EGST - Interim / Quarterly Report 2021

Evergreen Steel Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 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 September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, 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$142,811 thousand and NT$143,020 thousand as of September 30, 2021 and 2020, respectively. The equities in profit and loss of the associates were NT$6,263 thousand and NT$4,474 thousand of the consolidated net income for the three months ended September 30, 2021 and 2020. The equities in profit and loss of the associates were NT$17,012 thousand and NT$17,592 thousand of the consolidated net income for the nine months ended September 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 the 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 September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 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 November 9, 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 the 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 and 25) 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		September 30, 2021 (Reviewed) Amount % $ 4,404,769 14 64,855 - 2,873,261 9 92,264 - 1,298,078 4 27,997 - 33,851 - 3,924,230 12 112,490 1 12,831,795 40 11,366,290 36 142,811 1 3,267,527 10 28,470 - 104,028 - 3,874,003 12 57,799 - 8,951 - 136,230 1 18,986,109 60 $ 31,817,904 100 $ 950,000 3 699,788 2 1,287,593 4 476,434 2 1,585,489 5 271,585 1 131,999 - 61,236 - 13,734 - - - 46,718 - 5,524,576 17 2,914,402 9 69,782 1 12,671 - 13,777 - 24,696 - 23,971 - 3,059,299 10 8,583,875 27 4,199,820 13 1,340,252 4 2,294,939 8 6,420,834 20 8,715,773 28 (648) - 6,066,977 19 6,066,329 19 (49,938) - 20,272,236 64 2,961,793 9 23,234,029 73 $ 31,817,904 100		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		September 30, 2020 (Reviewed)
						Amount % $ 4,016,635 19 21,821 - 3,893,872 19 43,044 - 961,452 5 23,729 - 80,874 - 1,180,969 6 128,158 1 10,350,554 50 4,848,317 23 143,020 1 3,483,166 17 19,192 - 106,030 - 1,833,941 9 47,941 - 6,937 - 24,811 - 10,513,355 50 $ 20,863,909 100 $ 1,046,900 5 1,499,453 7 306,561 2 364,832 2 1,249,142 6 527,508 3 97,601 1 58,353 - 8,753 - 300,000 1 48,608 - 5,507,711 27 1,163,225 6 66,691 - 8,992 - 41,821 - 25,399 - 12,336 - 1,318,464 6 6,826,175 33 3,994,260 19 388,032 2 2,190,673 11 6,105,467 29 8,296,140 40 (783) - (703,822) (3) (704,605) (3) (93,113) (1) 11,880,714 57 2,157,020 10 14,037,734 67 $ 20,863,909 100

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

(With Deloitte & Touche auditors’ review report dated November 9, 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 (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		For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30		For the Nine Months	EndedSeptember 30	EndedSeptember 30
		2021		2020		2021		2020
		Amount % $ 3,432,910 100 (2,764,427) (80) 668,483 20 (71,522 ) (2 ) (55,256 ) (2 ) (6,793) - (133,571) (4) 534,912 16 5,692 - 145,139 4 (1,835 ) - (3,140 ) - 6,263 - 152,119 4 687,031 20 (110,262) (3) 576,769 17 (3,557,101) (104) (3,557,101) (104)		Amount % $ 2,318,881 100 (1,753,897) (75) 564,984 25 (53,529 ) (3 ) (52,676 ) (2 ) (2,719) - (108,924) (5) 456,060 20 5,777 - 100,164 5 1,250 - (5,181 ) - 4,474 - 106,484 5 562,544 25 (91,039) (4) 471,505 21 (15,874) (1) (15,874) (1)		Amount % $ 9,082,592 100 (7,331,741) (81) 1,750,851 19 (220,135 ) (3 ) (174,673 ) (2 ) (22,599) - (417,407) (5) 1,333,444 14 19,238 - 167,241 2 (8,273 ) - (13,006 ) - 17,012 - 182,212 2 1,515,656 16 (270,360) (3) 1,245,296 13 5,151,821 57 5,151,821 57		Amount % $ 6,757,823 100 (5,274,092) (78) 1,483,731 22 (156,683 ) (2 ) (168,452 ) (3 ) (355) - (325,490) (5) 1,158,241 17 19,803 1 138,073 2 (3,695 ) - (12,730 ) - 17,592 - 159,043 3 1,317,284 20 (246,599) (4) 1,070,685 16 (868,314) (13) (868,314) (13) (Continued)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30	For the Nine Months	EndedSeptember 30
2021	2020	2021	2020
Amount % $ - - - - - - (3,557,101) (104) $ (2,980,332) (87) $ 484,849 14 91,920 3 $ 576,769 17 $ (2,910,709 ) (85 ) (69,623) (2) $ (2,980,332) (87) $ 1.16 $ 1.16	Amount % $ - - - - - - (15,874) (1) $ 455,631 20 $ 375,673 16 95,832 5 $ 471,505 21 $ 348,195 15 107,436 5 $ 455,631 20 $ 0.95 $ 0.95	Amount % $ - - - - - - 5,151,821 57 $ 6,397,117 70 $ 992,612 11 252,684 2 $ 1,245,296 13 $ 5,950,354 65 446,763 5 $ 6,397,117 70 $ 2.43 $ 2.43	Amount % $ 359 - (72) - 287 - (868,027) (13) $ 202,658 3 $ 801,391 12 269,294 4 $ 1,070,685 16 $ (74,634 ) (1 ) 277,292 4 $ 202,658 3 $ 2.03 $ 2.03

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

(With Deloitte & Touche auditors’ review report dated November 9, 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 Legal reserve Cash dividend to shareholders Subsidiary receives dividend from the parent company Cash dividends distributed by subsidiaries Changes in percentage of ownership interests in subsidiaries Net profit for the nine months ended September 30, 2020 Other comprehensive income (loss) for the nine months ended September 30, 2020, net of income tax Total comprehensive income (loss) for the nine months ended September 30, 2020 Disposal of treasury shares Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT SEPTEMBER 30, 2020 BALANCE AT JANUARY 1, 2021 Appropriation and distribution of 2020 retain earning Legal reserve Cash dividend to shareholders Cash dividends distributed by subsidiaries Issuance of ordinary shares for cash Changes in percentage of ownership interests in subsidiaries Net profit for the nine months ended September 30, 2021 Other comprehensive income for the nine months ended September 30, 2021, net of income tax Total comprehensive income for the nine months ended September 30, 2021 Disposal of treasury shares Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT SEPTEMBER 30, 2021				Equity Attributable toOwners of theCompany	Equity Attributable toOwners of theCompany	Total Non-controlling Interests $ 12,690,886 $ 2,154,672 - - (793,071 ) - 4,998 - - (274,940 ) - (4 ) 801,391 269,294 (876,025) 7,998 (74,634) 277,292 52,535 - - - $ 11,880,714 $ 2,157,020 $ 14,001,815 $ 2,795,754 - - (872,378 ) - - (280,723 ) 1,042,650 - - (1 ) 992,612 252,684 4,957,742 194,079 5,950,354 446,763 149,795 - - - $ 20,272,236 $ 2,961,793	Total Equity $ 14,845,558 - (793,071 ) 4,998 (274,940 ) (4 ) 1,070,685 (868,027) 202,658 52,535 - $ 14,037,734 $ 16,797,569 - (872,378 ) (280,723 ) 1,042,650 (1 ) 1,245,296 5,151,821 6,397,117 149,795 - $ 23,234,029
		ShareCapital 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 ) - - - - - - - 801,391 - - - 801,391 - - - (534) $ 2,190,673 $ 6,105,467 $ 2,190,673 $ 6,347,269 104,266 (104,266 ) - (872,378 ) - - - - - - - 992,612 - - - 992,612 - - - 57,597 $ 2,294,939 $ 6,420,834	Other Equity Exchange Differences Translation of the Unrealized Gain (Loss) on Financial Assets at Fair Value Through Financial Other Statements of Foreign Operations Comprehensive Income Treasury Stock $ (921 ) $ 171,807 $ (119,045 ) - - - - - - - - - - - - - - - - - - 138 (876,163) - 138 (876,163) - - - 25,932 - 534 - $ (783) $ (703,822) $ (93,113) $ (648 ) $ 1,166,832 $ (93,113 ) - - - - - - - - - - - - - - - - - - - 4,957,742 - - 4,957,742 - - - 43,175 - (57,597) - $ (648) $ 6,066,977 $ (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 November 9, 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 (investment properties included) Amortization expense Ordinary shares transferred to employees at cost Expected credit loss recognized on trade receivables Finance costs Interest income Dividend income Share of profit of associates Gain on disposal of property, plant and equipment Gain on lease modification Net loss on disposal of inventories Impairment loss on investment properties Changes in operating assets and liabilities Decrease (increase) in contract assets Decrease in notes receivable Increase in trade receivables Decrease in other receivables Increase in inventories Decrease (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) increase 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		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,515,656 296,891 3,534 39,660 22,599 13,006 (19,238) (139,511) (17,012) (3,879) (7) 2,917 - 1,297,437 34,646 (431,805) 9,290 (2,918,389) 63,307 904,784 121,051 412,512 (136,521) 444 (10,179) (22,247) 8,455 1,047,401 19,565 (38,388) (326,367) 702,211 (5,240) 566,283	2020 $ 1,317,284 295,045 5,437 - 355 12,730 (19,803) (103,458) (17,592) (484) - 2,663 3,417 (1,134,789) 9,856 (431,666) 3,011 (526,091) (95,214) (42,228) 137,513 258,166 173,640 (20,779) 257 (20,124) 1,084 (191,770) 19,865 (19,778) (284,977) (476,660) (1,543) 1,646 (Continued)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

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

Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment (Increase) decrease 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 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 Repayments of cash dividend Proceeds from issuance of ordinary shares Proceeds from disposal of treasury shares Decrease in non-controlling interests Dividends paid to non-controlling interests 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 Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (42,203) 800 (146,166) 5,507 (948) (1,111,097) (18,826) 139,511 25,000 (587,379) 260,000 (1,099,383) 1,320,933 (400,000) (538) (10,041) (872,378) 1,002,990 149,795 (1) (280,723) 70,654 185,486 4,219,283 $ 4,404,769	2020 $ (7,931) 990 (129,228) 763 601 (927,997) 80,541 40,399 27,000 (914,759) 846,900 1,099,584 1,260,883 (150,000) 9,074 (6,957) (788,073) - 52,535 (4) (274,940) 2,049,002 657,583 3,359,052 $ 4,016,635

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

(With Deloitte & Touche auditors’ review report dated November 9, 2021)

(Concluded)

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 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 November 9, 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

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

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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

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

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”

Amendments to IAS 1 “Disclosure of Accounting Policies”

Amendments to IAS 8 “Definition of Accounting Estimates”

Amendments to IAS 12 “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”

Effective Date
Announced by IASB (Note 1)

To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

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 for deferred taxes that 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 judgments or assumptions in applying an accounting policy, and the Group discloses those judgments 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.

13 -

6. CASH AND CASH EQUIVALENTS

September 30,
2021

Cash on hand
$ 3,210

Checking accounts and demand deposits
704,115
Cash equivalents
Time deposits
3,289,356
Commercial paper

408,088

$ 4,404,769

FINANCIAL ASSETS AT FVTOCI
September 30,
2021

Non-current
Domestic investments
Listed shares and emerging market shares
$ 10,384,811
Unlisted shares
818,005
Foreign investments
Unlisted shares

163,474

$ 11,366,290

December 31,
2020
September 30,
2020
$ 3,145
$ 3,195
410,868
436,516
3,512,292
2,987,606
292,978

589,318
$ 4,219,283
$ 4,016,635
December 31,
2020
September 30,
2020
$ 5,744,880 $ 3,977,310

881,433
722,348

149,199

148,659
$ 6,775,512
$ 4,848,317

7. FINANCIAL ASSETS AT FVTOCI

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 nine months ended September 30, 2021 and 2020, and transferred a gain (loss) of $57,597 thousand and $(534) thousand, respectively, from other equity to retained earnings.

8. FINANCIAL ASSETS AT AMORTIZED COST

	September 30,	December 31,	September 30,
	2021	2020	2020
Current
Pledge deposits	$ 53,893	$ 17,091	$ 17,401
Restricted bank deposits	10,962	6,361	4,420
	$ 64,855	$ 23,452	$ 21,821

Refer to Note 32 for information relating to investments in financial assets at amortized cost pledged as security.

14 -

9. TRADE RECEIVABLES

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		2020
Trade receivables (including trade
receivables from related parties)
At amortized cost
Gross carrying amount	$ 1,328,576	$	896,771	$	986,623
Less: Allowance for impairment loss	(2,501)		(177)		(1,442)
	$ 1,326,075	$	896,594	$	985,181

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 Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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

September 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% - $ 1,483 $ - (1,483) - $ - $ -	Total $ 1,328,576 (2,501) $ 1,326,075
		0 to 60 Days 61 to 90 Days 0.02% 0.53% $ 1,209,658 $ 110,510 (204) (581) $ 1,209,454 $ 109,929	91 to 120 Days 3.36% $ 6,925 (233) $ 6,692

15 -

December 31, 2020

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost September 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 - $ 119 $ - - $ 119 $	Total $ 896,771 (177) $ 896,594 Total $ 986,623 (1,442) $ 985,181
		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% 1.52% $ 927,740 $ 58,764 (546) (896) $ 927,194 $ 57,868	91 to 120 Days - $ - - $ -

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 September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 177 2,324 $ 2,501	2020 $ 546 896 $ 1,442

10. INVENTORIES

	September 30,	December 31,	December 31,	September 30,
	2021		2020	2020
Raw material	$ 3,869,711	$	979,728	$ 1,056,934
Supplies	21,881		21,827	23,236
Inventory in transit	32,638		7,203	100,799
	$ 3,924,230	$	1,008,758	$ 1,180,969

The costs of inventories recognized as operating cost for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, were $2,513,613 thousand, $1,496,879 thousand, $6,598,923 thousand and $4,511,831 thousand, respectively. The costs of goods sold which included the inventory write-downs (reversals) for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, were $113 thousand, $(872) thousand, $2,917 thousand and $(701) thousand, respectively.

16 -

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 Super Max Engineering Enterprise Co., Ltd. Waste collection, treatment and disposal Ming Yu Investment Corporation Investment activities Hsin Yung Enterprise Corporation Waste treatment, disposal and cogeneration Ever Ecove Corporation Waste treatment, disposal and cogeneration	% of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Remark 48.13 48.13 48.13 1) 100.00 100.00 100.00 - 68.46 68.46 68.46 - 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 THE EQUITY METHOD

	September 30,	December 31,	September 30,
	2021	2020	2020
Associates that are not individually material
Kun Lin Engineering Co., Ltd.	$ 142,811	$ 150,799	$ 143,020
	Proportion of	Ownership and	Voting Rights
	September 30,	December 31,	September 30,
Name of Associate	2021	2020	2020
Kun Lin Engineering Co., Ltd.	50%	50%	50%
Aggregate information of associates that are not individually material

The Group’s share of: Net income for the period	For the Three Months Ended September 30 2021 2020 $ 6,263 $ 4,474	For the Three Months Ended September 30 2021 2020 $ 6,263 $ 4,474	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 6,263		2021 $ 17,012	2020 $ 17,592

17 -

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

Cost Balance at January 1, 2021 Additions Disposals Reclassification Balance at September 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Disposals Depreciation expense Balance at September 30, 2021 Carrying amount at September 30, 2021 Carrying amount at January 1, 2021 Cost Balance at January 1, 2020 Additions Disposals Reclassification Transferred to investment properties Balance at September 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Disposals Depreciation expense Balance at September 30, 2020 Carrying amount at January 1, 2020	Freehold Land Land Improvements $ 1,797,045 $ 164,600 - - - - - - $ 1,797,045 $ 164,600 $ - $ 129,356 - - - 4,140 $ - $ 133,496 $ 1,797,045 $ 31,104 $ 1,797,045 $ 35,244 $ 1,845,363 $ 164,600 - - - - - - (48,318) - $ 1,797,045 $ 164,600 $ - $ 123,743 - - - 4,210 $ - $ 127,953 $ 1,797,045 $ 36,647	Buildings Machinery and Equipment Transportation Equipment $ 2,490,931 $ 4,732,313 $ 109,799 1,585 40,589 10,755 - (15,470 ) (703 ) - 79,647 - $ 2,492,516 $ 4,837,079 $ 119,851 $ 1,729,623 $ 3,988,749 $ 74,729 - (13,842 ) (703 ) 72,869 193,275 8,403 $ 1,802,492 $ 4,168,182 $ 82,429 $ 690,024 $ 668,897 $ 37,422 $ 761,308 $ 743,564 $ 35,070 $ 2,405,334 $ 4,694,521 $ 108,289 3,157 9,344 1,100 - (4,260 ) (3,407 ) 78,960 30,771 - - - - $ 2,487,451 $ 4,730,376 $ 105,982 $ 1,634,073 $ 3,737,062 $ 66,575 - (3,986 ) (3,402 ) 71,101 196,150 8,870 $ 1,705,174 $ 3,929,226 $ 72,043 $ 782,277 $ 801,150 $ 33,939	Other Equipment Property under Construction $ 90,242 $ - 16,040 1,000 (2,302 ) - (3,450) - $ 100,530 $ 1,000 $ 54,063 $ - (2,302 ) - 6,734 - $ 58,495 $ - $ 42,035 $ 1,000 $ 36,179 $ - $ 82,376 $ - 5,896 - (3,635 ) - - - - - $ 84,637 $ - $ 49,754 $ - (3,635 ) - 6,410 - $ 52,529 $ - $ 32,108 $ -	Total $ 9,384,930 69,969 (18,475 ) 76,197 $ 9,512,621 $ 5,976,520 (16,847 ) 285,421 $ 6,245,094 $ 3,267,527 $ 3,408,410 $ 9,300,483 19,497 (11,302 ) 109,731 (48,318) $ 9,370,091 $ 5,611,207 (11,023 ) 286,741 $ 5,886,925 $ 3,483,166

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 nine months ended September 30, 2020.

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

18 -

14. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Other equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Other equipment	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802	September 30, 2021 December 31, 2020 September 30, 2020 $ 26,394 $ 19,476 $ 17,937 2,076 1,003 1,255 $ 28,470 $ 20,479 $ 19,192 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 6,962 $ - $ 18,545 $ - $ 3,694 $ 1,993 $ 9,215 $ 6,049 201 251 753 753 $ 3,895 $ 2,244 $ 9,968 $ 6,802
		2021 $ 6,962 $ 3,694 201 $ 3,895			2021 $ 18,545 $ 9,215 753 $ 9,968	2020 $ - $ 6,049 753 $ 6,802

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

b. Lease liabilities

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		2020
Carrying amount
Current	$ 13,734	$	8,756	$	8,753
Non-current	$ 12,671	$	9,738	$	8,992
Range of discount rates for lease	liabilities was as follows:
	September 30,	December 31,		September 30,
	2021		2020		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.

19 -

d. Other lease information

15.	For the Three Months Ended September 30 2021 2020 Expenses relating to short-term leases and low-value asset leases $ 4,910 $ 3,326 Total cash outflow for leases $ 7,812 $ 4,821 INVESTMENT PROPERTIES Cost Balance at January 1, 2021 Addition Balance at September 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Balance at September 30, 2021 Carrying amount at September 30, 2021 Carrying amount at January 1, 2021 Cost Balance at January 1, 2020 Transfers from property, plant and equipment Balance at September 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Impairment loss Depreciation expense Balance at September 30, 2020 Carrying amount at September 30, 2020	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 $ 12,674 $ 22,889	2020 $ 10,636 $ 17,771 Amount $ 302,004 - $ 302,004 $ (196,474) (1,502) $ (197,976) $ 104,028 $ 105,530 $ 253,686 48,318 $ 302,004 $ (191,055) (3,417) (1,502) $ (195,974) $ 106,030

For the nine months ended September 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 September 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

	September 30,	December 31,	September 30,
	2021	2020	2020
Service concession arrangements*	$ 3,869,719	$ 2,734,183	$ 1,827,408
Computer software	4,284	5,533	6,533
	$ 3,874,003	$ 2,739,716	$ 1,833,941

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Current
Prepayments	$	72,349	$	96,949	$	26,466
Prepaid expenses		29,292		28,779		25,111
Tax credit		10,849		50,069		76,581
	$	112,490	$	175,797	$	128,158
Non-current
Prepayments for equipment	$	136,230	$	117,404	$	24,811

21 -

18. BORROWINGS

a. Short-term borrowings

b.
c.

September 30,
2021
December 31,
2020
September 30,
2020
Unsecured borrowings
Line of credit borrowings
$ 950,000
$ 690,000
$ 1,046,900
Interest rate range
0.77%-1.3%
0.88%-0.9%
0.88%-1.3%
Short-term bills payable
September 30,
2021
December 31,
2020
September 30,
2020
Commercial paper
$ 700,000
$ 1,800,000
$ 1,500,000
Less: Unamortized discounts on short-term
bills payable

(212)

(829)

(547)
$ 699,788
$ 1,799,171
$ 1,499,453
Long-term borrowings
September 30,
2021
December 31,
2020
September 30,
2020
Secured borrowings
Bank loans
$ 2,930,000
$ 1,990,000
$ 1,460,000
Unsecured borrowings
Bank loans

-

20,000

20,000
2,930,000
2,010,000
1,480,000
Less: Current portion of long-term borrowing
-
(300,000)
(300,000)
Unamortized discount

(15,598)

(16,531)

(16,775)
$ 2,914,402
$ 1,693,469
$ 1,163,225
Expiry period
2024-2034
2021-2034
2021-2034
Interest rate range
0.89%-1.7895% 0.89%-1.7895% 0.89%-1.7895%

Please refer to Note 32 for details of the collaterals pledged for the above long-term borrowings.

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.

22 -

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Current
Other payables
Payable for transportation fees	$	52,669	$	47,442	$	42,451
Payable for salaries or bonus		46,794		6,909		43,579
Payable for repairs and maintenance		32,929		79,162		99,883
Payable for annual leave		32,571		36,017		17,868
Payable for compensation of employees and
remuneration of directors		22,052		27,545		14,043
Payable for sales tax		12,295		11,567		9,371
Payable for insurance expenses		10,521		20,107		10,733
Payables for equipment		3,966		90,524		188,853
Others		57,788		87,491		100,727
	$	271,585	$	406,764	$	527,508
PROVISIONS
	September 30,		December 31,		September 30,
		2021		2020		2020
Current
Warranties*	$	61,179	$	60,723	$	58,278
Onerous contract - loss on construction		57		69		75
	$	61,236	$	60,792	$	58,353

21. PROVISIONS

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 $5,358 thousand and $5,396 thousand for the nine months ended September 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 -

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
September 30, 2021
Assets
Notes receivables
$ 92,264
$ -

Trade receivables
1,085,845
-
Inventories
3,903,384
-
Contracts assets - current

1,765,109

1,108,152

$ 6,846,602
$ 1,108,152

Liabilities
Notes payable
$ 11,895
$ -

Trade payables
1,273,724
188,933
Contracts liabilities - current

1,276,154

-

$ 2,561,773
$ 188,933

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

September 30, 2020
Assets
Notes receivable
$ 42,874
$ -

Trade receivables
670,540
-
Inventories
1,160,505
-
Contracts assets - current

3,430,123

463,749

$ 5,304,042
$ 463,749

Total
$ 92,264
1,085,845
3,903,384

2,873,261
$ 7,954,754
$ 11,895
1,462,657

1,276,154
$ 2,750,706
$ 126,203
635,261
986,652

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

323,755
$ 1,445,075
$ 42,874
670,540
1,160,505

3,893,872
$ 5,767,791
(Continued)

24 -

Within 1 Year More Than 1 Year Liabilities Trade payables $ 963,949 $ 186,913 Contracts liabilities - current 259,914 - $ 1,223,863 $ 186,913	Total $ 1,150,862 259,914 $ 1,410,776 (Concluded)

24. EQUITY

a. Share capital

Ordinary shares

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		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.
Capital surplus
	September 30,	December 31,		September 30,
	2021		2020		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

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.

b. Capital surplus

25 -
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 dividends policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on distribution of compensation of employees and remuneration of directors before and after amendment, refer to f. employee benefits expense in Note 26.

The Company’s dividend policy also stipulates 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 dividends may be distributed by either 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.

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:

Legal reserve Cash dividends	Appropriation of Earnings For the Years Ended December 31 2020 2019 $ 104,266 $ 94,744 872,378 793,071	Dividends Per Share (NT$)
		For the Years Ended December 31
		2020 2019 $ 2.09 $ 2.00

26 -

d. Treasury shares

		Shares Held by	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 September 30, 2021	2,891		-	2,891
Carrying amount at September 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 September 30, 2020	2,891		2,499	5,390
Carrying amount at September 30, 2020	$ 49,938	$	43,175	$ 93,113

For the nine months ended September 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.

25. REVENUE

Construction contract revenue Revenue from waste treatment Energy revenue Revenue from containers repair		For the Three Months Ended September 30 2021 2020 $ 2,869,506 $ 1,717,291 410,579 440,415 112,863 126,107 39,962 35,068 $ 3,432,910 $ 2,318,881		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 2,869,506 410,579 112,863 39,962 $ 3,432,910		2021 $ 7,447,978 1,199,239 316,041 119,334 $ 9,082,592	2020 $ 5,039,797 1,275,780 334,406 107,840 $ 6,757,823

27 -

a. Contact balances

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		2020
Contract assets
Properties construction	$ 1,211,623	$	3,036,146	$	2,659,173
Retention receivable	1,719,962		1,192,876		1,259,107
Less: Allowance for impairment loss	(58,324)		(38,049)		(24,408)
	$ 2,873,261	$	4,190,973	$	3,893,872
Contract liabilities
Properties construction	$ 1,276,154	$	323,755	$	259,914
Waste treatment	11,439		59,054		46,647
	$ 1,287,593	$	382,809	$	306,561

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 September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 38,049 20,275 $ 58,324	2020 $ 24,949 (541) $ 24,408

b. Partially completed contracts

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.

	September 30,
	2021
Property construction contracts
From October 2021 to September 2022	$ 12,448,554
From October 2022 to September 2023	2,213,821
From October 2023 to after years	-
	$ 14,662,375
	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

28 -

September 30, 2020

Property construction contracts From October 2020 to September 2021 From October 2021 to September 2022 From October 2022 to after years	$ 12,910,013 648,784 363,979 $ 13,922,776

26. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other income

Rental income Dividend revenue Others (Note 31)	For the Three Months Ended September 30 2021 2020 $ 3,167 $ 3,241 133,320 96,706 8,652 217 $ 145,139 $ 100,164	For the Three Months Ended September 30 2021 2020 $ 3,167 $ 3,241 133,320 96,706 8,652 217 $ 145,139 $ 100,164	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,167 133,320 8,652 $ 145,139		2021 $ 9,788 139,511 17,942 $ 167,241	2020 $ 9,793 103,458 24,822 $ 138,073

b. Other gains and losses

Gain on disposal of property, plant and equipment Net foreign exchange gains and (losses) Impairment loss on investment properties Others 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 September 30 2021 2020 $ 25 $ 543 (1,401) 5,070 - (3,417) (459) (946) $ (1,835) $ 1,250 For the Three Months Ended September 30 2021 2020 $ 12,929 $ 7,139 731 1,849 59 50 (10,579) (3,857) $ 3,140 $ 5,181	For the Three Months Ended September 30 2021 2020 $ 25 $ 543 (1,401) 5,070 - (3,417) (459) (946) $ (1,835) $ 1,250 For the Three Months Ended September 30 2021 2020 $ 12,929 $ 7,139 731 1,849 59 50 (10,579) (3,857) $ 3,140 $ 5,181	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 2020 $ 3,879 $ 484 (8,794) 4,293 - (3,417) (3,358) (5,055) $ (8,273) $ (3,695) For the Nine Months Ended September 30
		2021 $ 12,929 731 59 (10,579) $ 3,140		2021 $ 34,746 4,810 174 (26,724) $ 13,006	2020 $ 15,132 4,869 178 (7,449) $ 12,730

c. Finance costs

29 -

Information about capitalized interest is as follows:

For the Three Months Ended September 30 2021 2020 $ 10,579 $ 3,857 1.3%-1.7895% 1.3%-1.7895% For the Three Months Ended September 30 2021 2020 $ 95,247 $ 96,125 501 501 3,895 2,244 959 1,642 $ 100,602 $ 100,512 $ 96,400 $ 95,688 3,243 3,182 $ 99,643 $ 98,870 $ 166 $ 550 793 1,092 $ 959 $ 1,642 For the Three Months Ended September 30 2021 2020 $ 4,719 $ 4,357 1,629 1,802 180,038 148,366 $ 186,386 $ 154,525	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 2020 $ 26,724 $ 7,449 1.3%-1.7895% 1.3%-1.7895% For the Nine Months Ended September 30
	2021 2020 $ 285,421 $ 286,741 1,502 1,502 9,968 6,802 3,534 5,437 $ 300,425 $ 300,482 $ 287,176 $ 285,440 9,715 9,605 $ 296,891 $ 295,045 $ 711 $ 2,297 2,823 3,140 $ 3,534 $ 5,437 For the Nine Months Ended September 30
2021 $ 4,719 1,629 180,038 $ 186,386		2021 $ 14,131 5,358 542,204 $ 561,693	2020 $ 13,315 5,396 450,658 $ 469,369 (Continued)

30 -

An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended September 30 2021 2020 $ 86,162 $ 82,976 100,224 71,549 $ 186,386 $ 154,525	For the Three Months Ended September 30 2021 2020 $ 86,162 $ 82,976 100,224 71,549 $ 186,386 $ 154,525	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 86,162 100,224 $ 186,386		2021 $ 258,477 303,216 $ 561,693	2020 $ 245,019 224,350 $ 469,369 (Concluded)

f. Compensation of employees and remuneration of directors

According to the Articles of Incorporation of the Company, the Company accrued compensation of employees and remuneration of directors 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. The compensation of employees and the remuneration of directors for the nine months ended September 30, 2021 and 2020, are as follows:

Accrual rate

Compensation of employees Remuneration of directors	For the Nine Months Ended September 30
	2021 2020 0.51% 0.50% 0.34% 0.43%

Amount

Compensation of employees Remuneration of directors	For the Three Months Ended September 30 2021 2020 Cash Cash $ 2,783 $ 1,352 1,250 1,250	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 Cash $ 2,783 1,250	2021 Cash $ 5,592 3,750	2020
			Cash $ 4,056 3,750

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.

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 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 $ 5,745 $ 5,000 $ 5,745 $ 5,000	2019
		Compensation of employees Remuneration of Directors $ 5,407 $ 6,819 $ 5,407 $ 7,000

31 -

Information on the compensation of employees and remuneration of directors 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 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 September 30 2021 2020 Cash Cash $ 110,970 $ 90,408 1,654 (1,366) - - 112,624 89,042 (2,362) 1,997 $ 110,262 $ 91,039	For the Three Months Ended September 30 2021 2020 Cash Cash $ 110,970 $ 90,408 1,654 (1,366) - - 112,624 89,042 (2,362) 1,997 $ 110,262 $ 91,039	For the Three Months Ended September 30 2021 2020 Cash Cash $ 110,970 $ 90,408 1,654 (1,366) - - 112,624 89,042 (2,362) 1,997 $ 110,262 $ 91,039	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 Cash $ 110,970 1,654 - 112,624 (2,362) $ 110,262			2021 Cash $ 281,486 3,097 (2,133) 282,450 (12,090) $ 270,360		2020
							Cash $ 229,806 8,491 15 238,312 8,287 $ 246,599

b. Income tax assessments

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

28. EARNINGS PER SHARE

Basic earnings per share Diluted earnings per share	For the Three Months Ended September 30 2021 2020 $ 1.16 $ 0.95 $ 1.16 $ 0.95	For the Three Months Ended September 30 2021 2020 $ 1.16 $ 0.95 $ 1.16 $ 0.95	Units: NT$ Per Share For the Nine Months Ended September 30	Units: NT$ Per Share For the Nine Months Ended September 30	Units: NT$ Per Share For the Nine Months Ended September 30
		2021 $ 1.16 $ 1.16		2021 $ 2.43 $ 2.43	2020 $ 2.03 $ 2.03

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 for the period attributable to owners of the Company	For the Three Months Ended September 30 2021 2020 $ 484,849 $ 375,673	For the Three Months Ended September 30 2021 2020 $ 484,849 $ 375,673	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 484,849		2021 $ 992,612	2020 $ 801,391

32 -

Unit: In Thousand 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 September 30 2021 2020 417,091 394,036 111 30 417,202 394,066	For the Three Months Ended September 30 2021 2020 417,091 394,036 111 30 417,202 394,066	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 417,091 111 417,202		2021 408,684 142 408,826	2020 394,003 135 394,138

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.

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.

33 -
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

Fair value hierarchy as of September 30, 2021

Level 1 Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares $ 10,384,811 Unlisted shares - ROC - Unlisted shares in other country - $ 10,384,811 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 Fair value hierarchy as of September 30, 2020 Level 1 Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares $ 3,977,310 Unlisted shares - ROC - Unlisted shares in other country - $ 3,977,310	Level 2 $ - - - $ - Level 2 $ - - - $ - Level 2 $ - - - $ -	Level 3 $ - 818,005 163,474 $ 981,479 Level 3 $ - 881,433 149,199 $ 1,030,632 Level 3 $ - 722,348 148,659 $ 871,007	Total $ 10,384,811 818,005 163,474 $ 11,366,290 Total $ 5,744,880 881,433 149,199 $ 6,775,512 Total $ 3,977,310 722,348 148,659 $ 4,848,317
Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares - ROC Unlisted shares in other country

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

34 -
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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Financial assets
Financial assets at amortized cost (1)	$	5,915,625	$	5,287,448	$	5,432,108
Financial assets at FVTOCI
Equity instruments		11,366,290		6,775,512		4,848,317
Financial liabilities
Financial liabilities measured at amortized
cost (2)		6,794,415		6,337,336		6,044,920
Lease liabilities		26,405		18,494		17,745

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.
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 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.

35 -

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. 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.

Profit or loss	USD Impact For the Nine Months Ended September 30 2021 2020 $ 824 $ 1,050	EUR Impact For the Nine Months Ended September 30 2021 2020 $ 787 $ 3,621	JPY Impact
			For the Nine Months Ended September 30
			2021 2020 $ 2,918 $ 8,141

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.

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.

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Fair value interest rate risk
Financial assets	$	815,721	$	904,424	$	421,850
Financial liabilities		1,926,193		2,807,665		2,567,198
Cash flow interest rate risk
Financial assets		3,141,382		3,242,038		3,514,994
Financial liabilities		2,664,402		1,693,469		1,460,125

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.

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 nine months ended September 30, 2021 and 2020 would have increased/decreased by $1,789 thousand and $7,706 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate bank borrowings, and demand deposits.

36 -

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 nine months ended September 30, 2021 and 2020 would have increased/decreased by $340,989 thousand and $145,450 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.

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 26% and 43% of total trade receivables as of September 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.

37 -

The Group relies on bank borrowings as a significant source of liquidity. As of September 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.

September 30, 2021

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities December 31, 2020 Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities September 30, 2020 Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	Less than 1 Year $ 2,016,596 13,919 65,227 1,600,581 $ 3,696,323 Less than 1 Year $ 1,613,362 8,908 326,622 2,489,719 $ 4,438,611 Less than 1 Year $ 1,819,360 8,904 418,761 2,351,852 $ 4,598,877	1-5 Years $ 213,561 12,749 943,933 306,137 $ 1,476,380 1-5 Years $ 216,101 9,835 349,051 308,147 $ 883,134 1-5 Years $ 190,037 9,082 214,518 204,091 $ 617,728	5+ Years $ - - 1,993,344 - $ 1,993,344 5+ Years $ - - 1,261,543 - $ 1,261,543 5+ Years $ - - 913,671 - $ 913,671

38 -

b) Financing facilities

	September 30,	December 31,	September 30,
	2021	2020	2020
Unsecured bank overdraft facility
Amount used	$ 1,650,000	$ 2,510,000	$ 2,566,900
Amount unused	5,564,000	4,759,360	5,315,860
	$ 7,214,000	$ 7,269,360	$ 7,882,760
Secured bank overdraft facility
Amount used	$ 3,280,000	$ 1,990,000	$ 1,460,000
Amount unused	2,518,400	3,450,000	3,888,400
	$ 5,798,400	$ 5,440,000	$ 5,348,400

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

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

b. Sales of goods

Related Party Investor that has significant influence over the Group Related party in substance	For the Three Months Ended September 30 2021 2020 $ 197 $ 201 85,526 46,888 $ 85,723 $ 47,089	For the Three Months Ended September 30 2021 2020 $ 197 $ 201 85,526 46,888 $ 85,723 $ 47,089	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 197 85,526 $ 85,723		2021 $ 544 624,145 $ 624,689	2020 $ 627 235,042 $ 235,669

The sales conditions for related parties in substance were not significantly different from those sales made to the Group’s usual price list. There was no comparable sales price between non-related parties and related parties in substance for repairing containers.

39 -

c. Other income

Related Party Associate d. Purchases of goods and expenses Related Party Investor that has significant influence over the Group Related party in substance	For the Three Months Ended September 30 2021 2020 $ - $ - For the Three Months Ended September 30 2021 2020 $ 2,300 $ 2,873 5,090 4,343 $ 7,390 $ 7,216	For the Three Months Ended September 30 2021 2020 $ - $ - For the Three Months Ended September 30 2021 2020 $ 2,300 $ 2,873 5,090 4,343 $ 7,390 $ 7,216	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 2020 $ 180 $ 200 For the Nine Months Ended September 30
		2021 $ 2,300 5,090 $ 7,390		2021 $ 7,493 15,409 $ 22,902	2020 $ 9,030 15,089 $ 24,119

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

e. Contract assets

	September 30,	December 31,	September 30,
Related Party	2021	2020	2020
Related party in substance	$ 109,123	$ 303,337	$ 488,284

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

f. Receivables from related parties

Trade receivables

	September 30,	September 30,	December	December	31,	September 30,	September 30,
Related Party		2021		2020			2020
Investor that has significant influence over the
Group	$	110	$	156		$	159
Related party in substance		27,887		151,302			23,570
	$	27,997	$	151,458		$	23,729
Other receivables
	September 30,		December		31,	September 30,
Related Party		2021		2020			2020
Related party in substance-EVA Airways
Corporation	$		$		-	$	60,151

40 -

g. Payables to related parties

Other payables

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Related Party		2021		2020		2020
Investor that has significant influence over the
Group	$	1,322	$	2,074	$	1,233
Related party in substance		2,505		2,398		2,420
	$	3,827	$	4,472	$	3,653

The outstanding trade payables from related parties are unsecured.

h. Lease arrangements

		September	September	30,	December 31,	December 31,	September 30,	September 30,
Line Item	Related Party		2021			2020		2020
Right-of-use	Investor that has significant	$		-	$	1,004	$	1,255
assets	influence over the Group
Lease liabilities	Investor that has significant	$		-	$	1,015	$	1,267
	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.

i. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30 2021 2020 $ 9,333 $ 8,684 236 1,012 $ 9,569 $ 9,696	For the Three Months Ended September 30 2021 2020 $ 9,333 $ 8,684 236 1,012 $ 9,569 $ 9,696	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 9,333 236 $ 9,569		2021 $ 28,652 699 $ 29,351	2020 $ 24,494 2,695 $ 27,189

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

	September 30,	December 31,	September 30,
	2021	2020	2020
Property, plant, and equipment, net	$ 2,290,517	$ 2,335,640	$ 2,347,912
Investment properties	96,205	97,706	98,207
Financial assets at amortized cost	64,855	23,452	21,821
	$ 2,451,577	$ 2,456,798	$ 2,467,940

41 -

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

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

	September	30,	December 31,	December 31,	September 30,	September 30,
Currency	2021			2020		2020
USD	$	-	$	984	$	543
NTD	458,491			472,963		419,577

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

	September 30,	December 31,	September 30,
Currency	2021	2020	2020
NTD	$ 1,166,015	$ 1,908,254	$ 2,402,180
JPY	595,841	1,318,425	2,822,263
EUR	1,633	6,209	7,767
USD	730	2,257	3,632

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

	September 30,	December	31,	September	30,
Monetary Items	2021	2020		2020
NTD	$ 28,639	$	-	$	-
EUR	2,245		-		-

42 -

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:

September 30, 2021

Unit: In Thousands of Foreign Currency/New Taiwan Dollars

		Foreign		Carrying	Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	593	27.85 (USD:NTD)	$	16,519
EUR		487	32.32 (EUR:NTD)		15,724
JPY		234,348	0.249 (JPY:NTD)		58,353
Non-monetary items
Investments accounted for using the equity
method
RMB		3,722	4.305 (RMB:NTD)		16,024
Financial liabilities
Monetary items
RMB		751	4.305 (RMB:NTD)		3,233
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

43 -

September 30, 2020

Unit: In Thousands of Foreign Currency/New Taiwan Dollars

		Foreign		Carrying	Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	722	29.1 (USD:NTD)	$	21,009
EUR		2,121	34.15 (EUR:NTD)		72,418
JPY		590,765	0.2756 (JPY:NTD)		162,815
Non-monetary items
Investments accounted for using the equity
method
RMB		2,748	4.269 (RMB:NTD)		11,732
Financial liabilities
Monetary items
RMB		557	4.269 (RMB:NTD)		2,378

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.
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.
44 -
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 nine months ended September 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 nine months ended September 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 $ 7,447,978 - $ 7,447,978 $ 562,701 $ 5,039,797 - $ 5,039,797 $ 338,320	Super Max Engineering Enterprise Co., Ltd. $ 574,460 - $ 574,460 $ 251,495 $ 578,972 - $ 578,972 $ 262,127	Hsin Yung Enterprise Corporation $ 940,820 - $ 940,820 $ 553,305 $ 1,031,214 - $ 1,031,214 $ 588,900	Ever Ecove Corporation $ - - $ - $ (19,194) $ - - $ - $ (17,425)	Others $ 119,334 - $ 119,334 $ 19,020 $ 107,840 - $ 107,840 $ 17,723	Eliminations $ - - $ - $ 2,690 $ - - $ - $ 2,694	Total $ 9,082,592 - 9,082,592 1,370,017 (36,573 ) 19,238 167,241 (8,273 ) (13,006 ) 17,012 $ 1,515,656 $ 6,757,823 - 6,757,823 1,192,339 (34,098 ) 19,803 138,073 (3,695 ) (12,730 ) 17,592 $ 1,317,284

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

The Group’s assessment of COVID-19 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 NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Amount Provided To Each Guarantee Party	Maximum Amount Endorsed/ Guaranteed During the Period	Ending Balance	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Relationship
0	Evergreen Steel Corporation	Ever Ecove Corporation	Subsidiary	$ 10,136,118	$ 3,087,000	$ 3,087,000	$ 3,087,000	$ -	15.23	$ 10,136,118	Y	-	-	Note 3
1	Ming Yu Investment Corporation	Evergreen Steel Corporation	Parent Company	8,082,160	1,201,220	1,201,220	1,201,220	-	297.25	8,082,160	-	Y	-	Note 2

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 SEPTEMBER 30, 2021

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2021	September 30, 2021		Note
				Number of Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
Evergreen Steel Corporation Hsin Yung Enterprise Corporation Super Max Engineering Enterprise Co., Ltd.	Ordinary shares EVA Airways Corporation Shin Kong Financial Holding Co., Ltd. Evergreen Marine Corporation Taiwan High Speed Rail Corporation Taiwan Terminal Services Corporation Taiwan Aerospace Corporation Pacific Resources Corporation Taiwan Incubator SME Development Corporation Evergreen Heavy Industrial Corp. (Malaysia) Berhad Dongwei Transportation Co., Ltd. Ever Accord Construction Corporation UNI Airways Corporation Evergreen Security Corporation Evergreen Marine Corporation P.T. Super Max Indonesia	Investee of the Company’s mainly shareholders - Investee of the Company’s mainly shareholders - Investee of the Company’s mainly shareholders - - - - - Investee of the Company’s mainly shareholders Investee of the Company’s mainly shareholders Investee of the Company’s mainly shareholders Investee of the Company’s mainly shareholders -	Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current	217,326 7,931 38,262 16,000 100 5,503 2,625 7,689 6,679 660 7,500 56,475 10 7,214 -	$ 4,107,457 73,841 4,820,974 473,600 1,101 62,825 - 64,546 163,474 7,289 66,903 615,199 142 908,939 -	4.23 0.06 0.72 0.28 1.00 4.06 2.56 10.90 13.39 18.86 12.50 14.99 0.05 0.14 11.00	$ 4,107,457 73,841 4,820,974 473,600 1,101 62,825 - 64,546 163,474 7,289 66,903 615,199 142 908,939 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2021

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

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance (Note)	Beginning Balance (Note)	Acquisition	Acquisition		Disposal	Disposal		Ending Balance (Note)	Ending Balance (Note)
					Number of Shares (In Thousands)	Amount	Number of Shares (In Thousands)	Amount	Number of Shares (In Thousands)	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares (In Thousands)	Amount
Evergreen Steel Corporation	Ordinary shares - EVA Airways Corporation	Financial assets at FVTOCI - non-current	-	Related party in substance	240,604	$ 3,478,403	100	$ 1,576	23,378	$ 371,700	$ 337,980	$ 33,720	217,326	$ 3,141,999

Note: Valuation adjustments at year-end are not included.

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 NINE MONTHS ENDED SEPTEMBER 30, 2021

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

Purchaser/seller	Related Party	Relationship		Transaction Details	Transaction Details		Differences in Transaction Terms Compared to Third Party Transaction	Differences in Transaction Terms Compared to Third Party Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Evergreen Steel Corporation	Ever Accord Construction Corporation Evergreen Marine Corporation	Related party in substance Related party in substance	Sale Sale	$ 512,311 110,881	6.77 1.47	30-60 days 15-45 days	No significant difference Note 2	No significant difference No significant difference	$ - 27,655	- 2.29	Note 1

Note 1: The amount of contract assets of $107,172 thousand was generated by the transaction between the Group and its related party in substance.

Note 2: No similar prices on revenue from containers repair to compare with related party in substance.

50 -

TABLE 5

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details	Transaction Details	Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets (Note 3)
0	Evergreen Steel Corporation	Hsin Yung Enterprise Corporation Hsin Yung Enterprise Corporation Ever Ecove Corporation	a a a	Miscellaneous income Gain on disposal of property, plant and equipment Miscellaneous income	$ 1,380 588 425	According to mutual agreements According to mutual agreements According to mutual agreements	0.02 0.01 -

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 September 30, 2021. For profit or loss items, cumulative amounts are shown as percentages to the consolidated total operating revenue for the nine months ended September 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 NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of September 30, 2021	Balance as of September 30, 2021	Balance as of September 30, 2021	Net Income (Losses) of the Investee	Share of Profits/ Losses of Investee	Note
				September 30, 2021	December 31, 2020	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount
Evergreen Steel Corporation Super Max Engineering Enterprise Co., Ltd.	Super Max Engineering Enterprise Co., Ltd. Ming Yu Investment Corporation Hsin Yung Enterprise Corporation Ever Ecove Corporation Kun Lin Engineering Co., Ltd.	Taiwan Taiwan Taiwan Taiwan Taiwan	Waste collection, treatment and disposal Investment activities Waste treatment, disposal and cogeneration Waste treatment, disposal and cogeneration Planning of wastewater, air and noise prevention; design, construction, sale, operation and maintenance of related equipment	$ 594,441 239,487 992,666 801,000 18,000	$ 594,440 239,487 992,666 801,000 18,000	24,147 10,350 99,267 80,100 5,000	48.13 100.00 68.46 50.06 50.00	$ 885,009 248,497 2,001,437 769,297 142,811	$ 223,292 (7,780) 470,171 (22,909) 34,023	$ 107,461 (7,780) 321,877 (11,468) 17,012	Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Note 1) Accounted for using the equity method

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 NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment of Flows	Investment of Flows	Accumulated Outflow of Investment from Taiwan as of September 30, 2021	Net Income (Losses) of the Investee Company	Percentage of Ownership (%)	Share of Profit (Loss) (Note 2)	Carrying Amount as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
						Outflow	Inflow
Kun Shan	Design, manufacture and installation of waste water, waste gas equipment and various piping		$ 11,140 (US$ 400 )	Note 1	$ 11,140 (US$ 400 )	$ -	$ -	$ 11,140 (US$ 400 )	$ 20,904 (RMB 4,820 )	24.07	$ 5,030	$ 16,024	$ 42,555 (US$ 1,528 )

Accumulated Investments in Mainland China as of September 30, 2021		Investment Amount Authorized by the Investment Commission, MOEA			Upper Limit on Investment
$ 11,140 (US$ 400 )		$ 11,140 (US$ 400 ) (Note 3)			$ 13,940,417 (Note 4)

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: $23,234,029 (net worth) × 60% ＝ $13,940,417.

53 -

TABLE 8

EVERGREEN STEEL CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS SEPTEMBER 30, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Evergreen International Corporation EVA Airways Corporation Continental Engineering Corporation Chang, Kuo-Hua Chang, Kuo-Ming Chang, Kuo-Cheng Chang Yung-Fa Foundation	91,101,257 38,201,625 25,645,907 25,008,820 25,008,820 25,008,820 25,008,820	21.69 9.09 6.10 5.95 5.95 5.95 5.95

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_64dcc3a0-44c4-4a4f-919d-bc652b2a9e99.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

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

1) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

c. Basis of consolidation

d. Other significant accounting policies

1) Retirement benefits

2) Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT FVTOCI

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES

Trade receivable

September 30, 2021

December 31, 2020

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE 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

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

d. Treasury shares

25. REVENUE

a. Contact balances

b. Partially completed contracts

26. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other income

b. Other gains and losses

c. Finance costs

Accrual rate

Amount

27. INCOME TAXES

b. Income tax assessments

28. EARNINGS PER SHARE

Net profit for the period

Shares

Unit: In Thousand Shares

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

1) Market risk

Sensitivity analysis

Sensitivity analysis

c) Other price risk

Sensitivity analysis

2) Credit risk

EGST Interim / Quarterly Report 2021