Investment Properties

12 Months Ended

Dec. 31, 2024

17.	INVESTMENT PROPERTIES

For the year ended December 31, 2022


	Land		Buildings and Improvements			Right-of-use Assets			Total
	NT$		NT$			NT$			NT$

Cost

Balance at January 1, 2022	$	35,572	$	16,376,098		$	10,042,678		$	26,454,348
Additions		-		114,786			-			114,786
Disposals		-		(9,770	)		-			(9,770	)
Reclassification		-		39,158			(10,314	)		28,844


	Land		Buildings and Improvements			Right-of-use Assets			Total
	NT$		NT$			NT$			NT$

Effects of foreign currency exchange differences	$	-	$	237,171		$	143,516		$	380,687


Balance at December 31, 2022	$	35,572	$	16,757,443		$	10,175,880		$	26,968,895


Accumulated depreciation

Balance at January 1, 2022	$	-	$	3,272,146		$	1,037,415		$	4,309,561
Depreciation expenses		-		779,431			327,583			1,107,014
Disposals		-		(8,354	)		-			(8,354	)
Reclassification		-		(198,631	)		(12,186	)		(210,817	)
Effects of foreign currency exchange differences		-		23,515			18,884			42,399


Balance at December 31, 2022	$	-	$	3,868,107		$	1,371,696		$	5,239,803


Carrying amount at December 31, 2022	$	35,572	$	12,889,336		$	8,804,184		$	21,729,092

For the year ended December 31, 2023


	Land		Buildings and Improvements			Right-of-use Assets			Total
	NT$		NT$			NT$			NT$

Cost

Balance at January 1, 2023	$	35,572	$	16,757,443		$	10,175,880		$	26,968,895
Additions		-		35,304			-			35,304
Reclassification		-		(182,588	)		(12,233	)		(194,821	)
Effects of foreign currency exchange differences		-		(298,273	)		(171,087	)		(469,360	)


Balance at December 31, 2023	$	35,572	$	16,311,886		$	9,992,560		$	26,340,018


Accumulated depreciation

Balance at January 1, 2023	$	-	$	3,868,107		$	1,371,696		$	5,239,803
Depreciation expenses		-		766,322			325,557			1,091,879
Reclassification		-		(51,031	)		(4,309	)		(55,340	)
Effects of foreign currency exchange differences		-		(80,078	)		(25,362	)		(105,440	)


Balance at December 31, 2023	$	-	$	4,503,320		$	1,667,582		$	6,170,902

Carrying amount at December 31, 2023	$	35,572	$	11,808,566		$	8,324,978		$	20,169,116

For the year ended December 31, 2024


	Land		Buildings and Improvements			Right-of-use Assets		Total
	NT$		NT$			NT$		NT$

Cost

Balance at January 1, 2024	$	35,572	$	16,311,886		$	9,992,560	$	26,340,018
Additions		-		15,145			-		15,145
Disposals		-		(62	)		-		(62	)
Reclassification		-		(88,176	)		159		(88,017	)
Effects of foreign currency exchange differences		-		845,530			520,026		1,365,556

Balance at December 31, 2024	$	35,572	$	17,084,323		$	10,512,745	$	27,632,640


Accumulated depreciation

Balance at January 1, 2024	$	-	$	4,503,320		$	1,667,582	$	6,170,902
Depreciation expenses		-		748,055			331,204		1,079,259
Disposals		-		(28	)		-		(28	)
Reclassification		-		(9,340	)		54		(9,286	)
Effects of foreign currency exchange differences		-		241,359			95,390		336,749


Balance at December 31, 2024	$	-	$	5,483,366		$	2,094,230	$	7,577,596

Carrying amount at December 31, 2024	$	35,572	$	11,600,957		$	8,418,515	$	20,055,044


	Land		Buildings and Improvements			Right-of-use Assets		Total
	US$ (Note 4)		US$ (Note 4)			US$ (Note 4)		US$ (Note 4)

Cost

Balance at January 1, 2024	$	1,085	$	497,466		$	304,744	$	803,295
Additions		-		462			-		462
Disposals		-		(2	)		-		(2	)
Reclassification		-		(2,689	)		5		(2,684	)
Effects of foreign currency exchange differences		-		25,786			15,859		41,645

Balance at December 31, 2024	$	1,085	$	521,023		$	320,608	$	842,716


Accumulated depreciation

Balance at January 1, 2024	$	-	$	137,338		$	50,856	$	188,194
Depreciation expenses		-		22,813			10,101		32,914
Disposals		-		(1	)		-		(1	)
Reclassification		-		(284	)		2		(282	)


	Land		Buildings and Improvements		Right-of-use Assets		Total
	US$ (Note 4)		US$ (Note 4)		US$ (Note 4)		US$ (Note 4)

Effects of foreign currency exchange differences	$	-	$	7,361	$	2,909	$	10,270


Balance at December 31, 2024	$	-	$	167,227	$	63,868	$	231,095

Carrying amount at December 31, 2024	$	1,085	$	353,796	$	256,740	$	611,621

Right-of-use assets included in investment properties were leasehold land located in Shanghai and were subleased under operating leases.

The abovementioned investment properties were leased out for 1 to 20 years, with an option to extend for an additional lease term. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease term.

In addition to fixed lease payments, some of the lease contracts also indicated that the lessees should make variable payments determined at a specific percentage of the excess of respective lessee’s monthly revenues over a specific amount.

The total lease payments to be received in the future under operating leases of investment properties were as follows:


	December 31
	2023		2024
	NT$		NT$		US$ (Note 4)

Year 1	$	1,596,827	$	1,553,091	$	47,365
Year 2		1,333,442		1,333,489		40,668
Year 3		1,154,877		1,041,709		31,769
Year 4		893,353		768,824		23,447
Year 5		687,266		644,958		19,669
Year 6 onwards		1,777,808		1,247,966		38,059


	$	7,443,573	$	6,590,037	$	200,977

The investment properties were depreciated on a straight-line basis over the following useful lives:



Main buildings			10-40 years
Right-of-use assets			10-50 years

Because the market conditions were severely affected by COVID-19 in 2022, the Group agreed to provide unconditional rent concessions for some lease contracts. The rent concessions were accounted for as adjustments to related income over the remaining lease term. For the year ended December 31, 2022, total amount from the rent concessions was NT$114,538 thousand.

The fair value of the investment properties was measured using the market approach and the income approach based on

Level

3 inputs by independent professional appraisers. The significant unobservable inputs were discount rates. The fair value of the investment properties was as follows:

	$		$		$
	December 31
	2023		2024
	NT$		NT$		US$ (Note 4)

Fair value	$	34,789,532	$	34,684,323	$	1,057,771

Refer to Note 36 for the carrying amount of the investment properties that had been pledged by the Group to secure borrowings.