EMC — Annual Report 2017

Jul 10, 2018

HEAD OFFICE

ADDRESS: No.166, Sec. 2, Minsheng East Road, Taipei, Taiwan PHONE: (886) 2-2505-7766 WEBSITE: www.evergreen-marine.com

STOCK DEPARTMENT

ADDRESS: 2F, No.166, Sec. 2, Minsheng East Road, Taipei, Taiwan PHONE: (886) 2-2500-1668 WEBSITE: stock.evergreen.com.tw

SPOKESPERSON

NAME: Mong-Jye Lee TITLE: President PHONE: (886) 2-2505-7766 E-Mail: mgt@evergreen-marine.com

VICE-SPOKESPERSON

NAME: Kuang-Hui Wu TITLE: Executive Vice President PHONE: (886) 2-2505-7766 E-Mail: public@evergreen-marine.com

AUDIT

AUDITOR: Pricewaterhouse Coopers ADDRESS: 27th Floor 333 Keelung Road, Sec. 1 Taipei 110, Taiwan PHONE: (886) 2-2729-6666 WEBSITE: www.pwc.com/tw

EMC GDRs

SYMBOL: EGMD EMC global depositary receipts(GDRs) are listed on LONDON STOCK EXCHANGE. Related information can be found at: http://www.londonstockexchange.com

CONTENTS

5 CHAPTER 1. Letter to Shareholders
5 I. 2017 Business Report
17 II. 2018 Business Plan
26 CHAPTER 2. General Condition of the Company
26 1. Brief Introduction
2. Organization 30
3. Directors & Supervisors 31
31 4. Corporate Governance
39 CHAPTER 3. Business Development Outline
39 I. Business Highlights
39 1. Business Scope
42 2. Container Shipping Industry Profile
3. Status of Technology and R&D 44
48 4. Short & Long Term Business Plans
49 II. Overview of the Industry
1. Market Analysis 49
56 2. Key usage and Manufacturing Process of Main Products
56 3. Status of Supply of Main Materials
4. Main Customers Who Purchased over 10% of Total Sales in Recent
2 Years and their individual Purchase Amount and Share 56
56 5. Company's total expense for environmental protection in 2017
57 6. Environmental protection policies and measures
7. New international environmental protection regulations 58
8. Code of Conduct / Courtesy 59
60 9. Protection Measures for Safe Work Environment and worker Safety
60 10. Social Responsibility
11. Important Agreement 62
CHAPTER 4. Financial Information 70
70 1. Five - Year Financial Summary
2. Five - Year Financial Analysis 74
76 3. Consolidated Financial Statements and Report of Independent Accountants
4. Parent Company Only Financial Statements and Report of Independent
Accountants 188

1 Letter to Shareholders

Dear Shareholders,

The global container shipping market has been in the doldrums for several years. 2017 finally ushered in an encouraging recovery. Despite the continued volatility of the global political situation, the geopolitical conflicts, and the trade protectionism, the global container shipping market maintained its integration trends in 2017. The balance of market supply and demand has been improved. Each of the main shipping alliances enlarged its fleet and service scope. Service networks were expanded and the slot utilization was at a higher level, hence operation costs were effectively reduced and revenues were increased. The global container shipping market is characterized by increasing stability.

Great team efforts were exerted by all Evergreen employees in implementing the policy of revenue maximization and cost reduction. Effective improvements were made in the fields of navigational safety, schedule reliability, terminal operation efficiency, container tracking, and document handling. On the other hand, operations within the alliance were enhanced as planned, enabling us to provide higher service quality with enlarged service scope, higher sailing frequencies, and more direct service at a lower cost level.

I. 2017 Business Report

1. Container shipping market overview

(1) Cargo volume growth

According to the World Economic outlook published by the International Monetary Fund (IMF), global GDP grew by 3.8% in 2017, which represents an increase by 3.2% compared to 2016. The average GDP growth rate in developed countries is 2.3%, which is significantly higher than the average growth rate of 1.7% in the past 5 years. In emerging countries, the average GDP growth rate in 2017 was 4.8%, remaining unchanged compared to the rate in the past 5 years. All relevant economic indicators show that 2017 is a relatively bullish year compared to past years.

Global container shipping market demands have grown steadily in sync with the global economic recovery.

1 Letter to Shareholders

A survey by Clarkson, a professional research institute for Maritime Containers reveals that the global volume of container shipments recovered significantly in 2017. Annual growth of 5% led to a 9.2 million TEU increase which resulted in a total volume of 191 million TEU. The east-west route was up about 4.6% Year-on-year, and the north-south route grew by about 5.2%.

As per Container Trade Statistics, the 2017 Asia-Europe segment grew by about 4.12%. Datamyne statistics increased by about 5.81% in the Trans-Pacific eastward segment in 2017.

(2) Capacity Supply

From April 2017, the major traditional markets are dominated by three major alliances - 2M, Ocean Alliance and THE Alliance. Under the operational framework of the alliance, investment by carriers in ultra large container vessels is increasing day by day.

According to statistics released by Alphaliner, 2017 global container fleet capacity growth rose to 3.7%, an increase of around 820,000 in TEU capacity. New deliveries totaled 146 ships at 1,126,131 TEU. A total of 156 vessels were dismantled, which was 421,562 TEU. The order of new vessels is 2,702,000 TEU, accounting for 12% of the total capacity. Among them, there were 59 ships at 18,000 TEU and 76 ships at 10,000 to 18,000 TEU. This shows that the development of ultra-large scale ships is turning into the mainstream.

In addition, the idle capacity in the market is 487,433 TEUs (about 126 ships), accounting for 2.3% of the total global fleet capacity. Compared to the end of 2016, the idle capacity was 1,419,649 TEUs, about 344 ships, accounting for 7% of the total global fleet capacity at the time.

A total of 92 ships with a capacity in excess of 18,000 TEU in 2017 account for 6% of the global fleet capacity; about 370 ships of a capacity of 12,500~18,000 TEU make up 16% of the global fleet capacity; about 221 ships of 10,000~12,500 TEU constitute 7% of the global fleet capacity. About 683 ships of a capacity of 10,000 TEU and above account for 29% of the global fleet capacity. It is estimated that the ratio of vessels of a capacity of 10,000 TEU or more will increase to 37% in 2018.

(3) Freight Market Status

With the gradual recovery of the global container shipping industry, the overall supply and demand situation improved in 2017 with rebounding freight rates. The financial position of the shipping lines was also significantly better than in the previous year.

According to the Alphaliner's statistics, the average profit level of the shipping industry has gradually improved from -1.2% in Q1 (-5.5% in 2016), 2.8% in Q2 (-9.2% in 2016) to 5.0% in Q3 (-7.8% in 2016). Q4 saw an increase to 0.9% (-1.2%in 2016), which represents a significant improvement 2017.

2. Company Operational Strategy

Following the continuous improvement of shipping market supply and demand in the 2017 and the application of modern network technologies, the global shipping container market environment also gradually presented itself in a different light. Our operating strategies were adjusted in response to the changing business environment. Furthermore, through the adoption of new technologies, new platforms and new practices, our major operation costs were reduced and core competitiveness was enhanced. The operating principles can be summarized as follows:

• (1) Strengthening of carrier alliances to complement the expansion of service networks;
• (2) Optimal fleet deployment and enhanced slot utilization;
• (3) Optimize customer relationship management and active control of freight structure;
• (4) Reasonable and timely reflection of costs and firm grasp of opportunities for revenue improvement;
• (5) Strict control of operating cost and optimization of operating efficiency.

3. Annual Accounts & Profitability Analysis

A. Annual Accounts

In 2017, actual consolidated operating income totaled NT\$150.58 billion, an increase of NT\$26.11 billion compared to the NT\$124.47 billion in 2016. In 2017, actual consolidated operating costs were

NT\$139.69 billion, which represents an increase by NT\$11.73 billion compared to the NT\$127.96 billion in 2017.

B. Profitability Analysis

ROA: 4.01 % ROE: 11.07 % Net Profit Margin: 4.42 % EPS: NTD 1.97 per share

4. Research & Development

(1) Green Fleet

Evergreen's fleet equipment has been modified to conform to California Air Resource Board (CARB) regulations, which became effective on January 1, 2017, requiring all vessels docking at its ports to use shore electric power in order to reduce exhaust emissions by at least 70%.

The company prides itself on being the "Guardian of the Green Earth", it has pioneered the design of S-type ships with multiple environmental protection facilities such as double hulls, built-in oil tanks, and shore power systems in a forward-looking approach that exceeds international norms since 2003. L-type vessels that have been in operation since 2012 are equipped with more advanced technologies to enhance environmental performance and further reduce greenhouse gas emission rates. In addition, the Type B container vessels, which were delivered in the third quarter of 2017, are equipped with a newlydeveloped sword-type stern, which can effectively reduce the wave resistance during navigation and save fuel consumption compared to the conventional ball-type hull.

In addition, we maintain an "Environmental Guardians" page on our website so as to proactively disclose emissions management and treatment of ballast and sludge, as well as provide detailed information on S-type, L-type, and B-type designs and other green instruments for the easy reference of our customers.

(2) Maritime Training

Evergreen embraces the spirit and vision of sustainable operations and is firmly committed to providing its ship masters and all crew

1 Letter to Shareholders

members with constant professional maritime training. Evergreen Seafarer Training Center has a full range of training equipment and offers rigorous and well-planned training courses to continuously improve professional knowledge and skills of seafarers with the goal of preventing maritime accidents and environmental pollution.

• (a) In 2017, the Evergreen Seafarer Training Center organized a total of 310 professional training courses in 29 categories for 1,743 trainees.
• (b) In November 2017, the UK Maritime and Coastguard Agency recertified the Company's electronic chart and data display system, Proficiency in preservation responsibility, and Proficiency in preservation awareness. The courses provided by the Evergreen Seafarer Training Center (ESTC) met the requirements of IMO STCW (Standards of Safety, Training, Certification, and Watch keeping) 2010 Amendments.
• (c) To actively recruit outstanding talent and aspiring maritime professionals, Evergreen strengthened its cooperation with National Kaohsiung Marine University, offering a graduate program in maritime transportation with a series of complete expertise and professional skills training courses. In addition, Evergreen cooperates with National Taiwan Ocean University, offering a graduate program in turbine technology and appointing outstanding managers as lecturers in several professional courses. The goal is to cultivate professional seafarer and administrative personnel for the future through a mechanism of selection, training, deployment, and retention.
• (3) E-Commerce

E-commerce is an important link of modern transportation services. Evergreen launched its e-commerce site in 2001 (ShipmentLink. com) and is firmly committed to constant development and updates by embracing a global outlook and localized services. The goal is to provide customers all over the world with localized services characterized by timeliness, convenience, and eco-friendliness.

E-commerce has flourished in recent years due to increased international transport demand derived from many small and mediumsized enterprises as a result of the expansion of business opportunities through e-commerce platforms. In view of the need for user-friendly 1 Letter to Shareholders

logistics services of smaller volume shippers, Evergreen Line is collaborating with Alibaba.com to allow shippers to search for freight rates and reserve cargo space on the Alibaba.com platform directly. This revolutionary booking service will be available primarily to suppliers in China. Once a booking is confirmed, selected price and capacity are also locked-in. In coordination with the supply chain management services of Evergreen logistics, we provide customers with more convenient services.

(4) Quality Recognition

Evergreen has been constantly improving the quality of its services. The ultimate goal is to win the trust and approval of customers as well as recognition and certification from international media and organizations:

Evergreen Recognized for Corporate Governance Excellence for the Third Consecutive Year

The Taiwan Stock Exchange (TWSE) announced the result of its third annual corporate governance evaluation of both listed and Over-The-Counter (OTC) companies in Taiwan. The Company is ranked among the top 5% of all listed companies for the third year in a row and is the only shipping company recognized for such excellent performance.

In line with global trends, the evaluation highlights the importance of corporate governance and requires both listed and OTC companies to disclose not only financial data but also non-fiscal information. The KPIs included in this evaluation assess protection of shareholders' rights; equitable treatment of shareholders; board composition and management; information transparency, safeguarding of stakeholder interests and corporate social responsibility.

In order to implement the corporate governance system, the company invited accountants, lawyers and other professionals to serve as independent directors in 2011. Through their professional background and independence, they further enhanced the functions of the board of directors and actively strengthened the role of management and supervision. In terms of information transparency, the company regularly discloses financial statements 1 Letter to Shareholders

and other related information pertaining to fulfillment of corporate social responsibilities, implementation of credit management, and maintenance of labor-management relations on the company's Chinese and English websites, and thereby enabling domestic and foreign investors, global customers, and supply chain partners to gain a clear understanding of the company's operating conditions.

Evergreen honored with E-Commerce Excellence Award for three consecutive years

The company was awarded the "E-Commerce Excellence Award" by LOG NET, a professional logistics information management agency in 2017. From 2014 to 2016, Evergreen won this prestigious award three consecutive times. Founded in 1991, LOG NET is headquartered in New Jersey, USA, and is the leading brand for logistics integrated information services. The company has held annual e-commerce service evaluations since 2003 to recognize the outstanding performance of logistics and transportation companies in information systems and e-commerce solutions.

Although the market situation and operational pressures in 2016 impacted the overall e-commerce capabilities of the maritime industry, the company still maintained consistently excellent performance and insisted on the quality of service. Evergreen Global Information System provides electronic data services including establishment of customer information, information integrity, immediacy, correctness, and various functions of information platforms in different regions. It also provides more than ten types of regionalized webpages in line with regional language and information needs to make it easier for customers to arrange their shipments online, and keep track of their progress and related information.

II. 2018 Business Plan

Global container shipping market is expected to grow in sync with the global economy in 2018, and the volume of traded goods is also expected to grow by about 5.1%. However, imbalances are caused by supply exceeding demand and bunker oil prices continue to climb. As a result, container shipping competitive pressure persists.

1. Business Strategy

(1) Constant Strengthening of Alliances and Collaboration-Full Utilization of the Core Network

The Ocean Alliance which is comprised of the French CMA CGM, China Ocean (COSCO), Hong Kong Orient Overseas (OOCL), and Evergreen was kicked off officially in April 2017. It has 41 service routes, 331 vessels, and a total operating capacity of nearly 3.34 million TEU making it the largest among world's three major shipping alliances. It has planned to further expand its cooperation to provide 42 service routes, 350 vessels, and a total operating capacity of nearly 3.71 million TEU to better serve customers' needs in 2018.

(2) Accelerated Fleet Upgrade Plan-Strict control of Operating Costs

The Company will continue to put new 20,000 TEU, 11,000 TEU and 2,800 TEU eco-friendly ships into service.

In terms of container control, transshipment and cost reduction of fuel, the company strives to reduce the container supply factor to less than 1.6, significantly decrease the cost of transshipment, and increase the flexibility of space utilization through the Ocean Alliance network. Big data analysis software is adopted for ship operating information, coupled with the latest meteorological navigation information to improve navigation efficiency, save fuel costs, and enhance navigation safety.

2. Industry Outlook

(1) Capacity Supply

At the beginning of 2018, the total capacity of the global fleet reached 21.1 million TEU, which was 3.7% higher than in the previous year. According to Alphaliner's estimates, about 1.5 million TEU new

1 Letter to Shareholders

ship capacity will be delivered this year, and the annual transportation capacity will grow by 6% over the previous year. Shipping companies in the market are gradually delaying the delivery of ships, which will ease the oversupply situation in the overall container shipping market. (2) The Growth of Cargo Volume

According to an IMF research report, global GDP growth rate will reach 3.9% in 2018. (6.6%, 2.9%, and 2.4% in China, the United States, and the European Union, respectively). Despite increasing calls for trade protectionism and anti-globalization in recent years, it is expected that the cargo volume of shipments in 2018 will continue to grow. Alphaliner also predicts that global volume will grow by 5.1% in 2018.

In addition, Drewry, a British shipping advisory agency, pointed out in a recent study that turnover in each region is expected to continue to grow, raising the forecasted growth rate to 4.5% in 2018, which means there is an additional volume of 9 million TEU of goods to be shipped.

3. Competitive, Regulatory, and Economic Influences on Our Business

(1) External Competition

The price of marine fuel continued to rebound in 2017. Brent crude average price soared from US\$45 per barrel to US\$54, a rise of US\$9 dollars per barrel. The growth rate reached nearly 20% in 2017. Affected by the OPEC's agreement of fuel reduction, the market expects the average price of Brent crude oil to increase in 2018. The continuous rise in oil prices is a heavy burden for carriers.

• (2) Regulatory Impact
• a. Collection of fuel data and CO2 monitoring by the International Maritime Organization (IMO)

From January 1st, 2018, all vessels above 5,000 tons gross tonnage in EU ports should collect and report the annual data of CO2 emissions and related information for verification, and the shipping company should submit the monitoring plan to EU for verification by August 31, 2017.

The 69th session of IMO Marine Environment Protection Committee (MEPC) approved the global ship fuel consumption data collection mechanism and revised the Annex VI of the MARPOL Convention, which is the global ship fuel consumption data collection mechanism. The information collected by the IMO will be reported to the flag State after the end of each year. After verifying the data, the flag State will issue a declaration of conformity to the vessel and submit the data to the IMO's database of ship fuel consumption.

• b. China has published new regulations designating three areas as sulphur control areas. Effective Jan. 1, 2018, all ships berthing at ports near the Pearl River Delta, Yangtze River Delta and the Bohai Sea must use fuel with a sulfur content of ≤0.5% m/m.
• c. The IMO and Marine Environment Protection Committee (MPEC) reached a decision that the 0.5% m/m global ship fuel sulphur limit will become effective on January 1, 2020. Ships operating within the Baltic, North Sea, North American, and U.S. Caribbean Emission Control Areas (ECAs) are required to comply with the stricter 0.1% m/m sulphur limit regulation.
• (3) Macro Business Environment

2017 was a year of transformations for global container transport operators. In the United States, Trump was elected as the president and de-globalization and trade protectionism became more prominent. The economic structure of China was transformed from "investment and export" to "consumption and domestic demand" orientation, which not only slowed economic growth, but also affected the world economy through production chain and other channels. The pending Brexit, added uncertainties, making it more difficult for enterprises to conduct investment planning and generating negative impacts on the market. However, the global container shipping operators continue to implement consolidation. The reshuffling of the three major alliances has been completed, and the carriers are also trying to find a balance between market share and freight income.

4. Future strategy

The economic growth rate of the major economies in 2018 is expected to be positive and trade volume will continue to grow. For the shipping industry, it could be the best year since the 2008 Financial Crisis. However, the threat of oversupply remains as more new ships will be delivered to the market, and the overall supply and demand is expected to face greater challenges.

As oil prices continue to rise, the coming into effect of the Ballast Water Convention and the requirements set forth new low sulfur fuel

regulations will also increase costs. We will seize the opportunity to adjust the schedule of fleet network in coordination with the Ocean Alliance and make more efficient use of transport capacity.

All staff members strive for constant improvement and self motivation. In addition to an active implementation of the operating performance indicators, our staff spares no effort in exploring new markets to increase revenue and continues to implement various policies of cost and expense reduction. Evergreen provides customers with differentiated services to win customer support by embracing the concept of continuous optimization of service quality. The company earns the trust of shareholders through profitability and sustainable operations.

1. Brief Introduction

(1)Registration Date of the Company: September 25, 1968 (2)A Chronology of Evergreen Marine Corporation (Taiwan) Ltd.

1968-1976

• Established with a capital of NT\$2 million.
• Evergreen Shipping Agency (Japan) Corporation founded.
• Evergreen Shipping Agency (America) Corporation founded.

1977-1986

• Evergreen Marine (UK) Limited founded.
• Launching of unprecedented round-the-world eastbound services and westbound regular full container services and construction of 24 G-type container vessels.
• Evergreen Shipping Agency (Deutschland) GmbH founded.

1987-1996

• Listed on the Taiwan Stock Exchange with a capital of NT\$10 billion.
• Launching of a Far East/US West Coast refrigerated container service.
• Evergreen Marine (Hong Kong) Ltd. founded.
• Issuance of Global Depository Receipts of a total value of US\$115 million on the London Stock Exchange.

1997-2001

• Evergreen Shipping Agency Philippines Corporation founded.
• Colon Container Terminal S.A. in Panama becomes fully operational as a common user facility.
• Evergreen Shipping Agency (Poland) SP.Z.O.O. founded.
• Evergreen Container Terminal No. 5, Berths 79, 80 and 81 in Kaohsiung Port becomes fully operational and Taiwan's Customs authorities approved the implementation of an "overall self-management" system to improve and upgrade Evergreen's services to shippers.
• Evergreen Shipping Agency (France) S.A.S. founded.
• Evergreen Shipping Agency (Korea) Corporation founded.
• Evergreen Marine Corp. (Malaysia) Sdn. Bhd. founded.
• Evergreen Shipping Agency (Netherlands) B.V. founded.
• Evergreen Shipping Agency (Thailand) Co., Ltd. founded.
• Evergreen Marine (Singapore) Pte Ltd. founded.
• Taranto Container Terminal in the south of Italy, with Evergreen Group as one of the investors, opened for business with comprehensive feeder network serving other Italian ports, the western and eastern Mediterranean, the Adriatic Sea and the Black Sea.
• The Evergreen Seafarer Training Center is awarded ISO-9001:2000 for quality systems, marine simulator equipment, and training centers by DNV. The training center, an Evergreen Group investment opened in 1999, aims to boost the professional skills of Group crew, reduce the risk of accidents and environmental pollution at sea and conform to international regulations.
• Charng Yang Development Co., Ltd. is established as a joint venture with Tesco Taiwan for investment and construction of the Tesco Chingkuo Store in Taoyuan City.

2002-2006

• Evergreen Shipping Agency (Australia) Pty. Ltd. founded.
• Certified for "Safety, Quality & Environmental Management" by American Bureau of Shipping.
• PT. Evergreen Shipping Agency Indonesia founded.
• Evergreen Shipping Agency (Vietnam) Corporation founded.
• Evergreen Seafarer Training Center is awarded an Occupational Training Institution certificate by the Council of Labor Affairs of the Executive Yuan.
• Investment in Taipei Port Container Terminal Corp.
• Evergreen Group orders ten S-series container vessels from Mitsubishi Heavy Industries Ltd.
• Evergreen Shipping Agency (India) Private Ltd founded.
• Inauguration of a new state-of-the-art Pierce County Container Terminal at the Port of Tacoma, invested in by Evergreen Group.
• Evergreen Shipping Agency (Italy) S.P.A. founded.

2007-2011

• Evergreen Shipping Spain, S.L. founded.
• Evergreen Shipping Sweden founded.
• Evergreen Shipping South Africa founded.
• Evergreen Group ordered twenty L-series container vessels from Samsung Heavy Industries.

2012-2016

• Launching of "ShipmentLink Mobile", an e-commerce app for handheld devices.
• Honored with AEO certificate by Customs Administration
• Evergreen Line and CKYH entered into Individual Cooperation Agreements.
• Launching of West Coast of Central America (WCA) service with X-Press.
• Evergreen Seafarer Training Center passes Class NK Certification.
• Launching of South China Philippines East Malaysia (CPM) service.
• Launching of China Pacific South West (CPS2) service.
• Launching of China Australia Taiwan (CAT) service.
• Launching of New Ho Chi Minh (NHS) service.
• Evergreen Line signs agreements with Costamare and Shoei Kisen Kaisha for lease of five 14,000 TEU container ships each.
• Evergreen teams up with COSCO, K Line, Yang Ming and Hanjin to establish the CKYHE Alliance.
• Ever Living, Evergreen's first L type containership built by CSBC is selected chosen "Ship of the Year" by the Taiwan Society Naval Architects and Marine Engineers.
• Evergreen Group signs time charter agreements with Shoei Kisen Kaisha in January to charter eleven 18,000 TEU vessels, including six units chartered by Evergreen Marine Corp. (EMC) and its subsidiary.
• Evergreen Line launches a new Taiwan Shekou Malacca Strait service (TSS) in March and introduces a dedicated Taiwan – Hong Kong service (THK). GHG emissions generated by land transport are reduced through a "Blue Highway" for containers in Northern, Central, and Southern Taiwan.
• Evergreen Line launches its new Vietnam-Singapore-Malaysia service (VSM) in May.

• Evergreen Group signs an agreement with CSBC Corporation in July to build ten 2,800 TEU B-type vessels.

• Evergreen Group signs an agreement with Japanese shipbuilder Imabari in September for another ten 2,800 TEU B-type vessel.

• Evergreen Group's Colon Container Terminal, S.A. (CCT) completes construction of its Berth No. 4 in December. The facility can accommodate large containerships of up to 14,000 TEU.
• Evergreen Line signs a Memorandum of Understanding with CMA CGM, COSCO Container Lines and OOCL to form the Ocean Alliance, which will provide a comprehensive service network covering Asia – Europe, Asia – Mediterranean, Asia – Red Sea, Asia-Middle East, Trans – Pacific, Asia – North America East Coast, and Trans – Atlantic trade routes. Subject to regulatory approval of the competent authority, the new Alliance plans to begin operations in April 2017.
• In order to train more marine professionals, Evergreen concludes a cooperation agreement with National Kaohsiung Marine University, offering marine technology classes for students who have not studied in this realm before.
• Evergreen Line named "Best Shipping Line Trans-Pacific" by Asia Cargo News at the 2016 Asian Freight, Logistics and Supply Chain Awards (AFLAS).
• Evergreen's 8000 TEU vessel passes through the expanded Panama Canal in July. In light of the business opportunities offered by the expansion of the Canal, Evergreen has upgraded the size of ships utilized for Far East – US East Coast services.
• In a move designed to significantly enhance China-Indian Subcontinent trade, Evergreen Line teams up with Wan Hai, COSCO, K Line and PIL to offer two joint services.
• In response to the reorganization of Hanjin (a CKYHE alliance member), Evergreen Line has added new functions to its on-line e-commerce system, offering customers real time cargo status updates, and providing detailed service plans within its own networks as an effective substitute to cover the services impacted by Hanjin.
• Evergreen Line works with COSCO in operating a joint Adriatic Israel service, providing direct and rapid service to customers.
• Evergreen teams up with YML, OOCL, MOL & "K" Line to offer a new joint North East Asia – Australia Express.
• Evergreen Line and Ocean Alliance partners sign a document entitled "the Day One" Productthat sets out the proposed Ocean Alliance's network, including port rotation for each service loop.

2017

• For an unprecedented third consecutive year, Evergreen Line receives the E-Commerce Excellence Award from LOG-NET, a leading information systems integrator of ocean carriers and customers, striving to create efficient information system and reliable service chain, Evergreen continues to pursue growth and success for our valued customers.
• For cultivation of maritime talents and sustainable development of local shipping industry, Evergreen teams up with National Taiwan Ocean University to provide a special seafarer training program. The 18-month program is designed to offer professional engineering classes to those who have bachelor's degree and passion for ship maintenance but lack a background in mechanical engineering departments of maritime colleagues.
• Evergreen is recognized for corporate governance excellence for the third consecutive year.
• Rolls out online price inquiry and booking platform with Alibaba.com to offer guaranteed and more convenient sea freight services by relying on the Evergreen Professional Logistics and Supply Chain Management.
• Evergreen Line is named "Best Shipping Line Asia-Africa" by Asia Cargo News at the

2017 Asian Freight, Logistics and Supply Chain Awards (AFLAS).

• Ocean Alliance officially commences operations, with service networks covering Asia Europe/Mediterranean, Trans – Pacific, Asia – North America East Coast, Trans – Atlantic trades and Far East – Middle East trades.
• Evergreen Shipping Agency (Deutschland) Gmbh renamed to Evergreen Shipping Agency (Europe) Gmbh, and merger of Evergreen shipping agencies in the Netherlands, Belgium, France, Poland, Switzerland and Austria as branch offices.
• Evergreen and its subsidiary, Peony Investment S.A. acquired 80% shares of Evergreen Marine (Hong Kong) Ltd.

2018

• Evergreen Line signed agreement with Samsung Heavy Industries and Shoei Kisen Kaisha, Ltd. to order eight and charter twelve 11,000 TEU containerships, total twenty ships.
• Introducing paperless Bill of Lading and dispatch documentation via ShipmentLink digital portal, Evergreen partner with Bolero International to provide advanced e-commerce solution.
• Establish its own shipping agency in Cambodia.
• Evergreen Line received the E-Commerce Excellence Award from LOG-NET for the fourth time. Striving to create efficient information system and reliable service chain, Evergreen continues to work for the growth and success of our valued customers.

2. Organization

3. Directors and Supervisors

Date: 2018/4/23

Title	Name	Elected Date
Chairman	Mr. Chang, Cheng-Yung (Representative of Evergreen Steel Corp.)	2017.06.22
Director	Mr. Chang, Kuo-Hua (Representative of Chang Yung-Fa Charity Foundation)	2017.06.22
Director	Mr. Chang, Kuo-Ming (Representative of Chang Yung-Fa Charity Foundation)	2017.06.22
Director	Ms. Ko, Lee-Ching (Representative of Evergreen International S.A.)	2017.06.22
Director	Mr. Lee, Mong-Jye (Representative of Evergreen International S.A.)	2017.06.22
Director	Mr. Hsieh, Huey-Chuan (Representative of Evergreen Steel Corp.)	2017.06.22
Independent Director	Mr. Yu, Fang-Lai	2017.06.22
Independent Director	Mr. Chang, Chia-Chee	2017.06.22
Independent Director	Mr. Li, Chang-Chou	2017.06.22

4. Corporate Governance

(1) Composition and Operations of the Board of Directors

• A. The Board of Directors consists of nine directors (three independent directors are included) who were re-elected by the Shareholder' Meeting on June 22, 2017. A total of two board meetings were convened between Jan 1 and June 22, 2017, while five meetings were held between June 22 and December 31, 2017.
• B. The Company has established the Audit Committee in lieu of Supervisors from June 22, 2017. The Audit Committee comprises all independent directors and takes over the duties of Supervisors specified under the relevant laws and regulations.
• C. The directors' attendance status is as follows:

(a) Current Directors

Board Meetings were convened five (5) times between June 22, 2017 and Dec. 31, 2017.

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)	Remarks
Chairman	Mr. Chang, Cheng-Yung (Representative of Evergreen Steel Corp.)	5	0	100%	Re-elected
Director	Mr. Chang, Kuo-Hua (Representative of Chang Yung-Fa Charity Foundation)	2	3	40%	on June 22, 2017
Director	Mr. Chang, Kuo-Ming (Representative of Chang Yung-Fa Charity Foundation)	4	0	80%	Newly elected on June 22, 2017
Director	Ms. Ko, Lee-Ching (Representative of Evergreen International S.A.)	5	0	100%	Newly elected on June 22, 2017
Director	Mr. Lee, Mong-Jye (Representative of Evergreen International S.A.)	4	1	80%	Re-elected on June 22,
Director	Mr. Hsieh, Huey-Chuan (Representative of Evergreen Steel Corp.)	5	0	100%	2017
Independent Director	Mr. Yu, Fang-Lai	5	0	100%	Newly elected on June 22, 2017
Independent Director	Mr. Chang, Chia-Chee	5	0	100%	Re-elected on June 22, 2017
Independent Director	Mr. Li, Chang-Chou	5	0	100%	Newly elected on June 22, 2017

(b)Former Directors and Supervisors

The Board Meeting were convened two (2) times between Jan. 1, 2017 and June 21, 2017.

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)	Remarks
Chairman	Mr. Chang, Cheng-Yung (Representative of Evergreen Airline Services Corp.)	2	0	100%
Director	Mr. Chang, Kuo-Hua (Representative of Evergreen International S.A.)	2	0	100%	None
Director	Mr. Hu, Daw-Ming (Representative of Evergreen International S.A.)	2	0	100%	Discharged on June 22, 2017
Director	Mr. Lee, Mong-Jye (Representative of Chang Yung-Fa Charity Foundation)	2	0	100%
Director	Mr. Hsieh, Huey-Chuan (Representative of Evergreen Airline Services Corp.)	2	0	100%	None
Independent Director	Mr. Chang, Chia-Chee	2	0	100%
Independent Director	Mr. Wu, Chin-Shun	2	0	100%
Independent Director	Mr. Chen, Ching-Kuhn	2	0	100%
Supervisor	Ms. Ko, Lee-Ching (Representative of Evergreen Steel Corp.)	2	0	100%	Discharged on June 22, 2017
Supervisor	Ms. Ku Lai, Mei-Hsueh (Representative of Evergreen Steel Corp.)	2	0	100%

(2) Composition and Operations of the Audit Committee and Supervisors

• A. Audit Committee
• (a) The Audit Committee consists of all independent directors of the Company. Four regular meetings were convened between June 22, 2017 and Dec. 31, 2017.
• (b)The members' attendance status is as follows:

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)
Convener	Mr. Li, Chang-Chou	4	0	100%
Member	Mr. Yu, Fang-Lai	4	0	100%
Member	Mr. Chang, Chia-Chee	4	0	100%

B. Supervisor

• (a) According to Article 218-2 of the Company Law, supervisors of the Company may attend the board of directors' meeting to express their opinion.
• (b)The Supervisors' attendance status between Jan. 1, 2017 and June 21, 2017 is as follows:

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)	Remark
Supervisor	Ms. Ko, Lee-Ching (Representative of Evergreen Steel Corp.)	2	0	100%	Discharged
Supervisor	Ms. Ku Lai, Mei-Hsueh (Representative of Evergreen Steel Corp.)	2	0	100%	on June 22, 2017

(c) The Supervisors shall gain a clear understanding of the financial and business status of the Company by communicating with internal auditors and independent accountants. Internal auditors submit audit reports to the supervisors periodically, and the Company's independent accountants present a financial report and audit status to the supervisors periodically.

(3) Composition and Operations of the Remuneration Committee

• A. The Company's Remuneration Committee consists of all independent directors.
• B. The duties of the Remuneration Committee are as follows:
• (a) Establishment and periodical review of the performance evaluation and remuneration policy, system, standards, and structure for directors, supervisors and managers.
• (b)Periodical evaluation and establishment of remuneration of directors, supervisors, and managers.
• C. The current members of Remuneration Committee were designated by the Board after the election of new Directors on June 22, 2017. The term of office of the current members lasts from June 22, 2017 to June 21, 2020.

The members' attendance status is as follows:

(a) Current Members

The Remuneration Committee met three (3) times between June 22, 2017 and Dec. 31, 2017.

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)
Convener	Mr. Yu, Fang-Lai	3	0	100%
Member	Mr. Chang, Chia-Chee	3	0	100%
Member	Mr. Li, Chang-Chou	3	0	100%

(b) Former Members

The Remuneration Committee met one (1) times between Jan. 1, 2017 and June 21, 2017.

Title	Name	Attendance in person	Attendance by proxy	Attendance rate in person (%)
Convener	Mr. Wu, Chin-Shun	1	0	100%
Member	Mr. Chang, Chia-Chee	1	0	100%
Member	Mr. Chen, Ching-Kuhn	1	0	100%

(4) Information disclosure is required if the company has established principles related to corporate governance: Details can be found on http:// www.evergreen-marine.com/tbi1/jsp/TBI1_Governance.jsp, http://mops.twse.com.tw/ and http://stock.evergreen.com.tw/.

(5) Internal Control System Execution Status

Evergreen Marine Corp. (Taiwan) LTD. Internal Control Statement

Date: Mar. 26, 2018

The Company states the following with regard to its internal control system during the period from Jan. 1, 2017 to Dec. 31, 2017, based on the findings of self-evaluation:

• 1. The Company is fully aware that establishing, operating, and maintaining an internal control system are the responsibility of its Board of Directors and management. The Company has established such a system aimed at providing reasonable assurance of the achievement of objectives in the effectiveness and efficiency of operations (including profits, performance, and safeguard of asset security), reliability, timeliness, transparency of reporting, and compliance with applicable laws and regulations.
• 1. An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing the three goals mentioned above. Furthermore, the effectiveness of an internal control system may change along with changes in the environment or external circumstances. The internal control system of the Company contains self-monitoring mechanisms, however, and the Company takes corrective actions as soon as a deficiency is identified.
• 1. The Company judges the design and operating effectiveness of its internal control system based on the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by Public Companies promulgated by the Securities and Futures Commission, Ministry of Finance (hereinbelow, the "Regulations"). The internal control system judgment criteria adopted by the Regulations divide internal control into five elements based on the process of management control: 1. Control environment 2. Risk assessment 3. Control activities 4. Information and communications 5. Monitoring. Each element further contains several items. Please refer to the Regulations for details.
• 1. The Company has evaluated the design and operating effectiveness of its internal control system according to the aforesaid criteria.
• 1. Based on the findings of the evaluation mentioned in the preceding paragraph, the Company believes that during the stated time period its internal control system (including its supervision of subsidiaries), encompassing internal controls for knowledge of the degree of achievement of operational effectiveness and efficiency objectives, reliability, timeliness, transparency of reporting, and compliance with applicable laws and regulations, was effectively designed and operating, and reasonably assured the achievement of the above-stated objectives.
• 1. This Statement will become a major part of the content of the Company's Annual Report and Prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Law.
• 1. This statement has been passed by the Board of Directors Meeting of the Company held on Mar. 23, 2018, where zero of the 8 attending directors (include commissioned to attend) expressed dissenting opinions, and all affirmed the contents of this Statement.

Evergreen Marine Corp.(Taiwan) LTD.

Chairman:

President:

(6) Risk management systems in relation to the financial reporting process

A.The effect of fluctuations in interest rates, exchange rates, and inflation on the company's profit and loss and future response measures:

As freight income is mainly in USD, we pay attention to exchange rate fluctuations at all times and adopt the following measures in response:

• (a) Use of professional financial information systems, constant monitoring of international exchange rate fluctuations, maintenance of close contact with financial institutions to get the most up-to-date exchange rate information and gain a firm grasp of exchange rate fluctuations, which in turn allows the adoption of active response measures to cope with potential impacts of exchange rate fluctuations.
• (b) Use of the same currency for revenues and expenses if possible in order to achieve natural hedging and prevent exchange rate risk. Shipping revenues in foreign currencies are used to settle payments in foreign currencies in different countries. Natural hedging is utilized to minimize exchange risks.
• (c) Opening of foreign currency accounts to buy or sell foreign currencies in accordance with actual capital demands and exchange rate developments.

B.Guidelines for engaging in high risk, high leverage investments, lending to third parties, providing guarantees and endorsements, and engaging in derivative transactions:

Currently there are no outstanding amounts for provision of loan to third parties. All endorsements and guarantees are provided to subsidiaries and affiliates. All related transactions are arranged according to our guidelines on providing loans, endorsements and guarantees to third parties.

All derivatives trades are conducted for the purpose of hedging. Interest rate and fuel swap agreements are done to hedge risk arising from market volatility and price fluctuation. Relevant operations are carried out pursuant to the Procedures Governing Derivative Trading.

I. Business Highlights

1. Business Scope

(1) The company's main business areas

The core business of Evergreen is container shipping. Our fleet capacity ranked sixth in the world at the end of 2017. All of our service routes are operated on a regular liner basis. We also offer inland transport, stevedoring, and logistics support services. Our customers are drawn from the manufacturing, trading, and retail industries and come from all over the world thus the company's business performance is closely connected to the global economy.

(2) Present service items

The company's short-and long-haul service routes form a global network, including:

• a. Transpacific trade
• b. Far East-Europe/Mediterranean trade
• c. Transatlantic trade
• d. Far East-Latin America/Africa trade
• e. Intra-Asian trade

In addition to the above service routes, we also provide a regional feeder service network, such as within the Caribbean and the Indian subcontinent and other regions, to shorten delivery times.

(3) Planned service development

The maritime business environment has dramatically improved compared to last year. Major Carriers further strengthened different Shipping Alliances. Evergreen, as a founding member of Ocean Alliance since April 2017, embraces a strategy of simultaneous focus on stability and flexibility, in its constant optimization of the fleet network and service routes to cope with the latest market trends. Adjustments to our service routes in 2017 are summarized below:

Transpacific routes

In April 2017, a new Ocean Alliance composed of Evergreen, COSCO, CMA CGM and OOCL, was formed to expand port coverage and service scope through a brand new Ocean Alliance's network that encompasses 20 services in Transpacific with 13 Asia - North American West Coast services ( PRX / CEN / PE1 / AAC / CPS / PVCS / HTW / TPS / PCC1 / NP1 / PE2 / TPN / PNW1), and 7 Asia – North American East Coast ( PE2 / AUE / PE1 / NUE / SAX / PEX3 / GME ) service routes.

Far East-Europe/Mediterranean strings

1. As of April 2017, the Ocean Alliance, composed of Evergreen, COSCO, CMA CGM and OOCL, provides 6 services for the Far East - Northern Europe route scope, including a total 33 direct calling ports such as Gdansk and Southampton. Weekly Capacity increased by 295 TEU, (equivalent to 2%), compared to Q1 prior to formation of Ocean Alliance; In addition, the alliance provides 5 services for the Far East - Mediterranean route scope, including 35 direct calling ports such as Venice and Haifa. Weekly Capacity increased by 1,100TEU, equivalent to 12%, compared to Q1 prior to formation of the Ocean Alliance.

2. 1. Intra-Europe Feeder Services: In November 2017, Evergreen teamed up with YML and COSCO to create a new joint operation. This weekly service encompasses five ships of 4,250 TEU capacities, one each provided by Evergreen and YML and the remaining three by COSCO. The launch of this new service will enable Evergreen to provide a direct connection from North Europe to the Mediterranean, particularly to Morocco, Turkey, Israel and Egypt and dramatically shorten delivery times which is a benefit especially for reefer containers.
3. 1. Mediterranean Regional Services:
4. (1)In 2017, Evergreen aimed to consolidate the Group Intra-Med feeder Network to provide customers with the best combination of transport needs. All main regional services continued throughout 2017 with minor rotation adjustments. Izmir and Gemlik, Turkey, services routes were shifted from GTS to ADL and BSM to GTS, respectively.
5. (2)Major changes occurred in the North Africa sector, where NAF, PAL and LYS2 services have been merged into one single service "NAFR" in response to lowered import demand from Asia. Besides, Mediterranean regional services to Tunis, Tunisia, have been temporarily suspended because the actual length of stay in port exceeds 30 days per voyage. Evergreen Line operations in Tunisia are now focusing on the port of Bizerte in Tunisia.
6. (3)Intensified co-operation with EMES to extend the service range to Casablanca, Morocco via Piraeus, was initiated in June 2017 and terminated in December. This paved the way for the new EMX service (Europe-Med Express), launched by EMU in cooperation with COSCO and through rational transshipment to strengthen service competitiveness in this area.

Far East-Latin America/Africa routes

• 1. Far East-East Africa services (AEF/ASEA): Maintenance of 2-string services through joint agreement with COSCO and X-press on AEF service, and provision of ASEA service through allocation swap with CMA CGM and Emirates, continuous enhancement of daily operations and provision of quality services to valuable customers.
• 1. Far East-South Africa services (FAX/ASA): Maintenance of the well-regarded ASA / FAX 2-loop service with Cosco / K-Line / PIL / MOL team to offer the most competitive and stable individual services to Durban and Cape Town.
• 1. Far East-Panama/Caribbean: The Company utilizes a part of the capacity of the Far East-North American East Coast services to expand deployment in Panama/

Caribbean Sea. As of April 2017, we provide enough capacity for clients due to Ocean Alliance service expansion. There are currently two services (AUE and NUE) in the Far East-Panama/Caribbean trade.

• 1. Far East-Mexico/South American West Coast (WSA/WSA2): There are 11 vessels in WSA joint service and 10 vessels in WSA2 joint service. The Company deploys 6 vessels in WSA and 1 vessel in WSA2.
• 1. Far East-South American East Coast (ESA/ESA2): There are 12 vessels in ESA joint service (4 of them deployed by Evergreen). Evergreen swaps slots with NYK in ESA2.

Far East-Middle East/Red Sea/India Subcontinent/Australia routes

• 1. Far East-Middle East Service: After the Ocean Alliance commenced operations in April 2017, the service network for Far East to Middle East has been upgraded. There are six sailings a week and the port coverage could be the one of the best in the market.
• 1. Far East-Red Sea Service: From April 2017, the Ocean Alliance enlarged vessel capacity to eight 9,600 TEU and eight 6,500 TEU container ships with 2-string weekly services to expand port coverage from Far East to Red Sea loop and cater to the local demand with "service quality" and "schedule reliability".
• 1. Far East-Indian Subcontinent Service: In 2017, one 2,800 TEU containership and one 4,200 TEU containership are separately deployed in two West-North India joint direct services. Apart from that, there is one 4,200 TEU containership deployed in Pakistan joint direct service. In December 2017, the capacity was increased by a further 200 TEU in South-East India direct service to expand the service scope and market share of the India-Pakistani market.
• 1. Far East- Australia Service: Evergreen put one more vessel into the NEAX service at the end of May 2017. There are a total three vessels in the Far East to Australia string to meet customers demand and strengthen service competitiveness.

Intra-Asia Routes

• 1. In order to strengthen the network from China to Indonesia, the CIT service route (China – Indonesia – Thailand route) was launched in March 2017 to provide express services and to meet customer demands.
• 1. To provide better shipping services from China to Vietnam, Singapore and Malaysia, the CVM service was launched in March 2017 to provide express services. The overall transit time was shortened to meet customer needs.
• 1. The NSB service (Northeast Asia-Southeast Asia Route) was extended to Shanghai in March 2017 and to Port Klang North Port in July 2017. This route provides direct services between Shanghai and Singapore and strengthens the direct service of Klang Port. Meanwhile, it enhances the coverage of the NSB route schedules.
• 1. In order to optimize direct services from South Korea and Central China to the Philippines, KTP service (South Korea - Taiwan - Philippines) Subic Bay was added in April 2017 and Central China – Philippines was added in October. These services provide customers more convenient services from South Korea and China to the Philippines.
• 1. Since September 2017, JTP service (Japan-South China-Vietnam) was reshuffled to add Haiphong as a port of call and provide Japan-Haiphong bidirectional service. This move has effectively improved the space utilization, drastically shortened the transit time and greatly improved the quality of shipping services.
• 1. TPH service (Taiwan-Philippines) has been enhanced to provide customers with a more extensive service by adding Cagayan in November 2017. This service increases Evergreen's market share in the Philippines.
• 1. In line with terminal draught limitations and environmental energy saving requirements, a wider ship design has been adopted to enhance cargo loading capacity, schedule punctuality, and market competitiveness. A total of twenty 2,800 TEU Type-B container vessels were ordered by Evergreen Group. Three of these vessels have been deployed into the NSD service (Northeast Asia-Southeast Asia) in the fourth quarter of Year 2017 and the remaining new vessels are expected to be fully operational in the Intra Asia region by Year 2019.

2. Container Shipping Industry Profile

(1) Macroeconomic Environment

According to Alphaliner statistics, the global container shipping demand grew by 6.5% in 2017, which represents a significant recovery from only 2.5% in 2016. The global fleet capacity growth rate rose from 1.8% in 2016 to 3.7% in 2017. As a result of sufficient cargo volume from the first quarter to the third quarter rarely seen in recent years (despite the softening in the fourth quarter), 2017 as a whole brought positive results for the ocean carriers.

Industry integration is the main theme of 2017. In Asia, the forth- ranked COSCO group's acquisition of the seventh-ranked OOCL is undoubtedly the largest merger and acquisition case of the shipping market in 2017. The purpose of the acquisition is to optimize the network of routes and the distribution of capacity, reduce the related cost of suppliers, integrate the container fleet and enhance the management capability. In addition, Japan's big three shipping companies also merged their container transport business (including overseas terminals business) to set up ONE Express. The official kick-off date is slated for April 1, 2018. In Europe, the Danish Maersk acquisition of German Hamburg-sud has been completed. Hapag-Lloyd also announced the completion of formal integration with UAE (UASC) of the Arab Emirates. It is expected that industry consolidation will continue over the next few years.

A series of consolidations of container shipping market significantly changed the market structure. Container shipping industry concentration has been greatly elevated. Three major alliances (2M, Ocean Alliance, and THE Alliance) now control most of the market capacity and the main market in east-west strings.

Looking ahead to 2018, Alphaliner reports point to a cargo volume growth rate of about 5%. After MSC and CMA CGM placed the order for the world's largest container ship, the market will face another record breaking year of Ultra Container Vessel delivery. Yet market fundamentals are encouraging, and port and trade statistics are expected to show a continued recovery in 2018.

(2) Relationships with Up-, Mid- and Downstream Companies

Marine shipping is the main transportation tool used in international trade. The ratio of transportation volume via container ships and total cargo tonnage has been raised year on year, covering most consumer product items. Not only is its industry chain interconnectivity extremely high but it is also closely related to consumer livelihood. This is summarized below:

a.Upstream industry

• Shipyards
• Transportation equipment manufacturers
• Ship or transport equipment rental providers

b.Mid-stream industries

• Marine fuel suppliers
• Ship and transportation equipment repairers
• Terminal operators
• Land transportation logistics providers
• Shipping alliance or slot purchasing partners

c.Downstream industries

• Direct shippers (manufacturers, retailers, service providers)
• Freight forwarding and logistics industry

(3) Product Development Trends

a.Industry concentration at an all-time high

Marine industry consolidation has accelerated in 2017. The combined capacity of the Top ten carriers accounted for a record high 77% at the end of 2017. This figure is expected to increase further to 82%, with the impending absorption of OOCL by COSCO and the merger of K Line, MOL and NYK to form "Ocean Network Express" (ONE).

b.Mainstream of ULCVs

Containership deliveries reached a total of 1.19 Million TEU in 2017, 26% more than in the previous year. Ultra-large containerships of 14,000 TEU and beyond accounted for about 56% of this new capacity.

c.Green Shipping Trends

In recent years, due to the worsening issues of global warming and climate change, reduction of carbon emissions to protect the environment has turned into an issue of universal concern. Thus, green shipping concepts have become a prime focus for the industry. Relevant regulations are being enacted around the world. For example, China has designated three emission controls areas, the IMO has advanced the use of low sulphur fuels by 2020, and the main international ports are incentivizing the use of light diesel oil during docking and the active use of shore power to reduce environmental pollution. In response to these regulatory trends, new ships are adopting energy-efficient, low-pollution designs. Green shipping is the trend of the future.

(4) Status of Market Competition

a.Top three Carriers retain market positions

Maersk, MSC and CMA CGM retained their respective positions as the top three carriers in the global container shipping industry. But COSCO and Hapag-Lloyd have closed the gap through consolidation in the last two years. COSCO is expected to leap into the number three spot once it completes the acquisition of OOCL next year.

b.New alliances dominate main East-West routes

The reshuffle of the former 2M/G6/CKYHE/O3 alliances led to the formation of new Alliances on 1 April 2017. The three new Alliances, 2M+HMM, Ocean Alliance and THE Alliance, currently control 91% of the Far East - North America trade capacity and 99% of the Far East- Europe trade capacity.

3. Status of Technology and R&D

R&D expenditures and results during the reporting year

(1) Green Fleet

The Company aims to be a "Guardian of the Green Earth". Since 2003, it has been leading the industry in the design of S-type systems with double hull, builtin oil tanks, shore power systems, and many other environmental protection facilities on ships. Type L vessels put into operation since 2012 have enhanced their environmental performance with more advanced technologies to further reduce their greenhouse gas emission rates. In addition, the Type B container wheel delivered beginning in the third quarter of 2017 is equipped with a newly developed swordtype bow and can effectively reduce the wave resistance during navigation and save fuel consumption compared with the traditional spherical bow.

In addition, we maintain an "Environmental Guardians" page on our website to provide detailed information on emissions management and treatment of ballast and sludge, as well as introducing 17 state-of-the-art S-type, B-type and L-type designs and other green equipment for the easy reference of our customers.

(2) Maritime Certification

Evergreen upholds the spirit and vision of sustainable development and firm commitment to professional maritime training. The Evergreen Seafarer Training Center has comprehensive training equipment and we rigorously organize training courses to continuously improve professional knowledge and skills of our crews so as to prevent the incidence of maritime accidents and environmental pollution.

In 2017, the Evergreen Seafarer Training Center organized a total of 310 professional training courses in 29 categories for 1,743 trainees.

In November 2017, the UK Maritime and Coastguard Agency recertified the electronic chart and data display system, Proficiency in preservation responsibility and Proficiency in preservation awareness of the company. The courses provided by the Evergreen Seafarer Training Center (ESTC) met the requirements set forth in IMO STCW (Standards of Safety, Training, Certification, and Watch keeping) 2010 Amendments.

Actively recruit outstanding talent and aspiring maritime professionals, Evergreen strengthened its cooperation with National Kaohsiung Marine University, offering a graduate program in maritime transportation with a series of complete knowledge and professional skills training courses, offering the opportunity for non-maritime undergraduates to engage in maritime work.

In addition, Evergreen cooperates with National Taiwan Ocean University, offering a graduate program in turbine technology and appointing outstanding managers as lecturers in several professional courses. The goal is to cultivate professional seafarer and administrative personnel for the future through a mechanism of selection, training, deployment, and retention.

(3) E-Commerce

Evergreen continuously invests resources and exerts efforts in E-commerce services to create a safe and efficient information system and reliable service chain by adopting a perspective characterized by a global outlook and localized services to help customers seize business opportunities and strengthen market competitiveness.

E-commerce has flourished in recent years due to increased international transport demand derived from many small and medium-sized enterprises as a result of the expansion of business opportunities through e-commerce platforms. In view of the need for user-friendly logistics services of smaller volume shippers, Evergreen Line is collaborating with Alibaba.com to allow shippers to search for freight rates and reserve cargo space on the Alibaba.com platform directly. This revolutionary booking service will be available primarily to suppliers in China. Once a booking is confirmed, selected price and capacity are also locked-in. In coordination with the supply chain management services of Evergreen logistics, we provide customers with more convenient services.

Future R&D Plans

(1) We plan to invest NT\$20 million into future R&D projects listed below:

Projects	Summary	Schedules	Description of Progress up to 2018/4/23
Microsoft EA (Enterprise Agreement) contract renew al Project	Microsoft EA periodic authorization renewal	2018/08/31	Under process of internal approval.
Kaohsiung sea port terminal computer wire less equipment replacement	Replacement of terminal wireless equipment for daily real-time operation and electronic data trans mission.	2018/10/31	Under process of internal approval.
Email Audi tor newly pur chased server and software license renewal	Purchase of new server to maintain stable operation of the service and renewal of the e-mail audit soft ware contract.	2018/06/30	Under process of project planning.
ShipmentOnline disk storage replacement and purchase of data analysis software project	Replacement of SOL sys tem disk storage and en hancement of the efficiency of Shipment data analysis.	2018/07/31	Under process of internal approval.
Mail archiving solution project	Archived mails are stored in the database and clas sified in effective way al lowing real-time queries without magnetic tape processing.	2018/06/30	Under process of internal approval.

Projects	Summary	Schedules	Description of Progress up to 2018/4/23
New solution for Anti APT (Advanced Per sistent Threat)	The goal is to quickly check the security status of the internal computer and cor respondence, block mali cious programs, and re duce the risk of enterprise security risk.	2018/10/31	Under process of project planning.
Bolero electron ic bill of lading project – phase II Enhance ments	Developing i-B/L, i-Dis patch and EB_HUB (data exchange platform) func tions to provide A/C with electronic bill of loading property transfer and elec tronic file exchange within the website and certifica tion via Bolero platform.	2018/06/30	Under process of internal approval.
Adoption of CargoSmart "ship port sur veillance and vessel ocean route analysis information system"	The goal is to enhance ves sel ocean route real time surveillance both for carrier owned service, joint ven ture service, and intelligent analysis of carrier's service routes.	2018/04/30	Under process of internal approval.
Fleet equip ment warranty management system	In order to improve the equip ment warranty management of the fleet, we will systemati cally implement the warranty service management on manufactures and service providers. Warranty manage ment system starts from case filing, progress monitoring, maintenance arrangement and cost control, and statisti cal analysis etc. to enhance fleet availability.	2018/09/30	Under process of project planning.

• (2) Factors leading to success in future R&D projects
• A. Knowledge of trends;
• B. Sound planning;
• C. Coordinated execution.

4. Short & Long Term Business Plans

Short-Term: Enhanced competitiveness and maintenance of growth momentum

• (1) Full grasp of market dynamics: provision differentiated services, strengthening of communication with customers, and improvement of service quality to gain more support.
• (2) Improvement of ship loading factors: Enhancement of schedule accuracy, loading efficiency, and fleet flexibility, etc. to achieve economies of scale.
• (3) Expansion of joint venture partnerships: Identification of the best routes and widening of service network coverage to provide customers with premium product mixes and optimized service quality.
• (4) Enforcement of line performance management: Appointment of line managers to conduct regular line inspections and reviews. Line managers are expected to improve ship loading factors, adjust cargo composition in order to maximize revenue on trade lanes, and immediately propose improvements for underperforming trade lanes.

Long-Term: Reduction of operating costs and pursuit of sustainable profitability

• (1) Training courses: We believe that employees are the most valuable asset of the company. We provide employees with solid, professional training courses and enforce a rotation system to cultivate professional competencies and international viewpoints of our employees.
• (2) Encouragement of employees to think outside the box: business development must continue to inject new ideas, maximize benefits, and reduce costs as the goal, coupled with continuous improvement of operational efficiency.
• (3) Reduction of operating costs: This includes improvements in unit cost reduction and KPI achievement through shared responsibility and staff participation so as to boost operational efficiency.
• (4) Constant strengthening of physical fitness and enhancement of overall energy efficiency.

II. Overview of the Industry

1. Market and Industry Analysis

(1) Key Performance Indicators of Main Service Scopes

		Unit: Thousand NTD
Year Service routes	Revenue of the Group for 2016	Revenue of the Group for 2017
America	47,309,728	52,789,741
Europe	22,004,525	37,900,327
Asia	25,305,203	29,778,828
Others	15,403,167	14,889,414

(2) Major Domestic Competitors & their Global Market (Fleet Capacity) Shares

Year/Item	March 2017		Mach, 2018
Taiwan based Shipping lines	Capacity (TEU)	Market Share (%)	Capacity (TEU)	Market Share (%)
Evergreen (Group)	1,004,441	4.8	1,069,707	4.9
Yang Ming Lines	570,003	2.8	589,765	2.7
Wan Hai Lines	225,201	1.1	245,054	1.1
TS Lines	62,728	0.3	76,042	0.3

Data Source: Alphaliner

(3) Market Outlook for Supply-Demand and Growth

Far East to North America Trade

Goldman Sachs forecasted an increase of the US economic growth rate in 2018 from 2.3% to 2.6%. The unemployment rate approached a 50-year-low of 3.7% starting in November 2017. The continuing recovery of the job market is expected to stimulate private consumption and raise the investment of enterprises. Many new policies will continue to boost the overall U.S. economy. Salaries will grow by 3% to 3.25%, exceeding the current rate of 2.5%. In view of the above, it is expected that the overall export volume from the Far East to the United States in 2018 will grow steadily.

North America to Far East Trade

The Global Economy is expected to maintain its growth momentum in 2018. However, it is not likely that global trade will achieve significant growth as in 2017 since economic status is at a higher level compared to the previous year coupled with stable international raw material prices. Furthermore, Vietnam and China government have raised the barrier on DDGS by imposing new rules on pesticide and increased the import tax which will limit the volume of US exports. Besides, the new policy to control the quality of waste materials adopted by the Chinese government will further limit US export volume since waste materials are the major export commodities from US (small-scale businesses fail to meet relevant criteria in the field of equipment and product quality). Since the US export trend for 2018 is conservative and the market capacity supply continues to grow, the US export market will still pose a serious challenge caused by cut-throat price competition in 2018.

Far East to Europe/Mediterranean Trade

Against the backdrop of a major reshuffling to form 3 major alliances and European/ Mediterranean economic recovery, the overall capacity supply increased by 4.5%, while cargo volume increased by 6%. Consequently, ocean freight rates returned to reasonable and profitable levels. However, starting from September, the Chinese government adopted tougher environmental policies that caused market trends to slightly drop in Q4. In view of 2018 market outlook, overall market capacity in Europe/ Mediterranean trade is expected to increase by 6%. Major carriers including Evergreen will commission 20K TEU Ultra Large Container Ships. In view of the above, competitive pressures in the market are expected to persist in 2018.

Europe to Far East Trade

After China adjusted the regulations governing waste cargos, the main commodity (waste goods) exported from Europe is predicted to decline by 30% and allocated to alternative routes. Export cargo quantities from Europe are predicted to slightly increase by 3.8%. Ocean Alliance will adjust certain routes and calling ports in May 2018 in order to offer stable and exceptional service for our customers.

Europe to North America Trade

According to Datamyne, Alphaliner and Drewry reports, fleet capacity of Transatlantic Westbound market increased by 11.3% in 2017 while total demand increased by 3.6% only. The average revenue suffered from downward adjustments. Starting in the 2nd year of Ocean Alliance, Evergreen service will be more competitive with faster T/S time and expanded port coverage on the U.S. East Coast side with the aim to provide efficient and reliable services.

Far East – Mexico/South America West Coast Market

The capacity of WSA/WSA2 was enlarged in 2017. Starting from the second

quarter of 2017, ocean freight and cargo volume increased. The services of carriers will be reshuffled in the second quarter of 2018 due to consolidation trends. As long as the market supply remains balanced, our revenue is expected to grow.

Far East – Panama/Caribbean Market

As for the Caribbean Market in 2017, the economy of major countries is stably growing along with increasing cargo sources and improved revenue, except for Venezuela which still reeled from political and economic chaos. IMF forecasts that Panama and other major Caribbean countries will maintain a positive growth rate of 5% and increasing cargo volume and revenue.

Far East to East Coast South America

In 2017, the annual loading factor and the rate level reached a new high benefitted from the balance of supply and demand. The revenue also increased substantially due to appropriate addition of extra loader. The economic growth in Brazil, Argentina, Uruguay, and Paraguay in 2018 is expected to rise by roughly 3% according to forecasts by IMF. The bullish market of 2017 on the east coast of South America is expected to continue in 2018.

Far East to Africa Trade

The South African economy gradually picked up steam, currency value was stable, and purchasing power was restored in 2017 compared to 2016. IMF forecasts that South Africa's GDP in 2018 will be 1.1% higher than in the previous year and the market is expected to continue its development. Export volume to East Africa fell short of the target mainly due to conservative customer attitudes as a consequence of instable political and economy situation in the wake of the presidential election in Kenya in Q4 2017. IMF has predicted a growth rate exceeding 5% in Kenya and Tanzania, and 1.1% growth in South Africa in 2018. As a result stable growth of the overall economy and cargo volume is expected in 2018.

Far East to Middle East/Red Sea/India Pakistan Trade

Since the Ocean Alliance commenced operations in April 2017, the service network has been upgraded to six sailings to the Middle East and two sailings to the Red Sea per week. The port coverage could be one of the best in the market. A review of the market conditions of 2017 reveals a hike of the ocean freight rate level due to a peak in cargo movements rushed out from China before Holy Ramadan. After that time, the average rate had come down from July levels due to oversupply in capacity. In the India/ Pakistan market, the market volume and GDP exhibited strong growth, and the freight rate level hit a five-year high because demand exceeded supply.

In 2018, the service network of the Middle East and Red Sea trade will be maintained in the context of the Ocean Alliance's cooperation structure. Middle Eastern trade remained at a constant level and the coverage rate and capacity of the Far East to Red Sea loop will be upgraded with additional calls from North/South China/Korea and Sokhna, Egypt.

The Middle East and Red Sea market situation could be better than last year due to gradually rising oil prices the optimistic financial prospects in 2018. However, market supply and demand are still focal points in the future. South Asian countries are optimistic about their GDP growth rates and the volume of goods will increase in the near future. We will develop new Services to further expand the market share in India.

Far East to Australia trade

Due to improvements of the raw material market, the demand for imports from Australia increased and the supply of vessel capacity was tight. The freight rate of the Australian line approached a three-year high in the fourth quarter of 2017.

According to forecasts of the Australian Bureau of Statistics, the population of Australia will reach 24.9 million at the end of 2018. This represents an increase of 33% compared to the level of 18.77 million in 2001. Population growth boosted the real estate market and expanded the demand for products for domestic consumption. Evergreen is going to up-size the vessel capacity to meet the market demand. It will help Evergreen to further expand its market share.

Intra-Asia Trade

According to a recent IMF report, 2018 global economic activity strengthened with an economic growth rate of 3.7%, which represents the same level as in 2017. Asia continues to lead the global economy with its strong economic growth, with an estimated increase of 5.5% in 2018. Among Asian countries, China's GDP growth is the strongest with an expected increase of 6.5%, turning China into the fastest-growing region.

As for ASEAN, including Indonesia, Malaysia, the Philippines, Thailand and Vietnam, the overall GDP growth was 5.2%. It is expected that there will be room for growth in the bilateral trade volume between China and ASEAN, and the trade and logistics interactions between ASEAN countries will intensify. The outlook for Intra Asia trade in 2018 is therefore still optimistic.

Reefer business

Population and income growth have led to an increase in consumer demand. Besides, traditional reefer vessels have gradually declined over the years. Reefer container volume growth is estimated at about 4.5% in the coming three years.

In Asia, demand for frozen and refrigerated cargo has increased. The main sources of imports are fruits and vegetables, frozen meat, seafood and alcohol in North America, Europe, and South America, meat from South America, and meat, seafood, and fruits from India.

To cope with market demand, we will place an order for construction of 3,000 reefer units, while at the same time expanding reefer traffic in Intra-Asia, India, North and South American areas, as well as enhance Cold Treatment and CA(Controlled Atmosphere) service to diversify cargo source and grow our reefer business.

Special equipment

Capitalizing on the global service network of Ocean Alliance, Evergreen's special container business kept growing in 2017 and traffic originating from the areas of China, Taiwan and Japan accounted for 73%.

Through an increase in infrastructure investments in particular, we are targeting the market in China and Asia. To cope with tonnage growth and market demand, Evergreen Line plans to placean order for new special equipment to enlarge the special cargo business, expand the market, and grasp business opportunities.

(4) A competitive niche

Innovative Thinking

The international shipping market is changing rapidly. It requires creative thinking to make corresponding adjustments to overcome the challenges of sustainability, such as assignment of line managers and adoption of a KPI system to monitor performance and make necessary adjustments to make the best use of corporate assets and create maximum revenue income.

Recognized Quality

Evergreen strives to upgrade its service quality. In addition to gaining customers' trust and recognition, it also continues to receive international recognition and certifications from international media agencies and organizations:

(1) Evergreen named Best Asia-Africa Shipping Line

Evergreen Line was named Best Shipping Line - Asia-Africa by the Asia Cargo News at the 2017 Asian Freight, Logistics and Supply Chain Awards, Logistics and Supply Chain Awards (AFLAS).

Criteria for "Supply Chain Asia Logistics Awards" selection include shipment accuracy, efficiency of information systems, and the convenience of customer service system. Winners were selected by the readers of Asia Cargo News Global Reader Vote, rather than a jury composed of the industry experts. This award is therefore particularly significant as it signals a vote of confidence in the carrier's efforts to provide shippers with quality services.

(2) Evergreen honored with E-Commerce Excellence Award for three consecutive years

The company was awarded the "E-Commerce Excellence Award" by LOG NET, a professional logistics information management agency. From 2014 to 2016, Evergreen won this prestigious award three consecutive times. Founded in 1991, LOG NET is headquartered in New Jersey, USA, and is the leading brand for logistics integrated information services. The company has held annual e-commerce service evaluations since 2003 to recognize the outstanding performance of logistics and transportation companies in information systems and e-commerce solutions.

Although the market situation and operational pressures in 2016 had a significant impact on the overall e-commerce capabilities of the maritime industry, the company still maintained consistently excellent performance and insisted on the quality of its services. Evergreen Global Information System provides electronic data services including the establishment of customer information, information integrity, immediacy, accuracy, and various functions of information platforms in different regions. It also provides more than ten types of regionalized webpages in line with regional language and information needs to make it easier for customers to arrange their shipments online, and keep track of their progress and related information.

E-Commerce

E-commerce is an important link of modern transportation services. Evergreen has been relentless in its pursuit of quality service and as early as in 2001. Evergreen launched of its E-commerce web site ShipmentLink.com to provide global customers with more real-time, more convenient and more eco-friendly services.

E-commerce has flourished in recent years due to increased transport demand derived from many small and medium-sized enterprises as a result of the expansion of business opportunities through E-commerce platforms. In view of the need for userfriendly logistics services of smaller volume shippers, Evergreen Line is collaborating with Alibaba.com to allow shippers to search for freight rates and reserve cargo space on the Alibaba.com platform directly. This revolutionary booking service that be available primarily to suppliers in China. Once a booking is confirmed, selected price and capacity are also locked-in. In coordination with the supply chain management services of Evergreen logistics, we provide customers with more convenient services.

Eco-Friendliness

Pursuant to the requirements set forth in Airborne Toxic Control Measure for Auxiliary Diesel Engines operated on Ocean-Going Vessels At-Berth in a California Port approved by California Air Resource Board (CARB), the Company fleet's use of shore electricity and emission reductions are required to be at least 70% effective as of January 1, 2017.

The Company actively participates in the ship deceleration plan led by the National Oceanic and Atmospheric Administration (NOAA). The initiative was aimed at reducing greenhouse gas emissions of vessels and avoiding whale collisions by encouraging slow sailing speeds in California's Santa Barbara Channel region. Evergreen Line has received recognition for its excellent performance in a voluntary environmental and ecological protection program. In addition, the company will implement the concept of environmental protection in fleet planning, use the most advanced shipbuilding technology and equipment, and build an eco-friendly fleet. Ships participating in the Santa Barbara Water Speed Deceleration Plan include the eco-friendly S-type ship that won the Lloyd's Register "Best Ship Award of the Year" in the UK and the new-generation eco-friendly L-type ship that has been delivered and commissioned in recent years. The goal is to contribute to the sustainable development of transportation services and protection of the marine environment that international trade relies on through high-quality services.

(5) Advantages, Disadvantages and Response Strategies for Future Development

Advantages

• (1) Shipping mergers and acquisitions continued to be carried out and the industry concentration was further enhanced.
• (2) Carriers reap the benefits of cost reduction and cooperation by joining alliances.
• (3) The South Asia market is flourishing.
• (4) The cargo volume of emerging economies is growing.
• (5) The expansion of the Panama Canal in 2016 and the raising of the height of the New York-Brazil Bridge have been completed. Thus, 14,000 TEU vessels are able to pass through the Panama Canal to the East Coast. Carriers can benefit from the use of large vessels to reduce operating unit costs.
• (6) The Chinese "One Belt One Road initiative" invites investment, promotes the smooth flow of goods, and facilitates the development of shipping industry.

Disadvantages

• (1) With many countries turning their attention to the domestic economy and a rising trend of protectionism, the pace of global economic and trade development may be curbed, further exacerbating political risks and affecting the shipping industry.
• (2) 20,000 TEU ships are successively deployed into Asia-European route. Thus, the 14,000 TEU ships originally deployed in this area are redeployed to the Asia- North American East Coast and other routes where smaller ships are used, causing excess supply in East-West and North-South routes.
• (3) Soaring fuel prices increase carriers' cost.
• (4) Cyber attacks persist.

Response strategies

Facing the new normalcy of imbalanced capacity demand and supply, we adapt the following strategies:

• (1) Under the premise of providing customers with quality shipping services worldwide, any options that can enhance port coverage, reduce costs, optimize the combination of fleet investment and enhance competitiveness can be considered. The constant provision of better service routes in the global market according to customer's needs is the key.
• (2) Fleet renewal reduces operating costs and improves competitiveness. 28,000 TEU of chartering and 20,000 TEU in ships will be delivered to strengthen the company fleet network and create greater economies of scale.
• (3) Management and employees in general should make every effort to reach quantitative performance targets. KPI management will make overall operations easier to master, analyze and adjust to ensure achievement of set targets.
• (4) Establishment of a Computer Information Security Committee to regularly update policy content and review the status of policy implementation.

2. Key usage and manufacturing process of main products

(1) Function of main products

Main Product	Functions
Container Shipping	Global transportation of standard and special containerized cargo.

(2) Manufacturing Process of Main Products

As a container shipping transportation service provider, our disclosed service string and their adjustments provide the details for processing of our main products.

3. Status of Supply of Main Materials

Being a container shipping transportation service provider, we do not use raw materials as manufacturers do, however we do have to use substantial fuel quantities for transportation equipment consumption which can be deemed main materials. Except for stable supply through cooperation with reputable vendors at major ports, we also tactically adjust fueling port rotations in line with fuel price developments in addition to strategic slow steaming measures for cost reduction.

4. Main customers who account for over 10% of total sales in recent 2 years and their individual purchase amounts and share: None.

5. Company's total expenses for environmental protection in 2017

In 2017, no major environmental pollution incidents occurred in our fleets, and there were no losses or penalties incurred. Expenses were simply for routine maintenance of equipment, and additional costs for use of low pollutant fuels. Expense details are listed below:

• (1) The cost of maintenance and parts for environmental protection equipment, shore power systems and SOx Scrubber amounted to USD 5,722,373.89.
• (2) The cost for vessels using low-sulfur fuel for M/E, Generator Engine and Aux. boiler while sailing in emission control areas to comply with IMO regulations & CARB requirements of the US west coast amounted to USD 35,076,897.19.
• (3) The cost for vessels M/E, Generator and Aux. Boiler using Marine Gas oil when berthing at EU ports and using low-sulfur fuel oil while sailing in emission control areas amounted to USD 17,089,108.30.

6. Environmental protection policies and measures

The Company has formulated environmental protection policies to safeguard our marine environments. We continuously upgrade our shipboard equipment to reduce air pollution emissions and manage our own fleets with requirements exceeding international regulations. The Company is currently undertaking the following measures for environmental protection:

• (1) In compliance with the California Air Resources Board (CARB) regulation, fleet vessels sailing through the West Coast of U.S., within 24 nautical miles of the California baseline should use Marine Gas Oil for M/E, Generator Engines and Aux. Boiler.
• (2) Implementation of strict audits and corrective action for fleet and advance preparations in order to prevent deficiencies and pollution.
• (3) All seafarers are provided with accurate environmental awareness and knowledge through comprehensive environmental training programs.
• (4) Maintenance of all environmental equipment on board to ensure smooth crew operations.
• (5) Continuous monitoring of the operating condition of vessel's main engine and auxiliary machineries. Adoption of necessary actions in a prompt manner to increase fuel usage efficiency and thereby reach the goal of energy conservation and carbon emission reduction.
• (6) Maintenance of the validity of statutory certificates such as International Oil Pollution Prevention (IOPP), International Air Pollution Prevention (IAPP) and International Sewage Pollution Prevention (ISPP) for all vessels.
• (7) Continuous signing up for GARD Protection and Indemnity (GARD P&I) insurance.

• (8) Provision of the Vessel Certificate of Financial Responsibility (COFR) for all vessels sailing to United States to undertake relevant responsibilities and obligations if oil pollution occurs in US water.

• (9) Carrying out of M/E turbocharger cut-out operation in coordination with vessel's slow steaming in order to reduce fuel oil consumption and GHG emission.

• (10)Close scrutiny of the development of international regulations for environmental protection. Compliance with new regulations allows the fleet to meet the requirements for environmental protection in ports and around the world.
• (11)The maximum allowable Sulphur content of fuel oil used by ships at berth in EU port shall not exceed 0.1 % m/m after January 1, 2010.
• (12)For all ocean-going vessels entering the Emission Control Area (Baltic Sea, North Sea and the English Channel, North America) sulphur content of fuel oil used on board ships shall not exceed 0.1 % m/m after January 1, 2015.
• (13)All ocean-going vessels use cleaner fuel (the Sulphur content shall not exceed 0.5 % m/m) while at berth in Hong Kong waters with effect from July 1, 2015.
• (14)Vessels berthing at any ports within the emission control areas of Pearl River Delta, the Yangtze River Delta are required to use fuel oils whose sulphur content does not exceed 0.5% m/m after January 1, 2017.
• (15)North Atlantic Right Whale Seasonal Speed Restrictions are in effect. Restrictions imposed by the NOAA require vessels to proceed at 10 knots or less in restricted areas during specific times of the year (from Nov. to Apr.) in the Mid-Atlantic and Southeast U.S. Seasonal Management Areas (SMAs) of the U.S. East Coast. Vessels are allowed to operate at speeds greater than 10 knots, if necessary to maintain a safe maneuvering speed in areas where conditions are severely restricting ship maneuverability. Any deviation from the speed restriction should be entered in the logbook.
• (16)Commissioning of AMP system and use shore power for all E -Type, S-Type and L-Type vessels berthing at ports of USLAX, USOKL. And connection to the Cold Ironing running berthing at ports of CNXGA, CNSHG, CNNBO, CNXSM and CNYYT & CNXHK.
• (17)Evergreen Line has been recognized for its excellent performance in a voluntary environmental and ecological protection program. The initiative was aimed at reducing greenhouse gas emissions of vessels and avoiding whale collisions by encouraging slow sailing speeds in California's Santa Barbara Channel region.
• (18)In line with the EU MRV regulation, Evergreen has established a monitoring plan. All ships above 5,000 gross tonnage that have called at EU ports from January 1, 2018, should collect and report CO2 emissions information annually for verification.

7. New international environmental protection regulations

(1) Starting from January 1, 2018, the vessels above 5,000 gross tonnage berthed at all the ports in the controlled waters of the Pearl River Delta, Yangtze River Delta and Bohai Rim (Beijing-Tianjin-Hebei) waters of the Republic of China are required to use fuel with sulfur content ≤0.5 % m/m.

(2) Maritime transport emits about 1 billion tons of CO2 each year, accounting for about 2.5% of global greenhouse gas emissions. The European Parliament has moved a motion to include increasing maritime emissions into the EU's greenhouse gas emission reduction policy. After years of legislative process, the laws and regulations have taken effect. The European Union requires shipping companies to monitor and report on CO2 emissions from ships of more than 5,000 gross tonnage that depart from, arrive at, or return to and from EU ports during shipping operations. All ships that have called at EU ports since 1 January 2018 should collect and report annual data on CO2 emissions and related information for verification and shipping companies should submit the monitoring plan to the verification agency before August 31, 2017.

The 69th session of IMO Marine Environment Protection Committee (MEPC) approved the global data collection mechanism for ship fuel consumption. The MARPOL Annex VI has also been revised for the global collection mechanism. The information collected by the IMO will be reported to the flag State at the end of each year. After verifying the data, the flag State will issue a Declaration of Conformity to the ship and submit the data to the IMO Vessel Fuel Consumption Database.

(3) IMO reached a decision that the 0.50% global fuel sulphur limit will be effective from January 1, 2020. Ships operating within the Baltic, North Sea, North American, and U.S. Caribbean Emission Control Areas (ECAs) will need to constantly comply with the 0.10% sulphur limits.

8. Code of Conduct/Courtesy

As a leading container carrier, the Company consistently upholds attitudes of integrity, transparency and accountability while engaging in business activities.

The Company established "Guidelines for the Adoption of Codes of Ethical Conduct" in December 2014. The Guidelines are adopted for the purpose of encouraging directors, supervisors, and managerial officers to act in line with ethical standards, and to help interested parties better understand the ethical standards of the company. To ensure implementation of the company's philosophy and core values, all employees are required to:

• (1) Observe the company's regulations and working manual as well as to act loyally, responsibly and under supervisors' orders, directions and supervision.
• (2) Conduct themselves in an impartial, prudent and self-disciplined manner, protect the company's reputation, discard bad habits, and respect fellow staff members.
• (3) Perform their duties and responsibilities; cooperate and coordinate with interrelated

departments to achieve goals set by the company.

• (4) Commit to performing all services in a conscientious without any practices that could be construed as bribery and/or corruption.
• (5) Strictly Refrain from discriminating against any employee, contractor or customer.
• (6) Comply with any and all competition law regimes that are relevant to their countries of operation.

9. Protection Measures for Safe Work Environment and Worker Safety

The Company has set up an Occupational Safety and Health Department in accordance with the Occupational Safety and Health Act for the purpose of enhancing a complete occupational training mechanism and providing workers with a safe and healthy working environment. Continuous promotion of safety and health education is adopted to reduce the possibility of occupational accidents. The main functions of the Occupational Safety and Health Department are described below:

• (1) Employees are required to observe Safety and Health Work Rules, as the Law is effective from its date of promulgation.
• (2) Occupational Safety and Health Department is obliged to perform its duties and abide by the Occupational Safety and Health Act, arranging safety and health education and training for new and current employees.
• (3) Regular organization of fire safety training education or drills under the Fire Service Act.
• (4) A Medical Clinic Department is established to provide periodic health examinations, health care, and medical assistance.
• (5) Security guards and an entry access control system are deployed day and night to protect the company's property and workers' safety against occupational hazards.
• (6) Sexual harassment is a serious legal violation. The company emphasizes its importance and has set up a dedicated telephone and e-mail address to handle complaints concerning sexual harassment.

10. Social Responsibility

Evergreen founder and group chairman Dr. Y.F. Chang strongly believed in giving back to society. In 1985, he founded the Chang Yung-fa Foundation, a non-profit organization committed to providing emergency and medical aid, promoting education and cultural exchange, as well as elevating moral standards for three decades.

Among its milestones are the formation of the Evergreen Symphony Orchestra and the launch of Morals Monthly, a magazine distributed free of charge with a monthly circulation of around 360,000 copies in more than 30 countries. The Foundation also operates the Evergreen Maritime Museum, an institution dedicated to the preservation of maritime heritage and promotion of maritime education.

Evergreen has also worked closely with maritime schools in Taiwan to support marine education.

In November 2013, Typhoon Haiyan devastated the central region of the Philippines, causing catastrophic damage. Evergreen worked with Crisis Relief Services & Training (CREST), a non-profit Christian humanitarian organization in Malaysia, offering free transportation services to transport relief supplies to the affected areas.

The officers and crew of Evergreen Line's 7,024-TEU containership EVER SUMMIT promptly responded to a distress call and successfully rescued 16 Indian seafarers from a sunken Panamanian tanker, BITU GULF, about 40 nautical miles off the coast of Vietnam in the South China Sea on January 20, 2014.

To celebrate the 300th anniversary of Karlsruhe, Taiwan presented the German city with a steel cable sculpture for exhibition in a summer festival. For the purpose of art promotion and cultural exchange, Evergreen Line sponsored the event and provided a free transportation service for this oversized object in August, 2015. The sculpture was created by Kang Mu-hsiang, a Taiwan artist renowned for transforming discarded items into eye-catching artworks.

In support of the Chang Yung-fa Foundation's efforts to promote education in remote areas, Evergreen donated 15 secondhand high-end servers and 100 personal computers to the Hsinchu County Education Department, providing assistance to local schools in improving their digital teaching ability.

The company was also honored with a Corporate Social Responsibility Award presented by Containerisation International and Lloydtional and Lloydeong-term commitment to environmental protection, education, and social concern. The Chang Yung-fa Foundation was recognized with a Group Excellence Award in the Arts & Education Contribution category presented by the Ministry of Education in 2015 for its deep commitment and efforts in the fields of music education, oceanic art, craftsmanship, and art education.

Evergreen Line voluntarily participates in Vessel Speed Reduction Program in 2017, led by NOAA's Channel Islands National Marine Sanctuary. The company's concrete actions to avoid whale collisions and reduce greenhouse gas emissions of vessels has been honored with an environmental protection award.

The officers and crew of Evergreen Line's containership EVER DIADEM joined forces with another ship to successfully rescue thirty seafarers forced to abandon their burning fishing vessel off the coast of Madagascar in the Indian Ocean.

11. Important Agreement

(1) Short-haul Agreements

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Slot Exchange Agreement	YANG MING MARINE TRANSPORT CORP.	From: 2009.09.04 Till: Unlimited extensions; Contract termination subject to 60 days advance notification.	EMC slot exchanges with YML. (Pan Asia Services)	Slot guaranteed
Slot Charter Agreement	FUJIAN FOREIGN TRADE CENTRE SHIPPING CO.	From: 2008.03.01 Till: 2009.2.28 Can be extended. Contract termination subject to 90 days advance notification.	EMC slot charter from Fujian Foreign Trade Centre Shipping Co. (Fuzhou- Kaohsiung Shuttle Service)	Slot guaranteed
Slot Charter Agreement	CHINA UNITED LINES LTD.	From: 2010.09.27 Till: 2011.09.26 Can be extended. Contract termination subject to 90 days advance notification.	EMC is a slot charterer on Shanghai, Ningbo/ Taiwan sector.	Slot guaranteed
Vessel Sharing Agreement	WAN HAI LINES LTD.	From: 2002.09.01 Till: 2003.08.31 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC and WHL jointly. (Japan-Taiwan/ Hong Kong Service)	Slot guaranteed
Vessel Sharing Agreement	WAN HAI LINES LTD.	From: 2008.09.12 Till: 2009.09.11 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC and WHL jointly. (Japan/Taiwan/ Philippines Service)	Slot guaranteed

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Vessel Sharing Agreement	1. OOCL (ASIA PACIFIC) LTD. 2. YANGMING (UK) LTD.	From: 2006.4.30 Till: 2007.04.29 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC, OOCL, YM (UK) Ltd. jointly. (Taiwan/ Hong Kong/ Vietnam Service)	Slot guaranteed
Vessel Sharing Agreement	1. WAN HAI LINES LTD. 2. HAPAG-LLOYD CONTAINER LINE	From: 2006.04.30 Till: 2007.04.29 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC, WHL and HLCL jointly. (Taiwan/ Mainland/ Singapore/ Malaysia/ India Service)	Slot guaranteed
Slot Exchange Agreement	WAN HAI LINES LTD.	From: 2009.02.22 Till: 2009.08.23 Can be extended. Contract termination subject to 45 days advance notification.	EMC slot exchanges with WHL. (Pan-Asia Service)	Slot guaranteed
Vessel Sharing Agreement	1. COSCO CONTAINER LINES SOUTH EAST ASIA PTE. LTD. 2. SIMATECH SHIPPING PTE. LTD.	From: 2013.11.29 Till: 2014.05.28 Can be extended. Contract termination subject to 60 days advance notification.	Operated by EMC, COSCONSEA and SSF jointly. (ASEAN-Persian Gulf-ISC Service)	Slot guaranteed
Slot Exchange Agreement	CNC LINE	From: 2015.07.12 Till: 2016.01.12 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with CNC. (Taiwan-Thailand / Sigapore-Japan, Malaysia-Japan)	Slot guaranteed

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Slot Exchange Agreement	CNC LINE	From: 2015.11.25 Till: 2016.05.25 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with CNC. (Korea-Taiwan-Vietnam / North East Asia - South East Asia Service B)	Slot guaranteed
Vessel Sharing Agreement	1. SIMATECH SHIPPING PTE. LTD. 2. K LINE 3. YANG MING LINES 4. HAPAG-LLOYD 5. PACIFIC INTERNATIONAL LINES PTE. LTD.	From: 2017.06.18 Till: 2018.03.18 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC, SSF, K Line, Yang Ming Lines, Hapag-Lloyd. and PIL. (North China-India)	Slot guaranteed
Slot Charter Agreement	WAN HAI LINES LTD.	From: 2014.09.01 Till: 2015.02.28 Can be extended. Contract termination subject to 60 days advance notification.	EMC charter from WHL. (Korea - South East Asia)	Slot guaranteed
Vessel Sharing Agreement	1. YANG MING LINES 2. SINOTRANS CONTAINER LINES CO LTD. 3. TS LINE	From: 2013.06.07 Till: 2014.06.07 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC, YML, SINOTRANS and TSL jointly.	Slot guaranteed
Slot Exchange Agreement	SINOKOR MERCHANT MARINE CO., LTD.	From: 2015.07.08 Till: 2015.01.08 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with SKR. (NorthEast Asia - SouthEast Asia service / Korea China-Indonesia/ Korea-Vietnam-Thailand)	Slot guaranteed

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Slot Exchange Agreement	X-Press	From: 2016.03.27 Till: 2016.09.27 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with X-Press. (Central China-SouthEast / Singapore-Bangkok / Kaohsiung-Cebu / Vietnam Singapore-Malaysia / Kaohsiung-Manila service )	Slot guaranteed
Slot Exchange Agreement	T.S. LINE CO., LTD.	From: 2016.05.01 Till: 2016.11.01 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with TSL. (Taiwan-Shanghai / Vietnam-Singapore-Malaysia service )	Slot guaranteed
Slot Exchange Agreement	MCC TRANSPORT SINGAPORE PTE. LTD.	From: 2016.09.04 Till: 2016.12.04 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with MCC. (Taiwan-Shanghai / Vietnam-Malaysia-Indonesia service)	Slot guaranteed
Vessel Sharing Agreement	1. COSCONSEA 2. WAN HAI LINES LTD. 3. PACIFIC INTERNATIONAL LINES (PTE) LTD.	From: 2017.08.28 Till: 2018.02.27 Can be extended. Contract termination subject to 60 days advance notification.	Operated by EMC, CONCONSEA, WHL & PIL jointly. (Pakistan-India Express Service)	Slot guaranteed
Slot Exchange Agreement	K LINE	From: 2016.09.04 Till: 2016.12.04 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with K Line. (Pakistan-India Express / Pakistan-Mundra Express service)	Slot guaranteed

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Slot Exchange Agreement	OOCL	From: 2017.09.18 Till: 2017.12.16 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with OOCL. (Pakistan-India Express / Pakistan-Mundra Express service)	Slot guaranteed
Slot Exchange Agreement	COSCO	From: 2017.04.25 Till: 2017.11.25 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with COSCO. (China North / China Thailand / Taiwan -Indonesia service)	Slot guaranteed
Vessel Sharing Agreement	1. APL 2. K-LINE 3. YANG MING LINES 4. HAPAG LLOYD CONTAINER LINE	From: 2017.05.21 Till: 2018.03.21 Can be extended. Contract termination subject to 90 days advance notification.	Operated by EMC, APL, K-LINE, YANG MING and HAPAG LLOYD jointly. (Northeast Asia - Australia service)	Slot guaranteed
Slot Exchange Agreement	SITC CONTAINER LINES CO.	From: 2017.09.18 Till: 2017.12.18 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with SITC. (China-Indonesia / China-Vietnam-Indonesia Express service)	Slot guaranteed
Slot Exchange Agreement	MCC TRANSPORT SINGAPORE PTE LTD.	From: 2017.12.20 Till: 2018.03.30 Can be extended. Contract termination subject to 30 days advance notification.	EMC slot exchanges with MCC. (Indonesia-Japan / Japan -Thailand Express service)	Slot guaranteed

AGREEMENT	THE PARTY	DURATION	CONTENT	REMARK
Slot Charter Agreement	SIMATECH SHIPPING PTE. LTD.	From: 2017.11.23 Till: 2018.02.23 Can be extended. Contract termination subject to 30 days advance notification.	EMC charter from SMH. (Far East - East India ser vice)	Slot guaranteed
Slot Charter Agreement	BENGAL TIGER LINE PTE LTD.	From: 2017.12.13 Till: 2018.03.13 Can be extended. Contract termination subject to 30 days advance notification.	EMC charter from BTL. (Southeast Asia - East India service)	Slot guaranteed
Slot Exchange Agreement	SINOTRANS CONTAINER LINES CO., LTD.	From: 2017.05.20 Till: 2018.03.30 Can be extended. Contract termination subject to 60 days advance notification.	EMC slot exchanges with SNL. (North China-Australia / South China-Australia Express service)	Slot guaranteed

Agreement	THE PARTY	DURATION	CONTENT	REMARK
Vessel Sharing and Slot Exchange Agreement	1.CMA CGM 2. COSCO CONTAINER LINE 3. OOCL	From: 2016.04.01 Till: 2022.03.31	Operated by OCEAN Alliance. (F.E. / EUR and MED / F.E-M. E. / F.E.-Red Sea services)	Slot guaranteed
Slot Charter Agreement	NIPPON YUSEN KAISHA	From: 2017.04.01 Till: 2019.03.31 Contract termination subject to 90 days advance notification.	EMC charter from NYK. (Japan / USWC service)	Slot guaranteed
Vessel Sharing Agreement	1. CMA CGM 2. COSCO CONTAINER LINE 3. YANG MING LINE	From: 2017.01.20 Till: 2018.12.20 Contract termination subject to 90 days advance notification.	Operated by ELJSA & CMA CGM & COSCO & YML. (F.E. / S.America service)	Slot guaranteed
Slot Exchange Agreement	NIPPON YUSEN KAISHA	From: 2017.01.19 Till: 2018.12.19 Contract termination subject to 90 days advance notification.	EMC slot exchanges with NYK. (F.E. / S.America service)	Slot guaranteed
Vessel Sharing Agreement	1. COSCO CONTAINER LINE 2. KAWASAKI KISEN KAISHA LTD. 3. MITSUI O.S.K. LINES LTD. 4. PACIFIC INTERNATIONAL LINES	From: 2014.09.29 Till: Unlimited extensions. Contract termination subject to 90 days advance notification.	Operated by EMC/ MOL/ PIL/ KLINE jointly.	Slot guaranteed

(2) Long-haul Agreements

Agreement	THE PARTY	DURATION	CONTENT	REMARK
Vessel Sharing Agreement	1. COSCO 2. YANG MING LINE	From: 2015.12.26 Till: Unlimited extensions. Contract termination subject to 90 days advance notification.	Operated by ELJSA & COSCO & YML. (FE/ USWC)	Slot guaranteed
Vessel Sharing Agreement	1. COSCO CONTAINER LINES 2. PACIFIC INTERNATIONAL LINES 3. WAN HAI LINES 4. YANG MING LINES	From: 2015.12.25 Till: Unlimited extensions. Contract termination subject to 90 days advance notification.	Operated by ELJSA & COSCO, PACIFIC, WAN HAI & YML. (FE/ USWC)	Slot guaranteed

1. Five- Year Financial Summary

(1) Consolidated Condensed Balance Sheet

	Year		Financial Summary for The Last Five Years
Item		2013	2014	2015	2016	2017	March 31, 2018
Current assets		56,741,092	57,268,959	52,171,999	53,977,007	60,951,228	57,389,677
Property, plant and equipment		76,169,083	99,524,289	107,619,180	99,470,430	97,687,454	97,213,831
Intangible assets		9,658	22,578	22,371	121,341	159,667	157,514
Other assets		42,089,458	32,119,181	32,838,657	36,184,986	41,281,548	41,838,335
Total assets		175,009,291	188,935,007	192,652,207	189,753,764	200,079,897	196,599,357
Current liabilities	Before distribution	34,276,386	40,653,423	39,356,167	42,031,169	44,760,401	45,021,051
	After distribution	-	41,001,181	-	-	-	-
Non-current liabilities		80,563,316	83,445,251	92,001,438	94,084,094	88,630,706	85,733,009
	Before distribution	114,839,702	124,098,674	131,357,605	136,115,263	133,391,107	130,754,060
Total liabilities	After distribution	-	124,446,432	-	-	-	-
Equity attributable to owners of the parent		57,242,048	60,880,785	58,001,047	50,987,493	63,398,554	62,921,640
Common stock		34,749,523	34,775,802	35,123,560	35,123,560	40,123,560	40,123,560
Capital surplus		7,271,957	7,292,458	7,986,633	7,989,014	10,838,075	10,798,548
Retained earnings	Before distribution	16,049,508	17,185,085	11,795,067	4,985,031	11,754,606	12,182,922
	After distribution	-	16,489,569	-	-	-	-
Other equity interest		(828,940)	1,627,440	3,095,787	2,889,888	682,313	(183,390)
Treasury shares		-	-	-	-	-	-
Non-controlling interest		2,927,541	3,955,548	3,293,555	2,651,008	3,290,236	2,923,657
Total equity	Before distribution	60,169,589	64,836,333	61,294,602	53,638,501	66,688,790	65,845,297
	After distribution	-	64,488,575	-	-	-	-

(2) Consolidated Condensed Statement of Comprehensive Income

Year		Financial Summary for The Last Five Years
Item	2013	2014	2015	2016	2017	March 31, 2018
Operating revenue	139,216,384	144,284,374	133,813,687	124,467,608	150,582,692	36,840,688
Gross Profit	388,745	7,347,226	1,619,324	(3,488,164)	10,889,124	909,145
Operating income (loss)	(773,161)	3,758,015	(3,847,026)	(7,848,262)	4,817,470	(22,597)
Non-operating income and expenses	(815,986)	(546,272)	(835,470)	(960,721)	2,630,079	135,679
Profit (loss) before income tax	(1,589,147)	3,211,743	(4,682,496)	(8,808,983)	7,447,549	113,082
Profit (loss) from continuing operations	(2,046,804)	2,035,049	(4,739,297)	(8,565,311)	6,661,621	15,876
Profit (loss) from discontinued operation	-	-	-	-	-	-
Profit (loss) for the period	(2,046,804)	2,035,049	(4,739,297)	(8,565,311)	6,661,621	15,876
Other comprehensive income (loss), net of income tax	1,457,237	2,594,253	851,149	906,829	(2,971,907)	(591,110)
Total comprehensive income (loss)	(589,567)	4,629,302	(3,888,148)	(7,658,482)	3,689,714	(575,234)
Profit (loss), attributable to owners of the parent	(1,497,304)	1,155,924	(4,408,079)	(6,607,986)	7,005,171	137,263
Profit (loss), attributable to non-controlling interest	(549,500)	879,125	(331,218)	(1,957,325)	(343,550)	(121,387)
Comprehensive income (loss), attributable to owners of the parent	(250,135)	3,601,295	(3,226,155)	(7,015,935)	4,562,000	(432,892)
Comprehensive income (loss), attributable to non-controlling interests	(339,432)	1,028,007	(661,993)	(642,547)	(872,286)	(142,342)
Earnings per share (in dollars)	(0.43)	0.33	(1.26)	(1.88)	1.97	0.03

(3) Condensed Balance Sheet

Financial Summary for The Last Five Years Year
Item		2013	2014	2015	2016	2017
Current assets		19,271,637	20,382,555	24,394,141 26,797,737		29,795,801
Property, plant and equipment		14,006,137	20,522,164	27,982,312	26,055,383	27,118,687
Intangible assets		7,118	9,705	10,080		39,071
Other assets		65,551,503	63,359,304	58,542,582	53,141,674	63,841,016
Total assets		98,836,395	104,273,728	110,929,115	106,046,997	120,794,575
	Before distribution	9,192,585	13,740,529	15,261,971	14,761,758	15,220,244
	Current liabilities After distribution -		14,088,287	-	-	-
Non-current liabilities		32,401,762	29,652,414	37,666,097	40,297,746	42,175,777
Total liabilities	Before distribution	41,594,347	43,392,943	52,928,068	55,059,504	57,396,021
	After distribution	-	43,740,701	-	-	-
Common stock		34,749,523	34,775,802	35,123,560	35,123,560	40,123,560
Capital surplus		7,271,957	7,292,458	7,986,633	7,989,014	10,838,075
Retained earnings	Before distribution	16,049,508	17,185,085	11,795,067	4,985,031	11,754,606
	After distribution	-	16,489,569	-	-	-
Other equity interest		(828,940)	1,627,440	3,095,787	2,889,888	682,313
Treasury shares		-	-	-	-	-
Total equity	Before distribution	57,242,048	60,880,785	58,001,047	50,987,493	63,398,554
	After distribution	-	60,533,027	-	-	-

(4) Condensed Statement of Comprehensive Income

Year		Financial Summary for The Last Five Years
Item	2013	2014	2015	2016	2017
Operating revenue	19,508,830	26,151,838	25,134,073	23,060,494	28,897,616
Gross Profit	1,224,693	3,175,924	1,932,085	910,018	2,011,325
Operating income (loss)	(222,418)	3,589,338	469,199	(764,840)	232,667
Non-operating income and expenses	(1,229,184)	(1,668,545)	(5,183,782)	(6,297,750)	6,985,241
Profit (loss) before income tax	(1,451,602)	1,920,793	(4,714,583)	(7,062,590)	7,217,908
Profit (loss) from continuing operations	(1,497,304)	1,155,924	(4,408,079)	(6,607,986)	7,005,171
Profit (loss) from discontinued operation	-	-	-	-	-
Profit (loss) for the year	(1,497,304)	1,155,924	(4,408,079)	(6,607,986)	7,005,171
Other comprehensive income, net of income tax	1,247,169	2,445,371	1,181,924	(407,949)	(2,443,171)
Total comprehensive income	(250,135)	3,601,295	(3,226,155)	(7,015,935)	4,562,000
Earnings per share (in dollars)	(0.43)	0.33	(1.26)	(1.88)	1.97

2. Five- Year Financial Analysis

(1) Consolidated Financial Analysis

Year	2013	2014	2015	2016	2017	As of March 31,
Item						2018
Financial structure (%)
Debt ratio	65.62	65.68	68.18	71.73	66.67	66.51
Long-term funds to property, plant and equipment	184.76	148.99	142.44	148.51	159.00	155.92
Solvency (%)
Current ratio	165.54	140.87	132.56	128.42	136.17	127.47
Quick ratio	147.73	127.35	123.12	118.34	124.33	116.00
Times interest earned (times)	(2.86)	6.95	(3.75)	(6.07)	6.39	1.30
Operating performance
Receivable turnover (times)	10.46	10.30	10.19	10.32	11.42	2.90
Average collection days	35	35	36	35	32	31
Accounts payable turnover (times)	10.21	9.78	9.48	9.94	9.81	2.35
Property, plant and equipment turnover (times)	2.08	1.64	1.29	1.20	1.53	0.38
Total assets turnover (times)	0.84	0.79	0.70	0.65	0.77	0.19
Profitability
Return on total assets (%)	(1.03)	1.36	(2.06)	(3.94)	4.01	0.16
Return on total equity (%)	(3.39)	3.26	(7.51)	(14.90)	11.07	0.02
Pre-tax income to paid-in capital (%)	(4.57)	9.24	(13.33)	(25.08)	18.56	0.28
Profit ratio (%)	(1.47)	1.41	(3.54)	(6.88)	4.42	0.04
Earnings per share (NT\$)	(0.43)	0.33	(1.26)	(1.88)	1.97	0.03
Cash flow (%)
Cash flow ratio	6.44	27.54	13.26	(1.83)	25.00	0.31
Cash flow adequacy ratio	32.97	68.43	44.45	73.34	99.14	97.90
Cash flow reinvestment ratio	1.16	5.56	2.28	(0.36)	5.05	0.06
Leverage
Operating leverage	(9.66)	4.20	(2.76)	(0.63)	3.93	(121.36)
Financial leverage	0.65	1.17	0.80	0.86	1.40	0.06

(2) Non-Consolidated Financial Analysis

Year Item	2013	2014	2015	2016	2017
Financial structure (%)
Debt ratio	42.08	41.61	47.71	51.91	47.51
Long-term funds to property, plant and
equipment	640.03	441.14	341.88	350.35	389.3
Solvency (%)
Current ratio	209.64	148.33	159.83	181.53	195.76
Quick ratio	201.42	142.61	155.50	177.51	189.75
Times interest earned (times)	(280.05)	505.92	(804.44)	(1048.67)	1237.22
Operating performance
Receivable turnover (times)	15.02	13.27	12.07	11.2	10.87
Average collection days	24	28	30	33	34
Accounts payable turnover (times)	9.64	10.29	9.96	9.07	8.63
Property, plant and equipment	1.65	1.51	1.03	0.85	1.08
turnover (times)
Total assets turnover (times)	0.20	0.25	0.23	0.21	0.25
Profitability
Return on total assets (%)	(1.22)	1.52	(3.69)	(5.62)	6.64
Return on total equity (%)	(2.61)	1.95	(7.41)	(12.12)	12.24
Pre-tax income to paid-in capital (%)	(4.18)	5.52	(13.42)	(20.10)	17.98
Profit ratio (%)	(7.68)	4.42	(17.53)	(28.65)	24.24
Earnings per share (NT\$)	(0.43)	0.33	(1.26)	(1.88)	1.97
Cash flow (%)
Cash flow ratio	32.96	22.97	2.20	4.59	16.85
Cash flow adequacy ratio	97.03	81.88	83.48	258.89	183.38
Cash flow reinvestment ratio	3.03	3.24	(0.01)	0.68	2.24
Leverage
Operating leverage	(13.39)	1.37	7.66	(3.29)	15.85
Financial leverage	0.37	1.15	(9.01)	0.55	(0.57)

3. Consolidated Financial Statements and Report of Independent Accountants

REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Evergreen Marine Corporation (Taiwan) Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Evergreen Marine Corporation (Taiwan) Ltd. (the" Company") and its subsidiaries (collectively referred herein as the "Group") as of December 31, 2017 and 2016, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and a summary of the significant accounting policies and other explanatory information.

In our opinion, based on our audits and the reports of other independent accountants (please refer to Other Matter section of the report), the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as of December 31, 2017 and 2016, and its financial performance and cash flows for the years then ended in accordance with the "Regulations Governing the Preparations of Financial Reports by Securities Issuers" and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the "Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants" and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the "Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained and the reports of other independent accountants are sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

The key audit matters of the Group's consolidated financial statements for the year ended December 31, 2017 are as follows:

Accuracy of freight revenue

Description

Please refer to Note 4(31) for accounting policies on revenue recognition, Note 5(2) for uncertainty of accounting estimates and assumptions applied on revenue recognition, and Note 6(21) for details of sales revenue.

Evergreen Marine Corporation (Taiwan) Ltd. primarily engages in global container shipping service covering ocean-going and near-sea shipping line, shipping agency business as well as container freight station business. In 2017, freight revenue was NT\$ 135,358,310 thousand, representing 89.89% of operating revenue. Since ocean-going shipping often lasts for several days, voyages are sometimes completed after the date of balance sheet. Also, demands for freight are consistently sent by forwarders during voyage. Due to the factors mentioned above, freight revenue is recognized under the percentageof-completion method for each vessel during the reporting period.

Despite the Group conducting business worldwide, its transactions are all in small amounts, whereas the freight rate is subject to fluctuation caused by cargo loading rate as well as market competition. Worldwide shipping agencies use a system to record the transactions by entering data including shipping departure, destination, counterparty, transit time, shipping amounts, and freight price for the Group. Therefore, management could recognize freight revenue in accordance with the data on bill of lading reports generated from the system, accompanied by estimation made from past experience and current cargo loading conditions the revenue that would flow in, and calculate the revenue under percentage-ofcompletion method. As the process of recording transactions, communicating with agencies, maintaining the system are done manually, and the estimation of freight revenue are subject to management's judgement, therefore freight revenue involves high uncertainty and is material to the financial statements. Given the conditions mentioned above, we consider the accuracy of freight revenue and the appropriate use of cut-off by the Group and its investee companies as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• 1. Obtained an understanding of the operation and industry of the Group to assess the reasonableness of policies and procedures on revenue recognition, and confirmed whether it is appropriate to the financial statements.
• 1. Obtained an understanding of the procedures of revenue recognition from booking, picking, billing to receiving. Assessed and tested relevant internal controls, including checking freight items and amounts of delivery information against the approved contracts and booking list. In addition, recalculated the accuracy of freight revenue, and ensured its consistency with the bill of lading report.
• 1. Obtained the estimated freight income report for vessels underway as of balance sheets date, and inquired with management for the reasonableness of judgement. In addition, checked historical freight revenue for total voyage under each individual vessel, along with comparing with current cargo loading condition as well as actual revenue received after period end to ensure the reasonableness of revenue assumptions.
• 1. Confirmed the completeness of vessels underway for the reporting period, including tracking the movements of shipments on the internet to ensure the vessels that depart before period end have been taken into consideration in the freight revenue calculation.
• 1. Verified accuracy of data used in calculating percentage of completion under each voyage, including selecting samples and check whether total shipping days shown on the Company's website are in agreement with cruise timetable as well as recalculating shipping days (days between departure and balance sheet date), in order to examine the soundness of percentage applied.

Impairment of property, plant and equipment

Description

Please refer to Note 4(16) for accounting policies on property, plant and equipment, Note 5(2) for uncertainty of accounting estimates and assumptions applied on impairment of property, plant and equipment, and Note 6(8) for details of property, plant and equipment.

As of December 31, 2017, property, plant and equipment amounted to NT\$ 97,687,454 thousand, constituting 48.82% of total assets, and ship equipment, transport equipment and cargo handling equipment amounted to NT\$ 76,190,454 thousand, accounting for approximately 77.99% of total property, plant and equipment. As new ships have been built and put into operation by many carriers around the world, market supply has exceeded demand. Therefore, the market imbalance led to price competition, resulting to losses for the industry and raising the risk of asset impairment. The valuation of impairment and recoverable amounts are evaluated by the Group using the present value of the future cash flows expected to be derived from an asset or cash-generating unit compared to the book value. The main assumptions of discount rates used in recoverable amounts, and expected operating revenue growth rates, gross profit, operating profit rates, capital expenditures and discount rates used in future cash flow estimates are subject to management's judgement and involve high uncertainty, and the estimated results are material to the consolidated financial statements. Given the conditions mentioned above, we consider the impairment assessment of ship equipment, transport equipment and cargo handling equipment in the property, plant and equipment under the Group and its investee companies as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• 1. Obtained an understanding and assessed the relevant policies, internal controls and process applied to valuation of assets impairments.
• 1. Interviewed with management regarding the impairment test report, and assessed the reasonableness of discounts rate and the reasonableness of operating revenue, gross profit, operating profit rate, growth rates and capital expenditure that management used in estimating future cash flows by checking actual performance under past operating plans and comparing the performance with industry forecast to evaluate the intention and capability of management.
• 1. Checked the parameters of the valuation model and recalculated the valuation model for accuracy.

Other matter – Audit by other independent accountants

We did not audit the financial statements of all the consolidated subsidiaries. Those statements and the information disclosed in Note 13 were performed by other independent accountants whose reports thereon have been furnished to us, and our audit expressed herein is based solely on the reports of the other independent accountants. The statements reflect that total assets in these subsidiaries amounted to NT\$53,765,827 thousand and NT\$62,747,081 thousand, constituting 26.87% and 33.07% of the total consolidated assets as of December 31, 2017, and 2016, respectively. Net operating revenues in the subsidiaries amounted to NT\$55,681,727 thousand and NT\$46,208,197 thousand, constituting 36.98% and 37.12% of the total consolidated net operating revenues of 2017 and 2016 for the years then ended. In addition, we did not audit the financial statements of all the investee companies accounted for using

equity method. Those statements were audited by other independent accountants whose reports thereon have been furnished to us, and our audit expressed herein, insofar as it relates to the amounts included for those investee companies accounted for using equity method and information disclosed in Note 13 related to these long-term equity investments, is based solely on the reports of other independent accountants. Long-term equity investments in these investee companies amounted to NT\$16,239,361 thousand and NT\$15,396,048 thousand, constituting 8.12% and 8.11% of the total consolidated assets as of December 31, 2017 and 2016, respectively, and comprehensive loss (including share of profit or loss and share of other comprehensive income of associates and joint ventures accounted for using equity method) was NT\$1,892,245 thousand and NT\$1,049,924 thousand for the years then ended.

We have also audited the parent company only financial statement of Evergreen Marine Corporation (Taiwan) Ltd. as of and for the years ended December 31, 2017 and 2016 on which we have issued an unqualified opinion with explanatory paragraph thereon.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with theȸRegulations Governing the Preparations of Financial Reports by Securities Issuersȹand the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including supervisors, are responsible for overseeing the Group's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ROC GAAS, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• 1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• 1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group.
• 1. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• 1. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• 1. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• 1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements. We are

responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Lai, Chung-Hsi

Chih, Ping-Chiun

For and on behalf of PricewaterhouseCoopers, Taiwan March 23, 2018

------------------------------------------------------------------------------------------------------------------------------------------------- The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

Assets	Notes		December 31, 2017 AMOUNT	%		December 31, 2016 AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	%	49-219-374	2:	%	45-524-55:	29
Held-to-maturity financial assets - current	6(3)					281-111
Notes receivable, net			77-521			41-122
Accounts receivable, net	6(4)		23-:87-15:	8		22-683-6:6	7
Accounts receivable, net - related parties	7		8:4-732			:33-785
Other receivables			4:7-28:			896-966
Other receivables - related parties	7		597-838			398-178
Current income tax assets			26:-9:4			329-93:
Inventories	6(5)		4-82:-53:	3		4-285-:31	3
Prepayments			2-68:-675	2		2-174-439	2
Other current assets	6(6)		3-776-1:4	2		2-449-38:	2
Current assets			71-:62-339	41		64-:88-118	39
Non-current assets
Available-for-sale financial assets - non	6(2)
current			3-393-72:	2		3-7:5-937	3
Held-to-maturity financial assets - non	6(3)
current			211-111			61-111
Investments accounted for using equity	6(7)
method			37-894-137	25		36-88:-164	25
Property, plant and equipment, net	6(8)		:8-798-565	5:		::-581-541	63
Investment property, net	6(9)		5-:7:-383	4		2-:49-885	2
Intangible assets			26:-778			232-452
Deferred income tax assets	6(28)		819-377			773-125
Other non-current assets	6(10) and 8		7-549-476	4		6-171-42:	4
Non-current assets			24:-239-77:	81		246-887-868	83
Total assets		%	311-18:-9:8	211	%	29:-864-875	211

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

(Expressed in thousands of New Taiwan dollars)

(Continued)

			December 31, 2017		December 31, 2016
Liabilities and Equity	Notes		AMOUNT	%	AMOUNT	%
Current liabilities Accounts payable		%	26-469-762	9	% 23-726-996	8
Accounts payable - related parties	7		314-979		3:2-888
Other payables			4-222-266	3	2-949-398	2
Other payables - related parties	7		2-113-842	2	253-285
Current income tax liabilities			479-438		219-57:
Other current liabilities	6(11)		35-826-77:	23	38-145-688	25
Current liabilities			55-871-512	34	53-142-27:	33
Non-current liabilities
Corporate bonds payable	6(12)		9-111-111	5
Long-term loans	6(13)		76-47:-776	43	88-784-615	52
Deferred income tax liabilities	6(28)		2-85:-131	2	744-293	2
Other non-current liabilities	6(14)(15)		24-623-132	8	26-888-519	9
Non-current liabilities			99-741-817	55	:5-195-1:5	61
Total liabilities			244-4:2-218	78	247-226-374	83
Equity attributable to owners of the parent
Capital
Common stock	6(17)		51-234-671	31	46-234-671	29
Capital surplus	6(18)
Capital surplus			21-949-186	6	8-:9:-125	5
Retained earnings	6(19)
Legal reserve			5-:96-142	4	:-344-353	6
Unappropriated retained earnings (deficit)			7-87:-686	4 )	5-359-322* )	3*
Other equity interest	6(20)
Other equity interest			793-424	2	3-99:-999	3
Equity attributable to owners of the
parent			74-4:9-665	43	61-:98-5:4	38
Non-controlling interest			4-3:1-347	2	3-762-119	2
Total equity			77-799-8:1	44	64-749-612	39
Significant Contingent Liabilities And	9
Unrecognized Contract Commitments
Significant events after the balance sheet	11
date
Total liabilities and equity	The accompanying notes are an integral part of these consolidated financial statements.	%	311-18:-9:8	211	% 29:-864-875	211

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

(Expressed in thousands of New Taiwan dollars)

84

				Years ended December 31
			2017		2016
Items	Notes		AMOUNT	%	AMOUNT	%
Operating revenue	6(21) and 7	%	261-693-7:3	211 %	235-578-719	211
Operating costs	6(26)(27) and 7	)	24:-7:4-679* )	:4* )	238-:66-883* )	214*
Gross profit (loss)			21-99:-235	8 )	4-599-275* )	4*
Unrealized profit from sales		)	38-417*	)	25-247*
Realized profit on from sales			23-57:		9-298
Gross profit (loss)			21-985-398	8 )	4-5:5-224* )	4*
Operating expenses	6(26)(27) and 7	)	7-669-712* )	5* )	7-346-523* )	6*
Other gains - net	6(22)		612-895		2-992-374	3
Operating profit (loss)			5-928-581	4 )	8-959-373* )	7*
Other income	6(23)		:65-417	2	913-433	2
Other gains and losses	6(24)		683-9:5		581-682
Finance costs	6(25)	)	2-491-827* )	2* )	2-356-:63* )	2*
Share of loss of associates and joint
ventures accounted for using equity
method			3-594-6:6	3 )	:98-773* )	2*
Total non-operating income and
expenses			3-741-18:	3 )	:71-832* )	2*
Profit (loss) before income tax			8-558-65:	6 )	9-919-:94* )	8*
Income tax expense	6(28)	)	896-:39* )	2*	354-783
Profit (loss) for the year		%	7-772-732	5 )%	9-676-422* )	8*

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan dollars, except earnings (loss) per share amounts)

(Continued)

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

				Years ended December 31
			2017		2016
Items	Notes		AMOUNT	%	AMOUNT	%
Other comprehensive income (loss) Components of other comprehensive
income that will not be reclassified to
profit or loss
Actuarial loss on defined benefit plan		)%	25:-115*	)%	73-283*
Share of other comprehensive income
of associates and joint ventures
accounted for using equity method,
components of other comprehensive
income that will not be reclassified to
profit or loss Income tax related to components of		)	225-298*	)	266-:19*
other comprehensive income that will
not be reclassified to profit or loss			27-:53		31-725
Components of other
comprehensive income that will
not be reclassified to profit or loss		)	357-35:*	)	2:8-577*
Components of other comprehensive
income that will be reclassified to
profit or loss
Exchange differences on translating
the financial statements of foreign operations		)	3-675-335* )	3*	5:9-452	2
Unrealized gain on valuation of
available-for-sale financial assets			214-782		256-522
Share of other comprehensive (loss)
income of associates and joint
ventures accounted for using equity
method		)	36:-387*		559-129
Income tax relating to the
components of other comprehensive (loss) income		)	6-93:*		23-636
Components of other
comprehensive income that will
be reclassified to profit or loss		)	3-836-769* )	3*	2-215-3:6	2
Other comprehensive (loss) income
for the year, net of income tax		)%	3-:82-:18* )	3* %	:17-93:	2
Total comprehensive income (loss) for
the period		%	4-79:-825	3 )%	8-769-593* )	7*
Profit (loss), attributable to: Owners of the parent		%	8-116-282	5 )%	7-718-:97* )	6*
Non-controlling interest		)%	454-661*	)%	2-:68-436* )	3*
Comprehensive income (loss)
attributable to:
Owners of the parent		%	5-673-111	4 )%	8-126-:46* )	6*
Non-controlling interest		)%	983-397* )	2* )%	753-658* )	2*
Earnings (loss) per share (in dollars)	6(29)
Basic earnings (loss) per share		%		2/:8 )%		2/99*
Diluted earnings (loss) per share		%		2/:8 )%		2/99*

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

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of New Taiwan dollars) (Expressed in thousands of New Taiwan dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	--

Equity attributable to owners of the parent

Year 2016

					Equity attributable to owners of the parent
					Retained Earnings Retained Earnings		Other equity interest Other equity interest
						Financial
						statements statements Financial	Unrealized gain Unrealized gain	instrument Hedging	instrument Hedging
						translation translation	or loss on or loss on	gain (loss) on	gain (loss) on
			Capital surplus, Capital surplus, additional paid		Unappropriated retained earnings / Unappropriated	differences of differences of foreign	available-for available-for sale financial	hedge of cash effective	effective	controlling Non	Non
	Notes Notes	Common stock Common stock	additional paid in capital in capital	Legal reserve Legal reserve	retained earnings / (deficit) (deficit)	operations foreign operations	sale financial assets assets	flow hedges	Total hedge of cash flow hedges	interest Total	Total equity Total equity controlling interest
Year 2016
Balance at January 1, 2016 Balance at January 1, 2016		% 46-234-671 % 46-234-671	% 8-:97-744 % 8-:97-744	% :-344-353 % :-344-353	3-672-936 3-672-936 % %	% 3-266-197 % 3-266-197	% 2-572-961 % 2-572-961	632-25: * )% )%	% 69-112-158 632-25: *	% 4-3:4-666 % 69-112-158	% 72-3:5-713 % 72-3:5-713 % 4-3:4-666
Adjustments to share of changes in equity of associates and Adjustments to share of changes in equity of associates and jointventures	6(18) 6(18)		3-492						3-492		3-492
Loss for the year joint ventures			3-492		7-718-:97 * )				)	7-718-:97 * ) 2-:68-436 * ) 3-492	9-676-422 *
Other comprehensive income (loss) for the year Loss for the year	6(20)				7-718-:97 * 313-161 * ) ) )	:11-575 *	352-422	564-365	518-:5: * ) )	7-718-:97 * ) 2-:68-436 * ) 2-425-889	:17-93:
Other comprehensive income (loss) for the year Balance at December 31, 2016	6(20)	% 46-234-671	% 8-:9:-125	% :-344-353	5-359-322 * ) )%	:11-575 * % 2-365-733 313-161 * )	% 2-814-272	78-9:6 * 352-422 )%	% 61-:98-5:4 ) 564-365	% 3-762-119 518-:5: *	% 64-749-612 2-425-889
Balance at December 31, 2016 Year 2017		% 46-234-671	% 8-:9:-125	% :-344-353	5-359-322 * )%	% 2-365-733	% 2-814-272	)%	78-9:6 *	% 61-:98-5:4	% 64-749-612 % 3-762-119
Balance at January 1, 2017		% 46-234-671	% 8-:9:-125	% :-344-353	5-359-322 * )%	% 2-365-733	% 2-814-272	78-9:6 * )%	% 61-:98-5:4	% 3-762-119	% 64-749-612
Distribution of2016 earnings: Balance at January 1, 2017	6(19)	% 46-234-671	% 8-:9:-125	% :-344-353	5-359-322 * )%	% 2-365-733	% 2-814-272	)%	78-9:6 *	% 61-:98-5:4	% 64-749-612 % 3-762-119
Legal reserve used to cover accumulated deficit Distribution of 2016 earnings:	6(19)			5-359-322 * )	5-359-322
Legal reserve used to cover accumulated deficit Issuance of common stock	6(17)	6-111-111	3-822-333	5-359-322 * )	5-359-322				8-822-333		8-822-333
Cash capital increase reserved for employee preemption Issuance of common stock	6(18) 6(17)	6-111-111	3-822-333 87-391						87-391	8-822-333	87-391
Adjustments to share of changes in equity of associates and Cash capital increase reserved for employee preemption joint ventures	6(18) 6(18)		87-391 78-977						78-977	87-391	78-977
Adjustments to share of changes in equity of associates and Profit (loss) for the year joint ventures	6(18)		78-977		8-116-282				8-116-282	454-661 * 78-977 )	7-772-732
Other comprehensive income (loss) for the year Profit (loss) for the year	6(20)				8-116-282 )	346-6:7 * ) 3-49:-847 *	241-289	62-:94	3-554-282 * ) )	639-847 * ) ) 8-116-282	3-:82-:18 * 454-661 *
Effect of business combination										2-724-556	2-724-556
Other comprehensive income (loss) for the year Change in non-controlling interests	6(30) 6(20)		7-418 * )		)	346-6:7 * ) 3-49:-847 *		241-289	7-418 * ) ) 62-:94 )	212-:42 * ) 3-554-282 * )	219-349 * 639-847 * )
Balance at December 31, 2017 Effect of business combination		% 51-234-671	% 21-949-186	% 5-:96-142	7-87:-686 %	)% 2-246-225 *	% 2-944-44:	26-:23 * )%	% 74-4:9-665	% 4-3:1-347	% 77-799-8:1 2-724-556

2017 Annual Report

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

Balance at December 31, 2017 % 51-234-671 % 21-949-186 % 5-:96-142 % 7-87:-686 )% 2-246-225 * % 2-944-44: )% 26-:23 * % 74-4:9-665 % 4-3:1-347 % 77-799-8:1

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

			Years ended December 31
	Notes		2017		2016
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax		%	8-558-65:	) %	9-919-:94 *
Adjustments
Income and expenses having no effect on cash flows
Depreciation	6(8)(9)		8-7:2-7::		9-217-241
Amortization	6(26)		49-486		41-612
Bad debts expense	6(4)		32-757		255-:12
Interest income	6(23)	)	547-:65 *	)	388-85: *
Interest expense	6(25)		2-491-827		2-356-:63
Dividend income	6(23)	)	228-547 *	)	253-263 *
Gain on disposal of available-for-sale financial assets		)	723-815 *
Realized loss from capital reduction of available-for-sale	6(24)
financial assets					2-989
(Profit) loss on disposal of investments accounted for using
equity method		)	7-689 *		2-976
Share of (profit) loss of associates and joint ventures
accounted for using equity method		)	3-594-6:6 *		:98-773
Gain from bargain purchase Net gain on disposal of property, plant and equipment	6(31) 6(22)	) )	6-:94 * 612-895 *	)	2-992-374 *
Realized loss from property, plant and equipment	6(24)				5:-53:
Net loss on disposal of intangible assets					4
Loss on disposal of other investments			423
Realized income with affliated companies		)	2:-:23 *	)	28-231 *
Unrealized income with affliated companies			38-417		25-247
Cash capital increase reserved for employee preemption			87-391
Changes in assets/liabilities relating to operating activities
Changes in operating assets
Notes receivable, net		)	28-453 *		9-934
Accounts receivable		)	61:-263 *	)	2-178-:5: *
Accounts receivable, net - related parties			349-2:3	)	282-938 *
Other receivables			527-479	)	587-751 *
Other receivables - related parties		)	295-368 *		288-315
Inventories		)	823-184 *	)	534-1:6 *
Prepayments		)	475-111 *	)	271-36: *
Other current assets		)	94-383 *		2-489-43:
Other non-current assets			3-851	)	2-575 *
Net changes in liabilities relating to operating activities
Accounts payable			2-896-611		276-352
Accounts payable - related parties		)	369-843 *		213-::7
Other payables			9:5-::1	)	217-224 *
Other payables - related parties			98-977	)	39-429 *
Other current liabilities		)	2-291-639 *		2-922-1:7
Other non-current liabilities			3-241	)	74-119 *
Cash inflow generated from operations			23-728-478		711-317
Interest received			547-:65		388-85:
Interest paid		)	2-567-6:3 *	)	2-393-61: *
Income tax paid		)	517-99: *	)	444-149 *
Net cash flows from (used in) operating activities			22-2:1-951	)	848-6:3 *

(Continued)

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended December 31 Notes 2017 2016

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES			Years ended December 31
Proceeds from disposal of available-for-sale financial assets	Notes	%	2-164-546 2017	%	2016
Proceeds from capital reduction of available-for-sale financial assets CASH FLOWS FROM INVESTING ACTIVITIES					2-364
held-to-maturity financial assets Proceeds from disposal of available-for-sale financial assets		%	281-111 2-164-546	%	311-111
Acquisition of held-to-maturity financial assets Proceeds from capital reduction of available-for-sale financial		)	61-111 *
Proceeds from capital reduction of investments accounted for assets					2-364
using equity method Proceeds from disposal of held-to-maturity financial assets			281-111		:8-815 311-111
investments accounted for using equity method Acquisition of held-to-maturity financial assets		)	27-794 * 61-111 *	)	3-977-873 *
disposal of investments accounted for using equity Proceeds from capital reduction of investments accounted for
method using equity method			53-914		:8-815
property, plant and equipment Acquisition of investments accounted for using equity method	6(32)	) )	2-66:-87: 27-794 *	)	2-77:-5:: 3-977-873 *
property, plant and equipment Proceeds from disposal of investments accounted for using equity			662-613		3-762-127
Acquisition of intangible assets method	6(32)	)	66-855 * 53-914	)	87-539 *
Increase in guarantee deposits paid Acquisition of property, plant and equipment	6(32)	) )	54-439 2-66:-87: *	) )	3:-8:4 2-77:-5:: *
Increase in other non-current assets Proceeds from disposal of property, plant and equipment	6(32)	)	6-739-946 * 662-613	)	3-6:7-446 * 3-762-127
Non-current prepayments for investments Acquisition of intangible assets	6(32)	)	34-277 * 66-855 *	)	87-539 *
Effect of initial consolidation of subsidiaries Increase in guarantee deposits paid	6(32)	) )	6-217-48: * 54-439 *	)	3:-8:4 *
Cash dividend received Increase in other non-current assets	6(32)	)	8:7-:9: 6-739-946 *	)	959-813 3-6:7-446 *
Non-current prepayments for investments Net cash flows used in investing activities		) )	:-97:-286 * 34-277 *	)	4-551-253 *
Effect of initial consolidation of subsidiaries CASH FLOWS FROM FINANCING ACTIVITIES	6(32)	)	6-217-48: *
Cash dividend received Increase in short-term loans			8:7-:9: 711-111		959-813 21-711-394
Decrease in short-term loans Net cash flows used in investing activities		) )	:-97:-286 * 711-111	) )	21-711-394 4-551-253 *
Increase (decrease) in other payables CASH FLOWS FROM FINANCING ACTIVITIES	7		925-212	)	6-827 *
Increase in long-term loans Increase in short-term loans			9-558-471 711-111		34-9:8-578 21-711-394
Decrease in long-term loans Decrease in short-term loans		) )	27-771-:65 711-111 *	)	29-464-594 21-711-394 *
Net change in non-controlling interest Increase (decrease) in other payables	6(32) 7	)	96-4:4 * 925-212	)	6-827 *
corporate bonds payable Increase in long-term loans			9-111-111 9-558-471		34-9:8-578
corporate bonds payable Decrease in long-term loans		) )	4-111-111 * 27-771-:65 *	)	29-464-594 *
Decrease other non-current liabilities Net change in non-controlling interest	6(32)	) )	2-461-389 * 96-4:4 *	)	92:-198 *
Decrease in guarantee deposits received Increase in corporate bonds payable		)	2-373 * 9-111-111	)	9-123 *
Proceeds from issuance of common stock Decrease in corporate bonds payable		)	8-822-333 4-111-111 *
Decrease other non-current liabilities Net cash flows from financing activities		)	4-985-8:7 2-461-389 *	)	5-822-27: 92:-198 *
Decrease in guarantee deposits received Effect of exchange rate changes		) )	2-373 2-612-758 8-822-333	)	9-123 * 2-156-5:5
Proceeds from issuance of common stock Net increase in cash and cash equivalents			4-7:5-925		2-689-:3:
Net cash flows from financing activities Cash and cash equivalents at beginning of year			4-985-8:7 45-524-55:		5-822-27: 43-945-631
Effect of exchange rate changes Cash and cash equivalents at end of year Net increase in cash and cash equivalents		) %	2-612-758 * 49-219-374 4-7:5-925	%	2-156-5:5 45-524-55: 2-689-:3:
Cash and cash equivalents at beginning of year			45-524-55:		43-945-631
Cash and cash equivalents at end of year		%	49-219-374	%	45-524-55:

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

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Evergreen Marine Corporation (Taiwan) Ltd. (the "Company") was established in the Republic of China. The Company and its subsidiaries (collectively referred herein as the "Group") are mainly engaged in domestic and international marine transportation, shipping agency services, and the distribution of containers. The Company was approved by the Securities and Futures Bureau (SFB), Financial Supervisory Commission, Executive Yuan, R.O.C. to be a public company on November 2, 1982 and was further approved by the SFB to be a listed company on July 6, 1987. The Company's shares have been publicly traded on the Taiwan Stock Exchange since September 21, 1987.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised by the Board of Directors on March 23, 2018.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC")

New standards, interpretations and amendments endorsed by FSC effective from 2017 are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 10, IFRS 12 and IAS 28, 'Investment entities: applying the consolidation exception'	January 1, 2016
Amendments to IFRS 11, 'Accounting for acquisition of interests in	January 1, 2016
joint operations'
IFRS 14,'Regulatory deferral accounts'	January 1, 2016
Amendments to IAS 1, 'Disclosure initiative'	January 1, 2016
Amendments to IAS 16 and IAS 38, 'Clarification of acceptable methods of depreciation and amortisation'	January 1, 2016
Amendments to IAS 16 and IAS 41, 'Agriculture: bearer plants' Amendments to IAS 19, 'Defined benefit plans: employee contributions'	January 1, 2016 July 1, 2014
Amendments to IAS 27, 'Equity method in separate financial statements'	January 1, 2016
Amendments to IAS 36, 'Recoverable amount disclosures for non financial assets'	January 1, 2014

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 39, 'Novation of derivatives and continuation of	January 1, 2014
hedge accounting'
IFRIC 21, 'Levies'	January 1, 2014
Annual improvements to IFRSs 2010-2012 cycle	July 1, 2014
Annual improvements to IFRSs 2011-2013 cycle	July 1, 2014
Annual improvements to IFRSs 2012-2014 cycle	January 1, 2016

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

A. Amendments to IAS 19, 'Defined benefit plans: Employee contributions'

The amendment allows contributions made by employees or third parties that are linked to service, and do not vary with the length of employee service, to be deducted from the cost of benefits earned in the period that the service is provided. Contributions made by employees or third parties that are linked to service, and vary according to the length of employee service, must be spread over the service period using the same attribution method that is applied to the benefits.

B. Annual improvements to IFRSs 2010-2012 cycle

IFRS 8, 'Operating segments'

The standard is amended to require disclosure of judgements made by management in aggregating operating segments. This amendment also clarifies that a reconciliation of the total of the reportable segments' assets to the entity's assets is required only when segment asset is provided to chief operating decision maker regularly.

Based on the Group's assessment, the amendment will result in an additional disclosure of judgements made by management in aggregating operating segments and a deletion of a reconciliation of segments' assets.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

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

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 2, 'Classification and measurement of share	January 1, 2018
based payment transactions'
Amendments to IFRS 4, 'Applying IFRS 9 Financial instruments with	January 1, 2018
IFRS 4 Insurance contracts'
IFRS 9, 'Financial instruments'	January 1, 2018
IFRS 15, 'Revenue from contracts with customers'	January 1, 2018

	Effective date by International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 15, 'Clarifications to IFRS 15 Revenue from contracts with customers'	January 1, 2018
Amendments to IAS 7, 'Disclosure initiative'	January 1, 2017
Amendments to IAS 12, 'Recognition of deferred tax assets for unrealised losses'	January 1, 2017
Amendments to IAS 40, 'Transfers of investment property'	January 1, 2018
IFRIC 22, 'Foreign currency transactions and advance consideration'	January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle- Amendments to IFRS 1, 'First-time adoption of International Financial Reporting Standards'	January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle- Amendments to IFRS 12, 'Disclosure of interests in other entities'	January 1, 2017
Annual improvements to IFRSs 2014-2016 cycle- Amendments to IAS 28, 'Investments in associates and joint ventures'	January 1, 2018

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment. The quantitative impact will be disclosed when the assessment is complete.

A. IFRS 9, 'Financial instruments'

• (a) Classification of debt instruments is driven by the entity's business model and the contractual cash flow characteristics of the financial assets, which would be classified as financial asset at fair value through profit or loss, financial asset measured at fair value through other comprehensive income or financial asset measured at amortised cost. Equity instruments would be classified as financial asset at fair value through profit or loss, unless an entity makes an irrevocable election at inception to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading.

• (b) The impairment losses of debt instruments are assessed using an 'expected credit loss' approach. An entity assesses at each balance sheet date whether there has been a significant increase in credit risk on that instrument since initial recognition to recognise 12-month expected credit losses or lifetime expected credit losses (interest revenue would be calculated on the gross carrying amount of the asset before impairment losses occurred); or if the instrument that has objective evidence of impairment, interest revenue after the impairment would be calculated on the book value of net carrying amount (i.e. net of credit allowance). The Group shall always measure the loss allowance at an amount equal to lifetime expected credit losses for trade receivables that do not contain a significant financing component.

• (c) The amended general hedge accounting requirements align hedge accounting more closely with an entity's risk management strategy. Risk components of non-financial items and a group of items can be designated as hedged items. The standard relaxes the requirements for hedge effectiveness, removing the 80-125% bright line, and introduces the concept of 'rebalancing'; while its risk management objective remains unchanged, an entity shall rebalance the hedged item or the hedging instrument for the purpose of maintaining the hedge ratio.

• B. IFRS 15, 'Revenue from contracts with customers'

IFRS 15, 'Revenue from contracts with customers'replaces IAS 11, 'Construction contracts', IAS 18, 'Revenue' and relevant interpretations. According to IFRS 15, revenue is recognised when a customer obtains control of promised goods or services. A customer obtains control of goods or services when a customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps:

• Step 1: Identify contracts with customer
• Step 2: Identify separate performance obligations in the contract(s)
• Step 3: Determine the transaction price
• Step 4: Allocate the transaction price.
• Step 5: Recognise revenue when the performance obligation is satisfied.

Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

C. Amendments to IAS 7, 'Disclosure initiative'

This amendment requires that an entity shall provide more disclosures related to changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.

The Group expects to provide additional disclosure to explain the changes in liabilities arising from financing activities.

When adopting the new standards endorsed by the FSC effective from 2018, the Group will apply the new rules under IFRS 9 retrospectively from January 1, 2018, with the practical expedients permitted under the statement. The significant effects of applying the new standards as of January 1, 2018 are summarized below:

A. In accordance with IFRS 9, the Group expects to reclassify available-for-sale financial assets in the amount of \$2,282,619 by increasing financial assets at fair value through other comprehensive income in the amount of \$2,282,619.

• B. In accordance with IFRS 9, the Group expects to reclassify held-to-maturity financial assets of \$100,000 by increasing financial assets at amortised cost in the amount of \$100,000.
• C. In line with the regulations under IFRS 9 on provision for impairment, other equity interest will have to be decreased by \$192,156 and retained earnings increased by \$192,156.

(3) Effect of IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 9, 'Prepayment features with negative compensation'	January 1, 2019
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture'	International Accounting
	Standards Board
IFRS 16, 'Leases'	January 1, 2019
IFRS 17, 'Insurance contracts'	January 1, 2021
Amendments to IAS 19, 'Plan amendment, curtailment or settlement'	January 1, 2019
Amendments to IAS 28, 'Long-term interests in associates and joint ventures'	January 1, 2019
IFRIC 23, 'Uncertainty over income tax treatments'	January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle	January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment. The quantitative impact will be disclosed when the assessment is complete.

A. IFRS 16, 'Leases'

IFRS 16, 'Leases', replaces IAS 17, 'Leases' and related interpretations and SICs. The standard requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

B. Amendments to IAS 19, 'Plan amendment, curtailment or settlement'

When a change to a plan take place, the amendments require a company to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan.

C. Annual improvements to IFRSs 2015-2017 cycle

(a) Amendments to IFRS 3, 'Business combinations'

The amendments clarified that obtaining control of a business that is a joint operation is a business combination achieved in stages. The acquirer should remeasure its previously held interest in the joint operation at fair value at of the acquisition date.

(b) Amendments to IAS 12, 'Income taxes'

The amendment clarified that the income tax consequences of dividends on financial instruments classified as equity should be recognised according to where the past transactions or events that generated distributable profits were recognised. These requirements apply to all income tax consequences of dividends.

(d) Amendments to IAS 23, 'Borrowing costs'

The amendments clarified that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it becomes part of general borrowings.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

These consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
• (b) Available-for-sale financial assets measured at fair value.
• (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:
• (a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
• (d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

				Ownership (%)
Name of Investor	Name of Subsidiary	Main business activities	December 31, 2017	December 31, 2016	Description
The Company	TTSC	Cargo loading and discharging	55.00	55.00
The Company	Peony	Investments in transport-related business	100.00	100.00
The Company	ETS	Terminal Services	100.00	100.00
The Company	EGH	Container shipping and agency services dealing with port formalities	79.00	-	(i)
Peony	GMS	Container shipping	100.00	100.00
Peony	Clove	Investments in container yards and port terminals	100.00	100.00
Peony	EMU	Container shipping	51.00	51.00
Peony	EHIC(M)	Manufacturing of dry steel containers and container parts	84.44	84.44
Peony	Armand N.V.	Investments in container yards and port terminals	70.00	70.00
Peony	KTIL	Loading, discharging, storage, repairs and cleaning	20.00	20.00	(a)
Peony	MBPI	Containers storage and inspections of containers at the customs house	95.03	95.03
Peony	MBT	Inland transportation, repairs and cleaning of containers	17.39	17.39

B. Subsidiaries included in the consolidated financial statements:

4 Financial Statements

				Ownership (%)
Name of Investor	Name of Subsidiary	Main business activities	December 31, 2017	December 31, 2016	Description
Peony	EGS	Agency services dealing with port formalities	51.00	51.00
Peony	EGK	Agency services dealing with port formalities	100.00	100.00
Peony	EGT	Agency services dealing with port formalities	85.00	51.00	(j)
Peony	EGI	Agency services dealing with port formalities	99.99	99.99
Peony	EMA	Agency services dealing with port formalities	67.50	67.50
Peony	EIT	Agency services dealing with port formalities	55.00	55.00
Peony	EES	Agency services dealing with port formalities	100.00	55.00	(k)
Peony	ERU	Agency services dealing with port formalities	51.00	51.00
Peony	EEU	Agency services dealing with port formalities	100.00	100.00
Peony	EGD-WWX	Agency services dealing with port formalities	100.00	100.00	(d)
Peony	EGF	Agency services dealing with port formalities	-	100.00	(c)
Peony	EGN	Agency services dealing with port formalities	-	100.00	(g)
Peony	ESA	Agency services dealing with port formalities	55.00	55.00

				Ownership (%)
Name of	Name of	Main business	December 31,	December 31,
Investor	Subsidiary	activities	2017	2016	Description
Peony	EGB	Real estate leasing	95.00	95.00
Peony	EGM	Agency services dealing with port formalities	100.00	-	(h)
Peony	EGH	Container shipping and agency services dealing with port formalities	1.00	-	(i)
EGH	Ever shine (Shanghai)	Management consultancy and self-owned property leasing	100.00	-
EGH	Ever shine (Ningbo)	Management consultancy and self-owned property leasing	100.00	-
EMU	Island	Investments in operating machinery and equipment of port terminals	15.00	15.00
EMU	KTIL	Loading, discharging, storage, repairs and cleaning	20.00	20.00	(a)
EMU	EGU	of containers Agency services dealing with port formalities	100.00	100.00
EMU	EGUD	Agency services dealing with port formalities	100.00	100.00	(b)
EEU	EGDL	Agency services dealing with port formalities	100.00	100.00	(e)
EEU	EGDV	Agency services dealing with port formalities	-	100.00	(f)

4 Financial Statements

			Ownership (%)
Name of Investor	Name of Subsidiary	Main business activities	December 31, 2017	December 31, 2016	Description
Clove	Island	Investments in operating machinery and equipment of port terminals	36.00	36.00
Armand N.V.	Armand B.V.	Investments in container yards and port terminals	100.00	100.00
Island	Whitney	Investments and leases of operating machinery and equipment of port terminals	100.00	100.00
Island	Hemlock	Investments and leases of operating machinery and equipment of port terminals	100.00	100.00
MBPI	MBT	Inland transportation, repairs and cleaning of containers	72.95	72.95

• (a) The Group shall present consolidated financial statements in which it consolidates its investments in KTIL since control is presumed to exist when the Group merely owns 40% interests of the entity and when there is power to cast the majority of votes at meetings of the Board of Directors.
• (b) On August 1, 2016, the Board of Directors has resolved that the subsidiary Peony to sell 100% share ownership of EGUD to the indirect subsidiary – EMU. Since EMU obtained the wholly-owned ownership, the Board of Directors resolved a reorganization plan to transfer businesses from EGU and EGUD to EMU on August 1, 2016. As of the issuance of financial report, the liquidation of EGU and EGUD are still in process.

• (c) On May 12, 2017, the Board of Directors of the subsidiary, Peony, has approved the proposal of reorganisation and disposal of 100% of EGF's equity to the sub-subsidiary, EEU. After acquiring EGF's equity, EEU consummated a merger with its subsidiary, EGF, under the resolution of shareholders' meeting on August 1, 2017. The merger made EEU the surviving company as EGF was dissolved thereafter.

• (d) The proposal of reorganisation of the subsidiary, Peony, has been approved by the Board of Directors on May 12, 2017 to transfer EGDW's business to the sub-subsidiary, EEU, beginning on August 1, 2017. As of the issuance of financial report, the liquidation of EGDW is still in process.

• (e) The proposal of reorganisation of the sub-subsidiary, EEU, has been resolved at the shareholders' meeting on May 18, 2017, to transfer its business to its subsidiary, EGDL, effective on August 1, 2017. As of the issuance of financial report, the liquidation of EGDL is still in process.
• (f) The merger of the sub-subsidiary, EEU, and its subsidiary, EGDV, has been approved at the shareholders' meeting on July 4, 2017. The merger made EEU the surviving company as EGDV was dissolved thereafter.
• (g) On May 12, 2017, the Board of Directors adopted a resolution to approve the reorganization of subsidiary Peony Investment. On December 21, 2017, the EGN business was handed over to subsidiary EEU. EGN has proceeded to deregister as a legal entity. At the time of the issuance of these financial statements, EGN is still in the process of deregistration.
• (h) On November 30, 2017, the Board of Directors resolved to have subsidiary Peony Investment acquire the remaining 70% of the shares of EGM from the other shareholders. The acquisition date was December 27, 2017.
• (i) On August 11, 2017, the Board of Directors resolved to have the Company and subsidiary Peony Investment acquire 79% and 1%, respectively, of the shares of EGH from Evergreen International S.A. The transaction amount was US \$212,000. The applicable transactions were approved by the Investment Commission of the Ministry of Economic Affairs. The acquisition date was December 18, 2017.
• (j) On December 27, 2017, the Board of Directors of resolved to have subsidiary Peony Investment acquire 34% of the shares of EGT from the non-controlling interest. The effective date of ownership transfer was December 31, 2017.
• (k) On November 21, 2017, the Board of Directors resolved to have subsidiary Peony Investment acquire 45% of the shares of EES from the non-controlling interest. The effective date of ownership transfer was December 31, 2017.
• C. Subsidiary not included in the consolidated financial statements: None.
• D. Adjustments for subsidiaries with different balance sheet dates: None.
• E. Significant restrictions: None.
• F. Subsidiaries that have non-controlling interests that are material to the Group:

As of December 31, 2017 and 2016, the non-controlling interest amounted to \$3,290,236 and \$2,651,008, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

4 Financial Statements

			Non-controlling	interest
		December	31, 2017	December	31, 2016
Name of	Principal place		Ownership		Ownership
subsidiary	of business	Amount	(%)	Amount	(%)	Description
EMU	U.K.	\$ 598,392	49%	\$ 1,346,808	49%
EGH	Hong Kong	1,591,869	20%	-	-

Summarised financial information of the subsidiaries:

Balance sheets

		EMU
		December 31, 2017	December 31, 2016
Current assets	\$	9,113,834 \$	8,558,298
Non-current assets		38,436,657	43,908,688
Current liabilities	(	20,121,083) (	18,383,253)
Non-current liabilities	(	26,208,199) (	31,335,146)
Total net assets	\$	1,221,209 \$	2,748,587
			EGH
			December 31, 2017
Current assets		\$	3,119,694
Non-current assets			8,673,850
Current liabilities		(	2,054,676)
Non-current liabilities		(	1,779,522)
Total net assets		\$	7,959,346

Statements of comprehensive income

		EMU
		Year ended	Year ended
		December 31, 2017	December 31, 2016
Revenue	\$	54,151,814 \$	44,957,343
Loss before income tax	(\$	1,313,841) (\$	4,301,640)
Income tax expense	(	15,818) (	11,309)
Loss for the period from continuing operations	(	1,329,659) (	4,312,949)
Other comprehensive loss, net of tax	(	13,202) (	1,144)
Total comprehensive loss for the period	(\$	1,342,861) (\$	4,314,093)
Comprehensive loss attributable to non-controlling interest	(\$	658,002) (\$	2,113,906)

		EGH
		Year ended
		December 31, 2017
Revenue	\$	3,883,278
Profit before income tax	\$	977,953
Income tax expense	(	114,967)
Profit for the period
from continuing operations		862,986
Other comprehensive loss,
net of tax	(	3,310)
Total comprehensive income for
the period	\$	859,676
Comprehensive income attributable
to non-controlling interest	\$	12,402

Statements of cash flows

	Year ended	Year ended
	December 31, 2017	December 31, 2016
		(\$ 133,883)
		158,015
(	4,648,565)	98,750
(	150,575)	( 36,117)
		86,765
	1,890,638	1,803,873
		\$ 1,890,638
	\$ ( ( \$	EMU 4,996,091 246,896) 49,945) 1,840,693

	EGH EGH EGH EGH EGH
	December December December December December	Year Year Year Year Year ended ended ended ended ended 31, 31, 31, 31, 31, 2017 2017 2017 2017
Net Net Net Net Net cash cash cash cash cash provided provided provided provided provided by by by by by
operating operating operating operating operating activities activities activities	\$ \$ \$ \$	1,944,965 1,944,965 1,944,965 1,944,965 1,944,965
Net Net Net Net Net cash cash cash cash cash provided provided provided provided provided by by by by by
investing investing investing investing investing activities activities activities activities activities		80,984 80,984 80,984 80,984 80,984
Net Net Net Net Net cash cash cash cash used used used used in in in
financing financing financing financing financing activities activities activities activities	( ( ( ( (	1,252,423) 1,252,423) 1,252,423) 1,252,423) 1,252,423)
Effect Effect Effect Effect Effect of of of of of exchange exchange exchange exchange exchange rates rates rates rates rates on on on on on cash cash cash cash
and and and and and cash cash cash cash equivalents equivalents equivalents equivalents	( ( ( (	39,186) 39,186) 39,186) 39,186) 39,186)
Increase in cash and cash equivalents Increase in cash and cash equivalents Increase Increase in cash and Increase in cash and cash equivalents cash and cash equivalents equivalents		734,340 734,340 734,340 734,340 734,340
Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents,
beginning of period beginning of period beginning of period of period period		269,294 269,294 269,294 269,294 269,294
Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents, Cash and cash equivalents,
end of period end of period end of period of period	\$ \$ \$ \$	1,003,634 1,003,634 1,003,634 1,003,634

(4) Foreign currency translation (4) Foreign currency translation (4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency. Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency. (4) Foreign translationItems included in the financial statements of each of the measured using the currency of the primary economic in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency. currency of the primary economic environment in which the entity operates (the "functionalcurrency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency.

• A. Foreign currency transactions and balances A. Foreign currency transactions and balances A. Foreign currency transactions and balances A. Foreign currency transactions and balances A. Foreign currency transactions and balances
• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. (a) Foreign currency are translated into the functional currency using the exchange rates prevailing dates of transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash hedges and qualifying net investment hedges. (a) Foreign currency are translated into the functional currency using the exchange rates prevailing the dates of transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash hedges and qualifying net investment hedges. (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss. (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss. (b) Monetary assets and liabilities denominated inforeign currencies at the period end retranslated at the exchange rates prevailing at the balance sheet date. Exchange differencesarising at the balance sheet date are recognised in profit or loss. (b) Monetary assets and liabilities denominated inforeign currencies at the period end retranslated at the exchange rates prevailing at the balance sheet date. Exchange differencesarising at the balancesheet date are in profit or loss.(c) Non-monetary assets denominated in foreign currencies held at fair value (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair valuethrough profit or re-translated at the exchange rates prevailing at sheet date; their translation differences are recognised profit or loss. Non-monetary assets liabilities denominated in foreign currencies held at fair value through income are re-translated at the exchange rates prevailing at the balance sheet date; translation differences are recognised in other comprehensive income. However, non-monetary assets andliabilities denominated in foreign currencies that are not measured at fair value are translatedusing the historical exchange rates at the dates of the initial transactions. of period 1,003,634~29~(4) Foreign currency translationItems included in financial statements of each of the Group's entities are measured using the through profit or loss re-translated at the exchange rates prevailing at the date; their translation differences are recognised profit or loss. Non-monetary assets and liabilities denominated in currencies held at fair value through income are re-translated at the exchange rates prevailing at the balance sheet date; translationdifferences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured fair value are translatedusing the historical exchange rates at the dates of the initial transactions. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) other foreign exchange gains and losses based on the nature of are presented in the statement of comprehensive income within 'other and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) other foreign exchange gains and losses on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. in the comprehensive income within 'other gains and losses'.B. operations (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'. presented in the statement of comprehensive income within 'other gains and losses'. (d) All other foreign and lossesbased on the nature of those transactions arepresented in the statement comprehensive income within 'other gains and losses'.B. Translation foreign (d) other foreign exchange gains and losseson the nature of arepresented in the statement of comprehensive income within 'other and losses'.

• B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations B. Translation of foreign operations
• (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: B. Translation of foreign operations(a) The operating results and financial position of all the entities and associates that have a functional currency different the presentation currency are translated into the presentationcurrency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: B. Translation of foreign operations(a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: The operating results and financial position the entities and afunctional currency the currency translated into the presentationfollows:i. Assets for each balance sheet presented translated at the exchange (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) The operating results and financial position of all the group entities and a functional currency from the presentation currency are translated into the presentation currency as follows: (a) The operating results and position the group entities and associates have acurrency different from the presentation currency are into the presentation B. Translation of foreign operations(a) The operating results and financial position of all the entities and that have a functional currency the presentation currency are translated into the presentationcurrency as follows:
• i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange at the date of that balance i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; rate at the date that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; i. Assets and liabilities for each balance sheet presented are translated at the exchange rate at the date of balance sheet; as follows:i. Assets and liabilities for each sheet presented are at the closing exchange rate at the balance sheet;
• ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at averageexchange rates and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and i. Assets and liabilities for each balance sheet presented are translated at the closing exchangerate at the date of that balance ii. Income and expenses each statement of income are translated at averageexchange rates of that period; andiii. All exchange differences are in other comprehensive income. ii. and expenses for each statement of comprehensive income average exchange rates of and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and Income and expenses for each statement of comprehensive income at average rates of that period; and i. Assets and liabilities for each balance presented are translated the closing exchangeat the date of that balance ii. Income and expenses for each statement of comprehensive income are translated at averageexchange rates andiii. All resulting exchange differences are recognised in other comprehensive (b) the foreign operation sold is an associate, exchange differences
• iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange differences are recognised in other comprehensive income. iii. All resulting exchange are recognised in other comprehensive income.
• (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. iii. All exchange differences are in other comprehensive income.(b) the foreign operation partially disposed or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit orloss part of the gain or loss sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreignassociate, transactions should be accounted for as disposal of all interest in foreignoperations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit orloss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losingsignificant influence over the former foreign associate, such transactions be accounted for as disposal of all interest in these foreign operations. iii. All resulting exchange are recognised in other comprehensive income.(b) When the foreign operation partially disposedis an associate, exchange were in comprehensive income reclassified to profit loss as part the gain loss on sale. In addition, even the Group partial interestthe former foreign after losing significant over the former foreignassociate, such transactions should be accounted for as disposal all interest in these foreignthe operation disposed of sold a subsidiary, cumulative exchange (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. iii. All resulting exchange are recognised in other comprehensive income.When the foreign operation partially disposedof is an associate, exchange differencesthat were in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even the Group retains partial interestin the former foreign after losing significant over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations. (b) When the operation partially disposedof or an associate, exchange differenceswere recorded in other comprehensive income are proportionately reclassified to loss as part the gain loss on sale. addition, even the Group partial interestformer foreign after losing significant influence the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign that were in other comprehensive income are proportionately reclassified to profit orloss part of the gain or loss sale. In addition, even when the Group retains partial interest in the former foreign associate after losingsignificant influence over the foreignassociate, transactions should be accounted for disposal of all interest in foreignoperations.
• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in subsidiary after losing control of former foreignsubsidiary, such transactions should be for as disposal of all interest in the foreignoperation.(5) Classification of current and non-current items (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this In addition, when the Group retains partial interest in subsidiary after losing control of foreignsubsidiary, such transactions should be for as disposal of all interest in foreignoperation. ~30~(d) All other foreign exchange gains losses based on the nature of transactions are were recorded in other comprehensive income are proportionately transferrednon-controlling this foreign operation. In addition, even when Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions be accounted for as disposal of all interest in the foreign (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. ~30~(d) All other foreign exchange gains and losses based on the nature those transactions are (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferredto the non-controlling in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. operations.(c) When foreign operation disposed of or sold is a subsidiary, cumulative exchangethat were recorded in other comprehensive income are to in this foreign operation. In addition, even when the Groupretains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation. (c) When the foreign operation partially disposed sold is a subsidiary, cumulative exchangedifferences that were other comprehensive are proportionately transferredto the non-controlling interest in this foreign operation. In addition, even when the Groupretains interest in foreign subsidiary after losing control of former foreignsubsidiary, such transactions should be accounted for as disposal of all interest in foreignoperation.of current and (c) Liabilities are to be settled within months from the balance sheet exchange gains in the B. operating results financial position functional currency into follows:balance translated exchangethe statement iii. foreign that were in other to profit In the significant the for cumulative are proportionately transferredinterest after losing all interest of Assets of operating activities within the operating cycle;from the restricted settle liabilities than twelve B. be balance
• (5) Classification of current and non-current items (5) Classification of current and non-current items (5) Classification of current and non-current items (5) Classification of current and non-current items (5) Classification of current and non-current items (5) Classification of current and non-current items Classification of current and (5) Classification of current and non-current items (5) Classification of current and non-current items (5) Classification of current and non-current items
• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they areclassified as non-current assets: operation.(5) Classification of and non-current itemsA. that of the following criteria are as current they are A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: A. Assets that meet one of the following criteria are as current assets; otherwise they are classified assets: (5) Classification and non-current itemsthat meet one of the following criteria are as current assets; otherwise they are A. Assets that of the following criteria classified as current assets; otherwise they non-current assets:
• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that to be realised, or are intended to be sold or consumed within the normal operating cycle; classified assets:Assets operating activities that are expected to realised, or intended to beconsumed within the operating cycle;Assets held mainly for trading purposes; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle; (a) Assets from operating activities that are expected to be or are intended to be sold or consumed within the normal operating cycle;(b) Assets held mainly for trading purposes; classified assets:(a) Assets from operating activities that are expected to be realised, or intended to beconsumed within the operating cycle;(b) Assets held mainly for trading purposes;(c) Assets are expected to be realised within twelve months from the balance sheet date; (a) Assets arising from operating activities that to be realised, or are intended be sold or consumed within the normal operating cycle;
• (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly purposes; (b) Assets held mainly for trading purposes; (b) Assets held mainly for trading purposes;
• (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date;(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date;(d) equivalents, excluding restricted cash and cash equivalents and those that are to (c) Assets are expected to be realised within months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets that are expected to be realised within twelve months from the balance sheet date; (c) Assets are expected to be realised within months from the balance sheet date; (b) Assets held mainly (c) Assets that are expected to realised within months from the balance sheet date;(d) Cash equivalents, excluding restricted equivalents and those that are to
• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, restricted cash and cash equivalents those that are tobe exchanged or used to settle liabilities more than months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, restricted cash and cash equivalents are tobe exchanged or used to settle liabilities more than twelve months after the balance sheet date. (d) Cash and cash equivalents, restricted cash equivalents that are tobe exchanged or used to settle liabilities more than months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: be exchanged to settle liabilities more than twelve months after the balance sheet date.B. Liabilities that meet one of the following criteria are as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: be exchanged or used to settle liabilities more than twelve months the balance sheet date.B. Liabilities that meet one of the following criteria as current liabilities; otherwise they are classified liabilities: B. that one of the following criteria are classified as current liabilities; otherwise theyare classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: B. Liabilities that one of the following criteria are classified as current liabilities; otherwise theyare classified as non-current liabilities: B. Liabilities that one of the following criteria are classified as current liabilities; otherwise theyare classified as non-current liabilities:(a) Liabilities that are expected to be settled within the operating cycle;(b) Liabilities arising mainly from trading activities;(c) Liabilities that are to be settled within twelve months from the balance sheet date; be exchanged to settle liabilities more than twelve months after the balance sheet B. Liabilities that meet of the following criteria are as current liabilities; otherwise they are classified (a) Liabilities are expected to be settled within the normal operating cycle;

  • (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities are expected to be settled the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle; (a) Liabilities that are expected to be settled within the normal operating cycle;
  • (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; Liabilities arising mainly from activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; (b) Liabilities arising mainly from trading activities; Liabilities arising mainly from activities;
  • (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date;~30~ (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities are to be settled within twelve months from the balance sheet date; (a) Liabilities that are expected to be settled within the operating cycle;(b) Liabilities arising mainly from trading activities;(c) Liabilities that are to be settled within months from the balance sheet date;~30~ (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within twelve months from the balance sheet date; (c) Liabilities that are to be settled within months from the balance sheet date;~30~

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. (d) Liabilities for which the repayment cannot be extended unconditionally to more thantwelve months after Terms of a liability that the option of thecounterparty, result in its settlement by the issue equity instruments do not affect its classification. (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. (d) Liabilities which the repayment date be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. counterparty, result settlement by the issue of equity instruments do not affect itsclassification.(6) Cash equivalents Liabilities for which the repayment date be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at of thecounterparty, result in its settlement by the issue of equity do not affect its classification.equivalentsCash equivalents refer to short-term, highly investments that are readily convertible to known

• (6) Cash equivalents (6) Cash equivalents equivalents (6) Cash equivalents (6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with original maturities of one year or less that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. (6) Cash equivalentsCash equivalents refer to short-term, highly liquid investments that are readily convertible to knownamounts of cash and which are subject to an insignificant risk of changes in value. Time deposits withoriginal maturities of one year or less that meet the definition above and are held for purpose of meeting short-term cash commitments in operations are classified as cash equivalents. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with original maturities of one year or less that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. equivalents refer to highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes value. Time deposits with original maturities of year or less that meet the definition above and for the purpose ofmeeting short-term cash commitments in operations are classified as cash equivalents. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with original maturities of one year or less that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with original maturities of one year or less that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. Cash equivalents refer to short-term, highly investments are readily to knownamounts of and are subject to an insignificant risk of changes in value. Time withoriginal maturities of one year or less that the and are held for of meeting short-term cash commitments in operations are classified cash equivalents.(7) Financial at fair value through profit or loss amounts of cash and which are subject an insignificant risk of changes value. Time deposits with original maturities of one or less that meet the definition above and for the purpose ofmeeting short-term cash commitments in operations are classified as cash equivalents.(7) Financial assets at fair value profit lossA. Financial at fair value through profit loss are financial held for trading or financial

• (7) Financial assets at fair value through profit or loss (7) Financial assets at fair value through profit or loss Financial assets at fair through profit loss (7) Financial assets at fair value through profit or loss (7) Financial assets at fair value through profit or loss
• A. Financial assets at fair value through profit or loss are financial assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition: (7) Financial assets at fair value through profit or lossA. Financial assets at fair value through profit or lossare financial assets held for trading or financial assets designated as fair value through profit or loss on initial recognition. Financial assets are classified in category of held for trading ifacquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. assets that meet one of criteria are designated as at fair value through loss on initial recognition: A. Financial assets at fair value through profit or loss are financial assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition: A. Financial assets at fair value through profit or loss are assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets areclassified in this category of held for trading if acquired principally for the purpose of selling theshort-term. Derivatives are also categorized as financial assets held for trading unless they aredesignated as hedges. Financial assets that meet one of the following criteria are designated as at fair through profit or loss initial recognition: A. Financial assets at fair value through profit or loss are financial assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition: A. Financial assets at fair value through profit or loss are financial assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition: ~31~Liabilities for which the repayment cannot be to more thantwelve months after Terms a liability that at the option of the A. Financial assets at fair profit or lossare financial assets held for trading assets designated as at value through profit or loss on initial assets are of held for trading ifprincipally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets for trading unless they are designated as hedges. assets that meet one of the criteria designated as atfair value through profit or loss on initial (a) (combined) contracts; (b) They eliminate a recognition inconsistency; assets designated as at fair value or loss on initial assets areclassified in this category of held for trading if principally for the purpose of selling theshort-term. Derivatives are categorized as financial assets held for trading unless they aredesignated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit loss
• (a) Hybrid (combined) contracts; or Hybrid (combined) contracts; or (a) Hybrid (combined) contracts; or (a) Hybrid (combined) contracts; or (a) Hybrid (combined) contracts; or (a) Hybrid (combined) contracts; or
• (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or (b) They eliminate a measurement or recognition inconsistency; or (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or
• (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. (c) They are managed and their performance on a fair value basis, in accordance with (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or(c) are managed and their performance is evaluated on a fair value basis, in accordance witha documented management or investment strategy. (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. (c) They are managed and their performance is a fair basis, in with (a) Hybrid (combined) contracts; orThey eliminate or significantly reduce a measurement or recognition inconsistency; or(c) They are managed and their performance is evaluated on a basis, in accordance witha documented management or investment
• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. a documented risk management or investment strategy.B. On a regular purchase or sale basis, financial assets at fair value through profit or loss are and derecognised using trade date accounting. B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, at fair profit or loss arerecognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting. a documented risk management or investment strategy.B. On a regular purchase sale basis, financial assets at fair value through profit or loss are On a regular way purchase or sale assets at fair value through profit or loss areand derecognised accounting.assets at fair value profit or loss are recognised at fair value. Related
• C. Financial assets at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in profit or loss. C. Financial assets at fair value through profit or loss are initially recognised at Relatedtransaction costs or loss. These financial assets aresubsequently remeasuredand stated at fair value, and any changes in fair value financial assets are recognisedin profit or loss. C. Financial assets at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in profit or loss. C. Financial assets at fair value through profit or loss recognised at fair value. Related costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets recognised in profit loss. C. Financial assets at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in profit or loss. C. Financial assets at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in profit or loss. recognised and derecognised using date accounting.C. Financial assets at fair value through profit or loss are initially recognised at fair value. Relatedtransaction costs are expensed in profit or financial assets are remeasuredand stated at value, and any in the fair value of financial assets are recognised costs expensed in or loss. These financial assets aresubsequently remeasured and stated at fair value, and any in the of these financial in profit loss.A. Available-for-sale financial assets are non-derivatives that are either designated in this category
• (8) Available-for-sale financial assets (8) Available-for-sale financial assets (8) Available-for-sale financial assets (8) Available-for-sale financial assets (8) Available-for-sale financial assets
• A. Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. A. financial assets are non-derivatives that are in this category not classified in any the other categories. A. Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. A. Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. A. Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. A. Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. in profit or loss.(8) Available-for-sale financial assetsA. financial assets are non-derivatives that are categoryor not classified in any the other categories.B. a regular way purchase or sale basis, available-for-sale financial assets are recognised andderecognised using accounting. not classified in any of the other categories.
• B. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and derecognised using trade date accounting. B. a regular way purchase or sale basis, financial assets recognised andderecognised using trade date accounting. B. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and B. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or basis, available-for-sale financial assets are recognised and
• C. Available-for-sale financial assets are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are presented in 'financial assets carried at cost'. C. Available-for-sale financial assets are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in fair value of these financial assets are in other comprehensive income. Investments inequity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are in 'financial assets carried at cost'.~31~ C. Available-for-sale financial assets are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are presented in 'financial assets carried at cost'. derecognised using trade date accounting.C. Available-for-sale financial assets are initially recognised at value plus costs. Thesefinancial assets are subsequently remeasured and stated value, and any changes in the fairvalue of these financial assets are recognised other comprehensive income. Investments in equity instruments that do market price in an active market and whose fair cannot be reliably measured are presented in 'financial assets carried at cost'. C. Available-for-sale financial assets are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are presented in 'financial assets carried at cost'. C. Available-for-sale financial assets are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are presented in 'financial assets carried at cost'. C. Available-for-sale financial assets initially recognised at fair value plus transaction costs. These financial assets remeasured and stated at fair value, and any in the fair value of these financial assets are in other comprehensive income. Investments inequity instruments that do not have a quoted market price and whose fair value cannot be reliably are in carried at cost'.~31~ derecognised using trade date accounting.C. Available-for-sale financial assets are initially recognised value plus costs. Thesefinancial assets are subsequently remeasured and stated fair value, and any changes in fairvalue of these financial assets are recognisedin other comprehensive Investments in equity instruments that do not have a quoted price in an active market and whose valuebe reliably measured are presentedin assets carried at cost'.

(9) Held-to-maturity financial assets (9) Held-to-maturity financial assets (9) Held-to-maturity financial assets (9) Held-to-maturity financial assets (9) Held-to-maturity financial assets

• A. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive intention and ability to hold to maturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition. A. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive intention and ability to hold to maturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition. A. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive intention and ability to hold to maturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition. A. Held-to-maturity financial assets are financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive intention tomaturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition. A. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive intention and ability to hold to maturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition. financial assetsA. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinablepayments fixed maturity date that the Group has the positive intention and ability to hold to maturity other than those meet the definition of loans and receivables and those that designated as at fair through profit loss or recognition.
• B. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised and derecognised using trade date accounting. B. On a regular way purchase or sale basis, held-to-maturity financial assets are recognised and derecognised using trade date accounting.
• C. Held-to-maturity financial assets are initially recognised at fair value on the trade date plus transaction costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Amortisation of a premium or a discount on such assets is recognised in profit or loss. C. Held-to-maturity financial assets are initially recognised at fair value on the trade date plus transaction costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Amortisation of a premium or a discount on such assets is recognised in profit or loss. C. Held-to-maturity financial assets are initially recognised at fair value on the trade date plus transaction costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Amortisation of a premium or a discount on such assets is recognised in profit or loss. C. Held-to-maturity financial assets are initially recognised at fair value on the trade date plus transaction costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Amortisation of a premium or a discount on such assets is recognised in profit or loss. C. Held-to-maturity financial assets are initially recognised at fair value on the trade date plus transaction costs and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Amortisation of a premium or a discount on such assets is recognised in profit or loss. B. On regular way purchase or sale basis, held-to-maturity financial assets are recognised andderecognised using trade date accounting.C. Held-to-maturity financial assets are initially recognised at value on the trade date transaction costs subsequently measured at using the less provision Amortisation of a premium or a discount on assets recognised in profit or loss.and other receivables
• (10) Notes, accounts and other receivables (10) Notes, accounts and other receivables (10) Notes, accounts and other receivables (10) Notes, accounts and other receivables (10) Notes, accounts and other receivables

Notes and accounts receivable are claims resulting from the sale of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial. Notes and accounts receivable are claims resulting from the sale of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial. Notes and accounts receivable are claims resulting from the sale of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial. and accounts receivable are claims resulting from of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. accounts and other receivables are recognised initially at fair value and subsequentlyamortised cost the effective interest method, less provision for impairment.However, short-term accounts receivable without bearing are subsequently measured at effect of Notes and accounts receivable are claims resulting from the sale of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial. Notes and accounts receivable claims resultingfrom the sale of Receivablesarising from transactions other than the sale goods services are classified other Notes, accounts and other receivables are recognised initially at fair and measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts without bearing interest are subsequently measured atinitial invoice amount as effect of discounting is immaterial.

(11) Impairment of financial assets (11) Impairment of financial assets (11) Impairment of financial assets (11) Impairment of financial assets (11) Impairment of financial assets

• A. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. A. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. A. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The Group assesses at each balance sheet date whether there is objective that a financial asset or group of financial assets is impaired as a result of or more events that occurred afterthe recognition of the (a 'loss and that loss event (or events) has an impact onthe estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. A. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. of financial A. The Group assesses at each balance sheet date whether there is objective evidence that a or a group of financial assets is impaired as a result of one or more events that occurred the initial recognition the asset (a 'loss event') and that loss event events) has an impact the estimated future cash of the financial asset or group of financial assets that can bereliably estimated.B. The criteria that to determine there is objective evidence of an impairment
• B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows: B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows: B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows: criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows: B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows:
• (a) Significant financial difficulty of the issuer or debtor; (a) Significant financial difficulty of the issuer or debtor; (a) Significant financial difficulty of the issuer or debtor; (a) Significant financial difficulty of the issuer or debtor; (a) Significant financial difficulty of the issuer or debtor;
• (b) A breach of contract, such as a default or delinquency in interest or principal payments; (b) A breach of contract, such as a default or delinquency in interest or principal payments; (b) A breach of contract, such as a default or delinquency in interest or principal payments; (b) contract, such as a default delinquency in interest or principal payments; (b) A breach of contract, such as a default or delinquency in interest or principal payments; loss is as follows:(a) Significant difficulty of the (b) A breach of contract, as a default or delinquency in interest principal payments;(c) The Group, for legal reasons relating to the borrower's financial
• (c) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider; (c) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider; (c) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider; (c) The for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider; (c) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider;
• (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; (d) It becomes probable that the will enter bankruptcy or other financial reorganisation; (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; the a concession a not otherwise consider;the borrower will bankruptcy or other reorganisation;The disappearance active market for that financial asset because of financial difficulties;(f) Observable data indicating that there a measurable decrease in the estimated future cash
• (e) The disappearance of an active market for that financial asset because of financial difficulties; (e) The disappearance of an active market for that financial asset because of financial difficulties; (e) The disappearance of an active market for that financial asset because of financial difficulties; (e) The disappearance of an active market for of financial difficulties; (e) The disappearance of an active market for that financial asset because of financial difficulties;

• (f) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group; (f) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group; (f) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group; (f) Observable data indicating that there is a measurable decrease in the estimated future cashflows from a group of assets since the initial recognition of those assets, although the cannot yet identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions with defaults on the in the group;~32~ (f) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group; flows a group of financial assets since the recognition of althoughthe decrease cannot yet be identified with the individual financial the group, includingadverse changes the status of borrowers in the group or national or economicconditions that correlate with defaults on the assets in the group;

• (g) Information about significant changes with an adverse effect that have taken place in the technology, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in the equity instrument may not be recovered; or

• (h) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.
• C. When the Group assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made as follows according to the category of financial assets:
• (a) Financial assets measured at cost

The amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at current market return rate of similar financial assets, and is recognised in profit or loss. Impairment loss recognised for this category shall not be reversed subsequently. Impairment loss is recognised by adjusting the carrying amount of the asset through the use of an impairment allowance account.

(b) Available-for-sale financial assets

The amount of the impairment loss is measured as the difference between the asset's acquisition cost (less any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, and is reclassified from 'other comprehensive income' to 'profit or loss'. If, in a subsequent period, the fair value of an investment in a debt instrument increases, and the increase can be related objectively to an event occurring after the impairment loss was recognised, such impairment loss is reversed through profit or loss. Impairment loss of an investment in an equity instrument recognised in profit or loss shall not be reversed through profit or loss. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

(12) Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive cash flows from the financial asset expire.
• B. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.
• C. The contractual rights to receive cash flows from the financial asset have been transferred; however, the Group has not retained control of the financial asset.

(13) Leases (lessor)

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Inventories

Inventories refer to fuel inventories and steel inventories. Fuel inventories are physically measured by the crew of each ship and reported back to the Head Office through telegraph for recording purposes at balance sheet date. Valuation of inventories is based on the exchange rate prevailing at balance sheet date.

The perpetual inventory system is adopted for steel inventory recognition. Steel inventories are stated at cost. The cost is determined using the weighted-average method. At the end of period, inventories are evaluated at the lower of cost or net realisable value, and the individual item approach is used in the comparison of cost and net realisable value. The calculation of net realisable value should be based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.

(15) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.
• B. The Group's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
• C. When changes in an associate's equity that are not recognised in profit or loss or other comprehensive income of the associate and such changes not affecting the Group's ownership percentage of the associate, the Group recognises the Group's share of change in equity of the associate in 'capital surplus' in proportion to its ownership.
• D. Unrealised gains and loss on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for using equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group's ownership percentage of the associate, in addition to the above adjustment, the amounts previously

recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.
• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
• H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it still retains significant influence over this associate, then the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.
• (16) Property, plant and equipment
• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
• B. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
• D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings	20 ~ 135 years
Loading and unloading equipment	2 ~ 20 years
Ships	18 ~ 25 years
Transportation equipment	6 ~ 10 years
Lease assets	3 ~ 90 years
Other equipment	2 ~ 15 years

• (17) Leased assets/ operating leases (lessee)
• A. Based on the terms of a lease contract, a lease is classified as a finance lease if the Group assumes substantially all the risks and rewards incidental to ownership of the leased asset.
  • (a) A finance lease is recognised as an asset and a liability at the lease's commencement at the lower of the fair value of the leased asset or the present value of the minimum lease payments.
  • (b) The minimum lease payments are apportioned between the finance charges and the reduction of the outstanding liability. The finance charges are allocated to each period over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
  • (c) Property, plant and equipment held under finance leases are depreciated over their estimated useful lives. If there is no reasonable certainty that the Group will obtain ownership at the end of the lease, the asset shall be depreciated over the shorter of the lease term and its useful life.
• B. Payments made under an operating lease (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the lease term.
• C. The accounting treatment of sale and leaseback transactions depends on the substance of the transaction. If sale and finance leaseback is in substance a financing transaction, the difference between the sales proceeds and the carrying value of the asset is deferred and amortised to the income statement over the lease term. If the sale price is below the fair value, the difference between sale price and carrying amount should be recognised immediately except that, if a loss arising is compensated by future rent at below market price, it should be deferred and amortised in proportion to the rent payments over the period for which the asset is expected to be used. If the sale price is above the fair value, the excess of proceeds over fair value should be deferred and amortised over the period for which the asset is expected to be used.
• (18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 20 ~ 60 years.

(19) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 years.

(20) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(21) Borrowings

• A. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.
• B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
• (22) Accounts payable

Accounts payable are obligations to pay for goods orservices that have been acquired in the ordinary course of business from suppliers. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial.

(23) Financial liabilities at fair value through profit or loss

A. Financial liabilities at fair value through profit or loss are financial liabilities held for trading or financial liabilities designated as at fair value through profit or loss on initial recognition. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition:

• (a) Hybrid (combined) contracts; or
• (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or
• (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.
• B. Financial liabilities at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial liabilities are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial liabilities

are recognised in profit or loss. Derivative liabilities that are linked to equity instruments which do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and that must be settled by delivery of such unquoted equity instruments are presented in 'financial liabilities measured at cost'.

(24) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(25) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

• (26) Financial liabilities and equity instruments
• A. Ordinary corporate bonds issued by the Group are initially recognised at fair value, net of transaction costs incurred. Ordinary corporate bonds are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortised in profit or loss as an adjustment to the 'finance costs' over the period of bond circulation using the effective interest method.
• B. Convertible corporate bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group's common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Group classifies the bonds payable and derivative features embedded in convertible corporate bonds on initial recognition as a financial asset, a financial liability or an equity instrument. Convertible corporate bonds are accounted for as follows:
  • (a) Call options and put options embedded in convertible corporate bonds are recognised initially at net fair value as 'financial assets or financial liabilities at fair value through profit or loss'. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as 'gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss'.
  • (b) Bonds payable of convertible corporate bonds is initially recognised at fair value and subsequently stated at amortised cost. Any difference between the proceeds and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortised in profit or loss as an adjustment to the 'finance costs' over the period of bond circulation using the effective interest method.
  • (c) Conversion options embedded in convertible corporate bonds issued by the Group, which meet the definition of an equity instrument, are initially recognised in 'capital surplus—stock

warrants' at the residual amount of total issue price less amounts of 'financial assets or financial liabilities at fair value through profit or loss' and 'bonds payable—net' as stated above. Conversion options are not subsequently remeasured.

• (d) Any transaction costs directly attributable to the issuance of convertible corporate bonds are allocated to the liability and equity components in proportion to the allocation of proceeds.
• (e) When bondholders exercise conversion options, the liability component of the bonds (including 'bonds payable' and 'financial assets or financial liabilities at fair value through profit or loss') shall be remeasured on the conversion date. The book value of common shares issued due to the conversion shall be based on the adjusted book value of the abovementioned liability component plus the book value of capital surplus - share options.
• (27) Derivative financial instruments and hedging activities
• A. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Any changes in the fair value are recognised in profit or loss.
• B. The Group designates certain derivatives as hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge).
• C. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
• D. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as current assets or liabilities.
• E. Cash flow hedge
  • (a) The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the statement of comprehensive income within 'other gains and losses'.
  • (b) Amounts accumulated in other comprehensive income are reclassified into profit or loss in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in the statement of comprehensive income within 'finance costs'. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or financial liability, the gains and losses previously deferred in other comprehensive income are reclassified into profit or loss in the periods when the asset acquired or the liability assumed affects profit or loss. The deferred amounts are ultimately recognised in operating costs.

(c) When a hedging instrument expires, or is sold, cancelled or executed, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income. When a forecast transaction occurs or is no longer expected to occur, the cumulative gain or loss that was reported in other comprehensive income is transferred to profit or loss in the periods when the hedged forecast cash flow affects profit or loss.

(28) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plans
• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past service costs. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.
• ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.
• iii. Past service costs are recognised immediately in profit or loss.
• C. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises termination benefits when it is demonstrably committed to a termination, when it has a detailed formal plan to terminate the employment of current employees and when it can no longer withdraw the plan. In the case of an offer made by the Group to encourage voluntary termination of employment, the termination benefits are recognised as expenses only when it is probable that the employees are expected to accept the offer and the number of the employees taking the offer can be reliably estimated. Benefits falling due more than 12 months after balance sheet date are discounted to their present value.

D. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(29) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
• C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet

date, unrecognised and recognised deferred income tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.
• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(30) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are approved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(31) Revenue recognition

A. Sales of goods

Revenue is measured at the fair value of the consideration received or receivable taking into account of business tax, returns, rebates and discounts for the sale of goods to external customers in the ordinary course of the Group's activities. Revenue arising from the sales of goods is recognised when the Group has delivered the goods to the customer, the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity. The delivery of goods is completed when the significant risks and rewards of ownership have been transferred to the customer, the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied.

B. Sales of services

Revenue from delivering services is recognised under the percentage-of-completion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognised only to the extent that contract costs incurred are likely to be recoverable.

(32) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Chief Operating Decision-Maker is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

Financial assets—impairment of equity investments

The Group follows the guidance of IAS 39 to determine whether a financial asset—equity investment is impaired. This determination requires significant judgement. In making this judgement, the Group evaluates, among other factors, the duration and extent to which the fair value of an equity investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.

If the decline of the fair value of an individual equity investment below cost was considered significant or prolonged, the Group would transfer the accumulated fair value adjustments recognised in other comprehensive income on the impaired available-for-sale financial assets to profit or loss or being the recognition of the impairment loss on the impaired financial assets measured at cost in profit or loss.

• (2) Critical accounting estimates and assumptions
• A. Revenue recognition

Revenue from delivering services and related costs are recognised under the percentage-ofcompletion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed.

B. Impairment assessment of tangible and intangible assets (excluding goodwill)

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilized and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

As of December 31, 2017, the Group had property, plant, equipment and intangible assets amounting to \$97,687,454 and \$159,667, respectively.

C. Impairment assessment of investments accounted for using equity method

The Group assesses the impairment of an investment accounted for using equity method as soon as there is any indication that it might have been impaired and its carrying amount cannot be recovered. The Group assesses the recoverable amounts of an investment accounted for using equity method based on the present value of the Group's share of expected future cash flows of the investee, and analyzes the reasonableness of related assumptions.

D. Financial assets—fair value measurement of unlisted stocks without active market The fair value of unlisted stocks held by the Group that are not traded in an active market is determined considering those companies' recent funding raising activities, fair value assessment of other companies of the same type, market conditions and other economic indicators existing on balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the financial instruments fair value information.

As of December 31, 2017, the carrying amount of unlisted stocks without active market was \$1,137,645.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2017			December 31, 2016
Cash on hand and petty cash	\$	20,739	\$	17,294
Checking accounts and
demand deposits		6,300,219		5,625,604
Time deposits		31,787,305		28,770,551
	\$	38,108,263	\$	34,413,449

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. The Group's maximum exposure to credit risk at balance sheet date is the carrying amount of all cash and cash equivalents.
• B. The Group has no cash and cash equivalents pledged to others.
• (2) Available-for-sale financial assets

Items	December	31, 2017	December 31, 2016
Non-current items:
Listed (TSE and OTC) stocks	\$	631,039	\$	1,023,088
Emerging stocks		-		-
Unlisted stocks		205,227		266,779
		836,266		1,289,867
Valuation adjustment		1,446,353		1,404,959
	\$	2,282,619	\$	2,694,826

• A. The Group recognised \$41,394 and \$124,684 in other comprehensive income for fair value change for the years ended December 31, 2017 and 2016, respectively.
• B. The Company originally owned the emerging stock of Taiwan High Speed Rail Corporation which was first publicly traded on October 27, 2016. However, for the year ended December 31, 2015, the Company assessed that there had been objective evidence of impairment given that the market price of the shares continuously fell. As of December 31, 2017, the Company has recognized \$189,091 as impairment loss.
• C. The Group recognised impairment loss of \$3,065 on unlisted stocks.
• D. The Group has no available-for-sale assets pledged to others.
• (3) Held-to-maturity financial assets

Items	December 31, 2017	December 31, 2016
Current items: Financial bonds	\$ -	\$ 170,000
Non-current items: Financial bonds	\$ 100,000	\$ 50,000

A. The Group recognised interest income of \$2,339 and \$8,197 for amortised cost in profit or loss for the years ended December 31, 2017 and 2016, respectively.

B. The counterparties of the Group's investments have good credit quality.

C. The Group has no held-to-maturity financial assets held by the Group pledged to others.

(4) Accounts receivable, net

	31, 2017	December 31, 2016
\$	13,072,332	11,671,670
(	96,283) (	99,075)
\$	12,976,049	11,572,595
		December \$ \$

A. The credit quality of accounts receivable that were neither past due nor impaired was in the following categories based on the Group's credit quality control policy.

	December 31, 2017	December 31, 2016
Group 1	\$ 1,438,533	\$ 1,284,920
Group 2	9,514,967	8,806,443
	\$ 10,953,500	\$ 10,091,363

Note:

Group 1: Low risk: The Group's ten largest customers, with sound performance and high transparency of financial information, are approved based on the Group's credit quality control policy.

Group 2: General risk. Group 2: General risk. Group 2: General risk. Group 2: General risk.

B. The ageing analysis of accounts receivable that were past due but not impaired is as follows: B. The ageing analysis of accounts receivable that were past due but not impaired is as follows: B. The ageing analysis of accounts receivable that were past due but not impaired is as follows: The ageing analysis of accounts receivable that were past due but not impaired follows:

	December December December	December 31, 31, 31, 31, 2017 2017 2017 2017	December December December December 31, 31, 31, 31, 2016 2016 2016 2016
Up Up Up Up to to to 30 30 30 days days days days	\$ \$ \$ \$	1,749,509 1,749,509 1,749,509 1,749,509	\$ \$ \$	1,232,006 1,232,006 1,232,006 1,232,006
31 31 31 31 to to to to 180 180 180 180 days days days days		273,040 273,040 273,040 273,040		249,226 249,226 249,226 249,226
	\$ \$ \$ \$	2,022,549 2,022,549 2,022,549 2,022,549	\$ \$ \$ \$	1,481,232 1,481,232 1,481,232 1,481,232

The above ageing analysis was based on past due date. The above ageing analysis was based on past due date. The above ageing analysis was based on past due date. The above ageing analysis was based on past due date.

• C. Movement analysis of financial assets that were impaired is as follows: C. Movement analysis of financial assets that were impaired is as follows: C. Movement analysis of financial assets that were impaired is as follows: analysis of financial assets that were impaired is as follows:
• (a)As of December 31, 2017 and 2016, the Group's accounts receivable that were impaired amounted to \$96,283 and \$99,075 respectively. (a)As of December 31, 2017 and 2016, the Group's accounts receivable that were impaired amounted to \$96,283 and \$99,075 respectively. (a)As of December 31, 2017 and 2016, the Group's accounts receivable that were impaired amounted to \$96,283 and \$99,075 respectively. (a)As of December 31, 2017 and 2016, the Group's accounts receivable that were impaired to \$96,283 and \$99,075 respectively.
• (b)Movements on the Group provision for impairment of accounts receivable are as follows: (b)Movements on the Group provision for impairment of accounts receivable are as follows: (b)Movements on the Group provision for impairment of accounts receivable are as follows: (b)Movements on the Group provision impairment of accounts receivable are as follows:

			2017 2017 2017 2017
	Individual Individual Individual Individual	provision provision provision provision	Group Group Group	provision provision provision provision		Total Total Total Total
At At At At January January January January 1 1 1	(\$ (\$ (\$ (\$	99,075) 99,075) 99,075) 99,075)	\$ \$ \$	- - - -	(\$ (\$ (\$ (\$	99,075) 99,075) 99,075) 99,075)
Provision Provision Provision Provision Provision for for for for for impairment impairment impairment impairment	( ( ( (	21,646) 21,646) 21,646) 21,646)		- - - - - (	( (	21,646) 21,646) 21,646) 21,646)
Reversal Reversal Reversal Reversal of of of of impairment impairment impairment impairment		18,569 18,569 18,569 18,569 18,569		- - - -		18,569 18,569 18,569 18,569
Write-offs Write-offs Write-offs Write-offs during during during during the the the the period period period period		3,490 3,490 3,490 3,490 3,490		- - - -		3,490 3,490 3,490 3,490
Net Net Net Net exchange exchange exchange exchange differences differences differences differences		2,379 2,379 2,379 2,379		- - - -		2,379 2,379 2,379 2,379
At At At At December December December December 31 31 31 31	(\$ (\$ (\$ (\$	96,283) 96,283) 96,283) 96,283)	\$ \$ \$ \$	- - - -	(\$ (\$ (\$ (\$	96,283) 96,283) 96,283) 96,283)
			2016 2016 2016 2016
	Individual Individual Individual Individual	provision provision provision provision	Group Group Group	provision provision provision provision		Total Total Total Total
At At At At January January January January 1 1 1	(\$ (\$ (\$ (\$	30,772) 30,772) 30,772) 30,772)	\$ \$ \$	- - - -	(\$ (\$ (\$ (\$	30,772) 30,772) 30,772) 30,772)
Provision Provision Provision Provision Provision for for for for for impairment impairment impairment impairment	( ( ( (	97,446) 97,446) 97,446) 97,446)		- - - - - (	( (	97,446) 97,446) 97,446) 97,446)
Reversal Reversal Reversal of of of impairment impairment impairment Reversal of impairment		25,275 25,275 25,275 25,275 25,275		- - - -		25,275 25,275 25,275 25,275
Write-offs Write-offs Write-offs Write-offs during during during during the the the the period period period period		3,826 3,826 3,826 3,826 3,826		- - - -		3,826 3,826 3,826 3,826
Net Net Net Net exchange exchange exchange exchange differences differences differences differences		42 42 42 42		- - - -		42 42 42 42

D. The Group does not hold any collateral as security. D. The Group does not hold any collateral as security. D. The Group does not hold any collateral as security. D. The Group does not hold any collateral security.

(5) Inventories (5) Inventories (5) Inventories (5) Inventories

			December December December December	31, 31, 31, 31, 2017 2017 2017 2017
			Allowance Allowance Allowance Allowance	for for for for
		Cost Cost Cost Cost	valuation valuation valuation valuation	loss loss loss loss		Book Book Book Book value value value value
Ship Ship Ship Ship fuel fuel fuel fuel	\$ \$ \$ \$	3,306,081 3,306,081 3,306,081 3,306,081	\$ \$ \$ \$	- - - -	\$ \$ \$	3,306,081 3,306,081 3,306,081 3,306,081
Steel Steel Steel Steel and and and and others others others others		413,348 413,348 413,348		- - - -		413,348 413,348 413,348 413,348
	\$ \$ \$	3,719,429 3,719,429 3,719,429 3,719,429	\$ \$ \$ \$	- - - -	\$ \$ \$ \$	3,719,429 3,719,429 3,719,429 3,719,429

		December 31,	2016
	Cost	Allowance valuation	for loss		Book value
Ship fuel Steel and others	\$ 2,782,953 391,967	\$	- -	\$	2,782,953 391,967
	\$ 3,174,920	\$	-	\$	3,174,920
(6) Other current assets
	December	31, 2017		December	31, 2016
Shipowner's accounts	\$	1,207,851	\$		110,646
Agency accounts		824,422			772,724
Other financial assets		324,508			183,200
Temporary debits		308,312			271,709
	\$	2,665,093	\$		1,338,279

• A. Shipowner's accounts:
• (a) Temporary accounts, between the Group and other related parties Evergreen International S.A., Gaining Enterprise S.A., Italia Marittima S.p.A., Evergreen Marine (Hong Kong) Ltd. and Evergreen Marine (Singapore) Pte. Ltd. incurred due to foreign port formalities and pier rental expenses.
• (b) In response to market competition and enhancement of global transportation network to provide better logistics services to customers, the Group has joined Cosco Container Lines Co., Ltd., Kawasaki Kisen Kaisha, Ltd., Yang Ming (UK), Ltd. and Hanjin Shipping Co., Ltd. to form the CKYHE Alliance Transactions for trading of shipping spaces.
• (c) In response to market competition and enhancement of global transportation network to provide better logistics services to customers, the Group has joined Cosco Container Lines Co., Ltd., CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. to form the OCEAN Alliance on March 31, 2017 for trading of shipping space.
• B. Agency accounts:

The Group entered into agency agreements with its related parties, whereby the related parties act as the Group's agents to deal with domestic and foreign port formalities, such as arrival and departure of the Group's ships, cargo stevedoring and forwarding, freight collection, and payment of expenses incurred in domestic and foreign ports.

C. On February 2, 2017, the aforementioned CKYHE member, Hanjin Shipping Co., Ltd. was judged by the Seoul Central District Court to undergo liquidation instead of reorganization, in accordance with Article 286 of Debtor Rehabilitation and Bankruptcy Act 2005 (Republic of Korea). For the year ended December 31, 2016, the Group recognised \$47,455 as impairment loss of net receivables from ship-owners due to a remote probability to recover the debt from the ship-owners. (7) Investments accounted for using equity method

A. Details of long-term equity investments accounted for using equity method are set forth below:

	December 31, 2017	December 31, 2016
Evergreen International Storage and	\$ 8,452,437	\$ 8,517,744
Transport Corporation
EVA Airways Corporation	9,462,402	8,699,063
Taipei Port Container Terminal	1,428,295	1,414,293
Corporation
Charng Yang Development Co., Ltd.	537,532	531,069
Luanta Investment (Netherlands) N.V.	1,865,804	1,993,507
Balsam Investment (Netherlands) N.V.	1,282,862	550,749
Colon Container Terminal S.A.	2,532,187	2,740,375
Others	1,221,507	1,332,253
	\$ 26,783,026	\$ 25,779,053

B. Associates

(a) The basic information of the associates that are material to the Group is as follows:

	Principal place of			Nature of	Methods of
Company name	business	Ownership(%) December 31,	December 31,	relationship	measurement
		2017	2016
Evergreen International Storage and Transport Corporation	TW	39.74%	39.74%	With a right over 20% to vote	Equity method
EVA Airways Corporation	TW	16.31%	16.31%	Have a right to vote in the Board of Directors	Equity method

(b) The summarised financial information of the associates that are material to the Group is as follows:

Balance sheet

		Evergreen International Storage and Transport Corporation
		December 31, 2017		December 31, 2016
Current assets	\$	5,429,946	\$	4,883,682
Non-current assets		27,662,565		28,917,060
Current liabilities	(	2,369,781)	(	2,380,308)
Non-current liabilities	(	9,031,865)	(	9,592,754)
Total net assets	\$	21,690,865	\$	21,827,680
Share in associate's net assets Unrealized income with affiliated	\$	8,558,554	\$	8,611,875
companies	(	106,117)	(	94,131)
Carrying amount of the associate	\$	8,452,437	\$	8,517,744

		EVA Airways	Corporation
		December 31, 2017	December 31, 2016
Current assets	\$	69,002,340 \$	69,375,363
Non-current assets		159,204,888	148,288,041
Current liabilities	(	60,428,208) (	62,284,933)
Non-current liabilities	(	103,569,512) (	96,042,190)
Total net assets	\$	64,209,508 \$	59,336,281
Share in associate's net assets	\$	9,462,402 \$	8,699,063

Statement of comprehensive income

		Evergreen International Storage and Transport Corporation
	Year	ended December	Year	ended December
		31, 2017		31, 2016
Revenue	\$	7,554,009	\$	7,472,097
Profit for the period	\$	884,258	\$	809,015
Other comprehensive loss, net of tax	(	647,260)	(	123,347)
Total comprehensive income	\$	236,998	\$	685,668
Dividends received from associates	\$	148,422	\$	148,422

		EVA Airways		Corporation
	Year	ended December 31, 2017	Year	ended December 31, 2016
Revenue	\$	163,561,731	\$	144,679,665
Profit for the period	\$	6,310,934	\$	3,953,667
Other comprehensive (loss) income, net of tax	(	769,683)		2,084,356
Total comprehensive income	\$	5,541,251	\$	6,038,023
Dividends received from associates	\$	132,191	\$	188,845

(c) The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarised below:

As of December 31, 2017 and 2016, the carrying amount of the Group's individually immaterial associates amounted to \$8,868,187 and \$8,562,246, respectively.

		Year ended December		Year ended December
		31, 2017		31, 2016
Gain (loss) for the period	\$	2,410,843	(\$	3,686,346)
Other comprehensive loss, net of tax	(	4,318)	(	22,627)
Total comprehensive income (loss)	\$	2,406,525	(\$	3,708,973)

C. The fair value of the Group's associates which have quoted market price was as follows:

	December 31, 2017	December 31, 2016
Evergreen International Storage and Transport Corporation	\$ 6,000,494	\$ 5,428,009
EVA Airways Corporation	10,790,460	9,649,978
	\$ 16,790,954	\$ 15,077,987

• D. Investment income (loss) accounted for using equity method was based on the financial statements of the investee companies for the corresponding periods which were audited by independent accountants.
• E. To meet the operational needs in Vietnam, the Board of Directors has resolved on November 13, 2015, that the Company to participate in VIP Greenport Joint Stock Company's capital increase as the original shareholder. The investment amount was VND125,000 thousand and the capital increase was effective from January 16, 2016. The shareholding ratio is 21.74% after the capital increase and VIP Greenport Joint Stock Company is accounted for using equity method.

• F. On May 12, 2017, the Board of Directors resolved to purchase newly issued shares of VIP Greenport Joint Stock Company for VND 12,500,000 as an original shareholder. The ownership percentage remains at 21.74% after the purchase.

• G. The Board of Directors has resolved that the subsidiary Peony Investment S.A. to participate in Ningbo Victory Container Co., Ltd. capital increase as the original shareholder, and the investment amount was USD 6,144 thousand as of May 26, 2016. The shareholding ratio remained at 40% after the capital increase and Ningbo Victory Container Co., Ltd. is accounted for using equity method.

• H. The Board of Directors has resolved that the subsidiary Peony Investment S.A. to participate in Balsam Investment (Netherlands) N.V.'s capital increase as an original shareholder. The investment amount was USD 76,930 thousand for the year ended December 31, 2016. The shareholding ratio remains at 49% after the capital increase and Balsam Investment (Netherlands) N.V. is accounted for using equity method.

				Loading Loading
				and and	Computer and	Computer and
			Machinery Machinery	unloading unloading	communication	Transportation Transportation communication		Office	Lease Office	Leasehold Lease	Leasehold
	Land Land	Buildings Buildings	equipment equipment	equipment equipment	equipment	equipment equipment equipment	Ships	equipment Ships	assets equipment	improvements assets	improvements Others	Total Others
At January 1, 2017 At January 1, 2017
Cost Cost	845,610 845,610 \$ \$	1,632,334 1,632,334 \$ \$	600,442 600,442 \$ \$	9,269,204 9,269,204 \$ \$	1,064,943 \$ \$	17,025,213 \$ 1,064,943 \$	110,782,722 \$ 17,025,213 \$	\$ 511,701 110,782,722 \$	21,192,069 \$ 511,701 \$	366,787 \$ 21,192,069 \$	\$ \$ 138,493 366,787 \$	163,429,518 163,429,518 \$ 138,493
depreciation depreciation Accumulated Accumulated	- -	1,004,644) 1,004,644) ( (	479,520) 479,520) ( (	5,612,263) 5,612,263) ( (	248,689) ( (	7,412,028) ( 248,689) (	42,981,997) ( 7,412,028) (	411,375) ( 42,981,997) (	5,565,381) ( 411,375) (	242,660) ( 5,565,381) (	( ( 531) 242,660) (	63,959,088) 63,959,088) ( 531)
	845,610 845,610 \$ \$	627,690 627,690 \$ \$	120,922 120,922 \$ \$	3,656,941 3,656,941 \$ \$	816,254 \$ \$	9,613,185 \$ 816,254 \$	67,800,725 \$ 9,613,185 \$	\$ 100,326 67,800,725 \$	15,626,688 \$ 100,326 \$	124,127 \$ 15,626,688 \$	\$ \$ 137,962 124,127 \$	99,470,430 99,470,430 \$ 137,962
Opening net book 2017 2017
Opening net book amount	845,610 \$	627,690 \$	120,922 \$	3,656,941 \$	816,254 \$	9,613,185 \$	67,800,725 \$	100,326 \$	15,626,688 \$	124,127 \$	\$ 137,962 \$	99,470,430
Additions amount	845,610 - \$	627,690 1,891 \$	120,922 3,169 \$	3,656,941 202,894 \$	58,911 \$	985,566 \$ 816,254	207,088 \$ 9,613,185	21,224 \$ 67,800,725	70,957 \$ 100,326	15,488 \$ 15,626,688	\$ 35,235 124,127	99,470,430 1,602,423 \$ 137,962
Additions Disposals	-	1,891 1,067) ( -	3,169 285) (	202,894 3,875) (	(	25,375) 58,911 ( 617)	3,451) 985,566 (	3,721) 207,088 (	( 6,337) 21,224 (	6,155) 70,957	( - 15,488	50,883) 35,235
Reclassifications Disposals	-	1,067) 7,130 ( -	- (	482,220 ( 285)	76,298 ( 3,875)	- ( 617)	3,660,780 ( 25,375)	4,012) ( 3,451) (	81,527) ( 3,721) (	204,088 ( 6,337)	81,922) 6,155) (	4,263,055 ( -
Reclassifications Depreciation	-	7,130 40,958) ( -	10,041) (	482,220 464,240) - (	192,670) (	1,328,043) 76,298 (	4,406,998) - (	33,435) ( 3,660,780 (	( 1,063,223) ( 4,012) (	120,753) 81,527)	( ( 2,822) 204,088 (	7,663,183) 81,922)
Acquired from Depreciation	-	40,958) (	10,041) (	464,240) (	(	( 192,670)	( 1,328,043)	( 4,406,998)	( 33,435)	( 1,063,223)	( 120,753)	( 2,822)
business combinations Acquired from	-	5,615,200	173	-	2,265	2,970	116,948	27,237	-	-	-	5,764,793
business combinations Net exchange		5,615,200 -	173		-	2,265	2,970	116,948	27,237	-	-	5,764,793 -
Net exchange differences	15,865) (	127,375) (	1,831	152,091) (	56,521) (	518,868) (	3,635,922) (	2,642	1,190,470) (	627) (	( 5,915) (	5,699,181)
Closing net book differences amount	15,865) 829,745 \$ (	127,375) 6,082,511 ( \$	1,831 115,769 \$	152,091) 3,721,849 ( \$	703,920 ( \$	8,729,435 ( 56,521) \$	63,739,170 ( 518,868) \$	110,261 3,635,922) \$	13,356,088 ( 2,642 \$	216,168 ( 1,190,470) \$	\$ ( 627) 82,538 \$	97,687,454 ( 5,915)
At December 31, 2017 Closing net book amount	829,745 \$	6,082,511 \$	115,769 \$	3,721,849 \$	\$	\$ 703,920	\$ 8,729,435	\$ 63,739,170	\$ 110,261	\$ 13,356,088	\$ 216,168	97,687,454 \$ 82,538
Cost	829,745 \$	7,194,260 \$	611,447 \$	9,600,294 \$	1,120,713 \$	16,325,955 \$	107,532,947 \$	533,874 \$	19,524,906 \$	574,438 \$	\$ 85,891 \$	163,934,470
At December 31, 2017 Accumulated Cost	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$	\$
depreciation	829,745 -	7,194,260 1,111,749) (	611,447 495,678) (	9,600,294 5,878,445) (	416,793) (	7,596,520) 1,120,713 (	43,793,777) 16,325,955 (	423,613) 107,532,947 (	6,168,818) 533,874 (	358,270) 19,524,906 (	( 3,353) 574,438 (	163,934,470 66,247,016) \$ 85,891
Accumulated	829,745 \$	6,082,511 \$	115,769 \$	3,721,849 \$	703,920 \$	8,729,435 \$	63,739,170 \$	110,261 \$	13,356,088 \$	216,168 \$	\$ 82,538 \$	97,687,454

depreciation - 1,111,749) ( 495,678) ( 5,878,445) ( 416,793) ( 7,596,520) ( 43,793,777) ( 423,613) ( 6,168,818) ( 358,270) ( 3,353) ( 66,247,016) (

6,082,511 \$ 115,769 \$ 3,721,849 \$ 703,920 \$ 8,729,435 \$ 63,739,170 \$ 110,261 \$ 13,356,088 \$ 216,168 \$ 82,538 \$ 97,687,454 \$

(8) Property, plant and equipment, net

(8) Property, plant and equipment, net

2017 Annual Report

				and		Computer and
			Machinery	unloading		communication	Transportation		Office	Lease	Leasehold
	Land	Buildings	equipment	equipment		equipment	equipment	Ships	equipment	assets	improvements		Others	Total
At January 1, 2016
Cost	823,656 \$	1,658,060 \$	638,955 \$	8,698,643 \$	\$	235,114	19,390,776 \$	112,145,161 \$	516,257 \$	23,354,144 \$	\$	\$ 350,042	466,263	168,277,071 \$
Accumulated		976,105) (	499,554) (	5,283,786) (	(	197,883)	7,513,029) (	39,141,571) (	420,350) (	6,450,500) (	(	( 175,065)	( 48)	60,657,891)
depreciation	- 823,656 \$	681,955 \$	139,401 \$	3,414,857 \$	\$	37,231	11,877,747 \$	73,003,590 \$	95,907 \$	16,903,644 \$	\$	\$ 174,977	466,215	107,619,180 \$
Opening net book 2016
amount	823,656 \$	681,955 \$	139,401 \$	3,414,857 \$	\$	37,231	11,877,747 \$	73,003,590 \$	95,907 \$	16,903,644 \$	\$	\$ 174,977	466,215	107,619,180 \$
Additions	-	7,347	1,119	131,437		29,450	69,587	289,117	25,971	639,439		17,937	463,428	1,674,832
Disposals	-	-	-	8,461) (	(	86)	744,084) (	-	815) (	17,134) (	(	343)	( -	770,923)
Reclassifications	24,654	46,805	-	602,976		814,578	785	97,989	14,540	103,230) (		( 1,128	782,244)	717,981
Depreciation	-	34,456) (	11,850) (	442,298) (	(	64,211)	1,427,453) (	4,564,734) (	33,466) (	1,438,719) (	(	( 68,970)	( 483)	8,086,640)
Impairment loss	-	42,932) (	-	6,497) (		-	-	-	-	-		-	( -	49,429)
Net exchange differences	2,700) (	31,029) (	7,748) (	35,073) (	(	708)	163,397) (	1,025,237) (	1,811) (	357,312) (	(	( 602)	( 8,954)	1,634,571)
Closing net book amount	845,610 \$	627,690 \$	120,922 \$	3,656,941 \$	\$	816,254	9,613,185 \$	67,800,725 \$	100,326 \$	15,626,688 \$	\$	\$ 124,127	137,962	99,470,430 \$
At December 31, 2016
Cost	845,610 \$	1,632,334 \$	600,442 \$	9,269,204 \$	\$	1,064,943	17,025,213 \$	110,782,722 \$	511,701 \$	21,192,069 \$	\$	\$ 366,787	138,493	163,429,518 \$
depreciation Accumulated	-	1,004,644) (	479,520) (	5,612,263) (	(	248,689)	7,412,028) (	42,981,997) (	411,375) (	5,565,381) (	(	( 242,660)	( 531)	63,959,088)
	845,610 \$	627,690 \$	120,922 \$	3,656,941 \$	\$	816,254	9,613,185 \$	67,800,725 \$	100,326 \$	15,626,688 \$	\$	\$ 124,127	137,962	99,470,430 \$
A. The Group has issued a negative pledge to granting banks for drawing borrowings within the credit line to purchase the above transportation
ment. equip
B. Infor	mation about the property, plant and equip						ment that were pledged to others as collaterals is provided in Note 8.

Loading

(9) Investment property, net

		Land		Buildings	Total
At January 1, 2017
Cost	\$	1,414,631	\$	1,000,649	\$ 2,415,280
Accumulated depreciation		-	(	476,506) (	476,506)
	\$	1,414,631	\$	524,143	\$ 1,938,774
2017
Opening net book amount	\$	1,414,631	\$	524,143	\$ 1,938,774
Reclassifications		174		-	174
Depreciation		-	(	28,516) (	28,516)
Acquired from business combinations		-		3,119,127	3,119,127
Net exchange differences	(	48)	(	60,239) (	60,287)
Closing net book amount	\$	1,414,757	\$	3,554,515	\$ 4,969,272
At December 31, 2017
Cost	\$	1,414,757	\$	4,066,438	\$ 5,481,195
Accumulated depreciation		-	(	511,923) (	511,923)
	\$	1,414,757	\$	3,554,515	\$ 4,969,272
At January 1, 2016
Cost	\$	1,420,461	\$	1,046,174	\$ 2,466,635
Accumulated depreciation		-	(	499,610) (	499,610)
	\$	1,420,461	\$	546,564	\$ 1,967,025
2016
Opening net book amount	\$	1,420,461	\$	546,564	\$ 1,967,025
Reclassifications	(	5,701)		- (	5,701)
Depreciation charge		-	(	19,490) (	19,490)
Net exchange differences	(	129)	(	2,931) (	3,060)
Closing net book amount	\$	1,414,631	\$	524,143	\$ 1,938,774
At December 31, 2016
Cost	\$	1,414,631	\$	1,000,649	\$ 2,415,280
Accumulated depreciation		-	(	476,506) (	476,506)
	\$	1,414,631	\$	524,143	\$ 1,938,774

	Year	ended December	Year	ended December
		31, 2017		31, 2016
Rental revenue from the lease of the investment property	\$	125,880	\$	109,254
Direct operating expenses arising from the investment property that generated rental income
in the period	\$	25,294	\$	21,986
Direct operating expenses arising from the investment property that did not generate rental income in
the period	\$	1,017	\$	1,586

A.Rental income from the investment property and direct operating expenses arising from the investment property are shown below:

B.The fair value of the investment property held by the Group as at December 31, 2017 and 2016 was \$6,743,253 and \$3,696,799, respectively. The fair value measurements were based on the market prices of recently sold properties in the immediate vicinity of a certain property.

C.Information about the investment property that were pledged to others as collaterals is provided in Note 8.

(10) Other non-current assets

	December	31, 2017	December	31, 2016
Prepayments for equipment	\$	6,080,908	\$	4,898,843
Refundable deposits		197,413		159,013
Others		160,044		2,463
	\$	6,438,365	\$	5,060,319

Amount of borrowing costs capitalised as part of prepayment for equipment and the range of the interest rates for such capitalisation are as follows:

	Year	ended December	Year	ended December
		31, 2017		31, 2016
Amount capitalised	\$	107,084	\$	55,774
Interest rate		1.31%~3.06%		1.31%~2.93%

		December December 31, 31, 2017 2017		December December 31, 31, 2016 2016
Receipt Receipt in in advance advance	\$ \$	12,367 12,367	\$ \$	13,827 13,827
Long-term Long-term liabilities liabilities - - current current portion portion		16,117,966 16,117,966		14,965,142 14,965,142
Corporate Corporate bonds bonds - - current current portion portion		- -		3,000,000 3,000,000
Shipowner's Shipowner's accounts accounts		2,322,289 2,322,289		3,535,446 3,535,446
Agency Agency accounts accounts		4,838,099 4,838,099		3,938,029 3,938,029
Long-term Long-term leases leases payable payable - - current current		1,349,699 1,349,699		1,530,688 1,530,688
Others Others		75,249 75,249		51,445 51,445
	\$ \$	24,715,669 24,715,669	\$ \$	27,034,577 27,034,577
(12) (12) Corporate Corporate bonds bonds payable payable
		December 31, 2017 December 31, 2017		December 31, 2016 December 31, 2016
Domestic secured corporate bonds Domestic secured corporate bonds	\$ \$	8,000,000 8,000,000	\$ \$	3,000,000 3,000,000
Less: Current portion or exercise Less: Current portion or exercise
of put options of put options		- -	( (	3,000,000) 3,000,000)
	\$ \$	8,000,000 8,000,000	\$ \$	- -

(11) Other current liabilities (11) Other current liabilities

1.. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred herein as the "Thirteenth Bonds"), totaling \$8,000,000. The Thirteenth Bonds are categorized into Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals \$2,000,000, and the rest total \$6,000,000, with each par value of \$1,000,000. The major terms of the issuance are set forth below: 1.. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred herein as the "Thirteenth Bonds"), totaling \$8,000,000. The Thirteenth Bonds are categorized into Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals \$2,000,000, and the rest total \$6,000,000, with each par value of \$1,000,000. The major terms of the issuance are set forth below:

• (a) Period: 5 years (April 25, 2017 to April 25, 2022) (a) Period: 5 years (April 25, 2017 to April 25, 2022)
• (b) Coupon rate: 1.05% fixed per annum (b) Coupon rate: 1.05% fixed per annum
• (c) Principal repayment and interest payment (c) Principal repayment and interest payment

Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from the issuing date. For each category of the bonds mentioned above, half the principal must be paid at the end of the fourth year, and another half at the maturity date. Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from the issuing date. For each category of the bonds mentioned above, half the principal must be paid at the end of the fourth year, and another half at the maturity date.

(d) Collaterals (d) Collaterals

The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank, Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank, Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank Sinopac. The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank, Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank, Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank Sinopac.

• 2.. On April 26, 2012, the Company issued its twelfth domestic secured corporate bonds (referred herein as the "Twelfth Bonds"), totaling \$3,000,000. The Twelfth Bonds are categorized into Bond A and B, depending on the guarantee institution. Bond A totals \$2,000,000, and Bond B totals \$1,000,000. The major terms of the issuance are set forth below: 2.. On April 26, 2012, the Company issued its twelfth domestic secured corporate bonds (referred herein as the "Twelfth Bonds"), totaling \$3,000,000. The Twelfth Bonds are categorized into Bond A and B, depending on the guarantee institution. Bond A totals \$2,000,000, and Bond B totals \$1,000,000. The major terms of the issuance are set forth below:

• (a) Period: 5 years (April 26, 2012 to April 26, 2017) (a) Period: 5 years (April 26, 2012 to April 26, 2017)

• (b) Coupon rate: 1.28% fixed per annum

• (c) Principal repayment and interest payment

Repayments for the Twelfth Bonds are paid annually on coupon rate, starting a year from the issuing date. The principal of the Twelfth Bonds shall be repaid in lump sum at maturity.

(d) Collaterals

The Twelfth Bonds are secured. Bond A is guaranteed by Bank Sinopac, and Bond B is guaranteed by Far Eastern International Bank.

(13) Long-term loans

		December 31, 2017		December 31, 2016
Secured bank loans	\$	55,586,429	\$	62,831,664
Unsecured bank loans Add : unrealised foreign exchange		25,915,897		29,737,286
losses		10,339		105,294
Less: hosting fee credit	(	25,034)	(	35,598)
		81,487,631		92,638,646
Less: current portion	(	16,117,966)	(	14,965,142)
	\$	65,369,665	\$	77,673,504
Borrowing period		107.02~116.06		106.03~116.06
Interest rate		1.18%~5.15%		0.85%~5.22%

Please refer to Note 8 for details of the collaterals pledged for the above long-term loans.

(14) Other non-current liabilities

	December 31, 2017	December 31, 2016
Long-term leases payable - non-current	\$ 10,381,197	\$ 12,730,572
Accrued pension liabilities	3,053,342	2,968,046
Guarantee deposits received	37,608	23,322
Unrealised gain on sale and leaseback	39,874	55,468
	\$ 13,512,021	\$ 15,777,408

(15) Finance lease liabilities

The Group leases in loading and unloading equipment, ships and transportation equipment under finance lease, based on the terms of the lease contracts. Future minimum lease payments and their present values as at December 31, 2017 and 2016 are as follows:

				December 31, 2017
	Total	finance lease		Future finance	Present value of
		liabilities		charges	finance lease liabilities
Current
Not later than one year	\$	1,761,272	(\$	411,573)	\$ 1,349,699
Non-current
Later than one year but not later than five years		11,124,634	(	1,092,641)	10,031,993
Over five years		356,716	(	7,512)	349,204
		11,481,350	(	1,100,153)	10,381,197
	\$	13,242,622	(\$	1,511,726)	\$ 11,730,896
				December 31, 2016
	Total	finance lease		Future finance	Present value of
		liabilities		charges	finance lease liabilities
Current
Not later than one year	\$	2,016,904	(\$	486,216)	\$ 1,530,688
Non-current
Later than one year but not later than five years		6,761,219	(	1,397,946)	5,363,273
Over five years		7,562,359	(	195,060)	7,367,299
		14,323,578	(	1,593,006)	12,730,572
	\$	16,340,482	(\$	2,079,222)	\$ 14,261,260

(16) Pension

A.(a) In accordance with the Labor Pension Act ("the Act"), effective July 1, 2005, which adopted a defined contribution scheme, employees of the Company and its subsidiary-TTSC may choose to be subject to either the Act, maintaining their seniority before the enforcement of the Act, or the pension mechanism of the Labor Standard Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its subsidiary-TTSC contribute monthly an amount equal to 15% of the employees' monthly salaries and wages to the retirement fund deposited with the Trust Department of Bank of Taiwan under the name of the Labor Pension Fund Supervisory Committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, to the employees expected to be qualified for retirement next year, the Company will make contributions to cover the deficit by next March.

• (b) The employees with R.O.C. nationality of the Group's subsidiaries, Evergreen Marine (Hong Kong) Ltd., Greencompass Marine S. A. and Evergreen Marine (UK) Limited, adopted the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement.
• (c) The amounts recognised in the balance sheet are as follows:

	December	31, 2017	December	31, 2016
Present value of defined benefit obligations	(\$	4,236,061)	(\$	4,165,132)
Fair value of plan assets		1,182,719		1,197,086
Net defined benefit liability	(\$	3,053,342)	(\$	2,968,046)

(d) Movements in net defined benefit liabilities are as follows:

		Present value of	Fair value of
		defined benefit	plan		Net defined
		obligations	assets		benefit liability
Year ended December 31, 2017
Balance at January 1	(\$	4,165,132)	\$ 1,197,086	(\$	2,968,046)
Current service cost	(	159,331)	-	(	159,331)
Interest (expense) income	(	59,773)	11,664	(	48,109)
Past service cost		1,415	-		1,415
Settlement profit or loss		668	-		668
	(	4,382,153)	1,208,750	(	3,173,403)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-	( 40,092)	(	40,092)
Change in demographic assumptions	(	6,478)	-	(	6,478)
Change in financial assumptions	(	34,108)	-	(	34,108)
Experience adjustments	(	68,326)	-	(	68,326)
	(	108,912)	( 40,092)	(	149,004)
Pension fund contribution		22,718	188,078		210,796
Paid pension		302,970	( 201,422)		101,548
Exchange difference	(	33,781)	27,405	(	6,376)
Effect of business combination	(	36,903)	-	(	36,903)
Balance at December 31	(\$	4,236,061)	\$ 1,182,719	(\$	3,053,342)

		Present value of	Fair value of
		defined benefit	plan	Net defined
	obligations		assets	benefit liability
Year ended December 31, 2016
Balance at January 1	(\$	4,118,557)	\$ 1,106,224	(\$	3,012,333)
Current service cost	(	163,423)	-	(	163,423)
Interest (expense) income	(	61,370)	17,649	(	43,721)
	(	4,343,350)	1,123,873	(	3,219,477)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-	62,596		62,596
Change in demographic assumptions	(	16,916)	-	(	16,916)
Change in financial assumptions	(	77,889)	-	(	77,889)
Experience adjustments	(	29,963)	-	(	29,963)
	(	124,768)	62,596	(	62,172)
Pension fund contribution		-	189,568		189,568
Paid pension		258,903	( 147,795)		111,108
Exchange difference		44,083	( 31,156)		12,927
Balance at December 31	(\$	4,165,132)	\$ 1,197,086	(\$	2,968,046)

(e) The Bank of Taiwan was commissioned to manage the Fund of the Company's and its domestic subsidiaries-TTSC's defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from twoyear time deposits with the interest rates offered by local banks. If the earning is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Group has no right to participate in managing and operating that fund and hence the Group is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2017 and 2016 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(f) The principal actuarial assumptions used were as follows:

	Year ended December	Year ended December
	31, 2017	31, 2016
Discount rate	0%~7.3%	0.05%~8.5%
Future salary increases	0.5%~11%	0.5%~11%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount	rate	Future salary increases
	Increase	Decrease	Increase	Decrease
	0.025%~1.00%	0.025%~1.00%	0.25%~1.00%	0.25%~1.00%
December 31, 2017
Effect on present value of
defined benefit obligation	( 150,553)	161,436	108,296	( 98,285)
	Discount	rate	Future salary	increases
	Increase	Decrease	Increase	Decrease
	0.025%~1.00%	0.025%~1.00%	0.25%~1.00%	0.25%~1.00%
December 31, 2016
Effect on present value of
defined benefit obligation

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

• (g) Expected contributions to the defined benefit pension plans of the Company and its subsidiary-TTSC for the year ending December 31, 2018 amounts to \$96,497.
• (h) As of December 31, 2017, the weighted average duration of the retirement plan is 9 ~ 21 years.
• B. (a) Effective July 1, 2005, the Company and its domestic subsidiary-TTSC have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the"Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiary-TTSC contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees'individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The pension costs under defined contribution pension plans of the Group for the years ended December 31, 2017 and 2016 were \$186,442 and \$184,067, respectively.

(17) Capital stock

• A. As of December 31, 2017, the Company's authorized capital was \$50,000,000, and the paid-in capital was \$ 40,123,560, consisting of 4,012,356 thousand shares of common stocks with a par value of \$10 (in dollars) per share. All proceeds from shares issued have been collected.
• B. On August 11, 2017, the Board of Directors of the Company resolved to increase capital of \$5,000,000 by issuing 500,000 thousand shares at a par value of NT\$10. Of which 50,000 thousand shares are reserved for employee stock purchase plan. The proposal of capital increase has been reported and become effective on December 5, 2017. The issue price is NT\$15.3 per share and amount of shares was \$7,711,222. All proceeds from share issuance was completed on December 27, 2017.

(18) Capital surplus

A. Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

			2017
			Adjustments to
		Employe	share of changes
		stock	in equity of
	Share premium	options exercised	associates and joint ventures	Donated assets	Others
At January 1, 2017	\$5,895,171	\$ -	\$ 2,086,684	\$ 446	\$ 6,713
Issuance of common stock
for cash	2,711,222	76,280	-	-	-
Recognition of change in equity of associates in proportion to
the Company's ownership	-	-	61,559	-	-
At December 31, 2017	\$8,606,393	\$ 76,280	\$ 2,148,243	\$ 446	\$6,713

			2016
	Share premium		Adjustments to share of changes in equity of associates and joint ventures	Donated assets	Others
At January 1, 2016	\$ 5,895,171	\$	2,084,303	\$ 446	\$ 6,713
Recognition of change in equity of associates in proportion to the Company's ownership At December 31, 2016	\$ - 5,895,171	\$	2,381 2,086,684	\$ - 446	\$ - 6,713
(19) Retained earnings
		2017		2016
At January 1	(\$		4,248,211) \$		2,561,825
Profit (loss) for the year			7,005,171 (		6,607,986)
Legal reserve used to cover accumulated deficits Remeasurement on post employment			4,248,211		-
benefit obligations, net of tax	(		235,596) (		202,050)
At December 31	\$		6,769,575 (\$		4,248,211)

A. According to the Company's Articles of Incorporation, if there is any profit for a fiscal year, the Company shall first make provision for all taxes and cover prior years' losses and then appropriate 10% of the residual amount as legal reserve. Dividends shall be proposed by the Board of Directors and resolved by the stockholders.

B. Dividend policy

In order to facilitate future expansion plans, dividends to stockholders are distributed mutually in the form of both cash and stocks with the basic principle that the ratio of cash dividends to total stock dividends shall not be lower than 10%.

C. Legal reserve

Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• E.(a) As of 2015, the Company distributed no dividends to shareholders in order to facilitate future operation plans.
• .(b) For the year ended December 31, 2016, the Company incurred accumulated deficit. On June 22, 2017, the Board of Directors proposed to offset the accumulated deficit totaling \$4,248,211 with the legal reserve.
• F. The appropriation of earnings of year 2017 as resolved by the Board of Directors on March 23, 2018 is as follows:

	Year ended December 31, 2017
				Dividend per share
		Amount		(in dollars)
Accrual of legal reserve	\$	700,517
Appropriate cash dividends to shareholders	\$	802,471	\$	0.2
Appropriate stock dividends to shareholders	\$	2,006,178	\$	0.5

As of March 23, 2018, the above-mentioned 2017 earnings appropriation had not been resolved by the stockholders.

• G. For information relating to employees', directors' and supervisors' remuneration, please refer to Note 6(29).
• (20) Other equity items

		Hedging		Available-for	Currency
		reserve	sale	investment	translation		Total
At January 1, 2017	(\$	67,895)	\$	1,703,161	\$ 1,254,622	\$	2,889,888
Revaluation – gross		-		103,585	-		103,585
Revaluation – tax		-	(	8,110)	-	(	8,110)
Revaluation – associates		-		34,703	-		34,703
Cash flow hedges:
– Fair value loss in the period
– Associates		51,983		-	-		51,983
Currency translation differences:
– Group		-		-	( 2,046,070)	(	2,046,070)
– Group – tax		-		-	2,296		2,296
– Associates		-		-	( 345,962)	(	345,962)
At December 31, 2017	(\$	15,912)	\$	1,833,339	(\$ 1,135,114)	\$	682,313

		Hedging		Available-for		Currency
		reserve	sale	investment		translation		Total
At January 1, 2016	(\$	521,149)	\$	1,461,850	\$	2,155,086	\$	3,095,787
Revaluation – gross		-		145,411		-		145,411
Revaluation – tax		-		10,331		-		10,331
Revaluation – associates		-		85,569		-		85,569
Cash flow hedges:
– Fair value gain in the period								-
– Associates		453,254		-		-		453,254
Currency translation differences:
– Group		-		-	(	811,853)	(	811,853)
– Group – tax		-		-		2,194		2,194
– Associates		-		-	(	90,805)	(	90,805)
At December 31, 2016	(\$	67,895)	\$	1,703,161	\$	1,254,622	\$	2,889,888
(21) Operating revenue
		Year	ended	December		Year ended		December
			31,	2017		31,		2016
Marine freight income		\$		135,358,310		\$		110,022,623
Ship rental and slottage income				1,545,894				2,061,104
Container manufacturing income				1,659,315				1,291,148

Commission income and agency service income 1,366,761 1,267,085

Container income and others 10,652,412 9,825,648

(22) Other income and expenses, net

	Year ended December 31, 2017	Year ended December 31, 2016
Gains on disposal of property, plant and equipment	\$ 501,784	\$ 1,881,263

\$ 150,582,692 \$ 124,467,608

(23) Other income

	Year ended December	Year ended December
		31, 2017		31, 2016
Rental revenue	\$	127,807	\$	111,613
Dividend income		117,436		142,152
Interest income:
Interest income from bank deposits		434,615		269,552
Interest income from financial assets
other than financial assets at fair
value through profit or loss		2,339		8,197
Gain from bargain purchase		5,983		-
Other income - other		266,126		270,808
	\$	954,306	\$	802,322
(24) Other gains and losses
	Year	ended December	Year	ended December
		31, 2017		31, 2016
Net currency exchange gains	\$	51,516	\$	657,945
Gains on disposal of investments		644,554		432
Impairment loss on available-for-sale
financial assets		-	(	1,878)
Impairment loss on property, plant
and equipment		-	(	49,429)
Other non-operating expenses	(	123,176)	(	136,499)
	\$	572,894	\$	470,571
(25) Finance costs
		Year ended December		Year ended December
		31, 2017		31, 2016
Interest expense:
Bank loans	\$	1,417,937	\$	1,263,326
Corporate bonds		69,863		38,400
		1,487,800		1,301,726
Less: capitalisation of qualifying assets	(	107,084)	(	55,774)
Finance costs	\$	1,380,716	\$	1,245,952

(26) Expenses by nature

	Year	ended December 31, 2017	Year ended December 31, 2016
Employee benefit expense	\$	6,932,955	\$	6,493,978
Depreciation on property, plant
and equipment		7,663,183		8,086,640
Amortisation on intangible assets		38,375		30,501
Other operating costs and expenses		131,617,656		119,580,065
	\$	146,252,169	\$	134,191,184

(27) Employee benefit expense

	Year ended December		Year ended December
		31, 2017	31, 2016
Wages and salaries	\$	5,770,241	\$	5,359,634
Labor and health insurance fees		440,465		423,550
Pension costs		391,799		391,211
Other personnel expenses		330,450		319,583
	\$	6,932,955	\$	6,493,978

• A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees that account for no less than 0.5% and pay remuneration to the directors and supervisors that account for no more than 2% of the total distributed amount.
• B. (a) For the year ended December 31, 2017, employees' compensation was accrued at \$36,322, while directors' and supervisors' remunerations were accrued at \$10,207. The aforementioned amounts were recognised in salary expenses.
• (b) The employees' compensation and directors' and supervisors' remuneration were estimated and accrued based on 0.5% and 0.14% of distributable profit of current year for the year ended December 31, 2017.
• (c) For the year ended December 31, 2016, the Company generated loss and thus did not accrue employees' and supervisors' remuneration. Information about the appropriation of employees', directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(28) Income tax

A. Income tax expense (benefit)

(a)Components of income tax expense (benefit):

	Year ended December		Year ended December
		31, 2017	31, 2016
Current tax:
Current tax on profits for the period	\$	629,009	\$	294,699
Alternative MinimumTax		31,399		-
Prior year income tax overestimation	(	32,894) (		71,897)
Total current tax		627,514		222,802
Deferred tax:
Origination and reversal of
temporary differences		155,464 (		466,474)
Impact of change in tax rate (Note1)		2,950		-
Total deferred tax		158,414 (		466,474)
Income tax expense (benefit)	\$	785,928	(\$	243,672)

Note 1: The impact of the change in tax rate was primarily from the tax bill signed into law by the President of the United States on December 22, 2017 (Taiwan time), which lowered the corporate income tax rate from 35% to 21%.

(b)The income tax (charge)/credit relating to components of other comprehensive income is as follows:

	Year ended December		Year ended December
		31, 2017		31, 2016
Fair value gains/losses on available for-sale financial assets	(\$	8,125)	\$	10,331
Exchange differences on translating the financial statements of foreign
operations		2,296		2,194
Remeasurement of defined benefit
obligations		16,942		20,614
	\$	11,113	\$	12,525

(c)The income tax charged/(credited) to equity during the period is as follows:

	Year ended December 31, 2017	Year ended December 31, 2016
Reduction in capital surplus caused
by recognition of foreign investees
based on the shareholding ratio	(\$ 95)	(\$ 98)

	Year	ended December 31, 2017	Year ended December 31, 2016
Tax calculated based on profit before tax and statutory tax rate	\$	1,823,489	(\$ 940,918)
Expenses disallowed by tax regulation		19,362	781,390
Tax exempt income by tax regulation	(	1,028,143) (	11,824)
Effect from investment tax credits	(	42,068) (	423)
Prior year income tax overestimation	(	32,894) (	71,897)
Effect from Alternative Minimum Tax		31,399	-
Effect from changes in tax regulation Effect from income tax deduction		2,950	-
from prior years		7,984	-
Effect of defferd tax from prior year income tax underestimation		3,849	-
Income tax expense (benefit)	\$	785,928	(\$ 243,672)

B. Reconciliation between income tax expense (benefit) and accounting profit:

C.	Amounts of	deferred	tax assets	or	liabilities	as a	result	of	temporary	differences, C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and	tax	losses	and
	investment	tax credits investment tax credits are as follows:	are as	follows:

							2017 2017
					Recognised Recognised
			Recognised Recognised		in other in other
			in profit or in profit or		comprehensive comprehensive		Recognised Recognised		Translation Translation		Business Business
	January 1 January 1		loss loss		income income		in equity in equity		differences differences				combination December 31 combination December 31
Temporary differences:
Temporary differences: 炼Deferred tax assets:
炼Deferred tax assets: Bad debts expense Bad debts expense	\$ 14,493 \$ 14,493	\$ \$	1,501 1,501	\$ \$	-	\$ -	- \$	\$ -	53 \$	\$ 53	- \$	\$ -	16,047 \$ 16,047
Loss on valuation of Loss on valuation of financial assets	1,766		-		209		-		4		-		1,979
financial assets Deferred profit from Deferred profit from disposal of loading and	1,766		-		209			-		4		-	1,979
unloading equipment disposal of loading and	16,708	(	2,790)		-		-		-		-		13,918
Unrealized expense unloading equipment	16,708 32,248	( (	2,790) 1,301)		- -		-	- (	762)	-	-	-	13,918 30,185
Unrealized expense Unrealized exchange loss	50,198 32,248	( (	9,482 ) 1,301)		-	-	-	- (	25	762)	-	-	40,741 30,185
Pension expense and Unrealized exchange loss	50,198	(	9,482 )			-		-		25		-	40,741
actuarial losses/(gains) Pension expense and	365,725	(	13,376)		15,284		-		2,026		-		369,659
Others actuarial losses/(gains)	4,165 365,725	( (	3,706) 13,376)		- 15,284		-	( -	184) 2,026		-	-	275 369,659
Net operating loss Others	4,165	(	3,706)			-		- (		184)		-
carryforward Net operating loss	176,711		16,474		-		-		209		-		193,394
Investment tax credits carryforward	- 176,711		42,068 16,474		- -		-	-	-	209	-	-	42,068 193,394
Subtotal Investment tax credits	\$ 662,014 -	\$	29,388 42,068	\$	15,493	\$ -	-	\$ -	1,371	\$ -	-	\$ -	708,266 42,068
炼Deferred tax liabilities: Subtotal	\$ 662,014	\$	29,388	\$	15,493		\$	-	\$ 1,371		\$	-	\$ 708,266
Temporary differences: 炼Deferred tax liabilities:
Gain on valuation of Temporary differences: financial assets	\$ -	\$	-	\$	-	\$	-	\$	-	\$	-	\$	-
Unrealized exchange gain Gain on valuation of	( 20,999)		20,112		-		-		303		-	(	584 )
financial assets Unrealized gain	\$ - ( 5,833)	\$	- 454	\$	- -		\$ -	-	\$ 360	-	\$ -	- (	\$ 5,019 )
Pension expense and Unrealized exchange gain (	20,999)		20,112			-		-		303		-	(
actuarial losses/(gains) Unrealized gain	( 233)		-	(	133)		-	(	251)		-	(	617)
( Foreign investment income ( Pension expense and	5,833) 558,247) (		454 207,171) (		4,247) (	-	95)	-	1,619	360	-	- (	( 5,019 768,141 )
Others actuarial losses/(gains) (	( 47,870) ( 233)		1,197) -	(	- 133)		-	- (	22,026	( 251)	947,618) (	-	974,659) (
Subtotal Foreign investment income (	(\$ 633,182) (\$ 558,247) (		187,802) (\$ 207,171) (		4,380) (\$ 4,247) (		95)	\$ 95)	24,057 1,619			-	(\$ 947,618) (\$ 1,749,020) ( 768,141
Total ( Others	\$ 28,832 47,870) (	(\$	158,414) 1,197)	\$	11,113	(\$ -	95)	\$ -	25,428 22,026		( 947,618) (		(\$ 947,618) (\$ 1,040,754) 974,659)

						2016 in other in other in other
	January 1	January 1 1		Recognised in Recognised in in profit or loss profit or loss profit or loss		Recognised comprehensive comprehensive in other income income income		Recognised in Recognised in Recognised in equity equity equity		Translation Translation Translation differences differences differences		December 31 December 31 December 31
Temporary differences: Temporary differences: Temporary differences:		January 1		Recognised in profit or loss		comprehensive income		Recognised in equity		Translation differences		December 31
炼Deferred tax assets: 炼Deferred tax assets: 炼Deferred tax assets: Temporary differences:
Bad debts expense Bad debts expense Bad expense \$ 炼Deferred tax assets:	\$ \$	2,460 2,460 2,460 \$	\$ \$	11,859 11,859 11,859	\$ \$ \$	-	- - \$	\$ \$ -	-	\$ \$ \$ 174	174 174	\$ \$ \$ 14,493 14,493 14,493
Loss on valuation of Loss on valuation of Loss on of Bad debts expense financial assets financial assets financial assets	\$	2,460 3,769 3,769 3,769	\$	11,859 - - - (	\$ ( (	- 2,002) 2,002) 2,002)	\$	- -	\$ - - (	174 ( (	\$ 1) 1) 1)	14,493 1,766 1,766 1,766
Loss on valuation of Deferred profit from Deferred profit from Deferred profit from
financial assets disposal of loading and disposal of loading and disposal of loading and Deferred profit from		3,769		-	(	2,002)		-	(	1)		1,766
unloading equipment unloading equipment unloading disposal of loading and		3,972 3,972 3,972		12,736 12,736 12,736		-	- -	-	- -		- - -	16,708 16,708 16,708
Unrealized expense Unrealized expense Unrealized expense unloading equipment		26,520 26,520 26,520 3,972		5,875 12,736 5,875 5,875		- -	- -	- -	- (	( 147) -	147) 147)	16,708 32,248 32,248 32,248
Unrealized expense Unrealized exchange loss Unrealized exchange loss Unrealized exchange loss		26,520 27,949 27,949 27,949		5,875 22,279 22,279 22,279		- -	- -	- -	( - (	147) (	30) 30) 30)	32,248 50,198 50,198 50,198
Unrealized exchange loss Pension expense and Pension expense and Pension expense and		27,949		22,279		-		-	(	30)		50,198
Pension expense and actuarial losses/(gains) actuarial losses/(gains) actuarial losses/(gains)		364,911 364,911 (	(	10,499) 10,499) 10,499)		14,609 14,609 14,609		-	- - (	( ( 3,296)	3,296) 3,296)	365,725 365,725 365,725
actuarial losses/(gains) Others Others Others Others		364,911 548 548 548	(	10,499) 3,816 3,816 3,816		14,609 -	- -	- -	( - (	3,296) ( 199)	199) 199)	365,725 4,165 4,165 4,165
Net operating loss Net operating loss Net operating loss Net operating loss		548 59,402 59,402 59,402		3,816 117,309 117,309 117,309		- -	- -	- -	( -	199)	- - -	4,165 176,711 176,711 176,711
carryforward carryforward carryforward carryforward		59,402		117,309		-		-		-		176,711
Subtotal Subtotal Subtotal \$ Subtotal	\$ \$ \$	489,531 489,531 489,531 \$ 489,531	\$ \$ \$	163,375 163,375 163,375 163,375	\$ \$ \$ \$	12,607 12,607 12,607 12,607	\$ \$	\$ \$ - -	- (\$	(\$ (\$ (\$ 3,499) 3,499)	3,499) 3,499) \$	\$ \$ \$ 662,014 662,014 662,014 662,014
炼Deferred tax liabilities: 炼Deferred tax liabilities: 炼Deferred tax liabilities: 炼Deferred tax liabilities:
Temporary differences: Temporary differences: Temporary differences: Temporary differences:
Unrealized exchange gain Unrealized exchange gain Unrealized exchange gain (\$ (\$ Unrealized exchange gain	(\$ (\$	24,003) 24,003) 24,003) \$ 24,003)	\$ \$ \$	1,644 1,644 1,644 1,644	\$ \$ \$ \$	- -	- - \$ \$	\$ \$ - -	- \$	\$ \$ \$ 1,360 1,360	1,360 1,360 (\$ (\$	(\$ (\$ 20,999) 20,999) 20,999) 20,999)
Unrealized gain Unrealized gain Unrealized gain Unrealized gain ( ( (	(	9,131) 9,131) 9,131) 9,131)		147 147 147 147		- -	- -	- -	-	3,151 3,151	3,151 3,151 ( (	( ( 5,833) 5,833) 5,833) 5,833)
Pension expense and Pension expense and Pension expense and Pension expense and actuarial losses/(gains) actuarial losses/(gains) actuarial losses/(gains) actuarial losses/(gains) ( ( (	(	2,926) 2,926) 2,926) 2,926)		- - - -		5,558 5,558 5,558 5,558		- -	( - - (	2,865) ( ( 2,865)	( 2,865) 2,865) (	233) ( ( 233)
Foreign investment income Foreign investment income Foreign investment income Foreign investment income ( ( (	(	876,385) 876,385) 876,385)		303,322 303,322 303,322 303,322		14,974 14,974 14,974 14,974	( (	98) ( ( (	98) ( 98)( 98)	60) (	60) ( 60)( 60) (	558,247) 558,247) 558,247) 558,247)
Others ( ( ( Others Others Others	(	48,946) ( 48,946) ( 48,946)( 48,946) (		2,014) 2,014) 2,014) 2,014)		- -	- -	- -	-	3,090 3,090	( 3,090 3,090 (	47,870) ( ( 47,870) 47,870) 47,870)
Subtotal (\$ (\$ Subtotal Subtotal Subtotal	(\$ (\$	961,391) 961,391) 961,391) \$	\$ \$ \$	303,099 303,099 303,099 303,099	\$ \$ \$ \$	20,532 20,532 20,532 20,532	(\$ (\$	98) (\$ (\$ 98)	\$ 98) 98)	4,676 \$ \$ \$ 4,676	(\$ 4,676 4,676 (\$	633,182) (\$ (\$ 633,182) 633,182) 633,182)
Total (\$ (\$ Total Total	(\$ (\$	471,860) 471,860) 471,860) \$	\$ \$ \$	466,474 466,474 466,474 466,474	\$ \$ \$ \$	33,139 33,139 33,139 33,139	(\$ (\$	98) (\$ (\$ 98)	\$ 98) 98)	1,177 \$ \$ \$ 1,177	\$ 1,177 1,177	28,832 \$ \$ \$ 28,832 28,832 28,832

D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows: December 31, 2017 D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows: D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows: D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

			December December December	31, 31, 31, 2017 2017 2017
Qualifying items Qualifying Qualifying Qualifying items items items Investments in emerging	Unused	Unused tax Unused Unused tax tax tax credits credits credits credits	Unrecognised Unrecognised Unrecognised Unrecognised deferred tax assets deferred deferred deferred tax tax tax assets assets assets		Expiry year Expiry Expiry Expiry year year year
Investments Investments Investments in in in emerging emerging emerging important strategic industries important important important strategic strategic strategic industries industries industries	\$ \$ \$	42,068 42,068 42,068	\$ \$ \$ \$	- - -	2020 2020 2020 2020

December 31, 2017
		Amount filed/				Unrecognised
Year incurred		assessed		Unused amount		deferred tax assets	Expiry year
2017	\$	116,177	\$	116,177	\$	-	2027
2016		747,045		747,045		-	2026
2015		269,787		269,787		-	2025
	\$	1,133,009	\$	1,133,009	\$	-
				December 31, 2016
						Unrecognised
Year incurred		Amount filed		Unused amount		deferred tax assets	Expiry year
2016	\$	747,045	\$	747,045	\$	-	2026
2015		292,430		292,430		-	2025
	\$	1,039,475	\$	1,039,475	\$	-

E. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

• F. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2017 and 2016, the amounts of temporary difference unrecognised as deferred tax liabilities were \$13,018,477 and \$10,868, 779, respectively.
• G. The Company's income tax returns through 2015 have been assessed and approved by the Tax Authority.
• H. With the abolishment of the imputation tax system under the amendments to the Income Tax Act promulgated by the President of the Republic of China in February, 2018, the information on unappropriated retained earnings and the balance of the imputation credit account as of December 31, 2017, as well as the estimated creditable tax rate for the year ended December 31, 2017 is no longer disclosed.

Accumulated deficit on December 31, 2016:

	December	31, 2016
Deficit incurred in and before 1997	(\$	4,248,211)

I. As of December 31, 2016, the balance of the imputation tax credit account was \$2,412,471. As of December 31, 2016, the Company has accumulated deficits and has no distributable earnings. As a result, creditable tax rate was not disclosed.

(29) Earnings (loss) per share

		Year	ended December 31,	2017
			Weighted average number of ordinary shares outstanding	Earnings per share
	Amount	after tax	(share in thousands)	(in dollars)
Basic earnings per share Net income attributable to ordinary shareholders of the
parent	\$	7,005,171	3,549,342	\$ 1.97
Diluted earnings per share Net income attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares		7,005,171	3,459,342
Employees' compensation		-	3,375
Net income attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	\$	7,005,171	3,462,717	\$ 1.97
		Year	ended December 31,	2016
	Amount	after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Loss per share (in dollars)
Basic loss per share Net loss attributable to
ordinary shareholders of the parent	(\$	6,607,986)	3,512,356	(\$ 1.88)
Diluted loss per share
Net loss attributable to ordinary shareholders of
the parent	(\$	6,607,986)	3,512,356	(\$ 1.88)

• (30) Transactions with non-controlling interest
• A. Acquisition of additional equity interest in a subsidiary
  • (a) Subsidiary Peony Investment purchased 34% of outstanding shares of subsidiary EGT for cash of \$22,845 (approx. USD 769) on December 31, 2017. The carrying amount of noncontrolling interest in EGT was \$15,311 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by \$15,311 and a decrease in the equity attributable to owners of the parent by \$7,534.
  • (b) Subsidiary Peony Investment purchased 45% of outstanding shares of subsidiary EES for cash of \$85,393 (approx. USD 2,875) on December 31, 2017. The carrying amount of noncontrolling interest in EES was \$86,620 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by \$86,620 and an increase in the equity attributable to owners of the parent by \$1,227.
• B. The effect of changes in interests in EGT and EES on the equity attributable to owners of the parent for the year ended December 31, 2017 is shown below:

	Year ended December
		31, 2017
Carrying amount of non-controlling interest acquired	\$	101,931
Consideration paid to non-controlling interest	(	108,238)
Capital surplus
- difference between proceeds on actual acquisition of or disposal
of equity interest in a subsidiary and its carrying amount	(\$	6,307)

(31) Business combinations

• A. On December 18, 2017, the Company and subsidiary Peony Investment acquired 80% of the shares of EGH for cash of \$6,452,225 and obtained control of the company. The company primarily provides cargo services domestically and internationally and shipping agency services. As a result of the acquisition, the Group is expected to strengthen our foothold in the Greater China market and expand our shipping agency, liner transport, and other related businesses in the region.
• B. On December 27, 2017, subsidiary Peony Investment acquired 70% of the shares of EGM for cash of \$280,668. Previously, on November 30, 2017, Peony Investment received 30% of the shares of EGM from its associate Green Peninsula Agencies SDN. BHD. as a dividend payment. Therefore, Peony owns 100% of the shares of EGM after the acquisition and has control of EGM. The company primarily provides cargo and shipping agency services in Malaysia. As a result of the acquisition, the Group is expected to increase its presence in these markets. It also expects to reduce costs through economies of scale.
• C. The following table summarises the consideration paid and the fair values of the assets acquired and liabilities assumed at the acquisition date, as well as the the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets at the

acquisition date:

		EGH		EGM		Total
Purchase consideration
Cash paid	\$	6,452,225	\$	280,668	\$	6,732,893
Fair value of equity interest in EGM
held before the business combination		-		120,287		120,287
Non-controlling interest's proportionate
share of the recognised amounts of
acquiree's identifiable net assets		1,613,445		-		1,613,445
		8,065,670		400,955		8,466,625
Fair value of the identifiable assets
acquired and liabilities assumed
Cash and cash equivalents		1,251,341		375,173		1,626,514
Notes receivable		3,327		18,084		21,411
Accounts receivable		1,360,142		294,674		1,654,816
Prepayments		241,686		116,245		357,931
Other receivables		28,447		9,928		38,375
Inventories		50,253		-		50,253
Other current assets		1,223,859		191,345		1,415,204
Investments accounted for using
equity method		4,195		-		4,195
Property, plant and equipment, net Investment property, net		5,665,779		99,014		5,764,793
Intangible assets		3,119,127 75,928		- -		3,119,127 75,928
Other non-current assets		10,922		138,069		148,991
Accounts payable	(	1,655,631)	(	351,065)	(	2,006,696)
Other payables	(	159,458)	(	82,512)	(	241,970)
Current income tax liabilities	(	108,094)	(	106,923)	(	215,017)
Other current liabilities	(	1,512,444)	(	292,605)	(	1,805,049)
Long-term loans	(	534,492)		-	(	534,492)
Deferred income tax liabilities	(	947,618)		-	(	947,618)
Other non-current liabilities	(	50,046)	(	4,042)	(	54,088)
Total identifiable net assets		8,067,223		405,385		8,472,608
Gain from bargain purchase	(\$	1,553)	(\$	4,430)	(\$	5,983)

D. The fair value of the acquired identifiable intangible assets was estimated to be \$75,928

• E. The Group originally held 30% of share ownership in EGM before the business combination. Gain on remeasurement of fair value amounted to \$30,253.
• F. The Company and subsidiary Peony Investment consolidated EGH as of December 18, 2017, and EGH contributed operating income and pre-tax loss of \$317,144 and \$28,251 respectively. Had EGH been consolidated from January 1, 2017, the consolidated statement of comprehensive income would show operating revenue of \$2,340,377 and profit before income tax of \$455,118.

G. Subsidiary Peony Investment consolidated EGM as of December 27, 2017, and EGM contributed operating income and pre-tax loss of \$3,531 and \$331, respectively. Had EGM been consolidated from January 1, 2017, the consolidated statement of comprehensive income would show operating revenue of \$341,516 and profit before income tax of \$98,988.

(32) Supplemental cash flow information

Investing activities with partial cash payments

A.Property, plant and equipment

	Year	ended December 31, 2017	Year ended December 31, 2016
Purchase of property, plant and equipment	\$	1,602,423	\$	1,674,832
Add: Opening balance of payable on equipment		15,693		10,360
Less: Ending balance of payable on equipment	(	58,347)	(	15,693)
Cash paid during the period	\$	1,559,769	\$	1,669,499

B.Prepayments for equipment (recorded as other non-current assets)

	Year	ended December 31, 2017	Year ended December 31, 2016
Purchase of prepayments for equipment	\$	5,615,770	\$	2,771,129
Add: Opening balance of payable on prepayments for equipment
Less: Ending balance of payable on prepayments for		124,787		5,767
equipment	(	4,638)	(	124,787)
Capitalisation of qualifying assets	(	107,084)	(	55,774)
Cash paid during the period	\$	5,628,835	\$	2,596,335
C.Intangible assets
		Year ended December 31, 2017		Year ended December 31, 2016
Purchase of intangible assets Add: Opening balance of payable	\$	7,397	\$	124,775
on intangible assets Less: Ending balance of payable		48,347		-
on intangible assets		-	(	48,347)
Cash paid during the period	\$	55,744	\$	76,428

D. The balances of the assets and liabilities of consolidated subsidiaries for the current period are as follows:

	Year	ended December
		31, 2017
Cash and cash equivalents	\$	1,626,514
Notes receivable		21,411
Accounts receivable		1,654,816
Prepayments		357,931
Other receivable		38,375
Inventories		50,253
Other current assets		1,415,204
Investments accounted for using equity method		4,195
Property, plant and equipment, net		5,764,793
Investment property, net		3,119,127
Intangible assets		75,928
Deferred income tax assets		142,849
Other non-current assets		6,142
Accounts payable	(	2,006,696)
Other payables	(	241,970)
Current income tax liabilities	(	215,017)
Other current liabilities	(	1,805,049)
Long-term loans	(	534,492)
Deferred income tax liabilities	(	947,618)
Other non-current liabilities	(	54,088)
Gain from bargain purchase	(	5,983)
	\$	8,466,625
Cash paid for the acquisition	\$	6,732,893
Cash and cash equivalents	(	1,626,514)
Net cash paid for the acquisition	\$	5,106,379
E. Change in non-controlling interest
	Year	ended December 31, 2017
Change in transactions with non-controlling interest	\$	108,238

Add: Opening balance of payable on investments -

Less: Ending balance of payable on investments ( 22,845) Cash paid during the period \$ 85,393

7. RELATED PARTY TRANSACTIONS

(1) Name of related parties and their relationship with the Group

Name of related parties	Relationship with the Group
Evergreen International Storage and Transport Corp.	Associate
Eva Airways Corp.	Associate
Evergreen Security Corp.	Associate
Charng Yang Development Co., Ltd.	Associate
Taipei Port Container Terminal Corp.	Associate
Ningbo Victory Container Co. Ltd.	Associate
Qingdao Evergreen Container Storage & Transportation Co. Ltd.	Associate
Evergreen Marine (Latin America) S.A.	Associate
Green Peninsula Agencies SDN.BHD	Associate
Luanta Investment (Netherlands) N.V.	Associate
Taranto Container Terminal S.p.A.	Associate
Balsam Investment (Netherlands) N.V.	Associate
Italia Marittima S.p.A.	Associate
Colon Container Terminal S.A.	Associate
PT. Evergreen Shipping Agency Indonesia	Associate
Evergreen Shipping Agency (Vietnam) Corp.	Associate
Evergreen Shipping Agency Co. (U.A.E) LLC	Associate
Evergreen International Corp.	Other related party
Evergreen Airline Service Corp.	Other related party
Chang Yung-Fa Charity Foundation	Other related party
Chang Yung-Fa Foundation	Other related party
Eever Accord Construction Corporation	Other related party
Evergreen International S.A.	Other related party
Evergreen Marine (Singapore) Pte. Ltd.	Other related party
Gaining Enterprise S.A.	Other related party
Eevergreen Insurance Company Limited	Other related party
Evergreen Shipping Agency (America) Corporation	Other related party
Evergreen Shipping Agency (Japan) Corporation	Other related party
Evergreen Shipping Agency (Philippines) Corporation	Other related party
	Other related party
Evergreen Marine (Hong Kong) Ltd.	(As of subsidiary since
	December 18, 2017)

(2) Significant related party transactions and balances (2) Significant related party transactions and balances (2) Significant related party transactions and balances

		Year Year Year ended ended ended December December December 31, 31, 31, 2017 2017 2017		Year Year Year	ended ended ended December December December 31, 31, 31, 2016 2016 2016
Sales Sales Sales of of of services: services: services:
	Associates Associates Associates	\$ \$ \$	3,191,386 3,191,386 3,191,386	\$ \$	3,655,458 3,655,458
	Other Other related related parties parties		10,692,025 10,692,025		12,117,953 12,117,953
		\$ \$	13,883,411 13,883,411	\$ \$	15,773,411 15,773,411

The business terms on which the Group transacts with related parties are of no difference from those with non-related parties. The business terms on which the Group transacts with related parties are of no difference from those with non-related parties. those with non-related parties. Other related parties 10,692,02512,117,953\$ 13,883,411\$ 15,773,411Year ended December Year ended December

B.Purchases: B.Purchases:

		Year Year	ended ended December December 31, 31, 31, 2017 2017 2017	Year Year	ended ended December December 31, 31, 31, 2016 2016 2016
Purchases Purchases Purchases of of of	services: services:
	Associates Associates Associates	\$ \$ \$	3,717,601 3,717,601 3,717,601	\$ \$	3,126,670 3,126,670
	Other Other related related parties parties		7,698,504 7,698,504		5,880,186 5,880,186
		\$ \$	11,416,105 11,416,105	\$ \$	9,006,856 9,006,856

C.Receivables from related parties : C.Receivables from related parties : C.Receivables from related parties :

Other Other Other related related related parties parties parties		7,698,504 7,698,504 7,698,504		5,880,186 5,880,186 5,880,186
	\$ \$ \$	11,416,105 11,416,105 11,416,105	\$ \$ \$	9,006,856 9,006,856 9,006,856
Goods Goods and and services services are are purchased purchased from from	associates associates	and and other other related related	parties parties on on	normal normal commercial commercial
terms terms terms and and and conditions. conditions.
C.Receivables C.Receivables C.Receivables from from from related related related parties parties parties : : :
	December	December December 31, 31, 31, 2017 2017 2017	December December December	31, 31, 31, 2016 2016 2016
Accounts Accounts Accounts receivable: receivable: receivable:
Associates Associates Associates	\$ \$ \$	162,609 162,609 162,609	\$ \$	183,493 183,493 183,493
Other Other Other related related related parties parties parties		631,012 631,012 631,012		739,181 739,181 739,181
Subtotal Subtotal Subtotal	\$ \$	793,621 793,621 793,621	\$ \$	922,674 922,674 922,674
Other Other Other receivables: receivables: receivables:
Associates Associates Associates
-Other -Other -Other	\$ \$	3,038 3,038 3,038	\$ \$ \$	2,527 2,527 2,527
Other Other Other related related related parties parties parties
-EIC -EIC -EIC		162,433 162,433 162,433		181,900 181,900
-Other -Other -Other		48,789 48,789 48,789		22,829 22,829 22,829
Subtotal Subtotal Subtotal	\$ \$	214,260 214,260 214,260	\$ \$	207,256 207,256 207,256
Total Total Total	\$ \$ \$	1,007,881 1,007,881 1,007,881	\$ \$ \$	1,129,930 1,129,930 1,129,930

The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. There are no provisions against receivables from related parties. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. There are no provisions against receivables from related parties. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in and bear are no provisions against receivables from related

		December December December December	31, 31, 31, 31, 2017 2017 2017 2017	December December December December	31, 31, 31, 31, 2016 2016 2016 2016
Accounts Accounts Accounts Accounts payable: payable:	payable: payable:
	Associates Associates Associates Associates	\$ \$ \$ \$	57,279 57,279 57,279 57,279	\$ \$ \$ \$	116,075 116,075 116,075 116,075
	Other Other Other Other related related related related parties parties parties parties		146,589 146,589 146,589 146,589		175,702 175,702 175,702 175,702
	Subtotal Subtotal Subtotal Subtotal	\$ \$ \$ \$	203,868 203,868 203,868 203,868	\$ \$ \$ \$	291,777 291,777 291,777 291,777
Other Other Other Other payables: payables: payables: payables:
	Associates Associates Associates Associates	\$ \$ \$ \$	11,752 11,752 11,752 11,752	\$ \$ \$ \$	5,992 5,992 5,992 5,992
	Other Other Other Other related related related related parties parties parties parties		113,616 113,616 113,616 113,616		72,921 72,921 72,921 72,921
	Subtotal Subtotal Subtotal Subtotal	\$ \$ \$ \$	125,368 125,368 125,368 125,368	\$ \$ \$ \$	78,913 78,913 78,913 78,913
	Total Total Total Total	\$ \$ \$ \$	329,236 329,236 329,236 329,236	\$ \$ \$ \$	370,690 370,690 370,690 370,690
The The The payables payables payables interest. interest. interest.	to to to related related related parties parties parties arise arise arise	mainly mainly mainly from from from	purchase purchase purchase	transactions. transactions. transactions. The The The	payables payables payables bear bear bear
E.Property E.Property E.Property E.Property	transactions: transactions: transactions: transactions:
(a) (a) (a) (a) Acquisition Acquisition Acquisition Acquisition	of of of of property, property, property, property, plant plant plant plant and and and and	equipment: equipment: equipment: equipment:
		Year ended December Year ended December Year ended December Year ended December			Year ended December Year ended December Year ended December Year ended December

E.Property transactions: E.Property transactions: E.Property transactions: E.Property transactions:

		Year ended December Year ended December Year ended December	Year ended December Year ended December Year ended December
		31, 2017 31, 2017 31, 2017 31, 2017		31, 2016 31, 2016 31, 2016
Associates Associates Associates Associates	\$ \$ \$ \$	4,350 4,350 4,350	\$ \$ \$ \$	10,620 10,620 10,620 10,620
Other related parties Other related parties Other related parties Other related parties		4,199 4,199 4,199		54,979 54,979 54,979 54,979
	\$ \$ \$ \$	8,549 8,549 8,549	\$ \$ \$ \$	65,599 65,599 65,599 65,599

D.Payables D.Payables D.Payables D.Payables to to to to related related related related	parties: parties: parties: parties:
				December December December December	31, 31, 31, 31,	2017 2017 2017 2017	December December December	December 31,	31, 31, 31, 2016 2016 2016 2016
Accounts Accounts Accounts Accounts payable: payable: payable: payable:
	Associates Associates Associates Associates		\$ \$	\$ \$		57,279 57,279 57,279 57,279	\$ \$ \$ \$		116,075 116,075 116,075 116,075
	Other Other Other Other	related related related related parties parties parties parties				146,589 146,589 146,589 146,589			175,702 175,702 175,702 175,702
	Subtotal Subtotal Subtotal Subtotal		\$	\$ \$ \$		203,868 203,868 203,868 203,868	\$ \$ \$ \$		291,777 291,777 291,777 291,777
Other Other Other Other payables: payables: payables: payables:
	Associates Associates Associates Associates		\$ \$	\$ \$		11,752 11,752 11,752 11,752	\$ \$ \$ \$		5,992 5,992 5,992 5,992
	Other Other Other Other	related related related related parties parties parties parties				113,616 113,616 113,616 113,616			72,921 72,921 72,921 72,921
	Subtotal Subtotal Subtotal Subtotal		\$	\$ \$ \$		125,368 125,368 125,368 125,368	\$ \$ \$ \$		78,913 78,913 78,913 78,913
	Total Total Total Total		\$	\$ \$ \$		329,236 329,236 329,236 329,236	\$ \$ \$ \$		370,690 370,690 370,690 370,690
The The The The payables payables payables payables to to to to	related related related related	parties parties parties parties arise arise	arise arise mainly mainly mainly mainly	from from from from	purchase purchase purchase purchase		transactions. transactions. transactions. transactions.	The The The The	payables payables payables payables bear bear bear bear
interest. interest. interest. interest.
E.Property E.Property E.Property E.Property transactions: transactions: transactions: transactions:
(a) (a) (a) (a) Acquisition Acquisition Acquisition Acquisition of	of of of property, property, property, property,	plant plant plant plant	and and and and equipment: equipment:	equipment: equipment:
					Year ended December Year ended December Year ended December Year ended December		Year ended December Year ended December Year ended December Year ended December
				31, 2017 31, 2017 31, 2017 31, 2017				31, 2016 31, 2016 31, 2016
Associates Associates Associates Associates			\$ \$ \$ \$		4,350 4,350	4,350 \$ \$ \$ \$			10,620 10,620 10,620 10,620
Other related parties Other related parties Other related parties Other related parties					4,199	4,199 4,199			54,979 54,979 54,979 54,979
			\$ \$ \$ \$		8,549	8,549 8,549 \$ \$	\$ \$		65,599 65,599 65,599 65,599
(b) (b) (b) (b) Disposal Disposal Disposal of of of	property, property, property,	plant plant plant and and and and	equipment: equipment: equipment: equipment:
		Year Year	Year Year ended ended ended ended 31, 31, 31,	December December December December 2017 2017 2017			Year Year Year Year ended ended ended ended 31, 31, 31, 31,	December December December 2016 2016 2016 2016	December
			Disposal Disposal Disposal Disposal	Gain Gain Gain Gain	(loss) (loss) (loss) (loss) on on on		Disposal Disposal Disposal Disposal	Gain Gain Gain Gain	(loss) (loss) (loss) (loss) on on on on
			proceeds proceeds proceeds proceeds		disposal disposal disposal disposal		proceeds proceeds proceeds proceeds		disposal disposal disposal disposal
Other Other Other Other related related related related	parties parties parties parties	\$ \$ \$	4,890 4,890 4,890	\$ \$ \$ \$	746 746 746 746	\$ \$ \$ \$	94 94 94 94	\$ \$ \$ \$	6 6 6 6
F.Agency accounts: accounts: accounts: accounts:
					December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017				December 31, 2016 December 31, 2016 December 31, 2016 December 31, 2016
Debit balance of agency accounts: Debit balance of agency accounts: Debit balance of agency accounts: Debit balance of agency accounts:
	Associates Associates Associates Associates			\$ \$ \$ \$		- - - -	\$ \$ \$		21,542 21,542 21,542 21,542
					December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017				December 31, 2016 December 31, 2016 December 31, 2016 December 31, 2016
Credit balance of agency accounts: Credit balance of agency accounts: Credit balance of agency accounts: Credit balance of agency accounts:
	Associates Associates Associates Associates		(\$ (\$	(\$		196,045) 196,045) 196,045) 196,045)	(\$ (\$ (\$ (\$		33,835) 33,835) 33,835)
	Other related parties Other related parties Other related parties Other related parties
	-EIC -EIC -EIC -EIC		( ( ( (			515,617) 515,617) 515,617) 515,617)	( ( ( (		645,696)
F.Agency F.Agency F.Agency	-Other -Other -Other -Other		( ( ( ( (\$	(\$ (\$		1,258,818) 1,258,818) 1,258,818) 1,258,818) 1,970,480) 1,970,480) 1,970,480) 1,970,480)	(\$ (\$ (\$		645,696) 645,696) - - - - 679,531) 679,531) 679,531) 679,531)

G.Shipowner's accounts: G.Shipowner's accounts:

		December 31, 2017 December 31, 2017		December 31, 2016 December 31, 2016
Debit balance of shipowner's accounts: Debit balance of shipowner's accounts:
Other related parties Other related parties
-EIS -EIS	\$ \$	696,616 696,616	\$ \$	- -
-GESA -GESA		25,028 25,028		24,154 24,154
	\$ \$	721,644 721,644	\$ \$	24,154 24,154
		December December 31, 31, 2017 2017	December December	31, 31, 2016 2016
Credit Credit balance balance of of shipowner's shipowner's accounts: accounts: Associates Associates
-ITS -ITS	(\$ (\$	889,198) 889,198)	(\$ (\$	310,278) 310,278)
Other Other related related parties parties
-EMS -EMS	( (	525,647) 525,647)	( (	496,707) 496,707)
-EGH -EGH		- -	( (	919,072) 919,072)
-EIS -EIS		- -	( (	865,317) 865,317)
	(\$ (\$	1,414,845) 1,414,845)	(\$ (\$	2,591,374) 2,591,374)
H.Loans H.Loans to/from to/from related related parties: parties:
(a)Loans (a)Loans to to related related parties: parties:
i.Outstanding i.Outstanding balance: balance:
		December December 31, 31, 2017 2017	December	December 31, 31, 2016 2016
Associates Associates	\$ \$	272,467 272,467	\$ \$	79,811 79,811
ii.Interest ii.Interest income income
	Year Year	ended ended December December	Year Year	ended ended December December
		31, 31, 2017 2017		31, 31, 2016 2016
Associates Associates	\$ \$	2,876 2,876	\$ \$	2,964 2,964
The The loans loans to to associates associates carry carry interest interest	at at floating floating	rates rates for for the the years years	ended ended	December December 31, 31, 2017 2017
and and 2016. 2016.
(b)Loans (b)Loans from from related related parties: parties:
i.Outstanding i.Outstanding balance: balance:

		December 31, 2017 December 31, 2017		December 31, 2016 December 31, 2016
Associates Associates	\$ \$	- -	\$ \$ \$	48,472 48,472
Other related parties Other related parties		877,363 877,363		14,789 14,789
	\$ \$	877,363 877,363	\$ \$	63,261 63,261
	~81~ ~81~

ii.Interest expense:

	Year	ended December	Year ended December
		31, 2017	31, 2016
Associates	\$	765	\$	917
Other related parties		15,401		-
	\$	16,166	\$	917

The loans from associates carry interest at floating rates for the years ended December 31, 2017 and 2016.

I.Endorsements and guarantees provided to related parties:

	December	31, 2017	December 31, 2016
Associates	\$	3,035,391	\$	2,689,558
(3) Key management compensation
		Year ended December 31, 2017	Year ended December 31, 2016
Salaries and other short-term employee benefits Post-employment benefits	\$	207,058 3,909	\$	166,850 5,073
	\$	210,967	\$	171,923

8. PLEDGED ASSETS

The Group's assets pledged as collateral are as follows:

	Book	value
Pledged assets	December 31, 2017		December 31, 2016	Purpose
Other financial assets				Performance
- Pledged time deposits	\$ 324,508	\$	183,200	guarantee
Refundable deposits
- Pledged time deposits	2,000		2,000	Ȼ
Property, plant and equipment
-Land	514,312		514,312	Long-term loan
-Buildings	2,081,017		195,726	Ȼ
-Loading and unloading equipment	1,968,231		2,977,745	Ȼ
-Ships	56,643,395		60,825,653	Ȼ
-Transportation equipment	603,463		801,241	Ȼ
-Computer and communication equipment	659,279		740,223	Ȼ
Investment property
-Land	1,285,781		1,285,781	Long-term loan
-Buildings	3,523,332		489,315	Ȼ
	\$ 67,605,318	\$	68,015,196

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS 9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(4) Contingencies (4) Contingencies

None. None.

• (5) Commitments (5) Commitments
• A. As of December 31, 2017, the Company had delegated Crédit Agricole Corporate and Investment Bank to issue Standby Letter of Credit amounting to USD 5,000 thousand. A. As of December 31, 2017, the Company had delegated Crédit Agricole Corporate and Investment Bank to issue Standby Letter of Credit amounting to USD 5,000 thousand.
• B. A former stockholder of the Company sold some of its shares through issuance of global depository receipts (GDRs). The issuance of GDRs was approved by the SEC on June 19, 1996 as per Letter (85) Tai-Cai-Zheng (1) No. 35410. On August 2, 1996, the GDRs were approved by the UK governing authority to be listed on the London Stock Exchange and were issued in Asia, Europe and the US. The total amount of the issuance of GDRs was USD 115,000 thousand. The initial number of units issued was 5,449,592, representing 54,495,920 shares of the Company's common stock at \$50.50 (in dollars) per share, and the number of supplementary units issued was 817,438. In total, the number of units issued was 6,267,030, representing 62,670,300 shares of the Company's common stock at \$50.50 (in dollars) per share, and the GDRs issued amounted to USD 115,000 thousand. Another 2,089,061 units, representing 20,890,685 shares of the Company's common stock, were issued during the period from 1997 to December 31, 2017. As of December 31, 2017, 7,994,656 units were redeemed and 361,435 units were outstanding, representing 3,614,425 shares of the Company's common stock. B. A former stockholder of the Company sold some of its shares through issuance of global depository receipts (GDRs). The issuance of GDRs was approved by the SEC on June 19, 1996 as per Letter (85) Tai-Cai-Zheng (1) No. 35410. On August 2, 1996, the GDRs were approved by the UK governing authority to be listed on the London Stock Exchange and were issued in Asia, Europe and the US. The total amount of the issuance of GDRs was USD 115,000 thousand. The initial number of units issued was 5,449,592, representing 54,495,920 shares of the Company's common stock at \$50.50 (in dollars) per share, and the number of supplementary units issued was 817,438. In total, the number of units issued was 6,267,030, representing 62,670,300 shares of the Company's common stock at \$50.50 (in dollars) per share, and the GDRs issued amounted to USD 115,000 thousand. Another 2,089,061 units, representing 20,890,685 shares of the Company's common stock, were issued during the period from 1997 to December 31, 2017. As of December 31, 2017, 7,994,656 units were redeemed and 361,435 units were outstanding, representing 3,614,425 shares of the Company's common stock.
• C. As of December 31, 2017, the long-term and medium-term loan facilities granted by the financial institutions with the resolution from the Board of Directors to finance the Group's purchase of new ships and general working capital requirement amounted to \$95,626,923 and the unutilized credits was \$14,958,521. C. As of December 31, 2017, the long-term and medium-term loan facilities granted by the financial institutions with the resolution from the Board of Directors to finance the Group's purchase of new ships and general working capital requirement amounted to \$95,626,923 and the unutilized credits was \$14,958,521.
• D. Operating lease D. Operating lease

The estimated amount of charter expense in the following years under long-term contracts is set forth as follows: The estimated amount of charter expense in the following years under long-term contracts is set forth as follows:

	December December	31, 31, 2017 2017
Within Within 1 1 year year	USD USD	384,917 384,917
1~5 1~5 years years		1,364,964 1,364,964
Over Over 5 5 years years		432,063 432,063
	USD USD	2,181,944 2,181,944

• E. As of December 31, 2017, the amount of guaranteed notes issued by the Company for loans borrowed was \$74,174,616. E. As of December 31, 2017, the amount of guaranteed notes issued by the Company for loans borrowed was \$74,174,616.
• F. To meet its operational needs, the Company signed the shipbuilding contracts with Taiwan Shipbuilding Co., Ltd. and Imabari Shipbuilding Co., Ltd. As of December 31, 2017, the total price of the contracts, wherein the vessels have not yet been delivered, amounted to USD 648,900 thousand, USD 461,802 thousand of which remain unpaid. F. To meet its operational needs, the Company signed the shipbuilding contracts with Taiwan Shipbuilding Co., Ltd. and Imabari Shipbuilding Co., Ltd. As of December 31, 2017, the total price of the contracts, wherein the vessels have not yet been delivered, amounted to USD 648,900 thousand, USD 461,802 thousand of which remain unpaid.

10. SIGNIFICANT DISASTER LOSS 10. SIGNIFICANT DISASTER LOSS 10. SIGNIFICANT DISASTER LOSS

None. None. None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE 11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• A. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company's applicable income tax rate will be raised from 17% to 20% effective from January 1, 2018. This will increase the Company's deferred tax assets and deferred tax liabilities by \$88,349 and \$129,570, respectively, which will be adjusted in the first quarter of 2018. 11. SIGNIFICANT EVENTS AFTER THE BALANCE DATEA. Under the amendments to the Income Tax was promulgated by the President of theRepublic of China in February, 2018, the Company's income tax rate will raised from 17% to 20% effective from January 1, 2018. This will increase the Company's deferred tax assets and deferred tax liabilities by \$88,349 and \$129,570, respectively, which will be adjusted in the first quarter of 2018. A. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company's applicable income tax rate will be raised from 17% to 20% effective from January 1, 2018. This will increase the Company's deferred tax assets and deferred tax liabilities by \$88,349 and \$129,570, respectively, which will be adjusted in the first quarter of 2018.
• B. For details of appropriation of earnings as proposed by the Board of Directors on March 23, 2018, please refer to Note 6(19). B. For details of earnings proposed by the Board on March please refer to Note 6(19).C. On 2018, the consolidated Company signed a shipbuilding contract with Samsung B. For details of appropriation of earnings as proposed by the Board of Directors on March 23, 2018, please refer to Note 6(19).
• C. On February 8, 2018, the consolidated Company signed a shipbuilding contract with Samsung Heavy Industries Co., Ltd., which is valued at USD 755,040 for operational purposes. At the time of the issuance of these financial statements, no payments have been made yet. Heavy Industries Co., Ltd., which is valued at USD 755,040 for operational purposes. At the time of the issuance of these financial statements, have been made yet. C. On February 8, 2018, the consolidated Company signed a shipbuilding contract with Samsung Heavy Industries Co., Ltd., which is valued at USD 755,040 for operational purposes. At the time of the issuance of these financial statements, no payments have been made yet.
• D. For operational purposes, the Board of Directors resolved on March 23, 2018 to purchase shipping equipment (including dry containers, reefer containers and freezing equipment) from China International Marine Containers (Group) Co., Ltd. and Carrier Transicold Pte. Ltd. for USD 144,148 and USD 18,900, respectively. D. For operational purposes, the Board of Directors March 23, 2018 to purchase shipping equipment (including dry reefer containers and freezing equipment) from ChinaInternational Marine Containers (Group) Co., Ltd. and Carrier Transicold Pte. Ltd. for USD 144,148 and USD 18,900, respectively. D. For operational purposes, the Board of Directors resolved on March 23, 2018 to purchase shipping equipment (including dry containers, reefer containers and freezing equipment) from China International Marine Containers (Group) Co., Ltd. and Carrier Transicold Pte. Ltd. for USD 144,148 and USD 18,900, respectively.
• E. In response to international regulations on sulfur content in shipping fuel, the Board of Directors resolved on March 23, 2018 to purchase sulfur emission abatement equipment from Wartsila Finland Oy and Alfa Laval Nijmegen B.V. for USD 54,500 and EUR 19,362, respectively. E. In response international regulations on sulfur content in shipping fuel, the Board of Directors resolved on March 23, 2018 sulfur emission abatement equipment from WartsilaFinland Oy and Alfa Laval Nijmegen B.V. for USD 54,500 and EUR 19,362, E. In response to international regulations on sulfur content in shipping fuel, the Board of Directors resolved on March 23, 2018 to purchase sulfur emission abatement equipment from Wartsila Finland Oy and Alfa Laval Nijmegen B.V. for USD 54,500 and EUR 19,362, respectively.

12. OTHERS 12. OTHERS 12. OTHERS

(1) Capital management (1) Capital management (1) Capital management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital. when managing are to safeguard the Group's ability to continue as agoing concern order to provide returns for shareholders and maintain an optimal capital structure the cost of capital. In order to maintain oradjust the capital the Group may adjust amount of dividends paid to shareholders, return capital to shareholders and issue new shares to an optimal The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and tomaintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital. The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital.

(2) Financial instruments (2) Financial instruments

• A. Fair value information of financial instruments A. Fair value information of financial instruments
• (a) Except for those listed in the table below, the book value of cash and cash equivalents and financial instruments measured at amortised cost (including notes receivable, accounts receivable, other receivables, other financial assets, refundable deposits, guarantee deposits received, held-to-maturity financial assets, short-term borrowings, accounts payable and other payables) are approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(3). (2) Financial instrumentsA. Fair value information of financial instruments(a) Except for those in the table below, the book value of cash and cash equivalents and financial instruments measured at amortised notesaccounts receivable, other other financial assets, refundable deposits, guarantee deposits received, held-to-maturity financial short-term borrowings, accounts payable and otherpayables) approximate to their fair values. The fair value information of instruments measured at fair provided in Note 12(3). Except for those listed in the table below, the book value of cash and cash equivalents and financial instruments measured at amortised cost (including notes receivable, accounts receivable, other receivables, other financial assets, refundable deposits, guarantee deposits received, held-to-maturity financial assets, short-term borrowings, accounts payable and other payables) are approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(3). (a) Except for those listed in the table below, the book value of cash and cash equivalents and financial instruments measured at amortised cost (including notes receivable, accountsreceivable, other receivables, other financial assets, refundable deposits, guarantee depositsreceived, held-to-maturity financial assets, short-term borrowings, accounts payable and other payables) are approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(3).

			December 31, December 31, 2017
			Fair value Fair value
	Book value Book value		Level 3 Level 3
			Fair value Fair value
			Level 3 Level 3
	are are as
the the the risk risk	amount. amount. value value of of the the risks: risks: risk risk and and Department Department Operating Operating as as risk, risk,	risk risk well well	cash cash flows. flows. (including (including foreign foreign risk. risk. The The Group's Group's markets markets and and and and financial financial policies policies approved approved and and hedges hedges The The Board Board as as written written policies policies risk, risk, credit risk, instruments, instruments, and and	to to of of
	\$ \$ \$ \$ carrying risk), risk), the Group's foreign foreign	8,000,000 8,000,000 81,487,631 81,487,631 89,487,631 89,487,631 Book value Book value 3,000,000 3,000,000 92,638,646 92,638,646 95,638,646 95,638,646 measurement measurement Company, Company, the the discounted discounted value value of of the the carrying discounted discounted financial financial credit credit unpredictability unpredictability Group's Group's Finance Finance Department Department Group's management, management, exchange exchange non-derivative non-derivative	\$ \$ \$ \$ \$ \$ follows: follows: coupon market market liquidity liquidity of of financial financial identifies, identifies, interest interest financial financial	8,177,927 8,177,927 85,935,082 85,935,082 94,113,009 94,113,009 December 31, December 31, 2016 3,029,085 3,029,085 97,079,974 97,079,974 100,109,059 100,109,059 rate rate is is approximate approximate to to expected expected cash cash flows flows expected expected financial financial position under under evaluates evaluates Department. Department. rate rate

B.Financial risk management policies B.Financial risk management policies

• (a) The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and financial performance. (a) The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to potential adverse effects on the Group's financial and financial performance.

• (b)Risk management is carried out by the Group's Finance Department under policies approved by the Board of Directors. The Group's Finance Department identifies, evaluates and hedges financial risks in close co-operation with the Group's Operating Department. The Board of Directors provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. (b)Risk management is carried out by the Group's Finance Department under policies approved by the Board of Directors. The Group's Finance Department identifies, evaluates and hedges financial risks in close co-operation with the Group's Operating Department. The Board ofDirectors provides written principles for overall risk management, as well as written policies

• C.Significant financial risks and degrees of financial risks C.Significant financial risks and degrees of financial risks C.Significant financial risks and degrees of financial risks

• (a)Market risk (a)Market risk (a)Market risk

Foreign exchange risk Foreign exchange risk Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and GBP. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations. i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and GBP. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations. i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and GBP. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations.
• ii. The Group's management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group's Finance Department. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group's Finance Department. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a foreign currency that is not the entity's functional currency. ii. The Group's management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group's Finance Department. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group's Finance Department. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a foreign currency that is not the entity's functional currency. ii. The Group's management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group's Finance Department. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group's Finance Department. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a foreign currency that is not the entity's functional currency.
• iii. The Group's businesses involve some non-functional currency operations (the Company's and certain subsidiaries' functional currency: NTD; other certain subsidiaries' functional currency: USD, GBP, EUR and others). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows: iii. The Group's businesses involve some non-functional currency operations (the Company's and certain subsidiaries' functional currency: NTD; other certain subsidiaries' functional currency: USD, GBP, EUR and others). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows: iii. The Group's businesses involve some non-functional currency operations (the Company's and certain subsidiaries' functional currency: NTD; other certain subsidiaries' functional currency: USD, GBP, EUR and others). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December December December 31, 31, 31, 2017 2017 2017
	Foreign Foreign Foreign
	currency currency currency
	amount amount amount			Book Book Book value value value
	(In (In (In Thousands) Thousands) Thousands)	rate	(NTD) (NTD) (NTD)
(Foreign (Foreign (Foreign currency: currency: currency: functional functional functional currency) currency) currency)
Financial Financial Financial assets assets assets
Monetary Monetary Monetary items items items
USD:NTD USD:NTD USD:NTD	946,352 946,352 946,352	29.7005 29.7005 29.7005	\$ \$ \$	28,107,128 28,107,128 28,107,128
EUR:USD EUR:USD EUR:USD	9,375 9,375 9,375	1.1993 1.1993 1.1993		333,936 333,936 333,936
Financial Financial Financial liabilities liabilities liabilities
Monetary Monetary Monetary items items items
USD:NTD USD:NTD USD:NTD	830,955 830,955 830,955	29.7005 29.7005 29.7005	\$ \$ \$	24,679,779 24,679,779 24,679,779
HKD:USD HKD:USD HKD:USD	93,861 93,861 93,861	0.1279 0.1279 0.1279		356,549 356,549 356,549
RMB:USD RMB:USD RMB:USD	143,195 143,195 143,195	0.1532 0.1532 0.1532		651,554 651,554 651,554

	December 31, 2016
	Foreign
	amount			Book value
	(In Thousands)	Exchange rate		(NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	763,170	32.2315	\$	24,598,114
GBP:USD	13,863	1.2294		549,327
Financial liabilities
Monetary items
USD:NTD	620,961	32.2315	\$	20,014,504
GBP:USD	43,874	1.2294		1,738,525

iv. The total exchange gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2017 and 2016 amounted to \$51,516 and \$657,945, respectively.

v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Year ended December 31, 2017
			Sensitivity analysis
					Effect on other
	Degree of		Effect on		comprehensive
	variation		profit or loss		income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	\$	281,071	\$	-
EUR:USD	1%		3,339		-
Financial liabilities
Monetary items
USD:NTD	1%	\$	246,798	\$	-
HKD:USD	1%		3,565		-
RMB:USD	1%		6,516		-

Year ended December 31, 2016
	Effect on other
Degree of	Effect on	comprehensive
variation	profit or loss	income
1%	\$ 245,981	\$ -
1%	5,493	-
1%	\$ 200,145	\$ -
1%	17,385	-
		Sensitivity analysis

Price risk

• i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet either as available-for-sale or at fair value through profit or loss. The Group is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
• ii. The Group's investments in equity securities comprise domestic listed and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, equity would have increased/decreased by \$22,364 and \$26,514 for the years ended December 31, 2017 and 2016, respectively, as a result of gains/losses on equity securities classified as available-for-sale.

Interest rate risk

• i. The Group's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the years ended December 31, 2017 and 2016, the Group's borrowings at variable rate were denominated in the NTD, USD and GBP.
• ii. At December 31, 2017 and 2016, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2017 and 2016 would have been \$702,141 and \$795,571 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

(b)Credit risk (b)Credit risk (b)Credit risk (b)Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group's credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with high reputation are accepted. i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group's credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with high reputation are accepted. i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group's credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with high reputation are accepted. i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group's credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with high reputation are accepted.
• ii. For the years ended December 31, 2017 and 2016, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from nonperformance by these counterparties. ii. For the years ended December 31, 2017 and 2016, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from nonperformance by these counterparties. ii. For the years ended December 31, 2017 and 2016, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from nonperformance by these counterparties. ii. For the years ended December 31, 2017 and 2016, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from nonperformance by these counterparties.
• iii. For credit quality information of financial assets that are neither past due nor impaired, please refer to Note 6(5). iii. For credit quality information of financial assets that are neither past due nor impaired, please refer to Note 6(5). iii. For credit quality information of financial assets that are neither past due nor impaired, please refer to Note 6(5). iii. For credit quality information of financial assets that are neither past due nor impaired, please refer to Note 6(5).
• (c)Liquidity risk (c)Liquidity risk (c)Liquidity risk (c)Liquidity risk
• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group's Finance Department. Group's Finance Department monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs. i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group's Finance Department. Group's Finance Department monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs. i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group's Finance Department. Group's Finance Department monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs. i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group's Finance Department. Group's Finance Department monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs.
• ii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. ii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. ii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. ii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities.

		Between 3
December 31, 2017	Less than 3	months and	Between 1	Between 2	Over 5
	months	1 year	and 2 years	and 5 years	years	Total
Accounts payable Accounts payable	\$ 15,358,566	\$ 71	\$ 14	\$ -	\$ -	\$15,358,651
- related parties	188,582	15,286	-	-	-	203,868
Other payables	2,683,132	426,465	-	-	1,558	3,111,155
Other payables
- related parties	138,764	863,967	-	-	-	1,002,731
Bonds payable Long-term loans	-	84,000	84,000	8,210,000	-	8,378,000
(including current
portion)	3,611,101	14,125,522	19,548,867	32,884,400	16,685,608	86,855,498
Long-term leases (including current
portion)	505,416	844,283	1,672,398	8,359,595	349,204	11,730,896
Non-derivative	financial liabilities:
		Between 3
December 31, 2016	Less than 3	months and	Between 1	Between 2	Over 5
	months	1 year	and 2 years	and 5 years	years	Total
Accounts payable	\$ 12,609,645	\$ 6,221	\$ 19	\$ -	\$ -	\$12,615,885
Accounts payable - related parties	291,777	-	-	-	-	291,777
Other payables	1,465,884	367,305	3,435	-	1,663	1,838,287
Other payables
- related parties Bonds payable	78,913	63,261	-	-	-	142,174
(including current
portion)	-	3,038,400	-	-	-	3,038,400
Long-term loans
(including current portion)	4,605,509	12,025,996	19,856,241	39,796,394	22,434,912	98,719,052
Long-term leases
(including current
portion)	542,235	988,453	1,464,716	3,898,557	7,367,299	14,261,260

Non-derivative financial liabilities:

• iii. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.
• (3) Fair value estimation
• A.Details of the fair value of the Group's financial assets and financial liabilities not measured at fair value are provided in Note 12(2)A. Details of the fair value of the Group's investment property measured at cost are provided in Note 6(10).
• B.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities. A market is regarded as active if it meets all the following conditions: the items traded

in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group's investment in listed stocks, beneficiary certificates and derivative instruments with quoted market prices is included in Level Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group's investment in listed stocks, beneficiary certificates and derivative instruments with quoted market prices is included in Level Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group's investment in listed stocks, beneficiary certificates and derivative instruments with quoted market prices is included in Level Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group's investment in listed stocks, beneficiary certificates and derivative instruments with quoted market prices is included in Level Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data. Level 3: Inputs for the asset or liability that are not based on observable market data. Level 3: Inputs for the asset or liability that are not based on observable market data. Level 3: Inputs for the asset or liability that are not based on observable market data.

C.The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2017 and 2016 is as follows: C.The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2017 and 2016 is as follows: C.The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2017 and 2016 is as follows: C.The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2017 and 2016 is as follows:

December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017	Level 1 Level 1 Level 1 Level 1	Level 2 Level 2 Level 2 Level 2	Level 3 Level 3 Level 3 Level 3	Total Total Total Total
Assets: Assets: Assets: Assets:
Recurring fair value Recurring fair value Recurring fair value Recurring fair value
measurements measurements measurements measurements
Available-for-sale financial assets Available-for-sale financial assets Available-for-sale financial assets Available-for-sale financial assets
Equity securities Equity securities Equity securities Equity securities	\$ \$ \$ \$ 1,144,974 1,144,974 1,144,974 1,144,974	\$ \$ \$ \$ - - - -	\$ \$ \$ \$ 1,137,645 1,137,645 1,137,645 1,137,645	\$ \$ \$ \$ 2,282,619 2,282,619 2,282,619 2,282,619
December December December December 31, 31, 31, 31, 2016 2016 2016 2016	Level Level Level Level 1 1 1 1	Level Level Level Level 2 2 2 2	Level Level Level Level 3 3 3 3	Total Total Total Total
Assets: Assets: Assets: Assets:
Recurring Recurring Recurring Recurring fair fair fair fair value value value value
measurements measurements measurements measurements
Available-for-sale Available-for-sale Available-for-sale Available-for-sale financial financial financial financial assets assets assets assets
Equity Equity Equity Equity securities securities securities securities	\$ \$ \$ \$ 1,638,024 1,638,024 1,638,024 1,638,024	\$ \$ \$ \$ - - - -	\$ \$ \$ \$ 1,056,802 1,056,802 1,056,802 1,056,802	\$ \$ \$ \$ 2,694,826 2,694,826 2,694,826 2,694,826

D. The methods and assumptions the Group used to measure fair value are as follows: D. The methods and assumptions the Group used to measure fair value are as follows: D. The methods and assumptions the Group used to measure fair value are as follows: D. The methods and assumptions the Group used to measure fair value are as follows:

(a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: (a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: (a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: (a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed shares Listed shares Listed shares Listed shares
Market quoted price	Closing price
Market quoted price	Closing price
Market quoted price	Closing price
Market quoted price	Closing price

• (b)Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters). (b)Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters). (b)Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters). (b)Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

• (c)When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market. (c)When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market. (c)When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market. (c)When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• (d) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation. (d) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

• (e)The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions. (e)The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
• (f) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group's credit quality. (f) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group's credit quality.
• E.For the years ended December 31, 2017 and 2016, there was no transfer between Level 1 and Level 2. E.For the years ended December 31, 2017 and 2016, there was no transfer between Level 1 and Level 2.

F.The following chart is the movement of Level 3 for the years ended December 31, 2017 and 2016: F.The following chart is the movement of Level 3 for the years ended December 31, 2017 and 2016:

	2017 2017		2016 2016
At January 1	\$ 1,056,802	\$	1,344,962
At January 1	\$ 1,056,802	\$	1,344,962
Gains and losses recognised Gains and losses recognised
in other comprehensive in other comprehensive
income (Note 1)	80,843	(	288,160)
income (Note 1)	80,843	(	288,160)
At December 31	\$ 1,137,645	\$	1,056,802
At December 31	\$ 1,137,645	\$	1,056,802

Note 1: Recorded as unrealised valuation gain or loss of available-for-sale financial assets. Note 1: Recorded as unrealised valuation gain or loss of available-for-sale financial assets.

G.For the years ended December 31, 2017 and 2016, there was no transfer into or out from Level 3. H.The Group is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. G.For the years ended December 31, 2017 and 2016, there was no transfer into or out from Level 3. H.The Group is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

I.The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: I.The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at Fair value at		Significant Significant	Range Range
	December December	Valuation Valuation	unobservable unobservable	(weighted (weighted	Relationship of inputs Relationship of inputs
	31, 2017 31, 2017	technique technique	input input	average) average)	to fair value to fair value
Non-derivative equity Non-derivative equity instrument: instrument:
Unlisted shares Unlisted shares \$	\$ 1,129,949 1,129,949	Market Market comparable comparable companies companies	Price to Price to earnings ratio earnings ratio multiple multiple	15.33~31.89 15.33~31.89	The higher the multiple The higher the multiple and control premium, and control premium, the higher the fair value the higher the fair value
			Price to book Price to book ratio multiple ratio multiple	0.48~1.71 0.48~1.71	The higher the multiple The higher the multiple and control premium, and control premium, the higher the fair value the higher the fair value The higher the
			Discount for Discount for lack of lack of marketability marketability	20% 20%	The higher the weighted average cost weighted average cost of capital and discount of capital and discount for lack of control, the lower the fair value for lack of control, the
Venture capital shares Private equity fund Venture capital shares investment Private equity fund	7,696 7,696	Net asset value Net asset	Net asset value Net asset		The higher the net asset lower the fair value value, the higher the The higher the net asset fair value value, the higher the
investment	Fair value at	value	value Significant	Range	fair value
	December Fair value at	Valuation	unobservable Significant	(weighted Range	Relationship of inputs to
	31, 2016 December	technique Valuation	input unobservable	average) (weighted	fair value Relationship of inputs to
Non-derivative equity instrument:	31, 2016	technique	input	average)	fair value
Non-derivative equity instrument: Unlisted shares	\$ 1,049,106	Market comparable Market companies	Price to earnings ratio Price to multiple	9.32~32.31	The higher the multiple and control premium, the The higher the multiple higher the fair value
Unlisted shares \$	1,049,106	comparable companies	earnings ratio Price to book multiple ratio multiple	9.32~32.31 0.42~2.97	and control premium, the The higher the multiple higher the fair value and control premium, the higher the fair value The higher the multiple
			Price to book ratio multiple Discount for lack of marketability Discount for lack of	0.42~2.97 20% 20%	The higher the weighted and control premium, the average cost of capital higher the fair value and discount for lack of The higher the weighted control, the lower the average cost of capital fair value
Venture capital shares Private equity fund investment	7,696	Net asset value	marketability Net asset value		and discount for lack of The higher the net asset control, the lower the value, the higher the fair fair value value

The higher the net asset

Venture capital shares

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in difference measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed: J. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in difference measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

					December 31, 2017 December	31,	2017
			Recognised	in	Recognised in profit or profit or		Recognised in other Recognised		in other
				loss loss			comprehensive income comprehensive		income
			Favourable Favourable		Unfavourable Unfavourable		Favourable Favourable		Unfavourable Unfavourable
	Input Input	Change Change	change change		change change		change change		change change
Financial assets
Financial assets Price Equity Equity ratio/ instrument instrument ratio/	Price to earnings to earnings ratio/ price to book price to book ratio/ discount for ±1% discount for lack of marketability	±1% \$	\$ - -	\$ \$	- -	\$ \$	11,299 11,299	\$ \$	11,299 11,299
lack	of marketability Net asset value	±1%	-		-		77		77
Net	asset value ±1%		- \$ -	\$	- -	\$	77 11,376	\$	77 11,376
		\$	-	\$	- December 31, 2016	\$	11,376	\$	11,376
			Recognised	in loss	December Recognised in profit or profit or	31,	2016 Recognised in other Recognised comprehensive income		in other
			Favourable	loss	Unfavourable		Favourable comprehensive		Unfavourable income
	Input	Change	change Favourable		change Unfavourable		change Favourable		change Unfavourable
Financial assets	Input	Change	change		change		change		change
Financial assets Equity Price instrument Equity ratio/	Price to earnings ratio/ price to book to earnings ratio/ discount for price to book lack of marketability ±1%	±1% \$	\$ - -	\$ \$	- -	\$ \$	10,491 10,491	\$ \$	10,491 10,491
instrument ratio/ lack	discount for Net asset value of marketability	±1%	-		-		77		77
			\$ -	\$	-	\$	10,568	\$	10,568 77
Net	asset value ±1%		-		-		77

13. SUPPLEMENTARY DISCLOSURES

• (1) Significant transactions information
• A.Loans to others: Please refer to table 1.
• B.Provision of endorsements and guarantees to others: Please refer to table 2.
• C.Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
• D.Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital: Please refer to table 4.
• E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: None.
• F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None.
• G.Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 5.
• H.Receivables from related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 6.
• I. Trading in derivative instruments undertaken during the reporting periods: None.
• J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
• (2) Information on investees (not including investees in Mainland China)

Names, locations and other information of investee companies (not including investees in Mainland China)ǺPlease refer to table 8.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 9.

B.Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

14. SEGMENT INFORMATION

(1) General information

Management has determined the operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decisions.

There is no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information in this period.

(2) Measure of segment information

The Group assesses the performance of the operating segments based on the profits and losses of segments.

(3) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

			Year ended December 31, 2017
		Transportation Department	Other Departments		Adjustments and written-off		Total
Revenue from external customers	\$	148,746,685	\$ 1,836,007	\$	-	\$	150,582,692
Revenue from internal customers		17,503,128	-	(	17,503,128)		-
Segment revenue		166,249,813	1,836,007	(	17,503,128)		150,582,692
Interest income		417,798	19,156		-		436,954
Interest expense Depreciation	(	1,336,931) (	43,785)		-	(	1,380,716)
and amortisation	(	7,410,359) (	319,715)		-	(	7,730,074)
Share of income (loss) of associates and joint ventures accounted for
using equity method		1,401,092	1,082,503		-		2,483,595
Other items	(	135,361,899) (	1,583,003)		-	(	136,944,902)
Segment profit (loss)	\$	23,959,514	\$ 991,163	(\$	17,503,128)	\$	7,447,549
Recognizable assets Investments accounted for	\$	168,476,948	\$ 4,819,923	\$	-	\$	173,296,871
using equity method		19,745,077	7,037,949		-		26,783,026
Segment assets	\$	188,222,025	\$ 11,857,872	\$	-	\$	200,079,897
Segment liabilities	\$	131,942,538	\$ 1,448,569	\$	-	\$	133,391,107

				Year ended December 31, 2016
	Transportation		Investing and holding	Other		Adjustments and
Revenue from	Department		Department	Departments		written-off		Total
external customers Revenue from	\$122,900,865	\$	275,595	\$ 1,291,148	\$	-		\$ 124,467,608
internal customers	16,132,037		-	-	(	16,132,037)		-
Segment revenue	139,032,902		275,595	1,291,148	(	16,132,037)		124,467,608
Interest income	269,889		5,071	2,789		-		277,749
Interest expense Depreciation	( 1,194,704) (		51,238) (	10)		-	(	1,245,952)
and amortisation	( 7,787,317) (		325,103) (	24,211)		-	(	8,136,631)
Share of income (loss) of associates and joint ventures accounted for using equity method	968,689	(	1,956,351)	-		-	(	987,662)
Other items	( 121,831,922) (		103,886) (	1,248,287)		-	(	123,184,095)
Segment profit (loss)	\$ 9,457,537	(\$	2,155,912)	\$ 21,429	(\$	16,132,037) (\$		8,808,983)
Recognizable assets Investments accounted for	\$ 159,419,897	\$	3,004,703	\$ 1,550,111	\$	-		\$ 163,974,711
using equity method	18,994,978		6,784,075	-		-		25,779,053
Segment assets	\$178,414,875	\$	9,788,778	\$ 1,550,111	\$	-		\$ 189,753,764
Segment liabilities	\$ 134,304,831	\$	1,521,363	\$ 289,069	\$	-		\$ 136,115,263

(4) Reconciliation for segment income (loss)

A.Sales between segments are carried out at arm's length. The revenue from external parties reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

• B.The amounts provided to the Chief Operating Decision-Maker with respect to total assets are measured in a manner consistent with that in the balance sheet.
• C.The amounts provided to the Chief Operating Decision-Maker with respect to total liabilities are measured in a manner consistent with that in the balance sheet.
• D.The amounts provided to the Chief Operating Decision-Maker with respect to segment profit (loss) are measured in a manner consistent with the income (loss) before tax from continuing operations.

		Year ended December 31, 2017 Year ended December 31, 2017			Year ended December 31, 2016 Year ended December 31, 2016
			% of Account % of Account			% of Account % of Account %
Service routes Service routes		Amount Amount	Balance Balance		Amount Amount	Balance Balance
North America North America	\$ \$	52,789,741 52,789,741	39 39	\$ \$	47,309,728 47,309,728	43 43
Europe Europe		37,900,327 37,900,327	28 28		22,004,525 22,004,525	20 20
Asia Asia		29,778,828 29,778,828	22 22		25,305,203 25,305,203	23 23
Others Others		14,889,414 14,889,414	11 11		15,403,167 15,403,167	14 14
	\$ \$	135,358,310 135,358,310	100 100	\$ \$	110,022,623 110,022,623	100 100

(5) Trading information (5) Trading information

(6) Geographical information (6) Geographical information

		Year Year ended ended December	December	31, 31, 2017 2017		Year Year Year ended ended ended December	December	31, 31, 2016 2016
				Non-current Non-current				Non-current Non-current
Service Service routes routes		Revenue Revenue		assets assets		Revenue Revenue		assets assets
Taiwan Taiwan	\$ \$	26,534,097 26,534,097		32,260,172 32,260,172	\$ \$	19,814,103 19,814,103		30,637,333 30,637,333
America America		66,722,280 66,722,280		28,478,053 28,478,053		57,465,469 57,465,469		30,781,100 30,781,100
Europe Europe		53,904,721 53,904,721		38,404,276 38,404,276		44,776,521 44,776,521		43,895,208 43,895,208
Asia Asia		2,890,167 2,890,167		10,104,135 10,104,135		2,074,550 2,074,550		1,273,640 1,273,640
Others Others		531,427 531,427		8,122 8,122		336,965 336,965		3,583 3,583
	\$ \$	150,582,692 150,582,692	\$ \$	109,254,758 109,254,758	\$ \$	124,467,608 124,467,608	\$ \$	106,590,864 106,590,864

(7) Major customer information (7) Major customer information

The Group provides services to customers all over the world. No single customer of the Group accounts for more than 10% of the Group's operating revenues. The Group provides services to customers all over the world. No single customer of the Group accounts for more than 10% of the Group's operating revenues.

Expressed in thousands of NTD (Except as otherwise indicated)	Ceiling on total Footnote loans granted Footnote Footnote	(Note 7)	15,150,087 \$	15,150,087 (Note 9) (Note 9) (Note 9)	1,036,695 (Note 9) 1,036,695 (Note 9) (Note 9)		1,036,695 1,036,695
Expressed in thousands of NTD (Except as otherwise indicated) Expressed in thousands of NTD (Except as otherwise indicated) Expressed in thousands of NTD (Except as otherwise indicated)	Ceiling on total loans granted Limit on loans granted to a single party (Note 7) Ceiling on total Ceiling on total loans granted loans granted (Note 7)	(Note 7) (Note 7)	15,150,087 6,060,035 15,150,087 15,150,087 \$	15,150,087 12,120,070 15,150,087 15,150,087	518,348 1,036,695 1,036,695	1,036,695	518,348 1,036,695
	single party (Note 7)		6,060,035 \$ \$ \$	12,120,070	518,348		518,348
	Limit on loans granted to a Limit on loans granted to a Limit on loans granted to a single party (Note 7) single party (Note 7) Collateral	Value Item Value	6,060,035 6,060,035 - \$ \$ None -	12,120,070 12,120,070 - None -	518,348 518,348 None	518,348 - -	518,348 - None
	Collateral Allowance for doubtful	Value accounts Item	\$ \$ - \$ - None - \$	- - None -	- None	- - -	- - None
	Collateral Collateral	Value Item Item	\$ None \$ - None	None - None	None None	None -	- - None
	Allowance for doubtful Reason for short-term Allowance for financing (Note 6) doubtful accounts Allowance for doubtful	accounts accounts	- Working capital requirement - \$ \$	- Working capital -	- Working capital requirement	- Working capital requirement -	requirement -
	Reason for short-term financing (Note 6) Reason for short-term financing (Note 6) Reason for short-term transactions with financing (Note 6) Amount of	borrower (Note 5)	Working capital requirement \$ Working capital requirement - Working capital requirement -	Working capital Working capital requirement - Working capital -	Working capital requirement Working capital requirement Working capital requirement	Working capital requirement Working capital requirement - Working capital requirement -	requirement - requirement -
	transactions with borrower (Note 5) Amount of transactions with Amount of Nature of loan (Note 4)	borrower (Note 5)	\$ - - 2 \$ \$	- - 2	- 2	- -	- 2
	transactions with Amount of Nature of loan Interest rate Nature of loan Interest rate (Note 4) (Note 4)	borrower (Note 5)	2.4376- 2.6638 2 2 \$	2.2942- 2 2	2.6349 2.3356 2 2	2.3942- 2	2.6349 2
	Nature of loan (Note 4) Interest rate Actual amount drawn down		56,431 2.4376- 2.4376- 2.6638 2 2.6638	525,699 2.2942- 2.2942- 2.6349 2	89,102 2.6349 2.3356 2.3356 2	2.3942- 2.3942- 2.6349	213,844 2 2.6349
	Interest rate Actual amount Actual amount drawn down drawn down		56,431 56,431 2.4376- 2.6638 \$ 74,251 \$	525,699 525,699 2.2942- 683,112	89,102 89,102 2.6349 2.3356 89,102	213,844 2.3942-	213,844 2.6349 356,406
	Balance at December 31, 2017 (Note 8) Actual amount drawn down Balance at December 31, 2017 (Note 8) Balance at December 31, 2017 (Note 8)		56,431 \$ 74,251 74,251 \$ \$ 78,238 74,251 \$	525,699 683,112 683,112 696,647	89,102 89,102 89,102 93,885 89,102	356,406	213,844 356,406 363,468
	during the year ended December Maximum outstanding balance Balance at December 31, 2017 (Note 8) during the year ended December Maximum outstanding balance during the year ended December Maximum outstanding balance 31, 2017 (Note 3) during the year ended December Maximum outstanding balance related Is a	31, 2017 (Note 3) 31, 2017 (Note 3) party	\$ 78,238 78,238 \$ 78,238 \$ Yes \$	683,112 696,647 696,647 696,647 Yes	93,885 93,885 93,885 Yes	363,468	356,406 363,468 363,468 Yes	Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.	Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc. Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc. Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.	Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017.	Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.	Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period.
	related party Is a	31, 2017 (Note 3)	Yes \$	Yes	Yes	Yes
	account (Note 2) General ledger related Is a account (Note 2) General ledger account (Note 2) related General ledger Is a	party party	Receivables from Yes related parties Receivables from \$ related parties Receivables from Yes	Receivables from Yes Receivables from related parties Receivables from Yes	Receivables from Yes related parties Receivables from related parties Receivables from Yes	Receivables from related parties Receivables from related parties Receivables from	Yes related parties Yes
	account (Note 2) General ledger Borrower Borrower Borrower		related parties (Netherlands) N.V. Luanta Investment Receivables from (Netherlands) N.V. Luanta Investment related parties	Clove Holding Ltd. Receivables from Clove Holding Ltd.	related parties Whitney Equipment Receivables from Whitney Equipment related parties LLC.	related parties Receivables from related parties Terminal S.A. LLC.	Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows related parties Terminal S.A. related parties	Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017. (2)The subsidiaries are numbered in order starting from '1'. (2)The subsidiaries are numbered in order starting from '1'. (2)The subsidiaries are numbered in order starting from '1'.	Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'.	Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017. Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017.	Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'. Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'. Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'.	the calculation for ceiling on total loans granted in the footnote.
	Creditor Creditor Borrower		(Netherlands) N.V. Luanta Investment Peony Investment Peony Investment (Netherlands) N.V. Luanta Investment S.A. S.A.	Clove Holding Ltd. Peony Investment Peony Investment Clove Holding Ltd. S.A.	Whitney Equipment Clove Holding Ltd. Clove Holding Ltd. Whitney Equipment S.A.	Clove Holding Ltd. Colon Container LLC.	Clove Holding Ltd. Colon Container Clove Holding Ltd. Colon Container Terminal S.A. (1)The Company is '0'. Clove Holding Ltd. Colon Container Terminal S.A.	(2)The subsidiaries are numbered in order starting from '1'. (1)The Company is '0'.
Table 1 Table 1	Creditor Number Number (Note 1) (Note 1)		Peony Investment 1 1 Peony Investment S.A.	Peony Investment 1 1 Peony Investment	Clove Holding Ltd. 2 2 Clove Holding Ltd. S.A.	LLC. 2	2	(1)The Company is '0'. (1)The Company is '0'.

the calculation for ceiling on total loans granted in the footnote. PEONYǺUSD 1,020,191*29.7005*20%=6,060,035 the calculation for ceiling on total loans granted in the footnote. the calculation for ceiling on total loans granted in the footnote.

Clove Holding Ltd.烉USD 87,262*29.7005*20%=518,348

1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements. The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements. 1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements. 1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements.

PEONYǺUSD 1,020,191*29.7005*20%=6,060,035 Clove Holding Ltd.烉USD 87,262*29.7005*20%=518,348 PEONYǺUSD 1,020,191*29.7005*40%=12,120,070 PEONYǺUSD 1,020,191*29.7005*20%=6,060,035 Clove Holding Ltd.烉USD 87,262*29.7005*20%=518,348 PEONYǺUSD 1,020,191*29.7005*20%=6,060,035 Clove Holding Ltd.烉USD 87,262*29.7005*20%=518,348

1. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements.

The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements. Clove Holding Ltd.烉USD 87,262*29.7005*40%=1,036,695 The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements. The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements.

PEONYǺUSD 1,020,191*29.7005*40%=12,120,070 The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*40%=12,120,070 PEONYǺUSD 1,020,191*29.7005*40%=12,120,070

1. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*50%=15,150,087 2. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements. 2. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements. Clove Holding Ltd.烉USD 87,262*29.7005*40%=1,036,695 The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*50%=15,150,087 Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in a ccordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the Chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the Board of Directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration that they could be loaned again thereafter. Clove Holding Ltd.烉USD 87,262*29.7005*40%=1,036,695 The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*50%=15,150,087 Clove Holding Ltd.烉USD 87,262*29.7005*40%=1,036,695 The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*50%=15,150,087

Chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", the published balance of loans to others at the end of the reporting period should also include

ccordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others

Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in a Note 9: This transaction was written off when the consolidated financial statements were prepared. Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in a Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in a at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others

Evergreen Marine Corporation (Taiwan) Ltd.

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others

For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017

Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD

Provision of	Footnote party in Mainland guarantees to the endorsements/ (Note 7) China	N		N	N	N	N	N	N	N
Provision of	Footnote Footnote party in Mainland guarantees to the endorsements/ (Note 7) China	N		N	N	N	N	N	N	N
Provision of Provision of Provision of	subsidiary to parent endorsements/ guarantees by party in Mainland guarantees to the party in Mainland guarantees to the company endorsements/ (Note 7) endorsements/ (Note 7) (Note 7) China China	N N N	N	N N N	N N N	N N N	N N N	N N N	N N N	N N N
Provision of Provision of Provision of	subsidiary to parent endorsements/ guarantees by company (Note 7) company to subsidiary guarantees by parent subsidiary to parent subsidiary to parent endorsements/ endorsements/ guarantees by Provision of endorsements/ company guarantees by (Note 7) (Note 7) company (Note 7)	N N Y N	N	N N Y N	N N Y N	N N Y N	N N Y N	N N N N	N N N N	N N Y N
Provision of	company to subsidiary guarantees by parent endorsements/ Provision of (Note 7) company to subsidiary guarantees by parent Ceiling on total amount endorsements/ company to subsidiary guarantees provided guarantees by parent of endorsements/ (Note 7) endorsements/ Provision of (Note 3) (Note 7)	Y 158,496,384 Y Y	Y	Y 158,496,384 Y Y	Y 158,496,384 Y Y	Y 158,496,384 Y Y	Y 158,496,384 N Y	N 158,496,384 N N	N 158,496,384 Y N	Y 158,496,384 Y Y
accumulated Ratio of	Ceiling on total amount guarantees provided of endorsements/ Ceiling on total amount guarantees provided (Note 3) of endorsements/ Ceiling on total amount (Note 3) guarantees provided asset value of amount to net endorsement/ the endorser/ of endorsements/ guarantee guarantor (Note 3)	158,496,384 158,496,384 \$ 48.48% 158,496,384 company \$ \$	158,496,384 0.23%	158,496,384 158,496,384 158,496,384	158,496,384 158,496,384 50.05% 158,496,384	158,496,384 158,496,384 0.38% 158,496,384	158,496,384 158,496,384 0.38% 158,496,384	158,496,384 158,496,384 3.41% 158,496,384	158,496,384 158,496,384 1.38% 158,496,384 \$	158,496,384 158,496,384 \$ 2.26% 158,496,384 \$
accumulated Ratio of endorsement/ accumulated Ratio of	asset value of endorsement/ amount to net the endorser/ guarantor guarantee amount to net asset value of the endorser/ endorsements/ secured with guarantee guarantor company Amount of guarantees collateral	48.48% 48.48% company - \$ 48.48% \$	0.23%	0.23% 50.05% - 0.23%	50.05% 0.38% - 50.05%	0.38% 0.38% - 0.38%	0.38% 3.41% - 0.38%	3.41% 1.38% - 3.41%	1.38% 2.26% - 1.38%	2.26% 3.19% - \$ 2.26% \$
accumulated Ratio of Amount of	amount to net asset value of endorsement/ the endorser/ guarantee guarantor endorsements/ secured with Amount of guarantees endorsements/ collateral Actual amount drawn secured with guarantees collateral down (Note 6)	company - - 19,928,297 - \$ \$	-	- - - -	- - 30,333,753 -	- - 235,824 -	- - 232,935 -	- - 2,162,196 -	- - 582,130 - \$	- - 1,205,191 - \$
	endorsements/ secured with Amount of guarantees collateral Actual amount drawn Actual amount drawn down (Note 6) down (Note 6)	19,928,297 19,928,297 \$ \$ 30,736,753 19,928,297	-	- 30,333,753 148,503 -	30,333,753 235,824 31,733,797 30,333,753	235,824 232,935 241,425 235,824	232,935 2,162,196 240,598 232,935	2,162,196 582,130 2,162,196 2,162,196	582,130 1,205,191 873,195 582,130	1,205,191 705,387 \$ \$ 1,433,420 1,205,191
Outstanding Outstanding Outstanding	guarantee amount at December 31, Actual amount drawn endorsement/ (Note 5) down (Note 6) 2017 guarantee amount guarantee amount at December 31, at December 31, endorsement/ endorsement/ (Note 5) (Note 5) 2017 2017	\$ \$ 30,736,753 30,736,753 \$ \$ 35,449,742 \$	148,503	31,733,797 148,503 156,475	241,425 31,733,797 37,459,486	240,598 241,425 701,632	2,162,196 240,598 433,748	873,195 2,162,196 2,162,196	\$ 1,433,420 873,195 1,234,431 \$	\$ 2,019,634 1,433,420 \$ \$ 1,533,455
Outstanding Maximum outstanding	guarantee amount as of Maximum outstanding December 31, 2017 endorsement/ guarantee amount at December 31, endorsement/ (Note 4) (Note 5) guarantee amount as of 2017 December 31, 2017 guarantee amount as of Maximum outstanding December 31, 2017 endorsement/ (Note 4) endorsement/ (Note 4)	30,736,753 \$ 35,449,742 35,449,742 \$	156,475	148,503 37,459,486 156,475 156,475	31,733,797 701,632 37,459,486	241,425 433,748 701,632 701,632	240,598 2,162,196 433,748 433,748	2,162,196 1,234,431 2,162,196	873,195 1,533,455 1,234,431	1,433,420 \$ 2,019,634 1,533,455 \$
	guarantee amount as of Maximum outstanding guarntees provided for a Limit on endorsements/ December 31, 2017 single party (Note 3) endorsement/ (Note 4) guarntees provided for a Limit on endorsements/ single party (Note 3) guarntees provided for a Limit on endorsements/ single party (Note 3)	126,797,107 35,449,742 \$ \$ 126,797,107 126,797,107 \$ \$ 126,797,107 \$	126,797,107	126,797,107 126,797,107 126,797,107 126,797,107	126,797,107 37,459,486 126,797,107 126,797,107 126,797,107	126,797,107 126,797,107 126,797,107 126,797,107	126,797,107 31,699,277 126,797,107 126,797,107	31,699,277 2,162,196 31,699,277 31,699,277 31,699,277	31,699,277 1,234,431 \$ 126,797,107 31,699,277 31,699,277 \$	126,797,107 1,533,455 \$ 126,797,107 126,797,107 \$ \$ 126,797,107
	guarntees provided for a Limit on endorsements/ single party (Note 3) guarantor (Note 2) Relationship with the endorser/ guarantor (Note 2) Relationship with the endorser/ guarantor (Note 2) Relationship with the endorser/	3 \$ 3 \$ 3	2	2 3 2	3 3 3	3 3 3	3 6 3	6 6 6	6 2 6	2 \$ 3 \$ 2
Party being endorsed/guaranteed Party being endorsed/guaranteed Party being endorsed/guaranteed Party being endorsed/guaranteed	guarantor (Note 2) Relationship with the endorser/ Company name Company name Company name	Greencompass Marine S.A. Greencompass Marine S.A. 3 Greencompass Marine S.A.	Peony Investment S.A.	Evergreen Marine (UK) Limited Peony Investment S.A. 2 Peony Investment S.A.	Evergreen Marine (UK) Limited Whitney Equipment LLC. 3 Evergreen Marine (UK) Limited	Whitney Equipment LLC. Hemlock Equipment LLC. 3 Whitney Equipment LLC.	Hemlock Equipment LLC. Colon Container Terminal S.A. 3 Hemlock Equipment LLC.	Colon Container Terminal S.A. Balsam Investment (Netherlands) 6 Colon Container Terminal S.A. N.V.	Balsam Investment (Netherlands) Everport Terminal Services Inc. 6 Balsam Investment (Netherlands) N.V.	Everport Terminal Services Inc. Evergreen Marine (Hong Kong) 2 Everport Terminal Services Inc. Ltd.
	Company name Endorser/Guarantor Endorser/Guarantor	Greencompass Marine S.A. Evergreen Marine Evergreen Marine Corporation	Evergreen Marine Evergreen Marine Corporation Corporation	Peony Investment S.A. Evergreen Marine Evergreen Marine Corporation Corporation	Evergreen Marine (UK) Limited Evergreen Marine Evergreen Marine Corporation Corporation	Whitney Equipment LLC. Evergreen Marine Corporation Corporation	Hemlock Equipment LLC. Evergreen Marine Evergreen Marine Corporation Corporation	Colon Container Terminal S.A. Evergreen Marine Evergreen Marine Corporation Corporation	Balsam Investment (Netherlands) Evergreen Marine Evergreen Marine N.V. Corporation Corporation N.V.	Everport Terminal Services Inc. Evergreen Marine Evergreen Marine Corporation Corporation
	Endorser/Guarantor Number (Note 1) Number (Note 1) Endorser/Guarantor	Evergreen Marine 0 0 Evergreen Marine	Evergreen Marine Corporation 0 0 Evergreen Marine	Evergreen Marine Corporation 0 Evergreen Marine	Evergreen Marine Corporation 0 0 Evergreen Marine	Corporation 0 0	Evergreen Marine Corporation 0 0 Evergreen Marine	Evergreen Marine Corporation 0 0 Evergreen Marine	Evergreen Marine Corporation 0 0 Evergreen Marine	Evergreen Marine Corporation 0 Evergreen Marine

(1)The Company is '0'.

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows: (2)The subsidiaries are numbered in order starting from '1'. Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows: Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is '0'. Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to: (1)The Company is '0'. (1)The Company is '0'.

(2)The subsidiaries are numbered in order starting from '1'. (1) Having business relationship. (2)The subsidiaries are numbered in order starting from '1'. (2)The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to: (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary. Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to: Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

(1) Having business relationship. (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. (1) Having business relationship. (1) Having business relationship.

(4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary. (5) Mutual guarantee of the trade as required by the construction contract. (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary. (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary. (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership. (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary. (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

(5) Mutual guarantee of the trade as required by the construction contract. Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and (5) Mutual guarantee of the trade as required by the construction contract. (5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership. Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. The calculation is as follows: (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership. (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and The Company:63,398,553*250% = 158,496,384 Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and

Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth). Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. The calculation is as follows: When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107. The calculation is as follows: The calculation is as follows:

The Company:63,398,553*250% = 158,496,384 Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period. The Company:63,398,553*250% = 158,496,384 The Company:63,398,553*250% = 158,496,384

Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth). When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107. Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees. Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth). When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107. Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth). When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period. Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, and provision to the party in Mainland China. Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period. Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Evergreen Marine Corporation (Taiwan) Ltd.
Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

For the year ended December 31, 2017 For the year ended December 31, 2017 Table 3 Expressed in thousands of shares/thousands For the year ended December 31, 2017 For the year ended December 31, 2017

Table 3 Expressed in thousands of shares/thousands Table 3 Expressed in thousands of shares/thousands Table 3 Expressed in thousands of shares/thousands

	Relationship with the	Relationship with the Relationship with the Relationship with the			As of December 31, 2017 As of December 31, 2017	As of December 31, 2017 As of December 31, 2017		(Except as otherwise indicated) (Except as otherwise indicated)
Securities held by Securities held by Securities held by Securities held by	securities issuer (Note 2) Marketable securities (Note 1) Marketable securities (Note 1) Marketable securities (Note 1) Marketable securities (Note 1)	securities issuer (Note 2) securities issuer (Note 2) securities issuer (Note 2)	Genearl ledger account Genearl ledger account Genearl ledger account Genearl ledger account	Number of shares Number of shares Number of shares	Book value (Note 3) Book value (Note 3) Book value (Note 3) Number of shares	Ownership (%) Ownership (%) Book value (Note 3) Ownership (%)	Fair value Ownership (%) Fair value Fair value	Footnote (Note 4) Footnote (Note 4) Footnote (Note 4) Fair value
Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Stock:
Power World Fund Inc. Stock: Stock:	Power World Fund Inc. Power World Fund Inc. Power World Fund Inc. Stock:		Available-for-sale financial Available-for-sale financial Available-for-sale financial asset - non-current Available-for-sale financial	770 \$ 770	7,696 \$ 770 \$ \$ 770	\$ 5.68%	7,696 5.68% \$ \$	\$
	Taiwan HSR Consortium		asset - non-current asset - non-current Ƀ asset - non-current	13,356	313,866 7,696	0.24% 5.68% 7,696 7,696	313,866 7,696 5.68%	7,696
Taiwan HSR Consortium	Taiwan HSR Consortium Linden Technologies, Inc. Taiwan HSR Consortium		Ƀ Ƀ Ƀ Ƀ	13,356 50 13,356	11,081 13,356 313,866	1.44% 0.24% 313,866 313,866	0.24% 11,081 313,866 0.24%	313,866 313,866
Linden Technologies, Inc.	Linden Technologies, Inc. Linden Technologies, Inc. TopLogis, Inc.		Ƀ Ƀ Ƀ Ƀ	2,464 50	14,750 50 11,081 50	17.48% 1.44% 11,081 11,081	14,750 1.44% 11,081 1.44%	11,081
TopLogis, Inc.	Ever Accord Construction Corp. TopLogis, Inc. TopLogis, Inc.	Other related party	Ƀ Ƀ Ƀ Ƀ	2,464 9,317 2,464	119,427 2,464 14,750	17.50% 17.48% 14,750 14,750	119,427 17.48% 14,750 17.48%	14,750
Ever Accord Construction Corp.	Other related party Ever Accord Construction Corp. Central Reinsurance Corp. Ever Accord Construction Corp.	Other related party Other related party	Ƀ Ƀ Ƀ Ƀ	9,317 47,492 9,317	831,108 9,317 119,427	8.45% 17.50% 119,427 119,427	831,108 17.50% 119,427 17.50%	119,427 119,427
Central Reinsurance Corp.	Central Reinsurance Corp. Central Reinsurance Corp. Financial bonds:		Ƀ Ƀ Ƀ	47,492 47,492	47,492 831,108	8.45% 831,108 831,108	8.45% 831,108 8.45%	831,108 831,108
Financial bonds: Financial bonds:	Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Financial bonds:		Held-to-maturity financial asset - non-current	-	50,000	-	50,000
	Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015		Held-to-maturity financial asset - non-current Held-to-maturity financial asset - non-current Ƀ Held-to-maturity financial asset - non-current	- -	50,000 - 50,000 -	- 50,000 - 50,000	50,000 - 50,000 -	50,000
Peony Investment S.A.	Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Hutchison Inland Container Depots Ltd.		Ƀ Available-for-sale financial asset - non-current Ƀ Ƀ	0.75 -	199 - 50,000 USD -	4.60 USD 50,000 - 50,000	199 - 50,000 -	50,000
Hutchison Inland Container Depots Ltd. Peony Investment S.A. Peony Investment S.A.	Hutchison Inland Container Depots Ltd. South Asia Gateway Terminals (Private) Ltd. Hutchison Inland Container Depots Ltd.		Available-for-sale financial asset - non-current Available-for-sale financial asset - non-current Available-for-sale financial Ƀ asset - non-current	18,942 USD 0.75	USD 32,943 0.75 199 USD USD 0.75	4.60 USD 5.00 199 199	4.60 USD 32,943 199 4.60 USD USD	199
Evergreen Shipping Agency (Deutschland) GmbH	South Asia Gateway Terminals (Private) Ltd. South Asia Gateway Terminals (Private) Ltd. Zoll Pool Hafen Hamburg AG South Asia Gateway Terminals (Private) Ltd.		Ƀ Ƀ Ƀ Ƀ	18,942 10 USD 18,942	USD 10 18,942 32,943 USD EUR	USD 2.86 5.00 32,943 32,943	10 5.00 32,943 USD 5.00 EUR	32,943 USD

Evergreen Shipping Agency (Deutschland) GmbH Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10 Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IAS39, 'Financial instruments: recognition and measurement'. Evergreen Shipping Agency (Deutschland) GmbH Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10 Evergreen Shipping Agency (Deutschland) GmbH Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IAS39, 'Financial instruments: recognition and measurement'. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value. Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IAS39, 'Financial instruments: recognition and measurement'. Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IAS39, 'Financial instruments: recognition and measurement'.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions. Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Table 4 Table 4

Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017

Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD

Balance as at December 31, 2017	Amount		- \$		- -	- -	- -	- -		140,238 140,238
Balance as at December 31, 2017	Amount Number of Amount Amount Number of	shares shares	- - - \$ - 94 \$ \$	-	- - - 51	- - - 58	- - - 106	- - 249	140,238	13,356 140,238 6,287,883 13,356
Balance as at December 31, Balance as at December 31, 2017 2017	Gain (loss) Number of Number of shares	on disposal shares	- - 94 \$	-	- - 51	- - 58	- - 106	- 249	13,356	523,111 6,320 13,356 523,111
	Gain (loss) Book value on disposal Gain (loss) Gain (loss)	on disposal on disposal	700,000 94 94 \$ 700,000 \$ \$	51	400,000 58 51 400,000	600,000 106 58 600,000	1,000,000 249 106 1,000,000	500,000 249 500,000	523,111	392,049 - 523,111 392,049
Disposal (Note 3) Disposal (Note 3)	Book value Selling price Book value Book value		\$ 700,000 700,094 700,000 \$ \$	400,000	400,051 600,000 400,000	600,058 1,000,000 600,000 600,058	1,000,106 500,000 1,000,000	500,249 500,000 500,249	392,049	915,160 - 392,049 915,160
Disposal (Note 3) Disposal (Note 3)	Selling price Selling price Number of Selling price	shares	700,094 \$ \$ 700,094 3,958 700,094 \$ \$	400,051	400,051 600,058 28,405 400,051	1,000,106 44,742 600,058	1,000,106 500,249 62,514 1,000,106	49,625 500,249	915,160	- 37,338 915,160
	Number of Number of shares Amount Number of	shares shares	3,958 3,958 \$ 700,000 3,958	28,405	28,405 44,742 400,000 28,405	44,742 62,514 600,000 44,742	62,514 49,625 1,000,000 62,514	49,625 500,000 49,625	37,338	37,338 - - 37,338 -
Addition (Note 3) Addition (Note 3)	Amount Amount Number of	shares	\$ 700,000 700,000 3,958 700,000 \$ \$	400,000	400,000 600,000 28,405 400,000	600,000 1,000,000 44,742 600,000	1,000,000 500,000 62,514 1,000,000	500,000 49,625 500,000	-	6,287,883 - -
Addition (Note 3) Addition (Note 3)	Amount Number of Number of shares Amount	shares	3,958 3,958 \$ - 3,958	28,405	28,405 44,742 - 28,405	44,742 62,514 - 44,742	62,514 49,625 - 62,514	49,625 - 49,625	-	- 6,320 532,287 -
Balance as at January 1, 2017	Number of Amount Amount Number of	shares shares	\$ - - - \$ \$ -	-	- - - -	- - - -	- - - -	- - -	532,287	532,287 - 50,694
Balance as at January 1, Balance as at January 1, 2017 Balance as at January 1, 2017 2017	Amount Number of Number of shares	shares	- - \$ -	-	- - -	- - -	- - -	- -	50,694	532,287 - 50,694 50,694
Relationship with the Relationship with the Relationship with the	investor (Note 2) Number of investor (Note 2) investor (Note 2)	shares								Major shareholder of the Parent Company
Relationship with the Counterparty Counterparty Counterparty	investor (Note 2) (Note 2) (Note 2) (Note 2)									Evergreen Inernational Evergreen S.A.
General ledger Counterparty General ledger General ledger	(Note 2) account account account		value through profit or Financial assets at fair value through profit or Financial assets at fair loss - current value through profit or Financial assets at fair	loss - current loss - current ˥	˥ ˥ ˥	˥ ˥ ˥	˥ ˥ ˥	˥ ˥	Available-for-sale Available-for-sale financial asset - non-current Available-for-sale	Evergreen Investments accounted financial asset - Investments accounted non-current for using equity Evergreen Investments accounted method financial asset - non-current
General ledger Marketable securities Marketable securities Marketable securities	account ȐNote 1ȑ ȐNote 1ȑ ȐNote 1ȑ	Beneficiary Certificates: Beneficiary Certificates: Beneficiary Certificates:	value through profit or Financial assets at fair FSITC Taiwan Money FSITC Taiwan Money FSITC Taiwan Money Market	loss - current Taishin Ta-Chong Money Taishin Ta-Chong Money Taishin Ta-Chong Money Market Fund Market	Taishin 1699 Money Market Taishin 1699 Money Market ˥ Taishin 1699 Money Market Market Fund Fund	Capital Money Market Fund ˥ Fund	Capital Money Market Fund TCB Taiwan Money Market ˥ Capital Money Market Fund Fund	TCB Taiwan Money Market ˥ TCB Taiwan Money Market Fund Stock:	Available-for-sale Taiwan HSR Consortium Stock:	Investments accounted financial asset - non-current Taiwan HSR Consortium Evergreen Marine (Hong Taiwan HSR Consortium Kong) Ltd.
Marketable securities Investor	ȐNote 1ȑ Investor Investor	Beneficiary Certificates: Evergreen Evergreen Marine	FSITC Taiwan Money Corporation Corporation Marine Corporation	Taishin Ta-Chong Money Market Market	Taishin 1699 Money Market Market Fund Market Fund	Fund Fund	Capital Money Market Fund	TCB Taiwan Money Market Fund Fund	Stock: Stock:	Taiwan HSR Consortium

Kong) Ltd. for using equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883 Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Kong) Ltd. for using equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883 Kong) Ltd. for using equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT\$300 million or 20% of paid-in capital or more. Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more

For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017

Footnote (Note 2) Footnote (Note 2) Footnote (Note 2)	receivable (payable) Percentage of total notes/accounts	(Note) - (Note) (Note) -	(Note) - (Note) (Note) -	(Note)	(Note) 1% (Note) (Note) 1%	(Note) 2% (Note) 2%	- -	- -	- -	- -	- -	- -	4% (Note) 4%	(Note) - (Note) (Note) -	(Note) 1% (Note) 1%		- (Note 4) -
Notes/accounts receivable (payable) Notes/accounts receivable (payable) Notes/accounts receivable (payable)	receivable (payable) Percentage of total notes/accounts receivable (payable) Percentage of total receivable (payable) Percentage of total notes/accounts notes/accounts Balance	- - - -	- - - -	1%	2% 1% 19,489 19,489	- 2% 84,451) 84,451)	- - - -	- - 2,441 2,441	- - 11,455) 11,455)	- - - -	- - - -	4% - 4,390) 4,390)	- 4% 108,665 108,665	1% - - -	- 1% 20,444 20,444	1%	- - - -
Notes/accounts receivable (payable) Differences in transaction terms compared to third party transactions (Note 1)	Balance Credit term Balance Balance	- \$ - - - \$ -	- - - - -	19,489	84,451) - 19,489 - -	- - ( 84,451) - ( -	2,441 - - - -	11,455) - 2,441 - -	- ( - 11,455) - ( -	- - - - -	4,390) - - - -	108,665 - ( 4,390) - ( -	- - 108,665 - -	20,444 - - - -	- - 20,444 - -	25,936	- - - - -
Differences in transaction terms compared to third party transactions (Note 1)	Credit term Unit price	- \$ - \$ \$ -	- - -	-	- ( - -	- - ( -	- - -	- ( - -	- - ( -	- - -	- ( - -	- - ( -	- - -	- - -	- - -	-	- - -
Differences in transaction terms compared to third party transactions Differences in transaction terms compared to third (Note 1) party transactions (Note 1)	Unit price Credit term Credit term Unit price Credit term	- 30 days - \$ \$	- 30~60 days -	-	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	- 30~60 days -	-	- 30~60 days -
	Unit price Credit term Credit term total purchases/ Percentage of Credit term sales	\$ 30 days 30 days 4% 30 days	30~60 days 30~60 days 4% 30~60 days	30~60 days	30~60 days 30~60 days 4% 30~60 days	30~60 days 30~60 days 3% 30~60 days	30~60 days 30~60 days 2% 30~60 days	30~60 days 30~60 days 2% 30~60 days	30~60 days 30~60 days 1% 30~60 days	30~60 days 30~60 days 1% 30~60 days	30~60 days 30~60 days 5% 30~60 days	30~60 days 30~60 days 1% 30~60 days	30~60 days 30~60 days 6% 30~60 days	30~60 days 30~60 days 1% 30~60 days	30~60 days 30~60 days 2% 30~60 days	30~60 days 1%	30~60 days 30~60 days 30~60 days
Transaction	total purchases/ Percentage of total purchases/ Percentage of sales sales Amount	4% 4% 1,153,476 4%	4% 4% 1,278,055 4%	4%	4% 3% 1,209,020 4%	3% 2% 835,846 3%	2% 2% 526,940 2%	2% 1% 502,561 2%	1% 1% 432,190 1%	1% 5% 268,549 1%	5% 1% 1,373,466 5%	1% 6% 398,234 1%	6% 1% 1,798,898 6%	1% 2% 207,487 1%	2% 1% 718,114 2%	1% 3% 1%	2% 159,824
Transaction Transaction Transaction	total purchases/ Percentage of sales Amount Amount	1,153,476 1,153,476 \$ 1,153,476 \$	1,278,055 1,278,055 1,278,055	1,209,020	835,846 1,209,020 1,209,020	526,940 835,846 835,846	502,561 526,940 526,940	432,190 502,561 502,561	268,549 432,190 432,190	1,373,466 268,549 268,549	398,234 1,373,466 1,373,466	1,798,898 398,234 398,234	207,487 1,798,898 1,798,898	718,114 207,487 207,487	159,824 718,114 718,114	997,565	497,155 159,824 159,824
	Purchases/ sales Amount Purchases/ Purchases/ sales sales	Purchases \$ Purchases Purchases \$	Purchases Purchases Purchases	Sales	Sales Purchases Sales	Purchases Purchases Purchases	Purchases Sales Purchases	Sales Purchases Sales	Purchases Purchases Purchases	Purchases Purchases Purchases	Purchases Purchases Purchases	Purchases Sales Purchases	Sales Purchases Sales	Purchases Sales Purchases	Sales Purchases Sales	Purchases Sales Purchases	Purchases
Relationship with the Relationship with the Relationship with the counterparty Relationship with the	Purchases/ counterparty sales counterparty counterparty	Purchases Subsidiary Subsidiary Subsidiary	Purchases Indirect subsidiary of the	Indirect subsidiary of the Indirect subsidiary of the Company Company	Sales Subsidiary	Purchases Subsidiary Associates Subsidiary	Purchases Associates	Sales Associates	Purchases Other related parties Associates Associates	Purchases Other related parties Other related parties Other related parties	Purchases Other related parties Other related parties Other related parties	Purchases	Other related parties Sales Indirect subsidiary of the Other related parties	Purchases Company	Indirect subsidiary of the Sales Indirect subsidiary of the Company	Purchases Other related parties	Other related parties Other related parties Subsidiary
Counterparty Counterparty Counterparty Counterparty		Everport Terminal Services Inc. Subsidiary Everport Terminal Services Inc. Everport Terminal Services Inc.	Greencompass Marine S.A.	Indirect subsidiary of the Company Company Greencompass Marine S.A. Greencompass Marine S.A.	Taiwan Terminal Services Co., Ltd.	Taiwan Terminal Services Co., Ltd. Subsidiary Taiwan Terminal Services Co., Ltd. Italia Marittima S.p.A.	Associates Associates Italia Marittima S.p.A. Italia Marittima S.p.A.	Evergreen International Storage and Transport Corp.	Evergreen International Storage and Evergreen Shipping Agency (America) Associates Evergreen International Storage and Transport Corp. Corporation	Other related parties Evergreen Shipping Agency (America) Evergreen Shipping Agency (America) Gaining Enterprise S.A. Evergreen Shipping Agency (America) Corporation	Other related parties Evergreen International Corp. Gaining Enterprise S.A. Gaining Enterprise S.A.		Other related parties Evergreen International Corp. Evergreen Marine (UK) Limited Evergreen International Corp.		Indirect subsidiary of the Company Evergreen Marine (UK) Limited Company Evergreen Marine (UK) Limited	Evergreen Marine (Singapore) Pte. Ltd.	Other related parties Evergreen Marine (Singapore) Pte. Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Singapore) Pte. Ltd. Evergreen Marine (Singapore) Pte. Ltd.
Purchaser/Seller Purchaser/Seller Purchaser/Seller Purchaser/Seller		Everport Terminal Services Inc. Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation		Greencompass Marine S.A.		Taiwan Terminal Services Co., Ltd.	Italia Marittima S.p.A.		Evergreen International Storage and Transport Corp. Transport Corp.	Corporation Corporation	Gaining Enterprise S.A.		Evergreen International Corp.		Evergreen Marine (UK) Limited

Evergreen Marine (Hong Kong) Ltd. Subsidiary Purchases 497,155 2% 30~60 days - - - - (Note 4)

Purchaser/Seller	Counterparty	Relationship with the counterparty			Transaction				Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount		total purchases/ Percentage of sales	Credit term		Unit price Credit term	Balance	receivable (payable) Percentage of total notes/accounts
Taiwan Terminal Services Co.,Ltd.	Evergreen Marine Corp.	The parent	Sales	\$	835,846	97%	30~60 days	- \$		84,451 - \$	98%	(Note)
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	Sales	USD	37,931	9%	30 days	-	-	-	-	(Note)
	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent	Company's major shareholder	Sales	USD	75,754	19%	30 days	-		585 - USD	3%
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD	38,821	10%	30 days	-		274 - USD	1%	(Note)
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD	125,127	31%	30 days	-	-	-	-	(Note)
	Italia Marittima S.p.A.	Investee of Balsam	Sales	USD	17,327	4%	30 days	-		192 - USD	1%
	Whitney Equipment LLC.	Investee of the Parent Company	Purchases	USD	7,479	2%	30 days	-	-	-	-
	Evergreen Shipping Agency (America) Corporation	Company's major shareholder Investee of the Parent	Purchases	USD	7,987	2%	30 days	-	-	-	-
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine Corp.	The parent	Sales	USD	16,349	13%	30~60 days	-	-	-	-	(Note 4)
Greencompass Marine S.A.	Evergreen Marine (UK) Limited	Indirect subsidiary of the	Sales	USD	52,927	2%	30~60 days	-		2,264 - USD	1%	(Note)
		Parent Company	Purchases	USD	24,390	1%	30~60 days	-		158) - (USD	-	(Note)
	Evergreen Marine Corp.	The parent	Sales	USD	42,028	2%	30~60 days	-	-	-	-	(Note)
			Purchases	USD	39,758	2%	30~60 days	-		656) - (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD	38,821	2%	30 days	-		274) - (USD	-	(Note)
	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent		Sales	USD	78,652	4%	30~60 days	-		1,218 - USD	1%
		Company's major shareholder	Purchases	USD	20,735	1%	30~60 days	-		1) - (USD	-
	Italia Marittima S.p.A.	Investee of Balsam	Sales	USD	36,390	2%	30~60 days	-	-	-	-
			Purchases	USD	34,034	2%	30~60 days	-	-	-	-

Counterparty	Relationship with the			Transaction			Differences in transaction terms compared to third		Notes/accounts receivable (payable)	Footnote (Note 2)
		Purchases/ sales	Amount	Percentage of sales	Credit term			Balance	receivable (payable) Percentage of total notes/accounts
Evergreen Shipping Agency (America) Corporation	Company's major shareholder Investee of the Parent	Purchases			30~60 days	\$	-	\$	-
Evergreen International Corp.	Company's major shareholder Investee of the Parent	Purchases			30~60 days				-
Evergreen Shipping Agency (Japan)	Company's major shareholder Investee of the Parent	Purchases			30~60 days				-
Evergreen Shipping Agency (Europe) GmbH	Indirect subsidiary of the Parent Company	Purchases			30~60 days				-	(Note)
	Company's major shareholder	Purchases			30~60 days				-
	Indirect subsidiary of the	Sales			30~60 days				-	(Note)
	Parent Company	Purchases			30~60 days			2,264)	1%	(Note)
		Sales			30~60 days				-	(Note)
		Purchases			30~60 days				-	(Note)
Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases			30 days				-	(Note)
		Sales			30~60 days			2,774	1%
		Purchases			30~60 days				-
		Sales			30~60 days				-
	Company's major shareholder	Purchases			30~60 days				-
Evergreen Shipping Agency (America) Corporation	Company's major shareholder Investee of the Parent	Purchases			30~60 days				-
Evergreen International Corp.	Company's major shareholder Investee of the Parent	Purchases			30~60 days				-
	Company's major shareholder	Purchases			30~60 days				-
Evergreen Shipping Agency (Europe) GmbH	Indirect subsidiary of the Parent Company	Purchases			30~60 days				-	(Note)
Gaining Enterprise S.A.	Investee of EITC	Sales			45 days			43,907	100%
	Greencompass Marine S.A. Evergreen Marine Corp. Italia Marittima S.p.A.	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent Evergreen Insurance Company Limited Investee of the Parent counterparty Evergreen Insurance Company Limited Investee of the Parent Investee of Balsam The Parent		MYR USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD	14,116 10,500 24,390 52,927 125,127 16,256 39,010 10,149 10,010 4,187 5,435 5,468 3,848 6,823 23,615 22,149 29,473 234,462 6,471	total purchases/ 1% 1% 0% 0% 0% 1% 3% 0% 1% 7% 1% 2% 1% 1% 2% 1% 0% 0% 100%		Unit price Credit term party transactions (Note 1) - - - - - - - - - - - - - - - - - - -	- (USD - (USD - (USD - (USD - (USD - (USD - MYR - USD - USD - USD - - - - - - - -	- - - - 774) 158 - 688) - 372) 446 415) - 276) - -

Footnote (Note 2)		(Note)		(Note)		(Note)
Notes/accounts receivable (payable)	receivable (payable) Percentage of total notes/accounts	-	2%	-	2%	-
	Balance	- \$	644 - EUR	-	918 - EUR	-
		-		-		-
Differences in transaction terms compared to third party transactions (Note 1)	Unit price Credit term	- \$	-	-	-	-
	Credit term	30~60 days	30~60 days	30~60 days	30~60 days	30 days
	total purchases/ Percentage of sales	21%	20%	25%	25%	51%
Transaction	Amount	4,840	4,469	5,728	5,573	7,479
		EUR	EUR	EUR	EUR	USD
	Purchases/ sales	Sales	Sales	Sales	Sales	Sales
Relationship with the counterparty		Indirect subsidiary of the Parent Company	Investee of Balsam	Indirect subsidiary of the Parent Company	Company's major shareholder	Subsidiary of the Parent Company
Counterparty		Greencompass Marine S.A.	Italia Marittima S.p.A.	Evergreen Marine (UK) Limited	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent	Everport Terminal Services Inc.
Purchaser/Seller		Evergreen Shipping Agency (Europe) GmbH				Whitney Equipment LLC.

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the 'Unit price' and 'Credit term' columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company.

transactions.

Note 4: Subsidiary Evergreen Marine (Hong Kong) Ltd., which was incorporated into the consolidated financial statements on December 18, 2017, was only written off against the post-merger transaction amount.

182

Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Table 6 Expressed in thousands Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Table 6 Expressed in thousands Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Table 6 Expressed in thousands Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017

(Except as otherwise indicated) (Except as otherwise indicated) Allowance for Amount collected	doubtful accounts doubtful accounts Allowance for doubtful accounts doubtful accounts Allowance for balance sheet date subsequent to the	\$ - - 190,636 \$	- - - -	- - 43,907	- - - -
(Except as otherwise indicated) Amount collected Amount collected Amount collected	balance sheet date subsequent to the balance sheet date subsequent to the balance sheet date subsequent to the Action taken	190,636 \$ \$ 190,636 \$ 190,636 - \$ -	- - - -	43,907 MYR 43,907 43,907 - MYR -	- - - -
Overdue receivables Overdue receivables	Action taken Action taken Action taken Amount	\$ \$ - - -	- - -	MYR MYR - - -	- - -
Overdue receivables Overdue receivables	Amount Amount Turnover rate Amount	- - \$ - - \$ \$	- - - -	- - - -	- - - -
	Turnover rate Turnover rate	- - \$ 271,096 -	- - 17,754 -	- - 43,907 -	- - 7,254 -
Balance as at Balance as at Balance as at	December 31, 2017 Turnover rate (Note 1) December 31, 2017 December 31, 2017 (Note 1) (Note 1)	271,096 271,096 271,096 \$	17,754 17,754 USD 17,754	43,907 43,907 MYR 43,907	7,254 7,254 USD 7,254
Balance as at	December 31, 2017 (Note 1)	\$ \$	USD USD	MYR MYR	USD USD
Relationship with the	Relationship with the counterparty Relationship with the counterparty counterparty Relationship with the counterparty	Company's major Investee of the Company's major \$ Company's major Investee of the Investee of the shareholder	USD shareholder Subsidiary Subsidiary shareholder Subsidiary	Investee of the Parent Company's major MYR Investee of the Parent Investee of the Parent Company's major Company's major shareholder	accounted for using Investee of Clove USD shareholder accounted for using accounted for using Investee of Clove Investee of Clove equity method shareholder
	Counterparty Counterparty Counterparty Counterparty	Company's major Investee of the Evergreen International Corporation Evergreen International Corporation Evergreen International Corporation Evergreen International Corporation	shareholder Subsidiary Clove Holding Ltd. (Note) Clove Holding Ltd. (Note) Clove Holding Ltd. (Note) Clove Holding Ltd. (Note)	Investee of the Parent Company's major Gaining Enterprise S.A. Gaining Enterprise S.A. Gaining Enterprise S.A.	accounted for using Investee of Clove shareholder Colon Container Terminal, S.A. Colon Container Terminal, S.A. Colon Container Terminal, S.A. Colon Container Terminal, S.A.
	Creditor Creditor Creditor Creditor	Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp.	Peony Investment S.A. Peony Investment S.A. Peony Investment S.A. Peony Investment S.A.	Gaining Enterprise S.A. Evergreen Heavy Industrial Corp. Evergreen Heavy Industrial Corp. Evergreen Heavy Industrial Corp. (Malaysia) Berhad (Malaysia) Berhad Evergreen Heavy Industrial Corp. (Malaysia) Berhad (Malaysia) Berhad	Clove Holding Ltd. Clove Holding Ltd. Clove Holding Ltd. Clove Holding Ltd.

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties, etc.

Note: This transaction was written off when the consolidated financial statements were prepared. Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. Note: This transaction was written off when the consolidated financial statements were prepared. Note: This transaction was written off when the consolidated financial statements were prepared.

Table 7

Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the year ended December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the year ended December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the year ended December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the year ended December 31, 2017

Expressed in thousands of NTD Table 7 Expressed in thousands of NTD Table 7 Expressed in thousands of NTD Table 7 Expressed in thousands of NTD

(Except as otherwise indicated)

					Transaction Transaction Transaction	Transaction
Number Number (Note 1) (Note 1)	Company name Company name Company name Company name	Counterparty Counterparty Counterparty Counterparty	Relationship (Note 2) Relationship (Note 2) Relationship (Note 2) Relationship (Note 2)	General ledger account General ledger account General ledger account General ledger account	Amount Amount Amount Amount	Transaction terms Transaction terms Transaction terms	operating revenues or total assets Percentage of consolidated total operating revenues or total assets Percentage of consolidated total operating revenues or total assets operating revenues or total assets Percentage of consolidated total Percentage of consolidated total (Note 3) (Note 3) (Note 3) Transaction terms
0 0	Evergreen Marine Corporation	Taiwan Terminal Services Co.,Ltd.	1 1 1 1	\$ Operating cost	835,846 \$ \$ \$	Note 4 Note 4 Note 4	0.56 0.56 Note 4
0	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Taiwan Terminal Services Co.,Ltd. Taiwan Terminal Services Co.,Ltd. Greencompass Marine S.A. Taiwan Terminal Services Co.,Ltd.	1	Operating cost Shipowner's account - credit Operating cost Operating cost	362,323 835,846	" 835,846 835,846	0.18
0 0	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	1 1 1 1	Shipowner's account - credit Shipowner's account - credit Operating revenue Shipowner's account - credit	1,209,020 362,323	" " 362,323 " 362,323	0.18 0.80 "
0 0	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	1 1 1 1	Operating revenue Operating revenue Operating cost Operating revenue	1,278,055 1,209,020	" " 1,209,020 " 1,209,020	0.80 0.85 "
0 0	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine (UK) Limited Greencompass Marine S.A.	1 1 1 1	Operating cost Shipowner's account - debit Operating cost Operating cost	595,393 1,278,055	" " 1,278,055 " 1,278,055	0.85 0.30 "
0 0	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	1 1 1 1	Shipowner's account - debit Shipowner's account - debit Operating revenue Shipowner's account - debit	718,114 595,393	" " 595,393 " 595,393	0.30 0.48 "
0 0	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	1 1 1 1	Operating revenue Operating revenue Operating cost Operating revenue	207,487 718,114	" " 718,114 " 718,114	0.48 0.14 "
0 0	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	1 1 1 1	Operating cost Shipowner's account - credit Operating cost Operating cost	301,631 207,487	" " 207,487 " 207,487	0.14 0.15 "
0 0	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation	Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Evergreen Marine (Hong Kong) Ltd.	1 1 1 1	Shipowner's account - credit Shipowner's account - credit Operating cost Shipowner's account - credit	1,153,476 301,631	" " 301,631 " 301,631	0.15 0.77 "
1 0	Evergreen Marine Corporation Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation	Everport Terminal Services Inc. Evergreen Marine (UK) Limited Everport Terminal Services Inc. Everport Terminal Services Inc.	1 3 1 1	Operating cost Operating cost Operating revenue Operating cost	1,609,487 1,153,476	" " 1,153,476 " 1,153,476	0.77 1.07 "
Greencompass Marine S.A. 1 1	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	3 3 3 3	Operating revenue Operating revenue Operating cost Operating revenue	741,678 1,609,487	" " 1,609,487 " 1,609,487	1.07 0.49 "
Greencompass Marine S.A. 1 1	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	3 3 3 3	Operating cost Shipowner's account - debit Operating cost Operating cost	- 741,678	" " 741,678 " 741,678	0.49 - "
Greencompass Marine S.A. 1 1	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	3 3 3 3	Shipowner's account - debit Shipowner's account - debit Shipowner's account - credit Shipowner's account - debit	445,006 -	" " - " -	0.22 - "
Greencompass Marine S.A. 1 1	Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A.	Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Evergreen Marine (Hong Kong) Ltd.	3 3 3 3	Shipowner's account - credit Shipowner's account - credit Operating cost Shipowner's account - credit	1,180,536 445,006	" " 445,006 " 445,006	0.22 0.78 "
1 1	Greencompass Marine S.A.	Evergreen Shipping Agency (Europe) GmbH	3 3 3 3	Operating cost	170,248	" " "	0.78 0.11 "
Greencompass Marine S.A. 2	Evergreen Marine (UK) Limited Greencompass Marine S.A. Greencompass Marine S.A.	Everport Terminal Services Inc. Everport Terminal Services Inc. Everport Terminal Services Inc. Everport Terminal Services Inc.	3	Operating cost Operating cost Operating cost Operating cost	3,805,088 1,180,536	" 1,180,536 1,180,536	2.53
Greencompass Marine S.A. 2 1	Evergreen Marine (UK) Limited Greencompass Marine S.A. Greencompass Marine S.A.	Evergreen Shipping Agency (Europe) GmbH Evergreen Shipping Agency (Europe) GmbH Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A.	3 3 3 3	Operating cost Shipowner's account - credit Operating cost Operating cost	- 170,248	" " 170,248 " 170,248	0.11 - "
2 2	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	Evergreen Shipping Agency (Europe) GmbH Everport Terminal Services Inc. Everport Terminal Services Inc. Everport Terminal Services Inc.	3 3 3 3	Operating cost Operating cost Operating cost Operating cost	199,369 3,805,088	" " 3,805,088 " 3,805,088	2.53 0.13 "
3 2	Greencompass Marine S.A. Evergreen Marine (UK) Limited Whitney Equipment LLC. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	Greencompass Marine S.A. Everport Terminal Services Inc. Greencompass Marine S.A.	3 3 3 3	Shipowner's account - credit Shipowner's account - credit Operating revenue Shipowner's account - credit	270,240 -	" " - " -	0.18 - "
4 2	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Peony Investment S.A. Evergreen Marine (UK) Limited	Evergreen Shipping Agency (Europe) GmbH Evergreen Shipping Agency (Europe) GmbH Evergreen Shipping Agency (Europe) GmbH Clove Holding Ltd.	3 3 3 3	Operating cost Operating cost Other receivables Operating cost	527,297 199,369	" " 199,369 " 199,369	0.13 0.26 "
Whitney Equipment LLC. 5 3	Evergreen Shipping Agency (Europe) GmbH Whitney Equipment LLC. Whitney Equipment LLC.	Everport Terminal Services Inc. Evergreen Marine (UK) Limited Everport Terminal Services Inc. Everport Terminal Services Inc.	3 3 3 3	Operating revenue Shipowner's account - debit Operating revenue Operating revenue	145,969 270,240	" " 270,240 " 270,240	0.18 0.07 "

Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 527,297 " 0.26 Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 527,297 " 0.26 4Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 527,297 " 0.26

Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07 (1) Parent company is '0'. Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: (2) The subsidiaries are numbered in order starting from '1'. Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is '0'. (2) The subsidiaries are numbered in order starting from '1'. Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): (2) The subsidiaries are numbered in order starting from '1'. (1) Parent company is '0'. (2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between (1) Parent company to subsidiary. Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between

subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; (2) Subsidiary to parent company subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;

for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): (3) Subsidiary to subsidiary for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(1) Parent company to subsidiary. Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on (1) Parent company to subsidiary. (1) Parent company to subsidiary.

(2) Subsidiary to parent company (3) Subsidiary to subsidiary accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts. Note 4: Terms are approximately the same as for general transactions. (2) Subsidiary to parent company (3) Subsidiary to subsidiary (2) Subsidiary to parent company (3) Subsidiary to subsidiary Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on Note 5:The Company may decide whether or not to disclose transaction details in this table based on the Materiality Principle. Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on

Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.	Information on investees Information on investees Information on investees Information on investees

	Expressed in thousands of shares/thousands of NTD		Footnote For the year ended December recognised by the Company Investment income (loss) Footnote Footnote 31, 2017 (Note 2(3))	Subsidiary of the Subsidiary of the Subsidiary of the Company (Note) Subsidiary of the 4,822,278	Company (Note) Company (Note) Company (Note) Ƀ(Note)	Ƀ(Note) 3,054 Ƀ(Note) Ƀ(Note) 3,054	Ƀ(Note) 415,389 Ƀ(Note) Ƀ(Note) 415,389	68,983 Investee accounted for 68,983 Investee accounted for Ƀ(Note) 68,983 Investee accounted for 68,983 Investee accounted for using equity method 50,870 Ƀ(Note) 50,870	using equity method using equity method using equity method Ƀ	Ƀ 353,789 Ƀ Ƀ 353,789	Ƀ 8,954 Ƀ Ƀ 8,954	Ƀ 938,295 Ƀ 938,295	Ƀ 9,574 Ƀ 9,574	Ƀ 262 Ƀ Ƀ 262	Indirect subsidiary of Ƀ 20,959 the Company (Note) Ƀ 20,959	Indirect subsidiary of Indirect subsidiary of the Company (Note) Indirect subsidiary of 17,673 the Company Ƀ(Note) (Note) 17,673	Ƀ(Note)	Ƀ(Note) 17,255 Ƀ(Note) Ƀ(Note) 17,255	Ƀ(Note) 20,095 Ƀ(Note) Ƀ(Note) 20,095	Ƀ(Note) 2,426) Ƀ(Note) Ƀ(Note) 2,426)	Ƀ(Note) 1,080 Ƀ(Note) Ƀ(Note) 1,080	Ƀ(Note) 3,806,113 Ƀ(Note) Ƀ(Note)
	Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD	Investment income (loss)	For the year ended December recognised by the Company Investment income (loss) 31, 2017 (Note 2(3)) For the year ended December recognised by the Company For the year ended December recognised by the Company Investment income (loss) 31, 2017 (Note 2(3)) 31, 2017 (Note 2(3))	4,822,278 4,822,278 4,822,278 \$ 4,817,092 \$ \$	3,054	415,389 3,054 5,553 5,553	50,870 415,389 415,389	50,870 862,722	353,789 172,458	8,954 353,789 883,121	938,295 8,954 28,651	9,574 938,295 5,752,067	262 9,574 45,516	20,959 262 1,494 1,494	17,673 20,959 96,413	17,255 17,673 17,673	20,095	2,426) 17,255 17,255 (	1,080 20,095 20,095	3,806,113 2,426) ( 2,426) ( 2,426)	41,396 1,080 1,080 1,080	3,806,113 4,696) 3,806,113 3,806,113 (
			Net profit (loss) of the investee For the year ended December 31, 2017 (Note 2(2)) Net profit (loss) of the investee For the year ended December 31, 2017 (Note 2(2)) Net profit (loss) of the investee For the year ended December Net profit (loss) of the investee For the year ended December 31, 2017 (Note 2(2)) 31, 2017 (Note 2(2)) Book value	4,817,092 \$ 4,817,092 4,817,092 \$ 30,152,551 \$ \$	5,553	415,389 5,553 39,912	415,389 862,722 415,389 568,156	862,722 172,458 862,722 6,287,883	172,458 883,121 172,458 537,532	883,121 28,651 883,121 8,452,437	28,651 5,752,067 28,651 97,140	5,752,067 45,516 5,752,067 9,462,402	45,516 1,494 45,516 977,049	96,413 1,494 4,364	96,413 17,673 96,413 205,923	17,673 17,255 17,673 2,591,738	20,095	17,255 2,426) 17,255 273,947 (	20,095 1,080 20,095 64,326	( 3,806,113 2,426) ( - ( -	41,396 1,080 10,842	3,806,113 4,943) 3,806,113 17,695,428 (
		Shares held as of December 31, 2017 Shares held as of December 31, 2017	Book value Book value Ownership Book value (%)	30,152,551 \$ 30,152,551 \$ 100.00 30,152,551 \$ \$	39,912	39,912 568,156 55.00 39,912	568,156 6,287,883 100.00 568,156	6,287,883 537,532 79.00 6,287,883	537,532 8,452,437 40.00 537,532	8,452,437 97,140 39.74 8,452,437	97,140 9,462,402 31.25 97,140	9,462,402 977,049 16.31 9,462,402	977,049 4,364 21.03 977,049	4,364 205,923 17.50 4,364	205,923 2,591,738 21.74 205,923	2,591,738 273,947 100.00 2,591,738	64,326 100.00	273,947 - 273,947	64,326 10,842 100.00 64,326	17,695,428 ( 100.00 -	10,842 102,526 100.00 10,842	17,695,428 1,522 100.00 17,695,428
		Shares held as of December 31, 2017	Ownership Ownership Number of (%) (%) shares	100.00 100.00 4,765 \$ 100.00	55.00	55.00 100.00 5,500 55.00	100.00 79.00 1 100.00	79.00 40.00 6,320 79.00	40.00 39.74 58,542 40.00	39.74 31.25 424,063 39.74	31.25 16.31 6,336 31.25	16.31 21.03 680,786 16.31	21.03 17.50 109,378 21.03	17.50 21.74 105 17.50	21.74 100.00 13,750 21.74	100.00 100.00 10 100.00	100.00 100.00 100.00	100.00 -	100.00 100.00 121 100.00	100.00 100.00 0.047 100.00	100.00 99.99 2 100.00	100.00 95.00 3,535 100.00
		Shares held as of December 31, 2017	Ownership (%) Number of Number of shares shares	4,765 4,765 14,152,288 4,765	5,500	5,500 1 55,000 5,500	1 6,320 2,970 1	6,320 58,542 - 6,320	58,542 424,063 320,000 58,542	424,063 6,336 4,753,514	6,336 680,786 25,000 6,336	680,786 109,378 10,767,879 680,786	109,378 105 1,094,073 109,378	105 13,750 3,119 105	13,750 10 162,500 13,750	10 - 1,560,740 10	121	- 0.047 246,989 -	121 2 72,053 121	0.047 3,535 118,119 0.047	2 100 19,662 2	3,535 150 10,499,127 3,535
For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017		Initial investment amount	December 31, 2016 Balance as of Number of shares December 31, 2016 December 31, 2016 Balance as of Balance as of	14,152,288 14,152,288 \$ 14,152,288 14,152,288 \$	55,000	2,970 55,000 55,000 55,000	- 2,970 2,970 2,970	320,000 - - 6,217,800	4,753,514 320,000 320,000 320,000	424,063 25,000 4,753,514 4,753,514 4,753,514	10,767,879 25,000 25,000 25,000	10,767,879 1,094,073 10,767,879 10,767,879	3,119 1,094,073 1,094,073 1,094,073	162,500 3,119 3,119 3,119	1,560,740 162,500 162,500 178,750	246,989 1,560,740 1,560,740 1,560,740	72,053	118,119 246,989 246,989 246,989	19,662 72,053 72,053 72,053	10,499,127 118,119 118,119 -	19,662 34,951 19,662 19,662	4,158 10,499,127 10,499,127 10,499,127
For the year ended December 31, 2017		Initial investment amount Initial investment amount Initial investment amount	December 31, 2016 Balance as of December 31, 2017 Balance as of December 31, 2017 December 31, 2017 Balance as of Balance as of	\$ 14,152,288 14,152,288 \$ \$ 14,152,288 \$	55,000	2,970 55,000 55,000	6,217,800 2,970 2,970	320,000 6,217,800 6,217,800	4,753,514 320,000 320,000	25,000 4,753,514 4,753,514	10,767,879 25,000 25,000	1,094,073 10,767,879 10,767,879	3,119 1,094,073 1,094,073	178,750 3,119 3,119	1,560,740 178,750 178,750	246,989 1,560,740 1,560,740	72,053	- 246,989 246,989	19,662 72,053 72,053	10,499,127 - -	34,951 19,662 19,662	4,158 10,499,127 10,499,127
			December 31, 2017 Balance as of Main business activities Main business activities Main business activities Main business activities	\$ \$ Investment activities Investment activities Investment activities	Loading and discharging operations of Loading and discharging operations of Loading and discharging operations of Loading and discharging operations of container yards	container yards Terminal services container yards	Terminal services Hong Kong Marine transportation Terminal services	residential and commercial buildings Development, rental, sale of Hong Kong Marine transportation Development, rental, sale of Development, rental, sale of Hong Kong Marine transportation	residential and commercial buildings Container transportation and gas residential and commercial buildings Container transportation and gas Container transportation and gas residential and commercial buildings Container transportation and gas stations	General security guards services stations	General security guards services International passengers and cargo General security guards services General security guards services transportation	International passengers and cargo Container distribution and cargo International passengers and cargo International passengers and cargo transportation stevedoring transportation	Container distribution and cargo Container distribution and cargo Management consultancy Container distribution and cargo stevedoring	Management consultancy Management consultancy Terminal services	Investment holding company Terminal services Terminal services	Investment holding company Investment holding company Shipping agency	South Korea Shipping agency	Shipping agency Netherlands Shipping agency Shipping agency	South Korea Shipping agency Shipping agency	Netherlands Shipping agency Marine transportation	Shipping agency Shipping agency Shipping agency	Marine transportation Marine transportation Leasing
			Location Location	Investment activities Republic of Republic of Panama	Panama Taiwan	Taiwan container yards U.S.A	Terminal services U.S.A	Development, rental, sale of Taiwan	Taiwan Taiwan	stations Taiwan Taiwan stations	Taiwan Taiwan	Taiwan transportation Taiwan	stevedoring Taiwan Republic of stevedoring Panama	Management consultancy Republic of Panama Vietnam	Terminal services Vietnam British Virgin Islands	Investment holding company British Virgin Islands Germany		Shipping agency Germany	South Korea Shipping agency Poland	Netherlands Shipping agency Republic of Panama	Shipping agency Poland India	Marine transportation Republic of Panama Argentina Panama
			Location Location Investee (Note 1 and 2) Investee (Note 1 and 2) Investee (Note 1 and 2) Investee (Note 1 and 2)	Republic of Republic of Peony Investment S.A. Peony Investment S.A. Peony Investment S.A.	Panama Panama Taiwan Terminal Services Co., Ltd.	Taiwan Taiwan Terminal Services Co., Ltd. Taiwan Everport Terminal Services Inc. Taiwan Terminal Services Co., Ltd.	U.S.A Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. U.S.A Everport Terminal Services Inc.	Hong Kong Marine transportation Evergreen Marine (Hong Kong) Ltd. Charng Yang Development Co.,Ltd. Evergreen Marine (Hong Kong) Ltd.	Taiwan Charng Yang Development Co.,Ltd. Evergreen International Storage and Evergreen International Storage and Taiwan Charng Yang Development Co.,Ltd. Evergreen International Storage and Transport Corporation	Taiwan Taiwan Evergreen Security Corporation Transport Corporation Transport Corporation	Taiwan Taiwan Evergreen Security Corporation EVA Airways Corporation Evergreen Security Corporation	Taiwan Taiwan Taipei Port Container Terminal EVA Airways Corporation EVA Airways Corporation Corporation	Taiwan Taiwan Taipei Port Container Terminal Evergreen Marine (Latin America), Taipei Port Container Terminal Corporation S.A.	Republic of Panama Evergreen Marine (Latin America), Republic of VIP Greenport Joint Stock Company Panama Evergreen Marine (Latin America), S.A.	Vietnam VIP Greenport Joint Stock Company Vietnam VIP Greenport Joint Stock Company Clove Holding Ltd. VIP Greenport Joint Stock Company	British Virgin Islands British Virgin Evergreen Shipping Agency (Europe) Islands Clove Holding Ltd. Clove Holding Ltd. GmbH	Evergreen Shipping Agency (Europe) Evergreen Shipping Agency (Korea) Evergreen Shipping Agency (Europe) Evergreen Shipping Agency (Europe) Corporation	Germany Evergreen Shipping Agency (Korea) Germany Evergreen Shipping Agency Evergreen Shipping Agency (Korea) (Netherlands) B.V. GmbH	South Korea Shipping agency Evergreen Shipping Agency (Poland) Evergreen Shipping Agency Evergreen Shipping Agency Corporation SP. ZO. O	Netherlands Shipping agency Evergreen Shipping Agency (Poland) Evergreen Shipping Agency (Poland) Greencompass Marine S.A. (Netherlands) B.V. Evergreen Shipping Agency (Poland) (Netherlands) B.V.	Poland Evergreen Shipping Agency (India) Pvt. Poland SP. ZO. O Ltd.	Republic of Republic of Panama Greencompass Marine S.A. Evergreen Argentina S.A. Greencompass Marine S.A.
	Table 8 Table 8		Investor Investor Investor	Peony Investment S.A. Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp.		Taiwan Terminal Services Co., Ltd.	Everport Terminal Services Inc.	Evergreen Marine (Hong Kong) Ltd.	Charng Yang Development Co.,Ltd. Evergreen International Storage and	Transport Corporation	Evergreen Security Corporation	EVA Airways Corporation	Taipei Port Container Terminal Corporation Corporation	Evergreen Marine (Latin America), S.A. S.A.	Peony Investment S.A.	Clove Holding Ltd. Peony Investment S.A. Peony Investment S.A. Peony Investment S.A.		Evergreen Shipping Agency (Korea) GmbH GmbH	Evergreen Shipping Agency Corporation Corporation	(Netherlands) B.V.	SP. ZO. O SP. ZO. O	Greencompass Marine S.A.

Investee (Note 1 and 2)	Location	Main business activities	December 31, 2017 Balance as of	December 31, 2016 Balance as of	Number of shares	Ownership (%)	Book value	For the year ended December 31, 2017 (Note 2(2))	For the year ended December recognised by the Company 31, 2017 (Note 2(3))	Footnote
Evergreen Shipping Agency (France)	France	Shipping agency	- \$	26,938 \$	-	-	- \$	4,230 \$	4,230 \$	Indirect subsidiary of the Company (Note)
PT. Multi Bina Pura International	Indonesia	Loading and discharging operations of container yards and inland transportation	232,880	232,880	17	95.03	404,966	87,029	82,704	Ƀ(Note)
PT. Multi Bina Transport	Indonesia	Container repair, cleaning and inland transportation	23,888	23,888	2	17.39	13,225	1,680	292	Ƀ(Note)
Evergreen Heavy Industrial Corp.	Malaysia	Container manufacturing	810,671	810,671	42,120	84.44	947,392	22,465	18,969	Ƀ(Note)
Armand Investment (Netherlands) N.V.	Curacao	Investment holding company	341,928	341,928	4	70.00	309,784	1,685	1,180	Ƀ(Note)
Evergreen Shipping (Spain) S.L.	Spain	Shipping agency	200,333	114,941	6	100.00	194,800	102,541	56,398	Ƀ(Note)
Evergreen Shipping Agency (Italy)	Italy	Shipping agency	69,856	69,856	0.55	55.00	83,564	58,522	32,187	Ƀ(Note)
Evergreen Marine (UK) Limited	U.K	Marine transportation	2,468,190	953,465	765	51.00	622,821	1,329,659	678,126	Ƀ(Note)
Evergreen Shipping Agency (Australia)	Australia	Shipping agency	7,339	7,339	0.675	67.50	58,303	82,193	55,481	Ƀ(Note)
Evergreen Shipping Agency (Russia)	Russia	Shipping agency	25,186	25,186	-	51.00	17,411	63,574	32,423	Ƀ(Note)
Evergreen Shipping Agency(Singapore)	Singapore	Shipping agency	64,064	64,064	765	51.00	36,290	39,947	20,373	Ƀ(Note)
Evergreen Shipping Agency (Thailand)	Thailand	Shipping agency	59,089	43,779	650	85.00	38,276	86,474	44,102	Ƀ(Note)
Evergreen Agency (South Africa) (Pty)			17,249	17,249	5,500	55.00	110,639	124,049	68,227	Ƀ(Note)
Evergreen Shipping Agency (Vietnam)	Vietnam	Shipping agency	13,484	13,484	-	49.00	192,172	126,272	61,873	Investee company of Peony accounted for using equity method
PT. Evergreen Shipping Agency	Indonesia	Shipping agency	28,899	28,899	0.441	49.00	112,782	127,144	62,301	Ƀ
Luanta Investment (Netherlands) N.V.	Curaçao	Investment holding company	1,404,165	1,404,165	460	50.00	1,865,804	59,055	29,527	Ƀ
Balsam Investment (Netherlands) N.V.	Curaçao	Investment holding company	11,241,236	11,241,236	0.451	49.00	1,282,862	1,393,694	682,910	Ƀ
Green Peninsula Agencies SDN. BHD.	Malaysia	Investment holding company	215,477	215,477	1,500	30.00	12,687	277,637	83,291	Ƀ
Evergreen Shipping Agency Co.	United Arab Emirates	Shipping agency	61,836	61,836	-	49.00	81,102	96,209	47,142	Ƀ
Greenpen Properties Sdn. Bhd.	Malaysia	Renting estate and storehouse company	12,654	12,654	1,500	30.00	50,096	14,909	4,473	Ƀ
Evergreen Marine Corp. (Malaysia) Sdn	Malaysia	Shipping agency	3,658	-	500	100.00	407,454	253,161	3,188	Indirect subsidiary of the Company (Note)
Evergreen Marine (Hong Kong) Ltd.			78,706	-	80	1.00	79,593	862,722	653	Investee company of Peony accounted for using equity method
			Hong Kong Marine transportation South Africa Shipping agency		Initial investment amount			Shares held as of December 31, 2017	Net profit (loss) of the investee	Investment income (loss)

					Initial investment amount		Shares held as of December 31, 2017			Investment income (loss)
Investor	Investee (Note 1 and 2)	Location	Main business activities	December 31, 2017 Balance as of	December 31, 2016 Balance as of	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee For the year ended December 31, 2017 (Note 2(2))	For the year ended December recognised by the Company 31, 2017 (Note 2(3))	Footnote
Armand Investment (Netherlands ) N.V.	Armand Estate B.V.		Netherlands Investment holding company	503,006 \$	503,006 \$	0.045	100.00	445,592 \$	2,414 \$	2,414 \$	Indirect subsidiary of the Company (Note)
Armand Estate B.V.	Taipei Port Container Terminal Corporation	Taiwan	Container distribution and cargo stevedoring	506,019	506,019	50,602	9.73	451,246	45,516	4,429	Investee company of Armand Estate B.V. accounted for using equity method
Clove Holding Ltd.	Colon Container Terminal, S.A.	Republic of Panama	Inland container storage and loading	678,953	678,953	22,860	40.00	2,532,187	36,178	14,472	Investee company of accounted for using Clove Holding Ltd. equity method
	Island Equipment LLC.	U.S.A	Investment holding company	4,277	4,277	-	36.00	163,841	24,479	8,812	Indirect subsidiary of the Company (Note)
Island Equipment LLC	Whitney Equipment LLC.	U.S.A	Equipment leasing company	5,940	5,940	-	100.00	173,294	28,598	28,598	Ƀ(Note)
	Hemlock Equipment LLC.	U.S.A	Equipment leasing company	5,940	5,940	-	100.00	309,839	21,803	21,803	Ƀ(Note)
Evergreen Marine (UK) Limited	Island Equipment LLC.	U.S.A	Investment holding company	1,782	1,782	-	15.00	68,267	24,479	3,672	Ƀ(Note)
	Evergreen Shipping Agency (UK) Limited	U.K	Shipping agency	0.06	0.06	-	100.00	25,109	-	-	Ƀ(Note)
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	2,940	2,940	99	16.50	4,115	1,494	247	Investee company of accounted for using Evergreen Marine equity method (UK) Limited
	Evergreen Shipping Agency (Ireland) Ltd.	Ireland	Shipping agency	3,006	3,006	0.1	100.00	3,006	-	-	Indirect subsidiary of the Company (Note)
PT. Multi Bina Pura International	PT. Multi Bina Transport	Indonesia	Container repair cleaning and inland transportation	98,054	98,054	8	72.95	55,480	1,680	1,225	Ƀ(Note)
Agency (Europe) GmbH Evergreen Shipping	Evergreen Shipping Agency (Austria) GmbH	Austria	Shipping agency	-	647	-	-	-	330	330	Ƀ(Note)
	Evergreen Shipping Agency (Switzerland) S.A.		Switzerland Shipping agency	2,453	2,453	0.1	100.00	8,958	764	764	Ƀ(Note)

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding

company about the disclosure of related overseas investee information. Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations: (1) The columns of 'Investee', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2017' should fill orderly in the Company's (public company's) information on investees and every directly or indirectly controlled investee's investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.

(2) The 'Net profit (loss) of the investee For theyear ended December 31, 2017' column should fill in amount of net profit (loss) of the investee for this period. (3) The'Investment income (loss) recognised by the Company For the year ended December 31, 2017' column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and

recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Table 9 Table 9

Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Information on investments in Mainland China Information on investments in Mainland China For the year ended December 31, 2017 For the year ended December 31, 2017

Information on investments in Mainland China

Information on investments in Mainland China

For the year ended December 31, 2017 For the year ended December 31, 2017

Expressed in thousands of NTD Expressed in thousands of NTD Expressed in thousands of NTD Expressed in thousands of NTD

Investee in Mainland China	Main business activities	Investment method Paid-in capital	remittance from Taiwan to Accumulated amount of Investment method Investment method (Note 1) Investment method	remittance from Taiwan to Accumulated amount of remittance from Taiwan to Accumulated amount of Mainland China as of remittance from Taiwan to Accumulated amount of	back to Taiwan for the year ended back to Taiwan for the year ended Mainland China/Amount remitted Mainland China/Amount remitted Amount remitted from Taiwan to Amount remitted from Taiwan to December 31, 2017 December 31, 2017 back to Taiwan for the year ended Mainland China/Amount remitted Amount remitted from Taiwan to December 31, 2017	back to Taiwan for the year ended Mainland China/Amount remitted Amount remitted from Taiwan to December 31, 2017	Accumulated amount of remittance from Taiwan Accumulated amount of to Mainland China as of remittance from Taiwan Accumulated amount of remittance from Taiwan	Net income (loss) of the investee for the Net income (loss) of the investee for the Accumulated amount of year ended remittance from Taiwan Net income (loss) of the investee for the	Ownership held by the Company Ownership held by (direct of indirect) Net income (loss) of the investee for the the Company Ownership held by the Company	(loss) recognised by Investment income the Company. (loss) recognised by Investment income For the year ended Ownership held by the Company. the Company (loss) recognised by Investment income the Company.	Book value of investments in Mainland China as of (loss) recognised by Investment income Book value of investments in the Company. Book value of investments in	Accumulted amount of investment income Accumulted amount of Accumulted amount of investment income investment income remitted back to Book value of investments in	Accumulted amount of investment income Footnote
Main business activities Investee in Mainland China Investee in Mainland China Investee in Mainland China	Main business activities Paid-in capital Main business activities	Paid-in capital (Note 1) Paid-in capital	Mainland China as of January 1, 2017 (Note 1) (Note 1)	Mainland China as of January 1, 2017 Mainland China Remitted to January 1, 2017 Mainland China as of January 1, 2017	Remitted back to Taiwan Mainland China Mainland China Remitted to Remitted to	Remitted back to Remitted back to Taiwan Taiwan Mainland China Remitted to	to Mainland China as of December 31, 2017 December 31, 2017 to Mainland China as of Remitted back to December 31, 2017 Taiwan	December 31, 2017 December 31, 2017 year ended to Mainland China as of December 31, 2017 December 31, 2017 year ended	(direct of indirect) (%) December 31, 2017 year ended (direct of indirect) (%) (%)	December 31, 2017 For the year ended (Note 2(2)B) December 31, 2017 (direct of indirect) (Note 2(2)B) December 31, 2017 For the year ended (Note 2(2)B) (%)	Mainland China as of December 31, 2017 December 31, 2017 December 31, 2017 For the year ended Mainland China as of December 31, 2017 (Note 2(2)B)	Taiwan as of December remitted back to 31, 2017 Taiwan as of December Mainland China as of Taiwan as of December December 31, 2017 remitted back to 31, 2017 31, 2017	Taiwan as of December remitted back to 31, 2017 Footnote
storage, loading, Inland container transportation, container Ningbo Victory Container Co., Ltd. discharging, repair and Ningbo Victory Container Co., Ltd. storage, loading, Inland container Ningbo Victory Container Co., Ltd. Ningbo Victory Container Co., Ltd.	transportation, container discharging, repair and 568,582 transportation, container discharging, repair and \$ storage, loading, Inland container storage, loading, Inland container related activities transportation, container discharging, repair and \$	568,582 568,582 (2) 568,582 \$ \$	\$ (2) (2) \$ (2)	212,700 212,700 \$ \$ 212,700 \$	\$ - - \$ 212,700 \$ \$ - \$	- - \$ - \$ - \$	212,700 212,700 \$ \$ 212,700 - \$ \$	11,309 \$ 11,309 212,700 11,309 \$ \$	40.00 \$ 11,309 40.00	\$ 4,524 40.00 4,524 \$ 40.00 \$	270,553 4,524 270,553 \$ 4,524 \$ \$	- 270,553 - \$ 270,553 \$ \$ \$	- \$
related activities Inland container transportation, storage, Storage & Transportation Co., Ltd. Storage & Transportation Co., Ltd. loading, discharging, Qingdao Evergreen Container related activities Inland container Qingdao Evergreen Container Storage & Transportation Co., Ltd. Qingdao Evergreen Container Storage & Transportation Co., Ltd. Qingdao Evergreen Container	transportation, storage, 193,358 loading, discharging, transportation, storage, loading, discharging, related activities Inland container repair, cleaning and Inland container related activities transportation, storage, loading, discharging,	193,358 193,358 (2) 193,358	(2) (2) (2)	42,083 42,083 42,083	- - 42,083 -	- - - -	42,083 42,083 42,083 -	204,390 204,390 42,083 204,390	40.00 204,390 40.00	81,756 40.00 81,756 40.00	186,458 81,756 186,458 81,756	- 186,458 - 186,458	-
related activities Inland container transportation, storage, Kingtrans Intl. Logistics (Tianjin) loading, discharging, repair, cleaning and Kingtrans Intl. Logistics (Tianjin) related activities Inland container Kingtrans Intl. Logistics (Tianjin) Co., Ltd. Kingtrans Intl. Logistics (Tianjin)	transportation, storage, 354,547 loading, discharging, repair, cleaning and transportation, storage, loading, discharging, related activities Inland container repair, cleaning and Inland container related activities transportation, storage, loading, discharging, repair, cleaning and	354,547 354,547 (2) 354,547	(2) (2) (2)	118,802 118,802 118,802	- - 118,802 -	- - - -	118,802 118,802 118,802 -	44,214 44,214 118,802 44,214	40.00 44,214 40.00	17,686 40.00 17,686 40.00	186,091 17,686 186,091 17,686	- 186,091 - 186,091	-
related activities Management consultancy, repair, cleaning and Management Consulting Co., Ltd Ever Shine (Shanghai) Enerprise related activities Co., Ltd.	Management consultancy, Management consultancy, repair, cleaning and related activities self-owned property Management consultancy, repair, cleaning and leasing	1,976,695	(2)	-	2,419,413	-	2,419,413	22,058	80.00	1,441	3,733,685	-
Management consultancy, Management Consulting Co., Ltd Ever Shine (Shanghai) Enerprise self-owned property Management Consulting Co., Ltd leasing Ever Shine (Ningbo) Enerprise Management Consulting Co., Ltd Ever Shine (Shanghai) Enerprise leasing Management Consulting Co., Ltd Ever Shine (Shanghai) Enerprise	Management consultancy, 1,976,695 Management consultancy, self-owned property self-owned property Management consultancy, self-owned property leasing leasing	1,976,695 195,633 (2) 1,976,695	(2) (2) (2)	2,419,413 - - -	267,658 2,419,413 -	- - 2,419,413 -	2,419,413 267,658 2,419,413 -	22,058 1,131) 2,419,413 22,058 (	80.00 22,058 80.00	162) 80.00 1,441 80.00 (	155,366 1,441 3,733,685 1,441	- 3,733,685 - 3,733,685	-

155,366 155,366 162) 155,366 162) ( 80.00 162) ( 80.00 1,131) (
80.00 1,131) ( 267,658 1,131) ( 267,658 ( 267,658 - -
267,658 - 267,658 - 267,658 - - Mainland China imposed by the investments in Ceiling on (2) Investment Ceiling on MOEA	Investment 38,039,132
Mainland China Commission of imposed by the investments in Mainland China imposed by the investments in Ceiling on (2) Investment amount Commission of the 195,633 approved by the Investment Mainland China imposed by the investments in Investment amount Commission of the Economic Affairs approved by the Ceiling on Ministry of Investment (MOEA) (2) 195,633	Investment 3,608,367 \$ Ministry of Investment
Investment amount Commission of the approved by the Investment remittance from Taiwan to Accumulated amount of Investment amount remittance from Taiwan to Commission of the 195,633 Accumulated amount of approved by the self-owned property Mainland China as of December 31, 2017 Investment remittance from Taiwan to Accumulated amount of self-owned property leasing remittance from Taiwan to Accumulated amount of	Commission of Commission of Economic Affairs Commission of Economic Affairs Ministry of 3,060,656 \$ Mainland China as of December 31, 2017 Economic Affairs Ministry of Mainland China as of December 31, 2017 \$ Mainland China as of December 31, 2017

(MOEA) MOEA Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to: (MOEA) MOEA (MOEA) MOEA

Evergreen Marine Corp. \$ 3,060,656 \$ 3,608,367 \$ 38,039,132 (1) Directly invest in a company in Mainland China. Evergreen Marine Corp. \$ 3,060,656 \$ 3,608,367 \$ 38,039,132 Evergreen Marine Corp. \$ 3,060,656 \$ 3,608,367 \$ 38,039,132

(2) Through investing in an existing company, Peony Investment S.A., in the third area, which then invested in the investee in Mainland China.

(3) Others

(1) Directly invest in a company in Mainland China. Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2017' column: (1) Directly invest in a company in Mainland China. (1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company, Peony Investment S.A., in the third area, which then invested in the investee in Mainland China. (1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period. (2) Through investing in an existing company, Peony Investment S.A., in the third area, which then invested in the investee in Mainland China. (2) Through investing in an existing company, Peony Investment S.A., in the third area, which then invested in the investee in Mainland China.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories: (3) Others

Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2017' column: A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C. Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2017' column: Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2017' column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period. B. The financial statements that are audited and attested by R.O.C. parent company's CPA. (1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period. (1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories: C. Others. (2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories: (2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:

A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C. Note 3: The numbers in this table are expressed in New Taiwan Dollars. A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C. A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

4. Parent Company Only Financial Statements and Report of Independent Accountants

REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Evergreen Marine Corporation (Taiwan) Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Evergreen Marine Corporation (Taiwan) Ltd. (the "Company") as of December 31, 2017 and 2016, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other independent accountants (please refer to Other Matter section of our report), the accompanying financial statements present fairly, in all material respects, the financial position of Evergreen Marine Corporation (Taiwan) Ltd. as of December 31, 2017 and 2016, and its financial performance and its cash flows for the years then ended in accordance with the "Regulations Governing the Preparations of Financial Reports by Securities Issuers" .

Basis for opinion

We conducted our audits in accordance with the "Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants" and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the parent company only Financial Statements section of our report. We are independent of the Company in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the "Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained along with the report of other independent auditors are sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

The key audit matters of the parent company only financial statements for the year ended December 31, 2017 are as follows:

Accuracy of freight revenue

Description

Please refer to Note 4(29) for accounting policies on revenue recognition, Note 5(2) for uncertainty of accounting estimates and assumptions applied on revenue recognition, and Note 6(20) for details of sales revenue.

Evergreen Marine Corporation (Taiwan) Ltd. primarily engages in global container shipping service covering ocean-going and near-sea shipping line, shipping agency business as well as container freight station business. In 2017, freight revenue was NT\$ 27,548,082 thousand, representing 95.33 % of operating revenue. Since ocean-going shipping often lasts for several days, voyages are sometimes completed after the balance sheet date. Also, demands for freight are consistently sent by forwarders during voyage. Due to the factors mentioned above, freight revenue is recognized under the percentageof-completion method for each vessel of which the service has been provided during the reporting period.

Despite the Company conducting business worldwide, its transactions are all in small amounts, whereas the freight rate is subject to fluctuation caused by cargo loading rate as well as market competition. Worldwide shipping agencies use a system to record the transactions by entering data including shipping departure, destination, counterparty, transit time, shipping amounts, and freight price for the Company. Therefore, management could recognize freight revenue in accordance with the data on bill of lading reports generated from system, accompanied by estimation made from past experience and current cargo loading conditions the revenue that would flow in, and calculate the revenue under percentage-ofcompletion method. As the process of recording transactions, communicating with agencies, maintaining the system are done manually, and the estimation of freight revenue is subject to management's judgement, therefore freight revenue involves high uncertainty and is material to the financial statements. Given the conditions as described above, we consider the accuracy of freight revenue and the appropriate use of cut-off by the Company and its investee companies as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• 1. Obtained an understanding of the operation and industry of the Company to assess the reasonableness of policies and procedures on revenue recognition, and confirmed whether it is appropriate to the financial statements.
• 1. Obtained an understanding of the procedures of revenue recognition from booking, picking, billing to receiving. Assessed and tested relevant internal controls, including checking freight items and amounts of delivery information against the approved contracts and booking list. In addition, recalculated the accuracy of freight revenue, and ensured its consistency with the bill of lading report.
• 1. Obtained the estimated freight income report for vessels underway as of balance sheets date, and inquired with management for the reasonableness of judgment. In addition, checked historical freight revenue for total voyage under each individual vessel, along with comparing with current cargo loading condition as well as actual revenue received after period end to ensure the reasonableness of revenue assumptions.
• 1. Confirmed the completeness of vessels underway for the reporting period, including tracking the movements of shipments on the internet to ensure the vessels that depart before period end have been taken into consideration in the freight revenue calculation.
• 1. Verified accuracy of data used in calculating percentage of completion under each voyage, including selecting samples and check whether total shipping days shown on the Company's website are in agreement with cruise timetable as well as recalculating shipping days (days between departure and balance sheet date), in order to examine the soundness of percentage applied.

Impairment of property, plant and equipment

Description

Please refer to Note 4(15) for accounting policies on property, plant and equipment, Note 5(2) for uncertainty of accounting estimates and assumptions applied on impairment of property, plant and equipment, and Note 6(8) for details of property, plant and equipment.

As of December 31, 2017, property, plant and equipment amounted to NT\$ 27,118,687 thousand, constituting 22.45% of total assets, and ship equipment, transport equipment and cargo handling equipment amounted to NT\$ 26,021,184 thousand, accounting for approximately 95.95% of total property, plant and equipment. As new ships have been built and put into operation by many carriers around the world, market supply has exceeded demand. Therefore, the market imbalance led to price competition, resulting to losses for the industry and raising the risk of asset impairment. The valuation of impairment and recoverable amounts are evaluated by the Company using the present value of the future cash flows expected to be derived from an asset or cash-generating unit compared to the book value. The main assumptions of discounts rates used in recoverable amounts, and expected operating revenue growth rates, gross profit, operating profit rates, capital expenditures and discount rates used in future cash flow estimates are subject to management's judgement and involve high uncertainty, and the estimated results are material to the financial statements. Given the conditions as described above exist in the Company and its investee companies using equity method, we consider the impairment assessment of ship equipment, transport equipment and cargo handling equipment in the property, plant and equipment under the Company and its investee companies as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• 1. Obtained an understanding and assessed the relevant policies, internal controls and process applied to valuation of assets impairments.
• 1. Interviewed with management regarding the impairment test report, and assessed the reasonableness of discounts rate and the reasonableness of operating revenue, gross profit, operating profit rate, growth rates and capital expenditure that management used in estimating future cash flows by checking actual performance under past operating plans and comparing the performance with industry forecast to evaluate the intention and capability of management.
• 1. Checked the parameters of the valuation model and recalculated the valuation model for accuracy.

Other matter – Audit by other independent accountants

We did not audit the financial statements of all the investee companies accounted for using equity method. Those statements were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for those investee companies accounted for using equity method and information disclosed in Note 13 relating to these long-term equity investments, is based solely on the reports of the other independent accountants. Long-term equity investments in these investee companies amounted to NT\$ 20,592,791 thousand and NT\$ 19,659,814 thousand, constituting 17.05% and 18.54% of the total assets as of December 31, 2017, and 2016, respectively, and comprehensive loss (including share of profit or loss and share of other comprehensive income of associates and joint ventures accounted for using equity method) was NT\$ 1,848,434 thousand and NT\$ 3,321,665 thousand for the years then ended.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the "Regulations Governing the Preparations of Financial Reports by Securities Issuers" and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company, or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including supervisors, are responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with ROC GAAS, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• 1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• 1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• 1. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• 1. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• 1. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or 5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• 1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope 6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such

Lai, Chung-Hsi Chih, Ping-Chiun

Lai, Chung-Hsi Chih, Ping-Chiun For and on behalf of PricewaterhouseCoopers, Taiwan Lai, Chung-Hsi Chih, Ping-Chiun

For and on behalf of PricewaterhouseCoopers, Taiwan March 23, 2018 For and on behalf of PricewaterhouseCoopers, Taiwan

March 23, 2018 ------------------------------------------------------------------------------------------------------------------------------------------------- The accompanying parent company only financial statements are not intended to present the financial position and results of

^{-------------------------------------------------------------------------------------------------------------------------------------------------} The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation. ------------------------------------------------------------------------------------------------------------------------------------------------- The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

	(Expressed in thousands of New Taiwan dollars)		December 31, 2017			December 31, 2016
Assets	Notes		AMOUNT	%		AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	%	34-154-624	2:	%	31-765-31:	31
Held-to-maturity financial assets - current	6(3)					281-111
Notes receivable - net			83			3:
Accounts receivable - net	6(4)		3-972-38:	4		3-226-9:7	3
Accounts receivable - related parties	7		324-554			234-9:8
Other receivables			469-176			797-3:4	2
Other receivables - related parties	7		371-899			318-578
Current income tax assets			25-291			2:6-182
Inventories	6(5)		799-988	2		512-194
Prepayments			336-:45			2:3-:94
Other current assets	6(6), 7 and 8		3-23:-761	3		3-161-91:	3
Current Assets			3:-8:6-912	36		37-8:8-848	36
Non-current assets
Available-for-sale financial assets - non	6(2)
current			2-3:8-:3:	2		2-893-611	3
Held-to-maturity financial assets - non	6(3)
current			211-111			61-111
Investments accounted for using equity	6(7)
method			67-82:-1:8	58		57-292-641	55
Property, plant and equipment - net	6(8) and 8		38-229-798	33		37-166-494	36
Investment property - net	6(9) and 8		2-:18-813	3		2-:37-957	3
Intangible assets			4:-182			63-314
Deferred income tax assets	6(27)		672-:96			631-781
Other non-current assets	6(10)		4-365-414	4		3-791-239	3
Non-current assets			:1-::9-885	86		8:-35:-371	86
Total assets		%	231-8:5-686	211	%	217-157-::8	211

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

(Continued)

			(Expressed in thousands of New Taiwan dollars)
Liabilities and Equity	Notes		December 31, 2017 AMOUNT	%	December 31, 2016 AMOUNT	%
Current liabilities
Accounts payable		%	4-581-173	4	% 3-617-856	3
Accounts payable - related parties	7		235-9:6		234-:87
Other payables			67:-796	2	617-:85	2
Other payables - related parties	7		25-:29		9-::6
Current income tax liabilities			21-877
Other current liabilities	6(11) and 7		22-13:-:29	:	22-726-179	22
Current Liabilities			26-331-355	24	25-872-869	25
Non-current liabilities
Corporate bonds payable	6(12)		9-111-111	8
Long-term loans	6(13)		42-:62-997	37	49-372-759	47
Deferred income tax liabilities	6(27)		869-72:	2	657-48:	2
Other non-current liabilities	6(14)(15)		2-576-383	2	2-59:-82:	2
Non-current liabilities			53-286-888	46	51-3:8-857	49
Total Liabilities			68-4:7-132	59	66-16:-615	63
Equity
Capital	6(16)
Common stock			51-234-671	44	46-234-671	44
Capital surplus	6(17)
Capital surplus			21-949-186	:	8-:9:-125	8
Retained earnings	6(18)
Legal reserve			5-:96-142	5	:-344-353	:
Unappropriated earnings (deficit)			7-87:-686	7 )	5-359-322* )	5*
Other equity interest	6(19)
Other equity interest			793-424		3-99:-999	4
Total equity			74-4:9-665	63	61-:98-5:4	59
Significant Contingent Liabilities And	9
Unrecognised Contract Commitments
Significant Events After The Balance	11
Sheet Date
Total liabilities and equity		%	231-8:5-686	211	% 217-157-::8	211

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

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan dollars, except earnings (loss) per share)

				Years ended December 31
			2017			2016
Items	Notes		AMOUNT	%		AMOUNT	%
Operating revenue	6(20) and 7	%	39-9:8-727	211	%	34-171-5:5	211
Operating costs	6(25)(26) and 7	)	37-997-3:2* )	:4* )		33-261-587* )	:7*
Gross profit			3-122-436	8		:21-129	5
Operating expenses	6(25)(26) and 7	)	3-1:5-:83* )	8* )		2-811-68:* )	8*
Other gains - net	6(21) and 7		427-425	2		36-832
Operating profit (loss)			343-778	2	)	875-951* )	4*
Non-operating income and expenses
Other income	6(22)		5:3-471	3		525-121	3
Other gains and losses	6(2)(23)		546-282	2	)	55-51:*
Finance costs	6(24)	)	745-7:8* )	3* )		725-957* )	4*
Share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method			7-7:3-518	34	)	7-163-616* )	37*
Total non-operating income and expenses			7-:96-352	35	)	7-3:8-861* )	38*
Profit (loss) before income tax			8-328-:19	36	)	8-173-6:1* )	41*
Income tax (expense) benefit	6(27)	)	323-848* )	2*		565-715	3
Profit (loss) for the year		%	8-116-282	35	) %	7-718-:97* )	39*
Other comprehensive income	6(19)
Components of other comprehensive income
that will not be reclassified to profit or loss
Losses on remeasurements of defined benefit
plans		) %	92-6:9*		) %	5:-488*
Share of other comprehensive income of
associates and joint ventures accounted for
using equity method, components of other
comprehensive income that will not be
reclassified to profit or loss		)	278-981* )	2* )		272-178* )	2*
Income tax related to components of other
comprehensive income that will not be
reclassified to profit or loss			24-983			9-4:5
Components of other comprehensive
income that will not be reclassified to
profit or loss		)	346-6:7* )	2* )		313-161* )	2*
Components of other comprehensive income
that will be reclassified to profit or loss
Other comprehensive income, before tax,
exchange differences on translation		)	3-157-181* )	8* )		922-964* )	5*
Other comprehensive income, before tax,
available-for-sale financial assets		)	:3-632*			546-71:	3
Total share of other comprehensive income of associates and joint ventures accounted for
using equity method, components of other
comprehensive income that will be reclassified
to profit or loss		)	82-629*			281-264	2
Income tax relating to the components of other
comprehensive income			3-645			2:3
Components of other comprehensive
income that will be reclassified to profit or
loss		)	3-318-686* )	8* )		316-9::* )	2*
Other comprehensive loss for the year		) %	3-554-282* )		9* ) %	518-:5:* )	3*
Total comprehensive income (loss) for the year		%	5-673-111	27	) %	8-126-:46* )	41*
Basic earnings (loss) per share (in dollars)	6(28)
Basic earnings (loss) per share		%		2/:8	) %		2/99*
Diluted earnings (loss) per share		%		2/:8	) %		2/99*

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

		Other equity interest Other equity interest
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY WAN) LTD. EVERGREEN MARINE CORPORATION (TAIWAN) LTD. EVERGREEN MARINE CORPORATION (TAI	(Expressed in thousands of New Taiwan dollars) (Expressed in thousands of New Taiwan dollars)	Retained Earnings Retained Earnings

				Retained Earnings
	Notes Notes	Common stock Common stock	Capital surplus Capital surplus	Legal reserve Legal reserve	retained earnings Unappropriated retained earnings Unappropriated (deficit) (deficit)	differences on translating the statements of operations Exchange financial foreign differences on translating the statements of operations Exchange financial foreign	Unrealized gain available-for- sale financial or loss on Other equity interest assets Unrealized gain available-for sale financial or loss on assets	instrument gain effective hedge of cash flow Hedging (loss) on hedges	Total equity Total equity instrument gain effective hedge of cash flow Hedging (loss) on hedges
Adjustments to share of changes in equity Balance at January 1, 2016 Balance at January 1, 2016 Year 2016 Year 2016	6(17)	% % 46-234-671 % 46-234-671	8-:97-744 8-:97-744 %	:-344-353 :-344-353 % %	3-672-936 3-672-936 % %	3-266-197 3-266-197 % %	2-572-961 2-572-961 % %	632-25: * )% )%	% 69-112-158 % 69-112-158 632-25: *
6(17) of subsidiaries, associates and joint Adjustments to share of changes in equity of subsidiaries, associates and joint Loss for the year ventures ventures			3-492 3-492		7-718-:97 * )				7-718-:97 * 3-492 )
6(19) Other comprehensive income (loss) for the Other comprehensive income (loss) for the Balance at December 31, 2016 Loss for the year year	6(19)	% 46-234-671	8-:9:-125 %	:-344-353 %	313-161 * ) 7-718-:97 313-161 5-359-322 * )% ) ) )	:11-575 :11-575 2-365-733 ) %	352-422 352-422 2-814-272 %	78-9:6 * 564-365 )%	7-718-:97 518-:5: % 61-:98-5:4 ) ) 564-365 )
Appropriation of 2016 earnings Balance at January 1, 2017 Balance at December 31, 2016 Year 2017 Year 2017	6(18)	% % 46-234-671 % 46-234-671	8-:9:-125 8-:9:-125 %	:-344-353 :-344-353 % %	5-359-322 5-359-322 )% )%	2-365-733 2-365-733 % %	2-814-272 2-814-272 % %	78-9:6 * )% )%	% 61-:98-5:4 % 61-:98-5:4 78-9:6 *
6(18) Legal reserve used to offset accumulated Legal reserve used to offset accumulated Issuance of common stock Appropriation of 2016 earnings Balance at January 1, 2017 deficit	6(16)	% 6-111-111 % 46-234-671	3-822-333 8-:9:-125	5-359-322 * :-344-353 % )	5-359-322 * 5-359-322 )%	2-365-733 %	2-814-272 %	)%	% 61-:98-5:4 8-822-333 78-9:6 *
6(16) Adjustments to share of changes in equity Cash capital increase reserved for employee preemption Issuance of common stock deficit	6(17) 6(17)	6-111-111	87-391 3-822-333	5-359-322 * )	5-359-322				8-822-333 87-391
6(17) 6(17) of subsidiaries, associates and joint Adjustments to share of changes in equity Cash capital increase reserved for Profit for the year employee preemption ventures			72-66: 87-391		8-116-282				72-66: 8-116-282
Other comprehensive income (loss) for the Balance at December 31, 2017 of subsidiaries, associates and joint Profit for the year year ventures	6(19)	% 51-234-671	% 21-949-186 72-66:	5-:96-142 %	346-6:7 * ) 8-116-282 7-87:-686 % )	3-49:-847 2-246-225 )%	241-289 2-944-44: %	26-:23 * 62-:94 )%	8-116-282 3-554-282 * % 74-4:9-665 )

Note: For the year ended December 31, 2017, the directors' and supervisors' remuneration and the employees' compensation were accrued at \$10,207 and \$36,322, respectively, which were deducted from the statement of comprehensive income.

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

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

		(Expressed in thousands of New Taiwan dollars)

			Years ended December 31
	Notes		2017		2016
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax		%	8-328-:19	)%	8-173-6:1 *
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(23)(25)		2-882-894		2-7:7-988
Amortization	6(25)		2:-6:2		26-284
Bad debt expense					84-843
Interest expense	6(24)		745-7:8		725-957
Interest income	6(22)	)	351-133 *	)	268-557 *
Dividend income	6(22)	)	57-:76 *	)	77-2:6 *
Gain on disposal of available-for-sale financial assets		)	634-222 *
Loss on disposal of other long-term investments			423
Realized loss from available-for-sale financial assets	6(2)				2-331
Share of profit (loss) of subsidiaries, associates and
joint ventures accounted for using equity method		)	7-7:3-518 *		7-163-616
Gain from bargain purchase Net gain on disposal of property, plant and equipment		) )	2-645 * 427-425 *	)	36-832 *
Realized income with affliated companies		)	8-555 *	)	9-:43 *
Cash capital increase reserved for employee
preemption			87-391
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable		)	54 *		9
Accounts receivable		)	856-494 *	)	615-87: *
Accounts receivable - related parties		)	9:-657 *		7:-157
Other receivables			439-339	)	5:1-69: *
Other receivables - related parties		)	64-432 *	)	64-721 *
Inventories		)	398-8:5 *		83-:27
Prepayments		)	43-:62 *	)	6-369 *
Increase in other current assets		)	89-952 *		4:5-:58
Other non-current assets			6-343	)	8: *
Changes in operating liabilities			:74-428		449-584
Accounts payable Accounts payable - related parties			:2:		53-298
Other payables			223-81:		41-:29
Other payables - related parties			9-249	)	34-429 *
Other current liabilities			9:5-672		37:-:21
Other non-current liabilities		)	217-156 *	)	215-:67 *
Cash inflow generated from operations			3-922-:65		2-27:-3:6
Interest received			351-133		268-557
Interest paid		)	757-373 *	)	745-663 *
Income tax refund received			271-36:
Income tax paid				)	25-294 *
Net cash flows from operating activities			3-676-:84		789-117

(Continued)

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS Notes 2017 2016

(Expressed in thousands of New Taiwan dollars) CASH FLOWS FROM INVESTING ACTIVITIES

				Years ended December 31
assets	Notes	%	:26-271 2017	%	2016
Proceeds from capital reduction of available-for-sale
CASH FLOWS FROM INVESTING ACTIVITIES financial assets Proceeds from disposal of available-for-sale financial					2-364
Proceeds from sale of held-to-maturity financial assets assets		%	281-111 :26-271	%	311-111
Acquisition of held-to-maturity financial assets Proceeds from capital reduction of available-for-sale		)	61-111 *
Acquisition of investments accounted for using equity financial assets	6(7)				2-364
method Proceeds from sale of held-to-maturity financial assets		)	7-499-366 * 281-111	)	299-136 * 311-111
Acquisition of property, plant and equipment Acquisition of held-to-maturity financial assets	6(29)	) )	2-162-7:5 61-111 436-252	)	2:6-126 * 847-487
Proceeds from disposal of property, plant and equipment Acquisition of investments accounted for using equity Acquisition of intangible assets	6(7)	)	7-56: *	)	68-3:7 *
method Increase in other non-current assets	6(29)	) )	7-499-366 * 3-513-522 *	) )	299-136 * 2-515-91: *
Acquisition of property, plant and equipment Cash dividends received	6(29)	)	2-162-7:5 * 4:1-211	)	2:6-126 * 587-223
Proceeds from disposal of property, plant and equipment Net cash flows used in investing activities		)	436-252 9-1:9-529 *	)	847-487 542-515 *
Acquisition of intangible assets CASH FLOWS FROM FINANCING ACTIVITIES		)	7-56: *	)	68-3:7 *
Increase in other non-current assets Increase in short-term loans	6(29)	)	3-513-522 * 711-111	)	2-515-91: * 2-928-2::
Cash dividends received Decrease in short-term loans		)	4:1-211 711-111 *	)	587-223 2-928-2:: *
Net cash flows used in investing activities Increase in long-term loans		)	9-1:9-529 * 3-275-413	)	542-515 * 22-438-:66
CASH FLOWS FROM FINANCING ACTIVITIES Decrease in long-term loans		)	7-:64-886 *	)	:-6:9-:94 *
Increase in short-term loans Increase in corporate bonds payable			711-111 9-111-111		2-928-2::
Decrease in short-term loans Decrease in corporate bonds payable		) )	711-111 * 4-111-111 *	)	2-928-2:: *
Increase in long-term loans Proceeds from issuance of common stock			3-275-413 8-822-333		22-438-:66
Decrease in long-term loans Net cash flows from financing activities		)	7-:64-886 * 8-:32-85:	)	:-6:9-:94 * 2-839-:83
Increase in corporate bonds payable Net increase in cash and cash equivalents			9-111-111 3-49:-415		2-:86-685
Decrease in corporate bonds payable Cash and cash equivalents at beginning of year		)	4-111-111 * 31-765-31:		29-789-746
Proceeds from issuance of common stock Cash and cash equivalents at end of year		%	8-822-333 34-154-624	%	31-765-31:
Net cash flows from financing activities			8-:32-85:		2-839-:83
Net increase in cash and cash equivalents			3-49:-415		2-:86-685
Cash and cash equivalents at beginning of year			31-765-31:		29-789-746
Cash and cash equivalents at end of year		%	34-154-624	%	31-765-31:

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

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2017 AND 2016

(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Evergreen Marine Corporation (Taiwan) Ltd. (the "Company") was established in the Republic of China, is mainly engaged in domestic and international marine transportation, shipping agency services, and the distribution of containers. The Company was approved by the Securities and Futures Bureau (SFB), Financial Supervisory Commission, Executive Yuan, R.O.C. to be a public company on November 2, 1982 and was further approved by the SFB to be a listed company on July 6, 1987. The Company's shares have been publicly traded on the Taiwan Stock Exchange since September 21, 1987.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorised for issuance by the Board of Directors on March 23, 2018.

• 1. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC") New standards, interpretations and amendments endorsed by FSC effective from 2017 are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 10, IFRS 12 and IAS 28, 'Investment entities:	January 1, 2016
applying the consolidation exception'
Amendments to IFRS 11, 'Accounting for acquisition of interests in	January 1, 2016
joint operations'
IFRS 14,'Regulatory deferral accounts'	January 1, 2016
Amendments to IAS 1, 'Disclosure initiative'	January 1, 2016
Amendments to IAS 16 and IAS 38, 'Clarification of acceptable	January 1, 2016
methods of depreciation and amortisation'
Amendments to IAS 16 and IAS 41, 'Agriculture: bearer plants'	January 1, 2016
Amendments to IAS 19, 'Defined benefit plans: employee	July 1, 2014
contributions'
Amendments to IAS 27, 'Equitymethod in separate	January 1, 2016
financial statements'
Amendments to IAS 36, 'Recoverable amount disclosures for non	January 1, 2014
financial assets'
Amendments to IAS 39, 'Novation of derivatives and continuation of	January 1, 2014
hedge accounting'
IFRIC 21, 'Levies'	January 1, 2014
Annual improvements to IFRSs 2010-2012 cycle	July 1, 2014

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Annual improvements to IFRSs 2011-2013 cycle	July 1, 2014
Annual improvements to IFRSs 2012-2014 cycle	January 1, 2016

Except for the following, the above standards and interpretations have no significant impact to the Company's financial condition and financial performance based on the Company's assessment.

A. Amendments to IAS 19, 'Defined benefit plans: Employee contributions'

The amendment allows contributions made by employees or third parties that are linked to service, and do not vary with the length of employee service, to be deducted from the cost of benefits earned in the period that the service is provided. Contributions made by employees or third parties that are linked to service, and vary according to the length of employee service, must be spread over the service period using the same attribution method that is applied to the benefits.

B. Annual improvements to IFRSs 2010-2012 cycle

IFRS 8, 'Operating segments'

The standard is amended to require disclosure of judgements made by management in aggregating operating segments. This amendment also clarifies that a reconciliation of the total of the reportable segments' assets to the entity's assets is required only when segment asset is provided to chief operating decision maker regularly.

Based on the Company's assessment, the amendment will result in an additional disclosure of judgements made by management in aggregating operating segments and a deletion of a reconciliation of segments' assets.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

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

New Standards, Interpretations and Amendments Amendments to IFRS 2, 'Classification and measurement of share based payment transactions' Amendments to IFRS 4, 'Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts' IFRS 9, 'Financial instruments' IFRS 15, 'Revenue from contracts with customers' Amendments to IFRS 15, 'Clarifications to IFRS 15 Revenue from contracts with customers'	Effective date by
	International Accounting
	Standards Board
	January 1, 2018
	January 1, 2018
	January 1, 2018
	January 1, 2018
	January 1, 2018

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 7, 'Disclosure initiative'	January 1, 2017
Amendments to IAS 12, 'Recognition of deferred tax assets for	January 1, 2017
unrealised losses'
Amendments to IAS 40, 'Transfers of investment property'	January 1, 2018
IFRIC 22, 'Foreign currency transactions and advance consideration'	January 1, 2018
Annual improvements to IFRSs 2014-2016 cycle- Amendments to	January 1, 2018
IFRS 1, 'First-time adoption of International Financial Reporting
Standards'
Annual improvements to IFRSs 2014-2016 cycle- Amendments to	January 1, 2017
IFRS 12, 'Disclosure of interests in other entities'
Annual improvements to IFRSs 2014-2016 cycle- Amendments to IAS	January 1, 2018
28, 'Investments in associates and joint ventures'

Except for the following, the above standards and interpretations have no significant impact to the Company's financial condition and financial performance based on the Company's assessment. The quantitative impact will be disclosed when the assessment is complete.

A. IFRS 9, 'Financial instruments'

• (a) Classification of debt instruments is driven by the entity's business model and the contractual cash flow characteristics of the financial assets, which would be classified as financial asset at fair value through profit or loss, financial asset measured at fair value through other comprehensive income or financial asset measured at amortised cost. Equity instruments would be classified as financial asset at fair value through profit or loss, unless an entity makes an irrevocable election at inception to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading.
• (b) The impairment losses of debt instruments are assessed using an 'expected credit loss' approach. An entity assesses at each balance sheet date whether there has been a significant increase in credit risk on that instrument since initial recognition to recognise 12-month expected credit losses or lifetime expected credit losses (interest revenue would be calculated on the gross carrying amount of the asset before impairment losses occurred); or if the instrument that has objective evidence of impairment, interest revenue after the impairment would be calculated on the book value of net carrying amount (i.e. net of credit allowance).
• (c) The amended general hedge accounting requirements align hedge accounting more closely with an entity's risk management strategy. Risk components of non-financial items and a group of items can be designated as hedged items. The standard relaxes the requirements for hedge effectiveness, removing the 80-125% bright line, and introduces the concept of 'rebalancing'; while its risk management objective remains unchanged, an entity shall rebalance the hedged item or the hedging instrument for the purpose of maintaining the hedge ratio.

B. IFRS 15, 'Revenue from contracts with customers'

IFRS 15, 'Revenue from contracts with customers'replaces IAS 11, 'Construction contracts', IAS 18, 'Revenue' and relevant interpretations. According to IFRS 15, revenue is recognised when a customer obtains control of promised goods or services. A customer obtains control of goods or services when a customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps:

Step 1: Identify contracts with customer.

Step 2: Identify separate performance obligations in the contract(s).

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price.

Step 5: Recognise revenue when the performance obligation is satisfied.

Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

C. Amendments to IAS 7, 'Disclosure initiative'

This amendment requires that an entity shall provide more disclosures related to changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.

The Company expects to provide additional disclosure to explain the changes in liabilities arising from financing activities.

When adopting the new standards endorsed by the FSC effective from 2018, the Company will apply the new rules under IFRS 9 retrospectively from January 1, 2018, with the practical expedients permitted under the statement. Further, the Company expects to adopt IFRS 15 using the modified retrospective approach. The significant effects of applying the new standards as of January 1, 2018 are summarised below:

• A. The effect of the adoption of the new standard is the reclassification of financial assets in the amount of \$1,297,929 from available-for-sale financial assets-non-current to financial assets at fair value through other comprehensive income in accordance with classification rules of IFRS 9.
• B. In line with the regulations under IFRS 9 on provision for impairment, other equity interest will have to be decreased by \$192,156 and retained earnings increased by \$192,156.
• C. In accordance with IFRS 9, the Company expects to reclassify held-to-maturity financial assets of \$100,000 by increasing financial assets at amortised cost in the amount of \$100,000.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 9, 'Prepayment features with negative compensation'	January 1, 2019
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture'	International Accounting
	Standards Board
IFRS 16, 'Leases'	January 1, 2019
IFRS 17, 'Insurance contracts'	January 1, 2021
Amendments to IAS 19, 'Plan amendment, curtailment or settlement'	January 1, 2019
Amendments to IAS 28, 'Long-term interests in associates and joint ventures'	January 1, 2019
IFRIC 23, 'Uncertainty over income tax treatments'	January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle	January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Company's financial condition and financial performance based on the Company's assessment. The quantitative impact will be disclosed when the assessment is complete.

A. IFRS 16, 'Leases'

IFRS 16, 'Leases', replaces IAS 17, 'Leases' and related interpretations and SICs. The standard requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

B. Amendments to IAS 19, 'Plan amendment, curtailment or settlement'

When a change to a plan take place the amendments require a company to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan.

• C. Annual improvements to IFRSs 2015-2017 cycle
• (a) Amendments to IFRS 3, 'Business combinations'

The amendments clarified that obtaining control of a business that is a joint operation is a business combination achieved in stages. The acquirer should remeasure its previously held interest in the joint operation at fair value at of the acquisition date.

(b) Amendments to IAS 12, 'Income taxes'

The amendment clarified that the income tax consequences of dividends on financial instruments classified as equity should be recognised according to where the past transactions or events that generated distributable profits were recognised. These requirements apply to all income tax consequences of dividends.

(c) Amendments to IAS 23, 'Borrowing costs'

The amendments clarified that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it becomes part of general borrowings.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

These parent company only financial statements have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers".

• (2) Basis of preparation
• A.Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:
  • (a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
  • (b)Available-for-sale financial assets measured at fair value.
  • (c)Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
• B.The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.
• (3) Foreign currency translation

Items included in the financial statements of each of the Company's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company's functional and presentation currency.

• A. Foreign currency transactions and balances
• (a)Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
• (b)Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
• (c)Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss as part of the fair value gain or loss. Nonmonetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
• (d)All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'.
• B.Translation of foreign operations
• (a)The operating results and financial position of all the company entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
  • iii. All resulting exchange differences are recognized in other comprehensive income.

• (b)When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c)When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (4) Classification of current and non-current items
• A.Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
  • (a)Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
  • (b)Assets held mainly for trading purposes;
  • (c)Assets that are expected to be realized within twelve months from the balance sheet date;
  • (d)Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
• B.Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
  • (a)Liabilities that are expected to be settled within the normal operating cycle;
  • (b)Liabilities arising mainly from trading activities;
  • (c)Liabilities that are to be settled within twelve months from the balance sheet date;
  • (d)Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
• (5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. With due date within one year time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (6) Financial assets at fair value through profit or loss

• A.Financial assets at fair value through profit or loss are financial assets held for trading or financial assets designated as at fair value through profit or loss on initial recognition. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges. Financial assets that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition:

  • (a)Hybrid (combined) contracts; or
  • (b)They eliminate or significantly reduce a measurement or recognition inconsistency; or

• (c)They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy.

• B.On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
• C.Financial assets at fair value through profit or loss are initially recognized at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognized in profit or loss.
• (7) Available-for-sale financial assets
• A.Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.
• B.On a regular way purchase or sale basis, available-for-sale financial assets are recognized and derecognized using trade date accounting.
• C.Available-for-sale financial assets are initially recognized at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognized in other comprehensive income.
• (8) Held-to-maturity financial assets
• A.Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Company has the positive intention and ability to hold to maturity other than those that meet the definition of loans and receivables and those that are designated as at fair value through profit or loss or as available-for-sale on initial recognition.
• B.On a regular way purchase or sale basis, held-to-maturity financial assets are recognized and derecognized using trade date accounting.
• C.Held-to-maturity financial assets are initially recognized at fair value on the trade date plus transaction costs and subsequently measured at amortized cost using the effective interest method, less provision for impairment. Amortization of a premium or a discount on such assets is recognized in profit or loss.
• (9) Notes, accounts and other receivables

Notes and accounts receivable are claims resulting from the sale of goods or services. Receivables arising from transactions other than the sale of goods or services are classified as other receivables. Notes, accounts and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. However, shortterm accounts receivable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial.

(10) Impairment of financial assets

• A.The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a company of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or company of financial assets that can be reliably estimated.
• B.The criteria that the Company uses to determine whether there is objective evidence of an impairment loss is as follows:
• (a)Significant financial difficulty of the issuer or debtor;
• (b)A breach of contract, such as a default or delinquency in interest or principal payments;
• (c)The Company, for economic or legal reasons relating to the borrower's financial difficulty, granted the borrower a concession that a lender would not otherwise consider;

(d)It becomes probable that the borrower will enter bankruptcy or other financial reorganization;

• (e)The disappearance of an active market for that financial asset because of financial difficulties;
• (f)Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group;
• (g)Information about significant changes with an adverse effect that have taken place in the technology, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in the equity instrument may not be recovered;
• (h)A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.
• C.When the Company assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made as follows according to the category of financial assets:
• (a)Financial assets measured at amortised cost

The amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate, and is recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset does not exceed its amortised cost that would have been at the date of reversal had the impairment loss not been recognised previously. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

(b)Available-for-sale financial assets

The amount of the impairment loss is measured as the difference between the asset's acquisition cost (less any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, and is reclassified from 'other comprehensive income' to 'profit or loss'. If, in a subsequent period, the fair value of an investment in a debt instrument increases, and the increase can be related objectively to an event occurring after the impairment loss was recognised, such impairment loss is reversed through profit or loss. Impairment loss of an investment in an equity instrument recognised in profit or loss shall not be reversed through profit or loss. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

(11) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

A.The cash flows from the financial asset have been received.

• B.The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.
• C.The contractual rights to receive cash flows from the financial asset have been transferred; however, the Company has not retained control of the financial asset.
• (12) Operating leases (lessor)

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(13) Inventories

Inventories refer to fuel inventories and steel inventories. Fuel inventories are physically measured by the crew of each ship and reported back to the Head Office through telegraph for recording purposes at balance sheet date. Valuation of inventories is based on the exchange rate prevailing at balance sheet date.

At the end of period, inventories are evaluated at the lower of cost or net realizable value, and the individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value should be based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.

• (14) Investments accounted for using equity method / subsidiaries and associates
• A.Subsidiary is an entity where the Company has the right to dominate its finance and operation policies (includes special purpose entity), normally the Company owns more than 50 percent of the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the equity method in the Company's parent company only financial statements.

• B.Unrealized gains or losses resulted from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.

• C.After acquisition of subsidiaries, the Company recognizes proportionately for the share of profit and loss and other comprehensive incomes in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company's interests in that subsidiary, the Company continues to recognize its shares in the subsidiary's loss proportionately.

• D.Changes in a parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received shall be recognized directly in equity and attributed to the owners of the parent.
• E.If the Company loses control of a subsidiary, the Company recognizes any investment retained in the former subsidiary at its fair value at the date when control is lost and recognizes any resulting difference as a gain or loss in profit or loss. The Company shall account for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss when it loses control of the subsidiary.
• F.Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.
• G.The Company's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred constructive obligations or made payments on behalf of the associate.
• H.When changes in an associate's equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company's ownership percentage of the associate, the Company recognises in 'capital surplus' in proportion to its ownership.

• I. Unrealised gains or loss on transactions between the Company and its associates are eliminated to the extent of the Company's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• K.Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.
• L.When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
• M.When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.
• N.According to "Rules Governing the Preparations of Financial Statements by Securities Issuers", 'profit for the year' and 'other comprehensive income for the year' reported in an entity's parent company only statement of comprehensive income, shall equal to 'profit for the year' and 'other comprehensive income' attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in an entity's parent company only financial statements, shall equal to equity attributable to owners of parent reported in that entity's consolidated financial statements.
• (15) Property, plant and equipment
• A.Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B.Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C.Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D.The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings	a	50 ~ 55 years
Loading and unloading equipment		06 ~ 20 years
Ships		18 ~ 25 years
Transportation equipment a		06 ~ 10 years
Other equipment		03 ~ 05 years

(16) Operating leases (lessee)

Payments made under an operating lease (net of any incentives received from the lessor) are recognized in profit or loss on a straight-line basis over the lease term.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 50~60 years.

(18) Intangible assets

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 years.

(19) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(20) Borrowings

• A.Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.
• B.Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.
• (21) Accounts payable

Accounts payable are obligations to pay for goods orservices that have been acquired in the ordinary course of business from suppliers. They are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial.

(22) Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability specified in the contract is discharged, cancelled or expires.

(23) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

• (24) Financial liabilities and equity instruments
• A.Ordinary corporate bonds issued by the Company are initially recognized at fair value, net of transaction costs incurred. Ordinary corporate bonds are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortized in profit or loss as an adjustment to the 'finance costs' over the period of bond circulation using the effective interest method.

• B.Convertible corporate bonds issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company's common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Company classifies the bonds payable and derivative features embedded in convertible corporate bonds on initial recognition as a financial asset, a financial liability or an equity instrument. Convertible corporate bonds are accounted for as follows:

• (a)Call options and put options embedded in convertible corporate bonds are recognized initially at net fair value as 'financial assets or financial liabilities at fair value through profit or loss'. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognized as 'gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss'.

• (b)Bonds payable of convertible corporate bonds is initially recognized at fair value and subsequently stated at amortized cost. Any difference between the proceeds and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortized in profit or loss as an adjustment to the 'finance costs' over the period of bond circulation using the effective interest method.
• (c)Conversion options embedded in convertible corporate bonds issued by the Company, which meet the definition of an equity instrument, are initially recognized in 'capital surplus—stock warrants' at the residual amount of total issue price less amounts of 'financial assets or financial liabilities at fair value through profit or loss' and 'bonds payable—net' as stated above. Conversion options are not subsequently remeasured.
• (d)Any transaction costs directly attributable to the issuance of convertible corporate bonds are allocated to the liability and equity components in proportion to the allocation of proceeds.
• (e)When bondholders exercise conversion options, the liability component of the bonds (including 'bonds payable' and 'financial assets or financial liabilities at fair value through profit or loss') shall be remeasured on the conversion date. The book value of common shares issued due to the conversion shall be based on the adjusted book value of the abovementioned liability component plus the book value of capital surplus - share options.
• (25) Derivative financial instruments and hedging activities
• A.Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Any changes in the fair value are recognised in profit or loss.
• B.The Company designates certain derivatives as hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge).
• C.The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
• D.The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as current assets or liabilities.

E.Cash flow hedge

• (a)The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the statement of comprehensive income within 'other gains and losses'.
• (b)Amounts accumulated in other comprehensive income are reclassified into profit or loss in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in the statement of comprehensive income within 'finance costs'. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or financial liability, the gains and losses previously deferred in other comprehensive income are reclassified into profit or loss in the periods when the asset acquired or the liability assumed affects profit or loss. The deferred amounts are ultimately recognised in operating costs.
• (c)When a hedging instrument expires, or is sold, cancelled or executed, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income. When a forecast transaction occurs or is no longer expected to occur, the cumulative gain or loss that was reported in other comprehensive income is transferred to profit or loss in the periods when the hedged forecast cash flow affects profit or loss.

(26) Employee benefits

A.Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

B.Pensions

(a)Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b)Defined benefit plans

i.Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past service costs. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

ii.Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii.Past service costs are recognised immediately in profit or loss.

C.Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

D.Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution/

• (27) Income tax

• A.The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B.The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C.Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
• D.Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.
• E.Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.
• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.
• (28) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are approved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(29) Revenue recognition

Sales of services

Revenue from delivering services is recognized under the percentage-of-completion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognized only to the extent that contract costs incurred are likely to be recoverable.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The information is addressed below:

(1)Critical judgements in applying the Company's accounting policies

Financial assets—impairment of equity investments

The Company follows the guidance of IAS 39 to determine whether a financial asset—equity investment is impaired. This determination requires significant judgement. In making this judgement, the Company evaluates, among other factors, the duration and extent to which the fair value of an equity investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.

If the decline of the fair value of an individual equity investment below cost was considered significant or prolonged, the Company would transfer the accumulated fair value adjustments recognized in other comprehensive income on the impaired available-for-sale financial assets to profit or loss, please refer to Note 6(2).

(2)Critical accounting estimates and assumptions

A.Revenue recognition

Revenue from delivering services and related costs are recognized under the percentage-ofcompletion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed.

• B.Impairment assessment of tangible and intangible assets (excluding goodwill)
• The Company assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilized and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Company strategy might cause material impairment on assets in the future.

As of December 31, 2017, the Company had property, plant and equipment and intangible assets, amounting to \$27,118,687 and \$39,071, respectively.

C.Impairment assessment of investments accounted for using the quity method

The Company assesses the impairment of an investment accounted for using the equity method as soon as there is any indication that it might have been impaired and its carrying amount cannot be recovered. The Company assesses the recoverable amounts of an investment accounted for using the equity method based on the present value of the Company's share of expected future cash flows of the investee, and analyzes the reasonableness of related assumptions.

D.Financial assets—fair value measurement of unlisted stocks without active market The fair value of unlisted stocks held by the Company that are not traded in an active market is determined considering those companies' recent funding raising activities, fair value assessment of other companies of the same type, market conditions and other economic indicators existing on balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the financial instruments fair value information.

As of December 31, 2017, the carrying amount of unlisted stocks without active market was \$152,955.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

		December 31, 2017	December 31, 2016
Cash on hand and petty cash	\$	13,433	\$	14,861
Checking accounts and demand deposits		2,656,471		3,292,633
Time deposits		20,373,609		17,346,715
	\$	23,043,513	\$	20,654,209

A.The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

B.The Company has no cash and cash equivalents pledged to others.

(2)	Available-for-sale financial	assets

Items	December 31, 2017		December 31, 2016
Non-current items:
Listed (TSE and OTC) stocks	\$ 631,039	\$	1,023,088
Unlisted stocks	88,917		88,917
	719,956		1,112,005
Valuation adjustment	577,973		670,495
	\$ 1,297,929	\$	1,782,500

A.The Company recognized net loss and net gain of \$92,521 and \$435,609 in other comprehensive income for fair value change for the years ended December 31, 2017 and 2016, respectively.

B.The Company originally owned the emerging stock of Taiwan High Speed Rail Corporation which was first publicly traded on October 27, 2016. However, for the year ended December 31, 2015, the Company assessed that there had been objective evidence of impairment given that the market price of the shares continuously declined. The Company then recognised \$189,091 as impairment loss in 2017.

C.The Company recognized impairment loss of \$3,065 on unlisted stocks.

D.No available-for-sale financial assets held by the Company were pledged to others.

(3) Held-to-maturity financial assets

Items		December 31, 2017	December 31, 2016
Current items:
Financial bonds	\$	-	\$	170,000
Non-current items:
Financial bonds	\$	100,000	\$	50,000

A.The Company recognized interest income of \$2,339 and \$8,197 for amortized cost in profit or loss for the years ended December 31, 2017 and 2016, respectively.

B.The counterparties of the Company's investments have good credit quality.

C.No held-to-maturity financial assets held by the Company were pledged to others.

(4) Accounts receivable

	December 31, 2017			December 31, 2016
Accounts receivable	\$	2,929,761	\$	2,189,628
Less: Allowance for bad debts	(	68,482)	(	73,732)
	\$	2,861,279	\$	2,115,896

A.The credit quality of accounts receivable that were neither past due nor impaired was in the following categories based on the Company's credit quality control policy.

	December 31, 2017		December 31, 2016
Group 1	\$	277,138	\$	126,994
Group 2		2,018,146		1,546,534
	\$	2,295,284	\$	1,673,528

Note:

Group 1:Low risk: The Company's ten largest customers, with sound performance and high transparency of financial information, are approved based on the Company's credit quality control policy.

Group 2:General risk company.

B.The ageing analysis of accounts receivable that were past due but not impaired is as follows:

	December 31, 2017		December 31, 2016
Up to 30 days	\$ 301,805		225,216
31 to 180 days	264,190		217,152
	\$ 565,995	\$	442,368

The above ageing analysis was based on past due date.

C.Movement analysis of financial assets that were impaired is as follows:

• (a) As of December 31, 2017 and 2016, the Company's accounts receivable that was impaired amounted to \$68,482 and \$73,732, respectively.
• (b) Movements in the provision for impairment of accounts receivable are as follows:

			2017
	Individual	provision	Group	provision		Total
At January 1	\$	73,732	\$	-	\$	73,732
Provision for impairment		-		-		-
Effects of foreign exchange	(	5,250)		-	(	5,250)
At December 31	\$	68,482	\$	-	\$	68,482
			2016
	Individual	provision	Group	provision		Total
At January 1	\$	-	\$	-	\$	-
Provision for impairment		73,732		-		73,732
Reversal of impairment		-		-		-
At December 31	\$	73,732	\$	-	\$	73,732

D.The Company does not hold any collateral as security.

(5) Inventories

	December 31, 2017
		Allowance for
	Cost	valuation loss	Book value
Ship fuel	\$ 688,877	\$ -	\$ 688,877
		December 31, 2016
		Allowance for
	Cost	valuation loss	Book value
Ship fuel	\$ 401,083	\$ -	\$ 401,083

(6) Other current assets

	December	31, 2017	December	31, 2016
Shipowner's accounts	\$	1,647,486	\$	1,659,549
Agent accounts		250,116		164,506
Other financial assets		117,725		116,960
Temporary debits		114,323		109,794
	\$	2,129,650	\$	2,050,809

A.Shipowner's accounts

• (a)These pertain to temporary accounts between the Company and Evergreen International S.A., Gaining Enterprise S.A., Greencompass Marine S.A., Italia Marittima S.p.A., Evergreen Marine (UK) Ltd., Evergreen Marine (Hong Kong) Ltd. and Evergreen Marine (Singapore) Pte. Ltd.. These accounts occur as these ship owners incur foreign port expenses and related rental expenses.
• (b)In response to market competition and enhancement of global transportation network to provide better logistics services to customers, the Company has joined Cosco Container Lines Co., Ltd., Kawasaki Kisen Kaisha, Ltd., Yang Ming (UK), Ltd. and Hanjin Shipping Co., Ltd. to form the new CKYHE Alliance for the trading of shipping spaces.
• (c)In response to market competition and enhancement of global transportation network to provide better logistics services to customers, the Group has joined Cosco Container Lines Co., Ltd., CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. to form the OCEAN Alliance on March 31, 2017 for trading of shipping space.
• B.Agency accounts

These accounts occur when domestic and foreign agencies, based on the agreement with the Company, deal with foreign port formalities regarding arrival and departure of ships, cargo loading, discharging and forwarding, collection of freight, and payment of expenses incurred in the foreign port.

(7) Investments accounted for using equity method (7) Investments accounted for using equity method (7) Investments accounted for using equity method

Details of long-term equity investments accounted for using equity method are set forth below: Details of long-term equity investments accounted for using equity method are set forth below: Details of long-term equity investments accounted for using equity method are set forth below:

	December	December December 31, 31, 31, 2017 2017 2017	December December	December 31, 31, 31, 2016 2016 2016
Subsidiary Subsidiary Subsidiary of of of the the the Company: Company: Company:
Peony Peony Peony Investment Investment Investment S.A. S.A. S.A.	\$ \$ \$	29,984,506 29,984,506 29,984,506	\$ \$ \$	26,887,947 26,887,947 26,887,947
Evergreen Evergreen Evergreen Marine Marine Marine (Hong (Hong (Hong Kong) Kong) Kong) Ltd. Ltd. Ltd.		6,287,883 6,287,883 6,287,883		- - -
Everport Everport Everport Terminal Terminal Terminal Services Services Services Inc. Inc. Inc.		568,156 568,156 568,156		176,298 176,298 176,298
Taiwan Taiwan Taiwan Terminal Terminal Terminal Services Services Services Co., Co., Co., Ltd. Ltd. Ltd.		39,912 39,912 39,912		39,556 39,556 39,556
Associates Associates Associates of of of the the the Company: Company: Company:
EVA EVA EVA Airways Airways Airways Corporation Corporation Corporation		9,462,402 9,462,402 9,462,402		8,699,063 8,699,063 8,699,063
Evergreen Evergreen Evergreen International International International Storage Storage Storage and and and Transport Transport Transport		8,554,230 8,554,230 8,554,230		8,604,700 8,604,700 8,604,700
Corporation Corporation Corporation
Taipei Taipei Taipei Port Port Port Container Container Container Terminal Terminal Terminal Corporation Corporation Corporation		977,049 977,049 977,049		967,475 967,475 967,475
Charng Charng Charng Yang Yang Yang Development Development Development Co., Co., Co., Ltd. Ltd. Ltd.		537,532 537,532 537,532		531,069 531,069 531,069
VIP VIP VIP Greenport Greenport Greenport Joint Joint Joint Stock Stock Stock Company Company Company		205,923 205,923 205,923		181,427 181,427 181,427
Evergreen Evergreen Evergreen Security Security Security Corporation Corporation Corporation		97,140 97,140 97,140		89,536 89,536 89,536
Evergreen Evergreen Evergreen Marine Marine Marine (Latin (Latin (Latin America), America), America), S.A. S.A. S.A.		4,364 4,364 4,364		4,459 4,459 4,459
	\$ \$ \$	56,719,097 56,719,097 56,719,097	\$ \$ \$	46,181,530 46,181,530 46,181,530

		\$ \$ \$ 56,719,097 56,719,097 56,719,097	\$ \$ \$	46,181,530 46,181,530 46,181,530 46,181,530
A.The A.The A.The fair fair fair value value value of of of the the the Company's Company's Company's associates associates associates	which which which	have have have quoted quoted quoted market market	market price price price	was was was as as as follows: follows: follows:
		December 31, 2017 December 31, 2017 December 31, 2017		December 31, 2016 December 31, 2016 December 31, 2016
Evergreen International Storage and Evergreen International Storage and Evergreen International Storage and Transport Corporation Transport Corporation Transport Corporation	\$ \$ \$	6,000,494 6,000,494 6,000,494	\$ \$ \$	5,428,009 5,428,009 5,428,009
EVA Airways Corporation EVA Airways Corporation EVA Airways Corporation		10,790,460 10,790,460 10,790,460		9,649,978 9,649,978 9,649,978
	\$ \$ \$	16,790,954 16,790,954 16,790,954	\$ \$ \$	15,077,987 15,077,987 15,077,987
B.The B.The B.The above above above investment investment investment income income income or or or loss loss loss	accounted accounted accounted	for for for using using using the the the	equity equity equity method method	method was was was based based based on on on
financial financial financial statements statements statements of of of the the the investees investees investees	for for for the the the	corresponding corresponding corresponding	periods, periods, periods,	which which which were were were audited audited audited
independent independent independent auditors. auditors. auditors.
C.Subsidiary: C.Subsidiary:
(a)For (a)For (a)For information information information on on on the the the subsidiaries, subsidiaries, subsidiaries, statements statements statements as as as of of of December December December 31, 31, 31, 2017. 2017. 2017.	please please please	refer refer refer to to to Note Note Note 4(3) 4(3) 4(3)	of of of the the the	consolidated consolidated consolidated financial financial financial
(b)On (b)On (b)On August August August 11, 11, 11, 2017, 2017, 2017, the the the Board Board Board of of of	Directors Directors Directors	resolved resolved resolved to to to acquire acquire acquire	Evergreen Evergreen Evergreen	Marine Marine Marine (Hong (Hong (Hong Kong) Kong) Kong)
Ltd. Ltd. Ltd. On On On December December December 18, 18, 18, 2017, 2017, 2017, the the the	Company Company Company	purchased purchased purchased 80% 80% 80% of of of	the the the shares shares shares	of of of Evergreen Evergreen Evergreen Marine Marine Marine
(Hong (Hong (Hong Kong) Kong) Kong) Ltd. Ltd. Ltd. for for for cash cash cash of of of	\$6,452,225 \$6,452,225 \$6,452,225	(approx. (approx. (approx. USD USD USD	212,000) 212,000) 212,000)	from from from subsidiary subsidiary subsidiary Peony Peony Peony
Investment Investment Investment S.A. S.A. S.A. Please Please Please refer refer refer to to to Note Note Note	6(30) 6(30) 6(30)	to to to the the the consolidated consolidated consolidated	financial financial financial	statements statements statements of of of 2017. 2017. 2017.
	~38~ ~38~ ~38~

B.The above investment income or loss accounted for using the equity method was based on the financial statements of the investees for the corresponding periods, which were audited by independent auditors. B.The above investment income or loss accounted for using the equity method was based on the financial statements of the investees for the corresponding periods, which were audited by independent auditors. B.The above investment income or loss accounted for using the equity method was based on the financial statements of the investees for the corresponding periods, which were audited by independent auditors.

C.Subsidiary: C.Subsidiary: C.Subsidiary:

• (a)For information on the subsidiaries, please refer to Note 4(3) of the consolidated financial statements as of December 31, 2017. (a)For information on the subsidiaries, please refer to Note 4(3) of the consolidated financial statements as of December 31, 2017. (a)For information on the subsidiaries, please refer to Note 4(3) of the consolidated financial statements as of December 31, 2017.
• (b)On August 11, 2017, the Board of Directors resolved to acquire Evergreen Marine (Hong Kong) Ltd. On December 18, 2017, the Company purchased 80% of the shares of Evergreen Marine (Hong Kong) Ltd. for cash of \$6,452,225 (approx. USD 212,000) from subsidiary Peony Investment S.A. Please refer to Note 6(30) to the consolidated financial statements of 2017. (b)On August 11, 2017, the Board of Directors resolved to acquire Evergreen Marine (Hong Kong) Ltd. On December 18, 2017, the Company purchased 80% of the shares of Evergreen Marine (Hong Kong) Ltd. for cash of \$6,452,225 (approx. USD 212,000) from subsidiary Peony Investment S.A. Please refer to Note 6(30) to the consolidated financial statements of 2017. (b)On August 11, 2017, the Board of Directors resolved to acquire Evergreen Marine (Hong Kong) Ltd. On December 18, 2017, the Company purchased 80% of the shares of Evergreen Marine (Hong Kong) Ltd. for cash of \$6,452,225 (approx. USD 212,000) from subsidiary Peony Investment S.A. Please refer to Note 6(30) to the consolidated financial statements of 2017.

	Principal
	place of			Nature of	Methods of
Company name	business	Ownership(%)		relationship	measurement
		December	December
		31, 2017	31, 2016
Evergreen International Storage and Transport Corporation	TW	39.74%	39.74%	With a right over 20% to vote	Equity method
EVA Airways Corporation	TW	16.31%	16.31%	Have a right to vote in the Board of	Equity method

D.The basic information of the associates that are material to the Company is as follows:

E.The summarised financial information of the associates that are material to the Company is as follows:

Balance sheet

		Evergreen International Storage and Transport Corporation
		December 31, 2017	December 31, 2016
Current assets	\$	5,429,946	\$ 4,883,682
Non-current assets		27,662,565	28,917,060
Current liabilities	(	2,369,781) (	2,380,308)
Non-current liabilities	(	9,031,865) (	9,592,754)
Total net assets	\$	21,690,865	\$ 21,827,680
Share in associate's net assets Unrealized income with affiliated	\$	8,558,553	\$ 8,611,875
companies	(	4,323) (	7,175)
Carrying amount of the associate	\$	8,554,230	\$ 8,604,700

		EVA Airways	Corporation
		December 31, 2017	December 31, 2016
Current assets	\$	69,002,340 \$	69,375,363
Non-current assets		159,204,888	148,288,041
Current liabilities	(	60,428,208) (	62,284,933)
Non-current liabilities	(	103,569,512) (	96,042,190)
Total net assets	\$	64,209,508 \$	59,336,281
Share in associate's net assets	\$	9,462,402 \$	8,699,063

Statement of comprehensive income

		Evergreen International Storage and Transport Corporation
	Year	ended December	Year	ended December
		31, 2017		31, 2016
Revenue	\$	7,554,009	\$	7,472,097
Profit for the period from continuing operations		884,258		809,015
Other comprehensive loss, net of tax	(	647,260)	(	123,347)
Total comprehensive income	\$	236,998	\$	685,668
Dividends received from associates	\$	148,422	\$	148,422

		EVA Airways		Corporation
	Year	ended December	Year	ended December
		31, 2017		31, 2016
Revenue	\$	163,561,731	\$	144,679,665
Profit for the period from
continuing operations		6,310,934		3,953,667
Other comprehensive (loss) income,
net of tax	(	769,683)		2,084,356
Total comprehensive income	\$	5,541,251	\$	6,038,023
Dividends received from associates	\$	132,191	\$	188,845

F.The carrying amount of the Company's interests in all individually immaterial associates and the Company's share of the operating results are summarized below:

As of December 31, 2017 and 2016, the carrying amount of the Company's individually immaterial associates amounted to \$1,822,008 and \$1,773,966, respectively.

		Year ended December		Year ended December
		31, 2017		31, 2016
Profit for the period from continuing operations	\$	344,532	\$	183,291
Other comprehensive loss, net of tax	(	4,318)	(	15,893)
Total comprehensive income	\$	340,214	\$	167,398

• G.To meet the operational needs in Vietnam, the Board of Directors has resolved on November 13, 2015, to participate in VIP Greenport Joint Stock Company's capital increase as the original shareholder. The investment amount was VND125,000 thousand and the capital increase was effective from January 16, 2016. The shareholding ratio is 21.74% after the capital increase and VIP Greenport Joint Stock Company is accounted for using equity method.
• H.On May 12, 2017, the Board of Directors resolved to purchase newly issued shares of VIP Greenport Joint Stock Company for VND 12,500 thousand as an original shareholder. The ownership percentage remains at 21.74% after the purchase.

					Loading and Loading and		Computer and Computer and
					unloading unloading		communication communication	Transportation Transportation		Office Office		Leasehold Leasehold
		Land Land	Buildings Buildings		equipment equipment		equipment equipment	equipment equipment	Ships Ships	equipment equipment		improvements improvements	Other Other	Total Total
At January 1, 2017 At January 1, 2017
Cost Cost	\$ \$	\$ 558,532 558,532	402,956 402,956 \$	\$ \$	5,663,204 5,663,204	\$ \$	\$ \$ 120,405 120,405	\$ 4,661,534 4,661,534	24,554,286 24,554,286 \$	209,733 \$ \$	\$ \$ 209,733	\$ \$ 337,340 337,340	\$ 72,810 72,810	36,580,800 36,580,800 \$
Accumulated depreciation Accumulated depreciation		( - -	199,399) 199,399) (	( (	3,990,202) 3,990,202)	( (	( ( 109,661) 109,661)	( 1,879,108) 1,879,108)	3,958,278) 3,958,278) (	( (	( ( 159,570) 159,570)	( ( 228,668) 228,668)	( ( 531) 531)	10,525,417) 10,525,417)
	\$ \$	\$ 558,532 558,532	203,557 203,557 \$	\$ \$	1,673,002 1,673,002	\$ \$	\$ \$ 10,744 10,744	2,782,426 2,782,426	20,596,008 20,596,008 \$ \$	\$ \$	\$ \$ 50,163 50,163	\$ \$ 108,672 108,672	\$ 72,279 72,279	26,055,383 26,055,383 \$
2017 2017
Opening net book amount as Opening net book amount as at January 1 at January 1	\$ \$	\$ 558,532 558,532	203,557 203,557 \$	\$ \$	1,673,002 1,673,002	\$ \$	\$ \$ 10,744 10,744	\$ 2,782,426 2,782,426	20,596,008 20,596,008 \$	50,163 \$ \$	\$ \$ 50,163	\$ \$ 108,672 108,672	\$ 72,279 72,279	26,055,383 26,055,383 \$
Additions Additions		- -	- -		2,014 2,014		23,131 23,131	984,310 984,310	21,375 21,375		8,320 8,320	14,312 14,312	494 494	1,053,956 1,053,956
Disposals Disposals		- -	- -	( (	( 38) 38)	(	( ( 28) 28)	( ( 14,252) 14,252)	( 3,451) 3,451)	(	26) 26)	- -	( ( - -	17,795) 17,795)
Reclassifications Reclassifications		- -	-	-	379,334 379,334		807 807	- -	1,195,037 1,195,037		128 128	204,089 204,089	387 387	1,779,782 1,779,782
Depreciation Depreciation		( - -	7,747) 7,747) (	( (	161,158) 161,158)	( (	( ( 12,118) 12,118)	( 371,991) 371,991)	1,061,432) 1,061,432) (	( (	( ( 20,029) 20,029)	( ( 115,341) 115,341)	( ( 2,823) 2,823)	1,752,639) 1,752,639)
Closing net book amount as Closing net book amount as at December 31 at December 31	\$ \$	\$ 558,532 558,532	195,810 195,810 \$	\$ \$	1,893,154 1,893,154	\$ \$	\$ \$ 22,536 22,536	3,380,493 3,380,493	20,747,537 20,747,537 \$ \$	\$ \$	\$ \$ 38,556 38,556	\$ \$ 211,732 211,732	\$ 70,337 70,337	27,118,687 27,118,687 \$
At December 31, 2017 At December 31, 2017
Cost Cost	\$ \$	\$ 558,532 558,532	402,956 402,956 \$	\$ \$	6,043,080 6,043,080	\$ \$	\$ \$ 137,898 137,898	\$ 5,034,842 5,034,842	25,314,393 25,314,393 \$	207,819 \$ \$	\$ \$ 207,819	\$ \$ 555,741 555,741	\$ 73,690 73,690	38,328,951 38,328,951 \$
Accumulated depreciation Accumulated depreciation		( - -	207,146) 207,146) (	( (	4,149,926) 4,149,926)	( (	( ( 115,362) 115,362)	( 1,654,349) 1,654,349)	4,566,856) 4,566,856) (	( (	( ( 169,263) 169,263)	( ( 344,009) 344,009)	( ( 3,353) 3,353)	11,210,264) 11,210,264)
	\$ \$	\$ 558,532 558,532	195,810 195,810 \$	\$ \$	1,893,154 1,893,154	\$ \$	\$ \$ 22,536 22,536	3,380,493 3,380,493	20,747,537 20,747,537 \$ \$	\$ \$	\$ \$ 38,556 38,556	\$ \$ 211,732 211,732	\$ 70,337 70,337	27,118,687 27,118,687 \$

(8) Property, plant and equipment

(8) Property, plant and equipment

				Loading and unloading	communication Computer and	Transportation		Office	Leasehold
	Land	Buildings		equipment	equipment	equipment	Ships	equipment	improvements	Other	Total
At January 1, 2016
Cost	\$ \$ 558,532	402,956		\$ 5,590,610	\$ 117,697	\$ \$ 5,401,982	24,439,856	\$ \$ 218,298	\$ 319,403	\$ 4,351	37,053,685
Accumulated depreciation	( -	191,280)	(	( 3,881,599)	( 101,061)	( 1,662,899)	( 2,903,730)	( 164,652)	( 166,104)	( 48)	9,071,373)
	\$ 558,532	211,676 \$		\$ 1,709,011	\$ 16,636	\$ \$ 3,739,083	21,536,126	\$ \$ 53,646	\$ 153,299	\$ 4,303	27,982,312
2016
Opening net book amount as at January 1	\$ 558,532	211,676 \$		\$ 1,709,011	\$ 16,636	\$ \$ 3,739,083	21,536,126	\$ \$ 53,646	\$ 153,299	\$ 4,303	27,982,312
Additions	-		-	82,234	2,709	40,062	37,865	6,258	17,937	3,757	190,822
Disposals	-		( -	4)	( -	626,555)	( -	242)	-	( -	626,801)
Reclassifications	-		-	36,943	-	-	76,565	8,572	-	64,702	186,782
Depreciation	( -		( 8,119)	( 155,182)	( 8,601)	( 370,164)	( 1,054,548)	( 18,071)	( 62,564)	( 483)	1,677,732)
Closing net book amount as at December 31	\$ 558,532	203,557 \$		\$ 1,673,002	\$ 10,744	\$ \$ 2,782,426	20,596,008	\$ \$ 50,163	\$ 108,672	\$ 72,279	26,055,383
At December 31, 2016
Cost	\$ \$ 558,532	402,956		\$ 5,663,204	\$ 120,405	\$ \$ 4,661,534	24,554,286	\$ \$ 209,733	\$ 337,340	\$ 72,810	36,580,800
Accumulated depreciation	( -	199,399)	(	( 3,990,202)	( 109,661)	( 1,879,108)	( 3,958,278)	( 159,570)	( 228,668)	( 531)	10,525,417)
	\$ 558,532	203,557 \$		\$ 1,673,002	\$ 10,744	\$ \$ 2,782,426	20,596,008	\$ \$ 50,163	\$ 108,672	\$ 72,279	26,055,383

A.The Company has issued a negative pledge to granting banks for drawing borrowings within the credit line to purchase the above transportation equipment.

B.Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

(9) Investment property

	Land		Buildings		Total
At January 1, 2017
Cost	\$ 1,414,008	\$	975,187	\$	2,389,195
Accumulated depreciation	-	(	462,349)	(	462,349)
	\$ 1,414,008	\$	512,838	\$	1,926,846
2017
Opening net book amount as at January 1	\$ 1,414,008	\$	512,838	\$	1,926,846
Depreciation charge	-	(	19,144)	(	19,144)
Closing net book amount as at December 31	\$ 1,414,008	\$	493,694	\$	1,907,702
At December 31, 2017
Cost	\$ 1,414,008	\$	975,187	\$	2,389,195
Accumulated depreciation	-	(	481,493)	(	481,493)
	\$ 1,414,008	\$	493,694	\$	1,907,702
	Land		Buildings		Total
At January 1, 2016
Cost	\$ 1,414,008	\$	975,187	\$	2,389,195
Accumulated depreciation	-	(	443,204)	(	443,204)
	\$
2016	1,414,008	\$	531,983	\$	1,945,991
Opening net book amount as at January 1	\$ 1,414,008	\$	531,983	\$	1,945,991
Depreciation charge	-	(	19,145)	(	19,145)
Closing net book amount as at December 31	\$ 1,414,008	\$	512,838	\$	1,926,846
At December 31, 2016
Cost	\$ 1,414,008	\$	975,187	\$	2,389,195
Accumulated depreciation	-	(	462,349)	(	462,349)

A.Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:

	Year ended	December	Year	ended December
	31,	2017		31, 2016
Rental income from investment property	\$	102,753	\$	98,004
Direct operating expenses arising from the
investment property that generated rental
income during the year	\$	19,144	\$	19,145
Direct operating expenses arising from the
investment property that did not generate
rental income during the year	\$	-	\$	-

B.The fair value of the investment property held by the Company as at December 31, 2017 and 2016 was \$3,562,523 and \$3,583,847, respectively. The fair value measurements were based on the market prices of recently sold properties in the immediate vicinity of a certain property.

Valuations were made using the income approach which is categorised within Level 2 in the fair value hierarchy.

C.Impairment information about the investment property is provided in Note 8.

(10) Other current assets

	December 31, 2017	December 31, 2016
Prepayments for equipment	\$ 3,235,888	\$ 2,656,169
Refundable deposits	18,415	23,647
Others	-	312
	\$ 3,254,303	\$ 2,680,128

Amount of borrowing costs capitalized as part of prepayment for equipment and the range of the interest rates for such capitalization are as follows:

	Year ended December	Year ended December
	31, 2017	31, 2016
Amount capitalised	\$ 42,773	\$ 24,557
Interest rate	1.31%~1.59%	1.31%~1.59%
(11) Other current liabilities
	December 31, 2017	December 31, 2016
Corporate bonds payable - current portion	\$ -	\$ 3,000,000
Long-term liabilities - current portion	7,738,706	6,218,417
Shipowner's accounts	1,939,253	1,231,371
Agency accounts	1,329,979	1,154,491
Others	21,980	10,789
	\$ 11,029,918	\$ 11,615,068

(12) Corporate bonds payable

	December 31, 2017		December 31, 2016
Domestic secured corporate bonds	\$ 8,000,000	\$	3,000,000
Less: Current portion or exercise of put
options	-	(	3,000,000)
	\$ 8,000,000	\$	-

A. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred herein as the "Thirteenth Bonds"), totaling \$8,000,000. The Thirteenth Bonds are categorized into Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals \$2,000,000, and the rest total \$6,000,000, with each par value of \$1,000,000. The major terms of the issuance are set forth below:

• (a) Period: 5 years (April 25, 2017 to April 25, 2022)
• (b) Coupon rate: 1.05% fixed per annum
• (c) Principal repayment and interest payment

Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from the issuing date. For each category of the bonds mentioned above, half the principal must be paid at the end of the fourth year, and another half at the maturity date.

(d) Collaterals

The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank, Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank, Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank Sinopac.

• B. On April 26, 2012, the Company issued its twelfth domestic secured corporate bonds (referred herein as the "Twelfth Bonds"), totaling \$3,000,000. The Twelfth Bonds are categorized into Bond A and B, depending on the guarantee institution. Bond A totals \$2,000,000, and Bond B totals \$1,000,000. The major terms of the issuance are set forth below:
• (a) Period: 5 years (April 26, 2012 to April 26, 2017)
• (b) Coupon rate: 1.28% fixed per annum
• (c) Principal repayment and interest payment

Repayments for the Twelfth Bonds are paid annually on coupon rate, starting a year from the issuing date. The principal of the Twelfth Bonds shall be repaid in lump sum at maturity.

(d) Collaterals

The Twelfth Bonds are secured. Bond A are guaranteed by Bank Sinopac, and Bond B are guaranteed by Far Eastern International Bank.

(13) Long-term loans

	31, 2017		December 31, 2016
\$	18,945,840	\$	20,315,266
	20,745,040		23,532,722
	10,339		644,763
(	10,627)	(	12,686)
	39,690,592		44,480,065
(	7,738,706)	(	6,218,417)
\$	31,951,886	\$	38,261,648
			106.03~116.03 0.85%~1.90%
		December 107.04~116.03 1.18%~2.56%

Please refer to Note 8 for details of the collaterals pledged for the above long-term loans.

(14) Other non-current liabilities

	December 31, 2017	December 31, 2016
Accrued pension liabilities	\$ 1,453,219	\$	1,479,872
Guarantee deposits received	12,053		9,847
	\$ 1,465,272	\$	1,489,719

(15) Pension

A.(a)In accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 15% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions for the deficit by next March.

(b)The amounts recognised in the balance sheet are determined as follows:

		December 31, 2017	December 31, 2016
Present value of defined benefit obligations	(\$	1,893,481)	(\$	1,952,460)
Fair value of plan assets		440,262		472,588
Net defined benefit liability	(\$	1,453,219)	(\$	1,479,872)

(c)Movements in net defined benefit liabilities are as follows:

		Present value of
		defined benefit		Fair value of		Net defined
		obligations		plan assets		benefit liability
Year ended December 31, 2017
Balance at January 1	(\$	1,952,460)	\$	472,588	(\$	1,479,872)
Current service cost	(	18,595)		-	(	18,595)
Interest (expense) income	(	23,400)		5,556	(	17,844)
	(	1,994,455)		478,144	(	1,516,311)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-	(	1,045)	(	1,045)
Change in financial assumptions	(	45,806)		-	(	45,806)
Experience adjustments	(	34,747)		-	(	34,747)
	(	80,553)	(	1,045)	(	81,598)
Pension fund contribution		-		127,890		127,890
Paid pension		181,527	(	164,727)		16,800
Balance at December 31	(\$	1,893,481)	\$	440,262	(\$	1,453,219)
		Present value of
		defined benefit		Fair value of		Net defined
		obligations		plan assets		benefit liability
Year ended December 31, 2016
Balance at January 1	(\$	1,997,170)	\$	461,916	(\$	1,535,254)
Current service cost	(	18,723)		-	(	18,723)
Interest (expense) income	(	23,975)		5,420	(	18,555)
	(	2,039,868)		467,336	(	1,572,532)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-	(	2,043)	(	2,043)
Change in financial assumptions		-		-		-
Experience adjustments	(	47,334)		-	(	47,334)
	(	47,334)	(	2,043)	(	49,377)
Pension fund contribution		-		129,908		129,908
Paid pension		134,742	(	122,613)		12,129
Balance at December 31	(\$	1,952,460)	\$	472,588	(\$	1,479,872)

(d)The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiaries' defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2017 and 2016 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e)The principal actuarial assumptions used were as follows:

	Year ended	Year ended
	December 31, 2017	December 31, 2016
Discount rate	1.00%	1.25%
Future salary increases	2.00%	2.00%

Assumptions regarding future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate			Future salary increases
	Increase 0.25%	Decrease	0.25%	Increase	0.25%	Decrease	0.25%
December 31, 2017
Effect on present value of defined benefit obligation	(\$ 45,806)	\$	47,594	\$	30,388	(\$	29,361)
December 31, 2016
Effect on present value of defined benefit obligation	(\$ 46,316)	\$	48,145	\$	29,948	(\$	28,907)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f)Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2018 amounts to \$107,174.
• (g)As of December 31, 2017, the weighted average duration of the retirement plan is 10 years. The analysis of timing of the future pension payment was as follows:

	December 31, 2017
Within 1 year	\$ 129,722
1~2 year	79,438
2~5 years	267,551
Over 5 years	1,480,416
	\$ 1,957,127

• B.(a)Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
• (b)The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2017 and 2016 were \$48,188 and \$52,170, respectively.

(16) Capital stock

• A. As of December 31, 2017, the Company's authorised capital was \$50,000,000, and the paid-in capital was \$40,123,560, divided into 4,012,356 thousand shares of common stocks with a par value of \$10 (in dollars) per share. All proceeds from shares issued have been collected.
• B. On August 11, 2017, the Board of Directors of the Company resolved to increase capital of \$5,000,000 by issuing 500,000 thousand shares at a par value of \$10 (in dollars) per share. Of which 50,000 thousand shares are reserved for employee stock purchase plan. The proposal of capital increase has been reported and become effective on November 13, 2017. The issue price is NT\$15.3 per share and amount of shares was \$7,711,222. All proceeds from share issuance was completed on December 27, 2017.
• (17) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

		Year	ended December 31, 2017
		Employee	Adjustments to share
		stock	of changes in equity of
	Share	options	associates and joint	Donated
	premium	exercised	ventures	assets	Others
At January 1	\$ 5,895,171	\$ -	\$ 2,086,684	\$ 446	\$ 6,713
Issuance of common stock for cash Recognition of change in equity of associates in portion to the	2,711,222	76,280	-	-	-
Company's ownership	-	-	61,559	-	-
At December 31	\$ 8,606,393	\$76,280	\$ 2,148,243	\$ 446	\$ 6,713
		Year	ended December 31, 2016
		Employee	Adjustments to share
		stock	of changes in equity of
	Share premium	options exercised	associates and joint ventures	Donated assets	Others
At January 1	\$ 5,895,171	\$ -	\$ 2,084,303	\$ 446	\$ 6,713
Recognition of change in equity of associates in portion to the Company's ownership	-	-	2,381	-	-
At December 31	\$ 5,895,171	\$ -	\$ 2,086,684	\$ 446	\$ 6,713
(18) Retained earnings
			Year ended December 31, 2017	Year ended December 31, 2016
At January 1		(\$	4,248,211) \$		2,561,825
Profit (loss) for the year			7,005,171 (		6,607,986)
Legal reserve used to cover accumulated deficit			4,248,211		-
Remeasurement on post employment
benefit obligations, net of tax At December 31		( \$	235,596) ( 6,769,575 (\$		202,050) 4,248,211)

A.According to the Company's Articles of Incorporation, if there is any profit for a fiscal year, the Company shall first make provision for income tax and cover prior years' losses, then appropriate 10% of the residual amount as legal reserve. Dividends shall be proposed by the Board of Directors and resolved by the stockholders.

B.Dividend policy

The Company is currently at the stable growth stage. In order to facilitate future expansion plans, dividends to stockholders are distributed mutually in the form of both cash and stocks with the basic principle that the ratio of cash dividends to total stock dividends shall not be lower than 10%.

C.Legal reserve

Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company's paid-in capital.

• D.In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
• E.(a)In response to future operating plans, the Company has retained all distributable earnings and has not appropriated bonus to shareholders, directors' and supervisors' remuneration and employees' bonus for the year ended December 31, 2015.
• E.(b)For the year ended December 31, 2016, the Company incurred accumulated deficit. On June 22, 2017, the Board of Directors proposed to offset the accumulated deficit totaling \$4,248,211 with the legal reserve.
• F. The appropriation of 2017 earnings was adopted by the Board of Directors on March 23, 2018 is as follows:

	Year ended December 31, 2017
				Dividend per share
		Amount	(in dollars)
Accrual of legal reserve	\$	700,517
Appropriate cash dividends to shareholders	\$	802,471	\$	0.2
Appropriate stock dividends to shareholders	\$	2,006,178	\$	0.5

As of March 23, 2018, the above-mentioned 2017 earnings appropriation had not been resolved by the stockholders.

G.For information relating to employees' remuneration (bonuses) and directors' and supervisors' remuneration, please refer to Note 6(26).

(19) Other equity items

		Hedging		Available-for		Currency
		reserve	sale	investment		translation		Total
At January 1, 2017	(\$	67,895)	\$	1,703,161	\$	1,254,622	\$	2,889,888
Revaluation – gross		-	(	92,521)		-	(	92,521)
Revaluation – tax		-		239		-		239
Revaluation – associates		-		222,460		-		222,460
Cash flow hedges:
– Fair value gains in the
period
– associates		51,983		-		-		51,983
Currency translation differences:
–Parent		-		-	(	2,046,070)	(	2,046,070)
–Tax of Parent		-		-		2,295		2,295
–Associates		-		-	(	345,961)	(	345,961)
At December 31, 2017	(\$	15,912)	\$	1,833,339	(\$	1,135,114)	\$	682,313

		Hedging		Available-for		Currency
		reserve	sale	investment		translation		Total
At January 1, 2016	(\$	521,149)	\$	1,461,850	\$	2,155,086	\$	3,095,787
Revaluation – gross		-		435,609		-		435,609
Revaluation – tax		-	(	2,002)		-	(	2,002)
Revaluation – associates		-	(	192,296)		-	(	192,296)
Cash flow hedges:
– Fair value gains in the
period
– associates		453,254		-		-		453,254
Currency translation differences:
–Parent		-		-	(	811,853)	(	811,853)
–Tax of Parent		-		-		2,194		2,194
–Associates		-		-	(	90,805)	(	90,805)
At December 31, 2016	(\$	67,895)	\$	1,703,161	\$	1,254,622	\$	2,889,888
(20) Operating revenue

	Year ended December 31,	Year	ended December 31,
		2017	2016
Marine freight income	\$	27,548,083	\$	21,383,160
Ship rental income and slottage income		331,663		753,582
Commission income and agency service income		348,411		283,073
Other income		669,459		640,679
	\$	28,897,616	\$	23,060,494

(21) Other gains -net

	Year	ended December 31, 2017	Year ended December 31, 2016
Gains on disposal of property, plant and equipment	\$	316,314	\$	25,721
(22) Other income
	Year	ended December 31, 2017	Year	ended December 31, 2016
Rental revenue	\$	104,056	\$	99,140
Dividend income Interest income:		46,965		66,195
Interest income from bank deposits		237,683		149,249
Interest income from financial assets other than financial assets at fair
value through profit or loss		2,339		8,197
Gain from bargain purchase		1,534		-
Other income – others		99,783		91,229
	\$	492,360	\$	414,010
(23) Other gains and losses
	Year	ended December 31, 2017	Year	ended December 31, 2016
Impairment loss on available-for-sale financial assets	\$	-	(\$	1,220)
Net currency exchange gains		13,664		31,840
Gains on disposal of investments Depreciation charges on		523,710		2,297
investment property	(	19,144)	(	19,145)
Other non-operating expenses	(	83,059)	(	58,181)
	\$	435,171	(\$	44,409)
(24) Finance costs
	Year	ended December 31, 2017	Year	ended December 31, 2016
Interest expense:
Bank borrowings	\$	607,606	\$	601,003
Corporate bonds		69,863		38,400
		677,469		639,403
Less: Capitalisation of qualifying assets	(	42,772)	(	24,557)
Finance costs	\$	634,697	\$	614,846

(25) Expenses by nature

	Year	ended December	Year	ended December
		31, 2017		31, 2016
Employee benefit expense	\$	2,182,088	\$	1,718,261
Depreciation charges on property, plant and equipment		1,752,639		1,677,732
Amortisation charges on intangible assets		19,591		15,173
Stevedorage		8,659,477		7,290,336
Inland haulage and canal due		6,634,472		5,593,837
Bunker fuel		3,599,512		2,486,026
Operating lease payments		3,071,399		2,536,858
Commission		1,339,333		810,847
Port charge		1,049,814		988,757
Ship supplies and lubricant oil		215,764		168,155
Professional service and data service expenses		214,507		209,106
Other operating costs and expenses		242,667		355,967
	\$	28,981,263	\$	23,851,055

(26) Employee benefit expense

	Year ended December		Year ended December
	31, 2017	31, 2016
Wages and salaries	\$ 1,909,254	\$	1,455,083
Labor and health insurance fees	112,773		105,754
Pension costs	84,627		89,448
Other personnel expenses	75,434		67,976
	\$ 2,182,088	\$	1,718,261

• A. In accordance with the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees that account for no less than 0.5% and pay remuneration to the directors and supervisors that account for no more than 2% of the total distributed amount.
• B.(a)For the year ended December 31, 2017, employees' compensation and directors' and supervisors' remuneration was accrued at \$36,322 and \$10,207, respectively. The aforementioned amounts were recognised in salary expenses.
• B (b)The employeesȷcompensation and directorsȷand supervisorsȷremuneration were estimated and accrued based on 0.5% and 0.14% of distributable profit of current year for the year ended December 31, 2017.
• B (c)For the year ended December 31, 2016, the Company generated loss and thus did not accrue employees', directors' and supervisors' remuneration. Employees', directors' and supervirsors' remuneration of 2016 as resolved by he Board of Directors were in agreement with those amounts recognised in the profit or loss of 2016.

B(c)Information about employees' compensation and directors' and supervisors' remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(27) Income tax

A.Income tax benefit

(a)Components of income tax benefit:

Year	December	Year	ended December
	2017	31, 2016
\$	-	\$	-
	31,399		-
	-	(	265)
	31,399	(	265)
	181,338	(	454,339)
	181,338	(	454,339)
\$	212,737	(\$	454,604)
		ended 31,

(b)The income tax (charge)/credit relating to components of other comprehensive income is as follows:

	Year	ended December	Year ended	December
		31, 2017	31, 2016
Fair value gains/losses on available -for-sale financial assets	\$	239	(\$	2,002)
Exchange differences on translating the financial statements of
foreign operations Actuarial gains/losses on defined		2,295		2,194
benefit obligations		13,872		8,394
Share of other comprehensive
income of associates	(	5,898)		12,780
	\$	10,508	\$	21,366

(c)The income tax charged/(credited) to equity during the period is as follows:

		Year ended December		Year ended December
		31, 2017		31, 2016
Reduction in capital surplus caused
by recognition of foreign investees
based on the shareholding ratio	(\$		95)	(\$	99)

	Year	ended December	Year	ended December
		31, 2017		31, 2016
Tax calculated based on profit (loss) before tax and statutory tax rate	\$	1,227,044	(\$	1,200,640)
Expenses disallowed by tax regulation		10,919		757,945
Tax exempt income by tax regulation	(	1,026,390)	(	11,644)
Prior year income tax overestimation		-	(	265)
Effect from Alternative Minimum Tax		31,399		-
Effect from investment tax credits	(	42,068)		-
Effect from tax losses		7,984		-
Prior year income tax (over)
underestimation		3,849		-
Income tax expense (benefit)	\$	212,737	(\$	454,604)

B.Reconciliation between income tax and accounting benefit

C.Amounts of deferred tax assets or liabilities as a result of temporary differences, loss carryforward and investment tax credits are as follows:

					Year ended December 31, 2017
					Recognised
				Recognised	in other
				in profit	comprehensive	Recognised
		January 1		or loss	income	in equity		December 31
炼Deferred tax assets:
Temporary differences:
Bad debts expense	\$	13,060	\$	486	\$ -	\$ -	\$	13,546
Loss on valuation of financial assets		1,740		-	239	-		1,979
Deferred profit from disposal of loading and unloading
equipment		16,708	(	2,790)	-	-		13,918
Unrealized expense		11,531	(	167)	-	-		11,364
Unrealized exchange loss		49,343	(	9,891)	-	-		39,452
Pension expense		215,644	(	18,403)	-	-		197,241
Actuarial losses/(gains)		35,933		-	13,872	-		49,805
Investment tax credits		-		42,068	-	-		42,068
Net operating loss carryforward		176,711		15,901	-	-		192,612
		520,670		27,204	14,111	-		561,985
炼Deferred tax liabilities:
Temporary differences:
Equity-accounted
investment income	(\$	546,379) (\$		208,334) (\$	3,603) (\$	95) (\$		758,411)
Gain on bargain purchase		-	(	208)	-	-	(	208)
	(	546,379) (		208,542) (	3,603) (	95) (		758,619)
	(\$	25,709) (\$		181,338)	\$ 10,508	(\$	95) (\$	196,634)

						Year ended December 31, 2016
						Recognised
				Recognised		in other
		January 1		in profit or loss		comprehensive income	Recognised in equity		December 31
炼Deferred tax assets:
Temporary differences:
Bad debts expense	\$	504	\$	12,556	\$	-	\$	-	\$ 13,060
Loss on valuation of financial assets		3,742		-	(	2,002)		-	1,740
Deferred profit from disposal of loading and unloading equipment		3,971		12,737		-		-	16,708
Unrealized expense		7,187		4,344		-		-	11,531
Unrealized exchange loss		27,966		21,377		-		-	49,343
Pension expense		233,453	(	17,809)		-		-	215,644
Actuarial losses/(gains)		27,539		-		8,394		-	35,933
Net operating loss carryforward		59,402		117,309		-		-	176,711
		363,764		150,514		6,392		-	520,670
炼Deferred tax liabilities:
Temporary differences: Equity-accounted
investment income	(\$	865,079)	\$	303,825	\$	14,974	(\$	99) (\$	546,379)
	(\$	501,315)	\$	454,339	\$	21,366	(\$	99) (\$	25,709)

D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

	December 31, 2017
	Unused tax		Unrecognised
Qualifying items		credits	deferred tax assets		Expiry year
Investments in emerging	\$	42,068	\$	-	2020
important strategic industries

E.Expiration dates of unused net operating loss carryforward and amounts of unrecognised deferred tax assets are as follows:

		December 31,	2017
		Unused tax		Unrecognised	Final year
Year incurred	Amount filed	credits	deferred	tax assets	tax credits are	due
2017	\$ 116,177	\$ 116,177	\$	-	2027
2016	747,045	747,045		-	2026
2015	269,787	269,787		-	2025
	\$ 1,133,009	\$ 1,133,009	\$	-

December 31, 2016
				Unused tax		Unrecognised	Final year
Year incurred		Amount filed		credits	deferred	tax assets	tax credits are due
2016	\$	747,045	\$	747,045	\$	-	2026
2015		292,430		292,430		-	2025
	\$	1,039,475	\$	1,039,475	\$	-

• F.The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2017 and 2016, the amounts of temporary difference unrecognised as deferred tax liabilities were \$13,018,473 and \$10,868,779, respectively.
• G.As of December 31, 2017, the Company's income tax returns through 2015 have been assessed and approved by the Tax Authority.
• H.With the abolishment of the imputation tax system under the amendments to the Income Tax Act promulgated by the President of the Republic of China in February, 2018, the information on unappropriated retained earnings and the balance of the imputation credit account as of December 31, 2017, as well as the estimated creditable tax rate for the year ended December 31, 2017 is no longer disclosed.

Unappropriated retained earnings on December 31, 2016:

		December 31, 2016
Earnings generated in and before 1997	(\$	4,248,211)

I. As of December 31, 2016, the balance of the imputation tax credit account was \$2,412,471, and the Company has accumulated deficits and has no distributable earnings. As a result, creditable tax rate was not disclosed.

(28) Earnings (loss) per share

		Year	ended December 31, 2017
			Weighted average number of ordinary
			shares outstanding	Earnings per share
	Amount	after tax	(shares in thousands)	(in dollars)
Basic earnings per share Profit attributable to ordinary shareholders of
the parent	\$	7,005,171	3,549,342	\$ 1.97
Diluted earnings per share Profit attributable to ordinary shareholders of
the parent Assumed conversion of all dilutive potential ordinary shares	\$	7,005,171	3,549,342
Employees' compensation Profit attributable to ordinary shareholders of the		-	3,375
parent plus assumed conversion of all dilutive potential ordinary
shares	\$	7,005,171	3,552,717	\$ 1.97
		Year	ended December 31,	2016
			Weighted average number of ordinary shares outstanding	Loss per share
		Amount after tax	(shares in thousands)	(in dollars)
Basic loss per share
Net loss attributable to ordinary shareholders of
the parent	(\$	6,607,986)	3,512,356	(\$ 1.88)
Diluted loss per share
Net loss attributable to ordinary shareholders of
the parent	(\$	6,607,986)	3,512,356	(\$ 1.88)

(29) Supplemental cash flow information

A.Investing activities with partial cash payments

(a)Property, plant and equipment

	Year	ended December	Year	ended December
		31, 2017		31, 2016
Purchase of property, plant and equipment	\$	1,053,956	\$	190,822
Add: Opening balance of payable on equipment Less: Ending balance of payable		6,167		10,360
on equipment	(	8,429)	(	6,167)
Cash paid during the year	\$	1,051,694	\$	195,015
(b)Prepayment for equipment
	Year	ended December 31, 2017	Year	ended December 31, 2016
Prepayments for equipment Add: Opening balance of payable	\$	2,359,500	\$	1,547,284
on equipment Less: Ending balance of payable		123,685		5,767
on equipment	(	38,001)	(	123,685)
Capitalized interest	(	42,773)	(	24,557)
Cash paid during the year	\$	2,402,411	\$	1,404,809

7. RELATED PARTY TRANSACTIONS

(1) Names of the related parties and their relationship with the Company

Names of related parties	Relationship with the Company
Taiwan Terminal Services Co., Ltd. (TTSC)	Subsidiary
Peony Investment S.A. (Peony)	Subsidiary
Everport Terminal Services Inc. (ETS)	Subsidiary
Evergreen Marine (Hong Kong) Ltd. (EGH)	Subsidiary
Evergreen Marine Corp. (Malaysia) SDN BHD (EGM)	Indirect subsidiary
Kingtrans International Logistics (Tianjin) Co., Ltd. (KTIL)	Indirect subsidiary
Clove Holding Ltd. (CLOVE)	Indirect subsidiary
PT. Multi Bina Transport (MBT)	Indirect subsidiary
PT. Multi Bina Pura International (MBPI)	Indirect subsidiary
Greencompass Marine S.A. (GMS)	Indirect subsidiary
Evergreen Heavy Industrial Co., (Malaysia) Berhad. (EHIC(M))	Indirect subsidiary
Evergreen Marine (UK) Limited (EMU)	Indirect subsidiary
Evergreen Shipping Agency (Europe) GmbH (EEU)	Indirect subsidiary (Note)
Evergreen Shipping Agency (U.K.) Limited (EGU)	Indirect subsidiary
Evergreen Shipping Agency (Switzerland) S.A. (EGDL)	Indirect subsidiary
Evergreen Shipping Agency (Netherlands) B.V. (EGN)	Indirect subsidiary
Evergreen Shipping Agency (Poland) SP.ZO.O (EGD-WWX)	Indirect subsidiary
Evergreen Argentina S.A. (EGB)	Indirect subsidiary
Evergreen Shipping (Spain) S.L. (EES)	Indirect subsidiary
Evergreen Shipping Agency (Italy) S.p.A. (EIT)	Indirect subsidiary
Island Equipment LLC. (Island)	Indirect subsidiary
Armand Investment (Netherlands) N.V. (Armand N.V.)	Indirect subsidiary
Evergreen Shipping Agency (Australia) Pty. Ltd. (EMA)	Indirect subsidiary
Evergreen Shipping Agency (Thailand) Co., Ltd. (EGT)	Indirect subsidiary
Evergreen Shipping Agency (Singapore) Pte. Ltd. (EGS)	Indirect subsidiary
Evergreen Shipping Agency (India) Pvt. Ltd. (EGI)	Indirect subsidiary
Evergreen Shipping Agency (Russia) Ltd. (ERU)	Indirect subsidiary

Note: Indirect subsidiary of Evergreen Shipping Agency (Deutschland) GmbH (EGD) was renamed Evergreen Shipping Agency (Europe) GmbH (EEU).

Names of related parties	Relationship with the Company
Evergreen Agency (South Africa) (Pty) Ltd. (ESA)	Indirect subsidiary
Evergreen Shipping Agency (Korea) Corporation (EGK)	Indirect subsidiary
Armand Estate B.V. (Armand B.V.)	Indirect subsidiary
Whitney Equipment LLC. (Whitney)	Indirect subsidiary
Hemlock Equipment LLC. (Hemlock)	Indirect subsidiary
Evergreen International Storage and Transport Corporation (EITC)	Associate
EVA Airways Corporation (EVA)	Associate
Evergreen Security Corporation (ESC)	Associate
Charng Yang Development Co., Ltd. (CYD)	Associate
Taipei Port Container Terminal Corporation (TPCT)	Associate
Ningbo Victory Container Co., Ltd. (NVC)	Associate
Qingdao Evergreen C&T Co., Ltd. (QECT)	Associate
Evergreen Marine (Latin America), S.A. (ELA)	Associate
Green Peninsula Agencies SDN. BHD. (GPA)	Associate
Luanta Investment (Netherlands) N.V. (Luanta)	Associate
Taranto Container Terminal S.p.A. (TCT)	Associate
Balsam Investment (Netherlands) N.V. (Balsam)	Associate
Italia Marittima S.p.A. (ITS)	Associate
Colon Container Terminal S.A. (CCT)	Associate
PT. Evergreen Shipping Agency Indonesia (EMI)	Associate
Evergreen Shipping Agency (Vietnam) Corp. (EGV)	Associate
Evergreen Shipping Agency Co. (U.A.E) LLC (UAE)	Associate
Evergreen International Corporation (EIC)	Other related party
Evergreen Airline Services Corporation (EGAS)	Other related party
Chang Yung-Fa Charity Foundation (CYFC)	Other related party
Chang Yung-Fa Foundation (CYFF)	Other related party
Ever Accord Construction Corporation (EAC)	Other related party
Evergreen International S.A. (EIS)	Other related party
Evergreen Marine (Singapore) Pte. Ltd. (EMS)	Other related party
Gaining Enterprise S.A. (GESA)	Other related party

4 Financial Statements

Names of related parties	Relationship with the Company
Evergreen Insurance Company Ltd. (EINS)	Other related party
Evergreen Shipping Agency (America) Corporation (EGA)	Other related party
Evergreen Shipping Agency (Japan) Corporation (EGJ)	Other related party
Evergreen Shipping Agency Philippines Corporation (EGP)	Other related party

(2) Significant related party transactions and balances

A.Sales of services:

	Year	ended December 31,	Year ended December 31,
		2017		2016
Sales of services:
Subsidiaries	\$	1,955,857	\$	2,587,856
Associates		594,746		686,417
Other related parties		2,867,820		3,063,422
	\$	5,418,423	\$	6,337,695

The business terms on which the company transacts with related parties are of no difference from those with non-related parties.

B.Purchases of services:

	Year	ended December 31,	Year	ended December 31,
		2017	2016
Purchases of services:
Subsidiaries	\$	4,181,646	\$	2,929,107
Associates		1,160,689		1,027,780
Other related parties		2,350,303		2,579,882
	\$	7,692,638	\$	6,536,769

Services are purchased from subsidiaries, associates and other related parties under general conditions.

C. Receivables from related parties:

		December 31, 2017	December 31, 2016
Accounts receivable:
Subsidiaries	\$	41,619	\$	11,131
Associates		24,894		25,944
Other related parties		146,930		86,822
	\$	213,443	\$	123,897

	December	31, 2017	December 31, 2016
Other receivables:
Subsidiaries
炼Hemlock	\$	95,333	\$	-
炼Others		764		1,604
Associates		2,024		1,440
Other related parties
炼EIC		162,431		181,773
炼Others		236		22,650
	\$	260,788	\$	207,467

The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. There are no provisions against receivables from related parties.

D. Payables to related parties:

	December 31, 2017		December 31, 2016
Accounts payable:
Subsidiaries	\$ 107,203	\$	108,209
Associates	13,230		14,140
Other related parties	4,462		1,627
	\$ 124,895	\$	123,976
	December 31, 2017		December 31, 2016
Other payables:
Associates	\$ 3,251	\$	4,250
Other related parties	11,667		4,745
	\$ 14,918	\$	8,995

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

E. Agency accounts:

(a)Debit balance of agency accounts

	December 31, 2017	December 31, 2016
Subsidiaries	\$ 5,697	\$	18,020
Associates	-		18,330
	\$ 5,697	\$	36,350

(b)Credit balance of agency accounts

	December	31, 2017	December 31, 2016
Subsidiaries	\$	84,761	\$	23,926
Associates		105,552		23,750
Other related parties		385,468		73,793
	\$	575,781	\$	121,469

F. Shipowner's accounts:

(a)Debit balance of shipowner's accounts

	December	31, 2017	December 31, 2016
Subsidiaries
炼EMU	\$	595,393	\$	85,485
Associates		-		91,881
Other related parties
炼EIS		328,897		1,180,824
炼GESA		25,028		24,154
炼EMS		16,246		-
	\$	965,564	\$	1,382,344

(b)Credit balance of shipowner's accounts

	December	31, 2017	December 31, 2016
Subsidiaries
炼GMS	\$	362,323	\$	166,555
炼EGH		301,631		-
Associates		700,046		-
Other related parties
炼EMS		-		374,172
炼EGH		-		401,398
	\$	1,364,000	\$	942,125

G.Property transactions:

(a)Acquisition of property, plant and equipment:

	Year ended December 31,		Year ended December 31,
		2017		2016
Subsidiaries	\$	89	\$	53
Associates		4,350		10,619
Other related parties		61		54,979
	\$	4,500	\$	65,651

(b)Disposal of property, plant and equipment:

	Year ended	December 31, 2017			Year ended December 31, 2016
	Disposal proceeds	(Loss) gain on disposal		Disposal proceeds		gain on disposal
Other related parties	\$ -	\$ -	\$	94	\$	6
H.Endorsements and guarantees	provided to	related parties:
		December 31, 2017		December	31,	2016
Subsidiaries	\$	66,554,130	\$			77,956,854
Associates		3,035,391				2,689,558
	\$	69,589,521	\$			80,646,412

I. On August 11, 2017, the Board of Directors resolved to have the Company acquire 79% of the shares of EGH from other related party Evergreen International S.A. The acquisition date was December 18, 2017, and the transaction amount was \$6,371,572 (approx. USD \$209,350).

(3) Key management compensation

	Year ended December 31,		Year ended December 31,
	2017			2016
Salaries and other short-term
employee benefits	\$	105,218	\$	44,686
Post-employment benefits		3,909		3,769
	\$	109,127	\$	48,455

8. PLEDGED ASSETS

The Company's assets pledged as collateral are as follows:

		Book	Purpose
Pledged assets		December 31, 2017			December 31, 2016
Other financial assets
- Pledged time deposits	\$	117,725	\$	116,960	Guarantee
Property, plant and equipment
-Land		514,312		514,312	Long-term loan
-Buildings		188,363		195,726	#
-Ships		19,151,033		20,588,290	#
-Loading and unloading equipment		1,159,312		1,223,696	#
Investment property
-Land		1,285,781		1,285,781	Long-term loan
-Buildings		470,909		489,315	#
	\$	22,887,435	\$	24,414,080

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

• (2) Commitments
• A. As of December 31, 2017, the Company had delegated Mizuho Bank to issue Standby Letter of Credit amounting to USD 5,000 thousand.
• B. A former stockholder of the Company sold some of its shares through issuance of global depository receipts (GDRs). The issuance of GDRs was approved by the SEC on June 19, 1996 as per Letter (85) Tai-Cai-Zheng (1) No. 35410. On August 2, 1996, the GDRs were approved by the UK governing authority to be listed on the London Stock Exchange and were issued in Asia, Europe and the US. The total amount of the issuance of GDRs was USD 115,000 thousand. The initial number of units issued was 5,449,592, representing 54,495,920 shares of the Company's common stock at \$50.50 (in dollars) per share, and the number of supplementary units issued was 817,438. In total, the number of units issued was 6,267,030, representing 62,670,300 shares of the Company's common stock at \$50.50 (in dollars) per share, and the GDRs issued amounted to USD 115,000 thousand. Another 2,089,061 units, representing 20,890,685 shares of the Company's common stock, were issued during the period from 1997 to December 31, 2017. As of December 31, 2017, 7,994,656 units were redeemed and 361,435 units were outstanding, representing 3,614,425 shares of the Company's common stock.
• C. As of December 31, 2017, the long-term and medium-term loan facilities granted by the financial institutions with the resolution from the Board of Directors to finance the Company's purchase of new ships and general working capital requirement amounted to \$48,600,934 and the unutilized credits was \$8,899,714.
• D. Operating lease

The estimated amount of charter expense in the following years under long-term contracts is set forth as follows:

	December 31, 2017
Within 1 year	USD	76,732
1~5 years		349,180
Over 5 years		179,508
	USD	605,420

• E. As of December 31, 2017, the amount of guaranteed notes issued by the Company for loans borrowed was \$74,174,616.
• F. To meet operational needs, the Company signed the shipbuilding contracts with Taiwan Shipbuilding Co., Ltd. and Imabari Shipbuilding Co., Ltd. As of December 31, 2017, the total price of the contracts, wherein the vessels have not yet been delivered, amounted to USD 343,600 thousand, USD248,114 thousand of which remain unpaid.

10. SIGNIFICANT DISASTER LOSS 10. SIGNIFICANT DISASTER LOSS

None. None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE 11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• (1) Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company's applicable income tax rate will be raised from 17% to 20% effective from January 1, 2018. This will increase the Company's deferred tax assets and deferred tax liabilities by \$82,611 and \$129,570, respectively, which will be adjusted in the first quarter of 2018. (1) Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company's applicable income tax rate will be raised from 17% to 20% effective from January 1, 2018. This will increase the Company's deferred tax assets and deferred tax liabilities by \$82,611 and \$129,570, respectively, which will be adjusted in the first quarter of 2018.
• (2) On March 23, 2018, the proposal to appropriate the accumulated earnings was approved by the Board of Directors. Please refer to Note 6(18) for the details. (2) On March 23, 2018, the proposal to appropriate the accumulated earnings was approved by the Board of Directors. Please refer to Note 6(18) for the details.
• (3) For operational purposes, the Board of Directors resolved on March 23, 2018 to purchase shipping equipment (including dry containers, reefer containers and freezing equipment) from China International Marine Containers (Group) Co., Ltd. and Carrier Transicold Pte. Ltd. for USD 23,100 and USD 18,900, respectively. (3) For operational purposes, the Board of Directors resolved on March 23, 2018 to purchase shipping equipment (including dry containers, reefer containers and freezing equipment) from China International Marine Containers (Group) Co., Ltd. and Carrier Transicold Pte. Ltd. for USD 23,100 and USD 18,900, respectively.
• (4) In response to international regulations on sulfur content in shipping fuel, the Board of Directors resolved on March 23, 2018 to purchase sulfur emission abatement equipment from Wartsila Finland Oy and Alfa Laval Nijmegen B.V. for USD 19,075 and EUR 9,681, respectively. (4) In response to international regulations on sulfur content in shipping fuel, the Board of Directors resolved on March 23, 2018 to purchase sulfur emission abatement equipment from Wartsila Finland Oy and Alfa Laval Nijmegen B.V. for USD 19,075 and EUR 9,681, respectively.

12. OTHERS 12. OTHERS

(1) Capital risk management (1) Capital risk management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital. The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital.

• (2) Financial instruments (2) Financial instruments
• A.Fair value information of financial instruments A.Fair value information of financial instruments
  • (a)Except for those listed in the table below, the carrying amounts of the Company's financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable, other receivables, other financial assets, other current assets (liabilities), refundable deposits, guarantee deposits received, held-to-maturity financial assets, short-term loans, accounts payable and other payables) are approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(3). (a)Except for those listed in the table below, the carrying amounts of the Company's financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable, other receivables, other financial assets, other current assets (liabilities), refundable deposits, guarantee deposits received, held-to-maturity financial assets, short-term loans, accounts payable and other payables) are approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(3).

		December 31, 2017 December 31, 2017
	Book value Book value			Fair value Fair value
Financial liabilities: Financial liabilities:
Bonds payable Bonds payable	\$ \$	8,000,000 8,000,000	\$ \$	8,177,927 8,177,927
Long-term loans (including current portion) Long-term loans (including current portion)		39,690,592 39,690,592		41,532,812 41,532,812
	\$ \$	47,690,592 47,690,592	\$ \$	49,710,739 49,710,739

		December 31, 2016 December 31, 2016
	Book value Book value			Fair value Fair value
Financial liabilities: Financial liabilities:
Bonds payable (including current portion) Bonds payable (including current portion)	\$ \$	3,000,000 3,000,000	\$ \$	3,029,085 3,029,085
Long-term loans (including current portion) Long-term loans (including current portion)		44,480,065 44,480,065		46,721,632 46,721,632
	\$ \$	47,480,065 47,480,065	\$ \$	49,750,717 49,750,717

• (b)The methods and assumptions of fair value measurement are as follows: (b)The methods and assumptions of fair value measurement are as follows:
• i.Bonds payable: Regarding the ordinary corporate bonds issued by the Company, the coupon rate is approximate to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows. i.Bonds payable: Regarding the ordinary corporate bonds issued by the Company, the coupon rate is approximate to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows.
• ii.Long-term loans: The fair value is estimated using the present value of the expected cash flows. ii.Long-term loans: The fair value is estimated using the present value of the expected cash flows.
• B. Financial risk management policies B. Financial risk management policies
• (a)The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial position and financial performance. (a)The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial position and financial performance.
• (b)Risk management is carried out by the Company's Finance Department under policies approved by the Board of Directors. The Company's Finance Department identifies, evaluates and hedges financial risks in close co-operation with the Company's Operating Department. The Board of Directors provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. (b)Risk management is carried out by the Company's Finance Department under policies approved by the Board of Directors. The Company's Finance Department identifies, evaluates and hedges financial risks in close co-operation with the Company's Operating Department. The Board of Directors provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
• C.Significant financial risks and degrees of financial risks C.Significant financial risks and degrees of financial risks

(a)Market risk (a)Market risk

Foreign exchange risk Foreign exchange risk

i.The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations. i.The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations.

• ii.The Company's management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Company's Finance Department. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Company use forward foreign exchange contracts, transacted with Company's Finance Department. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a foreign currency that is not the entity's functional currency.
• iii.The Company's businesses involve some non-functional currency operations (the Company's functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

			December 31, 2017
		Foreign		Book value
	currency amount (In Thousands) currency) \$ 956,693 \$ 908,807 Foreign currency amount (In Thousands) currency) \$ 767,422 \$ 695,430	Exchange rate	(NTD)
(Foreign currency: functional
Financial assets
Monetary items USD:NTD			29.7005	\$ 28,414,260
Financial liabilities Monetary items USD:NTD			29.7005	\$ 26,992,022
	December 31, 2016
				Book value
			Exchange rate	(NTD)
(Foreign currency: functional
Financial assets
Monetary items USD:NTD Financial liabilities			32.2315	\$ 24,735,162
Monetary items USD:NTD			32.2315	\$ 22,414,752

iv.The total exchange gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2017 and 2016 amounted to \$13,664 and \$31,840, respectively.

	Year ended December 31, 2017
			Sensitivity analysis
				Effect on	other
	Degree of		Effect on	comprehensive
	variation	profit	or loss	income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD Financial liabilities	1%	\$	284,143	\$	-
Monetary items
USD:NTD	1%	\$	269,920	\$	-
	Year	ended	December	31, 2016
			Sensitivity analysis
				Effect on	other
	Degree of		Effect on	comprehensive
	variation	profit	or loss	income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	\$	247,352	\$	-
Financial liabilities
Monetary items
USD:NTD	1%	\$	224,148	\$	-

iiv.Analysis of foreign currency market risk arising from significant foreign exchange variation:

Price risk

• i.The Company is exposed to equity securities price risk because of investments held by the Company and classified on the balance sheet either as available-for-sale or at fair value through profit or loss. The Company is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
• ii.The Company's investments in equity securities comprise domestic listed and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, other components of equity for the years ended December 31, 2017 and 2016, would have increased/decreased by \$12,935 and \$17,779, respectively, as a result of gains/losses on equity securities classified as available-for-sale.

Interest rate risk

• i.The Company's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. During the years ended December 31, 2017 and 2016, the Company's borrowings at floating rate were denominated in the NTD and USD.
• ii.At December 31, 2017 and 2016, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2017 and 2016 would have been \$329,520 and \$369,290 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

(b)Credit risk

• i.Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Company's credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.
• ii. For the years ended December 31, 2017 and 2016, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from nonperformance by these counterparties.
• iii.For credit quality information of financial assets that are neither past due nor impaired, please refer to Note 6(4).
• (c)Liquidity risk
• i.Cash flow forecasting is performed in the operating entities of the Company and aggregated by the Company's Finance Department. The Company's Finance Department monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs.
• ii.The table below analyses the Company's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities.

		Between 3
	Less than 3	months and	Between 1	Between 2	Over 5
December 31, 2017	months	1 year	and 2 years	and 5 years	years	Total
Accounts payable	\$3,470,062	\$ -	\$ -	\$ -	\$ -	\$3,470,062
Accounts payable - related parties	124,895	-	-	-	-	124,895
Other payables	507,476	62,209	-	-	-	569,685
Other payables - related parties	14,918	-	-	-	-	14,918
Bonds payable (including current portion)	-	84,000	84,000	8,210,000	-	8,378,000
Long-term loans (including current portion)	1,460,388	6,839,680	9,582,984	16,681,547	6,968,213	41,532,812
		Between 3
	Less than 3	months and	Between 1	Between 2	Over 5
December 31, 2016	months	1 year	and 2 years	and 5 years	years	Total
Accounts payable	\$2,506,745	\$ -	\$ -	\$ -	\$ -	\$2,506,745
Accounts payable - related parties	123,976	-	-	-	-	123,976
Other payables	480,672	26,302	-	-	-	506,974
Other payables - related parties	8,995	-	-	-	-	8,995
Bonds payable (including current portion)	-	3,038,400	-	-	-	3,038,400
Long-term loans

Non-derivative financial liabilities:

(3) Fair value estimation

• A. Details of the fair value of the Company's financial assets and financial liabilities not measured at fair value are provided in Note 12(2)A. Details of the fair value of the Company's investment property measured at cost are provided in Note 6(9).
• B.The table below analyses financial instruments measured at fair value, by valuation method. The different levels have been defined as follows:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
• Level 3: Inputs for the asset or liability that are not based on observable market data.

C.The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2017 and 2016 is as follows:

December 31, 2017	Level 1	Level 2		Level 3	Total
Assets:
Recurring fair value
measurements
Available-for-sale financial
assets
Equity securities	\$ 1,144,974	\$	-	\$ 152,955	\$ 1,297,929
December 31, 2016	Level 1	Level 2		Level 3	Total
Assets:
Recurring fair value
measurements
Available-for-sale financial
assets
Equity securities	\$ 1,638,024	\$	-	\$ 144,476	\$ 1,782,500

D. The methods and assumptions the Company used to measure fair value are as follows:

(a)The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed shares
Market quoted price	Closing price

• (b)Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).
• (c)When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Company adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
• (d)The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e.

Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

• (e)The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
• (f)The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company's credit quality.

E.For the years ended December 31, 2017 and 2016, there was no transfer between Level 1 and Level 2.

F.The following chart is the movement of Level 3 for the years ended December 31, 2017 and 2016:

	Year ended December 31,	Year ended December 31,
	2017	2016
At January 1	\$ 144,476	\$ 117,398
Gains and losses recognised
in other comprehensive
income (Note 1)	8,479	27,078
At December 31	\$ 152,955	\$ 144,476

Note 1: Recorded as unrealised valuation gain or loss of available-for-sale financial assets.

G.For the years ended December 31, 2017 and 2016, there was no transfer into or out from Level 3. H.The Company is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

I.The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at		Significant	Range
	December	Valuation	unobservable	(weighted	Relationship of inputs
	31, 2017	technique	input	average)	to fair value
Non-derivative equity instrument:
Unlisted shares	\$ 145,259	Market comparable companies	Price to earnings ratio multiple	20.37 ~31.89	The higher the multiple and control premium, the higher the fair value
			Price to book ratio multiple	0.97~1.71	The higher the multiple and control premium, the higher the fair value
			Discount for lack of marketability	20%	The higher the weighted average cost of capital and discount for lack of control, the lower the fair value
Venture capital shares Private equity fund investment	7,696	Net asset value	Net asset value		The higher the net asset value, the higher the fair value
	Fair value at		Significant	Range
	December	Valuation	unobservable	(weighted	Relationship of inputs
	31, 2016	technique	input	average)	to fair value
Non-derivative equity instrument:
Unlisted shares	\$ 136,780	Market comparable companies	Price to earnings ratio multiple	24.37 ~32.31	The higher the multiple and control premium, the higher the fair value
			Price to book ratio multiple	0.86~2.97	The higher the multiple and control premium, the higher the fair value
			Discount for lack of marketability	20%	The higher the weighted average cost of capital and discount for lack of control, the lower the fair value
Venture capital shares Private equity fund investment	7,696	Net asset value	Net asset value		The higher the net asset value, the higher the fair value

J. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed: J. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

Recognised in Recognised in other Recognised in Recognised in profit or loss comprehensive income profit or loss comprehensive Favourable Unfavourable Favourable Unfavourable Favourable Unfavourable Favourable Unfavourable Input Change change change change change Input Change change change change Financial assets Financial assets Price to earnings Price to earnings Equity ratio/ price to book ±1% \$ - \$ - \$ 1,453 \$ Equity ratio/ price to book instrument ratio/ discount for ±1% \$ - \$ - \$ 1,453 \$ instrument ratio/ discount for lack of marketability lack of marketability - - 77 Net asset value ±1% - - 77 Net asset value ±1% \$ - \$ - \$ 1,530 \$ \$ - \$ - \$ 1,530 \$ December 31, 2016 December 31, 2016 Recognised in Recognised in other Recognised in Recognised in profit or loss comprehensive income profit or loss comprehensive Favourable Unfavourable Favourable Unfavourable Favourable Unfavourable Favourable Input Change change change change change Input Change change change change Financial assets Financial assets Price to earnings Equity ratio/ price to book Price to earnings ±1% \$ - \$ - \$ 1,368 \$ instrument ratio/ discount for Equity ratio/ price to book ±1% \$ - \$ - \$ 1,368 \$ lack of marketability instrument ratio/ discount for - - 77 Net asset value ±1% lack of marketability					December 31, 2017 December			31, 2017
										other
										income
										change
										1,453 1,453
										77
										77 1,530
										1,530
										other
										income
										Unfavourable
										change
										1,368 1,368
										77
	Net asset value	±1%	\$ -	\$ -		-	\$ -	1,445	\$ 77	1,445

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A.Loans to others: Please refer to table 1.

• B.Provision of endorsements and guarantees to others: Please refer to table 2.
• C.Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
• D.Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital: Please refer to table 4.
• E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: None.
• F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None.
• G.Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 5.
• H.Receivables from related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 6.
• I. Trading in derivative instruments undertaken during the reporting periods: None.
• J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
• (2) Information on investees (not including investees in Mainland China) Names, locations and other information of investee companies (not including investees in Mainland China)ǺPlease refer to table 8.
• (3) Information on investments in Mainland China
• A. Basic information: Please refer to table 9.
• B.Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.
• 1. SEGMENT INFORMATION

None.

Table 1 Expressed in thousands of NTD

Limit on loans granted to a single party (Note 7) Reason for short-term Footnote Footnote	financing (Note 6) Value	Working capital \$ - \$	requirement	Working capital requirement -
(Except as otherwise indicated) Collateral Ceiling on total loans granted (Note 7) transactions with Ceiling on total loans granted Amount of	15,150,087 borrower (Note 5) Item (Note 7) \$	15,150,087 15,150,087 None	1,036,695 -	1,036,695 - 15,150,087 None
Limit on loans granted to a single party (Note 7) Allowance for doubtful	6,060,035 accounts	12,120,070 - \$ \$	518,348	518,348 -
Limit on loans granted to Nature of loan Value Collateral	a single party (Note 7) (Note 4) \$ - \$	6,060,035 \$ 2 -	-	12,120,070 2 -
Reason for short-term financing (Note 6) Item Interest rate Allowance for accounts doubtful	None -	Working capital requirement None 2.4376- - \$	None 2.6638 - -	Working capital requirement None 2.2942- 2.6349 - -
Collateral Actual amount Reason for short-term financing (Note 6) transactions with Amount of	Value \$ drawn down borrower (Note 5) Working capital requirement Item	56,431 \$ - Working capital requirement None	Working capital requirement	525,699 - Working capital requirement None
Allowance for Balance at December borrower (Note 5) doubtful transactions with Amount of	accounts - 30, 2017 (Note 8)	\$ 74,251 \$ - \$	- -	- 683,112 -
Nature of loan (Note 4) Interest rate Nature of loan (Note 4)	\$ 2	2 \$ 2	2	2 2
Reason for short-term Interest rate Maximum outstanding balance	financing (Note 6) December 31, 2017 (Note 3) 2.4376- 2.6638	Working capital 78,238 2.4376- 2.6638 2.2942- 2.6349	requirement 2.3356	Working capital requirement 696,647 2.2942- 2.6349 2.3942- 2.6349
during the year ended Actual amount Actual amount drawn down drawn down	56,431 \$	525,699 56,431	89,102 -	213,844 525,699 -
transactions with Amount of Balance at December 30, 2017 (Note 8) related Is a	borrower (Note 5) 74,251 party \$	683,112 \$ \$ 74,251 \$ Yes	89,102	356,406 683,112 Yes
Balance at December 30, 2017 (Note 8) Nature of loan Maximum outstanding balance December 31, 2017 (Note 3) during the year ended General ledger	78,238 (Note 4) account (Note 2)	696,647 2 Receivables from \$ 78,238	93,885 related parties	363,468 2 Receivables from related parties 696,647
Interest rate related party Is a	\$ Yes	2.4376- Yes	2.6638 Yes	2.2942- 2.6349 Yes
Maximum outstanding balance during the year ended Actual amount account (Note 2) General ledger Borrower	December 31, 2017 (Note 3) drawn down Receivables from related parties	56,431 Luanta Investment Receivables from related parties \$	(Netherlands) N.V. Receivables from related parties	525,699 Clove Holding Ltd. Receivables from related parties
Balance at December Borrower related Is a Creditor	(Netherlands) N.V. Luanta Investment 30, 2017 (Note 8) party	\$ Clove Holding Ltd. 74,251 Yes	Clove Holding Ltd. Whitney Equipment LLC.	683,112 Clove Holding Ltd. Colon Container Yes Terminal S.A.
account (Note 2) General ledger Creditor	Peony Investment	Peony Investment Receivables from Peony Investment related parties \$	S.A.	Peony Investment Receivables from related parties S.A.
Maximum outstanding balance Number during the year ended Number (Note 1)	S.A. December 31, 2017 (Note 3) (Note 1) 1	78,238 S.A. 1 1	2	696,647 1 2

2 Clove Holding Ltd. Whitney Equipment LLC. Receivables from related parties Yes 93,885 89,102 89,102 2.3356 2 - Working capital requirement - None - 518,348 1,036,695 Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows (1)The Company is '0'.

(2)The subsidiaries are numbered in order starting from '1'. 2 Clove Holding Ltd. Whitney Equipment LLC. Receivables from related parties Yes 93,885 89,102 89,102 2.3356 2 - Working capital requirement - None - 518,348 1,036,695 2 Clove Holding Ltd. Whitney Equipment LLC. Receivables from related parties Yes 93,885 89,102 89,102 2.3356 2 - Working capital requirement - None - 518,348 1,036,695

Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017.

Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'.

2 Clove Holding Ltd. Colon Container Terminal S.A. Receivables from related parties Yes 363,468 356,406 213,844 2.3942- 2.6349 2 - Working capital requirement - None - 518,348 1,036,695

Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. 2 Clove Holding Ltd. Colon Container Terminal S.A. Receivables from related parties Yes 363,468 356,406 213,844 2.3942- 2.6349 2 - Working capital requirement - None - 518,348 1,036,695 2 Clove Holding Ltd. Colon Container Terminal S.A. Receivables from related parties Yes 363,468 356,406 213,844 2.3942- 2.6349 2 - Working capital requirement - None - 518,348 1,036,695

Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.

Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows the calculation for ceiling on total loans granted in the footnote. 1. According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements. Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows

PEONYǺUSD 1,020,191*29.7005*20%=6,060,035 (1)The Company is '0'.

(2)The subsidiaries are numbered in order starting from '1'. Clove Holding Ltd.烉USD 87,262*29.7005*20%=518,348

Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc. The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements. (2)The subsidiaries are numbered in order starting from '1'. Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017. PEONYǺUSD 1,020,191*29.7005*40%=12,120,070 Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

1. According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements. Note 3: Fill in the maximum outstanding balance of loans to others during the year ended December 31, 2017.

Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'. Clove Holding Ltd.烉USD 87,262*29.7005*40%=1,036,695

Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONYǺUSD 1,020,191*29.7005*50%=15,150,087 Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. Note 4: The column of'Nature of loan' shall fill in 1.'Business transaction' or 2.'Short-term financing'. Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period.

Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc. Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and the calculation for ceiling on total loans granted in the footnote. Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the Chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the Board of Directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration that they could be loaned again thereafter. Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc. Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc. Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and

The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements.

Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the Chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", the published balance of loans to others at the end of

Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public

Evergreen Marine Corporation (Taiwan) Ltd.

Provision of endorsements and guarantees to others For the year ended December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others

For the year ended December 31, 2017

Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD Table 2 Expressed in thousands of NTD

		Party being endorsed/guaranteed			Maximum outstanding	Ratio of Outstanding		Amount of	endorsement/ accumulated Ratio of	Ratio of Ceiling on total	Provision of	Provision of	Provision of	Ratio of
Number guarntees provided for a (Note 1) Limit on endorsements/ Number (Note 1)	guarantee amount as of Maximum outstanding Endorser/Guarantor endorsement/ Party being endorsed/guaranteed Endorser/Guarantor	guarantee amount at December 31, endorsement/ Outstanding Company name Relationship with	guarntees provided for a Limit on endorsements/ single party (Note 3) guarantor (Note 2) Relationship with the endorser/	guarantee amount as of Maximum outstanding December 31, 2017 endorsement/ Party being endorsed/guaranteed guarntees provided for a Limit on endorsements/ Actual amount drawn single party (Note 3) down (Note 6)	guarantee amount as of endorsements/ December 31, 2017 Amount of guarantees endorsement/ (Note 4) Relationship with	guarntees provided for a Limit on endorsements/ amount to net endorsement/ accumulated guarantee guarantee amount guarantee amount at December 31, at December 31, endorsement/ endorsement/ Outstanding (Note 5) 2017	Actual amount drawn down (Note 6) Actual amount drawn down (Note 6)	guarantee amount as of Maximum outstanding endorsement/ endorsements/ Ceiling on total endorsements/ secured with guarantees collateral amount of	endorsements/ secured with Amount of amount to net asset value of the endorser/ guarantees guarantee guarantor company	asset value of amount to net endorsement/ accumulated guarantee guarantees provided endorsements/ guarantee amount guarantees by parent at December 31, amount of (Note 3) endorsement/ Outstanding endorsements/ Provision of	Actual amount drawn subsidiary to parent down (Note 6) endorsements/ company to subsidiary guarantees by Provision of guarantees by parent endorsements/ (Note 7)	party in Mainland guarantees to the endorsements/ Provision of endorsements/ Amount of guarantees subsidiary to parent endorsements/ guarantees by guarantees provided company (Note 7) Ceiling on total endorsements/ amount of	company to subsidiary guarantees by parent endorsements/ Provision of party in Mainland guarantees to the endorsements/ (Note 7) China	subsidiary to parent amount to net endorsement/ accumulated Footnote Footnote guarantee
Company name single party (Note 3) 0	December 31, 2017 (Note 4) Evergreen Marine Corporation	(Note 5) 2017 Greencompass Marine S.A. guarantor (Note 2) the endorser/	Company name 3	(Note 4) 126,797,107 \$	35,449,742 secured with collateral guarantor (Note 2) the endorser/ \$	single party (Note 3) asset value of the endorser/ 30,736,753 (Note 5) 2017 \$	19,928,297 \$	December 31, 2017 guarantees provided - (Note 4) (Note 3) \$	\$ 48.48% collateral	the endorser/ 158,496,384 company to subsidiary (Note 5) (Note 7) 2017	company (Note 7) Y	secured with (Note 7) collateral China N (Note 3)	(Note 7) N	asset value of the endorser/
0	Evergreen Marine Corporation	Peony Investment S.A.	2	126,797,107	156,475	guarantor company 148,503	-	-	0.23%	158,496,384 guarantor company	Y	N	N	guarantor company
Greencompass Marine S.A. 0 0	Evergreen Marine Evergreen Marine Corporation \$	Evergreen Marine (UK) Limited \$ \$ 3	126,797,107 \$ 3	126,797,107 \$	37,459,486 \$ \$ 35,449,742 \$ 3	30,736,753 31,733,797	30,333,753 \$ \$ 48.48% \$	\$ - 19,928,297	50.05% - \$	48.48% \$ 158,496,384 Y	N Y \$	N 158,496,384 N \$	Y N	48.48%
126,797,107 0	Corporation Evergreen Marine Corporation	Party being endorsed/guaranteed Party being endorsed/guaranteed Whitney Equipment LLC. 35,449,742	Greencompass Marine S.A. 3 30,736,753	126,797,107 19,928,297	701,632 -	241,425	235,824 126,797,107	35,449,742 158,496,384 -	0.38% accumulated accumulated Ratio of Ratio of	158,496,384 30,736,753	19,928,297 Y	Provision of N	Provision of N -
126,797,107 Number Number 0 Peony Investment S.A. 0	Evergreen Marine Corporation Endorser/Guarantor Evergreen Marine Corporation	Peony Investment S.A. Hemlock Equipment LLC. 156,475 2	126,797,107 3 148,503	126,797,107 Limit on endorsements/ Limit on endorsements/ -	Maximum outstanding Maximum outstanding 433,748 - endorsement/ endorsement/ 156,475 2	148,503 guarantee amount guarantee amount 240,598 endorsement/ endorsement/ Outstanding Outstanding	Actual amount drawn Actual amount drawn 232,935 126,797,107 0.23%	156,475 158,496,384 endorsements/ endorsements/ - Amount of Amount of -	0.38% - endorsement/ endorsement/ amount to net guarantee guarantee	0.23% 158,496,384 Ceiling on total Ceiling on total endorsements/ 148,503 amount of amount of Y	endorsements/ endorsements/ Provision of Provision of N Y	N endorsements/ endorsements/ guarantees by guarantees by Provision of 158,496,384 N -	guarantees to the guarantees to the endorsements/ endorsements/ Provision of Y N -	0.23% Footnote
Evergreen Marine (UK) Limited 126,797,107 (Note 1) (Note 1) 0 0	Evergreen Marine Endorser/Guarantor Evergreen Marine Corporation	Colon Container Terminal S.A. Company name Company name 37,459,486 3	126,797,107 guarantor (Note 2) Relationship with Relationship with the endorser/ the endorser/ 6 31,733,797	guarntees provided for a guarntees provided for a 31,699,277 single party (Note 3) single party (Note 3) 30,333,753	guarantee amount as of guarantee amount as of 2,162,196 December 31, 2017 December 31, 2017 (Note 4) (Note 4) 37,459,486 3	31,733,797 2,162,196 at December 31, at December 31, (Note 5) 2017 2017	2,162,196 down (Note 6) down (Note 6) 126,797,107 50.05%	37,459,486 158,496,384 - secured with secured with guarantees guarantees collateral collateral 30,333,753	3.41% - asset value of asset value of amount to net the endorser/ the endorser/	50.05% 158,496,384 guarantees provided guarantees provided endorsements/ 31,733,797 (Note 3) (Note 3) Y	30,333,753 company to subsidiary company to subsidiary guarantees by parent guarantees by parent (Note 7) (Note 7) N N	N subsidiary to parent subsidiary to parent 158,496,384 company company (Note 7) N	party in Mainland party in Mainland Y (Note 7) China China N	50.05% Footnote
0	Corporation Evergreen Marine Corporation	Balsam Investment (Netherlands) N.V.	Evergreen Marine (UK) Limited guarantor (Note 2) 6	31,699,277	1,234,431 -	873,195 (Note 5)	582,130	-	1.38% guarantor guarantor company company	158,496,384	N	(Note 7) N	(Note 7) N -
126,797,107 Whitney Equipment LLC. 0 0 0	Evergreen Marine Corporation Evergreen Marine Evergreen Marine Corporation Corporation	Everport Terminal Services Inc. Everport Terminal Services Inc. 701,632 3	126,797,107 Whitney Equipment LLC. 2 2 241,425	126,797,107 126,797,107 235,824 \$ \$	1,533,455 1,533,455 - 701,632 3 \$ \$	241,425 1,433,420 1,433,420 \$ \$	1,205,191 1,205,191 126,797,107 0.38% \$ \$	701,632 158,496,384 - - 235,824 \$ \$	\$ \$ 2.26% 2.26% -	0.38% 158,496,384 158,496,384 241,425 Y	235,824 N Y Y	N 158,496,384 N N	Y N N -	0.38%
Hemlock Equipment LLC. 126,797,107 0 0 0	Evergreen Marine Evergreen Marine Evergreen Marine Corporation Corporation	Evergreen Marine (Hong Kong) Evergreen Marine (Hong Kong) 433,748 3 Ltd. Ltd.	126,797,107 Hemlock Equipment LLC. 3 3 240,598	126,797,107 126,797,107 232,935	2,019,634 2,019,634 433,748 3	240,598 2,019,634 2,019,634	705,387 705,387 126,797,107 0.38%	433,748 158,496,384 - - 232,935	3.19% 3.19% -	0.38% 158,496,384 158,496,384 240,598 Y	232,935 N Y Y	N 158,496,384 N N	Y N N	0.38%

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows: Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

Evergreen Marine Corporation Colon Container Terminal S.A. 6 31,699,277 2,162,196 2,162,196 2,162,196 - 3.41% 158,496,384 Evergreen Marine Corporation Colon Container Terminal S.A. 6 31,699,277 2,162,196 2,162,196 2,162,196 - 3.41% 158,496,384 0 Evergreen Marine Corporation Colon Container Terminal S.A. 6 31,699,277 2,162,196 2,162,196 2,162,196 - 3.41% 158,496,384 (1)The Company is '0'. (1)The Company is '0'.

(2)The subsidiaries are numbered in order starting from '1'. (2)The subsidiaries are numbered in order starting from '1'.

Evergreen Marine Corporation Balsam Investment (Netherlands) N.V. 6 31,699,277 1,234,431 873,195 582,130 - 1.38% 158,496,384 Evergreen Marine Corporation Balsam Investment (Netherlands) N.V. 6 31,699,277 1,234,431 873,195 582,130 - 1.38% 158,496,384 Evergreen Marine Corporation Balsam Investment (Netherlands) N.V. 6 31,699,277 1,234,431 873,195 582,130 - 1.38% 158,496,384 Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to: Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

0 (1) Having business relationship. (1) Having business relationship.

(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary. (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

(4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary. (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

(5) Mutual guarantee of the trade as required by the construction contract. (5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership. (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.

The calculation is as follows: The calculation is as follows:

The Company:63,398,553*250% = 158,496,384 The Company:63,398,553*250% = 158,496,384

Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth). Limit on endorsement or guarantees provided by the Company for a single entity is \$31,699,277 (Amounting to 50% of its net worth).

When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107. When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to \$126,797,107.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period. Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees. Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company. Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, and provision to the party in Mainland China. Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Evergreen Marine Corporation (Taiwan) Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) (Except as otherwise indicated)Evergreen Marine Corporation (Taiwan) Ltd. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2017 Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Table 3 Expressed in thousands of shares/thousands Table 3 Expressed in thousands of shares/thousands Table 3 Expressed in thousands of shares/thousands Table 3 Expressed in thousands of shares/thousands

				As of December 31, 2017
Marketable securities (Note 1) Securities held by Relationship with the Securities held by	Marketable securities (Note 1) securities issuer (Note 2) Relationship with the Relationship with the Marketable securities (Note 1) Genearl ledger account	As of December 31, 2017 Genearl ledger account Genearl ledger account	Book value (Note 3) Number of shares	Fair value Ownership (%) Relationship with the	As of December 31, 2017 Footnote (Note 4) Footnote (Note 4) Genearl ledger account
securities issuer (Note 2) Evergreen Marine Corporation	securities issuer (Note 2) Number of shares Stock:	Book value (Note 3)	Ownership (%)	Book value (Note 3) Fair value securities issuer (Note 2) Number of shares	Ownership (%)
Evergreen Marine Corporation	Power World Fund Inc.	Available-for-sale financial asset - non-current	\$ 770	7,696 \$ 5.68 7,696
	Stock: Taiwan HSR Consortium	Ƀ	13,356	313,866 0.24 313,866
Power World Fund Inc.	770 Available-for-sale financial asset - non-current Power World Fund Inc. Linden Technologies, Inc.	Available-for-sale financial asset - non-current 7,696 Ƀ \$	5.68 50	Available-for-sale financial asset - non-current 11,081 7,696 1.44 \$ 770 11,081 \$	7,696
	TopLogis, Inc.	Ƀ	2,464	14,750 17.48 14,750
Taiwan HSR Consortium	13,356 Other related party Taiwan HSR Consortium Ƀ Ever Accord Construction Corp.	313,866 Ƀ Ƀ	0.24 9,317	119,427 313,866 17.50 13,356 119,427	313,866 Ƀ
	Central Reinsurance Corp.	Ƀ	47,492	831,108 8.45 831,108
Linden Technologies, Inc.	50 Linden Technologies, Inc. Ƀ Financial bonds:	11,081 Ƀ	1.44	11,081 50	11,081 Ƀ
	2,464 Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 TopLogis, Inc. Ƀ	Held-to-maturity financial asset - non-current 14,750 Ƀ	17.48 -	50,000 14,750 - 2,464 50,000	14,750 Ƀ
	Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017	Ƀ	-	50,000 - 50,000
Other related party Peony Investment S.A. Ever Accord Construction Corp.	9,317 Other related party Ever Accord Construction Corp. Ƀ Hutchison Inland Container Depots Ltd.	Available-for-sale financial asset - non-current 119,427 Ƀ	17.50 USD 0.75	199 USD 119,427 4.60 9,317 Other related party 199	119,427 Ƀ
Central Reinsurance Corp.	47,492 Central Reinsurance Corp. Ƀ South Asia Gateway Terminals (Private) Ltd.	831,108 Ƀ Ƀ	8.45 USD 18,942	32,943 USD 831,108 5.00 47,492 32,943	831,108 Ƀ
Evergreen Shipping Agency (Deutschland) GmbH	Financial bonds: Zoll Pool Hafen Hamburg AG	Ƀ	EUR 10	10 EUR 2.86 10

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IAS39, 'Financial instruments: recognition and measurement'.

Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Held-to-maturity financial asset - non-current - 50,000 - 50,000 Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Held-to-maturity financial asset - non-current - 50,000 - 50,000

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value. Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015 Held-to-maturity financial asset - non-current - 50,000 - 50,000

Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Ƀ - 50,000 - 50,000 Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions. Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Ƀ - 50,000 - 50,000 Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017 Ƀ - 50,000 - 50,000

Hutchison Inland Container Depots Ltd. Available-for-sale financial asset - non-current 0.75 USD 199 4.60 USD 199

Hutchison Inland Container Depots Ltd. Available-for-sale financial asset - non-current 0.75 USD 199 4.60 USD 199

South Asia Gateway Terminals (Private) Ltd. Ƀ 18,942 USD 32,943 5.00 USD 32,943

GmbH Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10

South Asia Gateway Terminals (Private) Ltd. Ƀ 18,942 USD 32,943 5.00 USD 32,943

GmbH Zoll Pool Hafen Hamburg AG Ƀ 10 EUR 10 2.86 EUR 10

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 4

Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017

Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD

Marketable securities Investor	Marketable securities Marketable securities	General ledger	Counterparty	Balance as at January 1, Relationship with the 2017	Balance as at January 1, Balance as at January 1, 2017 2017	Addition (Note 3)	Addition (Note 3) Balance as at January 1, 2017	Addition (Note 3)	Addition (Note 3)	Disposal (Note 3) Disposal (Note 3)	Disposal (Note 3)		Balance as at December 31, Balance as at December 31, 2017 2017 Disposal (Note 3)	Balance as at December 31,
General ledger account ȐNote 1ȑ Investor	General ledger Counterparty (Note 2) account ȐNote 1ȑ ȐNote 1ȑ	Relationship with the investor (Note 2) General ledger Counterparty (Note 2) account account	(Note 2)	Amount investor (Note 2) Relationship with the investor (Note 2) Counterparty Number of (Note 2)	Relationship with the investor (Note 2) Number of Number of shares	Number of Amount Amount Number of	Amount Number of Number of shares Amount	Amount Number of Amount	Selling price Number of shares Number of	Book value Selling price Amount Number of	Book value Number of Selling price	Selling price Gain (loss) on Book value disposal Gain (loss) on	Book value Gain (loss) on Number of Number of shares	Gain (loss) on Number of Amount Amount
Beneficiary Certificates: Corporation Evergreen Evergreen	Beneficiary Certificates: Beneficiary Certificates:			shares	shares	shares shares	shares	shares	shares shares		shares	disposal	disposal shares	disposal shares
Financial assets at fair Market FSITC Taiwan Money Corporation	Financial assets at fair FSITC Taiwan Money FSITC Taiwan Money	Financial assets at fair value through profit or Financial assets at fair loss - current			-	- \$	3,958	700,000 \$	3,958	700,094 \$	700,000 \$	94 \$	-	- \$
value through profit or loss - current Market Fund Market	value through profit or loss - current Taishin Ta-Chong Money	value through profit or loss - current ˥		\$ -	- - -	\$ - - 3,958 \$	3,958 28,405 700,000 \$ -	700,000 3,958 400,000 \$ -	700,094 28,405 \$ 3,958 \$	400,051 \$ 700,000 \$ 3,958	400,000 \$ \$ 3,958 700,094 700,000	700,094 51 700,000 94 \$	\$ - - \$ \$	- - \$ 700,000 94
Market Fund Taishin Ta-Chong Money ˥ Fund Market Fund	Taishin Ta-Chong Money ˥ Taishin 1699 Money Market	˥ Ƀ		-	- - -	- - 28,405	28,405 44,742 400,000 -	28,405 600,000 -	44,742 28,405 400,000	600,058 400,000 28,405 400,051	600,000 28,405 400,051 400,000	400,051 400,000 58 51	- -	- - 400,000 51
Taishin 1699 Money Market Fund Ƀ Taishin 1699 Money Market	Taishin 1699 Money Market Ƀ Capital Money Market Fund	Ƀ ˥		-	- - -	- - 44,742	44,742 62,514 600,000 -	44,742 1,000,000 -	62,514 44,742 600,000	1,000,106 600,000 44,742 600,058	1,000,000 44,742 600,058 600,000	600,058 600,000 106 58	- -	- - 600,000 58
Capital Money Market Fund ˥ Fund Capital Money Market Fund	Capital Money Market Fund ˥ TCB Taiwan Money Market	˥ ˥		-	- - -	- - 62,514	62,514 49,625 1,000,000 -	1,000,000 62,514 500,000 -	49,625 62,514	500,249 1,000,000 62,514 1,000,106	500,000 62,514 1,000,106 1,000,000	1,000,106 1,000,000 249 106	- -	- - 1,000,000 106
TCB Taiwan Money Market Stock: TCB Taiwan Money Market	TCB Taiwan Money Market											249		249
Stock: Fund ˥	˥ Taiwan HSR Consortium	˥ Available-for-sale financial asset - non-current		-	50,694 - -	- 532,287 49,625	49,625 - 500,000 -	49,625 - -	37,338 49,625 500,000	915,160 500,000 49,625 500,249	392,049 49,625 500,249 500,000	500,249 500,000 523,111	13,356 -	- 140,238 500,000
Available-for-sale Kong) Ltd.	Available-for-sale Evergreen Marine (Hong	Available-for-sale accounted for using equity method Investments	International Evergreen S.A.	the Parent Company Major shareholder of	-	-	6,320	6,287,883	-	-	-	-	6,320	6,287,883

non-current Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. non-current non-current

Evergreen Marine (Hong Investments accounted for using Evergreen Major shareholder of Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Evergreen Marine (Hong Investments Evergreen International Major shareholder of Evergreen Marine (Hong Investments accounted for using Evergreen Major shareholder of

Kong) Ltd. equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883 Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT\$300 million or 20% of paid-in capital or more. equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883 Kong) Ltd. equity method S.A. the Parent Company - - 6,320 6,287,883 - - - - 6,320 6,287,883

Note 4: Paid-in capital referred to herein is the paid-in capital of parent company.

Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Evergreen Marine Corporation (Taiwan) Ltd.

Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more

For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2017

Expressed in thousands Expressed in thousands

Relationship with the counterparty Relationship with the
Amount counterparty
Subsidiary
Indirect subsidiary of the \$
Indirect subsidiary of the Subsidiary
Associates
Taiwan Terminal Services Co., Ltd.
Associates
Other related parties
Other related parties Evergreen International Storage and Purchases
Other related parties Evergreen Shipping Agency (America)
Other related parties
Indirect subsidiary of the Other related parties
Other related parties
Evergreen Marine (Singapore) Pte. Ltd. Other related parties
Indirect subsidiary of the Subsidiary Purchases

Sales718,114 2% 30~60 days - - 20,444 1%

Purchases 159,824 1% 30~60 days - - - -

Sales997,565 3% 30~60 days - - 25,936 1%

Table 5

Table 5

Purchaser/Seller	Counterparty	Relationship with the counterparty			Transaction				Differences in transaction terms compared to third party transactions (Note)		Notes/accounts receivable (payable)	Footnote (Note 1)
			Purchases/ sales	Amount		total purchases/ Percentage of sales	Credit term		Unit price Credit term	Balance	receivable (payable) Percentage of total notes/accounts
Taiwan Terminal Services Co.,Ltd.	Evergreen Marine Corp.	The parent	Sales	\$	835,846	97%	30~60 days	- \$	-	84,451 \$	98%
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	Sales	USD	37,931	9%	30 days	-	-		- -
	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent	Company's major shareholder	Sales	USD	75,754	19%	30 days	-		585 - USD	3%
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD	38,821	10%	30 days	-		274 - USD	1%
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD	125,127	31%	30 days	-	-		- -
	Italia Marittima S.p.A.	Investee of Balsam	Sales	USD	17,327	4%	30 days	-		192 - USD	1%
	Whitney Equipment LLC.	Investee of the Parent Company	Purchases	USD	7,479	2%	30 days	-	-		- -
	Evergreen Shipping Agency (America) Corporation	Company's major shareholder Investee of the Parent	Purchases	USD	7,987	2%	30 days	-	-		- -
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine Corp.	The parent	Sales	USD	16,349	13%	30~60 days	-	-		- -
Greencompass Marine S.A.	Evergreen Marine (UK) Limited	Indirect subsidiary of the	Sales	USD	52,927	2%	30~60 days	-		2,264 - USD	1%
		Parent Company	Purchases	USD	24,390	1%	30~60 days	-		158) - (USD	-
	Evergreen Marine Corp.	The parent	Sales	USD	42,028	2%	30~60 days	-	-		- -
			Purchases	USD	39,758	2%	30~60 days	-		656) - (USD	-
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD	38,821	2%	30 days	-		274) - (USD	-
	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent		Sales	USD	78,652	4%	30~60 days	-		1,218 - USD	1%
		Company's major shareholder	Purchases	USD	20,735	1%	30~60 days	-		1) - (USD	-
			Sales	USD	36,390	2%	30~60 days	-	-		- -
	Italia Marittima S.p.A.	Investee of Balsam	Purchases	USD	34,034	2%	30~60 days	-	-		- -

Footnote (Note 1)
Notes/accounts receivable (payable)	receivable (payable) Percentage of total notes/accounts	-	-	-	-	-	-	1%	-	-	-	1%	-	-	-	-	-	-	-	100%
	Balance	-	-	-	-	774) - (USD	158 - USD	2,264) - (USD	-	688) - (USD	-	2,774 - USD	372) - (USD	446 - USD	415) - (USD	-	276) - (USD	-	-	43,907 - MYR
		-	-	-	-				-		-					-		-	-
Differences in transaction terms compared to third party transactions (Note)	Unit price Credit term	- \$	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	Credit term	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	30~60 days	45 days
Transaction	total purchases/ Percentage of sales	1%	1%	0%	0%	0%	1%	3%	0%	1%	7%	1%	2%	1%	1%	2%	1%	0%	0%	100%
	Amount	14,116	10,500	5,435	5,468	3,848	24,390	52,927	6,823	23,615	125,127	16,256	39,010	22,149	10,149	29,473	10,010	4,187	6,471	234,462
		USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	USD	MYR
	Purchases/ sales	Purchases	Purchases	Purchases	Purchases	Purchases	Sales	Purchases	Sales	Purchases	Purchases	Sales	Purchases	Sales	Purchases	Purchases	Purchases	Purchases	Purchases	Sales
Relationship with the counterparty		Company's major shareholder Investee of the Parent	Company's major shareholder Investee of the Parent	Company's major shareholder Investee of the Parent	Indirect subsidiary of the Parent Company	Company's major shareholder	Indirect subsidiary of the	Parent Company	The Parent		Subsidiary of the Parent Company	Investee of Balsam			Company's major shareholder	Company's major shareholder Investee of the Parent	Company's major shareholder Investee of the Parent	Company's major shareholder	Indirect subsidiary of the Parent Company	Investee of EITC
Counterparty		Evergreen Shipping Agency (America) Corporation	Evergreen International Corp.	Evergreen Shipping Agency (Japan)	Evergreen Shipping Agency (Europe) GmbH	Evergreen Insurance Company Limited Investee of the Parent		Greencompass Marine S.A.		Evergreen Marine Corp.	Everport Terminal Services Inc.		Italia Marittima S.p.A.	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent		Evergreen Shipping Agency (America) Corporation	Evergreen International Corp.	Evergreen Insurance Company Limited Investee of the Parent	Evergreen Shipping Agency (Europe) GmbH	Gaining Enterprise S.A.
Purchaser/Seller		Greencompass Marine S.A.					Evergreen Marine (UK) Limited													Evergreen Heavy Industrial Corp.(Malaysia)

Footnote (Note 1)
Notes/accounts receivable (payable)	receivable (payable) Percentage of total notes/accounts	-	2%	-	2%	-
	Balance	-	644 - EUR	-	918 - EUR	-
Differences in transaction terms compared to third (Note)	Unit price Credit term	-		-		-
party transactions		- \$	-	-	-	-
	Credit term	30~60 days	30~60 days	30~60 days	30~60 days	30 days
Transaction	total purchases/ Percentage of sales	21%	20%	25%	25%	51%
	Amount	4,840	4,469	5,728	5,573	7,479
	Purchases/ sales	EUR Sales	EUR Sales	EUR Sales	EUR Sales	USD Sales
Relationship with the counterparty		Indirect subsidiary of the Parent Company	Investee of Balsam	Indirect subsidiary of the Parent Company	Company's major shareholder	Subsidiary of the Parent Company
Counterparty		Greencompass Marine S.A.	Italia Marittima S.p.A.	Evergreen Marine (UK) Limited	Evergreen Marine (Singapore) Pte. Ltd. Investee of the Parent	Everport Terminal Services Inc.
Purchaser/Seller		Evergreen Shipping Agency (Europe) GmbH				Whitney Equipment LLC.

Note : If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the 'Unit price' and 'Credit term' columns.

Note 1: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company.

274

Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Table 6 Expressed in thousands Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017 Table 6Expressed in thousands Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more December 31, 2017

Allowance for Allowance for Allowance for	doubtful accounts doubtful accounts doubtful accounts doubtful accounts	\$ - - 190,636 \$	- - - -	- - 43,907	- - - -
Amount collected	balance sheet date subsequent to the	190,636 \$ \$	-	43,907 MYR	-
Amount collected Amount collected Amount collected	balance sheet date subsequent to the balance sheet date subsequent to the balance sheet date subsequent to the Action taken	190,636 \$ 190,636 - \$ - \$	- - -	43,907 43,907 MYR - MYR -	- - -
Overdue receivables Overdue receivables	Action taken Action taken Action taken Amount	\$ - - - -	- - - -	MYR - - - -	- - - -
Overdue receivables Overdue receivables	Amount Amount Turnover rate Amount	- \$ - - \$ \$ -	- - - -	- - - -	- - - -
	Turnover rate Turnover rate	- \$ 271,096 -	- 17,754 -	- 43,907 -	- 7,254 -
Balance as at Balance as at	December 31, 2017 Turnover rate (Note) December 31, 2017 (Note)	271,096 271,096 \$	17,754 17,754 USD	43,907 43,907 MYR	7,254 7,254 USD
Balance as at Balance as at	December 31, 2017 (Note) December 31, 2017 (Note)	271,096 \$ \$	17,754 USD USD	43,907 MYR MYR	7,254 USD USD
Relationship with the Relationship with the Relationship with the Relationship with the	counterparty counterparty counterparty counterparty	Company's major Investee of the shareholder Company's major Company's major \$ Investee of the Investee of the shareholder shareholder	USD Subsidiary Subsidiary Subsidiary	Investee of the Parent Company's major Investee of the Parent Investee of the Parent MYR Company's major Company's major shareholder	accounted for using Investee of Clove USD shareholder accounted for using accounted for using Investee of Clove Investee of Clove equity method shareholder
	Counterparty Counterparty Counterparty Counterparty	Company's major Investee of the shareholder Evergreen International Corporation Evergreen International Corporation Evergreen International Corporation Evergreen International Corporation	Subsidiary Clove Holding Ltd. Clove Holding Ltd. Clove Holding Ltd.	Investee of the Parent Company's major Gaining Enterprise S.A. Gaining Enterprise S.A. Gaining Enterprise S.A.	accounted for using Investee of Clove shareholder Clove Container Terminal S.A. Clove Container Terminal S.A. Clove Container Terminal S.A. Clove Container Terminal S.A.
	Creditor Creditor Creditor Creditor	Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp. Evergreen Marine Corp.	Clove Holding Ltd. Peony Investment S.A. Peony Investment S.A. Peony Investment S.A. Peony Investment S.A.	Gaining Enterprise S.A. Evergreen Heavy Industrial Corp. Evergreen Heavy Industrial Corp. Evergreen Heavy Industrial Corp. (Malaysia) Berhad (Malaysia) Berhad Evergreen Heavy Industrial Corp. (Malaysia) Berhad (Malaysia) Berhad	Clove Holding Ltd. Clove Holding Ltd. Clove Holding Ltd. Clove Holding Ltd.

Note : Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties, etc. Note 1: Paid-in capital referred to herein is the paid-in capital of parent company.

4 Financial Statements Allowance for doubtful accounts

Table 7

Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the year ended December 31, 2017 Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods Table 7 Expressed in thousands of NTD Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods

Table 7 Expressed in thousands of NTD Table 7 Expressed in thousands of NTD

Company name Number (Note 1) Number (Note 1) 0
	Company name Company name Counterparty	Counterparty Relationship (Note 2) Counterparty	Relationship (Note 2) Relationship (Note 2) Counterparty General ledger account	General ledger account General ledger account Amount	Transaction terms Amount Relationship (Note 2)	General ledger account Transaction terms Amount	Amount Transaction terms Percentage of consolidated total revenues or total assets (Note 3) Percentage of consolidated total operating operating
	Evergreen Marine Corporation	Taiwan Terminal Services Co.,Ltd.	1	Operating cost	835,846 \$	Note 4	0.56 revenues or total assets (Note 3)
0	Evergreen Marine Corporation	Greencompass Marine S.A.	1	Shipowner's account - credit	362,323	"	0.18
Taiwan Terminal Services Co.,Ltd. 0 0 Evergreen Marine Corporation	Taiwan Terminal Services Co.,Ltd. Evergreen Marine Corporation Evergreen Marine Corporation	Taiwan Terminal Services Co.,Ltd. Greencompass Marine S.A. 1	1 1 Operating cost	Operating cost 835,846 Operating revenue \$	Note 4 \$ 1,209,020 1	835,846 Operating cost "	0.56 0.80 Note 4 \$
Greencompass Marine S.A. 0 0 Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Greencompass Marine S.A. 1	Shipowner's account - credit 1 1	Shipowner's account - credit 362,323 Operating cost	1,278,055 " 1	Shipowner's account - credit 362,323 "	0.85 0.18 "
0	Evergreen Marine Corporation	Evergreen Marine (UK) Limited	1	Shipowner's account - debit	595,393	"	0.30
Greencompass Marine S.A. 0 0 Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine (UK) Limited 1	1 Operating revenue 1	Operating revenue 1,209,020 Operating revenue	718,114 " 1	Operating revenue 1,209,020 "	0.80 0.48 "
Greencompass Marine S.A. 0 0 Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine Corporation Evergreen Marine Corporation	Greencompass Marine S.A. Evergreen Marine (UK) Limited 1	1 1 Operating cost	Operating cost 1,278,055 Operating cost	207,487 " 1	1,278,055 Operating cost "	0.14 0.85 "
Evergreen Marine (UK) Limited 0 0 Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine Corporation Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Limited 1	Shipowner's account - debit 1 1	Shipowner's account - debit 595,393 Shipowner's account - credit	301,631 " 1	Shipowner's account - debit 595,393 "	0.15 0.30 "
0	Evergreen Marine Corporation	Everport Terminal Services Inc.	1	Operating cost	1,153,476	"	0.77
Evergreen Marine (UK) Limited 0 1 Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine Corporation Greencompass Marine S.A.	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited 1	Operating revenue 1 3	Operating revenue 718,114 Operating revenue	1,609,487 " 1	Operating revenue 718,114 "	1.07 0.48 "
Evergreen Marine (UK) Limited 0 1 Evergreen Marine Corporation	Evergreen Marine (UK) Limited Evergreen Marine Corporation Greencompass Marine S.A.	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited 1	1 3 Operating cost	Operating cost 207,487 Operating cost	741,678 " 1	207,487 Operating cost "	0.49 0.14 "
0 1	Greencompass Marine S.A.	Evergreen Marine (Hong Kong) Limited 1	1 3	Shipowner's account - credit	455,006 " 1	"	0.22 0.15 "
1 Evergreen Marine Corporation	Evergreen Marine Corporation Evergreen Marine (Hong Kong) Limited Greencompass Marine S.A.	Evergreen Marine (Hong Kong) Limited Everport Terminal Services Inc. Evergreen Marine (Hong Kong) Limited	Shipowner's account - credit 3	Shipowner's account - credit 301,631 Operating cost	1,180,536	Shipowner's account - credit 301,631 "	0.78
Everport Terminal Services Inc. 0 1 Evergreen Marine Corporation	Everport Terminal Services Inc. Evergreen Marine Corporation Greencompass Marine S.A.	Everport Terminal Services Inc. Evergreen Shipping Agency (Europe) GmbH 1	1 3 Operating cost	Operating cost 1,153,476 Operating cost	170,248 " 1	1,153,476 Operating cost "	0.77 0.11 "
Evergreen Marine (UK) Limited 1 2	Evergreen Marine (UK) Limited Greencompass Marine S.A. Evergreen Marine (UK) Limited	Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3	3 Operating revenue 3	Operating revenue 1,609,487 Operating cost	3,805,088 " 3	Operating revenue 1,609,487 "	2.53 1.07 "
2	Evergreen Marine (UK) Limited	Evergreen Shipping Agency (Europe) GmbH	3	Operating cost	199,369	"	0.13
Evergreen Marine (UK) Limited 1 3	Evergreen Marine (UK) Limited Greencompass Marine S.A. Whitney Equipment LLC.	Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3	3 3 Operating cost	Operating cost 741,678 Operating revenue	270,240 " 3	741,678 Operating cost "	0.49 0.18 "
1 4	Greencompass Marine S.A. Evergreen Marine (Hong Kong) Limited Peony Investment S.A.	Evergreen Marine (Hong Kong) Limited Evergreen Marine (Hong Kong) Limited Clove Holding Ltd. 3	Shipowner's account - credit 3 3	Shipowner's account - credit 455,006 Other receivables	527,297 " 3	Shipowner's account - credit 455,006 "	0.22 0.26 "
Everport Terminal Services Inc. 1 5	Everport Terminal Services Inc. Evergreen Shipping Agency (Europe) GmbH Greencompass Marine S.A.	Everport Terminal Services Inc. Evergreen Marine (UK) Limited 3	3 3 Operating cost	Operating cost 1,180,536 Shipowner's account - debit	145,969 " 3	1,180,536 Operating cost "	0.07 0.78 "

Greencompass Marine S.A. Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 170,248 " 0.11 Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: Greencompass Marine S.A. Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 170,248 " 0.11 Greencompass Marine S.A. Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 170,248 " 0.11

(1) Parent company is '0'.

Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3 Operating cost 3,805,088 " 2.53 (2) The subsidiaries are numbered in order starting from '1'. Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3 Operating cost 3,805,088 " 2.53 Evergreen Marine (UK) Limited Everport Terminal Services Inc. 3 Operating cost 3,805,088 " 2.53

2 Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 199,369 " 0.13 Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; 2 Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 199,369 " 0.13 2 Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH 3 Operating cost 199,369 " 0.13

Whitney Equipment LLC. Everport Terminal Services Inc. 3 Operating revenue 270,240 " 0.18 for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): Whitney Equipment LLC. Everport Terminal Services Inc. 3 Operating revenue 270,240 " 0.18 Whitney Equipment LLC. Everport Terminal Services Inc. 3 Operating revenue 270,240 " 0.18

(1) Parent company to subsidiary. (2) Subsidiary to parent company

Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 527,297 " 0.26 (3) Subsidiary to subsidiary Peony Investment S.A. Clove Holding Ltd. 3 Other receivables 527,297 " 0.26 Peony Investment S.A. Clove Holding Ltd. 3 Other receivables527,297 " 0.26

Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07 Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07 Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited 3 Shipowner's account - debit 145,969 " 0.07

accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: Note 4: Terms are approximately the same as for general transactions. Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

Note 5:The Company may decide whether or not to disclose transaction details in this table based on the Materiality Principle. (1) Parent company is '0'. subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;

subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;

Evergreen Marine Corporation (Taiwan) Ltd.

Evergreen Marine Corporation (Taiwan) Ltd.

Information on investees Evergreen Marine Corporation (Taiwan) Ltd.

For the year ended December 31, 2017 Information on investees

Table 8 Table 8									Expressed in thousands of shares/thousands of NTD Expressed in thousands of shares/thousands of NTD
		Initial investment amount	Shares held as of December 31, 2017 Initial investment amount Initial investment amount			Shares held as of December 31, 2017	Initial investment amount	Shares held as of December 31, 2017	Shares held as of December 31, 2017 Investment income (loss)
Main business activities Investor Investee (Note and Note 1) Investor	Investee (Note and Note 1) Balance as of Investee (Note and Note 1) Location	Number of Main business activities Location Balance as of Main business activities Location	Main business activities Ownership December 31, 2017 Balance as of Balance as of	Book value Balance as of December 31, 2016 Balance as of	Number of shares	Balance as of Number of Ownership (%)	Net profit (loss) of the investee For the year ended December Ownership 31, 2017 (Note 1(2)) Book value	Net profit (loss) of the investee For the year ended December 31, 2017 (Note 1(2)) Book value Balance as of	Net profit (loss) of the investee For the year ended December 31, 2017 (Note 1(2)) Ownership For the year ended December recognised by the Company 31, 2017 (Note 1(3)) For the year ended December recognised by the Company Investment income (loss) Number of	For the year ended December recognised by the Company Investment income (loss) Book value Footnote Footnote
Evergreen Marine Corp.	December 31, 2017 Peony Investment S.A.	shares December 31, 2016 Investment activities Republic of Panama	\$ (%) 14,152,288 December 31, 2017 \$	December 31, 2016 14,152,288	4,765	December 31, 2017 100.00 shares	30,152,551 (%) \$	4,817,092 December 31, 2016 \$	4,822,278 (%) 31, 2017 (Note 1(3)) shares \$	31, 2017 (Note 1(3)) Subsidiary of the Company
Evergreen Marine Corp. Investment activities Peony Investment S.A.	Peony Investment S.A. Taiwan Terminal Services Co., Ltd. Republic of \$	Loading and discharging operations of \$ Republic of 14,152,288 container yards Investment activities \$ Taiwan 14,152,288	100.00 \$ Investment activities 55,000 14,152,288 4,765	14,152,288 55,000 \$	\$ 5,500 \$ 30,152,551	14,152,288 4,765 55.00	100.00 39,912 \$	\$ 5,553 30,152,551 14,152,288 \$ \$ 4,817,092	100.00 3,054 4,822,278 4,765	30,152,551 Subsidiary of the \$ Ƀ 4,817,092 \$
	Everport Terminal Services Inc. Panama	Panama Terminal services U.S.A	2,970	2,970	1	100.00	568,156	415,389	415,389	Company Ƀ
Loading and discharging operations of Taiwan Terminal Services Co., Ltd.	Taiwan Terminal Services Co., Ltd. Evergreen Marine (Hong Kong) Ltd. Taiwan	Taiwan Loading and discharging operations of 55,000 Hong Kong Marine transportation 55,000	Loading and discharging operations of 55.00 6,217,800 55,000 5,500	-	6,320 39,912 55,000	55,000 5,500 79.00	55.00 6,287,883	862,722 39,912 55,000 5,553	55.00 50,870 3,054 5,500	39,912 Ƀ 5,553
Everport Terminal Services Inc. Terminal services container yards	Everport Terminal Services Inc. container yards Charng Yang Development Co.,Ltd. U.S.A	Development, rental, sale of residential U.S.A 2,970 and commercial buildings Terminal services Taiwan 2,970	100.00 320,000 Terminal services 2,970 container yards 1	320,000	58,542 568,156 2,970	1 40.00	100.00 537,532 2,970	172,458 568,156 2,970 415,389	100.00 415,389 1	568,156 68,983 Investee accounted for using equity method 415,389 Ƀ Ƀ
Evergreen Marine (Hong Kong) Ltd. Marine transportation	Evergreen Marine (Hong Kong) Ltd. Evergreen International Storage and Hong Kong Transport Corporation	Container transportation and gas Hong Kong - stations Marine transportation Taiwan 6,217,800	79.00 Marine transportation 4,753,514 6,217,800 6,320	4,753,514	424,063 6,287,883 -	6,217,800 6,320 39.74	79.00 8,452,437	883,121 6,287,883 - 862,722	79.00 353,789 50,870 6,320	6,287,883 Ƀ 862,722 Ƀ
Development, rental, sale of residential Charng Yang Development Co.,Ltd.	Charng Yang Development Co.,Ltd. Evergreen Security Corporation Taiwan	General security guards services Taiwan Development, rental, sale of residential 320,000 Taiwan 320,000	Development, rental, sale of residential 40.00 25,000 320,000 58,542	25,000	6,336 537,532 320,000	320,000 58,542 31.25	40.00 97,140	28,651 537,532 320,000 172,458	40.00 8,954 68,983 58,542	537,532 Investee accounted for Ƀ 172,458
and commercial buildings	EVA Airways Corporation	International passengers and cargo transportation and commercial buildings Taiwan	and commercial buildings 10,767,879	10,767,879	680,786	16.31	9,462,402	5,752,067	938,295	using equity method Ƀ
Container transportation and gas Evergreen International Storage and	Evergreen International Storage and Taipei Port Container Terminal Taiwan Corporation	Container distribution and cargo Taiwan Container transportation and gas stevedoring Taiwan	Container transportation and gas 39.74 1,094,073	1,094,073	109,378	21.03	39.74 977,049	45,516	39.74 9,574	Ƀ
Transport Corporation stations	Transport Corporation stations Evergreen Marine (Latin America), S.A.	4,753,514 Management consultancy Republic of Panama 4,753,514	3,119 4,753,514 424,063 stations	4,753,514 3,119	105 8,452,437	4,753,514 424,063 17.50	4,364	1,494 8,452,437 4,753,514 883,121	262 353,789 424,063	8,452,437 Ƀ 883,121 Ƀ
General security guards services Evergreen Security Corporation	Evergreen Security Corporation VIP Greenport Joint Stock Company Taiwan	Taiwan 25,000 General security guards services Terminal services Vietnam 25,000	General security guards services 31.25 178,750 25,000 6,336	162,500	13,750 97,140 25,000	25,000 6,336 21.74	31.25 205,923	96,413 97,140 25,000 28,651	31.25 20,959 8,954 6,336	97,140 Ƀ 28,651 Ƀ
International passengers and cargo Peony Investment S.A. EVA Airways Corporation	EVA Airways Corporation Taiwan Clove Holding Ltd.	Investment holding company Taiwan 10,767,879 International passengers and cargo British Virgin Islands 10,767,879	International passengers and cargo 16.31 1,560,740 10,767,879 680,786	10,767,879 1,560,740	10 9,462,402	10,767,879 680,786 100.00	16.31 2,591,738	17,673 9,462,402 10,767,879 5,752,067	16.31 17,673 938,295 680,786	9,462,402 Indirect subsidiary of the Company 5,752,067 Ƀ
transportation	transportation Evergreen Shipping Agency (Eurpoe) GmbH	Shipping agency Germany	246,989 transportation	246,989	-	100.00	273,947	17,255	17,255	Ƀ
Container distribution and cargo Taipei Port Container Terminal stevedoring Corporation	Taipei Port Container Terminal stevedoring Evergreen Shipping Agency (Korea) Corporation Taiwan Corporation	Taiwan 1,094,073 Container distribution and cargo South Korea Shipping agency 1,094,073	Container distribution and cargo 21.03 72,053 1,094,073 stevedoring 109,378	1,094,073 72,053	121 977,049	1,094,073 109,378 100.00	21.03 64,326	20,095 977,049 1,094,073 45,516	21.03 20,095 9,574 109,378	977,049 Ƀ 45,516 Ƀ
Evergreen Marine (Latin America), S.A. Management consultancy	Evergreen Marine (Latin America), S.A. Evergreen Shipping Agency Republic of (Netherlands) B.V.	Republic of 3,119 Netherlands Shipping agency Management consultancy 3,119	Management consultancy 17.50 - 3,119 105	118,119	0.047 4,364 3,119	105 100.00	17.50 ( - 3,119	2,426) 4,364 3,119 1,494	17.50 2,426) 262 105 (	4,364 Ƀ 1,494 Ƀ
	Evergreen Shipping Agency (Poland) Panama SP. ZO. O	Panama Shipping agency Poland	19,662	19,662	2	100.00	10,842	1,080	1,080	Ƀ
VIP Greenport Joint Stock Company Terminal services	VIP Greenport Joint Stock Company Greencompass Marine S.A. Vietnam	Vietnam 162,500 Marine transportation Republic of Terminal services Panama 178,750	21.74 10,499,127 Terminal services 178,750 13,750	10,499,127	3,535 205,923 162,500	178,750 13,750 100.00	21.74 17,695,428	3,806,113 205,923 162,500 96,413	21.74 3,806,113 20,959 13,750	205,923 Ƀ 96,413 Ƀ
	Evergreen Shipping Agency (India) Pvt. British Virgin Ltd.	British Virgin Shipping agency India	34,951	34,951	100	99.99	102,526	41,396	41,396	Indirect subsidiary of Ƀ
Investment holding company Peony Investment S.A. Clove Holding Ltd.	Clove Holding Ltd. Evergreen Argentina S.A. Islands	Islands 1,560,740 Investment holding company Leasing Argentina 1,560,740	Investment holding company 100.00 4,158 1,560,740 10	1,560,740 4,158	150 2,591,738	1,560,740 10 95.00	100.00 ( 1,522	4,943) 2,591,738 1,560,740 17,673	100.00 4,696) 17,673 10 (	2,591,738 the Company Ƀ 17,673

GmbH Germany Shipping agency 246,989 246,989 - 100.00 273,947 17,255 17,255 Ƀ

GmbH Germany Shipping agency 246,989 246,989 - 100.00 273,947 17,255 17,255 Ƀ

Corporation South Korea Shipping agency 72,053 72,053 121 100.00 64,326 20,095 20,095 Ƀ

(Netherlands) B.V. Netherlands Shipping agency - 118,119 0.047 100.00 - 2,426) ( 2,426) ( Ƀ

Corporation South Korea Shipping agency 72,053 72,053 121 100.00 64,326 20,095 20,095 Ƀ

(Netherlands) B.V. Netherlands Shipping agency - 118,119 0.047 100.00 - 2,426) ( 2,426) ( Ƀ

	Footnote	Indirect subsidiary of the Company	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Investee company of Peony accounted for using equity method	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Ƀ	Indirect subsidiary of the Company	Investee company of Peony accounted for using equity method
	For the year ended December recognised by the Company Investment income (loss) 31, 2017 (Note 1(3))	4,230 \$	82,704	292	18,969	1,180	56,398	32,187	678,126	55,481	32,423	20,373	44,102	68,227	61,873	62,301	29,527	682,910	83,291	47,142	4,473	3,188	653
	Net profit (loss) of the investee For the year ended December 31, 2017 (Note 1(2))	4,230 \$	87,029	1,680	22,465	1,685	102,541	58,522	1,329,659	82,193	63,574	39,947	86,474	124,049	126,272	127,144	59,055	1,393,694	277,637	96,209	14,909	253,161	862,722
	Book value	- \$	404,966	13,225	947,392	309,784	194,800	83,564	622,821	58,303	17,411	36,290	38,276	110,639	192,172	112,782	1,865,804	1,282,862	12,687	81,102	50,096	407,454	79,593
Shares held as of December 31, 2017	Ownership (%)	-	95.03	17.39	84.44	70.00	100.00	55.00	51.00	67.50	51.00	51.00	85.00	55.00	49.00	49.00	50.00	49.00	30.00	49.00	30.00	100.00	1.00
	Number of shares	-	17	2	42,120	4	6	0.55	765	0.675	-	765	650	5,500	-	0.441	460	0.451	1,500	-	1,500	500	80
	December 31, 2016 Balance as of	26,938	232,880	23,888	810,671	341,928	114,941	69,856	953,465	7,339	25,186	64,064	43,779	17,249	13,484	28,899	1,404,165	11,241,236	215,477	61,836	12,654	-	-
Initial investment amount	December 31, 2017 Balance as of	- \$	232,880	23,888	810,671	341,928	200,333	69,856	2,468,190	7,339	25,186	64,064	59,089	17,249	13,484	28,899	1,404,165	11,241,236	215,477	61,836	12,654	3,658	78,706
	Main business activities	Shipping agency	Loading and discharging operations of container yards and inland transportation	Container repair, cleaning and inland transportation	Container manufacturing	Investment holding company	Shipping agency	Shipping agency	Marine transportation	Shipping agency	Shipping agency	Shipping agency	Shipping agency	South Africa Shipping agency	Shipping agency	Shipping agency	Investment holding company	Investment holding company	Investment holding company	Shipping agency	Renting estate and storehouse company	Shipping agency	Hong Kong Marine transportation
	Location	France	Indonesia	Indonesia	Malaysia	Curacao	Spain	Italy	U.K	Australia	Russia	Singapore	Thailand		Vietnam	Indonesia	Curaçao	Curaçao	Malaysia	United Arab Emirates	Malaysia	Malaysia
	Investee (Note and Note 1)	Evergreen Shipping Agency (France) S.A.S.	PT. Multi Bina Pura International	PT. Multi Bina Transport	Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Armand Investment (Netherlands) N.V.	Evergreen Shipping (Spain) S.L.	Evergreen Shipping Agency (Italy) S.p.A.	Evergreen Marine (UK) Limited	Evergreen Shipping Agency (Australia) Pty. Ltd.	Evergreen Shipping Agency (Russia) Ltd.	Evergreen Shipping Agency(Singapore) Pte. Ltd.	Evergreen Shipping Agency (Thailand) Co., Ltd.	Evergreen Agency (South Africa) (Pty) Ltd.	Evergreen Shipping Agency (Vietnam) Corp.	PT. Evergreen Shipping Agency Indonesia	Luanta Investment (Netherlands) N.V.	Balsam Investment (Netherlands) N.V.	Green Peninsula Agencies SDN. BHD.	Evergreen Shipping Agency Co. (U.A.E.) LLC	Greenpen Properties Sdn. Bhd.	Evergreen Marine Co.(Malaysia) SDN. BHD.	Evergreen Marine (Hong Kong) Ltd.
	Investor	Peony Investment S.A.

					Initial investment amount		Shares held as of December 31, 2017
Investor	Investee (Note and Note 1)	Location	Main business activities	December 31, 2017 Balance as of	December 31, 2016 Balance as of	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee For the year ended December 31, 2017 (Note 1(2))	For the year ended December recognised by the Company Investment income (loss) 31, 2017 (Note 1(3))	Footnote
Armand Investment (Netherlands ) N.V.	Armand Estate B.V.		Netherlands Investment holding company	503,006 \$	503,006	0.045	100.00	445,592 \$	2,414 \$	2,414 \$	Indirect subsidiary of the Company
Armand Estate B.V.	Taipei Port Container Terminal Corporation	Taiwan	Container distribution and cargo stevedoring	506,019	506,019	50,602	9.73	451,246	45,516	4,429	Investee company of Armand Estate B.V. accounted for using equity method
Clove Holding Ltd.	Colon Container Terminal, S.A.	Republic of Panama	Inland container storage and loading	678,953	678,953	22,860	40.00	2,532,187	36,178	14,472	Investee company of accounted for using Clove Holding Ltd. equity method
	Island Equipment LLC.	U.S.A	Investment holding company	4,277	4,277	-	36.00	163,841	24,479	8,812	Indirect subsidiary of the Company
Island Equipment LLC	Whitney Equipment LLC.	U.S.A	Equipment leasing company	5,940	5,940	-	100.00	173,294	28,598	28,598	Ƀ
	Hemlock Equipment LLC.	U.S.A	Equipment leasing company	5,940	5,940	-	100.00	309,839	21,803	21,803	Ƀ
Evergreen Marine (UK) Limited	Island Equipment LLC.	U.S.A	Investment holding company	1,782	1,782	-	15.00	68,267	24,479	3,672	Ƀ
	Evergreen Shipping Agency (UK) Limited	U.K	Shipping agency	0.06	0.06	-	100.00	25,109	-	-	Ƀ
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	2,940	2,940	99	16.50	4,115	1,494	247	Investee company of accounted for using Evergreen Marine equity method (UK) Limited
	Evergreen Shipping Agency (Ireland) Ltd.	Ireland	Shipping agency	3,006	3,006	0.1	100.00	3,006	-	-	Indirect subsidiary of the Company
PT. Multi Bina Pura International	PT. Multi Bina Transport	Indonesia	Container repair cleaning and inland transportation	98,054	98,054	8	72.95	55,480	1,680	1,225	Ƀ
Agency (Europe) GmbH Evergreen Shipping	Evergreen Shipping Agency (Austria) GmbH	Austria	Shipping agency	-	647	-	-	-	330	330	Ƀ
	Evergreen Shipping Agency (Switzerland) S.A.		Switzerland Shipping agency	2,453	2,453	0.1	100.00	8,958	764	764	Ƀ

Note : If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding

company about the disclosure of related overseas investee information. Note 1: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1) The columns of 'Investee', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2017' should fill orderly in the Company's (public company's) information on investees and every directly or indirectly controlled investee's investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.

(2) The 'Net profit (loss) of the investee For the year ended December 31, 2017' column should fill in amount of net profit (loss) of the investee for this period.

(3) The'Investment income (loss) recognised by the Company For the year ended December 31, 2017' column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Table 9 Table 9

Evergreen Marine Corporation (Taiwan) Ltd.

Information on investments in Mainland China Evergreen Marine Corporation (Taiwan) Ltd.

For the year ended December 31, 2017 For the year ended December 31, 2017

Expressed in thousands of NTD Expressed in thousands of NTD

Investee in Mainland China	Main business activities	Mainland China/Amount remitted back Amount remitted from Taiwan to Paid-in capital	Investment method	remittance from Taiwan to Accumulated amount of	Mainland China/Amount remitted back Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December Amount remitted from Taiwan to 31, 2017	Accumulated amount Taiwan to Mainland of remittance from	Investment income Net income (loss) of the investee for the	Mainland China/Amount remitted back Amount remitted from Taiwan to Ownership held by the Company	the Company. For the (loss) recognised by Investment income	Book value of investments in	(Except as otherwise indicated) Investment income remitted back to Taiwan Accumulted amount of investment income	Footnote
Investee in Mainland China remittance from Taiwan to Accumulated amount of Main business activities	Paid-in capital	to Taiwan for the year ended December Main business activities Investment method 31, 2017	remittance from Taiwan to Accumulated amount of (Note 1)	Mainland China as of Accumulated amount Taiwan to Mainland of remittance from January 1, 2017 Paid-in capital	to Taiwan for the year ended December Remitted back to Taiwan Net income (loss) of 31, 2017 the investee for the Investment method Mainland China Remitted to	remittance from Taiwan to Accumulated amount of December 31, 2017 Ownership held by China as of the Company	the Company. For the (loss) recognised by Accumulated amount Taiwan to Mainland year ended December of remittance from 31, 2017	to Taiwan for the year ended December Net income (loss) of the investee for the 31, 2017 (direct of indirect) (%)	year ended December Book value of investments in 31, 2017 (Note 2(2)B)	remitted back to Taiwan Accumulted amount of Accumulated amount Taiwan to Mainland investment income of remittance from Mainland China as of Decemeber 31, 2017 Ownership held by the Company	Net income (loss) of the Company. For the (loss) recognised by as of December 31, 2017	the investee for the Footnote
Mainland China as of Ningbo Victory Container Co., Ltd. January 1, 2017	Mainland China Remitted to transportation, container discharging, repair and storage, loading, related activities Inland container	568,582 (Note 1) \$	Mainland China as of January 1, 2017 (2) Remitted back to Taiwan	212,700 December 31, 2017 China as of \$	Remitted back to Taiwan - year ended December \$ 31, 2017 - Mainland China (Note 1) Remitted to \$	Mainland China as of January 1, 2017 212,700 (direct of indirect) (%) \$	Mainland China Remitted to year ended December 31, 2017 (Note December 31, 2017 2(2)B) 11,309 China as of \$	year ended December 31, 2017 \$ 40.00	\$ Remitted back to Mainland China as of Decemeber 31, 2017 4,524 Taiwan	as of December 31, December 31, 2017 China as of \$ 2017 270,553 (direct of indirect) (%)	year ended December year ended December 31, 2017 (Note - 2(2)B)	31, 2017
Ningbo Victory Container Co., Ltd. 212,700 Qingdao Evergreen Container Storage \$ & Transportation Co., Ltd. transportation, container \$ storage, loading, Inland container	repair, cleaning and related transportation, storage, loading, discharging, Inland container 568,582 activities \$	transportation, container 193,358 storage, loading, Inland container \$ (2) -	\$ \$ (2) - \$	42,083 \$ 212,700 568,582 212,700	- \$ 11,309 \$ - - (2) \$	42,083 40.00 \$ -	212,700 204,390 \$ 212,700 \$	11,309 \$ 40.00 \$ - 4,524 \$	- 270,553 81,756	\$ 186,458 40.00 \$ \$	- \$ - 212,700	4,524
Kingtrans Intl. Logistics (Tianjin) Co., discharging, repair and related activities Inland container Ltd.	repair, cleaning and related transportation, storage, loading, discharging, Inland container activities	discharging, repair and 354,547 related activities Inland container	(2)	118,802	- -	118,802	44,214	40.00	17,686	186,091	-
Qingdao Evergreen Container Storage 42,083 & Transportation Co., Ltd. Management Consulting Co., Ltd. Ever Shine (Shanghai) Enterprise repair, cleaning and related transportation, storage, loading, discharging,	self-owned property leasing Management consultancy, 193,358	repair, cleaning and related transportation, storage, loading, discharging, 1,976,695 (2) -	(2) -	42,083 193,358 42,083	- 204,390 - 2,419,413 (2) -	2,419,413 40.00 -	42,083 22,062 42,083	204,390 80.00 - 81,756	- 186,458 1,441	3,733,685 40.00	- - 42,083	204,390 81,756
Kingtrans Intl. Logistics (Tianjin) Co., Management Consulting Co., Ltd. Ever Shine (Ningbo) Enterprise transportation, storage, Inland container	self-owned property leasing Management consultancy,	transportation, storage, 195,633 Inland container activities	(2)		- 267,658 -	( 267,658	1,131)	( 80.00	162)	155,365	-
Ever Shine (Shanghai) Enterprise 118,802 Company name repair, cleaning and related Management consultancy, loading, discharging, Ltd.	remittance from Taiwan to Accumulated amount of Mainland China as of December 31, 2017 354,547	repair, cleaning and related Management consultancy, loading, discharging, Investment amount Commission of the Economic Affairs approved by the Ministry of Investment (MOEA) (2) activities -	Mainland China Commission of imposed by the investments in Investment Ceiling on MOEA -	118,802 354,547 118,802	44,214 - (2)	40.00 -	118,802 118,802	44,214 - 17,686	- 186,091	40.00	- 118,802	17,686
Management Consulting Co., Ltd. Evergreen Marine Corp. self-owned property leasing	2,419,413 3,060,656 \$ 1,976,695 \$ -	self-owned property leasing 3,608,367 \$ (2)	38,039,132 -	2,419,413 1,976,695 -	22,062 2,419,413 (2)	80.00 -	2,419,413 -	22,062 2,419,413 1,441	- 3,733,685	80.00	- 2,419,413	1,441

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

Management consultancy, self-owned property leasing 195,633 (2) - 267,658 - 267,658 1,131) ( 80.00 162) ( 155,365 - (2) Through investing in an existing company, Peony Investment S.A., in the third area, which then invested in the investee in Mainland China. (3) Others self-owned property leasing 195,633 (2) - 267,658 - 267,658 1,131) ( 80.00 162) ( 155,365 - Ever Shine (Ningbo) Enterprise Management Consulting Co., Ltd. Management consultancy, self-owned property leasing 195,633 (2) - 267,658 - 267,658 1,131) ( 80.00 162) ( 155,365 -

Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2017' column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:

Ceiling on investments in A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C. Investment amount approved by the investments in

Accumulated amount of approved by the Investment Mainland China B. The financial statements that are audited and attested by R.O.C. parent company's CPA. Accumulated amount of

remittance from Taiwan to C. Others. Company name

Mainland China as of Ministry of Investment Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Mainland China as of