CGPC - Interim / Quarterly Report 2019

China General Plastics Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2019 and 2018 and Independent Auditors’ Review Report

勤業眾信聯合會計師事務所 11073 台北市信義區松仁路 100 號 20 樓

Deloitte & Touche 20F, Taipei Nan Shan Plaza No. 100, Songren Rd., Xinyi Dist., Taipei 11073, Taiwan Tel : + 886 (2) 2725 - 9988 Fax: + 886 (2) 4051 - 6888 www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders China General Plastics Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of China General Plastics Corporation and its subsidiaries (collectively referred to as the “Group”) as of March 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of the significant accounting policies (collectively referred to as 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 International Accounting Standard 34 “Interim Financial Reporting”. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As disclosed in Notes 13 and 14 to the consolidated financial statements, the financial statements of some non-significant subsidiaries and investments accounted for using the equity method included in the consolidated financial statements were not reviewed. As of March 31, 2019 and 2018, the combined total assets of these non-significant subsidiaries and investments accounted for using the equity method were NT$1,023,219 thousand and NT$1,059,819 thousand, respectively, collectively representing 8% of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries as of March 31, 2019 and 2018 were NT$41,300 thousand and NT$32,546 thousand, respectively, collectively representing 1% of the consolidated total liabilities; for the three months ended March 31, 2019 and 2018, the amounts of combined comprehensive income (loss) of these non-significant subsidiaries were NT$6,178 thousand and NT$(3,225) thousand, respectively, representing 3% and (1%), respectively, of the consolidated total comprehensive income, and the Group’s share of profit of these investments accounted for using the equity method for the three months ended March 31, 2019 and 2018 were NT$12,957 thousand and NT$3,221 thousand, respectively, representing 7%, and 1%, respectively, of the consolidated total comprehensive income. The additional disclosures of these non-significant subsidiaries and investments accounted for using the equity method were based on financial statements which were not reviewed by auditors.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2019 and 2018, its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2019 and 2018 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting”.

The engagement partners on the reviews resulting in this independent auditors’ review report are Hsiu-Chun Huang and Cheng-Chun Chiu.

Deloitte & Touche Taipei, Taiwan Republic of China

May 9, 2019

Notice to Readers

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

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

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (FVTPL) - current (Note 7) Financial assets at amortized cost - current (Notes 9 and 33) Notes receivable (Note 10) Trade receivables (Notes 10 and 32) Other receivables (Note 10) Other receivables from related parties (Notes 10 and 32) Current tax assets (Note 4) Inventories (Note 11) Prepayments (Notes 3, 16 and 19) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income (FVTOCI) - non-current (Notes 8 and 25) Investments accounted for using the equity method (Notes 3 and 14) Property, plant and equipment (Notes 15, 20, 32 and 33) Right-of-use assets (Notes 3, 4 and 16) Investment properties (Notes 17 and 32) Intangible assets (Note 18) Deferred tax assets (Note 4) Long-term prepayments for leases (Notes 3, 16 and 19) Other non-current assets (Note 33) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 20) Financial liabilities at fair value through profit or loss (FVTPL) - current (Note 7) Notes payable (Note 21) Trade payables (Note 21) Trade payables to related parties (Notes 21 and 32) Other payables (Note 22) Other payables to related parties (Note 32) Current tax liabilities (Note 4) Lease liabilities - current (Notes 3, 4, 16 and 32) Other current liabilities (Notes 23, 26 and 32) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 20, 22 and 33) Deferred tax liabilities (Note 4) Lease liabilities - non-current (Notes 3, 4, 16 and 32) Net defined benefit liabilities - non-current (Note 24) Other non-current liabilities (Note 33) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 3, 8, 14 and 25) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS Total equity TOTAL		March 31, 2019 (Reviewed) Amount % $ 763,955 6 631,074 5 269,003 2 199,270 2 1,440,572 11 104,620 1 48,037 - - - 2,572,845 19 63,552 - 1,251 - 6,094,179 46 118,501 1 264,806 2 5,983,294 45 340,113 3 134,032 1 1,166 - 250,575 2 - - 56,516 - 7,149,003 54 $ 13,243,182 100 $ 50,000 - 1,384 - 91 - 990,562 8 126,596 1 558,889 4 18,692 - 207,200 2 36,215 - 74,350 1 2,063,979 16 700,000 5 593,890 4 207,233 2 672,304 5 3,765 - 2,177,192 16 4,241,171 32 5,067,596 38 8,931 - 512,954 4 408,223 3 2,514,424 19 3,435,601 26 46,975 1 8,559,103 65 442,908 3 9,002,011 68 $ 13,243,182 100		December 31, 2018 (Audited) Amount % $ 934,680 7 1,432,707 11 268,954 2 195,847 2 1,608,142 12 84,601 1 11,165 - - - 1,717,275 13 59,343 - 1,513 - 6,314,227 48 122,640 1 253,998 2 6,009,889 45 - - 135,277 1 2,493 - 261,613 2 95,184 1 28,774 - 6,909,868 52 $ 13,224,095 100 $ - - 1,645 - 288 - 915,009 7 171,860 1 754,730 6 14,263 - 181,491 1 - - 68,412 1 2,107,698 16 1,000,000 8 593,964 4 - - 707,679 5 3,650 - 2,305,293 17 4,412,991 33 5,067,596 39 8,929 - 512,954 4 408,223 3 2,334,921 18 3,256,098 25 42,017 - 8,374,640 64 436,464 3 8,811,104 67 $ 13,224,095 100		March 31, 2018 (Reviewed)
						Amount % $ 833,610 7 1,703,888 13 268,854 2 159,302 1 1,345,321 11 100,617 1 43,245 - 42 - 1,631,589 13 43,323 - 3,033 - 6,132,824 48 104,683 1 301,911 2 5,739,122 45 - - 139,014 1 7,856 - 275,090 2 101,074 1 32,088 - 6,700,838 52 $ 12,833,662 100 $ - - 96 - 91 - 587,199 5 171,962 1 589,775 5 14,552 - 237,083 2 - - 62,720 - 1,663,478 13 1,050,000 8 594,394 4 - - 727,267 6 3,226 - 2,374,887 18 4,038,365 31 4,919,996 38 8,234 - 385,973 3 408,223 3 2,613,184 21 3,407,380 27 23,064 - 8,358,674 65 436,623 4 8,795,297 69 $ 12,833,662 100

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

(With Deloitte & Touche auditors’ review report dated May 9, 2019)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

NET REVENUE (Notes 26 and 32) COST OF REVENUE (Notes 11, 27 and 32) GROSS PROFIT OPERATING EXPENSES (Notes 27 and 32) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 7, 14, 27 and 32) Other income Other gains and losses Interest expense Share of profit of associates accounted for using the equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS INCOME TAX EXPENSE (Notes 4 and 28) NET PROFIT FROM CONTINUING OPERATIONS (Note 27) NET PROFIT (LOSS) FROM DISCONTINUED OPERATIONS (Note 12) NET PROFIT FOR THE PERIOD		For the Three Months	For the Three Months	Ended March 31
		2019 Amount % $ 3,227,707 100 2,779,190 86 448,517 14 182,034 6 69,146 2 13,779 - 264,959 8 183,558 6 14,336 - 20,663 1 (3,271) - 9,878 - 41,606 1 225,164 7 35,305 1 189,859 6 1,109 - 190,968 6		2018
				Amount % $ 4,144,200 100 3,174,086 77 970,114 23 214,438 5 85,301 2 14,067 - 313,806 7 656,308 16 24,057 - (2,706) - (2,704) - 6,986 - 25,633 - 681,941 16 98,161 2 583,780 14 (142) - 583,638 14 (Continued)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 8, 14 and 28) Items that will not be reclassified subsequently to profit or loss: Unrealized loss on investments in equity instruments at FVTOCI Share of other comprehensive income of associates accounted for using the equity method - remeasurement of defined benefit plans Share of other comprehensive income (loss) of associates accounted for using the equity method - unrealized gain (loss) on investments in equity instruments at FVTOCI Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Share of other comprehensive income of associates accounted for using the equity method - exchange differences on translating the financial statements of foreign operations Income tax relating to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the period, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests		For the Three Months	For the Three Months	Ended March 31
		2019 Amount % $ (4,139) - - - 2,458 - - - (1,681) - 7,699 - 496 - (1,540) - 6,655 - 4,974 - $ 195,942 6 $ 184,234 6 6,734 - $ 190,968 6		2018
				Amount % $ (5,073) - 16 - (4,230) - 8,520 - (767) - (4,198) - 396 - (1,180) - (4,982) - (5,749) - $ 577,889 14 $ 541,502 13 42,136 1 $ 583,638 14

(Continued)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (Note 29) From continuing and discontinued operations Basic Diluted From continuing operations Basic Diluted		For the Three Months	For the Three Months	Ended March 31
		2019 Amount % $ 189,192 6 6,750 - $ 195,942 6 $ 0.36 $ 0.36 $ 0.36 $ 0.36		2018
				Amount % $ 535,773 13 42,116 1 $ 577,889 14 $ 1.07 $ 1.07 $ 1.07 $ 1.07
		$		$

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

(With Deloitte & Touche auditors’ review report dated May 9, 2019)

(Concluded)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

				Equity Attributable to Owners of the Company (Notes 3, 8, 14, 25 and 28)	Equity Attributable to Owners of the Company (Notes 3, 8, 14, 25 and 28)	Equity Attributable to Owners of the Company (Notes 3, 8, 14, 25 and 28)
Share Capital Ordinary Shares $ 4,919,996 - 4,919,996 - - - - $ 4,919,996 $ 5,067,596 - 5,067,596 - - - - $ 5,067,596	Capital Surplus		Total $ 8,236 - 8,236 (2 ) - - - $ 8,234 $ 8,929 - 8,929 2 - - - $ 8,931	Retained Earnings	Total $ 2,857,342 - 2,857,342 - 541,502 8,536 550,038 $ 3,407,380 $ 3,256,098 (4,731) 3,251,367 - 184,234 - 184,234 $ 3,435,601	Other Equity	Total $ 20,767 16,562 37,329 - - (14,265) (14,265) $ 23,064 $ 42,017 - 42,017 - - 4,958 4,958 $ 46,975
						Unrealized Exchange Unrealized Gain (Loss) on Differences on Gain (Loss) on Investments in Translating Available-for- Equity Foreign sale Financial Instruments Operations Assets at FVTOCI $ (19,583 ) $ 40,350 $ - - (40,350) 56,912 (19,583 ) - 56,912 - - - - - - (4,982) - (9,283) (4,982) - (9,283) $ (24,565) $ - $ 47,629 $ (15,825 ) $ - $ 57,842 - - - (15,825 ) - 57,842 - - - - - - 6,655 - (1,697) 6,655 - (1,697) $ (9,170) $ - $ 56,145
	Unpaid Dividends $ 7,929 - 7,929 (2 ) - - - $ 7,927 $ 8,622 - 8,622 (3 ) - - - $ 8,619	Others $ 307 - 307 - - - - $ 307 $ 307 - 307 5 - - - $ 312		Unappropriated Legal Reserve Special Reserve Earnings $ 385,973 $ 408,223 $ 2,063,146 - - - 385,973 408,223 2,063,146 - - - - - 541,502 - - 8,536 - - 550,038 $ 385,973 $ 408,223 $ 2,613,184 $ 512,954 $ 408,223 $ 2,334,921 - - (4,731) 512,954 408,223 2,330,190 - - - - - 184,234 - - - - - 184,234 $ 512,954 $ 408,223 $ 2,514,424

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

(With Deloitte & Touche auditors’ review report dated May 9, 2019)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax from continuing operations Income (loss) before income tax from discontinued operations Income before income tax Adjustments for: Depreciation expenses Amortization expenses Net gain on fair value changes of financial assets at FVTPL Interest expense Interest income Share of profit of associates Gain on disposal of property, plant and equipment Write-down (reversal of write-down) of inventories Amortization of long-term prepayments for leases Changes in operating assets and liabilities Financial assets mandatorily classified as at FVTPL Notes receivable Trade receivables Other receivables Other receivables from related parties Inventories Prepayments Other current assets Financial liabilities held for trading Notes payable Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Payments for property, plant and equipment	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 225,164 1,109 226,273 147,525 6,899 (18,392) 3,271 (2,401) (9,878) (741) (119) - 823,856 (3,423) 167,931 (20,510) (36,858) (854,805) (7,598) 262 (4,092) (197) 75,536 (45,264) (148,017) 4,425 5,938 (35,375) 274,246 2,905 (3,482) (172) 273,497 (269,003) 268,954 (189,469)	2018 $ 681,941 (142) 681,799 121,162 6,387 (17,589) 2,704 (1,517) (6,986) (427) 1,598 873 (285,092) 20,627 150,852 (27,684) (37,866) 219,256 10,275 (2,539) (6,914) (92) (33,160) (60,049) (78,891) (8,009) (23,057) (312,608) 313,053 1,673 (2,663) (87) 311,976 (243,854) 243,805 (139,030) (Continued)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refunds of guarantee deposits received Repayment of the principal portion of lease liabilities Increase (decrease) in other non-current liabilities Dividends paid to owners of the Company Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 1,358 (13,052) 12,921 (188,291) 50,000 (300,000) 918 (800) (8,391) (3) (62) (258,338) 2,407 (170,725) 934,680 $ 763,955	2018 $ 467 (2) 352 (138,262) - - 1,638 (804) - 2 (88) 748 (3,997) 170,465 663,145 $ 833,610

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

(With Deloitte & Touche auditors’ review report dated May 9, 2019)

(Concluded)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

China General Plastics Corporation (the “Company”) was incorporated and began operations on April 29, 1964. The Company mainly engages in the production and sale of PVC films, PVC leather, PVC pipes, PVC compounds, PVC resins, construction products, chlor-alkali products and other related products.

The Company’s ordinary shares have been listed on the Taiwan Stock Exchange since March 1973.

The consolidated financial statements of the Company and its subsidiaries, collectively referred to as the “Group”, are presented in the Company’s functional currency, the New Taiwan dollar (NT$).

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were proposed to the Company’s board of directors on May 9, 2019.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the FSC

Except for the following, whenever applied, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC would not have any material impact on the Group’s accounting policies:

 IFRS 16 “Leases”

IFRS 16 provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessee and lessor. It supersedes IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, and a number of related interpretations. Refer to Note 4 for information relating to the relevant accounting policies.

Definition of a lease

The Group elects to apply the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 are not reassessed and are accounted for in accordance with the transitional provisions under IFRS 16.

10 -

The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases on the consolidated balance sheets except for those whose payments under low-value asset and short-term leases are recognized as expenses on a straight-line basis. On the consolidated statements of comprehensive income, the Group presents the depreciation expense charged on right-of-use assets separately from the interest expense accrued on lease liabilities; interest is computed using the effective interest method. On the consolidated statements of cash flows, cash payments for the principal portion of lease liabilities are classified within financing activities; cash payments for the interest portion are classified within operating activities. Prior to the application of IFRS 16, payments under operating lease contracts, were recognized as expenses on a straight-line basis. Prepaid lease payments for land use rights in China were recognized as prepayments for leases. Cash flows for operating leases were classified within operating activities on the consolidated statements of cash flows.

The Group elects to apply IFRS 16 retrospectively with the cumulative effect of the initial application of this standard recognized in retained earnings on January 1, 2019. Comparative information is not restated.

Lease liabilities were recognized on January 1, 2019 for leases previously classified as operating leases under IAS 17. Lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. The Group applies IAS 36 to all right-of-use assets.

The Group also applies the following practical expedients:

1) The Group applies a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities.
2) The Group accounts for those leases for which the lease term ends on or before December 31, 2019 as short-term leases.
3) The Group excludes initial direct costs from the measurement of right-of-use assets on January 1, 2019.
4) The Group uses hindsight, such as in determining lease terms, to measure lease liabilities.

For leases previously classified as finance leases under IAS 17, the carrying amounts of right-of-use assets and lease liabilities on January 1, 2019 are determined as at the carrying amounts of the respective leased assets and finance lease payables on December 31, 2018.

The weighted average lessee’s incremental borrowing rate applied to lease liabilities recognized on January 1, 2019 is 1.0392%. The difference between the (i) lease liabilities recognized and (ii) operating lease commitments disclosed under IAS 17 on December 31, 2018 is explained as follows:

The future minimum lease payments of non-cancellable operating lease commitments on December 31, 2018 Less: Recognition exemption for short-term leases Less: Recognition exemption for leases of low-value assets Undiscounted amounts on January 1, 2019 Lease liabilities recognized on January 1, 2019	$ 275,330 (9,539) (1,495) $ 264,296 $ 251,779

11 -

The Group as lessor

The Group does not make any adjustments for leases in which it is a lessor, and it accounts for those leases with the application of IFRS 16 starting from January 1, 2019.

The impact on assets, liabilities and equity as of January 1, 2019 from the initial application of IFRS 16 is set out as follows:

			Adjustments	Adjustments
	As Originally		Arising from
		Stated on		Initial	Restated on
	January 1, 2019		Application		January 1, 2019
Prepayments	$	3,389	$	(3,389)	$	-
Long-term prepayments for leases		95,184		(95,184)		-
Investments accounted for using the
equity method		253,998		(2,029)		251,969
Right-of-use assets		-		347,344		347,344
Total effect on assets	$	352,571	$	246,742	$	599,313
Lease liabilities - current	$	-	$	36,161	$	36,161
Lease liabilities - non-current		-		215,618		215,618
Total effect on liabilities	$	-	$	251,779	$	251,779
Retained earnings	$	3,256,098	$	(4,731)	$	3,251,367
Non-controlling interests		436,464		(306)		436,158
Total effect on equity	$	3,692,562	$	(5,037)	$	3,687,525

b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs Amendments to IFRS 3 “Definition of a Business” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IAS 1 and IAS 8 “Definition of Material”	Effective Date Announced by IASB (Note 1)
	January 1, 2020 (Note 2) To be determined by IASB January 1, 2021 January 1, 2020 (Note 3)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.
Note 2: The Group shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period.
Note 3: The Group shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s consolidated financial position and financial performance and will disclose the relevant impact when the assessment is completed.

12 -

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e. its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 13, Table 6 and Table 7 for detailed information on subsidiaries (including percentages of ownership and main businesses).

13 -
d. Other significant accounting policies

Except for the accounting policies of leases, the accounting policies applied in these interim consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2018, which can be referenced in the consolidated financial statements for the year ended December 31, 2018.

1) Leases

2019

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

a) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Under finance leases, lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

b) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

14 -

2018

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

a) The Group as lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.

b) The Group as lessee

Operating lease payments are recognized as expenses on a straight-line basis over the lease term.

2) Taxation

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Except for the following paragraph, the same critical accounting judgments and key sources of estimation uncertainty as were applied in the preparation of the consolidated financial statements for the year ended December 31, 2018 have been followed in these consolidated financial statements.

Lessees’ Incremental Borrowing Rates

In determining a lessee’s incremental borrowing rate used in discounting lease payments, a risk-free rate for the same currency and relevant duration is selected as a reference rate, and the lessee’s credit spread adjustments and lease specific adjustments (such as asset type, secured position, etc.) are also taken into account.

6. CASH AND CASH EQUIVALENTS

Cash on hand and petty cash Checking accounts and demand deposits Cash equivalents Time deposits Reverse repurchase agreements collateralized by bonds	March 31, 2019 December 31, 2018 $ 455 $ 484 250,292 207,907 483,258 518,469 29,950 207,820 $ 763,955 $ 934,680	March 31, 2018 $ 460 229,559 463,643 139,948 $ 833,610

15 -

The market rate intervals of cash in banks and reverse repurchase agreements collateralized by bonds as of the end of the reporting period were as follows:

	March 31,	March 31,		December 31,	December 31,	March 31,	March 31,
		2019			2018		2018
Cash in banks	0.001%-2.70%			0.001%-3.00%		0.001%-2.22%
Reverse repurchase agreements collateralized by
bonds		0.53%		0.53%-0.55%			0.38%
FINANCIAL INSTRUMENTS AT FVTPL
	March 31,			December 31,		March 31,
		2019			2018		2018
Financial assets mandatorily classified as at
FVTPL
Derivative financial assets (not under hedge
accounting)
Foreign exchange forward contracts	$	403		$	839	$	1,856
Non-derivative financial assets
Open-end fund beneficiary certificates		407,196			1,222,661		1,501,002
Closed-end fund beneficiary certificates		223,475			209,207		201,030
Overseas unlisted equity investments			-		-			-
	$	631,074		$	1,432,707	$	1,703,888
Financial liabilities held for trading
Derivative financial liabilities (not under hedge
accounting)
Foreign exchange forward contracts	$	1,384		$	1,645	$	96

7. FINANCIAL INSTRUMENTS AT FVTPL

As of the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

			Contract Amount
	Currency	Maturity Date	(In Thousands)
March 31, 2019
Buy	NTD/USD	2019.04.16-2019.04.26	NTD238,956/USD7,770
Sell	USD/NTD	2019.04.02-2019.06.06	USD19,260/NTD591,593
December 31, 2018
Buy	NTD/USD	2019.01.07-2019.03.04	NTD521,446/USD16,965
Sell	USD/NTD	2019.01.03-2019.03.21	USD19,860/NTD609,577
March 31, 2018
Buy	NTD/USD	2018.05.17	NTD68,532/USD2,360
Sell	USD/NTD	2018.04.02-2018.05.30	USD18,080/NTD527,380

16 -

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. These contracts did not meet the criteria for hedge accounting. Therefore, the Group did not apply a hedge accounting treatment for these contracts.

8. FINANCIAL ASSETS AT FVTOCI

Investments in Equity Instruments at FVTOCI

Non-current Domestic equity investments Listed ordinary shares Asia Polymer Corporation Unlisted ordinary shares KHL IB Venture Capital Co., Ltd.	March 31, 2019 December 31, 2018 $ 1,715 $ 1,593 116,786 121,047 $ 118,501 $ 122,640	March 31, 2018 $ 2,035 102,648 $ 104,683

In order to adjust its capital structure, KHL returned part of its capital to shareholders pursuant to the resolution made in the shareholders meeting in June 2018. The return was made by reducing 8.2% of the capital, in aggregation of 12,536 thousand shares (proportionately reducing 82 shares per 1,000 shares) and refunding $820 per 1,000 shares to shareholders. The capital reduction was officially registered on August 16, 2018, and the Company received the capital refund of $7,462 thousand in August 2018.

These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as it believes that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Pledged time deposits	March 31, 2019 December 31, 2018 $ 269,003 $ 268,954	March 31, 2018 $ 268,854

As of March 31, 2019, December 31, 2018 and March 31, 2018, the interest rates for pledged time deposits ranged from 0.090% to 1.015%.

Refer to Note 33 for information related to financial assets at amortized cost pledged as security.

17 -

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivable Notes receivable - operating Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Tax refund receivables Interest receivables Others Less: Allowance for impairment loss Other receivables from related parties (Note 32)	March 31, 2019 December 31, 2018 $ 199,270 $ 195,847 $ 1,454,276 $ 1,621,877 (13,704) (13,735) $ 1,440,572 $ 1,608,142 $ 96,526 $ 74,916 435 939 7,919 9,000 (260) (254) $ 104,620 $ 84,601 $ 48,037 $ 11,165	March 31, 2018 $ 159,302 $ 1,357,501 (12,180) $ 1,345,321 $ 92,962 405 7,513 (263) $ 100,617 $ 43,245

a. Trade receivables

The Group’s credit period for the sale of goods ranges from 10 days to 60 days. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Before accepting a new customer, the Group surveys the customers’ credit history and measures the potential customer’s credit quality to set a credit limit. A customer’s credit limit and rating are reviewed annually. In addition, the Group reviews the recoverable amount of trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group applies the simplified approach to the recognition of allowances for expected credit losses during the reporting as prescribed by IFRS 9, which permits the use of a lifetime expected losses allowance for all trade receivables. The expected credit losses on trade receivables are estimated using an allowance matrix by reference to past default experience with the respective debtors and an analysis of the debtors’ current financial positions, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date.

The Group writes off a trade receivable when there is information indicating that the debtor is experiencing severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables which are due.

18 -

The following table details the loss allowance of trade receivable based on the Group’s allowance matrix.

March 31, 2019

Credit Rating A Credit Rating B Credit Rating C Gross carrying amount $ 191,404 $ 394,341 $ 205,058 Loss allowance (lifetime ECLs) - (3,787) (5,191) Amortized cost $ 191,404 $ 390,554 $ 199,867 December 31, 2018 Credit Rating A Credit Rating B Credit Rating C Gross carrying amount $ 199,761 $ 417,265 $ 221,341 Loss allowance (lifetime ECLs) - (3,888) (5,571) Amortized cost $ 191,761 $ 413,377 $ 215,770 March 31, 2018 Credit Rating A Credit Rating B Credit Rating C Gross carrying amount $ 177,811 $ 545,489 $ 92,369 Loss allowance (lifetime ECLs) - (4,919) (2,096) Amortized cost $ 177,811 $ 540,570 $ 90,273	Others $ 663,473 (4,726) $ 658,747 Others $ 783,510 (4,276) $ 779,234 Others $ 541,832 (5,165) $ 536,667	Total $ 1,454,276 (13,704) $ 1,440,572 Total $ 1,621,877 (13,735) $ 1,608,142 Total $ 1,357,501 (12,180) $ 1,345,321

The aging of notes receivable and trade receivables was as follows:

Not past due Less than and including 60 days Over 60 days	March 31, 2019 December 31, 2018 March 31, 2018 $ 1,606,259 $ 1,750,493 $ 1,458,965 42,845 64,638 53,950 4,442 2,593 3,888 $ 1,653,546 $ 1,817,724 $ 1,516,803

The above aging schedule was based on the number of days past due from the end of credit term.

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Less: Amounts written off Foreign exchange gains and losses Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 13,735 (44) 13 $ 13,704	2018 $ 12,319 (106) (33) $ 12,180

19 -

b. Other receivables

As of March 31, 2019, December 31, 2018 and March 31, 2018, the Group assessed the impairment loss of other receivables using expected credit losses.

11. INVENTORIES

Finished goods Work in progress Raw materials	March 31, 2019 December 31, 2018 $ 1,706,913 $ 1,131,291 42,122 45,025 823,810 540,959 $ 2,572,845 $ 1,717,275	March 31, 2018 $ 1,010,980 42,171 578,438 $ 1,631,589

The cost of inventories recognized as cost of goods sold for the three months ended March 31, 2019 and 2018 was $2,779,190 thousand and $3,174,086 thousand, respectively.

The cost of goods sold included reversals of inventory write-down of $119 thousand and inventory writedown of $1,598 thousand for the three months ended March 31, 2019 and 2018, respectively. Previous write-downs were reversed as a result of increased selling prices in certain markets.

12. DISCONTINUED OPERATIONS

On October 24, 2011, the Company’s board of directors approved to dispose of Continental General Plastics (Zhong Shan) Co., Ltd. and CGPC Consumer Products Corporation. The details of profit (loss) from discontinued operations and the related cash flows information were as follows:

The operating performance of the discontinued operations included in the consolidated comprehensive income statement were as follows:

Administrative expenses Loss from operations Non-operating income Net profit (loss) from discontinued operations	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ (6,562) (6,562) 7,671 $ 1,109	2018 $ (9,557) (9,557) 9,415 $ (142)

For the three months ended March 31, 2019 and 2018, the cash flows from the discontinued operations were as follows:

Net cash generated from (used in) operating activities Effect of exchange rate changes Net cash inflow	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 8,138 1,817 $ 9,955	2018 $ (722) 1,016 $ 294

20 -

13. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor
Subsidiary
Nature of Activities
The Company CGPC Polymer Corporation (“CGPCPOL”)
Manufacturing and marketing of PVC resins
Taiwan VCM Corporation (“TVCM”)
Manufacturing and marketing of VCM
CGPC (BVI) Holding Co., Ltd. (“CGPC
(BVI)”)
Reinvestment
CGPC America Corporation (“CGPC
America”)
Marketing of PVC film and leather products
Krystal Star International Corporation
(“Krystal Star”)
Marketing of PVC film and consumer
products
CGPC (BVI)
Continental General Plastics (Zhong Shan)
Co., Ltd. (“CGPC (ZS)”)
Manufacturing and marketing of PVC film
and consumer products
CGPC Consumer Products Corporation
(“CGPC (CP)”)
Manufacturing and marketing of PVC
consumer products

Percentage of Ownership (%)
March 31,
2019
December 31,
2017
March 31,
2018
Note
100.00
100.00
100.00
Subsidiary, a.
87.22
87.22
87.22
Subsidiary, b.
100.00
100.00
100.00
Subsidiary
100.00
100.00
100.00
Subsidiary
100.00
100.00
100.00
Subsidiary
100.00
100.00
100.00
Subsidiary of
CGPC (BVI), c.
100.00
100.00
100.00
Subsidiary of
CGPC (BVI), c.

a. On May 23, 2018, the board of directors of CGPCPOL, on behalf of the shareholders, resolved to increase its capital by declaring a share dividend of $223,810 thousand, representing 22,381 thousand shares, respectively. The record date of the capital increase was July 6, 2018.
b. On April 23, 2018, the TVCM shareholders in their meeting passed a resolution to increase TVCM’s capital by declaring a share dividend of $112,476 thousand, representing 11,248 thousand shares. The record date of the capital increase was July 6, 2018.
c. In October 2011, the board of directors of the Company resolved to dissolve CGPC (ZS) and CGPC (CP). As of March 31, 2019, the dissolution procedures have not yet been completed.

Except for the financial statements of TVCM and CGPCPOL, the financial statements of other non-significant subsidiaries included in the consolidated financial statements were not reviewed by the auditors.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

a. Associates that are not individually material

Listed companies Acme Electronics Corporation (“ACME”) Unlisted companies China General Terminal & Distribution Corporation (“CGTD”) Thintec Materials Corporation (“TMC”)	March 31, 2019 December 31, 2018 $ 24,171 $ 24,296 239,187 228,250 1,448 1,452 $ 264,806 $ 253,998	March 31, 2018 $ 23,677 275,927 2,307 $ 301,911

21 -

b. Aggregate information of associates that are not individually material

The Group’s share of: Gain from continuing operations Other comprehensive income (loss) Total comprehensive income for the period	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 9,878 2,954 $ 12,832	2018 $ 6,986 (3,834) $ 3,152

At the end of the reporting periods, the percentage of ownership and voting rights held by the Group in the associates were as follows:

	March 31,	December 31,	March 31,
Name of Associates	2019	2018	2018
ACME	1.74%	1.74%	1.74%
CGTD	33.33%	33.33%	33.33%
TMC	10.00%	10.00%	10.00%

The Group in conjunction with its affiliates jointly held more than 20% of each of the shareholdings of ACME and TMC and had significant influence over each entity. Therefore, the Group adopted the equity method to evaluate the above investments.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

	March 31,	December 31,	March 31,
Name of Associate	2019	2018	2018
ACME	$ 44,941	$ 42,241	$ 56,057

All associates are accounted for using the equity method.

Except for those of ACME, the Group’s investments accounted for using the equity method and its share of profit or loss and other comprehensive income or loss as of and for the three months ended March 31, 2019 and 2018 were not reviewed by auditors for the same periods.

15. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2018 Additions Disposals Reclassification Effect of foreign currency exchange differences Balance at March 31, 2018	Freehold Land $ 2,105,218 - - - - $ 2,105,218	Buildings and Improvements Machinery and Equipment Transportation Equipment $ 2,052,583 $ 9,508,535 $ 60,655 - - - - (12,961 ) (874 ) 5,985 43,477 - 5,331 486 30 $ 2,063,899 $ 9,539,537 $ 59,811	Miscellaneous Equipment $ 330,882 221 (349 ) 996 (31) $ 331,719	Construction in Progress and Machinery in Transit Total $ 495,804 $ 14,553,677 126,996 127,217 - (14,184 ) (50,458 ) - 142 5,958 $ 572,484 $ 14,672,668 (Continued)

22 -

Accumulated depreciation and impairment Balance at January 1, 2018 Depreciation expenses Disposals Effect of foreign currency exchange differences Balance at March 31, 2018 Carrying amounts at March 31, 2018 Cost Balance at January 1, 2019 Additions Disposals Reclassification Effect of foreign currency exchange differences Balance at March 31, 2019 Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation expenses Disposals Effect of foreign currency exchange differences Balance at March 31, 2019 Carrying amounts at December 31, 2018 and January 1, 2019 Carrying amounts at March 31, 2019	Freehold Land $ - - - - $ - $ 2,105,218 $ 2,105,218 - - - - $ 2,105,218 $ - - - - $ - $ 2,105,218 $ 2,105,218	Buildings and Improvements $ 1,082,032 17,506 - 3,280 $ 1,102,818 $ 961,081 $ 2,102,358 - (581 ) 8,989 7,339 $ 2,118,105 $ 1,142,183 18,308 (581 ) 4,760 $ 1,164,670 $ 960,175 $ 953,435	Machinery and Equipment Transportation Equipment $ 7,417,915 $ 43,723 97,230 1,337 (12,940 ) (874 ) 523 30 $ 7,502,728 $ 44,216 $ 2,036,809 $ 15,595 $ 9,750,059 $ 64,478 79 - (35,324 ) (6,114 ) 355,699 1,729 767 46 $ 10,071,280 $ 60,139 $ 7,595,905 $ 46,767 112,391 1,510 (35,293 ) (5,556 ) 760 41 $ 7,673,763 $ 42,762 $ 2,154,154 $ 17,711 $ 2,397,517 $ 17,377	Miscellaneous Equipment $ 271,735 3,843 (330 ) (11) $ 275,237 $ 56,482 $ 341,757 - (2,483 ) 2,912 66 $ 342,252 $ 280,977 4,538 (2,455 ) 36 $ 283,096 $ 60,780 $ 59,156	Construction in Progress and Machinery in Transit $ 8,411 - - 136 $ 8,547 $ 563,937 $ 719,920 140,241 - (401,500 ) 183 $ 458,844 $ 8,069 - - 184 $ 8,253 $ 711,851 $ 450,591	Total $ 8,823,816 119,916 (14,144 ) 3,958 $ 8,933,546 $ 5,739,122 $ 15,083,790 140,320 (44,502 ) (32,171 ) 8,401 $ 15,155,838 $ 9,073,901 136,747 (43,885 ) 5,781 $ 9,172,544 $ 6,009,889 $ 5,983,294

(Concluded)

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and improvements
Dormitories, restaurants and office buildings	26 to 60 years
Cell room and improvements	5 to 21 years
General plants and improvements	3 to 45 years
Machinery and equipment
Chemical industry equipment	5 to 8 years
Machinery manufacturing equipment	5 to 8 years
Electrical equipment and tanks	10 to 26 years
Other equipment	2 to 15 years
Transportation equipment
Cars	2 to 7 years
Forklifts	5 to 8 years
Other vehicles	2 to 15 years
Other equipment	2 to 10 years
Miscellaneous equipment
General office computers	2 to 5 years
Industrial computers	3 to 15 years
Other miscellaneous equipment	3 to 21 years

For the years ended March 31, 2019 and 2018, the Group does not performed impairment assessment due to no impairment loss was recognized.

The Group set out the property, plant and equipment pledged as collateral for bank borrowings in Note 33.

23 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets - 2019

March 31, 2019

Carrying amounts Land $ 289,519 Buildings 16,405 Machinery 34,189 $ 340,113

	For the Three
	Months Ended
	March 31, 2019
Depreciation charge for right-of-use assets
Land	$ 6,184
Buildings	1,070
Machinery	2,279
	$ 9,533

b. Lease liabilities - 2019

	March 31, 2019
Carrying amounts
Current	$ 36,215
Non-current	$ 207,233
Range of discount rate for lease liabilities was as follows:
	March 31, 2019
Land	1.0392%
Buildings	1.0392%
Machinery	1.0392%

c. Material lease-in activities and terms

The Group leases certain land and buildings for the use of product manufacturing and office with lease terms of 2 to 15 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

The Group also leases machinery for the use of product manufacturing and Group’s operations with lease terms of 5 years.

The lease contract for land located in Kaohsiung specifies that lease payments will be adjusted on the basis of changes in announced land value prices.

24 -

d. Other lease information

2019

	For the Three
	Months Ended
	March 31, 2019
Expenses relating to short-term leases	$ 2,937
Expenses relating to low-value asset leases	$ 153
Total cash outflow for leases	$ (12,128)

The Group leases certain buildings, transportation equipment which qualify as short term leases and certain land and office equipment which qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

2018

The future minimum lease payments of non-cancellable operating lease commitments are as follows:

December 31, 2018 Not later than 1 year $ 46,518 Later than 1 year and not later than 5 years 140,238 Later than 5 years 88,574 $ 275,330	March 31, 2018 $ 46,132 156,121 99,585 $ 301,838

17. INVESTMENT PROPERTIES

Freehold land Buildings and improvements	March 31, 2019 December 31, 2018 $ 13,204 $ 13,204 120,828 122,073 $ 134,032 $ 135,277	March 31, 2018 $ 13,204 125.810 $ 139,014

The Group’s investment properties are located in Toufen Industrial District. Due to the characteristics of the district, the market for comparable properties is inactive and alternative reliable measurements of fair value were not available. Therefore, the Group determined that the fair value of its investment properties is not reliably measurable.

The Company leased the land in Toufen to USIO with a lease term from June 16, 2017 to June 15, 2018. After the lease contract expired, it was resigned with a new lease term from June 16, 2018 to June 15, 2020. USIO does not have a bargain purchase option to acquire the leased factory at the expiry of the lease period.

25 -

The maturity analysis of lease payments receivable under operating leases of investment properties in 2019 and 2018 were as follows:

		March 31,	December 31,	March 31,
		2019	2018	2018
Year	1	$ 11,777	$ 11,777	$ 11,777
Year	2	2,944	5,889	11,777
Year	3	-	-	2,944
		$ 14,721	$ 17,666	$ 26,498

The investment properties are depreciated using the straight-line method over their estimated useful lives as follows:

Buildings and improvements

26 years

18. INTANGIBLE ASSETS

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2019		2018		2018
Computer software	$	1,166	$	2,070	$	3,625
Technical authorization		-		423		4,231
	$	1,166	$	2,493	$	7,856

Except for the recognition of the amortization expense, there were no material additions, disposals and impairments happening for the Group's intangible assets for the three months ended March 31, 2019 and 2018.

Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Computer software 3 years Technical authorization 7 years

19. PREPAYMENTS FOR LEASES

Current (included in prepayments) Non-current	March 31, 2019 December 31, 2018 $ - $ 3,389 - 95,184 $ - $ 98,573	March 31, 2018 $ 3,505 101,074 $ 104,579

Starting from January 1, 2019, the Group applied IFRS 16 and reclassified the prepayments for leases which are the land use rights in Mainland China as the right-of-use assets. Refer to Notes 3 and 16 for the related disclosures.

26 -

20. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Bank loans	March 31, 2019 $ 50,000	December 31, 2018 $ -	March 31, 2018 $ -

As of March 31, 2019, the interest rates of the revolving bank loan was 0.90% (as of December 31, 2018 and March 31, 2018: None).

b. Long-term borrowings

Line of credit borrowings Secured loans The range of interest rate	March 31, 2019 $ 200,000 500,000 $ 700,000 1.04%	December 31, 2018 March 31, 2018 $ 500,000 $ 500,000 500,000 550,000 $ 1,000,000 $ 1,050,000 0.99%-1.04% 0.99%
	$

In order to enrich medium-term working capital, CGPCPOL entered into a 3-year credit contract with KGI Bank with a revolving credit limit of $500,000 thousand. As of March 31, 2019, the utilized credit amounted to $200,000 thousand. In addition, CGPCPOL entered into another 5-year credit contract with KGI Bank and the credit limit was reduced to $950,000 thousand on November 30, 2018. As of March 31, 2019, the utilized credit amounted to $500,000 thousand. The Group set out the assets as pledged collateral for bank borrowings in Note 33.

21. NOTES PAYABLE AND TRADE PAYABLES

Notes payable Operating Trade payables (including from related parties) Operating	March 31, 2019 December 31, 2018 $ 91 $ 288 $ 1,117,158 $ 1,086,869	March 31, 2018 $ 91 $ 759,161

The average payment period of trade payables was 2 months. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

27 -

22. OTHER PAYABLES - CURRENT

Payables for salaries or bonuses Payables for freight Payables for utilities Payables for purchases of equipment Payables for fuel fees Others 23. REFUND LIABILITIES Refund liability (presented in other current liabilities)	March 31, 2019 December 31, 2018 $ 155,604 $ 305,678 67,477 73,585 57,900 60,241 52,967 100,624 23,746 19,830 201,195 194,772 $ 558,889 $ 754,730 March 31, 2019 December 31, 2018 $ 17,433 $ 23,750	March 31, 2018 $ 201,732 82,013 61,452 52,676 18,816 173,086 $ 589,775 March 31, 2018 $ 15,966

The provision for customer returns and rebates was based on historical experience, management’s judgments and other known reasons for which estimated product returns and rebates may occur in the year. The provision was recognized as a reduction of operating income in the periods of the sales of the related goods.

24. RETIREMENT BENEFIT PLANS

Employee benefits expense in respect of the Group’s defined benefit retirement plans was calculated using the actuarially determined pension cost rate at the end of the prior financial year which was stated in the respective 2018 and 2017 actuarial report; the employee benefits expense for the three months ended March 31, 2019 and 2018 was $5,270 thousand and $6,670 thousand, respectively. Under the defined benefit plans adopted by the Company and its subsidiary, TVCM, the Company and TVCM contribute amounts equal to 10% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee.

The Group contributed $40,645 thousand and $319,277 thousand for the three months ended March 31, 2019 and 2018, respectively, to the pension fund which was designated by the Supervisory Committee of Workers’ Pension Preparation Fund.

25. EQUITY

a. Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	March 31, 2019 December 31, 2018 650,000 650,000 $ 6,500,000 $ 6,500,000 506,760 506,760 $ 5,067,596 $ 5,067,596	March 31, 2018 500,000 $ 5,000,000 492,000 $ 4,919,996

28 -

The holders of issued ordinary shares with a par value of $10 are entitled to the right to vote and to receive dividends.

b. Capital surplus

The capital surplus generated from donations and the excess of the issuance price over the par value of share capital (including the shares issued from new capital) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or share dividends up to a certain percentage of the Company’s paid-in capital.

The capital surplus arising from investments accounted for using the equity method may not be used for any purpose.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Company’s Articles of Incorporation, where the Company made a net income in a fiscal year, the profit shall be used first for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. The industry that the Company operates in is in the maturity stage. Consequently, in order to take R&D needs and diversification into consideration, shareholders’ dividends shall not be less than 10% of the distributable earnings in the current year, of which the cash dividends shall not be less than 10% of the total dividends. However, if the distributable earnings of the year is less than $0.1 per share, it shall not be distributed. For the policies on the distribution of employees’ compensation and remuneration of directors before and after amendment, refer to “Employees’ compensation and remuneration of directors” in Note 27-f.

The appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865, Rule No. 1010047490 and Rule No. 1030006415 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2018 and 2017 as approved in the Company’s board of directors on March 6, 2019 and shareholders’ meeting on June 22, 2018, respectively, were as follows:

Legal reserve Cash dividends Share dividends	Appropriation of Earnings For the Year Ended December 31 2018 2017 $ 127,616 $ 126,981 760,139 737,999 202,704 147,600	Dividends Per Share (NT$)
		For the Year Ended December 31
		2018 2017 $ 1.5 $ 1.5 0.4 0.3

The appropriations of earnings for 2018 are subject to resolution in the shareholder’s meeting to be held on June 21, 2019.

29 -

d. Special reserve

The Company appropriated a special reserve in the amount of $408,223 thousand after offsetting a deficit of $428,727 thousand, which was from the net increase of retained earnings arising from the initial adoption of IFRSs. As of March 31, 2019, there was no change.

e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Effect of change in tax rate Recognized during the period Exchange differences on translating the financial statements of foreign operations Related income tax Share of exchange differences of associates accounted for using the equity method Balance at March 31 Unrealized gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized during the period Unrealized loss on equity instruments Share of gain (loss) of associates accounted for using the equity method Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2019 2018 $ (15,825) $ (19,583) - (2,020) 7,699 (4,198) (1,540) 840 496 396 $ (9,170) $ (24,565) For the Three Months Ended March 31
		2019 $ 57,842 (4,155) 2,458 $ 56,145	2018 $ 56,912 (5,053) (4,230) $ 47,629

2) Unrealized gain (loss) on financial assets at FVTOCI

26. REVENUE

a. Revenue from contracts with customers

Revenue from the sale of goods PVC products VCM products		For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 2,959,617 268,090 $ 3,227,707	2018 $ 3,769,433 374,767 $ 4,144,200

Refer to Note 37 for information about revenue from contracts with customers.

30 -

b. Contract balances

Refer to Note 10 for information related to notes receivable and trade receivables.

	March 31,	December 31,	March 31,
	2019	2018	2018
Contract liabilities (presented in other current
liabilities)	$ 34,425	$ 23,211	$ 24,711

The changes in the balance of contract liabilities primarily result from the timing difference between the Group’s performance and the respective customers’ payment.

27. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

Owners of the Company Non-controlling interests	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 183,125 6,734 $ 189,859	2018 $ 541,644 42,136 $ 583,780

a. Other income

Interest income Bank deposits Financial assets at amortized cost Others Rental income Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 2,089 120 136 2,345 3,120 8,871 $ 14,336	2018 $ 1,311 120 45 1,476 3,148 19,433 $ 24,057

31 -

b. Other gains and losses

Gain on disposal of property, plant and equipment Gross foreign exchange gains Gross foreign exchange losses Loss on financial liabilities held for trading (see Note 7) Gain on financial assets mandatorily classified as at FVTPL (see Note 7) Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 741 13,904 (5,583) (2,513) 17,017 (2,903) $ 20,663	2018 $ 427 25,036 (43,792) (4,249) 23,534 (3,662) $ (2,706)

c. Interest expense

Interest on bank loans Interest on lease liabilities Less: Capitalized interest (included in construction in progress)	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 2,636 647 (12) $ 3,271	2018 $ 2,767 - (63) $ 2,704

Information about capitalized interest was as follows:

Capitalized interest Capitalization rate Depreciation and amortization Property, plant and equipment Right-of-use assets Investment properties Intangible assets Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2019 2018 $ 12 $ 63 0.53% 0.93% For the Three Months Ended March 31
		2019 $ 133,723 8,668 1,245 1,327 5,572 $ 150,535	2018 $ 116,904 - 1,246 2,382 4,005 $ 124,537

d. Depreciation and amortization

(Continued)

32 -

An analysis of depreciation by function Operating costs Operating expenses Non-operating expenses An analysis of amortization by function Operating costs General and administrative expenses e. Employee benefits expense	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 2018 $ 138,326 $ 115,081 4,065 1,823 1,245 1,246 $ 143,636 $ 118,150 $ 5,995 $ 5,274 904 1,113 $ 6,899 $ 6,387 (Concluded)

Post-employment benefits Defined contribution plans Defined benefit plans (see Note 24) Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 6,718 5,270 11,988 293,228 $ 305,216 $ 242,184 63,032 $ 305,216	2018 $ 6,293 6,670 12,963 342,854 $ 355,817 $ 274,834 80,983 $ 355,817

f. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at rates of no less than 1% and no higher than 1%, respectively, of net profit before income tax, employees’ compensation and remuneration of directors. For the three months ended March 31, 2019 and 2018, the employees’ compensation and the remuneration of directors were as follows:

Accrual rate

Employees’ compensation Remuneration of directors	For the Three Months Ended March 31
	2019 2018 1% 1% - -

33 -

Accrual amount

Employees’ compensation	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 2,062	2018 $ 5,504

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The employees’ compensation and remuneration of directors for 2018 and 2017, which have been approved by the Company’s board of directors on March 6, 2019 and March 12, 2018, respectively, were as follows:

Amount

Employees’ compensation	2018 $ 13,975	2017 $ 14,300

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended 2018 and 2017.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors in 2019 and 2018 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

28. INCOME TAX RELATING TO CONTINUING OPERATIONS

a. Major components of income tax expense recognized in profit or loss

Current tax In respect of the current period Deferred tax In respect of the current period Adjustments to deferred tax attributable to changes in tax rates and laws Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 25,881 9,424 - 9,424 $ 35,305	2018 $ 95,154 42,896 (39,889) 3,007 $ 98,161

The Income Tax Act in the ROC was amended in 2018, and the corporate income tax rate was adjusted from 17% to 20%, effective in 2018. The effect of the change in the tax rate on deferred tax income (to be recognized in profit or loss) is recognized in full in the period in which the change in tax rate occurs. In addition, the rate of the corporate surtax applicable to the 2018 unappropriated earnings will be reduced from 10% to 5%.

34 -
b. Income tax recognized in other comprehensive income

Deferred tax Adjustments to deferred tax attributable to changes in tax rates and law In respect of the current period Translation of foreign operations	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ - (1,540) $ (1,540)	2018 $ 6,500 840 $ 7,340

c. Income tax assessments

The income tax returns of the Company and TVCM through 2017 have been assessed by the tax authorities, while the income tax returns of the CGPCPOL through 2016 have been assessed by the tax authorities.

d. Income tax related to subsidiaries

CGPC (BVI) and Krystal Star had no income tax expense for the three months ended March 31, 2019 and 2018 due to relevant tax exemptions in compliance with the regulations of the locations where the entities were established. The applicable tax rate used by CGPC America is a state rate of 9% and the federal tax rate was adjusted from 30% to 21%.

29. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic and diluted earnings per share From continuing operations and discontinued operations From discontinued operations From continuing operations	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 0.36 - $ 0.36	2018 $ 1.07 - $ 1.07

The weighted average number of shares outstanding used in the earnings per share computation was adjusted retroactively for the issuance of bonus shares on August 3, 2018. The basic and diluted earnings per share adjusted retrospectively for the three months ended March 31, 2018 were as follows:

Unit: NT$ Per Share

	Before		After
	Retrospective	Retrospective
	Adjustment	Adjustment
Basic and diluted earnings per share
From continuing and discontinued operations	$ 1.10	$	1.07
From discontinued operations	-		-
From continuing operations	$ 1.10	$	1.07

35 -

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share from continuing operations were as follows:

Net Profit (Loss) for the Period

Profit for the period attributable to owners of the Company (earnings used in computation of basic and diluted earnings per share) Add: Profit (loss) for the period from discontinued operations Earnings used in the computation of basic and diluted earnings per share from continuing operations Ordinary Shares Outstanding (In Thousands of Shares)	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 184,234 (1,109) $ 183,125	2018 $ 541,502 142 $ 541,644

Weighted average number of ordinary shares used in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 506,760 564 507,324	2018 506,760 545 507,305

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

30. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

31. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The management of the Group believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair value.

36 -
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

March 31, 2019 Financial assets at FVTPL Derivative financial assets Fund beneficiary certificates Investments in equity instruments Overseas unlisted equity investments Financial assets at FVTOCI Investments in equity instruments Domestic listed equity investments Domestic unlisted equity investments Financial liabilities at FVTPL Derivatives financial liabilities December 31, 2018 Financial assets at FVTPL Derivative financial assets Fund beneficiary certificates Investments in equity instruments Overseas unlisted equity investments	Level 1 $ - 630,671 - $ 630,671 $ 1,715 - $ 1,715 $ - Level 1 $ - 1,431,868 - $ 1,431,868	Level 2 $ 403 - - $ 403 $ - - $ - $ 1,384 Level 2 $ 839 - - $ 839	Level 3 $ - - - $ - $ - 116,786 $ 116,786 $ - Level 3 $ - - - $ -	Total $ 403 630,671 - $ 631,074 $ 1,715 116,786 $ 118,501 $ 1,384 Total $ 403 1,431,868 - $ 1,432,707 (Continued)

37 -

Financial assets at FVTOCI Investments in equity instruments Domestic listed equity investments Domestic unlisted equity investments Financial liabilities at FVTPL Derivatives financial liabilities March 31, 2018 Financial assets at FVTPL Derivative financial assets Fund beneficiary certificates Investments in equity instruments Overseas unlisted equity investments Financial assets at FVTOCI Investments in equity instruments Domestic listed equity investments Domestic unlisted equity investments Financial liabilities at FVTPL Derivatives financial liabilities	Level 1 $ 1,593 - $ 1,593 $ - Level 1 $ - 1,702,032 - $ 1,702,032 $ 2,035 - $ 2,035 $ -	Level 2 $ - - $ - $ 1,645 Level 2 $ 1,856 - - $ 1,856 $ - - $ - $ 96	Level 3 $ - 121,047 $ 121,047 $ - Level 3 $ - - - $ - $ - 102,648 $ 102,648 $ -	Total $ 1,593 121,047 $ 122,640 $ 1,645 (Concluded) Total $ 1,856 1,702,032 - $ 1,703,888 $ 2,035 102,648 $ 104,683 $ 96

There were no transfers between Levels 1 and 2 for the three months ended March 31, 2019 and 2018.

38 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

For the three months ended March 31, 2019

	Financial Assets
Financial Assets	at FVTOCI
Balance at January 1, 2019	$ 121,047
Recognized in other comprehensive loss (included in unrealized loss on financial
assets at FVTOCI)	(4,261)
Balance at March 31, 2019	$ 116,786
For the three months ended March 31, 2018
	Financial Assets
Financial Assets	at FVTOCI
Balance at January 1, 2018	$ 107,562
Recognized in other comprehensive loss (included in unrealized loss on financial
assets at FVTOCI)	(4,914)
Balance at March 31, 2018	$ 102,648

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Derivatives - foreign exchange forward contracts	Valuation Techniques and Inputs
	Discounted cash flow: Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

To determine the fair value for Level 3 financial instruments, the Group’s financial department conducts independent fair value verification using independent resources so as to better reflect the market conditions, as well as periodically reviewing the valuation results in order to guarantee the rationality of the measurement. For unlisted domestic equity investments, the Group utilizes the asset approach and takes into account the most recent net asset value, observable financial status as well as the financing activities of investees in order to determine their net asset value. The unobservable input used was a discount for the lack of marketability of 15% on March 31, 2019, December 31, 2018 and March 31, 2018. When other inputs remain unchanged, the fair value will decrease by $1,374 thousand, $1,424 thousand and $1,208 thousand if the discount for lack of marketability increases by 1%.

39 -

c. Categories of financial instruments

	March 31,	March 31,	December 31,	March 31,
		2019	2018	2018
Financial assets
Financial assets at FVTPL
Mandatorily classified at FVTPL	$	631,074	$ 1,432,707	$ 1,703,888
Financial assets at amortized cost
Cash and cash equivalents		763,955	934,680	833,610
Pledge time deposits		269,003	268,954	268,854
Notes receivable		199,270	195,847	159,302
Trade receivables (including related
parties)		1,440,572	1,608,142	1,345,321
Other receivables (including related parties
and excluding tax refund receivable)		56,131	20,850	50,900
Refundable deposits		17,025	16,281	16,282
Financial assets at FVTOCI
Equity instruments		118,501	122,640	104,683
Financial liabilities
Financial liabilities at FVTPL
Held for trading		1,384	1,645	96
Financial liabilities measured at amortized
cost
Short-term borrowings		50,000	-	-
Notes payable		91	288	91
Trade payables (including related parties)		1,117,158	1,086,869	759,161
Other payables (including related parties)		421,977	768,993	604,327
Long-term borrowings		700,000	1,000,000	1,050,000
Guarantee deposits		3,418	3,300	2,876

d. Financial risk management objectives and policies

The Group’s conduct of risk control and hedging strategy is influenced by the operational environment. The Group monitors and manages the financial risk by business nature and risk dispersion.

These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group’s operating activities exposed itself primarily to the market risks of changes in foreign currency exchange rates and interest rates.

There has been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

40 -

a) Foreign currency risk

The Group conducted foreign currency sales and purchases, which exposed the Group to foreign currency risk. In order to avoid the impact of foreign currency exchange rate changes, which lead to deductions in foreign currency denominated assets and fluctuations in their future cash flows, the Group maintains a balance of hedged net foreign currency denominated assets and liabilities. The Group also utilizes foreign exchange forward contracts to hedge the currency exposure. The use of foreign exchange forward contracts is regulated by the policies passed by the Group’s board of directors. Internal auditors focus on reviewing the observance of the policies and the quota of risk exposures. The foreign exchange forward contracts that the Group engaged in were not for speculation purposes.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as of the end of the reporting period are set out in Note 35.

Sensitivity analysis

The Group’s sensitivity analysis mainly focuses on the foreign currency risk of U.S. dollars at the end of the reporting period. Assuming a 3% strengthening/weakening of the functional currency against U.S. dollars, the net income before tax for the three months ended March 31, 2019 and 2018 would have decreased/increased by $24,990 thousand and $32,615 thousand, respectively.

In management’s opinion, the sensitivity analysis was unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Group was exposed to the fair value risk of interest rate fluctuations for the fixed interest rate bearing financial assets; the Group was exposed to the cash flow risk of interest rate fluctuations for the floating interest rate bearing financial assets and financial liabilities. The Group’s management regularly monitors the fluctuations on market rates and then adjusted its balance of floating rate bearing financial liabilities to make the Group’s interest rates more closely approach market rates in response to the interest rate risk.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31,	March 31,	December 31,	March 31,	March 31,
		2019	2018		2018
Fair value interest rate risk
Financial assets	$	795,262	$ 1,008,163	$	885,365
Financial liabilities		293,448	-		-
Cash flow interest rate risk
Financial assets		220,600	184,491		199,648
Financial liabilities		700,000	1,000,000		1,050,000

41 -

Sensitivity analysis

The fixed-rate financial assets and liabilities held by the Group are not included in the analysis as they are all measured at amortized cost. For floating rate assets and liabilities, the analysis was prepared assuming that the amount of the assets and liabilities outstanding at the end of the reporting period was outstanding for the whole year. A 50-basis point fluctuation in interest rate was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2019 and 2018 would have decreased/increased by $599 thousand and $1,063 thousand, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in domestic listed shares, domestic unlisted shares, mutual fund beneficiary certificates and other equity securities investments. The Group manages this exposure by maintaining a portfolio of investments with different risks. In addition, the Group has appointed a special team to monitor price risk.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to securities price risk at the end of the reporting period.

If marketable equity securities prices had fluctuated by 5%, the pre-tax profit for the three months ended March 31, 2019 and 2018 would have increased/decreased by $31,534 thousand and $85,102 thousand as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the three months ended March 31, 2019 and 2018 would have increased/decreased by $5,925 thousand and $5,234 thousand as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As of the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of counterparties to discharge an obligation and financial guarantees provided by the Group, could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets; and
b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

The Group adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.

The counterparties of the Group’s trade receivables included numerous clients distributed over a variety of areas and were not centered on a single client or location. Furthermore, the Group continuously assesses the financial condition of its clients, and then the Group’s credit risk was limited. As of the end of the reporting period, the Group’s largest exposure to credit risk is approximately that of the carrying amounts of its financial assets.

42 -

3) Liquidity risk

The Group managers mitigate liquidity risk by maintaining a level of cash and cash equivalents and financing facilities deemed adequate.

a) Liquidity and interest rate risk tables

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table was drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

March 31, 2019

Weighted
Average
Interest Rate
On Demand
or Less than
1 Year
1-5 Years
5+ Years
Non-derivative financial
liabilities
Non-interest bearing
liabilities
$ 1,535,132 $ 13,254 $ -
Lease liabilities
1.04%
36,412
119,323
99,585
Floating interest rate
liabilities
1.04%
-
700,000
-
Fixed interest rate liabilities
0.9%

50,000

-

-
$ 1,621,544
$ 832,577
$ 99,585
Additional information about the maturity analysis for lease liabilities:
Less than 1
Year
1-5 Years
5-10 Years
10-15 Years
Lease liabilities
$ 36,412
$ 119,323
$ 73,410
$ 26,175
December 31, 2018
Weighted
Average
Interest Rate
On Demand
or Less than
1 Year
1-5 Years
5+ Years
Non-derivative financial
liabilities
Non-interest bearing
liabilities
$ 1,583,936 $ 10,392 $ -
Floating interest rate
liabilities
1.01%

-

1,000,000

-
$ 1,583,936
$ 1,010,392
$ -

Less than 1
Year
Lease liabilities
$ 36,412

December 31, 2018
Weighted
Average
Interest Rate
Non-derivative financial
liabilities
Non-interest bearing
liabilities

Floating interest rate
liabilities
1.01%

1-5 Years

$ 119,323

On Demand
or Less than
1 Year
$ 1,583,936

-

$ 1,583,936

43 -

March 31, 2018

Weighted Average Interest Rate Non-derivative financial liabilities Non-interest bearing liabilities Floating interest rate liabilities 0.99%	On Demand or Less than 1 Year $ 1,156,607 - $ 1,156,607	1-5 Years $ 18,609 1,050,000 $ 1,068,609	5+ Years $ - - $ -

b) Financing facilities

The Group relies on bank loans as a significant source of liquidity. As of March 31, 2019, December 31, 2018 and March 31, 2018, the unused amounts of bank loan facilities were as follows:

Bank loan facilities Amount unused	March 31, 2019 December 31, 2018 $ 5,859,707 $ 6,230,457	March 31, 2018 $ 7,202,459

32. TRANSACTIONS WITH RELATED PARTIES

As of March 31, 2019, December 31, 2018 and March 31, 2018, USI Corporation held through its subsidiary, Union Polymer Int’l Investment Corporation, 24.97% of the Company’s outstanding ordinary shares.

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related party names and categories

Related Party Name
USI Corporation (“USI”)

Taita Chemical Company, Limited (“TTC”)

Asia Polymer Corporation (“APC”)

China General Terminal & Distribution Corporation (“CGTD”)
Acme Electronics Corporation

Thintec Materials Corporation

USI Optronics Corporation (“USIO”)

USI Management Consulting Corporation (“UM”)

Swanson Plastics Corporation (“SPC”)

Taiwan United Venture Management Corporation

Related Party Category

Parent company
Investor with significant influence
Investor with significant influence
Associate
Associate
Associate
Fellow subsidiary
Fellow subsidiary
Fellow subsidiary
Fellow subsidiary
(Continued)

44 -

Related Party Name Chong Loong Trading Co., Ltd. Dynamic Ever Investments Limited USIFE Investment Co., Ltd. INOMA Corporation (“INOMA”) Taita Chemical (Zhong Shan) Co., Ltd. (“TTC (ZS)”) APC Investment Corporation USI Educational Foundation (“USIF”)	Related Party Category
	Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Subsidiary of investor with significant influence Subsidiary of investor with significant influence Related party in substance (Concluded)

b. Sales of goods

For the Three Months Ended March 31 Related Party Category 2019 2018 Investor with significant influence $ 615 $ 779 Fellow subsidiary 169 77 $ 784 $ 856 The sales of goods to related parties had no material differences from those of general sales transactions. Purchases of goods For the Three Months Ended March 31 Related Party Category 2019 2018 Fellow subsidiary $ 1,072 $ 1,628 Parent company USI 56 - Investor with significant influence - 13 $ 1,128 $ 1,641	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 1,072 56 - $ 1,128	2018 $ 1,628 - 13 $ 1,641

The sales of goods to related parties had no material differences from those of general sales transactions.

c. Purchases of goods

Purchases from related parties had no material differences from those of general purchase transactions.

d. Trade receivables from related parties

Related Party Category/Name Investor with significant influence	March 31, 2019 December 31, 2018 $ 497 $ 325	March 31, 2018 $ 493

The outstanding trade receivables from related parties were unsecured. For the three months ended March 31, 2019 and 2018, no impairment loss was recognized for trade receivables from related parties.

45 -
e. Trade payables to related parties

Related Party Category/Name Parent company USI Fellow subsidiary	March 31, 2019 December 31, 2018 $ 125,988 $ 171,224 608 636 $ 126,596 $ 171,860	March 31, 2018 $ 171,303 659 $ 171,962

TVCM appointed USI to import ethylene, and the trade payables to USI are to be paid off when USI makes a payment.

The outstanding trade payables to related parties were unsecured.

f. Other receivables from related parties

		March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
	Related Party Category/Name		2019		2018		2018
	Parent company
	USI	$	29,732	$	6,133	$	35,020
	Investor with significant influence
	APC		13,325		235		370
	Others		690		615		2,153
	Subsidiary of investor with significant
	influence
	TTC (ZS)		4,201		4,108		4,248
	Others		1		1		1
	Fellow subsidiary		88		71		634
	Associate		-		2		819
		$	48,037	$	11,165	$	43,245
g.	Other payables to related parties
		March 31,		December 31,		March 31,
	Related Party Category/Name		2019		2018		2018
	Associate
	CGTD	$	10,922	$	10,072	$	7,189
	Parent company
	USI		2,113		2,559		3,797
	Related party in substance
	USIF		2,000		-		1,500
	Subsidiary of investor with significant
	influence		1,750		1,202		1,012
	Investor with significant influence		1,296		315		679
	Fellow subsidiary		611		115		375
		$	18,692	$	14,263	$	14,552

46 -
h. Acquisitions of property, plant and equipment

Purchase Price	Purchase Price	Purchase Price
For the Three Months Ended March 31
2019 2018 $ 633 $ 409 December 31, 2018 March 31, 2018 $ - $ - - - - - $ - $ - For the Three Months Ended March 31
	2019 $ 419 102 79 $ 600 $ 1,777 812 - $ 2,589	2018 $ - - - $ - $ 1,890 6,982 1,972 $ 10,844

i. Lease arrangements

The Company leases offices in Neihu from USI and APC. The leases will expire in April 2019 and December 2019, respectively, and the rentals are paid on a monthly basis.

The factory belonging to the Company’s subsidiaries located on the land in Linyuan was rented from APC. The original lease term expired in December 2011. However, if neither counterparties argued, the lease term would automatically extend one more year.

The Company’s subsidiaries leased storage tanks for vinyl chloride monomer from TTC. The original lease term expired in December 2010 and renewed at both parties’ discretion.

47 -

The Company’s subsidiary leased land for their warehouses from APC. The lease term will expire in May 2026. The lease contract is renewable, and the rental is paid on a monthly basis.

j. Storage tank operating expenses

Related Party Category/Name Associate CGTD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 32,055	2018 $ 22,820

The Company’s subsidiaries appointed CGTD to handle the storage tank used to transport, store and load vinyl chloride monomer, ethylene and dichloromethane. The storage tank operating expenses are due by the end of next month following such services.

k. Management service expenses

Related Party Category/Name Fellow subsidiary UM Others Parent company USI	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 20,638 29 1,183 $ 21,850	2018 $ 20,005 29 938 $ 20,972

Contracts stating that UM and USI should provide labor support, equipment and other related services to the Company and its subsidiary were effective starting from July 1, 2001 and July 1, 2002, respectively. Contracts stating that the UM should provide labor support, equipment and other related services to the subsidiaries of the Company were effective starting from July 1, 2009. The service expenses were based on the actual quarterly expenses which should be paid in the subsequent quarter following the related services.

l. Donations (classified as general and administrative expenses)

Related Party Category/Name Related party in substance USIF	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 2,500	2018 $ 2,000

48 -

m. Rental income

Related Party Category/Name Fellow subsidiary USIO Others Investor with significant influence Parent company USI	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 3,002 - 22 - $ 3,024	2018 $ 3,005 19 22 7 $ 3,053

USIO leased the plant and facility located in Toufen from the Company, and the detailed lease term can be referenced in Note 17.

n. Compensation of key management personnel

The compensation of directors and key executives for the three months ended March 31, 2019 and 2018 were as follows:

Salaries and others Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2019 $ 3,591 74 $ 3,665	2018 $ 3,510 73 $ 3,583

The compensation of directors and key executives of the Company was determined by the remuneration committee based on the performance of individuals and market trends.

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings and the tariffs of imported raw materials:

Pledge deposits (classified as financial assets at amortized cost or other non-current assets) Property, plant and equipment Land Buildings and improvements, net Machinery and equipment, net	March 31, 2019 December 31, 2018 $ 282,055 $ 281,874 1,650,957 1,650,957 510,178 517,612 585,406 610,005 $ 3,028,596 $ 3,060,448	March 31, 2018 $ 281,774 1,650,957 540,125 685,185 $ 3,158,041

49 -

The Company signed a long-term secured loan contract with a revolving credit limit of $1,000,000 thousand for 5 years with Chang Hwa Commercial Bank to enrich its working capital. The Company set the land and plants as collateral. As of March 31, 2019, December 31, 2018 and March 31, 2018, the Company has not used its revolving credit.

The Company’s subsidiary, CGPCPOL, pledged its land, plants, machinery and equipment as collateral for 5-year credit contract with KGI Bank.

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of the end of the reporting period were as follows:

a. As of March 31, 2019, December 31, 2018 and March 31, 2018, the Group’s unused letters of credit amounted to $1,058,116 thousand, $1,372,433 thousand and $703,400 thousand, respectively.
b. Description of Kaohsiung gas explosion:

Regarding the associate, China General Terminal & Distribution Corporation (hereinafter “CGTD”), who was commissioned to operate LCY Chemical Corp.’s propene pipeline resulting in a gas explosion on July 31, 2014, the first instance of the criminal procedures reached a first instance judgment on May 11, 2018, whereby three employees of CGTD were each sentenced to four years and six months of imprisonment, and CGTD assisted the employees to appeal against the judgment.

CGTD arrived at an agreement with the Kaohsiung City Government on February 12, 2015, pledging certificates of bank deposits of $227,167 thousand, interest included, to the Kaohsiung City Government as collateral for the loss caused by the gas explosion. The Kaohsiung City Government also filed civil procedure requests in succession against LCY Chemical Corp., CGTD and CPC Corporation, Taiwan (“CPC”). Taiwan Power Company applied for provisional attachment against CGTD’s property on August 27 and November 26, 2015. Taiwan Water Corporation also applied for provisional attachment against CGTD’s property on February 3 and March 2, 2017. As of April 30, 2019, the provisionally attached property was worth $139,997 thousand.

As for the victims, CGTD, LCY Chemical Corp. and the Kaohsiung City Government signed a tripartite agreement for the compensation of the 32 victims’ families on July 17, 2015. Each victim’s family received $12,000 thousand, and the compensation was $384,000 thousand in total, which was paid in four annual payments by LCY Chemical Corp. LCY Chemical Corp. was in charge of negotiating the compensation with the victims’ families and signing the settlement agreement on behalf of the three parties.

As for the seriously injured victims, CGTD, LCY Chemical Corp. and the Kaohsiung City Government signed a tripartite agreement for the compensation of the 65 seriously injured victims’ families on October 25, 2017. Compensation was paid by CGTD and the Kaohsiung City Government, and CGTD was in charge of negotiating the compensation with the seriously injured victims’ families and signing the settlement agreement on behalf of the three parties with the 64 seriously injured victim’s families.

As of April 30, 2019, victims and their families have filed civil (including supplementary civil action) lawsuits against LCY Chemical Corp., CGTD and CPC for compensation. To reduce the lawsuit costs, CGTD had reached a settlement on the original claim of $23,919 thousand, and the amount of the settlement was $3,899 thousand. Along with the case still under litigation and the above-mentioned compensation, the accumulated amount of compensation is $3,879,657 thousand. The first-instance judgments of some of the above-mentioned civil cases (with a total amount of compensation of approximately $1,177,192 thousand) have been gradually announced, starting from June 22, 2018. The proportion of fault liability of the Kaohsiung City Government, LCY Chemical Corp. and CGTD is 4:3:3 in most judgments. The total amount of compensation that CGTD, LCY Chemical Corp. and the

50 -

other defendants should pay is around $383,831 thousand. In particular, CGTD was exempted to pay $6,194 thousand according to the court’s judgement. $188,818 thousand is estimated to be the portion of compensation that CGTD should afford according to the first-instance judgment for the moment. CGTD has appealed some civil cases which were announced but were not yet settled and gradually entered into the second-instance trials. In addition, with regard to the above-mentioned compensation, CGTD estimated and recognized the amount of $136,375 thousand based on its fault liability proportion announced in the first-instance judgment. The actual payment of CGTD still depends on the judgments of the remaining civil cases in the future.

c. TVCM signed a dichloromethane purchase contracts with CPC Corporation, Formosa Plastics Corporation and Mitsui Corp. The purchase price was negotiated by both parties according to a pricing formula.

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The group entities’ significant financial assets and liabilities denominated in foreign currencies and aggregated by foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

Unit: Foreign and Functional Currencies in Thousands

March 31, 2019

		Foreign	Exchange Rate	Functional
		Currency	(In Single Dollars)	Currency	NT$
Financial assets
Monetary items
USD	$	44,418	30.820 (USD:NTD)	$ 1,368,973	$ 1,368,973
AUD		588	21.855 (AUD:NTD)	12,847	12,847
EUR		412	34.610 (EUR:NTD)	14,255	14,255
USD		296	6.734 (USD:CNY)	1,996	9,134
GBP		105	40.110 (GBP:NTD)	4,227	4,227
Financial liabilities
Monetary items
USD		17,867	30.820 (USD:NTD)	545,103	545,103
GBP		69	40.110 (GBP:NTD)	2,773	2,773

51 -

December 31, 2018

		Foreign	Exchange Rate	Functional
		Currency	(In Single Dollars)	Currency	NT$
Financial assets
Monetary items
USD	$	50,210	30.715 (USD:NTD)	$ 1,542,209	$ 1,542,209
AUD		687	21.665 (AUD:NTD)	14,885	14,885
EUR		312	35.200 (EUR:NTD)	10,991	10,991
USD		296	6.863 (USD:CNY)	2,034	9,101
GBP		35	38.880 (GBP:NTD)	1,358	1,358
Financial liabilities
Monetary items
USD		17,203	30.715 (USD:NTD)	528,379	528,379
JPY		9,500	0.2782 (JPY:NTD)	2,643	2,643
March 31, 2018
		Foreign	Exchange Rate (In	Functional
		Currency	Single Dollars)	Currency	NT$
Financial assets
Monetary items
USD	$	43,594	29.105 (USD:NTD)	$ 1,268,810	$ 1,268,810
JPY		171,907	0.274 (JPY:NTD)	47,085	47,085
EUR		429	35.870 (EUR:NTD)	15,371	15,371
AUD		415	22.345 (AUD:NTD)	9,276	9,276
GBP		53	40.790 (GBP:NTD)	2,175	2,175
USD		296	6.288 (USD:CNY)	1,862	8,621
Financial liabilities
Monetary items
USD		6,538	29.105 (USD:NTD)	190,277	190,277

Net foreign exchange gains (losses) for the three months ended March 31, 2019 and 2018 were $8,321 thousand and $(18,756) thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

36. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees
1) Financing provided to others: None;
2) Endorsements/guarantees provided: See Table 1 attached;
3) Marketable securities held: See Table 2 attached;
52 -
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None;
5) Acquisitions of individual real estate at costs of at least NT$300 million or 20% of the paid-in
- capital: None;
6) Disposals of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None;
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 3 attached;
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 4 attached;
9) Trading in derivative instruments: See Note 7;
10) Intercompany relationships and significant intercompany transactions: See Table 5 attached; and
11) Information on investees: See Table 6 attached.
b. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: See Table 7 attached; and
2) The following information on any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: None.
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- c) The amount of property transactions and the amount of the resultant gains or losses.
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and their purposes.
- e) The highest balance during the period, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.
53 -

37. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments, including departments of VCM products and PVC products, under IFRS 8 “Operating Segments” were as follows:

Segment Revenue and Results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments.

For the three months ended March 31, 2019

VCM Products PVC Products
Revenue from external customers
$ 268,090
$ 2,959,617

Inter-segment revenue

2,142,363

99,603

Segment revenue
$ 2,410,453
$ 3,059,220
Eliminations

Consolidated revenue

Segment income
$ 5,856
$ 177,702

Share of profit of associates accounted for using
the equity method
Interest income
Rental income
Gain on disposal of property, plant and
equipment
Foreign exchange gains
Loss on financial instruments held for trading
Gain on financial assets mandatorily classified as
at FVTPL
Interest expense
Others

Profit before tax from continuing operations

Total
$ 3,227,707

2,241,966
5,469,673
(2,241,966)
$ 3,227,707
$ 183,558
9,878
2,345
3,120
741
8,321
(2,513)
17,017
(3,271)

5,968
$ 225,164

For the three months ended March 31, 2018 VCM Products PVC Products Revenue from external customers $ 374,767 $ 3,769,433 Inter-segment revenue 2,176,174 103,134 Segment revenue $ 2,550,941 $ 3,872,567 Eliminations Consolidated revenues Segment income $ 54,176 $ 602,132 Share of profit of associates accounted for using the equity method Interest income	Total $ 4,144,200 2,279,308 6,423,508 (2,279,308) $ 4,144,200 $ 656,308 6,986 1,476 (Continued)

54 -

VCM Products PVC Products Rental income Gain on disposal of property, plant and equipment Foreign exchange losses Loss on financial instruments held for trading Gain on financial assets mandatorily classified as at FVTPL Interest expense Others Profit before tax from continuing operations	Total $ 3,148 427 (18,756) (4,249) 23,534 (2,704) 15,771 $ 681,941 (Concluded)

Segment profit represented the profit before tax earned by each segment without the share of profit (loss) of associates, interest income, rental income, gain (loss) on disposal of property, plant and equipment, foreign exchange losses, gain (loss) arising on financial instruments and interest expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance. However, the measure of segment assets and liabilities was not provided to the chief operating decision maker.

55 -

TABLE 1

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2019 (In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 2)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period (Note 3)	Actual Borrowing Amount (Note 3)	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) (Note 1)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	China General Plastics Corporation	CGPC Polymer Corporation	Subsidiary	$ 8,559,103	$ 2,908,200	$ 2,908,200	$ 215,410	None	33.98	$ 8,559,103	Yes	No	No

Note 1: The ratio is calculated using the ending balance of equity of the Company as of March 31, 2019.

Note 2: The total amount of guarantee that may be provided by the Company to any individual entity and in aggregate shall not exceed 100% of the Company’s net worth.

Note 3: The amount is calculated using the spot exchange rate of March 31, 2019.

56 -

TABLE 2

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD March 31, 2019 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March 31, 2019	March 31, 2019		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
China General Plastics Corporation Taiwan VCM Corporation CGPC Polymer Corporation CGPC (BVI) Holding Co., Ltd.	Closed-end fund beneficiary certificates Cathay No. 1 Real Estate Investment Trust Fubon No. 2 Real Estate Investment Trust Shin Kong No. 1 Real Estate Investment Trust Cathay No. 2 Real Estate Investment Trust Open-end fund beneficiary certificates FSITC Taiwan Money Market Fund FSITC Money Market Fund Taishin 1699 Money Market Fund Ordinary shares KHL IB Venture Capital Co., Ltd. Open-end fund beneficiary certificates Yuanta De-Bao Money Market Fund Jih Sun Money Market Fund UPAMC James Bond Money Market Fund Yuanta De-Li Money Market Fund FSITC Money Market Fund Ordinary shares Asia Polymer Corporation Open-end fund beneficiary certificates Taishin 1699 Money Market Fund FSITC Taiwan Money Market Fund Shares Teratech Corporation SOHOware, Inc. - preference shares	- - - - - - - - - - - - The major shareholders are the same as the those of the Company - - - -	Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	4,268,000 4,980,000 3,000,000 2,500,000 2,614,704 100,910 739,295 8,353,800 4,161,777 3,376,052 2,993,349 3,067,297 168,184 121,611 4,299,416 3,334,033 112,000 100,000	$ 66,495 66,085 50,370 40,525 40,000 18,000 10,000 116,786 50,010 50,010 50,010 50,006 30,000 1,715 58,156 51,004 - -	- - - - - - - 5.95 - - - - - 0.02 - - 0.67 -	$ 66,495 66,085 50,370 40,525 40,000 18,000 10,000 116,786 50,010 50,010 50,010 50,006 30,000 1,715 58,156 51,004 - -	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 and 3 1, 2 and 3

Note 1: The marketable securities were not pledged as guarantees or collateral for borrowings and are not subject to restrictions.

Note 2: The preference shares are not used in the calculation of the shareholding ratio and net worth.

Note 3: As of March 31, 2019, the Group evaluates the fair value of the equity instrument as $0.

57 -

TABLE 3

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2019

(In Thousands of New Taiwan Dollars)

Buyer/Seller	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Trade Receivables (Payables)
			Purchase/ Sale	Amount (Note)	% of Total	Payment Terms	Unit Price	Payment Terms	Financial Statement Account and Ending Balance (Note)	% of Total
China General Plastics Corporation Taiwan VCM Corporation CGPC Polymer Corporation	Taiwan VCM Corporation China General Plastics Corporation CGPC Polymer Corporation Taiwan VCM Corporation	Subsidiary Parent company Fellow subsidiary Fellow subsidiary	Purchase Sale Sale Purchase	$ 1,072,317 (1,072,317) (1,070,046) 1,070,046	74 (44) (44) 96	45 days 45 days 45 days 45 days	No major difference No major difference No major difference No major difference	No major difference No major difference No major difference No major difference	Trade payables to related parties $ (673,152) Trade receivables from related parties 673,152 Trade receivables from related parties 804,167 Trade payables to related parties (804,167)	(73) 41 48 (97)

Note: All the transactions were written off when preparing the consolidated financial statements.

58 -

TABLE 4

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL MARCH 31, 2019

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Financial Statement Account and Ending Balance (Note 3)	Financial Statement Account and Ending Balance (Note 3)	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period (Note 2)	Allowance for Impairment Loss
						Amount	Actions Taken
Taiwan VCM Corporation	China General Plastics Corporation CGPC Polymer Corporation	Parent company Fellow subsidiary	Trade receivables from related parties Trade receivables from related parties	$ 673,152 $ 804,167	5.93 5.41	$ - -	- -	$ 339,969 375,039	Note 1 Note 1

Note 1: There is no allowance for impairment loss after an impairment assessment.

Note 2: The subsequent period is between April 1 and April 26, 2019.

Note 3: All the transactions were written off when preparing the consolidated financial statements.

59 -

TABLE 5

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2019

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)		Transactions	Details
				Financial Statement Accounts	Amount	Transaction Terms	% of Total Sales or Assets (Note 3)
0 1	China General Plastics Corporation CGPC Polymer Corporation	Taiwan VCM Corporation CGPC America Corporation CGPC Polymer Corporation Taiwan VCM Corporation	1 1 1 1 1 1 1 3 3 3	Trade payables to related parties Purchases Trade receivables from related parties Sales revenue Other receivables from related parties Trade payables to related parties Purchases Trade payables to related parties Other payables to related parties Purchases	$ 673,152 1,072,317 99,958 94,131 1,383 3,554 5,473 804,167 25,397 1,070,046	No major difference No major difference No major difference No major difference No major difference No major difference No major difference No major difference No major difference No major difference	5 33 1 3 - - - 6 - 33

Note 1: The information correlation between the numeral and the entity are stated as follows:

a. The parent company: 0.
b. The subsidiaries: 1 onward.

Note 2: The direction of the investment is as follows:

a. The parent company to its subsidiary: 1.
b. The subsidiary to the parent company: 2.
c. Between subsidiaries: 3.

Note 3: The ratio of transactions related to total sales revenue or assets is calculated as follows:

a. Assets or liabilities: The ratio was calculated based on the ending balance of total consolidated assets; and
b. Income or loss: The ratio was calculated based on the midterm accumulated amount of total consolidated sales revenue.
60 -

TABLE 6

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE THREE MONTHS ENDED MARCH 31, 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Business Content	Original Investment Amount	Original Investment Amount	As	of March 31, 2019	of March 31, 2019	Net Income (Loss) of Investee	Share of Profit (Loss)	Note
				March 31, 2019	December 31, 2018	Number of Shares	%	Carrying Amount
China General Plastics Corporation	Taiwan VCM Corporation CGPC Polymer Corporation CGPC (BVI) Holding Co., Ltd. China General Terminal & Distribution Corporation CGPC America Corporation Krystal Star International Corporation Acme Electronics Corporation Thintec Materials Corporation	No. 1, Gongye 1st Rd., Linyuan Dist., Kaohsiung City 832, Taiwan (R.O.C.) 12F., No. 37, Jihu Rd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.) Citco Building, Wickhams Cay, P.O. Box 662, Road Town, Tortola, British Virgin Islands No. 1, Jianji St., Qianzhen Dist., Kaohsiung City 806, Taiwan (R.O.C.) 1181 California Ave., Suite 235 Corona, CA 92881 U.S.A. Citco Building, Wickhams Cay, P.O. Box 662, Road Town, Tortola, British Virgin Islands 8F., No. 39, Jihu Rd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.) 12F., No. 37, Jihu Rd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.)	Manufacturing and marketing of VCM Manufacturing and marketing of PVC resins Reinvestment Warehousing and transportation of petrochemical raw materials Marketing of PVC film and leather products Marketing of PVC film and consumer products Manufacturing and marketing of Mn-Zn ferrite cores, Ni-Zn ferrite cores Manufacturing and marketing of reinforced plastic products	$ 2,930,995 800,000 1,073,906 41,106 648,931 283,502 33,995 15,000	$ 2,930,995 800,000 1,073,906 41,106 648,931 283,502 33,995 15,000	206,008,832 78,859,281 16,308,258 18,667,465 100 5,780,000 3,176,019 600,000	87.22 100.00 100.00 33.33 100.00 100.00 1.74 10.00	$ 2,991,645 1,119,342 361,934 239,187 202,107 77,285 24,171 1,448	$ 52,679 16,556 1,585 31,507 (2,082) 533 (35,648) (32)	$ 74,441 16,556 1,585 10,502 (2,082) 533 (621) (3 )	Subsidiary Subsidiary Subsidiary Associate accounted for using the equity method Subsidiary Subsidiary Associate accounted for using the equity method Associate accounted for using the equity method

Note: All the transactions were written off when preparing the consolidated financial statements.

61 -

TABLE 7

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Business Content	Paid-in Capital (Note 1)	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2019 (Note 1)	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2019 (Note 1)	Net Income (Loss) of Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 5)	Carrying Amount as of March 31, 2019 (Notes 1 and 5)	Accumulated Repatriation of Investment Income as of March 31, 2019
					Outflow	Inflow
Continental General Plastics (Zhong Shan) Co., Ltd. (“CGPC (ZS)”) (Note 4) CGPC Consumer Products Corporation (“CGPC (CP)”) (Note 4)	Manufacturing and marketing of PVC film and consumer products Manufacturing and marketing of PVC consumer products	$ 616,400 (US$ 20,000 thousand) 46,230 (US$ 1,500 thousand)	Investment through CGPC (BVI) Holding Co., Ltd. (“CGPC (BVI)”) Investment through CGPC (BVI) Holding Co., Ltd. (“CGPC (BVI)”)	$ 616,400 (US$ 20,000 thousand) 46,230 (US$ 1,500 thousand)	$ - -	$ - -	$ 616,400 (US$ 20,000 thousand) 46,230 (US$ 1,500 thousand)	$ 1,103 (US$ 36 thousand) 6 (US$ - thousand)	100.00 100.00	$ 1,103 (US$ 36 thousand) 6 (US$ - thousand)	$ 271,606 (US$ 8,813 thousand) 14,255 (US$ 463 thousand)	$ - -

Accumulated Outward Remittance for Investment in Mainland China as of March 31, 2019 (Notes 1and 3)	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$834,667 (US$27,082 thousand)	$1,056,972 (US$34,295 thousand)	(Note 2)

Note 1: The calculation was based on the spot exchange rate of March 31, 2019.

Note 2: As the Company has obtained the certificate of qualification for operating headquarters issued by the Industrial Development Bureau, MOEA No. 10620424930 on September 22, 2017, the upper limit on investment in mainland China pursuant to the “Principle of Investment or Technical Cooperation in Mainland China” is not applicable.
Note 3: QuanZhou Continental General Plastics Co., Ltd. (“CGPC (QZ)”) and Union (Zhong Shan) Co., Ltd. (“Union (ZS)”) completed dissolution procedures, and CGPC (BVI) retrieved the residual assets. The shares of Continental General Plastics (San He) Co., Ltd. (“CGPC (SH)”) were fully sold, and CGPC (BVI) retrieved the residual assets. However, the amount of capital has not been wired back to Taiwan. The accumulated amount includes the investment amount of CGPC (QZ) of $21,081 thousand (US$684 thousand), the investment amount of Union (ZS) of $27,676 thousand (US$898 thousand) and the investment amount of CGPC (SH) of $123,280 thousand (US$4,000 thousand).

Note 4: The board of directors of the Company passed a resolution to dissolve CGPC (ZS) and CGPC (CP) on October 24, 2011. As of March 31, 2019, the dissolution procedures have not yet been completed.

Note 5: All the transactions were written off when preparing the consolidated financial statements. The investment income (loss) was recognized based on financial statements which were not reviewed by auditors. See Note 13.

62 -

Balance at January 1 Effect of change in tax rate Recognized during the period Exchange differences on translating the financial statements of foreign operations Related income tax Share of exchange differences of associates accounted for using the equity method Balance at March 31 Unrealized gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized during the period Unrealized loss on equity instruments Share of gain (loss) of associates accounted for using the equity method Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2019 2018 $ (15,825) $ (19,583) - (2,020) 7,699 (4,198) (1,540) 840 496 396 $ (9,170) $ (24,565) For the Three Months Ended March 31
		2019 $ 57,842 (4,155) 2,458 $ 56,145	2018 $ 56,912 (5,053) (4,230) $ 47,629

AI assistant

CGPC — Interim / Quarterly Report 2019

51765_rns_2019-12-24_687ea4c3-50b7-4aa5-97be-a8d581a30f92.pdf

China General Plastics Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHINA GENERAL PLASTICS CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

 IFRS 16 “Leases”

Definition of a lease

The Group as lessee

The Group as lessor

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

2019

a) The Group as lessor

a) The Group as lessor

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Lessees’ Incremental Borrowing Rates

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FVTPL

8. FINANCIAL ASSETS AT FVTOCI

Investments in Equity Instruments at FVTOCI

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

March 31, 2019

b. Other receivables

11. INVENTORIES

12. DISCONTINUED OPERATIONS

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

b. Aggregate information of associates that are not individually material

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

d. Other lease information

2018

17. INVESTMENT PROPERTIES

18. INTANGIBLE ASSETS

19. PREPAYMENTS FOR LEASES

20. BORROWINGS

21. NOTES PAYABLE AND TRADE PAYABLES

22. OTHER PAYABLES - CURRENT

24. RETIREMENT BENEFIT PLANS

25. EQUITY

b. Capital surplus

c. Retained earnings and dividends policy

d. Special reserve

e. Other equity items

26. REVENUE

a. Revenue from contracts with customers

b. Contract balances

27. NET PROFIT FROM CONTINUING OPERATIONS

a. Other income

b. Other gains and losses

c. Interest expense

d. Depreciation and amortization

Accrual rate

Accrual amount

CGPC Interim / Quarterly Report 2019