Stock Code: 1259

AN-SHIN FOOD SERVICES CO., LTD.

2019 ANNUAL REPORT

This Annual Report may be found at: Market Observation Post System: (MOPS) http://mops.twse.com.tw Website of the Company: http://www.mos.com.tw

Printed on April 5, 2020

I. Name, job title, contact telephone, and e-mail address of the spokesman and deputy spokesman of the Company: Spokesperson Deputy Spokesperson Name: Shih, Chi-Yin Name: Ho, Chi-Yin Title: Assistant Vice President Title: Special Assistant of the Chairman Telephone number: (02) 2567-5001 Telephone number: (02) 2567-5001 E-mail address: [email protected] E-mail address: [email protected]

II. Address and telephone number of the head office, branch, and factory: Address of the head office: 8F., No.156-1, Songjiang Rd., Zhongshan Dist., Taipei City 104, Taiwan Telephone number: (02) 2567-5001 Address and telephone number of the branch: Kindly refer to A. Principal Business Activities of (1) Scope of Business in Ⅴ. OPERATING HIGHLIGHTS (Page 101). Factory: N/A

III. Name, address, website, and telephone number of the stock agency: Name: Registrar Agency Department of Capital Website: https://www.capital.com.tw Securities Corporation Address: B2, No.97, Sec. 2, Dunhua S. Rd., Daan TEL: (02)2702-3999 Dist., Taipei City 10601, Taiwan

IV. Name of the certified public accountant (hereinafter referred to as “CPA”) who audited the latest annual financial report and name, address, website, and telephone number of this CPA firm: Name of the CPA: Chih, Ping-Chun and Wu, Yu-Lung Name of the CPA firm: PricewaterhouseCoopers Website: http://www.pwc.tw (PwC) Taiwan Address: 27F, No. 333, Section 1, Keelung Road, TEL: (02) 2729-6666 Taipei City

V. Name of the overseas stock exchange where the Company’s overseas securities are listed and the inquiry method for information regarding such overseas securities: N/A

VI. Website of the Company: http://www.mos.com.tw

Table of Contents Pages One. LETTER TO THE SHAREHOLDERS ...... 1 Two. COMPANY PROFILE ...... 4 I. Date of Establishment ...... 4 II. Company Profile ...... 4 Three. CORPORATE GOVERNANCE REPORT ...... 11 I. Organization System ...... 11 II. Information about the Directors, Supervisors, President, Vice President, Assistant Vice President, and Head of the Department and Branch ...... 14 III. Remuneration paid to directors, supervisors, vice president, and assistant vice presidents for the most recent fiscal year ...... 25 IV. Implementation of corporate governance ...... 33 V. Information about the fees for the CPA ...... 87 VI. Information about the change of the CPA ...... 87 VII. The Company’s Chairman, President, officer in charge of financial or accounting affairs having served in the firm where the CPA serves or its affiliated enterprise in the prior year ...... 87 VIII. In the recent fiscal year and as of the date of this Annual Report, the transfer or pledge of shares by the directors, supervisors, officers, and shareholders holding more than 10% of the Company’s total issued and outstanding shares ...... 88 IX. Information of the top ten shareholders, being related parties, spouse, or relatives within the second degree of kinship among themselves ...... 90 X. The number of shares of an enterprise held by the Company, the Company’s directors, supervisors, officers, and business investments controlled by the Company directly or indirectly, and the consolidated shareholding percentage ...... 91 Four. STATUS OF FUNDING ...... 92 I. Capital and Shares ...... 92 II. Issuance of corporate bonds ...... 100 III. Issuance of Preferred Stock...... 100 IV. Issuance of Overseas Depository Receipts ...... 100 V. Issuance of Employee Stock Options...... 100 VI. Issuance of Employee Restricted Shares ...... 100 VII. Issuance of New Shares for Mergers and Acquisitions ...... 100 VIII. Implementation of the Capital Utilization plan...... 100 Five. OPERATING HIGHLIGHTS ...... 101 I. Business Activities ...... 101 II. Market Profile, Production, and Sales ...... 121 III. Employee Statistics ...... 134

Table of Contents Pages IV. Information on Environmental Protection Expenses ...... 135 V. Labor Management Relationship ...... 137 VI. Material Contracts ...... 144 Six. FINANCIAL HIGHLIGHTS ...... 146 I. Condensed Balance Sheet and Statement of (Comprehensive) Income in the Most Recent 5 Years ...... 146 II. Financial Analysis in the Most Recent 5 Years ...... 151 III. Supervisors’ Review Report of the Financial Statements in the Most Recent Year ..... 154 IV. Financial Statements in the Most Recent Year ...... 156 V. Individual Financial Statements of the Company Audited by the CPA ...... 156 VI. Summary of any Financial Difficulty of the Company or Its Affiliates in the Most Recent Year and the Impact of such Difficulty on the Company ...... 156 Seven. DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND FINANCIAL PERFORMANCE - RISK FACTORS ...... 157 I. Financial Conditions ...... 157 II. Financial Performance ...... 159 III. Cash flow ...... 161 IV. Impact of Significant Capital Expenditures in the Most Recent Year on the Financial and Operating Conditions of the Company ...... 162 V. Re-investment Policy of the Most Recent Year, Reasons for Profit (Loss), Improvement Plan, and Investment Plan for the Following Year ...... 162 VI. Analysis and Evaluation of Risk Factors ...... 163 VII. Other Material matters ...... 169 Eight. SPECIAL DISCLOSURES ...... 170 I. Affiliated enterprise-related information ...... 170 II. Any Private Placement of Securities within the Latest Fiscal Year and as of the Date of the Annual Report ...... 173 III. Any Share Ownership and Disposal of Shares of the Company by Subsidiaries within the Latest Fiscal Year and as of the Date of the Annual Report ...... 173 IV. Additional Information Required to be Disclosed ...... 173 Nine. For the most recent year and up to the printing date of the annual report, events having a material impact on shareholders' rights and interests or securities prices according to Subparagraph 2 of Paragraph 3 of Article 36 of the Securities and Exchange Act ...... 173

Annex 1: 2019 Consolidated Financial Report ...... 174 Annex 2: 2019 Standalone Financial Report ...... 253

One. LETTER TO SHAREHOLDERS

Dear Shareholders:

AN-SHIN FOOD SERVICES CO., is dedicated to making contributions to humanity and

society, and embraces its responsibility in food safety. In addition to implementing the

three-in-one green policy, we also have expanded our social responsibility efforts to include

suppliers and extend our attention to perfecting the dining environment. By adopting full service

cycles and quality control, we bring health and assurance to consumers’ food. Our food inspection

center has obtained the certification of the Taiwan Accreditation Foundation (TAF) in 2011. The

Company has also obtained TFDA certification from the Ministry of Health and Welfare in 2018,

which empowers us to be the first and the only company in the fast food industry to obtain two

inspection certifications. In addition, we also participated in the FAPAS inspection capability

verification of the UK Central Science Laboratory which indicates that our inspection capability is

internationally recognized. AN-SHIN FOOD is dedicated to promoting the entire value chain and

enforcing assurance, safety, health, and sustainability.

With the great efforts contributed by all of our employees, the Company was ranked among the

top 5 percentile of companies in the Taipei Exchange’s “Evaluation of Corporate Governance” for

four consecutive years as of 2019. AN-SHIN FOOD’s corporate social responsibility report has

been accepted in TCSA assessments since 2015, and awarded for four consecutive years,

including “Corporate Sustainability Report Award - Gold” (2 consecutive years), “Overall

Performance Excellence Award”, and the “Supply Chain Management Award”, all of which are

testaments to AN-SHIN FOOD’s business management and corporate social responsibility efforts.

Through the persistent control in food inspection, AN-SHIN FOOD SERVICES CO., expects to

provide consumers with the safest and most warmhearted meals and services. The Company is

well recognized and supported by our consumers and its overall business performance has been

growing steadily.

I. The Company’s business performance

- 1 - The Company had a total of 275 stores as of December 31, 2019, representing a net increase of

10 stores compared to 2018.

Despite increasing costs caused by changes in labor regulations and rising minimum wages, the

Company has invested actively into new technologies and automation to improve the efficiency

and quality of services delivered to consumers. New solutions such as self-service kiosks, online

and offline credit card payments, MOS card top-up via credit card, in-seat ordering, MOS card

and credit card payment, etc, have all been introduced to address customers' hassle of queuing at

the counter for ordering and payment. Meanwhile, workstation monitors have been added in the

kitchen area to speed up food preparation. To enhance communication with consumers, the

Company has adopted an e-bulletin and IG as its new media, in addition to the use of a website,

Facebook, MOS LIFE, and Line. Together, they deliver messages directly to consumers in the

most efficient way possible.

The results of business implementation in 2019 were as follows: Unit: NTD in thousands (other than the earnings per share in NTD) 2019 2018 Growth rate (%) Consolidated Operating 5,484,492 5,252,104 4.42 Consolidated Net profit (note) 161,947 140,649 15.14 Basic earnings per share 5.02 4.36 15.14

Note: The consolidated net profit is contributed to the shareholders of the Parent Company.

II. Business Prospects

(I) In addition to continuously providing consumers with “safe, secure, healthy, and tasty” catering services with the Company’s 3Q quality innovations (Service Quality, Product Quality, and Environmental Quality), local ingredients are used to develop healthy and delicious products, whereas smart technologies are utilized to conduct new investment projects, such as: delivery fleet, service efficiency and quality optimization, and improved logistics and back-end support. Meanwhile, investments have been made to smart farming to mitigate the impacts from climate change and

- 2 - pests, so that we may continue to provide hazard-free food and create better experiences for the benefit of our customers.

(II) Employees are important assets of the companies in the service industry. Other than training and conducting group activities for motivating our employees, we also cooperate with the government in the project of “Constructing a Smart and Healthy City”, with a focus on improving our employees’ safety in the workplace and assisting with their health management, to develop a smart and healthy workplace for our employees. The combination of technology, such as the Internet of Things, continuously promotes healthy eating and exercise habits to create a happy and healthy workplace for our employees.

(III) As for overseas markets, we not only focus on growing the Mainland market, but also reiterate our persistence on safety and assurance time and time again, and adopt marketing practices that conform with local consumer habits to maximize revenue and profit growth. In Australia, we continue to introduce products that meet the taste of local customers and build connections with the local community by hiring local managers and training local employees. In the meantime, we also strive to develop delivery services and e-commerce as ways to break even.

For 2020, AN-SHIN FOOD will emphasize introducing “3Q innovation, smart technology, and distinctive experience” and focus not only on taste, but delivering differentiated services and improving customers’ overall experience and satisfaction. We are confident that our commitment to our fundamental strategies, business philosophy, integrity, and sustainability will create greater values for shareholders with the introduction of an innovative business model.

Chairman: Lin, Chien-Yuan

- 3 - Two COMPANY PROFILE I. Date of Establishment: November 23, 1990 II. Company Profile Time Summary November 1990 Established “AN‐SHIN FOOD S ERVICES CO., Ltd.” as a joint venture and technical cooperation with MOS Food Services, Inc., Japan in Taiwan, and the paid up capital was NTD 80 million. February 1991 Opened the “Xin Sheng South Road Store”, the first MOS burger store in Taiwan. Launched the first rice burger in Taiwan and set sinks by guest seating areas (pioneered in the fast food industry). February 1994 Translated the book “Be Brave to Dream” written by founder Sakurada Satoshi, and authorized Crown Culture Corporation to publish it in Taiwan.

January 1995 Developed new breakfast merchandise – launched the bacon and egg b June 1996 Newly launched breakfast sandwich, Low‐fat high‐fiber Konnyaku. July 2000 Official operation of Jilin Training Center. October 2000 Provided porcelain insulation cups and soup cups for customers eating in the store to reduce the usage of paper made products and to make an effort to preserve the earth. June 2001 Taipei Linsen Store adjusted its business hours to 24 hours a day and became the first store to operate 24 hours a day. January 2003 Established the “Fast Casual” brand image campaign and executed the plan to accelerate expansion (opened 27 stores throughout the year). March 2004 Synchronized with stores in Japan to use natural beef from New Zealand. August 2004 Accomplished the plan to expand to 100 stores, and 39 stores were added during the year. October 2004 Launched the “Re-employment Happy Career” project, and released 500 job opportunities together with 5 other major food service chains.

March 2005 Introduced the no‐bun burger (Green cod burger) series. March 2005 Full utilization of eco-friendly soy ink to print advertisements to reduce pollution during the printing process. July 2005 Signed an organic rice cooperation agreement with the Counsel of Agriculture, Executive Yuan. Upgraded rice burgers into organic rice burgers. January 2006 Incorporated the Ingredient Product Traceability System and joined “The Build Up Plan for a Demonstrative Model of the Overall Process of Buying and Selling of Agricultural Product Traceability” from the Counsel of Agriculture, commissioned by the Logistics Association.

- 4 - Time Summary January 2007 Opened stores operating in 6 Taiwan High Speed Rail stations (Taoyuan, Hsinchu, Taichung, Chiayi, Tainan, Zuoying). March 2007 Initiated the LOHAS market to deliver fresh and safe products straight from their origin, so customers can enjoy ingredients with the same quality in MOS stores at home. April 2007 Replaced plastic packing and containers with PLA products. PLA products are made from refined corn that is able to dissolve naturally, does not generate toxic matter, and lessens toxic gases during combustion. July 2007 Issued the pre-paid non-contact sensory value storage card “MOS CARD” October 2008 Rice burgers fly into the sky, happy delicacies beyond the clouds - Cooperated with China Airlines, serving MOS rice burgers on international flights. December 2008 Honored with the “Excellent Service GSP certification” by the Department of Commerce of the Ministry of Economic Affairs. December 2008 “Flavor phone case” was awarded the Taiwan design Platinum Award and German design IF award. January 2009 Established the “Call 449‐2626” phone ordering hotline with trial operations in Tainan and Kaohsiung areas. November 2009 Awarded first place by the Global Views Monthly Magazine Excellent Service in the fast food industry. November 2009 New launch of the MOS Café November 2009 Founded An‐Shin Food Services (Singapore) Pte. Ltd., with other investors. Indirectly invested in Mainland China to develop the MOS burger business, founded Xiamen An Shin Food Management Co., Ltd. February 2010 Opened the first branch in Xiamen (Siming South store) March 2010 Received the ISO22000 Food Safety Management System and HACCP certificate by the AFAQ‐BQR French Standards Association. August 2010 Awarded the “Contribution to Job Creation” by the Executive Yuan. December 2010 Completed paperwork for publicly offered shares. December 2010 “MOS milk adventure series” was awarded a gold medal by the 2010 Taiwan Visual Awards for its packaging design. January 2011 Listed on the Emerging Stocks Board. February 2011 Founded MOS Burger Australia Pty. Ltd., with other investors, and developed the MOS burger business in Australia. March 2011 Awarded first place for the food services category, in the 2nd annual Green Brands rankings by Digital Era Magazine. April 2011 Opened the first branch in Australia, Brisbane. It was a milestone in our international progress by establishing a foothold in an English‐language country.

- 5 - Time Summary May 2011 Awarded as a model company for environmental protection in the 7th annual CSR Awards by the Global Views Magazine. June 2011 An‐Shin food (MOS burger) 20th anniversary and opened the 200th store August 2011 Awarded the “Product Carbon Footprint label certificate” by the Executive Yuan, became the first fast food company with a carbon footprint certificate. August 2011 The Company’s food inspection center passed the TAF National Accreditation Foundation Certification Evaluation (Lab code 2473) December 2011 Officially listed on TPEx, on December 15th (stock code 1259). March 2012 Awarded first place for the food services category, in the 3rd annual Green Brands rankings by Digital Era Magazine. March 2012 Opened the Kinmen Minchuan store, which is the first fast food branch on Kinmen island. June 2012 Launched the mobile APP “MOS Order” and “MOS Wish”, the first fast food chain restaurant to utilize a mobile APP to place orders in the Taiwan fast food industry. July 2012 MOS burger cooperated with Burt’s Bees and promoted a two-year charitable campaign “MOS Burger x Burt’s Bees, a minor revolution in nutritious lunches” December 2012 Opened the first branch in Shanghai, at Hongwell Square. March 2013 Awarded special recognition for the food services category, in the 4th annual Green Brands rankings by Digital Era Magazine. June 2013 Awarded the gold medal in the “2013 Taiwan Service Industry Ranking” in the fast food services category by Commercial Times. August 2013 MOS burger was established in Penghu and Sun Moon Lake October 2013 Minchuan West branch and Neihu Gangqian branch each received the “Taipei Best Air Pollution Control Equipment in the Catering Industry” 1st and 3rd prize. November 2013 In coordination with government oil testing, all branches installed the “rapid detection of the total polar compound tester”. March 2014 Exceptional in the food services category in the 5th annual Green Brands rankings by Digital Era Magazine. April 2014 Passed the “CG6008 Corporate Governance System Evaluation” certification by the Taiwan Corporate Governance Association. April 2014 Awarded 2nd place in the Gold Metal Service Survey fast food chain stores category conducted by CommonWealth Magazine. Awarded Editor’s Choice in the Tourism and Catering Category for the June 2014 Digital Service Standard Benchmark Ranking by Digital Era Magazine. Awarded first place in the 11th annual Next Magazine Service Award in the October 2014 catering and coffee chain category. October 2014 Awarded the certificate of gratitude for participating in the “land quality

- 6 - Time Summary advertising” campaign by the Environmental Protection Agency, Executive Yuan. November 2014 Awarded the certificate of gratitude for participating in the “vehicle carbon reduction, green life, new future” campaign (the use of electric delivery vehicles) from the Environmental Protection Agency, Executive Yuan. “Green Merchant”29 store located in New Taipei City received awards December 2014 from the New Taipei City Environmental Protection Bureau. March 2015 Ranked A in the 12th Disclosure of Information Evaluation Ranking. Ranked in the top 20% in the 1st Annual Corporate Governance Evaluation April 2015 System Ranking. Held a “Cherry Blossom Season New Product Press Conference” to February 2015 announce new product offerings. TECO Group’s affiliated company held the Taipei International Food June 2015 Festival at the Taipei World Trade Center and Nangang Trade Center. Awarded the gold medal in the “Taiwan Service Industry Ranking” in the June 2015 fast food services category, ranked by Commercial Times. Awarded the “Creative Award for Corporate Volunteers” by the Taipei City June 2015 Government, Bureau of Social Affairs. August 2015 Published the Company’s first 2014 Corporate Social Responsibility Report Awarded first place in the 12th annual Next Magazine Service Award in the October 2015 catering and coffee chain category. Awarded the Bronze Medal by the Taiwan Corporate Sustainability Award November 2015 in the catering category as the only recipient from the food services industry. Opened stores operating in 3 Taiwan High Speed Rail stations (Miaoli, December 2015 Changhua, Yunlin) Held the 25th anniversary ceremony, launched the MOS card (2nd Edition) March 2016 with mobile payment function and optimized the MOS Order APP function. Ranked among the top 5% in the 2nd Annual Corporate Governance April 2016 Evaluation System Ranking. May 2016 Awarded 3rd in the TCFA outstanding service personnel of chain restaurants TECO Group’s affiliated company held the Taipei International Food June 2016 Festival at the Taipei World Trade Center and Nangang Trade Center. July 2016 Awarded the Golden award in the Taiwan Best Service awards. August 2016 Published the Company’s 2015 CSR report. November 2016 Acquired ISO 50001 energy management system certification. Awarded the Bronze Medal by the Taiwan Corporate Sustainability Award November 2016 in the catering category two years in a row as the only recipient from the food services industry.

- 7 - Time Summary Awarded second place in the 13th Top Service Awards from Next November 2016 Magazine. Awarded the Green Recycling Shop Award from the Environmental November 2016 Protection Department, New Taipei City Government. Re-opened the MOS burger Linsen store and launched the first MIT November 2016 self-service meal ordering machine in Taiwan. December 2016 Awarded the TCFA National Outstanding Store Manager Award. Awarded the New Taipei City public toilet golden award and environmental January 2017 self- maintenance outstanding stores award. Awarded the model corporation in promoting electric scooters from the February 2017 Industrial Development Bureau, Ministry of Economic Affairs. Ranked among the top 5% in the annual Corporate Governed Evaluation April 2017 system two years in a row. Awarded the Service Vanguard Award in the Taiwan Service Industry June 2017 Evaluation from Commercial Times. Entered into Taitung County to achieve the target of provision of service in June 2017 all of the counties and cities in Taiwan. Our Food Safety and Inspection Center was the only one in the industry June 2017 obtaining the FAPAS certification held by the British Central Science Laboratory. Awarded fifth place in the CSR Award in the Little Giant Group from August 2017 CommonWealth Magazine. Awarded the Excellent Class in the Food Service Industry from the Taipei October 2017 City Food Health Grading Plan. Awarded first place in the Food Service Industry in the Top Service Awards October 2017 from Next Magazine. Awarded the Silver award in the 10th TCSA Corporate Sustainability November 2017 Report three years in a row as the only recipient from the food services industry. November 2017 9 Branches Awarded in the New Taipei City Waste Reduction Evaluation. Implemented the Laboratory Biorisk Management System and received an November 2017 award. Awarded the First Award in the Society Innovation Product and Service December 2017 Procurement Award. December 2017 Awarded the TCFA National Outstanding Store Manager Award. December 2017 Passed AED Safety Place Certification. Ranked in the top 5% in the annual Corporate Governed Evaluation system April 2018 three years in a row. Signed a memorandum of understanding with the National Parks Division, April 2018 Construction and Planning Agency, Ministry of the Interior to jointly promote ecological environmental education, and the Gezhi Store was

- 8 - Time Summary opened near the entrance of Yangmin Mountain National Party as the first national park store. Received the Certificate of Appreciation from Hualien County Government April 2018 for “Charity Donations for the 0206 Earthquake”. Won the 5th TCFA “Service Ambassador Award” and “Outstanding Service April 2018 Personnel Award”. Trial implementation of the first “MOS Burger Meal Service Robot” April 2018 commenced at Minquan West Road Branch. The Food Safety and Inspection Center received honors for the first June 2018 fast-food chain store in Taiwan with the only inspection institution with dual certifications (TAF and TFDA). Won the “Gold Award” and “Service Vanguard Award” in the Taiwan July 2018 Service Industry Evaluation organized by Commercial Times. Ranked 4th in the small giant group of “CommonWealth Enterprise Citizen August 2018 Awards” to become the only enterprise receiving such award in the food industry and catering service industry in Taiwan in 2018. Received the certificate of appreciation for the “Armed Forces Day August 2018 Enterprise’s Respect to the Military” from the Ministry of Defense. Received the certificate of appreciation for complete disclosure of food August 2018 ingredient information at the “Taipei Food Ingredient Registration Platform”. Awarded the “Green Circulation Store Award” from the New Taipei City September 2018 government for 6 years consecutively and 8 stores in New Taipei City received the star for the award. Awarded 3rd place for the “Best Service Enterprise Award for Fast-food October 2018 Chain Stores” of the first prize service award from Apple Daily Magazine. Received three awards: the “Corporate Sustainability Report Golden Award”, “Comprehensive Performance Top 50 Award”, and “Supply Chain November 2018 Management Award” for the 11th term of the Taiwan Corporate Sustainability award from the Taiwan Institute for Sustainable Energy. Awarded the Excellent Class in the Food Service Industry from New Taipei November 2018 City Food Health Grading Plan. Obtained the Badge of Accredited Healthy Workplace - Promotion Label December 2018 from the Health Promotion Administration. Received the first place award for the “Buying Power Society Innovative December 2018 Product and Service Purchase Reward” from the Small and Medium Enterprise Administration, MOEA, for the 2nd consecutive year. Won the National Outstanding Store Manager Award from the Taiwan December 2018 Chain Stores and Franchise Association (TCFA) and voted Best Store Manager and Best Interview. December 2018 Qualified for the ISO 27001 information security management certification Released a Christmas celebration short video to promote 2nd-generation December 2018 MOS meal service robot.

- 9 - Time Summary Released a Chinese New Year celebration short video to promote February 2019 2nd-generation MOS meal service robot. Ranked in the top 5% in the annual Corporate Governed Evaluation system April 2019 four years in a row. Won Commercial Times' "2019 The Best Service in Taiwan" - Gold Medal June 2019 in the western fast food chain category Ranked 12th in CommonWealth Magazine's “Excellence in Corporate August 2019 Social Responsibility” - Medium Enterprise Awarded Excellent Class in the Food Service Industry from Yilan County September 2019 Food Health Grading Plan. Awarded Excellent Food Service Provider in Taichung City’s Autonomous October 2019 Health Management Program. Awarded Excellent Food Service Provider in the Food Health Grading October 2019 Program of Hsinchu County Public Health Bureau. “Ranked 2nd place in the Best Service Enterprise Award for Chain October 2019 Fast-food Stores” during the 16th Top Service Awards organized by Next Magazine. Awarded “Green Merchant” by the Department of Environmental November 2019 Protection for the 7th consecutive year (2019) Won the “Food Treasure Award” - a competition for waste reduction and November 2019 efficient use of food ingredients Awarded the Excellent Class in the Food Service Industry from Tainan City November 2019 Food Health Grading Plan. Won the “Corporate Sustainability Report Award - Gold”, “Overall November 2019 Performance Excellence Award”, and “Supply Chain Management Award” at the 12th TCSA. Awarded the Excellent Class in Food Service Industry Health Grading December 2019 Programs of Yunlin County, Chiayi County, Kaohsiung City and Changhua County. December 2019 Awarded the TCFA National Outstanding Store Manager Award. Won the Procurement Award in the "Buying Power - Social Innovative December 2019 Product and Service Procurement Incentive" scheme organized by the Ministry of Economic Affairs for the 3rd consecutive year (2019). Won the Best Practice Award organized by the Taipei City Employment December 2019 Service Office Ranked in the top 5% in the annual Corporate Governed Evaluation system April 2020 five years in a row.

- 10 - Three. CORPORATE GOVERNANCE REPORT April 5, 2020 I. Organization System Shareholders (I) Organization of the company Information of the members of the Board of Directors’ Meeting Remuneration Committee

Internal Audit Office Legal Affairs Section Chairperson

Business Planning Group Chairman's Office President’s Office President’s Office Customer Service Section 3Q Innovation Promotion Group

Overseas Support Section Public Relationship Group

Joint Procurement Quality Human Resources, Financial Management and Operation Center Assurance Support Center Engineering, and Marketing Store Development Center Technology Dept. Information Third Division Fifth Division Fourth Division First Division Second Division Management Dept. Operation Training Dept. Education and De Electronic Commerce De Human Resources De Product Development Marketing Dept. Equipment Dept. Engineering and Management Dept. Finance and Procurement Dept. Section Safety andHealth Dept. Dept. Store Development p p p t. t. t. t. t. Section Big Data Applications Production Section Agricultural Inspection Center Food Safety and Section Quality Assurance

- 11 - (II) Major Corporate Functions

Name of the department Business conducted by the department 1. Overall management of the Company’s internal control Internal Audit Office management system and scheduling of the annual audit plan. 2. Execution of routine audits for the Company. Chairman's Office 3Q Innovation Assists the Chairman in promoting projects and devising innovative Promotion Group business strategies. Overall Management of the business plan and execution, including Public Relationship but not limited to the whole Company brand and public relationship Group strategies. President’s Office 1. Overall management of the Company’s strategic business Business Planning planning. Group 2. Project execution and new business development. Legal Affairs Section Overall management of contract review and legal affairs. 1. Statistical analysis and feedback of customer service comments. Customer Service 2. Promoting the evaluation of service quality and dealing with Section customer complaints. Overseas Support Execution and support of overseas (China and Australia) business Section development. Joint Procurement Quality Assurance Support Center 1. Overall management of the Company’s information technology Information development and information safety. Technology Dept. 2. Promoting the planning and establishment of system automation. Electronic Commerce Overall management of the Company’s digital network marketing Dept. business advancement and maintenance. Overall management of purchasing and ordering, focusing on Procurement Dept. supplier management and cost controls. Safety and Health Overall management of employee health and workplace safety. Section Quality Assurance Providing and maintaining high-quality product assurance. Section 1. Coordinating the planning and execution of the sanitary inspection of the products in store and the monitoring of food safety. Food Safety and 2. Coordinating the laboratory management system and maintaining Inspection Center the ISO/IEC 17025, the certification of the international common standard. Big Data Applications Mines and analyzes corporate data, builds models and converts data Section into valuable commercial information for use by the department.

Agricultural Overall management of intelligent agricultural production and Production Section development

- 12 - Name of the department Business conducted by the department Operation Center Education and Overall management of planning and execution of the employee’s Training Dept. education, training, and development. 1. Analysis and execution of operational planning projects. Operation 2. Responsible for coordinating support between regional offices Management Dept. nationwide. Operation of Depts. 1 Responsible for offering guidance and support to regional branches. - 5 Financial Management and Store Development Center 1. Overall financial planning and fund management. 2. Planning and execution of cost management, accounting, and tax-related matters. Finance and 3. Execution of stock affairs and maintenance of investor relations. Management Dept. 4. Overall management of the Company’s assets. 5. Overall management of general affairs for headquarter and stores. 6. Overall management of the Company’s business analysis and budget control. Store development Establishment of coordinates and lease management for restaurant Dept. branches. Human Resources, Engineering, and Marketing Human Resources Overall management of human resources, organization regulations, Dept. employee benefits, and labor relations. Product Development Overall planning and development of main meals, snacks, beverages, Dept. and any related products. 1. Overall management of advertisement for the Company and products. Developing strategies for distribution and promotion. 2. The planning for marketing cooperation and sales development Marketing Dept. among different industries. 3. Building and maintaining the Company’s image and public relations. 1. Overall management and maintenance of shop decoration and construction modifications. 2. Overall management and development of branch equipment, Engineering and kitchenware supplies, and spare parts. Equipment Dept. 3. Manage the engineering planning and execution for new store development, existing store engineering works, water and electricity, as well as air conditioning works of the entire Company, as well as the fire safety confirmation and declaration.

- 13 -

II. Information about the Directors, Supervisors, President, Vice President, Senior Manager and Head of the Department and Branches (I) Information about Directors and Supervisors 1. Basic Information April 5, 2020 Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%)

Kuang Yuan Not PhD., Civil Engineering, Representative of the Corporate Director, Taiwan 2017.6.7 3 years 1990.11.16 8,925,807 27.56 8,925,807 27.56 0 0.00 0 0.00 University of Washington Pelican Express Co., Ltd. Industrial Co., Ltd. Applicable Professor, Graduate Chairman, AN-SHIN FOOD SERVICES Chairperson R.O.C. N/A N/A N/A N/A Representative: Institute of building and (SINGAPORE) PTE. LTD. Male 2017.6.7 3 years 2011.3.23 0 0.00 5,000 0.02 10,000 0.03 0 0.00 planning, National Taiwan Chairman, Xiamen An Shin Food Management Lin, Chien-Yuan University Co., Ltd.

General Manager of the Company Kuang Yuan Not Representative of the Corporate Director, Royal 2017.6.7 3 years 1990.11.16 8,925,807 27.56 8,925,807 27.56 0 0.00 0 0.00 Industrial Co., Ltd. Applicable Host Taiwan Co., Ltd. Representative of the Corporate Director, ABC Cooking Studio Taiwan Co., Ltd. Representative of the Corporate Director, Fujio Master’s Degree, Graduate Food System Taiwan Co., Ltd. Institute of Technology Representative of the Corporate Director, Foremost Management, Kaohsiung International Food & Beverage Co., Ltd. Polytechnic Institute Representative of the Corporate Director, Department of Industrial Director R.O.C. Jingloumen Food Co., Ltd. N/A N/A N/A N/A Engineering, Tunghai Representative: Representative of the Corporate Director, Eurasia University Male 2017.6.7 3 years 2014.6.6 82,740 0.26 80,142 0.25 0 0.00 0 0.00 Food Service Co., Ltd. Kao, Shun-Hsing Executive Vice President, Representative of the Corporate Director, MISS Royal Host Taiwan Co., CROISSANT FOOD CO., LTD. Ltd Representative of the Corporate Director, AN-SHIN FOOD SERVICES (SINGAPORE) PTE. LTD. Representative of the Corporate Director, Xiamen An Shin Food Management Co., Ltd. Supervisor, Kouraku Co., Ltd.

- 14 - Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%)

Kuang Yuan Not Representative of the Corporate Director, Tong Ho R.O.C. 2017.6.7 3 years 1990.11.16 8,925,807 27.56 8,925,807 27.56 0 0.00 0 0.00 Global Investment Co., Ltd. Industrial Co., Ltd. Applicable Representative of the Corporate Director, Tokwung Investment Co., Ltd. Chairman, Mingfu Co., Ltd. Representative of the Corporate Director, MOS Department of Psychology, Burger Australia Pty. Ltd. International Representative of the Corporate Director, Xiamen Christian University An Shin Food Management Co., Ltd. Huang, Bachelor's, Department of Representative of the Corporate Director, Royal Father and Director Supervisor Mao‐ N/A Psychology daughter Representative: Host Taiwan Co., Ltd. Hsiung Japan Female 2017.6.7 3 years 103.6.6 0 0.00 0 0.00 0 0 0 0.00 Chairman, ABC Cooking Chairman, ABC Cooking Studio Taiwan Co., Ltd. Shirley Huang Studio Taiwan Director of Fujio Food System Taiwan, Co., Ltd Co., Ltd. Representative of the Corporate Director, Kouraku Co., Ltd. Representative of the Corporate Director, Tanya Food Co., Ltd. Representative of the Corporate Director, Jingloumen Food Co., Ltd. Chairman, Mikousong Food Co., Ltd.

MOS Food Not Department of Economics, Vice President of the Company. 2017.6.7 3 years 1990.11.16 8,098,464 25.00 8,098,464 25.00 0 0.00 0 0.00 Faculty of Economics, Services, Inc. Applicable Representative of the Corporate Director, Xiamen Soka University Director Japan An Shin Food Management Co., Ltd. N/A N/A N/A N/A Department Manager of Representative: International Division, Representative of the Corporate Director, MOS Male 2017.6.7 3 years 1999.6.9 0 0.00 0 0.00 0 0.00 0 0.00 MOS Food Services, Inc. Akio Fukumitsu Burger Australia Pty. Ltd.

MOS Food Not Representative of the Corporate Director, Magic Tokyo Metropolitan 2017.6.7 3 years 1990.11.16 8,098,464 25.00 8,098,464 25.00 0 0.00 0 0.00 Food Co., Ltd. Services, Inc. Applicable Tsubasa Sogo Senior High Representative of the Corporate Director, MOS school Food Services HONG KONG LIMITED Director Japan MOS Food Services Inc. - N/A N/A N/A N/A Representative: Representative of the Corporate Director, PT. Head of Marketing and Male 2019.4.1 3 years 2019.4.1 0 0.00 0 0.00 0 0.00 0 0.00 MOG INDONESIA Hironobu Maehara Group Leader of Representative of the Corporate Director, Hong International Business Kong MOS Burger Investment Co., Limited

- 15 - Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%)

MOS Food Not Representative of the Corporate Director, MOS 2017.6.7 3 years 1990.11.16 8,098,464 25.00 8,098,464 25.00 0 0.00 0 0.00 BURGER AUSTRALIA PTY. LTD. Services, Inc. Applicable Representative of the Corporate Director, Corporate Representative Director, PT. MOG Department of Food INDONESIA. Economics, College of Representative of the Corporate Director, Bioresource Sciences, AN-SHIN FOOD SERVICES (SINGAPORE) Nihon University PTE. LTD. Department of Agriculture Chairman, Magic Food Industry Co., Ltd. and Veterinary Medicine, Representative of the Corporate Director, MOS Nihon University Foods Singapore Pte. Ltd. Director Japan Executive Officer of the Representative of the Corporate Director, MOS N/A N/A N/A N/A Representative: International Division and BURGER (THAILAND) Co.,LTD. Male 2017.6.7 3 years 2012.11.16 0 0.00 0 0.00 0 0.00 0 0.00 Jun Takifuka International Planning Representative of the Corporate Director, MOS Dept., MOS Food Services, BURGER KOREA CO., LTD Inc. Representative of the Corporate Director, Hong Executive Officer and Kong MOS Burger Investment Co., Limited Head of International Representative of the Corporate Director, Division Guangdong MOS Burger Management Ltd. Representative of the Corporate Director, MOS BURGER Philippines Inc. Representative of the Corporate Director, MOS Supply Philippines,Inc. PhD., Department of Economics, University of Pittsburgh Independent Director, Shin Kong Financial Consultant, Taishin Holding Co., Ltd. Financial Holding Co., Ltd. Independent Chairman and President, Independent Director, Tah Kong Chemical R.O.C. Li, Sheng‐Yan Male 2017.9.26 3 years 2011.3.23 0 0.00 0 0.00 0 0.00 0 0.00 N/A N/A N/A N/A Director The Export-Import Bank of Industrial Corporation, Ltd the Republic of China Independent Director, Shin Kong Commercial President, Bank of Taiwan Director General of Bank Co., Ltd. Department of Banking, Central Bank of the

- 16 - Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%) Republic of China (Taiwan) Director General of Department of Economic Research, Central Bank of the Republic of China (Taiwan)

PhD of Business Administration, Macau University of Science and Technology Collage of Business, Director, Digital Transformation Association Stanford University Independent Chairman, Innovative to Industry Co., Ltd. Deputy Chief Executive, R.O.C. Gong, Reng-Weng Male 2017.6.7 3 years 2017.6.7 0 0.00 0 0.00 0 0.00 0 0.00 Corporate Director Representative, Taiwan N/A N/A N/A N/A Director Institute for Information Depository & Clearing Corporation Industry Chairman, VAS Creative Co., Ltd. Administrator, Foreseeing Innovative New Digiservices Expert at the Institute for Information Industry

Master's Degree, Department of Management Science, National Chiao Tung Chairman, Taiwan Tourism Interchange

Independent University Association. R.O.C. Lai, Seh-Jen Female 2017.6.7 3 years 2017.6.7 0 0.00 0 0.00 0 0.00 0 0.00 Director-General, Tourism Honorable President, Taiwan Visitors Association N/A N/A N/A N/A Director Bureau Independent Director, Regent Hotels Group Co., Chairman, China Pacific Ltd. Catering Services President, Taiwan Visitors Association

Huang, Mao‐ Master's of Economics, Shirley Father and Supervisor R.O.C. Male 2017.6.7 3 years 1993.11.16 0 0.00 0 0.00 0 0.00 0 0.00 University of Note 2 Director N/A Hsiung Huang daughter Pennsylvania, Chairman of - 17 - Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%) TECO Electric and Machinery Co., Ltd., Chairman of Chinese National Association of Industry and Commerce

An Tai Enterprise Economic

Research, University of International Not 2017.6.7 3 years 1990.11.16 3,065,680 9.47 2,755,680 8.51 0 0.00 0 0.00 Cologne Investment Co., Applicable Department of German

Ltd. Language and Culture, Chinese Culture University

Secretary General, Chinese

National Association of Supervisor R.O.C. Director, Taiwan-German Exchange Association N/A N/A N/A N/A Industry and Commerce,

Taiwan Representative: Male 2017.6.7 3 years 2010.10.22 0 0.00 0 0.00 0 0.00 0 0.00 Consultant, Chief Secretary Fritz J. C. Jang of the Board of Directors,

TECO Electric and

Machinery Co., Ltd.

Consultant, Frankfurt

Office, Bank of Taiwan

President, Tien-Yeh Accounting Firm Visiting Professor, Department of Accounting, National Chung Hsing Master’s Degree, University Department of Accounting, Independent Director, O-Bank Co., Ltd. National Chengchi Independent Director, Uni-President Enterprises Supervisor R.O.C. Yue, Chao-Tang Male 2017.6.7 3 years 2011.3.23 0 0.00 0 0.00 0 0.00 0 0.00 N/A N/A N/A N/A University Co., Ltd. Chairman, Ernst & Young Independent Director, Johnson Health Tech Co., (EY) Ltd. Independent Director, Feng Hsin Steel Co., Ltd. Supervisor, Great Easter Resins Industrial Co., Ltd. Supervisor, Century Development Corporation - 18 - Other Chiefs, directors, or Shares Currently Held by a Notes Shares Registered Under supervisors that are spouses, or Shareholding when elected Current shareholding Spouse and/or Underaged Nationality the Name of a Third Party relatives within the second Date Term Date first Children Major Experience and Position(s) Held Concurrently in the Company ( 1) Job Title or registered Name Gender degree of kinship Elected (Years) elected Academic Degree and/or in any Other Comp any country Shareholdings Number Shareholdings Number Shareholdings Number Shareholdings Number percentage Job Title Name Relationship of Shares percentage (%) of Shares percentage (%) of Shares percentage (%) of Shares (%) Independent Non-Executive Director, Stella International Holdings Limited Director, Yong Chang International Co., Ltd. (Cayman Island) Note 1: In situations where the company's President or manager of the highest equivalent grade is the same person as or a spouse or first-degree relative of the Chairman, please explain the reasons, rationality, and necessity of such an arrangement and any response measures taken. Note 2: Concurrent positions: Chairman of Foremost International Food & Beverage Co., Ltd.、Chairman of Eurasia Food Service Co., Ltd.、Chairman of TAIAN Technology Sdn. Bhd.、Chairman of TECO ELEKTRIK TURKEY A.Ş. (TET)、Chairman of E‐JOY ELECTRONICS INTERNATIONAL CO., Ltd.,、Chairman of Tong-An Invesmtnet CO.,Ltd,、Chairman of Tong An Assets Management & Development Co., Ltd.,、Chairman of Antai International Investment Co., Ltd.,、Chairman of Teco International Investment Co.,、Chairman of Century Development Corporation,、Chairman of ROYAL HOST TAIWAN CO., Ltd.,、Chairman of An-Sheng Travel Co., Ltd.,、 Chairman of United Development Corporation、Chairman of Le-Li Co., Ltd.、Chairman of MCOM TECHNOLOGY CO., Ltd.,、Chairman of Century Biotech Development Corporation、Chairman of CDC Development India Private Limited、Chairman of MOS Burger Australia Pty Ltd、director of Nanchang TECO Electric & Machinery Co., Ltd.、director of Asia Innovative Technology (Xiamen) Co., Ltd.、director of Qingdao TECO Innovation Co., Ltd.、director of Teco-Westinghouse Motor Company (TWMC)、director of TECO Australia Pty Limited.(TAC)、director of TECMA INFORMATION SYSTEMS SDN. BHD.、director of Subic Bay Development &Management Corporation (SBDMC)、director of TEMICO International Pte. Ltd.、director of TEMICO India Private Limited、director of TECNOS INTERNATIONAL CONSULTING CO,;Ltd,、director of TAIWAN PELICAN EXPRESS CO., Ltd.,、director of TAIWAN HIGH SPEED RAIL CORPORATION,、director of MOMO.COM INC.、director of SHIN-ETSU HANDOTAI TAIWAN CO., LTD.、director of Inotec Taiwan Co., Ltd、director of MOS FOOD INDUSTRY CORP.,、Director of Fujio Food System Taiwan, co., Ltd、director of TECO Electric and Machinery Co., Ltd.,、director of Tecocapital Investment Co., Ltd、director of TECOCAPITAL INVESTMENT(SAMOA) Co., Ltd.、director of TECO Technology & Marketing Center、Supervisor , TUNG PEI INDUSTRIAL CO., LTD.、Supervisor , Jinglaoman Food&Beverage Co., Ltd.、. Supervisor , Tong Kuang Investment Co., Ltd.、Supervisor , MISS CROISSANT FOOD CO., LTD.、Supervisor , Kuang Yuang Enterprise Co.,Ltd、Supervisor , Xiamen An Shin Food Management Co., Ltd.、chairman of Sankyo Co., Ltd.(TEJ)

- 19 -

2. Major shareholders of corporate shareholders April 5, 2020 Name of major shareholders Major shareholders of the corporate shareholder Tung Kuang Investment Co., Ltd. (33.86%), Huang Lin, Ho-Huei (51.58%), Bright Lane Investment Limited Kuang Yuan Industrial Co., Ltd. (10.0%), Tong He Global Investment Co., Ltd. (0.74%), others (3.82%) Japan Trustee Services Bank Ltd. (7.52%), Kohbai Food Inc. (4.49%), Duskin Co., Ltd. (4.22%), Nitto Co., Ltd. (3.89%), Nippon Life Insurance Company (3.88%), MOS Food Services, Inc. Daido Life Insurance Company (2.53%), Yamazaki Baking Co., Ltd. (2.30%), The Master Trust Bank of Japan Ltd. (2.29%), MUFG Bank, Ltd. (1.99%), AIG General Insurance Company Ltd. (1.89%) An Tai International Investment TECO Electric and Machinery Co., Ltd. (100%) Co., Ltd.

3. Major shareholders of major corporate shareholders April 5, 2020 Name of the corporate entity Major shareholders of the corporate entity (Note 1) Kuang Yuan Industrial Co., Ltd. (39.28%), Huang Tung Kuang Investment Co., Lin, Ho-Huei (35.01%), Bright Lane Investment Ltd. Limited (12.73%), Tong He Global Investment Co., Ltd. (6.00%), others (6.98%) Bright Lane Investment Limited Teng, Mei-Ling (100.00%) Shirley Huang(25.89%), Wang Boyuan(20%), Tong He Global Investment Co., Kuang Yuan Industrial Co., Ltd. (19.5%), Huang, Ltd. Yuren (17.78%), others (30.0%) Japan Trustee Services Bank Sumitomo Mitsui Trust Holdings Inc. (66.66%), Ltd. Resona Bank Limited (33.33%) KB Trading Ltd. (32.2%), MOS Food Services Inc.,(22.2%), Yoshihiro Horiguchi (12.9%), Kohbai Food Inc. Masayoshi Horiguchi (12.96%), Toshiko Horiguchi (10.8%) The Master Trust Bank of Japan Ltd. (5.32%), Nippon Flour Mills Co., Ltd. (3.52%), Duskin Workers’ Shareholding Trust (3.20%), Japan Trustee Services Bank Ltd. (Trust Account)(3.02%), Hirokata Ogasawara (2.77%), Japan Trustee Services Duskin Co., Ltd. Bank Ltd. (Trust Account 9)(2.08%), Duskin FC Shareholding Trust (2.01%), Japan Trustee Services Bank Ltd. (Trust Account 5)(1.92%), Sumitomo Mitsui Banking Corporation (1.64%), MOS Food Services Inc. (1.48%) Toitsu Yano (52.2%), MOS Food Services Inc. Nitto Co., Ltd. (13.3%), Beniya Corporation (13.3%), Yuko Kudo (9.5%), Kumiko Yano (9.2%), Hisashi Sakai (2.5%)

- 20 - Name of the corporate entity Major shareholders of the corporate entity (Note 1) (The entity is a mutual company, hence no Nippon Life Insurance Company shareholder) Daido Life Insurance Company T&D Holdings Inc. (100%) Iijima Kousan (7.17%), The Tojuro Iijima Foundation for Food Science and Technology (5.74%), Nisshin Seifun Group Inc. (5.08%), Mitsubishi Corporation (4.53%), Sumitomo Corporation (4.30%), Marubeni Corporation Yamazaki Baking Co., Ltd. (3.75%), The Master Trust Bank of Japan Ltd. (Trust Account)(3.50%), Japan Trustee Services Bank Ltd. (Trust Account)(3.48%), Meiji Yasuda Life Insurance Company (2.99%), Mizuho Bank Ltd. (1.81%), Sumitomo Mitsui Banking Corporation (1.81%) MUFG Bank, Ltd. Mitsubishi UFJ Financial Group Inc. (100%) Mitsubishi UFJ Trust and Banking Corporation The Master Trust Bank of Japan (46.5%), Nippon Life Insurance Company (33.5%), Ltd. Meiji Yasuda Life Insurance Company (10.0%), The Norinchukin Trust & Banking Co., Ltd. (10.0%) AIG General Insurance Co., Ltd. AIG Japan Holdings Co., Ltd. (100.0%) PJ Asset Management Co., Ltd. (9.87%), Jiayuan Investment Co., Ltd. (6.46%), Bank of Taiwan in its Capacity as Master Custodian for International Value Equity Trust Account of Hill-Chester International Investors (3.96%), Standard Chartered Bank Business Department in Its Capacity as Master Custodian for Investment Account of WGI Emerging Markets Fund, LLC. (2.02%), Bank of Taiwan in its Capacity as Master Custodian for International Value TECO Electric and Machinery Equity Group Trust Account of Hill-Chester Co., Ltd. International Investors (1.99%), Tung Kuang Investment Co., Ltd. (1.63%), JP Morgan Chase Bank Taipei Branch in its Capacity as Master Custodian for PGIA Progress International ETF (1.61%), Chunghwa Post Co., Ltd. (1.60%), Citibank (Taiwan) in its Capacity as Master Custodian for Investment Account of Norges Bank (1.43%), JPMorgan Chase Bank Taipei Branch in its Capacity as Master Custodian for Vanguard Emerging Markets ETF (1.38%)

- 21 - 4. Director’s or supervisor’s professional qualifications and independent analysis April 5, 2020 Having more than 5 years work experience and professional qualifications Independent requirements (note) listed below Number of An instructor or above at A judge, public prosecutor, Have work companies a public/private attorney, CPA, or other experiences in the for adjunct university/college in the professional or technical area of commerce, Criteria independent area of commerce, law, specialist who has passed a law, finance, or directors of Name finance, accounting, or national examination and been accounting, or 1 2 3 4 5 6 7 8 9 10 11 12 other public relevant departments awarded a certificate in a otherwise offering necessary for the business profession necessary for the necessary for the companies of the company business of the Company business of the Company Kuang Yuan Industrial Co., Ltd.; representative:  －   －   －   －    － － Lin, Chien-Yuan Kuang Yuan Industrial Co., Ltd.; representative: － －  － －   －   －    － － Kao, Shun‐Hsing Kuang Yuan Industrial Co., Ltd.; representative: － －  － －  － －   －  －  － － Shirley Huang Magic-Food MOS Food Industry Corp.; － －  － －   －   －    － － representative: Akio Fukumitsu Magic-Food MOS Food Industry Corp.; － －  － －   －   －    － － representative: Hironobu Maehara Magic-Food MOS Food Industry Corp.; － －  － －   －   －    － － representative: Jun Takifuka 2 Li, Sheng‐Yan － －              companies Gong, Reng-Weng － －              － Lai, Seh-Jen － －              1 company Huang, Mao‐Hsiung  －   －  －    －  －   － An Tai International Investment Co., Ltd.; － －      －   －    － － representative: Fritz J. C. Jang 4 Yue, Chao-Tang     －           companies Note: A "" is placed in the box if the director or supervisor met the following conditions during active duty and two years prior to the date elected. (1) The member is not an employee of the company or any of its affiliates. (2) Not a director or supervisor of the company or any of its affiliated companies (this restriction does not apply to concurrent independent director positions in the company, its parent company, subsidiary, or another subsidiary of the parent that is compliant with the Act or local laws). (3) Does not hold more than 1% of the company's outstanding shares in their own names or under the name of spouse, underage children, or proxy shareholder, nor is a

- 22 - top-10 natural-person shareholder of the company. (4) Not a manager listed in (1), or a spouse, 2nd-degree relative or closer, or 3rd-degree direct relative or closer to any personnel listed in (2) or (3). (5) Not a director, supervisor, or employee of any corporate shareholder that: 1. holds 5% or more of the company's outstanding shares; 2. is a top-5 shareholder; or 3. appoints a director/supervisor representative in the company according to Paragraph 1 or 2, Article 27 of The Company Act. (This excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act or local laws). (6) Not a director, supervisor, or employee of any other company that controls a directorship in the company or where more than half of the total voting rights are controlled by a single party (this excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act or local laws). (7) Does not assume concurrent duty and is not a spouse to the Company's Chairman, President, or equivalent role, and is not a director, supervisor, or employee of another company or institution. (This excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act or local laws). (8) Not a director, supervisor, manager, or shareholder with more than 5% ownership interest in any company or institution that has a financial or business relationship with the Company (however, this excludes concurrent independent director positions held within companies or institutions that hold more than 20% but less than 50% outstanding shares of the Company, or in the Company's parent or subsidiary, or in another subsidiary of the parent that is compliant with the Act or local laws). (9) Not a professional who provides audit services, or commercial, legal, financial, accounting, or related services for an accumulated sum of less than NT$500,000 in the last 2 years, to the Company or its affiliate, nor is an owner, partner, director, supervisor, or manager, or the spouse of any of the above, of a sole proprietorship, partnership, company, or organization that provides the above service to the Company or its affiliated companies. This excludes roles as Remuneration Committee, Public Acquisition Review Committee, or M&A Special Committee member appointed in accordance with the Securities and Exchange Act or Business Mergers and Acquisitions Act. (10) Not a spouse or relative of the second degree or closer to any other directors. (11) Does not meet any of the conditions stated in Article 30 of The Company Act. (12) Not elected as a government or corporate representative according to Article 27 of The Company Act.

(II) Information of the President, Vice President, Associate Vice President, Supervisors of Departments and Branches: April 5, 2020 Shares Registered Under Manager-related spouse or Shares held by spouse Shares the Name of a Third within the second degree of and underage children Party kinship Job Title Nationality Name Gender Date Elected Sharehol Sharehold Shareholdi Main experience (educational background) Current concurrent company/post Notes Number of dings Number of ings Number of ngs Job Title Name Relationship Shares percentag Shares percentag Shares percentage e (%) e (%) (%) Representative of the Corporate Director, Royal Host Taiwan Co., Ltd. Representative of the Corporate Director, ABC Cooking Studio Taiwan Co., Ltd. Representative of the Corporate Director, Fujio Food System Taiwan Co., Master’s Degree, Graduate Institute of Technology Ltd. Management, Kaohsiung Polytechnic Institute Representative of the Corporate Director, Foremost International Food & President’s Kao, Shun‐ R.O.C. Male 2014.2.20 80,142 0.25 0 0.00 0 0.00 N/A N/A N/A N/A Office Hsing Department of Industrial Engineering, Tunghai Beverage Co., Ltd. University Representative of the Corporate Director, Jingloumen Food Co., Ltd. Executive Vice President, Royal Host Taiwan Co., Ltd Representative of the Corporate Director, Eurasia Food Service Co., Ltd. Representative of the Corporate Director, MISS CROISSANT FOOD CO., LTD. Representative of the Corporate Director, AN-SHIN FOOD SERVICES (SINGAPORE) PTE. LTD.

- 23 - Shares Registered Under Manager-related spouse or Shares held by spouse Shares the Name of a Third within the second degree of and underage children Party kinship Job Title Nationality Name Gender Date Elected Sharehol Sharehold Shareholdi Main experience (educational background) Current concurrent company/post Notes Number of dings Number of ings Number of ngs Job Title Name Relationship Shares percentag Shares percentag Shares percentage e (%) e (%) (%) Representative of the Corporate Director, Xiamen An Shin Food Management Co., Ltd. Supervisor, Kouraku Co., Ltd.

Department of Economics, Soka University Not Vice Akio Representative of the Corporate Director, MOS FOOD XIAMEN LIMITED Japan Male 2018.4.1 0 0.00 0 0.00 0 0.00 N/A N/A N/A Applic President Fukumitsu Department Manager of International Division, MOS Representative of the Corporate Director, MOS Burger Australia Pty. Ltd. able Food Services, Inc. Representative of the Corporate Director/President, E-joy International Co.,

Ltd. Doctoral Program, Institute of Industrial Engineering, Chairman, Teco Appliance (HK) Co., Ltd. National Taiwan University Cooperate Director Representative, Asia Air Tech Industrial PTE. Master of Big Data, Soochow University LTD.(AAT) Special Master in Finance, George Washington University Not Ho, MOS Burger Australia Pty Ltd. Managing Director Assistant to R.O.C. Male 2014.2.20 536 0.00 0 0.00 0 0.00 N/A N/A N/A Applic Chi-Yin Bachelor's, Department of Accounting, National Taiwan the Chairman E joy Australia Pty Ltd. Managing Director able University Representative of the Corporate Director, FujiAtetsu Multimedia Inc. Director, Marketing and Sales Division, Teco Electric Representative of the Corporate Director, Ya Che International and Machinery Co., Ltd. Development Co., Ltd. Assistant Vice President, General Management Representative of the Corporate Director/President, Blue Pacific Division, Tsann Kuen Enterprise Co., Ltd. International Co., Ltd.

Accounting, Bachelor's, Department of Accounting, Soochow Representative of the Corporate Director Financial, Supervisor, Royal Host Taiwan Co., Ltd. Corporate University Not Shih, Governance R.O.C. Male 2011.7.1 6,061 0.02 0 0.00 0 0.00 N/A N/A N/A Applic Chi-Yin Team Leader, PricewaterhouseCoopers Taiwan Supervisor, Tong Ho Global Investment Co., Ltd. Officer/Assis able tant Vice Manager, Accounting Department, Cheng Uei Precision Representative of the Corporate Director, Teco International Investment Co. President Industry Co., Ltd. Supervisor, ABC Cooking Studio Taiwan Co., Ltd.

Department of Finance and Taxation, National Chengchi Not Internal Chen, R.O.C. Male 2016.4.20 1,000 0.00 0 0.00 0 0.00 N/A N/A N/A Applic Audit Officer Hung-Tao University N/A able Internal Audit Supervisor, E & E Recycling Co., Ltd. Note: In situations where the company's President or manager of the highest equivalent grade is the same person as or a spouse or first-degree relative of the Chairman, please explain the reasons, rationality, and necessity of such an arrangement and any response measures taken.

- 24 - III. Remuneration paid to directors, supervisors, vice president, and assistant vice presidents for the most recent fiscal year (I) 2019 director compensation Remuneration of Directors (including Independent Directors)

Unit: In Thousands of NTD; Shares; % Remuneration of directors Percentage of the Relevant compensation received by adjunct employees Compens Total of aggregate amount ation Salary, bonuses, A+B+C+D+E+F Expenses for the of A, B, C, and D from the Remuneration Paid Retirement Remuneration of and special Pension (F) +G as a % of Net Execution of among net income Employees’ remuneration (G) parent (A) Pension (B) directors (C) disbursement (Note 2) Income Business (D) after tax (%) company Serial (E) or Job Title Name From All The Company The Company The Company The Company The Company The Company The Company No. The Company business From From All From All From All From All Consolidated investme From All From All From All The Company All Consolida Consolid Consolid Consolida Entities nts other Consolidat Consolidate Consolidate Consolid ted ated ated ted than ed Entities d Entities d Entities ated Entities Entities Entities Entities Cash Stock Cash Stock subsidiari Entities amount amount amount amount es Kuang Yuan Industrial Co., Ltd. 1 Chairperson Representative: Lin, Chien-Yuan Kuang Yuan Industrial Co., Ltd. 2 Director Representative: Kao, Shun-Hsing Kuang Yuan Industrial Co., Ltd. 3 Director Representative: Shirley Huang Representative of MOS Food 4 Director Services, Inc: Jun Takifuka

Representative of MOS Food 5 Director Services, Inc: Akio Fukumitsu 8,736 8,736 - - 7,175 7,175 973 973 10.43 10.43 5,007 5,007 108 108 366 - 366 - 13.81 13.81 N/A Magic-Food MOS Food Industry 6 Director Corp.; representative: Hironobu Maehara (Note 1) Representative of MOS Food 7 Director Services, Inc: Yoshinori Ando (Note 1) Independent 8 Director Gong, Reng-Weng Independent 9 Director Lai, Seh-Jen Independent 10 Director Li, Sheng‐Yan Note 1: Corporate director Magic-Food MOS Food Industry Corp., formerly appointed Mr. Yoshinori Ando as its representative, and reappointed Mr. Hironobu Maehara as its representative instead since April 1, 2019. Note 2: No directors retired in 2019, and this field refers to the amount of pension provision or contribution expensed.

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Range of Remunerations Name of Directors Aggregate amount of the preceding Aggregate amount of the preceding four Intervals of remuneration paid to each of seven remuneration items remuneration items (A+B+C+D) the Company’s directors (A+B+C+D+E+F+G) All companies in the All companies in the The Company The Company financial report H financial report I Less than NTD 1,000,000 NTD 1,000,000 (included)～NTD 2、3、4、5、6、7、8、9、10 2、3、4、5、6、7、8、9、10 2,000,000 (not included) NTD 2,000,000 (included)～NTD － － － － 3,500,000 (not included) NTD 3,500,000 (included)～NTD － － － － 5,000,000 (not included) NTD 5,000,000 (included)～NTD 1 1 10,000,000 (not included) NTD 10,000,000 (included)～NTD － － － － 15,000,000 (not included) NTD 15,000,000 (included)～NTD － － － － 30,000,000 (not included) NTD 30,000,000 (included)～NTD － － － － 50,000,000 (not included) NTD 50,000,000 (included)～NTD － － － － 100,000,000 (not included) More than NTD 100,000,000 － － － － Total 10 10 10 10

Note: Directors are presented in serial numbers *The nature of remuneration disclosed above is different from income defined by the Income Tax Act. Therefore, the chart is only intended to be used for disclosure of information and shall not be used for the purpose of taxation.

- 26 - (II) 2019 supervisor compensation Remuneration Paid to Supervisors Unit: in NTD in thousands Supervisors’ remuneration A、 Sum of A, B, and C as Compensation a percentage of net from the Remuneration Paid Fees for conducting parent (A) Dividends (B) his/her business (C) income (%) Job Title Name company or From All From All From All From All business The Consolidated The Consolidated The Consolidated The Consolidated investments Company Entities Company Entities Company Entities Company Entities other than subsidiaries Supervisor Huang, Mao‐Hsiung An Tai International Investment Co., Ltd. Supervisor Representative: Fritz J. C. 2,436 2,436 1,025 1,025 437 437 2.41 2.41 N/A Jang Supervisor Yue, Chao-Tang

Range of Remunerations Name of Supervisors Intervals of remuneration paid to the Aggregate amount of the preceding three remuneration items Company’s each Supervisor (A+B+C) The Company From All Consolidated Entities Less than NTD 1,000,000 － － NTD 1,000,000 (included)～ NTD 2,000,000 Huang, Mao‐Hsiung, Yue, Chao-Tang, An Tai International Investment Co., Ltd.; representative: Fritz (not included) J. C. Jang NTD 2,000,000 (included)～NTD 3,500,000 － － (not included) NTD 3,500,000 (included)～NTD 5,000,000 － － (not included) NTD 5,000,000 (included)～NTD 10,000,000 － － (not included)

- 27 - Name of Supervisors Intervals of remuneration paid to the Aggregate amount of the preceding three remuneration items Company’s each Supervisor (A+B+C) The Company From All Consolidated Entities NTD 10,000,000 (included)～NTD 15,000,000 － － (not included) NTD 15,000,000 (included)～NTD 30,000,000 － － (not included) NTD 30,000,000 (included)～NTD 50,000,000 － － (not included) NTD 50,000,000 (included)～NTD － － 100,000,000 (not included) More than NTD 100,000,000 － － Total 3 3

- 28 - 3. 2019 compensation to the General Manager and vice presidents Remuneration paid to the President and Vice President Unit: in NTD in thousands Compen sation from the parent Percentage of the company aggregate amount Salary Retirement Pension Bonuses and allowances Employee dividends or of A, B, C, and D (A) (B) (Note 3) (C) (D) business among net income investme after tax (%) Job Title Name nts other than subsidiar ies From All Consolidated From All From All From All From All The Company The The The Entities The Consolid Consolidate Consolidated Consolidated Company Company Company Cash Stock Stock Company ated d Entities Entities Entities Cash amount amount amount amount Entities President’s Kao, Shun‐ Office Hsing 4,035 4,035 108 108 972 972 366 - 366 - 3.38 3.38 N/A Akio Vice President Fukumitsu Note: No directors retired in 2019, and this field refers to the amount of pension provision or contribution expensed.

Range of Remunerations Range of Remunerations to each President and Vice Name of President and Vice President President of the Company The Company All companies in the financial report E Less than NTD 1,000,000 － － NTD 1,000,000 (included)～NTD 2,000,000 (not Akio Fukumitsu included) NTD 2,000,000 (included)～NTD 3,500,000 (not Kao, Shun‐Hsing included) NTD 3,500,000 (included)～NTD 5,000,000 (not － －

- 29 - included) NTD 5,000,000 (included)～NTD 10,000,000 (not － － included) NTD 10,000,000 (included)～NTD 15,000,000 (not － － included) NTD 15,000,000 (included)～NTD 30,000,000 (not － － included) NTD 30,000,000 (included)～NTD 50,000,000 (not － － included) NTD 50,000,000 (included)～NTD 100,000,000 (not － － included) More than NTD 100,000,000 － － Total 2 2

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(IV) Managers entitled to 2019 employee remuneration and amount entitled Unit: in NTD in thousands Percentage of the Amount Stock aggregate amount Job Title Name paid in Total amount among after-tax cash earnings (%) President Kao, Shun‐Hsing Special Assistant to the Managerial Officer Ho, Chi-Yin Chairman Accounting Officer, Financial Officer, Corporate - 861 861 0.53 Governance Shih, Chi-Yin Officer/Assistant Vice President Internal Audit Officer Chen, Hung-Tao

(V) The following contents compare and describe, respectively, the analysis of the percentage of the aggregate amount of remuneration paid by the Company and all the companies in the consolidated financial statements to the Company’s directors, supervisors, president, and vice president among the net income after tax in the individual financial report in the most recent two years, and describe the policies, standards, and composition of remuneration payment, procedures to determine the remuneration and the connection between the remuneration payment and the Company’s performance and future risks.

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(1) The percentage of the aggregate amount of remuneration paid by the Company and all the companies in the consolidated financial statements to the Company’s directors, supervisors, president, and vice president among the net income after tax in the standalone financial report in the most recent two years. Unit: NTD thousands

N o 2019 2018 t Consolidated Consolidated e Item The The Financial Financial : Company Company T Statements Statements Total remunerationh amount of directors 16,884 16,884 16,858 16,858 e Total remuneration of directors as a percentage 10.43 10.43 11.99 11.99 of the netc income after tax (%) Total remunerationo amount of supervisors n 3,898 3,898 3,863 3,863 Total remunerations of supervisors as a 2.41 2.41 2.75 2.75 percentageo of the net income after tax (%) l Total remunerationi amount of president and vice 5,481 5,481 5,655 5,655 presidentd Total remunerationa of presidents and vice t presidentse 3.38 3.38 4.02 4.02 as a percentaged of the net income after tax (%) )

net income after tax is defined as the net income attributed to the parent company.

(2) The policies, standards, and composition of remuneration payment, procedures to determine the remuneration, and the connection between the remuneration payment and the Company’s performance and future risks ①Directors and Supervisors: The Company’s remuneration paid to the Directors and Supervisors includes their salary, fees for conducting business, and bonuses. The Company’s Articles of Incorporation authorize the Board of Directors to determine such salary and fees for conducting business based on the responsibilities that they assume, their performance in the Company, and with reference to the standards generally adopted by other enterprises in the same industry. The rules for determination of remuneration of the directors and supervisors are referred to in the operating results and the directors’ performance evaluation and set forth in Article 20 of the Articles of Incorporation of the Company, and if the Company has

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annual earnings, 5% of which shall be paid to the directors and supervisors as remuneration. The performance evaluation and rationality of remuneration have been reviewed by the remuneration committee and the Board, and the remuneration system is reviewed from time to time depending on the actual operating conditions to achieve a balance between sustainability and risk control.

②President and Vice President: The remuneration of the president and vice president includes their salary, pension, and bonuses, and employee dividends are based on their positions, the responsibilities they assumed, their contribution to the Company, and operating results of the Company, and with reference to the standards generally adopted by other enterprises in the same industry. The performance evaluation and rationality of remuneration have been reviewed by the remuneration committee and the Board, and the remuneration system is reviewed from time to time depending on the actual operating conditions to achieve a balance between sustainability and risk control.

IV. Implementation of corporate governance (I) Operations of the Board of Directors

The Board of Directors’ meetings were held 6 times in the year (2019), in which the attendance

of the directors (including independent directors) were as follows: Number of Number of Percentage of Job Title Name attendance attendance attendance in Notes in person by proxy person (%) Kuang Yuan Industrial Co., Ltd. Chairperson 6 0 100 Representative: Lin, Chien-Yuan Kuang Yuan Industrial Co., Ltd. Director 6 0 100 Representative: Kao, Shun-Hsing Kuang Yuan Industrial Co., Ltd. Director 6 0 100 Representative: Shirley Huang MOS Food Services, Inc. Director 6 0 100 Representative: Akio Fukumitsu MOS Food Services, Inc. Corporate director Director Representative: Yoshinori Ando 1 0 100 representative re-appointed on 2019/4/1

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MOS Food Services, Inc. Corporate director Director Representative: Hironobu 5 0 100 representative re-appointed Maehara on 2019/4/1 MOS Food Services, Inc. Director 6 0 100 Representative: Jun Takifuka Independent Gong, Reng-Weng 6 0 100 Director Independent Lai, Seh-Jen 5 1 83 Director Independent Li, Sheng‐Yan 6 0 100 Director Other matters legally required to be specified: I. One of the following items should be specified: the date and term of the Board of Directors’ meeting, content of the proposals, all independent directors’ opinions, and the Company’s response to such opinions: (1) Conditions described in Article 14-3 of the Securities and Exchange Act: All motions were passed with the support of all independent directors. (2) Except for the aforementioned matters, other matters adopted at the Board of Directors’ meeting which the independent director(s) disapproved or held in reserve opinions thereto and such disapproval or reserved opinions are recorded or stated in a written statement: N/A. II. Recusal of Directors due to conflict of interests in certain proposals (the following items should be specified: name of the director, content of the proposal, reason for the recusal and participation in the voting): 1. Motion: Discussion of the Chairman's performance and salary package. Name of the director: Mr. Lin, Chien-Yuan. Reason for the recusal: interested in this proposal. Voting participation: (1) Chairman Lin, Chien-Yuan, a stakeholder of this motion, had recused themselves from the resolution according to policy, and Independent Director Lai, Seh-Jen, the convener of the Remuneration Committee, was appointed acting chairperson for this motion. (2) Following recusal of the abovementioned stakeholder, the acting chairperson chaired the discussion and obtained support from other attending directors to exclude all independent directors and natural-person supervisors receiving fixed compensation from profit sharing. Furthermore, both the Chairman’s performance and remuneration as director/supervisor shall be taken into consideration, and a credit of 3 points for the chairman, 1.5 points for non-independent directors, and 1.5 points for supervisors is to be applied. This motion was passed as proposed. 2. Motion: Allocation of 2018 director and supervisor remuneration. Concerned parties: Directors Lin, Chien-Yuan, Jun Takifuka, Hironobu Maehara, Akio Fukumitsu, Kao, Shun‐ Hsing, Shirley Huang and Huang, and Supervisors Mao‐Hsiung and Fritz J. C. Jang. Reason for the recusal: interested in this proposal. Voting participation: (1) Following recusal of the abovementioned stakeholder, Chairman Lin, Chien-Yuan

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appointed Independent Director Lai, Seh-Jen, the convener of the Remuneration Committee, to serve as acting chairperson for this motion. (2) This motion was passed as proposed without objection from remaining directors when inquired about by the acting chairperson. 3. Motion: Allocation of 2018 employee remuneration for managers. Concerned parties: Directors Akio Fukumitsu and Kao, Shun‐Hsing. Reason for the recusal: interested in this proposal. Outcome of the vote: Except for stakeholders that had recused themselves from resolution, the motion was passed as proposed without objection from the remaining directors when inquired about by the chairperson. 4. Motion: Proposal to remove restrictions imposed against the Company's directors for involving themselves in competing businesses. Parties concerned: Directors Jun Takifuka, Hironobu Maehara, Akio Fukumitsu, Kao, Shun‐Hsing and Shirley Huang. Reason for the recusal: interested in this proposal. Outcome of the vote: Except for stakeholders that had recused themselves from resolution, the motion was passed as proposed without objection from the remaining directors when inquired about by the chairperson. 5. Motion: Proposal to remove restrictions imposed against the Company's managers for involving themselves in competing businesses. Concerned parties: Directors Kao, Shun‐Hsing and Akio Fukumitsu. Reason for the recusal: interested in this proposal. Outcome of the vote: Except for stakeholders that had recused themselves from resolution, the motion was passed as proposed without objection from the remaining directors when inquired about by the chairperson. 6. Motion: Lending to MOS BURGER AUSTRALIA PTY. LTD. Parties concerned: Directors Jun Takifuka, Akio Fukumitsu and Shirley Huang, and Supervisor Huang, Mao‐ Hsiung. Reason for the recusal: interested in this proposal. Outcome of the vote: Except for stakeholders that had recused themselves from the resolution, the motion was passed as proposed without objection from the remaining directors when inquired about by the chairperson. III. Cycle, duration, scope, method, and detail of the board performance self-evaluation, and overall execution: Assessment cycle Assessment Scope of Assessment Assessment details duration assessment method

To be assessed at Covers the Board  For board and functional the end of each performance internal committees: assessment covers 53 year according to 2019 of the board as self-assessme indicators in 5 main aspects: the prevailing a whole, the nt and 1. Level of participation in the policy. individual director Company's operations,

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directors and self-assessme 2. Improvement of board's functional nt. decision quality, committees 3. Composition of the Board of Directors, 4. Election and ongoing education of directors, 5. Internal control. The assessment found the subjects having significantly exceeded standards  Performance assessment for individual directors covers 24 indicators in 6 main aspects: 1. Comprehension of the Company's targets and missions, 2. Directors' duty awareness, 3. Level of participation in the Company's operations, 4. Management and communication of internal relations, 5. Professionalism and ongoing education of directors, 6. Internal control. The assessment found the subjects having significantly exceeded standards

IV. Assessment of the goal and implementation of enhancing the Board of Directors’ duties and responsibilities in the current year and the prior year:Enhancements to the functionality of the board of directors in the current and the most recent year (e.g. establishment of an Audit Committee, improvement of information transparency etc), and the progress of such enhancements: 1. The Company will assemble an Audit Committee to replace supervisors in 2020. 2. The Company arranges a multitude of courses (including Japanese-based teaching for Japanese directors) to accommodate the needs and expertise of its directors and supervisors. These courses have been designed to provide directors and supervisors with the latest information and regulatory updates, which in turn supports their values, professional advantages, and capacity for the duties assigned. V. Communication between Independent Directors, internal audit officers, and the CPA: 1. Independent directors have direct channels to communicate with internal audit officers, and CPAs, review the conditions of the financials and business of the Company regularly, and communicate directly with the management and governance department.

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2. In addition to the receipt of monthly internal audit reports and the provision of monthly feedback by independent directors, internal audit officers submit business reports solely or hold a meeting to discuss the amendment of rules for internal auditing under the requirements of independent directors. In 2019, a total of 4 audit meetings were convened to sufficiently understand the operating status and audited status of the Company. Furthermore, the internal audit officer also presents an internal audit report at each quarterly meetings of the Board of Directors (including in the rehearsal meeting), so that the internal audit implementation and its performance are well communicated. 3. Upon completion of the audit/review of the financial reports of the Company by the CPAs, a total of 2 meetings (Communication between the CPA * Governance Department) were convened in 2019 to report the audit/review results, other requirements from the relevant laws, and brief the audit reports from new accountants and critical audit issues. VI. Communication between independent directors and the management of the Company: The Company has established the “Human Resources Committee”, “Procurement Committee”, “Review of Opening Stores Committee”, “Management Committee”, “CSR Committee”, “Financial Management Committee”, and “Smart Tech Committee”, and independent directors attended such committees to provide opinions, and reported the operations of such functional committees in each meetings of the Board of Directors.

VII. The details of attendance of the independent directors in each Board meeting in 2019 is as follows: Term The 10th The 10th The 10th The 10th The 10th The 10th board board board board board board The 17th The 12th The 13th The 14th The 15th The 16th meeting

meeting meeting meeting meeting meeting (2019/12/20)

Name (2019/2/26) (2019/4/24) (2019/6/5) (2019/8/8) (2019/11/13)

Number of Attendance in Attendance in Attendance in Attendance in Attendance in Lai, Seh-Jen attendance by person person person person person proxy

Gong, Attendance in Attendance in Attendance in Attendance in Attendance in Attendance in Reng-Weng person person person person person person

Attendance in Attendance in Attendance in Attendance in Attendance in Attendance in Li, Sheng‐Yan person person person person person person

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(III) Operating status of the Supervisors’ participation in the Board of Directors’ meeting The Board of Directors’ meeting has been called 6 times in the most recent year (2019), in which the attendance of the supervisors is as follows: Number of Attendance Job Title Name Notes attendance Rate (%) Supervisor Huang, Mao‐Hsiung 6 100 An Tai International Investment Co., Ltd. Supervisor 6 100 Representative: Fritz J. C. Jang Supervisor Yue, Chao-Tang 6 100 Other matters legally required to be specified: I. Formation and duties of Supervisors: The supervisors of the Company are elected at the general meeting of shareholders, pursuant to the Company Act, to supervise the execution of business. 1. Communications between the Supervisors and the Company’s employees and shareholders: The Communication between the supervisors and the Company’s employees and shareholders is good and effective. The Company has established the supervisor’s email address: [email protected], and the supervisors also participate in the annual general meeting of shareholders and answer questions raised by the Company’s shareholders directly. 2. Communication between the supervisors and internal audit officers and the CPA: The supervisors understand and provide feedback about the status of the Company’s operations and internal audits through the quarterly internal audit report provided by the internal audit department. A total of 4 audit meetings were convened in 2019 to sufficiently understand the operation status and audit status of the Company. In addition, the internal audit officers present an internal audit report in specific meetings demanded by the supervisors and at each meeting of the Board of Directors (including in the rehearsal meeting), so that the internal audit implementation and its performance are well understood and communicated. 3. Upon completion of audit/review of the financial report of the Company by the CPAs, a total of 2 meetings (Communication between the CPA and Governance Department) were convened in 2019 and the main content of such meetings included: report of the audit/review results, other requirements from the relevant laws and brief of the audit report of the new accountant and critical audit issue. II. In the event that the Supervisors stated their opinions in the Board of Directors’ meeting, the following information shall be specified: date and term of the meeting, content of the proposal, results of the voting and how the Company deals with the supervisors’ opinions: N/A III. The Company has established the “Human Resources Committee”, “Procurement Committee”, “Review of Opening Stores Committee”, “Management Committee”, “CSR Committee”, and “Financial Management Committee”, and supervisors attended such committee to provide opinions and reported such functional committees in the meetings of the Board of Directors.

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(III) The Company’s operating status of corporate governance and the discrepancy with “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and the reasons Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons I. Has the Company enacted and disclosed the  The Company has enacted its “Corporate Governance Best Practice No deviation was corporate governance best practice principles in Principles” in accordance with the “Corporate Governance Best found. accordance with “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and Practice Principles for TWSE/TPEx Listed disclosed such rules on MOPS and the Company’s website. Companies?” (Following the introduction of the Audit Committee, the Board of Directors passed a set of Corporate Governance Best Practice Principles on February 20, 2020 to support the committee’s function.) II. Shareholding structure and shareholders’ rights (I) Has the Company enacted the internal  (I) In addition to the appointment of professional securities No deviation was operating procedures to respond to agents for relevant matters, the Company has enacted an found. shareholders’ suggestions, questions, disputes, operation management of securities matters, and well and litigations, and has the Company established the position of spokesperson for handling implemented such procedures accordingly? shareholder matters. (II) Does the Company have a list of the major  (II) The Company files changes of directors, officers, and major No deviation was shareholders and the ultimate beneficiaries of shareholders’ (the shareholders holding more than 10% of the found. major shareholders who are actually Company’s total issued and outstanding shares) shareholding controlling the Company? in a monthly basis pursuant to Article 25 of the Security Exchange Act, and the list of ultimate beneficiaries of major shareholders are under control as well. - 39 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons (III) Has the Company established and  (III) The Company has enacted its “Rules Governing Financial No deviation was implemented the risk control and fire wall and Business Matters Between this Corporation and its found. mechanism between the Company and its Affiliated Enterprises”, pursuant to the “Regulations affiliates? Governing Establishment of Internal Control Systems by Public Companies” and with which the Company has implemented the risk control and fire wall mechanism with its subsidiaries. (IV) Has the Company enacted internal rules to  (IV) In order to prohibit insiders in the Company from engaging in No deviation was prevent its insiders from using information that transactions with the Company’s securities, the Company has found. is unknown to the market to buy or sell its enacted its “Procedures for the prevention of Insider Trading” securities? and “Procedures for Handling Material Inside Information”.

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons III. Organization and duties of the Board of Directors (I) Has the Board of Directors enacted diversified  (I) The Company has enacted the diversity guidelines of the No deviation was guidelines regarding the organization of its members of the Board of Directors pursuant to the “Corporate found. members and implemented such guidelines Governance Best‐Practice Principles for the TSEC/TPEx accordingly? Listed Companies”, which determines the operating status, marketing strategy, the demand of development, and the professional knowledge with which the Company implemented it. In the 10th Board of Directors, there are two female directors (including one independent director) and four Japanese directors, experienced in business management, operating business, industry, crisis handling and leadership. The decision makers include Chairman Lin, Chien-Yuan, Director Kao, Shun‐Hsing, Director Shirley Huang, including Director Jun Takifuka with an international market perspective, Director Akio Fukumitsu, Director Hironobu Maehara, Independent Director Li, Sheng‐Yan experienced in the financial industry and once acted as the President of the Bank of Taiwan, Independent Director Gong, Reng-Weng once acted as the Vice President of the Institute for Information Industry and is - 41 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons experienced in IT and innovative technology, Independent Director Lai, Seh-Jen also once acted as the Director General of the Tourism Bureau with exceptional experience in catering and tourism. All members of the Board of Directors are elites in different industries and business operations. All members of the Board of Directors have backgrounds in industries, academic fields, and diverse knowledge, such that they are able to provide expert opinions in different aspects, in order to facilitate and improve the business management operation of the Company. The number of directors of the Company equipped with an employee identity accounts for 22% of all directors, and the number of independent directors’ accounts for 33% of all directors, and the number of female directors (including independent directors) accounts for 22% of all directors. 2 independent directors have a term of office under 3 years, 1 independent director has a term of office under 9 years. 1 director is above 70 years old, and 3 directors are between 60~69 years old, with 5 directors under the age of 60 years old. - 42 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons (II) In addition to the establishment of the  (II) In addition to the establishment of the remuneration No deviation was Remuneration Committee and the Audit committee in the 4th meeting of the Company’s Board of found. Committee in accordance with the laws, does Directors’ on its 8th term on August 11, 2011, the Company the Company also establish other types of has set up various functional committees in the aspects of functional committee(s) by choice? corporate social responsibility, operation of opening stores, procurement, human resources, and corporate governance (management), finance, and smart tech and has invited independent directors or supervisors to attend and provide their opinions.

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons (III) Has the company established a set of policies  (III) To implement corporate governance and to enhance the No deviation was and assessment tools for evaluating board functions of the Board of Directors, the Company has found. performance, and conducted performance stipulated the Rules for the Evaluation of Performance of the evaluation on a yearly basis? Are performance Board of Directors based on the approval of the directors of the evaluation results reported to the Board of board. Directors and used as a reference for According to the Rules, by the end of 2019, the evaluation compensation, remuneration, and nomination subjects included the entire operations of the Board of decisions? Directors and functional committees (including the Remuneration Committee), and members of the Board of Directors have also conducted self-evaluation. Evaluation results were consolidated, analyzed, and reviewed by the Remuneration Committee on February 13, 2020, and later presented to the Board of Directors on February 20, 2020. The items to be assessed in the evaluation include five aspects: 1. Attendance in business operation 2. Enhancement of quality of Board resolutions 3. Composition and structure of the Board of Directors 4. Elections of Directors and advanced studying 5. Internal control. The items to be assessed in the evaluation of performance for the directors include six aspects: 1. Handling of the Company’s objectives and missions 2. Understanding of directors’ duty 3. Attendance in business operations 4. Engagement and communication of internal

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons relationship 5. Professionalism of directors and advanced studying 6. Internal control. The assessment found the subjects having significantly exceeded the standards, and the outcome will be used as reference for director nominations in 2020. For more details on the outcome of the assessment and association with salary/compensation, please refer to section “(2) The policies, standards, and composition of remuneration payment, procedures to determine the remuneration, and the connection between the remuneration payment and the Company’s performance and future risks” on page 32.

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons (IV) Does the Company evaluate the independence of its  (IV) The Company, pursuant to the “Rules for election and No deviation was CPAs regularly? evaluation of Certified Public Accountants” reviews the found. independence, eligibility, and professionalism of the CPA of the Company once every year and obtained the “Certified Public Accountant Independent Declaration” proposed by the CPA confirming that the CPA has no other business relationship with the Company except for audit and tax cases, and no breach of independence for the family members of the CPA. With the items mentioned above, the CV of the CPA, and the evaluation results have been submitted to and been approved by the Board of Directors. The independence and eligibility of the CPA of the Company for 2019 have been reviewed during the 18th meeting of the 10th Board of Directors (February 20, 2020). IV. Has the company allocated adequate numbers of  The Board of Directors resolved on February 26, 2019 to appoint No deviation was competent corporate governance staff and appointed Assistant Vice President Shih, Chi-Yin of the Financial found. a corporate governance officer to oversee corporate Management and Store Development Center as the Company’s governance affairs (including but not limited to corporate governance officer, whose responsibilities are to oversee providing directors/supervisors with the information corporate governance-related matters, protect shareholders’ needed to perform their duties, assisting interests, and support the board in various duties. The officer directors/supervisors with compliance issues, convention of board meetings and shareholder possesses at least 3 years of legal, financial, shareholder service, or meetings, and preparation of board/shareholder corporate governance experience in a public company, and is being

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons meeting minutes)? supported by corporate governance staff that passed the “Corporate Governance Competence Exam” organized by the Securities and Futures Institute R.O.C. The presence of a dedicated officer should effectively enhance board performance and corporate governance. The main duties of the corporate governance officer are to make preparations for the Board of Directors and shareholder meetings, prepare board meeting and shareholder meeting minutes, assist directors and supervisors with ongoing education, provide directors and supervisors with the information needed to perform their duties, and assist directors and supervisors with compliance issues. The corporate governance officer was appointed through the resolution of the Board of Directors’ meeting on February 26, 2019. For its relevant continuing education status, please refer to the Company’s website. 2019 Primary Duties and Job Functions were as follows: 1. Handle the directors’ alternate registration. 2. Handle matters related to the Board of Directors’ meetings, shareholders’ meetings, and meetings of each functional committee, and to assist the Company to comply with the relevant laws and decrees and regulations of the Board of Directors and the board of shareholders. 3. Prepare minutes of Board meetings and shareholders'

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons meetings. 4. Arrange continuing education for directors and supervisors, as well as the personal continuing education courses. 5. Perform assessment on the liability insurance for directors, supervisors, and important employees, as well as apply for insurance. 6. Communication meetings were convened with the CPA, independent directors, supervisors, and audit officers before regular Board meetings. For the details of communication meetings, please refer to pages 36~37 of the Annual Report and the official website of the Company. 7. To provide directors and supervisors with the information required to perform their business and the most recent development of laws in relation to company operation to assist directors and supervisors in complying with the law. 8. Complete the evaluation of the Board of Directors’ performance. 9. Handle various public announcements, material information reporting, etc, after the Board of Directors’ meetings and shareholders’ meetings. 10. Amend corporate governance-related policies in line with the latest regulations and present for discussion among the Board of Directors.

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Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons V. Has the Company established a communication  The Company has established a channel communicating with No deviation was channel for its stakeholders (including but not stakeholders, and a special investors’ zone on the Company’s found. website, to provide an appropriate communication channel with the limited to shareholders, employees, clients, and Company to the public, banks and other creditors, employees, suppliers) and created a stakeholders’ section on its suppliers, communities, government, medias, shareholders, and website? Does the Company respond properly to other related stakeholders and respond to queries duly and timely. stakeholders’ concerns about material CSR issues? VI. Has the Company engaged a professional stock  The Company has designated Capital Securities Corp., to act as the No deviation was agency to handle matters about the shareholders’ Company’s stock agency to handle shareholder matters and found. stipulated the “Procedures for Shareholder Services Operations and meeting? Management” providing such relevant matters. VII. Information disclosure (I) Has the Company built a website to disclose  (I) The Company has set up its website (address: No deviation was financial, business, and corporate governance http://www.mos.com.tw) to disclose its financial, business, found. information? and corporate governance information and such relevant information can also be found on the MOPS website in accordance with the relevant laws as well. No deviation was (II) Has the Company adopted other information  (II) The Company has established a spokesperson and found. disclosure methods (e.g., building an English [email protected] as a contact window and has set up an website, appointing specific persons to be English website. responsible for collecting and disclosing the Company’s information, implementing the The finance, business, and corporate governance conditions No deviation was spokesperson mechanism, placing the process of the Company can be found on the Company’s website and found. of the investor conference on the Company’s MOPS. website, etc.)? - 49 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons (III) Does the company publish and make official  (III) 2019 financial reports (including consolidated) have been filings of annual financial report within two published and filed on February 27, 2020. months after the end of an accounting period, Quarterly financial reports and monthly business performance and publish/file Q1, Q2, and Q3 financial will be published in the manner described on the left in 2020. reports along with monthly business performance before the required due dates? VIII. Whether or not there is other important information  (I) Employees’ rights and employee wellness: The Company No deviation was to better understand the corporate governance (e.g., treats employees with honor and provides employees with a found. safe and healthy working environment pursuant to the laws employees’ rights, care for staff, relationship with and internal regulations. For assignments, promotions, investors, relationship with suppliers, stakeholders’ rewards and penalties, employee welfare, allowances, rights, continuing education for Directors and training, etc, all comply with specific principles, and the Supervisors, implementation of risk management Company provides a fair opportunity and rules of behavior. policies and risk evaluation standards, The Company has also established an Employees’ Welfare implementation of customer policies, liability Committee and an Employees’ Retirement Fund Audit insurance purchased by the Company for its Committee to protect employees’ rights. (II) Investor relations: The Company discloses the Company’s Directors and Supervisors, etc)? information in accordance with laws and regulations to

protect the rights and fulfill the responsibility to shareholders. (III) Supplier relations: Communication channels between the Company and suppliers are quite good and maintained in good interactions. (IV) Stakeholder rights: The Company respects and assists in protecting the legal rights of relevant stakeholders. (V) Continuous education of the Directors and Supervisors: The - 50 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons continued education and training for directors and supervisors are in compliance with the “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” and the details for continued education for directors and supervisors can be found on page 77 of “2019 Directors and Supervisors Continuing Education”. (VI) Risk management policies and risk assessment standards: The Company has implemented internal policies such as “Risk Management Procedures” and “Crisis Response and Business Continuity Procedures” to support its risk management and crisis management systems and promote employee awareness of relevant issues at the same time. Each main business unit is responsible for assessing the risks, devising preventions, and implementing internal controls that are relevant to their business activities. Furthermore, issues such as the Company’s current state, business growth, social and environmental contribution, etc, are reviewed during the Board of Directors meeting held in June each year. The Company has also assembled functional committees of various purposes that comprise experts and consultants from a multitude of expertise. These committees exist to guide the management in risk assessment and decision-making, and ultimately minimize the severity of risks encountered by the Company. Foundation principles of all functional committees have been approved by the Board of Directors. - 51 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons The Company operates in the restaurant and food industry, and therefore places great emphasis on food safety issues. A food safety panel headed by the Chairman’s special assistant has been assembled with all its members properly trained to support the establishment, implementation, maintenance and update of the food safety management system. The effectiveness and appropriateness of the food safety management system are reported according to the laws and policies. (VII) Customer relations policies: The Company has established a customer feedback system to judge the problems and responsibilities of complaints and assigned related departments to improve interactions in order to protect the rights of the customers and investigate customers’ satisfaction regularly to make sure of the provision of the best services to customers. (VIII) Purchase of liability insurance for Directors and Supervisors: The Company has applied liability insurance for directors and supervisors pursuant to Article 12‐2 of Articles of Incorporation, and the main content of such D&O liability insurance, including the insured amount, insurance coverage, and premium rates, was reported in the meeting of the Company’s Board of Directors (August 8, 2019) before renewal was due IX. Explanation for the improvement compared to the  1. The Company has been ranked in the top 5% of the companies No deviation was results of the Corporation Governance Evaluation listed in TWSE and TPEx at the 6th Corporation Governance found. Evaluation System in the most recent year (2019), better than - 52 -

Operational status Discrepancy with “Corporate Governance Best Practice Principles Items to be assessed Yes No Summaries for TWSE/TPEx Listed Companies” and the reasons System in the most recent year, and for unimproved other companies in the same industry. matters, the prior measures for improvements. 2. As for the following indicators: (1) "Has the company assembled an Audit Committee in compliance with policy? " - Will be implemented in 2020. (2) "Is the company invited to (or hosts its own) investor seminars at least twice a year, with the first and final seminars in a given year spaced at least 3 months apart? " - Will be evaluated for implementation in 2020.

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(IV) Organization, duties and operating status of the Remuneration Committee Information of the members of the Remuneration Committee Having more than 5 years work experience and professional qualifications Independence requirements Number of Criteria listed below (note 1) public An instructor or higher in a A judge, public prosecutor, Have work companies in

department of commerce, attorney, CPA, or other experiences in the which the

law, finance, accounting, or professional or technical area of commerce, person holds Identity other academic department specialist who has passed a law, finance, or a concurrent Notes

related to the business needs national examination and accounting, or 1 2 3 4 5 6 7 8 9 10 position as a

of the Company in a public been awarded a certificate in otherwise necessary member of or private junior college, a profession necessary for the for the business of the

college, or university business of the Company the Company remuneration ame committee Independent Gong, － －            - Director Reng-Weng Independent Lai, － －            1 company Director Seh-Jen Independent Li, － －            2companies Director Sheng‐Yan

Note1: All members who are in conformity with the following conditions in the term of holding office and within 2 years prior to the assumption date, please mark “” in the blank showing the conditions respectively. (1) The member is not an employee of the company or any of its affiliates. (2) Not a director or supervisor of the company or any of its affiliated companies (this restriction does not apply to concurrent independent director positions in the company, its parent company, subsidiary, or another subsidiary of the parent that is compliant with the Act or local laws). (3) Does not hold more than 1% of the company's outstanding shares in their own names or under the name of spouse, underage children, or proxy shareholder, nor is a top-10 natural-person shareholder of the company.

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(4) Not a manager listed in (1), or a spouse, 2nd-degree relative or closer, or 3rd-degree direct relative or closer to any personnel listed in (2) or (3). (5) Not a director, supervisor or employee of any corporate shareholder that: 1. holds 5% or more of the company's outstanding shares 2. is a top-5 shareholder or 3. appoints a director/supervisor representative in the company according to Paragraph 1 or 2, Article 27 of The Company Act. (This excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act local laws). (6) Not a director, supervisor, or employee of any other company that controls a directorship in the company or where more than half of the total voting rights are controlled by a single party (this excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act or local laws). (7) Does not assume concurrent duty and is not a spouse to the Company's Chairman, President, or equivalent role, and is not a director, supervisor, or employee of another company or institution. (This excludes concurrent independent director positions held within the Company and its parent/subsidiary, or in other subsidiaries of the parent company that are compliant with the Act or local laws). (8) Not a director, supervisor, manager, or shareholder with more than 5% ownership interest in any company or institution that has a financial or business relationship with the Company (however, this excludes concurrent independent director positions held within companies or institutions that hold more than 20% but less than 50% outstanding shares of the Company, or in the Company's parent or subsidiary, or in another subsidiary of the parent that is compliant with the Act or local laws). (9) Not a professional who provides audit services, or commercial, legal, financial, accounting, or related services for an accumulated sum of less than NT$500,000 in the last 2 years, to the Company or its affiliate, nor is an owner, partner, director, supervisor, or manager, or the spouse of any of the above, of a sole proprietorship, partnership, company, or organization that provides the above service to the Company or its affiliated companies. This excludes roles as Remuneration Committee, Public Acquisition Review Committee, or M&A Special Committee member appointed in accordance with the Securities and Exchange Act or Business Mergers and Acquisitions Act. (10) The member is not a person subject to any conditions defined in Article 30 of the Company Act.

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Operational status of the Remuneration Committee

I. There are three members in the Company’s Remuneration Committee. II. The term of the current Remuneration Committee members: from June 7, 2017 to June 6, 2020. Remuneration Committee meetings were held for five times in the mos recent year (2019). Qualifications and attendance of the members of the Remuneration Committee are as follows:

Number of Number of Job Title Name actual attendance by Attendance Rate (%) Notes attendance proxy Lai, Convener 5 - 100 Seh-Jen Gong, Member 5 - 100 Reng-Weng Li, Sheng‐ Member 5 - 100 Yan

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Other matters legally required to be specified:

I. If the Board of Directors refuses or modifies the suggestions provided by the remuneration committee, the

meeting date, session, proposal content, results resolved by the Board of Directors, and the measures

taken by the Company in response to the Remuneration Committee’s opinions shall be elaborated (if the

Board of Directors approved a remuneration plan better than that suggested by the Remuneration

Committee, the reasons and the difference shall be elaborated): N/A.

II. If any member has any opposite opinions or reservations against the resolution of the Remuneration

Committee and such opinion or reservation has been recorded or declared in writing, the meeting date,

session, proposal content, the opinions of all members of the Remuneration Committee and the measure

taken in response to the members’ opinions shall be elaborated: N/A.

III. Discussions and resolutions of the Remuneration Committee, and the Company's response to committee

members' opinions: Board, Company's response to session and Discussions Outcome of resolution Remuneration time of Committee's opinions meeting 1. Review of managers’ Supported by all attending 2018 performance members when inquired about by Executed as resolved. and salary package. the Chairperson. The 3rd Proposed to the Board board of Directors, and except The 7th 2. Review of the Supported by all attending for those who had meeting Chairman's 2018 members when inquired about by recused themselves the Chairperson, and referred to from resolution, the 2019/1/25 performance and the Board of Directors for further motion was passed by salary package. discussion. remaining directors when inquired about by the acting chairperson. Supported by all attending 1. Adopted the 2018 Proposed to the Board members when inquired about by The 3rd performance of Directors and passed the Chairperson, and referred to board evaluation of the unanimously by all the Board of Directors for further The 8th attending members. Board of Directors. discussion. meeting 2. Review of directors' Supported by all attending 2019/2/22 and supervisors' 2018 members when inquired about by Executed as resolved. salary package. the Chairperson.

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Supported by all attending 3. Allocation of 2018 Proposed to the Board members when inquired about by director, supervisor of Directors and passed the Chairperson, and referred to and employee unanimously by all the Board of Directors for further attending members. remuneration. discussion. Proposed to the Board of Directors, and except The 3rd Supported by all attending for those who had board Review of the Chairman's members when inquired about by recused themselves The 9th 2018 performance and the Chairperson, and referred to from resolution, the meeting salary package. the Board of Directors for further motion was passed by 2019/2/23 discussion. remaining directors when inquired about by the acting chairperson. Supported by all attending 1. Review of 2018 Proposed to the Board members when inquired about by remuneration for of Directors and passed the Chairperson, and referred to individual directors unanimously by all the Board of Directors for further attending members. and supervisors. discussion. Supported by all attending 2. Review of 2018 Proposed to the Board members when inquired about by employee of Directors and passed The 3rd the Chairperson, and referred to remuneration for unanimously by all board the Board of Directors for further individual managers. attending members. The 10th discussion. meeting When inquired about by the 2019/4/12 chairperson, all attending members agreed to transfer 3. Transfer of treasury treasury stocks to employees Executed as resolved. stock to employees. according to company policy, provided that employees are inquired for their intention to subscribe in advance. Supported by all attending The 3rd members when inquired about by 1. Discussion of 2019 board the Chairperson, and referred to Executed as resolved. year-end bonus. The 11th the Board of Directors for meeting approval. 2019/12/23 2. 2020 salary Supported by all attending Executed as resolved. adjustment. members when inquired about by

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the Chairperson, and referred to the Board of Directors for approval. 3. Discussion on Supported by all attending amendments to the members when inquired about by Employee the Chairperson, and referred to Executed as resolved. Shareholding Trust the Board of Directors for Policy. approval. 4. Discussion of the Supported by all attending Remuneration members when inquired about by Executed as resolved. Committee's 2020 the Chairperson. work plan. 5. Review of managers’ Supported by all attending 2019 performance members when inquired about by Executed as resolved. and salary package. the Chairperson. Proposed to the Board of Directors, and except Supported by all attending for those who had 6. Review of the members when inquired about by recused themselves Chairman's 2019 the Chairperson, and referred to from resolution, the performance and the Board of Directors for further motion was passed by salary package. discussion. remaining directors when inquired about by the acting chairperson.

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(V) Fulfillment of corporate social responsibilities, deviation, and causes of deviation from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons I. Has the company conducted risk assessment on  The Company has a CSR panel that is responsible for identifying No deviation was environmental, social, and corporate governance issues CSR issues based on industry characteristics, social reality, found. that are relevant to its operations, and implemented risk sustainability trends, and practices of local and foreign peers. The management policies or strategies based on the panel then performs analysis according to the materiality principle principles of materiality? to highlight material issues, so that functional committees assembled under the Board of Directors may take proper steps to mitigate impact of such risks on the Company. II. Does the company have a unit that specializes (or is  The Company has established a “CSR” on August 13, 2014, under No deviation was involved) in CSR practices? Is the CSR unit run by which the Company established a CSR project team. General found. senior management and does the unit report its Manager Kao, Shun‐Hsing acts as the Convener in such team, and progress to the Board of Directors? the representatives from each department fulfilled the CSR within the scope of their functional units, and convened the meeting of the CSR committee a total of 3 times in 2019, and reported to the Board in the latest Board meeting. III. Environmental issues (I) Has the company developed an appropriate  (I) The Company, pursuant to the nature of the industry, started to No deviation was environmental management system, given its adopt ISO22000 and the HACCP food safety management found. - 60 -

Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons distinctive characteristics? system, and acquired the certification. The Company adopted the ISO50001 Energy Management System and passed certification in 2016, valid until November 23, 2022. In addition to surveying energy-intensive equipment and improving energy efficiency at the source, the Company also made a full-scale introduction of energy-efficient LED lighting to reduce No deviation was power consumption, and took actions to cut down waste. found. These actions became the foundation for future energy/carbon/emission reduction strategies and goals. (II) Is the company committed to achieving efficient  (II) The Company focuses on developing sustainable use of resources, and using renewable materials environments, including promoting the use of reusable that produce less impact on the environment? tableware, establishing recycling points, printing with soy ink, using newsprint paper without fluorescent brighteners on all tray paper, and using packaging materials with FSC certification in priority (hot and cold drink containers, bags of No deviation was French fries and fried chicken, containers for hot dogs & found. burgers, etc), using electricity‐saving lights and energy‐ efficient equipment, using PLA cups instead of plastic cups

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons and salad containers, providing customers with cup discounts, and using reusable non‐woven materials for production of bags to reduce the use of plastic materials, and using the (III) Does the company assess potential risks and  provincial water mark toilet. opportunities associated with climate change, and (III) Motor vehicles were used for delivery services to reduce undertake measures in response to climate issues? carbon emissions during the sales and transportation phase, and the introduction of 50 e-moving can effectively reduce carbon emissions and air pollution. Based on a calculation that daily delivery mileage is approximately 20 kilometers and a month includes 25 days with riding, a reduction of approximately 2.4 tons of carbon emissions can be achieved each year. There has been an uprise of vegetarian diets in recent years in No deviation was response to the ongoing problems concerning climate change found. and food supply, and one of the most revolutionary changes in the food industry is the introduction of plant-based foods. As foreign fast food chains began launching burger products made from plant-based meat, the market soon turned its attention to this alternative source of protein, and the

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons Company capitalized on this emerging trend by adopting “Beyond Meat” ahead of all fast food chains in Taiwan. Beyond Meat is 100% plant-based and comprises pea, beetroot, and coconut oil as the main ingredients. It is made using advanced food technology, where nutrients such as protein, fat, trace minerals, and water are extracted from plants and processed into a meat-like structure. The product has been popular and widely accepted among health-conscious consumers for it contains no animal parts, no cholesterol, no hormones, no antibiotics, and is not (IV) Has the company maintained statistics on  genetically modified, and looks and tastes similar to ordinary greenhouse gas emission, water usage, and total beef patties. waste volume over the last two years, and (IV) The Company makes extensive use of PLA-based packaging implemented policies aimed at reducing energy, materials and utensils, cuts down on plastics, and sets up carbon, greenhouse gases, water, and waste? recycling counters at all its stores. The headquarters actively promotes the use of smart technologies to create a paperless office environment, and has fully adopted the use of PEFC-certified paper as a way to reduce impact of the Company’s operations on the environment.

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons IV. Social issues (I) Has the Company established relevant  (I) In order to fulfill its corporate social responsibility, the No deviation was management policies and procedures in Company protected the basic human rights of all its found. compliance with relevant regulations and employees and stakeholders, followed the “United Nations international human rights conventions? Universal Declaration of Human Rights” and other international conventions and norms, and pursuant to the spirit and principles of these norms promoted human rights maintenance, including the prohibition of any kind of sexual harassment, discrimination, threats of violence, and ensured that employment policies do not discriminate, and child labor is prohibited, assisted the disadvantaged and disable for No deviation was employment, implemented a fair and reasonable found. remuneration system, respected freedom of association, encouraged employees to establish or join associations, provided security and healthy working environments, implemented protection of human rights, and adhered to applicable local laws and regulations related to labor. (II) Has the company developed and implemented  (II) All employees of the Company are entitled to salaries and reasonable employee welfare measures (including benefits without discrimination whether in terms of gender,

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons compensation, leave of absence, and other age, nationality. disability, ethnicity, or otherwise. The benefits) and appropriately reflected its business Company also offers re-employment and employment No deviation was performance or outcomes in employee opportunities for the underprivileged, and complies strictly found. compensation? with the Labor Standards Act and relevant labor regulations. Employee performance is evaluated on a regular basis, and the Company has designed its compensation and bonus systems so that employees may find satisfaction and purpose in the works they perform. Employees are offered a broad variety of benefits to support their career development, including travel subsidies, language learning subsidies, birth subsidies, children’s education subsidies, annual health checkup and group insurance/healthcare. Top-performing talents are offered opportunities to learn and visit overseas, whereas corporate profits are distributed among employees as incentives in the form of year-end bonuses and  remuneration. (III). Does the Company provide its employees with a (III) The Company provides employees with annual health safe and healthy working environment, and hold examinations and has established the “safety and hygiene safety and health training regularly? group” as a dedicated unit to plan and hold safety and

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons hygiene speeches for laborers, and provide a safe and healthy working environment for employees. Such dedicated unit No deviation was plans and holds safety and hygiene courses regularly and found. annually (there were a total of 32 such courses held in 2019, including unlawful infringement, prevention of overwork, promotion of health, prevention of occupational injuries, and  first aid treatment training in 2019, which were attended by over 2,200 people). The labor health spot services were provided 108 times in 2019. The Company conducted monthly safety inspections at each store (assessed accident No deviation was hazards and risks in advance for each operation items, and found. proposed preventive and control measures for hazards to ensure safe workplaces), implemented office health exercise, and started a healthy workplace plan to establish health  awareness, and promote health. No deviation was The Company engaged the institute of supervision of found. working environments certified by the Ministry of Labor to implement supervision of the working environment (CO2) every half year pursuant to the Occupational Safety and

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons Health Act in order to ensure the amount of CO2 is within the limitation of the laws and protect the health of employees. The above-mentioned items were to ensure the safety, hygiene, and care of the working environment, to prevent the occurrence of personal injury, illness, and occupational disasters, and to provide employees with appropriate workplaces, and to implement responsibilities of all level officers for safety and health management, and caring for employees. (IV). Has the company implemented an effective (IV). The Company established the An-Shin College in Tamsui in training program that helps employees develop 2012, and offers an efficient and multivariate career skills over their career? development plan for the operation office and back up office employees respectively. Headquarters staff are offered general knowledge and management skill training, whereas employees of operational departments are trained on business strategies, food safety knowledge, production and the sales process, and are assigned to experience practical store management at various

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons stages in their career. (V) Has the company complied with laws and international (V) The Company has developed internal policies based on the standards with respect to customers' health, safety and Governing Food Safety and Sanitation Act, Personal privacy, marketing, and labeling in all products and Information Protection Act, and related rules to ensure food services offered, and implemented consumer safety in the consumers’ best interest. A toll-free complaint protection policies and complaint procedures? hotline (0800-208128) and a customer service hotline ((02)449-2626) have been made available for consumers to raise complaints, and a dedicated customer service unit has been assigned to handle customers’ complaints. (VI) Has the company implemented a supplier (VI). The Company evaluates its new supplier pursuant to the management policy that regulates suppliers' factory evaluation table before entering a business conduct with respect to environmental protection, relationship, and visits supplier’s factories to evaluate its occupational safety and health, or workers adaptability regularly. rights/human rights issues, and tracked suppliers' Environmental evaluation for new suppliers takes into performance on a regular basis? account whether or not raw materials could damage the environment, whether or not industrial sewage and waste produced during production processes and produced from hygiene facilities are properly treated, whether records are maintained before emissions, whether or not there are

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Operational status Discrepancy with the “Corporate Social Responsibility Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies” and the reasons specific plans for the prevention of pollution, reduction of waste, and saving energy, and whether or not CSR is duly fulfilled. V. Does the company prepare corporate social responsibility  The Company prepares its corporate social responsibility report in No deviation was reports or any report of non-financial information based accordance with the "Rules Governing the Preparation and Filing found. on international reporting standards or guidelines? Are of Corporate Social Responsibility Reports by TWSE Listed the abovementioned reports supported by assurance or Companies", while opting for the "core disclosure" option of the the opinion of a third-party certifier? GRI Standards developed by the Global Reporting Initiative. Furthermore, the Company has engaged PricewaterhouseCoopers Taiwan (PwC Taiwan) to provide limited assurance for the content of this report based on the Statement of Assurance Principles No. 1 - "Audit and Review of Non-financial Information". A copy of this assurance report has been included in the appendices. VI. If the company has established CSR principles in accordance with the "Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies", please describe its current practices and any deviations from the Best Practice Principles: N/A. VII. Other information useful to the understanding of corporate social responsibilities: The Company has disclosed its CSR information on its website and prepared the “Corporate Social Responsibility Report” from 2015.

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(VI) Enforcement of business integrity, deviation, and causes of deviation from Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies: Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons I. Enacting ethical corporate management policies and plans No deviation was (I) Has the company established a set of  (I) The Company’s “Ethical Corporate Management found. board-approved business integrity policies, and Best Practice Principles” have been discussed and stated in its Memorandum or external approved by the Board of Directors. Human correspondence the polices and practices it Resources Department is the unit responsible for implements to maintain business integrity? Are enforcing business integrity within the the Board of Directors and the senior organization, whereas the Internal Audit Office management committed to fulfilling this supervises the overall execution and makes regular commitment? reports to the Board of Directors. The best practice principles have been published on the Company’s website and Intranet. All members of the board and the senior management have signed a commitment to the integrity policy.

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Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons (II) Has the company developed systematic practices  (II) To ensure the fulfillment of ethical corporate No deviation was for assessing integrity risks? Does the company management, the Company has established found. perform regular analyses and assessments of accounting systems and an internal control system. business activities that are prone to a higher risk Internal auditing personnel review the compliance of dishonesty, and implement prevention against of aforementioned system regularly. dishonest conduct that include at least the measures mentioned in Paragraph 2, Article 7 of "Ethical Corporate Management Best Practice Principles for TWSE/TPEX Listed Companies"? (III) Has the company defined and enforced operating  (III) The Company has established and implemented a No deviation was procedures, behavioral guidelines, penalties and set of “Business Integrity Procedures and found. grievance systems as part of its preventive Behavioral Guidelines”. This policy was last measures against dishonest conduct? Are the discussed and amended by the Board of Directors above measures reviewed and revised on a on February 20, 2020. regular basis? II. Implementing ethical corporate management (I) Does the company evaluate the integrity of all  (I) The Company has enacted the “Work Rules” and No deviation was counterparties it has business relationships with? “Employee Conduct Code” providing that all found. Are there any integrity clauses in the agreements employees shall not provide or receive any direct - 71 -

Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons it signs with business partners? or indirect appropriate gifts, hospitality, or any other inappropriate interests in order to avoid conflict between the employees’ personal interests No deviation was and the Company’s interests. found. (II) Does the company have a unit that enforces  (II) The human resources department of the Company business integrity directly under the Board of is responsible for promotion of ethical corporate Directors? Does this unit report its progress management, and such matters are supervised and (regarding implementation of the business conducted by the internal audit department and No deviation was integrity policy and prevention against dishonest reported to the Company’s Board regularly. found. conduct) to the Board of Directors on a regular basis (at least once a year)? No deviation was (III) Has the Company established policies to prevent  (III) The Company has established its “Employee found. conflicts of interest, provided appropriate Code of Conduct” providing policies for ethical communication and complaint channels, and corporate management and specific rewards and implemented such policies accordingly? penalties, and a claims system for the implementation. (IV) Has the company implemented an effective  (IV) To ensure the fulfillment of ethical corporate No deviation was

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Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons accounting policy and internal control system to management, the Company has established found. maintain business integrity? Has an internal or accounting systems and an internal control system. external audit unit been assigned to devise audit Internal auditing personnel review the compliance plans based on the outcome of integrity risk of the aforementioned system regularly. assessment, and to audit employees' compliance with various preventions against dishonest conduct? (V) Does the Company provide internal and external  (V) The Company held a national conference on ethical corporate management training programs August 14, 2019 to train employees on the subject on a regular basis? of “ethical conduct”. Furthermore, the Company conveys business integrity in routine meetings and through mails to all its employees and suppliers during festive occasions. III. Operating status of the Company’s complaint mechanism  (I) The Company has established an actual mailbox in No deviation was (I) Has the Company established specific complaint the Chairman’s office and the “Supervisors’ found. and reward procedures, set up conveniently Contact Mailbox”, “Internal Audit Department accessible complaint channels, and designated Mailbox”, and “Employee Opinion Mailbox” on

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Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons appropriate individuals to be responsible for the Company’s website, and a dedicated unit to handling the complaint received? conduct such matters. No deviation was found. (II) Has the company implemented any standard  (II) According to the Company’s “Ethical Corporate procedures for handling reported misconduct, and Management Best Practice Principles” and subsequent actions, and confidentiality measures Opinion Feedback Policy, employees are bound to to be undertaken upon completion of an maintain confidentiality over the details of investigation? reported misconduct and the identities of concerned parties. All interviews conducted over No deviation was the course of an investigation are kept on record found. and verified by the concerned parties. For each misconduct report raised, an investigation report is issued along with recommendations to facilitate subsequent actions such as penalties, awareness enhancement, and improvement. The Company respects and maintains confidentiality over all opinions it receives. (III) Has the Company adopted appropriate measures  (III) The reporting process of the Company could to protect a complainant from improper treatment maintain such reporter in confidence with which

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Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons for his/her complaint? the reporter won’t be subject to any punishment.

IV. Enhancing information disclosure Has the company disclosed its integrity principles and  The Company’s website and MOPS has announced the No deviation was progress onto its website and MOPS? Company’s “Ethical Corporate Management Best found. Practice Principles” and related information. V. If the company has established business integrity policies in accordance with "Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies", please describe its current practices and any deviations from the Best Practice Principles: N/A. VI. Other important information to facilitate the understanding of the Company’s implementation of ethical corporate management (such as review and amendment of existing integrity principles): 1. As a preliminary condition to perform the ethical corporate management, the Company complies with the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, the Political Donations Act, the Anti-Corruption Act, the Government Procurement Act, the Act on Recusal of Public Servants Due to Conflict of Interest, relevant regulations governing TWSE/TPEx listed companies, or other related laws governing business acts. 2. The Company’s “Management Procedures for the Operation of the Board of Directors’ Meeting” has provided a conflict of interest system for Directors. For the proposal proposed in the Board of Directors’ meeting, a Director with personal interest or a corporate shareholder’s interest therein, which may harm the Company’s interest, may state his/her opinions and reply to inquiries, shall not - 75 -

Operational status Discrepancies with the Ethical Corporate Management Best Items to be assessed Yes No Summaries Practice Principles for TWSE/TPEx Listed Companies and Reasons participate in the discussion and resolution, shall recuse himself/herself from the discussion and resolution, and shall not vote on behalf of other director as his/her proxy. On February 20, 2020, the policy was further amended to clarify that “A director would be considered to hold self interest in a motion discussed in the abovementioned meeting if the director's spouse, 2nd-degree direct relative or closer, or any of the director's controlled or controlling entities holds stake in the said motion”. 3. The Company has enacted “Management Procedures to Prevent Insider Trading” and “Procedures for Handling Material Inside Information” and announced to the Directors, Supervisors, officers, and all other employees of the Company to comply with the related rules, procedures, and guidelines which could be found on the Company’s website. (VII) If the Company has enacted corporate governance best practice principles and relevant rules, please disclose the method for inquiry: The Company has enacted its “Corporate Governance Best Practice Principles” which can be found on the Company’s website, http://www.mos.com.tw., under “Major Internal Policies” of “Investor Relations” tab, or MOPS, http://mops.twse.com.tw.

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(VIII) Other important information to facilitate the understanding of the Company’s implementation of corporate governance: Directors and Supervisors Further Training for 2019 were all completed as follows: Whether or not the training complies with the “Directions for the Implementation of Training Job Title Name Organizer Course name Continuing Education Hours for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” Directors' Corporate Leadership in an Environment of Rapid Lin, Taiwan Corporate Governance Association Chairperson Technological Changes 6 Yes Chien-Yuan Securities and Futures Institute R.O.C. Artificial Intelligence and Applications Directors' Obligations and Responsibilities under the Securities and Exchange Act Director Jun Takifuka Taiwan Corporate Governance Association 6 Yes Notes on Directors'/Supervisors/ Responsibilities and Corporate Governance for Foreign Businesses in Taiwan Directors' Obligations and Responsibilities under the Securities and Exchange Act Notes on Directors'/Supervisors/ Responsibilities and Corporate Hironobu Governance for Foreign Businesses in Taiwan Director Taiwan Corporate Governance Association 12 Yes Maehara Securities Fraud and Directors' Responsibilities

Private Placement, Public Tender Offer, and Corporate Governance under the Securities and Exchange Act

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Whether or not the training complies with the “Directions for the Implementation of Training Job Title Name Organizer Course name Continuing Education Hours for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” Directors' Obligations and Responsibilities under the Securities and Akio Exchange Act Director Taiwan Corporate Governance Association 6 Yes Fukumitsu Notes on Directors'/Supervisors/ Responsibilities and Corporate Governance for Foreign Businesses in Taiwan TPEX and Emerging Stock Market Insider Shareholding Seminar - Kao, Shun‐ Taipei Exchange (TPEx) Director Taipei Session 6 Yes Hsing Taiwan Corporate Governance Association The 15th International Corporate Governance Summit Forum Directors' Obligations and Responsibilities under the Securities and Huang, Exchange Act Director Taiwan Corporate Governance Association 6 Yes Shang-Li Notes on Directors'/Supervisors/ Responsibilities and Corporate Governance for Foreign Businesses in Taiwan The Company Act Amendments and Effects on Corporate Governance, Internal Control, and Directors'/Supervisors' Independent Gong, Responsibilities Taiwan Corporate Governance Association 13 Yes Director Reng-Weng Cross-border Management and Sustainability Analyzing Corporate Financial Information for Enhanced Crisis Alert Corporate Governance Enhancement - Roles and Responsibilities of - 78 -

Whether or not the training complies with the “Directions for the Implementation of Training Job Title Name Organizer Course name Continuing Education Hours for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” the Corporate Governance Officer Chinese National Association of Industry and Trends of Digital Technology and AI and Risk Management Commerce Global Development and Cross-border M&A Opportunities for Chinese National Association of Industry and Taiwanese Businesses Independent Commerce Duties of the Person-in-charge and Avoidance of Legal Liabilities - A Lai, Seh-Jen 9 Yes Director Corporate Governance Perspective Directors' and Supervisors' Criminal Risks and Responses - Fraud and Taiwan Corporate Governance Association Money Laundering Prevention Directors' Responsibilities and Risk Management under the Latest Taiwan Corporate Governance Association Corporate Governance Independent Li, Sheng‐Yan Taiwan Insurance Institute Impact of IFRS17 on Insurance Operations 7 Yes Director Chinese National Association of Industry and Functionality of Independent Directors and the Audit Committee Commerce

Yue, Taiwan Academy of Banking and Finance Anti-money Laundering and Counter Terrorism Financing Seminar Supervisor 9 Yes Chao-Tang CPA Assignations R.O.C. Taiwan Preparation of Audit Worksheets for Small Businesses

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Whether or not the training complies with the “Directions for the Implementation of Training Job Title Name Organizer Course name Continuing Education Hours for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” Huang, Securities and Futures Institute R.O.C. Insider Trading Rules and Preventive Practice Supervisor 6 Yes Mao‐Hsiung Taiwan M&A and Private Equity Council Shareholder Empowerment and Unsolicited Takeover Analysis of Global Top-10 Risks 2019 Supervisor Fritz J. C. Jang Taiwan Corporate Governance Association Directors' Corporate Leadership in an Environment of Rapid 6 Yes Technological Changes

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(IX) Internal control system implementation status I. Statement of the Internal Control System AN-SHIN FOOD SERVICES CO., LTD. Statement of the Internal Control System Date: February 20, 2020 Based on the findings of its self-assessment, the Company states the following with regard to its internal control system for 2019: I. The Company acknowledges that it is the Company’s Board of Directors’ and officers’ responsibility to establish, implement, and maintain an adequate internal control system. Our internal control system is a process designed to provide reasonable assurance over the effectiveness and efficiency of our operations (including profitability, performance, and safeguarding of assets), reliability, timeliness and transparency of our reporting, compliance with applicable rules, laws and regulations, and achievement of other goals. II. The internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its three stated objectives. Moreover, the effectiveness of an internal control system may be subject to changes in environment and circumstances. Nevertheless, the Company’s internal control system has self-monitoring mechanisms, and the Company takes immediate remedial actions in response to any identified deficiencies. III. The Company evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the “Regulations Governing the Establishment of Internal Control Systems by Public Companies” (hereinafter referred to as the “Regulations”). The criteria adopted by the Regulations identify five key components of the managerial control processes: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring. Each of the five components has several items respectively. Please refer to the Regulations for such items. IV. The Company has evaluated the effectiveness of the design and operation of its internal control system based on the aforementioned criteria. V. Based on the findings of the evaluation, the Company believes that on December 31, 2019, it has maintained an effective internal control system (including the supervision and management of its subsidiaries) in order to understand the extent that its operations have reached effectiveness and efficiency, the reliability, timeliness and transparency of the reports, compliance with applicable rules, laws and regulations, and to provide reasonable assurance over achieving the aforementioned goals. VI. This Statement will constitute a major part of the Company’s 2019 Annual Report and prospectus and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liabilities under Article 20, Article 32, Article 171, and Article 174 of the Securities and Exchange Act. VII. It is hereby declared that this Statement is adopted at the Board of Directors’ meeting on February 20, 2020, with all nine attending directors approving the content of this Statement. AN-SHIN FOOD SERVICES CO., LTD. Chairman：Lin, Chien-Yuan General Manager：Kao, Shun‐Hsing - 81 -

2. In the event of engaging a CPA to review the internal control system, the auditor review report shall be disclosed: N/A.

(X) Penalties imposed against the Company for regulatory violations, or penalties against employees for violation of the internal control system, in the most recent year up until the publication date of the annual report that may significantly impact shareholders' interest or security price, describe the details of the penalty, areas of weakness, and any corrective actions taken: N/A.

(XI) 1. Major resolutions passed in shareholder meetings and Board of Directors meetings held in the last year up until the publication date of annual report: February 29, 2020 General meetings of shareholders or meetings of Date Material resolutions Board of Directors 1. Adopted the amount of the Company’s 2018 distribution for Directors and Supervisors remuneration and employees’ compensation. 2. Adopted the Company’s 2018 Financial Statements and consolidated financial statements review. 3. Adopted the Company’s 2018 earnings appropriation. 4. Adopted the Chairman performance and salary structure discussion. 5. Adopted the Company’s 2018 Statement of Internal Control System. Board of 6. Review the independence and eligibility of the CPA of Directors’ 2019/2/26 the Company. Meeting 7. Proposal for amendment to the “Corporate Governance Best Practice Principles”. 8. Proposal for appointment of a corporate governance officer. 9. Matters related to the convention of the 2019 ordinary shareholders’ meeting. 10. Adopted the review for the acceptance period for the submission of proposal of shareholders holding more than 1% of shares of the Company. 11. Personnel employment proposal.

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General meetings of shareholders or meetings of Date Material resolutions Board of Directors 1. Adopted the amount of the Company’s 2018 remuneration distribution for individual Directors and Supervisors. 2. Adopted the amount of the Company’s 2018 remuneration distribution for individual officer and employee. 3. Amendment to the Company’s “Articles of Incorporation”. 4. Amendment to the "Management Measures of Lending Board of Funds to Others". Directors’ 2019/4/24 5. Amendment to “"Operating Procedures for Meeting Endorsements and Guarantees". 6. Establishment of "Standard Operating Procedures for Resolving Directors' Requests". 7. Proposal to release non-competing restrictions for directors. 8. Proposal to remove restrictions imposed against the Company's managers for involving themselves in competing businesses. 9. Addition to the 2019 annual general meeting agenda. 10. Lending to MOS BURGER AUSTRALIA PTY. LTD. Report: 1. 2018 Business Report. 2. 2018 Supervisors’ Review Report. 3. 2018 Report on the allocation of compensation to Directors, Supervisors, and employees. Ordinary 4. Amendment to "Corporate Governance Best Practice shareholders’ 2019/6/5 Principles". meeting Ratifications: 1. Ratification of the Company’s 2018 Business Report and year-end accounts. 2. Adopted the Company’s 2018 earnings appropriation. [Discussions]: 1. Amendment to the Company’s “Articles of

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General meetings of shareholders or meetings of Date Material resolutions Board of Directors Incorporation”. 2. Amendment to the "Procedures for Acquisition or Disposal of Assets". 3. Amendment to the "Management Measures of Lending Funds to Others". 4. Amendment to the "Operating Procedures for Endorsements and Guarantees". 5. Release of prohibitions against directors for participation in competitive businesses. 1. Adopted the base date of distribution for cash and share dividends. Board of 2. Amendment to the “Employee Share Buyback Transfer Directors’ 2019/6/5 Policy”. Meeting 3. Proposal of adjustment of each functional committee member. 1. Adopted the 2018 CSR report. Board of 2. Increase of capital in MOS BURGER AUSTRALIA PTY. Directors’ 2019/8/8 LTD. Meeting 3. Sale of equity holdings in Hong Kong MOS Burger Investment Co., Limited. Board of Proposal to remove restrictions imposed against the Directors’ 2019/11/13 Company's managers for involving themselves in Meeting competing businesses. 1. Proposal to invest 2018's undistributed earnings. 2. Review of the 2020 operational plan (budget). 3. Review of 2020 audit plan. Board of 4. Increase of a performance guarantee banking limit for Directors’ 2019/12/20 MOS Cards. Meeting 5. Proposal to remove restrictions imposed against the Company's managers for involving themselves in competing businesses. 1. Review of independence and eligibility of the CPA of the Board of Company. Directors’ 2020/2/20 2. Adopted the amount of the Company’s 2019 distribution Meeting for Directors and Supervisors remuneration and

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General meetings of shareholders or meetings of Date Material resolutions Board of Directors employees’ compensation. 3. Adopted the Company’s 2019 Financial Statements and consolidated financial statements review. 4. Adopted the Company’s 2019 earnings appropriation. 5. Acknowledgment for the Company’s participation in the private cash issue of “Medigen Vaccine Biologics Corp”. 6. Adopted the Chairman performance and salary structure discussion. 7. Adopted the Company’s 2019 Statement of Internal Control System. 8. Proposal to partially amend the "Articles of Incorporation" to accommodate the introduction of the Audit Committee. 9. Proposal to partially amend the "Director and Supervisor Election Policy" to accommodate the introduction of the Audit Committee. 10. Proposal to partially amend the internal control system to accommodate the introduction of the Audit Committee. 11. Determination of the director's seats given the expiry of directors' and supervisors' service. 12. Acceptance of nomination for the 11th Board of Directors (including independent directors). 13. Adopted the proposal to lift non-compete restrictions for the Company’s Directors. 14. Matters related to the convention of the 2020 annual general meeting. 15. Adopted the review for the acceptance period for the submission of the proposal of shareholders holding more than 1% of the shares of the Company for the 2020 annual general meeting. 16. Proposal to participate in the private cash issue of the “Century Biotech Development Corporation”.

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General meetings of shareholders or meetings of Date Material resolutions Board of Directors 17. Proposal to invest in securities up to the legal limit for more efficient capital allocation.

2. Execution of the resolutions of the Company’s 2019 annual general meeting of shareholders (June 5, 2019): (1). Passed ratification of the Company’s 2018 Business Report and year-end account. (2). Passed ratification of the Company’s 2018 earnings appropriation plan. Progress: Dividends of 2018 to be distributed to shareholders are in the amount of NT$96,817,500 in cash (NT$3.0 per share). The cash dividend baseline date was set at July 1, 2019. Cash dividends were paid on July 25, 2019. (3) Resolution: Amendment to the Company’s “Articles of Incorporation”. Progress: Approved under Letter No. Fu-Chan-Ye-Shang-10851052800 issued by Taipei City Government on June 21, 2019 and published on the Company’s website. (4) Passed amendment to the Company’s “Procedures for Acquisition and Disposal of Assets”. Progress: The amended procedures were published on the Company's website on June 5, 2019, and have been enforced accordingly. (5) Passed amendment to "Management Measures of Lending Funds to Others". Progress: The amended procedures were published on the Company's website on June 5, 2019, and have been enforced accordingly. (6) Passed amendment to the "Operating Procedures for Endorsements and Guarantees". Progress: The amended procedures were published on the Company's website on June 5, 2019, and have been enforced accordingly.

(XII) Documented opinions or declarations made by directors or supervisors against board resolutions in the most recent year, up until the publication date of the annual report: N/A.

(XIII) Resignation or dismissal of the Chairman, President, head of accounting, head of finance, chief internal auditor, corporate governance officer, or head of R&D in the most recent year up until the publication date of annual report: N/A. - 86 -

V. Information about the fees for the CPA

Name of the accounting Name of the CPA CPA’s audit Notes firm period

PricewaterhouseCoopers Chih, Wu, 2019/1~2019/12 Taiwan Ping-Chun Yu-Lung

Fee item Range of fee Audit fees Non-audit fees Total

1 Less than NT$2,000,000   NT$2,000,000 2 (included)~NT$4,000,000 NT$4,000,000 3   (included)~NT$6,000,000 NT$6,000,000 4 (included)~NT$8,000,000 NT$8,000,000 5 (included)~NT$10,000,000 NT$10,000,000 (included) or 6 more

Note: NT$810 ,000 of non-audit fees is for translation of documents related to the Board of Directors meetings, shareholder meetings, and CSR consultation service. Non audit fees did not amount to one-quarter of the audit fees.

(I) Non-audit remuneration to external auditors, accounting firms, and related businesses that amount to one-quarter or higher of the audit remuneration: N/A.

(II) Change of the accounting firm that resulted in the reduction of audit remuneration from the previous year. Disclose audit remuneration before and after the change and the cause of such change: N/A.

(III) Any reduction in the audit remuneration by more than 10% compared to the previous year, state the amount, the percentage, and reason of such variation: N/A.

VI. Information about the change of the CPA: N/A.

VII. The company’s Chairman, President, or any managers involved in financial or accounting affairs being employed by the accounting firm or any of its affiliated companies in the last year, including their names, job titles, and the periods during which they were employed by the auditor’s firm or any of its affiliated companies: N/A.

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VIII. In the recent fiscal year and as of the date of this Annual Report, the transfer or pledge of shares by the directors, supervisors, officers, and shareholders holding more than 10% of the Company’s total issued and outstanding shares. (1) The transfer of shares by the directors, supervisors, officers, and shareholders holding more than 10% of the Company’s total issued and outstanding shares: Unit: shares

2019 2020 up to April 5

Job Title Name of the shares Share of the shares under Share under pledge Increase/ pledge Increase/Decrease Increase/Decrease Decrease Increase/Decrease Kuang Yuan Industrial Co., - - - - Ltd. Chairperson Representative: Lin, - - - Chien-Yuan Kuang Yuan Industrial Co., - - - - Ltd. Director Representative: Kao, Shun‐ - - - Hsing Kuang Yuan Industrial Co., - - - - Ltd. Director Representative: Shirley - - - - Huang MOS Food Services, Inc. - - - - Director Representative: Jun - - - - Takifuka MOS Food Services, Inc. - - - - Director Representative: Akio - - - - Fukumitsu MOS Food Services, Inc. - - - - Representative: Hironobu Director Maehara, - - - - Yoshinori Ando (Note) Independent Gong, Reng-Weng - - - - Director Independent Lai, Seh-Jen - - - - Director Independent Li, Sheng‐Yan - - - - Director An Tai International - - - - Investment Co., Ltd. Supervisor Representative: Fritz J. C. - - - - Jang

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2019 2020 up to April 5

Job Title Name of the shares Share of the shares under Share under pledge Increase/ pledge Increase/Decrease Increase/Decrease Decrease Increase/Decrease Supervisor Huang, Mao‐Hsiung - - - - Supervisor Yue, Chao-Tang - - - - President’s Kao, Shun‐Hsing - - - - Office Vice President Akio Fukumitsu Special Assistant to Ho, Chi-Yin the Chairman Financial and 5,709 - - - Accounting Shih, Chi-Yin Officer Internal Audit Chen, Hung-Tao Officer Note: Corporate director Magic-Food MOS Food Industry Corp., formally appointed Mr. Yoshinori Ando as its representative, and reappointed Mr. Hironobu Maehara as representative instead since April 1, 2019.

(2) Transfer of shares by directors, supervisors, managers, and major shareholders with more than 10% ownership interest to related parties: N/A. (3) The counterparty of the share pledge by the Directors, Supervisors, officers, and shareholders holding more than 10% of the Company’s total issued and outstanding shares is a related party. The information about such share pledge is as follows: N/A.

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IX. Information of the top ten shareholders, being related parties, spouses, or relatives within the second degree of kinship among themselves. April 5, 2020, unit: shares

Name and relationship of the top ten Shares held by spouse and Shares held in the name of shareholders, being related parties, spouse Notes Shares held in own name underage children others or relatives within the second degree of Name kinship among themselves. Shareholding Shareholding Shareholding Number Number Number Name percentage percentage percentage Relationship of Shares of Shares of Shares (%) (%) (%) Tong Ho Global Tong Ho Kuang Yuan Investment Co., Ltd is the Global Industrial Co., 8,925,807 27.56 0 0.00 0 0.00 corporate supervisor of N/A Investment 1 Ltd. Kuang Yuang Enterprise Co., Ltd Co., Ltd. Representative: 0 0.00 0 0.00 0 0.00 N/A N/A N/A Lin, Hsin-I MOS Food 8,098,464 25.00 0 0.00 0 0.00 N/A N/A N/A Services, Inc. 2 Representative: 0 0.00 0 0.00 0 0.00 N/A N/A N/A Eisuke Nakamura An Tai Teco International 2,755,680 8.51 0 0.00 0 0.00 International Common Chairman N/A Investment Co., Investment 3 Ltd. Representative: Huang, 0 0.00 0 0.00 0 0.00 N/A N/A N/A Mao-Hsiung Employee Shareholding 4 1,060,075 3.27 0 0.00 0 0.00 N/A N/A N/A Committee Trust Account Tong He Global Kuang Yuan Industrial is a Kuang Yuan Investment Co., 833,500 2.57 0 0.00 0 0.00 corporate director of Tong N/A Industrial 5 Ltd. He Global Representative: 0 0.00 0 0.00 0 0.00 N/A N/A N/A Kao, Tung-Hai Common Chairman An Tai International is a Teco International An Tai 546,940 1.69 0 0.00 0 0.00 corporate supervisor of N/A Investment Co., International Teco International 6 Investment Representative: Huang, 0 0.00 0 0.00 0 0.00 N/A N/A N/A Mao-Hsiung

7 Lin, Chao-Fa 407,000 1.26 0 0.00 0 0.00 N/A N/A N/A

8 Hung, Chin-Shu 390,000 1.20 0 0.00 0 0.00 N/A N/A N/A

Athena Capital 346,000 1.07 0 0.00 0 0.00 N/A N/A N/A Management 9 Representative: 0 0.00 0 0.00 0 0.00 N/A N/A N/A Lin, An-Ya 10 Li, Yuan-Kai 320,000 0.99 0 0.00 0 0.00 N/A N/A N/A

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X. The number of shares of an enterprise held by the Company, the Company’s directors, supervisors, officers, and business investments controlled by the Company directly or indirectly, and the consolidated shareholding percentage: December 31, 2019; Unit: Thousand Shares; % Held by directors, supervisors, managers, Aggregate ownership Held by the Company Business investment and directly or indirectly interest controlled enterprises Number Shareholding Number Shareholding Number Shareholding of Shares ratio (%) of Shares ratio (%) of Shares ratio (%) An-Shin Food Services (Singapore) Pte. Ltd. 8,414 41.30 10,313 50.62 18.727 91.92

Xiamen An Shin Food Management Co., － 41.30 － 50.62 － 91.92 Ltd.

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Four. STATUS OF FUNDING I. Capital and Shares (I) Sources of Share Capital 1. Share category April 5, 2020; unit: shares Authorized Capital Types of Shares Issued and Notes Outstanding Shares Unissued Shares Total (Note) Common Shares 32,389,500 7,610,500 40,000,000 － Note: including 117,000 shares of treasury shares

2. Sources of share capital Units: NT$/Share

Authorized Capital Paid-in Capital Notes

Paid-in Year. Issued Number of Amount of Number of Amount of properties Month price Sources of share capital Others Shares stocks Shares stocks other than cash Incorporation by 1990.11 10 16,000,000 160,000,000 8,000,000 80,000,000 N/A Note 1 solicitation Capital increase by cash of 1992.11 10 16,000,000 160,000,000 12,000,000 120,000,000 N/A Note 2 NT$40,000,000 Capital increase by cash of 2006.08 10 40,000,000 400,000,000 20,000,000 200,000,000 N/A Note 3 NT$80,000,000 Capitalization of earnings 2008.07 10 40,000,000 400,000,000 22,000,000 220,000,000 N/A Note 4 of NT$20,000,000 Capitalization of earnings of NT$22,000,000 2011.09 10 40,000,000 400,000,000 24,245,000 242,450,000 Capitalization of N/A Note 5 employee bonus of NT$ 450,000 Capital increase by cash of 2012.01 166 40,000,000 400,000,000 29,445,000 294,450,000 N/A Note 6 NT$52,000,000 Capitalization of earnings 2012.09 10 40,000,000 400,000,000 32,389,500 323,895,000 N/A Note 7 of NT$29,445,000 Note 1: Date and reference number of approval for registration: The 23 November 1990 Ministry of Economics Affair Letter, Gong-Shang-Zi No. 7879. Note 2: Date and reference number of approval for registration: The 16 November 1992 Ministry of Economics Affair Letter, Gong-Shang-Zi No. 7890. Note 3: Date and reference number of approval for registration: The 16 August 2006 Taipei City Hall Letter, Fu-Jian-Shang-Zi No. 09582146300. - 92 -

Note 4: Date and reference number of approval for registration: The 15 July 2008 Taipei City Hall Letter, Fu-Chan-Ye-Shang-Zi No. 09786829200. Note 5: Date and reference number of approval for registration: The 15 September 2011 Taipei City Hall Letter, Fu-Chan-Ye-Shang-Zi No. 10087719800. Note 6: Date and reference number of approval for registration: The 10 January 2012 Taipei City Hall Letter, Fu-Chan-Ye-Shang-Zi No. 10091079810. Note 7: Date and reference number of approval for registration: The 20 September 2012 Taipei City Hall Letter, Fu-Chan-Ye-Shang-Zi No. 10187615210.

(II) Shareholder structure April 5, 2020 Shareholding Foreign Other Structure Government Financial Natural institutions judicial Total agency institution person and persons Quantity foreigners Count - - 176 14,591 28 14,795 Shareholding - - 15,625,486 8,256,326 8,507,688 32,389,500 (shares) Shareholding - - 48.24 25.49 26.27 100.00 percentage (%)

(III) Shareholding Distribution Status 1. Common Stocks: April 5, 2020 Number of Shareholding Class of shareholding Share shareholders ratio (%) 1 to 999 13,337 89,273 0.28 1,000 to 5,000 1,225 2,103,559 6.49 5,001 to 10,000 98 744,638 2.30 10,001 to 15,000 41 517,048 1.60 15,001 to 20,000 14 256,400 0.79 20,001 to 30,000 25 619,959 1.91 30,001 to 50,000 10 384,135 1.19 50,001 to 100,000 20 1,504,056 4.64 100,001 to 200,000 12 1,703,184 5.26 200,001 to 400,000 6 1,839,782 5.68 400,001 to 600,000 2 953,940 2.95 600,001 to 800,000 - - - 800,001 to 1,000,000 1 833,500 2.57 Above 1,000,001 4 20,840,026 64.34 Total 14,795 32,389,500 100.00

2. Preferred stocks: N/A. - 93 -

(IV) List of major shareholders The information of the top 10 shareholders and the shareholders holding 5% or more of the total number of outstanding shares: April 5, 2020 Shares Shareholdin Share Name of major shareholders g ratio (%) Kuang Yuan Industrial Co., Ltd. 8,925,807 27.56 MOS Food Services, Inc. 8,098,464 25.00 An Tai International Investment Co., Ltd. 2,755,680 8.51 Employee Shareholding Committee Trust Account 1,060,075 3.27 Tong He Global Investment Co., Ltd. 833,500 2.57 Teco International Investment Co., 546,940 1.69 Lin, Chao-Fa 407,000 1.26 Hung, Chin-Shu 390,000 1.21 Athena Capital Management 346,000 1.07 Li, Yuan-Kai 320,000 0.99

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(V) Information relating to market price, net worth, earnings, and dividends per share for the last 2 years Units: NT$; Thousand Shares Current year up to Year 2018 2019 March 31, 2020 Item (Note 5) Market High 89.90 82.70 77.70 price per Low 64.50 63.90 58.00 share Average 74.49 71.04 70.04 Net worth Before distribution 54.67 56.60 － per share After distribution 51.67 Note 1 － Weighted Before 32,273 32,273 32,273 average shares adjustment Earnings Before 4.36 5.02 － per share Earnings per adjustment share After 4.35 Note 1 － adjustment Cash dividends 3.0 3.2 － Dividends from － － － Stock retained earnings Dividends dividends Dividends from per share － － － capital surplus Accumulated undistributed － － － dividends Price-to-Earnings Ratio 17.08 14.15 － (Note 2) Analysis of Price-to-Dividends Ratio investment 24.83 22.2 － (Note 3) return Cash dividends yield rate 4.03 4.50 － (Note 4) Note 1: The 2019 Profit Allocation Proposal has not yet be resolved at shareholder meeting. Note 2: Price-earnings ratio ＝ Average closing price per share in the year/Earnings per share. Note 3: Price-dividend ratio ＝ Average closing price per share in the year/Cash dividend per share. Note 4: Cash dividend yield ＝ Cash dividends per share/Average closing price per share in the year.

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Note 5: The fields of net value and earnings per share set forth are the information audited/reviewed by the CPA for the most recent quarter as of the date of this Annual Report and the rest of the fields set forth are the information in the year as of the date of this Annual Report.

(VI) The Company’s dividends policy and implementation 1. Current Dividends policy set forth under Article 21 of the Company’s Articles of Incorporation: The dividends policy of the Company is adopted and set forth in Article 21 of the Company’s Articles of Incorporation. Should the Company have a net income for the year, the Company shall first pay taxes and then offset the cumulative deficit. After offsetting the deficits, the Company shall set aside 10% of the remaining net income as legal reserve if the amount of legal reserve is not yet equivalent to the Company’s paid-up capital. Subject to the needs for business operation and relevant laws and regulations, the Company may set aside a special reserve. After all the appropriations mentioned above, the Company may use the remaining to pay dividends and the Board of Directors may propose a profit allocation plan and submit such plan to the general meeting for approval. The Company is in the catering industry and is still in its growth phase and has a consummate financial structure. As a result, the allocation of profit is not only based on “The Company Act” and “Articles of Incorporation” but also depends on the Company’s capital plan and operation performance. Basically, adopting a stable and balanced dividend policy. The Board of Directors drafts the profit allocation plan before the annual general meeting of shareholders regarding operation performance, financial status, and capital plan. (Profits may be distributed in the form of cash dividends or stock dividends). In principle, the distribution of cash dividends should not be lower than 30% of the amount of profits for the year. Under the condition where there are no other special considerations, cash dividends should be distributed in principle, and stock dividends are not to be distributed. The distribution of cash dividends should not be lower than 50% of the earnings after tax of the current period in principle.

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2. Distribution of dividends proposed for resolution in the shareholders’ meeting of the current year: AN-SHIN FOOD SERVICES CO., LTD. Earnings distribution table 2019 Units: NT$ Item Amount of stocks Beginning undistributed earnings 389,870,534 Plus: Net income of the current year 161,947,295 Effects of retrospective application and 13,282,473 restatement Less: Adjustment to retained earnings in relation to (11,106,249) equity-accounted investments Remeasurement of the defined benefit plan (6,426,928) recognized in retained earnings Cumulative gain on disposal of equity instruments at fair value through other (12,276,061) comprehensive income transferred directly to retained earnings Sum of the current net income and non-net income 535,291,064 items added to current undistributed earnings Less: 10% provision for statutory reserves (14,542,053) Plus: Reversal of special reserve (Note 1) 13,882,166

Retained earnings available for distribution 534,631,177 Distribution items: (103,272,000) Shareholders bonus - cash NT$3.2 per share Shareholders dividends - stock dividends - Balance of retained earnings 431,359,177 Note: 1. The special reserve is according to the Certificate No. 1010012865 of the Financial Supervisory Commission on April 16, 2012. 2. According to Taiwan Finance and Taxation No. 871941343 on April 30, 1998, the distribution of surplus should be individually conducted. The earnings in 2019 will be fully distributed as the company's 2019 annual earnings. - 97 -

Note: Cash dividends are calculated on the basis of the number of shares issued and outstanding as of February 29, 2020, which is 32,272,500 shares. The actual distribution of cash dividends will be based on the shareholders and their shareholding ratios on the Company’s register of shareholders as of the record date.

(VII) The impact of the issuance of bonus shares proposed in this general meeting upon the Company’s business performance and earnings per share (EPS): N/A.

(VIII) Remuneration for Employees, Directors, and Supervisors: 1. The percentage or scope of remuneration for employees, directors, and supervisors as set forth under the Articles of Incorporation: According to Article 20 of the Company’s Articles of Incorporation, the Company shall set aside 1% to 2% of the annual profit of the year as the employee bonus, and no more than 5% as directors’ and supervisors’ remuneration. In the event of any cumulative loss incurred by the Company, loss shall be covered by the profit before employee bonuses and directors’ and supervisors’ remuneration may be set aside in accordance with the percentage determined under the preceding provision. Bonus recipients may include the employees of the Company’s subsidiaries that meet certain conditions. The “annual profit” shall be the amount equal to the profit before tax in the year deducting the profit made before remuneration for employees, directors, and supervisors. 2. The basis of estimated remuneration for employees, Directors, and Supervisors in this fiscal period, the calculation basis of the remuneration for employees in the form of shares, and the accounting policy of addressing any discrepancy between the amount of actual allocation and the estimated amount: In the event any significant change happens to the distributed amount determined by the Board of Directors after the end of the year, the fees recognized for that year shall be adjusted accordingly. If the distributed amount is also changed on or before the date of the general meeting of the shareholders in the following year, such change shall be addressed as changes in accounting estimates and be recognized in the following year.

3. Information of distribution of remuneration resolved at the Board of Directors’ meeting: (1) The amount of the remuneration for employees in the form of cash or shares and that of the remuneration for Directors and Supervisors. If there is a discrepancy - 98 -

between the estimated amount and actual distributed amount of such remuneration, the amount and reason for such discrepancy and status of addressing such discrepancy: The Company’s Board of Directors has resolved on February 20, 2020 to distribute NT$4,100,041 for employee remuneration and NT$8,200,082 for directors’ and supervisors’ remuneration. There’s no discrepancy from the actual distributed amount and the estimated amount of 2019. (2) The amount of remuneration for employees in the form of shares and its percentage among the aggregate amount of after-tax net income in the individual financial report and the amount of remuneration for employees: N/A. 4. The remuneration actually distributed to employees, directors, and supervisors in the preceding year (including the number, amount, and price of shares distributed). If there is a discrepancy between the actual distributed remuneration and the remuneration recognized, the amount and reason for such discrepancy and status of addressing such discrepancy: Units: NT$ Estimated 2019 Cause of Item amount for Shareholders’ Difference difference and 2018 meeting resolution Employees’ 4,079,315 4,079,315 - N/A Remuneration Remuneration 8,158,631 8,158,631 - N/A of Directors

(IX) Shares repurchased by the company (completed transactions): April 5, 2020 Repurchase number First time Purpose of re-purchase Transferred to employees Actual repurchase period August 29, 2016 to October 7, 2016 Repurchase price range NT$57.5 to NT$112.6 per share Quantity and type of shares Common stocks for 117,000 shares repurchased Amount of shares re-purchased NT$10,123,229 Quantity bought back as a percentage 12.04 of planned buyback (%) Quantity of shares canceled and Not Applicable

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transferred Accumulated number of company’s Common stocks for 117,000 shares shares held Ratio of accumulated number of company’s shares held over 0.36% total number of outstanding shares (%)

II. Issuance of corporate bonds: N/A. III. Issuance of preferred stock: N/A. IV. Issuance of overseas depository receipts: N/A V. Issuance of employee stock options: N/A VI. Issuance of employee restricted shares: N/A. VII. Issuance of new shares for mergers and acquisitions: N/A. VIII. Implementation of the capital utilization plan: The Company has no pending capital utilization plan or capital utilization plan completed in the past three years whose benefit has not yet materialized.

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Five. OPERATING HIGHLIGHTS 1. Business Activities (I) Scope of Business (1). Principal Business Activities Our principal business activities are fast food restaurant chains operations with an established brand name “MOS BURGER” (Chinese brand name: 摩斯漢堡). The chains located in every appropriate district are all directly owned and operated by the Company. Each chain provides all kinds of products, including hamburgers, desserts, soup, drinks, etc, for dine-in or takeout services. (2). Information of Branches Name Address Telephone: The Company 8F, No.156‐1, Sung Chiang Road, Taipei,104, Taiwan, (02) 2567-5001 (headquarters) (R.O.C.) Xin-sheng S. Rd. 1F., No.161‐1&2, Sec. 1, Xin-sheng S. Rd., Da-an Dist., (02) 2755-6440 Branch Taipei City 106, Taiwan (R.O.C.) Jin-shan S. Rd. 1F., No.121, Sec. 2, Jin-shan S. Rd., Da-an Dist., Taipei (02) 2394-5709 Branch City 106, Taiwan (R.O.C.) 1F., No.85, Tian-mu N. Rd., Shi-lin Dist., Taipei City Tian-mu Branch (02) 2871-1462 111, Taiwan (R.O.C.) Min-sheng E. Rd. 1F., No.114, Sec. 4, Min-sheng E. Rd., Song-shan Dist., (02) 2718-6375 Branch Taipei City 105, Taiwan (R.O.C.) 1&2 F., No.44, Sec. 3, Xinglong Rd., Wenshan Dist., Xinglong Branch (02) 2930-6977 Taipei City 116, Taiwan (R.O.C.) 2F., No.123, Sec. 3, Bade Rd., Songshan Dist., Taipei Bade Branch (02) 2579-3650 City 105, Taiwan (R.O.C.) 1F., No.70, Sec. 1, Anhe Rd., Daan Dist., Taipei City Anhe Branch (02) 2705-6427 106, Taiwan (R.O.C.) Changan W. Rd. 1 & 2F., No.219, Changan W. Rd., Datong Dist., Taipei (02) 2549-2749 Branch City 103, Taiwan (R.O.C.) 1F., No.237, Sec. 1, Daan Rd., Daan Dist., Taipei City Daan Branch (02) 2703-9611 106, Taiwan (R.O.C.) Kaohsiung 1F., No.293, Zhongshan 1st Rd., Xinxing Dist., (07) 287-5800 Zhongshan Branch Kaohsiung City 800, Taiwan (R.O.C.) 1F, No. 258, Section 2, Beixin Road, Xindian District, Beixin Branch (02) 8665-9030 New Taipei City 1F and 2F, No. 11, No. 37, Section 4, Renai Road, Daan Renai Branch (02) 2771-9370 District, Taipei City Zhongshan North 1F, No. 9 and 1F, No. 9-1, Section 2, Zhongshan North (02) 2581-4070 Road Branch Road, Zhongshan District, Taipei City 1F, No. 188, Zhongcheng Road, Shilin District, Taipei Zhongcheng Branch (02) 2833-5867 City Jilin Branch 1F, No. 27, Jilin Road, Zhongshan District, Taipei City (02) 2531-3938 1F, No. 42-1, Section 1, Zhongyang North Road, Beitou Zhongyang Branch (02) 2896-0937 District, Taipei City 1F and 2F, No. 140, Linsen North Road, Zhongshan Linsen Branch (02) 2581-8390 District, Taipei City 1F, No. 552, Guangfu South Road, Daan District, Taipei Guangfu Branch (02) 2701-3321 City

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Name Address Telephone: 1F, No. 202, Section 4, Chenggong Road, Neihu Neihu Branch (02) 8792-2570 District, Taipei City 1F, No. 19-8, Sanchong Road, Nangang District, Taipei Nangang Branch (02) 2655-1873 City 1F and 2F, No. 199-1, Zhulin Road, Yonghe District, Zhulin Branch (02) 8927-4351 New Taipei City 1F, No.71 and 73, Zhongcheng Road, Yonghe District, Zhiguang Branch (02) 8668-9580 New Taipei City Keelung Renren 1F and 2F, No. 216, Renren 2nd Road, Yutian, Renai (02) 2429-2723 Branch District, Keelung City 1F, No. 177, Zhengyi North Road, Sanchong District, Zhengyi Branch (02) 2971-4468 New Taipei City Zhongshan North 1F, No. 76, Section 2, Zhongshan North Road, (02) 2531-7881 Road Second Branch Zhongshan District, Taipei City Jixiang Branch 1F, 59 Jixiang Road, Songshan District, Taipei City (02) 2749-2192 1F, No. 586, Beian Road, Zhongshan District, Taipei Beian Branch (02) 8509-7815 City Hsinchu Chinghua 1F and 2F, No. 396, Section 2, Guangfu Road, Jungong (03) 572-5083 Branch Village, Hsinchu City 1F, No. 1, Alley 7, Lane 113, Section 3, Minsheng East Xihua Branch (02) 2546-8362 Road, Songshan District, Taipei City 1F, No. 191, Jingxing Road, Wenshan District, Taipei Jingxing Branch (02)8932-1156 City Zhongxiao Second 1F, No. 132, Section 2, Zhongxiao East Road, (02) 2392-4364 Branch Zhongzheng District, Taipei City 1F, No. 63, Section 5, Chenggong Road, Neihu District, Kanglin Branch (02) 2633-8221 Taipei Danshui Zhuwei 1F and 2F, No.1, Zhuwei Minzu Road, Danshui District, (02) 8809-7012 Branch New Taipei City 1F, No. 2, No. 156, Songjiang Road, Zhongshan Songjiang Branch (02) 2562-6855 District, Taipei City Tianmu East Road 1F, No. 21 Tianmu East Road, Shilin District, Taipei (02) 2874-5970 Branch City 1F, No. 38, Gongyuan Road, Zhongzheng District, Gongyuan Branch (02) 2382-5729 Taipei 1F, No. 120, Zhongshan Road, Zhongshan Village, Zhongli Branch (03) 426-2473 Zhongli District, Taoyuan City 1F, No. 1, Lane 155, Dunhua North Road, Songshan Dunbei Branch (02) 2514-9424 District, Taipei City Taichung Zhonggang 1F, No. 300, Section 1, Zhonggang Road, West District, (04) 2329-6813 Branch Taichung City Tainan Jiankang 1F, No. 173, Section 1, Jiankang Road, South District, (06) 213-4635 Branch Tainan City Tainan Chenggong 1F and 2F, No. 21 and 21-1, Chenggong Road, Zhong (06) 222-3517 Branch District, Tainan City Taichung Daye 1F, No. 182, Daye Road, Nanxun District, Taichung (04) 2310-1593 Branch City Taoyuan Hsinfu No 472, Zhongshan Road, Guangxin Village, Taoyuan (03) 331-5415 Branch District, Taoyuan City Nangang Kuenyang 1F, No. 444, Section 6, Zhongxiao East Road, Nangang (02) 2654-8153 Branch District, Taipei City 1F and 2F, No. 170, Section 3, Muxin Road, Wenshan Muxin Branch (02) 2234-9426 District, Taipei City Minquan East Road 1F, No. 5, Sec. 3, Minquan East Road, Songshan (02) 2515-7086 Branch District, Taipei City - 102 -

Name Address Telephone: 1F, No. 233 and No. 235, Section 3, Roosevelt Road, Roosevelt Branch (02) 3365-2482 Daan District, Taipei City Danshui Wanxi 1st Floor, No. 35 Zhongzheng East Road, Danshui (02) 2626-1487 Branch District, New Taipei City Yonghe Dingxi 1F, No. 2, No. 239, Section 2, Yonghe Road, Yonghe (02) 2926-7265 Branch District, New Taipei City Banqiao Guanqian 1F, No. 60, Guanqian East Road, Banqiao District, New (02) 8964-1324 Branch Taipei City 1F, No. 291 and No. 293, Zhongzheng Road, Luzhu Taoyuan Nankan (03) 312-2306 District, Taoyuan City Fuxing South Road 1F, No. 47, Lane 151, Section 2, Fuxing South Road, (02) 2705-8524 Branch Daan District, Taipei City Xingzhuang Wuquan 1F, No. 42, Wuquan 1st Road, Xinzhuang District, New (02) 2299-2263 Branch Taipei City Kaohsiung Yocheng 1F, No. 612, Youchang Street, Goucheng Village, (07) 364-1361 Branch Nanxun District, Kaohsiung City Taipei Chongqing 1F, No. 271, Section 3, Chongqing North Road, Datong (02) 2598-3446 Branch District, Taipei City Taichung Xueshi 1F, 300 Xueshi Road, North District, Taichung City (04) 2235-6576 Branch 1F, No. 171, Section 1, Xintai 5th Road, Xizhi District, Xizhi Taiwu Branch (02) 2691-9967 New Taipei City Xinzhuang 1F, No. 256, Zhongping Road, Xinzhuang District, New (02) 2996-0737 Zhongping Branch Taipei City Banqiao Xinpu 1F, No. 302, Section 1, Wenhua Road, Banqiao District, (02) 8251-3892 Branch New Taipei City 1F, No. 451-1, Jingguo Road, Taoyuan District, Taoyuan Jingguo (03) 357-9437 Taoyuan City 1F No. 547, Zhongshan Road, Zichi Village, West Chiayi Branch (05) 224-9576 District, Chiayi City 1F, No. 793, Section 1, Zhongshan Road, Zhongshan, Yuanlin Branch (04) 837-0477 Yuanlin Town, Changhua County 1F, No. 1, Kongmen Road, Changhua City, Changhua Changhua Branch (04) 728-8670 County 1F, No. 82 and 84, National Road, Pingtung City, Pingtung Branch (08) 733-9521 Pingtung County 1F, No. 629, Section 5, Zhongxiao East Road, Songshan Songshan Branch (02) 8785-2550 District, Taipei City 1F, No. 52, Wufu 3rd Road, Qianjin District, Kaohsiung Daliqian Branch (07) 221-2037 City Yonghe Yongan 1F, 463 Zhonghe Road, Yonghe District, New Taipei (02) 2921-4334 Branch City Xinzhuang 1F, No. 319 Zhonggang Road, Xinzhuang District, New (02) 2996-6948 Zhonggang Branch Taipei City 1F, No. 44, Section 1, Nanchang Road, Zhongzheng Nanchang Branch (02) 2394-4845 District, Taipei City Taichung Wenxin 1F, No. 310, Section 3, Wenxin Road, Xituan District, (04) 2315-4056 Branch Taichung City Tainan Chongxue 1F, No. 94, Chongxue Road, Chongxue Village, East (06) 335-2882 Branch District, Tainan City 1F, No. 100, Lane 39, Section 1, Shipai Road, Beitou Shipai Park Branch (02) 2820-6646 District, Taipei City Kaohsiung 1F, No. 122, Zhongzheng 1st Road, Lingya District, (07) 716-0246 Zhongzheng Branch Kaohsiung City Chongqing South 1F, No. 125 and No. 127, Section 1, Chongqing South (02) 2388-7994 Road Branch Road, Zhongzheng District, Taipei City - 103 -

Name Address Telephone: Minsheng Second 1F and 2F, No.184, Section 5, Minsheng East Road, (02) 2765-6127 Branch Songshan District, Taipei City B1, No. 37, Lane 151, Section 4, Renai Road, Taipei Mingyao Branch (02) 2771-2769 City Minquan West Road 1Fr, No. 25, Minquan West Road, Taipei City (02) 2595-8139 Branch 1F, No. 42, Cingnian Road, Wanhua District, Taipei Cingnian Branch (02) 2305-5352 City Nangang Second 2F-9, No. 3, Yuanchu Street, Taipei City (02) 2785-8441 Branch Shuanglian Branch 1F, No.77, Minsheng West Road, Taipei City (02) 2557-4822 Heping East Road No. 278, Section 1, Heping East Road, Taipei City (02) 3365-3341 Branch No. 59, Lane 81, Section 2, Dunhua South Road, Taipei Dunnan Branch (02) 2708-0561 City Fulin Branch 1F, No. 189, Fulin Road, Shilin District, Taipei City (02) 2832-2056 Hsinchu Zhongzheng 1F and 2F, No. 92, Zhongzheng Road, Yudong District, (03) 524-6947 Branch Hsinchu City 1F and 2F, No. 80, Section 1, Zhonghua Road, Taipei Zhonghua Branch (02) 2371-1572 City Shimao Branch No. 22, Section 2, Keelung Road, Taipei City (02) 8786-7892 No. 187 and No. 187-1, Section 2, Shuangshi Road, Shuangshi Branch (02) 2254-0992 Banqiao District, New Taipei City Highspeed Rail No. 6, Section 1, Gaotie North Road, Zhongmu District, (03) 261-1200 Taoyuan Branch Taoyuan City Highspeed Rail No. 6, Gaotie 7th Road, Zhubei City, Hsinchu County (03) 611-1600 Hsinchu Branch Highspeed Rail No. 8, Sanlinzhanchu 2nd Road, Sanhe Village, Wun (04) 3600-9039 Taichung Branch District, Taichung City Highspeed Rail No. 168, Gaotie West Road, Taiao Village, Taibao City, (05) 310-6008 Chiayi Branch Chiayi County Highspeed Rail No. 100, Guiren Avenue, Shalun Village, Guiren (06) 600-8805 Tainan Branch District, Tainan City Kaohsiung Zuoying No. 105, Gaotie Road, Zuoying District, Kaohsiung (07) 960-7997 Branch City No. 730, Section 6, Zhongshan North Road, Yulu Shidong Branch (02) 2876-7476 Village, Shilin District, Taipei City No. 1, Lane5, Xinxing Road, Longjing District, Donghai Branch (04) 2652-5171 Taichung City Kaohsiung Ziyou 1F and 2F, No. 351 and 1F, No. 353, Ziyou 2nd Rd., (07) 550-6809 Branch Zuoying Dist., Kaohsiung City Sanchong Chongxin No. 104, Section 1, Chongxin Road, Sanchong District, (02) 2976-9910 Branch New Taipei City Kanghua Branch 1F, No. 274, Songsongjiang Road, Taipei City (02) 2531-0561 Xindian District 1F, No. 131 and No. 131-1, Section 1, Beixin Road, (02) 2917-9642 Office Branch Xindian District, New Taipei City Nangang Exhibition No.1, Jingmao 2nd Road, Nangang District, Taipei City (02) 2783-4138 Hall Branch No. 25, 27, 29 and 31, Jiuhe Street, Zhongli District, Zhongli Jiuhe Branch (03) 280-7942 Taoyuan City Nandong Branch 1F, No. 116, Section 3, Nanjing East Road, Taipei City (02) 2508-0365 Zhubei Hsinzheng 1F, No. 147, Zhengjiu Road, Zhubei Road, Hsinchu (03) 558-6139 - 104 -

Name Address Telephone: Branch County Linkou Fuxing 1F and 2F, No. 156, Fuxing 1st Road, Guishan District, (03) 318-7214 Branch Taoyuan City 1F, 80 Zhongzheng Road, Fengyuan District, Taichung Fengyuan Branch (04) 2515-8276 City Sandao Temple 1F, No. 178, Section 1, Zhongxiao East Road, (02) 2351-2809 Branch Zhongzheng District, Taipei City Sandao Temple B1, No. 178, Section 1, Zhongxiao East Road, (02) 2351-2809 Second Branch Zhongzheng District, Taipei City Tainan Dongning No. 59, Dongning Road, East District, Tainan City (06) 209-4600 Branch Zhongli Huanzhong No. 286 and 288, Section 2, Huanzhong East Road, (03) 465-8063 Branch Zhongli District, Taoyuan City Gezhi Branch No. 59, Gezhi Road, Shishilin District, Taipei City (02) 2861-6238 Taoyuan Art and 1F, No. 1121, Zhongzheng Road, Taoyuan District, (03) 356-4005 Cultural Plaza Branch Taoyuan City Taichung Gongyi No. 497, Section 2, Gongyi Road, Weinan District, (04) 2251-4842 Branch Taichung City Naihu Yatai Branch No. 80, Ruihu Street,i Neihu District, Taipei City (02) 2657-4650 No. 119 and 121, Zhongzheng Road, Neighborhood 5, Longtan Branch (03) 489-9564 Zhongshan Village, Longtan District, Taoyuan City Minquan Linsen 1F and 2F, No. 76, 2F-1, No. 76 and 1F, No. 78, Section (02) 2562-7057 Branch 1, Minquan East Road, Zhongshan District, Taipei City Luzhou Evergreen No. 21, Changrong Road, Luzhou District, New Taipei (02) 2848-8020 Branch City No. 318, 320 and 2F, No. 320, Jingxin Street, Zhonghe Nanshigiao Branch (02) 2940-8956 District, New Taipei City No. 45, Minquan Road, Xindian District, New Taipei Dapinglin Branch (02) 8665-4643 City 1F, No. 102, Section 1, Zhongshan Road, Shulin Shulin Branch (02) 2684-5428 District, New Taipei City No. 712, 716 and 722, Xuecheng Road, Shulin District, Gezhi Branch (02) 2680-0481 New Taipei City Beitou Guangming 1F and 2F, No. 212, Guangming Road, Beitou District, (02) 2892-4254 Branch Taipei City No. 34, Lane 513, Ruiguang Road, Neihu District, Ruiguang Branch (02) 2658-7224 Taipei City Douliu Branch 2F, No. 13, Datong Road, Douliu City, Yunlin County (05) 537-0849 Nanjing Guangfu No. 27, 29 and 27-2, 29-2, Section 5, Nanjing Road, (02) 3765-3436 Branch Songshan District, Taipei City No. 195, Section 4, Zhongxing Road, Zhudong Town, ITRI Branch (03) 591-0438 Hsinchu County Taichung Chongde No. 326, Section 2, Chongde Road, Beibei District, (04) 2241-3850 Second Branch Taichung City Taichung Yongchun 1F and 2F, No. 820, Yongchun East Road, Nanxun (04) 2380-3655 Branch District, Taichung City No. 71, Section 2, Zhinan Road, Wenshan District, NCCU Zhinan Branch (02) 8661-7124 Taipei City Shih Chien University 1F, No. 59, Dazhi Street, Zhongshan District, Taipei (02) 8509-3529 Branch City Hsinchu Guanxin 1F, No. 51, Guanxin Road, Hsinchu City (03) 579-4822 Branch

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Name Address Telephone: Wuxing Street Branch No. 243, Wuxing Street, Xinyi District, Taipei City (02) 2729-4742 Taichung Fuxing 1F and 2F, No. 439, Section 1, Fuxing Road, Southern (04) 2260-5021 Branch District, Taichung City Xinyi Tonghua 1F, No. 304, Section 4, Xinyi Road, Daan District, (02) 2754-2189 Branch Taipei City Neihu Gangxian 1F and 2F, No. 637, Section 1, Neihu Road, Neihu (02) 2627-8733 Branch District, Taipei City 1F and 2F, No. 31, Zhulin Road, Linkou District, New Linkou Zhulin Branch (02) 2603-2594 Taipei City Tucheng Jincheng 1F, No.58, Section 3, Jincheng Road, Tucheng District, (02) 2264-1152 Branch New Taipei City Fengshan Qingnian No. 317-1, Section 2, Qingnian Road, Fengshan (07) 767-6824 Branch District, Kaohsiung City Tucheng Yongning 1F and 2F, No. 84 and 86, Section 3, Central Road, (02) 2269-2982 Branch Tucheng District, New Taipei City Sanchong Hsuhui 1F and 2F, No. 408, Section 4, Sanhe Road, Sanchong (02) 8287-3250 Branch District, New Taipei City Taichunggang No. 116-5 and 116-6, Section 3, Taichunggang Road, (04) 2463-9753 Chengchin Branch Xitun District, Taichung City

(3) Main products and consolidated operating percentages thereof:

Unit: In Thousands NTD; % 2018 2019 Year Amount of Percentage Amount of Percentage Item stocks (%) stocks (%) Main meals 2,596,594 49.44 2,703,846 49.30 Snacks 1,193,057 22.72 1,296,749 23.64 Soups and drinks 1,260,596 24.00 1,272,151 23.20 Others 201,857 3.84 211,746 3.86 Total 5,252,104 100.00 5,484,492 100.00

(4) Present products of the Company: The business model of the Company is to provide various types of meals of hamburgers, hot dogs, sandwiches, salads, desserts and soups, drinks, etc. Presently, the product categories and main product items manufactured and provided are as follows: Product type Key products Main meals Hamburger, rice burger, hot dog, sandwich, cakes...etc. Snacks Nuggets, fried chicken, fries, salad, konnyaku, deserts, ice

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cream ...etc. Soups and Hot drinks, cold drinks, juice, milk, soup, coffee...etc. drinks Others Gift box, souvenir, MOS card...etc.

(5) New products for recent development launch and project development

Products are essential criteria to brand image, and the lifetime of products are the keystone of the brand. Each year, the Company establishes meal product development and launch plans, and sequentially launches new products timely and seasonally, in light of maintaining the richness and diversity of meals, such that customers are able to taste fresh flavors.

Owing to the contribution of the product development team, the Company was able to introduce many new products in 2019 including: Mains and Breakfast - seafood burger, truffle wagyu burger, seafood tempura burger, teriyaki egg burger, lemongrass tomato chicken and seafood burger, shrimp tempura burger, premium wagyu burger, burdock seafood burger, turkey burger, Italian smoked beef burger, chicken burger with café de Paris sauce, carbonara omelette burger and ratatouille egg burger; Snacks - sauced fries, shrimp cake, squid chicken hashbrown, caramel mousse, grapefruit konnyaku, mango konnyaku, honey apple konnyaku, MOS cheese stick and pound cake; Drinks - strawberry orange bubble drink, berry konnyaku (ice tea/soda), pineapple kiwi konnyaku (ice tea/soda), cold brew lemon green tea, brown sugar date tea, lemon-infused MOS ice coffee, brown sugar series, MOS cafe latte and MOS tea au lait; and products featuring Taiwan’s local ingredients such as purple sweet potato pie, green tea red bean pie, rice mousse and Taiwan Alishan Coffee. In response to the worldwide “vegetarian” and “sustainability” movements, the Company moved ahead of the fast food industry and launched MOS Burger with Beyond Meat and MOS Natsumi with Beyond Meat to satisfy the needs of vegetarians and cater to the environment at the same time. To cope with and satisfy greater expectation of customers, the Company is heading toward the following direction to develop new concepts of meals and products: ①Main meals- Select and use current seasonal fresh ingredients, localize traceable product selection, select ingredients with balanced health and nutrients, strengthen Taiwan local ingredients (rice, traceable vegetables, and fruits), development of relevant meals and products of Taiwanese or Japanese

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traditional flavors integrated with living culture, and the launch period is 1~2 months as one session. ②Snacks - Different fried snacks combination, sweets products, seasonal salads meals, etc, and strengthen and cultivate toward the concept of healthy and light for development. ③Soups and drinks - development of flavored coffees, ice and flavored summer healthy cold drinks, hot drinks and delicious winter soups. ④Others - Holiday gift box (traditional holidays, including Chinese New Year, Dragon-boat festival, Moon festival, Christmas, etc), general gifts and portable gifts.

(II) Industry Overview (1) Industry Current Status and Development Due to the trend and impact of the change of the social environment, increase of general public income, great number of females entering workplaces and greater consumer emphasis on recreation, eat-outs have become the main trend for a lot of office workers or students, and some even have their night snacks outside as well. In addition, as the population of each household in the region of Taiwan decreases year after year, small families often adopt the method of eat-out meals for the purpose of convenience. Consequently, the population of eat-outs is increasing continuously and is indirectly driving the rapid development of the present eat-out market. According to commercial revenue data published by the Department of Statistics, Ministry of Economic Affairs, for the last 3 years (Table 1), the retail and restaurant segments continued to grow throughout 2019, with the restaurant segment reporting a substantial increase of NT$338.5 billion in 2019 over 2018, bringing total revenue to a record-high level. Table 1. Commercial revenue trend statistical table Unit: In hundreds of million NTD % Year/Item 2017 2018 2019

Growth Growth Growth Revenue Revenue Revenue Business rate rate rate type Wholesale 100,202 5.0 103,788 3.6 102,495 -2.2 Retail 41,451 1.2 42,765 3.2 38,523 3.1 Catering 4,523 2.9 4,731 4.6 8,116 4.4 Source: Department of Statistics, MOEA (2019~2017)

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In view of the revenue performance of the catering industry over the past decade, according to the statistical data of the Department of Statistics, MOEA (Table 2), since the end of 2007, due to the financial crisis caused by the secondary mortgages in the US, global economic development was significantly damaged, and Taiwan was also affected such that for five consecutive quarters, the GDP in Taiwan had shown decay. In addition, in 2009, according to the information of the Directorate-General of Budgets, Accounting, and Statistics, Executive Yuan, the annual average unemployment rate also reached the population of 639,000 people, a record high from the past, and the main industries being affected directly were related to the domestic demand markets. This was mainly due to the decrease of the consumption willingness of consumers, such that the Taiwanese government adopted policies and strategies to improve the domestic demand market and issued consumption coupons and opened tourism from Mainland China in order to stimulate purchases in the domestic demand market. Therefore, from the statistical data, the catering industry benefited from the policies for consumption, and the overall revenue in 2008 demonstrated the growth trend with a continuous increase to reach NT$ 5.7 billion. In recent years, due to changes in the economic structure and living style, the population of eat-outs and the number of tourists visiting Taiwan are increasing gradually, and the general public’s recreation trend is becoming popular, along with the new brands and continuous expansion of stores by chain catering businesses, as well as food culture marketing. Consequently, the revenue of the catering industry has demonstrated a stable growth trend, and the catering industry revenue in 2019 reached NT$811.6 billion, a record high from the past years, with an annual increase of 4.4%. Table 2. Catering industry revenue Unit: In Thousand Million NTD % Catering Beverage Year Catering Others industry stores 2009 3,218 2,717 358 143 2010 3,448 2,916 379 152 2011 3,721 3,167 397 157 2012 3,855 3,285 409 160 2013 3,915 3,308 442 165 2014 4,129 3,492 459 179 2015 4,241 3,587 473 181 2016 4,394 3,720 491 183 2017 4,523 3,829 509 185 2018 4,731 4,004 538 190

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Catering Beverage Year Catering Others industry stores 2019 8,116 6,695 994 426 Source of information: Department of Statistics, MOEA The Company provides the service of “Fastfood Catering”. In addition to providing a variety of meal selections to customers, the Company also strengthens the development of meal product differentiation and distinction, such that the products of the Company are different from conventional American fast food and eat-out products. To satisfy the customers’ demand for convenient and fast meals, the Company also upholds the principles of freshness, healthy, and natural. The Company is devoted to providing a balanced diet to customers in order to implement the spirit and business philosophy sought by the brand. Among the fast food catering industry’s severe competition, the Company is able to establish the brand characteristics of “healthy and Safe”, such that the Company has successfully established the brand competition advantage. In addition, as the consumers’ awareness in healthy diet increases, health catering will have a high development potential in the future. (2) Correlation among the upstream, midstream, and downstream in the industry Upstream Midstream Downstream Raw food materials and Research/development Various fast food ingredients, agricultural and manufacturing of chain sales channels and fishery products, food and drinks packaging material supply Such as: rice cake, bread, Such as: rice, flour, meat, toast, nuggets, eggs, vegetables, various sources, coffee beans, dairy coffee products, relevant packaging materials, etc.

(3) Various development trends of products The change of consumption trends is closely related to the strategy of the business development of the industry. After the economic development, people emphasize the pursuit of natural health and food safety. Consequently, the meal product development also heads toward the development direction of health and safety. In recent years, the meal product development of the fast food industry and the following trends need to be observed closely: ①Emphasis on food health and safety is the priority: In recent years, the food health and safety issues, including the issues of - 110 -

melamine toxic milk powder, infected pork, mad cow disease, clenbuterol and deteriorated oil and plasticizer, while having doubts on ”where the beef comes from”, “whether or not the pork is safe”, “oil is safe”, etc, they tend to choose to stop their consumption, such that the food industry suffers from losses due to declining sales. How to overcome the doubts of consumers and to increase their confidence in consumption will be key subjects to catering business operators. ②Natural and health diets are gaining popularity: As modern people seek speed and convenience, they also tend to focus on the concept of nutrients and health, etc, such that the demand for products that are of high fiber, low fat, low salt, and organic food, as well as vegetarian food increases. Consumers also care about the nutrients of meals more. ③High acceptance of foreign tasting products: Under the influence of the factors of international trends, tourism popularity and network information, etc, consumers have a higher acceptance to foreign cuisines, and the taste of domestic consumers also become more diverse. Fastfood operators launch various meals of foreign taste for consumers’ selection. ④Closer integration with culture Diet is an important part of living culture, and if the products provided by catering operators match with the lives of consumers, feedback from consumers can be received. The use of local food ingredients and memorable tastes, etc, can induce resonance from consumers. Today, to cope with the “service economy” industrial ecology of the domestic demand market, in terms of the service value expected by consumers, and from the induced consuming power and increase of consumption willingness, for the future development of the domestic chain fast food catering industry, the following consumption trends shall be monitored: A. Strong demand for low prices The consumers’ demand for low price shall be continuously considered, and for “diet”, just like daily needs, price is a necessary consideration. A lot of discount activities have been generated under such demand, such as the breakfast meal at coin price, lunch set with long-term discount, and long-term discount at any period of time, etc. B. Active social networking has become the consumption information platform Due to the rapid development and usage of smartphones, social networks have become an important information platform. The fan clubs of brand management continue to grow, and their importance and readiness have surpassed the traditional company website. Information on consumers has also shifted to social

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networks. C. Attention to service detail Due to the demand for speed, service details may be missed out. To allow consumers to notice the care of personnel service again, quality service can provide such caring feel to customers, which also becomes an important lesson to the fastfood catering industry. D. Recognition of brand value In addition to favorite meals, another focus in the selection of consumers is “brand recognition”. When the image and demand of the consumption brand match with consumers, the distance between the consumers and the brand can be shortened, such that a sense of recognition can be generated, which is further reflected in the consumption choice. The western style fast food catering service industry is facing severe competition from various catering businesses, and it values personnel training, strengthening product competitiveness, focusing on food health and safety, fulfillment of corporate citizen responsibility, integration with the society, establishment of brand trust, and strengthening of brand image, thereby satisfying the expectation of consumers on the brand, in order to allow an enterprise to be at a leading position. (4) Various competitions of products The overall revenue growth of the fast food industry indicates that meals with a competitive price in the fast food industry are still popular under the price consideration of consumers. However, the competition among fast food catering operators is still severe. Facing severe competition in the market, the Company still upholds the brand spirit without engaging in market price reduction competition, but focuses on the improvement of product quality, development of new products, and flexible adjustment in product combinations, in order to provide more diverse choices to customers. In addition, the Company is devoted to the control of food ingredient selection and quality in order to allow customers to have a secure and safe diet, thereby maintaining the competition advantage. Furthermore, in terms of the management of the dining environment, the Company seeks “Fast Casual” demand with the use of natural and warm themes to separate from the market. In addition, the stores also provide comfortable sofas, personal seats, etc, in order to allow customers to feel relaxed and warm about the dining environment. The Company provides innovative and caring services to satisfy modern consumption awareness of “Slow diet, Active living” such that the Company is able to successfully gain a market share in the fast food industry.

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(III) Technology, research, and development status (1) Technology level, research, and development of business operation The development of products focuses on health, freshness and delicacies, quality selected ingredients, mainstream trends, and commitment to a fresh, healthy, and delicious meal for each taste in order to satisfy the consumer market demands. The use of seasonal ingredients, traceable products, strengthened local ingredients in Taiwan, and the development of themes or cultural integration-related products, in order to attract consumer groups. The Company assigns outstanding employees to participate in overseas training in order to learn about relevant products, service-related knowledge, and experiences, thereby providing references related to service technology and product development of the Company. In addition, the Company also assigns personnel to conduct domestic and foreign market surveys irregularly in order to survey the market consumption trends, relevant information on the products of the same industry and software/hardware, etc, in order to be used as a reference for the internal development improvement of the Company. Regarding the research and development process, the Company confirms the research and development directions for next year annually. The product research and development personnel propose innovative concepts and discuss with relevant suppliers, including product concept, specification, ingredient use, cooking method, sanitary quality demand and cost range, etc, followed by the suppliers performing sample development for the required food. After the sample is completed, the research and development personnel perform combination and flavor tests, where the concept development product ratio is 9 (the Company): 1 (contractor). The external main assisting units and suppliers, including the Magic-Food industry Corporation, F company (pastry), C company (pastry), D company (pastry), E company (pastry), G company (sources), E company (sources), H company (sources), E company (desert, salads and flavored drinks), V company (soups) and L company (fresh juice and sweets), B company (fresh juice and sweets) (2) Annual research and development expenses for the most recent five years Unit: In Thousands NTD % Year 2015 2016 2017 2018 2019 Item Research and development 5,666 5,897 5,765 6,024 6,216 expenses Consolidated net operating 4,424,550 4,663,585 4,919,312 5,252,104 5,484,492 revenue Percentage of research and 0.13% 0.13% 0.12% 0.11% 0.11

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development expenses to consolidated revenue

(3) Technology or product developed successfully The specific important product development and outcomes of the Company in the most recent five years are as follows: Product Year Item type Hokkaido croquette, smoked beef burger, smoked beef sandwich, tartar source fish burger, Australian beef burger, Main pizza hot dog, Japanese beef seafood burger, tomato beef meals burger, Thai style chicken burger, mango curry chicken burger, Osaka seafood burger, Korean BBQ seafood burger, fried shrimp seafood burger. Coffee chocolate mousse, green tea mousse, pumpkin brulee, MOS 2014 Snacks caramel brulee, tiramisu, dakwaz, lemon citronella nuggets, Japanese pork salad, strawberry konnyaku. Original sour soda, mango soda, lychee konnyaku ice tea, lychee Soups and bubble drink, raspberry bubble drink, apple hot tea, fresh flower drinks tea, pork and vegetable soup, hot green tee cappuccino. 2015 annual magazine, sharing bag for two, 4 MOS cards, desert Others gift box, insulation cups (red/white). Fried shrimp seafood burger (Chinese deep fried flavor), sakura shrimp seafood burger, Japanese sweet beef burger, sesame pork egg burger, French stew hot dog, Italian pizza hot dog, smoke chicken burger, apple turkey sandwich, fresh fruit beef seafood Main burger, berry bee burger, orange pork burger, Japanese beef egg meals burger, green curry chicken seafood burger, red salsa chicken burger, grilled halibut seafood burger, Osaka seafood burger, fried 2015 shrimp burger, cheese pork burger, mushroom beef burger, cheese turkey focaccia, stew mushroom and egg seafood burger. Fish nuggets, green tea red bean pie, fired sweet potato, chicken nugget with sweet potato set, strawberry mousse, milk rice pudding, mango mousse, pomegranate konnyaku, Hokkaido sesame sweet Snacks potato croquette, sausage with bone, MOS peach turkey salad, black/white rice cake, chestnut mont blanc, Brittany cake, square hashbrown, MOS tiramisu, orange konnyaku.

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Product Year Item type Fresh flower tea, floating strawberry milk tea, strawberry red tea, floating coco au lait, floating green tea au lait, mango pineapple Soups and konnyaku ice tea/bubble drink, black currant konnyaku iced drinks tea/bubble drink, MOS orange combinational juice, toffee nut latte, peach hot tea, pork and vegetable soup, cream and clamp soup. Corn soup coco house, MOS Card sakura version, MOS Card hibiscus flower version, Japanese source, MOS peach jam, MOS Others pillow, MOS notes, MOS coffee bean, coffee mugs, sweet bubble wine. Spring beef burger, sweet beef seafood burger, morning chicken burger- cranberry flavor, MOS beef burger, beef spicy MOS burger, beef MOS cheese burger, beef spicy MOS cheese burger, fresh vegetable beef burger, tomato beef burger, curry hot dog-Keema source, vegetable hot dog - lemon yogurt flavor, terriyaki plum Main pork burger, orange chicken focaccia, BBQ chicken seafood burger, meals vegetable sweet chicken burger, sweet beef burger, bamboo shoot sweet chicken burger, southern Asian chicken burger, Tandoori chicken seafood burger, Tandoori chicken burger, hand-made sandwich (smoked beef), spicy taco burger, orange Osaka seafood burger, orange sesame pork burger, MOS turkey burger, miso chicken burger, Japanese source pork burger. Fried sweet potato, chicken nugget and sweet potato set, strawberry yogurt mousse, MOS pudding, black/white mousse tiramisu, 2016 Snacks Mother’s Day cake - MOS tiramisu cake, smoked beef salad, passion fruit konnyaku, red tea dazi sweet, MOS vegetable bar, black sugar soy milk mousse. Strawberry yogurt bubble drink, Taiwanese tea, new MOS milk, passion fruit yogurt bubble drink, combinational berry yogurt Soups and bubble drink, passion fruit lemon konnyaku ice team, drinks combinational berry lemon konnyaku ice team, ice green team latte, Ireland quinoa nut latte (ice/hot), cream and clamp soup, pork and vegetable soup, orange fruit hot tea. MOS Card II, mobile card, spring almond roll gift box, green tea latte powder, Taiwan tea 15x, Japanese juice sherbet (grape, apple, Others peach), Korean black sugar cake powder, Kumamoto bear seaweed jar, Kumamoto bear fish powder, Kumamoto bear sesame cake, Hokkaido caramel brulee cheese cake, black chocolate fresh roll.

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Product Year Item type Chishang rice cake-pepper flavor, Chishang rice gift box, Luye oolong tea bags, pineapple mango ice, purple rice green tea ice, Kumamon notes, Kumamon handbag. Black golden seafood burger, lemon double beef burger, quinoa rice upgraded series, peach yogurt shrimp burger, spicy tomato source fried shrimp burger, passion fruit salsa shrimp burger, lemon tempura chicken burger, lemon orange chicken burger, green curry Main chicken seafood burger, lemon salmon burger, Osaka seafood meals burger, mushroom beef burger, apple chicken burger, garden beef burger, quinoa tuna egg burger, sweet potato pork burger, LOHAS French brownie, LOHAS French brunch, breakfast bacon burger, apple chicken burger, Taitung red quinoa series products, Taitung Luoshen sandwich. Hokkaido curry croquette, MOS meat sauce fries, chocolate peanut fries, quinoa sweet potato chicken salad, lemon spicy fries, lemon tartar square hash brown, garlic cheese fries, chocolate crispy pie, Snacks hand-made blueberry nut pudding, green tea babaluya, blueberry cheese, sweet berry mousse, Earl Grey brownie, hazelnut tiramisu, Kumamon tomato konnyaku. 100% fresh orange juice, MOS green tea latte/MOS coco latte, 2017 grapefruit/pineapple bubble drink, grapefruit/pineapple lemon aloe ice tea, peach/berry bubble drink, berry konnyaku ice tea, MOS grape juice, orange fruit hot tea, orange apple berry tea, iced/hot Soups and green tea latte, hot tea latte and ice milk tea, forest crispy au lait drinks coffee, sweet nut latte and sweet nut tea au lait, red berry mocha coffee and red berry tea au lait, pork and vegetable soup, porcini pumpkin soup, Taitung Luoshen bubble drink, yam purple rice sweet soup. Chishang rice cake-red quinoa flavor, Chishang rice-seaweed flavor, Chishang rice-purple rice flavor, Japanese juice sherbet (sweet orange), Hokkaido tiramisu cake, Kumamoto badge holder, MOS sea and mountain notes, MOS sea and mountain canvas bag, Others MOS sea and mountain mugs, Hualien Hegang tree organic shaddock, Taitung farmer fish paper, Taitung farmer Luoshen juice, Taitung farmer Luoshen jam, Taitung farmer association-enoki, Taitung farmer association-red quinoa, Taitung farmer association-millet, Taitung organic rice.

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Product Year Item type Bacon pork burger, red curry pork seafood burger, Jili apple beef burger, mentaiko salmon seafood burger, MOS Japanese seafood burger, Pizza hot dog, Italian pork burger, quinoa Italian port seafood burger, pork burger, lemon fruit chicken burger, quinoa Main yellow curry chicken seafood burger, tuna and squid seafood burger meals (original/wasabi), quinoa Korean BBQ seafood burger, quinoa Korean ginger seafood burger, turkey burger, chicken burger, MOS sweet beef seafood burger, teriyaki plum pork burger, apple pork burger, mushroom omelet burger, red bean cheese sandwich, sweet potato sandwich, beef sandwich. Jili cheese fries, tomato source cheese fries, MOS meat sauce fries, Japanese curry chicken nuggets, curry onion ring, chicken and sweet potato salad, Japanese pork and sweet potato salad, Hokkaido Snacks nut and pumpkin croquette, brick sweet potato, peach konnyaku, lychee konnyaku, chocolate lava cake, sakura mousse, chocolate 2018 brownie ball, purple sweet potato pie. Sakura raspberry bubble drink, island fruit ice tea, island fruit soda, ice quinoa coco, Taiwanese ice green tea (sugar-free), mango konnyaku ice tea, perilla bubble drink, perilla konnyaku ice tea, red Soups and quinoa coco, Kagoshima tea, Ceylon red tea, MOS hot fresh fruit drinks tea, hot coco, MOS special black tea au lait, tieguanyin milk tea, caramel popcorn latte coffee, caramel popcorn flower tea au lait, Peru coffee, hot brown sugar latte coffee, ice brown sugar konnyaku tea au lait, purple sweet soup, pork and vegetable soup. Taitung red quinoa bar, Taiwan red quinoa sweet potato egg roll, Taiwan red quinoa milk tea cookie, Kaozhi ice cream (grapefruit sherbet), Kaozhi ice cream (tea), Kaozhi ice cream (orange Others sherbet), MOS rice burger pillow, MOS warm blanket, MOS notes, MOS flipper, MOS shopping bag, color pencil drawing book, MOS folder. Seafood burger, truffle wagyu burger, seafood tempura burger, teriyaki egg burger, lychee yogurt chicken burger, lemongrass tomato chicken and seafood burger, pineapple tartar sauce chicken Main 2019 burger, shrimp tempura burger, BBQ chicken seafood burger, meals teriyaki seafood burger, lemon vanilla turkey burger, premium wagyu burger, burdock seafood burger, festive chicken bun, surf and turf burger, trio burger, chicken bun, MOS Burger with Beyond

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Product Year Item type Meat, MOS Natsumi with Beyond Meat, cod burger, turkey burger, MOS Natsumi with turkey, Italian smoked beef burger, chicken burger with café de Paris sauce, carbonara omelette burger, ratatouille egg burger, taro ham brown sugar toast. Fries with tomato sauce, MOS meat sauce fries, dual Japanese sauce fries, shrimp cake, squid chicken hashbrown, lemon pepper-salt Japanese chicken nuggets, lemon pepper-salt nuggets and fries, lemon pepper-salt onion ring, chicken tempura, green tea Snacks red bean pie, caramel mousse, rice mousse, grapefruit konnyaku, mango konnyaku, honey apple konnyaku, MOS cheese stick (original), MOS cheese stick (matcha), pound cake (English fruit), pound cake (chocolate). Strawberry orange bubble drink, berry konnyaku ice tea, berry konnyaku soda, pineapple kiwi konnyaku ice tea, pineapple kiwi soda, cold brew lemon green tea, pomelo ice tea, mango pearl milk, Soups and brown sugar pearl milk, brown sugar date tea, strawberry konnyaku drinks tea au lait, lemon-infused MOS ice coffee, brown sugar cafe latte (ice/hot), brown sugar tea au lait (ice/hot), MOS cafe latte, MOS tea au lait, Taiwan Alishan Coffee, minestrone soup. Taitung red quinoa sweet potato bar, Taiwanese rice cake - black sesame, MOS nuts, corn soup (packet), MOS instant noodle - Japanese fried chicken, Others MOS instant noodle - seafood flavor, Kaozhi ice cream (strawberry), Nagasaki castella, Aomori apple tea, MOS classic notes - mountain, MOS classic notes - sea, MOS classic notes - sun, MOS rice burger umbrella, MOS black tea bath towel.

(IV) Long-term and Short-term business development plans The business model of the Company is a catering service business. The existence of stores is for customers and all operations in the stores are for the purpose of providing the most optimum service to customers. It is our ultimate goal to provide joy and satisfaction to customers. We provide healthy, natural, fresh, and delicious products, as well as a comfortable dining environment with energy for customers. In addition, the Company also provides employment opportunities and makes contributions in the cultivation of catering service industry talents. We allow our partners to obtain happiness during their service and help to others, and also receive their personal pride and satisfaction at work while contributing individual effort to the - 118 -

society. The Company provides sincere service and delicious meals as the foundation of business operation, and the Company is committed to developing fresh meals beneficial to health, selects real and quality ingredients beneficial to bodily health, as well as using unique oriental flavor recipes in meal preparation, and integrating changes with western hamburgers to add oriental flavor in order to create an innovative hamburger flavor. In addition, the Company also places a great amount of vegetables into meals in order to achieve a balance in health and nutrients.

The long-term and short-term business development plans of the Company are described in the following respectively: (1) Short-term development plan ①Increase market share through ongoing store expansion and emphasis on store features for community interaction. Establish stores at key traffic junctions for express and simple food service to long-distance drivers. ②Improve meal serving speed, launch an APP (MOS ORDER), install a self-order machine and kitchen work station with the introduction of KD (Kitchen Display) in order to ensure delicious products and correct meal orders, shorten the waiting time of customers and improve customer satisfaction. ③ To cope with the increase in personnel and rental costs, to follow the Internet of Things trend, and to use digital network technology, the Company crosses into e-commerce and launches MOS LIVING in order to provide quality products to customers. ④Enhance multiple stage safety inspection, careful selection of food ingredients, further promote the production traceability system, in order to ensure quality and safety of food. The quality assurance unit of the Company performs periodic inspections at stores each month, and also proceeds to the supplier end to perform production line environment surveys, and strictly executes source management and autonomous management. In addition, the Company also cooperates with a third unit in inspection in order to ensure the safety of food ingredients and meals. ⑤Stable quality, providing meal product quality and service quality at a high level, freshly prepared meals onsite, delicious healthy and natural food, table serving meal service in order to be distinguished from other fast food catering operators. ⑥Strengthen the comfort of consumer space, allow customers to enjoy delicious hamburgers while providing a comfortable and relaxed atmosphere to customers in order to create stores with the sensation of a relaxing home for customers.

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⑦Focus on corporate governance and fulfilling the planning and promotion of corporate social responsibility, further strengthening and stabilizing business operations. ⑧Strengthen the assistance and support for development in the regions of China and Australia, establish a development foundation swiftly.

(2) Long-term development plan ①Develop unique and quality products with differentiation, create a high-quality brand image →Vision for leading health and new diets in Taiwan Health, nature, freshness and taste are the main focuses of the Company's product development effort. Using natural ingredients such as burdock (high fiber and low fat content) and konnyaku (low calorie) we have been gradually increasing vegetables and replacing the starch contents such as bread in our meals. A broad diversity of salads have also been introduced to meet the needs of different consumers. We make our beverages fresh on the spot, using fresh juice instead of concentrates that may be prone to preservatives. By introducing freshness, natural ingredients, low calories, and fiber into our meals, we hope to promote customers' awareness of balanced nutrition. We prepare food upon ordering for the best freshness, and in order to ensure the quality of the vegetable supply, the Company invested in the establishment of "An Shin Smart Farm" in 2019, where conditions of plant growth, such as temperature, humidity, sunlight and water, are fully controlled and monitored. This facility shields plants from environmental and seasonal impacts as well as potential toxicity, and is a giant step forward toward self-sustainable food production. → Expand the use of local food ingredients The Company is the first in the chain catering industry to introduce the production traceability system in order to ensure the process of food ingredients from cultivation, growth, to harvest. In other words, for the entire process from the farm to the dining table, the record of the food is traceable. The Company also introduces the systematic management system and establishes a quality audit system. As the first in the industry, the Company proceeds directly to the production site to collaborate with the production farmers in order to engage in contract methods to guarantee the benefits of farmers, to gain support from farmers in order to contribute effort to the promotion of local food ingredients in Taiwan.

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→Development of delicious products The Company is well-known for providing fresh, healthy, and uniquely flavored meals. The rice burgers or vegetable burgers with only 250 calories are meals with great differentiation in the market. The Company continuously provides quality meals and meals with innovative flavors such that MOS Burger has been able to lead the healthy trend of diet in fast food restaurants, and this is also the reason why customer are willing to spend a greater price at MOS Burger. The Company is able to completely satisfy customer feelings in terms of the psychological aspect and value. ②To cope with the Company’s demand for talents due to future continuous growth, the Company has expanded its educational training site. In 2012, the Company established the An-Shin College to cultivate domestic operation talents and talents for overseas stationing operation, etc, in order to cultivate a greater number of senior management and elite staff, thereby achieving corporate sustainable operation. ③Continue international development

→Multiple regional expansion in China The Company collaborates with Japanese MOS and develops the basis of a six-province-one-city strategy for entering the Chinese market. The short-term planning is to stabilize the development in six provinces and one city in order to deepen the local market development foundation. In the future, the Company and Japanese MOS will collaborate further to expand to other areas, provinces, and municipality in China. →In addition to the vast market in China and the development in Australia, the Company will collaborate with Japanese MOS in the development of new markets in other overseas countries in order to become an international catering group enterprise starting from Asia. ④Apply smart technology and big data analysis for improved service efficiency and precision marketing. Technological innovations will be incorporated into existing software and hardware for applications such as optimization of an MOS Order APP, launch of a 2nd generation MOS Card and virtual card, credit card top-up/payment online, ordering KIOSK and service robot. This new level of virtual and physical channel integration combined with big data analysis and use of smart technologies will ultimately enhance the customer service experience.

II. Market Profile and Production and Sales

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(I) Market analysis (1) Sales (providing) regions for main projects (services) of the Company Unit: In Thousands New Taiwan Dollars; % 2018 2019 Year Amount of Amount of Sales region % % stocks stocks Northern Taiwan 3,822,396 72.78 3,988,923 72.73 Central Taiwan 658,925 12.54 691,286 12.61 Southern Taiwan 570,774 10.87 599,158 10.92 Eastern Taiwan 79,015 1.50 85,344 1.56 Offshore island region 39,848 0.76 39,494 0.72 China region 81,146 1.55 80,287 1.46 Total 5,252,104 100.00 5,484,492 100.00

The main business of the Company is the fast food chain catering service, and the business model is to provide hamburgers, hot dogs, sandwiches, salads, sweets, and soups/drinks to general consumers, and currently the sales of products is targeted at domestic consumers. The store opening distribution is as shown in the regions listed in the following table. The northern region accounts for 72.37%, indicating that the average income level and consumption power of the general public in northern Taiwan is relatively higher, which is closely related to the scale of number of stores and revenue. In addition, the living style of the general public in urban areas are likely to accept new things and products. Northern Central Southern Eastern region region region region Offshore Region (Greater (Chiayi/Tainan/ Total (Taichung/Cha (Yilan/Huali island Taipei/Taoyuan/H Kaohsiung/Pingt nghua/Yunlin) en/Taitung) sinchu) ung) Store count 199 37 31 6 2 275 Weight (%) 72.37 13.45 11.27 2.18 0.73 100.00

Note: Data as of 2019/12/31 (2) Market share According to the “Catering Industry Revenue and Annual Increase Rate” provided by the Department of Statistics, MOEA, the total revenue for catering industry in 2019 is NT$811.6 billion, and the revenue of the Company in 2019 is NT$5.2 billion, accounting for approximately 0.64% of the market share. The Company operates 275 stores, representing 9.31% of the 2,954 western fast food chain stores currently available nationwide.

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(3) Supply status and growth of future markets With rapid economic growth in Taiwan, the GDP has also increased such that the living standard and consumption power of the general public has also increased. When consumers are determining the products for purchase, they not only consider the product’s physical quality but also the intangible service quality with greater emphasis. Often, service quality is an important factor for achieving customer satisfaction. The Company focuses on the aspects of “secure and safe, delicious and fresh, healthy and natural” in order to provide products that are healthy, natural, pure/clean, and delicious. The Company has been in the business of the fast food catering market for a long period of time, and the brand popularity is high. In addition, the meal and service quality have been recognized by consumers greatly. The revenue and profit of the Company has demonstrated stable growth year after year, the single region operating risk has been effectively mitigated, and the revenue and the market share of the Company has been improved. (4) Competitive niche The analysis of the competitive niche of the Company is as follows: ①Selection and use of quality food ingredients

The delicious meals provided by MOS Burger all use food ingredients rigorously controlled by the Company. The Company uses natural beef from New Zealand, and the characteristic of natural beef is that cows are not being treated with antibiotics or growth hormones, but only consume natural grass with healthy growth. From the process of feeding to meat cutting, high quality safety management is maintained. In addition, to support local agriculture in Taiwan, the Company further selects excellent food ingredients locally in Taiwan, such as: seasonal tomatoes, lettuce, etc, from Taichung City and Yulin County, and also introduces vegetable production traceability in order to track the source of food ingredients. In addition, consumers can also inquire about the food ingredient cultivation status online. Stores also periodically update today’s food ingredient status. For the popular rice burgers, excellent local rice in Taiwan is used, and national rice with a certification qualification and attached with a quality mark, etc, is used. MOS Burger is always committed to provide delicacies to consumers with healthy and safe food. ②Implement sanitary food and store management

Since 2011, the Company has established the food safety & inspection center, and the center has obtained the TAF certification. All of the inspection operation processes, quality control, inspection management, cleanness in the laboratory, as well as the educational training plan of the staff, etc, have been carefully planned and comply with the national laboratory common standard of ISO/IEC - 123 -

17025 requirements. The food safety and inspection center executes the food safety monitoring plans, and the main testing items can be divided into two main categories: ※Microorganism testing: total aerobic plate count/coliform group/escherichia coli in food and water, and the use of quick testing methods certified by AOAC to perform the staphylococcus aureus/salmonella tests. ※Chemical testing: Testing of total pesticide residue in vegetables, testing of clenbuterol in meat, and antibiotic residue testing. In addition, the Company also entrusts a fair third party unit to perform tests on the potential risk substances, such as: preservatives, heavy metals, animal chemicals, antibiotics, pesticides and plasticizers, etc, in order to ensure the health and safety of the products of MOS Burger. Furthermore, the Company also performs store sanitary management inspection and guidance, such that the dining environment sanitary and cleanness of customers are considered at all times. ③Diverse products, integrated western and oriental flavors

The rice burger uniquely developed by MOS is made through special processes with rice, to replace the bread traditionally used, and the rice burger is stuffed with special flavor meat or high-fiber burdock, as well as special sauce. The rice burger matches with the rice food culture in Asia and separates from the western fast food flavor market. Over the years, rice burger has gained popularity by the domestic consumers, and it is one of the most popular meals of MOS Burger. In addition, to cope with the consumer market demand and current trends, the Company often launches various new products and meals. The number of types of hamburgers from MOS Burger is the largest among the fast food providers. The Company provides diverse meals for consumers’ selection in order to satisfy the demands of different consumer age groups. ④The business model and dining environment are different from conventional fast food chain stores In the fast food chain store business focusing on the speed of meals, to expedite service to customers, most of the meals are prepared in advance for customers’ orders. However, at MOS Burger, customers can enjoy another type of dining pace, and the Company emphasizes “freshly made to order”, such that the meals handed over to customers are hot and fresh. In addition to the efforts in meals, the Company also provides a sense of warmth in the dining environment design. Stores use warm lighting and install wash basins in the seating area for customers’ convenient use. In addition, stores are also installed with newspaper - 124 -

and magazine sections, such that consumers are able to enjoy their meals and cultural reading, thereby creating a comfortable and relaxed feeling, which is clearly different from the fast food chain store operators in the market. (5) Favorable/unfavorable factors for development outlook and countermeasures ①Favorable factors

→Establish excellent brand image, gain consumers’ recognition The Company has alway prided itself on serving a diverse range of tasty meals and assuring customers in terms of food safety and health. In addition, the Company constantly strives to improve service quality out of respect for customers, and its dedication to deliver high value-added dining service has won recognition from consumers and is well-recognized in external surveys time and time again. →Increasing the popularity of smart mobile devices gives rise to delivery services Telecommunication technology has evolved to the point that everyone now owns at least one form of smart mobile device. It allows people to communicate with others, browse for information, watch videos, listen to music, make payments, book and order meals, navigate, invest, convene meetings, perform work activities, and even connect to people with common interests to create separate virtual lifestyles. Consumers’ growing habit of sharing things that are tasty, appealing, and fun in life have changed the restaurant industry and brought business’ attention not only for perfecting the overall dining experience, but to introduce food delivery service as well. The Company built its own team of food delivery service in 2019 and started by serving consumers within 1.5km of its store. Through the new platform, the Company hopes to reach new customers and identify potential areas for new stores that may carry the next wave of growth. →Launch of the 2nd generation MOS Card and introduction of payment and cloud applications The MOS Card I is a prepay type storage card issued by MOS Burger in Taiwan, and it is the first non-contact storage card in the fast food industry in Taiwan. The card is equipped with the card-holding security and fast checkout functions. On March 28, 2016, the Company launched the “MOS Card II”, which was the first in the fast food industry to provide the registration function and card loss service for new cards in order to secure the card-holding rights and benefits. “MOS Card mobile card” also integrates with the online registration and it is provided as a gift freely during the registration through mobile order - 125 -

APP, which is a pre-paid storage card without a physical card. Consumers can use such mobile cards through their mobile device interface to perform value storage, consumption, and to add value with a credit card. When the card is registered completely, the record function at the MOS Card section allows the inquiry of card balance, MOS points and consumption record. In addition, it also allows the advanced functions of the online payment, value storage, and credit card for value addition/deletion etc, such that the Company has stepped into the cloud digital smart business operation. Up to the end of March 2020, the accumulated number of MOS Cards issued has reached 1.47 million cards. For enhanced member relationship management, the Company will continue improving the usability of its APP and introducing member-exclusive campaigns such as an e-newsletter, birthday gift, new product discount, VIP privileges, exclusive concessions, and invoice registration lottery for stronger member attachment, and thereby increase both the frequency of visits and the amounts spent. →Launch of first MIT “Self-order machine” ahead of industry peers in Taiwan To seek faster and more convenient services to customers, at the end of November 2016, the Company installed two self-order machines with an “interactive interface” equipped with a “color LCD monitor” at the newly renovated Linsen store in order to implement service with the latest technology. Different from conventional tablet meal ordering, the Company introduced a real self-order system, and it uses the simplest UI (User Interface Model) in order to allow customers to select with finger touches in order to order desired products through simple touches. After the expansion of the introduction of self-ordering machines, it is expected that the order and waiting time for customers can be significantly reduced, such that customers can have more time to enjoy delicious meals and to allow store staff to have more sufficient time to provide greater services, satisfying the demands of each consumer. In 2018, the Company further added a personal voice guidance function and convenient electronic gift voucher exchange functions in order to further improve the warm experience and convenience of self-ordering machines. ②Unfavorable factors and countermeasures

→Entrance barrier is low for the fast food industry, severe market competition The catering industry entrance barrier is low in Taiwan, greater numbers of operators are entering the market, and the competition among operators is - 126 -

severe. To seek customers, there is a trend in price reduction competition. Countermeasures: The Company upholds the fundamental concept of providing sincere services and delicious meals, selects real and quality, as well as healthy and natural food ingredients. In addition, we allow customers to have the freshest tastes for their meals. Different from pre-made meals, the Company adopts the method of “freshly made to order” in order to allow customers to enjoy fresh vegetables, soft breads, and readily made hot meat and sauce. In addition, stores provide comfortable seats with a relaxed dining environment, as well as the care service of table delivery of meals. Therefore, when customers are enjoying delicious hamburgers, they can also enjoy the restaurant feel of the dining environment. MOS Burger expects to provide high value-added sales service during the offering of delicious products in order to gain the consumers’ recognition, to create recognized value and to achieve excellent brand image and reputation, thereby overcoming the competitive trend. →Cultivation of catering service personnel requires effort, stable staff turnover rate is an important issue For a people-oriented catering service, it still relies on the proper execution by personnel. To completely deliver high quality service exceeding customer expectations, the Company focuses on personnel training and treats it as the root for the sustainable operation and strengthening of the competitiveness of the Company. However, with the economic development, change of social value, and increase of labor awareness, the cultivation and stable turnover rate of catering service personnel are essential. Countermeasures: To cope with the emerging of various relevant domestic service industries, under the condition where the demand for talent is great, talent recruitment and cultivation in order to create a working environmental respecting the staff with growth for stable employment is, presently, indeed a key factor for the Company. Techniques: 1. Establish new talent recruitment strategies, expand the recruitment channel, cope with the social structure change, increase the employment of diverse talents including new residents, overseas students in Taiwan, etc. 2. Expand the specialized training site space and environment, overcome the situation of insufficient space for use at the Jilin training center. Establish Danshui An-Shin College at Danshui, which was officially started in July 2012. Through a neat and spacious learning environment along with the systematic educational training and management training system, employees are able to improve and grow.

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3. Strengthen the recognition and coherence with corporate culture. Sufficiently exploit the human resources strategy of “selection, training, and retention” in order to attract and stabilize outstanding talents. 4. Strengthen collaboration with schools, introduce the An Shin Program into college, offer internships and industry-academia collaboration opportunities, teach or deliver speeches in school programs, and engage schools in research projects. 5. Work with government agencies in promoting re-employment on a national scale, including persons with disabilities and elders, and actively participate in teaching and seminars that are relevant to core business activities. 6. Upgrade existing talent referral, transfer and trainee programs. Offer more attractive scholarships and more comprehensive training systems. ③Rapid increase of operations and management costs The hourly personnel employment rate in catering service employees is relatively high. In 2020, the basic hourly wage has been increased from NT$150 per hour to NT$158 per hour. In addition, the price of real properties in urban areas has also increased significantly, which drives the rent of store expansion to increase or an increase of rent during the renewal of store tenancy contracts. Due to the international economic change and natural disaster factors, the food ingredients are affected and are in shortage such that costs increase significantly. All of the above have gradually caused the operating cost to increase. Countermeasures: The Company has adjusted wages according to the laws, and also plans to provide employee welfare. Therefore, the Company focuses on the increase of work efficiency in order to balance the personnel cost increase. In addition, the Company also utilizes technology to facilitate the reduction of labor costs. The Company prevents opening stores in locations with high rent and prolongs the tenancy contract period in order to stabilize the rental expense. The Company manages the material source and prevents the increase of costs by expanding the dual supply sources in order to suppress the price. ④Increases meal serving speed Since the Company commits to provide freshly made products for orders to consumers, waiting time can be relatively longer, the relatively long line-up and meal waiting have always been issues to be improved by the Company with our best effort. Countermeasures: The Company adopts various improvement measures to increase its meal serving speed, and it can be mainly divided into external processes (outside - 128 -

the kitchen) and internal processes (inside the kitchen) to increase efficiency: 1. External process adjustment: Provide diverse meal order methods to customers, including self-order machines, telephone orders, internet orders, an APP (MOS ORDER), table ordering, etc, in order to reduce the waiting time at the store line-up. In order to accelerate the meal selection time of customers, the Company also adopts measures including the launch of popular set products, a customer line-up plan, meal ordering, meal waiting moving line, and use of store price tags with a combination set drawing for presentation, etc. 2. internal process improvement: For the manufacturing and operation moving line, the efficiency is increased, in order to accelerate the meal-serving time, including: (1) Work process adjustment: It is divided into peak/off-peak time periods. During the peak time period, dedicated workstation positions are set up, such as a dedicated person is responsible for the preparation of meals, saving time for both the cashier and drink preparation, in order to increase the efficiency. (2) Improvement of kitchens: For the operation moving line in the kitchen, timely improvement is made, and the machine equipment or moving line is adjusted in order to generate greater performance. (3) Branch store products: According to the property of the business circles of stores, such as for different stores of shopping center stores, school campus stores, station stores, highway rest stop stores, etc, products sold and items are distinguished in order to further satisfy the customer demand of the local area, and the preparation speed of the stores can be increased. (4) Introduction of new equipment: Additional installation of equipment capable of preserving semi-products without losing the flavors and allowing store staff to operate more smoothly. Starting from 2017, parts of kitchens are further installed with a KD (Kitchen Display) at each workstation to accelerate the meal-serving speed. In addition to the aforementioned measures, the Company will also continue to improve the preparation efficiency and increase the meal-serving speed in

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order to reduce the waiting time of consumers. (II) Key purpose and manufacturing process of main products (1) Key purpose of main products Product item Product purpose Products for sale in fast food chain stores, providing Products of hamburgers, choices for breakfast, lunch, dinner or afternoon snacks, soups and drinks, etc. snacks, and recreational drinks to general consumers.

(2) Production process of main products For the fast food chain store operation of the Company, the process of the relevant meals is illustrated in the following flowchart:

Product planning, Food safety In-store trial sale Store introduction Introduction of development and specification Trial and market survey preparation sales in store design confirmation making

Cashier Preparation Product Safety and health POS system meal order material pickup Preparation confirmation Meal sales, purchase and control serving inventory management

(III) Primary raw materials supply status

Primary raw Supply Primary supplier materials status Bread/Rice Magic Food Industry Co., Ltd., A Company Proper Pastry Magic Food Industry Co., Ltd., B Company Proper Sources Magic Food Industry Co., Ltd. Proper Drinks C Company, D Company Proper Milk and eggs C Company Proper products Vegetables E Company, F Company Proper

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(IV) Name of customers accounted for more than 10% of the total purchase/sales amount of the company in the most recent two years or in any year and the purchase/sales amount and ratio thereof (1) Main suppliers of the Company ※Unconsolidated Unit: In Thousands NTD % 2018 2019 2020 up to the previous quarter Annual net Relationship Annual net Relations Net purchase Relationship Amount of purchase with the Amount of purchase hip with Amount of percentage up to the with the Item Name Name Name stocks percentage issuer stocks percentage the issuer stocks last quarter of the issuer (%) (%) current year (%) Magic Food Magic Food Others Magic Food Others Other related 1 Industry 799,225 41.02 Industry Co., 811,700 40.48 Related Industry Co., 179,779 37.91 Related party parties Co., Ltd. Ltd. party Ltd. Taiwan Taiwan Taiwan Pelican Others Pelican Others Pelican Other related 2 212,556 10.91 Express Co., 179,052 8.93 Related 41,424 8,74 Express Co., Related party Express Co., parties Ltd. party Ltd. Ltd. 3 Others 936,651 48.07 N/A Others 1,014,647 50.60 N/A Others 252,961 53.35 N/A Net Net purchase Net purchase purchase 1,948,432 100.00 2,005,399 100.00 474,164 100.00 amount amount amount

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※Consolidated Unit: In Thousands NTD % 2018 2019 2020 up to the previous quarter Annual net Relationship Annual net Relations Net purchase Relationship Amount of purchase with the issuer Amount of purchase hip with Amount of percentage up to the with the Item Name Name Name stocks percentage stocks percentage the issuer stocks last quarter of the issuer (%) (%) current year (%) Magic Food Magic Food Others Magic Food Others Other related 1 Industry 799,225 40.41 Industry Co., 811,700 39.84 Related Industry Co., 179,779 8.82 Related party parties Co., Ltd. Ltd. party Ltd. Taiwan Taiwan Taiwan Pelican Others Pelican Others Pelican Other related 2 212,556 10.75 Express Co., 179,052 8.79 Related 41,424 2.03 Express Co., Related party Express Co., parties Ltd. party Ltd. Ltd. 3 Others 966,185 48.84 N/A Others 1,046,495 51.37 N/A Others 257,161 12.62 N/A Net Net purchase Net purchase purchase 1,977,966 100.00 2,037,247 100.00 478,364 100.00 amount amount amount

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(2) Main customers of the Company The Company operates the business of fast food chain store, and the main customers refer to general consumers. Therefore, there is no customer accounting for more than 10% of the total sales.

(V) Production quantity table for the most recent two years: ※Unconsolidated Unit: In Thousands Units; In Thousands New Taiwan Dollars Year 2018 2019 Production volume and Production Production Production Production Production Production value capacity quantity amount capacity quantity amount Main products Main meals 37,188 1,828,426 37,791 2,010,242 Snacks 25,124 906,469 25,528 1,007,197 N/A Soups and drinks N/A (Note) 35,408 745,073 34,007 797,428 (Note) Others 5,144 344,987 4,760 180,602 Total 102,864 3,824,955 102,086 3,995,469

※ Consolidated Unit: In Thousands Units; In Thousands New Taiwan Dollars Year 2018 2019 Production volume and Production Production Production Production Production Production value capacity quantity amount capacity quantity amount Main products Main meals 37,934 1,860,567 38,655 2,052,715 Snacks 25,488 922,163 25,785 1,017,547 N/A Soups and drinks N/A (Note) 35,913 766,850 34,392 808,891 (Note) Others 5,151 345,291 4,769 182,390 Total 104,486 3,894,871 103,601 4,061,543 Note: Due to the characteristics of the business, the production capacity of each product type may be inter-changed with each other, such that this item is not applicable.

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(VI) Sales quantity table for the most recent two years ※Unconsolidated Unit: In Thousands Units; In Thousands New Taiwan Dollars Year 2018 2019 Sales quantity Domestic sales Export sales Domestic sales Export sales and amount Quanti Amou Quantity Amount Quantity Amount Quantity Amount ty nt Main products Main meals 36,999 2,541,319 － － 37,595 2,639,862 － － Snacks 25,795 1,176,942 － － 25,992 1,285,630 － － Soups and 35,348 1,247,040 33,941 1,262,005 － － － － drinks Others 14,061 205,657 － － 11,781 216,708 － － Total 112,203 5,170,958 － － 109,309 5,404,205 － －

※Consolidated Unit: In Thousands Units; In Thousands New Taiwan Dollars Year 2018 2019 Sales quantity Domestic sales Export sales Domestic sales Export sales and amount Quanti Quantit Quantity Amount Amount Quantity Amount Amount ty y Main products Main meals 37,740 2,596,594 － － 38,454 2,703,846 － － Snacks 26,157 1,193,057 － － 26,248 1,296,749 － － Soups and － － － － drinks 35,847 1,260,596 34,324 1,272,151 Others 14,068 201,857 － － 11,790 211,746 － － Total 113,812 5,252,104 － － 110,816 5,484,492 － －

III. Employees: Employee information for the most recent two years and up to the printing date of the annual report Unit: person 2020 up to Year 2018 2019 March 31 Administrative management positions 101 101 99 General employees 66 72 76 Employee Operating management positions 243 258 260 count Store employees 650 632 608 Temporary employees 4,661 4,902 4651 Total 5,721 5,965 5694

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Average age 30.33 31.34 31.7 Average years of service 2.39 2.65 2.82 Master 0.82 0.84 0.83 Academic University/College 54.08 47.66 47.58 backgroun d (%) Below senior high school (inclusive) 45.10 51.5 51.60 Total 100.00 100.00 100.00

IV. Information on Environmental Protection Expenses The Company does not adopt the factory model, and operates a fast food catering service, which mainly provides the business of “meals’ and “service”, including hamburgers and soups/drinks etc. The relevant operating activities do not generate major pollution events. To maintain quality, competitiveness, and professional service value, relevant important raw materials are manufactured by suppliers, and the Company mainly performs the heating and cooking operation only in stores. However, such products are light meals. In addition, the Company also installs control equipment for pollution drainage and emissions for air and water pollution, etc. Therefore, there is no likelihood of major environmental pollution. 1. According to the laws and regulations, regarding the application of a pollution facility installation permit license, pollution emission permit license, required payment for pollution control fees, or requirement on the installation of dedicated unit/personnel for environmental protection, please refer to the following description on the application, payment or establishment status thereof: The Company has declared its enterprise waste disposal plan according to the regulations and has paid the recycling and cleaning handling fees.

2. List of investments in the main equipment of the Company related to environmental control pollution and its purpose and possible benefits: Unit: in NTD in thousands

Equipment Acquisitio Investment Quantity Purpose and expected benefits name n date cost Oil According intercepting to the Isolating the oil and other insoluble tank substances in the drainage water in 275 units establishm 9,773 Water order to prevent contamination of the ent date of drainage gutter due to kitchen waste and oil. each store equipment

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Water cleaning, Reduce air pollution due to smoke electrostatic 275 units 65,270 and odor exhaust type exhaust equipment

3. History of environmental protection improvement of the Company in the recent two years and up to the printing date of the annual report. If there is any pollution dispute, the detail of such event shall be explained: Except for the following 4 events, the Company has not been involved in any major pollution disputes. 4. Losses (including compensation) arising as a result of pollution in the last year up until the publication date of the annual report (disclose details on the amount of penalty, outcome of the environmental audit, the violation, date of decision, correspondence number, the violated laws, and the authority's decision), provide an estimate of the losses incurred or expected and explain any response measures planned, and state the reasons if losses cannot be estimated reliably: The amount of losses that the Company has incurred in relation to pollution in the last year up until the publication date of annual report totaled less than NT$104,000. The majority of which had arisen following an on-site inspection conducted by the Pingtung County Environmental Protection Bureau: (1) Date of decision - January 18, 2019; (2) Decision correspondence No: Ping-Fu-Huan-Kong-10830130300. (3) Laws violated: Paragraph 1, Article 20, Article 62 and Article 85 of Air Pollution Control Act and Article 3 of "Penalty Standards for Violation against Air Pollution Control Act in Public and Private Areas". (4) Nature of violation: The store's exhaust equipment was outdated and not properly renewed, which created odor when deep-frying. (5) Penalty: A fine of NT$100,000 was imposed, and the store was required to complete improvements in addition to 2 hours of environmental seminars before March 31, 2019. The Company has since installed “active carbon” equipment and purchased “UV-03” to improve exhaust treatment within the store. Furthermore, all equipment is being maintained and serviced regularly to eliminate potential malfunctions, whereas employees are reminded to provide timely feedback and ensure that improvements are duly made to

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prevent recurrence. 5. Current pollution status and impacts of its improvement on the earnings, competition position, and capital expense of the Company and the expected major environmental protection capital expense in the next two years: The aforementioned “4. Pollution” refers to minor human error events, and the Company has enhanced its management in order to prevent the occurrence of the relevant events. Such events did not cause major impacts on the earnings, competition position, and capital expenses of the Company.

V. Labor Management Relationship (I) The company’s employee welfare measures, continued education, training, retirement system, and implementation thereof, and labor management agreement and various employee benefit protection measures status: (1) Employee welfare measures: ①Insurance aspect: In addition to the statutory labor and health insurance, the Company further applies group insurance (life insurance/casualty insurance/medical insurance/cancer) for employees. ②Health and safety aspect: The Company establishes a dedicated “Safety and Health Team”, and the team members include labor safety personnel and labor health service nurses. It provides a one time subsidized health examination for on-the-job employees, physicians periodically perform on-site services at stores, headquarters staff participate in daily health exercises, installation of AED at the headquarters and Danshui An-Shin College, qualified for the “Safety Place Certificate”. The Company conducts monthly safety and health promotions periodically, and provides various health education notes through the internal contact forms and announcement methods in the Company and the topics include occupational psychological health and work enjoyment, disease prevention, infectious disease prevention, and occupational work safety, etc, in order to provide health information to employees. The Company periodically updates the washroom notification announcements each month and focuses on health promotion, including weight management, healthy diet, sports knowledge, related drawings and text content articles, such that employees are able to absorb knowledge about health even during toilet time to improve their health knowledge and skills. The Company was certified for [Badge of Accredited Healthy Workplace - Promotion Label] by the Health Promotion Administration, Ministry of Health and Welfare, in 2018 for having duly conveyed health awareness and enforced health - 137 -

promotion among business partners. In 2019, the Company participated in the “4+1 Smart Workplace - Health Enhancement Service Program” introduced by the Health Promotion Administration, and created a “Smart Mobile Office” featuring the use of smart technologies to provide employees with exercise and diet-related information as well as health promotion services. ③Subsidies:  The Company provides a travel expense subsidy of NT$2,000~NT$6,000 per person annually.  Provide a social club activity subsidy, each club receives the maximum subsidy of NT$ 20,000 annually.  Foreign language education subsidy: As long as employees qualify for the subsidy requirement, each person can receive an incentive amount of NT$ 5,000~NT$10,000 and each person receives a language learning subsidy of NT$1,500~2,000.  Others: Marriage and funeral, birth date, dragon boat festival, moon festival cash gifts, year-end bonus, children scholarship compensation, childbirth compensation, maternity allowance, etc. ④Others welfares:  Since the stores have spread across all of Taiwan, the Company provides salary addition regulations and employee housing rental subsidy regulations for remote areas.  To allow employees to grow and develop together with the Company, provide shareholding trust solutions for employees with outstanding performance, share subscription with capital increase, performance bonuses, and various target achievement bonuses, plus participation in employee compensation distribution.  Provide overseas training for outstanding selected employees, employee friend sharing coupons, store staff working meal subsidies, periodic employee gathering events, affiliate company home appliance sharing of employee discount prices, organization of all of the company’s year-end party events.

(2) Employee continuing education and training: The Company establishes the complete employee education and training system, which is divided into orientation training and on-the-job training. In addition, through internal and external training methods, the foundation of sustainable operation and development of the Company are maintained. Department supervisors and employees may be assigned or can self-apply for the participation in the courses and training held by external agencies depending upon the needs, in order to improve the

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employees’ professional abilities and core competency, as well as strengthen the employees’ complete training and continuing education channels. 2019 Employee continuing education and training actual implementation status as follows: Unit: In Thousands New Taiwan Dollars Number of Total number Total number Item Total cost shifts of employees of hours 1. Training for new 84 560 1,483 1,186 employees 2. Professional 134 667 1,130 2,336 occupational training 3. Supervisor skills 43 890 537 614 training 4. General knowledge 67 667 596 502 training Total 328 2,784 3,746 4,638

(3) Retirement System and Implementation Status: The Company establishes the employee retirement regulations according to the “Labor Standards Act”, and also organizes the labor pension reserve supervisory committee according to the regulations in order to set aside pension funds, and the pension fund is deposited at the Trust Department of the Bank of Taiwan according to the laws, such that employees qualifying by the requirements specified in the regulations are entitled to receive their pension according to the laws. Since cooperation with the implementation of the Labor Pension Act starting on July 1, 2005, the Company has appropriated 6% of the monthly wages for new employees and existing employees choosing to adopt the new retirement regulations in order to be deposited in the individual retirement accounts at the Bureau of Labor Insurance. In addition, for the existing employees choosing to apply the old retirement pension system and the existing employees choosing to apply the new retirement pension system, their years of service are retained continuously, such that the pension reserves of appropriate amounts are calculated according to the pension payment standards specified in the original employee retirement regulations for deposit into the dedicated accounts in the Bank of Taiwan. The Company establishes the employee retirement regulations according to the “Labor Standards Act”, such that when an employee has the intention to apply for retirement,

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he or she shall submit their application through the human resources system, and after the human resources unit confirms the retirement pension regulations selected by such employee, application operation is then handled. The Company has also organized the labor pension reserve supervisory committee according to the regulations in order to set aside the pension fund, and to deposit the fund at the Trust Department of the Bank of Taiwan according to the laws. Presently, the number of employees choosing the old employee retirement system accounts for approximately 0.14% of all employees of the Company, and other employees all choose to apply the new employee retirement system.

(4) Labor management agreement and various employee benefit protection measures status: The labor management relationship of the Company has always been harmonious and proper, and heading toward the team effort with coherence and team work. The Company establishes dedicated units to handle employees’ recommendations. In addition to the periodic organization of labor management communication meetings, the human resources department also organizes employee seminars for all levels of employees, including new employees, team leaders, store managers, etc. Employees can also perform opinion communication through direct telephone and e-mails in order to conduct two-way communications on various issues of the system, welfare, policy, and working environment, etc. In addition, it is able to maintain excellent interactions between the two parties of the labor and management in terms of the administrative management important references.

(5) Employee working environment and personnel safety protection measures: Item Details 1. Installed necessary surveillance equipment at the entrance, counter, kitchen, customer seating area, and recreation room in Access order to protect the work safety of employees. control 2. Signed security system contracts with security providers in security order to maintain environmental safety after the business hours of stores at night time, and to guarantee the work safety of staff in the store. Maintenance 1. According to the fire control regulations, the Company entrusts and inspection a professional company to perform fire prevention

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Item Details of each inspections twice annually. equipment 2. According to the Regulations Governing Full-Time Electrician and Power Consumption Equipment Inspection and Maintenance, for stores with power consumption reaching above 49 kW, a professional company is entrusted to perform power consumption safety technician inspections once annually. 3. According to the Regulations Governing Indoor Air Quality, a professional company is entrusted to perform indoor carbon dioxide monitoring and testing at stores semi-annually. 4. According to the Regulations for Inspecting and Reporting Building Public Security, where the indoor area reaches the specified criteria, a professional company is entrusted to perform public safety inspection annually. 5. For air conditioning equipment, drinking water equipment, ice making machines, cleaning, washing, maintenance and inspection are performed regularly and intermittently each year. Disaster To prevent and protect the safety of construction contractors and prevention construction store employees, the engineering and construction measures and section of the headquarters has established the construction site responsive safety protection rules in order to request the construction measures contractors to implement and comply with such rules. 1. Health examination: existing employees are offered annual health examinations that are more favorable than stipulated in the Occupational Safety and Health Act. Safety and 2. Working environment sanitation: For work places, it is health completely prohibited to smoke, and the cleaning and disinfection of the working environment are performed periodically. 3. Prevention of occupational injuries and various (work injuries) Safety and injury records and assistance in the investigation of the cause health of injuries. 4. Educational training: Perform various professional and

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Item Details management courses necessary for all job ranks and positions, in order to provide psychological adjustment, strengthening of knowledge topic seminars and E-educational training. 5. Opinion expression: Set up an employee opinion mailbox, provide employees, operation forms, and various handbook download sections, learning areas and sharing sections, provide employees with channels for opinion expression, emotion relief, and interactive learning. 6. Sexual harassment prevention: Establish complaint rules and disciplinary provisions. 7. Field service: Contract physicians and nurses accompany the health and safety personnel to proceed to stores to perform health services in the field for employees in stores each month. 8. Nursery (milk collection) room installation: To cope with the official implementation of the female protection plan on October 1, 2015, the Company completed the installation of a nursery room at the headquarters of Songjiang Road, and it was officially in operation on October 8, 2015. In October 2017, the Company received the qualification of “Outstanding Nursery Room” certified by the Department of Health. 9. AED “Automated External Defibrillator”: On May 10, 2017, an AED was installed at the headquarters on Songjiang Road, and on September 25, 2017, the Company received the “Safety Place” Certified by the Department of Health. In addition, Danshui An-Shin College was also installed with an AED at the end of the same year. 1. The Company applies insurance including labor insurance (including occupational disaster insurance), health insurance, and also provides different commercial insurance (life Insurance and insurance, casualty insurance, accident medical treatment, welfare hospitalization medical treatment, cancer insurance, group insurance, etc) according to the identities of employees. 2. Open employees’ relatives to enroll in casualty insurance, medical insurance, cancer insurance, etc, at a discounted rate.

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Item Details 3. The Company further provides consolation money to employees receiving hospitalization treatment.

(II) Losses arising as a result of employment disputes in the last year up until the publication date of the annual report (including violations against the Labor Standards Act found during labor inspection. Explain the date of penalty, reference number, the laws violated, the violating action, and the nature of the penalty). Please quantify the estimated losses and state any response actions, and state the reasons if the losses cannot be reasonably estimated: Date of decision: January 28, 2019 Decision correspondence No: Lao-Ju-Na-10801844770 Laws violated: Paragraph 3, Article 72 of the Labor Insurance Act. Insurers that violate the Act by under-stating or over-stating the sum of salary assured will be fined 4 times the amount of the premium shortfall or excess starting from the date of occurrence. Furthermore, any over-payment of an insurance benefit will be claimed back. Any losses suffered by workers as a result shall be compensated for by the insurer. Nature of the violation: Employees misunderstood the meaning of the salary assured and failed to report properly. The amount of salary assured for the employee in question should be NT$26,400, but due to delay in the submission of the account passbook photocopy, payment of the salary was postponed to the following month, causing the employee to receive more than NT$30,000 in a single month. As a result, the handling officer adjusted the employees' assured salary to NT$31,800, which triggered the violation. Penalty: A fine of NT$5,496 was imposed in accordance with the Labor Insurance Act. Response measure: The amount of salary assured is being reviewed once every three months, and additional attention is being directed toward identifying late filing and late salary payment. Furthermore, the Company promotes employees’ awareness on this issue regularly, including the use of monthly reminders.

The Company has always been attentive to employees' welfare and maintained a harmonic employment relationship. Except for the occurrences described above, the Company did not encounter any major employment dispute in the last year up until the publication date of annual report that may result in losses.

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VI. Important Contracts

Contract Involving Contract start/end Main content restrictive clause nature party date

There was no Procurement Product supply YY Company 2018/1/1~2019/12/31 adverse contract contract restrictive clause

Procurement Product supply AM Company 2018/10/1~2020/9/30 Same as above contract contract

Procurement Product supply H Company 2017/5/1~2020/4/30 Same as above contract contract

Procurement Product supply AF Company 2019/1/1~2020/12/31 Same as above contract contract

Procurement Product supply AI Company 2019/1/1~2020/12/31 Same as above contract contract

Procurement Product supply AN Company 2019/1/1~2020/12/31 Same as above contract contract

Procurement Product supply C Company 2020/1/1~2021/12/31 Same as above contract contract

Procurement Product supply AO Company 2018/3/1~2020/6/30 Same as above contract contract

Procurement Product supply AC Company 2018/8/1~2020/12/31 Same as above contract contract

Procurement Product supply D Company 2019/1/1~2020/12/31 Same as above contract contract

Performance MOS guarantee XX Company 2019/3/1~2021/2/28 performance Same as above contract guarantee

Technology Japanese MOS and trademark Technology and MOS Food license 2011/5/23~2021/5/23 trademark license Same as above Services, Inc. collaboration collaboration agreement agreement

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Contract Involving Contract start/end Main content restrictive clause nature party date

Joint venture to establish Joint venture ZZ Company AN-SHIN FOOD 2010/2/10~ Same as above contract etc. SERVICES (SINGAPORE) PTE.LTD.

Joint venture to establish MOS Joint venture ZZ Company 2011/2/15~ BURGER Same as above contract etc. AUSTRALIA PTY. LTD.

Xiamen An Consultant Consultation Shin Food 2011/8/1~2021/7/31 consultation Same as above contract Management contract Co., Ltd.

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Six. FINANCIAL HIGHLIGHTS I.Condensed Balance Sheet and Statement of (Comprehensive) Income in the Most Recent five Years 1. Unconsolidated Condensed Balance Sheet - International Financial Reporting Standards (IFRS) Unit: in NTD in thousands Year Financial information for the latest five years (Note 1) Current year up to March 31, 2020 2015 2016 2017 2018 2019 Financial Item Information Current Assets 2,047,772 2,237,948 2,319,231 2,321,595 2,316,410 Property, Plants, and 320,196 310,699 395,601 418,595 423,678 Equipment Right-of-use assets - - - - 1,573,532 Intangible Assets 7,238 24,123 20,425 11,555 15,655 Other Assets 161,165 143,965 159,005 161,224 172,067 Total Assets 2,536,371 2,716,735 2,894,262 2,912,969 4,501,342 Before 903,321 1,014,908 1,133,558 1,125,307 1,497,146 Current distribution Liabilities After 994,012 1,111,726 1,246,512 1,222,124 Note 2 distribution Non-current liabilities 29,131 28,904 24,430 23,467 1,177,515 Before 932,452 1,043,812 1,157,988 1,148,774 2,674,661 Total distribution Liabilities After 1,023,143 1,140,630 1,270,942 1,245,591 Note 2 distribution Not Applicable Equity attributable to stockholders of the 1,603,919 1,672,923 1,736,274 1,764,195 1,826,681 parent company Share Capital 323,895 323,895 323,895 323,895 323,895 Capital Surplus 809,816 809,816 809,816 809,816 809,816 Before 477,036 556,021 617,583 661,867 710,470 Retained distribution Earnings After 386,345 459,203 504,629 565,050 Note 2 distribution Other Equity (6,828) (6,686) (4,897) (21,260) (7,377) Treasury Shares － (10,123) (10,123) (10,123) (10,123) Non-controlling Interest － － － － － Before 1,603,919 1,672,923 1,736,274 1,764,195 1,826,681 distribution Total Equity After 1,513,228 1,576,105 1,623,320 1,667,378 Note 2 distribution

Note 1: The financial data listed above has been audited and certified by the CPA. Note 2: The 2019 earnings distribution proposal has been approved through the resolution of the Board of Directors meeting but has not been approved during the shareholder meeting.

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2. Consolidated Condensed Balance Sheet - International Financial Reporting Standards (IFRS) Unit: in NTD in thousands Yea r Financial information for the latest five years (Note 1) Current year up to March 31, 2020 Financial Item 2015 2016 2017 2018 2019 Information (Note 2) Current Assets 2,114,734 2,274,184 2,388,168 2,358,449 2,372,633 1,985,468 Property, Plants, and 352,694 325,314 404,679 424,793 430,702 433,743 Equipment Right-of-use assets - - - - 1,594,742 1,667,393 Intangible Assets 7,303 24,514 20,936 11,835 15,761 13,981 Other Assets 136,062 136,211 140,056 155,231 156,605 401,549 Total Assets 2,610,793 2,760,223 2,953,839 2,950,308 4,570,443 4,502,134 Before 922,735 1,029,112 1,147,051 1,136,192 1,515,894 1,398,704 Current distribution Liabilities After 1,013,426 1,125,930 1,260,005 1,233,009 Note 3 Note 3 distribution Non-current liabilities 30,417 30,203 25,855 25,260 1,191,679 1,259,887 Before 953,152 1,059,315 1,172,906 1,161,452 2,707,573 2,658,591 distribution Total Liabilities After 1,043,843 1,156,133 1,285,860 1,258,269 Note 3 Note 3 distribution Equity attributable to stockholders of the parent 1,603,919 1,672,923 1,736,274 1,764,195 1,826,681 1,811,450 company Share Capital 323,895 323,895 323,895 323,895 323,895 323,895 Capital Surplus 809,816 809,816 809,816 809,816 809,816 809,816 Before 477,036 556,021 617,583 661,867 710,470 714,580 Retained distribution Earnings After 386,345 459,203 504,629 565,049 Note 3 Note 3 distribution Other Equity (6,828) (6,686) (4,897) (21,260) (7,377) (26,718) Treasury Shares － (10,123) (10,123) (10,123) (10,123) (10,123) Non-controlling Interest 53,722 27,985 44,659 24,661 36,189 32,093 Before 1,657,641 1,700,908 1,780,933 1,788,856 1,862,870 1,843,543 distribution Total Equity After 1,566,950 1,604,090 1,667,979 1,667,377 Note 3 Note 3 distribution

Note 1: The financial data listed above has been audited and certified by the CPA. Note 2: The financial data listed above has been audited and certified by the CPA. Note 3: The 2019 earnings distribution proposal has been approved through the resolution of the Board of Directors meeting but has not been approved during the shareholder meeting. - 147 -

(II) 1. Unconsolidated Condensed Comprehensive Income Statement - International Financial Reporting Standards (IFRS) Unit: in NTD in thousands (other than the earnings per share in NTD) Year Financial information for the latest five years (Note) Current year up to March 31, 2020 Item Financial 2015 2016 2017 2018 2019 Information Operating Revenue 4,276,278 4,553,838 4,826,808 5,170,958 5,404,205 Gross Profit 1,155,124 1,247,962 1,271,686 1,346,003 1,408,736 Operating Income (Loss) 195,151 220,333 210,727 199,552 200,642 Non-operating Income and (24,125) (6,202) 4,863 (7,824) (7,940) Expenses Net income before tax 171,026 214,131 215,590 191,728 192,702 Current net income from 131,234 173,778 168,633 140,649 161,947 continuing operations Loss of discontinued unit － － - - - Net Income (Loss) 131,234 173,778 168,633 140,649 161,947 Other comprehensive (4,458) (3,960) (3,810) 1,158 (4,820) income (net, after tax) Total Comprehensive Not Applicable 126,776 169,818 164,823 141,807 157,127 Income Net income attributable to parent company 131,234 173,778 168,633 140,649 161,947 shareholders Net profit attributable to － － － - - non-controlling interests Comprehensive income attributable to parent 126,776 169,818 164,823 141,807 157,127 company shareholders Comprehensive income attributable to － － － - - non-controlling shareholders Earnings per share 4.05 5.37 5.23 4.36 5,02

Note: The financial data listed above has been audited and certified by CPA.

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2. Consolidated Condensed Comprehensive Income Statement - International Financial Reporting Standards (IFRS) Unit: in NTD in thousands (other than the earnings per share in NTD) Year Current year up to Financial information for the latest five years (Note 1) March 31, 2020 Financial 2015 2016 2017 2018 2019 Item Information (Note 2) Operating Revenue 4,424,550 4,663,585 4,919,312 5,252,104 5,484,492 1,281,282 Gross Profit 1,171,716 1,273,522 1288500 1,357,233 1,422,949 312,032 Operating Income 135,921 180,633 180,641 167,658 174,173 23,945 (Loss) Non-operating Income (9,801) 10,530 15,028 4,441 3,813 (16,773) and Expenses Net income before tax 126,120 191,163 195,669 172,099 177,986 7,172 Current net income from continuing 86,328 150,810 148,712 121,020 147,231 327 operations Loss of discontinued － － － - - - unit Net Income (Loss) 86,328 150,810 148,712 121,020 147,231 327 Other comprehensive (4,865) (6,729) (3,545) 789 (6,698) (19,654) income (net, after tax) Total Comprehensive 81,463 144,081 145,167 121,809 140,533 (19,327) Income Net income attributable to parent 131,234 173,778 168,633 140,649 161,947 4,110 company shareholders Net profit attributable to non-controlling (44,906) (22,968) (19,921) (19,629) (14,716) (3,783) interests Comprehensive income attributable to 126,776 169,818 164,823 141,807 157,127 (15,231) parent company shareholders Comprehensive income attributable to (45,313) (25,737) (19,656) (19,998) (16,594) (4,096) non-controlling shareholders Earnings per share 4.05 5.37 5.23 4.36 5.02 0.13

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Note 1: The financial data listed above has been audited and certified by the CPA. Note 2: The financial data listed above has been audited and certified by the CPA.

(III) Names of auditors and audit opinions for the last five years Name of the accounting Year Name of the CPA Audit opinion firm PricewaterhouseCoopers Hui-Chin Tseng, 104 Unqualified opinion Taiwan Yu-Lung Wu PricewaterhouseCoopers Ping-Chun Chih, 105 Unqualified opinion Taiwan Yu-Lung Wu PricewaterhouseCoopers Ping-Chun Chih, 106 Unqualified opinion Taiwan Yu-Lung Wu PricewaterhouseCoopers Ping-Chun Chih, 107 Unqualified opinion Taiwan Yu-Lung Wu PricewaterhouseCoopers Ping-Chun Chih, 108 Unqualified opinion Taiwan Yu-Lung Wu

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II. Financial Analysis in the Most Recent Five Years (I) Unconsolidated Financial Analysis in the Most Recent Five Years - IFRS Year Financial analysis for the latest 5 years (Note) Current year up to Analysis 2015 2016 2017 2018 2019 March 31, 2020 Debt to assets ratio (%) 36.76 38.42 40.00 39.43 59.41 Financial Ratio of long-term capital position to property, plants, and 500.91 538.43 438.89 421.45 431.14 equipment (%) Current ratio (%) 226.69 220.50 204.59 206.30 154.72 Solvency Quick ratio (%) 221.49 215.27 198.38 201.61 151.32 Interest earned ratio (%) 85,514.00 －－－10.87 Accounts receivable 78.86 66.50 60.97 57.06 58.58 turnover (times) Average collection period 4.62 5.48 5.98 6.39 6.23 Inventory turnover (times) 93.56 93.60 92.47 98.03 97.79 Accounts payable turnover 16.27 14.29 12.48 12.06 13.78 Operating (times) efficiency Average days in sales 3.90 3.89 3.94 3.72 3.73 Property, plants, and equipment turnover 12.45 14.43 13.66 12.70 12.83 Not Applicable (times) Total asset turnover 1.75 1.73 1.72 1.78 1.45 (times) Return on asset (%) 5.37 6.61 6.01 4.84 4.78 Return on equity (%) 8.31 10.60 9.89 8.03 9.01 Pre-tax income to paid-in Profitability 52.80 66.11 66.56 59.19 59.49 capital (%) Net profit margin (%) 3.06 3.81 3.49 2.71 2.99 Earnings per share (NT$) 4.05 5.37 5.23 4.36 5.02 Cash flow ratio (%) 48.64 43.80 37.57 36.80 52.80 Cash flow adequacy ratio 168.12 174.02 186.16 168.10 184.18 Cash flow (%) Cash reinvestment ratio 0.11 0.10 0.09 0.08 0.21 (%) Operating leverage 1.92 0.37 1.83 1.90 1.89 Leverage Financial leverage 1.00 1.00 1.00 1.00 1.10 Variation of financial ratios in the last 2 years (not required for variations below 20%) Note: The financial data listed above has been audited and certified by CPA.

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(II) Consolidated Financial Analysis in the Most Recent Five Years - IFRS

Year Financial analysis for the last 5 years (Note 1) Current year up to Analysis March 31, 2020 2015 2016 2017 2018 2019 (Note 2) Debt to assets ratio (%) 36.50 38.37 39.70 39.36 59.24 59.05 Financial Ratio of long-term capital to Structure property, plants, and equipment 469.99 522.85 440.08 421.11 432.51 425.03 (%) Debt Current ratio (%) 229.18 220.98 208.20 207.57 156.51 141.95 Servicing Quick ratio (%) 222.53 214.61 200.56 201.49 151.96 136.46 Capability Interest earned ratio (%) 63,061.00 － 0.00 0.00 10.03 2.41 Accounts receivable turnover 80.98 67.51 61.41 56.50 58.14 64.12 (times) Average collection period 4.5 5.40 5.94 6.46 6.27 5.69 Inventory turnover (times) 73.13 78.59 81.51 87.09 88.32 76.52 Management Accounts payable turnover 16.46 14.43 12.62 12.18 13.85 16.36 Capability (times) Average days in sales 4.99 4.64 4.47 4.19 4.13 4.76 Property, plants, and equipment 11.38 13.75 13.47 12.66 12.82 11.85 turnover (times) Total asset turnover (times) 1.75 1.73 1.72 1.77 1.45 1.12 Return on asset (%) 3.41 5.61 5.20 4.09 4.33 0.38 Return on shareholders’ equity 5.27 8.98 8.54 6.78 8.06 0.07 (%) Profitability Pre-tax income to paid-in capital Capability 38.93 59.02 60.41 53.13 54.95 8.85 (%) Net profit margin (%) 1.95 3.23 3.02 2.30 2.68 0.02 Earnings per share (NT$) 4.05 5.37 5.23 4.36 5.02 0.13 Cash flow ratio (%) 42.80 40.93 34.48 33.98 51.78 28.41 Cash Cash flow adequacy ratio (%) 127.72 137.29 162.75 152.49 171.86 171.86 flow Cash reinvestment ratio (%) 0.09 0.09 0.08 0.07 0.20 0.11 Operating leverage 2.49 2.03 2.02 2.11 2.05 3.00 Leverage Financial leverage 1.00 1.00 1.00 1.00 1.12 1.26 Variation of financial ratios in the last 2 years (not required for variations below 20%) Note 1: The financial data listed above has been audited and certified by the CPA. Note 2: The financial data listed above has been audited and certified by the CPA.

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※The calculation equations adopting the IFRS are as follows: 1. Financial structure (1) Debt to total assets ratio ＝ Total debt/Total assets. (2) Ratio of long-term capital to property, plants, and equipment = (Net shareholders’ equity + Long-term liabilities)/Net worth of property, plants, and equipment. 2. Debt servicing capability (1) Current ratio = Current assets/Current liabilities. (2) Quick ratio＝ (Current assets - Inventory - Pre-payment)/Current liabilities. (3) Interest earned ratio = Profit before income tax and interest expense/Interest expense. 3. Management capability (1) Accounts receivable (include receivable amounts and receivable bills from operation) turnover = Net sales/Average accounts receivable in each period (include receivable amounts and receivable bills from operation) balance. (2) Average collection period = 365/Accounts receivable turnover. (3) Inventory turnover = Sales cost/average inventory amount. (4) Accounts payable (include payable amounts and payable bills from operation) turnover = Sales cost/Average accounts payable in each period (include payable amounts and payable bills from operation) balance. (5) Average days in sales＝365/Inventory turnover. (6) Property, plants, and equipment turnover = Net sales/Net worth of property, plants, and equipment. (7) Total assets turnover＝Net sales/Total assets. 4. Profitability (1) Return on asset＝ [Earnings after tax＋Interest expense× (1－Interest rate)]/Average total assets. (2) Return on equity＝Earnings after tax/Average net equity. (3) Profit ratio＝Earnings (loss) after tax/Net sales. (4) Earning per share＝ (Earnings of parent company owner－Preference dividends)/weighted average number of shares outstanding. 5. Cash flow (1) Cash flow ratio = Net cash flow from operating activities/Current liabilities. (2) Net cash flow adequacy ratio = Net cash flows from operating activities in the last five years/(Capital expenditure ＋Inventory increase + Cash dividends) in the last five years. (3) Cash flow re-investment ratio = (Cash provided by operating activities - Cash dividends)/(Gross property, plants, and equipment + Long-term investments + Other non-current assets + Working capital). 6. Leverage: (1) Operating leverage = (Net sales - Variable cost)/Income from operations. (2) Financial leverage ＝ Income from operations/(income from operations－Interest expense).

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III. Supervisors’ Review Report of the Financial Statements in the Most Recent Year:

AN-SHIN FOOD SERVICES CO., LTD. Supervisors’ Review Report Whereas The Board of Directors submitted the Company's 2019 financial statements (including consolidated financial statements) to be audited by accountant Chih Ping-Chun and Wu Yu-Lung of PricewaterhouseCoopers Taiwan (PwC Taiwan). It was submitted with the business report and the surplus distribution form to the supervisors for review and verification, and a report is issued in accordance with the regulations of Article 219 of the Company Act. Resolution: Sincerely yours, 2020 Annual General Meeting of Shareholders for AN-SHIN FOOD SERVICES CO., LTD.

Supervisor: Huang, Mao‐Hsiung

February 26, 2020

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AN-SHIN FOOD SERVICES CO., LTD. Supervisors’ Review Report Whereas The Board of Directors submitted the Company's 2019 financial statements (including consolidated financial statements) to be audited by accountant Chih Ping-Chun and Wu Yu-Lung of PricewaterhouseCoopers Taiwan (PwC Taiwan). It was submitted with the business report and the surplus distribution form to the supervisors for review and verification, and a report is issued in accordance with the regulations of Article 219 of the Company Act. Resolution: Sincerely yours, 2020 Annual General Meeting of Shareholders for AN-SHIN FOOD SERVICES CO., LTD.

Supervisor: Yue, Chao-Tang

February 26, 2020

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AN-SHIN FOOD SERVICES CO., LTD. Supervisors’ Review Report Whereas The Board of Directors submitted the Company's 2019 financial statements (including consolidated financial statements) to be audited by accountant Chih Ping-Chun and Wu Yu-Lung of PricewaterhouseCoopers Taiwan (PwC Taiwan). It was submitted with the business report and the surplus distribution form to the supervisors for review and verification, and a report is issued in accordance with the regulations of Article 219 of the Company Act. The report is hereby presented for reference. Sincerely yours, 2020 Annual General Meeting of Shareholders for AN-SHIN FOOD SERVICES CO., LTD.

Supervisor: Fritz J. C. Jang

February 26, 2020

4. Financial Statements in the Most Recent Year: 2019 Consolidated Financial Statements, please refer to page 174 of Appendix 1.

5. Standalone Financial Statements of the Company Audited by the CPA: 2019 Standalone Financial Statements, please refer to page 253 of Appendix 2.

6. Any financial distress encountered by the Company or affiliated enterprise and impacts on the Company's financial position in the last year up until the publication date of annual report: N/A.

- 156 - Seven. DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND FINANCIAL PERFORMANCE - RISK FACTORS I. Financial Condition: (I) Standalone financial position: State any material changes in assets, liability, or shareholders' equity in the last two years, along with causes and impacts of such changes and response plans if the impact is material. Unit: in NTD in thousands Year Difference December 31, December 31, 2019 2018 Item Amount %

Current Assets 2,316,410 2,321,595 (5,185) (0.22) Investment accounted for using the equity 43,365 27,407 15,958 58.23 method Property, Plants, and 423,678 418,595 5,083 1.21 Equipment Right-of-use assets 1,573,532 0 1,573,532 100.00

Intangible Assets 15,655 11,555 4,100 35.48

Other Assets 128,702 133,817 (5,115) (3.82)

Total Assets 4,501,342 2,912,969 1,588,373 54.53

Current Liabilities 1,497,146 1,125,307 371,839 33.04

Non-current liabilities 1,177,515 23,467 1,154,048 4,917.75

Total Liabilities 2,674,661 1,148,774 1,525,887 132.83

Share Capital 323,895 323,895 0 0.00

Capital Surplus 809,816 809,816 0 0.00

Retained Earnings 710,470 661,867 48,603 7.34

Other Equity (17,500) (31,383) 13,883 (44.24)

Total Equity 1,826,681 1,764,195 62,486 3.54

Explanation for items of material change: (where the change before and after the period reaches above 20%, and the change amount reaches NT$ 10 million)

-157- (II) Consolidated financial position: State any material changes in asset, liability or shareholders' equity in the last two years, along with causes and impacts of such changes and response plans if the impact is material. Unit: in NTD in thousands Year Difference December 31, December 31, 2019 2018 Item Amount %

Current Assets 2,372,633 2,358,449 14,184 0.60 Investment accounted for 17,903 10,726 7,177 66.91 using the equity method Property, Plants, and 430,702 424,793 5,909 1.39 Equipment Right-of-use assets 1,594,742 0 1,594,742 100.00

Intangible Assets 15,761 11,835 3,926 33.17

Other Assets 138,702 144,505 (5,803) (4.02)

Total Assets 4,570,443 2,950,308 1,620,135 54.91

Current Liabilities 1,515,894 1,136,192 379,702 33.42

Non-current liabilities 1,191,679 25,260 1,166,419 4,617.65

Total Liabilities 2,707,573 1,161,452 1,546,121 133.12

Share Capital 323,895 323,895 0 0.00

Capital Surplus 809,816 809,816 0 0.00

Retained Earnings 710,470 661,867 48,603 7.34

Other Equity (17,500) (31,383) 13,883 (44.24) Equity attributable to stockholders of the parent 1,826,681 1,764,195 62,486 3.54 company Non-controlling Interest 36,189 24,661 11,528 46.75

Total Equity 1,862,870 1,788,856 74,014 4.14

Explanation for items of material change: (where the change before and after the period reaches above 20%, and the change amount reaches NT$ 10 million)

-158- II. Financial Performance (I) Standalone financial performance: Main causes of significant changes in revenues, operating profits, and profit before tax in the last 2 years, expected sales volume and basis of estimation, possible impacts on the Company's future financial/business performance, and response plans: Unit: in NTD in thousands Year Increase/Decrease Change ratio 2019 2018 Item amount (%) Net operating 5,404,205 5,170,958 233,247 4.51 Revenue Operating costs 3,995,469 3,824,955 170,514 4.46 Gross Profit 1,408,736 1,346,003 62,733 4.66 Operating expenses 1,208,094 1,146,451 61,643 5.38 Operating profit 200,642 199,552 1,090 0.55 Non-operating Income and (7,940) (7,824) (116) 1.48 Expenses Net income before 192,702 191,728 974 0.51 tax Income tax expense 30,755 51,079 (20,324) (39.79) Net profit (note) 161,947 140,649 21,298 15.14

Explanation for items of material change: (where the change before and after the period reaches above 20%, and the change amount reaches NT$ 10 million)

-159- (II) Consolidated financial performance: Main causes of significant changes in revenues, operating profits, and profit before tax in the last 2 years, expected sales volume and basis of estimation, possible impacts on the Company's future financial/business performance, and response plans: Unit: in NTD in thousands Year Increase/Decrease Change ratio 2019 2018 Item amount (%)

Net operating Revenue 5,484,492 5,252,104 232,388 4.42

Operating costs 4,061,543 3,894,871 166,672 4.28

Gross Profit 1,422,949 1,357,233 65,716 4.84

Operating expenses 1,248,776 1,189,575 59,201 4.98

Operating profit 174,173 167,658 6,515 3.89 Non-operating Income and 3,813 4,441 (628) (14.14) Expenses Net income before tax 177,986 172,099 5,887 3.42

Income tax expense 30,755 51,079 (20,324) (39.79)

Net profit (note) 147,231 121,020 26,211 21.66 Other comprehensive profit (6,698) 789 (7,487) (948.92) (loss) (net, after tax) Total Comprehensive Income 140,533 121,809 18,724 15.37 Net income attributable to stockholders of the parent 161,947 140,649 21,298 15.14 company Net profit attributable to (14,716) (19,629) 4,913 (25.03) non-controlling interests Net profit (note) 147,231 121,020 26,211 21.66 Comprehensive income attributable to shareholders of 157,127 141,807 15,320 10.80 the parent company Comprehensive income attributable to non-controlling (16,594) (19,998) 3,404 (17.02) interests Net comprehensive income 140,533 121,809 18,724 15.37 Explanation for items of material change: (where the change before and after the period reaches above 20%, and the change amount reaches NT$ 10 million)

-160- (III) Expected sales quantity and basis thereof, and the possible impact on the future financial business of the Company and responsive plan: The Company will continue to expand store locations according to the store expansion plan, and the annual sales target is established based on the previous business performance. In addition, the Company targets the expansion of market share, and effectively gains the revenue of the Company in order to increase the profit of the Company. The Company’s financial condition is proper.

III. Cash flow 1.Analysis of cash flow change for the most recent year (2019): Unit: in NTD in thousands Cash balance at the Annual net cash flow Annual cash Cash surplus Remedy for cash deficit beginning of the year from operating activities flow in (out) (deficit) amount Investment Financial (1) (2) (3) (1)+(2)+(3) plan plan Not Not 1,748,383 784,987 (770,201) 1,763,169 Applicable Applicable 2019 Analysis of the current year cash flow change:

1. Operating activities: The Company continued to profit and generated cash inflow.

2. Investing activities: Mainly due to payment for the new store opening and store renovation.

3. Financing activities: Mainly due to the issuance of cash dividends.

2. Improvement plan for insufficient liquidity: The Company was not subject to any insufficient liquidity of cash flow in the most recent year. 3. Cash liquidity analysis for the next year (2020): Unit: in NTD in thousands Expected annual net Expected Remedy for cash deficit Cash balance at the cash flow Cash surplus annual cash beginning of the year from operating (deficit) amount Investment Financial activities flow in (out) (1) (1)+(2)+(3) plan plan (2) (3) Not Not 1,763,169 414,779 (738,639) 1,439,309 Applicable Applicable

(1) Expanded cash flow analysis for the next year: A. Operating activities: Mainly due to the net cash flow generated from the continuous growth of expected operating performance continues to growth for an amount of NT$ 414,779,000.

-161- B. Investment activities: Mainly due to the expected increase of operating locations with the purchase of fixed assets and increased long-term equity investment, use of intelligent technology related capital expenses, generated a new cash outflow of NT$ 635,367,000. C. Financing activities: Mainly due to the expected payment of 2019 cash dividends, generated a net cash outflow of NT$ 103,212,000. (2) Analysis of remedies for estimated cash shortage and liquidity: Not applicable.

IV. Impacts on financial operations of any major capital expenditures for the most recent fiscal year: In the most recent year, the Company had no major capital expenditure items. However, to increase the profitability in order to increase the shareholders’ interest, the Company still carefully evaluated the execution of domestic store expansion plans. In addition, the overseas market was also evaluated for the most optimal schedule for investment to cope with the recovery of the economy. The sources of capital were all from our own funds without any concerns. In case of any major demand of capital such that a capital gap occurs, the Company is able to perform financing with the financial institution depending upon the profitability and capital cost, or may perform a capital increase by cash to overcome the situation. V. Re-investment Policy of the Most Recent Year, Reasons for Profit (Loss), Improvement Plan and Investment Plan for the Next Year: The reinvestment policy of the Company and the investment plan for the next year are all correlated to the core business operated by the Company. After establishing a solid foundation in the market in Taiwan, to continuously duplicate the successful experience and model, the Company evaluates the expansion of stores domestically, and has also entered the overseas market operations in the joint venture model in 2009 for the first time. In addition, in February 2010, the Company started planning in Xiamen, and by March 2020, the Company opened a total of 11 stores in Xiamen, Fuzhou, Quanzhou, Shanghai, Wuxi Suzhou, etc. In 2019, the Xiamen MOS Burger was still under a state of loss. The Company will continue to correct the operating model, adjust the meal product structure, strengthen employee training, construct operating systems in order to achieve service quality and growth with profit, thereby improving the operating performance as the goal thereof. At the end of 2010, the Company evaluated the market in Australia to be the second overseas operating area. In April 2011, the Company opened the first store in Brisbane,

-162- and as of March 2020, the Company has opened 6 stores in Queensland. For the business entering the Asian region, the Company targets commercial circles with a greater population of Chinese as the priority area for store openings. The Company also continuously corrects the meal product structure according to the local consumption habits, taste, life-style in light of providing quality service, healthy meal products, security and safety of the Company to the consumers in Australia for a completely new dining experience. VI. Analysis and Evaluation of Risk Factors: (I) Impact of interest rate, exchange rate fluctuations, and inflation conditions on the profit/loss of the company in the most recent year and up to the printing date of the annual report and future countermeasures: (1) Impacts of interest rate variation: Unit: in NTD in thousands

Item 2019 2018 Interest income 15,486 14,291 Interest income to net operating revenue ratio (%) 0.28 0.27 Interest income to net income before tax ratio (%) 8.7 8.3 Interest expense -19,706 0 Interest expense to net operating revenue ratio (%) 0.36 0.00 Interest expense to net income before tax ratio (%) 11.1 0.00 Source of information: Consolidated financial statements audited by the CPA. In 2019, with the continuous improvement of operating performance over the previous year, the cash balance increased and the time deposit fund position also increased, such that the interest income was slightly increased. The Company has a proper financial structure and its own capital is sufficient and the capital planning is based on conservative and stable principles. Regarding the interest rate, the Company reviews the research reports of various domestic and foreign economy research institutions and banks in order to understand the future trend of the interest rate. In addition, the Company maintains close contact with corresponding banks in order to understand the interest rate changes at all times. Therefore, the impact of the change of interest rates on the profit/loss of the Company is extremely minor.

-163- (2) Impacts of exchange rate variation: Unit: in NTD in thousands Year/Item 2019 2018 Exchange gain (loss) -2,132 616 Exchange gain (loss) to net operating revenue ratio (%) -0.04 0.01 Exchange gain (loss) to net income before tax ratio (%) -1.2 0.36 Source of information: Consolidated financial statements audited by the CPA. The purchases and sales of the Company use the New Taiwanese Dollar as the currency for calculation. Therefore, the exchange rate has no significant impact on the overall operations of the Company. The Company will still continue to monitor the exchange rate market change information, adjust the relevant investment strategy plans and discuss the relevant international material sources with suppliers in order to stabilize the change of profit/loss of the Company. (3) Impact of Inflation: According to the consumer price index for December 2019 announced by the Directorate-General of Budget, Accounting and Statistics, Executive Yuan, it indicated an annual rise of 1.13%. Since the raw materials of meal products of the Company are mainly agricultural, cattle and fishery, the purchase price of such types of raw materials may be affected by such index. However, its characteristics mostly refer to short-term changes that occurred seasonally. In addition, the Company engages in long-term supply contracts and has more than one supplier, in principle, thus, inflation has not caused any material impact on the Company. However, the Company still monitors relevant changes of raw material prices at all times and adopts greater appropriate stabilization measures when it is considered necessary in order to reduce its impact on the operations of the Company. (II) Policies on engaging in high risk, high leverage investments, loaning funds to others, endorsements and guarantees, as well as derivative transactions, main causes of profit and loss, as well as future countermeasures:

(1) Policies on engaging in high risk, high leverage investments, main causes of profit and loss, as well as future countermeasures: For the most recent year and up to the printing date of the annual report, the Company did not engage in any investments of high risk or high leverage. (2) Policies on loaning funds to others, endorsements and guarantees, as well as derivative transactions, main causes of profit and loss, as well as future countermeasures:

-164- The Company has established the “Regulations for Loaning Funds to Others”, “Procedures for Endorsements and Guarantees”, “Procedures for Acquisition and Disposal of Assets”, etc, as the compliance basis for relevant operations, and such regulations and procedures have been approved through the resolution of the shareholders’ meetings. The Company was not involved in any endorsement, guarantee, or derivative trading in the last year up until the publication date of the annual report. In April 2019, the Board of Directors approved an AUD 1 million loan to MOS BURGER AUSTRALIA PTY. LTD. according to “Management Measures of the Lending Funds to Others”. This loan was later repaid in August and September the same year. (III) Future R&D plans and expected investment in R&D budget: (1) Future R&D plans: To cope with the greater consumer demand changes, R&D and innovation are the key focus of the Company. The development of relevant products of the Company is handled by the marketing planning unit and the development unit for the planning and development of products. R&D trial making is performed internally, and professional food contractors are entrusted to provide assistance or relevant product information is obtained from Japanese MOS Burger in order to perform development. In addition, relevant consumer questionnaire surveys, preparation instructions, trial sales, and commercialization introduction are performed in order to ensure the meal quality and diversity of the product content of the Company. For future R&D plans, please refer to the explanation of the Annual Report, “V. Operation Highlights/ 1. Content of Business/(1) Content of Business (5) New products newly launched and planned recently. (2) Expected R&D budget: In 2020, according to the development progress of new meal products, new technologies and new services, etc, the Company expects to invest the R&D budget at an amount of approximately NT$ 6.36 million, and will maintain a certain level of growth depending upon the operation status, in order to maintain the market differential strategy of the Company and to ensure the increase of competitive advantages. (IV) Impacts of important domestic/foreign policies and changes of laws on the financial business of the company and countermeasures: The Company closely monitors and understands any policies that may affect the operations of the Company, including food safety related laws and also cooperatively adjusts the internal relevant systems and business operations of

-165- the Company. Consequently, such policies and legal changes have not caused any material impact on the financial business of the Company. (V) Impacts of changes in technology and industry on the financial business of the company and countermeasures: The Company closely monitors trends concerning e-commerce, mobile communication, private consumption, and changes in technology. An “Online Business Office” was created in 2015 to oversee development of e-commerce and online marketing, whereas the 2nd generation MOS Card was introduced in 2016 along with a “self-service kiosk” to signify the organization’s transition toward digital, cloud-based, and smart services. In 2017, the 2nd generation MOS Card was enhanced with an online credit card top-up feature. In regards to information security risk management: The Company assembled a “Smart Technology Committee” on June 7, 2017 to support information security management. The committee functions as the ultimate decision maker for issues concerning information management and technology development, and supervises the making, documentation, and execution of information security management policies in accordance with the Company’s “Information Security Organization and Responsibility Procedures”. Information security management review meetings are held on a yearly basis. The participants include: Chairman’s special assistant as the lead member, head of the Information Technology Department as the executive secretary, and members of the Information Section and Internal Audit Office as information security representatives. “Management Review Meetings” have been convened annually since November 2018, during which the participants engage themselves in the discussion of internal as well as external issues concerning the information security management system, and review/revise the yearly risk assessment and risk management plan to effectively reduce business risks. Information security policy: The information security policy has been created to: support continuity of the Company’s operations, ensure compliance with laws, protect information assets against external threats or prevent them from improper management, use, alteration, disclosure, corruption or loss by insiders, ensure the confidentiality, integrity, and usability of information assets, fulfill legal requirements on personal information, support a robust information security management system and

-166- guidelines, and thereby effectively reduce the business risks of the Company. The following targets have been created to ensure the accomplishment of the purposes mentioned above: (1) Information security measures and practices shall be compliant with the security policies and requirements of existing laws, information security audits are to be performed on a yearly basis. (2) The business continuity plan shall be tested and re-examined on a yearly basis. (3) All information assets shall be subjected to risk assessment and properly protected against damage caused by unauthorized access or negligence. (4) All information security incidents or potential weaknesses shall be highlighted through proper reporting procedures, and adjusted and rectified in an appropriate manner. (5) The Company’s information security management system shall be regularly examined to ensure that it continues to remain effective. (6) Information security training shall be conducted regularly and on an ad-hoc basis if necessary. (7) Any employee who commits a violation against this policy shall be disciplined according to the relevant rules, and may be subject to civil, criminal, or administrative liability depending on the severity of the offense. Management practices: The Company has not purchased information security insurance due to concerns regarding the scope of coverage and claims. However, the Company has made additional investments into information assets, including HA and HCI for operational assets and off-site IDC for critical equipment to ensure undisrupted service. Due to the increasing frequency of information security threats such as ransomware, DDos, and APT in recent years, the Company has invested extensively to establish a robust firewall and incorporate security equipment such as VPN to support daily operations. Furthermore, security inspections, equipment health checks, and security incident drills are held on a yearly basis to reduce the operational impact from information security risks. The Company passed certification for ISO/IEC27001:2013 and CNS27001:2014 - Information Security in December 2018, and has since been promoting information security management and improving risk management practices since then. On December 16, 2019, the Company passed the second year review of its

-167- information security certification. In view of the changes in the most recent year, it had not caused any major impacts on the financial condition of the Company. (VI) Impacts of change of the corporate image on the corporate crisis management and countermeasures: Since its establishment, the Company has complied with the relevant regulatory requirements, and actively strengthens internal management and increases management quality and performance, as well as maintains a harmonious labor management relationship, in order to continuously maintain an excellent corporate image. In addition, the Company is committed to achieving greater business relationship with the external environment and consumers. MOS Burger has gained consumer popularity and has also earned high praise from consumers up to the present day. In recent years, there have been no events affecting the corporate image requiring corporate crisis handling. (VII) Expected benefit, possible risks, and countermeasures for merger: For the most recent year and up to the printing date of the annual report, the Company was not subject to any merger. In the future, if the Company has any merger plan, the Company will maintain a careful assessment attitude to sufficiency consider the synergy of a merger in order to ensure the interest of all shareholders. (VIII) Expected benefits, possible risks, and countermeasures for expansion of the facilities: The Company operates with the business model of a chain store, and presently, the Company does not own its factory or facility. However, in the future, if the Company has plans for the construction of a plant, the Company will maintain a careful assessment attitude to sufficiency consider the benefits and risk of plant expansion in order to ensure the interest of all shareholders. (IX) Risks faced during material incoming and sales centralization, as well as countermeasure: (1) Risks faced during incoming material centralization and countermeasures: The Company is a business operator in a chain catering store. Since there is a consideration in the consistency of meal taste and quality, the situation of large raw materials with centralized purchasing occurs. However, this is a characteristic of the business, and the Company has maintained excellent relationships with suppliers of large raw material purchases for a long time. Consequently, there is no risk due to the centralization of materials purchases. (2) Risks faced during product sales centralization and countermeasures: The sales targets of the Company are mostly general consumers. Therefore, there

-168- is no centralization of sales. (X) Impacts, risks, and countermeasures of directors, supervisors, or shareholders with a shareholding percentage exceeding 10%, large equity transfer, or change on the company: For the most recent years and up to the printing date of the annual report of the Company, there were no events of large equity transfers or changes of the directors, supervisors, or shareholders with a shareholding percentage exceeding 10%. (XI) Impacts, risks, and countermeasures of changes in management rights to the Company: The directors and supervisors of the Company have participated in the operations of the Company for a long period of time with successful achievements in the operations. The shareholders recognize the development directions of the Company. Therefore, the Company is not subject to any changes in management rights or any events that may cause an impact or risks to the Company. (XII) The Company and director, supervisor, president, substantial responsible person of the Company, major shareholders with a shareholding percentage exceeding 10% and affiliates of the Company that have received any affirmative ruling or are involved in any pending major litigation, non-contentious case or administrative dispute event, and the result thereof may have a major impact on the shareholders’ rights or stock price, relevant dispute facts, subject matter amount, litigation starting date, main parties involved in the litigation and the handling status up to the printing date of annual report required to be disclosed: None.

(XIII) Other significant risks and countermeasure: None.

VII. Other material matters: None.

-169- Eight. SPECIAL DISCLOSURES

I. Affiliated enterprise-related information (I) Affiliated enterprise consolidated business report 1. Affiliated enterprise organizational chart: December 31, 2019

AN-SHIN FOOD SERVICES CO., LTD.

41.30%

AN-SHIN FOOD SERVICES (SINGAPORE) PTE. LTD.

100%

Xiamen An Shin Food Management Co., Ltd.

2. Affiliated enterprise basic information Establishment Main business Enterprise name Address Paid-in capital date items AN-SHIN FOOD 47 Tuas Avenue 9 Investment SERVICES (SINGAPORE) 2009.5.19 USD 20,375,001 Singapore 639190 holding PTE. LTD. Room 202, No. 16, Xiamen An Shin Food Xinfeng 3rd Road, Huoju Catering 2009.11.17 USD 19,875,000 Management Co., Ltd. Park, Huoju Kaoxin management District, Xiamen

3. Information on identical shareholders for affiliates inferred to have control and dominant-subordinate relationship: None. 4. Director and supervisor information of each affiliated enterprise: Unit: shares; % Shares Enterprise name Job Title Name or representative Number of Shareholding Shares ratio (%) AN-SHIN FOOD AN-SHIN FOOD SERVICES CO., SERVICES (SINGAPORE) Chairperson LTD. 8,414,000 41.30 PTE. LTD. Representative: Lin, Chien-Yuan Director Yeh, Chun-Hsien - -

-170- Shares Enterprise name Job Title Name or representative Number of Shareholding Shares ratio (%) Kuang Yuan Industrial Co., Ltd. Director 1,287,100 6.32 Representative: Kao, Shun-Hsing MOS Food Services Inc. Director 2,103,600 10.32 Representative: Jun Takifuka Xiamen An Shin Food An-Shin Food Services Management Co., Ltd. Chairperson (Singapore) Pte. Ltd. 19,875,000 100.00 Representative: Lin, Chien-Yuan An-Shin Food Services Director (Singapore) Pte. Ltd. 19,875,000 100.00 Representative: Kao, Shun-Hsing An-Shin Food Services Director (Singapore) Pte. Ltd. 19,875,000 100.00 Representative: Shirley Huang An-Shin Food Services Director (Singapore) Pte. Ltd. 19,875,000 100.00 Representative: Akio Fukumitsu An-Shin Food Services Supervisor (Singapore) Pte. Ltd. 19,875,000 100.00 Representative: Takuma Naito An-Shin Food Services (Singapore) Pte. Ltd. Supervisor 19,875,000 100.00 Representative: Huang, Mao-Hsiung

5. Operating summary of each affiliated enterprise: Unit: in NTD in thousands Total Operating Current Paid-in Total Operating Enterprise name Liabilities Net worth profit profit (loss) capital Assets revenue (loss) (after tax) AN-SHIN FOOD SERVICES 618,332 61,781 130 61,651 - (152) (24,957) (SINGAPORE) PTE. LTD. Xiamen An Shin Food 600,741 89,700 32,963 56,737 80,287 (26,627) (24,924) Management Co., Ltd.

-171- (II) Affiliated Enterprise Consolidated Financial Statements

AN-SHIN FOOD SERVICES CO., LTD.

Affiliated Enterprise Consolidated Financial Statement Declaration

Our Company hereby declares that the companies required to be incorporated into the preparation of the consolidated financial statement of the affiliates according to the “Criteria

Governing Preparation of Affiliation Reports, Consolidated Business Reports, and

Consolidated Financial Statements of Affiliated Enterprises” are identical with the companies required to be incorporated into the preparation of the consolidated financial statement of affiliates and parent company according to the “International Financial

Reporting Standards 10 (IFRS 10)” for the year of 2019 (from January 1 to December 31,

2019). In addition, relevant information required to be disclosed in the consolidated financial statement of the affiliates has been disclosed completely in the consolidated financial statement of affiliates and parent company. Accordingly, no separate consolidated financial statement of the affiliates is further provided.

Declared by

Company Name: AN-SHIN FOOD SERVICES CO., LTD.

Person-in-charge: Lin, Chien-Yuan

February 25, 2020

-172- (III) Affiliated enterprise report: None

II. Any Private Placement of Securities within the Latest Fiscal Year and as of the Date of the Annual Report: None.

III. Any Share Ownership and Disposal of Shares of the Company by Subsidiaries within the Latest Fiscal Year and as of the Date of the Annual Report: None.

IV. Additional Information Required to be Disclosed - Company’s TPEx Listing commitments

TPEx listing Date: December 15, 2011

Handling Status of TPEx Listing Commitments Commitments

The Company commits to further include in the “Procedures for The Company has completed

Acquisition or Disposal of Assets” the following content stating “The the addition of such content in company shall not waive the pre-emptive right to subscribe the new the ordinary shareholders’ shares of adopted the proposal of investment of An-Shin Food Services meeting on June 14, 2012.

(Singapore) Pte. Ltd. (hereinafter referred to as the “An-Shin

(Singapore)”). An-Shin (Singapore) shall not waive the pre-emptive right to subscribe to the new shares of adopted Xiamen An Shin Food

Management Co., Ltd. (Xiamen) for the coming years. If in the future where the Company needs to waive its pre-emptive right or dispose of the shares of aforesaid companies due to strategic alliance considerations or other consent of Taipei Exchange (TPEx), such plan shall be approved by the special resolution of the Board of Directors.” In addition, in case of any amendments to such regulations, it shall be input into the

Market Observation Post System (MOPS) for material information disclosure and shall be reported to TPEx for recordation.

Nine. For the most recent year and up to the printing date of the annual report, events having material impact on shareholders' rights and interests or securities prices according to Subparagraph 2 of Paragraph 3 of Article 36

of the Securities and Exchange Act: None.

-173- Appendix I

AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2019 AND 2018

------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.

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REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of An-Shin Food Services Co., Ltd.

Opinion We have audited the accompanying consolidated balance sheets of An-Shin Food Services Co., Ltd. and its subsidiaries (the “Group”) as at December 31, 2019 and 2018, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

The key audit matters in relation to the consolidated financial statements for the year ended December 31, 2019 are outlined as follows:

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Audit of POS system and accuracy in recognition of retail sales revenue

Description For accounting policies applied on operating revenue, please refer to Note 4(27). For details of operating revenue accounts, please refer to Note 6(19). An-Shin Food Services Co., Ltd. is primarily engaged in the operation of food chains and beverage service activities in Taiwan and Xiamen. Sales revenue arises mainly through direct retail sales to customers in stores. Sales revenue was $5,484,492 thousand for the year ended December 31, 2019. The Company has a large number of stores which handles significant cash and revenue daily including sales of merchandise, voucher and stored-value card topped-up, etc. The amount of cash receipts rely on POS system to collect and summarise transaction records, and generate information for accounting department to make appropriate accounting entries in the accounting system. Although each transaction is low-valued, we consider the audit of POS system and accuracy in recognition of retail sales revenue a key audit matter, given the voluminous number of retail sales transactions.

How our audit addressed the matter We performed the following audit procedures to address the abovementioned key audit matter: (a) Selected samples and checked whether the merchandise master file data in the POS system are properly maintained and approved. (b) Observed the database setting of sales information in the POS system, and selected samples and checked whether the sales information in POS system are completely transferred to the ERP system. (c) Selected samples and checked whether sales revenue with the POS system in stores are consistent with the POS system in headquarters. (d) Selected samples and checked whether sales revenue vouchers issued manually are consistent with stores’ operating income report generated by the POS system.

Other matter - Parent company only financial reports We have audited and expressed an unmodified opinion on the parent company only financial statements of An-Shin Food Services Co., Ltd. as at and for the years ended December 31, 2019 and 2018.

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Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including independent directors and supervisors, are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ROC GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (a) Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement

~177~

resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. (b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. (c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. (d) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. (e) Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Chih, Ping-Chiun Wu, Yu-Lung

For and on behalf of PricewaterhouseCoopers, Taiwan February 25, 2020 ------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 report of independent accountants 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.

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AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

December 31, 2019 December 31, 2018 Assets Notes AMOUNT % AMOUNT %

Current assets

1100 Cash and cash equivalents 6(1) $ 1,763,169 39 $ 1,748,383 59

1110 Financial assets at fair value through 6(2)

profit or loss - current 139,654 3 139,136 5

1170 Accounts receivable, net 6(4) 87,222 2 101,423 3

1200 Other receivables 9,260 - 3,175 -

1210 Other receivables - related parties 7 3,604 - 16,791 1

130X Inventories, net 6(5) 48,018 1 41,932 1

1410 Prepayments 20,980 - 27,174 1

1470 Other current assets 6(1) and 8 300,726 7 280,435 10

11XX Total current assets 2,372,633 52 2,358,449 80

Non-current assets

1517 Non-current financial assets at fair 6(3)

value through other comprehensive

income 100 - - -

1550 Investments accounted for using 6(6)

equity method 17,903 - 10,726 -

1600 Property, plant and equipment, net 6(7) and 7 430,702 10 424,793 15

1755 Right-of-use assets 6(8) and 7 1,594,742 35 - -

1780 Intangible assets 6(9) and 7 15,761 - 11,835 -

1840 Deferred income tax assets 6(24) 29,950 1 33,469 1

1900 Other non-current assets 6(10) 108,652 2 111,036 4

15XX Total non-current assets 2,197,810 48 591,859 20

1XXX Total assets $ 4,570,443 100 $ 2,950,308 100

(Continued)

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AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

December 31, 2019 December 31, 2018 Liabilities and Equity Notes AMOUNT % AMOUNT % Current liabilities 2130 Current contract liabilities 6(19) $ 309,463 7 $ 281,335 9 2150 Notes payable 1,026 - 640 - 2170 Accounts payable 151,594 3 193,850 6 2180 Accounts payable - related parties 7 103,568 2 135,522 5 2200 Other payables 6(11) 457,202 10 460,486 16 2220 Other payables - related parties 7 30,320 1 34,627 1 2230 Current income tax liabilities 6(24) 7,001 - 29,732 1 2280 Current lease liabilities 6(8) 450,920 10 - - 2300 Other current liabilities 6(12) 4,800 - - - 21XX Total current liabilities 1,515,894 33 1,136,192 38 Non-current liabilities 2550 Provisions for liabilities - non-current 6(14) 18,343 1 18,194 1 2570 Deferred income tax liabilities 6(24) 2,318 - 2,375 - 2580 Non-current lease liabilities 6(8) 1,160,330 25 - - 2600 Other non-current liabilities 6(13) 10,688 - 4,691 - 25XX Total non-current liabilities 1,191,679 26 25,260 1 2XXX Total liabilities 2,707,573 59 1,161,452 39 Equity Equity attributable to owners of parent Share capital 6(15) 3110 Share capital - common stock 323,895 7 323,895 11 Capital surplus 6(16) 3200 Capital surplus 809,816 18 809,816 27 Retained earnings 6(17) 3310 Legal reserve 153,920 3 139,855 5 3320 Special reserve 21,260 - 4,897 - 3350 Unappropriated retained earnings 535,290 12 517,115 18 Other equity interest 6(18) 3400 Other equity interest ( 7,377) - ( 21,260) (1) 3500 Treasury stocks 6(15) ( 10,123) - ( 10,123) - 31XX Equity attributable to owners of the parent 1,826,681 40 1,764,195 60 36XX Non-controlling interest 36,189 1 24,661 1 3XXX Total equity 1,862,870 41 1,788,856 61 Significant contingent liabilities and 7 and 9 unrecognised contract commitments 3X2X Total liabilities and equity $ 4,570,443 100 $ 2,950,308 100 The accompanying notes are an integral part of these consolidated financial statements.

~181~ AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Year ended December 31 2019 2018 Items Notes AMOUNT % AMOUNT % 4000 Revenue 6(19) and 7 $ 5,484,492 100 $ 5,252,104 100 5000 Operating costs 6(5)(13)(22)(23) and 7 ( 4,061,543) ( 74) ( 3,894,871) (74 ) 5900 Net operating margin 1 ,422,949 26 1,357,233 26 Operating expenses 6(7)(8)(9)(13)(22 )(23) and 7 6100 Selling expenses ( 805,236) ( 15) ( 760,346) (15 ) 6200 Administrative expenses ( 443,540) ( 8) ( 429,229) (8 ) 6000 Total operating expenses ( 1,248,776) ( 23) ( 1,189,575) (23 ) 6900 Operating profit 1 7 4 ,173 3 167,658 3 Non-operating income and expenses 7010 Other income 6(20) and 7 4 3 ,246 1 40,283 1 7020 Other gains and losses 6(2)(21) ( 1,169) - ( 19,702) (1 ) 7050 Finance costs 6(8) ( 19,706) ( 1) - - 7060 Share of loss of associates and 6(6) joint ventures accounted for using equity method ( 18,558) - ( 16,140) - 7000 Total non-operating income and expenses 3 ,813 - 4,441 - 7900 Profit before income tax 1 7 7 ,986 3 172,099 3 7950 Income tax expense 6(24) ( 30,755) - ( 51,079) (1 ) 8200 Profit for the year $ 147,231 3 $ 121,020 2 Other comprehensive income, net 6(3)(13)(18)(24) Components of other comprehensive income that will not be reclassified to profit or loss 8311 (Losses) gains on remeasurements of defined benefit plans ( $ 8,034) - $ 891 - 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 2 ,562 - - - 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 1 ,606 - 430 - 8310 Components of other comprehensive (loss) income that will not be reclassified to profit or loss ( 3,866) - 1,321 -

(Continued)

~182~ AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Year ended December 31 2019 2018 Items Notes AMOUNT % AMOUNT % Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements ( $ 3,071) - ($ 856) - 8399 Income tax relating to the components of other comprehensive income that will be reclassified 239 - 324 - 8360 Components of other comprehensive loss that will be reclassified to profit or loss ( 2,832) - ( 532) - 8300 Total other comprehensive (loss) income, net of tax, for the year ( $ 6,698) - $ 789 - 8500 Total comprehensive income for the year $ 140,533 3 $ 121,809 2 Profit (loss) attributable to: 8610 Owners of the parent $ 161,947 3 $ 140,649 3 8620 Non-controlling interest ( 14,716) - ( 19,629) (1 ) $ 147,231 3 $ 121,020 2 Comprehensive income (loss) attributable to: 8710 Owners of the parent $ 157,127 3 $ 141,807 2 8720 Non-controlling interest ( 16,594) - ( 19,998) - $ 140,533 3 $ 121,809 2

Earnings per share (in dollars) 6(25) 9750 Basic earnings per share $ 5.02 $ 4.36

9850 Diluted earnings per share $ 5.01 $ 4.35

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

~183~ AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent Retained Earnings Other equity interest Unrealised gains (losses) from financial assets Exchange differences measured at fair Capital surplus, on translation of value through other additional paid-in Unappropriated retained foreign financial comprehensive Notes Common stock capital Legal reserve Special reserve earnings statements income Treasury stocks Total Non-controlling interest Total equity

2018 Balance at January 1, 2018 6(15)(16)(17) (18) $ 323,895 $ 809,816 $ 122,992 $ 6,686 $ 487,905 ($ 6,260 ) ($ 14,837 ) ($ 10,123 ) $ 1,720,074 $ 44,659 $ 1,764,733 Effect of retrospective application and retrospective adjustment - - - - 16,200 - - - 16,200 - 16,200 Balance at 1 January after adjustments 323,895 809,816 122,992 6,686 504,105 ( 6,260 ) ( 14,837 ) ( 10,123 ) 1,736,274 44,659 1,780,933 Profit (loss) for the year 6(25) - - - - 140,649 - - - 140,649 ( 19,629 ) 121,020 Other comprehensive income (loss) for the year 6(18) - - - - 1,321 ( 163 )- - 1,158 ( 369 ) 789 Total comprehensive income (loss) - - - - 141,970 ( 163 )- - 141,807 ( 19,998 ) 121,809 Changes in equity due to not participating in the 6(6) capital increase of associates proportionately - ---(932)- - - ( 932 ) - ( 932 ) Appropriation and distribution 2017 retained 6(17) earnings Legal reserve - - 16,863 - ( 16,863 ) ------Reversal of special reserve - - - ( 1,789 ) 1,789 ------Cash dividends - - - - ( 112,954 ) - - - ( 112,954 ) - ( 112,954 ) Balance at December 31, 2018 $ 323,895 $ 809,816 $ 139,855 $ 4,897 $ 517,115 ($ 6,423 ) ($ 14,837 ) ($ 10,123 ) $ 1,764,195 $ 24,661 $ 1,788,856 2019 Balance at January 1, 2019 6(15)(16)(17) (18) $ 323,895 $ 809,816 $ 139,855 $ 4,897 $ 517,115 ($ 6,423 ) ($ 14,837 ) ($ 10,123 ) $ 1,764,195 $ 24,661 $ 1,788,856 Effect of retrospective application and 3(1) retrospective adjustment - - - - 13,282 - - - 13,282 949 14,231 Balance at 1 January after adjustments 323,895 809,816 139,855 4,897 530,397 ( 6,423 ) ( 14,837 ) ( 10,123 ) 1,777,477 25,610 1,803,087 Profit (loss) for the year 6(25) - - - - 161,947 - - - 161,947 ( 14,716 ) 147,231 Other comprehensive income (loss) for the year 6(18) - - - - ( 6,428 ) ( 954 ) 2,562 - ( 4,820 ) ( 1,878 ) ( 6,698 ) Total comprehensive income - - - - 155,519 ( 954 ) 2,562 - 157,127 ( 16,594 ) 140,533 Changes in non-controlling interests ------22,020 22,020 Changes in equity due to not participating in the 6(6) capital increase of associates proportionately - - - - ( 5,953 ) - - - ( 5,953 ) - ( 5,953 ) Transactions with non-controlling interests 6(28) - - - - ( 5,153 ) - - - ( 5,153 ) 5,153 - Proceeds from disposal of financial assets at fair 6(3) value through other comprehensive income - - - - ( 12,275 ) - 12,275 -- -- Appropriation and distribution 2018 retained 6(17) earnings Legal reserve - - 14,065 - ( 14,065 ) ------Special reserve - - - 16,363 ( 16,363 ) ------Cash dividends - - - - ( 96,817 ) - - - ( 96,817 ) - ( 96,817 ) Balance at December 31, 2019 $ 323,895 $ 809,816 $ 153,920 $ 21,260 $ 535,290 ($ 7,377 )$ - ($ 10,123 ) $ 1,826,681 $ 36,189 $ 1,862,870

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

~184~ AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

Notes 2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax $ 177,986 $ 172,099 Adjustments Adjustments to reconcile profit (loss) Gain (loss) on current financial assets at fair 6(2)(21) value through profit or loss ( 15,850 ) 10,011 Depreciation 6(7)(8)(22) 686,084 173,514 Amortisation 6(9)(22) 10,939 12,978 Interest income 6(20) ( 15,486 ) ( 14,291 ) Dividend income 6(20) ( 2,027 ) ( 1,310 ) Interest paid 6(8) 19,706 - Impairment loss 6(7)(21) 8,550 1,764 Loss on disposal of property, plant and 6(21) equipment 32 1,828 Share of loss of associates and joint ventures 6(6) accounted for using equity method 18,558 16,140 Changes in operating assets and liabilities Changes in operating assets Accounts receivable, net 6(4) 14,201 ( 16,962 ) Other receivables ( 5,747 ) 3,311 Other recievable-related parties 7 13,187 ( 13,068 ) Inventories, net 6(5) ( 6,086 ) 3,921 Prepayments 481 14,582 Other current assets ( 291 ) 27 Changes in operating liabilities Contract liabilities - current 6(19) 28,128 27,474 Notes payable 386 640 Accounts payable ( 42,256 ) 10,423 Accounts payable - related parties 7 ( 31,954 ) 9,758 Other payables 6(11) ( 17,880 ) 9,456 Other payables - related parties 7 ( 5,344 ) 726 Other current liabilities 6(12) 4,800 - Provisions for liability - non-current 6(14) 149 988 Cash inflow generated from operations 840,266 424,009 Interest received 15,148 13,874 Income tax paid ( 52,748 ) ( 53,096 ) Dividend received 6(20) 2,027 1,310 Imputed interest on lease liabilities paid 6(8) ( 19,706 ) - Net cash flows from operating activities 784,987 386,097

(Continued)

~185~ AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

Notes 2019 2018

CASH FLOWS FROM INVESTING ACTIVITIES Increase in current financial assets at fair value through profit or loss ($ 101,671 ) ($ 55,572 ) Proceeds from disposal of current financial assets at fair value through profit or loss 117,003 89,412 Increase in pledged certificate of deposit 8 ( 20,000 ) ( 30,000 ) Increase in non-current financial assets at fair value through other comprehensive income ( 100 ) - Proceeds from disposal of non-current financial 6(3) assets at fair value through other comprehensive income 2,562 - Increase in investments accounted for using the 6(6) equity method ( 31,545 ) ( 19,699 ) Acquisition of property, plant and equipment 6(7)(27) ( 148,140 ) ( 265,518 ) Proceeds from disposal of property, plant and equipment 10 138 Acquisition of intangible assets 6(9) ( 14,870 ) ( 3,883 ) Increase in refundable deposits 6(10) ( 2,515 ) ( 6,690 ) Decrease (increase) in other non-current assets 6(10) 4,899 ( 4,438 ) Net cash flows used in investing activities ( 194,367 ) ( 296,250 ) CASH FLOWS FROM FINANCING ACTIVITIES Decrease in lease liabilities 6(8) ( 495,615 ) - Decrease in other non-current liabilities ( 2,037 ) ( 990 ) Cash dividends paid 6(17) ( 96,817 ) ( 112,954 ) Change in non-controlling interests 22,020 - Net cash flows used in financing activities ( 572,449 ) ( 113,944 ) Effect of exchange rate changes on cash and cash equivalents ( 3,385 ) ( 377 ) Net increase (decrease) in cash and cash equivalents 14,786 ( 24,474 ) Cash and cash equivalents at beginning of year 1,748,383 1,772,857 Cash and cash equivalents at end of year $ 1,763,169 $ 1,748,383

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

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AN-SHIN FOOD SERVICES CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(a) HISTORY AND ORGANISATION An-Shin Food Services Co., Ltd. (the “Company”) was incorporated on December 4, 1990 under the provisions of the Company Act of the Republic of China (R.O.C.) and Statute For Investment By Foreign Nationals. As of December 31, 2019, the Company’s contributed capital was $323,895. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in sales and marketing consultancy of hamburgers, managing coffee shops and restaurants. The shares of the Company have been listed in the R.O.C. Over-the-Counter (OTC) market since December 15, 2011. (b) THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION These consolidated financial statements were reported to the Board of Directors on February 20, 2020. (c) APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS A. 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 endorsed by the FSC effective from 2019 are as follows: Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 9, ‘Prepayment features with negative January 1, 2019 compensation’ IFRS 16, ‘Leases’ January 1, 2019 Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019 Amendments to IAS 28, ‘Long-term interests in associates January 1, 2019 and joint ventures’ IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019 Annual improvements to IFRSs 2015-2017 cycle January 1, 2019 Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. IFRS 16, ‘Leases’ (a) IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognise a ‘right-of-use asset’ and a lease liability (except for

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those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors. (b) The Group has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Group increased ‘right-of-use asset’, ‘lease liability’, retained earnings and non-controlling interest by $1,809,249, $1,809,249, $13,282 and $949, respectively, and decreased prepayments, other payables and deferred income tax assets by $5,713, $24,345 and $4,401, respectively, with respect to the lease contracts of lessees on January 1, 2019. (c) The Group has used the following practical expedients permitted by the standard at the date of initial application of IFRS 16: A. Reassessment as to whether a contract is, or contains, a lease is not required, instead, the application of IFRS 16 depends on whether or not the contracts were previously identified as leases applying IAS 17 and IFRIC 4. B. The use of a single discount rate to a portfolio of leases with reasonably similar characteristics. C. The exclusion of initial direct costs for the measurement of ‘right-of-use asset’. D. The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. (d) The Group calculated the present value of lease liabilities by using weighted average incremental borrowing interest rate of 1.2%. (e) The Group recognised lease liabilities which had previously been classified as ‘operating leases’ under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments under IAS 17 measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as follows: Operating lease commitments disclosed by applying IAS 17 as at $ 1,850,741 December 31, 2018 Less: Short-term leases ( 1,291) Total lease contracts amount recognised as lease liabilities by 1,849,450 applying IFRS 16 on January 1, 2019 Incremental borrowing interest rate at the date of initial application 1.2% Lease liabilities recognised as at January 1, 2019 by applying $ 1,809,249 IFRS 16

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B. Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of January 1, 2020 Material’ Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020 Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark January 1, 2020 reform’ The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. C. 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: Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board 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’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2021 Amendments to IAS 1, ‘Classification of liabilities as current or January 1, 2022 noncurrent’ The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. (d) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. A. Compliance statement The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”). D. Basis of preparation A. Except for the following items, the consolidated financial statements have been prepared under

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

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Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of. B. Subsidiaries included in the consolidated financial statements: Ownership (%) Main Name of Name of business December December investor subsidiary activities 31, 2019 31, 2018 Description An-Shin Food An-Shin Food Investment 41.30 40.35 Notes 1 Services Services (Singapore) holdings and 2 Co., Ltd. Pte. Ltd. for overseas ventures An-Shin Food Xia Men Restaurant 100 100 Note 3 Services An-Shin Food management: (Singapore) Management Co., restaurant Pte. Ltd. Ltd. services (limited to branches) Note 1: As of December 31, 2019, although the Company only owns 41.30% of the voting right stocks of An-Shin Food Services (Singapore) Pte. Ltd., it is included in the consolidation as the Company exercises substantial control over it. Note 2: In the first quarter of 2019, the company increased its capital, and certain shareholders of the company did not participate in the capital increase proportionately, therefore, the Group’s shareholding ratio in the company was changed. Note 3: Xia Men An-Shin Food Management Co., Ltd. is a subsidiary of An-Shin Food Services (Singapore) Pte. Ltd. Thus, the Company indirectly invested in the company and has substantial control over it. 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: As of December 31, 2019 and 2018, the non-controlling interest amounted to $36,189 and $24,661, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

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Non-controlling interest Principal place December 31, 2019 December 31, 2018 Name of subsidiary of business Amount Ownership Amount Ownership An-Shin Food Services Singapore $ 36,189 58.70% $ 24,661 59.65% (Singapore) Pte. Ltd. Xia Men An-Shin Food China 33,305 58.70% 21,637 59.65% Management Co., Ltd. Summarised financial information of the subsidiaries: Balance sheets

An-Shin Food Services (Singapore) Pte. Ltd. December 31, 2019 December 31, 2018 Current assets $ 5,045 $ 5,221 Non-current assets 56,737 36,274 Current liabilities ( 131) ( 154) Total net assets $ 61,651 $ 41,341

Xia Men An-Shin Food Management Co., Ltd. December 31, 2019 December 31, 2018 Current assets $ 51,359 $ 32,052 Non-current assets 38,340 17,165 Current liabilities ( 18,799) ( 11,151) Non-current liabilities ( 14,163) ( 1,792) Total net assets $ 56,737 $ 36,274

Statements of comprehensive income An-Shin Food Services (Singapore) Pte. Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Revenue $ - $ - Loss before income tax ( 24,957) ( 32,906) Income tax expense - - Loss for the year from continuing operations ( 24,957) ( 32,906) Loss from discontinued operations - - Loss for the year ( 24,957) ( 32,906) Other comprehensive loss, net of tax ( 3,312) ( 621) Total comprehensive loss for the year ($ 28,269) ($ 33,527) Comprehensive loss attributable to ($ 16,594) ($ 19,998) non-controlling interest Dividends paid to non-controlling interest $ - $ -

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Xia Men An-Shin Food Management Co., Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Revenue $ 80,287 $ 81,146 Loss before income tax ( 24,924) ( 32,850) Income tax expense - - Loss for the period from continuing operations ( 24,924) ( 32,850) Loss from discontinued operations - - Loss for the year ( 24,924) ( 32,850) Other comprehensive loss, net of tax - - Total comprehensive loss for the year ($ 24,924) ($ 32,850) Comprehensive loss attributable to non- ($ 14,630) ($ 19,595) controlling interest $ - $ - Dividends paid to non-controlling interest Statements of cash flows An-Shin Food Services (Singapore) Pte. Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Net cash used in operating activities ($ 55) ($ 133) Net cash used in investing activities ( 47,034) - Net cash provided by financing activities 47,034 - Effect of exchange rates on cash and cash equivalents ( 123) 163 (Decrease) increase in cash and cash equivalents ( 178) 30 Cash and cash equivalents, beginning of year 5,215 5,185 Cash and cash equivalents, end of year $ 5,037 $ 5,215

Xia Men An-Shin Food Management Co., Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Net cash used in operating activities ($ 7,737) ($ 28,753) Net cash used in investing activities( 5,276) ( 4,326) Net cash provided by financing activities 34,998 - Effect of exchange rates on cash and cash equivalents ( 1,239) ( 273) Increase (decrease) in cash and cash equivalents 20,746 ( 33,352) Cash and cash equivalents, beginning of year 11,214 44,566 Cash and cash equivalents, end of year $ 31,960 $ 11,214

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F. Foreign currency translation Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency. A. Foreign currency transactions and balances A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise. B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss. C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. D. All foreign exchange gains and losses based on the nature of those transctions are presented in the statement of comprehensive income within ‘other gains and losses’. B. Translation of foreign operations The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (1) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

(2) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and All resulting exchange differences are recognised in other comprehensive income. G. Classification of current and non-current items A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; B. Assets held mainly for trading purposes; C. Assets that are expected to be realised within twelve months from the balance sheet date; D. Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance

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sheet date. B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: A. Liabilities that are expected to be settled within the normal operating cycle; B. Liabilities arising mainly from trading activities; C. Liabilities that are to be settled within twelve months from the balance sheet date; D. Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. H. Cash equivalents Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents. I. Financial assets at fair value through profit or loss A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss. D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably. J. Financial assets at fair value through other comprehensive income A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income. B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting. C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will

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flow to the Group and the amount of the dividend can be measured reliably. K. Accounts and notes receivable A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services. B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. L. Impairment of financial assets The Company shall always measure the loss allowance at an amount equal to lifetime expected credit losses for trade receivables or contract assets that do not contain a significant financing component. M. Derecognition of financial assets The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire. N. Leasing arrangements (lessor)-operating leases Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term. O. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The goods comprise raw materials, direct labour, other direct costs and related production overheads. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. P. Investments accounted for using equity method/associates (a) Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost. (b) The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. (c) When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

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(d) Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group. (e) In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of. (f) When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, then the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach. Q. Property, plant and equipment (1) Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised. (2) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. (3) Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately. (4) The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in

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Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows: Property, plant and equipment Useful lives Kitchen equipment and freezers 1~7 years Leasehold improvements Lease term (1~11 years) or useful lives (whichever is shorter) Other equipment 1~7 years R. Leasing arrangements (lessee) - right-of-use assets/lease liabilities Effective 2019 (a) Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term. (b) Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following: (a) Fixed payments, less any lease incentives receivable; and (b) Variable lease payments that depend on an index or a rate. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications. (c) At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; (b) Any lease payments made at or before the commencement date; (c) Any initial direct costs incurred by the lessee; and (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset. S. Operating leases (lessee) Prior to 2019 Payments made under an operating lease (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the lease term.

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T. Intangible assets Computer software is stated at cost and amortised using straight-line method over its estimated useful life of 2 to 5 years. U. Impairment of non-financial assets The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised. V. Notes and accounts payable (1) Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities. (2) The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. W. Derecognition of financial liabilities A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires. X. Provisions Provisions, mainly decommissioning provisions, etc., are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses. Y. Employee benefits (a) Short-term employee benefits Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service. (b) Pensions i. Defined contribution plans For defined contribution plans, the contributions are recognised as pension expense when

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they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments. ii. Defined benefit plans 甲、 Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations. 乙、 Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings. C. Employees’ compensation and directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently acutual distributed amounts is accounted for as changes in estimates. Z. Income tax A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity. B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings. C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or

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loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed. E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously. AA. Share capital i. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds. ii. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders. BB. Dividends Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities. CC. Revenue recognition A. The Group is primarily engaged in sales of hamburgers, and revenue is recognised when products are sold to customers. B. Payment of the transaction price is due immediately when the customer purchases the products. It is the Group’s policy to sell its certain products to the end customer with a right of return within a certain period. Therefore, a refund liability and a right to the returned goods are recognised for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is highly probable that a significant reversal in the cumulative revenue recognised will not occur. The validity of this assumption and the

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estimated amount of returns are reassessed at each reporting date. C. The Group operates a loyalty programme where retail customers accumulate points for purchases made which entitle them to discount on future purchases. The points provide a material right to customers that they would not receive without entering into a contract. Therefore, the promise to provide points to the customer is a separate performance obligation. The transaction price is allocated to the product and the points on a relative stand-alone selling price basis. The stand-alone selling price per point is estimated on the basis of the discount granted when the points are redeemed and on the basis of the likelihood of redemption, based on past experience. The stand-alone selling price of the product sold is estimated on the basis of the retail price. A contract liability is recognised for the transaction price which is allocated to the points and revenue is recognised when the points are redeemed or expire. DD. Government grants Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. EE. Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Group’s Chief Operating Decision-Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions. (e) CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below: A. Critical judgements in applying the Group’s accounting policies None. FF. Critical accounting estimates and assumptions None.

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(f) DETAILS OF SIGNIFICANT ACCOUNTS (1) Cash and cash equivalents December 31, 2019 December 31, 2018 Cash on hand $ 31,942 $ 67,933 Checking accounts and demand deposits 340,572 320,251 Time deposits 1,390,655 1,360,199 $ 1,763,169 $ 1,748,383

A. The Group transacts 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. As of December 31, 2019 and 2018, cash and cash equivalents amounting to $300,000 and $280,000, respectively, representing performance guarantee for the issuance of Mos cards and gift certificates were pledged to others as collateral, classified as ‘1470 other current assets’. GG. Financial assets at fair value through profit or loss Items December 31, 2019 December 31, 2018 Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks$ 74,546 $ 63,453 Open-end funds 62,299 86,102 136,845 149,555 Valuation adjustment 2,809 ( 10,419) $ 139,654 $ 139,136

1. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below: Year ended Year ended December 31, 2019 December 31, 2018 Financial assets mandatorily measured at fair value through profit or loss Equity instruments $ 15,850 ($ 10,011) 2. Information relating to credit risk is provided in Note 12(2). HH. Financial assets at fair value through other comprehensive income Items December 31, 2019 December 31, 2018 Non-current items: Equity instruments Unlisted stocks$ 100 $ 14,837 Valuation adjustment - ( 14,837) $ 100 $ - 1. The Group has elected to classify investments such as Taiwan Depository & Clearing

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Corporation and H.K. Mos Burger Investment co., Ltd. that are considered to be a strategic investment as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $100 and $0, respectively, as at December 31, 2019 and 2018. 2. Aiming to satisfy the strategic investment adjustment, the Group sold $2,562 of H.K. Mos Burger Investment co., Ltd. at fair value and resulted in cumulative losses amounting to $12,275, which were derecognised and transferred to retained earnings, during the year ended December 31, 2019. There was no such transaction for the year ended December 31, 2018. 3. For the years ended December 31, 2019 and 2018, the fair value of financial assets at fair value through other comprehensive income is recognised in other comprehensive income in the amount of $2,562 and $0, respectively. 4. As at December 31, 2019 and 2018, 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 were $100 and $0, respectively. 5. Information relating to credit risk is provided in Note 12(2). II. Accounts receivable December 31, 2019 December 31, 2018 Accounts receivable$ 87,222 $ 101,423 Less: Allowance for bad debts - - $ 87,222 $ 101,423 1. The ageing analysis of accounts receivable that were past due but not impaired is as follows: December 31, 2019 December 31, 2018 Accounts receivable Accounts receivable Not past due$ 81,139 $ 75,982 Up to 30 days 5,180 23,415 31 to 90 days 814 2,005 91 to 180 days 89 21 $ 87,222 $ 101,423 The above ageing analysis was based on invoice date. 2. As of December 31, 2019 and 2018, and January 1, 2018, the balances of receivables from contracts with customers amounted to $87,222, $101,423 and $84,461, respectively. 3. The Group had no accounts receivable pledged to others as collateral as of December 31, 2019 and 2018. 4. As at December 31, 2019 and 2018, 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 accounts receivable were $87,222 and $101,423, respectively. 5. Information relating to credit risk is provided in Note 12(2).

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JJ. Inventories December 31, 2019 Allowance for Cost valuation loss Book value Food$ 40,087 ($ 400) $ 39,687 Packing materials 7,820 ( 331) 7,489 Others 1,163 ( 321) 842 $ 49,070 ($ 1,052) $ 48,018 December 31, 2018 Allowance for Cost valuation loss Book value Food$ 33,848 ($ 386) $ 33,462 Packing materials 6,942 ( 200) 6,742 Others 2,103 ( 375) 1,728 $ 42,893 ($ 961)$ 41,932 The cost of inventories recognised as expense for the period:

Year ended Year ended December 31, 2019 December 31, 2018 Cost of inventories sold$ 1,918,797 $ 1,871,855 Other traveling and dining service costs 2,149,770 2,029,064 Loss on market value decline of 108 282 inventories Loss on abandonment of inventories 5 2 Revenue from sale of scraps ( 7,137) ( 6,332) $ 4,061,543 $ 3,894,871

KK. Investment accounted for using equity method December 31, 2019 December 31, 2018 Associate: $ 17,903 $ 10,726 Mos Burger Australia Pty. Ltd. 1. The basic information of the associate that is material to the Group is as follows: Principal Shareholding ratio Company place December 31, December 31, Nature of Method of name of business 2019 2018 relationship measurement Mos Burger Australia 42.14% 29.19% Financial Equity Australia investment method Pty. Ltd.

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2. The summarised financial information of the associate that is material to the Group is as follows: Balance sheet Mos Burger Australia Pty Ltd. December 31, 2019 December 31, 2018 Current assets $ 38,987 $ 34,609 Non-current assets 78,486 15,360 Current liabilities ( 35,746) ( 10,948) Non-current liabilities ( 39,243) ( 2,275) Total net assets $ 42,484 $ 36,746

Share in associate's net assets $ 17,903 $ 10,726 Goodwill - - Carrying amount of the $ 17,903 $ 10,726 associate Statement of comprehensive income Mos Burger Australia Pty Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Revenue $ 83,377 $ 86,175 Loss for the year from continuing operations ($ 57,458) ($ 55,289) Total comprehensive loss ($ 57,458) ($ 55,289) $ - $ - Dividends received from associate 3. As the Group increased its capital investment in Mos Burger Australia Pty. Ltd. by $19,699 (AUD 868 thousand) as resolved by the Board of Directors on June 5, 2018 and some shareholders of the associate did not subscribe to the capital increase, the Group’s ownership percentage increased to 29.19% after the capital increase and the Group recognised the decrease in equity in the amount of $932 in 2018. 4. The Board of Directors of associated company Mos Burger Australia Pty. Ltd. during its meeting on August 7, 2019, resolved a plan to capital reduction amounting to AUD 2,576 thousand to cover accumulated deficit. 5. As the Group increased its capital investment in Mos Burger Australia Pty. Ltd. by $31,545 (AUD 1,484 thousand) as resolved by the Board of Directors on August 7, 2019 and some shareholders of the associate did not subscribe to the capital increase, the Group’s ownership percentage increased to 42.14% after the capital increase and the Group recognised the decrease in equity in the amount of $5,953 in 2019. 6. The Group’s investment in Mos Burger Australia Pty. Ltd. has no quoted market price.

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LL. Property, plant and equipment Kitchen equipment Leasehold and freezers improvements Others Total At January 1, 2019 Cost $ 445,960 $ 1,557,421 $ 268,526 $ 2,271,907 Accumulated depreciation and impairment ( 332,117) ( 1,310,161) ( 204,836) ( 1,847,114) $ 113,843 $ 247,260 $ 63,690 $ 424,793 2019 Opening net book amount as at January 1 $ 113,843 $ 247,260 $ 63,690 $ 424,793 Additions 31,437 122,083 34,598 188,118 Disposals ( 15) ( 27) - ( 42) Depreciation charge ( 35,829) ( 108,456) ( 29,266) ( 173,551) Impairment loss - ( 8,550) - ( 8,550) Net exchange differences ( 33) ( 30) ( 3)( 66) Closing net book amount as at December 31 $ 109,403 $ 252,280 $ 69,019 $ 430,702

At December 31, 2019 Cost $ 452,715 $ 1,648,754 $ 286,137 $ 2,387,606 Accumulated depreciation and impairment ( 343,312) ( 1,396,473) ( 217,119) ( 1,956,904) $ 109,403 $ 252,281 $ 69,018 $ 430,702

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Kitchen equipment Leasehold and freezers improvements Others Total At January 1, 2018 Cost$ 445,836 $ 1,483,783 $ 270,801 $ 2,200,420 Accumulated depreciation ( 364,065) ( 1,231,580) ( 200,096) ( 1,795,741) $ 81,771 $ 252,203 $ 70,705 $ 404,679 2018 Opening net book amount as at January 1$ 81,771 $ 252,203 $ 70,705 $ 404,679 Additions 69,994 104,776 22,718 197,488 Disposals( 364) ( 1,476) ( 126) ( 1,966) Depreciation charge( 37,509) ( 106,402) ( 29,603) ( 173,514) Impairment loss - ( 1,764) - ( 1,764) Net exchange differences ( 49) ( 77) ( 4)( 130) Closing net book amount as $ 113,843 $ 247,260 $ 63,690 $ 424,793 at December 31

At December 31, 2018 Cost$ 445,960 $ 1,557,421 $ 268,526 $ 2,271,907 Accumulated depreciation and impairment ( 332,117) ( 1,310,161) ( 204,836) ( 1,847,114) $ 113,843 $ 247,260 $ 63,690 $ 424,793

For details of impairment on property, plant and equipment, please refer to Note 6(21). MM. Leasing arrangements-lessee Effective 2019 A. The Group leases various assets including land, buildings and cash registers. Rental contracts are typically made for periods of 2 to 11 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: December 31, 2019 Carrying amount Land and buildings $ 1,594,742 Year ended December 31, 2019 Depreciation charge

Land and buildings $ 512,533 C. For the year ended December 31, 2019, the additions to right-of-use assets amounted to $297,616.

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D. The information on income and expense accounts relating to lease contracts is as follows: Year ended December 31, 2019 Items affecting profit or loss Interest expense on lease liabilities $ 19,706 Expense on short-term lease contracts $ 58,261 Expense on leases of low-value assets $ 2,234 Expense on variable lease payments $ 47,256 E. For the year ended December 31, 2019, the Group’s total cash outflow for leases amounted to $623,072. F. Variable lease payments (a) Some of the Group’s lease contracts contain variable lease payment terms that are linked to sales generated from a store. For individual stores, up to 18% of lease payments are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons, including minimising the fixed costs for newly established stores. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs. (b) 5% increase in stores located in hypermarkets, which rental expense is calculated based on a guaranteed revenue or a percentage of revenue if the total revenue is over the guaranteed revenue, where such variable lease contracts would increase total lease payments by approximately 1.8%.

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NN. Intangible assets Computer software Year ended Year ended December 31, 2019 December 31, 2018 At January 1 Cost $ 58,757 $ 54,896 Accumulated amortisation ( 46,922) ( 33,960) $ 11,835 $ 20,936

Opening net book amount as at January 1$ 11,835 $ 20,936 Additions - acquired separately 14,870 3,883 Amortisation charge ( 10,939) ( 12,978) Net exchange differences ( 5) ( 6) Closing net book amount as at $ 15,761 $ 11,835 December 31

At December 31 Cost $ 73,585 $ 58,757 Accumulated amortisation ( 57,824) ( 46,922) $ 15,761 $ 11,835

Details of amortisation on intangible assets are as follows: Year ended Year ended December 31, 2019 December 31, 2018 Selling expenses $ 708 $ 922 Administrative expenses 10,231 12,056 $ 10,939 $ 12,978

OO. Other non-current assets December 31, 2019 December 31, 2018 Refundable deposits Lease deposits $ 103,822 $ 101,730 Natural gas 1,872 1,845 Others 1,568 1,172 Prepayments for business facilities 1,390 6,289 $ 108,652 $ 111,036

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PP. Other payables December 31, 2019 December 31, 2018 Accrued payroll$ 145,275 $ 137,722 Payables on bonus 64,124 70,661 Payables on equipment 60,363 21,421 Payables on labor insurance expenses 32,945 30,235 Payables on utilities expense 21,208 21,043 Payables on repairs and maintenance expense 19,929 25,094 Payables on pension 20,714 19,656 Payables on advertisement 12,257 25,009 Payables on shipping expenses 5,363 10,507 Others 75,024 99,138 $ 457,202 $ 460,486

QQ. Other current liabilities December 31, 2019 December 31, 2018 Others advance receipts$ 4,800 $ -

RR. Pensions A.(a) The Company has a defined benefit pension plan 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 Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. 1. The amounts recognised in the balance sheet are as follows: December 31, 2019 December 31, 2018 Present value of defined benefit obligation ($ 46,725) ($ 37,993) Fair value of plan assets 36,704 34,827 ($ 10,021) ($ 3,166) Net defined benefit liability

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2. Movements in net defined benefit liabilities are as follows:

Present value of defined benefit Fair value of Net defined obligation plan assets benefit liability Year ended December 31, 2019 Balance at January 1($ 37,993) $ 34,827 ($ 3,166) Current service cost( 255) - ( 255) Interest (expense) income ( 380) 348 ( 32) ( 38,628) 35,175 ( 3,453) Remeasurements: Return on plan assets (excluding amounts included - 1,245 1,245 in interest income or expense) Change in financial assumptions( 1,501) - ( 1,501) Experience adjustments ( 7,778) - ( 7,778) ( 9,279) 1,245 ( 8,034) Pension fund contribution - 1,466 1,466 Paid pension 1,182 ( 1,182) - Balance at December 31 ($ 46,725) $ 36,704 ($ 10,021) Present value of defined benefit Fair value of Net defined obligation plan assets benefit liability Year ended December 31, 2018 Balance at January 1($ 38,634) $ 33,477 ($ 5,157) Current service cost( 286) - ( 286) Interest (expense) income ( 425) 368 ( 57) ( 39,345) 33,845 ( 5,500) Remeasurements: Return on plan assets (excluding amounts included - 1,062 1,062 in interest income or expense) Change in financial assumptions( 425) - ( 425) Experience adjustments 254 - 254 ( 171) 1,062 891 Pension fund contribution - 1,443 1,443 Paid pension 1,523 ( 1,523) - ($ 37,993) $ 34,827 ($ 3,166) Balance at December 31 3. The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in

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domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2019 and 2018 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government. 4. The principal actuarial assumptions used were as follows: 2019 2018 Discount rate 0.70% 1.00% Future salary increases 2.25% 2.25%

Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows: Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25% December 31, 2019 Effect on present value of defined benefit obligation ($ 1,255) $ 1,307$ 1,172 ($ 1,134) December 31, 2018 Effect on present value of ($ 1,050) $ 1,094$ 985 ($ 952) defined benefit obligation The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period. 5. Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2020 amounts to $1,398. 6. As of December 31, 2019, the weighted average duration of the retirement plan is 11 years. The analysis of timing of the future pension payment was as follows:

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Not later than one year$ 4,402 Later than one year but not later than five years 7,745 Later than five years 10,635 $ 22,782 B. (a) Effective July 1, 2005, the Company 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 Company 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. (b) The Company’s Mainland China subsidiary, Xiamen An-Shin Food Management Co., Ltd., has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on a certain percentage of the employees’ monthly salaries and wages. The contribution percentage for the years ended December 31, 2019 and 2018 was 12% ~ 20% for both periods. Other than the monthly contributions, the Group has no further obligations. (c) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2019 and 2018 were $80,117 and $74,150, respectively. SS. Provisions Decommissioning liabilities 2019 At January 1 $ 18,194 Additional provisions 799 Used during the year ( 590) Exchange differences ( 60) At December 31 $ 18,343

Decommissioning liabilities 2018 At January 1 $ 17,206 Additional provisions 1,798 Used during the year ( 773) Exchange differences ( 37) At December 31 $ 18,194

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Analysis of total provisions:

December 31, 2019 December 31, 2018 $ 18,343 $ 18,194 Non-current Depending on the policies published, applicable agreements or the law/regulation requirements, the Group bears dismantling, removing the asset and restoring the site obligations for certain stores in the future. A provision is recognised for the present value of costs to be incurred for dismantling, removing the asset and restoring the site. TT. Share capital A. As of December 31, 2019, the Company’s authorised capital was $400,000, consisting of 40 million shares of ordinary stock, and the paid-in capital was $323,895 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. There were no changes in the number of the Company’s issued ordinary shares outstanding for the years ended December 31, 2019 and 2018. B. Treasury shares 1. Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows: December 31, 2019 Name of company Reason for holding the shares reacquisition Number of shares Carrying amount The Company To be reissued to 117,000 $ 10,123 employees December 31, 2018 Name of company Reason for holding the shares reacquisition Number of shares Carrying amount The Company To be reissued to 117,000 $ 10,123 employees 2. Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus. 3. Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

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(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. UU. Capital surplus 1. Pursuant to the R.O.C. 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 Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient. 2. Capital surplus arise from paid-in capital in excess of par value on issuance of common stocks. There were no changes in the Company’s capital surplus for the years ended December 31, 2019 and 2018. VV. Retained earnings 1. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall be appropriated based on the following order: 1. pay all taxes; 2. offset prior years’ operating losses; 3. set aside 10% as legal reserve; 4. set aside or reverse a special reserve in accordance with regulations by the competent authority; 5. The Company is engaged in the catering industry and is in the growth stage, with a stable financial structure. Other than the regulations in the Company Act and the Company's Articles, the Company also distributes earnings in line with its capital plan and operating results in deciding how to appropriate dividends. The Company adopts a stable and balanced dividend strategy and appropriates the dividend (including cash dividend or stock dividend) in accordance with operating results, financial position and capital plan during the Board of Directors' meeting before the shareholders' meeting, and the proportion of cash dividend should not be lower than 30% of total dividends. 6. 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. 7. In accordance with the regulations, the Company shall set aside special reserve from the debit 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

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included in the distributable earnings. 8. The Company recognised dividends distributed to owners amounting to $96,817 ($3 (in dollars) per share) and $112,954 ($3.5 (in dollars) per share) for the years ended December 31, 2019 and 2018, respectively. On February 20, 2020, the Board of Directors proposed for the distribution of dividends from 2019 earnings in the amount of $103,274, at $3.2 (in dollars) per share. 9. For information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(23). WW. Other equity items Unrealised gains Currency translation (losses) on valuation differences Total At January 1, 2019($ 14,837) ($ 6,423) ($ 21,260) Valuation adjustment 2,562 - 2,562 Revaluation transferred to retained earnings 12,275 - 12,275 Currency translation differences: –Group - ( 1,193) ( 1,193) –Tax on Group - 239 239 At December 31, 2019 $ - ($ 7,377) ($ 7,377)

Unrealised gains Currency translation (losses) on valuation differences Total At January 1, 2018 $ 1,363 ($ 6,260) ($ 4,897) Retrospection transferred to retained earnings-gross ( 1,363) - ( 1,363) Retrospection transferred from retained earnings-gross ( 14,837) - ( 14,837) Currency translation differences: –Group - ( 487) ( 487) –Tax on Group - 324 324 At December 31, 2018 ($ 14,837) ($ 6,423) ($ 21,260)

XX. Operating revenue Year ended Year ended December 31, 2019 December 31, 2018 Revenue from contracts with customers Dining service income $ 5,484,492 $ 5,252,104

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1. Disaggregation of revenue from contracts with customers The Group derives revenue from the transfer of goods at a point in time, which is dining service revenue, in the following major geographical regions: Restaurant retail Year ended December 31, 2019 Taiwan Mainland China Total Revenue from external customer contracts $ 5,404,205 $ 80,287 $ 5,484,492 Inter-segment revenue - - - Total segment revenue $ 5,404,205 $ 80,287 $ 5,484,492 Restaurant retail Year ended December 31, 2018 Taiwan Mainland China Total Revenue from external customer contracts $ 5,170,958 $ 81,146 $ 5,252,104 Inter-segment revenue - - - $ 5,170,958 $ 81,146 $ 5,252,104 Total segment revenue The aforementioned revenue is recognised at a point in time. 2. Contract assets and liabilities As of December 31, 2019 and 2018 and January 1, 2018, the Group has no contract assets in relation to contract revenue. In addition, the Group recognised contract liabilities as follows: December 31, 2019 December 31, 2018 Contract liabilities Contract liabilities - customer $ 12,705$ 12,605 loyalty programmes Contract liabilities - advance 296,758 268,730 receipts $ 309,463 $ 281,335 January 1, 2018 Contract liabilities Contract liabilities - customer $ 10,355 loyalty programmes Contract liabilities - advance receipts 243,506 $ 253,861

1. Significant changes in contract assets and liabilities None.

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2. Revenue recognised that was included in the contract liability balance at the beginning of the period Year ended Year ended December 31, 2019 December 31, 2018 Revenue recognised that was included in the contract liability balance at the beginning of the year Customer loyalty programmes$ 12,605 $ 12,605 Advance receipts 268,730 237,011 $ 281,335 $ 249,616 YY. Other income

Year ended Year ended December 31, 2019 December 31, 2018 Interest income: Interest income from bank deposits$ 15,048 $ 14,032 Other interest income 438 259 Rental revenue 10,128 9,434 Dividend income 2,027 1,310 Other income - others 15,605 15,248 $ 43,246 $ 40,283 ZZ. Other gains and losses Year ended Year ended December 31, 2019 December 31, 2018

Losses on disposals of property, plant and equipment ($ 32) ($ 1,828) Net currency exchange (loss) gain( 2,132) 616 Gains (losses) on financial assets at fair value through profit or loss 15,850 ( 10,011) Impairment loss on property, plant and equipment ( 8,550) ( 1,764) Miscellaneous disbursements ( 6,305) ( 6,715) ($ 1,169) ($ 19,702)

The property, plant and equipment incurred impairment loss as the operating performance of certain stores did not meet the expectation; therefore, the Group recognised impairment loss amounting to $8,550 and $1,764 for the years ended December 31, 2019 and 2018, respectively.

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AAA. Expenses by nature Year ended Year ended December 31, 2019 December 31, 2018 Raw materials and supplies used$ 1,918,797 $ 1,871,855 Employee benefit expense 1,760,290 1,655,844 Operating lease payments 107,751 595,556 Utilities expenses 223,122 209,465 Depreciation (Note) 686,084 173,514 Advertising costs 149,600 152,800 Repairs and maintenance expenses 93,830 85,540 Amortisation on intangible assets 10,939 12,978 Transportation expenses 36,955 15,917 Other expenses 322,951 310,977 $ 5,310,319 $ 5,084,446 Note: Including depreciation charges on property, plant and equipment and right-of-use assets. BBB. Employee benefit expense Year ended Year ended December 31, 2019 December 31, 2018 Wages and salaries$ 1,454,387 $ 1,370,990 Labor and health insurance fees 167,281 152,653 Pension costs 80,404 74,493 Other personnel expenses 58,218 57,708 $ 1,760,290 $ 1,655,844

1. Under the Companyʾs Articles of Incorporation, the current yearʾs earnings, if any, shall appropriate over 1~2% as employeesʾ compensation, and under 5% as remuneration to directors and supervisors. However, if the Company has accumulated deficit, the earnings shall first be reserved to offset the deficit. 2. For the years ended December 31, 2019 and 2018, employees’ compensation was accrued at $4,101 and $4,079, respectively; while directors’ and supervisors’ remuneration was accrued at $8,202 and $8,159, respectively. The aforementioned amounts were recognised in salary expenses. The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 2% and 4% of distributable profit of current years for the years ended December 31, 2019 and 2018. The distributed amounts resolved by the Board of Directors’ were in agreement with estimated amounts, and the employees’ compensation will be distributed in the form of cash. Employees’ compensation and directors’ and supervisors’ remuneration of 2018 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2018 financial statements.

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3. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors and the shareholders at the shareholders’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange. CCC. Income tax 1. Income tax expense 1. Components of income tax expense: Year ended Year ended December 31, 2019 December 31, 2018 Current tax: Current tax on profits for the year$ 28,257 $ 47,398 Tax on undistributed surplus earnings 1,546 3,035 Prior year income tax under estimation 215 1,353 Total current tax 30,018 51,786 Deferred tax: Origination and reversal of temporary differences 737 2,803 Impact of change in tax rate - ( 3,510) Total deferred tax 737 ( 707) Income tax expense $ 30,755 $ 51,079 2. The income tax benefit credit (charge) relating to components of other comprehensive income is as follows: Year ended Year ended December 31, 2019 December 31, 2018 Currency translation differences $ 239 $ 324 Remeasurement of defined benefit $ 1,606 $ 430 obligation

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3. Reconciliation between income tax expense and accounting profit: Year ended Year ended December 31, 2019 December 31, 2018 Tax calculated based on profit before tax and statutory tax rate - parent company $ 38,540 $ 38,346 Tax calculated based on profit before tax and statutory tax rate - subsidiary ( 6,231) ( 8,212) Effects from items disallowed by tax regulation ( 16,761) 2,364 Tax on undistributed earnings 1,546 3,035 Prior year income tax underestimation 215 1,353 Impact of change in tax rate - ( 3,510) Temporary difference not recognised as deferred tax assets 5,760 - Change in assessment of realisation of deferred tax assets 7,686 17,703 $ 30,755 $ 51,079 Income tax expense 4. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows: Year ended December 31, 2019 Recognised Recognised in other in profit comprehensive Translation January 1 or loss income differences December 31 Temporary differences: - Deferred tax assets: Loss on foreign investment recognised by equity method $ 3,991 ($ 1,000) $ - $ - $ 2,991 Unrealised expenses (Note) 19,074 206 1,606 - 20,886 Currency translation differences 1,606 - 239 - 1,845 Tax losses 4,397 - -( 169) 4,228 $ 29,068 ($ 794) $ 1,845 ($ 169) $ 29,950 - Deferred tax liabilities: Currency translation differences ($ 765) $ - $ - $ - ($ 765) Unrealised expenses ( 1,610) 57 - -( 1,553) ($ 2,375) $ 57$ -$ -($ 2,318) Note: It refers to the balance as at January 1, 2019 after adopting IFRS 16 using the modified retrospective approach.

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Year ended December 31, 2018 Recognised Recognised in other in profit comprehensive Translation January 1 or loss income differences December 31 Temporary differences: - Deferred tax assets: Loss on foreign investment recognised by equity method $ 6,463 ($ 2,472) $ - $ - $ 3,991 Unrealised expenses (Note) 19,568 3,477 430 - 23,475 Currency translation differences 1,282 - 324 - 1,606 Tax losses 4,500 - -( 103) 4,397 $ 31,813 $ 1,005 $ 754($ 103) $ 33,469 - Deferred tax liabilities: Currency translation differences ($ 650) ($ 115) $ - $ - ($ 765) Unrealised expenses ( 1,427) ( 183) - -( 1,610) ($ 2,077) ($ 298) $ -$ -($ 2,375) 5. The Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority. 6. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised from 17% to 20% effective from January 1, 2018. The Company has assessed the impact of the change in income tax rate.

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DDD. Earnings per share Year ended December 31, 2019 Weighted average number of ordinary Earnings per shares outstanding share Amount after tax (shares in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent $ 161,947 32,273 $ 5.02 Diluted earnings per share Profit attributable to ordinary shareholders of the parent $ 161,947 32,273 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 53 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares $ 161,947 32,326 $ 5.01

Year ended December 31, 2018 Weighted average number of ordinary Earnings per shares outstanding share Amount after tax (shares in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent $ 140,649 32,273 $ 4.36 Diluted earnings per share Profit attributable to ordinary shareholders of the parent $ 140,649 32,273 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 63 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares $ 140,649 32,336 $ 4.35

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EEE. Operating leases Prior to 2019 The Group leases offices, stores and warehouse assets under non-cancellable operating lease agreements. The lease terms are between 1 to 10 years. Rent on certain leases will be adjusted with an agreed upon ratio, taking into consideration the effect of price fluctuations. The Group recognised rental expenses of $595,556 for the year ended December 31, 2018. The future aggregate minimum lease payments under non-cancellable operating leases are as follows: December 31, 2018 Not later than one year$ 471,525 Later than one year but not later than five years 1,045,575 Later than five years 282,424 $ 1,799,524 Details of the future minimum lease payments incurred from operating leases with related parties are provided in Note 7(2)I . FFF. Supplemental cash flow information Investing activities with paritial cash payments: Purchase of property, plant and equitpment Year ended Year ended December 31, 2019 December 31, 2018 Purchase of property, plant and equipment $ 188,118 $ 197,488 Add: Opening balance of payable on equipment 21,421 78,308 Opening balance of payable on equipment - related parties 7,784 18,927 Less: Ending balance of payable on equipment ( 60,363) ( 21,421) Ending balance of payable on equipment - related parties ( 8,820) ( 7,784) Cash paid during the year $ 148,140 $ 265,518

GGG. Transactions with non-controlling interest 1. Subsidiary, An-Shin Food Services (Singapore) Pte. Ltd., of the Group increased its capital by issuing new shares in the first quarter of 2019. The Group did not acquire shares proportionally to its interest. As a result, the Group increased its share interest by 0.95%. The transaction increased non-controlling interest by $5,153 and decreased the equity attributable to owners of parent by $5,153. 2. The Group did not conduct any transaction with non-controlling interest for the year ended December 31, 2018.

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(g) RELATED PARTY TRANSACTIONS 1. Names of related parties and relationship Names of related parties Relationship with the Group Mos Food Services, Inc. (Mos Food Services) Entities with significant influence over the Group Guang-Yuan Industries Co., Ltd (Guang-yuan ) Entities with significant influence over the Group Mos Burger Australia Pty. Ltd. (Mos Burger Australia) Associate TECO Electric & Machinery Co., Ltd. Other related party (TECO Electric & Machinery) Magic-Food Mos Food Industry Co., Ltd. (Magic-Food Mos) Other related party GD Teco Taiwan Co., Ltd. (GD Teco Taiwan) Other related party Yuban & Company (Yuban) Other related party TECNOS International Consultant Co., Ltd. (TECNOS) Other related party Taiwan Pelican Express Co., Ltd (Taiwan Pelican Express) Other related party Information Technology Total Services Corp. Other related party (Information Technology) Jie Zheng Property Service & Management Co., Ltd. (Jie Zheng) Other related party A-Ok Technical Service Co., Ltd. (A-Ok) Other related party E-Joy Electronics International Co., Ltd. (E-Joy Electronics ) Other related party TECO Tour Travel Service Co., Ltd. (TECO Tour) Other related party Royal Host Taiwan Co., Ltd. (Royal Host) Other related party Tong-An Assets Mangement & Development Co., Ltd. Other related party (Tong-An Assets) Kogyoku Foods Co., Ltd. (Kogyoku Foods) Other related party Le-Li Co., Ltd. (Le-Li) Other related party Xianlaoman Food Services Co., Ltd. (Xianlaoman) Other related party ABC Cooking Studio Taiwan Co., Ltd. (ABC Cooking) Other related party Fujio Food System Taiwan Co., Ltd. (Fujio Food) Other related party Century Development Corporation (Century Development) Other related party TECO Nanotech Co., Ltd. (TECO Nanotech) Other related party Tecom Co., Ltd. (Tecom) Other related party TECO Image Systems Co., Ltd. (TECO Image Systems) Other related party Dong Guang Co., Ltd. (Dong Guang) Other related party Wan Yi Educational Foundation (Wan Yi Foundation) Other related party Kogle Foods Co., Ltd. (Kogle Foods) Other related party Tong An Co., Ltd. (Tong An) Other related party

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Names of related parties Relationship with the Group Don Her International Co., Ltd. (Don Her) Other related party Ming Full Ltd. (Ming Full) Other related party Hao Di Foods Co., Ltd. (Hao Di Foods) Other related party An Tai International Co., Ltd. (An Tai) Other related party Foremost International Food & Beverage Co., Ltd. Other related party (Foremost Food) Miss Croissant Food Co., Ltd. (Miss Croissant) Other related party TECO Electro Devices Co., Ltd. (TECO Electro) Other related party Technical Information International Corporation Other related party (Technical Information) Eurasia Food Service Co., Ltd (Eurasia) Other related party Blue Pacific International Co., Ltd (Blue Pacific International) Other related party HHH. Significant related party transactions and balances 1. Operating revenue

Year ended Year ended December 31, 2019 December 31, 2018 Sale of goods: Other related parties $ 974 $ 1,126 Year ended Year ended December 31, 2019 December 31, 2018 Sale of services (shown as ‘other income’): Other related parties –Royal Host$ 2,481 $ 3,686 –Miss Croissant 1,864 1,752 $ 4,345 $ 5,438

1. Service revenue represents revenue from providing consulting services. There is no similar transaction to be compared with for prices, and terms are determined in accordance with mutual agreement. 2. Sales of goods arise from selling commodity coupons and food. Transaction prices and terms for related parties are approximate to those for third parties. 2. Purchases Year ended Year ended December 31, 2019 December 31, 2018 Purchases of goods: Other related parties －Magic-Food Mos $ 811,700 $ 799,225 －Taiwan Pelican Express 179,052 212,556 －Others 20,166 14,953 $ 1,010,918 $ 1,026,734

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Year ended Year ended December 31, 2019 December 31, 2018 Purchases of services: Other related parties －Taiwan Pelican Express $ 4,882 $ 2,273 －TECNOS 2,742 2,998 －Information Technology 3,280 3,240 －Others 155 36 $ 11,059 $ 8,547

1. No similar transaction can be compared with the above purchases with related parties. Prices and terms are determined in accordance with mutual agreement. 2. Services rendered by related parties are payments for freight and services. Prices and terms for freight payment are approximately the same as those with third parties. Furthermore, no similar transaction can be compared with, and prices and terms are in accordance with mutual agreement and recorded as ‘5000 Operating costs’, ‘6100 Sales and marketing expenses’ and ‘6200 General and administrative expenses’. 3. Use of assets Year ended Year ended December 31, 2019 December 31, 2018 Entities with significant influence to the Group－patent royalties $ 51,628 $ 49,061 Other related parties－rental expense 48 21,939 $ 51,676 $ 71,000 The above expenses are payments for contracts of expertise and patent cooperation with related parties and rent paid for shops and offices leased from related parties. Royalties are paid based on a certain percentage of monthly operating net income and rent expenses are paid monthly in accordance with mutual agreement. 4. Other expenses Year ended Year ended December 31, 2019 December 31, 2018 Entities with significant influence to the Group $ 413 $ 458 Associates 5 83 Other related parties 76,612 79,059 $ 77,030 $ 79,600

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5. Receivables from related parties December 31, 2019 December 31, 2018 Other accounts receivable: Entities with significant influence to the Group –Mos Food Services $ 120 $ 348 Associates –Mos Burger Australia 150 150 Other related parties –Royal Host 1,582 12,660 –Kogyoku Foods 349 2,508 –Others 1,403 1,125 $ 16,791 $ 3,604 Accounts receivable arise from consulting revenue and prepaid rents and do not have collateral nor bear interests. No loss allowance is appropriated for receivables from related parties. 6. Payables to related parties 1. Accounts payable: December 31, 2019 December 31, 2018 Payables to related parties: Other related parties –Magic-Food Mos$ 67,487 $ 68,345 –Taiwan Pelican Express 34,406 63,155 –Others 1,675 4,022 $ 103,568 $ 135,522

Payables to related parties arise from purchases and services received and do not have collateral nor bear interests.

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2. Other payables:

December 31, 2019 December 31, 2018 Payables to related parties: Entities with significant influence to the Group –Mos Food Services$ 4,112 $ 4,153 –Guang Yuan 9 9 Other related parties –A-Ok 1,547 2,616 –Jie Zheng 6,004 6,022 –Information Technology 4,646 8,998 –GD Teco Taiwan 2,393 1,832 –Yuban 4,202 2,961 –Tong An Assets 409 684 –Others 6,998 7,352 $ 30,320 $ 34,627

3. Property transactions 1. Acquisition of property, plant and equipment:

Year ended Year ended December 31, 2019 December 31, 2018 Other related parties –Jie Zheng$ 14,442 $ 20,516 –Yuban 12,646 4,899 –TECO Electric & Machinery 4,920 286 –Blue Pacific International 10,329 9,384 –Others 6,117 7,665 $ 48,454 $ 42,750

2. Other payables - related parties - ending balances of acquisition of property, plant and equipment: December 31, 2019 December 31, 2018 Other related parties –Jie Zheng$ 3,751 $ 3,110 –Information Technology 701 3,258 – A-Ok 463 - –Yuban 1,863 1,108 –E-Joy Electronics 1,765 8 –Others 277 300 $ 8,820 $ 7,784

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3. Acquisition of other assets: Year ended Year ended December 31, 2019 December 31, 2018 Accounts Consideration Consideration Other related party Intangible assets –Information Technology$ 5,413 $ 799 –GD Teco Taiwan 5,900 - –Technical Information - 1,096 $ 11,313 $ 1,895 Accounts Right-of-use Year ended Year ended Other related party assets December 31, 2019 December 31, 2018 –TECO Electric $ 12,997 $ - & Machinery –Tong-An Assets 32,198 - –Others 11,980 - $ 57,175 $ - 4. Loans to /from related parties Loans to related parties: 1. Outstanding balance: December 31, 2019 December 31, 2018 $ 21,415 $ - Mos Burger Australia 2. Interest income Year ended Year ended December 31, 2019 December 31, 2018 Mos Burger Australia $ 137 $ - The loans to associate are repayable monthly over 1 year and carry interest at 2.866% per annum for the year ended December 31, 2019. As of December 31, 2019, there was no actual amount drawn down. 3. Commitments and contingent liabilities 1. Significant commitments of the technology cooperation contracts signed by the Group with entities who have significant influence to the Group are as follows: －Operating and inventory control methods and managing methods are provided by entities with significant impact to the Group. －Registered trademarks and patents provided by entities with significant impact to the Group are rights the Group uses in Taiwan, Singapore and Xiamen region. －The Group shall pay expertise and patent cooperation expenses and royalties with a certain percentage of the Group’s monthly operating net income to the related party. 2. As of December 31, 2018, the total rent paid to other related parties in the future based on the lease contract terms in accordance with IAS 17 is as follows:

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December 31, 2018 Total rental payment Not later than one year $ 18,222 Later than one year but 32,278 not later than five years Later than five years 717 $ 51,217

III. Key management compensation Year ended Year ended December 31, 2019 December 31, 2018 Salaries and other short-term employee benefits $ 33,760 $ 34,085 Post-employment benefits 385 381 $ 34,145 $ 34,466

(h) PLEDGED ASSETS The Group’s assets pledged as collateral are as follows: Book value Pledged asset December 31, 2019 December 31, 2018 Purpose Other current assets: Time deposits $ 300,000 $ 280,000 Performance guarantee for issuance of MOS Card and gift certificates (i) SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS (1) Contingencies None. (2) Commitments Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows: December 31, 2019 December 31, 2018 Property, plant and equipment $ 48,937 $ 27,419 Intangible assets 1,824 5,678 $ 50,761 $ 33,097

(j) SIGNIFICANT DISASTER LOSS None. (k) SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE None.

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(l) OTHERS 1. Capital management The capital structure management is based on the Group’s business scale, industry’s future growth and product development plan to determine the target market share. The most appropriate capital structure is determined based on the capital expenditure requirements, operating capital requirements and operating profit and cash flow that may arise from the products’ competitiveness. 2. Financial instruments 1. Financial instruments by category December 31, 2019 December 31, 2018 Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss $ 139,654 $ 139,136 Financial assets at fair value through other comprehensive income of equity designation instruments $ 100 $ - Financial assets at amortised cost Cash and cash equivalents$ 1,763,169 $ 1,748,383 Accounts receivable 87,222 101,423 Other receivables 12,864 19,966 Guarantee deposits paid 107,262 104,747 Other financial assets 300,000 280,000 $ 2,270,517 $ 2,254,519 Financial liabilities Financial liabilities at amortised cost Notes payable$ 1,026 $ 640 Accounts payable 255,162 329,372 Other payables 487,522 495,113 Lease liabilities 1,611,250 - $ 2,354,960 $ 825,125 2. Financial risk management policies 1. The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.

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2. Risk management is carried out by a treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides written policies for overall risk management, as well as written policies covering specific areas and matters, such as credit risk and investment of excess liquidity. 3. Significant financial risks and degrees of financial risks 1. Market risk Foreign exchange risk 1. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, AUD and RMB. Exchange rate risk arises from recognised assets and liabilities. 2. The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD; certain subsidiaries’ functional currency: RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31, 2019 Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,722 4.31 $ 33,244 AUD:NTD 1,017 21.01 21,358 USD:NTD 1,593 29.98 47,760 HKD:NTD 652 3.85 2,511 USD:RMB 30 6.96 914 Non-monetary items USD:NTD 849 29.98 25,462 AUD:NTD 852 21.01 17,903

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December 31, 2018 Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,938 4.47 $ 35,501 AUD:NTD 3 21.67 66 USD:NTD 1,249 30.72 38,351 USD:RMB 42 6.87 1,294 Non-monetary items USD:NTD 543 30.72 16,681 AUD:NTD 495 21.67 10,726 3. Please refer to the following table for the details of unrealised exchange gain (loss) arising from significant foreign exchange variation on the monetary items held by the Group. Year ended December 31, 2019 Unrealised exchange gain (loss) Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,722 4.91 ($ 4,330) AUD:NTD 1,017 20.96 41 HKD:NTD 652 3.93 ( 49) USD:NTD 1,593 30.16 ( 285) USD:RMB 30 6.96 ( 36) Year ended December 31, 2018 Unrealised exchange gain (loss) Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,938 4.91 ($ 3,465) AUD:NTD 3 25 ( 9) USD:NTD 1,249 30.04 825 USD:RMB 42 6.86 ( 24)

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4. Analysis of foreign currency market risk arising from significant foreign exchange variation: Year ended December 31, 2019 Sensitivity analysis Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items RMB:NTD 1%$ 332 $ - AUD:NTD 1% 214 - USD:NTD 1% 478 - HKD:NTD 1% 25 - USD:RMB 1% 9 - Year ended December 31, 2018 Sensitivity analysis Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items RMB:NTD 1%$ 355 $ - AUD:NTD 1% 1 - USD:NTD 1% 384 - USD:RMB 1% 13 - Price risk 1. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group. 2. The Group’s investments in equity securities comprise share and open-end funds issued by the domestic companies. 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 1% with all other variables held constant, post-tax profit for the years ended December 31, 2019 and 2018 would have increased/decreased by $1,397 and $1,391, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $1 and $0, respectively, as a result of gains/losses on other comprehensive income classified as financial assets at fair value through other

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comprehensive income. Cash flow and fair value interest rate risk Not applicable. 3. Credit risk 1. 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. 2. The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing 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 utilisation of credit limits is regularly monitored. 3. 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. 4. The Group classifies customers’ accounts receivable in accordance with credit risk on trade. The Group applies the simplified approach using provision matrix to estimate expected credit loss under the provision matrix basis. 5. The Group adjusts historical and timely information to assess the default possibility of accounts receivable. On December 31, 2019 and 2018, the Group’s estimated default possibility of accounts receivable that were past due or were not past due are not material to the Group. 6. Accounts receivable that the Group applies the simplified approach to provide loss allowance are not significant, therefore, no impairment loss was recognised for the years ended December 31, 2019 and 2018. 7. Liquidity risk 1. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs. 2. Group treasury invests according to cash flow forecasts surplus cash in interest bearing demand deposits, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as

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determined by the abovementioned forecasts. As at December 31, 2019 and 2018, the Group held money market position of $1,731,227 and $1,680,450, respectively, that are expected to readily generate cash inflows for managing liquidity risk. 3. Because the Group’s working capital is sufficient, therefore, the Group does not sign any borrowing agreement with financial institutions. As of December 31, 2019 and 2018, the Group had no undrawn borrowing facility is $0. 4. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Non-derivative financial liabilities: Between Between Between Less than 3 months 1 and 2 2 and 5 Over 5 Contractual Carrying December 31, 2019 3 months and 1 year years years years cash flow amount Notes payable $ 1,026 $ - $ - $ - $ - $ 1,026 $ 1,026 Accounts payable 254,941 197 24 - - 255,162 255,162 Other payables 383,361 104,161 - - - 487,522 487,522 Lease liabilities 125,855 341,365 362,104 561,217 293,266 1,683,807 1,611,250 Between Between Less than 3 months 1 and 2 Contractual Carrying December 31, 2018 3 months and 1 year years cash flow amount Notes payable$ 640 $ - $ - $ 640 $ 640 Accounts payable 329,372 - - 329,372 329,372 Other payables 386,724 108,389 - 495,113 495,113 The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different. 5. Fair value information 1. 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 volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates 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. 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.

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2. The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable, other receivables, notes payable, accounts payable, other payables and lease liabilities) are approximate to their fair values. 3. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows: 1. The related information of the nature of the assets and liabilities is as follows: December 31, 2019 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities $ 139,654 $ -$ -$ 139,654 Financial assets at fair value through other comprehensive income Equity securities $ - $ - $ 100 $ 100 December 31, 2018 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss $ 139,136 $ - $ - $ 139,136 Equity securities 2. The methods and assumptions the Group used to measure fair value are as follows: 1. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: Listed shares Open-end fund Market quoted price Closing price Net asset value 2. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters). 3. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures

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relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions. 4. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality. 5. For the years ended December 31, 2019 and 2018, there was no transfer between Level 1 and Level 2. 6. The following chart is the movement of Level 3 for the years ended December 31, 2019 and 2018: 2019 2018 At January 1$ - $ - Acquired in the year 100 - $ 100 $ - At December 31 7. For the years ended December 31, 2019 and 2018, there was no transfer into or out from Level 3. 8. Accounting department is in charge of valuation procedures for fair value measurements being categorized 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. 9. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

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Fair value at Significant Range Relationship of December Valuation unobservable (weighted inputs to fair 31, 2019 technique input average) value Non-derivative equity instrument: Unlisted shares$ 100 Market Price to 100% The higher the comparable book ratio net asset value, companies multiple the higher the fair value Fair value at Significant Range Relationship of December Valuation unobservable (weighted inputs to fair 31, 2018 technique input average) value Non-derivative equity instrument: Unlisted shares$ - Market Price to 1.36%~1.49% The higher the comparable book ratio net asset value, companies multiple the higher the fair value

Discount for 13.24% The higher the lack of discount for lack marketability of marketability, the lower the fair value

10. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorized within Level 3 if the inputs used to valuation models have changed:

December 31, 2018 Recognised in profit or Recognised in other loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity Discount for instrument lack of ± 5% $ - $ -$ -$ - marketability

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(m) SUPPLEMENTARY DISCLOSURES 1. Significant transactions information 1. Loans to others: Please refer to table 1. 2. Provision of endorsements and guarantees to others: None. 3. Holding of marketable securities at the end of the period: Please refer to table 2. 4. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None. 5. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None. 6. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None. 7. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3. 8. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None. 9. Trading in derivative financial instruments undertaken during the reporting periods: None. J. Significant inter-company transactions during the reporting periods: Not applicable because there is no significant transaction between the Company and subsidiaries or among subsidiaries. 10. Information on investees Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4. 11. Information on investments in Mainland China 1. Basic information: Please refer to table 5. B. Significant transactions, either directly or indirectly through a third areas, with investee companies in the Mainland China: None (n) SEGMENT INFORMATION 1. General information Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decisions. The Group’s Chief Operating Decision-Maker manages the business geographically. The Group currently focuses on restaurant services in Taiwan and Mainland China. The revenue of the Group’s disclosed operating segments mainly comes from Taiwan and Mainland China region. 2. Measurement of segment information The accounting policies of the operating segments are in agreement with the significant accounting policies summarized in Note 2. The management measures operating segment profit or loss based on segment pre-tax income (not including non-recurring profit and loss) as a basis for performance assessment. The Group considers the inter-segment sales and transfers as transactions with third parties. The external revenue is reported by the Group to the Chief Operating Decision-Maker, and is measured using the same method as revenue recognised in statements of comprehensive income.

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3. Information about segment profit or loss and assets The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows: A.Year ended December 31, 2019 Adjustment Mainland and Taiwan China elimination Total Revenue from external customers $ 5,404,205 $ 80,287 $ - $ 5,484,492 Segment revenue $ 5,404,205 $ 80,287 $ - $ 5,484,492 Segment profit (loss) $ 192,702 ($ 24,956) $ 10,240 $ 177,986 Segment profit (loss) including: Interest income $ 15,323 $ 163 $ - $ 15,486 Depreciation and amortisation (Note) ( 681,476) ( 15,547) - ( 697,023) Loss on investments accounted for using equity method ( 28,798) - 10,240 ( 18,558) Income tax expense ( 30,755) - - ( 30,755) Segment assets $ 4,501,342 $ 94,744 ($ 25,643) $ 4,570,443 Segment assets including: Long-term equity investments accounted for using equity method $ 43,365 $ - ($ 25,462) $ 17,903 Capital expenditures - non-current assets 182,780 5,338 - 188,118 Segment liabilities ($ 2,674,661) ($ 33,093) $ 181 ($ 2,707,573)

Note: Including depreciation expenses on property, plant and equipment and right-of-use assets.

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B. Year ended December 31, 2018 Adjustment Mainland and Taiwan China elimination Total Revenue from external customers $ 5,710,958 $ 81,146 $ - $ 5,252,104 Segment revenue $ 5,170,958 $ 81,146 $ - $ 5,252,104 Segment profit (loss) $ 191,728 ($ 32,906) $ 13,277 $ 172,099 Segment profit (loss) including: Interest income $ 14,034 $ 257 $ - $ 14,291 Depreciation and amortisation ( 180,697) ( 5,795) - ( 186,492) Loss on investments accounted for using equity method ( 29,417) - 13,277 ( 16,140) Income tax expense ( 51,079) - - ( 51,079) Segment assets $ 2,912,969 $ 54,438 ($ 17,099) $ 2,950,308 Segment assets including: Long-term equity investments accounted for using equity method $ 27,407 $ - ($ 16,681) $ 10,726 Capital expenditures - non-current assets 193,180 4,308 - 197,488 Segment liabilities ($ 1,148,774) ($ 13,096) $ 418($ 1,161,452)

The adoption of IFRS 16, ‘Leases’, had the following impact on the segment information in 2019. Adjustment Mainland and Taiwan China elimination Total Depreciation expense increased $ 501,559 $ 10,974 $ -$ 512,533 Segment assets increased $ 1,573,532 $ 21,210 $ -$ 1,594,742 Segment liabilities increased $ 1,589,936 $ 21,314 $ -$ 1,611,250

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(o) Geographical information Geographical information for the years ended December 31, 2019 and 2018 is as follows: Year ended December 31, 2019 Year ended December 31, 2018 Revenue Non-current assets Revenue Non-currentassets Taiwan$ 5,404,205 $ 2,115,955 $ 5,170,958 $ 535,515 Mainland China 80,287 34,002 81,146 12,149 $ 5,484,492 $ 2,149,957 $ 5,252,104 $ 547,664

(p) Major customer information Revenue from external customers that accounted for at least 10% of enterprise income and the department it belongs to: None.

~246~ An-Shin Food Services Co., Ltd. Loans to others Year ended December 31, 2019 Table 1 Expressed in thousands of NTD (Except as otherwise indicated)

Maximum Limit on outstanding balance Actual Amount of loans Collateral General Is a during the year Balance at amount transactions Allowance granted to Ceiling on No. ledger related ended December December drawn Interest Nature of with the Reason for short- for doubtful a single total loans （Note 1） Creditor Borrower account party 31, 2019 31, 2019 down rate loan borrower term financing accounts Item Value party granted Footnote 0 An-Shin MOS Other Y $ 21,415 21,415$ -$ 2.866% Short-term -$ Operational -$ Promissory 21,415$ 54,800$ 182,668$ Note 2 Food Burger receivables - financing needs notes Services Australia related Co., Ltd. Pty Ltd. parties -247-

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows: (1)The Company is ‘0’. (2)The subsidiaries are numbered in order starting from ‘1’. Note2: In accordance with the Company’s policy, limit on total loans shall not exceed 10% of the Company’s net assets based on the latest financial statements (December 31, 2019), and limit on loans to a single party shall not exceed 3% of the Company’s net assets based on the latest financial statements (December 31, 2019).

Table 1 Page 1 An-Shin Food Services Co., Ltd. Holding of marketable securities at the end of the period Year ended December 31, 2019 Table 2 Expressed in thousands of NTD (Except as otherwise indicated)

As of December 31, 2019

Number of shares Relationship with the (thousand shares Securities held by Marketable securities securities issuer General ledger account /thousand units) Book value Ownership Fair value Footnote An-Shin Food Services Co., Ltd. Stock 1 None Financial assets at fair value through profit or 65 $ 6,158 - $ 96.95 None loss - current 〃 Stock 2 Other related party 〃 250 6,572 - 26.20 〃 〃 Stock 3 None 〃 20 2,387 - 125.50 〃 〃 Stock 4 〃〃 29 2,732 - 90.80 〃 〃 Stock 5 〃〃 10 3,053 - 302.00 〃 〃 Stock 6 〃〃 15 1,776 - 115.00 〃 〃 Stock 7 〃〃 43 14,108 - 331.00 〃 〃 Stock 8 〃〃 100 2,853 - 28.97 〃 〃 Stock 9 〃〃 13 3,606 - 281.00 〃 〃 Stock 10 〃〃 47 1,248 - 27.90 〃

-248- 〃 Stock 11 〃〃 22 1,060 - 52.00 〃 〃 Stock 12 〃〃 12 1,794 - 145.00 〃 〃 Stock 13 〃〃 3 543 - 169.50 〃 〃 Stock 14 〃〃 60 3,820 - 64.30 〃 〃 Stock 15 〃〃 3 734 - 227.00 〃 〃 Stock 16 〃〃 25 2,795 - 112.00 〃 〃 Stock 17 〃〃 - 2 - - 〃 〃 Stock 18 〃〃 190 10,146 - 53.90 〃 〃 Stock 19 〃〃 4 1,759 - 443.50 〃 〃 Stock 20 〃〃 12 2,627 - 219.00 〃 〃 Stock 21 〃〃 30 6,626 - 220.00 〃

Table 2 Page 2 As of December 31, 2019

Number of shares Relationship with the (thousand shares Securities held by Marketable securities securities issuer General ledger account /thousand units) Book value Ownership Fair value Footnote An-Shin Food Services Co., Ltd. None Financial assets at fair value through profit or 716 $ 10,343 - $ 14.45 None Fund 1 loss - current 〃 Fund 2 〃〃 60 1,278 - 21.53 〃 〃 Fund 3 〃〃 24 1,041 - 43.85 〃 〃 Fund 4 〃〃 926 15,149 - 16.38 〃 〃 Fund 5 〃〃 555 7,397 - 13.28 〃 〃 Fund 6 〃〃 742 10,113 - 13.66 〃 〃 Fund 7 〃〃 482 4,800 - 9.87 〃 〃 Fund 8 〃〃 14 4,936 - 11.83 〃 〃 Fund 9 〃〃 1 3,294 - 108.07 〃 〃 Fund 10 〃〃 16 49,044 - 10.09 〃 〃 Stock 22 Common director Financial assets at fair value through other 1 100 -- 〃 comprehensive income-non - current $ 139,754 -249-

Table 2 Page 3 An-Shin Food Services Co., Ltd. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more Year ended December 31, 2019 Table 3 Expressed in thousands of NTD (Except as otherwise indicated)

Differences in transaction terms compared to third party Transaction transactions Notes/accounts receivable (payable) Relationship with the Purchases Percentage of Percentage of total notes/accounts Purchaser/seller Counterparty counterparty (sales) Amount total purchases (sales) Credit term Unit price Credit term Balance receivable (payable) Footnote An-Shin Food Magic-Food Mos Other related party Purchases 811,700$ 41% Note Not applicable Not applicable 67,487$ 26% None Services Co., Ltd. Food Industry Co., Ltd. An-Shin Food Services Taiwan Pelican Express Other related party Purchases 179,052 9% Note Not applicable Not applicable 34,406 13% None Co., Ltd. Co., Ltd.

Note: Credit terms are in accordance with mutual agreement. -250-

Table 3 Page 4 An-Shin Food Services Co., Ltd. Information on investees (not including investees in Mainland China) Year ended December 31, 2019 Table 4 Expressed in thousands of NTD (Except as otherwise indicated)

Initial investment amount Shares held as at December 31, 2019 Net profit (loss) of the Investment income (loss) Balance at Balance at investee for the year recognised by the Company December 31, December 31, Number of ended December 31, for the year ended Investor Investee Location Main business activities 2019 2018 shares Ownership Book value 2019 December 31, 2019 Footnote An-Shin Food Services An-Shin Food Services Singapore Foreign investment$ 255,249 $ 230,381 8,414 41.30% 25,462$ ($ 24,957) ($ 10,240) The Company's Co., Ltd. (Singapore) Pte. Ltd. subsidiary 〃 Mos Burger Australia Australia Restaurant management: 44,908 82,880 1,979 42.14% 17,903 ( 57,458) ( 18,558) The Company's Pty. Ltd. restaurant services investee accounted for using equity method -251-

Table 4 Page 5 An-Shin Food Services Co., Ltd. Information on investments in Mainland China Year ended December 31, 2019 Table 5 Expressed in thousands of NTD (Except as otherwise indicated)

Amount remitted from Taiwan to Mainland China/ Accumulated Accumulated Amount remitted back amount of Book value of amount of to Taiwan for the year ended Accumulated amount remittance from Net income Ownership Investment income investments in investment December 31, 2019 of remittance from Taiwan to of investee held by the (loss) recognised by Mainland income remitted Taiwan to Mainland Remitted to Mainland China as of Company the Company for the China as of back to Taiwan as Investee in Main business Investment China as of Mainland Remitted back as of December December (direct or year ended December December 31, of December 31, Mainland China activities Paid-in capital method January 1, 2019 China to Taiwan 31, 2019 31, 2019 indirect) 31, 2019 2019 2019 Footnote Xia Men An-Shin Restaurant $ 600,741 Note 1 $ 230,381 $ 24,868 $ - $ 255,249 ($ 24,924) 41.30% ($ 10,228) $ 56,737 $ - Notes 3 and Food Management management: 5 Co., Ltd. restaurant services (limited to branches) Guangdong Mos Restaurant 353,245 Note 2 14,837 - 2,562 - ( 18,889) - - - - Notes 5 and -252- Burger Management management: 6 Co., Ltd. restaurant services (limited to branches)

Investment amount approved by Ceiling on investments in Accumulated amount of remittance the Investment Commission of the Mainland China imposed by from Taiwan to Mainland China as Ministry of Economic Affairs the Investment Commission of Company name of December 31, 2019 (MOEA) MOEA Xia Men An-Shin $ 255,249 $ 225,249 $ 1,117,722 Food Management Co., Ltd.

Note 1: Through investing in an existing company in the third area, which then invested in the investee in Mainland China : Invest through An-Shin Food Service (Singapore) Pte. Ltd. Note 2: Through investing in an existing company in the third area, which then invested in the investee in Mainland China : Invest through H.K. Mos Burger Investment co., Ltd. Note 3: The financial statements were audited by R.O.C. parent company’s CPA. Note 4: In accordance with ‘Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China’ and ‘Regulations Governing the Permission of Investment or Technical Cooperation in Mainland Area’ amended on August 29, 2008 by Investment Commission of Ministry of Economic Affairs, the limit on accumulated investment amount in Mainland China for investors (not including individuals and small and medium enterprices) is 60% of net assets or consolidated net assets, whichever is higher. Note 5: The amounts in this table are expressed in New Taiwan Dollars. Note 6: The Company sold the investment in the investee in the third quarter of 2019.

Table 5 Page 6 Appendix II

AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2019 AND 2018

------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.

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REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of An-Shin Food Services Co., Ltd.

Opinion We have audited the accompanying parent company only balance sheets of An-Shin Food Services Co., Ltd. as at December 31, 2019 and 2018, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2019 and 2018, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers.”

Basis for opinion We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. The key audit matters in relation to the parent company only financial statements for the year ended December 31, 2019 are outlined as follows:

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Audit of POS system and accuracy in recognition of retail sales revenue

Description For accounting policies applied on operating revenue, please refer to Note 4(26). For details of operating revenue accounts, please refer to Note 6(19). An-Shin Food Services Co., Ltd. is primarily engaged in the operation of food chains and beverage service activities in Taiwan. Sales revenue arises mainly through direct retail sales to customers in stores. Sales revenue was $5,404,205 thousand for the year ended December 31, 2019. The Company has a large number of stores which handles significant cash and revenue daily including sales of merchandise, voucher and stored-value card topped-up, etc. The amount of cash receipts rely on POS system to collect and summarise transaction records, and generate information for the accounting department to make appropriate accounting entries in the accounting system. Although each transaction is low-valued, we consider the audit of POS system and accuracy in recognition of retail sales revenue a key audit matter, given the voluminous number of retail sales transactions.

How our audit addressed the matter We performed the following audit procedures to address the abovementioned key audit matter: 1. Selected samples and checked whether the merchandise master file data in the POS system are properly maintained and approved. 2. Observed the data base setting of sales information in the POS system, and selected samples and checked whether the sales information in POS system are completely transferred to the ERP system. 3. Selected samples and checked whether sales revenue with the POS system in stores are consistent with the POS system in headquarters. 4. Selected samples and checked whether sales revenue vouchers issued manually are consistent with stores’ operating income report generated by the POS system.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to ~255~

enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including independent directors and supervisors, are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with ROC GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ~256~

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. 5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Chih, Ping-Chiun Wu, Yu-Lung

For and on behalf of PricewaterhouseCoopers, Taiwan February 25, 2020 ------The accompanying parent company only 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 parent company only financial statements and report of independent accountants 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.

~258~ AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

December 31, 2019 December 31, 2018 Assets Notes AMOUNT % AMOUNT %

Current assets

1100 Cash and cash equivalents 6(1) $ 1,726,172 38 $ 1,731,954 59

1110 Financial assets at fair value through 6(2)

profit or loss - current 139,654 3 139,136 5

1170 Accounts receivable, net 6(4) 86,503 2 97,992 3

1200 Other receivables 8,989 - 2,885 -

1210 Other receivables - related parties 7 3,454 - 16,426 1

130X Inventories, net 6(5) 42,836 1 37,793 1

1410 Prepayments 8,076 - 14,974 1

1470 Other current assets 6(1) and 8 300,726 7 280,435 10

11XX Total current assets 2,316,410 51 2,321,595 80

Non-current assets

1517 Non-current financial assets at fair 6(3)

value through other comprehensive

income 100 - - -

1550 Investments accounted for using 6(6)

equity method 43,365 1 27,407 1

1600 Property, plant and equipment, net 6(7) and 7 423,678 10 418,595 14

1755 Right-of-use assets 6(8) and 7 1,573,532 35 - -

1780 Intangible assets 6(9) and 7 15,655 - 11,555 -

1840 Deferred income tax assets 6(24) 25,612 1 28,452 1

1900 Other non-current assets 6(10) 102,990 2 105,365 4

15XX Total non-current assets 2,184,932 49 591,374 20

1XXX Total assets $ 4,501,342 100 $ 2,912,969 100

(Continued)

~259~ AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

December 31, 2019 December 31, 2018 Liabilities and Equity Notes AMOUNT % AMOUNT % Current liabilities 2130 Current contract liabilities 6(19) $ 309,317 7 $ 280,876 10 2150 Notes payable 1,026 - 640 - 2170 Accounts payable 147,846 3 191,124 6 2180 Accounts payable - related parties 7 103,568 2 135,522 5 2200 Other payables 6(11) 451,141 10 452,633 15 2220 Other payables - related parties 7 30,215 1 34,781 1 2230 Current income tax liabilities 6(24) 7,001 - 29,731 1 2280 Current lease liabilities 6(8) 442,232 10 - - 2300 Other current liabilities 6(12) 4,800 - - - 21XX Total current liabilities 1,497,146 33 1,125,307 38 Non-current liabilities 2550 Provisions for liabilities - non-current 6(14) 16,805 - 16,401 1 2570 Deferred income tax liabilities 6(24) 2,318 - 2,375 - 2580 Non-current lease liabilities 6(8) 1,147,704 26 - - 2600 Other non-current liabilities 6(13) 10,688 - 4,691 - 25XX Total non-current liabilities 1,177,515 26 23,467 1 2XXX Total liabilities 2,674,661 59 1,148,774 39 Equity Share capital 6(15) 3110 Common stock 323,895 7 323,895 11 Capital surplus 6(16) 3200 Capital surplus 809,816 18 809,816 28 Retained earnings 6(17) 3310 Legal reserve 153,920 3 139,855 5 3320 Special reserve 21,260 1 4,897 - 3350 Unappropriated retained earnings 535,290 12 517,115 18 Other equity interest 6(18) 3400 Other equity interest ( 7,377) - ( 21,260) (1) 3500 Treasury stocks 6(15) ( 10,123) - ( 10,123) - 3XXX Total equity 1,826,681 41 1,764,195 61 Significant contingent liabilities and 7 and 9 unrecognised contract commitments 3X2X Total liabilities and equity $ 4,501,342 100 $ 2,912,969 100

The accompanying notes are an integral part of these parent company only financial statements.

~260~ AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

Year ended December 31 2019 2018 Items Notes AMOUNT % AMOUNT % 4000 Sales revenue 6(19) and 7 $ 5,404,205 100 $ 5,170,958 100 5000 Operating costs 6(5)(13)(22)(23) and 7 ( 3,995,469) ( 74) ( 3,824,955) ( 74 ) 5900 Net operating margin 1,408,736 26 1,346,003 26 Operating expenses 6(7)(8)(9)(13)(22)(23 ) and 7 6100 Selling expenses ( 771,575) ( 14) ( 724,934) ( 14 ) 6200 General and administrative expenses ( 436,519) ( 8) ( 421,517) ( 8 ) 6000 Total operating expenses ( 1,208,094) ( 22) ( 1,146,451) ( 22 ) 6900 Operating profit 200,642 4 199,552 4 Non-operating income and expenses 7010 Other income 6(20) and 7 42,324 1 39,842 1 7020 Other gains and losses 6(2)(21) ( 1,959) - ( 18,249) - 7050 Finance costs 6(8) ( 19,507) - - - 7070 Share of loss of subsidiaries, associates 6(6) and joint ventures accounted for using equity method ( 28,798) ( 1) ( 29,417) ( 1 ) 7000 Total non-operating income and expenses ( 7,940) - ( 7,824) - 7900 Profit before income tax 192,702 4 191,728 4 7950 Income tax expense 6(24) ( 30,755) ( 1) ( 51,079) ( 1 ) 8200 Profit for the year $ 161,947 3 $ 140,649 3 Other comprehensive income, net 6(3)(13)(18)(24) Components of other comprehensive income that will not be reclassified to profit or loss 8311 (Losses) gains on remeasurements of defined benefit plan ( $ 8,034) - $ 891 - 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 2,562 - - - 8349 Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss 1,606 - 430 - 8310 Components of other comprehensive (loss) income that will not be reclassified to profit or loss ( 3,866) - 1,321 - Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements ( 1,193) - ( 487) - 8399 Income tax relating to components of other comprehensive income that will be reclassified 239 - 324 - 8360 Components of other comprehensive loss that will be reclassified to profit or loss ( 954) - ( 163) - 8300 Total other comprehensive (loss) income for the year ( $ 4,820) - $ 1,158 - 8500 Total comprehensive income for the year $ 157,127 3 $ 141,807 3

Earnings per share (in dollars) 9750 Basic earnings per share 6(25) $ 5.02 $ 4.36

9850 Diluted earnings per share 6(25) $ 5.01 $ 4.35

The accompanying notes are an integral part of these parent company only financial statements.

~261~ AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

Retained earnings Other equity interest Unrealised gains (losses) from financial assets measured at fair Exchange differences value through Capital surplus, on translation of other additional paid-in Unappropriated foreign financial comprehensive Notes Common stock capital Legal reserve Special reserve retained earnings statements income Treasury stocks Total

2018 Balance at January 1, 2018 6(15)(16)(17 )(18) $ 323,895 $ 809,816 $ 122,992 $ 6,686 $ 487,905 ($ 6,260 ) $ 1,363 ($ 10,123 ) $ 1,736,274 Effect of retrospective application and retrospective adjustment -- - -16,200 - ( 16,200 ) - - Balance at 1 January after adjustments 323,895 809,816 122,992 6,686 504,105 ( 6,260 ) ( 14,837 ) ( 10,123 ) 1,736,274 Profit for the year 6(25) -- - -140,649 - - - 140,649 Other comprehensive income (loss) for the year 6(18) -- - -1,321 ( 163 ) - - 1,158 Total comprehensive income (loss) -- - -141,970 ( 163 ) - - 141,807 Changes in equity due to not participating in the capital increase of 6(6) associates proportionately -- - -(932)---(932) Appropriation and distribution of 2017 retained earnings (Note 1) 6(17) Legal reserve -- 16,863 -( 16,863)---- Reversal of special reserve -- - ( 1,789 ) 1,789---- Cash dividends -- - -( 112,954 ) - - - ( 112,954 ) Balance at December 31, 2018 $ 323,895 $ 809,816 $ 139,855 $ 4,897 $ 517,115 ($ 6,423 ) ($ 14,837 ) ($ 10,123 ) $ 1,764,195 2019 Balance at January 1, 2019 6(15)(16)(17 )(18) $ 323,895 $ 809,816 $ 139,855 $ 4,897 $ 517,115 ($ 6,423 ) ($ 14,837 ) ($ 10,123 ) $ 1,764,195 Effect of retrospective application and retrospective adjustment 3(1) -- - -13,282 - - - 13,282 Balance at 1 January after adjustments 323,895 809,816 139,855 4,897 530,397 ( 6,423 ) ( 14,837 ) ( 10,123 ) 1,777,477 Profit for the year 6(25) -- - -161,947 - - - 161,947 Other comprehensive (loss) income for the year 6(18) -- - -( 6,428 ) ( 954 ) 2,562 - ( 4,820 ) Total comprehensive income (loss) -- - -155,519 ( 954 ) 2,562 - 157,127 Changes in equity due to not participating in the capital increase of 6(6) associates proportionately -- - -( 11,106 ) - - - ( 11,106 ) Appropriation and distribution of 2018 retained earnings (Note 2) 6(17) Legal reserve -- 14,065 -( 14,065)---- Special reserve -- - 16,363 ( 16,363)---- Cash dividends -- - -( 96,817 ) - - - ( 96,817 ) Proceeds from disposal of financial assets at fair value through other comprehensive income -- - -( 12,275 ) - 12,275 - - Balance at December 31, 2019 $ 323,895 $ 809,816 $ 153,920 $ 21,260 $ 535,290 ($ 7,377 ) $ - ($ 10,123 ) $ 1,826,681

Note 1:The directors' and supervisors' remuneration of $9,174 and employees' remuneration of $4,587 have been deducted from the statement of comprehensive income. Note 2:The directors' and supervisors' remuneration of $8,159 and employees' remuneration of $4,079 have been deducted from the statement of comprehensive income.

The accompanying notes are an integral part of these parent company only financial statements.

~262~ AN-SHIN FOOD SERVICES CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars)

Notes 2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax $ 192,702 $ 191,728 Adjustments Adjustments to reconcile profit (loss) (Gain) loss on current financial assets at fair value through profit or loss 6(2)(21) ( 15,850 ) 10,011 Impairment loss 6(7)(21) 8,550 333 Depreciation 6(7)(8)(22) 670,706 167,944 Amortisation 6(9)(22) 10,770 12,753 Dividend income 6(20) ( 2,027 ) ( 1,310 ) Intreset expense 6(8) 19,507 - Interest income 6(20) ( 15,323 ) ( 14,034 ) (Gain) loss on disposal of property, plant and equipment 6(21) ( 10 ) 1,771 Share of loss of subsidiaries, associates and joint ventures accounted for 6(6) using equity method 28,798 29,417 Changes in operating assets and liabilities Changes in operating assets Accounts receivable, net 6(4) 11,489 ( 14,746 ) Other receivables ( 5,804 ) 2,673 Other receivables - related parties 7 12,972 ( 12,941 ) Inventories, net 6(5) ( 5,043 ) 1,591 Prepayments 1,185 16,063 Other current assets ( 291 ) 28 Changes in operating liabilities Contract liabilities - current 6(19) 28,441 27,639 Notes payable 386 640 Accounts payable ( 43,278 ) 10,045 Accounts payable - related parties 7 ( 31,954 ) 9,758 Other payables 6(11) ( 17,726 ) 11,745 Other payables - related parties 7 ( 5,603 ) 1,176 Other current liabilities 6(12) 4,800 - Provisions for liabilities - non-current 6(14) 404 620 Other non-current liabilities ( 2,037 ) ( 990 ) Cash inflow generated from operations 845,764 451,914 Interest received 15,023 13,999 Dividend received 6(20) 2,027 1,310 Imputed interest on lease liabilities paid 6(8) ( 19,507 ) - Income tax paid ( 52,748 ) ( 53,096 ) Net cash flows from operating activities 790,559 414,127 CASH FLOWS FROM INVESTING ACTIVITIES Increase in current financial assets at fair value through profit or loss ( 101,671 ) ( 55,572 ) Proceeds from disposal of current financial assets at fair value through profit or loss 117,003 89,412 Increase in pledged time deposits 8 ( 20,000 ) ( 30,000 ) Increase in non-current financial assets at fair value through other 6(3) comprehensive income ( 100 ) - Proceeds from disposal of non-current financial assets at fair value through other comprehensive income 2,562 - Increase in investments accounted for using the equity method 6(6) ( 56,413 ) ( 19,699 ) Acquisition of property, plant and equipment 6(7)(27) ( 143,265 ) ( 261,127 ) Proceeds from disposal of property, plant and equipment 10 138 Acquisition of intangible assets 6(9) ( 14,870 ) ( 3,883 ) Increase in refundable deposits 6(10) ( 2,524 ) ( 7,157 ) Decrease (increase) in other non-current assets 6(10) 4,899 ( 4,438 ) Net cash flows used in investing activities ( 214,369 ) ( 292,326 ) CASH FLOWS FROM FINANCING ACTIVITIES Decrease in lease liabilities 6(8) ( 485,155 ) - Cash dividends paid 6(17) ( 96,817 ) ( 112,954 ) Net cash flows used in financing activities ( 581,972 ) ( 112,954 ) Net (decrease) increase in cash and cash equivalents ( 5,782 ) 8,847 Cash and cash equivalents at beginning of year 1,731,954 1,723,107 Cash and cash equivalents at end of year $ 1,726,172 $ 1,731,954

The accompanying notes are an integral part of these parent company only financial statements.

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AN-SHIN FOOD SERVICES CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2019 AND 2018 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated) 1. HISTORY AND ORGANISATION An-Shin Food Services Co., Ltd. (the “Company”) was incorporated on December 4, 1990 under the provisions of the Company Act of the Republic of China (R.O.C.) and Statute For Investment By Foreign Nationals. The Company is primarily engaged in sales and marketing consultancy of hamburgers, managing coffee shops and restaurants. After several capital increases, as of December 31, 2019, the paid-in capital was $323,895. The shares of the Company have been listed in the R.O.C. Over-the-Counter (OTC) market since December 15, 2011. 2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION These parent company only financial statements were authorised for issuance by the Board of Directors on February 20, 2020. 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 endorsed by FSC effective from 2019 are as follows: Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 9, ‘Prepayment features with negative compensation’ January 1, 2019 IFRS 16, ‘Leases’ January 1, 2019 Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019 Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’ January 1, 2019 IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019 Annual improvements to IFRSs 2015-2017 cycle January 1, 2019 Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. The quantitative impact will be disclosed when the assessment is complete. IFRS 16, ‘Leases’ A. IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognise a ‘right-of-use asset’ and a lease liability (except for those leases

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with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors. B. The Company has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Company increased ‘right-of-use asset’ and ‘lease liability’ both by $1,790,379, increased investments accounted for using equity method and retained earnings by $641 and $13,282, respectively, and decreased prepayments, other payables and deferred income tax assets by $5,713, $22,245 and $3,891, respectively, with respect to the lease contracts of lessees on January 1, 2019. C. The Company has used the following practical expedients permitted by the standard at the date of initial application of IFRS 16: (a) Reassessment as to whether a contract is, or contains, a lease is not required, instead, the application of IFRS 16 depends on whether or not the contracts were previously identified as leases applying IAS 17 and IFRIC 4. (b) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics. (c) The exclusion of initial direct costs for the measurement of ‘right-of-use asset’. (d) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. D. The Company calculated the present value of lease liabilities by using weighted average incremental borrowing interest rate of 1.2%. E. The Company recognised lease liabilities which had previously been classified as ‘operating leases’ under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments under IAS 17 measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as follows: Operating lease commitments disclosed by applying IAS 17 as at December 31, 2018 $ 1,862,254 Total lease contracts amount recognised as lease liabilities by applying IFRS 16 on January 1, 2019 1,862,254 Incremental borrowing interest rate at the date of initial application 1.2% $ 1,790,379 Lease liabilities recognised as at January 1, 2019 by applying IFRS 16 (2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as

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follows: Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendment to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of January 1, 2020 Material’ Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020 Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark January 1, 2020 reform’ The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. (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: Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board 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’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2021 Amendments to IAS 1, ‘Classification of liabilities as current or January 1, 2022 non-current’ The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. (1) Compliance statement The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”. (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 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 recognised based on the net amount of pension fund assets less

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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 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 Company’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) Foreign currency translation Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The non-consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and presentation currency. A. Foreign currency transactions and balances (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise. (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the closing exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. (d) All foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’. B. Translation of foreign operations The operating results and financial position of all the Company entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and (c) All resulting exchange differences are recognised in other comprehensive income.

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(4) Classification of current and non-current items A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (b) Assets held mainly for trading purposes; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: (a) Liabilities that are expected to be settled within the normal operating cycle; (b) Liabilities arising mainly from trading activities; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. (5) Cash equivalents Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents. (6) Financial assets at fair value through profit or loss A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss. D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably. (7) Financial assets at fair value through other comprehensive income A. Financial assets at fair value through other comprehensive income comprise equity securities

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which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income. B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting. C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably. (8) Loans and receivable A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services. B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. (9) Impairment of financial assets The Company shall always measure the loss allowance at an amount equal to lifetime expected credit losses for accounts receivable or contract assets that do not contain a significant financing component at each balance sheets date. (10) Derecognition of financial assets The Company derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire. (11) Leasing arrangements (lessor)－operating leases Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term. (12) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The goods comprise raw materials, direct labour, other direct costs and related production overheads. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. (13) Investments accounted for using equity method/subsidiaries and associates A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. B. Inter-company transactions, balances and unrealised gains or losses on transactions between

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companies within the Company are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership. D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity. E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

F. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not effect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership. H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company. I. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, then the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the

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aforementioned approach. J. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the non-consolidated financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the non-consolidated financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation. (14) Property, plant and equipment A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised. B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately. D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows: Property, plant and equipment Useful lives Kitchen equipment and freezers 1~7 years Lease term (1~11 years) or useful lives Leasehold improvements whichever is shorter Other equipment 1~7 years (15) Leasing arrangements (lessee) - right-of-use assets/lease liabilities Effective 2019 A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following: (a) Fixed payments, less any lease incentives receivable; and (b) Variable lease payments that depend on an index or a rate. The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications. C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; (b) Any lease payments made at or before the commencement date; (c) Any initial direct costs incurred by the lessee; and (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset. (16) Leased assets/ leases (lessee) Prior to 2018 Payments made under an operating lease (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the lease term. (17) Intangible assets Computer software is stated at cost and amortised using the straight-line method over its estimated useful life of 2 to 5 years. (18) Impairment of non-financial assets The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

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(19) Notes and accounts payable A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities. B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. (20) Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires. (21) Provisions Provisions mainly decommissioning provisions, etc. are recognised when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses. (22) Employee benefits A. Short-term employee benefits Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service. B. Pensions (a) Defined contribution plans For defined contribution plan, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments. (b) Defined benefit plans i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the

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currency and term of the employment benefit obligations.

ii. Remeasurements arising on defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings. C. Employees’ compensation and, directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. And difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. (23) Income tax A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity. B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings. C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed. E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an

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intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously. (24) Share capital A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds. B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders. (25) Dividends Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities. (26) Revenue recognition A. The Company is primarily engaged in sales of hamburgers, and revenue is recognised when products are sold to customers. B. Payment of the transaction price is due immediately when the customer purchases the product. It is the Company’s policy to sell its products to the end-customer with a right of return within a certain period. Therefore, a refund liability and a right to the returned goods are recognised for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is highly probable that a significant reversal in the cumulative revenue recognised will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date. C. The Company operates a loyalty programme where retail customers accumulate points for purchases made which entitle them to a discount on future purchases. The points provide a material right to customers that they would not receive without entering into a contract. Therefore, the promise to provide points to the customer is a separate performance obligation. The transaction price is allocated to the product and the points on a relative stand-alone selling price basis. The stand-alone selling price per point is estimated on the basis of the discount granted when the points are redeemed and on the basis of the likelihood of redemption, based on past experience. The stand-alone selling price of the product sold is estimated on the basis of the retail price. A contract liability is recognised for the transaction price which is allocated

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to the points and revenue is recognised when the points are redeemed or expire. (27) Government grants Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate. 5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below: (1) Critical judgements in applying the Company’s accounting policies None. (2) Critical accounting estimates and assumptions None. 6. DETAILS OF SIGNIFICANT ACCOUNTS (1) Cash and cash equivalents December 31, 2019 December 31, 2018 Cash on hand $ 31,581 $ 67,550 Checking accounts and demand deposits 321,787 309,337 Time deposits 1,372,804 1,355,067 $ 1,726,172 $ 1,731,954

A. The Company transacts 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. As of December 31, 2019 and 2018, cash and cash equivalents amounting to $300,000 and $280,000, respectively, representing performance guarantee for the issuance of Mos cards and gift certificates were pledged to others as collateral, classified as “1470 other current assets”.

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(2) Financial assets at fair value through profit or loss Items December 31, 2019 December 31, 2018 Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks $ 74,546 $ 63,453 Open-end fund 62,299 86,102 136,845 149,555 Valuation adjustment 2,809 ( 10,419) $ 139,654 $ 139,136

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A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below: Year ended Year ended December 31, 2019 December 31, 2018 Financial assets mandatorily measured at fair value through profit or loss Equity instruments $ 15,850 ($ 10,011) B. Information relating to credit risk is provided in Note 12(2). (3) Financial assets at fair value through other comprehensive income Items December 31, 2019 December 31, 2018 Non-current items: Equity instruments Unlisted stocks$ 100 $ 14,837 Valuation adjustment - ( 14,837) $ 100 $ -

A. The Company has elected to classify investments such as Taiwan Depository & Clearing Corporation and H.K. Mos Burger Investment co., Ltd. that are considered to be a strategic investment as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $100 and $0, respectively, as at December 31, 2019 and 2018. B. Aiming to satisfy the strategic investment adjustment, the Company sold $2,562 of H.K. Mos Burger Investment co., Ltd. at fair value and resulted in cumulative losses amounting to $12,275, which were derecognised and transferred to retained earnings, during the year ended December 31, 2019. There was no such transaction for the year ended December 31, 2018. C. For the years ended December 31, 2019 and 2018, the fair value of financial assets at fair value through other comprehensive income is recognised in other comprehensive income in the amount of $2,562 and $0, respectively. D. As of December 31, 2019 and 2018, 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 Company was $100 and $0, respectively. E. Information relating to credit risk is provided in Note 12(2). (4) Accounts receivable December 31, 2019 December 31, 2018 Accounts receivable $ 86,503 $ 97,992 Less: Allowance for bad debts - - $ 86,503 $ 97,992

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A. The ageing analysis of accounts receivable that were past due but not impaired is as follows: December 31, 2019 December 31, 2018 Not past due $ 80,420 $ 72,684 Up to 30 days 5,180 23,281 31 to 90 days 814 2,006 91 to 180 days 89 21 $ 86,503 $ 97,992

The above ageing analysis was based on invoice date. B. As of December 31, 2019 and 2018, and January 1, 2018, the balances of receivables from contracts with customers amounted to $86,503, $97,992 and $83,246, respectively. C. The Company had no accounts receivable pledged to others as collateral as of December 31, 2019 and 2018. D. As at December 31, 2019 and 2018, 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 Company’s accounts receivable was $86,503 and $97,992, respectively. E. Information relating to credit risk is provided in Note 12(2). (5) Inventories December 31, 2019 Allowance for Cost valuation loss Book value Food$ 35,145 ($ 188) $ 34,957 Packing materials 7,242 ( 205) 7,037 Others 1,081 ( 239) 842 $ 43,468 ($ 632) $ 42,836

December 31, 2018 Allowance for Cost valuation loss Book value Food$ 30,226 ($ 63) $ 30,163 Packing materials 6,055 ( 150) 5,905 Others 1,960 ( 235) 1,725 $ 38,241 ($ 448) $ 37,793

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The cost of inventories recognised as expense for the year :

Year ended Year ended December 31, 2019 December 31, 2018 Cost of inventories sold$ 1,888,363 $ 1,840,700 Other traveling and dining service costs 2,113,976 1,990,448 Inventory valuation loss 184 42 Revenue from sale of scraps ( 7,054) ( 6,235) $ 3,995,469 $ 3,824,955

(6) Investments accounted for using equity method December 31, 2019 December 31, 2018 Subsidiaries: An-Shin Food Services (Singapore) Pte. Ltd.$ 25,462 $ 16,681 Associates: Mos Burger Australia Pty. Ltd. 17,903 10,726 $ 43,365 $ 27,407

A. The basic information of the associate that is material to the Company is as follows: Principal Company placeShareholding ratio Nature of Method of name of business December 31, 2019 December 31, 2018 relationship measurement Mos Burger Australia 42.14% 29.19% Financial Equity Australia investment method Pty. Ltd. B. The summarised financial information of the associate that is material to the Company is as follows: Balance sheet Mos Burger Australia Pty Ltd. December 31, 2019 December 31, 2018 Current assets $ 38,987 $ 34,609 Non-current assets 78,486 15,360 Current liabilities ( 35,746) ( 10,948) Non-current liabilities ( 39,243) ( 2,275) Total net assets $ 42,484 $ 36,746

Share in associate's net assets $ 17,903 $ 10,726 Goodwill - - $ 17,903 $ 10,726 Carrying amount of the associate

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Statement of comprehensive income Mos Burger Australia Pty Ltd. Year ended Year ended December 31, 2019 December 31, 2018 Revenue $ 83,377 $ 86,175 Loss for the year from continuing operations ($ 57,458) ($ 55,289) Total comprehensive loss ($ 57,458) ($ 55,289) $ - $ - Dividends received from associate C. As the Company increased its capital investment in Mos Burger Australia Pty. Ltd. by $19,699 (AUD 868 thousand) as resolved by the Board of Directors on June 5, 2018 and some shareholders of the associate did not subscribe to the capital increase, the Company’s ownership percentage increased to 29.19% after the capital increase and the Company recognised the decrease in equity in the amount of $932 in 2018. D. The Board of Directors of associated company Mos Burger Australia Pty. Ltd. during its meeting on August 7, 2019, resolved a plan to reduce capital amounting to AUD 2,576 thousand to cover accumulated deficit. E. As the Company increased its capital investment in Mos Burger Australia Pty. Ltd. by $31,545 (AUD 1,484 thousand) as resolved by the Board of Directors on August 7, 2019 and some shareholders of the associate did not subscribe to the capital increase, the Company’s ownership percentage increased to 42.14% after the capital increase and the Company recognised the decrease in equity in the amount of $5,953 in 2019. F. The Company’s investment in Mos Burger Australia Pty. Ltd. has no quoted market price. G. For information of the Company’s subsidiaries, please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2019.

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(7) Property, plant and equipment Kitchen equipment Leasehold and freezers improvements Others Total At January 1, 2019 Cost$ 398,105 $ 1,520,676 $ 261,016 $ 2,179,797 Accumulated depreciation ( 1,761,202) and impairment ( 286,568) ( 1,277,067) ( 197,567) $ 111,537 $ 243,609 $ 63,449 $ 418,595 2019 Opening net book amount as at January 1 $ 111,537 $ 243,609 $ 63,449 $ 418,595 Additions 31,047 117,274 34,459 182,780 Depreciation charge ( 34,455) ( 105,593) ( 29,099) ( 169,147) Impairment loss - ( 8,550) - ( 8,550) Closing net book amount as at December 31 $ 108,129 $ 246,740 $ 68,809 $ 423,678 At December 31, 2019 Cost $ 407,033 $ 1,615,146 $ 275,362 $ 2,297,541 Accumulated depreciation and impairment ( 298,904) ( 1,368,408) ( 206,551) ( 1,873,863) $ 108,129 $ 246,738 $ 68,811 $ 423,678

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Kitchen equipment Leasehold and freezers improvements Others Total At January 1, 2018 Cost$ 396,996 $ 1,444,321 $ 262,926 $ 2,104,243 Accumulated depreciation ( 1,708,642) and impairment ( 318,583) ( 1,197,489) ( 192,570) $ 78,413 $ 246,832 $ 70,356 $ 395,601 2018 Opening net book amount as at January 1 $ 78,413 $ 246,832 $ 70,356 $ 395,601 Additions 69,202 101,290 22,688 193,180 Disposals ( 318) ( 1,472) ( 119) ( 1,909) Depreciation charge ( 35,760) ( 102,708) ( 29,476) ( 167,944) Impairment loss - ( 333) -( 333) Closing net book amount as at December 31 $ 111,537 $ 243,609 $ 63,449 $ 418,595

At December 31, 2018 Cost $ 398,105 $ 1,520,676 $ 261,016 $ 2,179,797 Accumulated depreciation ( 1,761,202) and impairment ( 286,568) ( 1,277,067) ( 197,567) $ 111,537 $ 243,609 $ 63,449 $ 418,595 Impairment information about the property, plant and equipment is provided in Note 6(21). (8) Leasing arrangements－lessee Effective 2019 A. The Company leases various assets including land, buildings and cash registers. Rental contracts are typically made for periods of 2 to 11 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:

December 31, 2019 Carrying amount Land and buildings $ 1,573,532 Year ended December 31, 2019 Depreciation charge $ 501,559 Land and buildings C. For the year ended December 31, 2019, the additions to right-of-use assets amounted to $284,712.

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D. The information on income and expense accounts relating to lease contracts is as follows: Year ended December 31, 2019 Items affecting profit or loss Interest expense on lease liabilities $ 19,507 Expense on short-term lease contracts $ 49,335 Expense on leases of low-value assets $ 2,234 Expense on variable lease payments $ 47,256 E. For the year ended December 31, 2019, the Company’s total cash outflow for leases amounted to $603,487. F. Variable lease payments (a) Some of the Company’s lease contracts contain variable lease payment terms that are linked to sales generated from a store. For individual stores, up to 18% of lease payments are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons, including minimising the fixed costs for newly established stores. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs. (b) 5% increase in stores located in hypermarkets, which rental expense is calculated based on a guaranteed revenue or a percentage of revenue if the total revenue is over the guaranteed revenue, where such variable lease contracts would increase total lease payments by approximately 1.8%.

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(9) Intangible assets Computer software Year ended Year ended December 31, 2019 December 31, 2018 At January 1 Cost $ 57,660 $ 53,777 Accumulated amortisation ( 46,105) ( 33,352) $ 11,555 $ 20,425 Opening net book amount as at January 1 $ 11,555 $ 20,425 Additions-acquired separately 14,870 3,883 Amortisation charge ( 10,770) ( 12,753) Closing net book amount as at December 31 $ 15,655 $ 11,555 At Decemaber 31 Cost $ 72,530 $ 57,660 Accumulated amortisation ( 56,875) ( 46,105) $ 15,655 $ 11,555

Details of amortisation on intangible assets are as follows: Year ended Year ended December 31, 2019 December 31, 2018 Selling expenses$ 543 $ 701 Administrative expenses 10,227 12,052 $ 10,770 $ 12,753 (10) Other non-current assets

December 31, 2019 December 31, 2018 Refundable deposits Lease deposits $ 98,320 $ 96,203 Natural gas 1,872 1,845 Others 1,408 1,028 Payment for business facilities 1,390 6,289 $ 102,990 $ 105,365

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(11) Other payables

December 31, 2019 December 31, 2018 Payables on bonus$ 63,235 $ 69,686 Accrued payroll 143,777 135,922 Payables on equipment 59,900 21,421 Payables on repairs and maintenance expense 19,929 25,094 Payables on utilities expense 20,678 20,300 Payables on labor insurance expenses 32,945 30,235 Payables on pension 20,714 19,656 Payables on advertisement 12,257 25,009 Payables on shipping expenses 5,363 10,507 Others 72,343 94,803 $ 451,141 $ 452,633

(12) Other current liabilities December 31, 2019 December 31, 2018 Others advance receipts$ 4,800 $ -

(13) Pensions A. (a) The Company has a defined benefit pension plan 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 Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. (b) The amounts recognised in the balance sheet are as follows:

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December 31, 2019 December 31, 2018 Present value of defined benefit obligation ($ 46,725) ($ 37,993) Fair value of plan assets 36,704 34,827 Net defined benefit assets ($ 10,021) ($ 3,166) (c) Movements in net defined benefit liabilities are as follows:

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Present value of defined benefit Fair value of Net defined obligation plan assets benefit liability Year ended December 31, 2019 Balance at January 1($ 37,993) $ 34,827 ($ 3,166) Current service cost( 255) - ( 255) Interest (expense) income ( 380) 348 ( 32) ( 38,628) 35,175 ( 3,453) Remeasurements: Return on plan assets - 1,245 1,245 (excluding amounts included in interest income or expense) Change in financial assumptions( 1,501) - ( 1,501) Experience adjustments ( 7,778) - ( 7,778) ( 9,279) 1,245 ( 8,034) Pension fund contribution - 1,466 1,466 Paid pension 1,182 ( 1,182) - Balance at December 31 ($ 46,725) $ 36,704 ($ 10,021) Present value of defined benefit Fair value of Net defined obligation plan assets benefit liability Year ended December 31, 2018 Balance at January 1($ 38,634) $ 33,477 ($ 5,157) Current service cost( 286) - ( 286) Interest (expense) income ( 425) 368 ( 57) ( 39,345) 33,845 ( 5,500) Remeasurements: Return on plan assets - 1,062 1,062 (excluding amounts included in interest income or expense) Change in financial assumptions( 425) - ( 425) Experience adjustments 254 - 254 ( 171) 1,062 891 Pension fund contribution - 1,443 1,443 Paid pension 1,523 ( 1,523) - Balance at December 31 ($ 37,993) $ 34,827 ($ 3,166) (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in

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domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2019 and 2018 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government. (e) The principal actuarial assumptions used were as follows: 2019 2018 Discount rate 0.70% 1.00% 2.25% 2.25% Future salary increases Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25% December 31, 2019 Effect on present value of ($ 1,255) $ 1,307$ 1,172 ($ 1,134) defined benefit obligation December 31, 2018 Effect on present value of ($ 1,050) $ 1,094$ 985 ($ 952) defined benefit obligation The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period. (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2020 amounts to $1,398.

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(g) As of December 31, 2019, the weighted average duration of the retirement plan is 11 years. The analysis of timing of the future pension payment was as follows: Not later than one year$ 4,402 Later than one year but not later than five years 7,745 Later than five years 10,635 $ 22,782

B. (a) Effective July 1, 2005, the Company 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 Company 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. (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2019 and 2018 were $78,893 and $72,622, respectively. (14) Provisions Decommissioning liabilities 2019 At January 1 $ 16,401 Additional provisions 584 Used during the year ( 180) At December 31 $ 16,805 Decommissioning liabilities 2018 At January 1 $ 15,781 Additional provisions 1,174 Used during the year ( 554) At December 31 $ 16,401 Analysis of total provisions: December 31, 2019 December 31, 2018 $ 16,805 $ 16,401 Non-current Depending on the policies published, applicable agreements or the law/regulation requirements, the Company bears dismantling, removing the asset and restoring the site obligations for certain stores in the future. A provision is recognised for the present value of costs to be incurred for dismantling, removing the asset and restoring the site.

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(15) Share capital A. As of December 31, 2019, the Company’s authorised capital was $400,000, consisting of 40 million shares of ordinary stock, and the paid-in capital was $323,895 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. There were no changes in the number of the Company’s issued ordinary shares outstanding as of December 31, 2019 and 2018. B. Treasury shares (a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows: December 31, 2019 Name of company Reason for holding the shares reacquisition Number of shares Carrying amount The Company To be reissued to 117,000 $ 10,123 employees December 31, 2018 Name of company Reason for holding the shares reacquisition Number of shares Carrying amount The Company To be reissued to 117,000 $ 10,123 employees

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus. (c) Pursuant to the R.O.C. Securities and Exchange Act treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued. (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within three years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition. (16) Capital surplus A. Pursuant to the R.O.C. 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 Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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B. Capital surplus arise from paid-in capital in excess of par value on issuance of common stocks. There were no changes in the Company’s capital surplus as of December 31, 2019 and 2018. (17) Retained earnings A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall be appropriated based on the following order: (a) pay all taxes; (b) offset prior years’ operating losses; (c) set aside 10% as legal reserve; (d) set aside or reverse a special reserve in accordance with regulations by the competent authority; (e) The Company is engaged in the catering industry and is in the growth stage, with a stable financial structure. Other than the regulations in the Company Act and the Company's Articles of Incorporation, the Company also distributes earnings in line with its capital plan and operating result to resulting in deciding how to appropriate dividend. The Company adopts a stable and balanced dividend strategy and appropriates the dividend (including cash dividend or stock dividend) in accordance with operating results, financial position and capital plan during the Board of Directors' meeting before the shareholders' meeting, and the proportion of cash dividend should not be lower than 30% of total dividends. B. 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.

C. In accordance with the regulations, the Company shall set aside special reserve from the debit 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. The Company recognised dividends distributed to owners amounting to $96,817 ($3 (in dollars) per share) and $112,954 ($3.5 (in dollars) per share) for the years ended December 31, 2019 and 2018, respectively. On February 20, 2020, the Board of Directors proposed for the distribution of dividends from 2019 earnings in the amount of $103,274, with $3.2 (in dollars) per share. E. For the information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(23).

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(18) Other equity items Unrealised gains Currency (losses) on translation valuation differences Total At January 1, 2019 ($ 14,837) ($ 6,423) ($ 21,260) Valuation adjustment 2,562 - 2,562 Revaluation transferred to 12,275 - 12,275 retained earnings Currency translation differences: –Company - ( 1,193) ( 1,193) –Tax on Company - 239 239 $ - ($ 7,377) ($ 7,377) At December 31, 2019 Unrealised gains Currency (losses) on translation valuation differences Total At January 1, 2018 $ 1,363 ($ 6,260) ($ 4,897) Retrospection transferred to ( 1,363) - ( 1,363) retained earnings - gross Retrospection transferred from ( 14,837) - ( 14,837) retained earnings - gross Currency translation differences: –Company - ( 487) ( 487) –Tax on Company - 324 324 ($ 14,837) ($ 6,423) ($ 21,260) At December 31, 2018 (19) Operating revenue Year ended Year ended December 31, 2019 December 31, 2018 Revenue from contracts with Dining service income $ 5,404,205 $ 5,170,958

A. Disaggregation of revenue from contracts with customers The Company derives revenue from the transfer of goods at a point in time, which is dining service revenue.

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B. Contract assets and liabilities As of December 31, 2019, and 2018 and January 1, 2018, the Company has no contract assets in relation to contract revenue. In addition, the Company recognised contract liabilities as follows: December 31, 2019 December 31, 2018 January 1, 2018 Contract liabilities Contract liabilities – customer loyalty programmes $ 12,705 $ 12,605 $ 10,355 Contract liabilities – advance receipts 296,612 268,271 242,882 $ 309,317 $ 280,876 $ 253,237

(a) Significant changes in contract assets and liabilities None. (b) Revenue recognised that was included in the contract liability balance at the beginning of the period

Year ended Year ended December 31, 2019 December 31, 2018 Revenue recognised that was included in the contract liability balance at the beginning of the year Customer loyalty programmes $ 12,605 $ 12,605 Advance receipt 268,271 236,399 $ 280,876 $ 249,004

(20) Other income

Year ended Year ended December 31, 2019 December 31, 2018 Rental revenue $ 10,128 $ 9,434 Dividend income 2,027 1,310 Interest income: Interest income from bank deposits 14,885 13,775 Other interest income 438 259 Other income - others 14,846 15,064 $ 42,324 $ 39,842

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(21) Other gains and losses Year ended Year ended December 31, 2019 December 31, 2018 Gains (losses) on financial assets at fair $ 15,850 ($ 10,011) value through profit or loss Net currency exchange (loss) gain ( 3,209) 558 Gain (loss) on disposal of property, plant and equipment 10 ( 1,771) Impairment loss on property, plant and equipment ( 8,550) ( 333) Miscellaneous disbursements ( 6,060) ( 6,692) ($ 1,959) ($ 18,249)

The property, plant and equipment incurred impairment loss as the operating performance of certain stores did not meet the expectation; therefore, the Company recognised impairment loss amounting to $8,550 and $333, respectively in 2019 and 2018. (22) Expenses by nature Year ended Year ended December 31, 2019 December 31, 2018 Raw materials and supplies used$ 1,888,362 $ 1,840,700 Employee benefit expense 1,733,391 1,627,245 Operating lease payments 98,825 573,536 Depreciation (Note) 670,706 167,944 Amortisation charges on intangible assets 10,770 12,753 Utilities expenses 214,277 200,101 Advertising costs 143,463 148,723 Repairs and maintenance expenses 92,103 83,196 Transportation expenses 36,849 15,373 Others 314,817 301,835 $ 5,203,563 $ 4,971,406

Note: Including depreciation charges on property, plant and equipment and right-of-use assets. (23) Employee benefit expense Year ended Year ended December 31, 2019 December 31, 2018 Wages and salaries $ 1,430,613 $ 1,345,978 Labor and health insurance fees 166,532 151,739 Pension costs 79,180 72,965 Other personnel expenses 57,066 56,563 $ 1,733,391 $ 1,627,245

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A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall appropriate over 1~2% as employees' compensation, and under 5% as remuneration to directors and supervisors. However, if the Company has accumulated deficit, the earnings shall first be reserved to offset the deficit. B. For the years ended December 31, 2019 and 2018, employees’ compensation was accrued at $4,101 and $4,079, respectively; while directors’ and supervisors’ remuneration was accrued at $8,202 and $8,159, respectively. The aforementioned amounts were recognised in salary expenses. The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 2% and 4%, respectively, of distributable profit of current year for the years ended December 31, 2019 and 2018. The distributed amounts resolved by the Board of Directors’ were in agreement with estimated amounts, and the employees’ compensation will be distributed in the form of cash. Employees’ compensation and directors’ and supervisors’ remuneration of 2018 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2018 financial statements. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors and the shareholders at the shareholders’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange. (24) Income tax A. Income tax expense (a) Components of income tax expense: Year ended Year ended December 31, 2019 December 31, 2018 Current tax: Current tax on profits for the year$ 28,257 $ 47,398 Tax on undistributed surplus earnings 1,546 3,035 Prior year income tax underestimation 215 1,353 Total current tax 30,018 51,786 Deferred tax: Origination and reversal of temporary differences 737 2,803 Impact of change in tax rate - ( 3,510) Total deferred tax 737 ( 707) $ 30,755 $ 51,079 Income tax expense

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(b) The income tax credit (charge) relating to components of other comprehensive income is as follows: Year ended Year ended December 31, 2019 December 31, 2018 Currency translation differences $ 239 $ 324 Remeasurement of defined benefit $ 1,606 $ 430 obligation

B. Reconciliation between income tax expense and accounting profit: Year ended Year ended December 31, 2019 December 31, 2018 Tax calculated based on profit before tax and statutory tax rate $ 38,540 $ 38,346 Effect of amount not allowed to recognise under regulations ( 16,818) 2,359 Tax on undistributed earnings 1,546 3,035 Prior year income tax under estimation 215 1,353 Impact of change in tax rate - ( 3,510) Temporary difference not recognised as defered tax assets 5,760 - Change in assessment of realisation of deferred tax assets 1,512 9,496 $ 30,755 $ 51,079 Income tax expense

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C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows: Year ended December 31, 2019 Recognised Recognised in other in comprehensive January 1 profit or loss income December 31 Temporary differences: - Deferred tax assets: Loss on foreign investment recognised by equity method $ 3,991 ($ 1,000) $ - $ 2,991 Unrealised expenses (Note) 18,964 206 1,606 20,776 Currency translation differences 1,606 - 239 1,845 $ 24,561 ($ 794)$ 1,845$ 25,612 - Deferred tax liabilities: Currency translation differences ($ 765) $ - $ - ($ 765) Unrealised expenses ( 1,610) 57 -( 1,553) ($ 2,375) $ 57$ -($ 2,318) Note: It refers to the balance as at January 1, 2019 after adopting IFRS 16 using the modified retrospective approach. Year ended December 31, 2018 Recognised Recognised in other in comprehensive January 1 profit or loss income December 31 Temporary differences: - Deferred tax assets: Loss on foreign investment recognised by equity method $ 6,463 ($ 2,472) $ - $ 3,991 Unrealised expenses 18,948 3,477 430 22,855 Currency translation differences 1,282 - 324 1,606 $ 26,693 $ 1,005$ 754$ 28,452 - Deferred tax liabilities: Currency translation differences ($ 650) ($ 115) $ - ($ 765) Unrealised expenses ( 1,427) ( 183) -( 1,610) ($ 2,077) ($ 298)$ -($ 2,375)

D. The Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority. E. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised

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from 17% to 20% effective from January 1, 2018. The Company has assessed the impact of the change in income tax rate. (25) Earnings per share Year ended December 31, 2019 Weighted-average number of ordinary Earnings per shares outstanding share Amount after tax (shares in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the Company$ 161,947 32,273 $ 5.02 Diluted earnings per share Profit attributable to ordinary shareholders of the Company$ 161,947 32,273 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 53 Profit attributable to ordinary shareholders of the Company plus assumed conversion of all dilutive potential ordinary shares$ 161,947 32,326 $ 5.01

Year ended December 31, 2018 Weighted-average number of ordinary Earnings per shares outstanding share Amount after tax (shares in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the Company$ 140,649 32,273 $ 4.36 Diluted earnings per share Profit attributable to ordinary shareholders of the Company$ 140,649 32,273 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 63 Profit attributable to ordinary shareholders of the Company plus assumed conversion of all dilutive potential ordinary shares$ 140,649 32,336 $ 4.35

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(26) Operating leases Prior to 2018 The Company leases offices, stores and warehouse assets under non-cancellable operating lease agreements. The lease terms are between 1 to 10 years. Rent on certain leases will be adjusted with an agreed upon ratio, taking into consideration the effect of price fluctuations. The Company recognised rental expenses of $573,536 for the year ended December 31, 2018. The future aggregate minimum lease payments under non-cancellable operating leases are as follows: December 31, 2018 Not later than one year$ 456,521 Later than one year but not later than five years 1,036,092 Later than five years 282,424 $ 1,775,037

Details of the future minimum lease payments incurred from operating leases with related parties are provided in Note 7(2) I. (27) Supplemental cash flow information Year ended Year ended December 31, 2019 December 31, 2018 Investing activities with partial cash payments: Purchase of property, plant and equipment $ 182,780 $ 193,180 Add: Opening balance of payable on equipment 21,421 78,225 Opening balance of payable on equipment - related parties 7,784 18,927 Less: Ending balance of payable on equipment ( 59,900) ( 21,421) Ending balance of payable on equipment - related parties ( 8,820) ( 7,784) Cash paid during the year $ 143,265 $ 261,127

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7. RELATED PARTY TRANSACTIONS (1) Names of related parties and relationship Names of related parties Relationship with the Company Mos Food Services, Inc. (Mos Food Services) Entity with significant influence over the Company Guang-Yuan Industries Co., Ltd. (Guang-yuan ) Entity with significant influence over the Company Mos Burger Australia Pty. Ltd. (Mos Burger Australia) Associate TECO Electric & Machinery Co., Ltd. (TECO Electric & Machinery) Other related party Magic-Food Mos Food Industry Co., Ltd. (Magic-Food Mos) Other related party GD Teco Taiwan Co., Ltd. (GD Teco Taiwan) Other related party Yuban & Company (Yuban) Other related party TECNOS International Consultant Co., Ltd. (TECNOS) Other related party Taiwan Pelican Express Co., Ltd. (Taiwan Pelican Express) Other related party Information Technology Total Services Corp. (Information Technology) Other related party Jie Zheng Property Service & Management Co., Ltd. (Jie Zheng) Other related party A-Ok Technical Service Co., Ltd. (A-Ok) Other related party E-Joy Electronics International Co., Ltd. (E-Joy Electronics ) Other related party TECO Tour Travel Service Co., Ltd. (TECO Tour) Other related party Royal Host Taiwan Co., Ltd. (Royal Host) Other related party Tong-An Assets Mangement & Development Co., Ltd. (Tong-An Assets) Other related party Kogyoku Foods Co., Ltd. (Kogyoku Foods) Other related party Le-Li Co., Ltd. (Le-Li) Other related party Xianlaoman Food Services Co., Ltd. (Xianlaoman) Other related party ABC Cooking Studio Taiwan Co., Ltd. (ABC Cooking) Other related party Fujio Food System Taiwan Co., Ltd. (Fujio Food) Other related party Century Development Corporation (Century Development) Other related party TECO Nanotech Co., Ltd. (TECO Nanotech) Other related party Tecom Co., Ltd. (Tecom) Other related party TECO Image Systems Co., Ltd. (TECO Image Systems) Other related party Dong Guang Co., Ltd. (Dong Guang) Other related party Wan Yi Educational Foundation (Wan Yi Foundation) Other related party Kogle Foods Co., Ltd. (Kogle Foods) Other related party Tong An Co., Ltd. (Tong An) Other related party Don Her International Co., Ltd. (Don Her) Other related party Ming Full Ltd. (Ming Full) Other related party Hao Di Foods Co., Ltd. (Hao Di Foods) Other related party An Tai International Co., Ltd. (An Tai) Other related party Foremost International Food & Beverage Co., Ltd. (Foremost Food)Other related party Miss Croissant Food Co., Ltd. (Miss Croissant) Other related party TECO Electro Devices Co., Ltd.( TECO Electro Devices) Other related party Technical Information International Corporation (Technical Information) Other related party Eurasia Food Service Co., Ltd. (Eurasia) Other related party Blue Pacific International Co., Ltd. (Blue Pacific International) Other related party

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(2) Significant related party transactions and balances A. Operating revenue: Year ended Year ended December 31, 2019 December 31, 2018 Sales of goods: Other related parties $ 974 $ 1,126 Year ended Year ended December 31, 2019 December 31, 2018 Sales of services (shown in ‘other income’): Subsidiaries$ 310 $ 338 Other related parties –Royal Host 2,481 3,686 –Miss Croissant 1,864 1,752 $ 4,655 $ 5,776

(a) Service revenue is the revenue from providing consulting services. There is no similar transaction to be compared with for prices, and terms are determined in accordance with mutual agreement. (b) Sales of goods arise from selling commodity coupons and food. Transaction prices and terms for related parties are approximate to those for third parties. B. Purchases: Year ended Year ended December 31, 2019 December 31, 2018 Purchases of goods: Other related parties –Magic–Food Mos $ 811,700 $ 799,225 –Pelican Express 179,052 212,556 –Others 20,166 14,953 $ 1,010,918 $ 1,026,734 Year ended Year ended December 31, 2019 December 31, 2018 Purchases of services: Subsidiaries$ - $ 10 Other related parties –TECNOS 2,742 2,998 –Information Technology 3,280 3,240 –Taiwan Pelican Express 4,882 2,273 –Others155 36 $ 11,059 $ 8,557

(a) No similar transaction can be compared with the above purchases with related parties. Prices and terms are determined in accordance with mutual agreement.

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(b) Services rendered by related parties are payments for freight and services. Prices and terms for freight payment are approximately the same as those with third parties. Furthermore, no similar transaction can be compared with, and prices and terms are in accordance with mutual agreement and recorded as ‘5000 Operating costs’, ‘6100 Sales and marketing expenses’ and ‘6200 General and administrative expenses’. C. Use of assets: Year ended Year ended December 31, 2019 December 31, 2018 Entities with significant influence to the Company - patent royalties $ 49,684 $ 47,635 Subsidiaries - rental expense 837 914 Other related parties - rental expense 48 21,939 $ 50,569 $ 70,488

The above expenses are payments for contracts of expertise and patent cooperation with related parties and rent paid for shops and offices leased from related parties. Royalties are paid based on a certain percentage of monthly operating net income and rent expenses are paid monthly in accordance with mutual agreement. D. Other expenses: Year ended Year ended December 31, 2019 December 31, 2018 Entities with significant influence to the Company $ 410 $ 458 Subsidiaries 359 292 Associates 4 83 Other related parties 75,047 78,422 $ 75,820 $ 79,255 E. Receivables from related parties: December 31, 2019 December 31, 2018 Other accounts receivable: Entities with significant influence to the Company $ 10 $ 2 Subsidiaries 81 38 Associates 150 150 Other related party ─Royal Host 1,582 12,660 ─Kogyoku Foods 349 2,508 ─Others 1,282 1,068 $ 3,454 $ 16,426

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Receivables due from related parties arise from consulting revenue and prepaid rents and do not have collateral nor bear interests. No provision is appropriated for receivables from related parties. F. Payables or related parties: (a) Accounts payable: December 31, 2019 December 31, 2018 Accounts payable to related parties: Other related parties ─Magic-Food Mos $ 67,487 $ 68,345 ─Taiwan Pelican Express 34,406 63,155 ─Others 1,675 4,022 $ 103,568 $ 135,522

Payables to related parties arise purchases and services received and do not have collateral nor bear interests. (b) Other payables: December 31, 2019 December 31, 2018 Other accounts payable to related parties: Entities with significant influence to the Company $ 4,112 $ 4,005 Subsidiaries 100 387 Associates 14 - Other related parties ─A-Ok 1,547 2,616 ─GD Teco Taiwan 2,393 1,832 ─Yuban 4,202 2,961 ─Information Technology 4,646 8,998 ─Jie Zheng 6,004 6,022 ─Tong-An Assets 409 684 ─Others 6,788 7,276 $ 30,215 $ 34,781

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G. Property transactions: (a) Acquisition of property, plant and equipment: Year ended Year ended December 31, 2019 December 31, 2018 Other related party －Jie Zheng $ 14,442 $ 20,516 –Yuban 12,646 4,899 –TECO Electric & Machinery 4,920 286 –Blue Pacific International 10,329 9,384 －Others 6,117 7,665 $ 48,454 $ 42,750

(b) Other payables - related parties - ending balances of acquisition of property, plant and equipment:

December 31, 2019 December 31, 2018 Other related party －Yuban $ 1,863 $ 1,108 －Information Technology 701 3,258 －Jie Zheng 3,751 3,110 －A-Ok 463 - －E-Joy Electronic 1,765 7 －Others 277 301 $ 8,820 $ 7,784

(c) Acquisition of other assets: Year ended Year ended December 31, 2019 December 31, 2018 Accounts Consideration Consideration Other related party Intangible assets –GD Teco Taiwan $ 5,413 $ - –Information Techndogy 5,900 799 –Technical Information - 1,096 $ 11,313 $ 1,895

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Accounts Year ended Year ended Other related party Right-of-use assets December 31, 2019 December 31, 2018 –TECO Electric $ 12,997 $ - & Machinery –Tong-An Assets 32,198 - –Others 11,980 - $ 57,175 $ -

H. Loans to /from related parties: Loans to related parties: (a) Outstanding balance: December 31, 2019 December 31, 2018 $ 21,415 $ - Mos Burger Australia (b) Interest income Year ended Year ended Decmber 31, 2019 Decmber 31, 2018 Mos Burger Australia $ 137 $ - The loans to associate are repayable monthly over 1 year and carry interest at 2.866% per annum for the year ended December 31, 2019. As of December 31, 2019, there was no actual amount drawn down. I. Commitments and contingent liabilities (a) Significant commitments of the technology cooperation contracts signed by the Company with entities who have significant influence to the Company are as follows: －Operating and inventory control methods and managing methods are provided by entities with significant impact to the Company. －Registered trademarks and patents provided by entities with significant impact to the Company are rights the Company uses in Taiwan region. －The Company shall pay expertise and patent cooperation expenses and royalties with a certain percentage of the Company’s monthly operating net income to the related parties.

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(b) As of December 31, 2018, the total rent paid to related parties in the future based on the lease contract terms is as follows: December 31, 2018 Total rental payment Not later than one year $ 18,222 Later than one year but not later than five years 32,278 Later than five years 717 $ 51,217

(3) Key management compensation Year ended Year ended December 31, 2019 December 31, 2018 Salaries and other short-term employee benefits $ 33,760 $ 34,085 Post-employment benefits 385 381 $ 34,145 $ 34,466

8. PLEDGED ASSETS The Company’s assets pledged as collateral are as follows: Book value Pledged asset December 31, 2019 December 31, 2018 Purpose Other current assets: Time deposits$ 300,000 $ 280,000 Performance guarantee for issuance of MOS Card and gift certificates

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS (1) Contingencies The information on contingencies incurred from technology cooperation contracts is provided in Note 7. (2) Commitments A. Operating lease agreements are provided in Notes 6(26) and 7. B. Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows: December 31, 2019 December 31, 2018 Property, plant and equipment$ 48,937 $ 27,419 Intangible assets 1,824 5,678 $ 50,761 $ 33,097

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10. SIGNIFICANT DISASTER LOSS None. 11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE None. 12. OTHERS (1) Capital management The capital structure management is based on the Company’s business scale, industry’s future growth and product development plan to determine the target market share. The most appropriate capital structure is determined based on the capital expenditure requirements, operating capital requirements and operating profit and cash flow that may arise from the products’ competitiveness. (2) Financial instruments A. Financial instruments by category

December 31, 2019 December 31, 2018 Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss $ 139,654 $ 139,136 Financial assets at fair value through other comprehensive income designation of equity instrument $ 100 $ - Financial assets at amortised cost Cash and cash equivalents$ 1,726,172 $ 1,731,954 Accounts receivable 86,503 97,992 Other receivables 12,443 19,311 Guarantee deposits paid 101,600 99,076 Other financial assets 300,000 280,000 $ 2,226,718 $ 2,228,333

December 31, 2019 December 31, 2018 Financial liabilities Financial liabilities at amortised cost Notes payable$ 1,026 $ 640 Accounts payable 251,414 326,646 Other payables 481,356 487,414 Lease liability 1,589,936 - $ 2,323,732 $ 814,700 B. Financial risk management policies (a) The Company’s activities expose it to a variety of financial risks: market risk (including

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foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance. (b) Risk management is carried out by a treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written policies for overall risk management, as well as written policies covering specific areas and matters, such as credit risk and investment of excess liquidty. C. Significant financial risks and degrees of financial risks (a) Market risk Foreign exchange risk i. The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the AUD and RMB. Foreign exchange risk arises recognised assets and liabilities. ii. The Company’s businesses involve some non-functional currency operations (the Company’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: December 31, 2019 Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,722 4.31$ 33,244 AUD:NTD 1,017 21.01 21,358 USD:NTD 1,593 29.98 47,760 HKD:NTD 652 3.85 2,511 Non-monetary items USD:NTD 849 29.98 25,462 AUD:NTD 852 21.01 17,903

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December 31, 2018 Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD$ 7,938 4.47$ 35,501 AUD:NTD 3 21.67 66 USD:NTD 1,249 30.72 38,351 Non-monetary items USD:NTD 543 30.72 16,681 AUD:NTD 495 21.67 10,726 iii. Please refer to the following table for the details of unrealised exchange gain (loss) arising from significant foreign exchange variation on the monetary items held by the Company: Year ended December 31, 2019 Unrealised exchange gain (loss) Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD $ 7,722 4.91 ($ 4,633) USD:NTD 1,593 30.16 ( 285) AUD:NTD 1,017 20.96 41 HKD:NTD 652 3.93 ( 493) Year ended December 31, 2018 Unrealised exchange gain (loss) Foreign currency amount Book value (In thousands) Exchange rate (NTD) Financial assets Monetary items RMB:NTD $ 7,938 4.91 ($ 3,465) USD:NTD 1,249 30.04 825 AUD:NTD 3 25.00 ( 9) iv. Analysis of foreign currency market risk arising from significant foreign exchange variation:

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Year ended December 31, 2019 Sensitivity analysis Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items RMB:NTD 1%$ 332 $ - AUD:NTD 1% 214 - USD:NTD 1% 478 - HKD:NTD 1% 25 - Year ended December 31, 2018 Sensitivity analysis Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items RMB:NTD 1%$ 355 $ - AUD:NTD 1% 1 - USD:NTD 1% 384 - Price risk i. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. ii. The Company’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. 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 1% with all other variables held constant, post-tax profit for the years ended December 31, 2019 and 2018 would have increased/decreased by $1,397 and $1,391, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $1 and $0, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income. Cash flow and fair value interest rate risk None.

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(b) Credit risk i. Credit risk refers to the risk of financial loss to the Company 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. ii. The Company manages their credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing 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 utilisation of credit limits is regularly monitored. iii. The Company adopts following assumptions 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 Company classifies customers’ accounts receivable in accordance with credit risk on trade. The Company applies the simplified approach using provision matrix to estimate expected credit loss under the provision matrix basis. v. The Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable.The Company’s estimated default possibilitiy of accounts receivable that were past due or were not past due were not material to the Company on December 31, 2019 and 2018. vi. Accounts receivable that the Company applies the simplified approach to provide loss allowance are not significant, therefore, no impairment loss was recognized for the years ended December 31, 2019 and 2018. (c) Liquidity risk i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs. ii. Company treasury invests according to cash flow forecasts surplus cash in interest bearing demand deposits, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. As at December 31, 2019 and 2018, the Company held monetary position of $1,694,591 and $1,664,404, respectively, that are

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expected to readily generate cash inflows for managing liquidity risk. iii. Because the Company’s working capital is sufficient, therefore, the Company does not sign any borrowing agreement with financial institutions. As of December 31, 2019 and 2018, the Company had no undrawn borrowing facility. iv. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity grouping based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Non-derivative financial liabilities:

Between 3 Less than 3 months Between 1 Between 2 Cash flow Carrying December 31, 2019 months and 1 year and 2 years and 5 years Over 5 years of contract amount Notes payable $ 1,026 $ - $ - $ - $ - $ 1,026 $ 1,026 Accounts payable 251,239 175 - - - 251,414 251,414 Other payables 378,030 103,326 - - - 481,356 481,356 Lease liabilities 122,703 335,636 355,744 554,781 271,591 1,640,455 1,589,936

Between 3 Less than 3 months Between 1 Cash flow Carrying December 31, 2018 months and 1 year and 2 years of contract amount Notes payable $ 640 $ - $ - $ 640 $ 640 Accounts payable 326,646 - - 326,646 326,646 Other payables 379,025 108,389 - 487,414 487,414 The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different. (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 volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks and beneficiary certificates 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. Level 3:Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market is included in Level 3. B. The carrying amounts of the Company’s financial instruments not measured at fair value by level (including cash and cash equivalents, accounts receivable, other receivables, notes

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payable, accounts payables, other payable and lease liabilities) are approximate to their fair values. C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows: (a) The related information of natures of the assets and liabilities is as follows:

December 31, 2019 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities $ 139,654 $ - $ - $ 139,654 Financial assets at fair value through other comprehensive $ - $ - $ 100 $ 100 income Equity securities

December 31, 2018 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss $ 139,136 $ - $ - $ 139,136 Equity securities (b) The methods and assumptions the Company used to measure fair value are as follows: i. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: Listed shares Open-end fund Market quoted price Closing price Net asset value ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the parent company only balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters). iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In

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accordance with the Company’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions. iv. The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company’s credit quality. D. For the years ended December 31, 2019 and 2018, there was no transfer between Level 1 and Level 2. E. The following chart is the movement of Level 3 for the year ended December 31, 2019: 2019 2018 At January 1$ - $ - Acquired in the year 100 - At December 31 $ 100 $ - F. For the years ended December 31, 2019 and 2018, the level 3 financial instruments held by the Company had no change in fair value. G. Accounting department is in charge of valuation procedures for fair value measurements being categorized 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. H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

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Fair value at Significant Range Relationship of December Valuation unobservable (weighted inputs to fair 31, 2019 technique input average) value Non-derivative equity instrument: Unlisted shares$ 100 Market Price to 100% The higher the comparable book ratio net asset value, companies multiple the higher the fair value

Fair value at Significant Range Relationship of December Valuation unobservable (weighted inputs to fair 31, 2018 technique input average) value Non-derivative equity instrument: Unlisted shares$ - Market Price to 1.36%~ The higher the comparable book ratio 1.49% net asset value, companies multiple the higher the fair value Discount for 13.24% The higher the lack of discount for lack marketability of marketability, the lower the fair value I. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed: December 31, 2018 Recognised in profit or Recognised in other loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity The discount instrument for lack of ± 5% $ - $ - $ - $ - marketability

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13. SUPPLEMENTARY DISCLOSURES (1) Significant transactions information A. Loans to others: Please refer to table 1. B. Provision of endorsements and guarantees to others: None. C. Holding of marketable securities at the end of the period: Please refer to table 2. 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: Please refer to table 3. 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: None. J. Significant inter-company transactions during the reporting periods: Not applicable because there is no significant transaction between the Company and subsidiaries or among subsidiaries. (2) Information on investees Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4. (3) Information on investments in Mainland China A. Basic information: Please refer to table 5. B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: None. 14. SEGMENT INFORMATION Not applicable.

~318~ An-Shin Food Services Co., Ltd. Loans to others Year ended December 31, 2019 Table 1 Expressed in thousands of NTD (Except as otherwise indicated)

Maximum Limit on outstanding balance Actual Amount of loans Collateral General Is a during the year Balance at amount transactions Allowance granted to Ceiling on No. ledger related ended December December drawn Interest Nature of with the Reason for short- for doubtful a single total loans （Note 1） Creditor Borrower account party 31, 2019 31, 2019 down rate loan borrower term financing accounts Item Value party granted Footnote 0 An-Shin MOS Other Y $ 21,415 21,415$ -$ 2.866% Short-term -$ Operational -$ Promissory 21,415$ 54,800$ 182,668$ Note 2 Food Burger receivables - financing needs notes Services Australia related Co., Ltd. Pty Ltd. parties -319-

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows: (1)The Company is ‘0’. (2)The subsidiaries are numbered in order starting from ‘1’. Note2: In accordance with the Company’s policy, limit on total loans shall not exceed 10% of the Company’s net assets based on the latest financial statements (December 31, 2019), and limit on loans to a single party shall not exceed 3% of the Company’s net assets based on the latest financial statements (December 31, 2019).

Table 1 Page 1 An-Shin Food Services Co., Ltd. Holding of marketable securities at the end of the period Year ended December 31, 2019 Table 2 Expressed in thousands of NTD (Except as otherwise indicated)

As of December 31, 2019

Number of shares Relationship with the (thousand shares Securities held by Marketable securities securities issuer General ledger account /thousand units) Book value Ownership Fair value Footnote An-Shin Food Services Co., Ltd. Stock 1 None Financial assets at fair value through profit or 65 $ 6,158 - $ 96.95 None loss - current 〃 Stock 2 Other related party 〃 250 6,572 - 26.20 〃 〃 Stock 3 None 〃 20 2,387 - 125.50 〃 〃 Stock 4 〃〃 29 2,732 - 90.80 〃 〃 Stock 5 〃〃 10 3,053 - 302.00 〃 〃 Stock 6 〃〃 15 1,776 - 115.00 〃 〃 Stock 7 〃〃 43 14,108 - 331.00 〃 〃 Stock 8 〃〃 100 2,853 - 28.97 〃 〃 Stock 9 〃〃 13 3,606 - 281.00 〃 〃 Stock 10 〃〃 47 1,248 - 27.90 〃

-320- 〃 Stock 11 〃〃 22 1,060 - 52.00 〃 〃 Stock 12 〃〃 12 1,794 - 145.00 〃 〃 Stock 13 〃〃 3 543 - 169.50 〃 〃 Stock 14 〃〃 60 3,820 - 64.30 〃 〃 Stock 15 〃〃 3 734 - 227.00 〃 〃 Stock 16 〃〃 25 2,795 - 112.00 〃 〃 Stock 17 〃〃 - 2 - - 〃 〃 Stock 18 〃〃 190 10,146 - 53.90 〃 〃 Stock 19 〃〃 4 1,759 - 443.50 〃 〃 Stock 20 〃〃 12 2,627 - 219.00 〃 〃 Stock 21 〃〃 30 6,626 - 220.00 〃

Table 2 Page 2 As of December 31, 2019

Number of shares Relationship with the (thousand shares Securities held by Marketable securities securities issuer General ledger account /thousand units) Book value Ownership Fair value Footnote An-Shin Food Services Co., Ltd. None Financial assets at fair value through profit or 716 $ 10,343 - $ 14.45 None Fund 1 loss - current 〃 Fund 2 〃〃 60 1,278 - 21.53 〃 〃 Fund 3 〃〃 24 1,041 - 43.85 〃 〃 Fund 4 〃〃 926 15,149 - 16.38 〃 〃 Fund 5 〃〃 555 7,397 - 13.28 〃 〃 Fund 6 〃〃 742 10,113 - 13.66 〃 〃 Fund 7 〃〃 482 4,800 - 9.87 〃 〃 Fund 8 〃〃 14 4,936 - 11.83 〃 〃 Fund 9 〃〃 1 3,294 - 108.07 〃 〃 Fund 10 〃〃 16 49,044 - 10.09 〃 〃 Stock 22 Common director Financial assets at fair value through other 1 100 - - 〃 comprehensive income-non - current $ 139,754 -321-

Table 2 Page 3 An-Shin Food Services Co., Ltd. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more Year ended December 31, 2019 Table 3 Expressed in thousands of NTD (Except as otherwise indicated)

Differences in transaction terms compared to third party Transaction transactions Notes/accounts receivable (payable) Relationship with the Purchases Percentage of Percentage of total notes/accounts Purchaser/seller Counterparty counterparty (sales) Amount total purchases (sales) Credit term Unit price Credit term Balance receivable (payable) Footnote An-Shin Food Magic-Food Mos Other related party Purchases 811,700$ 42% Note Not applicable Not applicable 67,487$ 27% None Services Co., Ltd. Food Industry Co., Ltd. An-Shin Food Services Taiwan Pelican Express Other related party Purchases 179,052 9% Note Not applicable Not applicable 34,406 14% None Co., Ltd. Co., Ltd.

Note: Credit terms are in accordance with mutual agreement. -322-

Table 3 Page 4 An-Shin Food Services Co., Ltd. Information on investees (not including investees in Mainland China) Year ended December 31, 2019 Table 4 Expressed in thousands of NTD (Except as otherwise indicated)

Initial investment amount Shares held as at December 31, 2019 Net profit (loss) of the Investment income (loss) Balance at Balance at investee for the year recognised by the Company December 31, December 31, Number of ended December 31, for the year ended Investor Investee Location Main business activities 2019 2018 shares Ownership Book value 2019 December 31, 2019 Footnote An-Shin Food Services An-Shin Food Services Singapore Foreign investment$ 255,249 $ 230,381 8,414 41.30% 25,462$ ($ 24,957) ($ 10,240) The Company's Co., Ltd. (Singapore) Pte. Ltd. subsidiary 〃 Mos Burger Australia Australia Restaurant management: 44,908 82,880 1,979 42.14% 17,903 ( 57,458) ( 18,558) The Company's Pty. Ltd. restaurant services investee accounted for using equity method -323-

Table 4 Page 5 An-Shin Food Services Co., Ltd. Information on investments in Mainland China Year ended December 31, 2019 Table 5 Expressed in thousands of NTD (Except as otherwise indicated)

Amount remitted from Taiwan to Mainland China/ Accumulated Accumulated Amount remitted back amount of Book value of amount of to Taiwan for the year ended Accumulated amount remittance from Net income Ownership Investment income investments in investment December 31, 2019 of remittance from Taiwan to of investee held by the (loss) recognised by Mainland income remitted Taiwan to Mainland Remitted to Mainland China as of Company the Company for the China as of back to Taiwan as Investee in Main business Investment China as of Mainland Remitted back as of December December (direct or year ended December December 31, of December 31, Mainland China activities Paid-in capital method January 1, 2019 China to Taiwan 31, 2019 31, 2019 indirect) 31, 2019 2019 2019 Footnote Xia Men An-Shin Restaurant $ 600,741 Note 1$ 230,381 $ 24,868 $ - $ 255,249 ($ 24,924) 41.30%($ 10,228) $ 56,737 $ - Notes 3 and Food Management management: 5 Co., Ltd. restaurant services (limited to branches) Guangdong Mos Restaurant 353,245 Note 2 14,837 - 2,562 - ( 18,889) - - - - Notes 5 and -324- Burger Management management: 6 Co., Ltd. restaurant services (limited to branches)

Investment amount approved by Ceiling on investments in Accumulated amount of remittance the Investment Commission of the Mainland China imposed by from Taiwan to Mainland China as Ministry of Economic Affairs the Investment Commission of Company name of December 31, 2019 (MOEA) MOEA Xia Men An-Shin $ 255,249 $ 225,249 $ 1,117,722 Food Management Co., Ltd.

Note 1: Through investing in an existing company in the third area, which then invested in the investee in Mainland China : Invest through An-Shin Food Service (Singapore) Pte. Ltd. Note 2: Through investing in an existing company in the third area, which then invested in the investee in Mainland China : Invest through H.K. Mos Burger Investment co., Ltd. Note 3: The financial statements were audited by R.O.C. parent company’s CPA. Note 4: In accordance with ‘Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China’ and ‘Regulations Governing the Permission of Investment or Technical Cooperation in Mainland Area’ amended on August 29, 2008 by Investment Commission of Ministry of Economic Affairs, the limit on accumulated investment amount in Mainland China for investors (not including individuals and small and medium enterprices) is 60% of net assets or consolidated net assets, whichever is higher. Note 5: The amounts in this table are expressed in New Taiwan Dollars. Note 6: The Company sold the investment in the investee in the third quarter of 2019.

Table 5 Page 6

AN-SHIN FOOD SERVICES CO., LTD.

Chairman Lin, Chien-Yuan