conceptual Framework”
The amendments update a reference to the Framework in IFRS 3 and require the acquirer shall apply IFRIC 21 for a levy that would be within the scope of IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date.
D. Annual Improvement to IFRSs 2018-2020
The annual improvements amend several Standards. Among which, the amendment to IFRS 9 clarifies that, in determining whether an exchange or modification of the terms of a financial liability is substantially different from the original one, only fees paid or received between the Group (the borrower) and the lender, including fees paid or received by either the Group or the lender on the other’s behalf, shall be included in the ‘10 percent’ test of discounting present value of the cash flows under the new terms.

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

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

by FSC:
New IFRSs Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendment to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”	Effective Date Announced by IASB
	January 1, 2023 January 1, 2023 January 1, 2023

A. Amendments to IAS 1 “Disclosure of Accounting Policies”
This amendment clarifies that when the scale or nature of a transaction, other event or situation is material, and the relevant accounting policy information is also material to the financial report, the relevant material accounting policy information should be disclosed. Conversely, if the enterprise determines that the scale or nature of a transaction, other event or situation is not significant or the relevant accounting policy information is not significant although it is significant, it does not need to disclose non-significant accounting policy information, but the enterprise prepares accounting the conclusion that the policy information is insignificant does not affect the relevant disclosures required by other IFRS standards.
B. Amendments to IAS 8 “Definition of Accounting Estimates” This amendment defines accounting estimates as the monetary amount of financial statements subject to measurement uncertainty, and provides further explanations, except for corrections due to errors in the previous period, the impact of changes in input values or measurement techniques on accounting estimates is a change in accounting estimates.

－－ 10

C. Amendment to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. When the Group initially applies the amendments, it will recognize the cumulative effect of the amendments applied initially as an adjustment to the opening balance of the retained earnings (or other components of equity, as appropriate) at the beginning of the earliest expression period , and re-edit the information during the comparison period.

As of the date the accompany consolidated financial statements are authorized for issue, the Group is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Group completes the evaluation.

(3)	The IFRSs issued by IASB but not yet endorsed and issued into New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial application IFRS 17 and IFRS 9 – Compare Information” Amendments to IAS 1 “Classification of Liabilities as Current or Noncurrent”	effect by FSC Effective Date Announced by IASB
		To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January1, 2023 (NOTE)

NOTE: The IASB has now tentatively decided to postpone the effective date of this amendment after January 1, 2024.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2021. These policies have been consistently applied to all the periods presented, unless otherwise stated.

4.1 Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed and issued into effect by the FSC. The consolidated financial statements should be read with the consolidated financial statements for the year ended December 31, 2021.

－－ 11

4.2 Basis of Preparation

(1) Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
A. Financial assets and financial liabilities at fair value through profit or loss (including derivative instruments).
B. Financial assets 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 consolidated financial statements in conformity with the IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

4.3 Basis of Consolidation

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

－－ 12

subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

(2) The subsidiaries in the consolidated financial statements:

		Percentage ofOwnership	Percentage ofOwnership
Investee / Subsidiary	Main Businesses	June 30, 2022	December 31, 2021	June 30, 2021
1. Yieh Phui Enterprise Co., Ltd. (the Company)
Good Honor Holdings	Investment	100.00%	100.00%	100.00%
Ltd.
Shin Yang Steel Co.,	Steel products related	100.00%	100.00%	100.00%
Ltd.	businesses
Yieh Phui (Hong	Investment	100.00%	100.00%	100.00%
Kong)
Holdings Limited
Yieh Hsing Enterprise	Wire roads trading	57.41%	57.41%	57.41%
Co., Ltd
Great Emperor Hotel	Hotel industry	60.15%	58.17%	58.17%
Co., Ltd.
Kings Garden	Leasing, sales, and	54.89%	54.89%	54.89%
International Co., Ltd.	development of
	residential and
	commercial buildings,
	department stores
Shin Phui Steel	Trading of steel	100.00%	100.00%	100.00%
Corporation	products
Worthing Honor	Investment	100.00%	100.00%	100.00%
Holdings Ltd.
Sin Bang Investment &	Investment	100.00%	100.00%	100.00%
Development Co., Ltd.
Gen-Wan Technology	Telecommunication	86.99%	86.99%	86.99%
Corp
Champion Logistic Inc.	Investment	-	-	89.66%
		(Please refer to Note 4.3. (2) (A) for		details)
EMMT Systems	Manufacturing and	78.51%	78.51%	78.51%
Corporation	marketing of military
	specification printed
	circuit boards
Kuo Chang Enterprise	Wholesale of	99.04%	99.04%	99.04%
Co., Ltd.	hardware
United Brightening	Technical consultation	95.56%	95.56%	95.56%
Development Corp.	for steel products
Hong Yuh Assets	Management service	80.00%	80.00%	80.00%
Management Co., Ltd.
Lian So (H.K) Co.,	Investment	80.00%	80.00%	80.00%
Limited
Yieh Phui America Inc.	Steel trading	100.00%	100.00%	100.00%
2. Hong Yuh Assets Management Co., Ltd.
Lien-Hsin Steel Co.,	Metal manufacturing	49.36%	49.36%	47.88%
Ltd.	industry
Lien-Sheng steel Co.,	Metal manufacturing	10.00%	10.00%	10.00%
Ltd.	industry
Lien-Heng Mining	Nickle mining	75.00%	75.00%	75.00%
Co., Ltd.
Lien-Hung Mining	Nickle mining	19.00%	19.00%	19.00%
Co., Ltd.

－－ 13

		Percentage ofOwnership	Percentage ofOwnership
Investee / Subsidiary	Main Businesses	June 30,2022	December31,2021	June 30,2021
Asiamax Mining	Nickle mining	100.00%	100.00%	100.00%
Indonesia
3. Gen-Wan Technology Corp.
EMMT Systems	Manufacturing and	7.48%	7.48%	7.48%
Corporation	marketing of military
	specification printed
	circuit boards
4. Yieh Phui (Hong Kong) Holdings Limited
Yieh Phui (China)	Manufacturing and	100.00%	100.00%	100.00%
Technomaterial Co.,	marketing of pickled,
Ltd.	cold rolled,
	galvanized and
	prepainted steel coils
5. Yieh Phui (China) Technomaterial Co., Ltd.
Tianjin Lianfa	Manufacturing and	100.00%	100.00%	100.00%
Precision	marketing of special
Steel Corporation	high grade alloy
Changshou ChangHuei	Trading of steel	100.00%	100.00%	100.00%
Trading Co.	products
6. EMMT Systems Corporation
Applied Wireless	RFID	88.69%	91.47%	91.47%
Identifications Group,
Inc.
Groupco Technology	Radio	49.97%	49.97%	49.97%
Inc.
7. Applied Wireless Identifications Group, Inc.
AWID Asia Co., Ltd.	Telecommunications	100.00%	100.00%	100.00%
	equipment wholesale
8. AWID Asia Co., Ltd.
AWID Changshou Co.,	Telecommunications	-	-	-
Ltd.	equipment
	wholesaling
		(Please refer to Note 4.3. (2) (A) for		details)
9. Shin Phui Steel Corporation
Groupco Technology	Radio	42.53%	42.53%	42.53%
Great Emperor Hotel	Hotel industry	0.01%	0.01%	0.01%
Co., Ltd.
Kings Garden	Leasing, sales, and	0.01%	0.01%	0.01%
International Co., Ltd.	development of
	residential and
	commercial buildings,
	and department stores
10. Yieh Hsing Enterprise	Co., Ltd.
Great Emperor Hotel	Hotel industry	39.84%	41.82%	41.82%
Co., Ltd.
Kings Garden	Leasing, sales, and	45.10%	45.10%	45.10%
International Co.,	development of
Ltd.	residential and
	commercial buildings,
	department stores
11. Kings Garden International Co., Ltd.
Yi Hua International	Leasing, selling and	-	-	70.00%
Co., Ltd.	development of
	residential and
	commercial buildings

(Please refer to Note 4.3. (2) (A) for details)

－－ 14

		Percentage ofOwnership	Percentage ofOwnership
Investee / Subsidiary	Main Businesses	June 30,2022	December31,2021	June 30,2021
Hua Li International	Wholesale of daily	100.00%	100.00%	100.00%
Co., Ltd.	necessities and
	cosmetics
12. United Brightening Development Corp.
Chao Ying	Investment	100.00%	100.00%	100.00%
Investment
Development Co.,
Ltd.
Champion Logistic	Investment	-	-	10.34%
Inc.
		(Please refer to Note 4.3. (2) (A) for		details)
13. Lian So (H.K) Co., Limited
Lien-Hsin Steel Co.,	Metal manufacturing	50.64%	50.64%	52.12%
Ltd.	industry
Lien-Sheng Steel Co.,	Metal manufacturing	90.00%	90.00%	90.00%
Ltd.	industry
Lian Yang (Hong	Trading business	100.00%	100.00%	100.00%
Kong) Trading
Limited
14. Lien-Hsin Steel Co., Ltd.
Lien-Heng Mining	Nickle mining	25.00%	25.00%	25.00%
Co., Ltd. (Note)
Lien-Hung Mining	Nickle mining	81.00%	81.00%	81.00%
Co., Ltd. (Note)

(Note): Due to legal restriction within the local jurisdiction, 25% shareholding of Lien-Heng Mining Co., Ltd. and 51% shareholding of Lien-Hung Mining Co., Ltd. are registered temporarily under the name of a third-party; in order that the rights be secured, the third-party has pledged all shares under his/her name to the Group through a contract agreement.
A. Increase and decrease in consolidated subsidiaries:
- Yi Hua International Co., Ltd., Champion Logistic Inc. and AWID Changshou Co., Ltd. had been liquidated in December 2021, July 2021, and June 2021, respectively.
B. Except for Yieh Hsing Enterprise Co., Ltd., Yieh Phui (Hong Kong) Holdings Limited, and Yieh Phui (China) Technomaterial Co., Ltd., the financial statements of subsidiaries consolidated above were not reviewed for the six months ended June 30, 2022.
- Except for Yieh Hsing Enterprise Co., Ltd., Kings Garden International Co., Ltd., Great Emperor Hotel Co., Ltd., Yieh Phui (Hong Kong) Holdings Limited, and Yieh Phui (China) Technomaterial Co., Ltd., the financial statements of subsidiaries consolidated above were not reviewed for the six months ended June 30, 2021.
(3) Subsidiaries not consolidated in the consolidated financial statements: None.
(4) Adjustments for subsidiaries with different accounting periods: None.
(5) Major restrictions:
As of June 30, 2022, December 31, 2021, and June 30, 2021, cash and bank deposits of $4,385,421 thousand, $4,073,600 thousand, and $1,006,104 thousand, respectively are deposited in China and subject to the local foreign exchange

－－ 15

control. Such foreign exchange control restricts fund remitting out from China (except for regular dividends).

(6) Securities issued by the parent company and held by subsidiaries: None.
(7) Information about subsidiaries with significant non-controlling interests: June 30, 2022：

June 30, 2022：
Name of Subsidiary Yieh Hsing Enterprise Co., Ltd. Others Total December 31, 2021： Name of Subsidiary Yieh Hsing Enterprise Co., Ltd. Others Total June 30, 2021： Name of Subsidiary Yieh Hsing Enterprise Co., Ltd. Others Total	Shareholding % 42.59% Shareholding % 42.59% Shareholding % 42.59%	Non-controlling interests $922,842 468,370 $1,391,212 Non-controlling interests $989,639 401,598 $1,391,237 Non-controlling interests $999,528 386,402 $1,385,930	Net income (loss) attributable to Non- controlling interests
			($73,649) 7,809
			($65,840)
			Net income (loss) attributable to Non- controlling interests
			$5,605 12,010
			$17,615
			Net income (loss) attributable to Non- controlling interests
			$11,098 5,396
			$16,494

Please refer to Table 7 and Table 8 in Note 13 for the main operation location and countries of registration of the subsidiaries listed above.

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

Yieh HsingEnterprise Co.,	Yieh HsingEnterprise Co.,	Ltd.
June 30,2022 $2,860,277 9,938,122 3,634,306 1,867,473 $7,296,620	December 31,2021 $3,074,824 10,073,777 3,541,478 2,153,660 $7,453,463	June 30,2021
		$2,340,614 10,353,224 2,846,733 2,370,424
		$7,476,681

－－ 16

b. Statements of Comprehensive Income：

Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Total comprehensive income (loss) attributable to non-controlling interests Dividends paid to non-controlling interests

Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries	Yieh Hsing Enterprise Co., Ltd. and its Subsidiaries
Three Months	Ended June 30
2022 $2,229,822 ($132,673) (33) ($132,706) ($56,517) $ -	2021
	$1,753,638
	$7,865 3,546
	$11,411
	$4,860
	$ -

Yieh Hsing Enterprise Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.
Six Months Ended June 30
2022 $4,092,419 ($172,932) 3,829 ($169,103) ($72,018) $ -	2021
	$3,426,232
	$26,059 2,817
	$28,876
	$12,298
	$ -

c. Statements of Cash Flows：

Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of the period

Cash and cash equivalents, end of the period

Yieh Hsing Enterprise Co., Ltd.	Yieh Hsing Enterprise Co., Ltd.
Six Months Ended June 30
2022 $534,157 (181,815) (191,870) $160,472 251,318 $411,790	2021
	$550,648 (22,905) (447,091)
	80,652 208,795
	$289,447

4.4 Retirement benefits

The pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

－－ 17

4.5 Income taxes

Income tax expense represents the sum of current tax and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings. The effect of a change in tax rate resulting from a change in tax law is recognized consistently with the accounting for the transaction itself which gives rise to the tax consequence, and this is recognized in profit or loss, other comprehensive income or directly in equity in full in the period in which the change in tax rate occurs.

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

The same critical accounting judgments and key sources of estimates and uncertainty have been followed Note 5 in these consolidated financial statements as those applied in the preparation of the consolidated financial statements for the year ended December 31, 2021.

6. DETAILS OF SIGNIFICANT ACCOUNTS

Except for the following, please refer to Note 6 to the consolidated financial statements for the year ended December 31, 2021.

6.1 Cash and cash equivalents

Item Cash on hand Checking account Demand deposits Time deposits (with original maturities within three months) NT$5000 stimulus vouchers and Kaohsiung stimulus vouchers Total	June 30,2022 $10,356 1,106,916 5,345,377 1,516,218 - $7,978,867	December 31,2021 $12,285 1,120,200 5,871,748 169,380 35,916 $7,209,529	June 30,2021
			$10,475 772,965 2,559,909 31,360 -
			$3,374,709

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

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

Item Financial assets - current: Non-derivative financial assets mandatorily measured at FVTPL Mutual funds Domestic unlisted preferred stocks Total	June 30, 2022 December 31, 2021 $79,058 $28,449 - 261,002 $79,058 $289,451	June 30, 2021
		$48,547 284,647
		$333,194

－－ 18

Financial liabilities - current: Derivatives Forward exchange contracts Exchange interest rate swap contracts Total	$ 505 896 $1,401	$ - $11,506 - - $- $11,506

1.The Group had no financial assets at fair value through profit or loss pledged to others.

2.Please refer to Note 12(3) for credit risk management and evaluation method.

3.The Group enters derivatives to hedge exchange rate risk of assets denominated in foreign currencies. However, as the Group does not plan on adopting hedge accounting, those contracts are accounted for as financial instruments at fair value through profit or loss upon initial recognition. Outstanding contracts are as follows: A. Forward exchange contracts:

	June 30, 2022：
						Contract Amount (in
	Currency	Contract Period			Execution Rate		thousands)
	USD(BUY) RMB(SELL)	May May	24, 26,	2022 to 2023		6.6885	USD 10,000
	December 31, 2021：None.
	June 30, 2021：
						Contract Amount (in
	Currency	Contract Period			Execution Rate		thousands)
	USD(BUY) RMB(SELL)	July July	15, 15,	2020 to 2021		6.4656	USD 5,000
B.	Exchange interest	rate swap contracts:
	June 30, 2022：
			Contract Amount		(in	Interest rate	Charge interest rate
Currency	Contract period			thousands)		paid	range
USD(BUY)	May 24, 2022 to			USD 10,000		1%	0%
RMB(SELL)	March 10, 2023
	December 31, 2021：None.
	June 30, 2021：None.

6.3 Notes receivable, net

Notes receivable, net
Item At amortized cost Notes receivable Less: Loss allowance Net	June 30,2022 $113,897 (4) $113,893	December 31,2021 $441,374 (50) $441,324	June 30,2021
			$340,437 (47)
			$340,390

As of June 30, 2022, December 31, 2021, and June 30, 2021, the Group pledged part of its notes receivable as collateral for its borrowings. Please refer to Note 8.
Please refer to Note 7.3.5 for accounts receivable with related parties.

－－ 19

Please refer to Note 6.4 for the relevant disclosure of loss allowance for notes receivable.
The Group has transferred the endorsement of the bank acceptance bills to the suppliers to pay the accounts payable and the endorsement was transferred to the bank for discounting. As the risks and rewards of the notes have been transferred, the Group has derecognized the bank acceptance bills and the corresponding accounts payable. The suppliers and the bank still have the right to request the Group to settle the payment if the outstanding bank acceptance notes are not fulfilled at the end of the period. Therefore, the Group continues to participate in the notes. The Group’s maximum loss of the continued involvement in the derecognized bank acceptance bills is the amount of bank acceptance bills that have been transferred but not yet matured. As of June 30, 2022, December 31, 2021, and June 30, 2021, the balances were RMB 138,841 thousand, RMB 226,853 thousand, and RMB 435,380 thousand, respectively. These notes will expire within 1~12 months after the balance sheet date. In consideration of the credit risk of the bank acceptance bills, the Group’s assessment of the fair value of its continuing involvement is not significant. The Group did not recognize any gains and losses on the transfer of the bank’s acceptance for the six months ended June 30, 2022 and 2021.

6.4 Accounts receivable, net

Item At amortized cost Accounts receivable Less: Loss allowance Net	June 30,2022 $2,315,728 (3,459) $2,312,269	December 31,2021 $2,247,468 (5,814) $2,241,654	June 30,2021 $3,201,101 (5,133) $3,195,968

A. The Group’s accounts receivables of sales of goods. The average credit period varies: 30~60 days for Carbon Steel Department, and interest-bearing deferred payment is allowed upon mutual agreement; 7~26 days for the sale of steel products; agreed days for the Engineering Department based on the contractual terms; and 60~90 days for other departments based on encounter parties’ industry characteristics, operation scale and profit status.
B. For the information about the Group’s accounts receivable pledged as collateral, please refer to Note 8 for details.
C. The Group factored part of its accounts receivables to banks without recourse. The Group had already transferred substantially all risks and rewards upon factoring the accounts receivables, which were thereby derecognized from the balance sheet. Please refer to Note 12(5) for related information.
D. The Group applies the simplified approach to provisions for expected credit losses prescribed by IFRS 9, which permits the use of a lifetime expected credit losses provision for trade receivables. The expected credit losses on trade receivables are estimated by reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend, which receivables are past due. As the Group’s historical credit losses experience does not show significantly different loss patterns for different customer segments, the provision for losses based on past due status of receivables is not further distinguished between the Group’s different customer base.

－－ 20

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery of the receivable. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables which are due. Where recoveries are made, these are recognized in profit or loss. The Group measured the allowance for notes receivable and accounts receivable according to the preparation matrix (including related parties)：

June 30, 2022 Not past due December 31, 2021 Not past due June 30, 2021 Not past due	Expected credit loss rate 0%-0.5% Expected credit loss rate 0%-0.5% Expected credit loss rate 0%-0.5%	Gross carrying amount $2,858,426 Gross carrying amount $2,861,473 Gross carrying amount $3,940,950	Allowance for doubtful accounts (ECL) ($6,687) Allowance for doubtful accounts (ECL) ($6,709) Allowance for doubtful accounts (ECL) ($6,807)	Amortized cost
				$2,851,739
				Amortized cost
				$2,854,764
				Amortized cost
				$3,934,143

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

(including related parties) were as follows:
Beginning balance Add: Provision for impairment Less: Reversal of Impairment Loss Impact of foreign exchange differences Ending balance	Six Months Ended June 30
	2022 $6,709 - (44) 22 $6,687	2021
		$5,982 853 - (28)
		$6,807

As of June 30, 2022, December 31, 2021, and June 30, 2021, the above provision had already taken into consideration of collateral or other credit enhancement. The other credit enhancement (e.g., banker’s acceptance and L/C) possessed by above receivables were $1,823,720 thousand, $1,751,711 thousand, and $2,881,329 thousand, respectively.

Please refer to Note 12(3) for the relevant credit risk management and assessment.

6.5 Other receivables

Item Business tax refundable Purchase allowance receivable Proceeds receivable arising from sale of funds Interest receivable Others Total Less: Loss allowance Net	June 30,2022 $221,860 2,590 3,292 4,306 13,131 245,179 - $245,179	December 31,2021 $245,405 - 27,335 4,303 13,872 290,915 - $290,915	June 30,2021
			$187,554 27,701 - - 33,752
			249,007 -
			$249,007

－－ 21

6.6 Inventories and operating cost Item June 30,2022 Steel Department and other Non-heavy Industry Department: Raw materials $6,545,175 Supplies 478,508 Work in progress 1,304,722 Finished goods 5,798,511 Process product 20,392 By-products and scraps 253,368 Subtotal 14,400,676 Heavy Industry Department: Raw materials 194,745 Supplies 7,689 Subtotal 202,434 Total $14,603,110	December 31,2021 $4,698,803 452,274 1,660,929 6,896,852 23,122 234,152 13,966,132 81,666 7,373 89,039 $14,055,171	June 30,2021 $4,903,489 446,006 1,802,220 5,148,668 20,584 213,346 12,534,313 105,193 2,818 108,011 $12,642,324

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

1.Inventory gains (losses) recognized as cost of	sales were as follows:	sales were as follows:
Item Cost of inventories sold Construction cost Unallocated manufacturing overhead Purchase and construction contract loss (recovery gain) Inventory valuation loss and obsolescence loss (recovery gain) Impact of foreign exchange difference Total operating expenses Item Cost of inventories sold Construction cost Loss on retirement of Inventory Unallocated manufacturing overhead Purchase and construction contract loss (recovery gain) Inventory valuation loss and obsolescence loss (recovery gain) Impact of foreign exchange difference Total operating expenses	Three Months Ended June 30
	2022 2021 $19,716,041 $20,198,343 88,836 144,007 90,497 43,659 10,077 (481) 367,222 16,274 1,775 2,106 $20,274,448 $20,403,908 Six Months Ended June 30	2021
		$20,198,343 144,007 43,659 (481) 16,274 2,106
		$20,403,908
	2022 $40,072,908 193,850 2,937 173,647 (28,744) 18,446 (5,130) $40,427,914	2021
		$36,755,539 289,205 - 60,319 (1,726) (6,411) 2,602
		$37,099,528

－－ 22

2.The Group recognized inventory valuation loss (recovery gain) of $367,222 thousand, $16,274 thousand, $18,446 thousand, and ($6,411) thousand for the three months and six months ended June 30, 2022 and 2021, respectively, due to inventory’s write-down to net realizable value, or the net realizable value of inventories recovered as a result of market stabilization that enabled the Group to raise prices on certain products.
3.The Group has no inventories pledged to others.

6.7 Prepayments

Item Prepaid material purchase Prepaid (overpaid) sales tax Prepaid insurance Supplies inventory Prepaid sea freight Prepaid syndicated loan arrangement fee Other prepayments Total	June 30,2022 $3,291,776 258,802 22,507 13,308 79,078 10,982 43,401 $3,719,854	December 31,2021 $2,163,238 228,593 97,141 12,749 149,035 42,538 27,654 $2,720,948	June 30,2021
			$3,336,029 775,448 20,141 18,700 88,023 - 49,571
			$4,287,912

1.Prepaid syndicated loan arrangement fee was paid to the lead bank of syndicated loan. In June 2022, the Group entered a syndicated loan agreement with 10 joint lending banks including Megabank, with a credit line of $2.89 billion, The syndicated loan agreement was first actually drawn in August 2022 and the arrangement fee was recognized as deduction of long-term loans.
2.Prepaid syndicated loan arrangement fee was paid to the lead bank of syndicated loan. In December 2021, the Group entered a syndicated loan agreement with 9 joint lending banks including Bank of China, The syndicated loan agreement was first actually drawn in January 2022 and the arrangement fee was recognized as deduction of long-term loans.
Please refer to Note 7.3.7. for prepayments with related parties.

6.8 Other financial assets - current

Item Time deposits over three months Pledged demand deposits Pledged time deposits Total	June 30,2022 December 31,2021 $414,742 $96,861 506,865 423,168 838,601 611,488 $1,760,208 $1,131,517	June 30,2021
		$96,905 1,120,909 453,965
		$1,671,779

－－ 23

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

Item Equity instruments： Domestic listed stocks Domestic unlisted stocks Subtotal Valuation adjustment Total	June 30,2022 $45,000 552,764 597,764 128,872 $726,636	December 31,2021 June 30,2021 $45,000 $45,000 568,248 558,248 613,248 603,248 184,476 72,546 $797,724 $675,794

The Group invests in domestic listed and unlisted stocks in accordance with its medium/long-term strategies and expects to make a profit through long-term investment. Management of the Group believes that it is not consistent with the afore mentioned long-term investment planning if the short-term fair value changes of such investment are presented in profit or loss. Therefore, the Group elects to designate such investment as to be measured at FVTOCI.
For related credit risk management and means of assessing, please refer to Note 12(3).
As of June 30, 2022, December 31, 2021, and June 30, 2021, the Group had no financial assets at FVTOCI pledged as collateral.

6.10 Investments accounted for using equity method

Investee Associates: Associates with significance: Eliter International Corp. E-Da Development Corp. Tangeng Iron Works Co., Ltd. Yieh United Steel Corp. Associates without significance Total	June 30,2022 $3,986,177 1,127,325 4,512,871 4,917,570 2,036,524 $16,580,467	December 31,2021 $3,786,382 1,239,912 4,414,127 4,500,934 2,052,199 $15,993,554	June 30,2021
			$3,808,249 1,313,257 4,029,780 3,544,137 2,319,160
			$15,014,583

1.Associates:

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

CompanyName Eliter International Corp. E-Da Development Corp. Tangeng Iron Works Co., Ltd. Yieh United Steel Corp.	ShareholdingPercentage	ShareholdingPercentage	ShareholdingPercentage
	June 30,2022 43.56% 34.38% 31.16% 30.51%	December 31,2021 43.56% 34.38% 31.16% 30.51%	June 30,2021
			43.56% 34.38% 31.16% 30.51%

Please refer to Table 7 and Table 8 in Note 13 for the nature of business, main operation location and countries of registration of the associates listed above.

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

－－ 24

A. Balance Sheets

A. Balance Sheets
Item Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share of net assets of associates Unrealized gain (loss) from transactions with associates Carrying amount of associate	Eliter International Corp.
	June 30,2022 $6,944,859 5,147,630 2,072,032 724,851 $9,295,606 $4,049,059 (62,882) $3,986,177	December 31,2021 $7,201,584 4,938,621 2,606,211 697,067 $8,836,927 $3,849,039 (62,657) $3,786,382	June 30,2021
			$6,947,394 5,193,590 2,128,746 1,125,079
			$8,887,159
			$3,870,918 (62,669)
			$3,808,249

E-Da Development Corp.	E-Da Development Corp.	E-Da Development Corp.
June 30, 2022 December 31, 2021 June 30, 2021 $346,696 $477,649 $461,962 7,616,205 7,831,811 7,921,464 629,837 879,467 627,503 4,033,012 3,802,219 3,914,556 $3,300,052 $3,627,774 $3,841,367 $1,134,694 $1,247,378 $1,320,820 (7,369) (7,466) (7,563) $1,127,325 $1,239,912 $1,313,257 TangengIron Works Co.,Ltd.		June 30, 2021
		$461,962 7,921,464 627,503 3,914,556
		$3,841,367
		$1,320,820 (7,563)
		$1,313,257
June 30,2022 December 31,2021 June 30,2021 $4,607,034 $6,013,103 $3,588,651 23,323,787 23,420,763 23,576,393 2,501,167 3,929,425 2,570,320 10,945,825 11,337,528 11,661,354 $14,483,829 $14,166,913 $12,933,370 $4,512,871 $4,414,127 $4,029,780 - - - $4,512,871 $4,414,127 $4,029,780 Yieh United Steel Corp.		June 30,2021
		$3,588,651 23,576,393 2,570,320 11,661,354
		$12,933,370
		$4,029,780 -
		$4,029,780
June 30,2022 $15,069,347 33,487,405 23,740,060 8,313,331 $16,503,361	December 31,2021 $13,210,694 33,496,778 22,226,992 9,492,536 $14,987,944	June 30,2021
		$10,106,327 34,591,075 22,088,243 10,757,002
		$11,852,157

－－ 25

Share of net assets of associates $5,035,395 Unrealized gain (loss) from transactions with associates (117,825) Carrying amount of associate $4,917,570 B. Statements of Comprehensive Income Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate		$4,573,141 $3,616,344 (72,207) (72,207) $4,500,934 $3,544,137 Eliter International Corp. Three Months Ended June 30 2022 2021 $31,950 $184,227 (112,642) (86,994) - - ($112,642) ($86,994) $- $- Eliter International Corp. Six MonthsEnded June 30 2022 2021 $64,024 $215,648 (141,321) (128,458) - - ($141,321) ($128,458) $- $- E-Da Development Corp. Three Months Ended June 30 2022 2021 $81,154 $82,724 (170,421) (133,687) (60,178) 92,353 ($230,599) ($41,334) $- $- E-Da Development Corp. Six Months Ended June 30 2022 2021 $227,539 $254,308 (276,624) (190,547) (51,098) 79,542 ($327,722) ($111,005) $- $-

		2022 $227,539 (276,624) (51,098) ($327,722) $-

－－ 26

Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate	TangengIron Works Co.,Ltd.	TangengIron Works Co.,Ltd.
	Three Months Ended June 30
	2022 2021 $3,746,101 $4,204,171 44,300 296,026 (21,851) 28,667 $22,449 $324,693 $ - $ - TangengIron Works Co.,Ltd.	2021
		$4,204,171
		296,026 28,667
		$324,693
		$ -
	Six Months Ended June 30
	2022 $7,780,518 329,972 (13,057) $316,915 $ - Yieh United	2021
		$7,268,643
		351,911 31,451
		$383,362
		$ -
		Steel Corp.
	Three Months Ended June 30
	2022 $13,732,322 389,672 52,327 $441,999 $- Yieh United	2021
		$11,946,034
		1,157,654 (90,922)
		$1,066,732
		$-
		Steel Corp.
	Six Months Ended June 30
	2022 $26,288,888 1,107,025 383,083 $1,490,108 $-	2021
		$22,094,002
		1,443,082 (97,913)
		$1,345,169
		$-

－－ 27

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

follows:
Share of: Net income(loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Share of: Net income(loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss)	Three Months Ended June 30
	2022 2021 $21,503 $6,951 (95,675) 337,473 ($74,172) $344,424 Six Months Ended June 30	2021
		$6,951 337,473
		$344,424
	2022 $56,490 (61,659) ($5,169)	2021
		$11,197 325,801
		$336,998

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

Yieh United Steel Corp. (Note) Tangeng Iron Works Co., Ltd. Total	June 30,2022 $5,057,876 3,446,075 $8,503,951	December 31,2021 $6,970,672 3,898,645 $10,869,317	June 30,2021
			$12,868,462 5,354,502
			$18,222,964

(Note): The fair value information above did not include shares acquired through private placement, which were not allowed to be transferred freely in open markets.
(5) For Skylark Hot Spring & Resort Corp., E-Da Tour Bus Corporation, E-Da Bus Transportation Co., Ltd., and E-Da Entertainment Co., the Group has significant influence over which as a result of being a director in such entities. Consequently, those entities are accounted for using equity method.
(6) After considering the amount and distribution of other shareholders which are not extremely dispersed, the Group is not able to lead the company’s activities. Thus, the Group has no control even though it holds 38%, 45%, 43.56%, 34.38% and 30.51% of E-Da Health Biotechnology Co., Ltd., Zheng Xin Security Co., Ltd., Eliter International Corp., E-Da Development Corp., and Yieh United Steel Corp. and is the single largest shareholder. The management believes the Group only had significant impact to these companies, so classified them as the associates.
(7) The Group participated in the private placement of Yieh United Steel Corp. in February, 2017, and December, 2015, and subscribed at $7 per share, with the total subscription amount of $204,876 thousand and $1,100,400 thousand, totaling $1,305,276 thousand. 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.

－－ 28

(8) Due to cross ownership and the adoption of equity method between the Group and Yieh United Steel Corp., an investee accounted for using equity method, investment gain (loss) is recognized using the treasury stock approach.
(9) All investments accounted for using equity method and the Group’s share of profit or loss and other comprehensive income in the investees are calculated based on the financial statements not reviewed by auditors.
(10) As of June 30, 2022, December 31, 2021, and June 30, 2021, the Group pledged part of its investments accounted for using equity method as collateral for its borrowings. Please refer to Note 8.

6.11 Property, Plant and Equipment

Item	June 30,2022 $5,935,181 17,475,233 41,211,600 10,761,322 584,778 $75,968,114 (29,127,045) (333,906) $46,507,163	December 31,2021 $6,008,209 17,399,842 40,705,311 10,555,826 447,564 $75,116,752 (27,939,956) (332,783) $46,844,013	June 30,2021
Land Buildings and structures Machinery Other equipment Equipment to be inspected and construction in progress Total cost Less: Accumulated depreciation Accumulated impairment Total			$6,008,209 16,083,078 39,885,906 9,824,718 2,253,967
			$74,055,878 (26,971,314) (331,574)
			$46,752,990

Cost	Land	Buildings and structures	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
	$6,008,209 - - - (73,028) - -	$17,399,842 14,787 - (2,649) - 1,516 61,737	$40,705,311 29,048 - (16,679) - 68,532 425,388	$10,555,826 168,037 - (130,181) - 129,801 37,839	$447,564 346,757 (10,730) - - (199,849) 1,036	$75,116,752 558,629 (10,730) (149,509) (73,028) - 526,000
Balance, January 1, 2022 Additions Transferred to expenses Disposals Transferred to Investment properties Reclassification Impact of foreign exchange differences Balance, June 30, 2022 Accumulated depreciation and impairment
	$ 5,935,181	$17,475,233	$41,211,600	$10,761,322	$584,778	$75,968,114
	$ - - - -	$4,275,703 184,462 (2,219) 27,836	$21,405,217 615,951 (13,369) 133,905	$2,413,626 343,366 (129,481) 27,761	$178,193 - - -	$28,272,739 1,143,779 (145,069) 189,502
Balance, January 1, 2022 Depreciation Disposals Impact of foreign exchange differences Balance, June 30, 2022
	$ -	$4,485,782	$22,141,704	$2,655,272	$178,193	$29,460,951

－－ 29

Cost	Land	Buildings and structures	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
	$6,008,209 - - - - -	$8,485,254 6,581 - (49,051) 7,676,727 (36,433)	$40,118,043 40,433 - (147,323) 125,116 (250,263)	$3,230,583 81,112 - (77,986) 6,615,709 (24,700)	$15,077,536 1,603,963 (2,968) - (14,417,552) (7,012)	$72,919,625 1,731,989 (2,968) (274,360) - (318,408)
Balance, January 1, 2021 Additions Transferred to expenses Disposals Reclassification Impact of foreign exchange differences Balance, June 30, 2021 Accumulated depreciation and impairment
	$6,008,209	$16,083,078	$39,885,906	$9,824,718	$2,253,967	$74,055,878
	$ - - - -	$4,020,095 144,407 (5,206) (11,944)	$20,384,550 605,388 (137,067) (78,884)	$2,114,707 184,198 (77,235) (18,314)	$178,193 - - -	$26,697,545 933,993 (219,508) (109,142)
Balance, January 1, 2021 Depreciation Disposals Impact of foreign exchange differences Balance, June 30, 2021
	$ -	$4,147,352	$20,773,987	$2,203,356	$178,193	$27,302,888

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 Decrease (increase) in payables for purchase of equipment Cash paid for acquisition of property, plant and equipment	Six Months Ended June 30	Six Months Ended June 30
	2022 $558,629 249,494 $808,123	2021
		$1,731,989 59,435
		$1,791,424

Please refer to Note 6.34 for details on the amount of capitalized borrowing costs.
Impairment of property, plant and equipment amounted to both $0 thousand for the three months and six months ended June 30, 2022 and 2021.
For the information about property, plant and equipment pledged as collateral, please see Note 8 for details.
5.The Group’s land amounting to all $78,568 thousand as of June 30, 2022, December 31, 2021, and June 30, 2021 was unable to be registered under the name of the Group due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

6.12 Lease Agreement

A. Right-of-use asset

6.12 Lease Agreement A. Right-of-use asset
Item	June 30,2022 $499,503 39,558 $539,061 (53,195) - $485,866	December 31,2021 $504,457 36,842 $541,299 (44,174) - $497,125	June 30,2021
Land Building Total cost Less: Accumulated depreciation Accumulated impairment Total			$474,345 37,082
			$511,427 (35,816) -
			$475,611

－－ 30

Cost Balance at January 1, 2022 Additions Decreases Impact of foreign exchange differences Balance at June 30, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation Decreases Impact of foreign exchange differences Balance at June 30, 2022 Cost Balance at January 1, 2021 Impact of foreign exchange differences Balance at June 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation Impact of foreign exchange differences Balance at June 30, 2021	Land $504,457 3,088 (13,334) 5,292 $499,503 $27,974 6,948 (2,489) 414 $32,847 Land $486,602 (12,257) $474,345 $17,507 4,953 (179) $22,281	Building $36,842 - - 2,716 $39,558 $16,200 2,846 - 1,302 $20,348 Building $37,907 (825) $37,082 $11,004 2,800 (269) $13,535	Total
			$541,299 3,088 (13,334) 8,008
			$539,061
			$44,174 9,794 (2,489) 1,716
			$53,195
			Total
			$524,509 (13,082)
			$511,427
			$28,511 7,753 (448)
			$35,816

B. Lease liabilities

B. Lease liabilities
Item Carrying amount of lease liabilities - current - noncurrent	June 30,2022 $13,395 $66,617	December 31,2021 $13,713 $78,393	June 30,2021
			$7,428
			$70,214

The discount rate interval for lease liabilities was 1.9661%-2.4%. Please refer to Note 12(3) for lease liabilities with repayment periods.

C. Significant rent operating and clause

The Group rented land and buildings for operation. The lease terms range from 1 to 29 years. Part of the lease may be extended with its duration and is calculated based on the area of the land leased and the rate based on the announced land value of the current year. In accordance with the contract, without the lessor’s consent, the Group is not allowed to sublet the leased object to the third party. There was no sign of impairment of right-of-use assets, hence the Group didn’t assess the impairment as of June 30, 2022, December 31, 2021, and June 30, 2021.

－－ 31

D. Other lease information:

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

Three Months Ended June 30

	Three Months Ended June 30
Item Short-term lease expense Gross cash outflow (Note) Item Short-term lease expense Gross cash outflow (Note)	2022 2021 $5,944 $4,428 $8,666 $6,752 Six Months Ended June 30 2022 2021 $11,774 $8,580 $17,550 $12,351
	2022 $11,774 $17,550

(Note): Including principle paid for current lease liabilities.

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

6.13 Investment properties

Item Land Less: Accumulated impairment Total	June 30,2022 $197,996 (68,009) $129,987	December 31,2021 June 30,2021 $124,968 $124,968 (68,009) (68,009) $56,959 $56,959

The movement of cost and accumulated depreciation and impairment of investment properties were as follows:

Cost Balance at January 1, 2022 Property, plant and equipment transferred in Balance at June 30, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation Balance at June 30, 2022 Cost Balance, January 1, 2021 Disposals Impact of foreign exchange differences Balance, June 30, 2021	Land $124,968 73,028 $197,996 $68,009 - $68,009 Land $124,968 - - $124,968	Buildings $ - - $ - $ - - $ - Buildings $47,006 (46,366) (640) $ -	Total
			$124,968 73,028
			$197,996
			$68,009 -
			$68,009
			Total
			$171,974 (46,366) (640)
			$124,968

－－ 32

Accumulated depreciation and impairment Balance, January 1, 2021 Depreciation Disposals Impact of foreign exchange differences Balance, June 30, 2021	$68,009 - - - $68,009	$2,382 210 (2,557) (35) $ -	$70,391 210 (2,557) (35)
			$68,009

Rental revenue and direct operating expenses of investment properties:

Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period	Three Months Ended June 30	Three Months Ended June 30
	2022 2021 $ - $ - $ - $ - $42 $26 Six Months Ended June 30	2021
		$ -
		$ -
		$26
	2022 $ - $ - $78	2021
		$ -
		$ -
		$479

As of June 30, 2022, December 31, 2021, and June 30, 2021, the fair values of investment properties held by the Group were $546,480 thousand, $119,492 thousand, and $79,328 thousand, respectively, which were based on evaluation appraised by independent appraisers as of December 2021 and 2019. Such evaluation adopted the comparative approach by reference to the market evidence similar to the real estate transaction prices. Those are Level 3 fair value inputs. Please refer to Note 12(4). The Group believes that there would not be any material fluctuation in the fair value of such investment properties after their appraisal. Appraisal will be taken place every two years on the investment properties.
For the information about investment properties pledged as collateral, please see Note 8 for details.
5.The Group’s land amounting to all $8,987 thousand as of June 30, 2022, December 31, 2021, and June 30, 2021 was unable to be registered under the name of the Group due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

－－ 33

6.14 Intangible assets

	6.14 Intangible assets
	Item	June 30,2022	December 31,2021		June 30,2021
Mineral right		$464,202	$464,202			$443,936
Trademarks		8,207		8,207		8,207
Others		48,312		46,878		18,002
Total cost		$520,721	$519,287			$470,145
Less: Accumulated amortization		(182,822)	(160,036)			(126,823)
	Accumulated impairment	-		-		-
Net		$337,899	$359,251			$343,322
		Mineral right	Trademarks	Others		Total
	Cost
	Balance, January 1, 2022	$464,202	$8,207	$46,878		$519,287
	Additions	-	-		1,434	1,434
	Balance, June 30, 2022	$464,202	$8,207	$48,312		$520,721
	Accumulated amortization and
	impairment
	Balance, January 1, 2022	$153,800	$308	$5,928		$160,036
	Amortization	16,396	205		6,185	22,786
	Balance, June 30, 2022	$170,196	$513	$12,113		$182,822
		Mineral right	Trademarks	Others		Total
	Cost
	Balance, January 1, 2021	$464,202	$8,207	$17,406		$489,815
	Additions	-	-		596	596
	Impact of foreign exchange differences	(20,266)	-		-	(20,266)
	Balance, June 30, 2021	$443,936	$8,207	$18,002		$470,145
	Accumulated amortization and
	impairment
	Balance, January 1, 2021	$115,350	$ -		$118	$115,468
	Amortization	16,397	103		1,443	17,943
	Impact of foreign exchange differences	(6,588)	-		-	(6,588)
	Balance, June 30, 2021	$125,159	$ 103	$1,561		$126,823
	6.15 Other noncurrent assets
	Item	June 30,2022	December 31,	2021	June 30,2021
Intangible exploration and evaluation assets		$12,412	$12,412			$11,213
Other		5,201		6,821		13,138
Total		17,613	19,233			24,351
Less: Accumulated impairment		(12,412)	(12,412)			-
Net		$5,201	$6,821			$24,351

－－ 34

The above-mentioned intangible exploration and evaluation assets are mainly the rights to explore nickel laterite ores, which will be reclassified as “Intangible assets - drilling rights to minerals” when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable in the future. However, due to external environmental factors, the construction progress of the smelter was delayed, and the mineral resources have been unable to be exploited and used. After evaluating the recoverable value in the future, an impairment loss of $12,412 thousand was recognized in 2021.

6.16 Refundable deposits

6.16 Refundable deposits
Item Deposit for dumping margins Performance deposits Deposits Others Total	June 30,2022 $2,333 662 32,605 22,678 $58,278	December 31,2021 $2,098 662 33,194 23,880 $59,834	June 30,2021
			$148,472 629 30,996 19,095
			$199,192

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

However, the Group believed that there was dispute over the results of the aforementioned investigation, so it filed an appeal to the court in August 2015. After years of litigation, the Department of Commerce (DOC) followed the court's decision and re-reported the result of the retrial to the Court of International Trade (CIT) on February 14, 2022. The result of the retrial showed that the tax rate of the Group was 1.2% (de minimis- means trace, regarded as 0%). And clearly stated that if the court upholds the retrial result, the Group should be excluded from the aforementioned anti-dumping order, but the final judgment of the Court of International Trade (CIT) is still pending. Accordingly, the Group applied to the Court of International Trade (CIT) for freeze liquidation of anti-dumping duties during the fourth year of adjustment (2019/7/1-2020/6/30). The Court of International Trade (CIT) also issued an order to freeze liquidation on March 9, 2022. Based on the above judgment, the Group should eventually be excluded from the anti-dumping case, so the subsequent dumping margin duty has not been re-assessed and recorded, and the previous dumping margin duty will be reversed after the final judgment of the Court of International Trade (CIT).

－－ 35

6.17 Short-term Loans

Short-term Loans
Type of Loan Credit loans Credit for material purchase Mortgage loans Total	June 30,2022
	Amount $9,348,534 6,602,017 533,800 $16,484,351	Interest Rate
		1.40%-5.25% 1.64%-2.64% 2.33%-3.11%

Type of Loan Credit loans Credit for material purchase Mortgage loans Total Type of Loan Credit loans Credit for material purchase Mortgage loans Total	December 31,2021	December 31,2021
	Amount Interest Rate $6,667,992 1.39%-5.25% 6,647,476 1.12%-2.55% 590,000 1.81%-2.83% $13,905,468 June 30,2021	Interest Rate
	Amount $6,556,507 8,567,704 884,600 $16,008,811	Interest Rate
		1.35%-5.00% 0.85%-2.26% 1.60%-2.83%

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

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Item Commercial notes payable Less: Unamortized discount Net Interest rate range	June 30,2022 $1,606,000 (2,331) $1,603,669 1.86%-2.89%	December 31,2021 $1,358,900 (2,674) $1,356,226 1.69%-2.74%	June 30,2021 $1,331,000 (2,817) $1,328,183 1.69%-2.78%

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

－－ 36

6.19 Other Payables

Item Compensations Equipment Interest Utility expenses Dumping margins Consumables Export and transportation expenses Business tax Accrued taxes Cash dividends payable - current period Cash dividends - from previous period Repairing charges Compensation and remuneration to employees and directors - current period Others Total	June 30,2022 $482,041 240,274 60,250 83,006 71,793 24,082 157,930 15,135 206,736 945,285 22,974 25,898 6,244 382,680 $2,724,328	December 31,2021 $764,824 489,768 55,075 66,318 62,154 27,942 170,894 57,302 140,886 - 22,980 22,713 18,955 474,121 $2,373,932	June 30,2021 $390,720 431,928 53,209 72,495 16,685 25,721 219,027 10,398 9,835 - 23,008 17,295 8,133 408,458 $1,686,912

1.Please refer to Note 7.3.6. for related party transactions. 2.Please refer to Note 6.16. for Dumping duties payable.

6.20 Provisions - current

Item Employee benefits Onerous contract Warranty Decommissioning liabilities Total	June 30,2022 $95,161 12,431 3,171 - $110,763	December 31,2021 $90,693 41,175 3,171 - $135,039	June 30,2021 $87,372 1,543 3,469 3,487 $95,871

Item January 1, 2022 Recognized in current period Write-off in current period June 30, 2022	Employee benefits $90,693 69,514 (65,046) $95,161	Onerous contract $41,175 12,431 (41,175) $12,431	Warranty $3,171 - - $3,171	Total
				$135,039 81,945 (106,221)
				$110,763

－－ 37

Item January 1, 2021 Recognized in current period Write-off in current period June 30, 2021	Employee benefits $83,394 66,553 (62,575) $87,372	Onerous contract $3,269 1,543 (3,269) $1,543	Warranty $3,469 - - $3,469	Decommissioning liabilities $3,670 - (183) $3,487	Total
					$93,802 68,096 (66,027)
					$95,871

Provision for employee benefits is an estimate of the short-term service leave vested to employees.
The liability provision for a loss-making purchase contract is the estimated cost incurred by the Company in the performance of its contractual obligations in respect of an irrevocable raw material purchase contract that is expected to exceed the difference in the economic benefits expected to be obtained from the contract and the expected loss of the construction contract
The Group’s “provision for warranty” is the warranty for the sales of electronic products, and is estimated based upon the historical warranty data of such products.

6.21 Long-term Loans

Item Bank syndicated loans: The Company Subsidiaries Subtotal Secured loans from banks Unsecured loans from banks Others Total Less: Unamortized discount Less: Current portion Long-term loans Interest rate range	June 30,2022 $9,340,000 27,691,893 37,031,893 480,730 424,000 1,900 37,938,523 (125,711) (4,630,039) $33,182,773 1.41%-5.38%	December 31,2021 $8,900,000 26,693,011 35,593,011 489,920 689,078 9,944 36,781,953 (109,531) (4,645,390) $32,027,032 1.15%-5.38%	June 30,2021 $8,100,000 26,583,389 34,683,389 704,670 619,398 17,900 36,025,357 (123,974) (2,880,586) $33,020,797 1.45%-5.38%

Please refer to Note 8 for the collateral of the above bank loans.
According to syndicated loan agreements with banks, the Group needs to maintain several financial ratios, including current ratio, liability ratio and interest coverage ratio, at a certain level, calculated based on the audited annual consolidated financial statements and the reviewed semi-annual consolidated financial statements or the audited annual financial statements of subsidiaries for the duration of the contracts. Since the Group failed to meet certain financial ratios in the first half of 2022, it needed to pay to the managing bank a compensation at 0.125% of the loan balance within agreed time. However, this is not seen as a breach of contract.

－－ 38

6.22 Long-term Deferred Revenue

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

Item Deferred revenue from government grants: Subsidy for engineering construction Less: Accumulated revenue recognized Ending balance	June 30,2022 $50,983 (24,470) $26,513	December 31,2021 June 30,2021 $49,797 $49,383 (23,901) (21,727) $25,896 $27,656

6.23 Benefit Plan After Retirement

Defined contribution plan
(1) The pension system based on the Labor Pension Act which is applicable to the Group’s domestic entities resided in the R.O.C. It is a defined contribution plan managed by government. Companies would make monthly contribution equal to 6% of each employee's monthly salary to the employees’ individual pension accounts at the Bureau of Labor Insurance. Subsidiaries outside the R.O.C. also participate in the local defined contribution plan and makes contribution to the local government accordingly.
(2) For the three months and six months ended June 30, 2022 and 2021, the Group recognized pension expense of $44,049 thousand, $34,339 thousand, $86,074 thousand and $68,357 thousand, respectively.
Defined benefit plan
(1) Pension expense under the defined benefit plan were $1,549 thousand, $1,432 thousand, $3,091 thousand and $2,844 thousand for the three months and six months ended June 30, 2022 and 2021. The pensions were calculated using the actuarially determined pension cost discount rates as of December 31, 2021 and 2020.
(2) The Group estimated the balance in the designated pension accounts before the end of each year. Where the amount is deemed not sufficient to cover all the payment next year to employees who reach retirement in accordance with Article 53 or Article 54. 1. (1) of the same Act, a lump-sum deposit will be made before March-end of the following year to cover the difference.

6.24 Common Stock

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

Item January 1 Capital increase in cash June 30	Six Months Ended June 30,2022	Six Months Ended June 30,2022
	Shares (thousand shares) 1,890,569 - 1,890,569	Amount
		$18,905,695 -
		$18,905,695

－－ 39

Item January 1 Capital increase in cash June 30	Six Months Ended June 30,2021	Six Months Ended June 30,2021
	Shares (thousand shares) 1,890,569 - 1,890,569	Amount
		$18,905,695 -
		$18,905,695

As of June 30, 2022, the Company had an authorized capital of $20,000,000 thousand with 2,000,000 thousand shares.
The Company’s shareholders’ meeting held on June 23, 2022 resolved to capitalize earnings of $945,285 thousand. The plan was approved by FSC on July 15, 2022 and 94,529 thousand shares of common share at the par value of $10 were issued. The record date for capital increase was set on September 5, 2022.

6.25 Capital Surplus

6.25 Capital Surplus
Item Share premium Treasury stock transaction Difference between consideration and carrying amount of subsidiaries acquired or disposed Change in ownership interests in subsidiaries accounted for using equity method Changes in associates and joint ventures accounted for using equity method Total	June 30,2022 $4,060,366 600,112 218,574 8,665 41,231 $4,928,948	December 31,2021 $4,060,366 600,112 218,574 8,665 41,132 $4,928,849	June 30,2021
			$4,060,366 600,112 218,574 8,665 41,290
			$4,929,007

Under the Company Act, capital surplus arising from shares issued at premium or from donation may be used for offsetting deficit. Furthermore, if the Company has no accumulated loss, capital surplus may be used for issuing new shares or distributing cash in proportion to shareholders' original holdings. In accordance with regulations in the Securities and Exchange Act, when the above-mentioned capital surplus is used for capitalization, the total amount every year shall not exceed 10% of the paidin 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.

6.26 Retained Earnings

1.A residual dividend distribution policy is adopted in accordance with the Company’s business expansion and profitability after considering the fact that the Company is currently in its growing phase. The annual net income, if any, should be used to pay off all the taxes and duties, as well as to compensate prior deficits. The remaining amount, if any, should be appropriated in the following order of presentation:

(1)10% as legal reserve;

－－ 40

(2)Set aside or reverse a certain amount as or of special reserve according to operating needs or laws or regulations;
(3)The remaining net income plus unappropriated earnings from prior years may be used as dividends or bonus for shareholders after proposed by the Board of Directors and resolved by the shareholders meeting.

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

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

Item Provision for debit balance of other equity Provision upon initial application of IAS Total	June 30,2022 $457,290 327,757 $785,047	December 31,2021 June 30,2021 $378,836 $231,475 327,757 327,757 $706,593 $559,232

(1)The Company may allocate earnings only after providing special reserve for debt balance in other equity on the date of balance sheet, and the reversal of debit balance in other equity, if any, may be stated into allocable earnings.
(2)On March 9, 2022, the Board of Directors of the Company proposed to amend the Articles of Incorporation of the Company to expressly stipulate that when the special surplus reserve is set aside to the net debit balance of other equity items accumulated in the previous period, if the undistributed earnings in the previous period is insufficient, the net income after tax for the current period plus item other than the net income after tax will be set aside in the undistributed earnings for the current period. Prior to the amendment, the Company shall set aside earning in accordance with the provisions of Order No. 1010012865 of the Financial Management Certificate and Order no. 1030006415 of the Financial Management Certificate.
4.The appropriation of earnings for 2021 approved by the stockholders’ meeting held in June 2022, while the appropriation of earnings for 2020 was approved by the stockholders’ meeting held in August 2021. The details of appropriation are as follows:

follows:
Item Legal reserve Appropriation for special reserve Cash dividends for common stock Stock dividends for common stock Total	Earnings appropriation proposal 2021 2020 $511,379 $16,374 78,454 147,361 945,285 - 945,285 - $2,480,403 $163,735	Dividends per share (NTD)
	2021 $511,379 78,454 945,285 945,285 $2,480,403	2021 0.5 0.5	2020
			- -

－－ 41

5.Information about earnings distribution approved by the shareholders’ meeting is available at the Taiwan Stock Exchange Market Observation Post System website.

6.28 Other Equity Item

6.28 Other Equity Item
	Exchange	Unrealized gain
	differences on	(loss) on financial
	translation of	asset at fair value
	foreign	through other	Gain (loss) on
	financial	comprehensive	hedging
Item	statements	income	instruments	Total
Balance, January 1, 2022	($1,426,033)	$386,525	$6,546	($1,032,962)
Exchange differences on
translation of foreign financial	212,591	-	-	212,591
statements
Unrealized gain (loss) on financial
assets at fair value through other	-	(55,412)	-	(55,412)
comprehensive income
Share of associates and joint
ventures accounted for using	212,439	(189,654)	837	23,622
equity method
Balance, June 30, 2022	($1,001,003)	$141,459	$7,383	($852,161)
	Exchange	Unrealized gain
	differences on	(loss) on financial
	translation of	asset at fair value
	foreign	through other	Gain (loss) on
	financial	comprehensive	hedging
Item	statements	income	instruments	Total
Balance, January 1, 2021	($1,187,536)	$226,643	$6,384	($954,509)
Exchange differences on
translation of foreign financial	(141,211)	-	-	(141,211)
statements
Unrealized gain (loss) on financial
assets at fair value through other	-	(18,854)	-	(18,854)
comprehensive income
Share of associates and joint
ventures accounted for using	(70,576)	405,636	(47)	335,013
equity method
Disposal of unrealized gain (loss)
on financial assets at fair value through other comprehensive	-	(1,425)	-	(1,425)
income
Balance, June 30, 2021	($1,399,323)	$612,000	$6,337	($780,986)

－－ 42

6.28 Non-controlling interests

Item Beginning balance Share attributable to non-controlling interests: Net income (loss) for the current period Other comprehensive income of the period Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial asset at fair value through other comprehensive income Share of associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements Unrealized gain (loss) on financial asset at fair value through other comprehensive income Gain (loss) on hedging instruments Changes in associates and joint ventures recognized under equity method Increase in non-controlling interest - capital increase by cash Increase (decrease) in non-controlling interests Ending balance	Six Months Ended June 30	Six Months Ended June 30
	2022 $1,391,237 (65,840) 5,223 (193) 3,870 (1,489) 16 215 46,544 11,629 $1,391,212	2021
		$1,361,903 16,494 (7,620) 85 (1,174) 2,351 (1) (13) 4,000 9,905
		$1,385,930

6.29 Operating Revenue

9 Operating Revenue
Item Revenue from contracts with customers Sales revenue Construction revenue Other operating income Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Three Months Ended June 30
	2022 $22,875,613 106,693 4,252 55 22,986,613 (4,695) (14,913) $22,967,005	2021
		$22,986,877 154,990 - 54
		23,141,921 (2,218) (10,134)
		$23,129,569

－－ 43

Item Revenue from contracts with customers Sales revenue Construction revenue Other operating revenue(Note) Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Six Months Ended June 30	Six Months Ended June 30
	2022 $45,919,955 229,553 4,252 109 46,153,869 (14,081) (24,624) $46,115,164	2021
		$41,535,973 311,048 - 108
		41,847,129 (8,019) (19,266)
		$41,819,844

(Note)The Group recognizes other operating income on a net basis as an agent for the commissioned sales of goods to the European Union. Please refer to Note 7(3)2. 1.Segments of revenue from contracts with customers

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

(1) Segmented by revenue from different types of goods and services: Three Months Ended June 30, 2022:

External customer	Steel coils and steelpipes	Wirerods	Construction revenue	Others	Total
	$19,731,032	$2,032,816	$106,748	$1,096,409	$22,967,005
Contract revenue Timing of revenue recognition
	$19,731,032 -	$2,032,816 -	$ - 106,748	$1,096,409 -	$22,860,257 106,748
	$19,731,032	$2,032,816	$106,748	$1,096,409	$22,967,005
			Construction revenue	Others	Total
	$20,510,653	$1,652,014	$ 155,044	$ 811,858	$23,129,569
	$20,510,653 -	$1,652,014 -	$ - 155,044	$ 811,858 -	$22,974,525 155,044

－－ 44

Six Months Ended June 30, 2022: Steel coils and steelpipes Wirerods External customer Contract revenue $39,928,559 $3,775,299 Timing of revenue recognition Revenue recognized at a specific timing $39,928,559 $3,775,299 Revenue recognized over time - - Total $39,928,559 $3,775,299 Six Months Ended June 30, 2021: Steel coils and steel pipes Wire rods External customer Contract revenue $36,625,014 $3,187,630 Timing of revenue recognition Revenue recognized at a specific timing $36,625,014 $3,187,630 Revenue recognized over time - - Total $36,625,014 $3,187,630	Six Months Ended June 30, 2022: Steel coils and steelpipes Wirerods External customer Contract revenue $39,928,559 $3,775,299 Timing of revenue recognition Revenue recognized at a specific timing $39,928,559 $3,775,299 Revenue recognized over time - - Total $39,928,559 $3,775,299 Six Months Ended June 30, 2021: Steel coils and steel pipes Wire rods External customer Contract revenue $36,625,014 $3,187,630 Timing of revenue recognition Revenue recognized at a specific timing $36,625,014 $3,187,630 Revenue recognized over time - - Total $36,625,014 $3,187,630	Six Months Ended June 30, 2022: Steel coils and steelpipes Wirerods External customer Contract revenue $39,928,559 $3,775,299 Timing of revenue recognition Revenue recognized at a specific timing $39,928,559 $3,775,299 Revenue recognized over time - - Total $39,928,559 $3,775,299 Six Months Ended June 30, 2021: Steel coils and steel pipes Wire rods External customer Contract revenue $36,625,014 $3,187,630 Timing of revenue recognition Revenue recognized at a specific timing $36,625,014 $3,187,630 Revenue recognized over time - - Total $36,625,014 $3,187,630	Construction revenue	Others	Total
	$39,928,559	$3,775,299	$229,662	$2,181,644	$46,115,164
	$39,928,559 -	$3,775,299 -	$ - 229,662	$2,181,644 -	$45,885,502 229,662
	$39,928,559	$3,775,299	$229,662	$2,181,644	$46,115,164
			Construction revenue	Others	Total
	$36,625,014	$3,187,630	$311,156	$1,696,044	$41,819,844
Contract revenue Timing of revenue recognition
	$36,625,014 -	$3,187,630 -	$ - 311,156	$1,696,044 -	$41,508,688 311,156
Revenue recognized at a specific timing Revenue recognized over time Total
	$36,625,014	$3,187,630	$311,156	$1,696,044	$41,819,844

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

2.Contract Balance
Item	June 30,2022 $2,851,739 $121,302 $1,193,666 261,852 $1,455,518	December 31,2021 $2,854,764 $117,272 $2,913,934 148,466 $3,062,400	June 30,2021
Notes receivable and accounts receivable Contract assets - current Steel structure construction and overhead cranes Contract liabilities - current Unearned sales revenue Advance construction receipts Total			$3,934,143
			$98,341
			$2,205,734 97,322
			$2,303,056

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

－－ 45

(2)Loss allowance Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net	for contract assets: June 30,2022 0%-0.5% $121,700 (398) $121,302	December 31,2021 0%-0.5% $117,677 (405) $117,272	June 30,2021
			0%-0.5%
			$98,631 (290)
			$98,341

The Group recognized loss allowance on contract assets based on expected credit losses during existence. Contract assets were transferred to accounts receivable at the time of billing. Its credit risk characteristics were 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 loss allowance on contract assets were as follows:

Beginning balance Add: Reversal for impairment Ending balance		Six Months Ended June 30	Six Months Ended June 30
		2022 $405 (7) $398	2021
			$1,135 (845)
			$290

(3) Contract liabilities recognized for the six months ended June 30, 2022 and 2021 under operating revenue amounted to $2,913,934 thousand and $2,035,162 thousand, respectively.
(4) As of June 30, 2022 and 2021, the transaction prices allocated to the performance obligations that were not fully satisfied amounted to $1,233,726 thousand and $437,728 thousand, respectively. The Group will recognize revenue as the construction is being completed and the expected timing for recognition of revenue is on various dates through December 2023.

6.30 Employee benefits, depreciation and amortization expense

	Three Months Ended June 30,	Three Months Ended June 30,	2022
Nature	OperatingCost	OperatingExpense	Total
Employee benefits
Salary	$541,296	$260,054	$801,350
Insurance	52,255	23,907	76,162
Pension	33,294	12,304	45,598
Other employee benefits	111,459	32,741	144,200
Depreciation	401,577	177,742	579,319
Amortization	8,198	3,313	11,511
Total	$1,148,079	$510,061	$1,658,140

－－ 46

	Three Months Ended June 30,	Three Months Ended June 30,	2021
Nature	OperatingCost	OperatingExpense	Total
Employee benefits
Salary	$440,181	$283,024	$723,205
Insurance	42,054	24,383	66,437
Pension	25,975	9,796	35,771
Other employee benefits	119,888	38,253	158,141
Depreciation	389,462	112,976	502,438
Amortization	8,609	1,430	10,039
Total	$1,026,169	$469,862	$1,496,031

Six Months Ended June 30,2022	Six Months Ended June 30,2022	Six Months Ended June 30,2022
OperatingCost $1,101,515 103,885 64,617 219,083 802,049 16,396 $2,307,545	OperatingExpense $524,611 49,573 24,546 63,987 351,524 6,390 $1,020,631	Total
		$1,626,126 153,458 89,163 283,070 1,153,573 22,786
		$3,328,176

Six Months Ended June 30,2021	Six Months Ended June 30,2021	Six Months Ended June 30,2021
OperatingCost $906,976 86,190 51,987 222,894 803,283 16,397 $2,087,727	OperatingExpense $502,161 44,577 19,214 67,311 135,642 1,546 $770,451	Total
		$1,409,137 130,767 71,201 290,205 938,925 17,943
		$2,858,178

(Note 1):Excluding pension of $2 thousand under construction in progress.

(Note 2): Excluding depreciation of $3,031 thousand under other losses.

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. For the three months and six months ended June 30, 2022, employees’ compensation was accrued at $1,391 thousand and $4,163 thousand, respectively. The directors’ remuneration was accrued at $695 thousand and $2,081 thousand, respectively. For the three months and six months ended June 30, 2020, employees’ compensation was accrued at $2,902 thousand and $5,422 thousand, respectively. The directors’ remuneration was accrued at $1,451 thousand and $2,711 thousand, respectively. The remuneration of employees is estimated at 0.2% of the aforementioned pre-tax profit and the remuneration of directors is estimated at 0.1%.

－－ 47

Compensation to employees and remuneration to directors for the years ended December 31, 2021 and 2020 has been resolved and approved by the Board of Directors in March 2022 and 2021. Relevant amounts recognized in the financial statements are as follows:

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

(1) The above-mentioned employee compensation was distributed in cash.
(2) The differences between the amount resolved for 2021 and the amount recognized in financial statements are mainly estimate difference and has been adjusted in profit or loss for 2022.
3.Information about employee compensation and remuneration to directors approved by the Board of Directors is available at the Taiwan Stock Exchange Market Observation Post System website.

6.31 Interest income

Item Bank deposits Other interest income Total Item Bank deposits Other interest income Total	Three Months Ended June 30	Three Months Ended June 30
	2022 2021 $17,314 $ 3,501 2,108 50 $19,422 $3,551 Six Months Ended June 30	2021
		$ 3,501 50
		$3,551
	2022 $19,273 2,108 $21,381	2021
		$7,035 218
		$7,253

6.32 Other Income

Other Income
Item Rent revenue Dividend income Other revenue Insurance claims income Income from sales of scraps Relief income Others Subtotal Total	Three Months Ended June 30
	2022 $1,481 4,561 9,840 34,554 - 14,712 59,106 $65,148	2021
		$13,839 6,711 - 15,323 26,760 8,887
		50,970
		$71,520

－－ 48

Item Rent revenue Dividend income Other revenue Insurance claims income Income from sales of scraps Relief income Others Subtotal Total	Six Months Ended June 30	Six Months Ended June 30
	2022 $4,391 4,561 131,872 45,393 - 43,538 220,803 $229,755	2021
		$16,500 13,954 - 27,812 26,760 29,318
		83,890
		$114,344

The Group’s Rolling Plant No. 3 was caught on fire in April 2018, resulting in damage of part of the equipment therein. The carrying amount of the damaged equipment was $85,048 thousand. Aside from recognizing deductible for fire loss of $7,000 thousand, an insurance claim receivable for the damaged part in the amount of $78,048 thousand was also recognized on December 31, 2018. In March 2022, July 2020, January 2020, and January 2019, the Group has obtained $125,155 thousand, $124,554 thousand, $166,606 thousand, and $150,000 thousand from insurance claim. After offsetting the insurance claim receivable, $125,155 thousand, $124,554 thousand, $166,606 thousand, and $71,952 thousand are recorded as “other income”.

6.33 Other gains and losses

Other gains and losses
Item Valuation gain (loss) on financial assets mandatorily measured at FVTPL Foreign exchange gain (loss) Gain (loss) from disposal of property, plant, and equipment Gain on disposal of investment properties Dumping margins Others Total	Three Months Ended June 30
	2022 ($6,208) 155,649 (1,521) - - (2,009) $145,911	2021
		$7,325 49,775 (3,390) 6,674 (28,810) (822)
		$30,752

－－ 49

Item Gain (loss) on disposal of investments under equity method Valuation gain (loss) on financial assets mandatorily measured at FVTPL Foreign exchange gain (loss) Gain (loss) from disposal of property, plant, and equipment Gain on disposal of investment properties Gain on disposal of noncurrent assets held for sale Dumping margins Others Total	Six Months Ended June 30	Six Months Ended June 30
	2022 $241 (8,545) 302,066 (3,618) - - (4,872) (2,629) $282,643	2021
		$ - 5,683 23,511 1,081 10,173 539,330 (28,810) (3,463)
		$547,505

1.For information on dumping margins, please refer to Note 6.16.

6.34 Finance Costs

Item Interest expense: Interest on loans Interest on lease liabilities Subtotal Less: Amount qualified for capitalization Finance costs Item Interest expense: Interest on loans Interest on lease liabilities Subtotal Less: Amount qualified for capitalization Finance costs	Three Months	Ended June 30
	2022 2021 $409,666 $376,582 146 137 409,812 376,719 (430) (19,903) $409,382 $356,816 Six Months Ended June 30	2021
		$376,582 137
		376,719 (19,903)
		$356,816
	2022 $799,687 805 800,492 (857) $799,635	2021
		$724,948 288
		725,236 (105,926)
		$619,310

－－ 50

6.35 Income Tax

1. Income tax expense

(1)Components of income tax expense (benefit)

Item	Three Months Ended June 30	Three Months Ended June 30
	2022 $251,162 2,066 128,359 (107,126) $274,461	2021
Current income tax expense Adjustment to prior year income taxes Tax on undistributed retained earnings Deferred income tax of originated and reversed temporary differences Income tax expense (benefit)		$288,946 (985) - 81,591
		$369,552

	Six Months Ended June 30	Six Months Ended June 30
Item	2022	2021
Current income tax expense	$431,438	$429,137
Adjustment to prior year income taxes	2,066	(985)
Tax on undistributed retained earnings	128,359	-
Land value incremental tax	-	8,905
Deferred income tax of originated and reversed temporary differences	(19,858)	225,291
Income tax expense (benefit)	$542,005	$662,348
2) Income tax expense (benefit) associated	with other comprehensive income
	Three Months Ended June 30
Item	2022	2021
Exchange differences on translation of foreign financial statements	($23,283)	($23,948)
	Six Months Ended June 30
Item	2022	2021
Exchange differences on translation of foreign financial statements	$56,103	($30,140)

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

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

－－ 51

6.36 Other Comprehensive Income

Three Months Ended June 30, 2022	Three Months Ended June 30, 2022	Three Months Ended June 30, 2022
Before tax Income tax expense (benefit) After tax ($54,953) $ - ($54,953) (210,605) - (210,605) (265,558) - (265,558) (124,640) 28,320 (96,320) 102,729 (5,037) 97,692 852 - 852 (21,059) 23,283 2,224 ($286,617) $23,283 ($263,334) Three Months Ended June 30, 2021		After tax
		($54,953) (210,605)
		(265,558)
		(96,320) 97,692 852
		2,224
		($263,334)
Before tax $6,216 429,907 436,123 (112,075) (79,472) (17) (191,564) $244,559	Income tax expense (benefit) $ - - - 20,905 3,043 - 23,948 $23,948	After tax
		$6,216 429,907
		436,123
		(91,170) (76,429) (17)
		(167,616)
		$268,507

－－ 52

Six Months Ended June 30, 2022	Six Months Ended June 30, 2022	Six Months Ended June 30, 2022
Before tax Income tax expense (benefit) After tax ($55,605) $ - ($55,605) (191,143) - (191,143) (246,748) - (246,748) 264,517 (46,703) 217,814 225,709 (9,400) 216,309 853 - 853 491,079 (56,103) 434,976 $244,331 ($56,103) $188,228 Six Months Ended June 30, 2021		After tax
		($55,605) (191,143)
		(246,748)
		217,814 216,309 853
		434,976
		$188,228
Before tax ($18,769) 407,987 389,218 (176,177) (74,544) (48) (250,769) $138,449	Income tax expense (benefit) $ - - - 27,346 2,794 - 30,140 $30,140	After tax
		($18,769) 407,987
		389,218
		(148,831) (71,750) (48)
		(220,629)
		$168,589

－－ 53

6.37 Earnings Per Share

Item A. Basic earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Basic earnings (loss) per share (after tax) (NT$) B. Diluted earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Impact on employees’ compensation (Note) Weighted average number of ordinary shares outstanding after dilution (thousand shares) Diluted earnings (loss) per share (after tax) (NT$) Item C. Basic earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Basic earnings (loss) per share (after tax) (NT$) D. Diluted earnings (loss) per share Net income (loss) attributable to shareholders of parent company Weighted average number of outstanding shares (thousand shares) Impact on employees’ compensation (Note) Weighted average number of ordinary shares outstanding after dilution (thousand shares) Diluted earnings (loss) per share (after tax) (NT$)	Three Months Ended June 30	Three Months Ended June 30
	2022 2021 $421,920 $1,169,185 1,890,569 1,890,569 $0.22 $0.62 $421,920 $1,169,185 1,890,569 1,890,569 251 87 1,890,820 1,890,656 $0.22 $0.62 Six Months Ended June 30	2021
		$1,169,185 1,890,569
		$0.62
		$1,169,185
		1,890,569 87
		1,890,656
		$0.62
	2022 $1,558,089 1,890,569 $0.82 $1,558,089 1,890,569 452 1,891,021 $0.82	2021
		$2,273,404 1,890,569
		$1.20
		$2,273,404
		1,890,569 180
		1,890,749
		$1.20

－－ 54

The Company's shareholders' meeting held on June 23, 2022 had resolved to capitalize earnings and issue 94,529 thousand new shares . The record date for capital increase was set on September 5, 2022. After retrospective adjustment for the six months Ended June 30, 2022 and 2021. The after-tax earnings per share were $0.78 and $1.15, respectively.

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

6.38 Business combination

Change in ownership interests in subsidiaries Six months ended June 30, 2022:
(1)The subsidiary, Great Emperor Hotel Co., Ltd. issued common stocks in March 2022. After the subscription, the Company’s shareholding increased from 58.17% to 60.15%, Yieh Hsing Enterprise Co., Ltd.’s shareholding reduced from 41.82% to 39.84%, and Shin Phui Steel Corporation’s shareholding remained 0.01%. Since the said transaction did not change the Group’s control over the said subsidiary, it is deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	Yieh Phui Enterprise Co., Ltd. ($257,500) 245,256 ($12,244)	Yieh Hsing Enterprise Co., Ltd. $ - 7,028 $7,028	Shin Phui Steel Corporation
			$ - 3
			$3

(2)The sub-subsidiary, APPLIED WIRELESS INDENTIFICATION GROUP, INC. issued common stocks in February 2022. After the subscription, EMMT System
Corporation’s shareholding reduced from 91.47% to 88.69%. Since the abovementioned transaction did not change the Group’s control over the said subsidiary, it was deemed as an equity transaction.

Subscription in cash Share of equity of subsidiaries’ net assets computed using relative equity changes Recognized changes in ownership interests in subsidiaries accounted for using equity method	EMMT System Corporation
	$ - (6,416)
	($6,416)

－－ 55

Six months ended June 30, 2021:

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

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

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

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

7. RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

The Company is the ultimate controlling party of the Group.

7.2 Names of related parties and relationship categories

Name of relatedparty Yieh United Steel Corp. Yieh Mau Corp. Asiazone Co., Ltd. Zheng Xin Security Co., Ltd. Eliter International Corp. Unipattern Corporation Co., Ltd. E-Da Bus Transportation Co., Ltd. E-DA Tour Bus Co., Ltd. E-Da Development Corp.	Relatedpartycategory
	Associate Associate Associate Associate Associate Associate Associate Associate Associate

－－ 56

E-Da Cultural Creative Industry Co., Ltd. E- Da Visual Effects Company Limited. Tang rong iron works co., ltd. Xinzhan Engineering and Management Consultants Co., Ltd. Yieh Hong Enterprise Co., Ltd. Yieh Mau Corp. Li-Hsin Co., Ltd. Skylark International Hotel Co., Ltd. Pacific Harbor Stevedoring Corporation Royal Palace Hong Kong Style Restaurant Co., Ltd.

Jinghua Commercial Asset Management Limited

I-Hsiang-Le International Co., Ltd. Chiao-Ling Leisure Co., Ltd. New Spring Construction Corp.

E-Da Apartment Building Management and Maintenance Co., Ltd.

E-Da Royal Hotel Company Ltd. E-Da Hospital I-Shou University

I-Shou University Internship Center Long Hua Travel Services Co., Ltd. Yieh Mau International Co., Ltd. Shin Huo Environmental Engineering Co., Ltd Yu Hong Industrial Co., Ltd

E-Da Cancer Hospital

Guan Ying Enterprise Co., Ltd.

E-Da Dachang Hospital Zhengzi Technology Co., Ltd E-DA Healthcare Preschool

E-DA Preschool

E-DA Bassinet Mother and Baby Care Center E-DA Home Health Care

E-DA Nursing Care Center

E-DA Postpartum and Baby care Center Wei Hong Investment Development Co., Ltd. Lianshuo Investment Development Co., Ltd. Chain-dollars Enterprise Co., Ltd.

Lian Cheng Ready-Mixed Products Co., Ltd. E-DA Global International Co., Ltd.

You, Jing-Sheng

Chen, Yung-Shian

Associate Associate Associate Associate

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

Other related party

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

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

－－ 57

7.3 Significant transactions with related parties

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

Operating revenue

Item Sales revenue Construction revenue Item Sales revenue Construction revenue	Related party category Associates Other related parties Total Associates Other related parties Subtotal Less: construction revenue that are eliminated in consolidation Total Related party category Associates Other related parties Total Associates Other related parties Subtotal Less: construction revenue that are eliminated in consolidation Total	Three Months Ended June 30 2022 2021 $674,881 $498,082 712,736 535,167 $1,387,617 $1,033,249 $16,425 $2,013 26,599 29,726 43,024 31,739 (4,227) (9,451) $38,797 $22,288 Six Months Ended June 30 2022 2021 $1,818,412 $934,989 1,080,293 731,481 $2,898,705 $1,666,470 $32,219 $2,013 47,903 59,944 80,122 61,957 (14,527) (34,139) $65,595 $27,818
		2022 $1,818,412 1,080,293 $2,898,705 $32,219 47,903 80,122 (14,527) $65,595

(a) Selling price to the Group’s related parties, including hot rolled steel coils, galvanized steel coils, scraps (bars), etc. and trading terms were the same with those to other customers. Payment periods were within 1 to 2 months.
(b) Selling price of carbon steel and steel scraps to related parties were set with reference to the purchase price of a non-related party as a trading counterparty. Payment term was monthly and closes in 15 days.
(c) The construction contracts between the Group and above-mentioned related parties were established at prices negotiated by both parties. Contract proceeds were collected according to the collection clauses stated in these contracts. Unless agreed on by both parties, payments cannot be delayed.
(d) Since the Group contracted from and sub-contracted to related parties a portion of steel construction engineering at the same time, where the construction engineering belonged to the same project, the accounting treatment of which was deemed the same as such project would have been managed and supervised by other related parties. For the three months and six months ended June 30, 2022 and 2021, the eliminated construction revenue was $4,227 thousand, and $9,451 thousand, $14,527 thousand and $34,139 thousand, respectively.

－－ 58

2. Purchases

Purchases
Related party category Associate: Yieh United Steel Corp. Other Other related party: Yieh Hong Enterprise Co., Ltd Other Total Related party category Associate: Yieh United Steel Corp. Other Other related party: Yieh Hong Enterprise Co., Ltd Other Total	Three Months Ended June 30
	2022 2021 $1,773,315 $1,111,495 - 2,287,818 1,998,727 9,247 8,774 $4,070,380 $3,118,996 Six Months Ended June 30	2021
		$1,111,495 - 1,998,727 8,774
		$3,118,996
	2022 $2,982,222 110,729 3,817,594 17,778 $6,928,323	2021
		$2,083,264 - 3,320,892 17,649
		$5,421,805

(a) Items purchased by the Group from the above related parties were mainly stainless billets and carbon steel billets. The purchase prices were similar to that offered to other suppliers. Payment term was LC at sight (not significantly different than terms to other suppliers) or T/T before shipment. Payment 120 days after B/L date.
(b) For the six months ended June 30, 2022. The amount of associated companies entrusted the Group to sell stainless steel coils to the European Union amounted to $196,348 thousand, and the purchase amount of the aforementioned transaction was $192,096 thousand, The Group recognizes income on a net basis for the transaction, and the above disclosed purchase amount does not include the purchase of commissioned sales.

3. Contract assets

3. Contract assets
Related party category Associates Other related party: New Spring construction Corp. Total Less: Loss allowance Net	June 30,2022 $31,117 75,239 $106,356 - $106,356	December 31,2021 $1,199 37,021 $38,220 - $38,220	June 30,2021
			$773 3,440
			$4,213 -
			$4,213

－－ 59

4. Contract liabilities

4. Contract liabilities
Related party category June 30,2022 December 31,2021 Associates $3,634 $4,266 Other related parties 3,293 875 Total: $6,927 $5,141 5. Receivables from related parties (excluding loans to related parties) AccountingItem Related party category June 30, 2022 December 31, 2021 Notes receivable Associates $307 $59 Other related parties 33 266 Total 340 325 Less: Loss allowance - - Net $340 $325 Accounts Associate： receivable Asiazone Co., Ltd. $330,391 $100,257 Others 81,423 54,646 Other related parties 16,987 17,728 Total 428,801 172,631 Less: Loss allowance (3,224) (845) Net $425,577 $171,786 Other receivables Associate： Yieh United Steel Corp. $5,587 $64,575 Others 17,195 57 Other related parties 14,397 44,738 Total 37,179 109,370 Less: Loss allowance - - Net $37,179 $109,370 6. Payables to related parties (excluded loans from related parties) AccountingItem Related party category June 30, 2022 December 31, 2021 Notes payable Associates $1,129 $1,633 Other related parties 2,556 12,064 Total $3,685 $13,697 Accounts payable Associate： Yieh United Steel Corp. $50,940 $ - Others 1,188 593 Other related parties 6,519 5,901 Total $58,647 $6,494 Other payables Associates $7,917 $31,149 Other related parties 5,882 50,954 Total $13,799 $82,103		June 30,2021
		$164 29,510
		$29,674
		June 30, 2021
		$116 629
		745 -
		$745
		$330,017 65,451 3,944
		399,412 (1,627)
		$397,785
		$4,097 340 11
		4,448 -
		$4,448
		June 30, 2021
		$850 1,286
		$2,136
		$168,859 105 6,518
		$175,482
		$77,604 20,140
		$97,744

－－ 60

7. Prepayments Related party category Other related party: Yieh Hong Enterprise Co., Ltd. Others Associates Total	June 30,2022 $120,255 - 35 $120,290	December 31,2021 $55,604 - 30 $55,634	June 30,2021
			$203,595 3,085 35
			$206,715

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

Six months ended June 30, 2022 :

Six months ended June 30, 2022 :
Type of related party Associates	Transaction target Network switch, etc. (Note)	Transaction amount
		$7,378

Note: The above-mentioned transaction price was agreed on by both parties upon negotiation. As of June 30, 2022, the unpaid portion was $74 thousand.

Six months ended June 30, 2021:

Six months ended June 30, 2021:
Type of related party Other related party： New Spring Construction Corp. Others Associates	Transaction target Buildings and Structures (Note 1) Other equipment Computer communication equipment (Note 2)	Transaction amount
		$118,967 50 109,445

(Note 1) The above-mentioned transaction price was set by reference to appraisal reports offered by professional institutions, and were agreed on by both parties upon negotiation or through price comparison. As of June 30, 2021, the unpaid portion was $3,061 thousand
(Note 2) The above-mentioned transaction price was agreed on by both parties upon negotiation. As of June 30, 2021, the unpaid portion was $69,873 thousand.
(2)Disposal of property, plant and equipment:

Six months ended June 30, 2022 :

Type of related party Other related parties	Transaction target E-Da Health Biotechnology Co., Ltd.’ stocks	Transaction amount $7,600	Gains or loss on disposal
			$241

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 June 30, 2022, all the transaction amount was fully recovered.

Six months ended June 30, 2021: None.

－－ 61

9. Lease agreement

(1) acquire right-of-use assets: None.
(2) Lease Liability:

AccountingItem Lease Liability	Related party category Associates	June 30, 2022 $6,788	December 31, 2021 $18,424	June 30, 2021 $ -

(3) Other expenses:

Accounting Item Interest expense Rental expense Accounting Item Interest expense Rental expense	Related party category Associates Associates Other related parties Total Related party category Associates Associates Other related parties Total	Three Months Ended June 30	Three Months Ended June 30
		2022 2021 $30 $- $2,342 $1,659 1,437 992 $3,779 $2,651 Six Months Ended June 30	2021
			$-
			$1,659 992
			$2,651
		2022 $99 $4,423 3,310 $7,733	2021
			$-
			$3,303 1,341
			$4,644

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

10.Others

(1)Miscellaneous income

ers Miscellaneous income
Relatedpartycategory Associates Other related parties Total Relatedpartycategory Associates Other related parties Total	Three Months Ended June 30
	2022 2021 $18,475 $5,648 536 62 $19,011 $5,710 Six Months Ended June 30	2021
		$5,648 62
		$5,710
	2022 $24,353 1,287 $25,640	2021
		$10,191 143
		$10,334

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

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(2)Miscellaneous expenses

Miscellaneous expenses
Relatedpartycategory Associates Other related parties Total Relatedpartycategory Associates Other related parties Total	Three Months Ended June 30
	2022 2021 $16,724 $20,836 38,630 38,412 $55,354 $59,248 Six Months Ended June 30	2021
		$20,836 38,412
		$59,248
	2022 $39,446 76,329 $115,775	2021
		$38,610 65,851
		$104,461

These were mainly service charges and export expenses.

(3)Construction contracts

(a)Unfinished construction contracts with related parties as of June 30, 2022 were as follows:

Type of related party / Name Associates Other related party： New Spring Construction Corp.	Name of Project Precision steel belt factory crane assembly engineering, etc. Structures construction on the ground for E-Da Asia Commercial Plaza, etc.	Total contract price Contract assets / liabilities $81,276 $31,117 / - 4,233,567 (Note) 75,239 / 1,143

(b) Unfinished construction contracts with related parties as of December 31, 2021 were as follows:

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

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were as follows:
Type of related party / Name Name of Project Total contract price Associates Door type double host grab of overhead cranes, etc. $6,356 Other related party： New Spring Construction Corp. Structures construction on the ground for E-Da Asia Commercial Plaza, etc. 3,388,686 (Note)	Contract assets / liabilities
	$ 773/164 3,440/28,110

(Note) As stated in Note 7.3.1.(d), If the project of the related party contracted by the Group is the same project as the project contracted to the related party, the accounting treatment has been deemed to be handled by the related party only for project management and supervision.

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

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

12.Where the Group participated in the cash offering by related parties and consequently increased its investment are disclosed as follows: Six months ended June 30, 2022:

Investee Associate： E-Da Bus Transportation Co., Ltd. Xinzhan Engineering Consultants Co., Ltd.	InvestmentIncrement Shares (thousand shares) Amount 1,025 $10,252 450 4,500	ShareholdingPercentage	ShareholdingPercentage
	Shares (thousand shares) 1,025 450	Before Offering 17.09% 0.00%	After Offering
			17.09% 45.00%

Six months ended June 30, 2021.

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

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7.4 Information about remunerations to the major management:

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Three Months Ended June 30	Three Months Ended June 30
	2022 $27,667 659 - - - $28,326	2021
		$24,906 495 - - -
		$25,401

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Six Months Ended June 30	Six Months Ended June 30
	2022 $65,101 1,240 - - - $66,341	2021
		$51,652 961 - - -
		$52,613

8. PLEDGED ASSETS

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

Item Pledged demand deposits Pledged time deposits Subtotal of other financial assets - current Pledged demand deposits Pledged time deposits Subtotal of other financial assets - noncurrent Property, plant and equipment (net) Right-of-use asset Investment properties Investments accounted for using equity method Notes receivable and accounts receivable Total	June 30, 2022 $506,865 838,601 1,345,466 4,901 583,987 588,888 31,024,551 161,378 95,383 2,091,753 147,934 $35,455,353	December 31, 2021 $423,168 611,488 1,034,656 89,105 543,892 632,997 31,508,904 159,803 22,355 2,049,171 366,568 $35,774,454	June 30, 2021 $1,120,909 453,965 1,574,874 97,544 408,110 505,654 23,302,018 160,639 22,355 1,815,169 19,935 $27,400,644

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Guarantee notes issued by the Group to banks for loans and purchases performance totaled $53,047,212 thousand, $49,197,184 thousand, and $50,344,912 thousand as of June 30, 2022, December 31, 2021, and June 30, 2021, respectively.

(2) Guarantee notes received by the Group for its contract performance and creditor’s right totaled $1,803,288 thousand, $1,806,719 thousand, and $1,589,645 thousand as of June 30, 2022, December 31, 2021, and June 30, 2021, respectively.

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(3) The unused letters of credit as of June 30, 2022, December 31, 2021, and June 30, 2021 were as follows:

Item June 30, 2022 December 31, 2021 June 30, 2021 L/C Amount USD 35,862 USD 56,685 USD 65,761 NTD 685,863 NTD 597,440 NTD 915,317 JPY 7,657 JPY 4,116 EUR 57

(4) As of June 30, 2022, December 31, 2021, and June 30, 2021, guarantees provided to banks by the Group for vouchers sales, performance and warranty amounted to $212,342 thousand, $218,278 thousand, and $169,726 thousand, respectively.
(5) As of June 30, 2022, December 31, 2021, and June 30, 2021, guarantee letters of credit issued by the Group for export business totaled USD19,600 thousand, USD19,600 thousand, and USD14,600 thousand, respectively.
(6) The Group entered into raw material purchase agreements with suppliers of Hot Rolled Steel Coils, Zinc Ingot, Aluminum alloy and billets, including RIO TINTO, TENNANT, SAVERA PZE and MUKAND, etc. The price was agreed on by both parties upon negotiation. As of June 30, 2022, the unperformed portion totaled 19,624 tons, amounting to $490,377 thousand.
(7) Capital expenditures committed but not yet incurred are as follows:

Item June 30, 2022 December 31, 2021 June 30, 2021 Property, plant and $664,017 $163,041 $1,053,650 equipment

(8) Two subsidiaries, Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., entered into the syndicated loan agreements with Land Bank of Taiwan and First Commercial Bank in August 2014. Yieh United Steel Corp., Yieh Phui Enterprise Co., Ltd., and Yieh Hsing Enterprise Co., Ltd. issued a commitment letter before the first use that the Company and its related parties shall jointly hold more than 50% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd.’s issued shares and gain the majority of directors’ seats at all times. The Group held 100% shareholding of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd. and acquired all directors’ seats of both companies as of June 30, 2022.

10. SIGNIFICANT DISASTER LOSS: NONE.

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11. SIGNIFICANT SUBSEQUENT EVENTS

(1) 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. Lands located at Yuliao Rd., Qiaotou Dist and Ding-Yen-Tien Section in Qiaotou District. The contract period from April 1, 2015 to April 30, 2025, which is 10 years. In order to enable Shin Yang Steel Co., Ltd. to directly obtain land-ownership and fully develop to the utilization value of land. The Company's Board of Directors resolved on August 8, 2022 to sold the land of Yuliao Rd., Qiaotou Dist and DingYen-Tien Section in Qiaotou District, with a total area of 7,623.38 square meters and the buildings located on Yuliao Rd., Qiaotou Dist in Qiaotou District, with a total area of 353.68 square meters to Shin Yang Steel Co., Ltd. The total contract price was $2,567 million. The afore-mentioned transaction price was determined by both parties upon negotiation by reference to the appraisal report made by Evermore Real Estate Appraisers Firm and Mega Real Estate Appraisers Firm.
(2) In order to improve the financial structure. The Subsidiary, Yieh Hsing Enterprise Co., Ltd. signed a joint credit contract with 10 banks including Mega International Commercial Bank in June 2022 for a loan amount of $2,890,000 thousand to repay the old joint loan and purchase machinery equipment. The loan period from August 5,2022 to August 5,2027, which is 5 years.

12. OTHERS

(1) Seasonality or periodicity of operations

The operation of the Group’s is not influenced by seasonality and periodicity.

(2) Capital risk management

There were no significant changes in the Group’s policies for capital risk management for the six months ended June 30, 2022 as compared with the consolidated financial statements for the year ended December 31, 2021. Please refer to Note 12(1) of the consolidated financial statements for the year ended December 31, 2021 for the related information.

(3) Financial Instruments

(1) Financial risk of financial instruments
i. There were no significant changes in the Group's Financial risk management policies and objectives for the six months ended June 30, 2022 as compared with the consolidated financial statements for the year ended December 31, 2021. Please refer to Note 12(2) of the consolidated financial statements for the year ended December 31, 2021 for the related information.
ii.The nature and degree of significant financial risks
A. Market risks
- (A)Foreign exchange rate risk
  - a. There were no significant changes in the nature and degree of material financial risk for the six months ended June 30, 2022 as compared with the consolidated financial statements for the year ended December 31, 2021. Please refer to Note 12(2) of the consolidated financial statements for the year ended December 31, 2021 for the related information.
  - b. Exchange rate exposure and sensitivity analysis

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Exchange rate		June 30,2022	June 30,2022	June 30,2022
	Presented amount (New Taiwan Dollars) 4,073,091 2,768,266 593,970 787,849 179,132 2,723,860 843,244	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% December31,	Effects on profit or loss 40,731 27,683 5,940 - (1,791) (27,239) (8,432) 2021	Effects on Equity
29.72 6.6863 0.1496 29.72 29.72 6.6863 0.1496 Exchange rate				- - - 7,878 - - -
	Presented amount (New Taiwan Dollars) 2,253,819 1,993,046 692,092 729,878 194,642 1,614,286 2,602,190 760,915	SensitivityAnalysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1%	Effects on profit or loss 22,538 19,930 6,921 - (1,946) (16,143) (26,022) (7,609)	Effects on Equity
27.68 6.3757 0.1568 27.68 0.2405 27.68 6.3757 0.1568				- - - 7,299 - - - -

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Exchange rate		June 30, 2021	June 30, 2021	June 30, 2021
	Presented amount (New Taiwan Dollars) 2,481,687 1,445,573 381,950 100,027 723,523 202,947 2,091,175 3,011,480 99,792 753,643	Sensitivity Analysis
		Range of change Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1% Up 1%	Effects on profit or loss 24,817 14,456 3,820 1,000 - (2,029) (20,912) (30,115) (998) (7,536)	Effects on Equity
27.86 6.4709 0.1545 1.1853 27.86 0.2521 27.86 6.4709 7.6701 0.1545				- - - - 7,235 - - - - -

If NTD appreciates against the above-mentioned currencies, held all other variables constant, the impact generated as of June 30, 2022, December 31, 2021, and June 30, 2021 would stay the same with the reverse result.

c. Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Group’s monetary items amounted to $155,649 thousand, $49,775 thousand, $302,066 thousand and $23,511 thousand for the three months and six months ended June 30, 2022 and 2021, respectively.

(B) Price risk

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

The Group mainly invests in domestic listed and unlisted stocks and beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.
If the security price goes up or down by 1%, the post-tax profit or loss for the six months ended June 30, 2022 and 2021 will increase or decrease by $791 thousand and $3,332 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 six months ended June 30, 2022 and 2021 will increase or decrease by $7,266 thousand and $6,758 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

－－ 69

(C)Interest rate risk

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

	CarryingAmount
June 30,2022 $3,355,693 (1,683,681) $1,672,012 $5,874,284 (54,297,163) ($48,422,879)	December 31,2021 $1,423,766 (1,448,332) ($24,566) $6,401,162 (50,577,890) ($44,176,728)	June 30,2021
		$1,274,987 (1,405,735)
		($130,748)
		$3,794,646 (51,910,194)
		($48,115,548)

  - a. Sensitivity analysis of those with fair value interest rate risk: The Group classifies its investment in preferred stocks with fixed income as financial assets measured at FVTPL. Fair value of such preferred stock investment changes in line with the interest rate changes in the market. If the market interest rate goes up 1% and other variables are held constant, the profit or loss will decrease by $993 thousand for the six months ended June 30, 2021, respectively.

  - b. Sensitivity analysis of those with cash flow interest rate risk: The interest-fluctuate instruments possessed by the Group were floatinginterest assets (liabilities). Therefore, the effective interest rate, as well as the future cash flows, changes along with the market movement. Every one percent increase (decrease) in the market interest will decrease (increase) the net profit by ($242,114) thousand and ($240,578) thousand for the six months ended June 30, 2022 and 2021, respectively.

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

Credit risk related to operations

To maintain the quality of accounts receivable, the Group has established the procedures for credit risk management with regards to its operations.

Risk assessment on individual customer includes factors that could affect the customer's ability to pay, such as the customer's financial status, the Group’s internal credit ratings, historical transactions and current economic conditions. Financial credit risk

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

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(A) Credit concentration risk

As of June 30, 2022, December 31, 2021, and June 30, 2021 the top ten clients accounted for 53.79%, 42.07%, and 50.54% of the Group’s accounts receivable, indicating a credit concentration risk. However, no significant credit concentration risk was shown from the remaining accounts receivables.

(B) Measurement of expected credit impairment loss
a. Accounts receivables and contract assets apply the simplified approach. Please refer to Note 6.4 and Note 6.29 for details.
b. Indications for determining whether the credit risk is increased significantly: None (the Group does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI).
c. Collaterals and other credit enhancement held to avoid credit risks from financial assets:

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

Decreased	amount of maximumexposure to creditrisks	amount of maximumexposure to creditrisks	amount of maximumexposure to creditrisks
Collateral $ - - - $- Decreased	Net Settlement Agreement Other Credit Enhancement Total $ - $ - $ - - - - - - - $- $- $- amountof maximumexposureto credit risks		Total
			$ -
			- -
			$-
Collateral $ - - - $-	Net Settlement Agreement $ - - - $-	Other Credit Enhancement $ - - - $-	Total
			$ -
			- -
			$-

－－ 71

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

C. Liquidity risk

(A)Liquidity risk management

There were no significant changes in the Group's objects and policies for liquidity risk management for the six months ended June 30, 2022. Please refer to Note 12(2) of the consolidated financial statements for the year ended December 31, 2021 for the related information.

(B)Analysis of financial liabilities

		June 30,2022	June 30,2022	Carrying amount $16,484,351 1,603,669 1,454,478 1,200,695 2,724,328 80,012 37,812,812 17,236 $61,377,581 $1,401 Total undiscounted lease payments
Within 6 months	1-2 years	2-5 years	Over 5 years
$14,226,040 1,606,000 1,454,478 1,200,695 2,718,084 7,356 1,016,729 3,749	$ - - - - - 12,024 6,139,398 89	$ - - - - - 19,063 15,639,901 2,178	$ - - - - - 50,521 11,515,980 10,891
$22,233,131	$6,151,511	$15,661,142	$11,577,392
$ -	$ -	$ -	$ -
				$95,068

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Non-derivative financial Liabilities			December31,	December31,	2021
	Within 6 months	7-12 months	1-2 years $ - - - - - 15,190 4,847,415 87 $4,862,692	2-5 years $ - - - - - 25,798 15,225,175 2,735 $15,253,708	Over 5 years $ - - - - - 51,922 12,051,870 10,033 $12,113,825	Contractual cash flows $13,905,468 1,358,900 1,508,569 1,698,869 2,373,932 108,296 36,781,953 19,113 $57,755,100	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Lease liabilities (including current) Long-term loans (including current portion) Guarantee deposits received Subtotal	$11,752,928 1,358,900 1,508,569 1,698,869 2,354,977 7,733 1,256,938 5,346	$2,152,540 - - - 18,955 7,653 3,400,555 912					$13,905,468 1,356,226 1,508,569 1,698,869 2,373,932 92,106 36,672,422 19,113
	$19,944,260	$5,580,615					$57,626,705

Further information on lease liability maturity analysis was as follows:

Less than 1 year	Less than 1 year	1-5 years	5-10 years	5-10 years	10-15 years	10-15 years	15-20 years		Over 20 years $14,487	Total undiscounted lease payments
$15,386		$40,988	$12,879		$12,278		$12,278			$108,296
				June 30,2021
Within 6 months	7-12 months		1-2 years	2-5 years		Over 5 years $ - - - - - 53,274 12,135,873 9,321 $12,198,468 $ -		Contractual cash flows $16,008,811 1,331,000 1,305,953 1,653,268 1,686,912 92,562 36,025,357 20,431 $58,124,294 $11,506 as follows: Over 20 years $15,673	Contractual cash flows	Carrying amount
$14,693,669 1,331,000 1,305,953 1,653,268 1,678,779 3,198 1,533,320 7,666	$1,315,142 - - - - 5,655 1,357,475 43		$ - - - - 8,133 8,860 6,228,345 258	$ - - - - - 21,575 14,770,344 3,143					$16,008,811 1,331,000 1,305,953 1,653,268 1,686,912 92,562 36,025,357 20,431	$16,008,811 1,328,183 1,305,953 1,653,268 1,686,912 77,552 35,901,383 20,431
$22,206,853	$2,678,315		$6,245,596	$14,795,062					$58,124,294	$57,982,493
$11,506	$ -		$ -	$ -					$11,506	$11,506
										Total undiscounted lease payments
$8,853		$30,435	$13,045		$12,278		$12,278			$92,562

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

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(2) Types of Financial instruments Financial assets June 30, 2022 Financial assets measured at amortized cost Cash and cash equivalents $7,978,867 Notes receivables and accounts receivables (including related parties) 2,851,739 Other receivables(including related parties) 282,358 Other financial assets - current 1,760,208 Refundable deposits 58,278 Other financial assets - noncurrent 588,888 Financial assets at fair value through profit or loss - current 79,058 Financial assets at fair value through other comprehensive income or loss - noncurrent 726,636 Financial liabilities Financial liabilities measured at amortized costs Short-term loans 16,484,351 Short-term notes and bills payable 1,603,669 Notes receivables and accounts payable (including related parties) 2,655,173 Other payables (including related parties) 2,724,328 Long-term loans (including current portion) 37,812,812 Guarantee deposits 17,236 Lease liabilities (including due within one year) 80,012 Financial liabilities at fair value through profit or loss - current 1,401	December 31, 2021 $7,209,529 2,854,764 400,285 1,131,517 59,834 632,997 289,451 797,724 13,905,468 1,356,226 3,207,438 2,373,932 36,672,422 19,113 92,106 -	June 30, 2021
		$3,374,709 3,934,143 253,455 1,671,779 199,192 505,654 333,194 675,794 16,008,811 1,328,183 2,959,221 1,686,912 35,901,383 20,431 77,552 11,506

(4) 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 for details.
Definition of the three levels in fair value
Level 1

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

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Level 2

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

Level 3

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

Financial instruments not measured at fair value

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

Fair value hierarchy

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

the following table:
Item Assets: Recurring fair value Financial assets at fair value through profit or loss Non-derivative financial assets held for trading Financial assets measured at FVTOCI Domestic unlisted stocks Domestic listed stocks Total Liabilities: Recurring fair value Financial liabilities at fair value through profit or loss Derivative financial instruments		June	30, 2022
	Level 1 $79,058 - 21,531 $100,589 $-	Level 2 $ - - - $- $1,401	Level 3 $ - 705,105 - $705,105 $-	Total
				$79,058 705,105 21,531
				$805,694
				$1,401

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	December 31, 2021	December 31, 2021
Level 1 $28,449 - - 24,244 $52,693	Level 2 $ - - - - $- June	Level 3 $ - 261,002 773,480 - $1,034,482 30, 2021	Total
			$28,449 261,002 773,480 24,244
			$1,087,175

Level 1 $48,547 - - 25,690 $74,237 $-	Level 2 $ - - - - $- $11,506	Level 3 $ - 284,647 650,104 - $934,751 $-	Total
			$48,547 284,647 650,104 25,690
			$1,008,988
			$11,506

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.

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The fair value of financial instruments with active markets held by the Group are stated by their natures and types as follows:

  - a. Listed stocks: closing prices.

  - b. Open-end funds: net worth.

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

Item Beginning balance Disposal Transferred to Investments accounted for using equity method Proceeds from capital reduction Recognized in profit and loss Recognized in other comprehensive income Ending balance	Investment in unquoted financial instruments	Investment in unquoted financial instruments
	SixMonths Ended June 30
	2022 $1,034,482 - (261,002) (15,484) - (52,891) $705,105	2021
		$1,358,196 (29,925) (379,811) (847) 1,807 (14,669)
		$934,751

－－ 77

Valuation process for Level 3 fair value measurement: Valuation process regarding fair value Level 3 is conducted by the Group’s finance department, by which the independence of fair value of financial instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.
The unlisted company stocks held by the Group in an inactive market are mainly based on the market method and net asset value method to estimate the fair value. The market method is judgment is based on the same type of company evaluation, third party quotation, company net value and operating status assessment. The net assets method is based on the assets on the balance sheet of the enterprise as the main basis for evaluating the value of the enterprise.
9.Quantified information on value fair measured on the basis of major unobservable input value (Level 3):
Part of unlisted stocks are mainly based on market method and net asset value method, in which significant unobservable inputs include liquidity discounts and control premiums. When liquidity discounts decrease or control discount increase, the fair value of these investments will increase.
10.The sensitivity analysis of the fair value on assumption that could possibly and reasonable be substituted for measurement of Level 3 fair value:
The assets measured by the fair value of the third level of the fair value hierarchy of the Group are used to measure the significant unobservable inputs of fair value.

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

－－ 78

(5) Transfer of financial assets:

1. Transferred financial assets fully derecognized

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

Six months ended June 30, 2022:

Counter-party	Advance Amount - Beginningof the Period	Factoring Amount	Amount Collected in Cash	Advance Amount - End of the Period	Annual Interest Rate for the Advance Amount	Line of Credit EUR 500 Line of Credit EUR 3,200
				5,349 (EUR 173) Advance Amount - End of the Period	1.17% Annual Interest Rate for the Advance Amount
Chang Hwa Bank	- (EUR 0)	1,801 (EUR 52)	1,801 (EUR 52)	- (EUR 0)	1.16464%

2. Transferred financial assets not fully derecognized: None.

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

(7) Other:

Considering the increasingly fierce competition in the stainless steel market after the rise of the steel industry in China and Indonesia, The Group intends to achieve economies of scale in integration of production and marketing operations with Yieh United Steel Corp. through a strategic alliance with Tang Rong Iron Works Co., Ltd., and jointly boost the international competitiveness of Taiwan's stainless steel industry. The Company's Board of Directors resolved on May 4, 2022 to apply to the Fair Trade Commission for the merger of Tang Rong Iron Works Co., Ltd., which will jointly operate by Yieh United Steel Corp. The Group will carry out the plan of acquiring the equity of Tang Rong Iron Works Co., Ltd. after obtaining the permission of the Fair Trade Commission. The Group and Yieh United Steel Corp. will directly or indirectly acquire more than 1/3 or more than 50% equity of Tang Rong Iron Works Co., Ltd. through public acquisition or other means.

－－ 79

13. SUPPLEMENTARY DISCLOSURES

A. Significant transactions information
(a)Financing provided to others (Table 1)
(b)Endorsements/guarantees provided (Table 2)
(c)Marketable securities held (excluding investments in subsidiaries and associates) (Table 3)
(d)Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital :None.
(e)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital :None.
(f)Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital :None.
(g)Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
(h)Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
(i)Trading in derivative instruments (Note 6.2)
(j)The business relationship between the parent and the subsidiaries and significant transactions between them (Table 6)
B. Information on investees (Table 7)
C. Information on investments in mainland China (Table 8)
D. Information of major shareholders: List all shareholders with a stake of 5 percent or greater in shareholding percentage and the number of shares. (Table 9)

－－ 80

TABLE 1

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Financing provided to others June 30, 2022

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	3,155,046 (RMB190,720) (USD 83,470)	2,704,056 (RMB 131,817) (USD 71,270)	2,704,056 (RMB 131,817) (USD 71,270)	4.25%- 7.45%	2	－	Operating capital	－	－	－	12,916,513 (Note 3)	12,916,513 (Note 3)
2	Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Long-term receivable – relatedparty	Y	225,360 (RMB 50,000)	222,245 (RMB 50,000)	222,245 (RMB 50,000)	3.85%- 4.00%	2	－	Operating capital	－	－	－	12,916,513 (Note 3)	12,916,513 (Note 3)
3	Shin Yang Steel Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	208,040 (USD 7,000)	208,040 (USD 7,000)	－	2.00%	2	－	Operating capital	－	－	－	416,172 (Note 2)	416,172 (Note 1)
4	Applied Wireless Identifications Group, Inc.	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	89,680 (USD 3,200)	－	－	2.35%	2	－	Operating capital	－	－	－	122,148 (Note 2)	122,148 (Note 1)
5	EMMT Systems Corporation	Yieh Phui (Hong Kong) Holdings Limited	Other receivables - relatedparty	Y	166,950 (USD 6,000)	－	－	2.00%	2	－	Operating capital	－	－	－	333,890 (Note 2)	333,890 (Note 1)

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

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

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

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

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

－－ 81

TABLE 2

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Endorsements/guarantees provided June 30, 2022

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	32,291,283	6,310,080 (RMB 1,400,000)	6,222,860 (RMB 1,400,000)	1,836,855 (RMB 413,250)	－	19.27%	32,291,283	Y	－	Y
		Shin Yang Steel Co., Ltd.	Subsidiary of the Company	32,291,283	1,236,000	656,000	307,391	336,000	2.03%	32,291,283	Y	－	－
		Yieh Phui (Hong Kong) Holdings Limited	Subsidiary of the Company	32,291,283	3,180,838 (USD 113,500)	3,180,040 (USD 107,000)	2,767,263 (USD 64,750) (RMB 189,632)	－	9.85%	32,291,283	Y	－	－
1	Shin Phui Steel Corporation (Note 2)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	1,277,704	981,890	981,890	981,890	981,890	384.24%	1,277,704	－	Y	－
2	Kings Garden International Co., Ltd. (Note 3)	Great Emperor Hotel Co., Ltd.	The same ultimate parent company	31,304,381	8,175,000	8,175,000	8,175,000	8,175,000	182.80%	31,304,381	－	－	－
3	Great Emperor Hotel Co., Ltd. (Note 4)	Kings garden International Co., Ltd.	The same ultimate parent company	33,515,990	7,583,000	7,583,000	7,299,000	7,583,000	158.38%	33,515,990	－	－	－
4	Shin Yang Steel Co., Ltd. (Note 6)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	3,121,289	900,000	900,000	210,000	900,000	86.50%	3,121,289	－	Y	－
5	Yieh Phui (China) Technomaterial Co., Ltd. (Note 5)	Tianjin Lianfa Precision Steel Corporation	Subsidiary of the Company	9,942,064	44,756 (RMB 9,930)	15,246 (RMB 3,430)	15,246 (RMB 3,430)	－	0.15%	9,942,064	Y	－	Y
6	Sin Bang Investment & Development Co., Ltd.(Note 7)	United Brightening Development Corp.	The same ultimate parent company	490,205	200,000	200,000	200,000	200,000	81.60%	490,205	－	－	－

－－ 82

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

－－ 83

TABLE 3

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Marketable securities held (excluding investments in subsidiaries and associates) June 30, 2022

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

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of June 30, 2022	As of June 30, 2022	As of June 30, 2022	As of June 30, 2022
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Fund/ Fubon 3-Year Maturity Asia USD Bond Fund	None	Financial assets at fair value through profit or loss - current	500	4,380	－	4,380
	Fund/ JPMorgan Funds – US Technology Fund - JPM US TechnologyF(acc)–USD	None	Financial assets at fair value through profit or loss - current	1	2,934	－	2,934
	Fund/Allianz Global Investors Income and Growth Fund A USD	None	Financial assets at fair value through profit or loss - current	13	4,202	－	4,202
	Fund/ Mega Global Metaverse Tech Fund	None	Financial assets at fair value through profit or loss - current	1,300	12,493	－	12,493
	Fund/ CTBC ESG Carbon Transtion Multi-Asset Fund	None	Financial assets at fair value through profit or loss - current	500	4,920	－	4,920
	Fund/ FSITC Taiwan Core Strategic Infrastructure fund	None	Financial assets at fair value through profit or loss - current	601	5,866	－	5,866
	Fund/ TCB Global Core Infrastructure Income Fund	None	Financial assets at fair value through profit or loss - current	500	4,985	－	4,985
	Fund/Allianz Global Investors Income and Growth Fund A TWD	None	Financial assets at fair value through profit or loss - current	437	4,974	－	4,974
		Total			44,754		44,754
	Stock/ TaiwanVes-Power Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	252	75,799	3.60%	75,799
	Stock/ New Spring Construction Corp.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	17,003	126,577	15.49%	126,577
	Stock/ Taiwan Implant Technology Company, Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	701	3,518	4.20%	3,518
	Stock/ Sunny Bank	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	4,723	50,752	0.16%	50,752
	Stock/ Universal Venture Capital Investment Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,100	6,931	0.91%	6,931
	Stock/ Yieh Corporation Limited	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	200	110,003	4.18%	110,003

－－ 84

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of June 30, 2022	As of June 30, 2022	As of June 30, 2022	As of June 30, 2022
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s director	Financial assets at fair value through other comprehensiveincome or loss- noncurrent	150	4,352	3.00%	4,352
	Stock/ Image DJ 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	7,612	0.79%	7,612
	Stock/ Skylark International Hotel Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensiveincome or loss- noncurrent	20,528	280,226	13.68%	280,226
	Stock/ Neolink Capital Corp.	None	Financial assets at fair value through other comprehensiveincome or loss- noncurrent	3,000	25,573	2.57%	25,573
	Stock/ TBB VENTURE CAPITAL CO., LTD.	None	Financial assets at fair value through other comprehensiveincome or loss- noncurrent	－	8,875	－	8,875
	Stock/ Asia Pacific Telecom Co., Ltd.	None	Financial assets at fair value through other comprehensiveincome or loss- noncurrent	2,949	21,531	0.07%	21,531
		Total			722,284		722,284
Worthing Honor Holdings Ltd.	Stock/ SEE Corporation	None	Financial assets at fair value through profit or loss - current	1	－	－	－
United Brightening Development Corp.	Fund/ Mega Global Metaverse Tech Fund	None	Financial assets at fair value through profit or loss-current	300	2,883	－	2,883
	Fund/ TCB Global Core Infrastructure Income Fund	None	Financial assets at fair value through profit or loss-current	100	997	－	997
		Total		400	3,880		3,880
Kings Garden International Co., Ltd.	Fund/ PGIM Global New Supply Chain Fund	None	Financial assets at fair value through profit or loss - current	500	4,705	－	4,705
	Fund/ FSITC Taiwan Core Strategic Infrastructure fund	None	Financial assets at fair value through profit or loss-current	300	2,928	－	2,928
		Total		800	7,633		7,633
EMMT Systems Corporation	Fund/ Cathay US ESG Fund	None	Financial assets at fair value through profit or loss-current	180	1,620	－	1,620
Yieh Hsing Enterprise Co., Ltd	Fund/Dah-Fa Fund	None	Financial assets at fair value through profit or loss-current	39	1,664	－	1,664
	Fund/ Mega Global Metaverse Tech Fund	None	Financial assets at fair value through profit or loss-current	800	7,688	－	7,688
	Fund/ CTBC ESG Carbon Transtion Multi-Asset Fund	None	Financial assets at fair value through profit or loss-current	500	4,920	－	4,920
	Fund/ FSITC Taiwan Core Strategic Infrastructure fund	None	Financial assets at fair value through profit or loss-current	400	3,908	－	3,908
	Fund/ TCB Global Core Infrastructure Income Fund	None	Financial assets at fair value through profit or loss-current	300	2,991	－	2,991
		Total			21,171		21,171
Yieh Hsing Enterprise Co., Ltd	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s chairman	Financial assets at fair value through other comprehensiveincome- noncurrent	150	4,352	3.00%	4,352

－－ 85

TABLE 4

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital For The Six Months Ended June 30, 2022

			For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022	For The Six Months Ended June 30, 2022
			Unit: Thousands of NT Dollars/Foreign Currency
Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Yieh Phui Enterprise Co., Ltd.	Yieh Hong Enterprise Co., Ltd.	Related party in substance	Purchases			T/T or Sight L/C before goods acceptance.	－	－	－	－	－
				3,817,594	23.58%

	Yieh United Steel Corporation	An investee accounted for using equity method	Sales			Galvanized steel coils； payment periods were within 1-2 months. carbon steel: payment term is monthly, and closes in 15 days. Project is contractually agreed	－	－	65,824	3.23%	Accounts receivable
				204,103	0.94%

			Purchases			T/T or Sight L/C before goods acceptance	－	－	－	－	－
				259,671	1.60%

	Yieh Mau Corp	Related party in substance	Sales			1-2 months	－	－	－	－	－
				1,014,071	4.68%

	Asiazone Co., Limited	An investee accounted for using equitymethod	Sales			1-2 months	－	－	311,099	15.29%	Accounts receivable
				1,357,735	6.26%

	Shin Yang Steel Co., Ltd.	Subsidiary of the Company	Sales	485,614	2.24%	1-2 months	－	－	105,007	5.16%	Accounts receivable
	Shin Phui Steel Corporation	Subsidiary of the Company	Sales	178,184	0.82%	1-2 months	－	－	23,209	1.14%	Accounts receivable
Shin Yang Steel Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equitymethod	Purchases	387,353	18.11%	T/T or Sight L/C before goods acceptance.	－	－	10,708	8.86%	Accounts payable
Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	Sales	182,908 (RMB 41,413)	1.13%	1-4 months	－	－	129,445 (RMB 29,122)	20.28%	Accounts receivable

－－ 86

Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Yieh Phui (China) Technomaterial Co.,Ltd.	Asiazone Co., Limited	An investee of the Parent Company under equity method.	Sales	193,272 (USD 6,856)	1.21%	1-2 months	－	－	19,292 (USD 649)	3.02%	Accounts receivable
Yieh Hsing Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	2,335,198	75.68%	T/T or Sight L/C before goods acceptance.	－	－	40,232	35.71%	Accounts payable
	Asiazone Co., Limited	An investee of the Parent Company under equity method.	Purchases	110,729	3.59%	Payment 120 days after B/L date	－	－	－	－	－

(Note 1): For the six months ended June 30, 2022. The amount of associated companies entrusted the Group to sell stainless steel coils to the European Union amounted to $196,348 thousand, and the purchase amount of the aforementioned transaction was $192,096 thousand, The Group recognizes income on a net basis for the transaction, and the above disclosed purchase amount does not include the purchase of commissioned sales.

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

－－ 87

TABLE 5

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital June 30, 2022

					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	311,099	13.2	－	－	219,647	－
	Shin Yang Steel Co., Ltd.	Subsidiaries	105,007	10.35	－	－	105,007	－
Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Subsidiaries	2,704,056 (RMB 131,817) (USD71,270)	(Note 1)	－	－	－	－
Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	222,245 (RMB 50,000)	(Note 1)	－	－	－	－
			129,445 (RMB 29,122)	1.95	－	－	RMB 3,000	－

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

(Note 2): Amounts received as of August 8, 2022.

(Note 3): Transactions between the aforesaid subsidiaries and the parent company have been written off.

－－ 88

TABLE 6

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Intercompany Relationship and Significant Intercompany Transactions For The Six Months Ended June 30, 2022

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

Unit: Thousands of NT Dollars/Foreign Currency

					Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)		Transaction
				Account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0	Yieh Phui Enterprise Co., Ltd.	Shin Phui Steel Corporation	1	Right-of-use asset	77,900	－	0.08%
				Sales revenue	178,184	The payment period is 1-2 months after shipment	0.39%
		Shin Yang Steel Co., Ltd.	1	Sales revenue	485,614	The payment period is 1-2 months after shipment	1.05%
				Accounts receivable	105,007		0.11%
1	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	1	Long-term receivables and other receivables		－	2.77%
					2,704,056
					(RMB 131,817)
					(USD 71,270)

2	Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	1	Sales revenue	182,908	The payment period is 1-4 months after shipment	0.40%
					(RMB 41,413)
				Accounts receivable	129,445 (RMB 29,122)		0.13%
				Long-term receivables	222,245 (RMB 50,000)	－	0.23%

－－ 89

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Transactions between the aforesaid subsidiaries and the parent company have been written off.

－－ 90

TABLE 7

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information on Investees June 30, 2022

Unit: Thousands of NT Dollar/ Foreign Currency

						Unit: Thousands of NT	Unit: Thousands of NT	Unit: Thousands of NT	Dollar/ Foreign	Currency
Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as the period-end			Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Hong Kong	Investment	7,455,887	7,455,887	233,500	100.00%	9,908,891	(277,016)	(277,016)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	3,030,403	2,833,595	303,290	30.22%	2,765,851	(141,321)	(43,692)
	Yieh Hsing Enterprise Co., Ltd.	Kaohsiung City	Wire rods trading	2,261,296	2,261,296	304,654	57.41%	906,375	(172,932)	(93,833)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,453,572	1,453,572	39,553	11.30%	1,373,243	329,972	37,290
	E-Da Development Corp.	Kaohsiung City	Leisure development	2,096,196	2,096,196	209,619	28.44%	931,241	(276,624)	(78,678)
	United Brightening Development Corp.	Kaohsiung City	Technical consultation for steel products manufacturing	1,887,263	1,815,593	158,060	95.56%	1,788,511	45,586	43,563
	Shin Yang Steel Co., Ltd.	Kaohsiung City	Steel products related business	870,000	870,000	98,220	100.00%	1,357,141	314,655	314,640
	Yieh Mau Corp.	Kaohsiung City	Trading & manufacturing	422,605	422,605	55,291	23.00%	731,201	112,848	61,423
	Kuo Chang Enterprise Co., Ltd.	Kaohsiung City	Wholesale of hardware	1,385,973	1,356,261	110,341	99.04%	1,318,779	32,809	32,494
	Asiazone Co., Limited	Hong Kong	Steel trading	595,424	595,424	15,090	32.80%	685,737	6,416	2,104
	Shin Phui Steel Corporation	Kaohsiung City	Trading of steel products	214,236	214,236	23,917	100.00%	264,017	3,561	4,090
	Sin Bang Investment & Development Co.,Ltd.	Kaohsiung City	Investment	263,709	263,709	19,103	100.00%	251,398	6,565	6,565

－－ 91

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
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	310,348	310,348	48,840	78.51%	691,422	96,956	76,120
	Good Honor Holdings Ltd.	British Virgin Islands	Investment	14,723	14,723	46	100.00%	4,060	(6)	(6)
	Gen-Wan Technology Corp.	Kaohsiung City	Telecommunication	148,610	148,610	3,951	86.99%	61,809	7,215	6,276
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	14,000	14,000	1,400	35.00%	8,488	2,571	900
	E-Da Bus Transportation Co., Ltd.	Kaohsiung City	Bus transportation	70,259	60,007	1,845	17.09%	6,310	(29,313)	(5,008)
	E-DA Tour Bus Co., Ltd.	Kaohsiung City	Bus transportation	20,900	20,900	1,349	19.00%	11,497	(4,372)	(831)
	Worthing Honor Holdings Ltd.	British Virgin Islands	Investment	6,672	6,672	100	100.00%	2,745	1	1
	E United Japan Co., Ltd.	Japan	Steel trading	8,027	8,027	-	47.00%	3,258	(683)	(321)
	Skylark Hot Spring & Resort Corp.	Kaohsiung City	Hotel industry	11,700	11,700	1,170	14.63%	-	(1,251)	-
	E-Da Entertainment Co., Ltd.	Kaohsiung City	Entertainment industry	74,100	74,100	7,410	19.00%	56,082	(58)	(11)
	Li Hui Development Co., Ltd.	Kaohsiung City	Investment	321,216	321,216	64,045	44.56%	299,133	(4,105)	(1,829)	(Note 1)
	Ji Chang Enterprise Co., Ltd.	Kaohsiung City	Investment	5,050	5,050	1,042	45.00%	4,639	(12)	(5)	(Note 1)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	5,023,625	5,023,625	676,661	25.82%	4,149,048	1,107,025	247,822	(Note 1)
	Hong Yuh Assets Management Co., Ltd.	Kaohsiung City	Management service	1,375,200	1,207,200	140,720	80.00%	526,901	(41,327)	(33,061)

－－ 92

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
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	E-Da Visual Effects Company Limited.	Kaohsiung City	Entertainment industry	27,543	27,543	3,185	49.00%	-	(5,309)	(207)
	Lian So(H.K) Co., Limited	Hong Kong	Investment	507,342	507,342	16,560	80.00%	243,773	(18,931)	(15,145)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	-	3,800	-	-	-	(12)	(2)
	Yieh Phui America Inc.	U.S.	Trading of steel products	292	292	1	100.00%	(3,122)	1,407	1,407
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	3,265,100	3,007,600	317,000	60.15%	2,772,369	(301,742)	(179,527)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,657,400	2,657,400	258,000	54.89%	2,368,358	(157,604)	(86,514)
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	3,200	-	320	32.00%	2,948	(789)	(252)
	Total			35,801,871	35,068,529			33,492,103	634,180	18,757
Shin Phui Steel Corporation	Groupco Technology Inc.	Taichung City	RADIO	37,492	37,492	3,830	42.53%	3,877	(181)	(77)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	24,562	24,562	3,178	0.12%	19,880	1,107,025	1,133	(Note 1)
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	515	515	50	0.01%	437	(301,742)	(29)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	515	515	50	0.01%	459	(157,604)	(17)
Gen-Wan Technology Corp.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	27,630	27,630	4,653	7.48%	70,518	96,956	7,251

－－ 93

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
EMMT Systems Corporation	Groupco Technology Inc.	Taichung City	RADIO	45,000	45,000	4,500	49.97%	4,556	(181)	(91)
	Applied Wireless Identifications Group, Inc.	San Francisco, US	RFID	242,545	242,545	40,488	88.69%	296,600	28,260	25,246
	UniPattern Corporation	Kaohsiung City	Manufacturing of computer and peripherals	54,960	54,960	5,200	43.33%	66,632	10,454	(1,693)
Applied Wireless Identifications Group, Inc.	AWID Asia Co., Ltd.	Kaohsiung City	Telecommunications equipment wholesale	74,573	69,454	3,030	100.00%	15,243	(3,075)	(3,075)
Shin Yang Steel Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	17,385	17,385	2,195	0.08%	13,733	1,107,025	783	(Note 1)
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	500	-	50	5.00%	461	(789)	(39)
Sin Bang Investment & Development Co., Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	265,482	265,482	7,224	2.07%	250,810	329,972	6,811
Kuo Chang Enterprise Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	439,197	439,197	56,817	2.17%	355,468	1,107,025	20,260	(Note 1)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	256,709	241,748	25,053	2.50%	228,546	(141,321)	(3,509)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	786,714	786,714	21,328	6.09%	1,038,857	329,972	20,107
United Brightening Development Corp.	Chao Ying Investment Development Co., Ltd.	Kaohsiung City	Investment	341,992	341,992	30,400	100.00%	309,634	7,927	7,927
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	449,508	449,508	58,151	2.22%	363,813	1,107,025	20,736	(Note 1)

－－ 94

Investor	Investee	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
United Brightening Development Corp.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,177,838	1,177,838	32,050	9.16%	1,541,031	329,972	30,216
	Eliter International Corp.	Kaohsiung City	Construction of buildings	368,542	363,755	34,292	3.42%	312,825	(141,321)	(3,593)
Chao Ying Investment Development Co., Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	336,957	336,957	8,898	2.54%	308,930	329,972	8,389
Hong Yuh Assets Management Co., Ltd.	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	542,365	542,365	1,740	49.36%	273,331	(33,814)	(16,691)
	Prepayment of stock subscription- Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	142,180	55,440	-	-	142,180	-	-
	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	1,633	1,633	0.05	10.00%	189	(304)	(30)
	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	100,303	100,303	3,787	19.00%	48,437	(10,875)	(5,182)
	Prepayment of stock subscription - Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	7,367	7,367	-	-	7,367	-	-
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	9,371	9,371	381	75.00%	(45,713)	(4,547)	(3,411)
	Prepayment of stock subscription - Lien Heng Mining Co.,Ltd.	Indonesia	Nickle mining	69,365	69,365	-	-	69,365	-	-
	Asiamax Mining Indonesia	Indonesia	Nickle mining	89,386	89,386	55	100.00%	46,352	(2,672)	(2,672)
Lian So (H.K) Co., Limited	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	13,374	12,456	0.45	90.00%	1,700	(304)	(274)
	Lian Yang (Hong Kong) Trading Limited	Hong Kong	Trading business	2,972	2,768	100	100.00%	13,782	(17)	(17)
	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	530,502	494,088	1,785	50.64%	280,400	(33, 814)	(17,123)

－－ 95

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
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
Lien-Hsin steel Co., Ltd.	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	410,207	410,207	16,142	81.00%	194,542	(10,875)	(22,090)
	Prepayment of stock subscription - Lien-Hung MiningCo.,Ltd.	Indonesia	Nickle mining	72,393	72,393	-	-	72,393	-	-
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	18,586	18,586	127	25.00%	(15,238)	(4,547)	(1,136)
Yieh Hsing Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	2,099,500	2,099,500	209,950	39.84%	1,836,148	(301,742)	(122,186)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,119,500	2,119,500	211,950	45.10%	1,945,634	(157,604)	(71,073)
	United Winner Metals L.P	Virginia, US	Scrap steel recycling	107,149	107,334	-	33.75%	102,112	6,249	2,109
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	4,000	4,000	400	10.00%	2,425	2,571	257
	Eliter International Corp.	Kaohsiung City	Construction of buildings	748,895	704,450	74,427	7.42%	678,955	(141,321)	(10,425)
	E-Da Development Corp.	Kaohsiung City	Leisure development	437,915	437,915	43,791	5.94%	196,084	(276,624)	(16,437)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related business	20,204	20,204	2,542	0.10%	15,628	1,107,025	927	(Note 1)
	E-Da Health Biotechnology Co., Ltd.	Kaohsiung City	Manufacturer of food additives	-	3,800	-	-	-	(12)	-
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	800	-	80	8.00%	737	(789)	(63)

－－ 96

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
				June 30, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value
Kings Garden International Co., Ltd.	Hua Li International Co., Ltd.	Kaohsiung City	Daily necessities, cosmetics wholesaler	60,000	60,000	6,000	100.00%	12,690	(16,043)	(16,043)
	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,432	(162)	(21)
Great Emperor Hotel Co., Ltd.	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,432	(162)	(21)

(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.

－－ 97

TABLE 8

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information on Investment in Mainland China For The Six Months Ended June 30, 2022

Unit: Thousands of NT Dollar/ Foreign Currency

Name of	Name of	Investee in Mainland China	Main business activities	Main business activities	Total Amount of Paid-in Capital	Investment method (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2022	Accumulated Outflow of Investment from Taiwan as of January 1, 2022	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2022	Accumulated Outflow of Investment from Taiwan as of June 30, 2022	Net Income (Loss) of the Investee	Ownership held by the Company (direct or indirect) (%)	Share of Profit/Loss (Note 2)	Share of Profit/Loss (Note 2)	Carrying Amount as of June 30, 2022	Accumulated Inward Remittance of Earnings as of June 30, 2022
									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		7,019,864 (USD 236,200) (Note 6)	(2) a	6,939,620 (USD 233,500)		－	－	6,939,620 (USD 233,500)		(293,397)	100%	(293,397) (2) 2		9,942,064	－
		Changshou ChangHuei Trading Co.	Trading of steel products		44,449 (RMB 10,000)	(2) a (Note 4)	－		－	－	－		266	100%	266 (2)3		47,955	－
		Tianjin Lianfa Precision Steel Corporation	Manufacturing and marketing of special highgrade alloy		401,220 (USD 13,500)	(2) a (Note 5)	－		－	－	－		(21,157)	100%	(21,157) (2) 3		(155,149)	－

				Investee in Mainland China				Accumulated Investment in Mainland China as of June 30, 2022				Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment
		Investor
	Yieh Phui Enterprise Co., Ltd.			Yieh Phui (China) Technomaterial Co., Ltd.				6,939,620 (USD 233,500)				7,019,864 (USD 236,200)				19,374,770

－－ 98

(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: 29.72; RMB: NTD 1: 4.4449). Investment gain or loss recognized in the current period is converted using the average exchange rate in from January 1 to June 30, 2022 (USD: NTD 1: 28.6279; RMB: NTD 1: 4.4168).
(Note 4): Yieh Phui (China) Technomaterial Co., Ltd. invests in Changshou ChangHuei Trading Co. with equity funds of RMB 10 million. As of June 30, 2022, accumulated investment amounted to RMB 10 million.
(Note 5): The Company originally holds 100% of Tianjin Lianfa Precision Steel Corporation Beneficiary (paid-in capital equals USD 13,500 thousand) through its holding in Hsing Jui Investments Limited. It transferred its ownership to Yieh Phui (China) Technomaterial Co., Ltd. at RMB 20,000 thousand in July 2015. The said proceed, net of tax, of RMB 19,990 thousand (equivalent to USD 3,213 thousand) has been transferred back to the Company’s account in Taiwan.
(Note 6): Yieh Phui (China) Technomaterial Co., Ltd. recapitalized its retained earnings of USD 2,700 thousand in April 2016.
(Note 7): AWID Changshou Co., Ltd.. was liquidated in June 2021, AWID Sanghai Co., Ltd.. was liquidated in July 2020, 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$ 529,431 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 June 30, 2022, directly or indirectly through the third area are as follows:
Significant transactions between the Company and investees in China: Table 4 attached ~ Table 6 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.

－－ 99

TABLE 9

Yieh Phui Enterprise Co., Ltd. and Subsidiaries Information of Major Shareholders June 30, 2022

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

Note: The information of major shareholders is based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (included treasury shares) by the Company as of June 30, 2022. The share capital in consolidated financial report may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

－－ 100

14.Segment Information

(1) General information

For the purpose of management, the Group separates its operations based on business unit and have four reportable segments as below:

Business Unit Yieh Phui: Primarily engaging in manufacturing and marketing of coated steel and manufacturing and installation of crane.
Business Unit Yieh Hsing: Primarily engaging in manufacturing and selling of wire rods.
Business Unit Yieh Phui (China, including Yieh Phui Hong Kong): Primarily engaging in manufacturing and selling of coated steel.
Business Unit Great Emperor: Primarily engaging in Hotel, Leisure development, and restaurants.
Business Unit Kings Garden: Primarily engaging in department stores.
Other business units: Primarily engaging in manufacturing and selling of steel, iron, and military supplies, wholesale of telecommunication equipment, and investment.

(2) Measurement basis

Management monitors the operation results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss before tax and is measured consistently with profit or loss before tax in the consolidated financial statements. Furthermore, because the information of assets and liabilities is not reported to the chief operating decision maker for operation decision making, segment assets and liabilities are measured as zero. The accounting policies for reportable segments are the same as Group’s accounting policies described in Note 2.
(3) Segment information details:

－－ 101

For The Three Months Ended June 30,2022 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Income (loss) before income tax Income tax (expense) benefit Net income (loss) Total assets Total liabilities	Business Unit Yieh Phui $10,187,294 342,913 $10,530,207 $703,454	Business Unit Yieh Hsing $2,229,822 - $2,229,822 $12,029	Business Unit Yieh Phui (China) $8,329,664 43,130 $8,372,794 $144,110	Great Emperor Kings Garden $175,171 $87,420 3,625 10,510 $178,796 $97,930 ($170,638) ($141,900)	All other business units $1,961,861 23,831 $1,985,692 $277,896	Elimination ($4,227) (424,009) ($428,236) ($4,453)	Total
							$22,967,005 -
							$22,967,005
							$820,498 (178,473)
							$642,025 (274,461)
							$367,564
							$97,775,224
							$64,092,729

For The Six Months Ended June 30,2022 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Income (loss) before income tax Income tax (expense) benefit Net income (loss) Total assets Total liabilities	Business Unit Yieh Phui $21,273,453 663,798 $21,937,251 $1,822,906	Business Unit Yieh Hsing $4,092,419 - $4,092,419 $77,243	Business Unit Yieh Phui (China) $16,271,916 185,707 $16,457,623 $87,133	Great Emperor $450,543 16,990 $467,533 ($274,672)	Kings Garden $194,483 16,010 $210,493 ($175,602)	All other business units $3,846,877 58,789 $3,905,666 $468,472	Elimination ($14,527) (941,294) ($955,821) $-	Total
								$46,115,164 -
								$46,115,164
								$2,005,480 28,774
								$2,034,254 (542,005)
								$1,492,249
								$97,775,224
								$64,092,729

－－ 102

For The Six Months Ended June 30, 2021 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Income (loss) before income tax Income tax (expense) benefit Net income (loss) Total assets Total liabilities For The Three Months Ended June 30, 2021 Sales from external customers Sales among intersegments Total sales Operating income (loss) Non-operating income and expenses Income (loss) before income tax Income tax (expense) benefit Net income (loss) Total assets Total liabilities	Business Unit Yieh Phui $14,942,426 733,021 $15,675,447 $1,061,126 Business Unit Yieh Phui $8,511,021 407,864 $8,918,885 $725,537	Business Unit Yieh Hsing $3,426,232 - $3,426,232 $171,097 Business Unit Yieh Hsing $1,753,638 - $1,753,638 $83,688	Business Unit Yieh Phui (China) $20,894,743 877,398 $21,772,141 $1,265,378 Business Unit Yieh Phui (China) $11,285,411 499,295 $11,784,706 $613,651	All other business units $2,590,582 80,524 $2,671,106 ($14,332) All other business units $1,588,950 49,834 $1,638,784 $309	Elimination ($ 34,139) (1,690,943) ($1,725,082) $7,139 Elimination ($9,451) (956,993) ($966,444) $3,756	Total
						$23,129,569 -
						$23,129,569
						$1,426,941 119,162
						$1,546,103 (369,552)
						$1,176,551
						$91,425,885
						$61,134,476
						Total
						$41,819,844 -
						$41,819,844
						$2,490,408 461,838
						$2,952,246 (662,348)
						$2,289,898
						$91,425,885
						$61,134,476

(4) Information on product and service: No disclosure requirement for Interim financial statements.

(5) Geographical information: No disclosure requirement for Interim financial statements.

(6) Major customer information: No disclosure requirement for Interim financial statements.

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YP — Interim / Quarterly Report 2022

51950_rns_2022-12-08_68525e4d-d9c3-4e32-9ccb-1fc96828526d.pdf

Table of Contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

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

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YIEH PHUI ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. THE AUTHORIZATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of Preparation

4.3 Basis of Consolidation

(2) The subsidiaries in the consolidated financial statements:

b. Statements of Comprehensive Income：

c. Statements of Cash Flows：

4.4 Retirement benefits

4.5 Income taxes

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

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

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

6.7 Prepayments

6.8 Other financial assets - current

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

6.10 Investments accounted for using equity method

1.Associates:

A. Balance Sheets

6.11 Property, Plant and Equipment

6.12 Lease Agreement

B. Lease liabilities

D. Other lease information:

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

6.13 Investment properties

6.14 Intangible assets

6.16 Refundable deposits

6.17 Short-term Loans

6.19 Other Payables

6.20 Provisions - current

6.21 Long-term Loans

6.22 Long-term Deferred Revenue

6.23 Benefit Plan After Retirement

6.24 Common Stock

6.25 Capital Surplus

6.26 Retained Earnings

6.28 Other Equity Item

6.28 Non-controlling interests

6.29 Operating Revenue

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

6.30 Employee benefits, depreciation and amortization expense

6.31 Interest income

6.32 Other Income

6.33 Other gains and losses

1.For information on dumping margins, please refer to Note 6.16.

6.34 Finance Costs

6.35 Income Tax

1. Income tax expense

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

6.36 Other Comprehensive Income

6.37 Earnings Per Share

6.38 Business combination

7. RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

7.2 Names of related parties and relationship categories

7.3 Significant transactions with related parties

2. Purchases

3. Contract assets

4. Contract liabilities

YP Interim / Quarterly Report 2022