Finance costs


	For the Year Ended December 31
	2020			2021			2022
	NT$			NT$			NT$			US$ (Note 4)

Interest on lease liabilities	$	88,026		$	105,159		$	134,871		$	4,389
Interest on borrowings and bonds payable		3,498,999			2,790,368			3,912,526			127,319

Total interest expense for financial liabilities measured at amortized cost		3,587,025			2,895,527			4,047,397			131,708
Less: Amounts included in the cost of qualifying assets
Inventories related to real estate business		(95,589	)		(71,011	)		—			—
Property, plant and equipment		(54,208	)		(25,581	)		(58,263	)		(1,896	)

		3,437,228			2,798,935			3,989,134			129,812
Other finance costs		22,283			32,372			20,648			672


	$	3,459,511		$	2,831,307		$	4,009,782		$	130,484

Information relating to the capitalized borrowing costs was as follows:


	For the Year Ended December 31
	2020		2021		2022

Annual interest capitalization rates
Inventories related to real estate business (%)		4.20-4.75		4.20-4.35		—
Property, plant and equipment (%)		0.49-3.47		0.48-1.08		0.59-4.22

Depreciation and amortization


	For the Year Ended December 31
	2020		2021		2022
	NT$		NT$		NT$		US$ (Note 4)

Property, plant and equipment	$	46,016,548	$	48,604,160	$	48,945,756	$	1,592,768
Right-of-use assets		946,880		1,114,950		1,468,040		47,772
Investment properties		562,260		751,047		1,107,014		36,024
Other intangible assets		3,733,377		4,054,120		3,931,079		127,923


Total	$	51,259,065	$	54,524,277	$	55,451,889	$	1,804,487


Summary of depreciation by function
Operating costs	$	44,017,839	$	46,880,267	$	47,894,701	$	1,558,565
Operating expenses		3,507,849		3,589,890		3,626,109		117,999


	$	47,525,688	$	50,470,157	$	51,520,810	$	1,676,564


	For the Year Ended December 31
	2020		2021		2022
	NT$		NT$		NT$		US$ (Note 4)
Summary of amortization by function
Operating costs	$	2,231,060	$	2,443,870	$	2,465,837	$	80,242
Operating expenses		1,502,317		1,610,250		1,465,242		47,681


	$	3,733,377	$	4,054,120	$	3,931,079	$	127,923

Operating expenses directly related to investment properties


	For the Year Ended December 31
	2020		2021		2022
	NT$		NT$		NT$		US$ (Note 4)

Direct operating expenses of investment properties that generated rental income	$	1,121,854	$	1,422,463	$	1,616,197	$	52,593

Employee benefits expense


	For the Year Ended December 31
	2020		2021		2022
	NT$		NT$		NT$		US$ (Note 4)

Post-employment benefits
Defined contribution plans	$	2,979,167	$	3,489,642	$	3,590,439	$	116,838
Defined benefit plans		217,186		214,599		188,141		6,123

		3,196,353		3,704,241		3,778,580		122,961
Equity-settled share-based payments		955,575		699,211		989,843		32,211
Other employee benefits		76,648,412		90,412,118		98,404,937		3,202,243


	$	80,800,340	$	94,815,570	$	103,173,360	$	3,357,415

Summary of employee benefits expense by function
Operating costs	$	52,526,164	$	61,555,563	$	65,063,705	$	2,117,270
Operating expenses		28,274,176		33,260,007		38,109,655		1,240,145


	$	80,800,340	$	94,815,570	$	103,173,360	$	3,357,415

Employees’ compensation and the remuneration to directors

The Articles stipulates to distribute employees’ compensation and remuneration to directors at the rates of

0.01%-1.00%

and no higher than 0.75%, respectively, of net profit before income tax, employees’ compensation and remuneration to directors.


	For the Year Ended December 31
	2021				2022
	Accrual Rate (%)		Accrual Amount		Accrual Rate (%)		Accrual Amount
			NT$				NT$		US$ (Note 4)

Employees’ compensation		0.19	$	121,935		0.25	$	155,398	$	5,057
Remuneration to directors		0.30		195,095		0.40		248,637		8,091

If there is a change in the proposed amounts after the consolidated financial statement authorized for issue, the differences are recorded as a change in accounting estimate and will be adjusted in the following year.

In March 2021 and 2022, the board of directors resolved the appropriations of employees’ compensation and remuneration to directors in cash for 2020 and 2021, respectively. The differences between the resolved amounts and the accrued amounts reflected in the annual consolidated financial statements for the years ended December 31, 2020 and 2021 were deemed changes in estimates. The differences were NT$818 thousand and NT$1,030 thousand (US$34 thousand) and were adjusted in net profit for each of the year

ended December 31, 2021 and 2022, respectively.


	For Year 2020				For Year 2021
	Employees’ compensation		Remuneration to directors		Employees’ compensation		Remuneration to directors
	NT$		NT$		NT$		NT$

Resolved by the board of directors	$	54,909	$	109,000	$	122,000	$	194,000

Recognized in the consolidated financial statements	$	54,909	$	109,818	$	121,935	$	195,095

Information on the employees’ compensation and the remuneration to directors resolved by the board of directors is available at the Market Observation Post System website of

the

Taiwan Stock Exchange (the “TWSE”).