CST - Annual Report 2018 | FinancialReports.eu

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Hung, Shu-Hua[Wu, Der Feng ]

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1.

2.

3. (1)

New standards, interpretations and amendments endorsed by the FSC effective from 2018 are as follows:

follows:
New Standards,InterpretationsandAmendments	Effective date by International Accounting StandardsBoard
Classification and measurement of share-based payment transactions (amendments to IFRS 2) Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts (amendments to IFRS 4) IFRS 9, Financial instruments IFRS 15, Revenue from contracts with customers Clarifications to IFRS 15, Revenue from contracts with customers (amendments to IFRS 15) Disclosure initiative (amendments to IAS 7) Recognition of deferred tax assets for unrealised losses (amendments to IAS 12) Transfers of investment property (amendments to IAS 40) IFRIC 22, Foreign currency transactions and advance consideration	January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 January 1, 2017 January 1, 2018 January 1, 2018

follows:

New Standards,InterpretationsandAmendments

Effective date by
International Accounting
StandardsBoard

Classification and measurement of share-based payment transactions
(amendments to IFRS 2)
Applying IFRS 9
Financial instruments
with IFRS 4
Insurance
contracts
(amendments to IFRS 4)
IFRS 9,
Financial instruments
IFRS 15,
Revenue from contracts with customers
Clarifications to IFRS 15,
Revenue from contracts with customers
(amendments to IFRS 15)
Disclosure initiative (amendments to IAS 7)
Recognition of deferred tax assets for unrealised losses (amendments to
IAS 12)
Transfers of investment property (amendments to IAS 40)
IFRIC 22,
Foreign currency transactions and advance consideration

January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2017
January 1, 2017
January 1, 2018
January 1, 2018

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(i)
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(iii)

(2)

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New Standards,Interpretations and Amendments I	Effective date by nternational Accounting Standards Board
Amendments to IFRS 9, Prepayment features with negative compensation FRS 16, Leases Amendments to IAS 19, Plan amendment, curtailment or settlement Amendments to IAS 28, Long-term interests in associates and joint ventures FRIC 23, Uncertainty over income tax treatments Annual improvement to IFRSs 2015-2017	January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019

(3)

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			Effective date by
			International Accounting
New Standards,Interpretations and Amendments			Standards Board
Amendments to IFRS 10 and IAS 28,		Sale or contribution of assets	To be determined by
between	an investor and its associate or joint venture		International Accounting Standards Board
IFRS 17,	Insurance contracts		January 1, 2021

(2)

Financial assets at fair value through other comprehensive income/Available-for-sale financial assets measured at fair value.

(3)

Name of investor	Name of subsidiary	Main business activities	June 30, 2018 December 31,2017 June 30, 2017 100 100 100 Ownership (%)	June 30, 2018 December 31,2017 June 30, 2017 100 100 100 Ownership (%)	Description
			June 30, 2018	December 31,2017
CHENG SHIN RUBBER IND. CO., LTD. I	MAXXIS nternational Co., Ltd.	Holding company	100	100

Name of investor	Name of subsidiary	Main business activities		June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 100 100 100 - - 97 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - 100 100 100 60 60 60 100 100 100 Ownership (%)	June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 100 100 100 - - 97 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - 100 100 100 60 60 60 100 100 100 Ownership (%)	Description Note 7 Notes 5 , 8 Note 7 Note 7 Note 7 Note 7 Notes 6 , 9 Note 3
				June 30, 2018	December 31,2017
CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. CHENG SHIN RUBBER IND. CO., LTD. MAXXIS International Co., Ltd. MAXXIS International Co., Ltd. MAXXIS International Co., Ltd.	CST Trading Ltd. MAXXIS Trading Ltd. CHENG SHIN RUBBER USA, INC. CIAO SHIN CO., LTD. CHENG SHIN RUBBER CANADA, INC. MAXXIS Tech Center Europe B.V. PT MAXXIS International Indonesia Maxxis Rubber India Private Limited MAXXIS (Taiwan) Trading CO., LTD. PT MAXXIS Trading INDONESIA TIANJIN TAFENG RUBBER IND CO., LTD. CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD. MAXXIS International (HK) Ltd.	Holding company Holding company Import and export of tires Investment in various business Import and export of tires Technical center Production and sales of various types of tires Production and sales of various types of tires Wholesale and retail of tires Large-amount trading of vehicles parts and accessories Production and sales of various types of tires Production and sales of various types of tires Holding company		100 100 100 - 100 100 100 100 100 100 100 60 100	100 100 100 - 100 100 100 100 100 100 100 60 100

Name of investor	Name of subsidiary	Main business activities		June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 100 100 100 25 25 25 100 100 100 100 100 100 50 50 50 30 30 30 70 70 70 Ownership (%)	June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 100 100 100 25 25 25 100 100 100 100 100 100 50 50 50 30 30 30 70 70 70 Ownership (%)	Description Note 2 Note 1 Note 1
				June 30, 2018	December 31,2017
MAXXIS International (HK) Ltd. MAXXIS International (HK) Ltd. MAXXIS International (HK) Ltd. MAXXIS International (HK) Ltd. CST Trading Ltd. Cheng Shin International (HK) Ltd. Cheng Shin International (HK) Ltd. Cheng Shin International (HK) Ltd. CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.	CHENG SHIN RUBBER (XIAMEN) IND., LTD. XIAMEN CHENG SHIN ENTERPRISE CO., LTD. CHENG SHIN (XIAMEN) INTL AUTOMOBILE CULTURE CENTER CO., LTD. CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD. Cheng Shin International (HK) Ltd. CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD. CHENG SHIN TOYO (KUNSHAN) MACHINERY CO., LTD. CHENG SHIN TIRE & RUBBER (CHONGQING) CO., LTD. CHENG SHIN TIRE & RUBBER (CHONGQING) CO., LTD.	Production and sales of various types of tires Production and sales of various types of tires Research, development, testing and exhibition of tires and automobile accessory products and related products, and management of racing tracks Production and sales of various types of tires Holding company Production and sales of various types of tires Production, sales and maintenance of models Production and sales of various types of tires Production and sales of various types of tires		100 100 100 25 100 100 50 30 70	100 100 100 25 100 100 50 30 70

Name of investor	Name of subsidiary	Main business activities		June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 95 95 95 40 40 40 49 49 49 75 75 75 - - - 100 100 100 100 100 100 100 100 100 Ownership (%)	June 30, 2018 December 31,2017 June 30, 2017 100 100 100 100 100 100 95 95 95 40 40 40 49 49 49 75 75 75 - - - 100 100 100 100 100 100 100 100 100 Ownership (%)	Description Note 3 Note 2 Note 4 Note 7
				June 30, 2018	December 31,2017
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD. MAXXIS Trading Ltd. CHENG SHIN RUBBER (XIAMEN) IND., LTD. CHENG SHIN RUBBER (XIAMEN) IND., LTD. CHENG SHIN RUBBER (XIAMEN) IND., LTD. CHENG SHIN RUBBER (XIAMEN) IND., LTD. CHENG SHIN RUBBER (XIAMEN) IND., LTD. CHENG SHIN RUBBER (XIAMEN) IND., LTD. MAXXIS Holding (BVI) Co., Ltd. MAXXIS Holding (BVI) Co., Ltd.	KUNSHAN MAXXIS TIRE CO., LTD. MAXXIS Holding (BVI) Co., Ltd. CHIN CHOU CHENG SHIN ENTERPRISE CO., LTD. CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD. CHENG SHIN LOGISTIC (XIAMEN) CO., LTD. CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD. CHENG SHIN (ZHANGZHOU) MECHANICAL & ELECTRICAL ENGINEERING CO., LTD. XIAMEN ESTATE CO., LTD. MAXXIS International (Thailand) Co., Ltd. Cheng Shin Rubber (Vietnam) IND Co., Ltd.	Retail of accessories for rubber tires Holding company Retail of accessories for rubber tires Production and sales of various types of tires International container transportation business Production and sales of various types of tires Manufacturing and sales of equipment Construction and trading of employees housing Production and sales of various types of tires Production and sales of various types of tires		100 100 95 40 49 75 - 100 100 100	100 100 95 40 49 75 - 100 100 100

(4)

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(16)

5.

6.

Cash on hand and petty cash (revolving funds) Checking deposit Demand deposits Time deposits Interest rate range Time deposits	June 30,2018 December 31,2017 $ 3,726 3,104 $ 1,698,749 1,776,577 24,045,656 17,646,021 8,022,326 11,492,761 $ 33,770,457 30,918,463 $ 1.76%~3.93% 0.01%~4.58%	June 30,2017
		2,982 $ 1,927,984 23,165,456 8,729,261
		33,825,683 $
		1.00%~4.50%

(2)

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Items Current items: Equity instruments Listed stocks Valuation adjustment Total Non-current items: Equity instruments Unlisted stocks	June 30,2018
	8,665 15,684
	24,349 $
	58,187 $

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Year ended December 31, 2018

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income ($ 3,169)

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(3)

Notes receivable Less: Loss allowance Accounts receivable Less: Loss allowance	June 30,2018 2,682,481 $ 9,277) ( 2,673,204 $ 11,277,918 $ 16,896) ( 11,261,022 $	June 30,2018 2,682,481 $ 9,277) ( 2,673,204 $ 11,277,918 $ 16,896) ( 11,261,022 $	December 31,2017 2,307,762 $ 9,277) (	December 31,2017 2,307,762 $ 9,277) (	June 30,2017 1,503,165 $ 9,277) (	June 30,2017 1,503,165 $ 9,277) (
		2,673,204 $ 11,277,918 $ 16,896) ( 11,261,022 $		2,298,485 $ 9,870,136 $ 17,551) ( 9,852,585 $		1,493,888 $ 11,418,301 $ 12,905) ( 11,405,396 $

Without past due Up to 30 days 31 -90 days 91 -180 days Over 181 days	Accounts receivable Notes receivable June 30,2018	Accounts receivable Notes receivable June 30,2018	Accounts receivable Notes receivable June 30,2018		December	December	Notes receivable 31,2017
			Notes receivable		Accounts receivable
	9,187,330 $ 1,238,872 524,225 178,836 148,655 11,277,918 $		2,682,481 $ - - - - 2,682,481 $		8,050,196 $ 1,297,167 377,313 102,816 42,644 9,870,136 $		2,307,762 $ - - - - 2,307,762 $

Without past due Up to 30 days 31 -90 days 91 -180 days Over 181 days	Accounts receivable Notes receivable June 30,2017	Accounts receivable Notes receivable June 30,2017	Accounts receivable Notes receivable June 30,2017
			Notes receivable
	9,841,839 $ 926,621 419,904 186,146 43,791 11,418,301 $		1,503,165 $ - - - - 1,503,165 $

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(4)

Allowance for valuation loss Raw material 5,723,244 $ - $ 5,723,244 $ Work in progress 3,300,401 - 3,300,401 Finished goods 7,071,931 31,089) ( 7,040,842 Land in progress 825,737 - 825,737 Construction in progress 1,848,551 - 1,848,551 Inventory in transit 706,181 - 706,181 19,476,045 $ 31,089) ($ 19,444,956 $ June 30,2018 Cost Book value Cost Allowance for valuation loss Book value Raw materials 6,434,449 $ - $ 6,434,449 $ Work in process 2,852,070 - 2,852,070 Finished goods 6,452,472 33,555) ( 6,418,917 Land in progress 820,703 - 820,703 Construction in progress 1,388,861 - 1,388,861 Inventory in transit 1,269,340 - 1,269,340 19,217,895 $ 33,555) ($ 19,184,340 $ Cost Allowance for valuation loss Book value Raw materials 6,178,642 $ - $ 6,178,642 $ Work in process 2,980,783 - 2,980,783 Finished goods 6,349,902 35,489) ( 6,314,413 Land in progress 806,500 - 806,500 Construction in progress 945,184 - 945,184 Inventory in transit 475,666 - 475,666 17,736,677 $ 35,489) ($ 17,701,188 $ December 31,2017 June 30,2017 Three-month period ended June 30,2018 Three-month period ended June 30,2017 Cost of goods sold 21,692,106 $ 21,975,797 $ Loss on inventory retirement 2,027 - Gain on physical inventory 10) ( 436) ( Revenue from sale of scraps 44,984) ( 43,679) ( Loss on (gain on reversal of) decline in market value 421 930) ( 21,649,560 $ 21,930,752 $	June 30,2018	June 30,2018	June 30,2018	5,723,244 $ 3,300,401 7,040,842 825,737 1,848,551 706,181 19,444,956 $ Book value	5,723,244 $ 3,300,401 7,040,842 825,737 1,848,551 706,181 19,444,956 $ Book value

			Allowance for valuation loss		Book value
					6,434,449 $ 2,852,070 6,418,917 820,703 1,388,861 1,269,340
					19,184,340 $

					Book value
					6,178,642 $ 2,980,783 6,314,413 806,500 945,184 475,666
					17,701,188 $

Cost of goods sold Loss on inventory retirement Loss (gain) on physical inventory Revenue from sale of scraps Gain on reversal of decline in market value	Six-month period ended June 30,2018	Six-month period ended June 30,2017
	$ 42,854,103 3,490 713 ( 83,262) (2,466) $42,772,578	$ 43,306,826 2 ( 1,189) ( 82,112) (2,103) $43,221,424

(5)

Share of profit (loss) of associates and joint ventures accounted for using equity method Other comprehensive income - net of tax Total comprehensive income Share of profit (loss) of associates and joint ventures accounted for using equity method Other comprehensive income - net of tax Total comprehensive income	Three-month period ended June 30,2018	Three-month period ended June 30,2017
	496 $ 3,699 4,195 $ Six-month period ended June 30,2018	143) ($ 690 547 $ Six-month period ended June 30,2017
	2,892) ($ 3,810 918 $	2,103 $ 247 2,350 $

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Amount capitalized Range of the interest rates for capitalization	Six-month period ended June 30,2018		Six-month period ended June 30,2017
	40,964 $ 0.40%~4.75%		9,529 $ 0.35%~4.75%

(7)

	Six-month	period ended	period ended	June 30,2018	June 30,2018
Opening net book amount as at January1 $ 336,339 478,710 815,049 $ 151,355) ($ 51,038) ($ $ 612,656	Additions - $ 1,237 1,237 $ 12,376) ($ - $ Six-month		Transfer		Exhchange rate differences		Closing net book amount as at June 30
		- $ 914 914 $ - $ - $ period ended		- $ 2,744 2,744 $ 671) ($ - $ June 30,2017		336,339 $ 483,605 819,944 $ 164,402) ($ 51,038) ($ 604,504 $
Opening net book amount as at January1 $ 336,339 27,766 364,105 $ 21,282) ($ 51,038) ($ $ 291,785	Additions - $ - - $ 306) ($ - $		Transfer - $ - - $ - $ - $		Exchange rate differences		Closing net book amount as at June 30
					- $ - - $ - $ - $	336,339 $ 27,766 364,105 $ 21,588) ($ 51,038) ($ 291,479 $

Rental income from investment property Rental income from investment property		Three-month period ended June 30,2018	Three-month period ended June 30,2017
		7,740 $ Six-month period ended June 30,2018	2,181 $ Six-month period ended June 30,2017
		15,411 $	4,362 $

(8)

Land-use right Intangible assets Others	June 30,2018 5,145,204 $ 111,322 906,624 6,163,150 $	December 31,2017 5,198,693 $ 110,233 185,200 5,494,126 $	June 30,2017 5,073,321 $ 9,564 186,423 5,269,308 $

(9)

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Type ofborrowings Bank borrowings Bank unsecured borrowings	June 30,2018 22,390,771 $	Interest raterange 0.54% 4.70%	Collateral
			None

Type of borrowings Bank borrowings Bank unsecured borrowings Type of borrowings Bank borrowings Bank unsecured borrowings	December31,2017 18,508,493 $ June 30,2017 21,503,627 $	Interest rate range 0.70%~4.70% Interest rate range 0.55%~8.10%	Collateral
			None Collateral
			None

(10)
		June 30,2018	December 31,2017				June 30,2017
Dividend payable	$	5,835,205	$	-		$	9,772,006
Wages and salaries payable		1,086,256		1,329,008			1,076,202
Payable on machinery and		1,533,617		2,213,781			1,221,654
equipment
Employee bonus payable		228,364		482,544			429,306
Compensation due to directors		175,495		130,202			359,823
and supervisors
Other accrued expenses		1,870,489		1,855,874			2,078,659
Others		980,064		1,010,624			1,123,337
	$	11,709,490	$	7,022,033		$	16,060,987
(11)
		June 30,2018	December 31,2017				June 30,2017
Long-term liabilities due within
one year	$	6,567,756	$	4,902,300	$		8,951,180
Advance receipts		361		811,749			637,691
Refund liabilities		181,569		-			-
Others		137,945		222,551			405,976
	$	6,887,631	$	5,936,600	$		9,994,847

(12)

Bonds payable -issued on 2013 Bonds payable -issued on 2014 Bonds payable -issued on 2016 Bonds payable -issued on 2017 Less: Current portion	June 30,2018 1,900,000 $ 4,800,000 5,000,000 7,000,000 18,700,000 1,900,000) ( ( 16,800,000 $	December 31,2017 1,900,000 $ 4,800,000 5,000,000 7,000,000 18,700,000 1,900,000) ( 16,800,000 $	June 30,2017 3,800,000 $ 4,800,000 5,000,000 - 13,600,000 1,900,000) 11,700,000 $

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(13)

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Type ofborrowings	Borrowing period andrepayment term	Interest rate range	Collateral		June 30,2018
Installment-repayment borrowings Unsecured borrowings Other borrowings Unsecured borrowings Less: Current portion	Principal is repayabl in installment until March, 2025. Principal is repayabl in November, 2018 a the maturity.	e 0.97% 4.75% e t 4.75%	None None	(	36,035,900 $ 227,354 36,263,254 4,667,756) 31,595,498 $

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2017
Installment-repayment borrowings Unsecured borrowings Other borrowings Unsecured borrowings Less: Current portion Type ofborrowings	Principal is repayable in installment until September, 2024. Principal is repayable in November, 2018 at the maturity. Borrowing period andrepayment term	0.97% 5.13% 4.75% Interest rate range	None None Collateral	35,435,510 $ 225,968 35,661,478 3,002,300) ( 32,659,178 $ June 30,2017
Installment-repayment borrowings Unsecured borrowings Other borrowings Unsecured borrowings Less: Current portion	Principal is repayable in installment until September, 2024. Principal is repayable in November, 2018 at the maturity.	0.84%~4.75% 4.75%	None None	31,075,285 $ 114,393 31,189,678 7,051,180) ( 24,138,498 $

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	Currency USD RMB THB EUR	June 30,2018 16,071,671 $ 5,851,939 1,847,400 -	December 31,2017 15,347,956 $ 5,651,239 1,835,200 -	June 30,2017 14,947,288 $ 282,629 1,800,400 152,768
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According to the appropriation of earnings proposed by the Board of Directors, at
dividends, and cash dividends shall account for at least 10% of the total dividends distributed.

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Year ended December 31,2017	Year ended December 31,2017	Year ended December 31,2016	Year ended December 31,2016
Amount	Dividend per share(in dollars)	Amount	Dividend per share(in dollars)
$ 554,179 1,122,239 5,834,548 $7,510,966	$1.8	$ 1,325,090 703,659 9,724,246 $11,752,995	$3.0

(18)

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Currency translation			2018
	Unrealized gain (loss) on valuation of equity instruments at fair value through profit or loss		Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income	Unrealized gain on available- for-sale financial assets 41,593 $ 41,593) ( - - - - - - - $
4,471,654) ($ - - - 342,737 93,079 4,763 953) ( 4,032,028) ($	- $ 22,740 27 22,767) ( - - - - - $		- $ 18,853 3,169) ( - - - - - 15,684 $
		- $

			2017
	Currencytranslation
($ ( ( ($		3,358,274) $ - ( 2,453,179) 417,040 298 51) 5,394,166) $ Three-month period ended June 30,2018
	($		$

		28,209,200 $

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	Types	of tire	Total
Taiwan 1,716,181 $ 1,123,071 2,839,252 $	China 14,687,708 $ 1,653,504 16,341,212 $	US 1,925,490 $ 1,243,210 3,168,700 $
			28,209,200 $ 4,580,426
			32,789,626 $

	Types of tire	Types of tire	Total
Taiwan 3,259,039 $ 2,040,357 5,299,396 $	China 29,014,465 $ 3,092,840 32,107,305 $	US 3,967,018 $ 2,365,481 6,332,499 $
			55,896,337 $ 8,788,659
			64,684,996 $

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Contract liabilities: Contract liabilities- advance sales receipts Contract liabilities- customer loyalty programmes Total	June 30,2018
	503,470 $ 26,729
	530,199 $

(20)

(20)
(21)	Three-month period ended June 30,2018 Three-month period ended June 30,2017 Interest income 88,069 $ 77,154 $ Grant revenue 141,294 484,096 Other income 126,711 52,871 356,074 $ 614,121 $ Six-month period ended June 30,2018 Six-month period ended June 30,2017 Interest income 170,317 $ 157,483 $ Grant revenue 191,831 602,215 Other income 186,824 113,857 548,972 $ 873,555 $ Three-month period ended June 30,2018 Three-month period ended June 30,2017 Net currency exchange gain 10,073 $ 120,264 $ Loss on disposal of property, plant and equipment 18,455) ( 6,605) ( Gains on disposals of investments - 19,828 Net loss on financial assets and liabilities at fair value through profit or loss 314) ( - Other expenses 59,129) ( 30,278) ( 67,825) ($ 103,209 $	Three-month period ended June 30,2018		Three-month period ended June 30,2017
		88,069 $ 141,294 126,711 356,074 $ Six-month period ended June 30,2018		$	77,154 484,096 52,871 614,121 Six-month period ended June 30,2017
				$

		$	170,317 $ 191,831 186,824 548,972 $ Three-month period ended June 30,2018	$	157,483 602,215 113,857 873,555 Three-month period ended June 30,2017
		$		$
			10,073 $ 18,455) ( - 314) ( 59,129) ( 67,825) ($		120,264 $ 6,605) ( 19,828 - 30,278) ( 103,209 $
						103,209 $

	Six-month period ended June 30,2018	Six-month period ended June 30,2017 385,482) ($ 11,649) ( 19,828 - 63,569) ( 440,872) ($ Three-month period ended June 30,2017
	157,800) ($ 41,673) ( - 436 164,575) ( 363,612) ($ Three-month period ended June 30,2018
403,821 $ 50,923 2,751 457,495 21,261) ( 436,234 $ Six-month period ended June 30,2018		251,183 $ 40,289 2,821 294,293 5,683) ( 288,610 $ Six-month period ended June 30,2017
794,912 $ 101,286 5,455 901,653 40,964) ( 860,689 $		449,769 $ 72,126 5,735 527,630 9,529) ( 518,101 $

(23)

Employee benefit expense Wages and salaries Labour and health insurance fees Pension costs Directors' remuneration Other personnel expenses Raw materials and supplies used Depreciation charges on property, plant and equipment Depreciation charges on investment property Amortisation charges on intangible assets Employee benefit expense Wages and salaries Labour and health insurance fees Pension costs Directors remuneration Other personnel expenses Raw materials and supplies used Depreciation charges on property, plant and equipment Depreciation charges on investment property Amortisation charges on intangible assets		Three-month period ended June 30,2018		Three-month period ended June 30,2017
		3,107,217 $ 187,112 156,247 17,316 232,864 3,700,756 $ 15,137,713 $ 3,014,287 $ 6,239 $ 12,030 $ Six-month period ended June 30,2018		2,936,286 $ 162,767 156,591 36,678 220,071 3,512,393 $ 17,790,769 $ 2,787,512 $ 153 $ 1,484 $ Six-month period ended June 30,2017
		6,050,663 $ 355,661 306,689 43,480 463,340 7,219,833 $ 29,804,573 $ 5,988,430 $ 12,376 $ 23,012 $		5,665,058 $ 336,750 304,873 73,048 452,743 6,832,472 $ 32,529,636 $ 5,680,192 $ 306 $ 2,892 $

(24)

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Current tax: Current tax on profits for the period Additional 10% income tax imposed on unappropriated earnings Prior year income tax (over) underestimation Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	(	Three-month period ended June 30,2018	Three-month period ended June 30,2017
		469,696 $ - 25,142) 444,554 229,374 673,928 $	456,221 $ 143,020 45,884 645,125 199,485 844,610 $

Six-month period ended June 30,2018 Six-month period ended June 30,2017 Current tax: Current tax on profits for the period 843,270 $ 861,744 $ Additional 10% income tax imposed on unappropriated earnings - 143,020 Prior year income tax (over) underestimation 26,237) ( 141,285 Total current tax 817,033 1,146,049 Deferred tax: Origination and reversal of temporary differences 447,330 434,346 Impact of change in tax rate 114,380 - Total deferred tax 561,710 434,346 Income tax expense 1,378,743 $ 1,580,395 $ Three-month period ended June 30,2018 Three-month period ended June 30,2017 Currency translation differences $127,287 ($246,545) Six-month period ended June 30,2018 Six-month period ended June 30,2017 Generated during the period : Currency translation differences $22,505 $416,989 Impact of change in tax rate: Currency translation differences 69,621 - Remeasurement of defined benefit obligations 25,893 - Income tax benefit from other comprehensive income $118,019 $416,989	Six-month period ended June 30,2018 Six-month period ended June 30,2017 Current tax: Current tax on profits for the period 843,270 $ 861,744 $ Additional 10% income tax imposed on unappropriated earnings - 143,020 Prior year income tax (over) underestimation 26,237) ( 141,285 Total current tax 817,033 1,146,049 Deferred tax: Origination and reversal of temporary differences 447,330 434,346 Impact of change in tax rate 114,380 - Total deferred tax 561,710 434,346 Income tax expense 1,378,743 $ 1,580,395 $ Three-month period ended June 30,2018 Three-month period ended June 30,2017 Currency translation differences $127,287 ($246,545) Six-month period ended June 30,2018 Six-month period ended June 30,2017 Generated during the period : Currency translation differences $22,505 $416,989 Impact of change in tax rate: Currency translation differences 69,621 - Remeasurement of defined benefit obligations 25,893 - Income tax benefit from other comprehensive income $118,019 $416,989	Six-month period ended June 30,2018 843,270 $ - 26,237) ( 817,033 447,330 114,380 561,710 1,378,743 $ Three-month period ended June 30,2018	Six-month period ended June 30,2018		Six-month period ended June 30,2017

	$

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(25)

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Three-monthperiod ended June 30,2018	Three-monthperiod ended June 30,2018
	Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) 1,373,720 $ 3,241,416 0.42 $ 1,373,720 3,241,416 - 797 1,373,720 $ 3,242,213 0.42 $ Three-monthperiod ended June 30,2017	Earnings per share (in dollars)
		0.42 $
		0.42 $
	Amount Weighted average number of ordinary shares outstanding after tax (shares in thousands) 1,722,389 $ 3,241,416 1,722,389 3,241,416 - 719 1,722,389 $ 3,242,135	Earnings per share (in dollars)
		0.53 $
		0.53 $

Six-month period ended June 30, 2018

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

Weighted average
number of ordinary Earnings
Amount shares outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent $ 2,588,511 3,241,416 $ 0.80
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 2,588,511 3,241,416
Assumed conversion of all
dilutive potential ordinary shares
-
Employees compensation 2,855
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares $ 2,588,511 3,244,271 $ 0.80
Six-month period ended June 30, 2017
Weighted average
number of ordinary Earnings
Amount shares outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent $ 3,642,945 3,241,416 $ 1.12
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 3,642,945 3,241,416
Assumed conversion of all
dilutive potential ordinary shares
-
Employees compensation 3,654
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares $ 3,642,945 3,245,070 $ 1.12
----- End of picture text -----

(26)

Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the period		Six-month period ended June 30,2018		Six-month period ended June 30,2017
	(	6,474,755 $ 2,213,781 1,533,617) 7,154,919 $		8,498,875 $ 1,049,387 1,221,654) ( 8,326,608 $

(27)

January 1, 2018 Changes in cash flow from financing activities Impact of changes in foreign exchange rate June 30, 2018		Short-term borrowings		Long-term borrowings		Bonds payable		Liabilities from financing activities- gross
		18,508,493 $ 3,611,741 270,537 22,390,771 $		35,661,478 $ 521,897 79,879 36,263,254 $		18,700,000 $ - - 18,700,000 $		72,869,971 $ 4,133,638 350,416 77,354,025 $

7. (1)

Names of related parties

Toyo Tire & Rubber Co., Ltd.

Cheng Shin Holland B.V. New Pacific IND. CD., LTD. MERIDA INDUSTRY CO., LTD. Maxxis (XiaMen) Trading CO., LTD.

Relationship with the Group

Investing company which invested in the Company's subsidiary by using equity method

Investee accounted for using equity method Investee accounted for using equity method The Company's director is the company s chairman The Company's director is the company s representative

Sales of goods:

-Associates

Sales of goods:

-Associates

Three-month period Three-month period ended ended June 30, 2018 June 30, 2017 $ 136,578 $ 146,606 Six-month period ended Six-month period ended June 30, 2018 June 30, 2017 $ 284,928 $ 304,412

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Accounts receivable: Associates	June 30,2018	December 31,2017 119,288 $	June 30,2017 134,367 $ June 30,2017 114,393 $
	103,799 $


Payables due to related parties -Associates	June 30,2018	December 31,2017
	227,354 $	225,968 $	114,393 $

(3)

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Short-term employee benefits Post-employment benefits Short-term employee benefits Post-employment benefits		Three-month period ended June 30,2018	Three-month period ended June 30,2017
		65,957 $ 764 66,721 $ Six-month period ended June 30,2018	77,577 $ 965 78,542 $ Six-month period ended June 30,2017
		131,991 $ 1,528 133,519 $	155,494 $ 1,930 157,424 $

Pledged asset		Bookvalue		Purpose
	June 30,2018	December 31,2017	June 30,2017
Time deposits (Other current assets) Time deposits (Other non- current assets)	15,473 $ - 15,473 $	15,070 $ - 15,070 $	15,185 $ 185	Maintenance bond and product liability insurance Maintenance bond and merchandise delivery guarantee
			15,370 $

9. (1)

(2)

A.

Property, plant and equipment	June 30,2018 5,909,394 $	December 31,2017 6,807,845 $	June 30,2017
			7,837,730 $

B.

Amount of letter of credit that has been issued but not yet used	June 30,2018 341,482 $	December 31,2017 141,240 $	June 30,2017 74,318 $

10.

11.

12. (1)

Total liabilities Total equity Less : Intangible assets Tangible equity Debt-equity Ratio	June 30,2018 104,254,154 $ 80,063,425 $ 111,322) ( ( 79,952,103 $ 130%	December 31,2017 96,192,952 $ 82,891,303 $ 110,233) 82,781,070 $ 116%	June 30,2017 99,526,806 $ 80,021,852 $ 9,564) ( 80,012,288 $ 124%

(2)
A.
			June 30,2018	December 31,2017			June 30,2017
	Financial assets
	Financial assets at fair value	$	24,349	$	-	$	-
	through other comprehensive
	income - current
	Financial assets at fair		58,187		-		-
	value through other comprehensive
	income - noncurrent
	Available-for-sale financial assets		-		69,188		62,089
	- current
	Available-for-sale financial assets		-		58,187		58,187
	- noncurrent
	Financial assets at amortised
	cost/Loans and receivables
	Cash and cash equivalents		33,770,457		30,918,463		38,825,683
	Notes receivable, net		2,673,204		2,298,485		1,493,888
	Accounts receivable
	(including related parties)		11,364,821		9,971,873		11,539,763
	Guarantee deposits paid		96,896		175,988		176,618
	Other financial assets		507,137		556,045		380,088
		$	48,495,051	$	44,048,229	$	47,536,316
	Financial liabilities
	Financial liabilities at fair value through profit or loss - current	$	-	$	408	$	-
	Financial liabilities at amortised cost
	Short-term borrowings		22,390,771		18,508,493		21,503,627
	Contract liabilities - current		530,199		-		-
	Notes payable		516,036		822,160		253,437
	Accounts payable		8,084,668		8,511,030		9,300,993
	Other accounts payable		11,709,490		7,022,033		16,060,987
	Corporate bonds payable
	(including current portion)		18,700,000		18,700,000		13,600,000
	Long-term borrowings
	(including current portion)		36,263,254		35,661,478		31,189,678
	Guarantee deposits received		247,438		251,611		250,008
		$	98,441,856	$	89,477,213	$	92,158,730

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Expectedlossrate 0.00% 0.38% 0.81% 1.59% 3.43%	Totalbookvalue 9,187,330 $ 1,238,872 524,225 178,836 148,655 11,277,918 $	Lossallowance
		- $ 4,708 4,246 2,843 5,099
		16,896 $


At January 1_IAS 39	$	17,551
Adjustments under new standards		-
At January 1_IFRS 9		17,551
Provision for impairment		-
Reversal of impairment loss	(	768)
Effect of exchange rate changes		113
At_June 30	$	16,896

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June 30, 2018

June 30, 2018
Non-derivative financial liabilities	Less than 90 days 10,292,811 $ 8,600,658 11,388,390 1,225 1,343,729 2,104,250	Between 91 and 180 days 5,203,526 $ 46 170 - 1,294,429 -	Between 181 and 365 days 7,642,705 $ - 177,282 - 3,176,641 -	- $ - 143,648 246,213 32,563,795 17,208,300 Over 1year	Total
Short-term borrowings Notes and bills payable Other payables Guarantee deposits Long-term borrowings Bonds payable					23,139,042 $ 8,600,704 11,709,490 247,438 38,378,594 19,312,550

December 31, 2017

December 31, 2017
Short-term borrowings Notes and bills payable Other payables Guarantee deposits Long-term borrowings Bonds payable Derivative financial liabilities: Forward exchange contracts Non-derivative financial liabilities	Less than 90 days 10,166,175 $ 9,333,190 6,642,583 4,358 877,266 - 408 $	Between 91 and 180 days 6,925,431 $ - 6,755 274 307,323 - - $	Between 181 and 365 days 1,875,338 $ - 211,817 - 2,564,269 2,104,250 - $	- $ - 160,878 246,979 34,172,374 17,208,300 - $ Over 1year	Total
					18,966,944 $ 9,333,190 7,022,033 251,611 37,921,232 19,312,550 408 $

June 30, 2017

June 30, 2017
Non-derivative financial liabilities Short-term borrowings Notes and bills payable Other payables Guarantee deposits Long-term borrowings Bonds payable	Less than 90 days 9,474,711 $ 9,554,430 15,518,459 - 3,565,926 2,061,600	Between 91 and 180 days	Between 181 and 365 days 8,253,242 $ - 338,839 - 3,351,317 -	Over 1year	2,209,428 $ 9,554,430 16,060,987 250,008 32,375,876 14,049,700 Total
		4,364,475 $ - 7,614 - 529,842 -		- $ - 196,075 250,008 24,928,791 11,988,100

(3)

	June 30,2018	June 30,2018
Carrying amount 18,700,000 $		Fairvalue
	Level 1 Level 2 - $ 18,861,716 $ December31,2017		Level 3
			- $

Carrying amount 18,700,000 $		Fair value
	Level 1 Level 2 - $ 18,779,641 $ June 30,2017		Level3
			- $

Carrying amount 13,600,000 $		Fairvalue
	Level 1 - $	Level 2 13,727,493 $	Level 3
			- $

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Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income - equity securities	Level 1 24,349 $	June 30,2018	June 30,2018
		Level 2 -	Level 3 58,187 $	Total
				82,536 $

December 31,2017	December 31,2017
Level 2 - $ 408 $ June 30	Level 3 58,187 $ - $ ,2017	Total
		127,375 $
		408 $

Level 2 - $	Level 3 58,187 $	Total
		120,276 $

characteristics

(4)

IAS 39 Transferred into and measured at fair value through profit or loss Transferred into and measured at fair value through other comprehensive income - equity IFRS 9	Measured at fair value through profit or loss	Measured at fai value through othe comprehensive income - equity	Measured at fai value through othe comprehensive income - equity	r r Available-for sale - equity	r r Available-for sale - equity	Retained earnings	Other equity
	- $ 41,670 - 41,670 $		$ 85,705	- 127,375 $ - 41,670) ( 85,705) ( - $		- $ 22,740 - 22,740 $	41,593 $ 22,740) ( - 18,853 $
			85,705 $		- $

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ems urrent items: Financial liabilities held for trading Forward foreign exchange contracts	December 31,2017 408 $

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Types of instrument Current items: Forward foreign exchange contracts USD converted to NTD	Contract amount (Notionalprincipal) December USD 6 million	31,2017
		Contractperiod 2017.11.23~ 2018.1.29

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Items Current items: Listed stocks Funds Subtotal Available-for-sale financial assets Valuation adjustment Total Non-current items: Unlisted shares	December 31,2017 8,665 $ 18,930 27,595 41,593 69,188 $ 58,187 $	June 30,2017 8,665 $ 18,930 27,595 34,494 62,089 $ 58,187 $

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Distributor Car assembly factory Others Up to 30 days 1 to 90 days 1 to 180 days Over 181 days	December31,2017 3,305,277 $ 4,461,585 283,334 8,050,196 $ December 31,2017 1,297,167 $ 377,313 102,816 42,644 1,819,940 $	June 30,2017
		5,109,073 $ 4,386,056 346,710
		9,841,839 $
		June 30,2017
		926,621 $ 419,904 186,146 43,791
		1,576,462 $

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In At January 1 $ Provision for impairment Effect of exchange rate changes At June 30 $	Six-monthperiod ended June 30,2017	Six-monthperiod ended June 30,2017	Six-monthperiod ended June 30,2017
	dividualprovision - - - -	Group provision 12,944 $ 31 70) ( 12,905 $	Total 12,944 $ 31 70) (
			12,905 $

(5)

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June 30, 2018

				June 30,2018
				Balance by using		Effects from
		Balance by	previous accounting			changes in
Balance sheet items	usingIFRS 15			policies	accounting policy
Contract liabilities	$	530,199	$	-	$	530,199
Other current liabilities
- deferred revenue		-		26,729	(	26,729)
- Advance sales receipts		-		503,470	(	503,470)
Note: Statement of comprehensive income was not effected.

13.

14.

Six-month period ended June 30, 2018

CHENG SHIN RUBBER IND. CO., LTD. and MAXXIS (Taiwan) Trading CO.,LTD.	CHENG SHIN RUBBER (XIAMEN) IND.,LTD.	CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD. and CHENG SHIN PETREL TIRE (XIAMEN) CO.,LTD.	MAXXIS INTERNATIONAL (THAILAND) CO.,LTD.	Total
7,384,068 $ 4,458,358 11,842,426 $ 1,801,887 $ (	8,219,966 $ 703,810 8,923,776 $ 85,508) $	19,036,677 $ 368,907 19,405,584 $ 1,707,131 $	5,938,763 $ 1,039,986 6,978,749 $ 214,095) ($	51,512,719 $ 8,493,149
				60,005,868 $
				4,702,626 $

Six-month period ended June 30, 2017

CHENG SHIN RUBBER IND. And MAXXIS (Taiwan) Trading CO.,LTD.	CHENG SHIN RUBBER (XIAMEN) IND., LTD.	CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD. and CHENG SHIN PETREL TIRE (XIAMEN) CO.,LTD.	MAXXIS INTERNATIONAL (THAILAND) CO.,LTD.	Total
7,270,107 $ 4,732,369 12,002,476 $ 1,496,666 $	8,786,008 $ 898,685 9,684,693 $ 746,808 $	17,823,749 $ 343,685 18,167,434 $ 1,093,971 $	7,255,200 $ 774,563 8,029,763 $ 2,482) ($	52,705,667 $ 8,866,117
				61,571,784 $
				4,934,095 $

(4)

A.

Adjusted revenue from reportable segments Adjusted revenue from other operating segments Total operating segments Elimination of inter-segment revenue Total consolidated operating revenue		Six-monthperiods ended June 30,	Six-monthperiods ended June 30,	Six-monthperiods ended June 30,
		2018		2017
	(	60,005,868 $ 4,679,128 64,684,996 8,788,659) 55,896,337 $		61,571,784 $ 4,661,219 66,233,003 9,222,876) ( 57,010,127 $

B. continuing

operations is provided as follows:

operations is provided as follows:	continuing	continuing
Adjusted income from reportable segments before income tax Adjusted (loss)income from other operating segments before income tax Total operating segments Income from elimination of inter-segment revenue Income from continuing operations before income tax	2018 2017 Six-monthperiods ended June 30,
	2018
	4,702,626 $ 710,598) ( 3,992,028 2,746) ( 3,989,282 $	4,934,095 $ 298,608 5,232,703 32,664 5,265,367 $

Maximum	outstanding	balance during Ceiling on Amount of	the six-month General total loans transactions Reason for Allowance	period ended Balance at June Actual amount No. ledger Is a related Collateral Limit on loans granted to a granted Nature of with the short-term for doubtful	Item Value June 30, 2018 30, 2018 drawn down Note 1 Creditor Borrower account party singleparty Note 2 Note 3 Footnote Interest rate loan borrower financing accounts	1 XIAMEN CHENG SHIN CHENG SHIN RUBBER Other Yes 3,636,360 $ 3,596,700 $ 3,264,548 $ 3.446%~4.75% Note 4 - $ Operating - $ None - $ 4,849,954 $ 8,083,257 $ Note 6	ENTERPRISE CO., LTD. (ZHANGZHOU) IND receivables capital	CO., LTD.	1 XIAMEN CHENG SHIN CHENG SHIN RUBBER Other Yes 1,872,000 1,845,600 1,591,830 4.75% Note 4 - Operating - None - 4,849,954 8,083,257 Note 6	ENTERPRISE CO., LTD. (XIAMEN) IND., LTD. receivables capital	1 XIAMEN CHENG SHIN CHENG SHIN (XIAMEN) INTL Other Yes 234,000 230,700 230,700 6.65% Note 4 - Operating - None - 4,849,954 8,083,257 Note 6	ENTERPRISE CO., LTD. AUTOMOBILE CULTURE receivables capital	CENTER CO., LTD.	2 CHENG SHIN PETREL CHENG SHIN RUBBER Other Yes 2,768,400 2,768,400 2,676,120 4.75% Note 4 - Operating - None - 7,817,241 13,028,736 Note 6	TIRE (XIAMEN) CO., (ZHANGZHOU) IND receivables capital	LTD. CO., LTD.	2 CHENG SHIN PETREL CHENG SHIN RUBBER Other Yes 935,000 - - 4.75% Note 4 - Operating - None - 7,817,241 13,028,736 Note 6	TIRE (XIAMEN) CO., (ZHANGZHOU) IND receivables capital	LTD. CO., LTD.	2 CHENG SHIN PETREL XIAMEN ESATE CO., LTD. Other Yes 468,000 461,400 369,120 4.75% Note 4 - Operating - None - 7,817,241 13,028,736 Note 6	TIRE (XIAMEN) CO., receivables capital	LTD.	3 CHENG SHIN RUBBER CHENG SHIN RUBBER Other Yes 2,763,600 1,845,600 645,960 4.75% Note 4 - Operating - None - 14,011,453 23,352,421 Note 6	(XIAMEN) IND., LTD. (ZHANGZHOU) IND receivables capital	CO., LTD.	4 CHENG SHIN LOGISTIC CHIN CHOU CHENG SHIN Other Yes 9,360 9,288 9,228 4.35% Note 4 - Operating - None - 187,891 313,151 Note 6	(XIAMEN) IND., LTD. ENTERPRISE CO., LTD receivables capital	Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:	(1) The Company is 0 .	(2) The subsidiaries are numbered in order starting from 1 .	Note 2: Limit on loans granted by CHENG SHIN RUBBER (XIAMEN) IND., LTD. , CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD., XIAMEN CHENG SHIN ENTERPRISE CO., LTD. and CHEN SHIN LOGISTIC (XIAMEN) CO., LTD to a single party is 60% of the net assets of CHENG SHIN	RUBBER (XIAMEN) IND., LTD. and XIAMEN CHENG SHIN ENTERPRISE CO., LTD.	Note 3: Limit on loans granted by CHENG SHIN RUBBER (XIAMEN) IND., LTD. , CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD., XIAMEN CHENG SHIN ENTERPRISE CO., LTD. and CHEN SHIN LOGISTIC (XIAMEN) CO., LTD to a single party is 100% of the net assets of CHENG SHIN	RUBBER (XIAMEN) IND., LTD. and XIAMEN CHENG SHIN ENTERPRISE CO., LTD.	Note 4: Fill in purpose of loan when nature of loan is for short-term financing. The transaction was completed through the trust loans signed with financial institutions in Mainland China.	Note 5: The amount of ending balance was equal to the limit on loans as approved by the Board of Directors.	Note 6: The transactions were eliminated when preparing the consolidated financial statements.

Relationship with the endorser/ Number Endorser/ Partybeingendorsed/guaranteed Limit on endorsements/ guarantees provided for a Maximum outstanding endorsement/ guarantee amount as Table 2 Expressed in thousands of NTD (Except as otherwise indicated) Outstanding endorsement/ guarantee amount Actual amount Provision of endorsements/ guarantees to the party in Mainland Amount of endorsement s/ guarantees secured with Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor Ceiling on total amount of endorsements/ guarantees Provision of endorsements/ guarantees by parent company to Provision of endorsements/ guarantees by subsidiary to parent	Companyname guarantor Note 1 guarantor singleparty of June 30, 2018 at June 30, 2018 drawn down China Footnote collateral company provided subsidiary company	0 Cheng Shin Rubber Ind. Co., Ltd. MAXXIS International (Thailand) Co., Ltd. Sub- subsidiary 39,710,803 $ 5,226,300 $ 4,457,075 $ 3,916,876 $ - $ 5.61 55,595,124 $ Y N N Note 2 , Note 5 0 Cheng Shin Rubber Ind. Co., Ltd. Cheng Shin Rubber (Vietnam) IND Co., Ltd. Sub- subsidiary 39,710,803 305,750 305,750 61,150 - 0.38 55,595,124 Y N N Note 2 , Note 5 0 Cheng Shin Rubber Ind. Co., Ltd. CHENG SHIN TIRE & RUBBER (CHONGQING) CO., LTD. Sub- subsidiary 39,710,803 2,338,000 1,834,500 229,313 - 2.31 55,595,124 Y N Y Note 2 , Note 5 0 Cheng Shin Rubber Ind. Co., Ltd. CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD. Sub- subsidiary 39,710,803 458,625 458,625 458,625 - 0.58 55,595,124 Y N Y Note 2 , Note 5 0 Cheng Shin Rubber Ind. Co., Ltd. Maxxis Rubber India Private Limited Subsidiary 39,710,803 7,509,514 7,509,514 7,031,300 - 9.46 55,595,124 Y N N Note 2 , Note 5 0 Cheng Shin Rubber Ind. Co., Ltd. PT MAXXIS International Indonesia Subsidiary 39,710,803 8,408,125 8,408,125 6,909,950 - 10.59 55,595,124 Y N N Note 2 , Note 5 1 CHENG SHIN RUBBER (XIAMEN) IND., LTD. XIAMEN ESATE CO., LTD. Note 3 (1) 18,681,937 2,574,000 2,537,700 1,039,998 - 10.87 23,352,421 N N Y Note 4 , Note 5 Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows: (1) The Company is 0 . (2) The subsidiaries are numbered in order starting from 1 . Note 2: Ceiling on the Company's total endorsements/guarantees to others is 70% of the Company's current net assets. 55,595,124 $ Limit on the Company's endorsements/guarantees to a single party is 20% of the Company's net assets. 15,884,321 $ Limit on the Company's endorsements/guarantees to a foreign single affiliate company is 50% of the Company's net assets. 39,710,803 $ Note 3: Relationship between the endorser/guarantor and the Company is classified into the following two categories: (1) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary. (2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed company. Note 4:Limit on the Company's endorsements/gurantees provided to others is 100% of the Company's net assets. Limit on total endorsements provided to a single party is 80% of the Company's net assets. Note 5: Outstanding endorsement/guarantee amount and draw down amount are translated at the spot exchange rates prevailing at June 30, 2018.

Number of shares/ units Book value Ownership (%) Fair value Footnote Securities held by Marketable securities(Note 1) Relationship with the securities issuer General ledger account As of June 30, 2018 (Except as otherwise indicated) June 30, 2018 Table 3 Expressed in thousands of NTD	Cheng Shin Rubber Ind. Co., Ltd. Other ordinary shares - Current financial assets at fair value through other comprehensive income - 24,349 - 24,349 Note 2 Cheng Shin Rubber Ind. Co., Ltd. Other ordinary shares - Non-current financial assets at fair value through other comprehensive income - 58,187 - 58,187 Note 2

Table 4 Number of Number of Number of Gain (loss) on Number of Counterparty Relationship with the investor Addition Note 3 Disposal Note 3 Balance as at June 30,2018 Balance as at January1,2018 Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital Six-month period ended June 30, 2018 Expressed in thousands of NTD (Except as otherwise indicated) Marketable securities General	shares Amount shares Amount shares Selling price Book value disposal shares Amount Note 2 Note 2 Investor Note 1 ledger account	Cheng Shin Rubber Ind. Co., Ltd. Maxxis Rubber India Private Limited Investments accounted for using equity method Maxxis Rubber India Private Limited Subsidiary 549,995,541 2,049,105 $ 99,999,189 450,690 $ - $ - $ - $ - 649,994,730 1,823,726 $ Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation. Note 5: Gain and loss on investment accounted for using equity method was included in the balance as at June 30, 2018.

Purchases
(sales)
Amount
Percentage
of total
purchases
(sales)
Credit term
Unitprice
Credit term
Balance
Percentage of
total
notes/accounts
receivable
(payable)
Notes/accounts receivable
(payable)
Footnote
(Note 2)
(Except as otherwise indicated)
Table 5
Expressed in thousands of NTD
Purchaser/seller
Counterparty
Relationship with
the counterparty
Transaction
Differences in transaction
terms compared to third party
transactions(Note 1)

Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER USA, INC.
Subsidiary
(sales)
1,622,951)
($ 16.70)
(
Collect within 90 days after
shipment of goods
Same
Same
602,656
$ 20.53%
Note 4
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER CANADA, INC.
Subsidiary
(sales)
628,198)
(
6.46)
(
Collect within 90 days after
shipment of goods
Same
Same
324,005
11.03%
Note 4
Cheng Shin Rubber Ind. Co., Ltd.
MAXXIS International (Thailand) Co., Ltd.
Sub-subsidiary
(sales)
165,240)
(
1.70)
(
Collect within 60 days after
shipment of goods
Same
Same
27,389
0.93%
Note 4
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis(Taiwan) Trading Co., LTD.
Subsidiary
(sales)
1,865,972)
(
19.20)
(
Collect within 30 days
Same
Same
329,178
11.21%
Note 4
CHENG SHIN RUBBER (XIAMEN) IND.,
LTD.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
Same ultimate
parent
(sales)
361,790)
(
4.05)
(
Collect within 60~90 days after
shipment of goods
Same
Same
272,186
13.32%
Note 4
CHENG SHIN RUBBER (XIAMEN) IND.,
LTD.
CHENG SHIN RUBBER(ZHANGZHOU) IND CO., LTD
Same ultimate
parent
(sales)
120,688)
(
1.35)
(
Collect within 60~90 days after
shipment of goods
Same
Same
12,660
0.62%
Note 4
XIAMEN CHENG SHIN ENTERPRISE CO.,
LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
Same ultimate
parent
(sales)
858,295)
(
41.86)
(
Collect within 60~90 days after
shipment of goods
Same
Same
342,814
34.66%
Note 4
XIAMEN CHENG SHIN ENTERPRISE CO.,
LTD.
CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD.
Same ultimate
parent
(sales)
299,906)
(
14.63)
(
Collect within 60~90 days after
shipment of goods
Same
Same
106,033
10.72%
Note 4
XIAMEN CHENG SHIN ENTERPRISE CO.,
LTD.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
Same ultimate
parent
(sales)
127,344)
(
6.21)
(
Collect within 60~90 days after
shipment of goods
Same
Same
42,555
4.30%
Note 4
CHENG SHIN RUBBER (ZHANGZHOU) IND
CO., LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
Same ultimate
parent
(sales)
220,190)
(
5.32)
(
Collect within 60~90 days after
shipment of goods
Same
Same
93,091
53.46%
Note 4
CHENG SHIN TIRE & RUBBER (CHINA) CO.,
LTD.
CHENG SHIN RUBBER CANADA, INC.
Same ultimate
parent
(sales)
135,347)
(
1.12)
(
Collect within 60~90 days after
shipment of goods
Same
Same
85,780
1.98%
Note 4
CHENG SHIN TIRE & RUBBER
(CHONGQING) CO., LTD.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
Same ultimate
parent
(sales)
163,800)
(
4.41)
(
Collect within 60~90 days after
shipment of goods
Same
Same
45,943
6.82%
Note 4
MAXXIS International (Thailand) Co., Ltd.
CHENG SHIN RUBBER USA, INC.
Same ultimate
parent
(sales)
606,211)
(
8.69)
(
Collect within 60~90 days after
shipment of goods
Same
Same
240,148
10.21%
Note 4
MAXXIS International (Thailand) Co., Ltd.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
Same ultimate
parent
(sales)
333,904)
(
4.78)
(
Collect within 60~90 days after
shipment of goods
Same
Same
144,056
6.12%
Note 4
Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the
Unit price
and
Credit term
columns.
Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts,
and differences in types of transactions compared to third-party transactions.
Note 3: Paid-in capital referred to herein is the paid-in capital of parent company.
Note 4: The transactions were eliminated when preparing the consolidated financial statements.

Table 6
Amount
Action taken
Amount collected
subsequent to the balance
sheet date
(Note 1)
Allowance for
doubtful
accounts
Creditor
Counterparty
Relationship with the
counterparty
Balance as at June
30,2018
Turnover
rate
Overdue receivables
Expressed in thousands of NTD
(Except as otherwise indicated)

Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER USA, INC.
Subsidiary (Note 5)
602,718
$ Note 4
-
-
330,671
$ -
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER CANADA, INC. Subsidiary (Note 5)
324,218
Note 4
-
-
102,035
-
Cheng Shin Rubber Ind. Co., Ltd.
MAXXIS International (Thailand) Co.,
Ltd.
Sub-subsidiary (Note 5)
228,256
Note 3
-
-
7,661
-
Cheng Shin Rubber Ind. Co., Ltd.
Cheng Shin Rubber (Vietnam) IND Co.,
Ltd.
Sub-subsidiary (Note 5)
203,503
Note 3
-
-
118,585
-
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis(Taiwan) Trading Co., LTD.
Subsidiary (Note 5)
330,445
Note 4
-
-
330,445
-
CHENG SHIN RUBBER (XIAMEN)
IND., LTD.
CHENG SHIN TIRE & RUBBER
(CHINA) CO., LTD.
Same ultimate parent
(Note 5)
272,186
1.30
-
-
51,368
-
XIAMEN CHENG SHIN ENTERPRISE
CO., LTD.
CHENG SHIN RUBBER (XIAMEN)
IND., LTD.
Same ultimate parent
(Note 5)
344,589
Note 4
-
-
162,206
-
XIAMEN CHENG SHIN ENTERPRISE
CO., LTD.
CHENG SHIN PETREL TIRE (XIAMEN)
CO., LTD
Same ultimate parent
(Note 5)
106,033
2.85
-
-
40,047
-
CHENG SHIN TIRE & RUBBER
(CHINA) CO., LTD.
CHENG SHIN TIRE & RUBBER
(CHONG QING) CO., LTD.
Same ultimate parent
(Note 5)
126,535
0.57
-
-
14,706
-
MAXXIS International
(Thailand) Co., Ltd.
CHENG SHIN RUBBER USA, INC.
Same ultimate parent
(Note 5)
240,148
2.61
-
-
121,026
-
MAXXIS International
(Thailand) Co., Ltd.
CHENG SHIN TIRE & RUBBER
(CHINA) CO., LTD.
Same ultimate parent
(Note 5)
144,056
3.57
-
-
68,103
-
Note 1: Subsequent collection is the amount collected as of August 6, 2018.
Note 2: Paid-in capital referred to herein is the paid-in capital of parent company.
Note 3: The amount comprises accounts receivable, commission receivable, endorsements/guarantees receivable, patent royalties receivable, royalties receivable for trademark and other receivables and thus, the
turnover rate is not calculated.
Note 4: The amount comprises accounts receivable and other receivables and thus, the turnover rate is not calculated.
Note 5: The transactions were eliminated when preparing the consolidated financial statements.

General ledger account
Amount(Note 4)
Transaction terms
Percentage of
consolidated total
operating revenues or
total assets(Note 3)
(Except as otherwise indicated)
Table 7
Expressed in thousands of NTD
Number
(Note 1)
Companyname
Counterparty
Relationship
(Note 2)
Transaction

0
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER USA, INC.
1
Sales
1,622,951
$ Collect within 90 days after
shipment of goods
2.90%
0
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER USA, INC.
1
Accounts receivable
602,656
Collect within 90 days after
shipment of goods
0.33%
0
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER CANADA, INC.
1
Sales
628,198
Collect within 90 days after
shipment of goods
1.12%
0
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER CANADA, INC.
1
Accounts receivable
324,005
Collect within 90 days after
shipment of goods
0.18%
0
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis(Taiwan) Trading Co., LTD.
1
Sales
1,865,972
The term is 30 days after
monthly billing.
3.34%
0
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis(Taiwan) Trading Co., LTD.
1
Accounts receivable
329,178
The term is 30 days after
monthly billing.
0.18%
1
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
3
Sales
361,790
Collect within 60~90 days
after shipment of goods
0.65%
1
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
3
Accounts receivable
272,186
Collect within 60~90 days
after shipment of goods
0.15%
1
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD.
3
Other receivables
645,960
Pay interest quarterly
0.35%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
3
Sales
858,295
Collect within 60~90 days
after shipment of goods
1.54%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
3
Accounts receivable
342,814
Collect within 60~90 days
after shipment of goods
0.19%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD.
3
Sales
299,906
Collect within 60~90 days
after shipment of goods
0.54%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD.
3
Other receivables
3,264,548
Pay interest quarterly
1.77%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
3
Other receivables
1,591,830
Pay interest quarterly
0.86%
2
XIAMEN CHENG SHIN ENTERPRISE CO., LTD.
CHENG SHIN (XIAMEN) INTL AUTOMOBILE
CULTURE CENTER CO., LTD
3
Other receivables
230,700
Pay interest quarterly
0.13%
3
CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD.
CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD.
3
Other receivables
2,676,120
Pay interest quarterly
1.45%
3
CHENG SHIN PETREL TIRE (XIAMEN) CO., LTD.
XIAMEN ESTATE CO., LTD.
3
Other receivables
369,120
Pay interest quarterly
0.20%
4
CHENG SHIN RUBBER (ZHANGZHOU) IND CO., LTD.
CHENG SHIN RUBBER (XIAMEN) IND., LTD.
3
Sales
220,190
Collect within 60~90 days
after shipment of goods
0.39%
5
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
CHENG SHIN TIRE & RUBBER (CHONGQING) CO.,
LTD.
3
Other receivables
802,998
Distributed as resolution
each year
0.44%
6
MAXXIS International (Thailand) Co., Ltd.
CHENG SHIN RUBBER USA, INC.
3
Sales
606,211
Collect within 60~90 days
after shipment of goods
1.08%
6
MAXXIS International (Thailand) Co., Ltd.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
3
Sales
333,904
Collect within 60~90 days
after shipment of goods
0.60%

General ledger account
Amount(Note 4)
Transaction terms
Percentage of
consolidated total
operating revenues or
total assets(Note 3)
(Except as otherwise indicated)
Significant inter-company transactions during the reporting periods
Six-month period June 30, 2018
Table 7
Expressed in thousands of NTD
Number
(Note 1)
Companyname
Counterparty
Relationship
(Note 2)
Transaction

6
MAXXIS International (Thailand) Co., Ltd.
CHENG SHIN RUBBER USA, INC.
3
Accounts receivable
240,148
$ Collect within 60~90 days
after shipment of goods
0.13%
7
Cheng Shin International (HK) Ltd.
CHENG SHIN TIRE & RUBBER (CHINA) CO., LTD.
3
Other receivables
2,259,446
Distributed as resolution
each year
1.23%
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is
0
.
(2) The subsidiaries are numbered in order starting from
1
.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated
transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Transaction amounts account for at least NT$200 million.

Balance
as at June 30,
2018
Balance
as at December
31,2017
Number of shares
Ownership
(%)
Book value
Table 8
Expressed in thousands of NTD
(Except as otherwise indicated)
Net profit (loss)
of the investee for
the six-month
period ended
June 30,2018
Investment
income(loss)
recognised by the
Company for the six-
month period ended
June 30, 2018 (Note
1)
Footnote
Investor
Investee
Location
Main business
activities
Initial investment amount
Shares held as at June 30,2018

Cheng Shin Rubber Ind. Co., Ltd.
MAXXIS International Co., Ltd.
Cayman Islands
Holding company
912,218
$ 912,218
$ 35,050,000
100.00
42,400,013
$ 721,579
$ 725,867
$ Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
CST Trading Ltd.
British Virgin Islands
Holding company
2,103,073
2,103,073
72,900,000
100.00
26,849,600
1,531,048
1,535,292
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
MAXXIS Trading Ltd.
British Virgin Islands
Holding company
7,669,780
7,669,780
237,811,720
100.00
10,108,293
150,641
136,404
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER USA, INC.
U.S.A
Import and export of tires
551,820
551,820
1,800,000
100.00
2,644,583
174,537
174,537
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
CHENG SHIN RUBBER CANADA,
INC.
Canada
Import and export of tires
32,950
32,950
1,000,000
100.00
794,266
72,558
72,558
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
NEW PACIFIC INDUSTRY
COMPANY LIMITED
Taiwan
Processing and sales of
various anti-vibration rubber
and hardware
50,001
50,001
5,000,000
50.00
151,455
5,784)
(
2,892)
(
Note 2
Cheng Shin Rubber Ind. Co., Ltd.
MAXXIS Tech Center Europe B.V.
Netherlands
Technical centre
41,260
41,260
1,000,000
100.00
46,374
13,635)
(
13,635)
(
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
Cheng Shin Holland B.V.
Netherlands
Import and export of tires
23,162
23,162
9,708
30.00
16,594
-
-
Note 2
Cheng Shin Rubber Ind. Co., Ltd.
PT MAXXIS International Indonesia
Indonesia
Production and sales of
various types of tires
2,461,355
2,461,355
79,997,000
100.00
1,183,901
449,370)
(
449,370)
(
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis Rubber India Private Limited
India
Production and sales of
various types of tires
3,124,651
2,673,961
649,994,730
100.00
1,823,726
578,315)
(
578,315)
(
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
Maxxis(Taiwan) Trading Co., LTD.
Taiwan
Wholesale and retail of tires
100,000
100,000
10,000,000
100.00
537,415
112,529
112,529
Subsidiary
Note 3
Cheng Shin Rubber Ind. Co., Ltd.
PT MAXXIS TRADING INDONESIA Indonesia
Large-amount trading of
vehicles parts and
accessories
30,235
30,235
9,990
100.00
29,614
1,000
1,000
Subsidiary
Note 3
MAXXIS International Co., Ltd.
MAXXIS International (HK) Ltd.
Hong Kong
Holding company
-
-
226,801,983
100.00
33,187,207
563,399
563,399
Sub-subsidiary
Note 3

CST Trading Ltd.
Cheng Shin International (HK) Ltd.
Hong Kong
Holding company
-
$ -
$ 246,767,840
100.00
26,686,065
$ 1,526,771
$ 1,526,771
$ Sub-subsidiary
Note 3
MAXXIS Trading Ltd.
MAXXIS Holdings (BVI) Co., Ltd.
British Virgin Islands
Import and export of tires
7,669,780
7,669,780
237,811,720
100.00
10,581,832
150,690
150,690
Sub-subsidiary
Note 3
MAXXIS Holdings (BVI) Co., Ltd.
MAXXIS International (Thailand) Co.,
Ltd.
Thailand
Production and sales of truck
and automobile tires
5,724,372
5,724,372
65,000,000
100.00
7,613,148
214,095)
(
232,872)
(
Sub-subsidiary
Note 3
MAXXIS Holdings (BVI) Co., Ltd.
Cheng Shin Rubber (Vietnam) IND
Co., Ltd.
Vietnam
Production and sales of
various types of tires
1,945,408
1,945,408
62,000,000
100.00
2,965,576
364,717
369,257
Sub-subsidiary
Note 3
Note 1: Including investment income (loss) used to offset against sidestream and upstream transactions.
Note 2: Investee companies are accounted for under the equity method.
Note 3: The transactions were eliminated when preparing the consolidated financial statements.

Remitted to
Mainland China
Remitted back
to Taiwan
Expressed in thousands of NTD
Investee in
Mainland China
(Except as otherwise indicated)
Book value of
investments in
Mainland China
as of June 30,
2018
Accumulated
amount of
investment income
remitted back to
Taiwan as of June
30,2018
Table 9
Footnote
Main business
activities
Paid-in capital
Investment
method(Note 1)
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2018
Accumulated
amount of
remittance from
Taiwan to
Mainland China as
of June 30,
2018
Ownership
held by the
Company
(direct or
indirect)
Investment
income (loss)
recognised by
the Company for
the six-month
period ended
June 30,2018
Net income of
investee as of
June 30,2018
Amount remitted from Taiwan to
Mainland China/ Amount remitted
back to Taiwan for the six-month
period ended June 30,2018

CHENG SHIN
RUBBER (XIAMEN)
IND., LTD.
A. Cover and tubes of tires and
cover and tubes of bicycle tires
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
5,330,500
$ 2
910,834
$ -
$ -
$ 910,834
$ 301,336
$ 100.00
304,103
$ 23,352,421
$ 16,957,236
$ (Note 2
3
5
6
7)
CHENG SHIN TIRE &
RUBBER (CHINA)
CO., LTD.
A. Cover and tubes of tires and
cover and tubes of bicycle tires
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
6,853,500
2
2,385,506
-
-
2,385,506
1,342,659
100.00
1,343,397
22,207,580
17,466,059
(Note 2
4
6
8)
CHENG SHIN TOYO
(KUNSHAN)
MACHINERY CO.,
LTD
Plastic machinery, molds and its
accessory products
258,910
2
68,602
-
-
68,602
34,891
50.00
17,446
366,458
368,346
(Note 6
8)
CHENG SHIN TIRE &
RUBBER
(CHONGQING) CO.,
LTD.
A. Cover and tubes of tires and
cover and tubes of bicycle tires
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
3,046,000
2
-
-
-
-
534,490
100.00
543,848
5,209,162
753,758
(Note 2
4
6
8)
KUNSHAN MAXXIS
TIRE CO., LTD
Retail of accessories for rubber
tires
22,965
2
-
-
-
-
438
100.00
438
22,656
-
(Note 6
8)
TIANJIN TAFENG
RUBBER IND CO.,
LTD.
A. Cover and tubes of tires and
cover and tubes of bicycle tires
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
548,280
2
-
-
-
-
124,924)
(
100.00
124,924)
(
1,485,836
757,407
(Note 6
7)

CHENG SHIN PETREL
TIRE (XIAMEN) CO.,
LTD.
A. Radial tire and other various
tire products
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
3,959,800
$ 2
-
$ -
$ -
$ -
$ 467,131
$ 100.00
467,139
$ 13,040,331
$ 3,597,249
$ (Note 2
3
6
7)
XIAMEN CHENG
SHIN ENTERPRISE
CO., LTD.
A. Radial tire and other various
tire products
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
1,370,700
2
-
-
-
-
231,231
100.00
232,744
8,083,257
4,707,620
(Note 2
6
7)
CHENG SHIN
(XIAMEN) INTL
AUTOMOBILE
CULTURE CENTER
CO., LTD
A. Research, development and
testing of tires and automobiles
accessory products and display of
related products
B. Management of racing tracks
609,200
2
-
-
-
-
36,827)
(
100.00
36,827)
(
356,352
-
(Note 6)
CHIN CHOU CHENG
SHIN ENTERPRISE
CO., LTD.
Distribution of rubber and
components of tires
160,755
2
-
-
-
-
5,707)
(
95.00
5,421)
(
134,244
-
(Note 6
7)
CHENG SHIN
LOGISTIC (XIAMEN)
CO., LTD.
International container
transportation business
66,194
2
-
-
-
-
9,544
49.00
4,677
153,444
-
(Note 6
7)
CHENG SHIN
RUBBER
(ZHANGZHOU) IND
CO., LTD.
A. Tires and tubes
B. Reclaimed rubber, adhesive,
tape and other rubber products
C. Plastic machinery, molds and
its accessory products
4,363,350
2
-
-
-
-
270,592
100.00
270,592
5,579,021
452,779
(Note 5
6
7)

XIAMEN ESATE CO.,
LTD.
Construction and trading of
employees
housing
1,515,690
$ 2
-
$ -
$ -
$ -
$ 20,209)
($ 100.00
20,209)
($ 1,440,164
$ -
$ (Note 6
7)
Note 1: Investment methods are classified into the following three categories:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others
Note 2: Including investment income (loss) used to offset against sidestream and upstream transactions.
Note 3: The Company and Cheng Shin Rubber (Xiamen) Ind., Ltd. directly and indirectly holds 60% and 40% of the share ownership in Cheng Shin Petrel Tire (Xiamen) Co., Ltd., respectively.
Note 4: The Company and Cheng Shin Tire & Rubber (China) Co., Ltd. directly and indirectly holds 30% and 70% of share ownership in Cheng Shin Tire & Rubber (Chongqing) Co., Ltd., respectively.
Note 5: Cheng Shin Rubber (Xiamen) Ind., Ltd. and MAXXIS International (HK) Ltd. directly and indirectly holds 75% and 25% of share ownership in Cheng Shin Rubber (Zhangzhou) Ind Co., Ltd, respectively.
Note 6: Paid-in capital was converted at the exchange rate of NTD 30.46: USD 1 and NTD 4.593: RMB 1 prevailing on June 30, 2018.
Note 7: Investment income (loss) was recognised based on the financial statements that are reviewed and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
Note 8: Investment income (loss) was recognised based on the financial statements that are reviewed and attested by R.O.C. parent company's CPA.

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CST Annual Report 2018

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CST — Annual Report 2018

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