TTET UNION CORPORATION AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2022 AND 2021

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

~1~

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of TTET Union Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of TTET Union Corporation and its subsidiary (the “Group”) as at March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for three-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. 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 International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in 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 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.

~2~

Conclusion

Based on our reviews, 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 at March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Lin, Tzu-Shu

Independent Accountants

Lin, Yung-Chih

PricewaterhouseCoopers, Taiwan Republic of China April 29, 2022

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

~3~

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2022 and 2021 are reviewed, not audited)

Assets	Notes	March 31, 2022 AMOUNT % `$` `1,729,372` `24` `391` `-` `135,557` `2` `961,101` `13` `92,808` `1` `21,349` `-` `2,848,029` `39` `321,553` `5` `6,110,160` `84` `44,811` `1` `836,072` `11` `202,366` `3` `837` `-` `23,329` `-` `40,369` `1` `780` `-` `1,148,564` `16` `$` `7,258,724` `100`	December 31, 2021 AMOUNT % `$` `1,927,676` `28` `-` `-` `161,509` `2` `811,361` `12` `98,295` `1` `29,842` `1` `2,463,953` `35` `363,764` `5` `5,856,400` `84` `37,600` `1` `852,176` `12` `200,725` `3` `1,018` `-` `22,851` `-` `32,442` `-` `286` `-` `1,147,098` `16` `$` `7,003,498` `100`	March 31, 2021	March 31, 2021
		AMOUNT `$` `1,729,372` `391` `135,557` `961,101` `92,808` `21,349` `2,848,029` `321,553` `6,110,160` `44,811` `836,072` `202,366` `837` `23,329` `40,369` `780` `1,148,564` `$` `7,258,724`	AMOUNT `$` `1,927,676` `-` `161,509` `811,361` `98,295` `29,842` `2,463,953` `363,764` `5,856,400` `37,600` `852,176` `200,725` `1,018` `22,851` `32,442` `286` `1,147,098` `$` `7,003,498`	AMOUNT `$` `1,977,182` `17,234` `123,783` `829,095` `80,887` `9,608` `2,314,151` `313,858` `5,665,798` `6,185` `867,984` `203,545` `1,304` `26,643` `34,036` `351` `1,140,048` `$` `6,805,846`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non-current 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1920 Guarantee deposits paid 1990 Other non-current asset 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) and 12 6(3) 6(3) 6(3) and 7 6(4) 6(5) 6(6) and 8 6(7) and 7 6(8) 6(22)				`29` `-` `2` `12` `1` `-` `34` `5`
					`83`
					`-` `13` `3` `-` `-` `1` `-`
					`17`
					`100`

(Continued)

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TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2022 and 2021 are reviewed, not audited)

					March 31, 2022				December 31, 2021	December 31, 2021			March 31, 2021
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(9)		`$`	`16,303`		`-`	`$`	`65,516`		`1`	`$`	`81,338`	`1`
2110	Short-term notes and bills payable	6(10)			`29,996`		`-`		`69,995`		`1`		`39,995`	`1`
2120	Financial liabilities at fair value	6(2) and 12
	through profit or loss - current				`-`		`-`		`20`		`-`		`-`	`-`
2130	Current contract liabilities	6(15)			`46,340`		`1`		`30,405`		`-`		`26,136`	`-`
2150	Notes payable				`3,591`		`-`		`4,788`		`-`		`3,591`	`-`
2170	Accounts payable				`664,522`		`9`		`828,340`	`12`			`513,150`	`8`
2180	Accounts payable - related parties	7			`59,336`		`1`		`63,627`		`1`		`58,222`	`1`
2200	Other payables				`305,070`		`4`		`418,616`		`6`		`351,453`	`5`
2230	Current income tax liabilities	6(22)			`449,151`		`6`		`327,224`		`5`		`325,357`	`5`
2280	Lease liabilities - current	6(7) and 7			`36,555`		`1`		`35,772`		`-`		`31,966`	`-`
21XX	Total current liabilities				`1,610,864`	`22`			`1,844,303`	`26`			`1,431,208`	`21`
	Non-current liabilities
2570	Deferred income tax liabilities	6(22)			`12,316`		`-`		`12,315`		`-`		`13,577`	`-`
2580	Lease liabilities - non-current	6(7) and 7			`173,404`		`3`		`172,467`		`3`		`178,391`	`3`
2640	Net defined benefit liabilities -	6(11)
	non-current				`12,176`		`-`		`12,342`		`-`		`40,627`	`-`
2645	Guarantee deposits received				`3,140`		`-`		`4,418`		`-`		`3,465`	`-`
25XX	Total non-current liabilities				`201,036`		`3`		`201,542`		`3`		`236,060`	`3`
2XXX	Total liabilities				`1,811,900`	`25`			`2,045,845`	`29`			`1,667,268`	`24`
	Equity attributable to owners of
	parent
	Share capital
3110	Common stock	6(12)			`1,599,749`	`22`			`1,599,749`	`23`			`1,599,749`	`24`
3200	Capital surplus	6(13)			`23,784`		`1`		`23,784`		`-`		`23,784`	`-`
	Retained earnings	6(14)
3310	Legal reserve				`1,456,732`	`20`			`1,456,732`	`21`			`1,327,386`	`19`
3320	Special reserve				`7,000`		`-`		`7,000`		`-`		`7,000`	`-`
3350	Unappropriated retained earnings				`2,254,239`	`31`			`1,776,932`	`25`			`2,091,590`	`31`
	Other equity interest
3400	Other equity interest	6(5)	`(`		`3,418 )`		`- (`		`5,528 )`		`- (`		`6,972)`	`-`
31XX	Equity attributable to owners
	of the parent				`5,338,086`	`74`			`4,858,669`	`69`			`5,042,537`	`74`
36XX	Non-controlling interest				`108,738`		`1`		`98,984`		`2`		`96,041`	`2`
3XXX	Total equity				`5,446,824`	`75`			`4,957,653`	`71`			`5,138,578`	`76`
	Significant contingent liabilities and	9
	unrecognized contract commitments
3X2X	Total liabilities and equity			`$`	`7,258,724`	`100`		`$`	`7,003,498`	`100`		`$`	`6,805,846`	`100`

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

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TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts) (REVIEWED, NOT AUDITED)

Items Three months ended March 31
2022
2021
Notes
AMOUNT
%
AMOUNT
%
6(15) and 7
$
5,698,170
100
$
4,842,731
100
6(4)(8)(11)(20)(21)
and 7
(
4,861,827) (
85) (
4,047,615) (
83)
836,343
15
795,116
17
6(8)(11)(20)(21)
(
166,193) (
3) (
151,718) (
3)
(
79,556) (
2) (
76,793) (
2)
(
2,929)
- (
3,011)
-
12
(
595)
-
168
-
(
249,273) (
5) (
231,354) (
5)
587,070
10
563,762
12
6(16)
1,006
-
1,667
-
6(17)
2,980
-
5,845
-
6(2)(7)(18) and 12
18,771
1
51,907
1
6(7)(19) and 7
(
1,218)
- (
1,236)
-
21,539
1
58,183
1
608,609
11
621,945
13
6(22)
(
121,548) (
2) (
124,399) (
3)
$
487,061
9
$
497,546
10
6(5)
$
2,110
-
$
28
-
$
2,110
-
$
28
-
$
489,171
9
$
497,574
10
$
477,307
9
$
488,560
10
9,754
-
8,986
-
$
487,061
9
$
497,546
10
$
479,417
9
$
488,588
10
9,754
-
8,986
-
$
489,171
9
$
497,574
10
6(23)
$
2.98
$
3.05
$
2.98
$
3.05

4000
Operating revenue
5000
Operating costs
5900
Net operating margin
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6450
Expect credit (losses) gains
6000
Total operating expenses
6900
Operating profit
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7000
Total non-operating income and
expenses
7900
Profit before income tax
7950
Income tax expense
8200
Profit for the period
Other comprehensive income (loss)
Components of other comprehensive
income that will not be reclassified to
profit or loss
8316
Unrealized gains from investments
in equity instruments measured at
fair value through other
comprehensive income
8300
Other comprehensive income for the
period
8500
Total comprehensive income for the
period
Profit attributable to:
8610
Owners of the parent
8620
Non-controlling interest
Comprehensive income attributable to:
8710
Owners of the parent
8720
Non-controlling interest
Earnings per share (in dollars)
9750
Basic
9850
Diluted

Items	Three months ended March 31 2022 2021 Notes AMOUNT % AMOUNT % 6(15) and 7 `$` `5,698,170` `100` `$` `4,842,731` `100` 6(4)(8)(11)(20)(21) and 7 `(` `4,861,827) (` `85) (` `4,047,615) (` `83)` `836,343` `15` `795,116` `17` 6(8)(11)(20)(21) `(` `166,193) (` `3) (` `151,718) (` `3)` `(` `79,556) (` `2) (` `76,793) (` `2)` `(` `2,929)` `- (` `3,011)` `-` 12 `(` `595)` `-` `168` `-` `(` `249,273) (` `5) (` `231,354) (` `5)` `587,070` `10` `563,762` `12` 6(16) `1,006` `-` `1,667` `-` 6(17) `2,980` `-` `5,845` `-` 6(2)(7)(18) and 12 `18,771` `1` `51,907` `1` 6(7)(19) and 7 `(` `1,218)` `- (` `1,236)` `-` `21,539` `1` `58,183` `1` `608,609` `11` `621,945` `13` 6(22) `(` `121,548) (` `2) (` `124,399) (` `3)` `$` `487,061` `9` `$` `497,546` `10` 6(5) `$` `2,110` `-` `$` `28` `-` `$` `2,110` `-` `$` `28` `-` `$` `489,171` `9` `$` `497,574` `10` `$` `477,307` `9` `$` `488,560` `10` `9,754` `-` `8,986` `-` `$` `487,061` `9` `$` `497,546` `10` `$` `479,417` `9` `$` `488,588` `10` `9,754` `-` `8,986` `-` `$` `489,171` `9` `$` `497,574` `10` 6(23) `$` `2.98` `$` `3.05` `$` `2.98` `$` `3.05`
4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expect credit (losses) gains 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the period Other comprehensive income (loss) Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income 8300 Other comprehensive income for the period 8500 Total comprehensive income for the period Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9750 Basic 9850 Diluted

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

~6~

TTET UNION CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

Notes				Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent			Non-controlling interest	Total equity
	Share capital - common stock	Capital surplus		Retained Earnings					Other Equity	Total
				Legal reserve	Special reserve		Unappropriated retained earnings		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
6(5) 6(5)	`$ 1,599,749` `-` `-` `-` `$ 1,599,749` `$ 1,599,749` `-` `-` `-` `$ 1,599,749`		`$` `23,784` `-` `-` `-` `$` `23,784` `$` `23,784` `-` `-` `-` `$` `23,784`	`$ 1,327,386` `-` `-` `-` `$ 1,327,386` `$ 1,456,732` `-` `-` `-` `$ 1,456,732`		`$` `7,000` `-` `-` `-` `$` `7,000` `$` `7,000` `-` `-` `-` `$` `7,000`		`$ 1,603,030` `488,560` `-` `488,560` `$ 2,091,590` `$ 1,776,932` `477,307` `-` `477,307` `$ 2,254,239`	`($` `7,000` `)` `-` `28` `28` `($` `6,972` `)` `($` `5,528` `)` `-` `2,110` `2,110` `($` `3,418` `)`	`$ 4,553,949` `488,560` `28` `488,588` `$ 5,042,537` `$ 4,858,669` `477,307` `2,110` `479,417` `$ 5,338,086`	`$` `87,055` `8,986` `-` `8,986` `$` `96,041` `$` `98,984` `9,754` `-` `9,754` `$ 108,738`	`$ 4,641,004` `497,546` `28` `497,574` `$ 5,138,578` `$ 4,957,653` `487,061` `2,110` `489,171` `$ 5,446,824`

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

~7~

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Expressed in thousands of New Taiwan dollars) (REVIEWED, NOT AUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Gain on financial assets at fair value through
profit or loss
Expected credit losses (gains)

Reversal of allowance provision for inventory

Depreciation

Gain on disposal of property, plant and
equipment

Property, plant and equipment recognized as
expense

Loss on lease modification

Amortization

Interest income

Finance costs

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable
Accounts receivable
Accounts receivable - related parties
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Current contract liabilities
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Net defined benefit liabilities - non-current
Cash outflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows used in operating activities For the three-month periods ended March 31,
Notes
2022
2021
$
608,609 $
621,945
(
411 ) (
7,907 )
12
595 (
168 )
6(4)
(
67 ) (
835 )
6(6)(7)(20)
50,257
44,786
6(18)
- (
114 )
6(6)
1,964
201
6(7)(18)
41
-
6(8)(20)
181
310
6(16)
(
1,006 ) (
1,667 )
6(19)
1,218
1,236
25,961
19,998
(
150,344 ) (
22,843 )
5,487
12,590
8,493
10,653
(
384,009 ) (
1,276,152 )
42,211 (
11,000 )
15,935 (
26,050 )
(
1,197 ) (
1,197 )
(
163,818 ) (
62,508 )
(
4,291 ) (
3,092 )
(
105,914 ) (
84,458 )
(
166 ) (
376 )
(
50,271 ) (
786,648 )
1,006
1,667
(
1,226 ) (
1,239 )
(
98 ) (
163 )
(
50,589 ) (
786,383 )

(Continued)

~8~

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 (Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through
other comprehensive income
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Increase in intangible assets

(Increase) decrease in guarantee deposits paid
(Increase) decrease in other non-current assets
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings

(Decrease) increase in short-term notes and bills
payable

Repayment of lease principal

Decrease in guarantee deposit received

Net cash flows (used in) from financing
activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period For the three-month periods ended March 31,
Notes
2022
2021
($
5,101 ) ($
4,882 )
6(24)
(
30,217 ) (
92,254 )
-
114
6(8)
- (
152 )
(
7,927 )
3,346
(
494 )
28
(
43,739 ) (
93,800 )
6(25)
(
49,213 )
1,594
6(25)
(
40,000 )
20,000
6(25)
(
13,485 ) (
12,252 )
6(25)
(
1,278 ) (
325 )
(
103,976 )
9,017
(
198,304 ) (
871,166 )
6(1)
1,927,676
2,848,348
6(1)
$
1,729,372 $
1,977,182

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

~9~

TTET UNION CORPORATION AND SUBSIDIARY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (REVIEWED, NOT AUDITED)

1. HISTORY AND ORGANIZATION

(1) TTET Union Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on May 24, 1982. The Company and its subsidiary (the “Group”) are primarily engaged in the manufacture, sales, processing, import and export of a variety of vegetable oils and engaged in cogeneration plant business, wholesale and retailing of oils, etc.
(2) The common shares of the Company have been listed on the Taiwan Stock Exchange since February 1996.
THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND
PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were authorized for issuance by the Board of Directors on April 29, 2022.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments as endorsed by the FSC effective from 2022 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard (IASB)
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts – cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

None.

~10~

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

==> picture [485 x 31] intentionally omitted <==

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

Effective date by
New Standards, Interpretations and Amendments IASB
----- End of picture text -----

endorsed by the FSC are as follows: New Standards,Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	IASB
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17 ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2023
non-current’
Amendments to IAS 1,‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8,‘Disclosure of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the compliance statement, basis of preparation, basis of consolidation, and the additional descriptions described below, the other principal accounting policies are in agreement with Note 4 of 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.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the ‘Regulations Governing the Preparation of Financial Reports by Securities Issuers’ and IAS 34, ‘Interim Financial Reporting’ as endorsed by the FSC.
B. The consolidated financial statements should be read together with the consolidated financial statements for the year ended December 31, 2021.
(2) Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
- (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
- (b) Financial assets at fair value through other comprehensive income measured at fair value.
- (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as

~11~

endorsed by the FSC (collectively referred herein as the “IFRSs”), requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2021.

B. Subsidiary included in the consolidated financial statements:

Name of investor	Name of subsidiary	March31,2022 December 31, 2021 `80.27` `80.27` Ownership (%) March31,2021 `80.27` Ownership (%)	Note
		March31,2022 `80.27`
TTET Union Corporation Name of investor	Master Channels Corporation Name of subsidiary		`－` Note
TTET Union Corporation	Master Channels Corporation		`－`

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Employee benefits

Defined benefit plans

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised

~12~

in profit or loss.

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

There have been no significant changes during the period. Refer to Note 5 of the consolidated financial statements for the year ended December 31, 2021.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash: Cash on hand Checking and demand deposits Cash equivalents: Time deposits Commercial paper	March31,2022 `3,505` `$` `345,872` `349,377` `151,700` `1,228,295` `1,379,995` `1,729,372` `$`	December31,2021 `5,990` `$` `630,994` `636,984` `151,700` `1,138,992` `1,290,692` `1,927,676` `$`	March31,2021 `2,102` `$` `406,597`
			`408,699`
			`200,000` `1,368,483`
			`1,568,483`
			`1,977,182` `$`

A. The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others as of March 31, 2022, December 31, 2021 and March 31, 2021.

(2) Financial assets and liabilities at fair value through profit or loss – current

Financial assets mandatorily measured at fair value through profit or loss Non-hedging derivative Financial liabilities held for trading Non-hedging derivative	March31,2022 `391` `$` March31,2022 `-` `$`	December31,2021 `-` `$` December 31, 2021 `20` `$`	March31,2021 `17,234` `$` March31,2021
			`-` `$`

A. The Group recognized net gain (shown as “Other gains and losses”) on financial assets mandatorily measured at fair value amounting to $18,863 and $48,520 for the three-month periods ended March 31, 2022 and 2021, respectively.

~13~

B. The Group entered into contracts relating to derivative financial assets and liabilities which were not accounted for under hedge accounting. The information is listed below:

	March31,	2022	March 31, 2021	March 31, 2021
	Contract amount		Contract amount
Derivativeinstruments	(Notional principal)	Contract period	(Notional principal)	Contract period
Current asset item:
Forward foreign		`2022.1.20`		`2021.1.18`
exchange contracts	`USD 3,332`	`～2022.5.25`	`USD 43,540`	`～2021.5.28`
			December 31, 2021
			Contract amount
Derivative instruments Current liability items:			(Notionalprincipal)	Contract period
Forward foreign				`2021.11.2`
exchange contracts			`USD 22,177`	`～2022.3.17`

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

C. Information relating to credit risk of financial assets and liabilities at fair value through profit or loss is provided in Note 12(2).

(3) Notes and accounts receivable

loss is provided in Note 12(2). Notes and accounts receivable
		March31,2022		December31,2021			March	31,2021
Notes receivable	`$`		`136,946`	`$`	`162,907`	`$`		`125,131`
Less: Allowance for uncollectible
accounts	`(`		`1,389)`	`(`	`1,398)`	`(`		`1,348)`
	`$`		`135,557`	`$`	`161,509`	`$`		`123,783`
		March31,2022		December31,2021			March	31,2021
Accounts receivable	`$`		`966,514`	`$`	`816,259`	`$`		`833,660`
Accounts receivable-related parties			`92,808`		`98,295`			`80,887`
			`1,059,322`		`914,554`			`914,547`
Less: Allowance for uncollectible
accounts	`(`		`5,413)`	`(`	`4,898)`	`(`		`4,565)`
	`$`		`1,053,909`	`$`	`909,656`	`$`		`909,982`

~14~

A. The ageing analysis of notes receivable and accounts receivable is as follows:

Notes receivable Accounts receivable Not past due `136,946` `$` `1,056,150` `$` Less than 30 days `-` `3,147` 31～60 days `-` `16` 61～90 days `-` `9` 91～over 120 days `-` `-` `136,946` `$` `1,059,322` `$` Not past due Less than 30 days 31～60 days 61～90 days 91～over 120 days March31,2022	December31,2021	December31,2021
	Notes receivable Accounts receivable `162,907` `$` `912,254` `$` `-` `1,881` `-` `134` `-` `-` `-` `285` `162,907` `$` `914,554` `$` Notes receivable Accounts receivable `125,131` `$` `911,459` `$` `-` `3,083` `-` `5` `-` `-` `-` `-` `125,131` `$` `914,547` `$` March31,2021
		`911,459` `$` `3,083` `5` `-` `-` `914,547` `$`

The above ageing analysis was based on past due date.

B. As at March 31, 2022, December 31, 2021 and March 31, 2021, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2021, the balance of receivables from contracts with customers amounted to $1,049,423.
C. As at March 31, 2022, December 31, 2021 and March 31, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable were its book value.
D. The Group holds certificates of time deposit and land as security for accounts receivable as of March 31, 2022, December 31, 2021 and March 31, 2021.
E. The Group has no notes and accounts receivable pledged to others as at March 31, 2022, December 31, 2021 and March 31, 2021.
F. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

~15~

(4) Inventories

Cost `276,168` `$` `428,235` `1,453,969` `21,699` `221,320` `9,862` `442,387` `2,853,640` `$`	Allowance for market price decline `5,579)` `($` `-` `-` `10)` `(` `-` `-` `22)` `(` `5,611)` `($` March31,2022 December 31, 2021	Bookvalue `270,589` `$` `428,235` `1,453,969` `21,689` `221,320` `9,862` `442,365`
		`2,848,029` `$`

Cost `253,780` `$` `17,316` `1,539,086` `18,948` `255,473` `16,568` `368,460` `2,469,631` `$`	Allowance for market price decline `4,977)` `($` `-` `-` `674)` `(` `-` `-` `27)` `(` `5,678)` `($` March31,2021	Bookvalue `248,803` `$` `17,316` `1,539,086` `18,274` `255,473` `16,568` `368,433`
		`2,463,953` `$`

Cost `229,970` `$` `478,615` `1,113,673` `20,814` `105,087` `19,326` `352,173` `2,319,658` `$`	Allowance for market price decline `4,581)` `($` `-` `-` `538)` `(` `-` `-` `388)` `(` `5,507)` `($`	Bookvalue
		`225,389` `$` `478,615` `1,113,673` `20,276` `105,087` `19,326` `351,785`
		`2,314,151` `$`

~16~

The cost of inventories recognized as expense for the period:

The cost of inventories recognized as expense	for the period:	for the period:	for the period:	for the period:
	Forthe three-monthperiods				endedMarch31,
		2022			2021
Cost of goods sold	`$`	`4,778,343`		`$`	`3,975,124`
Loss on scrapped inventories		`282`			`10`
Reversal of allowance for
inventory market price decline (Note)	`(`	`67)`	`(`		`835)`
Gain on physical inventory	`(`	`5)`	`(`		`458)`
	`$`	`4,778,553`		`$`	`3,973,841`

(Note) The Group recognized gain from price recovery as the increase in the international prices of raw materials led to a recovery in inventory net realizable value for the three-month periods ended March 31, 2022 and 2021.

(5) Financial assets at fair value through other comprehensive income – non-current

		31,2022	December	31, 2021		31,2021
Equity instruments
Listed stocks	`$`	`39,954`	`$`	`34,853`	`$`	`4,882`
Unlisted stocks		`8,275`		`8,275`		`8,275`
		`48,229`		`43,128`		`13,157`
Valuation adjustment	`(`	`3,418)`	`(`	`5,528)`	`(`	`6,972)`
	`$`	`44,811`	`$`	`37,600`	`$`	`6,185`

A. The Group has elected to classify equity investments that are considered to be strategic investments and have steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $44,811, $37,600 and $6,185 as at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
B. The Group recognized other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounting to $2,110 and $28 for the three-month periods ended March 31, 2022 and 2021, respectively.
C. As at March 31, 2022, December 31, 2021 and March 31, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was the book value.
D. The Group has no financial assets at fair value through other comprehensive income pledged to others.
E. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

~17~

(6) Property, plant and equipment

January1,2022 Cost Accumulated depreciation For the three-month period ended March31,2022 At January 1 Additions Transferred after acceptance Depreciation Disposals`－`Cost `－`Accumulated depreciation Expensed At March 31 March 31, 2022 Cost Accumulated depreciation	Transportation Leasehold Other Construction Land Buildings Machinery equipment improvements equipment inprogress Total `44,244` `$` `1,111,944` `$` `3,451,978` `$` `15,152` `$` `7,915` `$` `180,350` `$` `27,031` `$` `4,838,614` `$` `-` `780,402)` `(` `3,098,967)` `(` `13,682)` `(` `5,506)` `(` `87,881)` `(` `-` `3,986,438)` `(` `44,244` `$` `331,542` `$` `353,011` `$` `1,470` `$` `2,409` `$` `92,469` `$` `27,031` `$` `852,176` `$` `44,244` `$` `331,542` `$` `353,011` `$` `1,470` `$` `2,409` `$` `92,469` `$` `27,031` `$` `852,176` `$` `-` `892` `9,701` `-` `-` `1,368` `10,633` `22,594` `-` `-` `7,180` `-` `-` `-` `7,180)` `(` `-` `-` `9,142)` `(` `23,317)` `(` `158)` `(` `173)` `(` `3,944)` `(` `-` `36,734)` `(` `-` `-` `1,272)` `(` `-` `1,172)` `(` `12,986)` `(` `-` `15,430)` `(` `-` `-` `1,272` `-` `1,172` `12,986` `-` `15,430` `-` `-` `-` `-` `-` `-` `1,964)` `(` `1,964)` `(` `44,244` `$` `323,292` `$` `346,575` `$` `1,312` `$` `2,236` `$` `89,893` `$` `28,520` `$` `836,072` `$` `44,244` `$` `1,112,836` `$` `3,467,587` `$` `15,152` `$` `6,743` `$` `168,732` `$` `28,520` `$` `4,843,814` `$` `-` `789,544)` `(` `3,121,012)` `(` `13,840)` `(` `4,507)` `(` `78,839)` `(` `-` `4,007,742)` `(` `44,244` `$` `323,292` `$` `346,575` `$` `1,312` `$` `2,236` `$` `89,893` `$` `28,520` `$` `836,072` `$`	Total

~18~

January1,2021 Cost Accumulated depreciation For the three-month period ended March31,2021 At January 1 Additions Transferred after acceptance Depreciation Disposals`－`Cost `－`Accumulated depreciation Expensed At March 31 March31,2021 Cost Accumulated depreciation	Transportation Leasehold Other Construction Land Buildings Machinery equipment improvements equipment inprogress Total `44,244` `$` `912,289` `$` `3,384,273` `$` `15,435` `$` `8,375` `$` `110,020` `$` `206,904` `$` `4,681,540` `$` `-` `744,230)` `(` `3,033,319)` `(` `13,289)` `(` `5,269)` `(` `77,162)` `(` `-` `3,873,269)` `(` `44,244` `$` `168,059` `$` `350,954` `$` `2,146` `$` `3,106` `$` `32,858` `$` `206,904` `$` `808,271` `$` `44,244` `$` `168,059` `$` `350,954` `$` `2,146` `$` `3,106` `$` `32,858` `$` `206,904` `$` `808,271` `$` `-` `39,777` `14,224` `-` `-` `6,457` `31,796` `92,254` `-` `136,629` `371` `-` `-` `19,716` `156,716)` `(` `-` `-` `8,653)` `(` `20,660)` `(` `178)` `(` `177)` `(` `2,672)` `(` `-` `32,340)` `(` `-` `-` `1,664)` `(` `-` `-` `3,180)` `(` `-` `4,844)` `(` `-` `-` `1,664` `-` `-` `3,180` `-` `4,844` `-` `-` `-` `-` `-` `-` `201)` `(` `201)` `(` `44,244` `$` `335,812` `$` `344,889` `$` `1,968` `$` `2,929` `$` `56,359` `$` `81,783` `$` `867,984` `$` `44,244` `$` `1,088,695` `$` `3,397,204` `$` `15,435` `$` `8,375` `$` `133,013` `$` `81,783` `$` `4,768,749` `$` `-` `752,883)` `(` `3,052,315)` `(` `13,467)` `(` `5,446)` `(` `76,654)` `(` `-` `3,900,765)` `(` `44,244` `$` `335,812` `$` `344,889` `$` `1,968` `$` `2,929` `$` `56,359` `$` `81,783` `$` `867,984` `$`	Total

A. The Group’s property, plant and equipment are all owner-occupied as at March 31, 2022, December 31, 2021 and March 31, 2021.
B. The Group has not capitalized any interest for the three-month periods ended March 31, 2022 and 2021.
C. For more information regarding the Group’s property, plant and equipment pledged to others as at March 31, 2022, December 31, 2021 and March 31, 2021, please refer to Note 8, “Pledged assets”.

~19~

`－` (7) Leasing arrangements lessee

A. The Group leases various assets including land, buildings, and transportation equipment. Rental contracts are typically made for periods of 1 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Transportation equipment Other equipment	March 31, 2022 December31,2021 Carrying amount Carrying amount `33,421` `$` `33,211` `$` `93,049` `98,585` `75,775` `68,794` `121` `135` `202,366` `$` `200,725` `$`	March31,2021
		Carrying amount
		`34,751` `$` `115,193` `53,601` `-`
		`203,545` `$`

Land Buildings Transportation equipment Other equipment	Forthe three-monthperiods endedMarch31,	Forthe three-monthperiods endedMarch31,
	2022 Depreciationcharge `517` `$` `5,536` `7,456` `14` `13,523` `$`	2021
		Depreciationcharge
		`515` `$` `5,536` `6,395` `-` `12,446` `$`

C. For the three-month periods ended March 31, 2022 and 2021, the additions to right-of-use assets were $15,716 and $4,232, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

were $15,716 and $4,232, respectively. The information on income and expense accounts	relating to lease contracts is as follows:	relating to lease contracts is as follows:
Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Loss from lease modification	Forthe three-monthperiods endedMarch31,
	2022 `768` `$` `3,520` `41`	2021
		`754` `$` `4,728` `-`

E. For the three-month periods ended March 31, 2022 and 2021, the Group’s total cash outflow for leases were $17,773 and $17,734, respectively.

~20~

(8) Intangible assets

ntangible assets
	Computer	software			Others			Total
At January 1, 2022
Cost	`$`	`13,458`	`$`		`464`	`$`		`13,922`
Accumulated amortization	`(`	`12,828)`	`(`		`76)`	`(`		`12,904)`
	`$`	`630`	`$`		`388`	`$`		`1,018`
For the three-month period
ended March 31, 2022
At January 1	`$`	`630`	`$`		`388`	`$`		`1,018`
Amortization charge	`(`	`171)`	`(`		`10)`	`(`		`181)`
At March 31	`$`	`459`	`$`		`378`	`$`		`837`
At March 31, 2022
Cost	`$`	`13,458`	`$`		`464`	`$`		`13,922`
Accumulated amortization	`(`	`12,999)`	`(`		`86)`	`(`		`13,085)`
	`$`	`459`	`$`		`378`	`$`		`837`
	Computer	software			Others			Total
At January 1, 2021
Cost	`$`	`13,306`		`$`	`133`		`$`	`13,439`
Accumulated amortization	`(`	`11,844)`	`(`		`133)`	`(`		`11,977)`
	`$`	`1,462`		`$`	`-`		`$`	`1,462`
For the three-month period
ended March 31, 2021
At January 1	`$`	`1,462`		`$`	`-`		`$`	`1,462`
Additions`－`Acquired separately		`152`			`-`			`152`
Amortization charge	`(`	`310)`			`-`	`(`		`310)`
At March 31	`$`	`1,304`		`$`	`-`		`$`	`1,304`
At March 31, 2021
Cost	`$`	`13,458`		`$`	`133`		`$`	`13,591`
Accumulated amortization	`(`	`12,154)`	`(`		`133)`	`(`		`12,287)`
	`$`	`1,304`		`$`	`-`		`$`	`1,304`

~21~

Details of amortization on intangible assets are as follows:

	Forthe three-monthperiods	Forthe three-monthperiods	Forthe three-monthperiods	endedMarch31,
		2022		2021
Operating costs	`$`	`11`	`$`	`36`
Selling expenses		`27`		`38`
Administrative expenses		`143`		`236`
	`$`	`181`	`$`	`310`

(9) Short-term borrowings

hort-term borrowings
Bank unsecured borrowings Bank unsecured borrowings Bank unsecured borrowings	March31,2022 `16,303` `$` December31,2021 `65,516` `$` March31,2021 `81,338` `$`	Interestraterange `1.01%` Interestraterange `0.54%～1.21%` Interest rate range `0.63%～0.75%`	Collateral
			None Collateral
			None Collateral
			None

For interest expense recognized in profit or loss for the three-month periods ended March 31, 2022 and 2021, please refer to Note 6(19).

(10) Short-term notes and bills payable

and 2021, please refer to Note 6(19). Short-term notes and bills payable
March31,2022 Commercial paper payable `30,000` `$` Less: Unamortized discount `4)` `(` `29,996` `$` December31,2021 Commercial paper payable `70,000` `$` Less: Unamortized discount `5)` `(` `69,995` `$` March31,2021 Commercial paper payable `40,000` `$` Less: Unamortized discount `5)` `(` `39,995` `$`	Interestraterange `0.91%` Interestraterange `0.40%～0.80%` Interest rate range `0.76%`	Collateral
		None Collateral
		None Collateral
		None

A. The above commercial papers were issued and secured by International Bills Finance Co., Ltd., China Bills Finance Co., Ltd. and Mega Bills Finance Co., Ltd. for short-term financing.
B. For interest expense recognized in profit or loss for the three-month periods ended March 31, 2022 and 2021, please refer to Note 6(19).

~22~

(11) Pensions

A. The Group has defined benefit pension plans in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Group contributes monthly an amount equal to 2% ～ 4% and 2.5% ～ 4% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee for the three-month periods ended March 31, 2022 and 2021, respectively. Also, the Group would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Group will make contribution for the deficit by next March. The information on the Group’s defined benefit pension plan is as follows:
(a) The pension cost under the aforementioned defined benefit pension plans of the Group for the three-month periods ended March 31, 2022 and 2021 were $480 and $607, respectively.
(b) The Group’s expected contributions under the defined benefit pension plans for the year ending December 31, 2022 amount to $2,445.
B. Effective July 1, 2005, the Group has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Group contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Group for the three-month periods ended March 31, 2022 and 2021 were $3,584 and $3,712, respectively.

(12) Share capital

A. Movements in the number of the Company’s ordinary shares outstanding are as follows (in thousands of shares):

Forthe three-monthperiods endedMarch31,
2022 2021
Beginning and ending balance `159,975` `159,975`
B. As of March 31, 2022, the Company’s authorized capital was $1,778,000 and the paid-in capital
was $1,599,749, consisting of 159,975 thousand shares of ordinary stock, with a par value of $10
(in dollars) per share. All proceeds from shares issued have been collected.

~23~

(13) Capital surplus

Pursuant to the Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital reserves should not be used to cover accumulated deficit unless the legal reserve is insufficient.

Movements in the Company’s capital reserves for the three-month periods ended March 31, 2022 and 2021 are as follows:

and 2021 are as follows:
Beginning and ending balance Beginning and ending balance	Treasury share Share premium transactions Total `154` `$` `23,630` `$` `23,784` `$` For the three-month period ended March 31, 2022 Treasury share Share premium transactions Total `154` `$` `23,630` `$` `23,784` `$` Forthe three-monthperiod endedMarch31,2021
		`23,784` `$`

(14) Retained earnings

A. Pursuant to the Company Act, the current year’s after-tax earnings should set aside 10% of the remaining earnings as legal reserve until the balance of legal reserve is equal to that of paid-in capital. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
B. According to the Company's Articles of Incorporation, 10 ％ of the annual net income, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve, and set aside or reverse special reserve. The remaining net income and the unappropriated retained earnings from prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the stockholders' meeting. Of the amount to be distributed by the Company, stockholders’ dividends shall comprise 50% to 100% of the unappropriated retained earnings. Since the Company is in a changeable industry environment and the life cycle of the Company is in a stable growth, the appropriation of earnings should consider fund requirements and capital budgets to decide how much earnings will be kept or distributed and how much cash dividends will be distributed. The percentage of stock dividends shall not be more than 50% of dividends distributed.
C. In accordance with the regulations, the Company shall set aside special reserve from the debit

~24~

balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

D. For the year ended December 31, 2021, the Company recognized dividends distributed to owners amounting to $959,850 ($6 (in dollars) per share as cash dividend). On February 23, 2022, the Board of Directors proposed for the distribution of dividends from 2021 earnings in the amount of $959,850 at $6 (in dollars) per share. Such dividend payable is not disclosed in this financial report.

(15) Operating revenue

report. Operating revenue
Revenue from contracts with customers	2022 2021 `5,698,170` `$` `4,842,731` `$` Forthe three-monthperiods endedMarch31,
		`4,842,731` `$`

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines:

Forthe three-monthperiod endedMarch31,2022	Forthe three-monthperiod endedMarch31,2022	Forthe three-monthperiod endedMarch31,2022
TTET Union Corporation		Total
		`5,576,500` `$` `110,186` `11,484`
		`5,698,170` `$`
		`5,576,500` `$` `121,670`
		`5,698,170` `$`
TTET Union Corporation	Master Channels Corporation `1,048,848` `$` `-` `11,046` `1,059,894` `$` `1,048,848` `$` `11,046` `1,059,894` `$`	Total
`3,695,643` `$` `87,194` `-` `3,782,837` `$` `3,695,643` `$` `87,194` `3,782,837` `$`		`4,744,491` `$` `87,194` `11,046`
		`4,842,731` `$`
		`4,744,491` `$` `98,240`
		`4,842,731` `$`

~25~

B. Contract liabilities

(a) As of March 31, 2022, December 31, 2021 and March 31, 2021, the Group has recognized the revenue-related liabilities amounting to $46,340, $30,405 and $26,136, respectively.
(b) Revenue recognized that were included in the contract liabilities balance at the beginning of 2022 and 2021 amounted to $29,986 and $51,928, respectively.

(16) Interest income

Interest income: Interest income from bank deposits Other interest income

==> picture [228 x 100] intentionally omitted <==

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

For the three-month periods ended March 31,
2022 2021
$ 208 $ 623
798 1,044
$ 1,006 $ 1,667
----- End of picture text -----

(17) Other income

For the three-month periods ended March 31,

Other income

Forthe three-monthpe	riods endedMarch31,
2022	2021
`2,980` `$`	`5,845` `$`

(18) Other gains and losses

Net gain on financial assets and liabilities at fair value through profit or loss Net currency exchange (loss) gain Loss from lease modification Gain on disposal of property, plant and equipment

Forthe three-monthperiods endedMarch31,	Forthe three-monthperiods endedMarch31,
2022 `18,863` `$` `51)` `41)` `-` `18,771` `$`	2021
	`48,520` `$` `3,273` `-` `114`
	`51,907` `$`

(19) Finance costs

Finance costs
Interest expense: Bank borrowings Interest expense on lease liabilities Other interest expense	Forthe three-monthperiods endedMarch31,
	2022 `395` `$` `768` `55` `1,218` `$`	2021
		`465` `$` `754` `17`
		`$ 1,236`

~26~

(20) Expenses by nature

Expenses by nature
Employee benefit expenses Depreciation Amortization Employee benefit expenses Depreciation Amortization	Operating cost Operating expense Total `35,664` `$` `155,448` `$` `191,112` `$` `29,291` `$` `20,966` `$` `50,257` `$` `11` `$` `170` `$` `181` `$` Operating cost Operating expense Total `34,858` `$` `134,739` `$` `169,597` `$` `27,001` `$` `17,785` `$` `44,786` `$` `36` `$` `274` `$` `310` `$` Forthe three-monthperiod endedMarch31,2022 Forthe three-monthperiod endedMarch31,2021
		`44,786` `$`
		`310` `$`

(21) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance expenses Pension costs Other personnel expenses Wages and salaries Labor and health insurance expenses Pension costs Other personnel expenses	For the three-monthperiod ended March31,2022
	Operating cost Operating expense Total `33,047` `$` `136,367` `$` `169,414` `$` `1,429` `10,424` `11,853` `677` `3,387` `4,064` `511` `5,270` `5,781` `35,664` `$` `155,448` `$` `191,112` `$` Operating cost Operating expense Total `32,188` `$` `115,935` `$` `148,123` `$` `1,436` `10,309` `11,745` `730` `3,589` `4,319` `504` `4,906` `5,410` `34,858` `$` `134,739` `$` `169,597` `$` For the three-monthperiod ended March31,2021	Total `169,414` `$` `11,853` `4,064` `5,781`
		`191,112` `$`
		`148,123` `$` `11,745` `4,319` `5,410`
		`169,597` `$`

~27~

A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ and supervisors’ remuneration.
B. For the three-month periods ended March 31, 2022 and 2021, employees’ compensation was accrued at $12,210 and $12,490, respectively; while directors’ and supervisors’ remuneration was accrued at $9,160 and $9,370, respectively. The aforementioned amounts were recognized in salary expenses and estimated and accrued based on the distributable net profit as of the end of reporting period calculated by the percentage prescribed under the Articles of Incorporation of the Company. The actual amount resolved by the Board of Directors for employees’ compensation and directors’ and supervisors’ remuneration for 2021 was $55,340, which is different from the estimated amount recognized in the 2021 financial statements of $55,380, by ($40). Such difference will be recognized in profit and loss for the year ending December 31, 2022. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as proposed by the Board of Directors and resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(22) Income tax

A. Income tax expense

Components of income tax expense:

	For the three-month periods	For the three-month periods	For the three-month periods	For the three-month periods	ended March 31,
		2022			2021
Current tax:
Current tax on profits for the period	`$`	`122,025`		`$`	`124,628`
Deferred tax:
Origination and reversal of temporary
differences	`(`	`477)`	`(`		`229)`
Income tax expense	`$`	`121,548`		`$`	`124,399`

B. As of April 29, 2022, the Company’s income tax returns through 2020 have been assessed by the Tax Authority, and there were no disputes existing between the Company and the Tax Authority.

~28~

(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Forthe three-monthperiod endedMarch31,2022
	Weighted average number of ordinary shares outstanding Earnings per Amount aftertax (sharesinthousands) share (indollars) `477,307` `$` `159,975` `2.98` `$` `477,307` `$` `159,975` `-` `208` `477,307` `$` `160,183` `2.98` `$` For the three-monthperiod ended March31,2021	Earnings per share (indollars)
	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) `488,560` `$` `159,975` `488,560` `$` `159,975` `-` `304` `488,560` `$` `160,279`	Earnings per share (indollars)
		`3.05` `$` `3.05` `$`

~29~

(24) Supplemental cash flow information

A. Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Opening balance of payable on equipment (listed under "Other payables") Cash paid for the acquisition of property, plant and equipment	2022 2021 `22,594` `$` `92,254` `$` `7,623` `-` `30,217` `$` `92,254` `$` For the three-month periods ended March 31,

B. Operating activities with no cash flow effects:

Write-off of allowance for doubtful accounts	2022 2021 `89` `$` `-` `$` Forthe three-monthperiods endedMarch31,	2022 2021 `89` `$` `-` `$` Forthe three-monthperiods endedMarch31,
		`-` `$`

(25) Changes in liabilities from financing activities

At January 1, 2022
Increase in lease liabilities
Decrease in lease liabilities
Changes in cash flow
from financing activities

Changes in unamortized
discounts
At March 31, 2022
At January 1, 2021
Increase in lease liabilities
Decrease in lease liabilities
Changes in cash flow
from financing activities
Changes in unamortized
discounts
At March 31, 2021 Short-term
Guarantee
Liabilities from
Short-term
notes and
Lease
deposits
financing
borrowings
billspayable
liabilities
received
activities-gross
65,516
$
69,995
$
208,239
$
4,418
$
348,168
$
-
-
15,716
-
15,716
-
-
511)
(
-
511)
(
49,213)
(
40,000)
(
13,485)
(
1,278)
(
103,976)
(
-
1
-
-
1
16,303
$
29,996
$
209,959
$
3,140
$
259,398
$
Short-term
Guarantee
Liabilities from
Short-term
notes and
Lease
deposits
financing
borrowings
billspayable
liabilities
received
activities-gross
79,744
$
19,998
$
218,547
$
3,790
$
322,079
$
-
-
4,232
-
4,232
-
-
170)
(
-
170)
(
1,594
20,000
12,252)
(
325)
(
9,017
-
3)
(
-
-
3)
(
81,338
$
39,995
$
210,357
$
3,465
$
335,155
$

~30~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of relatedparties	Relationship with theGroup
Uni-President Enterprises Corp. Great Wall Enterprise Co., Ltd. Tai Hwa Oil Industrial Co., Ltd. May Lan Lei Co., Ltd. Total Nutrition Technologies Co., Ltd. Ton-Yi Industrial Corp. President Chain Store Corp. Nanlien International Corp. President Nisshin Corp. Uni-President Vietnam Co., Ltd. President Kikkoman Inc. President Transnet Corp. Mech-President Corporation Uni-President Superior Commissary Corp. Mister Donut Taiwan Co., Ltd. Uni-President Oven Bakery Corp. President Tokyo Corp. Tung-Ho Development Co.,Ltd Tung-Xian Corp. Capital Inventory Service Corp. Uni-President Cold Chain Corp. Tait Marketing &Distribution Co., Ltd. 21Century Co., Ltd. Uni-President Organics Corp. Zhong Yi Food Company Ltd. Kouchan Mill Co., Ltd. Saboten Co., Ltd. An Hsin Chiao Chu Co., Ltd. Oriental Best Foods Co., Ltd. Xiang Cheng Co., Ltd. Weilih Food Industrial Co., Ltd.	Key management individuals " " An entity controlled by key management individuals " " " " " " " " " " " " " " " " " " " " " " " " " " Investee of key management individual accounted for under the equity method

Names of relatedparties

Relationship with theGroup

Uni-President Enterprises Corp.
Great Wall Enterprise Co., Ltd.
Tai Hwa Oil Industrial Co., Ltd.
May Lan Lei Co., Ltd.
Total Nutrition Technologies Co., Ltd.
Ton-Yi Industrial Corp.
President Chain Store Corp.
Nanlien International Corp.
President Nisshin Corp.
Uni-President Vietnam Co., Ltd.
President Kikkoman Inc.
President Transnet Corp.
Mech-President Corporation
Uni-President Superior Commissary Corp.
Mister Donut Taiwan Co., Ltd.
Uni-President Oven Bakery Corp.
President Tokyo Corp.
Tung-Ho Development Co.,Ltd
Tung-Xian Corp.
Capital Inventory Service Corp.
Uni-President Cold Chain Corp.
Tait Marketing &Distribution Co., Ltd.
21Century Co., Ltd.
Uni-President Organics Corp.
Zhong Yi Food Company Ltd.
Kouchan Mill Co., Ltd.
Saboten Co., Ltd.
An Hsin Chiao Chu Co., Ltd.
Oriental Best Foods Co., Ltd.
Xiang Cheng Co., Ltd.
Weilih Food Industrial Co., Ltd.

Key management individuals
"
"
An entity controlled by key management individuals
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
Investee of key management individual accounted for
under the equity method

~31~

(2) Significant transactions and balances with related parties

A. Sales and processing revenue

Sales and processing revenue
Sales of merchandise and finished goods: `－`An entity controlled by key management individuals －Key management individuals `－`Investee of key management individual accounted for under the equity method Processing revenue: －May Lan Lei Co., Ltd. －Tai Hwa Oil Industrial Co., Ltd. `－`Other entities controlled by key management individuals `－`Other key management individuals	2022 2021 `134,737` `$` `134,500` `$` `118,681` `159,344` `986` `751` `254,404` `294,595` `84,714` `64,651` `21,647` `19,341` `3,685` `3,061` `140` `141` `110,186` `87,194` `364,590` `$` `381,789` `$` For the three-monthperiods ended March31,
		`294,595`
		`64,651` `19,341` `3,061` `141`
		`87,194`
		`381,789` `$`

The collection period for related parties was 7~45 days after sales of goods, 10~45 days for sales to regular customers. Except for the above collection periods, other terms of sales were the same for related and third parties. The terms of providing processing services to related parties were the same with regular customers. The above related parties close their accounts at the end of each month and made payments within 15 days after. The pricing depends on the contract and management methods.

B. Purchases

management methods. Purchases
An entity controlled by key management individuals Key management individuals	For the three-month periods ended March 31,
	2022 `124,884` `$` `30,451` `155,335` `$`	2021
		`121,187` `$` `56,100`
		`177,287` `$`

The terms of purchases and payments are made in 12~25 days after receipt to related parties which were the same with third party suppliers, except for an entity controlled by key management individuals, wherein payments are made in 15~30 days after receipt for the three-month periods ended March 31, 2022 and 2021, respectively.

~32~

C. Accounts receivable

Accounts payable An entity controlled by key management individuals Key management individuals Investee of key management individual accounted for under equity method An entity controlled by key management individuals Key management individuals	March31,2022 `63,009` `$` `29,799` `-` `92,808` `$` March 31, 2022 `52,397` `$` `6,939` `59,336` `$`	December31,2021 `76,417` `$` `20,728` `1,150` `98,295` `$` December 31, 2021 `47,755` `$` `15,872` `63,627` `$`	March31,2021
			`50,256` `$` `30,631` `-`
			`80,887` `$`
			March 31, 2021
			`54,608` `$` `3,614`
			`58,222` `$`

D. Accounts payable

－
E. Lease transactions lessee
(a) The Group leases commercial vehicle from President Tokyo Corp. Rental contracts are typically made for periods of 1 to 6 years. Rents are paid monthly.
(b) Acquisition of right-of-use assets:

Acquisition of right-of-use assets:
An entity controlled by key management individuals	Forthe three-monthperiods endedMarch31,
	2022 `13,475` `$`	2021 `4,232` `$`

As of March 31, 2022, December 31, 2021 and March 31, 2021, the lease liability balance was $72,766, $67,615 and $51,093, respectively. Interest expense recognized amounted to $282 and $190 (shown as “Finance costs”) for the three-month periods ended March 31, 2022 and 2021, respectively.

(3) Key management compensation

2021, respectively. Key management compensation
Salaries and other short-term employee benefits	For the three-monthperiods ended March31,
	2022 `41,918` `$`	2021
		`41,699` `$`

~33~

8. PLEDGED ASSETS

The Group’s assets pledged as collateral were as follows:

Assets pledged Land (Note 1) Buildings, net (Note 1)	March 31, 2022 December 31, 2021 March 31, 2021 Purpose of collateral `44,244` `$` `44,244` `$` `44,244` `$` (Note 2) `86,082` `88,377` `95,853` `〞` `130,326` `$` `132,621` `$` `140,097` `$` Book Value

(Note 1) Recognized as “Property, plant, and equipment”.

(Note 2) The associated debt has been repaid but the designation of ‘Property, plant, and equipment’ as collateral has not yet been removed.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

(1) As of March 31, 2022, December 31, 2021 and March 31, 2021, the unused letters of credit amounted to $2,135,301, $1,713,620 and $2,018,389, respectively.
(2) Capital expenditures contracted for but not yet incurred

March 31, 2022 December 31, 2021 March 31, 2021 Property, plant and equipment $ 92,455 $ 88,020 $ 107,392

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders, and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category
Details of financial instruments by category of the Group are described in Note 6.
B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

~34~

(b) Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s and the subsidiary’s operating units.
(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).
C. Significant financial risks and degrees of financial risks
(a) Market risk
- I. Foreign exchange risk
- (i) Some purchases and sales are valued in US dollars, therefore the fair value changes with market exchange rate.
- (ii) Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets and liabilities at fair value through profit or loss are provided in Note 6(2).
- (iii) The Group’s businesses involve some non-functional currency operations (the Company’s and the subsidiary’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

March31,2022	March31,2022
Foreign currency amount(in thousands) Exchange rate `359` `$` `28.68` `569` `28.68` December31,2021		Bookvalue
		`10,289` `$` `16,303`
Foreign currency amount(in thousands) `108` `$` `1,641`	Exchange rate `27.73` `27.73`	Bookvalue
		`2,989` `$` `45,516`

~35~

(foreign currency: functional currency) Financial assets Monetary items USD : NTD Financial liabilities Monetary items USD : NTD	March31,2021	March31,2021
	Foreign currency amount (inthousands) `291` `$` `2,845`	Exchangerate `28.59` `28.59`	Bookvalue
			`8,307` `$` `81,338`

(iv) As of March 31, 2022 and 2021, if the NTD:USD exchange rate appreciates / depreciates by 1% with all other factors remaining constant, the after-tax profit for the three-month periods ended March 31, 2022 and 2021, would increase/decrease by $48 and $584, respectively.
(v) The unrealized exchange gain (loss) arising from significant foreign exchange variation on monetary items held by the Group for the three-month periods ended March 31, 2022 and 2021, amounted to ($37) and $122, respectively.

II. Price risk

The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group has set various stop loss points to ensure that the Group is not exposed to significant market risks.

The Group’s invests in listed stocks and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 2% with all other variables held constant, other components of equity would have increased/decreased by $896 and $124, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

III. Cash flow and fair value interest rate risk

If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, there is no significant effect on after-tax profit for the three-month periods ended March 31, 2022 and 2021.

(b) Credit risk
I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

~36~

II. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a certain rating are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.
III. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
IV. The Group adopts the assumption under IFRS 9, whereby the default occurs when the contract payments are past due over 90 days.
V. The Group classifies customer’s accounts receivable in accordance with credit risk on trade. The Group applies the simplified approach using the provision matrix to estimate expected credit loss. The Group uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable, and the expected loss rate ranged from 0.3% to 100%. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

	For the three-month period ended March 31, 2022	For the three-month period ended March 31, 2022	For the three-month period ended March 31, 2022	For the three-month period ended March 31, 2022	For the three-month period ended March 31, 2022
			Notes receivable		Accounts receivable
At January 1	`$`		`1,398`	`$`	`4,898`
(Reversal) provision for impairment	`(`		`9)`		`604`
Write-off of allowance for doubtful
accounts			`-`	`(`	`89)`
At March 31		`$`	`1,389`	`$`	`5,413`
	Forthe three-monthperiod endedMarch31,2021
			Notes receivable		Accounts receivable
At January 1	`$`		`1,429`	`$`	`4,652`
Reversal for impairment	`(`		`81)`	`(`	`87)`
At March 31		`$`	`1,348`	`$`	`4,565`

~37~

(c) Liquidity risk

I. Cash flow forecasting is performed by the Finance Division of the Group. Finance division monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
II. For the forward exchange agreement which the Company is engaged in, the expected cash outflow amounted to US$3,332 thousand. There is no significant risk because the rate of forward exchange agreement had already been confirmed.
III. The Group has the following undrawn borrowing facilities:
March 31, 2022 December 31, 2021 March 31, 2021

Floating rate: Expiring within one year $ 6,050,576 $ 5,937,734 $ 5,973,292 IV. The table below analyses the Group’s non-derivative financial liabilities and gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

March31,2022 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables Lease liabilities (including current and non-current portion) Guarantee deposits received	Less than Between 1 and 1year 2 years `$ 16,303` `$ -` `30,000` `-` `3,591` `-` `723,858` `-` `305,070` `-` `52,108` `46,124` `-` `3,140`	Between 2 and 5 years `$ -` `-` `-` `-` `-` `80,210` `-`	More than 5 years
			`$ -` `-` `-` `-` `-` `42,598` `-`

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December31,2021 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables Lease liabilities (including current and non-current portion) Guarantee deposits received Derivative liabilities: Forward foreign exchange contracts March31,2021 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables Lease liabilities (including current and non-current portion) Guarantee deposits received	Less than 1year `$ 65,580` `70,000` `4,788` `891,967` `418,616` `50,143` `-` `20` Less than 1year `$ 81,344` `40,000` `3,591` `571,372` `351,453` `46,617` `-`	Between 1 and 2years `$ -` `-` `-` `-` `-` `42,934` `4,418` `-` Between 1 and 2years `$ -` `-` `-` `-` `-` `38,236` `3,465`	Between 2 and 5 years `$ -` `-` `-` `-` `-` `81,463` `-` `-` Between 2 and 5 years `$ -` `-` `-` `-` `-` `84,589` `-`	More than 5 years
				`$ -` `-` `-` `-` `-` `44,126` `-` `-` More than 5 years
				`$ -` `-` `-` `-` `-` `50,596` `-`

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) 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

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volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in forward foreign exchange contracts is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.
B. Financial instruments not measured at fair value
The financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, guarantee deposits paid, short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties), other payables and guarantee deposits received) are based on their book value which approximates fair value.
C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

March31,2022 Assets Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contract Financial assets at fair value through other comprehensive income Equity securities - non-current December31,2021 Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income Equity securities - non-current Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contract	Level 1 `-` `$` `43,536` `$` Level 1 `36,325` `$` `-` `$`	Level 2 `391` `$` `-` `$` Level 2 `-` `$` `20` `$`	Level3 `-` `$` `1,275` `$` Level3 `1,275` `$` `-` `$`	Total
				`391` `$`
				`44,811` `$`
				Total
				`37,600` `$`
				`20` `$`

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March31,2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward foreign exchange contract Financial assets at fair value through other comprehensive income Equity securities - non-current	Level 1 `-` `$` `4,910` `$`	Level 2 `17,234` `$` `-` `$`	Level3 `-` `$` `1,275` `$`	Total
				`17,234` `$` `6,185` `$`

D. The methods and assumptions the Group used to measure fair value are as follows:
The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.
E. For the three-month periods ended March 31, 2022 and 2021, there was no transfer between Level 1 and Level 2.
F. The following is the movement of level 3 for the three-month periods ended March 31, 2022 and 2021:

2021:
For the three-month period ended March 31, 2022 For the three-month period ended March 31, 2021	Equity Securities
	`1,275` `$`
	Equity Securities
	`1,275` `$`

G. For the three-month periods ended March 31, 2022 and 2021, there was no transfer into or out from Level 3.
H . Finance division is in charge of valuation procedures for fair value measurements beingcategorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

(4) Other matter

Due to the preventive measures implemented by the government to control the novel coronavirus (COVID 19) pandemic, the terminal consumption demand for some products has decreased. The Group has taken countermeasures by maintaining close contacts with clients and suppliers, continually assessing the supply of raw materials and market demand and strengthening employee health management. However, the impact of the pandemic on the Group’s operating performance and financial condition would depend on the subsequent development of the pandemic.

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13. SUPPLEMENTARY DISCLOSURES

According to the current regulatory requirements, the Group is only required to disclose the information for the three-month period ended March 31, 2022.

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiary, associates and joint ventures): Refer to table 1.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
I. Trading in derivative instruments undertaken during the reporting periods: Refer to Note 6(2), “Financial assets and liabilities at fair value through profit or loss - current”.
J. Significant inter-company transactions during the reporting periods: Refer to table 2.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 3.

(3) Information on investments in Mainland China

A. Basic information: Refer to table 4.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

Major shareholders information: Refer to table 5.

14. SEGMENT INFORMATION

(1) General information

The management of the Group has identified the operating segments based on information provided to the Group’s chief operating decision maker in order to make strategic decisions. The components of the Group and the basis for identification and measurement of segment information had no significant changes in this period.

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(2) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
For the three-month period ended March31,2022 Segment revenue Revenue from internal customers Revenue from external customers Segment income Depreciation and amortization Segment assets For the three-month period ended March31,2021 Segment revenue Revenue from internal customers Revenue from external customers Segment income Depriciation and amortization Segment assets	TTET Union Master Channels Corporation Corporation `4,654,486` `$` `1,122,238` `$` `78,554` `-` `4,575,932` `1,122,238` `547,967` `60,642` `34,332` `16,106` `5,862,112` `1,396,612` TTET Union Master Channels Corporation Corporation `3,848,380` `$` `1,059,894` `$` `65,543` `-` `3,782,837` `1,059,894` `565,976` `55,969` `31,241` `13,855` `5,468,740` `1,337,106`	Total
		`5,776,724` `$` `78,554` `5,698,170` `608,609` `50,438` `7,258,724` Total
		`4,908,274` `$` `65,543` `4,842,731` `621,945` `45,096` `6,805,846`

(3) Reconciliation for segment income and segment assets

The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income. The amounts provided to the chief operating decision-maker with respect to segment income and segment assets are measured consistent with that of the financial statements.

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TTET Union Corporation and Subsidiary

Table 1

Expressed in thousands of NTD

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

March 31, 2022

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of March31,2022	As of March31,2022		Note
				Number of shares	Bookvalue	Ownership	Fairvalue
TTET Union Corporation	Stock: FOOD CHINA INC. Taiwan Mobile Co., Ltd. Taiwan Secom Co., Ltd. Far Eastern New Century Corporation The Shanghai Commercial & Savings Bank, Ltd.	`－` `－` `－` `－` `－`	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	`400,000` `100,000` `100,000` `530,000` `120,000`	`1,275` `$` `10,500` `10,900` `16,112` 6,024	`1.08%` `－` `－` `－` `－`	`1,275` `$` `10,500` `10,900` `16,112` 6,024	`－` `－` `－` `－` `－`

Table 1, Page 1

Table 2

Expressed in thousands of NTD

TTET Union Corporation and Subsidiary

- Significant inter company transactions during the reporting period

For the three-month period ended March 31, 2022

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transaction terms	Transaction terms
				General ledger account	Amount	Transaction terms	Percentage of total consolidated revenues or total assets(Note3)
0	TTET Union Corporation	Master Channels Corporation	1	Sales Accounts receivable	`78,554)` `($` `32,909`	Closes its accounts each half month, notes due in 20 days `－`	(1%) `－`

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; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice.)
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated revenues or total assets, it is computed based on period-end balance of transaction to consolidated assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Table 2, Page 1

Expressed in thousands of NTD

TTET Union Corporation and Subsidiary

Information on investees (not including investees in China) For the three-month period ended March 31, 2022

Table 3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2022	Shares held as at March 31,2022	Shares held as at March 31,2022	Net profit (loss) of the investee for the three-month period ended March 31,2022	Investment income (loss) recognized by the Company for the three-month period ended March 31,2022	Note
				Balance as at March 31,2022	Balance as at March 31,2021	Number of shares	Ownership	Book value
TTET Union Corporation	Master Channels Corporation	Taiwan	Wholesale of food	`138,585` `$`	`138,585` `$`	`12,039,999`	`80.27`	`441,375` `$`	`48,505` `$`	`38,751` `$`	Subsidiary

Table 3, Page 1

TTET Union Corporation and Subsidiary Information on investments in Mainland China

Expressed in thousands of NTD

For the three-month period ended March 31, 2022

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Table 4
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Amount remitted from Taiwan to Accumulated Accumulated Accumulated Mainland China/ amount of amount Net income of Ownership Investment income amount Amount remitted back remittance from of remittance investee for the held by (loss) recognized of investment to Taiwan for the three-month Taiwan to from Taiwan to three-month the by the Company Book value of income Investment Mainland China period ended March 31, 2022 Mainland China period ended Company for the three-month investments as remitted back to Investee in Main business Paid-in method as of January 1, Remitted to Remitted back as of March 31, March 31, (direct or period ended March of March 31, Taiwan as of Mainland China activities capital （ Note ） 2022 Mainland China to Taiwan 2022 2022 indirect) 31, 2022 2022 March 31, 2022 Note Beijing Program planning, $ 40,145 (2) $ 6,882 $ - $ - $ 6,882 $ 356 1.08% $ - $ 1,275 $ - － FoodChina System design, Online etc. Information and Technology Ltd.

Note : Investment methods are classified into the following three categories:

(1) Directly invest in a company in Mainland China.

(2) Indirect investment in PRC through the existing company (FOOD CHINA INC.) located in the third area. (3) Others

Companyname	Accumulated investment balance from Taiwan to MainlandChina	Amount approved by MOEA	Ceiling amount of investments in Mainland China imposed by MOEA(Note 1)
TTET Union Corporation	`$ 6,882`	`$ 6,882`	`$ 3,268,094`

Note 1: The ceiling amount is 60% of consolidated net worth. Note 2: Foreign currencies were translated into New Taiwan Dollars using the exchange rate as of balance sheet date as follows: USD:NTD 1:28.675.

Table 4, Page 1

TTET Union Corporation and Subsidiary

Major shareholders information

Table 5

Expressed in shares

March 31, 2022

Name of major shareholders	Number of	shares held	Ownership	Note
	Common shares	Preferred shares
Uni-President Enterprises Corp. Tai Hwa Oil Industrial Co., Ltd. Great Wall Enterprise Co., Ltd. Kai Yu Investment Co., Ltd.	`61,594,201` `29,159,706` `15,416,960` `12,225,730`	`-` `-` `-` `-`	`38.50%` `18.22%` `9.63%` `7.64%`	`－` `－` `－` `－`

Note : The major shareholders information was calculated by Taiwan Depository & Clearing Corporation in accordance with the common shares

(including treasury shares) and preferred shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter.

The share capital which was recorded on the financial statements might be different from the number of shares held in dematerialised form because of the different calculation basis.

Table 5, Page 1

AI assistant

TTET Union Corp. — Interim / Quarterly Report 2022

51756_rns_2022-12-15_c91ed869-aa64-4318-b561-a3130250f99d.pdf

TTET UNION CORPORATION AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS AND

Introduction

Scope of Review

Conclusion

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

TTET UNION CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS

TTET UNION CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS

TTET UNION CORPORATION AND SUBSIDIARY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

1. HISTORY AND ORGANIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(3) Basis of consolidation

(4) Employee benefits

Defined benefit plans

(5) Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets and liabilities at fair value through profit or loss – current

A. The ageing analysis of notes receivable and accounts receivable is as follows:

(4) Inventories

(6) Property, plant and equipment

－ (7) Leasing arrangements lessee

(8) Intangible assets

(9) Short-term borrowings

(11) Pensions

(12) Share capital

(13) Capital surplus

(14) Retained earnings

(15) Operating revenue

B. Contract liabilities

(16) Interest income

(17) Other income

(18) Other gains and losses

(19) Finance costs

(20) Expenses by nature

(21) Employee benefit expense

(22) Income tax

(23) Earnings per share

(24) Supplemental cash flow information

A. Investing activities with partial cash payments:

B. Operating activities with no cash flow effects:

(25) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant transactions and balances with related parties

A. Sales and processing revenue

B. Purchases

C. Accounts receivable

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

II. Price risk

(c) Liquidity risk

(3) Fair value information

(4) Other matter

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

TTET Union Corp. Interim / Quarterly Report 2022

`－` (7) Leasing arrangements lessee