EMC — AGM Information 2020

Aug 17, 2020

Stock Code ： 2603

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EVERGREEN MARINE CORP. (TAIWAN) LTD.

2020 Annual General Shareholders’ Meeting

Meeting Minutes

June 24, 2020

THIS IS A TRANSLATION OF THE MINUTES FOR THE 2020 ANNUAL SHAREHOLDERS’ MEETING (THE “MINUTES”) OF EVERGREEN MARINE CORP. (TAIWAN) LTD. (THE “COMPANY”). THIS TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE MINUTES SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN.

EVERGREEN MARINE CORP. (TAIWAN) LTD. Minutes of the 2020 Annual General Shareholders’ Meeting

Meeting Time: 9:00 AM on June 24 (Wednesday), 2020

Meeting Location: Conference Hall on the 15th floor

EVERGREEN MARINE CORP. (TAIWAN) LTD.

No. 163, Sec. 1, Xinnan Rd., Luzhu Dist., Taoyuan City, Taiwan (R.O.C.)

Attendance: There were 4,812,973,786 shares representing shareholders attending (including electronic voting or by proxy), reaching 68.60% of 3,302,006,922 shares total issued by the Company.

Chairman: Chang, Cheng-Yung, the Chairman of the Board

Secretary: Ms. Chen, Yi-Chun

Attendants as guest : Mr. Yu, Fang-Lai, Independent Director / Mr. Li, Chang-Chou, Independent Director / Mr. Chang, Chia-Chee, Independent Director / Ms. Ko, Lee-Ching, Director / Mr. Hsieh, HueyChuan, Director / Ms. Chen, Jiin-Shian, Lawyer/ Ms. Lee, Hsiu-Ling, CPA

I. Report the total number of shares represented at this AGM and announce commencement of the meeting.

II. Chairman’s Address: Omitted.

III.Report Items:

• A. Business Report of the year 2019 (Handbook pages 6-12).

• B. Audit Committee’s Review Report of the year 2019. (Handbook page 42)

• C. Report of not setting aside Employees’ Compensation and Directors’ Remuneration Report: Since there was no profit in fiscal year 2019, the Company does not set aside Employees’ Compensation and Directors’ Remuneration pursuant to the Article 26 of Articles of Incorporation.

Summary of the Essential Points of the Proceedings

Summary of Shareholders’ Statements:

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Shareholders (Account No. 443312 and No. 504989) inquired about the Company’s operation situation and financial condition.

The above inquiries were responded by the Chairman.

IV. Ratification and Discussion Items ：

Proposed by the Board of Directors

Proposal 1 ： Ratification of the 2019 Business Report and Audited Financial Report. (Handbook pages 6-40) Please ratify.

Description: The 2019 Financial Report of the Company has been audited by Ms. Lee, Hsiu-Ling and Mr. Chih, Ping-Chiun, the CPA of PricewaterhouseCoopers, Taiwan.

Summary of the Essential Points of the Proceedings

Summary of Shareholders’ Statements:

Shareholders (Account No. 443312 and No. 504989) inquired about the Company’s operation situation and financial condition.

The above inquiries were responded by the Chairman.

Resolution: The vote was in favor of the proposal, and the vote report was as follows:

Voting Results	Electronic Votes	Aggregated Votes (Including Electronic Votes)	% of the total Votes at the time of voting
Approval	1,566,049,956	3,170,374,866	95.98
Disapproval	3,259,733	3,260,743	0.09
Invalidation	0	0	0
Abstention/Unvoted	128,860,247	129,512,702	3.92
Total	1,698,169,936	3,303,148,311	100.00

Proposed by the Board of Directors

Proposal 2 ： Ratification of 2019 earnings distribution. (Handbook page 41) Please ratify.

Description: Based on the principle of stabilization for sustainable management of the Company, it is proposed to reserve all appropriable earnings to

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meet future needs and not to allocate dividends.

Summary of the Essential Points of the Proceedings

Summary of Shareholders’ Statements:

Shareholders (Account No. 443312 and No. 504989) inquired about the Company’s financial condition.

The above inquiries were responded by the Chairman.

Resolution: The vote was in favor of the proposal, and the vote report was as follows:

Voting Results	Electronic Votes	Aggregated Votes (Including Electronic Votes)	% of the total Votes at the time of voting
Approval	1,576,308,305	3,180,633,215	96.29
Disapproval	3,513,432	3,514,442	0.10
Invalidation	0	0	0
Abstention/Unvoted	118,348,199	119,000,654	3.60
Total	1,698,169,936	3,303,148,311	100.00

Proposed by the Board of Directors

Proposal 3 ： Proposal to amend the Company’s “Articles of Incorporation.” Amendments shown in a comparison table on the Handbook (page 43). Please discuss.

Description: For capital increase demand in the future, it is proposed to amend Article 5 to increase the total authorized capital of the Company from NT$50,000,000,000 to NT$70,000,000,000.

Summary of the Essential Points of the Proceedings

Summary of Shareholders’ Statements:

Shareholders (Account No. 443312 and No. 504989) inquired about the Company’s financial condition.

The above inquiries were responded by the Chairman.

Resolution: The vote was in favor of the proposal, and the vote report was as follows:

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Voting Results	Electronic Votes	Aggregated Votes (Including Electronic Votes)	% of the total Votes at the time of voting
Approval	1,576,277,507	3,180,602,417	96.29
Disapproval	3,358,888	3,359,898	0.10
Invalidation	0	0	0
Abstention/Unvoted	118,533,541	119,185,996	3.60
Total	1,698,169,936	3,303,148,311	100.00

V. Election Item:

Proposed by the Board of Directors

Proposal: Proposal to elect the Directors of the Company. Description:

1. Since the term of office of the current Directors will expire on June 21, 2020, it is proposed to elect nine Directors (including three Independent Directors) according to Article 15 of the Articles of Incorporation of the Company. The new Directors, whose term of office shall be three years from June 24, 2020 to June 23, 2023, shall take office after Annual General Shareholders’ Meeting, and the current Directors shall be discharged simultaneously.

2. The election of the Directors is conducted under the “candidate nomination system”. The list and relevant information of the Director Candidates nominated by the Board of Directors of the Company are as Handbook Pages 44-48.

Election Results: The newly elected directors were as follows:

Item	A/C Number	Name	Shareholding	Votes Received
Director	573001	HUI Corporation Representative: Chang, Cheng- Yung	1,000,000	2,884,055,175

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Item	A/C Number	Name	Shareholding	Votes Received
	5	Chang, Kuo-Hua	319,646,157	2,832,809,631
	840	Evergreen International S.A. Representative: Ko, Lee-Ching	391,786,816	2,816,304,022
	840	Evergreen International S.A. Representative: Hsieh, Huey- Chuan	391,786,816	2,774,562,574
	573001	HUI Corporation Representative: Tai, Jiin-Chyuan	1,000,000	2,326,273,779
	10710	Evergreen Steel Corp. Representative: Wu, Kuang-Hui	38,261,703	2,309,497,513
Independent Director	A1023*	Yu, Fang-Lai	0	2,306,093,804
	H1211*	Li, Chang-Chou	0	2,304,767,854
	A1202*	Chang, Chia-Chee	0	2,303,759,940

VI. Other Item:

Proposed by the Board of Directors

Proposal: Discussion on approving the release of restrictions of competitive activities of Directors. Please discuss. Description:

1. Directors who, for themselves or others run businesses which are similar to the business of the Company, shall report to and obtain permission from the shareholders’ meeting.

2. The competitive activities of the newly elected Director are as shown

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in the following table. Therefore, the release of restrictions of competitive activities of Directors is proposed to the Shareholders’ Meeting for approval.

Director	Concurrent Positions in Other Companies	The Business which is similar to the Company’s
HUI Corporation Representative : Chang, Cheng-Yung	Director and President of Greencompass Marine S.A.	Ship Transportation
	Director and President of Gaining Enterprise S.A.
	Chairman of Qingdao Evergreen C&T Co., Ltd.	Container Distributing Center Business
	Chairman of PT. Multi Bina Pura International
	Director of Taipei Port Container Terminal Corporation
	Director of Ningbo Victory Container Co., Ltd.
	Director of Kingtrans Intl, Logistics (Tianjin) Co., Ltd.
	Director of Everport Terminal Services Inc.
	Director of VIP Greenport Joint Stock Company
	Director of Evergreen International Storage &Transport Corp. Note: The director candidate on 2020 Annual General Shareholders’ Meeting of Evergreen International Storage &Transport Corp.	1. Ship Transportation 2. Container Distributing Center Business
Chang, Kuo-Hua	Director and President of Evergreen International S.A.	Ship Transportation
	Director of Evergreen Marine (Hong Kong) Ltd.
	Director of Colon Container Terminal S.A.	Container DistributingCenter

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Director	Concurrent Positions in Other Companies	The Business which is similar to the Company’s
		Business
	Director of Evergreen International Storage &Transport Corp. Note: The current director and director candidate on 2020 Annual General Shareholders’ Meeting of Evergreen International Storage &Transport Corp.	1. Ship Transportation 2. Container Distributing Center Business
Evergreen International S.A. Representative : Ko, Lee-Ching	Director and President of Evergreen International S.A.	Ship Transportation
	Director of Greencompass Marine S.A.
	Director of Gaining Enterprise S.A.
	Director of Evergreen Marine (Singapore) Pte. Ltd.
	Director of Evergreen International Storage &Transport Corp. Note: The current director and director candidate on 2020 Annual General Shareholders’ Meeting of Evergreen International Storage &Transport Corp.	1. Ship Transportation 2. Container Distributing Center Business
Evergreen International S.A. Representative : Hsieh, Huey-Chuan	Director of Greencompass Marine S.A.	Ship Transportation
	Director of Gaining Enterprise S.A.
	Director of Italia Marittima S.P.A.
	Director of Everport Terminal Services Inc.	Container Distributing Center Business
	Director of PT. Multi Bina Pura International
	Director of Taipei Port Container Terminal Corporation
HUI Corporation Representative :	Director of Colon Container Terminal S.A.	Container DistributingCenter

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Director	Concurrent Positions in Other Companies	The Business which is similar to the Company’s
Tai Jiin-Chyuan	Director of Evergreen Container Terminal (Thailand)Ltd.	Business
	Director of Taipei Port Container Terminal Corporation
	Director of Evergreen International Storage &Transport Corp. Note: The current director and director candidate on 2020 Annual General Shareholders’ Meeting of Evergreen International Storage &Transport Corp.	1. Ship Transportation 2. Container Distributing Center Business
Evergreen Steel Corporation Representative: Wu, Kuang-Hui	Director of Ningbo Yi Ning Terminals Ltd.	Container Distributing Center Business
	Director of Evergreen Marine (Hong Kong) Ltd.	Ship Transportation
	Director of Italia Marittima S.P.A.

It is proposed to release the restrictions of competitive activities of Directors mentioned above and the juristic persons who present.

Resolution: The vote was in favor of the proposal, and the vote report was as follows:

Voting Results	Electronic Votes	Aggregated Votes (Including Electronic Votes)	% of the total Votes at the time of voting
Approval	1,268,882,483	2,873,408,916	86.99
Disapproval	4,553,378	4,553,378	0.13
Invalidation	0	0	0
Abstention/Unvoted	424,734,075	425,186,017	12.87
Total	1,698,169,936	3,303,148,311	100.00

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VII. Extraordinary Motions: None.

Summary of the Essential Points of the Proceedings

Summary of Shareholders’ Statements:

Shareholder (Account No. 443312) inquired about the Company’s financial condition.

The above inquiries were responded by the Chairman.

VIII. Meeting Adjournment.

• Note 1: The meeting minutes was recorded in accordance with the provision of paragraph 4 of Article 183 of the Company Law. The meeting audio recording still prevails regarding the meeting content, proceedings and shareholders’ statements.

• Note 2: Because the percentage of approval votes, disapproval votes, invalid votes, abstention votes and no votes held by total votes is calculated rounded down to the second decimal place, the total percentage will not be exactly equal to 100.00%.

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes		December 31, 2019 AMOUNT 37,871,889 2,018,536 1,693,497 129,545 13,979,251 780,562 283,739 743,540 381,933 4,547,919 1,500,038 2,368,627 66,299,076 1,719,423 100,000 29,400,925 108,393,511 82,624,186 5,455,070 l ,929,667 1,035,398 9,638,382 240,296,562 306,595,638 ％ 12 5 1 22 10 35 27 2 3 78 100	＄ ＄ December 31, 2018 AMOUNT ％ 35,836,635 16 2,665,608 2,244,065 154,295 15,013,211 7 503,638 882,521 598,931 221,601 5,100,897 2 1,824,053 2,853,053 1 67,898,508 30 1,650,372 100,000 28,265,168 12 117,219,185 51 5,835,074 3 2,266,526 835,979 4,941,143 2 161,113,447 70 229, 01 I , 955 100
1100 ll 36 1140 1150 1170 1180 1200 1210 1220 130X 1410 1470 IIXX 1517 1535 1550 1600 1755 1760 1780 1840 1900 15XX Current assets Cash and cah equirlents C urrent fnancial assets at amortised cost, net Current contract assets Notes receivable, net Accounts receivable. net Accounts receivable, net - related parties Other receivables Other receivables - related parties Current income tax assets Inventories Prepa) ments Other current assets Current assets Non-current assets Non-current fnancial assets at fir value through other comprehensive mcome Non-current fnancial assets at amortised cost, net Investments accounted for using equit method Proper()·, plant and equipment, net Right-of-use assets Investment property, net Intangible assets Deferred income tax assets Other non-current assets Non-current assets I XXX Total assets	6(1) 6(3) 6(22) 6(4) 6(4) 6(4) and 7 7 6(5) 6(6) and 8 6(2) 6(3) 6(7) 6(8), 8 and 9 6(9) 6(10) and 8 6(29) 6(4)(11)(16) and 8	＄ ＄

(Continued)

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDTARTES CONSOLIDATED BALANCE SH TS (Expressed in thousands of New Taiwan dollars)

Liabilities and Eguity Notes Current liabilities 2126 Current fnancial liabilities fr 6(9)and7 hedging 2130 Current contract liabilities 6(22) 2170 Accounts payable 2180 Accounts payable - related parties 7 2200 Other payables 2220 Other payables - related parties 7 2230 Current income tax liabilities 2280 Current lease liabilities 6(9)and7 2300 Other current liabilities 6(12)(16) 21XX Current liabilities Non-current liabilities 2511 Non-current fnancial liabilities fr 6(9)and7 hedging 2530 Corporate bonds payable 6(13) 2540 Long-term loans 6(14) 2570 Deferred income tax liabilities 6(29) 2580 Non-current lease liabilities 6(9)and7 2600 Other non-current liabilities 6(15)(16)(17) 25XX Non-current liabilities 2XXXTotal liabilities Equity attributable to owners of the parent Capital 6(18) 3110 Common stock Capital surplus 6(19) 3200 Capital surplus Retained earnings 6(20) 3310 Legal reserve 3350 Unappropriated retained earnings Other equity interest 6(21) 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXXTotal equity Significant Contingent Liabilities And9 Unrecognized Contract Commitments Significant Events After T he Balance l l Sheet Date 3X2X Total liabilities and equity		December31, 2019 AMOUNT I,861,026 2,213,538 16,169, 7 JO 411,102 4,406,879 706,239 841,265 9,075,576 27,764,309 63,449,644 18,327,916 10,000,000 83,859,972 2,027,378 51,967,317 3,368,565 169,551,[48 233,000,792 48,129,738 11,407,437 5,714,940 3,659,042 1,134,622 70,045,779 3,549,067 73,594,846 306,595,638 ％ l ］ 5 2 3 9 21 6 3 27 17 l 55 76 16 4 2 23 I 24 JOO	December31, 2018
	＄		＄ ＄ AMOUNT ％ 1,774,392 1 19,813,190 9 253,172 3,622,892 2 I,184,484 797,877 22,615,978 10 50,061,985 22 10,000,000 4 83,010,375 36 1,970,567 13,001,192 6 107,982,134 47 158,044,119 69 45,129,738 20 11,059,145 5 5,685,548 2 3,776,643 2 1,193,156 66,844,230 29 4,123,606 2 70,967,836 31 229,011,955 100
	＄

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

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EY睏GREEN MARINE CORPORATION (TAIWAN} LTD. AND SUBSIDIARIES CONSOLfDATED STATEMENTS OF COMPREHENSfVE fNCOME

(Expressed in thousands of New Taiwan dollars, except earnings per share)

Items Notes 4000 Operating revenue 6(22) and 7 ＄ 5000 Operating costs 6(27)(28) and 7 5900 Gross proft 5910 Unrealized loss (proft) from sales 5920 Realized proft on fom sales 5950 Gross proft Operating expenses 6(27)(28) and 7 6100 Selling expenses 6200 General and administrative expenses 6450 Impairment gain and reversal of impairment loss (impairment loss) determined in accordance with IFRS 9 6000 Operating expenses 6500 Other gains - net 6(23) and 7 6900 Operating proft Other non-operating income and expenses 7010 Other income 6(24) 7020 Other gains and losses 6(25) 7050 Finance costs 6(26) and 7 7060 Share of loss of associates and joint ventures accounted fr using equity method 7000 Total non-operating income and expenses 7900 Proft befre income tax 7950 Income tax expense 6(29) 8200 (Loss) proft fr the year （＄		Years ended December 31 2019 2018 AMOUNT ％ AMOUNT ％ 190,589,281 100 ＄ 169,236,653 100 176,071,661) ( 92) ( 161,771,163)( 95) 14,517,620 8 7,465,490 5 25,181 - ( 8,131) 12,220 13,509 14,555,021 8 7,470,868 5 I , 585,738) ( l)( 1,533,425) ( ]) 8,703,296 l ( 5)( 6,520,083) ( 4) 16,336 - ( 1,473) 10,272,698) ( 6) ( 8,054,981) ( 5) 375,947 1,510,330 l 4,658,270 2 926,217 l 1,204,076 1,473,164 74,671) － （ 77,900) 5,675,837) ( 3) ( 1,880,424) ( 1) 667,062 754,347 3,879,370) ( 2) 269,187 778,900 1,195,404 1,001,913) - ( I, 116,903) ( 1) 223,013) ＄ 78,501	Years ended December 31 2019 2018 AMOUNT ％ AMOUNT ％ 190,589,281 100 ＄ 169,236,653 100 176,071,661) ( 92) ( 161,771,163)( 95) 14,517,620 8 7,465,490 5 25,181 - ( 8,131) 12,220 13,509 14,555,021 8 7,470,868 5 I , 585,738) ( l)( 1,533,425) ( ]) 8,703,296 l ( 5)( 6,520,083) ( 4) 16,336 - ( 1,473) 10,272,698) ( 6) ( 8,054,981) ( 5) 375,947 1,510,330 l 4,658,270 2 926,217 l 1,204,076 1,473,164 74,671) － （ 77,900) 5,675,837) ( 3) ( 1,880,424) ( 1) 667,062 754,347 3,879,370) ( 2) 269,187 778,900 1,195,404 1,001,913) - ( I, 116,903) ( 1) 223,013) ＄ 78,501
		2019 AMOUNT ％ 190,589,281 100 ＄ 176,071,661) ( 92) ( 14,517,620 8 25,181 - ( 12,220 14,555,021 8 I , 585,738) ( l)( 8,703,296 l ( 5)( 16,336 - ( 10,272,698) ( 6) ( 375,947 4,658,270 2 1,204,076 74,671) － （ 5,675,837) ( 3) ( 667,062 3,879,370) ( 2) 778,900 1,001,913) - ( 223,013) ＄
	＄
			＄

(Continued)

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EVERGREEN MARINE CORPORATION (TAIWAN} LTD. AND SUBSIDIARIES CONSOUDATED STATEMENTS OF COMPREHENSfVE fNCOME (Expressed in thousands of New Taiwan dollars, except earnings per share)

Items	Notes	Years endedDecember 31 2019 2018 AMOUNT ％ AMOUNT ％ （＄ （＄ （＄ ＄ （＄ （＄ （＄ ＄ 虛 133,IOI) - ($ 82,688 - ( 11,977) - ( 32,918 29 472) － 918,876) 460,138 148,372 87 954) - 398 320) － 427 792) - 650 805) - 112 519 ＄ ＄ ＄ 335,532) - ($ 143,740) - ＄ 507,065) - ($ 0.02 ＄ 0.02 ＄ 32,228) 316,044) 44,100) 23,136 369,236) 839,342 104,751 746 944 839 575 603 654 104 293 919 215,418) - 1,031,164 377,060) - 0.07 0 .07	Years endedDecember 31	Years endedDecember 31	Years endedDecember 31
					**2018 **
					AMOUNT ％ 32,228) 316,044) 44,100) 23,136 369,236) 839,342 104,751 746 944 839 575 603 654 104 293 919 215,418) - 1,031,164 377,060) - 0.07 0 .07
8311 8316 8320 8349 8310 8361 8368 8370 8399 8360 8300 8500 8610 8620 8710 8720 9750 9850 Other comprehensive income (loss) Components of other comprehensive income that will not be reclassifed to proft or loss Actuarial loss on defned beneft plan Unrealised gains (losses) on valuation of investments in equity instruments measured at fir value through other comprehensive mcome Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassifed to proft or Joss Income tax related to components of other comprehensive income that will not be reclassified to proft or loss Components of other comprehensive income that will not be reclassifed to proft or loss Components of other comprehensive income that will be reclassified to profit or loss Exchange diferences on translating the fnancial statements of freign operations Gains on hedging instrument Share of other comprehensive income of associates and joint ventures accounted fr using equity method Income tax relating to the components of other comprehensive (loss) income Components of other comprehensive income that will be reclassifed to profit or loss Other comprehensive (loss) income fr the year, net of income tax Total comprehensive (loss) income fr the year Profit (loss), attributable to: Owners of the parent Non-controlling interest Comprehensive (loss) income attributable to: Owners of the parent Non-controlling interest Basic earnings per share (in dollars) Basic earnings per share Diluted earnings per share	6(17) 6(2) 6(29) 6(9) 6(29) 6(30)

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

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EVER REE MARINE , RP RATI TA A L冇J A, IDIARIE CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of New Taiwa11 dollars)

Capital surplus, additional paid-in Notes Common stock capital Year 2018 Balance at Januar I, 2018 Retrospective application Balance at I Jan四r after adjustments Profit (lo�) for the year 。!her comprehensive income (loss) fr the year Total comprehensive income (loss) Distribution of20 17 earnings Legal capital reserve Stock dividends Cash dividends Issuance of common stock fr cash Employee sJock options e,ercised Adjustments to share of changes in equity of associates and joint ventures Disposal of investments in equity instruments designated at fir value 6(20) Effect of business combination Net change in non-ontrolling interests Balance at December 3 1, 20 18 Year 2019 Balance at January I, :19 Proft (loss) for the year 。ther comprehensive income (loss) for the year Total comprehensive income (loss) Distribution of20 18 earings Legal capital reserve Issuance of common stock for cash Employee stock options exercised Adjustments to share of changes in euity of assoiates and JOlnt ventures Net change in non-ontrolhng interests Balance at Dcccmbcr JI, 20 19 6(21) 6(21) 6(21) 6(21) 6(20) 6(18)(19) 6(19) 6(19J(20x21) 6(1 9)(3 I) 6(�1) 6(21) 6(20 ) 6(18)(19) 6(19 ) 6(19)(20)(21) $ l0,123,560 40,123,560 2,006.178 3 .000 .000 $ 4\ 129718 $ 45,129,738 3 .000 .000 $ 10,838,075 10,838,075 一 （ 6(19)(20)(31) • $ 48,129,738 226,890 17,61U 20,412 ( 43,842) i 11 QS9,14S —. ..;. i 11,059,145 333.934 17,066 4,077) 1,369 i 11 ,407 ,437

Equitv atlibutable to owners of the parent ~~~~ Other equit interest Unrealised gains (losses) fom Financial fnancl81 assets statements measured 81 fair Unrealised gam or Gains (losses) on Gains Unappropuated translation value through other loss on available• effective portion (losses) on retained differences of comprehenme for-sale fnancial of cash fow hedging Non-controllmg LeHal reserve earnin�s fore,Mn operations mcome assets hedxes instrments Total inte1est Total equ,tv Retained earnings $ 1,985,031 4,985,031 二 ,00,517 � �:�85,54� $ 5,685,548 － 29,392 $ 5,714,940 $6,769,575 ($ 1,135,lH) $ 276,681 7,046,256 293,919 （ 可，341) 222,5唸 ( 700,517) ( 2,006,178) ( 802,471) 7 8 3 3．<br>4<br> <br>,<br>＇<br> <br>·｀<br> <br>－<br>＄｀节6,64,<br>.,-,: 三－－一一·<br>29,392)<br>，<br> <br>-<br>4<br>.<br>4<br>4<br>n<br>69<br>的<br>.<br>'<br>，<br> <br>5<br>2<br>2<br> <br>3<br>5<br>5<br> <br>•<br>•<br> <br>I<br> <br>'<br>,<br>'<br> <br>-<br>-<br>I<br> <br>**,｀**<br> <br>! 一－，且滋<br>$ 3,776,643<br>$ 17,580<br>112,519<br>-<br>(<br>J<br>97,673 l (<br>874. 353)<br>(<br>85,154) (<br>874.353)<br>(<br>49)<br>(<br>3,006 l<br>-<br>.$ 3,659,042<br>(.$ 856,773)<br>,＇ 、' 一 2 2 . l I 6 6 7 7 6 6 3 3 ＇ ， ＇ ， 3 3 I i 5 5 0 0 5 5 3 3 , ' l 1 , ＼ ( 4,628) 13,438) $ l 1,4 n, """'""'""�=一.;;;, $ l,234,225 177,361 l 77 ,36l 52 $ I ,411 ,638 $ 1,8)) ,))9 ($ ( l ,8JJ,JJ9 l ： ＄－一＿ ＄ － － 15,912) $ - $ 63,398,SSl $ 3,290,236 $ 66,688,790 15,912 I l'912 ) ( 2,9961 ( 1,231) I 4,22i) 丶 ., - ( 1, 912) 6J,395,SS8 3,289,005 66,684,563 . , - - 293,919 ( 215,418) 78,501 一 ( 42,737) 737,245 ( 161,642) 575,603 - I 42 717) 1,03\,\64 ( }'',060) 654,104 ' ' . ＄－－一.: $ - · l U nJ 7 9 l 4 8 6 ． 2 6 7 O 2 1 8 2 ． 3 19,'21 ． ( 4) ,842 I ($ 58.649) i 66,844010 、..,., ,.,., , ••• ..,. 一"一�. ($ 58,649) $ 66,844,210 $ 4,123.606 $ i0.967,836 - 112,,19 ( 335,532) ( 223,013) 638,406 ( 256,259) ( 171,533) ( 427,792) 638,406 ( 14.,7401 ( 507,065) ( 650.805) － 一 ＄ － ． ＄ �s79 7S7 ,， ,． 55,857 I. 155 .804 i 4 121 606 ,;,_a. 802,471 l 3,226,890 17,610 19,321 55,857 1.111,962 .'0,967,83� J .JJJ .9]4 17,066 3,333,934 17,066 ( 4,074 l - I 4,074) ( 1,6'71 ( 67,474) ( 69,111) .$ 70,045,779 . 3,549,067 . 73,594,846

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

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EVERGREEN MARINE CORPORATION TAIWAN LTD. AND SUBSIDIARIES CONSOLIDATED S TATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

			Years ended December 31
	Notes		2019	2018
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax Adjustments Income and expenses having no effect on cash flows		＄	778,900 ＄	1,195,404
Depreciation	6(8)(9)(10)(25)(27)		20,450,038	8,803,540
Amortization	6(27)		313,635	69,348
(G , am on expected credit loss) impairment loss	12(2)		16.336)	1,473
Interest income	6(24)		749,147)	563,604)
Interest expense	6(26)		5.675,837	1,880,424
Dividend income	6(24)		112,966)	109,996)
Loss on disposal of investments accounted for using equity	6(25)
method				122,834
Share of profit of associates and joint ventures accounted for
using equity method			667,062)	754,347)
Gain recognised in bargain purchase transaction	6(24)			138,571)
Gains arising from lease modification	6(25)		8. 937 l
Net gains on disposal of property , plant and equipment	6(23)		375,947)	1,510,330)
Net gai11S on disposal ofright-of-use assets Net losses on disposal of investn1ents Realized income with aftliated companies Unrealized (loss) income with aftliated compaiues	6(25) 6(25)		47. 716) 49,117 12.220) 25. 181)	13,509) 8,131
Employee stock options exercised	6(18)		17,066	17,610
Changes in assets/liabilities relating to operating activil!es
Chai1gcs in operating assets Financial assets at fair value through profit or loss			189
Current contract assets			513,065	358,513)
Notes receivable, net			21.037	85,537 J
Accounts receivable, net			684,785	2,505,861)
Accounts receivable, net -related parties			283,302)	299,056
Other receivables			578,926	428,644)
Other receivables -related parties			154,690)	9ts,659 l
Inventories			452,022	1,274,022 J
Prepayments			105,010	189,060)
Other current assets			355,601	210,846 l
Other non-current assets			8.685)	47,085
Net changes m liab1l1t1es relating to operating activities
Current contract liabilities			471,486	748,709)
Accounts payable			3.285,621)	3,779,538
Accounts payable - related parties			163,421	50,260
Other payables			353,008	199,638
Other payables -related parties			36,917	788,583)
Other current liabilities			837,394	1,178,807)
Other non-current I iabilit1es Cash inflow generated from operations			二） 26. 103,627	239,764) 5,276,979
Interest received			749,147	563,604
Interest paid			5.776,049)	2,019,771)
Income tax paid			1.283,463)	830,758)
Net cash tlows from operating activil!es			19,793,262	2,990,054

(Continued)

1 5

EY[ERGREEN MARINE CORPORATION (TAIWAN) LTD AND SUBSIDIARI] E[S ] CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed 111 thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Decrease in fnancial assets at amortised cost Proceeds fom disposal of financial assets at fair value through other comprehensive mcome Proceeds fom capital reduction of fnancial assets at fir value through other comprehensive mcome Acqu1s1tmn of mvcstments accounted for using equity method Proceeds fom capital reduction of investments accounted fr using equity method Acquisition of property, plant and equipment Proceeds fom disposal of property. plant and equipment Proceeds fom disposal of nght-of-use assets Acquisition of 111tangible assets Increase in guarantee deposits paid Increase in other non-current assets Proceeds fom capital reduction of investments accounted fr using equity method Efect of mitial consolidation of subs1dianes Cash dividend received Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVfTIES Increase in short-term loans Decrease in short-term loans (Decrease) increase m other payables Increase in long-term loans Decrease in Jong-term loans Repayments of principal portion oflease liabilities [ncrease in corporate bonds payable Net change 111 non-controlling interest Decrease in other non-current liabililles (Decrease) increase in guarantee deposits received [ssuance of common stock fr cash Cash dividends paid Net cash fows (used in) fom fnancing activities Efect of exchange rate changes Net mcrease in cash and cash equivalents Cash at1d cash equivalents at beginning of year Cash at迢cash equivalents at end of year	Notes	Years ended December 31 2019 ＄ 641,814 1.248,694) ( 66 6731,119) ( 1,172,365 174,944 23, 758) ( 7 .283 l 12,371,737) 923,614 17. 469,788) ( 200,000 200,000 l 477,872) 32.954,862 24.186,530) ( 11.628,066) 69. 111) l趴068l 3.333,934 85,851) 202,369) 2.035,254 35,836,635 ＄ 37,871.889 ＄ ＄ 208 2,134,711 342,661 924 980,574 l 43,904 10,065,16) 2,161,292 29,380) 7,295 l 14,455,798) 5 2,635,830) 717,798 22,772,998) 939,354 43,572,441 27,312,244 l 2,000,000 1,215,982 1,050,945) 122,898 3,226,890 802,471) 21,911,905 72,892 2,201,853 33,634,782 35,836,635
	6(2 6(33 6(33 6( 33) 6(33 6(34 6(34 6(9(34 6(31(33 6(34 6(17 6(19

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

1 6

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes		December 31, 2019 AMOUT 18,767,848 1,588,797 372,492 166 2,877,284 112,150 69,102 5,160 29,012 972,539 246,391 2,405,251 27,446,192 1,156,298 100,000 57,888,371 36,934,484 22,497,764 1,869,412 19,599 794,122 1,172,221 122,432,271 149,878,463 ％ 12 2 2 18 39 25 15 1 82 100	December31, 2018 AMOUNT ％ ＄ 19,471,486 15 2,322,603 2 682,327 43 3,258,807 3 99,623 205,230 180,937 908,122 254,205 2,652,429 2 30,035,812 23 1,021,582 100,000 58,145,047 45 35,045,526 27 1,888,557 2 28,730 686,350 976,611 1 97,892,403 77 ＄ 127,928,215 100
Current assets Cash and cash equivalents Current financial assets at amortised cost Current contract assets Notes receivable - net Accounts receivable - net Accounts receivable, net - related parties Other receivables Other receivables - related parties Current income tax assets Im·entories Prepayments Other current assets Current Assets Non-current assets Non-current financial assets at fair value through other comprehensive income Non-current financial assets at amortised cost lnYestments accounted fr using equity method Prope11y, plant and equipment - net Right-of-use assets Investment property - net Intangible assets Defrred income tax assets Other non-current assets Non-current assets Total assets	6(1) 6(3) !nd 8 6(21) 6(4) 6(4) 6(4) and 7 7 6(5) 6(6) and 7 6(2) 6(3) 6(7) 6(8) and 8 6(9) and 7 6(10) and8 6(28) 6(11)	＄
		＄

(Continued)

17

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY BALANCE SHEETS

	(Expressed in thousands	of	New Taiwan dollars)
			December 31,2019			December 31,2018
Liabilities and Egui立	Notes		AMOUNT	％		AMOUNT	％
Current liabilities
Current financial liabilities fr hedging	6(9) and 7	＄	1,861,026	1	＄
Current contract liabilities	6(21)		536,774			431,290
Accounts payable			3,370,023	2		4,383,686	4
Accounts payable - related parties	7		283,199			193,831
Other payables			1,207,403			928,636
Other payables - related parties	7		9,110			6,683
Current income tax liabilities						263,684
Current lease liabilities	6(9) and 7		717,363
Other current liabilities	6(12)(14) and 7		10,277,100	7		9,040,820	7
Current Liabilities			18,261,998	12		15,248,630	12
Non-current liabilities
Non-current fnancial liabilities fr hedging	6(9) and 7		18,327,916	12
Corporate bonds payable	6(13)		10,000,000	7		10,000,000	8
Long-term loans	6(14)		29,818,885	20		33,708,791	26
Deferred income tax liabilities	6(28)		798,998			792,971
Non-current lease liabilities	6(9) and 7		1,322,625	1
Other non-current liabilities	6(15)(16)		1,302,262	1		1,333,593	1
Non-current liabilities			61,570,686	41		45,835,355	36
Total Liabilities			79,832,684	53		61,083,985	48
Equity
Capital	6(17)
Common stock			48,129,738	32		45,129,738	35
Capital surplus	6(18)
Capital surplus			11,407,437	7		11,059,145	9
Retained earnings	6(19)
Legal reserve			5,714,940	4		5,685,548	4
Unappropriated retained earnings			3,659,042	3		3,776,643	3
Other equity interest	6(20)
Other equit interest			1,134,622	1		1,193,156	1
Total equity			70,045,779	47		66,844,230	52
Significant Contingent Liabilities And	9
Unrecognised Contract Commitments
Significant Events After The Balance Sheet	II
Date
Total liabilities and equity		＄	149,878,463	100	＄	127,928,215	100

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

18

EVERGREEN MARINE CORPORATION (TAIWAN) LTD PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thous ands of New Taiwan dollars, c:xcept as earnings per share)

					Year ended December	Year ended December	Year ended December	Year ended December	31
				2019					2018 ' '
Items	�			AMOUNT	o ·---�				AMOUNT		o。
Operating revenue	6(21) and 7		＄	44,687,138	100			$	33,994,571		100
Operating costs	6(26)(27) and 7	(		42,080,473)	(	94)	(		32,512,863) (			96)
Gross proft				2,606.665		6			1,481,708			4
Operating expenses	6(26)(27) and 7
Selling expenses General and administrative expenses Impairment loss (impairment gain and re�ersal of				308,162) 2,126,796)	( (	D sl	（ （		301,462) ( 1,606,233) (			) 、`,l 4
impainnent loss) determined in accordru1ce with
IFRS 9				206		-	(			~~箜~~1)
Total operating expenses				2,434,752)	(	6)	(		1,907,992) (			5)
Other gains - net	6(22) and 7			4,649						7,594		-
Operating proft (loss) Non-operating income and expenses				176,562	·	一	（			418 690) ( ~~,~~		!)
Other income Other gains and losses Finance costs Share of proft of subs汕aries, associates ru1d joint ventures accounted fr using equity method	6(23) 6(24) 6(25)			516,626 17,131 1,304,925) 545,406	(	） - 3 2		',｀	580,784 19,481 685,636) ( 1,013,565			2 、 丿 - 2 3
Total non-perating income and expenses				225,762)						928,194		3
Proft befre income tax [ncome tax expense Proft for the year Other comprehensive income (loss)	6(28) 6(20)		＄＿	49,200) 161 719 ·一一一. 112 519 '			＿ ＄－ , ＇ `			509,504 215,585) ( 293醞	，＇，	2 1) ＼
Components of other comprehensh·e income that
will not be reclassifed to profit or loss
Losses on remeasurements of defined beneft plans	6(16)	（＄		75,241)			（＄			47,522)
Unrealised gains (losses) on valuation of	6(2)
investments in equity instruments measured at fir
value through other comprehensive income				134,715						67,238
Share of other comprehensive loss of associates and
joint ventures accounted fr using equity method,
components of other comprehensive income that
will not be reelassified to profit or loss				101,401)						409,055) (		1)
Income tax related to components of other
comprehensive income that will not be reclassifed
to profit or loss				20,163						11,944
Components of other comprehensive loss that
will not be reclassified to proft or loss				21,764)		-	(			377,3-2) (		1)
Components of other comprehensive income that
will be reclassifed to profit or loss
Other comprehensive (loss) income, before Lax,
exchange differences on translation Gains on hedging instrument Share of other eomprehensive income of associates	6(9)			755,051) 460,138	(	） 2 l			1,04,409			3
and joint ventures aeeounted fr using equ吶
method, components of other comprehensive
income that will be reclassified to profit or loss				152,428						104,751
Income tax relating to the components of other
comprehensive income				92.010)	"一	:				746
Components of other comprehensive (loss)
income that will be reclassified to proft or loss Other comprehensive (loss) income fr the year Total comprehensive (loss) income fr the year Basic earnings per share (in dollars)	6(29)	＿ ＄＝ ＄ , ＼ , ＼ ,',｀		234,495) 256,259) . 一 ,. 一， 143 ,]40)				＄－－ ＄－	1,109,906 732 511 ｀ 1,026,430		3 二
Basic earnings per share Diluted earnings per share			$－－ ＄＿		0 02 . ' 0.02			$－－ $＿			0 07 . ' 0.07

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

19

20

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)

			Years ended	December	31
	Notes		2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss) proft befre tax		（＄	49,200)	＄	509,504
Adjustments Adjustments to reconcile proft (loss)
Depreciation	6(24)(26)		4,813,032		2,052,106
Amortization	6(26)		16,458		20,572
Expected credit (gain) loss	12(2)		206)		297
Interest expense	6(25)		1,304,925		685,636
Interest income	6(23)		316,320)		259,184)
Dividend income	6(23)		45,631)		58,560)
Share of profit of subsidiaries, associates and joint ventures accounted fr using equity
method			545,406)		1,013,565)
Loss on disposal of investments Gailis arisillg fom lease modifcation	6(24) 6(24)		36 1,237)
Net gain on disposal of property, plant and	6(22)
equipment Cash capital increase reserved fr employee	6(18)	（	4,649)		7,594)
preemption			17,066		17,610
Changes in operating assets and liabilities
Changes in operating assets Financial assets at fir value through proft or
loss			130
Current contract assets			309,929		303, 183)
Notes receivable			123)		29
Accounts receivable			375,219		771,436)
Accounts receivable - related parties			12,529)		113,797
Other receivables			142,547		146,416
Other receivables - related parties			175,777		79,851
Inventories		（	64,417)	(	219,245)
Prepayments		（	19,315)	(	28,271)
Other current assets			247,178	（	640,504)
Other non-current assets			1,170	（	846)
Changes in operating liabilities
Current contract liabilities			105,484		21,918)
Accounts payable			1,013,663)		913,624
Accounts payable - related parties			89,368		68,936
Other payables			292,559		382,575
Other payables - related parties			2,427		8,235)
Other current liabilities			972,239)		173,585)
Other non-current liabilities			106 393)		179 516)
Cash infow generated fom operations			4,741,977		1,305,311
Interest received			316,320		259,184
Interest paid			1,326,972)		701,416)
Income tax paid			295 973)		12 137)
Net cash fows from operatil1g activities			3,435,352		850,942

(Continued)

2 1

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds fom disposal of fnancial assets at fir value through other comprehensive income Proceeds fom capital reduction off11ancial assets at fir value through other comprehensive income Decrease i1 financial assets at amortised cost Acquisition of investments accounted fr using equity method Acquisition of property, plant and equipment Proceeds fom disposal of property, plant and equipment Acquisition of intangible assets Increase in other non-current assets Cash dividends received Net cash fows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIS Increase in long-term loans Decrease in long-term loans Increase in corporate bonds payable Proceeds fom issuance of common stock Payments oflease liabilities Increase in guarantee deposits received Cash dividends paid Net cash fows (used in) from fnancing acti ．vi ．ti ．es Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year		Years ended December 31 2019 2018 ＄ ＄ 342,661 924 733,806 2,093,604 518,999) 86,894) 949,140) 1,418,425) 901 1,260 7,327) 10,231) 3,413,205) 6,276,066) 657,152 406,556 3,496,812) 4,946,611) 11,791,553 16,065,620 13,472,670) 15,668 , 231) 2,000,000 3,333,934 3,226,890 2,294,815) 180) 316 802,471) 642,178) 4,822,124 703,638) 726,455 19,471,486 18,745,031 ＄ 18,767,848 ＄ 19,471,486
	Notes
	6(2) 6(7) 6(30) 6(30) 6(31) 6(3 I) 6(17) 6(9)(3 I) 6(31)

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

22

EVERGREEN MARINE CORP. (TAIWAN) LTD.

2019 PROFIT ALLOCATION PROPOSAL

==> picture [546 x 431] intentionally omitted <==

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

Unit: NT$
Item Amount
Unappropriated Retained Earnings of Previous Years $3,747,251,257
Add: Net Income of2019 112,519,258
Subtract : Legal Reserve 。
Subtract : Adjustment for Retained Earnings (200,728,611) (88,209,353)
Retained Earnings in 2019 Available for Distribution 3,659,041,904
Distribution Item
Shareholders'Dividends
Unappropriated Retained Earnings $3,659,041,904
----- End of picture text -----

23

EVERGREEN MARINE CORPORATION (TAIWAN) LTD.

Comparison Table for the Article of Incorporation Before and After Amendments

After Amendments	Befre Amendments	Befre Amendments		Reason fr Amendment	Reason fr Amendment	Reason fr Amendment	Reason fr Amendment	Reason fr Amendment
Article 5	Article 5			To	increase		the	total
The total authorized	The total	authorized		authorized		capital		of the
capital of the Company shall be NT$70,000, 000,000 divided into 7,000,000,000shares at NT$10 each. The Board of	capital of the Company shall be NT$50,000,000,000 divided into 5,000,000,000shares at			Company fr increase demand fture.				capital in the
Directors is hereby	NT$ IO each. The Board		of
authorized to issue the	Directors is	hereby
unissued shares in	authorized to	issue the
installments.	unissued shares		m
	installments.
Article 29	Article 29			Add	the amended date.
Add "the 44th amendment	Omitted.
was made on June 24,
2020" according to the
original article.

2 4