EGST - Interim / Quarterly Report 2021

Evergreen Steel Corporation and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Evergreen Steel Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Evergreen Steel Corporation and its subsidiaries (collectively, the “Group”) as of June 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2021 and 2020, and the related notes to the consolidated financial statements, including a summary of 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” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. 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 Statement of Auditing Standards 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 stated in Note 12 to the consolidated financial statements, the investments accounted for using the equity method were NT$136,548 thousand and NT$138,545 thousand as of June 30, 2021 and 2020, respectively. The equities in profit and loss of the associates were NT$5,151 thousand and NT$5,334 thousand of the consolidated net income for the three months ended June 30, 2021 and 2020. The equities in profit and loss of the associates were NT$10,749 thousand and NT$13,118 thousand of the consolidated net income for the six months ended June 30, 2021 and 2020. These investment amounts and related disclosures are based on the investees’ unreviewed financial statements for the same reporting periods as those of the Group.

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 investees that are accounted for using equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2021 and 2020, its consolidated financial performance for the three months ended June 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Ching-Hsia Chang and Yung-Hsiang Chao.

Deloitte & Touche Taipei, Taiwan Republic of China August 10, 2021

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.

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at amortized cost - current (Notes 8 and 32) Contract assets - current (Notes 23, 25 and 31) Notes receivable (Note 23) Trade receivables, net (Notes 9 and 23) Trade receivables from related parties, net (Notes 9, 23 and 31) Other receivables (Note 31) Inventories (Notes 10 and 23) Other current assets (Note 17) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 7) Investments accounted for using equity method (Note 12) Property, plant and equipment (Notes 13 and 32) Right-of-use assets (Notes 14 and 31) Investment properties (Notes 15 and 32) Intangible assets (Note 16) Deferred tax assets (Note 4) Refundable deposits Other non-current assets (Note 17) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 18) Short-term bills payable (Note 18) Contract liabilities - current (Notes 23, 25 and 31) Notes payable, net (Note 23) Trade payables, net (Notes 19 and 23) Other payables (Notes 20 and 31) Current tax liabilities (Note 4) Provisions - current (Note 21) Lease liabilities - current (Notes 14 and 31) Current portion of long-term borrowings (Note 18) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 18) Deferred tax liabilities (Note 4) Lease liabilities - non-current (Notes 14 and 31) Net defined benefit liabilities - non-current (Notes 4 and 22) Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translation of the financial statements of foreign operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income Total other equity Treasury shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS Total equity TOTAL		June 30, 2021 (Reviewed) Amount % $ 4,655,262 13 26,533 - 2,937,206 9 3,712 - 1,196,025 3 27,421 - 28,838 - 3,338,599 10 180,494 1 12,394,090 36 14,923,847 43 136,548 - 3,335,156 10 25,403 - 104,529 - 3,612,625 10 53,956 - 8,335 - 139,697 1 22,340,096 64 $ 34,734,186 100 $ 400,000 1 549,745 2 1,183,118 3 461,220 1 1,503,539 4 254,469 1 171,822 1 66,077 - 11,883 - - - 46,462 - 4,648,335 13 2,854,108 9 68,300 - 10,403 - 20,210 - 24,628 - 21,462 - 2,999,111 9 7,647,446 22 4,199,820 12 1,340,252 4 2,190,673 6 6,913,378 20 9,104,051 26 (648) - 9,461,786 27 9,461,138 27 (49,938) - 24,055,323 69 3,031,417 9 27,086,740 78 $ 34,734,186 100		December 31, 2020 (Audited) Amount % $ 4,219,283 18 23,452 - 4,190,973 17 126,910 - 745,136 3 151,458 1 43,468 - 1,008,758 4 175,797 1 10,685,235 44 6,775,512 28 150,799 1 3,408,410 14 20,479 - 105,530 1 2,739,716 11 42,114 - 8,003 - 117,404 1 13,367,967 56 $ 24,053,202 100 $ 690,000 3 1,799,171 7 382,809 2 355,383 1 1,172,977 5 406,764 2 175,916 1 60,792 - 8,756 - 300,000 1 56,897 - 5,409,465 22 1,693,469 7 66,187 1 9,738 - 36,024 - 25,234 - 15,516 - 1,846,168 8 7,255,633 30 3,994,260 16 396,542 2 2,190,673 9 6,347,269 26 8,537,942 35 (648) - 1,166,832 5 1,166,184 5 (93,113) - 14,001,815 58 2,795,754 12 16,797,569 70 $ 24,053,202 100		June 30, 2020 (Reviewed)
						Amount % $ 3,785,708 19 17,614 - 3,376,820 17 1,151 - 928,744 5 27,056 - 25,273 - 971,237 5 98,363 1 9,231,966 47 4,864,192 25 138,545 1 3,552,477 18 21,436 - 109,948 1 1,451,875 8 49,242 - 10,080 - 31,794 - 10,229,589 53 $ 19,461,555 100 $ 516,830 3 999,541 5 224,704 1 312,874 2 1,000,911 5 1,299,095 7 148,353 1 56,689 - 8,864 - 300,000 1 45,122 - 4,912,983 25 812,931 4 65,995 1 10,326 - 48,396 - 16,457 - 12,360 - 966,465 5 5,879,448 30 3,994,260 21 388,032 2 2,190,673 11 5,729,794 30 7,920,467 41 (783) - (676,344) (4) (677,127) (4) (93,113) (1) 11,532,519 59 2,049,588 11 13,582,107 70 $ 19,461,555 100

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

(With Deloitte & Touche auditors’ review report dated August 10, 2021)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OPERATING REVENUE (Notes 25 and 31) OPERATING COSTS (Notes 10, 26 and 31) GROSS PROFIT OPERATING EXPENSES (Notes 26 and 31) Selling and marketing expenses General and administrative expenses Expected credit (loss) gain (Note 9) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income Other income (Notes 26 and 31) Other (losses) gains (Note 26) Finance costs (Note 26) Share of profit of associates (Note 12) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 27) NET PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Income tax relating to items that will not be reclassified subsequently to profit or loss		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months	For the Six Months	Ended June 30
		2021		2020		2021		2020
		Amount % $ 2,601,485 100 (2,084,192) (80) 517,293 20 (61,074 ) (3 ) (60,637 ) (2 ) (8,855) - (130,566) (5) 386,727 15 6,920 - 18,586 1 1,019 - (4,007 ) - 5,151 - 27,669 1 414,396 16 (87,075) (4) 327,321 12 7,848,900 302 - - 7,848,900 302		Amount % $ 2,058,350 100 (1,590,657) (77) 467,693 23 (49,054 ) (2 ) (58,314 ) (3 ) 1,306 - (106,062) (5) 361,631 18 6,541 - 25,399 1 (3,773 ) - (4,539 ) - 5,334 - 28,962 1 390,593 19 (84,268) (4) 306,325 15 921,344 45 - - 921,344 45		Amount % $ 5,649,682 100 (4,567,314) (81) 1,082,368 19 (148,613 ) (3 ) (119,417 ) (2 ) (15,806) - (283,836) (5) 798,532 14 13,546 - 22,102 1 (6,438 ) - (9,866 ) - 10,749 - 30,093 1 828,625 15 (160,098) (3) 668,527 12 8,708,922 154 - - 8,708,922 154		Amount % $ 4,438,942 100 (3,520,195) (79) 918,747 21 (103,154 ) (2 ) (115,776 ) (3 ) 2,364 - (216,566) (5) 702,181 16 14,026 - 37,909 1 (4,945 ) - (7,549 ) - 13,118 - 52,559 1 754,740 17 (155,560) (4) 599,180 13 (852,440 ) (19 ) - - (852,440) (19) (Continued)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations Income tax related 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 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (Note 28) Basic Diluted		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months	For the Six Months	Ended June 30
		2021		2020		2021		2020
		Amount % $ - - - - - - 7,848,900 302 $ 8,176,221 314 $ 250,368 10 76,953 2 $ 327,321 12 $ 7,754,567 298 421,654 16 $ 8,176,221 314 $0.60 $0.60		Amount % $ - - - - - - 921,344 45 $ 1,227,669 60 $ 226,292 11 80,033 4 $ 306,325 15 $ 1,144,224 56 83,445 4 $ 1,227,669 60 $0.57 $0.57		Amount % $ - - - - - - 8,708,922 154 $ 9,377,449 166 $ 507,763 9 160,764 3 $ 668,527 12 $ 8,861,063 157 516,386 9 $ 9,377,449 166 $1.26 $1.26		Amount % $ 359 - (72) - 287 - (852,153) (19) $ (252,973 ) (6 ) $ 425,718 10 173,462 3 $ 599,180 13 $ (422,829 ) (10 ) 169,856 4 $ (252,973 ) (6 ) $1.08 $1.08

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

(With Deloitte & Touche auditors’ review report dated August 10, 2021)

(Concluded)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

BALANCE AT JANUARY 1, 2020 Appropriation and distribution of 2019 retain earning Special capital reserve Cash dividend to shareholders Subsidiary receives dividend from the parent company Cash dividends of the Company received by its subsidiaries Net profit for the six months ended June 30, 2020 Other comprehensive income (loss) for the six months ended June 30, 2020, net of income tax Total comprehensive income (loss) for the six months ended June 30, 2020 Disposal of treasury shares Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT JUNE 30, 2020 BALANCE AT JANUARY 1, 2021 Cash dividends of the Company received by its subsidiaries Issuance of ordinary shares for cash Net profit for the six months ended June 30, 2021 Other comprehensive income for the six months ended June 30, 2021, net of income tax Total comprehensive income for the six months ended June 30, 2021 Disposal of treasury shares Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT JUNE 30, 2021			Equity Attributable to Owners of	the Company	Total Non-controlling Interests $ 12,690,886 $ 2,154,672 - - (793,071) - 4,998 - - (274,940) 425,718 173,462 (848,547) (3,606) (422,829) 169,856 52,535 - - - $ 11,532,519 $ 2,049,588 $ 14,001,815 $ 2,795,754 - (280,723) 1,042,650 - 507,763 160,764 8,353,300 355,622 8,861,063 516,386 149,795 - - - $ 24,055,323 $ 3,031,417	Total Equity $ 14,845,558 - (793,071) 4,998 (274,940) 599,180 (852,153) (252,973) 52,535 - $ 13,582,107 $ 16,797,569 (280,723) 1,042,650 668,527 8,708,922 9,377,449 149,795 - $ 27,086,740
		Share Capital Shares (In Thousands) Amount Capital Surplus 399,426 $ 3,994,260 $ 356,431 - - - - - - - - 4,998 - - - - - - - - - - - - - - 26,603 - - - 399,426 $ 3,994,260 $ 388,032 399,426 $ 3,994,260 $ 396,542 - - - 20,556 205,560 837,090 - - - - - - - - - - - 106,620 - - - 419,982 $ 4,199,820 $ 1,340,252	Retained Earnings Legal Reserve Unappropriated Earnings $ 2,095,929 $ 6,192,425 94,744 (94,744) - (793,071) - - - - - 425,718 - - - 425,718 - - - (534) $ 2,190,673 $ 5,729,794 $ 2,190,673 $ 6,347,269 - - - - - 507,763 - - - 507,763 - - - 58,346 $ 2,190,673 $ 6,913,378	Other Equity Exchange Differences Translation of the Financial Unrealized Gain (Loss) on Financial Assets at Fair Value Through Statements of Other Foreign Operations Comprehensive Income Treasury Stock $ (921) $ 171,807 $ (119,045) - - - - - - - - - - - - - - - 138 (848,685) - 138 (848,685) - - - 25,932 - 534 - $ (783) $ (676,344) $ (93,113) $ (648) $ 1,166,832 $ (93,113) - - - - - - - - - - 8,353,300 - - 8,353,300 - - - 43,175 - (58,346) - $ (648) $ 9,461,786 $ (49,938)
		Shares (In Thousands) 399,426 - - - - - - - - - 399,426 399,426 - 20,556 - - - - - 419,982

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

(With Deloitte & Touche auditors’ review report dated August 10, 2021)

EVERGREEN STEEL 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 Adjustments for: Depreciation expense Amortization expense Ordinary shares transferred to employees at cost Expected credit loss recognized (reversed) on trade receivables Finance costs Interest income Dividend income Share of profit of associates (Gain)/loss on disposal of property, plant and equipment Gain on lease modification Net loss on disposal of inventories Changes in operating assets and liabilities Decrease (increase) in contract assets Decrease in notes receivable Increase in trade receivables Decrease (increase) in other receivables Increase in inventories Increase in other current assets Increase (decrease) in contract liabilities Increase in notes payable Increase in trade payables (Decrease) increase in other payables Increase (decrease) in provisions Decrease in other current liabilities Decrease in net defined benefit liabilities Increase in other non-current liabilities Cash generated from (used in) operations Interest received Interest paid Income tax paid Net cash generated from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 828,625 197,248 2,575 39,660 15,806 9,866 (13,546) (6,191) (10,749) (3,854) (7) 2,804 1,238,031 123,198 (326,922) 20,605 (2,332,645) (4,683) 800,309 105,837 330,562 (153,194) 5,285 (10,436) (15,814) 5,946 848,316 13,747 (25,112) (173,934) 663,017 (1,576) 562,163 (3,881)	2020 $ 754,740 196,175 3,795 - (2,364) 7,549 (14,026) (6,752) (13,118) 59 - 2,834 (614,574) 51,749 (402,729) (4,627) (316,530) (66,374) (124,085) 85,555 9,935 157,322 (22,443) (3,229) (13,549) 1,108 (333,579) 14,268 (10,908) (144,228) (474,447) (1,543) 1,646 (3,724) (Continued)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

Proceeds from sale of financial assets at amortized cost Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Payments for intangible assets (Increase) decrease in other non-current assets Dividend received Dividend received from associates Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Repayments of) proceeds from short-term borrowings (Repayments of) proceeds from bills payable Proceeds from long-term borrowings Repayments of long-term borrowings (Decrease) increase in guarantee deposits Repayment of principal portion of lease liabilities Share capital collected in advance Proceeds from disposal of treasury shares Cash dividend received from subsidiary Net cash generated from financing activities NET INCREASE 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 Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 800 (117,710) 4,644 (332) (859,339) (22,293) 15 25,000 (412,509) (290,000) (1,249,426) 860,639 - (606) (7,198) 1,002,990 149,795 (280,723) 185,471 435,979 4,219,283 $ 4,655,262	2020 $ 990 (102,414) 220 (2,542) (548,146) 73,558 6,752 27,000 (548,203) 316,830 599,672 910,589 (150,000) 132 (5,512) - 52,535 (274,940) 1,449,306 426,656 3,359,052 $ 3,785,708

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

(With Deloitte & Touche auditors’ review report dated August 10, 2021)

(Concluded)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

Evergreen Steel Corporation (the “Company”) was incorporated in January 1973 as a company limited by shares under the Company Law of the Republic of China. The Company is mainly engaged in the steel structure engineering business and environmental protection business. The Company’s steel structure engineering business mainly includes engineering projects of factories, tall buildings and bridges. The Company’s reinvestment on environmental protection business includes general and business waste treatment and cogeneration. On January 13, 2020, the Company was approved by the Taipei Exchange (TPEx) for domestic initial public offering, and its ordinary shares were listed and traded on the Emerging Stock Board. Since April 12, 2021, the Company’s shares have been listed on the Taiwan Stock Exchange.

The consolidated financial statements are presented in the Company’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on August 10, 2021.

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

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

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

b. The IFRSs endorsed by the FSC for application starting from 2022

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Effective Date
New IFRSs Announced by IASB
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New IFRSs	Effective Date Announced by IASB
“Annual Improvements to IFRS Standards 2018-2020”	January 1, 2022 (Note 1)
Amendments to IFRS 3 “Reference to the Conceptual Framework”	January 1, 2022 (Note 2)
Amendments to IAS 16 “Property, Plant and Equipment - Proceeds	January 1, 2022 (Note 3)
before Intended Use”
Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a	January 1, 2022 (Note 4)
Contract”

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Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”

The amendments specify that when assessing whether a contract is onerous, the “cost of fulfilling a contract” includes both the incremental costs of fulfilling that contract (for example, direct labor and materials) and an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of depreciation for an item of property, plant and equipment used in fulfilling the contract).

The Group will recognize the cumulative effect of the initial application of the amendments in the retained earnings at the date of the initial application.

Except for the above impact, 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 financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

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Effective Date
New IFRSs Announced by IASB (Note 1)
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New IFRSs	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets	To be determined by IASB
between an Investor and its Associate or Joint Venture”
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IAS 1 “Classification of Liabilities as Current or	January 1, 2023
Non-current”
Amendments to IAS 1 “Disclosure of Accounting Policies”	January 1, 2023 (Note 2)
Amendments to IAS 8 “Definition of Accounting Estimates”	January 1, 2023 (Note 3)
Amendments to IAS 12 “Deferred Tax related to Assets and	January 1, 2023 (Note 4)
Liabilities arising from a Single Transaction”

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
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Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except that deferred taxes will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
1) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

The amendments clarify that for a liability to be classified as non-current, the Group shall assess whether it has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. If such rights are in existence at the end of the reporting period, the liability is classified as non-current regardless of whether the Group will exercise that right. The amendments also clarify that, if the right to defer settlement is subject to compliance with specified conditions, the Group must comply with those conditions at the end of the reporting period even if the lender does not test compliance until a later date.

The amendments stipulate that, for the purpose of liability classification, the aforementioned settlement refers to a transfer of cash, other economic resources or the Group’s own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that could, at the option of the counterparty, result in its settlement by a transfer of the Group’s own equity instruments, and if such option is recognized separately as equity in accordance with IAS 32 “Financial Instruments: Presentation”, the aforementioned terms would not affect the classification of the liability.

2) Amendments to IAS 1 “Disclosure of Accounting Policies”

The amendments specify that the Group should refer to the definition of material to determine its material accounting policy information to be disclosed. Accounting policy information is material if it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments also clarify that:

Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;
The group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and
Not all accounting policy information relating to material transactions, other events or conditions is itself material.

The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

a) The Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;
b) The Group chose the accounting policy from options permitted by the standards;
c) The accounting policy was developed in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” in the absence of an IFRS that specifically applies;
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d) The accounting policy relates to an area for which the Group is required to make significant judgements or assumptions in applying an accounting policy, and the Group discloses those judgements or assumptions; or
e) The accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.
3) Amendments to IAS 8 “Definition of Accounting Estimates”

The amendments define that accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. In applying accounting policies, the Group may be required to measure items at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, the Group uses measurement techniques and inputs to develop accounting estimates to achieve the objective. The effects on an accounting estimate of a change in a measurement technique or a change in an input are changes in accounting estimates unless they result from the correction of prior period errors.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These 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.
12 -

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the parent company and the entities controlled by the parent company (i.e., its subsidiaries). Income and expenses of the subsidiaries acquired or disposed of during the period are included in the consolidated statements of 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 parent 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 parent 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 Group’s interests 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 parent company.

See Note 11 and Table 6 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

d. Other significant accounting policies

Except for the following, refer to significant accounting policies to the consolidated financial statements for the years ended December 31, 2020.

1) Retirement benefits

Pension costs for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

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.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The critical accounting judgments and key sources of estimation uncertainty are the same as those in the consolidated financial statements for the year ended December 31, 2020.

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6. CASH AND CASH EQUIVALENTS

7.	June 30, 2021 December 31, 2020 June 30, 2020 Cash on hand $ 3,200 $ 3,145 $ 3,231 Checking accounts and demand deposits 902,561 410,868 504,564 Cash equivalent Time deposits 3,412,443 3,512,292 2,713,960 Commercial paper 337,058 292,978 563,953 $ 4,655,262 $ 4,219,283 $ 3,785,708 The market rate intervals of time deposits in the bank at the end of the reporting period were as follows: June 30, 2021 December 31, 2020 June 30, 2020 Time deposits 0.17%-0.825% 0.28%-0.825% 0.16%-1.35% FINANCIAL ASSETS AT FVTOCI June 30, 2021 December 31, 2020 June 30, 2020 Non-current Domestic investments Listed shares and emerging market shares $ 13,891,803 $ 5,744,880 $ 3,966,159 Unlisted shares 870,646 881,433 749,847 Foreign investments Unlisted shares 161,398 149,199 148,186 $ 14,923,847 $ 6,775,512 $ 4,864,192	June 30, 2021 December 31, 2020 June 30, 2020 Cash on hand $ 3,200 $ 3,145 $ 3,231 Checking accounts and demand deposits 902,561 410,868 504,564 Cash equivalent Time deposits 3,412,443 3,512,292 2,713,960 Commercial paper 337,058 292,978 563,953 $ 4,655,262 $ 4,219,283 $ 3,785,708 The market rate intervals of time deposits in the bank at the end of the reporting period were as follows: June 30, 2021 December 31, 2020 June 30, 2020 Time deposits 0.17%-0.825% 0.28%-0.825% 0.16%-1.35% FINANCIAL ASSETS AT FVTOCI June 30, 2021 December 31, 2020 June 30, 2020 Non-current Domestic investments Listed shares and emerging market shares $ 13,891,803 $ 5,744,880 $ 3,966,159 Unlisted shares 870,646 881,433 749,847 Foreign investments Unlisted shares 161,398 149,199 148,186 $ 14,923,847 $ 6,775,512 $ 4,864,192
		$ 4,864,192

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes.

The Group sold its investments to diversify risks for the six months ended June 30, 2021 and 2020, and transferred a gain (loss) of $58,346 thousand and $(534) thousand, respectively, from other equity to retained earnings.

8. FINANCIAL ASSETS AT AMORTIZED COST

		December 31,
	June 30, 2021	2020	June 30, 2020
Current
Pledge deposits	$ 16,291	$ 17,091	$ 14,764
Restricted bank deposits	10,242	6,361	2,850
	$ 26,533	$ 23,452	$ 17,614

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a. The ranges of interest rates for pledge deposits were approximately 0.16%-0.825%, 0.16%-0.825% and 0.16%-0.815% per annum as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.
b. Refer to Note 32 for information relating to investments in financial assets at amortized cost pledged as security.

9. TRADE RECEIVABLES

		December 31,	December 31,
	June 30, 2021		2020	June	30, 2020
Trade receivables (including trade
receivables from related parties)
At amortized cost
Gross carrying amount	$ 1,223,693	$	896,771	$	957,145
Less: Allowance for impairment loss	(247)		(177)		(1,345)
	$ 1,223,446	$	896,594	$	955,800

Trade receivable

The average credit period on sales of goods is 0 to 120 days. In determining the recoverability of a trade receivable, the Group considers the changes in the credit quality of the trade receivable since the date of credit was initially granted to the end of the reporting period. The allowance for bad debts refers to the past arrears records of the counterparty and the analysis of its current financial status to estimate the amount that cannot be recovered.

The Group applies the simplified approach for the allowance of expected credit loss prescribed by IFRS 9, which permits the use of a lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor’s current financial positions.

The Group writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery of the receivable, e.g. when the debtor has been placed under liquidation, or when the trade receivables are over 365 days past due, whichever occurs earlier. The Group directly recognizes the impairment loss of related accounts receivable.

The following table details the Group’s aging of trade receivables.

June 30, 2021

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost		Amount Without Sign of Default	Amount Without Sign of Default	Amount with Over 120 Sign of Days Default 100% - $ 2 $ - (2) - $ - $ -	Total $ 1,223,693 (247) $ 1,223,446
		0 to 60 Days 61 to 90 Days 0.02% 0.53% $ 1,217,138 $ 6,485 (209) (34) $ 1,216,929 $ 6,451	91 to 120 Days 2.94% $ 68 (2) $ 66

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December 31, 2020

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost June 30, 2020 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs Amortized cost		Amount Without	Sign of Default	Amount with Over 120 Sign of Days Default - - $ - $ - - - $ - $ - Amount with Over 120 Sign of Days Default - - $ - $ - - - $ - $ -	Total $ 896,771 (177) $ 896,594 Total $ 957,145 (1,345) $ 955,800
		0 to 60 Days 61 to 90 Days 0.02% 0.49% $ 890,842 $ 5,889 (144) (29) $ 890,698 $ 5,860 Amount Without	91 to 120 Days 10% $ 40 (4) $ 36 Sign of Default
		0 to 60 Days 61 to 90 Days 0.06% 1.53% $ 946,603 $ 327 (546) (5) $ 946,057 $ 322	91 to 120 Days 7.77% $ 10,215 (794) $ 9,421

The above is an aging analysis based on the account opening date.

The above aging schedule was based on the ledger date. The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Allowance for impairment loss Balance at June 30		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 177 70 $ 247	2020 $ 546 799 $ 1,345

10. INVENTORIES

		December 31,	December 31,
	June 30, 2021		2020	June	30, 2020
Raw material	$ 3,253,434	$	979,728	$	883,776
Supplies	21,141		21,827		24,378
Inventory in transit	64,024		7,203		63,083
	$ 3,338,599	$	1,008,758	$	971,237

The costs of inventories recognized as operating cost for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020, were $1,849,453 thousand, $1,353,445 thousand, $4,085,310 thousand and $3,014,952 thousand, respectively. The costs of goods sold which included the inventory write-downs (reversals) for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020, were $192 thousand, $(2,439) thousand, $2,804 thousand and $171 thousand, respectively.

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11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

The entities included in the consolidated statements are listed below.

Investor Investee Main Business The parent company Hsin Yung Enterprise Corporation Waste treatment, disposal and cogeneration Super Max Engineering Enterprise Co., Ltd. Waste collection, treatment and disposal Ming Yu Investment Corporation Investment activities Ever Ecove Corporation Waste treatment, disposal and cogeneration	% of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Remark 68.46 68.46 68.46 - 48.13 48.13 48.12 1) 100.00 100.00 100.00 - 50.06 50.06 70.00 2)

Remark:

1) The Group holds a 48.13% interest in Super Max Engineering Enterprise Co., Ltd. The Group occupies more than half of the board’s seats and has the practical ability to direct the relevant activities of Super Max Engineering Enterprise Co., Ltd. Therefore, the Group deems it a subsidiary.
2) Ever Ecove Corporation handled a cash capital increase at the end of November 30, 2020. The Company did not subscribe for new shares based on the shareholding ratio. After the capital increase, the shareholding ratio dropped to 50.06%.
b. Subsidiaries excluded from the consolidated financial statements: None.

12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

June 30, 2021 December 31, 2020 June 30, 2020 Associates that are not individually material Kun Lin Engineering Co., Ltd. $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights Name of Associate June 30, 2021 December 31, 2020 June 30, 2020 Kun Lin Engineering Co., Ltd. 50% 50% 50% Aggregate information of associates that are not individually material For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 The Group’s share of: Net income for the period $ 5,151 $ 5,334 $ 10,749 $ 13,118	June 30, 2021 December 31, 2020 June 30, 2020 Associates that are not individually material Kun Lin Engineering Co., Ltd. $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights Name of Associate June 30, 2021 December 31, 2020 June 30, 2020 Kun Lin Engineering Co., Ltd. 50% 50% 50% Aggregate information of associates that are not individually material For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 The Group’s share of: Net income for the period $ 5,151 $ 5,334 $ 10,749 $ 13,118	June 30, 2021 December 31, 2020 June 30, 2020 Associates that are not individually material Kun Lin Engineering Co., Ltd. $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights Name of Associate June 30, 2021 December 31, 2020 June 30, 2020 Kun Lin Engineering Co., Ltd. 50% 50% 50% Aggregate information of associates that are not individually material For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 The Group’s share of: Net income for the period $ 5,151 $ 5,334 $ 10,749 $ 13,118	June 30, 2021 December 31, 2020 June 30, 2020 $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights	June 30, 2021 December 31, 2020 June 30, 2020 $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights	June 30, 2021 December 31, 2020 June 30, 2020 $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights	June 30, 2021 December 31, 2020 June 30, 2020 $ 136,548 $ 150,799 $ 138,545 Proportion of Ownership and Voting Rights
The Group’s share of: Net income for the period
		2021 $ 5,151			2021 $ 10,749	2020 $ 13,118

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The Group holds 50% of the issued share capital of Kun Lin Engineering Co., Ltd and controls 50% of the voting power in general meetings. According to the agreement made by the shareholders, the other shareholders control the composition of the board of directors of Kun Lin Engineering Co., Ltd and, therefore, the Group does not have control over them. The directors of the Company, however, consider that the Group does exercise significant influence over Kun Lin Engineering Co; therefore, the Group accounts them as associates.

13. PROPERTY, PLANT AND EQUIPMENT

==> picture [474 x 331] intentionally omitted <==

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

Land Machinery and Transportation Other Property under
Freehold Land Improvements Buildings Equipment Equipment Equipment Construction Total
Cost
Balance at January 1, 2021 $ 1,797,045 $ 164,600 $ 2,490,931 $ 4,732,313 $ 109,799 $ 90,242 $ - $ 9,384,930
Additions - - 1,585 24,277 5,276 9,375 1,000 41,513
Disposals - - - (1,580 ) (76 ) (1,080 ) - (2,674 )
Reclassification - - - 79,647 - (3,450 ) - 76,197
Balance at June 30, 2021 $ 1,797,045 $ 164,600 $ 2,492,516 $ 4,834,657 $ 114,999 $ 95,149 $ 1,000 $ 9,499,966
Accumulated depreciation
and impairment
Balance at January 1, 2021 $ - $ 129,356 $ 1,729,623 $ 3,988,749 $ 74,729 $ 54,063 $ - $ 5,976,520
Disposals - - - (789 ) (76 ) (1,019 ) - (1,884 )
Depreciation expense - 2,760 48,543 129,040 5,522 4,279 - 190,174
Balance at June 30, 2021 $ - $ 132,116 $ 1,778,166 $ 4,117,000 $ 80,205 $ 57,323 $ - $ 6,164,810
Carrying amount at
June 30, 2021 $ 1,797,045 $ 32,484 $ 714,350 $ 717,657 $ 34,749 $ 37,826 $ 1,000 $ 3,335,156
Carrying amount at
January 1, 2021 $ 1,797,045 $ 35,244 $ 761,308 $ 743,564 $ 35,070 $ 36,179 $ - $ 3,408,410
Cost
Balance at January 1, 2020 $ 1,845,363 $ 164,600 $ 2,405,334 $ 4,694,521 $ 108,289 $ 82,376 $ - $ 9,300,483
Additions - - 2,737 7,030 1,100 1,857 - 12,724
Disposals - - - (548 ) (3,407 ) (3,431 ) - (7,386 )
Reclassification - - 68,006 21,684 - - - 89,690
Transferred to investment
properties (48,318 ) - - - - - - (48,318 )
Balance at June 30, 2020 $ 1,797,045 $ 164,600 $ 2,476,077 $ 4,722,687 $ 105,982 $ 80,802 $ - $ 9,347,193
Accumulated depreciation
and impairment
Balance at January 1, 2020 $ - $ 123,743 $ 1,634,073 $ 3,737,062 $ 66,575 $ 49,754 $ - $ 5,611,207
Disposals - - - (274 ) (3,402 ) (3,431 ) - (7,107 )
Depreciation expense - 2,807 46,929 130,587 5,970 4,323 - 190,616
Balance at June 30, 2020 $ - $ 126,550 $ 1,681,002 $ 3,867,375 $ 69,143 $ 50,646 $ - $ 5,794,716
Carrying amount at
January 1, 2021 $ 1,797,045 $ 38,050 $ 795,075 $ 855,312 $ 36,839 $ 30,156 $ - $ 3,552,477
----- End of picture text -----

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

Land improvements	3-10 years
Buildings	2-55 years
Machinery and equipment	3-20 years
Transportation equipment	5-7 years
Other equipment	3-8 years

Due to the changes in the use of certain real estate, property, plant and equipment and investment property held by the Group, the net amount of some property, plant and equipment was $48,318 thousand which was transferred to investment property for the six months ended June 30, 2020.

Property, plant and equipment pledged as collateral for bank borrowings were set out in Note 32.

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14. LEASE ARRANGEMENTS

a. Right-of-use assets

June 30, 2021 December 31, 2020 June 30, 2020 $ 23,126 $ 19,476 $ 19,930 2,277 1,003 1,506 $ 25,403 $ 20,479 $ 21,436 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 6,750 $ - $ 11,583 $ - $ 3,202 $ 2,021 $ 5,521 $ 4,056 301 251 552 502 $ 3,503 $ 2,272 $ 6,073 $ 4,558	June 30, 2021 December 31, 2020 June 30, 2020 $ 23,126 $ 19,476 $ 19,930 2,277 1,003 1,506 $ 25,403 $ 20,479 $ 21,436 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 6,750 $ - $ 11,583 $ - $ 3,202 $ 2,021 $ 5,521 $ 4,056 301 251 552 502 $ 3,503 $ 2,272 $ 6,073 $ 4,558	June 30, 2021 December 31, 2020 June 30, 2020 $ 23,126 $ 19,476 $ 19,930 2,277 1,003 1,506 $ 25,403 $ 20,479 $ 21,436 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 6,750 $ - $ 11,583 $ - $ 3,202 $ 2,021 $ 5,521 $ 4,056 301 251 552 502 $ 3,503 $ 2,272 $ 6,073 $ 4,558	June 30, 2021 December 31, 2020 June 30, 2020 $ 23,126 $ 19,476 $ 19,930 2,277 1,003 1,506 $ 25,403 $ 20,479 $ 21,436 For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 6,750 $ - $ 11,583 $ - $ 3,202 $ 2,021 $ 5,521 $ 4,056 301 251 552 502 $ 3,503 $ 2,272 $ 6,073 $ 4,558
	$

2021 $ 6,750 $ 3,202 301 $ 3,503		2021 $ 11,583 $ 5,521 552 $ 6,073	2020 $ - $ 4,056 502 $ 4,558

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets for the six months ended June 30, 2021 and 2020.

b. Lease liabilities

		December 31,	December 31,
	June 30, 2021		2020	June 30, 2020
Carrying amount
Current	$ 11,883	$	8,756	$	8,864
Non-current	$ 10,403	$	9,738	$	10,326
Range of discount rates for lease	liabilities was as follows:
		December 31,
	June 30, 2021		2020	June 30, 2020
	0.878%-1.1%		1.1%		1.1%

c. Material lease-in activities and terms (the Group as lessee)

The Group leases land, buildings and other equipment for the use of plants and manufacturing with lease term of 2 to 3 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease term. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

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d. Other lease information

15.	For the Three Months Ended June 30 2021 2020 Expenses relating to short-term leases and low-value asset leases $ 3,526 $ 4,124 Total cash outflow for leases $ 9,276 $ 8,269 INVESTMENT PROPERTIES Cost Balance at January 1, 2021 Addition Balance at June 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Balance at June 30, 2021 Carrying amount at June 30, 2021 Carrying amount at January 1, 2021 Cost Balance at January 1, 2020 Transfers from property, plant and equipment Balance at June 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expense Balance at June 30, 2020 Carrying amount at June 30, 2020		For the Six Months Ended June 30	For the Six Months Ended June 30
			2021 $ 7,764 $ 15,077	2020 $ 7,310 $ 12,950 Amount $ 302,004 - $ 302,004 $ (196,474) (1,001) $ (197,475) $ 104,529 $ 105,530 $ 253,686 48,318 $ 302,004 $ (191,055) (1,001) $ (192,056) $ 109,948

For the six months ended June 30, 2021 and 2020, the reclassification of real estate, plant and equipment were set out in Note 13.

The investment properties are depreciated using the straight-line method in 50 years.

20 -

The fair value of the investment real estate was evaluated by the management of the Group with reference to prices of similar properties in the market. The fair value of the investment real estate as of December 31, 2020 and 2019, was $200,106 thousand and $203,658 thousand, respectively. According to management assessment, compared with December 31, 2020 and 2019, there was no significant change in the fair value of June 30, 2021 and 2020.

All of the Group’s investment property were held under freehold interests. The investment properties pledged as collateral for bank borrowings were set out in Note 32.

16. INTANGIBLE ASSETS

		December 31,
	June 30, 2021	2020	June 30, 2020
Service concession arrangements*	$ 3,608,007	$ 2,734,183	$ 1,444,369
Computer software	4,618	5,533	7,506
	$ 3,612,625	$ 2,739,716	$ 1,451,875

The subsidiary - Ever Ecove Corporation signed a construction service contract of “Building, Operation and Transfer of Taoyuan City Biomass Energy Center” with Taoyuan City Government, and the price of the right to charge public service users which was built by Ever Ecove Corporation, is classified as intangible assets - service concession arrangements. The construction period was from October 2018 to December 2021. Upon completion of construction, Ever Ecove Corporation shall provide operational services until October 2043. Upon expiration of the service concession arrangement, Ever Ecove Corporation shall return the right of management according to the contract and transfer the ownership of the built biomass energy center and related auxiliary facilities to Taoyuan City Government free of charge.

17. OTHER ASSETS

		December 31,	December 31,
	June 30, 2021		2020	June	30, 2020
Current
Prepayments	$ 134,390	$	96,949	$	20,354
Prepaid expenses	31,807		28,779		22,110
Tax credit	14,297		50,069		55,899
	$ 180,494	$	175,797	$	98,363
Non-current
Prepayments for equipment	$ 139,697	$	117,404	$	31,794

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18. BORROWINGS

a. Short-term borrowings

		December 31,
	June 30, 2021	2020	June 30, 2020
Unsecured borrowings
Line of credit borrowings	$ 400,000	$ 690,000	$ 516,830

The range of effective interest rate on bank loans was 0.77%, 0.88%-0.9% and 0.89%-1.3% per annum as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

b. Short-term bills payable

			December 31,
	June 30, 2021		2020	June 30, 2020
Commercial paper	$	550,000	$ 1,800,000	$	1,000,000
Less: Unamortized discounts on short-term
bills payable		(255)	(829)		(459)
	$	549,745	$ 1,799,171	$	999,541
Long-term borrowings
			December 31,
	June 30, 2021		2020	June 30, 2020
Secured borrowings
Bank loans (Note 32)	$	2,850,000	$ 1,990,000	$	1,110,000
Unsecured borrowings
Bank loans		20,000	20,000		20,000
		2,870,000	2,010,000		1,130,000
Less: Current portion of long-term borrowing		-	(300,000)		(300,000)
Unamortized discount		(15,892)	(16,531)		(17,069)
	$	2,854,108	$ 1,693,469	$	812,931

c. Long-term borrowings
1) The Company borrowed $300,000 thousand from Bank of Taiwan which were secured by land and building mortgage guarantees. The loan term is from March 2, 2020 to January 16, 2024. Starting from the actual date of disbursement, the Company paid interest monthly during the first 3 years. On the fourth year, the principal with interest will be paid monthly for 2 years. The effective interest rate was 0.893% per annum as of June 30, 2021 and 2020.
2) The Company borrowed $280,000 thousand from Cathay United Bank which were secured by land and building mortgage guarantees and unsecured borrowings of $20,000 thousand. The loan term is from February 24, 2020 to June 28, 2021. On June 28, 2021, the loan was agreed to be extended for three years. Starting from the actual date of disbursement, the Company makes monthly amortized payments on principal and interest. The Company will fully repay the debt when it is due. The effective interest rate was 0.95% per annum as of June 30, 2021 and 2020.
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3) In order to finance the project of “Building, Operation and Transfer of Taoyuan City Biomass Energy Center Protocol”, the subsidiary Ever Ecove Corporation signed a syndicate loan of $4,060,000 thousand with the syndicate bank formed by Hua Nan Bank on April 9, 2019 and the credit period is 15 years from the date of first drawdown. The loan was secured by a bank guarantee letter to obtain a loan of $2,270,000 thousand. The loan term is from October 2, 2019 to October 1, 2034. The first payment date of the loan will be due in 3 years and 6 months, and thereafter the loan will be paid by installments every 6 months, amortized in 24 periods. As of June 30, 2021 and 2020, the effective annual interest rate of the loan was 1.7895%.

19. TRADE PAYABLES

The average credit period on purchases of certain goods was 30 to 90 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

Retentions payable on construction contracts which are included in trade payables and are not bearing interest and are expected to be paid at the end of retention periods, which are within the normal operating cycle of the Group, usually more than twelve months after the reporting period. Refer to Note 23 for maturity analysis of retentions payable.

20. OTHER LIABILITIES

			December 31,	December 31,
	June 30, 2021			2020	June 30, 2020
Current
Other payables
Payable for transportation fees	$	40,939	$	47,442	$	39,606
Payable for repairs and maintenance		40,634		79,162		91,876
Payable for salaries or bonus		33,589		6,909		29,995
Payables for equipment		27,317		90,524		191,207
Payable for annual leave		20,846		36,017		21,340
Payable for compensation of employees and
remuneration of directors and supervisors		13,926		27,545		9,573
Payable for insurance expenses		9,426		20,107		8,879
Payable for sales tax		8,925		11,567		11,396
Dividend payable		-		-		788,073
Others		58,867		87,491		107,150
	$	254,469	$	406,764	$ 1,299,095
PROVISIONS
			December 31,
	June 30, 2021			2020	June 30, 2020
Current
Warranties*	$	61,567	$ 60,723		$	55,252
Onerous contract - loss on construction		4,510		69		1,437
	$	66,077	$ 60,792		$	56,689

21. PROVISIONS

23 -
The contractual obligation of the warranty expenditure is expected to occur during the warranty period after the completion of the construction contracts.

22. RETIREMENT BENEFIT PLANS

Employee benefits expense in respect of the Group’s defined retirement benefit plans were $3,729 thousand and $3,594 thousand for the six months ended June 30, 2021 and 2020, respectively, and were calculated using the respective year’s actuarially determined pension cost discount rate as of December 31, 2020 and 2019.

23. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The current/non-current classification of the Group’s assets and liabilities relating to steel structure business was based on its operating cycle. The amount expected to be recovered or settled within one year after reporting period and more than one year after reporting period for related assets and liabilities are as follows:

Within 1 Year
More Than 1
Year
June 30, 2021
Assets
Trade receivables
$ 999,725
$ -

Inventories
3,317,374
-
Contracts assets - current

1,915,286

1,021,920

$ 6,232,385
$ 1,021,920

Liabilities
Notes payable
$ 12,039
$ -

Trade payables
1,172,873
212,077
Contracts liabilities - current

1,169,098

-

$ 2,354,010
$ 212,077

December 31, 2020
Assets
Notes receivable
$ 126,203
$ -

Trade receivables
635,261
-
Inventories
986,652
-
Contracts assets - current

3,468,046

722,927

$ 5,216,162
$ 722,927

Liabilities
Notes payable
$ 931
$ -

Trade payables
907,412
212,977
Contracts liabilities - current

298,877

24,878

$ 1,207,220
$ 237,855

Total
$ 999,725
3,317,374

2,937,206
$ 7,254,305
$ 12,039
1,384,950

1,169,098
$ 2,566,087
$ 126,203
635,261
986,652

4,190,973
$ 5,939,089
$ 931
1,120,389

323,755
$ 1,445,075
(Continued)

24 -

Within 1 Year More Than 1 Year June 30, 2020 Assets Notes receivable $ 76 $ - Trade receivables 677,243 - Inventories 949,463 - Contracts assets - current 2,962,123 414,697 $ 4,588,905 $ 414,697 Liabilities Trade payables $ 701,842 $ 210,600 Contracts liabilities - current 167,384 9,775 $ 869,226 $ 220,375	Total $ 76 677,243 949,463 3,376,820 $ 5,003,602 $ 912,442 177,159 $ 1,089,601 (Concluded)

24. EQUITY

a. Share capital

Ordinary shares

		December 31,
	June 30, 2021	2020	June 30, 2020
Number of shares authorized (in thousands)	440,000	440,000	440,000
Shares authorized	$ 4,400,000	$ 4,400,000	$ 4,400,000
Number of shares issued and fully paid (in
thousands)	419,982	399,426	399,426
Shares issued	$ 4,199,820	$ 3,994,260	$ 3,994,260

On December 21, 2020, the board of directors resolved a cash capital increase by issuing 20,556 thousand new shares with a par value $10, and the base date of capital increase was April 8, 2021. The change of registration was completed on April 28, 2021.

The above cash capital increase proposal retains 10% of the cash capital increase shares, which totaled 2,056 thousand shares, for employees’ subscription. The Company recognized salary expenses and capital surplus - employee share options of $39,660 thousand on the grant date.

25 -

b. Capital surplus

			December	31,
	June 30, 2021		2020		June	30, 2020
May be used to offset a deficit,
distributed as cash dividends, or
transferred to share capital (1)
Issuance of ordinary shares	$	834,988	$	-	$	-
Treasury share transactions		439,828	333,208			333,208
Consolidation excess		51,956	51,956			51,956
Only be used to offset a deficit
Changes in ownership interests in
subsidiaries (2)		8,510	8,510			-
Expired employee share options		4,877	2,775			2,775
Unclaimed dividends		93		93		93
	$ 1,340,252		$ 396,542		$	388,032

1) Such capital surplus 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 transferred to share capital (limited to a certain percentage of the Company’s capital surplus and to once a year).
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, 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 distribution of dividends and bonuses to shareholders. For the policies on distribution of compensation of employees and remuneration of directors and supervisors before and after amendment, refer to f. employee benefits expense in Note 26.

The Company’s dividend policy is designed to meet present and future development projects and takes into consideration the investment environment, funding requirements, international or domestic competitive conditions while simultaneously meeting shareholders’ interests. When there is no cumulative loss, the parent company shall distribute dividends at no less than 50% of the net profit. The way to distribute dividends could be either through cash or shares, and cash dividends shall not be less than 50% of the total dividends.

Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. Legal reserve may be used to offset deficit. 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.

26 -

The appropriations of earnings for 2020 and 2019 which were approved in shareholders’ meetings on July 23, 2021 and June 18, 2020, respectively, were as follows:

		Appropriation of Earnings	Appropriation of Earnings		Dividends Per Share (NT$)	Dividends Per Share (NT$)	Dividends Per Share (NT$)
		For the	Years Ended		For the	Years Ended
		December 31			December 31
		2020	2019		2020		2019
	Legal reserve	$ 104,266	$ 94,744
	Cash dividends	872,378	793,071		$ 2.2	$	2.0
d.	Treasury shares
				Shares Held by
				Subsidiary -
			Shares	Ming Yu
			Transferred to	Investment
			Employees	Corporation		Total
			(In Thousands	(In Thousands		(In Thousands
			of Shares)	of Shares)		of Shares)
	Number of shares at January 1, 2021		2,891		2,499		5,390
	Additions		-		-		-
	Less		-		(2,499)		(2,499)
	Number of shares at June 30, 2021		2,891		-		2,891
	Carrying amount at June 30, 2021		$ 49,938	$	-	$	49,938
	Number of shares at January 1, 2020		2,891		4,000		6,891
	Additions		-		-		-
	Less		-		(1,501)		(1,501)
	Number of shares at June 30, 2020		2,891		2,499		5,390
	Carrying amount at June 30, 2020		$ 49,938	$	43,175	$	93,113

For the six months ended June 30, 2020 and 2021, the Company’s shares were held by its subsidiary-Ming Yu Investment Corporation. Ming Yu Investment Corporation sold 2,499 and 1,501 thousand shares to unrelated parties.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote. The subsidiaries holding treasury shares, however, are bestowed shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

27 -

25. REVENUE

Construction contract revenue Revenue from waste treatment Energy revenue Revenue from containers repair a. Contact balances Contract assets Properties construction Retention receivable Less: Allowance for impairment Contract liabilities Properties construction Waste treatment		For the Three Months Ended June 30 For the Six Months Ended June 30 2021 2020 2021 2020 $ 2,087,612 $ 1,531,782 $ 4,578,472 $ 3,322,506 382,514 391,425 788,660 835,365 91,182 100,026 203,178 208,299 40,177 35,117 79,372 72,772 $ 2,601,485 $ 2,058,350 $ 5,649,682 $ 4,438,942 June 30, 2021 December 31, 2020 June 30, 2020 $ 1,501,750 $ 3,036,146 $ 2,256,893 1,489,241 1,192,876 1,141,713 loss (53,785) (38,049) (21,786) $ 2,937,206 $ 4,190,973 $ 3,376,820 $ 1,169,098 $ 323,755 $ 177,159 14,020 59,054 47,545 $ 1,183,118 $ 382,809 $ 224,704		For the Six Months Ended June 30

The movements of the loss allowance of contract assets are as follows:

Balance at January 1 Add: Net remeasurement of loss allowance (reversed) Balance at June 30 b. Partially completed contracts		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 38,049 15,736 $ 53,785	2020 $ 24,949 (3,163) $ 21,786

The transaction prices, excluding any estimated amounts of variable consideration that are constrained, allocated to the performance obligations that are not fully satisfied and the expected timing for recognition of revenue are as follows.

Property construction contracts From July 2021 to June 2022 From July 2022 to June 2023 From July 2023 to after years	June 30, 2021 $ 12,995,738 6,020,604 116,006
	$ 19,132,348

28 -

	December 31,
	2020
Property construction contracts
In 2021	$ 13,959,269
In 2022	1,634,948
From 2023 to after years	311,433
	$ 15,905,650
	June 30, 2020
Property construction contracts
From July 2020 to June 2021	$ 11,401,943
From July 2021 to June 2022	3,193,253
From July 2022 to after years	511,340
	$ 15,106,536

26. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other income

Rental income Dividend revenue Others (Note 31) Other gains and losses Gain (loss) on disposal of property, plant and equipment Net foreign exchange losses Others	For the Three Months Ended June 30 2021 2020 $ 3,273 $ 3,190 6,191 6,752 9,122 15,457 $ 18,586 $ 25,399 For the Three Months Ended June 30 2021 2020 $ 3,674 $ (154) (1,927) (647) (728) (2,972) $ 1,019 $ (3,773)	For the Three Months Ended June 30 2021 2020 $ 3,273 $ 3,190 6,191 6,752 9,122 15,457 $ 18,586 $ 25,399 For the Three Months Ended June 30 2021 2020 $ 3,674 $ (154) (1,927) (647) (728) (2,972) $ 1,019 $ (3,773)		For the Six Months Ended June 30	For the Six Months Ended June 30
				2021 2020 $ 6,621 $ 6,552 6,191 6,752 9,290 24,605 $ 22,102 $ 37,909 For the Six Months Ended June 30
		2021 $ 3,674 (1,927) (728) $ 1,019		2021 $ 3,854 (7,393) (2,899) $ (6,438)	2020 $ (59) (777) (4,109) $ (4,945)

b. Other gains and losses
29 -

c. Finance costs

Interest on bank loans Interest on commercial paper Interest on lease liabilities Less: Amounts included in the cost of qualifying assets	For the Three Months Ended June 30 2021 2020 $ 11,353 $ 5,222 1,682 1,694 63 61 (9,091) (2,438) $ 4,007 $ 4,539	For the Three Months Ended June 30 2021 2020 $ 11,353 $ 5,222 1,682 1,694 63 61 (9,091) (2,438) $ 4,007 $ 4,539		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 11,353 1,682 63 (9,091) $ 4,007		2021 $ 21,817 4,079 115 (16,145) $ 9,866	2020 $ 7,993 3,020 128 (3,592) $ 7,549

Information about capitalized interest is as follows:

Capitalized interest amount Capitalization rate Depreciation and amortization Property, plant and equipment Investment property Right-of-use assets Intangible assets An analysis of deprecation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses	For the Three Months Ended June 30 2021 2020 $ 9,091 $ 2,438 1.3%-1.7895% 1.3%-1.7895% For the Three Months Ended June 30 2021 2020 $ 95,221 $ 95,523 500 500 3,503 2,272 1,233 1,839 $ 100,457 $ 100,134 $ 95,888 $ 95,102 3,336 3,193 $ 99,224 $ 98,295 $ 237 $ 806 996 1,033 $ 1,233 $ 1,839	For the Three Months Ended June 30 2021 2020 $ 9,091 $ 2,438 1.3%-1.7895% 1.3%-1.7895% For the Three Months Ended June 30 2021 2020 $ 95,221 $ 95,523 500 500 3,503 2,272 1,233 1,839 $ 100,457 $ 100,134 $ 95,888 $ 95,102 3,336 3,193 $ 99,224 $ 98,295 $ 237 $ 806 996 1,033 $ 1,233 $ 1,839		For the Six Months Ended June 30	For the Six Months Ended June 30
			2021 2020 $ 16,145 $ 3,592 1.3%-1.7895% 1.3%-1.7895% For the Six Months Ended June 30
		2021 $ 95,221 500 3,503 1,233 $ 100,457 $ 95,888 3,336 $ 99,224 $ 237 996 $ 1,233		2021 $ 190,174 1,001 6,073 2,575 $ 199,823 $ 190,776 6,472 $ 197,248 $ 545 2,030 $ 2,575	2020 $ 190,616 1,001 4,558 3,795 $ 199,970 $ 189,752 6,423 $ 196,175 $ 1,747 2,048 $ 3,795

d. Depreciation and amortization
30 -

e. Employee benefits expense

Post-employment benefits Defined contribution plans Defined benefit plans (Note 22) Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended June 30 2021 2020 $ 4,823 $ 4,555 2,134 1,797 164,121 153,489 $ 171,078 $ 159,841 $ 85,477 $ 82,147 85,601 77,694 $ 171,078 $ 159,841	For the Three Months Ended June 30 2021 2020 $ 4,823 $ 4,555 2,134 1,797 164,121 153,489 $ 171,078 $ 159,841 $ 85,477 $ 82,147 85,601 77,694 $ 171,078 $ 159,841		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 4,823 2,134 164,121 $ 171,078 $ 85,477 85,601 $ 171,078		2021 $ 9,412 3,729 362,166 $ 375,307 $ 172,315 202,992 $ 375,307	2020 $ 8,958 3,594 304,792 $ 317,344 $ 162,043 155,301 $ 317,344

f. Compensation of employees and remuneration of directors and supervisors

According to the Articles of Incorporation of the Company, the Company accrued compensation of employees and remuneration of directors and supervisors at rates of no less than 0.5% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. The compensation of employees and the remuneration of directors and supervisors for the six months ended June 30, 2021 and 2020, are as follows:

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount	For the Six Months Ended June 30
	2021 2020 0.50% 0.58% 0.45% 0.53%

Compensation of employees Remuneration of directors and supervisors	For the Three Months Ended June 30 2021 2020 Cash Cash $ 1,422 $ 1,352 1,250 1,250	For the Six Months Ended June 30	For the Six Months Ended June 30
	2021 Cash $ 1,422 1,250	2021 Cash $ 2,809 2,500	2020
			Cash $ 2,704 2,500

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

31 -

The Company held board of directors’ meetings on March 10, 2021 and March 16, 2020, and those meetings resulted in the actual amounts of the remuneration of directors and supervisors paid for 2020 and 2019 to differ from the amounts recognized in the financial statements for the years ended December 31, 2020 and 2019, respectively. The differences were adjusted to profit and loss in the following year.

Amounts approved in the board of directors’ meeting Amounts recognized in the annual financial statements	For the Years Ended December 31	For the Years Ended December 31
	2020 Compensation of employees Remuneration of Directors and Supervisors $ 5,745 $ 5,000 $ 5,745 $ 5,000	2019
		Compensation of employees Remuneration of Directors and Supervisors $ 5,407 $ 6,819 $ 5,407 $ 7,000

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Company’s board of directors in 2021 and 2020 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

27. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of tax expense (profit) recognized in profit or loss are as follows:

Current tax In respect of the current year Income tax on unappropriated earning Adjustment for prior year Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Three Months Ended June 30 2021 2020 Cash Cash $ 89,242 $ 71,102 1,443 9,857 (2,133) 15 88,552 80,974 (1,477) 3,294 $ 87,075 $ 84,268	For the Three Months Ended June 30 2021 2020 Cash Cash $ 89,242 $ 71,102 1,443 9,857 (2,133) 15 88,552 80,974 (1,477) 3,294 $ 87,075 $ 84,268	For the Three Months Ended June 30 2021 2020 Cash Cash $ 89,242 $ 71,102 1,443 9,857 (2,133) 15 88,552 80,974 (1,477) 3,294 $ 87,075 $ 84,268		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 Cash $ 89,242 1,443 (2,133) 88,552 (1,477) $ 87,075			2021 Cash $ 170,516 1,443 (2,133) 169,826 (9,728) $ 160,098		2020
							Cash $ 139,398 9,857 15 149,270 6,290 $ 155,560

b. Income tax assessments

The income tax of the Group through 2018 have been assessed by the Tax Authorities.

32 -

28. EARNINGS PER SHARE

Units: NT$ Per Share

Basic earnings per share Diluted earnings per share	For the Three Months Ended June 30 2021 2020 $ 0.60 $ 0.57 $ 0.60 $ 0.57	For the Three Months Ended June 30 2021 2020 $ 0.60 $ 0.57 $ 0.60 $ 0.57	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 0.60 $ 0.60		2021 $ 1.26 $ 1.26	2020 $ 1.08 $ 1.08

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net profit for the period

Profit (loss) for the period attributable to owners of the Company Shares Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares outstanding in the computation of diluted earnings per share	For the Three Months Ended June 30 2021 2020 $ 250,368 $ 226,292 For the Three Months Ended June 30 2021 2020 414,670 394,036 20 33 414,690 394,069	For the Three Months Ended June 30 2021 2020 $ 250,368 $ 226,292 For the Three Months Ended June 30 2021 2020 414,670 394,036 20 33 414,690 394,069		For the Six Months Ended June 30	For the Six Months Ended June 30
				2021 2020 $ 507,763 $ 425,718 Unit: In Thousand Shares For the Six Months Ended June 30
		2021 414,670 20 414,690		2021 404,410 87 404,497	2020 393,987 135 394,122

The Group may settle the compensation paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are 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.

33 -

29. 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 stakeholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Group (comprising issued capital, reserves, retained earnings and other equity).

The Group is not subject to any externally imposed capital requirements.

30. FINANCIAL INSTRUMENTS

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

Management believes that the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

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

Fair value hierarchy as of June 30, 2021

Level 1 Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares $ 13,891,803 Unlisted shares - ROC - Unlisted shares in other country - $ 13,891,803 Fair value hierarchy as of December 31, 2020 Level 1 Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares $ 5,744,880 Unlisted shares - ROC - Unlisted shares in other country - $ 5,744,880	Level 2 $ - - - $ - Level 2 $ - - - $ -	Level 3 $ - 870,646 161,398 $ 1,032,044 Level 3 $ - 881,433 149,199 $ 1,030,632	Total $ 13,891,803 870,646 161,398
			$ 14,923,847
			Total $ 5,744,880 881,433 149,199
Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares - ROC Unlisted shares in other country
			$ 6,775,512

34 -

Fair value hierarchy as of June 30, 2020

Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares - ROC Unlisted shares in other country	Level 1 $ 3,966,159 - - $ 3,966,159	Level 2 $ - - - $ -	Level 3 $ - 749,847 148,186 $ 898,033	Total $ 3,966,159 749,847 148,186
				$ 4,864,192

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments: None
3) Valuation techniques and inputs applied for Level 2 fair value measurement: None
4) Valuation techniques and inputs applied for Level 3 fair value measurement: The fair values of unlisted equity securities - ROC were determined using market approach. The market approach is used to arrive at their par values for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.
c. Categories of financial instruments

			December 31,	December 31,
	June 30, 2021			2020	June 30, 2020
Financial assets
Financial assets at amortized cost (1)	$	5,939,919	$	5,287,448	$	5,028,881
Financial assets at FVTOCI
Equity instruments		14,923,847		6,775,512		4,864,192
Financial liabilities
Financial liabilities measured at amortized
cost (2)		5,957,180		6,337,336		4,356,140

1) The balances included financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade and other receivables, financial assets at amortized cost and refundable deposits.
2) The balances included financial liabilities measured at amortized cost, which comprise notes payable and trade payables, other payables, guarantee deposits received, short-term borrowings, short-term bills payable, current portion of long-term borrowings and long-term borrowings.
35 -
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, trade receivables, trade payables, borrowings and lease liabilities. The Group’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

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

a) Foreign currency risk

The Group had foreign currency sales and purchases, which exposed the Group to foreign currency risk. The foreign currency fluctuation affects the financial instruments market value due to the Group’s policy of hedges in pre-purchase of foreign forward exchanges.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the year are set out in Note 34.

Sensitivity analysis

The Group was mainly exposed to the Currency USD, Currency EUR and Currency JPY.

The following table details the Group’s sensitivity to an increase and a decrease in New Taiwan dollars (i.e., the functional currency) against the relevant foreign currencies. A sensitivity rare of 5% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the year for a 5% change in foreign currency rates. The positive numbers in the following table indicate the amount of increase in net profit before tax when the New Taiwan Dollars depreciates by 5% relative to the relevant currencies; when the New Taiwan Dollars appreciates by 5% relative to the relevant foreign currencies, its impact on the net profit before tax will be The negative number of the same amount.

==> picture [428 x 11] intentionally omitted <==

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

USD Impact EUR Impact JPY Impact
----- End of picture text -----

	USD Impact	EUR Impact	JPY Impact
Profit or loss	For the Six Months Ended June 30 2021 2020 $ 1,714 * $ 1,186 *	For the Six Months Ended June 30 2021 2020 $ 3,160 * $ 4,429 *	For the Six Months Ended June 30
			2021 2020 $ 3,462 * $ 8,155 *

This was mainly attributable to the exposure on outstanding demand deposits in USD, EUR and JPY in cash flow hedges at the end of the period.

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates.

36 -

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

			December 31,	December 31,
	June 30, 2021			2020	June 30, 2020
Fair value interest rate risk
Financial assets	$	833,478	$	904,424	$	301,035
Financial liabilities		1,272,031		2,807,665		1,368,731
Cash flow interest rate risk
Financial assets		3,228,239		3,242,038		3,382,142
Financial liabilities		2,554,108		1,693,469		1,279,761

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease 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 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the six months ended June 30, 2021 and 2020 would have increased/decreased by $1,685 thousand and $5,256 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate bank borrowings, and demand deposits.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities. The Group’s equity price risk was mainly concentrated on equity instruments operating in Taiwan industry sector quoted in the Taiwan Stock Exchange.

Sensitivity analysis

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

If equity prices had been 3% higher/lower, pre-tax profit for six months ended June 30, 2021 and 2020 would have increased/decreased by $447,715 thousand and $145,926 thousand, respectively, as a result of the changes in fair value of financial assets as FVTOCI.

The Group’s sensitivity to equity prices increased due to the impact of equity price fluctuations.

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. At the end of the reporting period, the Group’s maximum exposure to credit risk which may cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantees provided by the Group could arise from the carrying amount of the respective recognized financial assets as stated in the balance sheets.

37 -

In order to minimize credit risk, management of the Group is responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts. In this regard, management believes the Group’s credit risk was significantly reduced.

The Group’s concentration of credit risk of 37% and 31% of total trade receivables as of June 30, 2021 and 2020, respectively, was related to the Group’s five largest customers. The credit concentration risk of the remaining trade receivables is relatively insignificant.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2021 and 2020, the Group had available unutilized bank loan facilities set out in (b) below.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed upon repayment periods. The tables has been 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 tables included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

June 30, 2021 Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	Less than 1 Year $ 1,916,623 12,052 60,932 950,394 $ 2,940,001	1-5 Years $ 236,705 10,478 934,902 306,807 $ 1,488,892	5+ Years $ - - 1,946,241 - $ 1,946,241

38 -

December 31, 2020

Less than 1
Year
1-5 Years
5+ Years
Non-derivative financial liabilities
Non-interest bearing
$ 1,613,362
$ 216,101
$ -
Lease liabilities
8,908
9,835
-
Variable interest rate liabilities
326,622
349,051
1,261,543
Fixed interest rate liabilities

2,489,719

308,147

-
$ 4,438,611
$ 883,134
$ 1,261,543
June 30, 2020
Less than 1
Year
1-5 Years
5+ Years
Non-derivative financial liabilities
Non-interest bearing
$ 1,496,197
$ 213,724
$ -
Lease liabilities
9,039
10,442
-
Variable interest rate liabilities
410,354
353,871
587,360
Fixed interest rate liabilities

1,349,766

-

-
$ 3,265,356
$ 578,037
$ 587,360
Financing facilities
June 30, 2021
December 31,
2020
June 30, 2020
Unsecured bank overdraft facility
Amount used
$ 970,000
$ 2,510,000
$ 1,536,830
Amount unused

6,194,000

4,759,360

6,087,500
$ 7,164,000
$ 7,269,360
$ 7,624,330
Secured bank overdraft facility
Amount used
$ 3,200,000
$ 1,990,000
$ 1,110,000
Amount unused

2,598,400

3,450,000

4,238,400
$ 5,798,400
$ 5,440,000
$ 5,348,400

39 -

31. TRANSACTIONS WITH RELATED PARTIES

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 the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related parties and their relationships

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Related Party Relationship with the Company
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Evergreen International Corporation	Investor that has significant influence over the Group
EVA Airways Corporation	Related party in substance
Evergreen Security Corporation	Related party in substance
Ever Accord Construction Corporation	Related party in substance
Evergreen Marine Corporation	Related party in substance
Kun Lin Engineering Corporation	Associate

b. Sales of goods

Related Party Investor that has significant influence over the Group Related party in substance	For the Three Months Ended June 30 2021 2020 $ 197 $ 203 307,925 117,479 $ 308,122 $ 117,682	For the Three Months Ended June 30 2021 2020 $ 197 $ 203 307,925 117,479 $ 308,122 $ 117,682		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 197 307,925 $ 308,122		2021 $ 347 538,619 $ 538,966	2020 $ 426 188,154 $ 188,580

The sales conditions for related party in substance were not significantly different from those sales made to the Group’s usual list prices. There was no comparable sales price between related party in substance for repairing containers. Payments are collected within 60 days after issuing invoices.

c. Other income

Related Party Associate Purchases of goods and expenses Related Party Investor that has significant influence over the Group Related party in substance	For the Three Months Ended June 30 2021 2020 $ 180 $ 200 For the Three Months Ended June 30 2021 2020 $ 818 $ 4,268 5,048 5,707 $ 5,866 $ 9,975	For the Three Months Ended June 30 2021 2020 $ 180 $ 200 For the Three Months Ended June 30 2021 2020 $ 818 $ 4,268 5,048 5,707 $ 5,866 $ 9,975		For the Six Months Ended June 30	For the Six Months Ended June 30
				2021 2020 $ 180 $ 200 For the Six Months Ended June 30
		2021 $ 818 5,048 $ 5,866		2021 $ 5,193 10,319 $ 15,512	2020 $ 6,157 10,746 $ 16,903

d. Purchases of goods and expenses

The purchases to related parties had no significant differences with other non-related parties.

40 -

e. Contract assets

			December 31,	December 31,
Related Party	June	30, 2021		2020	June	30, 2020
Related party in substance	$	97,578	$	56,697	$	39,960

For the six months ended June 30, 2021 and 2020, impairment loss of $3,760 thousand and $894 thousand, respectively, was recognized for contract assets from related parties.

f. Contract liabilities

			December	December	31,
Related Party	June	30, 2021		2020		June 30, 2020
Related party in substance	$	34,650	$		-	$ -

g. Receivables from related parties (excluding loans to related parties and contract assets)

Trade receivables

			December	December	31,
Related Party	June	30, 2021		2020		June	30, 2020
Investor that has significant influence over the
Group	$	105	$	156		$	140
Related party in substance		27,316		151,302			26,916
	$	27,421	$	151,458		$	27,056
Other receivables
			December		31,
Related Party	June	30, 2021		2020		June	30, 2020
Related party in substance	$	3,000	$		-	$	-
Payables to related parties
Other payables
			December		31,
Related Party	June	30, 2021		2020		June	30, 2020
Investor that has significant influence over the
Group	$	721	$	2,074		$	1,290
Related party in substance		3,578		2,398			2,545
	$	4,299	$	4,472		$	3,835

h. Payables to related parties

The outstanding trade payables from related parties are unsecured.

41 -
i. Lease arrangements

			December 31,	December 31,
Line Item	Related Party	June 30, 2021		2020	June	30, 2020
Right-of-use	Investor that has significant	$ -	$	1,004	$	1,506
assets	influence over the Group
Lease liabilities	Investor that has significant	$ -	$	1,015	$	1,518
	influence over the Group

The Company rents other equipment from Evergreen International Corporation for $85 thousand per month, and the lease terms is from January 2019 to December 2021. However, the Company terminated the agreement in advance in May 2021, and recognized the gain on lease modification of $7 thousand.

j. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended June 30 2021 2020 $ 9,537 $ 5,669 230 662 $ 9,767 $ 6,331	For the Three Months Ended June 30 2021 2020 $ 9,537 $ 5,669 230 662 $ 9,767 $ 6,331		For the Six Months Ended June 30	For the Six Months Ended June 30
		2021 $ 9,537 230 $ 9,767		2021 $ 19,319 463 $ 19,782	2020 $ 15,810 1,683 $ 17,493

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings, provisional attachment and performance guarantees, etc.:

		December 31,
	June 30, 2021	2020	June 30, 2020
Property, plant, and equipment, net	$ 2,306,122	$ 2,335,640	$ 2,352,013
Investment properties	96,705	97,706	98,707
Financial assets at amortized cost	26,533	23,452	17,614
	$ 2,429,360	$ 2,456,798	$ 2,468,334

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of June 30, 2021 and 2020 were as follows:

a. As of June 30, 2021, December 31, 2020 and June 30, 2020, unused letters of credit for purchasing of materials are as follows:

			December 31,	December 31,
Currency	June 30, 2021			2020	June 30, 2020
USD	$	942	$	984	$	703
NTD		844,449		472,963		462,658

42 -
b. The Group’s unrecognized contractual commitments for the construction of intangible assets service concession arrangements are as follows:

			December 31,
Currency	June 30, 2021		2020	June 30, 2020
NTD	$	1,350,445	$ 1,908,254	$ 2,724,916
JPY		636,176	1,318,425	2,829,384
EUR		3,052	6,209	8,803
USD		926	2,257	3,753

c. For acquisition of property, plant and equipment, unrecognized commitments were as follows:

			December	31,
Monetary Items	June	30, 2021	2020		June 30, 2020
NTD	$	36,289	$	-	$	-
EUR		2,245		-		-

34. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

June 30, 2021

Unit: In Thousands of Foreign Currency/New Taiwan Dollars

		Foreign		Carrying	Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	1,230	27.86 (USD:NTD)	$	34,275
EUR		1,906	33.15 (EUR:NTD)		63,190
JPY		274,684	0.252 (JPY:NTD)		69,248
Non-monetary items
Investments accounted for using the equity
method
RMB		3,027	4.309 (RMB:NTD)		13,044
Financial liabilities
Monetary items
RMB		818	4.309 (RMB:NTD)		3,523

43 -

December 31, 2020

Unit: In Thousands of Foreign Currency/New Taiwan Dollars

		Foreign		Carrying	Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	206	28.48 (USD:NTD)	$	5,859
EUR		3,063	35.02 (EUR:NTD)		107,263
JPY		186,930	0.2763 (JPY:NTD)		51,649
Non-monetary items
Investments accounted for using the equity
method
RMB		2,939	4.377 (RMB:NTD)		12,866
Financial liabilities
Monetary items
RMB		1,094	4.377 (RMB:NTD)		4,789
June 30, 2020

Unit: In Thousands of Foreign Currency/New Taiwan Dollars

		Foreign		Carrying	Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	800	29.66 (USD:NTD)	$	23,725
EUR		2,657	33.34 (EUR:NTD)		88,581
JPY		597,887	0.2728 (JPY:NTD)		163,098
Non-monetary items
Investments accounted for using the equity
method
RMB		2,864	4.191 (RMB:NTD)		12,003
Financial liabilities
Monetary items
RMB		472	4.191 (RMB:NTD)		1,980

35. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and information on investees:

1) Financing provided: None.

2) Endorsements/guarantees provided: See Table 1 below.

44 -
3) Marketable securities held (excluding investment in subsidiaries, associates and jointly controlled entities): See Table 2 below.
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: See Table 3 below.
5) Acquisitions of individual real estate properties at costs of at least NT $300 million or 20% of the paid-in capital: None.
6) Disposals of individual real estate properties 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 4 below.
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
9) Trading in derivative instruments: None.
10) Intercompany relationships and significant intercompany transactions: See Table 5 below.
11) Information on investees: See Table 6 below.
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 below.
2) 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 the purpose.
- e) The highest balance, the ending 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.
c. Information on major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder: See Table 8 attached.
45 -

36. 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. The Group’s reportable 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 six months ended June 30, 2021 Revenue from external customers Inter-segment revenue Segment revenue Segment income Administration cost Interest income Other income Other gains and losses Finance costs Share of profit of associates and joint ventures accounted for using the equity method Profit before tax For the six months ended June 30, 2020 Revenue from external customers Inter-segment revenue Segment revenue Segment income Administration cost Interest income Other income Other gains and losses Finance costs Share of profit of associates and joint ventures accounted for using the equity method Profit before tax	Steel Structures $ 4,578,472 - $ 4,578,472 $ 297,214 $ 3,322,506 - $ 3,322,506 $ 186,622	Hsin Yung Enterprise Corporation $ 608,838 - $ 608,838 $ 356,109 $ 654,234 - $ 654,234 $ 359,675	Super Max Engineering Enterprise Co., Ltd. $ 383,000 - $ 383,000 $ 168,188 $ 389,430 - $ 389,430 $ 179,666	Ever Ecove Corporation $ - - $ - $ (12,734 ) $ - - $ - $ (11,447 )	Others $ 79,372 - $ 79,372 $ 12,350 $ 72,772 - $ 72,772 $ 12,708	Eliminations $ - - $ - $ 1,897 $ - - $ - $ 1,653	Total $ 5,649,682 -
							5,649,682
							823,024 (24,492 ) 13,546 22,102 (6,438 ) (9,866 ) 10,749
							$ 828,625
							$ 4,438,942 -
							4,438,942
							728,877 (26,696 ) 14,026 37,909 (4,945 ) (7,549 ) 13,118
							$ 754,740

Sales between departments are priced at cost.

Segment profit represented the profit before tax earned by each segment without headquarters’ administrative cost, the share of profit of associates, finance costs, other income or other gains and losses. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

37. OTHERS

Due to the spread of COVID-19, the Group’s assessment of the epidemic has little impact on the overall operations; however, the international epidemic is still uncertain. The Group will continue to pay attention to the development of the epidemic and take relevant counter measurements to alleviate the impact on the Group’s operations.

46 -

TABLE 1

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE SIX MONTHS ENDED JUNE 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Endorsee/Guarantee Ratio of
Limit on
Maximum Accumulated
Endorsement/ Endorsement/ Endorsement/ Endorsement/
Amount Amount Endorsement/
Guarantee Actual Aggregate Guarantee Given Guarantee Given Guarantee Given
No. Endorsed/ Endorsed/ Guarantee to Net
Endorser/Guarantor Amount Ending Balance Borrowing Endorsement/ by Parent on by Subsidiaries on Behalf of Note
(Note 1) Name Relationship Guaranteed Guaranteed by Equity in Latest
Provided To Amount Guarantee Limit Behalf of on Behalf of Companies in
During the Collateral Financial
Each Guarantee Subsidiaries Parent Mainland China
Period Statements
Party
(%)
0 Evergreen Steel Corporation Ever Ecove Subsidiary $ 12,027,662 $ 3,087,000 $ 3,087,000 $ 3,087,000 $ - 12.83 $ 12,027,662 Y - - Note 3
Corporation
1 Ming Yu Investment Corporation Evergreen Steel Directly and indirectly holds 8,082,160 1,201,220 1,201,220 1,201,220 - 297.25 8,082,160 - Y - Note 2
Corporation more than 50 percent of
the voting shares
----- End of picture text -----

Note 1: The Company and its subsidiaries are numbered as follows:
a. “0” for the Company.
b. Subsidiaries are numbered from “1”.
Note 2: According to endorsement or guarantee provided regulation formulated by subsidiaries, the total amount of endorsement or guarantee that the Company is allowed to provide is up to 2,000% of the net worth value of the latest financial statements of the Company.
Note 3: The limit on endorsements or guarantees provided to each guaranteed party is up to 50% of the net worth value of the latest financial statements of the Company. However, the amount of the Company’s endorsements or guarantees for subsidiaries holding more than 50% of the shares is not limited by the above ratio, but the maximum shall not exceed 50% of the net value of the most recent financial statements of the Company.
Note 4: The limit on endorsements or guarantees provided to each guaranteed party is up to 50% of the net worth value of the latest financial statements of the Company. However, the amount of endorsements or guarantees for subsidiaries is not limited by the above ratio, but the maximum shall not exceed 200% of the net value of the most recent financial statements of the Company.
47 -

TABLE 2

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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June 30, 2021
Relationship with the Financial Statement Number of
Holding Company Name Type and Name of Marketable Securities Carrying Percentage of Note
Holding Company Account Shares Fair Value
Amount Ownership (%)
(In Thousands)
Evergreen Steel Corporation Ordinary shares
EVA Airways Corporation Investee of the Company’s Financial assets at FVTOCI - 217,326 $ 4,379,114 4.32 $ 4,379,114
mainly shareholders non-current
Shin Kong Financial Holding Co., Ltd. - Financial assets at FVTOCI - 7,934 75,616 0.06 75,616
non-current
Evergreen Marine Corporation Investee of the Company’s Financial assets at FVTOCI - 38,262 7,537,555 0.73 7,537,555
mainly shareholders non-current
Taiwan High Speed Rail Corporation - Financial assets at FVTOCI - 16,000 478,400 0.28 478,400
non-current
Taiwan Terminal Services Corporation Investee of the Company’s Financial assets at FVTOCI - 100 942 1.00 942
mainly shareholders non-current
Taiwan Aerospace Corporation - Financial assets at FVTOCI - 5,503 61,678 4.06 61,678
non-current
Pacific Resources Corporation - Financial assets at FVTOCI - 2,625 - 2.56 -
non-current
Taiwan Incubator SME Development Corporation - Financial assets at FVTOCI - 7,689 67,355 10.90 67,355
non-current
Evergreen Heavy Industrial Corp.(Malaysia) Berhad - Financial assets at FVTOCI - 6,679 161,398 13.39 161,398
non-current
Dongwei Transportation Co., Ltd. - Financial assets at FVTOCI - 660 7,190 18.86 7,190
non-current
Ever Accord Construction Corporation Investee of the Company’s Financial assets at FVTOCI - 7,500 82,791 12.50 82,791
mainly shareholders non-current
UNI Airways Corporation Investee of the Company’s Financial assets at FVTOCI - 56,475 650,539 14.99 650,539
mainly shareholders non-current
Evergreen Security Corporation Investee of the Company’s Financial assets at FVTOCI - 10 151 0.05 151
mainly shareholders non-current
Hsin Yung Enterprise Corporation Evergreen Marine Corporation Investee of the Company’s Financial assets at FVTOCI - 7,214 1,421,118 0.14 1,421,118
mainly shareholders non-current
Super Max Engineering Enterprise Co., Ltd. P.T. Super Max Indonesia - Financial assets at FVTOCI - - - 11.00 -
non-current
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48 -

TABLE 3

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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

Beginning Balance Acquisition Disposal Ending Balance
Type and Name of
Financial Statement Number of Number of Number of Number of
Company Name Marketable Counterparty Relationship Carrying Gain (Loss) on
Account Shares Amount Shares Amount Shares Amount Shares Amount
Securities Amount Disposal
(In Thousands) (In Thousands) (In Thousands) (In Thousands)
Evergreen Steel Ordinary shares - Financial assets at - Related party in 240,604 $ 3,163,939 100 $ 1,576 23,378 $ 371,700 $ 337,980 $ 33,720 217,326 $ 4,379,114
Corporation EVA Airways FVTOCI - substance
Corporation non-current
----- End of picture text -----

49 -

TABLE 4

EVERGREEN STEEL 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 SIX MONTHS ENDED JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Differences in Transaction Terms Notes/Accounts
Transaction Details
Compared to Third Party Transaction (Payable) or Receivable
Purchaser/seller Related Party Relationship Note
Purchase/ % of % to
Amount Payment Terms Unit Price Payment Terms Ending Balance
Sale Total Total
Evergreen Steel Corporation Ever Accord Construction Corporation Related party in substance Sale $ 464,558 9.97 30-60 days No significant difference 30-60 days $ 97,551 3.87 Note
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Note: The trade receivables include contract assets.

50 -

TABLE 5

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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

Transaction Details
No. Relationship % of Total
Investee Company Counterparty
(Note 1) (Note 2) Financial Statement Accounts Amount Payment Terms Sales or Assets
(Note 3)
0 Evergreen Steel Corporation Hsin Yung Enterprise Corporation a Miscellaneous income $ 972 According to mutual agreements 0.02
Hsin Yung Enterprise Corporation a Gain on disposal of property, plant and equipment 392 According to mutual agreements 0.01
Ever Ecove Corporation a Miscellaneous income 335 According to mutual agreements 0.01
----- End of picture text -----

Note 1: The parent company and its subsidiaries are coded as follows:
a. The parent company is coded “0”.
b. The subsidiaries are coded consecutively beginning from “1” in the order presented in the table above.

Note 2: Nature of relationships are coded as follows:

a. From the parent company to its subsidiary.
b. From a subsidiary to its parent company.
c. Between subsidiaries.
Note 3: The percentage calculation is based on the consolidated total operating revenue or total assets. For balance sheet items, each item’s end-of-period balance is shown as a percentage to the consolidated total assets as of June 30, 2021. For profit or loss items, cumulative amounts are shown as percentages to the consolidated total operating revenue for the six months ended June 30, 2021.
Note 4: The table above only discloses related-party transactions which are material.
51 -

TABLE 6

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ACCOUNTED FOR FOR THE SIX MONTHS ENDED JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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

Original Investment
Balance as of June 30, 2021
Amount Share of
Net Income
Percentage Profits/
Investor Company Investee Company Location Main Businesses and Products (Losses) of Note
Shares (In of Carrying Losses of
June 30, 2021 [December 31, ] the Investee
2020 Thousands) Ownership Amount Investee
(%)
Evergreen Steel Corporation Super Max Engineering Enterprise Taiwan Waste collection, treatment and disposal $ 594,440 $ 594,440 24,147 48.13 $ 848,948 $ 148,365 $ 71,402 Subsidiary
Co., Ltd.
Hsin Yung Enterprise Corporation Taiwan Waste treatment, disposal and cogeneration 992,666 992,666 99,267 68.46 2,229,544 291,942 199,862 Subsidiary
Ming Yu Investment Corporation Taiwan Investment activities 239,847 239,847 10,350 100.00 468,203 (8,074) (8,074) Subsidiary
Ever Ecove Corporation Taiwan Waste treatment, disposal and cogeneration 801,000 801,000 80,100 50.06 772,467 (16,577) (8,299) Subsidiary
Super Max Engineering Kun Lin Engineering Co., Ltd. Taiwan Planning of wastewater, air and noise 18,000 18,000 5,000 50.00 136,548 21,498 N/A Accounted for
Enterprise Co., Ltd. prevention; design, construction, sale, using the equity
operation and maintenance of related method
equipment
----- End of picture text -----

Note 1: All amounts have been eliminated upon consolidation.

Note 2: Refer to Table 7 for information on investments in mainland China.

52 -

TABLE 7

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE SIX MONTHS ENDED JUNE 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Accumulated Investment of Flows Accumulated Accumulated
Percentage
Total Amount of Method of Outflow of Outflow of Net Income of Share of Profit Carrying Inward
Investee Company Main Businesses and Products Paid-in Capital Investment Investment from Outflow Inflow Investment from (Losses) of the Ownership (Loss) Amount as of Remittance of Note
Taiwan as of Taiwan as of Investee Company June 30, 2021 Earnings as of
January 1, 2021 June 30, 2021 (%) June 30, 2021
Kun Shan Design, manufacture and installation of waste water, waste gas equipment $ 11,144 Note 1 $ 11,144 $ - $ - $ 11,144 $ 8,409 24.07 $ 2,024 $ 13,044 $ 42,570
and various piping (US$ 400 ) (US$ 400 ) (US$ 400 ) (RMB 1,931 ) (US$ 1,528 )
Accumulated Investments in Mainland China as of Investment Amount Authorized by the
June 30, 2021 Investment Commission, MOEA Upper Limit on Investment
$ 11,144 $ 11,144 $ 16,252,044
(US$ 400 ) (US$ 400 ) (Note 4)
(Note 3)
----- End of picture text -----

Note 1: Indirect investment in mainland China through holding companies.

Note 2: The amount was recognized based on the investee’s unreviewed financial statements.

Note 3: Investments approved by the Ministry of Economic Affairs, ROC are as follows:

Name of Investee Date Order No. Approved Amount Kun Shan 2007.6.15 09600201610 US$ 200 Kun Shan 2008.1.25 09700027430 US$ 100 Kun Shan 2008.7.22 09700252240 US$ 100 US$ 400

Note 4: The Company’s upper limit on investments to China: $27,086,740 (net worth) × 60% ＝ $16,252,044.

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TABLE 8

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS JUNE 30, 2021

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Shares
Name of Major Shareholder Number of Percentage of
Shares Ownership (%)
Evergreen International Corporation 91,101,257 21.69
EVA Airways Corporation 38,201,625 9.09
Continental Engineering Corporation 25,645,907 6.10
Chang, Kuo-Hua 25,008,820 5.95
Chang, Kuo-Ming 25,008,820 5.95
Chang, Kuo-Cheng 25,008,820 5.95
Chang Yung-Fa Foundation 25,008,820 5.95
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Note: The information on the major shareholder listed in the table above is based on the total number of ordinary and preference shares (including treasury shares) owned by the shareholder at a minimum shareholding percentage of 5%, and which have been delivered as non-physical securities to the Taiwan Depository & Clearing Corporation on the last business day at the end of the quarter. The actual number of shares delivered as non-physical securities and the number of shares recorded in the Company's consolidated financial statements may be different due to differences in the basis of preparation and calculation.

54 -

AI assistant

EGST — Interim / Quarterly Report 2021

51983_rns_2021-12-29_d6ba5489-3960-4b73-8db9-f5a50f4dec3e.pdf

Evergreen Steel Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

c. Basis of consolidation

d. Other significant accounting policies

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES

Trade receivable

June 30, 2021

December 31, 2020

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

a. Right-of-use assets

d. Other lease information

16. INTANGIBLE ASSETS

17. OTHER ASSETS

18. BORROWINGS

a. Short-term borrowings

19. TRADE PAYABLES

20. OTHER LIABILITIES

21. PROVISIONS

22. RETIREMENT BENEFIT PLANS

23. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

24. EQUITY

Ordinary shares

b. Capital surplus

c. Retained earnings and dividend policy

25. REVENUE

26. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other income

c. Finance costs

e. Employee benefits expense

Accrual rate

27. INCOME TAXES

28. EARNINGS PER SHARE

Net profit for the period

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

Fair value hierarchy as of June 30, 2020

1) Market risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

c) Other price risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

December 31, 2020

31. TRANSACTIONS WITH RELATED PARTIES

e. Contract assets

f. Contract liabilities

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

EGST Interim / Quarterly Report 2021