EMC - Interim / Quarterly Report 2020

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2020 AND 2019

-----------------------------------------------------------------------------------------------------------------------------------For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Evergreen Marine Corporation (Taiwan) Ltd. and subsidiaries (the “Group”) as at September 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Basis for Qualified Conclusion

As explained in Note 6(7), we did not review the financial statements of certain investments accounted for under the equity method, which statements reflect investments accounted for under the equity method of NT$2,442,130 thousand and NT$2,474,427 thousand, constituting 0.75% and 0.80% of the consolidated total assets as of September 30, 2020 and 2019, respectively, and comprehensive income and loss under the equity method of NT$49,719 thousand, NT$47,997 thousand, NT$159,751 thousand and NT$150,257 thousand, constituting 0.53%, (9.08%), 1.41% and (136.64%) of the consolidated total comprehensive income and loss for the three-month and nine-month periods then ended. These amounts and the related information disclosed in Note 13 were based on the unreviewed financial statements of such investee companies.

Qualified Conclusion

Based on our reviews and the reports of other independent accountants, except for the possible effects on the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain investments accounted for under the equity method and the related information disclosed in Note 13 been reviewed by independent accountants as explained in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2020 and 2019, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the ninemonth periods then ended in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

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Other Matter – Review Reports of Other Independent Accountants

We did not review the financial statements of certain consolidated subsidiaries and investments accounted for under the equity method. Those financial statements were reviewed by other independent accountants, whose reports thereon have been furnished to us, and our report expressed herein, insofar as it relates to the amounts included in the financial statements and the information disclosed in Note 13 was based solely on the review reports of other independent accountants. These consolidated subsidiaries reflect total assets of NT$60,031,262 thousand and NT$67,114,256 thousand, constituting 18.54% and 21.64% of the consolidated total assets as at September 30, 2020 and 2019, and total operating revenues of NT$10,418,684 thousand, NT$11,198,979 thousand, NT$27,173,094 thousand and NT$32,295,367 thousand, constituting 18.93%, 22.46%, 19.08% and 22.64% of the consolidated total operating revenues for the three-month and nine-month periods then ended. The investments accounted for under the equity method amounted to NT$16,702,501 thousand and NT$16,451,617 thousand, constituting 5.16% and 5.31% of the consolidated total assets as at September 30, 2020 and 2019, and the comprehensive income and loss under equity method was NT$135,811 thousand, (NT$189,986) thousand, (NT$138,422) thousand and (NT$370,200) thousand, constituting 1.46%, 35.96%, (1.22%) and 336.66% of the consolidated total comprehensive income and loss for the three-month and nine-month periods then ended.

Lee, Hsiu-Ling Chih, Ping-Chiun

For and on behalf of PricewaterhouseCoopers, Taiwan November 12, 2020

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.

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

(Expressed in thousands of New Taiwan (The balance sheets as of September 30, 2020 and 2019 a September30,2020 Assets Notes AMOUNT % Current assets 1100 Cash and cash equivalents 6(1) `$` `41,927,208 13` 1136 Current financial assets at amortised cost, net 6(3) and 8 `8,861,839` `3` 1140 Current contract assets 6(21) `2,387,617` `1` 1150 Notes receivable, net 6(4) `89,968` `-` 1170 Accounts receivable, net 6(4) `16,605,521` `5` 1180 Accounts receivable, net - related parties 6(4) and 7 `698,836` `-` 1200 Other receivables `225,649` `-` 1210 Other receivables - related parties 7 `949,495` `-` 1220 Current income tax assets `450,084` `-` 130X Inventories 6(5) `2,892,011` `1` 1410 Prepayments `1,233,521` `1` 1470 Other current assets 6(6) and 7 `3,164,299` `1` 11XX Current assets `79,486,048 25` Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 6(2) `1,566,894` `-` 1535 Non-current financial assets at amortised cost, net 6(3) `100,000` `-` 1550 Investments accounted for using equity method 6(7) `28,599,101` `9` 1600 Property, plant and equipment, net 6(8), 8 and 9 `116,507,720 36` 1755 Right-of-use assets 6(9) `76,813,078 24` 1760 Investment property, net 6(10) and 8 `5,253,080` `2` 1780 Intangible assets `1,666,228` `-` 1840 Deferred income tax assets `523,122` `-` 1900 Other non-current assets 6(4)(11) and 8 `13,241,256` `4` 15XX Non-current assets `244,270,479 75` 1XXX Total assets `$` `323,756,527 100` (Continued)	(Expressed in thousands of New Taiwan (The balance sheets as of September 30, 2020 and 2019 a September30,2020 Assets Notes AMOUNT % Current assets 1100 Cash and cash equivalents 6(1) `$` `41,927,208 13` 1136 Current financial assets at amortised cost, net 6(3) and 8 `8,861,839` `3` 1140 Current contract assets 6(21) `2,387,617` `1` 1150 Notes receivable, net 6(4) `89,968` `-` 1170 Accounts receivable, net 6(4) `16,605,521` `5` 1180 Accounts receivable, net - related parties 6(4) and 7 `698,836` `-` 1200 Other receivables `225,649` `-` 1210 Other receivables - related parties 7 `949,495` `-` 1220 Current income tax assets `450,084` `-` 130X Inventories 6(5) `2,892,011` `1` 1410 Prepayments `1,233,521` `1` 1470 Other current assets 6(6) and 7 `3,164,299` `1` 11XX Current assets `79,486,048 25` Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 6(2) `1,566,894` `-` 1535 Non-current financial assets at amortised cost, net 6(3) `100,000` `-` 1550 Investments accounted for using equity method 6(7) `28,599,101` `9` 1600 Property, plant and equipment, net 6(8), 8 and 9 `116,507,720 36` 1755 Right-of-use assets 6(9) `76,813,078 24` 1760 Investment property, net 6(10) and 8 `5,253,080` `2` 1780 Intangible assets `1,666,228` `-` 1840 Deferred income tax assets `523,122` `-` 1900 Other non-current assets 6(4)(11) and 8 `13,241,256` `4` 15XX Non-current assets `244,270,479 75` 1XXX Total assets `$` `323,756,527 100` (Continued)	dollars) re reviewed, not audited) December31,2019 AMOUNT % `$` `37,871,889` `12` `2,018,536` `1` `1,693,497` `1` `129,545` `-` `13,979,251` `5` `780,562` `-` `283,739` `-` `743,540` `-` `381,933` `-` `4,547,919` `1` `1,500,038` `1` `2,368,627` `1` `66,299,076` `22` `1,719,423` `-` `100,000` `-` `29,400,925` `10` `108,393,511` `35` `82,624,186` `27` `5,455,070` `2` `1,929,667` `1` `1,035,398` `-` `9,638,382` `3` `240,296,562` `78` `$` `306,595,638` `100`	September30,2019	September30,2019
		AMOUNT `$` `37,871,889` `2,018,536` `1,693,497` `129,545` `13,979,251` `780,562` `283,739` `743,540` `381,933` `4,547,919` `1,500,038` `2,368,627` `66,299,076` `1,719,423` `100,000` `29,400,925` `108,393,511` `82,624,186` `5,455,070` `1,929,667` `1,035,398` `9,638,382` `240,296,562` `$` `306,595,638`	AMOUNT `$` `40,618,276` `1,926,736` `1,598,677` `134,578` `15,892,355` `940,193` `295,695` `1,143,208` `283,201` `4,455,316` `1,653,916` `3,158,684` `72,100,835` `1,676,091` `100,000` `28,434,094` `110,671,398` `81,941,564` `5,704,895` `2,066,118` `1,009,991` `6,404,337` `238,008,488` `$` `310,109,323`	%
Current assets 1100 Cash and cash equivalents 1136 Current financial assets at amortised cost, net 1140 Current contract assets 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost, net 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets	6(1) 6(3) and 8 6(21) 6(4) 6(4) 6(4) and 7 7 6(5) 6(6) and 7 6(2) 6(3) 6(7) 6(8), 8 and 9 6(9) 6(10) and 8 6(4)(11) and 8			`13` `1` `1` `-` `5` `-` `-` `-` `-` `1` `1` `1`
				`23`
				`1` `-` `9` `36` `26` `2` `1` `-` `2`
				`77`
				`100`

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

(Expressed in thousands of New Taiwan (The balance sheets as of September 30, 2020 and 2019 a September 30, 2020 Liabilities and Equity Notes AMOUNT % Current liabilities 2120 Current financial liabilities at fair value through profit or loss `$` `28,701` `-` 2126 Current financial liabilities for hedging 6(9) and 7 `905,017` `-` 2130 Current contract liabilities 6(21) `3,930,913` `1` 2150 Notes payable `33,219` `-` 2170 Accounts payable `17,796,354` `6` 2180 Accounts payable - related parties 7 `344,799` `-` 2200 Other payables `5,870,338` `2` 2220 Other payables - related parties 7 `137,528` `-` 2230 Current income tax liabilities `962,295` `-` 2280 Current lease liabilities 6(9) and 7 `9,623,129` `3` 2300 Other current liabilities 6(12) and 7 `30,290,918 10` 21XX Current liabilities `69,923,211 22` Non-current liabilities 2511 Non-current financial liabilities for hedging 6(9) and 7 `10,535,255` `3` 2530 Corporate bonds payable 6(13) `14,223,941` `4` 2540 Long-term loans 6(14) `84,416,342 26` 2570 Deferred income tax liabilities `2,354,323` `1` 2580 Non-current lease liabilities 6(9) and 7 `54,009,513 17` 2600 Other non-current liabilities 6(15)(16) `3,288,939` `1` 25XX Non-current liabilities `168,828,313 52` 2XXX Total liabilities `238,751,524 74` Equity attributable to owners of the parent Capital 6(17) 3110 Common stock `48,129,738 15` Capital surplus 6(18) 3200 Capital surplus `11,787,963` `4` Retained earnings 6(19) 3310 Legal reserve `5,714,940` `2` 3350 Unappropriated retained earnings `14,599,325` `5` Other equity interest 6(20) 3400 Other equity interest `52,404 (` `1 )` 31XX Equity attributable to owners of the parent `80,284,370 25` 36XX Non-controlling interest `4,720,633` `1` 3XXX Total equity `85,005,003 26` Significant Contingent Liabilities And Unrecognized Contract Commitments 9 Significant Events After The Balance Sheet Date 11 3X2X Total liabilities and equity `$` `323,756,527 100`	(Expressed in thousands of New Taiwan (The balance sheets as of September 30, 2020 and 2019 a September 30, 2020 Liabilities and Equity Notes AMOUNT % Current liabilities 2120 Current financial liabilities at fair value through profit or loss `$` `28,701` `-` 2126 Current financial liabilities for hedging 6(9) and 7 `905,017` `-` 2130 Current contract liabilities 6(21) `3,930,913` `1` 2150 Notes payable `33,219` `-` 2170 Accounts payable `17,796,354` `6` 2180 Accounts payable - related parties 7 `344,799` `-` 2200 Other payables `5,870,338` `2` 2220 Other payables - related parties 7 `137,528` `-` 2230 Current income tax liabilities `962,295` `-` 2280 Current lease liabilities 6(9) and 7 `9,623,129` `3` 2300 Other current liabilities 6(12) and 7 `30,290,918 10` 21XX Current liabilities `69,923,211 22` Non-current liabilities 2511 Non-current financial liabilities for hedging 6(9) and 7 `10,535,255` `3` 2530 Corporate bonds payable 6(13) `14,223,941` `4` 2540 Long-term loans 6(14) `84,416,342 26` 2570 Deferred income tax liabilities `2,354,323` `1` 2580 Non-current lease liabilities 6(9) and 7 `54,009,513 17` 2600 Other non-current liabilities 6(15)(16) `3,288,939` `1` 25XX Non-current liabilities `168,828,313 52` 2XXX Total liabilities `238,751,524 74` Equity attributable to owners of the parent Capital 6(17) 3110 Common stock `48,129,738 15` Capital surplus 6(18) 3200 Capital surplus `11,787,963` `4` Retained earnings 6(19) 3310 Legal reserve `5,714,940` `2` 3350 Unappropriated retained earnings `14,599,325` `5` Other equity interest 6(20) 3400 Other equity interest `52,404 (` `1 )` 31XX Equity attributable to owners of the parent `80,284,370 25` 36XX Non-controlling interest `4,720,633` `1` 3XXX Total equity `85,005,003 26` Significant Contingent Liabilities And Unrecognized Contract Commitments 9 Significant Events After The Balance Sheet Date 11 3X2X Total liabilities and equity `$` `323,756,527 100`	dollars) re reviewed, not audited) December 31, 2019 AMOUNT % `$` `-` `-` `1,861,026` `1` `2,213,538` `1` `-` `-` `16,169,710` `5` `411,102` `-` `4,406,879` `2` `706,239` `-` `841,265` `-` `9,075,576` `3` `27,764,309` `9` `63,449,644` `21` `18,327,916` `6` `10,000,000` `3` `83,859,972` `27` `2,027,378` `1` `51,967,317` `17` `3,368,565` `1` `169,551,148` `55` `233,000,792` `76` `48,129,738` `16` `11,407,437` `4` `5,714,940` `2` `3,659,042` `1` `1,134,622` `-` `70,045,779` `23` `3,549,067` `1` `73,594,846` `24` `$` `306,595,638` `100`	September 30, 2019	September 30, 2019
		AMOUNT `$` `-` `1,861,026` `2,213,538` `-` `16,169,710` `411,102` `4,406,879` `706,239` `841,265` `9,075,576` `27,764,309` `63,449,644` `18,327,916` `10,000,000` `83,859,972` `2,027,378` `51,967,317` `3,368,565` `169,551,148` `233,000,792` `48,129,738` `11,407,437` `5,714,940` `3,659,042` `1,134,622` `70,045,779` `3,549,067` `73,594,846` `$` `306,595,638`	AMOUNT `$` `-` `1,671,806` `2,235,554` `-` `17,555,191` `268,328` `5,138,910` `743,483` `801,584` `9,662,502` `26,406,055` `64,483,413` `13,926,779` `10,000,000` `90,341,725` `1,861,411` `55,103,296` `3,525,167` `174,758,378` `239,241,791` `45,129,738` `11,050,738` `5,714,940` `4,087,521` `1,119,224` `67,102,161` `3,765,371` `70,867,532` `$` `310,109,323`	%
Current liabilities 2120 Current financial liabilities at fair value through profit or loss 2126 Current financial liabilities for hedging 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 2300 Other current liabilities 21XX Current liabilities Non-current liabilities 2511 Non-current financial liabilities for hedging 2530 Corporate bonds payable 2540 Long-term loans 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant Contingent Liabilities And Unrecognized Contract Commitments Significant Events After The Balance Sheet Date 3X2X Total liabilities and equity	6(9) and 7 6(21) 7 7 6(9) and 7 6(12) and 7 6(9) and 7 6(13) 6(14) 6(9) and 7 6(15)(16) 6(17) 6(18) 6(19) 6(20) 9 11			`-` `1` `1` `-` `6` `-` `2` `-` `-` `3` `8`
				`21`
				`4` `3` `29` `1` `18` `1`
				`56`
				`77`
				`15` `4` `2` `1` `-`
				`22` `1`
				`23`
				`100`

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

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

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

(Reviewed, not audited)

Items	Notes	Three months ended September 30	Three months ended September 30
		2020	2019
4000 Operating revenue 5000 Operating costs 5900 Gross profit 5910 Unrealized (profit) loss from sales 5920 Realized profit on from sales 5950 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 6000 Operating expenses 6500 Other gains - net 6900 Operating profit Other non-operating revenue and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of loss (profit) of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the period

(Continued)

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

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

(Reviewed, not audited)

Items	Notes	Three months ended September 30	Three months ended September 30
		2020	2019
Other comprehensive income (loss) Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income 8320 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 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translating the financial statements of foreign operations 8368 Gains (losses) on hedging instrument 8370 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method 8399 Income tax relating to the components of other comprehensive income (loss) 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive (loss) incomefor the period, net of income tax 8500 Total comprehensive income (loss) for the period Profit (loss), attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income (loss) attributable to: 8710 Owners of the parent 8720 Non-controlling interest Basic earnings (loss) per share (in dollars) 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share

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

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

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

(UNAUDITED)

Notes				Equityattributable	Equityattributable	to	owners of theparent				Non-controlling interest	Total equity
	Common stock	Capital surplus, additional paid-in capital	Retained	Earnings				Other equityinterest		Total
			Legal reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on effective portion of cash flow hedges
6(20) 6(20) 6(19) 6(18)(20) 6(20) 6(20) 6(18)(20) 6(18) 6(13)(18)	`$ 45,129,738` `-` `-` `-` `-` `-` `-` `$ 45,129,738` `$ 48,129,738` `-` `-` `-` `-` `-` `-` `-` `$ 48,129,738`	`$ 11,059,145` `-` `-` `-` `-` `(` `5,713` `)` `(` `2,694` `)` `$ 11,050,738` `$ 11,407,437` `-` `-` `-` `574` `37` `379,915` `-` `$ 11,787,963`	`$` `5,685,548` `-` `-` `-` `29,392` `-` `-` `$` `5,714,940` `$` `5,714,940` `-` `-` `-` `-` `-` `-` `-` `$` `5,714,940`		`$ 3,776,643` `340,385` `-` `340,385` `(` `29,392` `)` `(` `115` `)` `-` `$ 4,087,521` `$ 3,659,042` `10,935,991` `3,024` `10,939,015` `1,268` `-` `-` `-` `$ 14,599,325`		`$` `17,580` `-` `284,890` `284,890` `-` `-` `-` `$` `302,470` `($` `856,773 )` `-` `(` `1,623,363 )` `(` `1,623,363 )` `-` `-` `-` `-` `($` `2,480,136 )`	`$` `1,234,225` `-` `68,776` `68,776` `-` `115` `-` `$` `1,303,116` `$` `1,411,638` `-` `(` `100,704 )` `(` `100,704 )` `(` `1,268 )` `-` `-` `-` `$` `1,309,666`	`($` `58,649` `)` `-` `(` `427,713` `)` `(` `427,713` `)` `-` `-` `-` `($` `486,362` `)` `$` `579,757` `-` `643,117` `643,117` `-` `-` `-` `-` `$` `1,222,874`	`$ 66,844,230` `340,385` `(` `74,047` `)` `266,338` `-` `(` `5,713` `)` `(` `2,694` `)` `$ 67,102,161` `$ 70,045,779` `10,935,991` `(` `1,077,926` `)` `9,858,065` `574` `37` `379,915` `-` `$ 80,284,370`	`$ 4,123,606` `(` `236,642` `)` `(` `139,658` `)` `(` `376,300` `)` `-` `-` `18,065` `$ 3,765,371` `$ 3,549,067` `1,662,118` `(` `152,136` `)` `1,509,982` `-` `-` `-` `(` `338,416` `)` `$ 4,720,633`	`$ 70,967,836` `103,743` `(` `213,705 )` `(` `109,962 )` `-` `(` `5,713 )` `15,371` `$ 70,867,532` `$ 73,594,846` `12,598,109` `(` `1,230,062 )` `11,368,047` `574` `37` `379,915` `(` `338,416 )` `$ 85,005,003`

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

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

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Net profit of current financial liabilities at fair value through
profit or loss

Depreciation

Amortization

Expected credit gain

Rental expense

Other income

Interest income

Interest expense

Dividend income

Share of loss (profit) of associates and joint ventures
accounted for using equity method
Gain from bargain purchase

Gains arising from lease modification

Net gain on disposal of property, plant and equipment

Net gain on disposal of right-of-use assets

Net (loss) gain on disposal of investments

Realized income with affiliated companies
Unrealized gain (loss) with affiliated companies
Unrealized foreign exchange gain

Changes in assets/liabilities relating to operating activities
Changes in operating assets
Financial assets at fair value through profit or loss
Current contract assets
Notes receivable, net
Accounts receivable, net
Accounts receivable, net - related parties
Other receivables
Other receivables - related parties
Inventories
Prepayments
Other current assets
Other non-current assets
Net changes in liabilities relating to operating activities
Current contract liabilities
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Other non-current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities Nine-monthperiods ended September 30
Notes
2020
2019
$
14,274,828 $
855,550
6(25)
(
2,609 )
-
6(8)(9)(10)(25)(27)
15,647,680
15,144,807
6(27)
230,488
235,885
12(2)
(
4,569 ) (
15,033 )
6(9)
(
2,872 )
-
6(9)
(
652 )
-
6(23)
(
283,921 ) (
568,919 )
6(26)
3,576,195
4,226,495
6(24)
(
73,065 ) (
89,759 )
187,888 (
409,311 )
6(24)(32)
(
3,415 )
-
6(25)
(
2,051 ) (
5,603 )
6(22)
(
35,881 ) (
376,824 )
6(25)
(
56,282 ) (
27,822 )
6(25)
(
201 )
48,610
(
8,198 ) (
9,388 )
1,561 (
18,212 )
6(9)
(
381,555 )
-
-
189
(
738,439 )
658,759
38,942
21,026
(
2,892,586 ) (
735,652 )
61,905 (
430,248 )
47,856
593,811
(
11,435 ) (
166,034 )
1,534,933
681,096
261,171
2,235
(
700,106 ) (
260,178 )
(
4,688 ) (
6,037 )
1,774,109
449,785
33,219
-
1,930,408 (
2,383,890 )
(
55,142 )
5,966
1,258,453
700,791
(
30,713 )
5,830
(
1,767,920 ) (
455,355 )
(
26,148 ) (
38,110 )
33,777,188
17,634,460
283,921
568,919
(
3,840,174 ) (
4,254,261 )
(
815,992 ) (
1,061,792 )
29,404,943
12,887,326

(Continued)

~10~

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

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) decrease in financial assets at amortised cost
Increase in other receivables - related parties
Acquisition of investments accounted for using equity method
Proceeds from disposal of investments accounted for using equity
method
Proceeds from capital reduction of investments accounted for
using equity method
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Proceeds from disposal of right-of-use assets
Acquisition of intangible assets
Increase in guarantee deposits paid
Increase in other non-current assets

Effect of initial consolidation of subsidiaries
Cash dividend received

Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans
Decrease in short-term loans
Decrease in other payables - related parties
Increase in long-term loans

Decrease in long-term loans

Proceeds from issuance of bonds
Payments of lease liabilities

Net change in non-controlling interest
(Decrease) increase in guarantee deposits received

Other financing activities

Net cash flows from financing activities
Effect of exchange rate changes
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Nine-monthperiods ended September 30
Notes
2020
2019
( $
6,851,245 ) $
740,143
(
25,401 )
-
- (
514,381 )
148,695
-
-
66
6(33)
(
5,104,857 ) (
5,421,255 )
833,667
1,170,351
83,098
127,636
(
19,097 ) (
17,720 )
(
44,184 ) (
1,522 )
6(33)
(
16,679,843 ) (
8,332,045 )
270,144
-
6(33)
472,039
519,703
(
26,916,984 ) (
11,729,024 )
3,954,763
100,000
(
3,954,763 ) (
100,000 )
(
515,284 ) (
459,962 )
6(34)
22,058,266
26,562,247
6(34)
(
18,788,390 ) (
13,633,014 )
8,655,358
-
6(9)(34)
(
8,813,134 ) (
8,826,760 )
(
338,416 )
15,371
6(34)
(
6,048 )
9,901
6(18)
37
-
2,252,389
3,667,783
(
685,029 ) (
44,444 )
4,055,319
4,781,641
37,871,889
35,836,635
$
41,927,208 $
40,618,276

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

~11~

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 reported to the Board of Directors on November 12, 2020.

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 2020 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of material’	January 1, 2020
Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark	January 1, 2020
reform’
Amendment to IFRS 16, ‘Covid-19-related rent concessions’	June 1, 2020 (Note)

Note ： Earlier application from January 1, 2020 is allowed by FSC.

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 1 and IAS 8, ‘Disclosure initiative-definition of material’

The amendments clarify the definition of material that information is material if omitting, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

~12~

B. Amendments to IFRS 3, ‘Definition of a business’

The amendments clarify the definition of a business that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together; narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs. Remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs. Besides, add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. Related impact assessment is provided in Note 4(3).

C. Amendment to IFRS 16, ‘Covid-19-related rent concessions’

This amendment provides a practical expedient for lessees from assessing whether a rent concession related to COVID-19, and that meets all of the following conditions, is a lease modification:

(a) Changes in lease payments result in the revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
(b) Any reduction in lease payments affects only payments originally due on or before June 30 2021; and
(c) There is no substantive change to other terms and conditions of the lease.

The Group has applied the practical expedient to “Covid-19-related rent concessions”. Please refer to Note 6(9) for details of the related explanation and effects.

(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 2021 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 4, ‘Extension of the temporary exemption from January 1, 2021 applying IFRS 9’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

~13~

(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:

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

endorsed by the FSC are as follows: New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2021
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2022
current’
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘	January 1, 2021
Interest Rate Benchmark Reform— Phase 2’

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 IFRS 3, ‘Reference to the conceptual framework’

The amendments were made to IFRS 3, 'Business combinations' to update the references to the 2018 Conceptual Framework for Financial Reporting, in determining what constitutes an asset or a liability in a business combination. In addition, the amendments added an exception in IFRS 3 for the recognition of liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets' or IFRIC 21, 'Levies', rather than the 2018 Conceptual Framework. The amendments also confirmed that contingent assets, as defined in IAS 37, should not be recognised by the acquirer at the acquisition date.

B. Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’

The amendments address issues that arise during the reform of an interest rate benchmark, including the replacement of one benchmark with an alternative one. Given the pervasive nature of IBOR-based contracts, the amendments provide accounting for changes in the basis for determining contractual cash flows as a result of IBOR reform, end date for Phase 1 relief for non contractually specified risk components in hedging relationships, additional temporary exceptions from applying specific hedge accounting requirements, and Additional IFRS 7 disclosures related to IBOR reform.

~14~

The impact of the above standards and interpretations is still under management's assessment.

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

The consolidated financial statements of the Group have been prepared in accordance with the“Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim Financial Reporting’ as endorsed by the FSC.

(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) Financial assets at fair value through other comprehensive income.
- (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 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.

~15~

(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.
B. Subsidiaries included in the consolidated financial statements:

Name of Investor The Company The Company The Company The Company The Company Peony	Name of Subsidiary TTSC Peony ETS EGH EIL GMS	Main business September 30, December 31,September 30, activities 2020 2019 2019 Cargo loading 55.00 55.00 55.00 and discharging Investments in 100.00 100.00 100.00 transport-related business Terminal Services 94.43 94.43 94.43 Container shipping and 79.00 79.00 79.00 agency services dealing with port formalities Agency services dealing 59.00 59.00 59.00 with port formalities Container shipping 100.00 100.00 100.00 Ownership (%)	Description
			(i) (i)

~16~

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

Ownership (%)
Name of Name of Main business September 30, December 31,September 30,
Investor Subsidiary activities 2020 2019 2019 Description
----- End of picture text -----

Investor	Subsidiary	activities	2020	2019	2019	Description
Peony	Clove	Investments in container	100.00	100.00	100.00
		yards and port terminals
Peony	EMU	Container shipping	51.00	51.00	51.00
Peony	EHIC(M)	Manufacturing of	84.44	84.44	84.44
		dry steel containers
		and container parts
Peony	Armand	Investments in container	-	70.00	70.00	(f)
	N.V.	yards and port terminals
Peony	KTIL	Loading, discharging,	20.00	20.00	20.00	(i)
		storage, repairs and
		cleaning of containers
Peony	MBPI	Containers storage	95.03	95.03	95.03
		and inspections of
		containers at the
		customs house
Peony	MBT	Inland transportation,	17.39	17.39	17.39	(i)
		repairs and cleaning
		of containers
Peony	EGK	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EGT	Agency services dealing	85.00	85.00	85.00
		with port formalities
Peony	EGI	Agency services dealing	99.99	99.99	99.99
		with port formalities
Peony	EMA	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EIT	Agency services dealing	55.00	55.00	55.00
		with port formalities
Peony	EES	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	ERU	Agency services dealing	51.00	51.00	51.00
		with port formalities

~17~

==> picture [472 x 45] intentionally omitted <==

Investor	Subsidiary	activities	2020	2019	2019	Description
Peony	EEU	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	ESA	Agency services dealing	55.00	55.00	55.00
		with port formalities
Peony	EGB	Real estate leasing	95.00	95.00	95.00
Peony	EGM	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EGH	Container shipping and	1.00	1.00	1.00	(i)
		agency services dealing
		with port formalities
Peony	EGV	Agency services dealing	100.00	100.00	100.00
		with port formalities
EGH	Ever shine	Management consultancy	100.00	100.00	100.00
	(Shanghai)	and self-owned property
		leasing
EGH	Ever shine	Management consultancy	100.00	100.00	100.00
	(Ningbo)	and self-owned property
		leasing
EGH	EKH	Agency services dealing	100.00	100.00	100.00
		with port formalities
EGH	EPE	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	ECO	Agency services dealing	75.00	75.00	75.00
		with port formalities
EGH	ECL	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	EMX	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	EGRC	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	HMH	Agency services dealing	-	-	-	(a)
		with port formalities

~18~

==> picture [480 x 45] intentionally omitted <==

Investor	Subsidiary	activities	2020	2019	2019	Description
EGH	Ever shine	Management consultancy	100.00	100.00	100.00	(a)
	(Shenzhen)	and self-owned property
		leasing
EGH	Ever shine	Management consultancy	100.00	100.00	100.00	(a)
	(Qingdao)	and self-owned property
		leasing
EGH	ECN	Agency services dealing	65.00	52.00	49.00	(a)、(b)、(c)
		with port formalities
EGH	KTIL	Loading, discharging,	20.00	20.00	20.00	(a)、(i)
		storage, repairs and
		cleaning of containers
EGH	EIL	Agency services dealing	1.00	1.00	1.00	(i)
		with port formalities
EGH	ELA	Management consultancy	100.00	16.50	16.50	(d)
EGH	EBR	Agency services dealing	60.00	-	-	(e)
		with port formalities
EGH	EGP	Agency services dealing	100.00	-	-	(h)
		with port formalities
ETS	Whitney	Investments and	100.00	100.00	100.00
		leases of operating
		machinery and
		equipment of port
		terminals
EMU	KTIL	Loading, discharging,	20.00	20.00	20.00	(i)
		storage, repairs and
		cleaning of containers
Clove	ETS	Terminal Services	5.57	5.57	5.57	(i)
Armand	Armand	Investments in container	-	100.00	100.00	(g)
N.V.	B.V.	yards and port terminals
MBPI	MBT	Inland transportation,	72.95	72.95	72.95	(i)
		repairs and cleaning
		of containers

~19~

(a) On August 13, 2018, shareholders of the subsidiary, EGH, during their meeting resolved to make an equity transaction. EGH acquired a 100% equity interest of HMH and its indirect investees, wholly-owned Ever Shine (Shenzhen), wholly-owned Ever Shine (Qingdao), 49% owned MAC and 20% owned KTIL from other related party, Chestnut Estate B.V.. The transaction amount was US $105,808. The applicable transactions were approved by the Investment Commission of the Ministry of Economic Affairs. The acquisition date was December 14, 2018. On December 21, 2018, shareholders of EGH during their meeting resolved to merge its subsidiary, HMH. EGH will be the surviving company and HMH will be dissolved after the merger. The liquidation process of HMH was completed by January 10, 2020.
(b) On June 24, 2020, the Board of Directors of the subsidiary, EGH, resolved to participate in the capital increase of the indirect subsidiary, ECN, as the original shareholder and subscribe all shares in total amount of CNY 4,048. The shareholding ratio of EGH is 65% after the capital increase.
(c) On October 28, 2019, shareholders of the subsidiary, EGH, during their meeting resolved to make an equity transaction. EGH acquired the 3% ownership of MAC from Ningbo Jiang Dong Ever Elite Investment Consulting Ltd.. The transaction amount was RMB $150. The applicable transactions were approved by the Investment Commission of the Ministry of Economic Affairs. The acquisition date was December 10, 2019.
(d) On December 20, 2019, the Board of Directors of the subsidiary, EGH, approved the ELA equity transaction and acquired 83.50% equity interests from EMC 、 EMU and other related parties, the transaction date was March 1, 2020 and the transaction amount was USD 544. After the transaction, the shareholding ratio which was the equity of ELA held by EGH increase from 16.50% to 100%. The company primarily engaged in management consultancy in Latin America. Because the transaction did not meet the requirements of IFRS 3, ‘Definition of a business’, the accounting treatment of this equity transaction would be accounted as acquired assets and liabilities based on the principle.
(e) On August 13, 2019, the Board of Directors of the subsidiary, EGH, approved to establish a subsidiary, EBR, in Brazil, the initial capital amounted to BRL 1,200 (approx. USD 247), the date of the capital injection completion was March 16, 2020, this company primarily engaged in freight and shipping agent.
(f) On March 18, 2020, the shareholders of the subsidiary, Armand N.V., during their meeting approved the accelerated liquidation. At the same day, the investment amount returned to the shareholder, Peony Investment S.A, and non-controlling interests amounted to $339,638 (approx. USD 11,237) and $145,909 (approx. USD 4,827), respectively, based on local regulations. The liquidation process of Armand N.V. was completed by June 30, 2020.

~20~

(g) On March 17, 2020, the shareholders of the subsidiary, Armand B.V., during their meeting approved the accelerated liquidation. At the same day, the investment amount returned to Armand N.V. amounted to $491,294 (approx. USD16,257) based on local regulations. The liquidation process of Armand B.V. was completed by June 25, 2020.
(h) On June 30, 2020, the Board of Directors of the subsidiary, EGH, resolved to make an equity transaction. EGH acquired 40% and 60% equity interests of EGP from the other related parties, Evergreen International S.A., and Evergreen Logistics Philippines Corp., respectively, and obtained the control over EGP. The transaction date was July 1, 2020 and the transaction amount was PHP 239,500 (approx. $141,760).
(i) This company was included in the consolidated financial statements, given the comprehensive shareholding ratio and the majority voting rights on the Board of Directors held by the Group, the Group obtained control over the company.
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 September 30, 2020, December 31, 2019 and September 30, 2019, the non-controlling interest amounted to $4,720,633, $3,549,067 and $3,765,371, respectively. The information of noncontrolling interest and respective subsidiaries is as follows:

Name of subsidiary	Ownership Ownership Amount (%) Amount (%) 1,615,846 $ 49% 768,414 $ 49% 2,505,066 20% 2,021,999 20% Ownership Amount (%) 950,758 $ 49% 2,058,166 20% Non-controlling interest September 30, 2020 December 31,2019 Non-controllinginterest September 30,2019	Ownership Ownership Amount (%) Amount (%) 1,615,846 $ 49% 768,414 $ 49% 2,505,066 20% 2,021,999 20% Ownership Amount (%) 950,758 $ 49% 2,058,166 20% Non-controlling interest September 30, 2020 December 31,2019 Non-controllinginterest September 30,2019	Description
	Ownership Amount (%) 1,615,846 $ 49% 2,505,066 20% September 30, 2020
	Amount 1,615,846 $ 2,505,066
EMU EGH Name of subsidiary			Description
		Amount 950,758 $ 2,058,166
EMU EGH

~21~

Summarised financial information of the subsidiaries: Balance sheets

Balance sheets
						EMU
		September 30, 2020			December 31, 2019			September 30, 2019
Current assets	$		6,839,275	$		6,866,440	$		6,529,619
Non-current assets			43,131,923			46,043,283			48,305,783
Current liabilities	(		15,551,033)	(		16,584,869)	(		16,313,164)
Non-current liabilities	(		31,122,520)	(		34,756,663)	(		36,581,916)
Total net assets	$		3,297,645	$		1,568,191	$		1,940,322
						EGH
		September 30, 2020			December 31,2019			September 30,2019
Current assets	$		15,646,302	$		12,300,364	$		11,057,286
Non-current assets			34,960,221			29,181,330			29,035,704
Current liabilities	(		15,397,554)	(		12,496,762)	(		11,975,643)
Non-current liabilities	(		23,223,532)	(		19,659,040)	(		18,479,106)
Total net assets	$		11,985,437	$		9,325,892	$		9,638,241

Statements of comprehensive income

			EMU	EMU	EMU
		Three-month period ended			Three-month period ended
			September 30,2020			September 30,2019
Revenue	$		10,723,301		$	11,064,387
Profit (loss) before income tax	$		1,674,938	($		409,590)
Income tax expense	(		7,036)	(		8,045)
Profit (loss) for the period from
continuing operations			1,667,902	(		417,635)
Other comprehensive income (loss),
net of tax			3,287	(		3,207)
Total comprehensive income (loss)
for the period	$		1,671,189	($		420,842)
Comprehensive income (loss)
attributable to non-controlling interest	$		818,883	($		206,213)

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			EMU	EMU	EMU
		Nine-month period ended			Nine-month period ended
			September 30,2020			September 30,2019
Revenue	$		28,272,052		$	32,078,835
Profit (loss) before income tax	$		1,847,672	($		1,064,544)
Income tax expense	(		20,352)	(		17,586)
Profit (loss) for the period from
continuing operations			1,827,320	(		1,082,130)
Other comprehensive income (loss),
net of tax			2,047	(		3,396)
Total comprehensive income (loss)
for the period	$		1,829,367	($		1,085,526)
Comprehensive income (loss)
attributable to non-controlling interest	$		896,390	($		531,908)
			EGH
		Three-month period ended			Three-month period ended
			September 30,2020			September 30,2019
Revenue	$		10,656,933		$	7,153,868
Profit before income tax	$		2,313,228		$	448,876
Income tax expense	(		199,006)	(		101,904)
Profit for the period from continuing
operations			2,114,222			346,972
Other comprehensive income,
net of tax			-			-
Total comprehensive income
for the period	$		2,114,222		$	346,972
Comprehensive income attributable
to non-controlling interest	$		422,844		$	69,395
			EGH
		Nine-month period ended			Nine-month period ended
			September 30,2020			September 30,2019
Revenue	$		26,131,593		$	19,666,975
Profit before income tax	$		3,395,535		$	717,712
Income tax expense	(		347,153)	(		347,509)
Profit for the period from continuing
operations			3,048,382			370,203
Other comprehensive income,
net of tax			-			-
Total comprehensive income
for the period	$		3,048,382		$	370,203
Comprehensive income attributable
to non-controlling interest	$		609,676		$	74,041

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Statements of cash flows

Statements of cash flows
			EMU
		Nine-month period ended			Nine-month period ended
			September 30,2020			September 30,2019
Net cash provided by operating		$	4,922,831		$	1,891,654
activities
Net cash used in investing activities		(	1,429,350)		(	618,116)
Net cash used in financing activities		(	3,212,620)		(	1,680,113)
Effect of exchange rates on cash
and cash equivalents		(	61,487)			19,263
Increase (decrease) in cash and cash
equivalents			219,374		(	387,312)
Cash and cash equivalents,
beginning of period			1,610,984			1,787,358
Cash and cash equivalents,
end of period		$	1,830,358		$	1,400,046
			EGH
		Nine-month period ended			Nine-month period ended
			September 30,2020			September 30,2019
Net cash provided by operating	$		7,344,456		$	4,197,438
activities
Net cash used in investing activities	(		4,965,909)	(		8,651,835)
Net cash (used in) provided by
financing activities	(		1,380,702)			4,787,044
Effect of exchange rates on cash
and cash equivalents	(		179,269)			26,321
Increase in cash and cash equivalents			818,576			358,968
Cash and cash equivalents,
beginning of period			4,542,951			3,166,065
Cash and cash equivalents,
end of period	$		5,361,527		$	3,525,033

(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.

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.

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(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, nonmonetary 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 group 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 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.
(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.
(d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

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(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 arising from operating activities that are expected to be realised, 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 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 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.

(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 three months 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.

(7) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
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.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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(8) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
(a) The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as other income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.
(9) Financial assets at amortised cost
A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.
D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
(10) Notes, accounts and other receivables
A. Notes and account receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services. Receivables arising from transactions other than the sale of goods or service are classified as other receivables.

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B. The short-term notes receivable, accounts receivable and other receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(11) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial assets at amortised cost including accounts receivable or contract assets that have a significant financing component at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.
(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) Operating leases (lessor) operating leases

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.

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(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.

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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 financial year-end. 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 15 ~ 135 years

Loading and unloading equipment 5 ~ 20 years Ships (Except for docking repair and scrubber) 18 ~ 25 years Ships (Docking repair) 2.5 ~ 5 years Ships (Scrubber) 10 years

Transportation equipment 6 ~ 10 years Other equipment 2 ~ 20 years

(17) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities
A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:
(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate; and
(c) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.
(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

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

Goodwill arises in a business combination accounted for by applying the acquisition method.

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C. Customer relationship

Customer relationship arises from the business combination is measured initially at their fair values at the acquisition date. Customer relationship has a finite useful life and are amortised on a straight-line basis over their estimated useful lives of 2 to 10 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. Except for goodwill, when the circumstances or reasons for recognising 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 comprise long-term and short-term bank borrowings and other long-term and shortterm loans. 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
A. Accounts payable are liabilities for purchases of raw materials, goods or services.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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

A. 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 categorised as financial liabilities held for trading unless they are designated as hedges or financial liabilities at fair value through profit or loss. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at 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.

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B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.
(24) Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(25) Convertible bonds payable (Compound financial instruments)
A. Convertible 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 upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:
- (a)The embedded call options and put options 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)The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.
- (c)The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.
- (d)Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.
- (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 issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.

(26) Derecognition of financial liabilities

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

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(27) 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.

(28) Hedge accounting
A. At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. That documentation shall include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements.
B. The Group designates the hedging relationship as follows: Cash flow hedge:
- A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction.
C. Cash flow hedges
- (a)The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the following (in absolute amounts):
  - i. the cumulative gain or loss on the hedging instrument from inception of the hedge; and
  - ii. the cumulative change in fair value of the hedged item from inception of the hedge.
- (b)The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income. The gain or loss on the hedging instrument relating to the ineffective portion is recognised in profit or loss.
- (c)The amount that has been accumulated in the cash flow hedge reserve in accordance with item
  - (a) is accounted for as follows:
  - i. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the Group shall remove that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or liability.
  - ii. For cash flow hedges other than those covered by item i. above, that amount shall be reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss.
  - iii. If that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it shall immediately reclassify the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.

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  - (d) When the hedging instrument expires, or is sold, terminated, exercised or when the hedging relationship ceases to meet the qualifying criteria, if the forecast transaction is still expected to occur, the amount that has been accumulated in the cash flow hedge reserve shall remain in the cash flow hedge reserve until the forecast transaction occurs; if the forecast transaction is no longer expected to occur, the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

(29) 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. 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.
iv. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

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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’ remuneration Employees’ compensation and directors’ 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.
(30) 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 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.

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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 utilised. 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.
G. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
H. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.
(31) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved 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.

(32) Revenue recognition

A. 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. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

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B. Rental revenue

The Group leases ships and shipping spaces under IAS 17, ‘Leases’ and IFRS 16, ‘Leases’. Lease assets are classified as finance leases or operating leases based on the transferred proportion of the risks and rewards incidental to ownership of the leased asset, and recognised in revenue over the lease term.

(33) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.
B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.
(34) Operating segments

The Group’s 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:

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

None.

(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 assets

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 September 30, 2020, the Group recognised property, plant, equipment and cargo handling equipment, transport equipment and ship equipment, which are recognised in right-of-use asset, amounting to $ 107,234,629 and $ 65,561,332, respectively.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and petty cash Checking accounts and demand deposits Time deposits	September 30, 2020 26,616 $ 10,212,010 31,688,582 41,927,208 $	December 31,2019 28,964 $ 6,903,864 30,939,061 37,871,889 $	September 30, 2019
			29,553 $ 8,525,187 32,063,536
			40,618,276 $

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.
B. The Group has no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed (TSE) stocks Unlisted stocks Valuation adjustment	September 30,2020 490,801 $ 205,057 695,858 871,036 1,566,894 $	December 31,2019 490,801 $ 208,570 699,371 1,020,052 1,719,423 $	September 30,2019
			490,801 $ 212,478
			703,279 972,812
			1,676,091 $

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A. The Group has elected to classify these investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,566,894, $1,719,423 and $1,676,091 as at September 30, 2020, December 31, 2019 and September 30, 2019, respectively.
B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Three-month period ended Three-month period ended September 30, 2020 September 30, 2019

Equity instruments at fair value through other comprehensive income

Fair value change recognised in other comprehensive income
Income tax recognised in other comprehensive income
Dividend income recognised in profit or loss - Held at end of period

$ 116,343 ($ 220,453) ($ 1,266) $ 11,648 ($ 182) $ 121 Nine-month period ended Nine-month period ended September 30, 2020 September 30, 2019

Equity instruments at fair value

through other comprehensive income

Nine-month period ended September 30,2020 Equity instruments at fair value through other comprehensive income	Nine-month period ended September 30,2019
Fair value change recognised in other comprehensive income 137,823) ($ Income tax recognised in other comprehensive income 8,932 $ Dividend income recognised in profit or loss - Held at end of period 73,065 $	20,368 $
	4,523 $
	89,759 $

C. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(3) Financial assets at amortised cost

Financial assets at amortised cost
Items Current items: Time deposits exceeding 3 months Pledged time deposits Non-current items: Financial bonds	September 30,2020 8,622,823 $ 239,016 8,861,839 $ 100,000 $	December 31,2019 1,727,796 $ 290,740 2,018,536 $ 100,000 $	September 30,2019
			1,635,731 $ 291,005
			1,926,736 $
			100,000 $

~40~

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

below:
	Three-month period ended		Three-month period ended
		September 30,2020		September 30,2019
Interest income	$	4,866	$	3,431
	Nine-month period ended		Nine-month period ended
		September 30,2020		September 30,2019
Interest income	$	27,913	$	35,518

B. As at September 30, 2020, December 31, 2019 and September 30, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was $8,961,839, $2,118,536 and 2,026,736, respectively.
C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(4) Notes and accounts receivable

Notes and accounts receivable
	September 30,2020		December 31,2019		September 30, 2019
Notes receivable	$	89,970	$	129,547	$	134,580
Less: Allowance for bad debts	(	2)	(	2)	(	2)
	$	89,968	$	129,545	$	134,578

Accounts receivable (including
related parties)	$	17,312,036	$	14,772,158	$	16,847,280
Less: Allowance for bad debts	(	7,679)	(	12,345)	(	14,732)
	$	17,304,357	$	14,759,813	$	16,832,548
Overdue receivables (recorded
as other non-current assets)	$	260,620	$	269,506	$	278,265
Less: Allowance for bad debts	(	260,620)	(	269,506)	(	278,265)
	$	-	$	-	$	-
A. The ageing analysis of accounts receivable and notes receivable are as follows:
	September 30,2020		December 31,2019		September 30,2019
	Accounts receivable		Accounts	receivable	Accounts	receivable
Not past due	$	15,184,325	$	12,094,901	$	14,459,741
Up to 30 days		2,040,353		2,450,297		2,064,895
31 to 180 days		87,358		226,960		322,644
Over 180 days		260,620		269,506		278,265
	$	17,572,656	$	15,041,664	$	17,125,545

~41~

September 30,2020 Notes receivable Not past due 89,970 $ Up to 30 days - 31 to 180 days - 89,970 $	December 31,2019 Notes receivable 129,547 $ - - 129,547 $	September 30,2019 Notes receivable 134,580 $ - - 134,580 $

The above ageing analysis was based on past due date.

B. As of September 30, 2020, December 31, 2019, September 30, 2019, and January 1, 2019, the balances of receivables (including notes receivable) from contracts with customers amounted to $16,062,040, $13,084,484, $14,552,544 and $14,202,068, respectively.
C. The Group has no notes and accounts receivable held by the Group pledged to others.
D. As at September 30, 2020, December 31, 2019 and September 30, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $89,968, $129,545 and $134,578, respectively; and the amount that best represents the Group’s accounts receivable were $17,304,357, $14,759,813 and $16,832,548, respectively.
E. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

(5) Inventories

12(2). ventories
Ship fuel Steel and others Ship fuel Steel and others Ship fuel Steel and others		September 30,2020
	Cost 2,490,290 $ 401,721 2,892,011 $	Allowance for valuation loss - $ - - $ December 31,2019	Book value
			2,490,290 $ 401,721
			2,892,011 $

	Cost 4,273,258 $ 274,661 4,547,919 $	Allowance for valuation loss - $ - - $ September 30,2019	Book value
			4,273,258 $ 274,661
			4,547,919 $

	Cost 4,041,790 $ 413,526 4,455,316 $	Allowance for valuation loss - $ - - $	Book value
			4,041,790 $ 413,526
			4,455,316 $

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(6) Other current assets

Other current assets
September 30,2020 Shipowner's accounts 344,701 $ Agency accounts 2,217,032 Temporary debits 602,566 3,164,299 $	December 31,2019 28,957 $ 1,502,487 837,183 2,368,627 $	September 30,2019 436,178 $ 2,073,855 648,651
		3,158,684 $

A. Shipowner’s accounts:

Temporary accounts, between Evergreen Line, constituted by the Group, Evergreen International S.A., Italia Marittima S.p.A., and Evergreen Marine (Singapore) Pte. Ltd., and Gaining Enterprise S.A. incurred due to foreign port formalities and pier rental expenses.

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. Temporary debits are mainly subject to the account of settlements between other carriers and the OCEAN Alliance, which Evergreen Line formed in response to market competition and enhancement of global transportation network to provide better logistics services to customers with Cosco Container Lines Co., Ltd., CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. on March 31, 2017 for trading of shipping space.

(7) Investments accounted for using equity method

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

Evergreen International Storage and Transport Corporation EVA Airways Corporation Taipei Port Container Terminal Corporation Charng Yang Development Co., Ltd. Luanta Investment (Netherlands) N.V. Balsam Investment (Netherlands) N.V. Colon Container Terminal S.A. Others	September 30,2020 8,990,766 $ 10,912,593 1,501,234 539,651 1,818,945 573,001 3,079,277 1,183,634 28,599,101 $	December 31,2019 9,039,677 $ 11,399,909 1,583,427 553,210 1,884,647 525,226 3,193,300 1,221,529 29,400,925 $	September 30,2019
			9,079,664 $ 10,885,943 1,562,091 536,541 1,949,075 - 3,290,140 1,130,640
			28,434,094 $

~43~

B. Associates

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

Companyname Evergreen International Storage and Transport Corporation EVA Airways Corporation	Principal place of business Nature of relationship Methods of measurement September 30,2020 December 31,2019 September 30,2019 TW 40.36% 40.36% 40.36% With a right over 20% to vote Equity method TW 16.00% 16.00% 16.00% Have a right to vote in the Board of Directors Equity method Ownership(%)

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

Balance sheet

follows: Balance sheet
			Evergreen International		Storage and Transport			Corporation
		September 30,2020		December 31,2019			September 30,2019
Current assets	$		5,838,075	$	6,121,815		$	5,477,827
Non-current assets			27,877,903		28,889,987			29,356,529
Current liabilities	(		3,546,976)	(	2,703,450)	(		3,182,435)
Non-current liabilities	(		7,634,771)	(	9,485,576)	(		8,706,853)
Total net assets	$		22,534,231	$	22,822,776		$	22,945,068
Share in associate's net	$		9,043,144	$	9,098,692		$	9,148,479
assets
Unrealized income with
affiliated companies	(		52,378)	(	59,015)	(		68,815)
Carrying amount of the
associate	$		8,990,766	$	9,039,677		$	9,079,664

~44~

		EVA	EVA	Airways Corporation	Airways Corporation	Airways Corporation
		September 30,2020	December 31,2019			September 30,2019
Current assets	57,828,532 $		$	77,199,776		83,049,322 $
Non-current assets		274,024,678		279,051,918		285,512,704
Current liabilities	(	53,160,392)	(	82,441,715)	(	82,794,824)
Non-current liabilities	(	204,062,303)	(	195,667,963)	(	210,982,734)
Total net assets	74,630,515 $		$	78,142,016		74,784,468 $
Share in associate's net
assets	10,912,593 $		$	11,399,909		10,885,943 $

Statement of comprehensive income

		Evergreen International Storage and Transport Corporation	Evergreen International Storage and Transport Corporation	Evergreen International Storage and Transport Corporation	Evergreen International Storage and Transport Corporation
	Three-month period ended			Three-month period ended
		September 30,2020			September 30,2019
Revenue	$	1,755,871		$	1,910,155
Profit for the period	$	182,789		$	174,937
Other comprehensive income
(loss), net of tax		65,838	(		25,712)
Total comprehensive income	$	248,627		$	149,225
Dividends received from associates	$	-		$	-
		Evergreen International Storage and Transport Corporation
	Nine-month period ended			Nine-month period ended
		September 30,2020			September 30,2019
Revenue	$	5,248,700		$	5,805,285
Profit for the period	$	548,791		$	623,201
Other comprehensive (loss)
income, net of tax	(	368,118)			164,240
Total comprehensive income	$	180,673		$	787,441
Dividends received from associates	$	129,208		$	150,742
		EVA Airways		Corporation
	Three-month period ended			Three-month period ended
		September 30,2020			September 30,2019
Revenue	$	18,402,985		$	45,528,073
(Loss) profit for the period	($	1,773,816)		$	1,478,989
Other comprehensive income,
net of tax		1,519,685			92,105
Total comprehensive (loss)
income	($	254,131)		$	1,571,094
Dividends received from associates	$	-	($		2,052)

~45~

		EVA Airways Corporation	EVA Airways Corporation	EVA Airways Corporation
	Nine-month period ended		Nine-month period ended
		September 30, 2020		September 30, 2019
Revenue	$	67,925,015	$	133,705,632
(Loss) profit for the period	($	3,574,293)	$	3,866,236
Other comprehensive income
(loss), net of tax		1,807,168	(	577,366)
Total comprehensive (loss)
income	($	1,767,125)	$	3,288,870
Dividends received from associates	$	194,135	$	374,935

(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 September 30, 2020, December 31, 2019 and September 30, 2019, the carrying amount of the Group’s individually immaterial associates amounted to $8,695,742, $8,961,339 and $8,468,487, respectively.

Income (loss) for the period Other comprehensive income, net of tax Total comprehensive income (loss)	Nine-month period ended Nine-month period ended September 30,2020 September 30, 2019 570,359 $ 524,418) ($ - - 570,359 $ 524,418) ($

C. Above stated certain investments accounted for using equity method are based on the financial statements of associates which were not reviewed by the independent accountants or reviewed by the associates’ independent accountants.
D. The fair value of the Group’s associates which have quoted market price was as follows:

Evergreen International Storage and Transport Corporation EVA Airways Corporation	September 30,2020 5,857,414 $ 8,270,163 14,127,577 $	December 31,2019 6,180,433 $ 10,677,440 16,857,873 $	September 30,2019
			5,900,483 $ 10,598,830
			16,499,313 $

E. To integrate the investment structure, on November 13, 2019, the shareholders of the subsidiary,

Armand B.V., during their meeting approved to dispose 9.73% equity interests of Taipei Port Container Terminal Corporation. On February 7, 2020, the Company acquired 6.82% equity interests at par value of NT$9.941 per share, consisting of 35,421 thousand shares, the transaction amounting to $352,123. Additionally, other related party, EIS, also acquired 2.91% equity interests at par value of NT$9.941 per share, consisting of 15,181 thousand shares, the transaction amounting to $150,464. After the transaction, the shareholding ratio of the Group to Taipei Port Container Terminal Corporation decreased from 30.76% to 27.85%, still valued using equity

~46~

method.

F. The Board of Directors of the Company during its meeting on December 21, 2018 adopted a resolution to participate in the capital increase raised by EVA Airways Corporation amounting to 39,150 thousand shares, subscription price of NT$13 (in dollars) per share, whose total price of $508,944. In addition, the effective date was set on January 24, 2019 and after the acquisition, the Company’s share interest was decreased to 16.10%. Moreover, the Company purchased 70 thousand shares as specific person, the purchasing proceeds amounted to $700, and the share interest further decreased to 16% as of September 30, 2020 after many conversions from corporate bonds to stocks took place in EVA Airways Corporation for the year ended December 31, 2019.
G. On November 10, 2019, the Board of Directors of the subsidiary, Peony, has resolved to participate in the capital increase of the investee, Balsam Investment (Netherlands) N.V., as the original shareholder. The amount of capital increase was USD 24,500. After the capital increase, Peony’s shareholding ratio is still 49%.
H. The Company is the single largest shareholder of EITC with a 40.36% equity interest. Given that the main source of economic profits of EITC is generated from Evergreen Line, the percentage of operating volume of the Group in Evergreen Line is equivalent to other related parties’ and there is no agreement between other related parties and the Company to make decisions in consultation or collectively; however, in order to maintain the equity balance between the Group and other related parties, the Company governs EITC with other related parties to maintain mutual and other shareholders’ best interests; apart from independent directors, the number of seats held by the Company on the Board are the same as other related parties’, which indicates that the Company has no current ability to direct the relevant activities of EITC, the Company has no control, but only has significant influence, over the investee.
I. The Company is the single largest shareholder of EVA with a 16% equity interest. Given that the other top ten large shareholders (including other related parties and non-related parties) hold more shares than the Company, and there is no agreement between the shareholders to make decisions in consultation or collectively as they make decisions independently, which indicates that the Company has no current ability to direct the relevant decisions of EVA, the Company has no control, but only has significant influence, over the investee.
J. The Company is the single largest shareholder of TPCT with a 27.85% equity interest. Given that the other two large shareholders (non-related parties) also operate transportation business and hold more shares than the Company, and there is no agreement between the shareholders to make decisions in consultation or collectively as they make decisions independently, which indicates that the Company has no current ability to direct the relevant decisions of TPCT, the Company has no control, but only has significant influence, over the investee.

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(8) Property, plant and equipment, net

					2020
Land 823,377 $ - 823,377 $ 823,377 $ - - 18,209 - - 19,444) ( 822,142 $ 822,142 $ - 822,142 $	Buildings 7,589,613 $ 1,420,875) ( 6,168,738 $ 6,168,738 $ 8,416 - 142,547 122,926) ( 112,870 187,401) ( 6,122,244 $ 7,644,487 $ 1,522,243) ( 6,122,244 $	Machinery equipment 653,005 $ 518,595) ( 134,410 $ 134,410 $ 563 - - 10,715) ( - 6,359) ( 117,899 $ 622,394 $ 504,495) ( 117,899 $	Loading and unloading equipment 11,587,972 $ 8,182,213) ( 3,405,759 $ 3,405,759 $ 17,336 153) ( - 384,897) ( - 54,112) ( 2,983,933 $ 11,407,126 $ 8,423,193) ( 2,983,933 $	Computer and communication equipment 1,317,804 $ 807,079) ( 510,725 $ 510,725 $ 113,991 693) ( 6,907 207,768) ( 1,271 12,127) ( 412,306 $ 1,395,222 $ 982,916) ( 412,306 $	Transportation equipment 28,726,237 $ 9,328,119) ( 19,398,118 $ 19,398,118 $ 3,480,086 32,735) ( 114,468 2,010,435) ( - 499,093) ( 20,450,409 $ 31,338,738 $ 10,888,329) ( 20,450,409 $	Ships 122,361,439 $ 45,014,883) ( 77,346,556 $ 77,346,556 $ 496,175 764,770) ( 11,977,039 3,723,273) ( - 1,531,440) ( 83,800,287 $ 125,033,749 $ 41,233,462) ( 83,800,287 $	Office equipment 581,306 $ 454,356) ( 126,950 $ 126,950 $ 30,461 280) ( 14,657 35,823) ( 2,447 5,044) ( 133,368 $ 607,034 $ 473,666) ( 133,368 $	Leasehold improvements 852,610 $ 583,950) ( 268,660 $ 268,660 $ 628,914 - 842,407 127,908) ( 668 22,107) ( 1,590,634 $ 2,286,082 $ 695,448) ( 1,590,634 $	Others 221,576 $ 11,358) ( 210,218 $ 210,218 $ 23,773 - 153,005) ( 3,355) ( - 3,133) ( 74,498 $ 89,211 $ 14,713) ( 74,498 $	Total
										174,714,939 $ 66,321,428) (
										108,393,511 $
										108,393,511 $ 4,799,715 798,631) ( 12,963,229 6,627,100) ( 117,256 2,340,260) (
										116,507,720 $
										181,246,185 $ 64,738,465) (
										116,507,720 $

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At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Net exchange differences Closing net book amount as at September 30 At September 30 Cost Accumulated depreciation						2019	2019					Total
	Land 822,076 $ - 822,076 $ 822,076 $ - - - - 4,093 826,169 $ 826,169 $ - 826,169 $	Buildings 7,436,436 $ 1,258,082) ( 6,178,354 $ 6,178,354 $ 26,811 - 132,101 117,772) ( 22,644 6,242,138 $ 7,573,543 $ 1,331,405) ( 6,242,138 $	Machinery equipment 640,766 $ 511,626) ( 129,140 $ 129,140 $ 14,463 197) ( 5,847 10,060) ( 96 139,289 $ 659,543 $ 520,254) ( 139,289 $	Loading and unloading equipment 10,823,844 $ 7,327,291) ( 3,496,553 $ 3,496,553 $ 126,286 1,005) ( 373,939 409,095) ( 14,712 3,601,390 $ 11,753,345 $ 8,151,955) ( 3,601,390 $	Computer and communication equipment 1,245,653 $ 617,547) ( 628,106 $ 628,106 $ 27,762 512) ( 33,654 172,959) ( 4,238 520,289 $ 1,291,643 $ 771,354) ( 520,289 $	Transportation equipment 22,567,926 $ 7,371,302) ( 15,196,624 $ 15,196,624 $ 5,470,003 14,422) ( - 1,574,185) ( 88,326 19,166,346 $ 28,121,616 $ 8,955,270) ( 19,166,346 $	Ships 126,866,151 $ 50,041,877) ( 76,824,274 $ 76,824,274 $ 263,828 777,986) ( 6,614,880 3,779,116) ( 418,062 79,563,942 $ 124,543,951 $ 44,980,009) ( 79,563,942 $	Office equipment 543,931 $ 423,622) ( 120,309 $ 120,309 $ 29,844 251) ( 12,877 34,432) ( 729) ( 127,618 $ 571,770 $ 444,152) ( 127,618 $	Leased assets 20,242,368 $ 6,703,192) ( 13,539,176 $ 13,539,176 $ - - 13,539,176) ( - - - $ - $ - - $	Leasehold improvements 605,782 $ 480,658) ( 125,124 $ 125,124 $ 9,855 - 232,229 72,726) ( 195) ( 294,287 $ 851,736 $ 557,449) ( 294,287 $	Others 166,460 $ 7,011) ( 159,449 $ 159,449 $ 112,556 - 76,232) ( 3,237) ( 2,606) ( 189,930 $ 200,177 $ 10,247) ( 189,930 $
												191,961,393 $ 74,742,208) ( 117,219,185 $ 117,219,185 $ 6,081,408 794,373) ( 6,209,881) ( 6,173,582) ( 548,641 110,671,398 $ 176,393,493 $ 65,722,095) ( 110,671,398 $

A. The Group 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.

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`－` (9) Leasing arrangements lessee/ Financial liabilities for hedging

A. The Group leases various assets including land, buildings, loading and unloading equipment, transportation equipment, ships, and business vehicles. Rental contracts are typically made for periods of 1 to 90 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise of buildings and ships. Lowvalue assets comprise office equipment and other equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	September	September	30,2020	December 31,2019	December 31,2019	September 30,2019	September 30,2019
		Carrying	amount		Carryingamount		Carrying amount
Land	$	10,484,795		$	12,228,498	$	13,053,365
Buildings			716,273		865,940		931,127
Loading and unloading
equipment			133,946		101,493		131,097
Transportation equipment			1,514,490		2,230,717		2,981,921
Ships		63,912,896			67,134,641		64,775,718
Office equipment			45,059		39,930		38,699
Other equipment			5,619		22,967		29,637
	$	76,813,078		$	82,624,186	$	81,941,564
		Three-month period ended Three-month period ended
			September		30,2020 September 30, 2019
			Depreciation charge Depreciation charge
Land		$			469,546 $		489,480
Buildings					70,841		71,377
Loading and unloading equipment					31,754		26,459
Transportation equipment					160,575		260,246
Ships					2,124,958		2,151,634
Office equipment					5,370		4,290
Other equipment					5,580		5,950
		$			2,868,624 $		3,009,436

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	Nine-month period ended	Nine-month period ended	Nine-month period ended	Nine-month period ended
		September 30,2020		September 30,2019
		Depreciation charge		Depreciation charge
Land	$	1,423,441	$	1,459,285
Buildings		214,126		202,648
Loading and unloading equipment		82,480		103,659
Transportation equipment		511,392		793,041
Ships		6,641,315		6,256,798
Office equipment		14,126		12,847
Other equipment		17,013		17,756
	$	8,903,893	$	8,846,034

D. For the nine-month periods ended September 30, 2020 and 2019, the additions to right-of-use assets were $4,187,266 and $16,932,212, respectively.
E. For the nine-month periods ended September 30, 2020 and 2019, the disposals to right-of-use assets were $26,816 and $99,814, respectively.
F. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Gains arising from lease modifications Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Gains arising from lease modifications	Three-month period ended September 30,2020 646,095 $ 992,068 7,590 986 1,586 Nine-month period ended September 30,2020 2,091,180 $ 3,305,817 15,103 3,166 2,051	Three-month period ended September 30,2019
		787,547 $ 1,239,455 5,238 1,869 3,297 Nine-month period ended September 30,2019
		2,139,188 $ 4,700,746 13,414 4,741 5,603

G. For nine-month period ended September 30, 2020 and 2019, the Group’s total cash outflow for leases amounted to $14,228,400 and $15,684,849, respectively.
H. As of September 30, 2020, the Group had entered into lease agreements that contained non-lease service component. Based on the fair value of the lease and non-lease component, the future commitment payment allocated to service component amounted to $10,132,264.

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I. The Group has applied the practical expedient to “Covid-19-related rent concessions”, and recognised the gain from changes in lease payments arising from the rent concessions amounting to $3,524 by decreasing rent expense in $2,872 and increasing other income in $652 for the ninemonth period ended September 30, 2020.
J. To hedge the impact of expected variable exchange rate risk arising from US dollar denominated lease liabilities payable, the Company designated US dollar denominated lease contracts as the hedging instruments for hedging the foreign exchange variation of future US dollar denominated marine freight income and adopted cash flow hedge accounting. Moreover, the effective portion with respect to the changes in cash flows of the hedging instruments is deferred to recognise in gains (loss) on hedging instruments, which is under other equity interest, and will be directly included in the marine freight income when the hedged items are highly probable realised. Details of relevant transactions are as follows:

of relevant transactions are as follows:	e as follows:	e as follows:
Designated as Hedged items hedginginstruments Contractperiod Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2034.8.15 Designated as Hedged items hedginginstruments Contractperiod Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2034.8.15 Designated as Hedged items hedginginstruments Contractperiod Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2034.3.9 September 30,2020 December 31,2019 September 30,2019	September 30,2020
			Book value
			11,440,272 $

			Book value
			20,188,942 $

		Contractperiod 2019.1.1~2034.3.9	Book value
			15,598,585 $

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(a) Lease liabilities designated as hedges (recorded as financial liabilities for hedging)

September 30, 2020 December 31, 2019 September 30, 2019

Cash flow hedges`：`
Exchange rate risk
Lease liability
contracts designated
as hedges
Current liabilities	$	905,017	$	1,861,026	$	1,671,806
Non-current
liabilities		10,535,255		18,327,916		13,926,779
	$	11,440,272	$	20,188,942	$	15,598,585

(b) Other equity - cash flow hedge reserve

Other equity - cash flow hedge reserve
		2020			2019
At April 1	$	792,403	($		158,841)
Add : Profit on hedge effectiveness-amount recognised
in other comprehensive income		285,545			16,756
Less : Reclassified from equity to exchange gain
for the period	(	381,555)			-
Less : Reclassified to freight revenue as the hedged
item has affected profit or loss	(	17,088)			6,000
At September 30	$	679,305	($		136,085)

		2020			2019
At January 1	$	460,138		$	-
Add : Profit (loss) on hedge effectiveness-amount
recognised in other comprehensive income		637,249	(		151,207)
Less : Reclassified from equity to exchange gain
for the period	(	381,555)			-
Less : Reclassified to freight revenue as the hedged
item has affected profit or loss	(	36,527)			15,122
At September 30	$	679,305	($		136,085)

(c) As of September 30, 2020, December 31, 2019 and September 30, 2019, there were no ineffective portion to be recognised in profit or loss for the unwritten-off cash flow hedge transactions.

(d) Information relating to the fair values of abovementioned hedging financial liabilities is provided in Note 12(3).

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K. The amounts of lease liabilities (net of the lease liabilities designated as hedges) of the Group on September 30, 2019, December 31, 2019 and September 30, 2020 are as follows:

	September 30,2020	September 30,2020	December 31, 2019	December 31, 2019	September 30, 2019	September 30, 2019
Current lease liabilities	$	8,657,465	$	8,479,576	$	9,063,383
Current lease liabilities
- related parties		965,664		596,000		599,119
Non-current lease liabilities		53,686,073		51,284,350		54,262,163
Non-current lease liabilities
- related parties		323,440		682,967		841,133
	$	63,632,642	$	61,042,893	$	64,765,798

(10) Investment property, net

Investment property, net
					2020
			Land		Buildings		Total
At January 1
Cost		$	1,415,029	$	4,788,141	$	6,203,170
Accumulated depreciation			-	(	748,100)	(	748,100)
		$	1,415,029	$	4,040,041	$	5,455,070
Opening net book amount as at		$	1,415,029	$	4,040,041	$	5,455,070
January 1
Reclassifications	(		18,209)		24,917		6,708
Depreciation			-	(	116,687)	(	116,687)
Net exchange differences	(		35)	(	91,976)	(	92,011)
Closing net book amount as at
September 30		$	1,396,785	$	3,856,295	$	5,253,080
At September 30
Cost		$	1,396,785	$	4,712,403	$	6,109,188
Accumulated depreciation			-	(	856,108)	(	856,108)
		$	1,396,785	$	3,856,295	$	5,253,080

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At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Reclassifications Depreciation Net exchange differences Closing net book amount as at September 30 At September 30 Cost Accumulated depreciation	Land Buildings Total 1,415,054 $ 5,048,676 $ 6,463,730 $ - 628,656) ( 628,656) ( 1,415,054 $ 4,420,020 $ 5,835,074 $ 1,415,054 $ 4,420,020 $ 5,835,074 $ - 168 168 - 125,191) ( 125,191) ( 9 5,165) ( 5,156) ( 1,415,063 $ 4,289,832 $ 5,704,895 $ 1,415,063 $ 5,042,694 $ 6,457,757 $ - 752,862) ( 752,862) ( 1,415,063 $ 4,289,832 $ 5,704,895 $ 2019

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

investment property are shown below:
Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period	Three-month period ended September 30,2020 52,810 $ 38,550 $ 25 $	Three-month period ended September 30,2019
		40,470 $
		41,896 $
		165 $

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Nine-month period Nine-month period
ended September 30, 2020 ended September 30, 2019
Rental revenue from the lease of the investment property $ 158,755 $ 140,800 Direct operating expenses arising from the investment property that generated rental income in the period $ 116,882 $ 126,327 Direct operating expenses arising from the investment property that did not generate rental income in the period $ 611 $ 561
B. The fair value of the investment property held by the Group as at September 30, 2020, December 31, 2019 and September 30, 2019 was $7,076,949, $7,195,945 and $7,766,942, respectively. The fair value measurements were based on the market prices of recently sold properties in the immediate vicinity of a certain property, and were classified as Level 2.
C. Information about the investment property that were pledged to others as collaterals is provided in Note 8.

(11) Other non-current assets

in Note 8. Other non-current assets
Prepayments for equipment Refundable deposits Others	September 30, 2020 12,899,455 $ 266,974 74,827 13,241,256 $	December 31, 2019 9,308,236 $ 229,095 101,051 9,638,382 $	September 30,2019
			6,072,831 $ 230,022 101,484
			6,404,337 $

Movement analysis of prepayments for equipment are as follows:

		2020
At January 1	$	9,308,236		$	4,619,738
Additions		17,097,032			8,488,706
Reclassification to property,
plant and equipment	(	12,828,735)	(		7,056,095)
Reclassification to intangible assets	(	1,875)			-
Net exchange differences	(	675,203)			20,482
At September 30	$	12,899,455		$	6,072,831

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

(12) (13)	Other current liabilities Corporate bonds payable Amount capitalised Interest rate Amount capitalised Interest rate Receipt in advance Long-term liabilities - current portion Corporate bonds - current portion Shipowner's accounts Agency accounts Others Domestic secured corporate bonds Euro-Convertible Bond Less: Discount on bonds payable Less: Current portion or exercise of put options	Three-month period Three-month period ended September 30,2020 ended September 30,2019 39,344 $ 48,457 $ 0.86%~4.10% 0.86%~4.70% Nine-month period Nine-month period ended September 30,2020 ended September 30,2019 171,441 $ 152,888 $ 0.86%~4.10% 0.86%~4.70% September 30,2020 December 31,2019 September 30,2019 5,518 $ 56,522 $ 23,604 $ 23,244,224 22,841,596 22,450,105 4,000,000 - - 1,190,725 2,366,770 853,598 1,725,660 2,453,406 3,038,912 124,791 46,015 39,836 30,290,918 $ 27,764,309 $ 26,406,055 $ September 30, 2020 December 31,2019 September 30,2019 10,000,000 $ 10,000,000 $ 10,000,000 $ 8,697,300 473,359) ( 4,000,000) ( - - 14,223,941 $ 10,000,000 $ 10,000,000 $	Three-month period Three-month period ended September 30,2020 ended September 30,2019 39,344 $ 48,457 $ 0.86%~4.10% 0.86%~4.70% Nine-month period Nine-month period ended September 30,2020 ended September 30,2019 171,441 $ 152,888 $ 0.86%~4.10% 0.86%~4.70% September 30,2020 December 31,2019 September 30,2019 5,518 $ 56,522 $ 23,604 $ 23,244,224 22,841,596 22,450,105 4,000,000 - - 1,190,725 2,366,770 853,598 1,725,660 2,453,406 3,038,912 124,791 46,015 39,836 30,290,918 $ 27,764,309 $ 26,406,055 $ September 30, 2020 December 31,2019 September 30,2019 10,000,000 $ 10,000,000 $ 10,000,000 $ 8,697,300 473,359) ( 4,000,000) ( - - 14,223,941 $ 10,000,000 $ 10,000,000 $	Three-month period Three-month period ended September 30,2020 ended September 30,2019 39,344 $ 48,457 $ 0.86%~4.10% 0.86%~4.70% Nine-month period Nine-month period ended September 30,2020 ended September 30,2019 171,441 $ 152,888 $ 0.86%~4.10% 0.86%~4.70% September 30,2020 December 31,2019 September 30,2019 5,518 $ 56,522 $ 23,604 $ 23,244,224 22,841,596 22,450,105 4,000,000 - - 1,190,725 2,366,770 853,598 1,725,660 2,453,406 3,038,912 124,791 46,015 39,836 30,290,918 $ 27,764,309 $ 26,406,055 $ September 30, 2020 December 31,2019 September 30,2019 10,000,000 $ 10,000,000 $ 10,000,000 $ 8,697,300 473,359) ( 4,000,000) ( - - 14,223,941 $ 10,000,000 $ 10,000,000 $

				10,000,000 $ -
				10,000,000 $

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

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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 June 27, 2018, the Company issued its fourteenth domestic secured corporate bonds (referred herein as the “Fourteenth Bonds”), totaling $2,000,000 at face value. The major terms of the issuance are set forth below:
(a) Period: 5 years (June 27, 2018 to June 27, 2023)
(b) Coupon rate: 0.86% fixed per annum
(c) Principal repayment and interest payment
- Repayments for the Fourteenth Bonds are paid annually at coupon rate, starting a year from the issuing date. The principal of the Fourteenth Bonds shall be repaid in lump sum at maturity.
(d) Collaterals

The Fourteenth Bonds are secured and are guaranteed by First Commercial Bank.

C. On September 29, 2020, the Company issued the first unsecured overseas convertible bonds (the “First Overseas Convertible Bonds”), totaling USD300,000 at the face value. The major terms of the issuance are set forth below:
(a) Period: 5 years (September 29, 2020 to September 29, 2025)
(b) Coupon rate: 0% fixed per annum
(c) Principal repayment:
- Except for the First Overseas Convertible Bonds previously redeemed, repurchased and retired by the Company, or converted by the bondholders of the First Overseas Convertible Bonds (the “bondholders”), the Company will redeem the First Overseas Convertible Bonds in USD on the maturity date at the price of the face value plus 0.0% gross yield per annum of the face value, calculated semi-annually.
(d) Conversion period:
- Except for the First Overseas Convertible Bonds previously redeemed or repurchased, or the stop transfer period as specified in the terms of the bond indenture for the First Overseas Convertible Bonds (the “bond indenture”) or the laws/regulations, the bondholders have the right to ask for the conversion of the First Overseas Convertible Bonds into the common stocks newly issued by the Company during the period from the date after 90 days of the issuance of the First Overseas Convertible Bonds to (1) 10 days before the maturity date, or

~58~

(2) 5 business days before the date on which the bondholders exercise the put options or the Company exercise the early redemption (excluding the maturity date).

(e) Conversion price:
The conversion price of the First Overseas Convertible Bonds is NT$18.2 (in dollars), 115.19% of the reference price. The reference price refers to the closing price of the Company’s common stocks on the Taiwan Stock Exchange on the pricing date, which was NT$15.80 (in dollars), translated using the exchange rate of US$1 to NT$28.9910.
(f) Put options:

The bondholders have no right to require the Company to redeem the First Overseas Convertible Bonds, in whole or in part, unless the following events occur:

i. Except for the First Overseas Convertible Bonds previously redeemed, repurchased and retired, or converted, the bondholders have the right to require the Company to redeem the First Overseas Convertible Bonds, in whole or in part, on the date three years after the issuance at the price of the face value plus 0.0% per annum of the face value (calculated semi-annually) as the interests (the “early redemption amount”).
ii. The bondholders have the right to require the Company to redeem the First Overseas Convertible Bonds, in whole or in part, at the early redemption amount if the Company’s common stocks are unlisted from the Taiwan Stock Exchange or ceased trading over 30 consecutive business days.
iii. The bondholders have the right to require the Company to redeem the First Overseas Convertible Bonds, in whole or in part, at the early redemption amount if any changes occur to the Company’s controlling power as defined in the bond indenture.
The exercise of the aforementioned put options by the bondholders and the acceptance of the bondholders’ requests by the Company shall be conducted in accordance with the procedures as specified in the bond indenture. The Company will redeem the First Overseas Convertible Bonds in cash on the payment date as specified in the bond indenture.

The early redemption amount is first translated into NTD using the fixed exchange rate, and it was then translated from NTD to USD using the exchange rate on the day for repayment (by reference to the fixing rate at 11 a.m. quoted by Taipei Forex Inc.).

(g) Redemption:

The Company may redeem the First Overseas Convertible Bonds early when one of the following conditions is met:

i. The Company may redeem the First Overseas Convertible Bonds, in whole, at the early redemption amount if the closing price of the Company’s common stocks on the Taiwan Stock Exchange (translated into USD based on the exchange rate on the day) reaches over 130% of the total amount of early redemption amount (defined later) multiplied by the conversion price on the day (translated into USD at the fixed exchange rate) and divided by the face value for 20 trade dates out of 30 consecutive business days during the period

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from the day after three years of the issuance to the maturity date.

ii. The Company may redeem the outstanding First Overseas Convertible Bonds, in whole, at the early redemption amount if over 90% of the First Overseas Convertible Bonds have been redeemed, converted, repurchased and retired.
iii. The Company may redeem the First Overseas Convertible Bonds, in whole, at the early redemption amount if changes to the R.O.C.’s tax regulations occur after the issue date and cause the Company to bear more tax or to pay extra interest expenses or increase in costs for the First Overseas Convertible Bonds. Also, the bondholders have no right to require the Company to cover extra tax and expense for their nonparticipation of the redemption.
The early redemption amount is first translated into NTD using the fixed exchange rate, and it was then translated from NTD to USD using the exchange rate on the day for repayment (by reference to the fixing rate at 11 a.m. quoted by Taipei Forex Inc.).
D. Regarding the issuance of convertible bonds, the equity conversion options amounting to $379,915 were separated from the liability component and were recognised in ‘capital surplus— share options’ in accordance with IAS 32. The call options and redemption embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets or liabilities at fair value through profit or loss’ in net amount in accordance with IAS 39 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.

(14) Long-term loans

Long-term loans
		September 30,2020			December 31,2019			September 30,2019
Secured bank loans	$		58,867,121		$	55,633,704		$	59,404,153
Unsecured bank loans			48,898,574			51,053,234			53,163,805
Add : Unrealised foreign
exchange (gains)
losses	(		68,368)			49,713			257,342
Less: Hosting fee credit	(		36,761)	(		35,083)	(		33,470)
			107,660,566			106,701,568			112,791,830
Less: Current portion
(recorded as other
current liabilities)	(		23,244,224)	(		22,841,596)	(		22,450,105)
	$		84,416,342		$	83,859,972		$	90,341,725
Borrowing period			2020.11~2030.06			2020.01~2029.11			2019.11~2028.12
Interest rate			0.93%~5.15%			1.12%~5.15%			0.95%~5.15%

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

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(15) Other non-current liabilities

Other non-current liabilities
	September	30,2020	December	31,2019	September	30,2019
Accrued pension liabilities	$	2,972,459	$	3,028,061	$	2,909,655
Credit balance for investments
accounted for using the
equity method		-		-		237,054
Guarantee deposits received		308,604		325,987		359,852
Unrealised gain on sale and
leaseback		7,876		14,517		18,606
	$	3,288,939	$	3,368,565	$	3,525,167

(16) Pension

A. (a) The Company and its domestic subsidiary-TTSC have a defined benefit pension plan in accordance with the Labor Standards Act (“the Act”), 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 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. The Company and its domestic subsidiary-TTSC 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 subsidiary-TTSC 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 subsidiary-TTSC will make contributions for the deficit by next March.
(b) The employees with R.O.C. nationality of the Group’s subsidiaries, EGH, GMS and EMU, 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) For the aforementioned pension plan, the Group recognised pension costs and expenses of, $48,771, $73,139, $146,625 and $218,581 for the three-month and nine-month periods ended September 30, 2019 and 2020, respectively.
(d) Expected contributions to the defined benefit pension plans of the Company and its subsidiary-TTSC for the nine-month period ended September 30, 2020 amount to $108,699.

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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 and expenses under defined contribution pension plans of the Group for the three-month and nine-month periods ended September 30, 2020 and 2019 were $76,507, $61,225, $226,804 and $191,340, respectively.

(17) Capital stock

A. As of September 30, 2020, the Company’s authorized capital was $70,000,000, and the paid-in capital was $48,129,738, consisting of 4,812,974 thousand shares of common stocks with a par value of NT$10 (in dollars) per share. All proceeds from shares issued have been collected.
B. On June 24, 2020, the shareholders meeting of the Company resolved to increase authorized capital from $50,000,000 to $70,000,000. All proceeds from share issuance was completed on July 22, 2020.
C. On August 13, 2019, the Board of Directors of the Company resolved to increase capital by $3,000,000 by issuing 300,000 thousand shares at a par value of NT$10 (in dollars) per share, of which 30,000 thousand shares are reserved for employee preemption. The proposal of capital increase has been reported and became effective on December 3, 2019. The total amount of shares was $3,333,934. All proceeds from share issuance was completed on December 31, 2019.
D. On September 30, 2020, December 31, 2019 and September 30, 2019, the numbers of the Company’s shares held by its associate accounted for using equity method, EITC, were all 25,254 thousand shares.

(18) 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 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.

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2020

					2020
At January 1 Expired unclaimed dividends Proceeds from issuance of overseas convertible bonds Recognition of change in equity of associates in proportion to the Company's ownership At September 30 At January 1 Recognition of change in equity of associates in proportion to the Company's ownership At September 30	Share premium 9,167,217 $ - - - 9,167,217 $ Share premium 8,833,283 $ - 8,833,283 $		Employe stock options exercised 110,956 $ - 379,915 - 490,871 $		Adjustments to share of changes in equity of associates and joint ventures 2,122,105 $ - - 574 2,122,679 $ 2019	Donated assets 446 $ - - - 446 $		Others 6,713 $ 37 - - 6,750 $

		Share premium 8,833,283 $ - 8,833,283 $		Employe stock options exercised 93,890 $ - 93,890 $	Adjustments to share of changes in equity of associates and joint ventures 2,124,813 $ 8,407) ( 2,116,406 $		Donated assets 446 $ - 446 $		Others
									6,713 $ -
									6,713 $

(19) Retained earnings

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

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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. The appropriation of earnings of year 2018 as resolved by the shareholders meeting of the Company on June 21, 2019 is as follows:

Year ended December 31, 2018 Accrual of legal reserve $ 29,392

F. For the year ended December 31, 2019, the Company’s net income after tax plus other items including current unappropriated retained earnings are negative, thus the Company will not provision legal reserve. Additionally, the shareholders meeting of the Company during its meeting on June 24, 2020 adopted a resolution to participate will retain attributable earnings for future operating plan, thus the Company will not appropriate shareholders’ bonus.

(20) Other equity items

2020

At January 1 Revaluation – gross Revaluation – tax Revaluation – associates retained earnings – associates Cash flow hedges: – Fair value gain in the period – Group – Group – tax – Associates Currency translation differences: – Group – Group – tax – Associates At September 30	Unrealised gains (losses) on valuation	Hedging reserve	Currency translation	Total
	1,411,638 $ 137,823) ( 8,932 28,187 1,268) ( - - - - - - 1,309,666 $	579,757 $ - - - - 219,167 53,753) ( 477,703 - - - 1,222,874 $	856,773) ($ - - - - - - - 1,456,530) ( 13 166,846) ( 2,480,136) ($	1,134,622 $ 137,823) ( 8,932 28,187 1,268) ( 219,167 53,753) ( 477,703 1,456,530) ( 13 166,846) ( 52,404 $

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2019

At January 1 Revaluation – gross Revaluation – tax Revaluation – associates Revaluation transferred to retained earnings – associates Cash flow hedges: – Fair value loss in the period – Group – Group – tax – Associates Currency translation differences: – Group – Group – tax – Associates At September 30	Unrealised gains (losses) on valuation Hedging reserve 1,234,225 $ 58,649) ($ 20,368 - 4,523 - 43,885 - 115 - - 136,085) ( - 38,285 - 329,913) ( - - - - - - 1,303,116 $ 486,362) ($	Currency translation	Total
		17,580 $ - - - - - - - 248,012 5) ( 36,883 302,470 $	1,193,156 $ 20,368 4,523 43,885 115 136,085) ( 38,285 329,913) ( 248,012 5) ( 36,883 1,119,224 $

(21) Operating revenue

Operating revenue
Revenue from contracts with customers Other - ship rental and slottage income Revenue from contracts with customers Other - ship rental and slottage income	Three-month period ended September 30,2020 54,523,717 $ 518,401 55,042,118 $ Nine-month period ended September 30,2020 140,741,961 $ 1,646,158 142,388,119 $	Three-month period ended September 30,2019
		49,083,346 $ 772,631
		49,855,977 $
		Nine-month period ended September 30,2019
		140,917,485 $ 1,747,285
		142,664,770 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of services over time and at a point in time (terminal and other services) in the following major businesses (Ship-owners, agents and terminals are classified as transportation department) :

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Three-month period ended September 30, 2020 Ship-owners Total segment revenue 57,207,467 $ Inter-segment revenue 5,663,958) ( Revenue from external customer contracts 51,543,509 $ Three-month period ended September 30, 2019 Ship-owners Total segment revenue 49,286,971 $ Inter-segment revenue 3,421,008) ( Revenue from external customer contracts 45,865,963 $ Nine-month period ended September 30, 2020 Ship-owners Total segment revenue 145,025,037 $ Inter-segment revenue 12,561,317) ( Revenue from external customer contracts 132,463,720 $ Nine-month period ended September 30, 2019 Ship-owners Total segment revenue 142,602,050 $ Inter-segment revenue 10,989,780) ( Revenue from external customer contracts 131,612,270 $	Agents Terminals 713,117 $ 3,702,058 $ 127,187 1,921,574) ( 840,304 $ 1,780,484 $ Agents Terminals 2,405,340 $ 3,764,420 $ 1,481,950) ( 1,944,680) ( 923,390 $ 1,819,740 $ Agents Terminals 4,760,382 $ 10,010,380 $ 2,307,585) ( 5,043,156) ( 2,452,797 $ 4,967,224 $ Agents Terminals 6,930,307 $ 11,094,656 $ 4,301,688) ( 5,866,173) ( 2,628,619 $ 5,228,483 $	Other 359,420 $ - ( 359,420 $ Other 474,253 $ - ( 474,253 $ Other 858,220 $ - ( 858,220 $ Other 1,448,113 $ - ( 1,448,113 $	Total 61,982,062 $ 7,458,345) 54,523,717 $ Total 55,930,984 $ 6,847,638) 49,083,346 $ Total 160,654,019 $ 19,912,058) 140,741,961 $ Total 162,075,126 $ 21,157,641) 140,917,485 $

B. Contract assets and liabilities

The Group has recognised the following revenue-related contract assets and liabilities:

Contract assets: Contract assets relating to marine freight income Contract liabilities: Contract liabilities – unearned marine freight income (	September 30, 2020 December 31, 2019 2,387,617 $ 1,693,497 $ 3,930,913) $ 2,213,538) ($ (	September 30, 2019 1,598,677 $ 2,235,555) $ (	January 1, 2019 2,244,065 $ 1,774,392) $

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Revenue recognised that was included in the contract liability balance at the beginning of the period:

period:
Marine freight income Marine freight income	Three-month period ended September 30,2020 - $ Nine-month period ended September 30,2020 2,213,538 $	Three-month period ended September 30,2019
		- $
		Nine-month period ended September 30,2019
		1,774,392 $

(22) Other income and expenses, net

Net gains on disposal of property, plant and equipment

(23) Interest income

Interest income from bank deposits Interest income from financial assets measured at amortised cost

Three-month period ended September 30,2020 37,813 $ Nine-month period ended September 30,2020 35,881 $ Three-month period ended September 30,2020 53,584 $ 4,866 58,450 $ Nine-month period ended September 30,2020 256,008 $ 27,913 283,921 $	Three-month period ended September 30,2019
	19,304 $
	Nine-month period ended September 30,2019
	376,824 $
	Three-month period ended September 30,2019
	179,914 $ 3,431
	183,345 $
	Nine-month period ended September 30,2019
	533,401 $ 35,518
	568,919 $

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(24) Other income

Other income
			Three-month period		Three-month period
		ended September 30,2020		ended September 30,2019
Rent income		$	54,830	$	48,063
Dividend income	(		182)		121
Gain recognised in bargain purchase			3,415		-
transaction
Other income, others			97,661		20,933
		$	155,724	$	69,117
			Nine-month period		Nine-month period
		ended September 30, 2020		ended September 30, 2019
Rent income		$	164,738	$	148,512
Dividend income			73,065		89,759
Gain recognised in bargain purchase			3,415		-
transaction
Other income, others			184,161		96,054
		$	425,379	$	334,325
Other gains and losses
			Three-month period		Three-month period
		ended September 30,2020		ended September 30,2019
Net losses on disposal of investments		$	40	($	48,632)
Gains arising from lease modifications			1,586		3,297
Net currency exchange gains			481,906		117,648
Impairment loss on available-for-sale			2,609		-
financial assets
Net gains on disposal of right-of-use
assets			22,605		13,664
Depreciation on investment property	(		38,528)	(	41,548)
Other non-operating expenses	(		26,838)	(	30,417)
		$	443,380	$	14,012

(25) Other gains and losses

~68~

			Nine-month period			Nine-month period
		ended September 30,2020			ended September 30,2019
Net gains (losses) on disposal of		$	201	($		48,610)
investments
Gains arising from lease modifications			2,051			5,603
Net currency exchange gains			691,675			231,488
Impairment loss on available-for-sale			2,609			-
financial assets
Net gains on disposal of right-of-use
assets			56,282			27,822
Depreciation on investment property	(		116,687)	(		125,191)
Other non-operating expenses	(		87,862)	(		96,197)
		$	548,269	($		5,085)

(26) Finance costs

Finance costs
			Three-month period		Three-month period
		ended September 30,2020		ended September 30,2019
Interest expense:
Bank loans		$	392,585	$	687,015
Corporate bonds			26,020		25,508
Lease liabilities			646,095		787,547
			1,064,700		1,500,070
Less: Capitalized borrowing costs	(		39,344)	(	48,457)
		$	1,025,356	$	1,451,613
			Nine-month period		Nine-month period
		ended September 30,2020		ended September 30,2019
Interest expense:
Bank loans		$	1,580,252	$	2,164,503
Corporate bonds			76,204		75,692
Lease liabilities			2,091,180		2,139,188
			3,747,636		4,379,383
Less: Capitalized borrowing costs	(		171,441)	(	152,888)
		$	3,576,195	$	4,226,495

~69~

(27) Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets Other operating costs and expenses Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets Other operating costs and expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	Three-month period ended September 30,2020 2,389,394 $ 2,243,318 2,868,624 76,834 36,409,869 43,988,039 $ Nine-month period ended September 30,2020 7,023,701 $ 6,627,100 8,903,893 230,488 102,864,113 125,649,295 $ Three-month period ended September 30,2020 1,989,860 $ 164,774 125,278 109,482 2,389,394 $ Nine-month period ended September 30,2020 5,842,552 $ 497,613 373,429 310,107 7,023,701 $	Three-month period ended September 30,2019
		2,237,134 $ 2,131,302 3,009,436 79,143 41,064,833 48,521,848 $
		Nine-month period ended September 30, 2019
		7,016,685 $ 6,173,582 8,846,034 235,885 117,022,433
		139,294,619 $

(28) Employee benefit expense

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.

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B. (a) For the nine-month period ended September 30, 2019, employees’ compensation was accrued at $1,008, while directors’ remunerations was accrued at $283. The aforementioned amount was recognised in salary expenses.
(b) In accordance with the Articles of Incorporation of the Company, based on the profit for the nine-month period ended September 30, 2020, employees’ compensation and directors’ remunerations were accrued at $59,218 and $16,641, respectively. The aforementioned amount was recognised in salary expenses.

Information about the appropriation of employees’, directors’ and supervisors’ remuneration by the Company as proposed by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(29) Income tax

A. Income tax expense

(a) Components of income tax expense:

Current tax: Current tax on profits for the period Tax on undistributed surplus earnings Prior year income tax (overestimation) underestimation Total current tax Deferred tax: Origination and reversal of temporary differences Total deferred tax Income tax expense	Three-month period Three-month period ended September 30,2020 ended September 30,2019 444,859 $ 330,614 $ - 24,342 614 3,632 445,473 358,588 670,212 134,367) ( 670,212 134,367) ( 1,115,685 $ 224,221 $

~71~

Current tax: Current tax on profits for the period Tax on undistributed surplus earnings Prior year income tax underestimation (overestimation) Total current tax Deferred tax: Origination and reversal of temporary differences Total deferred tax Income tax expense	Nine-month period Nine-month period ended September 30,2020 ended September 30,2019 873,065 $ 963,570 $ - 24,342 51,813 7,457) ( 924,878 980,455 751,841 228,648) ( 751,841 228,648) ( 1,676,719 $ 751,807 $

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

follows:
			Three-month period			Three-month period
		ended September 30,2020			ended September 30,2019
Changes in fair value of financial		$	1,266	($		11,648)
assets at fair value through other
comprehensive income (loss)
Exchange differences on
translating the financial
statements of foreign
operations	(		14,723)	(		5,378)
	($		13,457)	($		17,026)
			Nine-month period			Nine-month period
		ended September 30,2020			ended September 30,2019
Changes in fair value of financial	($		8,932)	($		4,523)
assets at fair value through other
comprehensive loss
Exchange differences on
translating the financial
statements of foreign
operations	(		13)			5
Remeasurement of defined benefit
obligations			159			-
Cash flow hedges			53,753	(		38,285)
		$	44,967	($		42,803)

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Three-month period Three-month period ended September 30, 2020 ended September 30, 2019

Reduction in capital surplus caused by recognition of foreign investees based on the shareholding ratio ($ 17) ($ 24) Nine-month period Nine-month period ended September 30, 2020 ended September 30, 2019 Reduction in capital surplus caused by recognition of foreign investees based on the shareholding ratio ($ 63) ($ 76)

B. The Company and its subsidiary-TTSC’s income tax returns through 2017 and 2018 have been assessed and approved by the Tax Authority, respectively.
(30) Earnings per share

Earnings per share
Basic earnings per share Net profit attributable to ordinary shareholders of the parent Diluted earnings per share Net profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Euro-Convertible Bond Employees’ compensation Net profit attributable to ordinary shareholders of the parent	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) 8,185,212 $ 4,812,974 1.70 $ 8,185,212 $ 4,812,974 - - 512 10,389 - 2,809 8,185,724 $ 4,826,172 1.70 $ Three-monthperiod ended September 30,2020
	Amount after tax 8,185,212 $ 8,185,212 $ - 512 - 8,185,724 $

~73~

Basic earnings per share
Net loss attributable to
ordinary shareholders of the
parent
Diluted earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation
Net profit attributable to
ordinary shareholders of the
parent plus assumed
conversion of all dilutive
potential ordinary shares
Basic earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Diluted earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Assumed conversion of all
dilutive potential ordinary
shares
Euro-Convertible Bond
Employees’ compensation
Net profit attributable to
ordinary shareholders of the
parent

Weighted average
number of ordinary
shares outstanding
Earnings per share
Amount after tax
(share in thousands)
(in dollars)
135,579
$ 4,512,974
0.03
$ 135,579
$ 4,512,974
-
14
135,579
$ 4,512,988
0.03
$ Weighted average
number of ordinary
shares outstanding
Earnings per share
Amount after tax
(share in thousands)
(in dollars)
10,935,991
$ 4,812,974
2.27
$ 10,935,991
$ 4,812,974
512
3,488
-
3,736
10,936,503
$ 4,820,198
2.27
$ Three-monthperiod ended September 30,2019
Nine-monthperiod ended September 30,2020

Amount after tax
10,935,991
$ 10,935,991
$ 512
-
10,936,503
$

~74~

Basic earnings per share Net profit attributable to ordinary shareholders of the parent Diluted earnings per share Net profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Net profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) 340,385 $ 4,512,974 0.08 $ 340,385 4,512,974 - 78 340,385 $ 4,513,052 0.08 $ Nine-monthperiod ended September 30,2019

(31) Transactions with non-controlling interest
A. Acquisition of additional equity interest in a subsidiary
- Subsidiary, EGH, purchased 3% of outstanding shares of ECN for cash of $650 (approx. USD 21) on December 10, 2019. The carrying amount of non-controlling interest in ECN was $2,019 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by
- $2,019 and an increase in the equity attributable to owners of the parent by $1,369.
B. The Group did not participate in the capital increase raised by a subsidiary proportionally to its interest to the subsidiary
- Indirect subsidiary, ECO, of the Group increased its capital by issuing new shares on May 31, 2019. The subsidiary, EGH, did not acquire shares proportionally to its interest. As a result, the Group decreased its share interest by 25%. The transaction increased non-controlling interest by $6,387 and decreased the equity attributable to owners of parent by $3,006.
C. For the nine-month period ended September 30, 2020, the amount of cash dividends paid to noncontrolling interests was $198,535.

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(32) Business combinations

On June 30, 2020, the Board of Directors of the subsidiary, EGH, resolved to make an equity transaction. EGH acquired 40% and 60% equity interests of EGP from the other related party, EIS, and a non-related party, respectively, and obtained the control over EGP. The transaction date was July 1, 2020 and the transaction amount was PHP 239,500 (approx. $141,760).

The company primarily provides cargo and shipping agency services in the Philippines. 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.

A. 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 non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets at the acquisition date:

acquisition date:

Purchase consideration
Cash paid
Fair value of the identifiable assets
acquired and liabilities assumed
Cash and cash equivalents
Notes receivable
Accounts receivable
Current income tax assets
Prepayments
Other current assets
Non-current financial assets at fair value
through other comprehensive income
Property, plant and equipment, net
Right-of-use assets
Intangible assets
Other non-current assets
Deferred tax assets
Accounts payable
Other payables
Current income tax liabilities
Other current liabilities
Current lease liabilities
Deferred income tax liabilities
Non-current lease liabilities
Other non-current liabilities
Total identifiable net assets
Goodwill/Gain from bargain purchase

July1,2020

141,760
$ 413,198
3,742
200,995
2,565
36,966
204,677
118
117,256
2,419
4,823
1,498
3,766
119,922)
(
462,644)
(
2,462)
(
194,503)
(
1,575)
(
41,429)
(
1,011)
(
23,302)
(
145,175
3,415)
($

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B. As at September 30, 2020, the fair value of the acquired identifiable intangible assets – customer relationship were estimated to be $4,441.
C. Had EGP been acquired from January 1, 2020, the consolidated statement of comprehensive income for the three-month and nine-month periods ended September 30, 2020 would show operating revenue and profit before income tax of $10,535, $19,706, $26,695, and $42,789, respectively.

(33) Supplemental cash flow information

A. Investing activities with partial cash payments
(a) Property, plant and equipment

(a) Property, plant and equipment
			Nine-month period			Nine-month period
		ended September 30,2020			ended September 30,2019
Purchase of property, plant and	$		4,799,715	$		6,081,408
equipment
Add: Opening balance of payable
on equipment			455,427			34,258
Less: Ending balance of payable
on equipment	(		150,285)	(		694,411)
Cash paid during the period	$		5,104,857	$		5,421,255
(b) Prepayments for equipment (recorded			as other non-current assets)
			Nine-month period			Nine-month period
		ended September 30,2020			ended September 30,2019
Purchase of prepayments for equipment	$		17,097,032	$		8,488,706
Add: Opening balance of payable
on prepayments for
equipment			-			194
Less: Ending balance of payable
on prepayments for
equipment	(		245,748)	(		3,967)
Capitalized borrowing
costs	(		171,441)	(		152,888)
Cash paid during the period	$		16,679,843	$		8,332,045
(c) Cash dividend received
			Nine-month period			Nine-month period
		ended September 30,2020			ended September 30,2019
Dividend income	$		666,174	$		894,638
Add: Opening balance of
dividends receivable			-			-
Less: Ending balance of
dividends receivable	(		194,135)	(		374,935)
Cash received during the period	$		472,039	$		519,703

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(d) The balances of the assets and liabilities of consolidated subsidiaries for the current period are as follows:

are as follows:

Cash and cash equivalents
Notes receivable
Accounts receivable
Current income tax assets
Prepayments
Other current assets
Non-current financial assets at fair value
Property, plant and equipment, net
Right-of-use assets
Intangible assets
Other non-current assets
Deferred tax assets
Accounts payable
Other payables
Current income tax liabilities
Other current liabilities
Current lease liabilities
Deferred income tax liabilities
Non-current lease liabilities
Other non-current liabilities
Goodwill/Gain from bargain purchase
Cash paid for the acquisition
Cash and cash equivalents
Net cash paid for the acquisition

July1,2020

413,198
$ 3,742
200,995
2,565
36,966
204,677
118
117,256
2,419
4,823
1,498
3,766
119,922)
(
462,644)
(
2,462)
(
194,503)
(
1,575)
(
41,429)
(
1,011)
(
23,302)
(
3,415)
(
141,760
$ 141,760
$ 413,198)
(
271,438)
($

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(34) Changes in liabilities from financing activities

Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities
Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities and financial liabilities for hedging Liabilities from financing activities-gross At January 1, 2020 106,701,568 $ 325,987 $ 81,231,835 $ 188,259,390 $ Changes in cash flow from financing activities 3,269,876 6,048) ( 8,813,134) ( 5,549,306) ( Acquired from business combinations - 14 2,586 2,600 Additions to lease liabilities - - 3,597,834 3,597,834 Remeasurement of lease liabilities - - 1,025,350 1,025,350 Changes in other non-cash items - - 3,524) ( 3,524) ( Impact of changes in foreign exchange rate 2,310,878) ( 11,349) ( 1,968,033) ( 4,290,260) ( At September 30, 2020 107,660,566 $ 308,604 $ 75,072,914 $ 183,042,084 $ Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities (lease payable) and financial liabilities for hedging Liabilities from financing activities-gross At January 1, 2019 99,360,501 $ 347,115 $ 11,639,698 $ 111,347,314 $ Adjustments under new standards - - 60,563,079 60,563,079 Changes in cash flow from financing activities 12,929,233 9,901 8,826,760) ( 4,112,374 Additions to lease liabilities - - 17,068,296 17,068,296 Remeasurement of lease liabilities - - 667,292) ( 667,292) ( Impact of changes in foreign exchange rate 502,096 2,836 587,362 1,092,294 At September 30, 2019 112,791,830 $ 359,852 $ 80,364,383 $ 193,516,065 $

	99,360,501 $ - 12,929,233 - - 502,096 112,791,830 $	347,115 $ - 9,901 - - 2,836 359,852 $	11,639,698 $ 60,563,079 8,826,760) ( 17,068,296 667,292) ( 587,362 80,364,383 $	111,347,314 $ 60,563,079 4,112,374 17,068,296 667,292) ( 1,092,294 193,516,065 $

7. RELATED PARTY TRANSACTIONS

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

LATED PARTY TRANSACTIONS
Names of related parties and their relationship with the Group

Names of related parties

Relationship with the Group

Evergreen International Storage and Transport Corp. (EITC)
Eva Airways Corp. (EVA)
Evergreen Security Corp. (ESC)
Charng Yang Development Co., Ltd. (CYD)
Taipei Port Container Terminal Corp. (TPCT)
Ningbo Victory Container Co. Ltd. (NVC)
Qingdao Evergreen C&T Co., Ltd. (QECT)
Green Peninsula Agencies Sdn. Bhd. (GPP)
Luanta Investment (Netherlands) N.V. (Luanta)
Balsam Investment (Netherlands) N.V. (Balsam)
Italia Marittima S.p.A. (ITS)
Colon Container Terminal S.A. (CCT)
PT. Evergreen Shipping Agency Indonesia (EMI)
Evergreen Shipping Agency Co. (U.A.E) LLC (UAE)

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

~79~

Names of related parties

Relationship with the Group

Evergreen Shipping Agency Lanka (Private) Limited (ELK)

VIP Greenport Joint Stock Company (VGP) Ics Depot Services Sdn. Bhd. (IDS)

Evergreen Marine (Latin America) S.A. (ELA)

Evergreen International Corp. (EIC) Evergreen Airline Service Corp. (EGAS) Chang Yung-Fa Charity Foundation (CYFC) Chang Yung-Fa Foundation (CYFF) Evergreen Steel Corp. (EGST) Eever Accord Construction Corporation (EAC) Evergreen Aviation Technologies Corporation (EGAT) Evergreen Sky Catering Corporation (EGSC) Evergreen Air Cargo Services Corporation (EGAC)

Evergreen Aviation Precision Corporation (EGAP)

Central Reinsurance Corporation(CRC) Evergreen International S.A.(EIS) Evergreen Marine (Singapore) Pte. Ltd.(EMS) Gaining Enterprise S.A. (GESA) Evergreen Insurance Company Ltd. (EINS) Evergreen Shipping Agency (America) Corporation (EGA) Evergreen Shipping Agency (Japan) Corporation (EGJ)

Evergreen Shipping Agency Philippines Corporation (EGP)

Evergreen International Myanmar Co., Ltd. (EIM) Chestnut Estate B.V. (Chestnut) Advanced Business Process, Inc. (ABPI) Unigreen Marine S.A.(UMS) Evergreen Logistics Philippines Corp. (ELCP) Round the World S.A. (RTWSA) Directors, General manager and Vice General Manager

Associate (An associate since March 1, 2019) Associate Associate Associate

(An subsidiary since March 1, 2020) Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party (Has been merged with FGAT on February 28, 2019)

Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party (An subsidiary since July 1, 2020) Other related party Other related party Other related party Other related party Other related party Other related party Key management

~80~

(2) Significant related party transactions and balances

A. Operating revenue:

nificant related party transactions and balances Operating revenue:
Three-month period ended September 30,2020 Sales of services: Associates 538,125 $ Other related parties 3,051,368 3,589,493 $ Nine-month period ended September 30, 2020 Sales of services: Associates 1,466,584 $ Other related parties 8,901,136 10,367,720 $	Three-month period ended September 30,2019 280,612 $ 3,579,226 3,859,838 $
	Nine-month period ended September 30,2019
	1,445,870 $ 10,150,647
	11,596,517 $

The business terms on which the Group transacts with related parties are of no difference from those with non-related parties.

B. Purchases:

those with non-related parties. Purchases:
Purchases of services: Associates Other related parties Purchases of services: Associates Other related parties	Three-month period ended September 30,2020 887,395 $ 1,942,614 2,830,009 $ Nine-month period ended September 30,2020 2,608,058 $ 5,185,422 7,793,480 $	Three-month period ended September 30, 2019
		931,412 $ 1,915,652
		2,847,064 $
		Nine-month period ended September 30,2019
		2,443,238 $ 5,667,909
		8,111,147 $

Goods and services are purchased from associates and other related parties on normal commercial terms and conditions.

~81~

C. Receivables from related parties:

. Accounts receivable: Associates Other related parties Subtotal Other receivables: Associates -EVA -EITC -Other Other related parties -Other Subtotal Total	September 30,2020 82,428 $ 616,408 698,836 $ 194,406 $ - 3,738 3,023 201,167 $ 900,003 $	December 31,2019 121,156 $ 659,406 780,562 $ - $ - 1,818 18,796 20,614 $ 801,176 $	September 30,2019
			84,280 $ 855,913
			940,193 $
			375,205 $ - 4,711 21,801
			401,717 $
			1,341,910 $

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

D. Payables to related parties:

from related parties. Payables to related parties:
. Accounts payable: Associates Other related parties Subtotal Other payables: Associates Other related parties Subtotal Total	September 30,2020 110,739 $ 234,060 344,799 $ 14,856 $ 113,213 128,069 $ 472,868 $	December 31,2019 143,074 $ 268,028 411,102 $ 31,825 $ 149,671 181,496 $ 592,598 $	September 30, 2019
			54,193 $ 214,135
			268,328 $
			23,887 $ 176,943
			200,830 $
			469,158 $

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

~82~

E. Property transactions:

(a) Acquisition of property, plant and equipment:

		Three-month period		Three-month period
	ended September 30,2020		ended September 30,2019
Associates	$	-	$	278
Other related parties		1,454		172
	$	1,454	$	450
		Nine-month period		Nine-month period
	ended September 30,2020		ended September 30,2019
Associates	$	8,570	$	2,296
Other related parties		74,787		172
	$	83,357	$	2,468

(b) Disposal of property, plant and equipment:

Disposal Gain on proceeds disposal - $ - $ Disposal Gain on proceeds disposal - $ - $ ended September 30,2020 Three-month period ended September 30,2020 Nine-month period	Three-month period ended September 30, 2019	Three-month period ended September 30, 2019
	Disposal Gain on proceeds disposal - $ - $ ended September 30, 2019 Nine-month period	Gain on disposal
		- $
Disposal proceeds - $	Disposal Gain on proceeds disposal 149 $ 14 $

F. Leasing arrangements - lessee
(a) The Group leases buildings, ships as well as loading and unloading equipment from associates

and other related parties. Rental contracts are typically made for periods of 2 to 10 years, rents are paid in accordance with the contract terms.

(b) Acquisition of right-of-use assets:

The Group leases buildings, ships as well as loading and unloading equipment from associates

and other related parties under IFRS 16 ‘Leases’. Accordingly, on January 1, 2019, the Group increased ‘right-of-use asset’ by $3,196,381.

(c) Lease liabilities:
i. Outstanding balance:

se liabilities: utstanding balance:
Associates Other related parties	September 30,2020 530,269 $ 758,835 1,289,104 $	December 31,2019 791,302 $ 487,665 1,278,967 $	September 30,2019
			919,373 $ 520,877
			1,440,250 $

~83~

ii. Interest expense:

	ii. Interest expense:
					Three-month period			Three-month period
				ended September 30,2020				ended		September 30,2019
	Associates			$		7,826		$			22,045
	Other related parties					16,673					4,885
				$		24,499		$			26,930
					Nine-month period			Nine-month period
				ended September 30,2020				ended		September 30,2019
	Associates			$		22,970		$			44,359
	Other related parties					24,363					15,144
				$		47,333		$			59,503
(d)	Lease liabilities designated as			hedges:
			September		30, 2020	December	31,2019			September 30,2019
	Associates		$		-	$		94,049		$	108,909
	Other related parties				-		610,456				862,629
			$		-	$	704,505			$	971,538
G. Agency accounts:
.			September		30,2020	December	31, 2019			September 30,2019
Debit balance of agency accounts:
	Associates	$			-	$		513		$	772
	Other related parties
	-EIC				635,892		337,038				317,913
	-EGA			1,018,837				-			570,724
	-Other				-			98,580			34,995
		$		1,654,729		$	436,131			$	924,404
.			September		30,2020	December	31,2019			September 30,2019
Credit balance of agency accounts:
	Associates	($			73,263)	($	135,281)		($		154,600)
	Other related parties
	-EGJ	(			338,307)	(	523,778)		(		397,799)
	-Other				-	(		49,274)			-
		($			411,570)	($	708,333)		($		552,399)

~84~

H. Shipowner’s accounts:

Shipowner’s accounts:
.	September	30,2020		December	31,2019		September	30,2019
Debit balance of shipowner’s accounts:
Associates
-ITS	$	-	$		-		$	407,478
Other related parties
-EIS		324,599			-			-
-GESA		20,102			28,957			28,700
	$	344,701	$		28,957		$	436,178
.	September	30,2020		December	31,2019		September	30,2019
Credit balance of shipowner’s	accounts:
Associates
-ITS	($	127,143)	($		277,877)		$	-
Other related parties
-EIS		-	(		1,027,141)	(		168,314)
-EMS	(	1,063,582)	(		1,061,752)	(		685,284)
	($	1,190,725)	($		2,366,770)	($		853,598)

I. Loans to/from related parties:
(a) Loans to related parties:
- i. Outstanding balance:

s to/from related parties: Loans to related parties: i. Outstanding balance:
ii. Interest income: . Associates Associates Associates	September 30, 2020 December 31,2019 September 30,2019 748,328 $ 722,926 $ 741,491 $ Three-month period Three-month period ended September 30,2020 ended September 30,2019 2,398 $ 5,772 $ Nine-month period Nine-month period ended September 30,2020 ended September 30,2019 10,106 $ 14,325 $	September 30,2019
	$	741,491 $

The loans to associates carry interest at floating rates for the three-month and nine-month periods ended September 30, 2019 and 2020.

(b) Loans from related parties:
i. Outstanding balance:

i. Outstanding balance:
. Other related parties	September 30,2020 9,459 $	December 31,2019 524,743 $	September 30,2019
			542,653 $

~85~

ii. Interest expense:

ii. Interest expense:
Three-month period ended September 30,2020 Other related parties 60) ($ Nine-month period ended September 30,2020 Other related parties 7,410 $	Three-month period ended September 30,2019
	5,484 $
	Nine-month period ended September 30,2019
	23,585 $

The loans from associates carry interest at floating rates for the three-month and nine-month periods ended September 30, 2019 and 2020.

J. Endorsements and guarantees provided to related parties:

. September 30, 2020 December 31, 2019 September 30, 2019 Associates $ 1,886,113 $ 3,674,191 $ 3,677,640

K. On June 30, 2020, the Board of Directors of the subsidiary, EGH, approved to acquire 40% and 60% equity interests of EGP from the other related party, EIS, and a non-related party. The transaction date was July 1, 2020, and the transaction price amounted to $141,760 (approx. PHP 239,500).
L. On December 20, 2019, the Board of Directors of the subsidiary, EGH, approved to acquire 16.50% equity interests of ELA from the associate, ITS, and each other related party, EIS and EMS. The transaction date was set on March 1, 2020, and the transaction price amounted to $9,712 (approx. USD 323).
M. On November 13, 2019, the shareholders at the shareholders’ meeting of the subsidiary, Armand B.V., approved to sell 2.91% equity interests of the associate, Taipei Port Container Terminal Corporation, to other related party, EIS. The transaction date was set on February 1, 2020, and the transaction price amounted to $150,464 (approx. USD 4,997).
N. On November 10, 2019, the Board of Directors of the subsidiary, Peony, has resolved to participate in the capital increase of the investee, Balsam, accounted for using equity method, as the original shareholder. The amount of capital increase was USD 24,500. The effective date was set on November 14, 2019.
O. The Board of Directors of the Company during its meeting on December 21, 2018 adopted a resolution to participate in the capital increase raised by EVA Airways Corporation amounting to 39,150 thousand shares, with a subscription price of NT$13 (in dollars) per share and total price of $508,944. The effective date was set on January 24, 2019. Moreover, the Company purchased 70 thousand shares as specific person and the purchase amounted to $700.

~86~

Salaries and other short-term employee benefits Post-employment benefits Salaries and other long-term employee benefits Salaries and other short-term employee benefits Post-employment benefits Salaries and other long-term employee benefits	Three-month period ended September 30,2020 46,220 $ 322 116 46,658 $ Nine-month period ended September 30,2020 145,577 $ 1,597 330 147,504 $	Three-month period ended September 30,2019
		39,389 $ 630 -
		40,019 $
		Nine-month period ended September 30,2019
		122,055 $ 1,979 -
		124,034 $

8. PLEDGED ASSETS

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

Pledged assets Financial assets at amortised cost - Pledged time deposits Refundable deposits - Pledged time deposits Property, plant and equipment -Land -Buildings -Loading and unloading equipment -Ships -Computer and communication equipment Investment property -Land -Buildings	September 30,2020 239,016 $ 2,000 514,312 5,377,610 1,633,820 76,768,227 175,978 1,285,781 3,776,252 89,772,996 $	December 31,2019 290,740 $ 2,000 514,312 5,631,364 1,900,801 71,742,174 314,161 1,285,781 3,972,653 85,653,986 $ Book value	September 30,2019 291,005 $ 2,000 514,312 5,685,772 1,934,710 75,947,721 370,114 1,285,781 4,241,003 90,272,418 $	Purpose
				Performance guarantee `〞` Long-term loan `〞` `〞` `〞` `〞` Long-term loan `〞`

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

~87~

(2) Commitments

A. As of September 30, 2020, the subsidiary, GMS, had delegated DBS Bank to issue Standby Letter of Credit amounting to USD 5,000.
B. As of September 30, 2020, 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 $132,796,605 and the unutilized credit was $25,097,328.
C. As of September 30, 2020, the amount of guaranteed notes issued by the Company for loans borrowed was $96,119,219.
D. To meet its operational needs, the Company signed the shipbuilding contracts with Samsung Heavy Industries, Hyundai Mipo Dockyard Co., Ltd, Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Company Ltd.. As of September 30, 2020, the total price of the contracts, wherein the vessels have not yet been delivered amounted to USD 2,110,072, USD 1,701,176 of which remain unpaid.
E. To meet its operational needs, the Company signed the transportation equipment purchase contracts. As of September 30, 2020, the total price of the contracts, wherein the equipment have not yet been delivered, amounted to USD 98,932, USD 89,039 of which remain unpaid.
F. In response to international regulations on sulfur content in shipping fuel, the Group entered into sulfur emission abatement equipment purchase contracts with Wartsila Finland Oy. The total contract prices are USD 27,267 and USD 14,000 remain unpaid. The Group signed installation contracts with Huarun Dadong Dockyard Co., Ltd., COSCO Shipping Heavy Industry (Zhoushan) Co., Ltd. and Global Oil And Gas Services. As of September 30, 2020, the total price of the contracts amounted to USD 46,947, USD 39,460 of which remain unpaid.
G. To meet its operational needs, the subsidiary, ETS, signed the loading and unloading equipment purchase contracts. As of September 30, 2020, the total price of the contracts amounted to $35,520, $27,740 of which remain unpaid.
H. For the Group’s lease contract which was entered into but not completed construction. As of September 30, 2020, the expected minimum lease payment in the future was $107,896,407.
I. As of September 30, 2020, the Group had entered into a service contract which was not belonging to lease component. The amount of future commitment payment is provided in Note 6(9).

10. SIGNIFICANT DISASTER LOSS

None.

~88~

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

(1) On November 12, 2020, to meet the operation needs, the Board of Directors of the Company resolved to order 3,000 set freezers with 40-feet from Dongfang International Container Co., Ltd. and Guangdong Fuwa Engineering Group Co., Ltd., the total transaction amount was USD 21,850.
(2) On November 12, 2020, to meet the operation needs, the Board of Directors of the Company resolved to order 5,000 refrigeration machines (including remote monitoring and control systems) and 200 integrated reefer containers, which combine refrigeration unit and container, from Carrier Transicold Pte. Ltd. and Star Cool - Maersk Container Industry, the total transaction amount was USD 32,690.
(3) On November 12, 2020, to meet the operation needs, the Board of Directors of the subsidiary, GMS, resolved to order 17,500 set containers from Dongfang International Container Co., Ltd. and Guangdong Fuwa Engineering Group Co., Ltd., the total transaction amount was USD 58,727.

12. OTHERS

(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.

(2) Financial instruments

A. Financial instruments by category

ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivables Accounts receivable Other accounts receivable Guarantee deposits paid	September 30, 2020 1,566,894 $ 41,927,208 $ 8,961,839 89,968 17,304,357 1,175,144 266,974 69,725,490 $	December 31, 2019 1,719,423 $ 37,871,889 $ 2,118,536 129,545 14,759,813 1,027,279 229,095 56,136,157 $	September 30, 2019
			1,676,091 $
			40,618,276 $ 2,026,736 134,578 16,832,548 1,438,903 230,022
			61,281,063 $

~89~

September 30, 2020 December 31, 2019 September 30, 2019

Financial liabilities

Financial liabilities
Financial liabilities at fair value through profit or loss Financial liabilities designated as at fair value through profit or loss Financial liabilities at amortised cost Accounts payable Other accounts payable Bonds payable (including current portion) Lease payable (including current portion) Long-term borrowings (including current portion) Guarantee deposits received Financial liabilities for hedging (including current portion)	28,701 $ 18,141,153 $ 6,007,866 18,223,941 63,632,642 107,660,566 308,604 213,974,772 $ 11,440,272 $	- $ 16,580,812 $ 5,113,118 10,000,000 61,042,893 106,701,568 325,987 199,764,378 $ 20,188,942 $	- $ 17,823,519 $ 5,882,393 10,000,000 64,765,798 112,791,830 359,852
			211,623,392 $
			15,598,585 $

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.
(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.

~90~

C. Significant financial risks and degrees of financial risks
(a) Market 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 CNY. 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.
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, CNY 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:

exchange rate fluctuations is as follows:
Financial assets Monetary items USD:NTD EUR:USD GBP:USD Financial liabilities Monetary items USD:NTD HKD:USD GBP:USD EUR:USD CNY:USD (Foreign currency: functional currency)	September 30,2020
	Foreign currency amount (In Thousands) Exchange rate 844,598 $ 28.9975 8,533 1.1708 3,803 1.2855 1,087,406 $ 28.9975 111,894 0.1290 6,460 1.2855 4,073 1.1708 403,402 0.1467	Book value (NTD)
		24,491,231 $ 289,698 141,762 31,532,055 $ 418,559 240,805 138,279 1,716,045

~91~

Financial assets Monetary items USD:NTD GBP:USD Financial liabilities Monetary items USD:NTD HKD:USD GBP:USD EUR:USD CNY:USD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD EUR:NTD Financial liabilities Monetary items USD:NTD CNY:NTD HKD:USD GBP:USD CNY:USD EUR:USD (Foreign currency: functional currency)	December 31,2019	December 31,2019
	Foreign currency amount Book value (In Thousands) Exchange rate (NTD) 582,814 $ 30.0130 17,491,997 $ 2,889 1.3118 113,743 1,080,163 $ 30.0130 32,418,932 $ 97,479 0.1284 375,652 3,807 1.3118 149,886 4,190 1.1233 141,260 225,390 0.1431 968,019 September 30,2019	Book value (NTD)
	Foreign currency amount (In Thousands) Exchange rate 863,623 $ 31.0140 3,092 33.8518 1,353,433 $ 31.0140 57,080 4.3482 106,509 0.1275 5,896 1.2327 290,562 0.1402 3,043 1.0915	Book value (NTD)
		26,784,404 $ 104,670 41,975,371 $ 248,195 421,167 225,410 1,263,411 103,011

iv. The total exchange (loss) gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and nine-month periods ended September 30, 2020 and 2019 amounted to $481,905, $117,648, $691,675 and $231,488, respectively.

~92~

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

variation:
Financial assets Monetary items USD:NTD EUR:USD GBP:USD Financial liabilities Monetary items USD:NTD CNY:NTD HKD:USD GBP:USD EUR:USD RMB:USD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD EUR:NTD Financial liabilities Monetary items USD:NTD CNY:NTD HKD:USD GBP:USD CNY:USD EUR:USD (Foreign currency: functional currency)	Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 244,912 $ - $ 1% 2,897 - 1% 1,418 - 1% 200,918 $ 114,403 $ 1% - - 1% 4,186 - 1% 2,408 - 1% 1,383 - 1% 17,160 - Nine-monthperiod ended September 30,2020 Sensitivityanalysis Nine-monthperiod ended September 30,2019
	Sensitivityanalysis
	Degree of variation 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 267,844 $ 1,047 263,768 $ 2,482 4,212 2,254 12,634 1,030	Effect on other comprehensive income
			- $ - 155,986 $ - - - - -

~93~

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 at fair value through other comprehensive income. 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 $15,417 and $16,370 for the nine-month periods ended September 30, 2020 and 2019, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value 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 nine-month periods ended September 30, 2020 and 2019, the Group’s borrowings at variable rate were denominated in the NTD, USD and GBP.
ii. At September 30, 2020 and 2019, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the nine-month periods ended September 30, 2020 and 2019 would have been $960,369 and $994,010 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 Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
ii. The Group manages their credit risk taking into consideration the entire group’s concern. 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 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.
iii. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

~94~

iv. As the Group’s historical credit losses experience does not show significantly different loss patterns for different customer segments which are worldwide and in a wide range without connection, so there is no credit risk concentration for notes and accounts receivable as well as contract assets. Therefore, the provision for losses is not further distinguished according to different segments of the Group’s customer base.
v. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. As of September 30, 2020, December 31, 2019 and September 30, 2019, the Group has no written-off financial assets that are still under recourse procedures.
vi. The Group used the forecastability to adjust historical, timely information, economic conditions of the industry, GDP forecast and trade growth rate to assess the default possibility of accounts receivable (including related parties), contract assets and overdue receivable. As of September 30, 2020, December 31, 2019 and September 30, 2019, the loss rate methodology is as follows:

At September 30, 2020 Not past due Up to 30 days 31 to 180 days At September 30, 2020 Not past due At September 30, 2020 Over 180 days	Accounts receivable (including related parties) Total book value 15,184,325 $ 2,040,353 87,358 17,312,036 $ Contract assets Total book value 2,387,796 $ 2,387,796 $ Overdue receivable Total book value 260,620 $ 260,620 $	Expected loss rate 0.0016%~0.0934% 0.0035%~0.4583% 0.0166%~26.5625% Expected loss rate 0.0016%~0.0225% Expected loss rate 100%	Loss allowance
			2,767 $ 1,417 3,495
			7,679 $
			Loss allowance
			179 $
			179 $
			Loss allowance
			260,620 $
			260,620 $

~95~

December 31, 2019 Not past due Up to 30 days 31 to 180 days December 31, 2019 Not past due December 31, 2019 Over 180 days At September 30, 2019 Not past due Up to 30 days 31 to 180 days At September 30, 2019 Not past due At September 30, 2019 Over 180 days	Accounts receivable (including related parties) Total book value 12,094,901 $ 2,450,297 226,960 14,772,158 $ Contract assets Total book value 1,694,072 $ 1,694,072 $ Overdue receivable Total book value 269,506 $ 269,506 $ Accounts receivable (including related parties) Total book value 14,459,741 $ 2,064,895 322,644 16,847,280 $ Contract assets Total book value 1,599,231 $ 1,599,231 $ Overdue receivable Total book value 278,265 $ 278,265 $	Expected loss rate 0.03%~0.08% 0.03%~0.08% 0.03%~0.08% Expected loss rate 0.03% Expected loss rate 100% Expected loss rate 0.03%~0.08% 0.03%~0.08% 0.03%~0.08% Expected loss rate 0.03% Expected loss rate 100%	Loss allowance 10,107 $ 2,048 190 12,345 $ Loss allowance
			575 $
			575 $

			Loss allowance
			269,506 $
			269,506 $
			Loss allowance
			12,644 $ 1,806 282
			14,732 $
			Loss allowance
			554 $
			554 $
			Loss allowance
			278,265 $
			278,265 $

~96~

vii. Movements in relation to the group applying the modified approach to provide loss allowance for notes receivable, accounts receivable (including related parties), contract assets and overdue receivable are as follows:

					2020	2020
		Notes			Accounts		Contract			Overdue
	receivable			receivable			assets		receivable
At January 1	($	2)	($		12,345)	($	575)	($		269,506)
Provision for impairment		-	(		2,103)	(	29)			-
Reversal of impairment loss		-			6,284		417			-
Effect of foreign exchange		-			485		8			8,886
At September 30	($	2)	($		7,679)	($	179)	($		260,620)
					2019
		Notes			Accounts		Contract			Overdue
	receivable			receivable			assets		receivable
At January 1	($	4)	($		96,468)	($	692)	($		202,654)
Provision for impairment		-	(		1,836)	(	129)			-
Reversal of impairment loss		2			16,729		267			-
Reclassifications		-			66,913		-	(		66,913)
Write-offs		-			88		-			-
Effect of foreign exchange		-	(		158)		-	(		8,698)
At September 30	($	2)	($		14,732)	($	554)	($		278,265)

(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.

~97~

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 nonderivative financial liabilities.

Non-derivative financial liabilities:

Non-derivative financial liabilities:	al liabilities:
September 30, 2020 Less than 3 months Notes payable 33,219 $ Accounts payable 17,587,826 Accounts payable - related parties 232,187 Other payables 5,135,279 Other payables - related parties 128,068 Bonds payable - Long-term loans (including current portion) 7,768,506 Lease payable and financial liabilities for hedging (including current portion) 3,074,926 Derivative financial liabilities: September 30, 2020 Less than 3 months Overseas convertible bonds with embedded 28,701 $	Less than 3 months	Between 3 months and 1year	Between 1 and 2years - $ - - - - 4,059,200 26,850,966 17,021,345 Between 1 and 2years	Between 2 and 5years	Over 5 years	Total
		- $ 208,528 112,612 735,059 - 4,101,200 16,740,942 9,713,246 Between 3 months and 1year		- $ - - - - 10,714,500 44,169,850 25,883,364 Between 2 and 5years	- $ - - - 9,460 - 16,046,376 29,853,074 Over 5 years	33,219 $ 17,796,354 344,799 5,870,338 137,528 18,874,900 111,576,640 85,545,955 Total
September 30, 2020 Overseas convertible bonds with embedded
	28,701 $	- $	- $	- $	- $	28,701 $

~98~

Non-derivative financial liabilities:

Between 3

Non-derivative financial liabilities:	al liabilities:	Between 3
December 31, 2019 Less than 3 months Accounts payable 16,165,426 $ Accounts payable - related parties 369,044 Other payables 4,115,041 Other payables - related parties 696,438 Bonds payable - Long-term loans (including current portion) 4,063,463 Lease payable and financial liabilities for hedging (including current portion) 3,815,715 Non-derivative financial liabilities: September 30, 2019 Less than 3 months Accounts payable 17,550,701 $ Accounts payable - related parties 174,185 Other payables 4,870,108 Other payables - related parties 733,497 Bonds payable - Long-term loans (including current portion) 7,654,196 Lease payable and financial liabilities for hedging (including current portion) 2,906,148	Less than 3 months	months and 1year	Between 1 and 2years	Between 2 and 5years	Over 5 years	Total
		4,284 $ 42,058 288,335 - 101,200 21,210,732 9,799,502 Between 3 months and 1year	- $ - 3,503 - 4,101,200 23,999,762 12,274,193 Between 1 and 2 years - $ - - - 4,101,200 28,583,253 10,364,467	- $ - - - 6,076,400 47,550,813 34,201,995 Between 2 and 5years	- $ - - 9,801 - 17,454,788 34,848,315 Over 5 years	16,169,710 $ 411,102 4,406,879 706,239 10,278,800 114,279,558 94,939,720 Total
September 30, 2019 Accounts payable Accounts payable - related parties Other payables Other payables - related parties Bonds payable Long-term loans (including current portion) Lease payable and financial liabilities for hedging (including current portion)
	17,550,701 $ 174,185 4,870,108 733,497 - 7,654,196 2,906,148	4,490 $ 94,143 268,802 9,986 101,200 17,423,858 8,980,517		- $ - - - 6,076,400 49,700,613 29,709,473	- $ - - - - 17,610,476 23,169,536	17,555,191 $ 268,328 5,138,910 743,483 10,278,800 120,972,396 75,130,141

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.

~99~

(3) Fair value estimation

A.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: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. 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.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, financial assets measured at amortised cost, accounts payable and other payables are approximate to their fair values.

Financial liabilities: Bonds payable (including current portion) Long-term loans (including current portion) Financial liabilities: Bonds payable Long-term loans (including current portion) Financial liabilities: Bonds payable Long-term loans (including current portion)	September 30,2020	September 30,2020
	Book value 18,223,941 $ 107,660,566 125,884,507 $ December	Level 3
		18,361,079 $ 111,427,415
		129,788,494 $
		31,2019
	Book value Level 3 10,000,000 $ 10,154,063 $ 106,701,568 114,134,001 116,701,568 $ 124,288,064 $ September 30,2019	Level 3
		10,154,063 $ 114,134,001
		124,288,064 $
	Book value 10,000,000 $ 112,791,830 122,791,830 $	Level 3
		10,127,671 $ 120,980,151
		131,107,822 $

~100~

D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. The related information of financial and non-financial instruments measured at fair value by level	D. 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 are					as	follows:
(a) The related information of natures	of	the assets and		liabilities is as		follows:
September 30, 2020		Level 1		Level 2		Level 3		Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through other comprehensive
income
Equity securities	$	1,009,796	$	120	$	556,978	$	1,566,894
Liabilities:
Recurring fair value measurements
Non-derivative financial liabilities for hedging	$	-	$	-	$	-	$	11,440,272
Financial liabilities at fair value
through profit or loss
Overseas convertible bonds with embedded derivatives		-		28,701		-		28,701
	$	-	$	28,701	$	-	$	11,468,973
December 31, 2019		Level 1		Level 2		Level 3		Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through other comprehensive
income
Equity securities	$	989,850	$	-	$	729,573	$	1,719,423
Liabilities:
Recurring fair value measurements
Non-derivative financial
liabilities for hedging	$	-	$	-	$	-	$	20,188,942

~101~

September 30, 2019 Assets: Recurring fair value measurements Financial assets at fair value through other comprehensive income Equity securities Liabilities: Recurring fair value measurements Non-derivative financial liabilities for hedging	Level 1 902,583 $ - $	Level 2 - $ - $	Level 3 773,508 $ - $	Total 1,676,091 $ 15,598,585 $

(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares

Market quoted price Closing price

ii. 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).
iii. 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.
iv. 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).

~102~

v. 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.
vi. 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 nine-month periods ended September 30, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. The following chart is the movement of Level 3 for the nine-month periods ended September 30, 2020 and 2019:

2020 and 2019:
		2020		2019
At January 1	$	729,573	$	800,149
Gains and losses recognised in other
comprehensive income (Note 1)	(	172,595)	(	26,641)
At September 30	$	556,978	$	773,508

Note 1: Recorded as unrealised gains or losses on valuation of investments in equity instruments measured at fair value through other comprehensive income and exchange differences on translating the financial statements of foreign operations.
G. For the nine-month periods ended September 30, 2020 and 2019, 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.

~103~

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:

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at September 30,2020	Valuation technique Significant unobservable input Market comparable companies Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value Net asset value	Range (weighted average)	Relationship of inputs to fair value
	550,206 $ 6,772		8.19~47.72 0.57~2.69 20%~30%	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value

~104~

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at December 31,2019	Valuation technique	Significant unobservable input Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	722,800 $ 6,773 Fair value at September 30,2019	Market comparable companies Net asset value Valuation technique		8.82~46.24 0.54~3.06 20%~30% Range (weighted average)	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value
	766,736 $ 6,772	Market comparable companies Net asset value	Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value	8.58~37.52 0.52~2.5 20%~30%	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in difference measurement.

~105~

The following is the effect of profit or loss or of other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

Input	Change	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 5,502 $ 5,502 $ - - 68 68 - $ - $ 5,570 $ 5,570 $ September 30,2020 Recognised in profit or loss Recognised in other comprehensive income December 31,2019
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value Input	±1% ±1% Change							5,502 $ 68 5,570 $
		Recognised in profit or loss				Recognised in other comprehensive income
		Favourable change		Unfavourable change		Favourable change	Unfavourable change
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value Input	±1% ±1% Change		- $ - - $					7,228 $ 68 7,296 $
			Recognised in profit or loss			Recognised in other comprehensive income
		Favourable change		Unfavourable change		Favourable change	Unfavourable change
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value	±1% ±1%		- $ - - $		- $ - - $	7,667 $ 68 7,735 $		7,667 $ 68 7,735 $

~106~

(4) Other matters

Except for the investees in Mainland China that are entitled to the exemption and subsidy under the Temporary Reduction and Exemption of Social Insurance Premiums Payable by Enterprises, there were no other significant impact to the Group due to the COVID-19 pandemic for the nine-month period ended September 30, 2020.

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: None.
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 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees (not including investees in Mainland China)
Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B.Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Information of major shareholder

Information of major shareholder: Please refer to table 9.

~107~

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) Segment information

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

is as follows:
		Nine-monthperiod ended					September 30,2020
		Transportation		Other		Adjustments and
		Department		Departments			written-off			Total
Revenue from
external customers	$	141,529,899	$	858,220	$			-	$	142,388,119
Revenue from
internal customers		22,190,706		-			(22,190,706)			-
Segment revenue		163,720,605		858,220	(		22,190,706)			142,388,119
Interest income		269,225		14,696				-		283,921
Interest expense	(	3,570,632)	(	5,563)				-	(	3,576,195)
Depreciation
and amortisation	(	15,684,306)	(	193,862)				-	(	15,878,168)
Share of income (loss) of
associates and joint
ventures accounted for
using equity method	(	184,917)	(	2,971)				-	(	187,888)
Other items	(	107,870,033)	(	884,928)				-	(	108,754,961)
Segment profit (loss)	$	36,679,942	($	214,408)	($		22,190,706)		$	14,274,828
Recognisable assets	$	286,271,640	$	8,885,786	$			-	$	295,157,426
Investments accounted for
using equity method		22,944,371		5,654,730				-		28,599,101
Segment assets	$	309,216,011	$	14,540,516	$			-	$	323,756,527
Segment liabilities	$	237,784,126	$	967,398	$			-	$	238,751,524

~108~

		Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019	Nine-monthperiod ended September 30,2019
		Transportation		Other		Adjustments and
		Department		Departments		written-off			Total
Revenue from
external customers	$	141,216,657	$	1,448,113	$		-	$	142,664,770
Revenue from
internal customers		22,927,321		-	(	22,927,321)			-
Segment revenue		164,143,978		1,448,113	(	22,927,321)			142,664,770
Interest income		545,056		23,863			-		568,919
Interest expense	(	4,218,821)	(	7,674)			-	(	4,226,495)
Depreciation
and amortisation	(	15,187,907)	(	192,785)			-	(	15,380,692)
Share of loss of
associates and joint
ventures accounted for
using equity method		906,902	(	497,591)			-		409,311
Other items	(	121,637,048)	(	1,543,215)			-	(	123,180,263)
Segment profit (loss)	$	24,552,160	($	769,289)	22,927,321) ($			$	855,550
Recognisable assets	$	272,427,393	$	9,247,836	$		-	$	281,675,229
Investments accounted for
using equity method		22,586,646		5,847,448			-		28,434,094
Segment assets	$	295,014,039	$	15,095,284	$		-	$	310,109,323
Segment liabilities	$	237,951,222	$	1,290,569	$		-	$	239,241,791

(3) 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.

~109~

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others

For the nine-month period ended September 30, 2020

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020	Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the nine-month period ended September 30, 2020
Table 1													Expressed in thousands of TWD
Number (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2020 (Note 3)	Balance at September 30, 2020 (Note 8)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
													Item	Value
1	Peony Investment S.A.	Luanta Investment (Netherlands) N.V.	Receivables from related parties	Yes	63,674 $	28,998 $	28,998 $	1.24475~ 1.27025	2	- $	Working capital requirement	- $	None	- $	6,416,160 $	16,040,401 $
1	Peony Investment S.A.	Clove Holding Ltd.	Receivables from related parties	Yes	782,282	231,980	217,481	1.25188~ 1.28325	2	-	Working capital requirement	-	None	-	12,832,321	16,040,401
1	Peony Investment S.A.	Colon Container Terminal S.A.	Receivables from related parties	Yes	585,750	585,750	585,750	1.25425~ 1.25863	2	-	Working capital requirement	-	None	-	6,416,160	16,040,401
2	Clove Holding Ltd.	Colon Container Terminal S.A.	Receivables from related parties	Yes	539,714	-	-	-	2	-	Working capital requirement	-	None	-	530,560	1,061,120
3	Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal S.A.	Receivables from related parties	Yes	133,896	131,794	131,794	1.25575~ 1.29000	2	-	Working capital requirement	-	None	-	1,559,296	3,118,592
4	Everport Terminal Services	Whitney Equipment LLC.	Receivables from related parties	Yes	265,140	260,978	260,978	2.5201~ 2.5517	2	-	Working capital requirement	-	None	-	457,639	1,144,097

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: 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 nine-month period ended September 30, 2020

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.

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.
PEONY ： USD 1,106,33028.997520%=6,416,160

Clove Holding Ltd. ： USD 91,48428.997520%=530,560

Evergreen Marine (Hong Kong) Ltd. ： USD 268,86728.997520%=1,559,296

Everport Terminal Services ： USD 78,91028.997520%=457,639

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. PEONY ： USD 1,106,33028.997540%=12,832,321

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. Evergreen Marine (Hong Kong) Ltd. ： USD 268,86728.997540%=3,118,592

Clove Holding Ltd. ： USD 91,48428.997540%=1,061,120

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. PEONY ： USD 1,106,33028.997550%=16,040,401

Everport Terminal Services ： USD 78,91028.997550%=1,144,097

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

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others For the nine-month period ended September 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of September 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at September 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)
		Company name	Relationship with the endorser/ guarantor (Note 2)
0	Evergreen Marine Corporation	Greencompass Marine S.A.	2	160,568,739 $	52,023,307 $	47,712,163 $	29,135,592 $	- $	59.43%	200,710,924 $	Y	N	N
0	Evergreen Marine Corporation	Peony Investment S.A.	2	160,568,739	151,605	144,988	-	-	0.18%	200,710,924	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (UK) Limited	2	160,568,739	34,362,054	31,870,352	27,543,352	-	39.70%	200,710,924	Y	N	N
0	Evergreen Marine Corporation	Whitney Equipment LLC.	2	160,568,739	104,254	49,345	42,858	-	0.06%	200,710,924	Y	N	N
0	Evergreen Marine Corporation	Colon Container Terminal S.A.	6	40,142,185	2,323,801	784,092	709,386	-	0.98%	200,710,924	N	N	N
0	Evergreen Marine Corporation	Balsam Investment (Netherlands) N.V.	6	40,142,185	891,437	852,527	852,527	-	1.06%	200,710,924	N	N	N
0	Evergreen Marine Corporation	Everport Terminal Services Inc.	2	160,568,739	2,657,778	2,324,724	877,688	-	2.90%	200,710,924	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (Hong Kong) Ltd.	2	160,568,739	33,589,686	30,121,728	18,192,599	-	37.52%	200,710,924	Y	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	2	15,592,960	36,357	-	-	-	-	19,491,200	Y	N	Y
1	Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal S.A.	6	3,898,240 $	522,855 $	249,494 $	159,612 $	-	3.20%	19,491,200 $	N	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine (Hong Kong) Ltd.	2	15,592,960	2,329,180	691,336	493,811	-	8.87%	19,491,200	N	N	N

Evergreen Marine Corporation (Taiwan) Ltd.

Provision of endorsements and guarantees to others

For the nine-month period ended September 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of September 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at September 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship with the endorser/ guarantor (Note 2)
2	Greencompass Marine S.A.	Everport Terminal Services Inc.	1	9,077,846	150,065	144,988	144,988	- $	0.80%	45,389,229	N	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.
Note 2: 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.
(2) The endorser/guarantor parent company directly and indirectly owns more than 50% voting shares of the endorsed/guaranteed company.
(3) The endorsed/guaranteed parent company directly and indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(4) The parent company directly or indirectly owns more than 90% voting shares of the companies that make endorsements/guarantees for each other.
(5) The parent company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) Due to joint venture, all capital contributing shareholders make endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
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 Company: 80,284,369*250% = 200,710,924

Limit on endorsement or guarantees provided by the Company for a single entity is $40,142,185 (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 $160,568,739.)
According to the credit policy of Evergreen Marine (Hong Kong) Ltd., the calculation for total amount of endorsements/guarantees is as follows:
Ceiling on total amount of endorsements/guarantees: USD 268,86728.9975250% = 19,491,200
Limit on endorsements or guarantees provided for a single entity ： 3,898,240 (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 $15,592,960.)
According to the credit policy of Greencompass Marine S.A., the calculation for total amount of endorsements/guarantees is as follows:
Ceiling on total amount of endorsements/guarantees: USD 626,11228.9975250% = 45,389,229
Limit on endorsements or guarantees provided for a single entity ： 9,077,846 (Amounting to 50% of its net worth).
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors.
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.

Evergreen Marine Corporation (Taiwan) Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) For the nine-month period ended September 30, 2020

Table 3

Expressed in thousands of shares/thousands of TWD/thousands of foreign currency

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	Genearl ledger account	As of September 30, 2020	As of September 30, 2020	As of September 30, 2020	As of September 30, 2020
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Evergreen Marine Corporation	Stock:
	Power World Fund Inc.		Financial asset measured at fair value through other comprehensive income - non-current	677	6,772 $	5.68%	6,772 $
	Linden Technologies, Inc.		`〃`	50	7,019	1.44%	7,019
	TopLogis, Inc.		`〃`	2,464	23,214	17.48%	23,214
	Ever Accord Construction Corp.	Other related party	`〃`	10,500	136,225	17.50%	136,225
	Central Reinsurance Corp.		`〃`	49,866	1,009,796	8.45%	1,009,796
	Financial bonds:
	Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015		Financial asset measured at atmortised cost - non-current	-	50,000	-	50,000
	Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017		`〃`	-	50,000	-	50,000
Peony Investment S.A.	Hutchison Inland Container Depots Ltd.		Financial asset measured at fair value through other comprehensive income - non-current	0.75	USD 187	5.27%	USD 187
	South Asia Gateway Terminals (Private) Ltd.		`〃`	18,942	USD 13,035	5.00%	USD 13,035
Evergreen Shipping Agency (Europe) GmbH	Zoll Pool Hafen Hamburg AG		`〃`	10	EUR 10	2.86%	EUR 10
Evergreen Shipping Agency Philippines Corporation	Eagle Ridge Golf & Country Club Inc.		`〃`	0.001	PHP 200	1.67%	PHP 200

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'. Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

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 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.

Evergreen Marine Corporation (Taiwan) Ltd.

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

For the nine-month period ended September 30, 2020

Table 4			Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)	Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)
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	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Everport Terminal Services Inc.	Subsidiary	Purchases	$ 1,192,646	3%	30~60 days	$ -	-	($ 176,362)	4%
	Greencompass Marine S.A.	Subsidiary	Purchases	1,227,718	4%	30~60 days	-	-	( 213)	-
			Sales	1,639,282	4%	30~60 days	-	-	965	-
	Taiwan Terminal Services Co., Ltd.	Subsidiary	Purchases	623,018	2%	30~60 days	-	-	( 116,778)	3%
	Italia Marittima S.p.A.	Associates	Purchases	216,919	1%	30~60 days	-	-	-	-
			Sales	267,981	1%	30~60 days	-	-	4,018	-
	Evergreen International Storage and Transport Corp.	Associates	Purchases	274,057	1%	30~60 days	-	-	( 19,061)	-
	Evergreen Shipping Agency (America) Corporation	Other related parties	Purchases	276,269	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Other related parties	Purchases	398,423	1%	30~60 days	-	-	( 8,479)	-
	Evergreen Marine (UK) Limited	Subsidiary	Purchases	444,550	1%	30~60 days	-	-	( 79)	-
			Sales	537,422	1%	30~60 days	-	-	4,452	-
	Evergreen Marine (Singapore) Pte. Ltd.	Other related parties	Purchases	335,628	1%	30~60 days	-	-	-	-
			Sales	1,240,577	3%	30~60 days	-	-	1,198	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary	Purchases	784,982	2%	30~60 days	-	-	( 290)	-
			Sales	758,790	2%	30~60 days	-	-	27,263	1%
	Evergreen Shipping Agency (Europe) GmbH (EEU)	Subsidiary	Purchases	226,540	1%	30~60 days	-	-	-	-

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Evergreen International S.A.(EIS)	Other related parties	Sales	$ 198,210	1%	30~60 days	$ -	-	$ 6	-
	Gaining Enterprise S.A.	Other related parties	Purchases	445,924	1%	30~60 days	-	-	-	-
	Taipei Port Container Terminal Corp.	Associates	Purchases	134,613	-	30~60 days	-	-	-	-
Taiwan Terminal Services Co.,Ltd.	Evergreen Marine Corp.	The parent	Sales	623,018	100%	30~60 days	-	-	116,778	100%	(Note)
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	Sales	USD 40,076	13%	30~60 days	-	-	6,082 USD	14%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 74,629	25%	30 days	-	-	9,320 USD	21%
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 20,318	7%	30 days	-	-	3,054 USD	7%	(Note)
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 58,317	19%	30 days	-	-	7,817 USD	18%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 5,860	2%	30 days	-	-	1,075 USD	2%
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 29,116	10%	30 days	-	-	4,137 USD	9%	(Note)
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine Corp.	The parent	Sales	USD 26,377	3%	30~60 days	-	-	10 USD	-	(Note)
			Purchases	USD 25,497	4%	30~60 days	-	-	940) (USD	1%	(Note)
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 38,175	5%	30~60 days	-	-	28 USD	-	(Note)
			Purchases	USD 26,658	4%	30~60 days	-	-	387) (USD	-	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 6,939	1%	30~60 days	-	-	4 USD	-
			Purchases	USD 25,998	4%	30~60 days	-	-	742) (USD	1%
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 41,460	5%	30~60 days	-	-	30 USD	-
			Purchases	USD 8,505	1%	30~60 days	-	-	134) (USD	-

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine (Hong Kong) Ltd.	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Sales	USD 3,907	-	30~60 days	$ -	-	176 USD	-
			Purchases	USD 8,540	1%	30~60 days	-	-	-	-
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 18,944	2%	30~60 days	-	-	18 USD	-	(Note)
		Indirect subsidiary of the Parent Company	Purchases	USD 69,239	10%	30~60 days	-	-	182) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 29,116	4%	30 days	-	-	4,137) (USD	4%	(Note)
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 7,715	1%	30~60 days	-	-	1) (USD	-
	Evergreen Shipping Agency (China) Co., Ltd.	Indirect subsidiary of the Parent Company	Purchases	USD 21,481	3%	30~60 days	-	-	2,515) (USD	2%	(Note)
Greencompass Marine S.A.	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 26,116	1%	30~60 days	-	-	2,517 USD	1%	(Note)
			Purchases	USD 19,178	1%	30~60 days	-	-	425) (USD	-	(Note)
	Evergreen Marine Corp.	The parent	Sales	USD 41,254	2%	30~60 days	-	-	7 USD	-	(Note)
			Purchases	USD 55,084	3%	30~60 days	-	-	33) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 20,318	1%	30 days	-	-	3,054) (USD	1%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 54,570	3%	30~60 days	-	-	-	-
			Purchases	USD 20,152	1%	30~60 days	-	-	1,399) (USD	-
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 15,818	1%	30~60 days	-	-	48 USD	-
			Purchases	USD 28,250	2%	30~60 days	-	-	811 USD	-
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 17,023	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Purchases	USD 8,880	-	30~60 days	-	-	-	-
	Evergreen Shipping Agency (Japan)	Investee of the Parent Company's major shareholder	Purchases	USD 4,488	2%	30~60 days	-	-	-	-

Purchaser/Seller	Counterparty	Relationship with the counterparty		Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Greencompass Marine S.A.	Evergreen Shipping Agency (Europe) GmbH	Indirect subsidiary of the Parent Company	Purchases	USD 8,293	-	30~60 days	$ -	-	$ -	-	(Note)
	Evergreen Insurance Company Limited	Investee of the Parent Company's major shareholder	Purchases	USD 3,403	-	30~60 days	-	-	831 USD	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 26,658	1%	30~60 days	-	-	387 USD	-	(Note)
			Purchases	USD 38,175	2%	30~60 days	-	-	28) (USD	-	(Note)
Evergreen Marine (UK) Limited	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 19,178	2%	30~60 days	-	-	425 USD	-	(Note)
		Indirect subsidiary of the Parent Company	Purchases	USD 26,116	3%	30~60 days	-	-	2,517) (USD	2%	(Note)
	Evergreen Marine Corp.	The Parent	Sales	USD 14,938	2%	30~60 days	-	-	3 USD	-	(Note)
			Purchases	USD 18,059	2%	30~60 days	-	-	154) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 58,317	7%	30 days	-	-	7,817) (USD	5%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Purchases	USD 4,439	1%	30~60 days	-	-	-	-
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 23,516	2%	30~60 days	-	-	1,161 USD	1%
			Purchases	USD 7,094	1%	30~60 days	-	-	83) (USD	-
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 16,653	2%	30~60 days	-	-	-	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 69,239	7%	30~60 days	-	-	182 USD	-	(Note)
			Purchases	USD 18,944	2%	30~60 days	-	-	18) (USD	-	(Note)

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Heavy Industrial Corp.(Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	Sales	MYR 122,182	100%	45 days	$ -	-	33,345 MYR	100%
Evergreen Shipping Agency (Europe) GmbH	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	EUR 7,371	25%	30~60 days	-	-	-	-	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	EUR 7,065	24%	30~60 days	-	-	723 EUR	1%
	Evergreen Marine Corp.	The Parent	Sales	EUR 6,767	23%	30~60 days	-	-	-	-	(Note)
Evergreen Shipping Agency (China) Co., Ltd.	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	CNY 150,240	100%	30~60 days	-	-	17,143 CNY	100%	(Note)

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 transactions.

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

Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching TWD 100 million or 20% of paid-in capital or more September 30, 2020

September 30, 2020	September 30, 2020	September 30, 2020	September 30, 2020	September 30, 2020
Table 5					Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2020 (Note 1)	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Evergreen Marine Corp.	Eva Airways Corp.	Investment accounted for using equity method	194,406 $	-	- $	-	194,406 $	- $
Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	33,345 MYR	-	-	-	17,017 MYR	-
Peony Investment S.A.	Clove Holding Ltd.	Subsidiary	7,612 USD	-	-	-	-	-	Note
Peony Investment S.A.	Colon Container Terminal, S.A.	Investee of Clove Holding Ltd. accounted for using equity method	20,243 USD	-	-	-	-	-
Everport Terminal Services Inc.	Evergreen Marine (UK) Limited	Indirectly subsidiary of the Parent Company	7,817 USD	-	-	-	5,621 USD	-	Note
Everport Terminal Services Inc.	Evergreen Marine (Singapore) Pte. Ltd.	Other related party	9,320 USD	-	-	-	6,071 USD	-
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	6,082 USD	-	-	-	4,373 USD	-	Note
Everport Terminal Services Inc.	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	4,137 USD	-	-	-	2,975 USD	-	Note
Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal, S.A.	Investee of Evergreen Marine (Hong Kong) Limited accounted for using equity method	4,562 USD	-	-	-	-	-

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 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the nine-month period ended September 30, 2020

Expressed in thousands of TWD

(Except as otherwise indicated)

Table 6

Table 6				Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 2 2	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	Taiwan Terminal Services Co.,Ltd. Taiwan Terminal Services Co.,Ltd. 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 (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Everport Terminal Services Inc. Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Greencompass Marine S.A.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3	Operating cost Accounts payable Shipowner's account - credit Operating revenue Operating cost Shipowner's account - debit Operating revenue Operating cost Shipowner's account - credit Operating revenue Operating cost Operating cost Operating cost Accounts payable Shipowner's account - credit Operating cost Operating cost Operating cost Operating cost Shipowner's account - debit Operating revenue Operating cost	623,018 $ 116,778 489,985 1,639,282 1,227,718 196,516 537,422 444,550 359,749 758,790 226,540 784,982 1,192,646 176,362 143,489 570,723 246,785 1,136,084 604,667 346,131 2,060,538 777,212	Note 4 " " " " " " " " " " " " " " " " " " " " "	0.44 0.04 0.15 1.15 0.86 0.06 0.38 0.31 0.11 0.53 0.16 0.55 0.84 0.05 0.04 0.40 0.17 0.80 0.42 0.11 1.45 0.55

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
2 2 2 3 3 3 3 3 4	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Everport Terminal Services Inc. Greencompass Marine S.A. Everport Terminal Services Inc. Evergreen Shipping Agency (China) Co., Ltd. Evergreen Marine (UK) Limited Greencompass Marine S.A. Clove Holding Ltd.	3 3 3 3 3 3 3 3 3	Operating cost Operating cost Accounts payable Operating cost Operating cost Operating cost Shipowner's account - credit Shipowner's account - credit Other receivables	568,137 $ 1,735,494 226,678 793,334 866,487 639,277 125,961 301,339 220,719	Note 4 " " " " " " " "	0.40 1.22 0.07 0.56 0.61 0.45 0.04 0.09 0.07

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

Note 4: Terms are approximately the same as for general transactions.

Note 5: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Evergreen Marine Corporation (Taiwan) Ltd.

Table 7

Information on investees (not including investee company of Mainland China)

For the nine-month period ended September 30, 2020

Expressed in thousands of shares/thousands of TWD

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of September 30, 2020	Shares held as of September 30, 2020	Shares held as of September 30, 2020	Net profit (loss) of the investee For the nine-month period ended September 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the nine-month period ended September 30, 2020 (Note 2(3))	Footnote
				Balance as of September 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine Corp.	Peony Investment S.A.	Republic of Panama	Investment activities	14,301,195 $	14,301,195 $	4,765	100.00	32,002,715 $	6,548,710 $	6,570,058 $	Subsidiary of the Company (Note)
	Taiwan Terminal Services Co., Ltd.	Taiwan	Loading and discharging operations of container yards	55,000	55,000	5,500	55.00	55,690	2,116	1,164	`〃`(Note)
	Everport Terminal Services Inc.	U.S.A	Terminal services	3,001	3,001	1	94.43	2,009,946	401,056	378,712	`〃`(Note)
	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	6,283,222	6,283,222	6,320	79.00	9,361,867	3,127,259	2,408,221	`〃`(Note)
	Evergreen Shipping Agency (Israel) Ltd.	Israel	Shipping agency	9,103	9,103	1,062	59.00	36,735	27,927	16,477	`〃`(Note)
	Charng Yang Development Co.,Ltd.	Taiwan	Development, rental, sale of residential and commercial buildings	320,000	320,000	58,542	40.00	539,651	125,753	50,301	Investee accounted for using equity method
	Evergreen International Storage and Transport Corporation	Taiwan	Container transportation and gas stations	4,840,408	4,840,408	430,692	40.36	8,990,766	548,427	221,342	`〃`
	Evergreen Security Corporation	Taiwan	General security guards services	25,000	25,000	6,336	31.25	110,232	29,437	9,199	`〃`
	EVA Airways Corporation	Taiwan	International passengers and cargo transportation	11,276,823	11,276,823	776,541	16.00	10,912,593	3,642,322) (	582,749) (	`〃`
	Taipei Port Container Terminal Corporation	Taiwan	Container distribution and cargo stevedoring	1,446,196	1,094,073	144,799	27.85	1,501,234	243,694	65,995	`〃`
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	-	3,151	-	-	-	918	39	`〃`
	VIP Greenport Joint Stock Company	Vietnam	Terminal services	178,750	178,750	13,750	21.74	291,013	145,424	31,614	`〃`
Peony Investment S.A.	Clove Holding Ltd.	British Virgin Islands	Investment holding company	1,523,798	1,523,798	10	100.00	2,652,801	16,601	16,601	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency (Europe) GmbH	Germany	Shipping agency	241,143	241,143	-	100.00	316,807	21,633	21,633	`〃`(Note)
	Evergreen Shipping Agency (Korea) Corporation	South Korea	Shipping agency	70,348	70,348	121	100.00	50,208	16,742	16,742	`〃`(Note)
	Greencompass Marine S.A.	Republic of Panama	Marine transportation	10,250,616	10,250,616	3,535	100.00	18,155,692	4,918,027	4,918,027	`〃`(Note)
	Evergreen Shipping Agency (India) Pvt. Ltd.	India	Shipping agency	34,121	34,121	100	99.99	183,568	34,882	34,882	`〃`(Note)
	Evergreen Argentina S.A.	Argentina	Leasing	4,060	4,060	150	95.00	37,366	1,986) (	1,887) (	Indirect subsidiary of the Company (Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares hel	d as of September 30, 2020	d as of September 30, 2020	Net profit (loss) of the investee For the nine-month period ended September 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the nine-month period ended September 30, 2020 (Note 2(3))	Footnote
				Balance as of September 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	PT. Multi Bina Pura International	Indonesia	Loading and discharging operations of container yards and inland transportation	247,231 $	227,368 $	17	95.03	539,413 $	61,464 $	58,409 $	`〃`(Note)
	PT. Multi Bina Transport	Indonesia	Container repair, cleaning and inland transportation	23,323	23,323	2	17.39	12,876	3,056) (	531) (	`〃`(Note)
	Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Malaysia	Container manufacturing	791,482	791,482	42,120	84.44	917,401	8,094	6,835	`〃`(Note)
	Evergreen Shipping (Spain) S.L.	Spain	Shipping agency	195,597	195,597	6	100.00	239,868	93,176	93,176	`〃`(Note)
	Evergreen Shipping Agency (Italy) S.p.A.	Italy	Shipping agency	68,202	68,202	0.55	55.00	77,874	9,238	5,081	`〃`(Note)
	Evergreen Marine (UK) Limited	U.K	Marine transportation	3,888,641	3,888,641	765	51.00	1,681,799	1,827,320	931,933	`〃`(Note)
	Evergreen Shipping Agency (Australia) Pty. Ltd.	Australia	Shipping agency	49,539	49,539	1	100.00	56,041	48,430	48,430	`〃`(Note)
	Evergreen Shipping Agency (Russia) Ltd.	Russia	Shipping agency	24,590	24,590	-	51.00	33,340	72,901	37,180	`〃`(Note)
	Evergreen Shipping Agency (Thailand) Co., Ltd.	Thailand	Shipping agency	65,041	65,041	680	85.00	76,532	44,231	37,597	`〃`(Note)
	Evergreen Agency (South Africa) (Pty) Ltd.	South Africa	Shipping agency	16,848	16,848	5,500	55.00	64,011	14,118	7,765	`〃`(Note)
	Evergreen Shipping Agency (Vietnam) Corp.	Vietnam	Shipping agency	35,696	35,696	-	100.00	495,864	164,193	164,193	`〃`(Note)
	PT. Evergreen Shipping Agency Indonesia	Indonesia	Shipping agency	28,215	28,215	0.441	49.00	104,206	47,925	23,483	Investee company of Peony accounted for using equity method
	Luanta Investment (Netherlands) N.V.	Curaçao	Investment holding company	1,378,520	1,378,520	460	50.00	1,818,945	3,970) (	1,985) (	`〃`
	Balsam Investment (Netherlands) N.V.	Curaçao	Investment holding company	12,111,862	12,111,862	0.451	49.00	573,001	315,486) (	154,588) (	`〃`
	Evergreen Shipping Agency Co. (U.A.E.) LLC	United Arab Emirates	Shipping agency	60,373	60,373	-	49.00	98,666	126,225	61,850	`〃`
	Greenpen Properties Sdn. Bhd.	Malaysia	Renting estate and storehouse company	12,354	12,354	1,500	30.00	32,609	2,601	780	`〃`
	Evergreen Marine Corp. (Malaysia) SDN.BHD.	Malaysia	Shipping agency	272,988	272,988	500	100.00	1,017,785	200,911	200,911	Indirect subsidiary of the Company (Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares hel	d as of September 30, 2020	d as of September 30, 2020	Net profit (loss) of the investee For the nine-month period ended September 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the nine-month period ended September 30, 2020 (Note 2(3))	Footnote
				Balance as of September 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	76,843 $	76,843 $	80	1.00	118,505 $	3,127,259 $	30,484 $	Investee company of Peony accounted for using equity method
	Ics Depot Services Snd. Bhd.	Malaysia	Depot services	32,303	32,303	286	28.65	66,584	23,387	6,699	`〃`
Clove Holding Ltd.	Colon Container Terminal, S.A.	Republic of Panama	Inland container storage and loading	662,883	662,883	22,860	40.00	2,497,014	6,081) (	2,432) (	Investee company of Clove Holding Ltd. accounted for using equity method
	Everport Terminal Services Inc.	U.S.A	Terminal services	188,598	188,598	0.059	5.57	278,247	401,056	22,344	Indirect subsidiary of the Company (Note)
Everport Terminal Services Inc.	Whitney Equipment LLC.	U.S.A	Equipment Leasing Company	5,800	5,800	-	100.00	228,932	16,775	16,775	`〃`(Note)
PT. Multi Bina Pura International	PT. Multi Bina Transport	Indonesia	Container repair cleaning and inland transportation	95,733	95,733	7.55	72.95	54,016	3,056) (	2,229) (	`〃`(Note)
Evergreen Marine (Hong Kong) Limited	Colon Container Terminal S.A.	Republic of Panama	Inland container storage and loading	452,361	452,361	5,144	9.00	582,263	6,080) (	547) (	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	18,893	2,871	600	100.00	18,293	918	735	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Service (Cambodia) Co., Ltd.	Cambodia	Shipping agency	5,800	5,800	200	100.00	30,691	25,545	25,545	〃(Note)
	Evergreen Shipping Agency (Peru) S.A.C.	Peru	Shipping agency	8,050	8,050	900	60.00	50,795	74,823	44,894	`〃`(Note)
	Evergreen Shipping Agency (Colombia) S.A.S	Colombia	Shipping agency	10,179	10,179	80	75.00	39,454	45,009	33,757	`〃`(Note)
	Evergreen Shipping Agency Mexico S.A. de C.V.	Mexico	Shipping agency	6,647	6,647	44	60.00	27,391	35,916	21,549	`〃`(Note)
	Evergreen Shipping Agency (Chile) SPA.	Chile	Shipping agency	9,245	9,245	2	60.00	32,540	34,367	20,620	`〃`(Note)
	Evergreen Shipping Agency (Greece) Societe Anonyme.	Greece	Shipping agency	7,838	7,838	2	60.00	33,734	25,877	15,526	`〃`(Note)
	Evergreen Shipping Agency (Isrrael) Ltd.	Isrrael	Shipping agency	148	148	18	1.00	623	27,927	279	`〃`(Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares hel	d as of September 30, 2020	d as of September 30, 2020	Net profit (loss) of the investee For the nine-month period ended September 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the nine-month period ended September 30, 2020 (Note 2(3))	Footnote
				Balance as of September 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine (Hong Kong) Limited	Evergreen Shipping Agency (Brazil) Ltd.	Brazil	Shipping agency	7,173 $	- $	120	60.00	6,178 $	- $	- $	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency Lanka (Private) Ltd.	Lanka	Shipping agency	3,515	3,515	2,160	40.00	16,619	49,543	19,817	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method
	Evergreen Shipping Agency Philippines Corporation	Philippines	Shipping agency	142,895	-	10,000	100.00	156,812	30,676	11,938	Indirect subsidiary of the Company (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 September 30, 2020’ 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 nine-month period ended September 30, 2020’ 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 nine-month period ended September 30, 2020’ 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.

Evergreen Marine Corporation (Taiwan) Ltd.

Information on investments in Mainland China

For the nine-month period ended September 30, 2020

Table 8

Expressed in thousands of TWD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2020	Net income (loss) of the investee for the nine-month period ended September 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the nine-month period ended September 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of September 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of September 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Victory Container Co., Ltd.	Inland container transportation, container storage, loading, discharging, repair and related activities	531,639 $	(2)	207,666 $	- $	- $	207,666 $	37,347 $	40.00	14,939 $	319,247 $	- $
Qingdao Evergreen Container Storage & Transportation Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	180,795	(2)	41,085	-	-	41,085	114,101	40.00	45,640	144,457	-
Kingtrans Intl. Logistics (Tianjin) Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	331,511	(2)	274,469	-	-	274,469	36,273	46.20	16,758	201,027	-	(Note)
Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	1,848,263	(2)	2,362,147	-	-	2,362,147	19,906	80.00	38,861) (	3,054,210	-	(Note)
Ever Shine (Ningbo) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	182,922	(2)	261,322	-	-	261,322	286	80.00	271	145,016	-	(Note)
Ever Shine (Shenzhen) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	260,968	(2)	454,695	-	-	454,695	2,730	80.00	3,749) (	385,779	-	(Note)
Ever Shine (Qingdao) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	211,594	(2)	370,657	-	-	370,657	2,869	80.00	306	237,816	-	(Note)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2020	Net income (loss) of the investee for the nine-month period ended September 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the nine-month period ended September 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of September 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of September 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Evergreen Shipping Agency (China) Co., Ltd.	Shipping agency	29,170 $	(2)	80,665 $	5,163 $	- $	85,828 $	30,661 $	52.00	5,103) ($	31,789 $	- $	(Note)

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Evergreen Marine Corp.	$ 4,057,869	$ 4,592,602	$ 51,003,002

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

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.
(2) Through investing in an existing company, Peony Investment S.A. and Evergreen Marine (Hong Kong) Ltd., in the third area, which then invested in the investee in Mainland China.
(3) Others
Note 2: In the ‘Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2020’ 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:
A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are audited and attested by R.O.C. parent company’s CPA.
C. Others.
Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Evergreen Marine Corporation (Taiwan) Ltd. Major shareholders information

For the nine-month period ended September 30, 2020

Table 9

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
Evergreen International S.A.(EIS)	391,786,816	8.14%
Chang, Kuo-Hua	319,646,157	6.64%
Evergreen International Corp.	262,411,866	5.45%

Note 1: The major shareholders information was from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form Note 1: which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. Note 1: The share capital which was recorded in the financial statements may differ from the actual number of shares issued in dematerialised form because of a Note 1: differenent calculation basis.
Note 2: If the aforementioned data contains shares which were kept in trust by the shareholders, the data disclosed was the settlor’s separate account for the fund set by the trustee. Note 2: As for the shareholder who reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding Note 2: ratio includes the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. Note 2: For the information of reported share equity of insider, please refer to Market Observation Post System.

AI assistant

EMC — Interim / Quarterly Report 2020

52158_rns_2020-12-21_2168c4b8-6a06-485d-92bf-2ac01f8743eb.pdf

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matter – Review Reports of Other Independent Accountants

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

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

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

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

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

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

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

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

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

the Group

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(3) Basis of consolidation

Summarised financial information of the subsidiaries: Balance sheets

Statements of comprehensive income

Statements of cash flows

(4) Foreign currency translation

(5) Classification of current and non-current items

(6) Cash equivalents

(7) Financial assets at fair value through profit or loss

(19) Intangible assets

C. Customer relationship

(20) Impairment of non-financial assets

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

(26) Derecognition of financial liabilities

(27) Offsetting financial instruments

(32) Revenue recognition

B. Rental revenue

(33) Business combinations

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

(2) Critical accounting estimates and assumptions

A. Revenue recognition

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through other comprehensive income

Equity instruments at fair value through other comprehensive income

Equity instruments at fair value

(3) Financial assets at amortised cost

(4) Notes and accounts receivable

(5) Inventories

(6) Other current assets

A. Shipowner’s accounts:

(7) Investments accounted for using equity method

B. Associates

Balance sheet

Statement of comprehensive income

(8) Property, plant and equipment, net

－ (9) Leasing arrangements lessee/ Financial liabilities for hedging

(a) Lease liabilities designated as hedges (recorded as financial liabilities for hedging)

(11) Other non-current assets

(15) Other non-current liabilities

(16) Pension

(17) Capital stock

(18) Capital surplus

(19) Retained earnings

B. Dividend policy

C. Legal reserve

(20) Other equity items

(21) Operating revenue

A. Disaggregation of revenue from contracts with customers

B. Contract assets and liabilities

(22) Other income and expenses, net

(23) Interest income

(24) Other income

(26) Finance costs

(27) Expenses by nature

EMC Interim / Quarterly Report 2020

`－` (9) Leasing arrangements lessee/ Financial liabilities for hedging