EMIC - Interim / Quarterly Report 2020

Stock Code:2614

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements

with Independent Auditors’ Review Report For the three months Ended March 31, 2020 and 2019

Address : 8F., No. 368, Sec. 1, Fuxing S. Rd., Da'an Dist., Taipei City 106, Taiwan Telephone : 886-2-2755-7565

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements I. Company history II. Approval date and procedures of the consolidated financial statements III. New standards, amendments and interpretations adopted IV. Summary of significant accounting policies V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty VI. Explanation of significant accounts VII. Related party transactions VIII. Pledged assets IX. Significant commitments and contingencies X. Losses Due to Major Disasters XI. Subsequent Events XII. Other XIII. Other disclosures (I) Information on significant transactions (II) Information on investees (III) Information on investment in Mainland China (IV) Information on principal shareholders XIV. Segment information	Page
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Contents
1.
Cover Page
2.
Table of Contents
3.
Independent Auditors’ Review Report
4.
Consolidated Balance Sheets
5.
Consolidated Statements of Comprehensive Income
6.
Consolidated Statements of Changes in Equity
7.
Consolidated Statements of Cash Flows
8.
Notes to the Consolidated Financial Statements
I. Company history
II. Approval date and procedures of the consolidated financial statements
III. New standards, amendments and interpretations adopted
IV. Summary of significant accounting policies
V. Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
VI. Explanation of significant accounts
VII. Related party transactions
VIII. Pledged assets
IX. Significant commitments and contingencies
X. Losses Due to Major Disasters
XI. Subsequent Events
XII. Other
XIII. Other disclosures
(I) Information on significant transactions
(II) Information on investees
(III) Information on investment in Mainland China
(IV) Information on principal shareholders
XIV. Segment information

Page

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Independent Auditors’ Report

To the Board of Directors of Eastern Media International Corporation:

Foreword

We have reviewed the Consolidated Balance Sheet of Eastern Media International Corporation and its subsidiaries as of March 31, 2020 and 2019, the Consolidated Statement of Comprehensive Income as of January 1 to March 31, 2020 and 2019 as well as the Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and the Notes to the Consolidated Financial Statements (including important accounting policies summary). The preparation of consolidated financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” issued by the Financial Supervisory Commission, which became effective, is the responsibility of management; our responsibility is to come to a conclusion for these consolidated financial statements based on our review.

Scope

Except as stated in the section of the basis for qualified conclusion, we conducted our review in accordance with Statements on Auditing Standards No. 65, “The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements”. A review of the consolidated financial statements consists of inquiries (primarily of persons responsible for financial and accounting matters), analytical procedures and other review procedures. A review is substantially less in scope than an audit, and consequently, we may not be able to discern all significant matters that could be identified in an audit and express an opinion on those matters.

Basis for qualified conclusion

As discussed in Note IV (II) to the consolidated financial statements, the data and information of part of the immaterial subsidiaries included in the consolidated financial statements mentioned above were based on the unaudited financial statements of these investees for the same period. Total assets as of March 31, 2020 and 2019 were $942,407 and $471,910, respectively, representing 6.39% and 4.03% of the consolidated total assets; total liabilities were $29,295 and $37,507, respectively, representing 0.37% and 0.74% of the total consolidated liabilities; the consolidated income for the years ended March 31, 2020 and 2019 was $32,165 and $11,470, respectively, representing 63.51% and 18.77% of the total consolidated income.

In addition to the above, as discussed in Note VI (VIII) to the consolidated financial statements, the Company and its subsidiaries' investments under the equity method amounted to $2,040,569 and $2,157,637 for the year ended March 31, 2020 and 2019, respectively, and their respective shares of ($27,674) and ($9,932) in the gains and losses of affiliates and joint ventures under the equity method for the year ended March 31, 2020 and 2019, respectively, were based on the unaudited financial statements of these investees for the same periods.

Qualified Conclusion

Based on our review, except that the the unaudited financial statements of these investees mentioned in the section of the basis for qualified conclusion may result in adjustments in the consolidated financial reports, we are not aware of any material modifications that should be made to

the consolidated financial statements referred to above for them to be in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS No. 34 “Interim Financial Reporting” issued by the Financial Supervisory Commission, which may affect the presentation of the consolidated financial position of Eastern Media International Corporation and its subsidiaries as of March 31, 2020 and 2019, and the consolidated financial results and consolidated cash flows from January 1 to March 31, 2020 and 2019.

KPMG

Taipei Taiwan (Republic of Chian) April 29, 2020

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In Thousands of New Taiwan Dollars)

December 31, 2019(Audited)	March 31, 2019(Reviewed)	March 31, 2019(Reviewed)	March 31, 2020(Reviewed)	December 31, 2019(Audited)	December 31, 2019(Audited)	March 31, 2019(Reviewed)	March 31, 2019(Reviewed)
Amount % $1,829,578 12 242,539 2 63,781 - 329,927 2 21,799 - 164,114 1 2,807 - 274,144 2 8,381 - 75,618 1 194,919 2 354 - 615 - 3,208,576 22 13,123 - 2,459,062 16 1,439,296 10 490,834 3 6,762,163 45 214,855 2 281,990 2 750 - 35,138 - 11,697,211 78 $14,905,787 100	Amount	% Liabilities and Equity Amount Current liabilities: 13 2100 Short-term borrowings (Note VI (XI), (XV) and VIII) $10,000 7 2110 Short-term notes and bills payable (Note VI (XVI) and VIII) 19,929 1 2130 Current contract liabilities (Note VI (XXIV) and VII) 23,535 2 2150 Notes payable 33,763 - 2170 Accounts payable (Note VII ) 147,293 2 2200 Other payables (Note VI (II), (XXX) and VII) 680,627 - 2230 Current tax liabilities 26,250 1 2250 Current provisions (Note VI (XIX)) - - 2310 Advance receipts 6,892 - 2320 Long-term liabilities, current portion (Note VI (XI), (XVII) and VIII) 92,745 2 2399 Other current liabilities, others (Note VII) 26,306 - 2280 Current lease liabilities (Note VI (XVIII)) 909,348 - 2260 Liabilities directly related to non-current assets held for sale (or disposal groups) (Note VI (VII)) - 28 1,976,688 Non-current liabilities: 2540 Long-term borrowings (Note VI (XI), (XVII) and VIII) 295,318 - 2610 Long-term notes and accounts payable - 23 2580 Non-current lease liabilities (Note VI (XVIII)) 5,659,139 10 2640 Non-current net defined benefit liability 27,854 1 2645 Guarantee deposits received 7,118 36 5,989,429 - Total liabilities 7,966,117 2 Equity attributable to owners of parent (Note VI (XXII)) - 3100 Capital stock 5,567,899 - 3200 Capital surplus 20,769 72 3300 Retained earnings 1,055,142 3400 Other equity interest (221,198) Total equity attributable to owners of parent 6,422,612 100 36XX Non-controlling interests ((Note VI (X)) 348,208 Total equity 6,770,820 Total liabilities and equity $14,736,937	% - - - - 1 5 - - - 1 - 6 - 13 2 - 39 - - 41 54 38 - 7 (1) 44 2 46 100	Amount $58,000 20,000 24,913 44,806 207,335 761,581 22,061 - 14,534 67,789 28,997 954,147 - 2,204,163 338,000 - 5,874,708 31,549 7,188 6,251,445 8,455,608 5,567,899 20,769 1,000,273 (227,801) 6,361,140 89,039 6,450,179 $14,905,787	% 1 - - - 1 6 - - - 7 - 15 2 - 40 - - 42 57 37 7 (2) 42 1 43 100	Amount	%
	$ 1,483,603 820,454 130,730 163,481 24,199 178,287 47,028 126,414 - 58,180 256,084 630 12,719					$ - - 18,722 4,055 50,253 478,889 11,581 7,630 25,871 - 29,817 638,598 646	- - - - - 4 - - - - - 6 -
	3,301,809					1,266,062	10
	13,073 2,646,251 1,194,059 81,664 4,242,737 20,968 180,485 750 14,815					42,361 915 3,704,517 25,639 4,034	- - 32 - -
						3,777,466	32
						5,043,528	42
						5,567,899 5,165 1,243,203 (177,075)	49 - 11 (2)
	8,394,802
						6,639,192	58
	$ 11,696,611					13,891	-
						6,653,083 $11,696,611	58 100

(See accompanying notes to consolidated financial statements.)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income

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

	For the three months ended March	For the three months ended March	For the three months ended March	For the three months ended March	For the three months ended March	31
	2020				2019
$	Amount 1,065,053 731,996 333,057 348,610 42 15,595) 13,668 21,131 55,741 ) 35,581 956 ) 44,967) 44,011 - 44,011 14 ) 1 ) - 15) 1,179 5,466 - 6,645 6,630 50,641		％ 100 69 31 33 - 2) 2 2 5) 3	Amount $ 587,870 415,355 172,515 170,696 ( 767) 2,586 16,956 140,271 ( 36,905 ) 17,280 140,188 ( 499) 140,687 ( 85,752) 54,935 43 4 - 47 6,822 ( 697 ) - 6,125 6,172 $ 61,107		％ 100 71 29 29 - - 3 24 ( 6) 3 24 - 24 ( 15) 9 - - - - 1 - - 1 1 10


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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Cotn’d) (In Thousands of New Taiwan Dollars, Except Earnings (Losses) Per Share) (Reviewed, Not Audited)

	For the three months ended March	For the three months ended March	For the three months ended March	For the three months ended March	For the three months ended March
	2020				2019
$ (	Amount 54,869 10,858) ( 44,011 61,472 10,831) ( 50,641 $ 0.10 $ - $ 0.10 $ 0.10 $ - $ 0.10		(	％ 5 1) 4 6 1) 5	Amount ％ $ 60,372 10 ( 5,437) ( 1) $ 54,935 9 $ 66,519 11 ( 5,412) ( 1) $ 61,107 10 $ 0.26 ($ 0.15) $ 0.11 $ 0.26 ($ 0.15) $ 0.11

$					$
$ (			(		$ (
$					$

		$ -
		$ 0.10
		$ 0.10
		$ -
		$ 0.10

(See accompanying notes to consolidated financial statements.)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	Equityattributable to	Equityattributable to	Equityattributable to	owners ofparent	owners ofparent	owners ofparent		Total equity
Capital surplus $ 5,165 - - - - - $ 5,165 $ 20,769 - - - - $ 20,769	Retained earnings			Total other equity interest			Treasury shares
				Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
	Legal reserve $ 40,203 - - - - - $ 40,203 $ 147,303 - - - - $ 147,303	Special reserve $ 39,310 - - - - - $ 39,310 $ 183,222 - - - - $ 183,222	Unappropri ated retained earnings $ 1,103,318 60,372 - 60,372 - - $ 1,163,690 $ 669,748 54,869 - 54,869 - $ 724,617
				($ 168,588) - 6,121 6,121 - - ($ 162,467) ($ 224,130) - 6,611 6,611 - ($ 217,519)		($ 14,634) ( - 26 26 - - ($ 14,608) ($ 3,671) - ( 8) ( 8) - ($ 3,679)	$ 11) - - - 11 - $ - $ - - - - - $ -	$ 8,213,236 54,935 6,172 61,107 44 ( 1,621,304) $ 6,653,083 $ 6,450,179 44,011 6,630 50,641 270,000 $ 6,770,820

(See accompanying notes to consolidated financial statements.)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Expressed in Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

Cash flows from operating activities: Profit (loss) from continuing operations before tax Loss from discontinued operations before tax Profit (loss) before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Net gain on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plan and equipment Gain on disposal of intangible assets Gain on disposal of investments Provisions for liabilities Expected credit loss (Reversal interest) Impairment loss on non-financial assets Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets, net: Decrease (increase) in current financial assets at fair value through profit or loss Decrease (increase) in notes receivable Decrease in accounts receivable Decrease (increase) in other receivable Decrease in inventories Decrease in biological assets Decrease in prepayments Increase in other current assets Decrease in other operating assets Total changes in operating assets, net Changes in operating liabilities, net: Decrease in contract liabilities Decrease in notes payable Decrease in accounts payable Decrease in other payable Increase (decrease) in receipts in advance Decrease in other current liabilities Decrease in non-current net defined benefit liability Decrease in other operating liabilities Net changes in operating assets and liabilities Total adjustments Cash outflow generated from operations Income taxes paid Net cash flows from (used in) operating activities (outflow)	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2020 ($ 956) - ( 956) 300,704 10,450 12,131 55,741 ( 4,675) ( 35,581) 108 - ( 82) - 42 - 338,838 ( 32,075) 18,529 117,564 99 1,071 985 12,158 ( 98) 20,733 138,966 ( 1,378) ( 11,079) ( 60,040) ( 84,924) ( 7,718) ( 2,691) ( 3,695) ( 171,525) ( 32,559) 306,279 305,323 ( 2,153) 303,170		2019
		$ 140,188 ( 85,752) 54,436 183,851 2,373 ( 92,357) 38,844 ( 11,428) ( 17,280) 1,003 ( 12,510) ( 4,666) 2,620 ( 767) 17,051 106,734 2,010 ( 4,918) 39,177 ( 40,073) 8,211 - 20,163 - 17,152 41,722 ( 25,376) ( 225) ( 5,494) ( 264,642) 43,549 - ( 19,889) ( 272,077) ( 230,355) ( 123,621) ( 69,185) ( 1,165) ( 70,350)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Cotn’d)

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

Cash flows from (used in) investing activities: Proceeds from disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Increase in other receivables Acquisition of intangible assets Capital reduction of non-current financial assets at fair value through other comprehensive income Loss of control of subsidiary Decrease in other financial assets Increase (decrease) in non-current assets Interest received Net cash flows (used in) from investing activities Cash flows from (used in) financing activities: Short-term loans repayment Decrease in long-term debt Payment of lease liabilities Decrease in guarantee deposits received Interest paid Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash and cash equivalents reported in the statement of financial position Assets classified as held for sale, net Cash and cash equivalents at end of period	Jan 1 to Mar 31 2020 $ 778 ( 122,806) 30 ( 201,044) ( 20,000) ( 7,041) - - - ( 205,751) 4,786 ( 551,048) ( 48,000) ( 18,276) ( 209,411) ( 70) ( 54,960) 270,000 ( 60,717) 2,408 ( 306,187) 1,829,578 $ 1,523,391 $ 1,523,391 - $ 1,523,391	Jan 1 to Mar 31 2019
		($ 7,888) ( 19,463) 1,826 8,635 - ( 2,544) 24,798 ( 1,271,295) 11,050 11,878 11,489 ( 1,231,514) - ( 621,450) ( 167,060) ( 221) ( 41,184) - ( 829,915) 6,815 ( 2,124,964) 3,617,401 $ 1,492,437 $ 1,483,603 8,834 $ 1,492,437

(See accompanying notes to consolidated financial statements.)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Nntes To Consolidated Financial Statements For The Three Months Ended MARCH 31, 2020 AND 2019 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise) (Reviewed, Not Audited)

I. Company history

Eastern Media International Corporation (the “Company”) was established on May 14, 1975. In order to enhance the operating performance and expand the business scope, the Company merged with Grain Union Transport Ltd. on May 15, 1989. The Company’s shares listed on the Taiwan Stock Exchange, classified in the shipping category, on September 25, 1995. In recent years, as the proportion of revenue from shipping has declined and the proportion of revenue from trade has increased to more than 50% of overall revenue, the Company’s shares have changed classification to the retail sales category, as approved by the Taiwan Stock Exchange on July 1, 2014.

The Company's business development is mainly based on diversification. In addition to land development, grain trading and consumer product development and sales, the Company has diversified into new businesses such as cross-strait trade platform and multimedia shopping through its investment in subsidiaries since 2009.

The main businesses of the Company and its subsidiaries (the “Group”) include forwarding, loading and unloading cargo onto/from ships, the handling and operation of wharf and transit shed facilities, selling pet food and supplies, providing pet beauty service, video advertising services and the production of related shows. Lease contracts of the shipping operations were all terminated advancely in June, 2019 and were disclosed as the discontinued operations. Please refer to Note XII for details.

II. Approval date and procedures of the consolidated financial statements:

The consolidated financial statements were authorized for issuance by the Board of Directors on May 14, 2020.

III. New standards, amendments and interpretations adopted:

(I) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted. The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2020.
New, Revised or Amended Standards and Interpretations Effective date per IASB Amendments to IFRS 3 “Definition of a Business” January 1, 2020 Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate January 1, 2020

Benchmark Reform”

Amendments to IAS 1 and IAS 8 “Definition of Material”

January 1, 2020

The Group believes that the adoption of the above IFRSs would not have any material impact on its consolidated financial statements.

(II) The impact of IFRS issued by IASB but not yet endorsed by the FSC

As of the date, the following IFRSs that have been issued by the International Accounting Standards Board (IASB), but have not yet to be endorsed by the FSC:

New, Revised or Amended Standards and Interpretations Effective date per IASB Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Effective date to be Assets Between an Investor and Its Associate or Joint Venture” determined by IASB IFRS 17 “Insurance Contracts” January 1, 2021 Amendments to IAS 1 “Classification of Liabilities as Current January 1, 2022

or Non-current”

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

IV. Summary of significant accounting policies:

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”) and International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”.The consolidated financial statements do not include all of the information required to be disclosed in a full annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), and Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”), as endorsed by the FSC.

Except as described below, the significant accounting policies used in this consolidated financial statement are the same as those used in the 2019 consolidated financial statements; see Note IV to the 2019 consolidated financial statement for related information.

(II) Basis of consolidation

1. List of subsidiaries in the consolidated financial statements:

Investor	Subsidiary	Nature of business	Shareholding ratio	Shareholding ratio	Shareholding ratio	Notes
			March 31, 2020	December 31, 2019	March 31, 2019
The Company The Company The Company	Far Eastern Silo & Shipping (Panama) S.A.(FESS-Panama) Far Eastern Silo & Shipping International (Bermuda) Ltd.(FESS-Bermuda) Eastern Investment Co., Ltd. (EIC)	Shipping and leasing service, holding company Investing activities Investing activities	100.00% 100.00% 97.90%	100.00% 100.00% 97.90%	100.00% 100.00% 97.90%	Note A Note A (Note 5) Note A

Investor	Subsidiary	Nature of business	Shareholding ratio	Shareholding ratio	Shareholding ratio	Notes
			March 31, 2020	December 31, 2019	March 31, 2019
The Company The Company The Company The Company The Company The Company The Company The Company The Company EIC EIC EIC EIC EIC EILF EILF TKLF TKLF ET New Media ET New Media ET New Media ET New Media ET New Media ET Pet ET Pet ET Pet FESS-Pana ma FESS-Pana ma	Grand Richness Trading (Hong Kong) Co. (Grand Richness (Hong Kong)) Investing activities Eastern International Lease Finance Co., Ltd. (EILF) Leasing Tung Kai Lease Finance Co., Ltd. (TKLF) Leasing Eastern Home Shopping & Leisure Co., Ltd. (EHS) Department stores, supermarkets, online stores ET New Media (ETtoday ) Holdings Co., Ltd. (ET New Media) Advertising EHR Hotels & Resorts Group Yilan (EHR) Leisure site management, catering business Mohist Web Technology Co., Ltd. (MWT) Application Service Eastern New Retail Department (EIM) Co., Ltd. (ET New Retail Department) Agency service Tunglin Asset Management Co. (Tunglin Asset Management Co.) Real estate leasing Eastern International Lease Finance Co., Ltd. (EILF) Leasing Tung Kai Lease Finance Co., Ltd. (TKLF) Leasing EHR Hotels & Resorts Group Yilan (EHR) Leisure site management, catering business ET New Media (ETtoday ) Holdings Co., Ltd. (ET New Media) Advertising Eastern Home Shopping & Leisure Co., Ltd. (EHS) Department stores, supermarkets, online stores Tung Kai Lease Finance Co., Ltd. (TKLF) Leasing EHR Hotels & Resorts Group Yilan (EHR) Leisure site management, catering business Eastern International Lease Finance Co., Ltd. (EILF) Leasing EHR Hotels & Resorts Group Yilan (EHR) Leisure site management, catering business Show Off Co., Ltd. (Show Off) Video advertising service ET Pet Co., Ltd (ET Pet) Pet food and supplies and providing pet beauty service Dung sen shin guangyun Co., Ltd. (Dung sen shin guang yun) Audiovisual and singing, information leisure Dung sen dianjingyun Co., Ltd. (Dung sen dian jing yun) Amusement park information leisure Dung sen shin wen yun Co., Ltd. (Dung sen shin wen yun) Video advertising service Oscar Pet Co., Ltd. (Oscar) Pet food and supplies and providing pet beauty service Pet Kingdom Co., Ltd. (Pet Kingdom) Pet food and supplies and providing pet beauty service Kaou Sin Trading Co., Ltd. (Kaou Sin) Pet food and supplies and providing pet beauty service Grand Scene Media Corporation (GSMC-Cayman) Investing activities Eastern Communication (Hong Kong) Ltd. (Eastern Investing activities		100.00% 53.77% 53.76% - % 89.20% 60.40% 51.00% - % 55.00% 10.00% 10.00% 13.20% 1.05% - % 36.00% 13.20% 36.00% 13.20% 100.00% 92.50% 100.00% 100.00% 100.00% 80.00% 80.00% 80.00% 100.00% 100.00%	100.00% 53.77% 53.76% - % 89.20% 60.40% 51.00% - % - % 10.00% 10.00% 13.20% 1.05% - % 36.00% 13.20% 36.00% 13.20% 100.00% 92.50% 100.00% 100.00% 100.00% 80.00% 80.00% 80.00% 100.00% 100.00%	100.00% 53.77% 53.76% - % 93.90% 60.40% 51.00% - % - % 10.00% 10.00% 13.20% 1.10% - % 36.00% 13.20% 36.00% 13.20% 100.00% 100.00% 100.00% 100.00% - % - % - % - % 100.00% 100.00%	Note A (Note 5) Note A Note A Note 2 Note A (Note 4) Note A Note A (Note 5) Note 1 Note A (Note 5 and 12) Note B Note B Note B Note B (Note 4) Note 2 Note B Note B Note B Note B Note C (Note 5) Note C (Note 7) Note C (Note 5 and 8) Note C (Note 5 and 9) Note C (Note 5 and 10) Note C (Note 11) Note C (Note 11) Note C (Note 11) Note C (Note 5) Note C (Note 5)

Investor	Subsidiary	Nature of business	Shareholding ratio	Shareholding ratio	Shareholding ratio	Notes
			March 31, 2020	December 31, 2019	March 31, 2019
Communication Hong Kong) FESS-Berm uda Xiang Fu Trading (Shanghai) Ltd. (Xiang Fu (Shanghai)) Grand Richness (Hong Kong) Sheng Hang Trading (Shanghai) Ltd. (Sheng Hang (Shanghai)) EHS Yongliang Commercial and Trading Co., Ltd. (Yongliang) EHS DongsenD'Amour SPA EHS Assuran Co., Ltd (Assuran) EHS Strawberry Cosmetics Holdings Limited Eastern Communicat ion (Hong Kong) Xiang Fu Trading (Shanghai) Ltd. (Xiang Fu (Shanghai)) Xiang Fu (Shanghai) Shanghai Rich Industry Ltd. (Shanghai Rich) GSMC-Cay man Sen Want Trading (Hong Kong) Ltd. (Sen Want (Hong Kong)) Sen Want (Hong Kong) Nanjing Yun Fu Trading Ltd. (Nanjing Yun Fu) Sen Want(Hong Kong) Eastern Enterprise Custom Broker Ltd. (Eastern En) Sen Want(Hong Kong) Eastern Biotechnology (Shanghai) (Eastern Food (Shanghai)) Ltd. (Eastern Biotechnology (Shanghai)) Sen Want(Hong Kong) Eastern Enterprise Shanghai Logistics Ltd. Strawberry Cosmetics Holdings Limited Strawberry Cosmetics (Services) Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics (Australasia) Limited Strawberry Cosmetics Strawberry Cosmetics (China) Limited		Cosmetics, jewelry, and household sundries wholesaling and support services Food and grocery, home appliance wholesale and retail trade Department stores, supermarkets, online stores Software design services, advertising Cosmetics, spat Cleaning supplies Skin care, perfume, cosmetics retail Cosmetics, jewelry, and household sundries wholesaling and support services Producing and broadcasting TV programs, wholesale and retail groceries business Investing activities, trading Paper products, clothing, shoes & hats, entertainment products, toys import and export Support services and management consultancy Transport consulting service Selling agricultural products, packaged food Container transport, domestic road freight agent General service industry Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail	8.77% - % - % - % - % - % 91.23% 100.00% 100.00% 100.00% -% -% 100.00% - % - % - %	8.77% - % - % - % - % - % 91.23% 100.00% 100.00% 100.00% - % 100.00% 100.00% - % - % - %	8.77% - % - % - % - % - % 91.23% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% - % - % - %	Note C (Note 5) Note 6 Note 2 Note 2 Note 2 Note 2 Note C (Note 5) Note C(Note 5) Note C (Note 5) Note C (Note 5) Note C (Note 3 and 5) Note C (Note 3 and 5) Note C (Note 5) Note 2 Note 2 Note 2

Investor	Subsidiary	Nature of business	Shareholding ratio	Shareholding ratio	Shareholding ratio	Notes
			March 31, 2020	December 31, 2019	March 31, 2019
Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited Strawberry Cosmetics Holdings Limited	Strawberry Cosmetics (Multinational) Limited Strawberry Cosmetics (Brands) Limited Strawberry Cosmetics (International) Limited Strawberry Cosmetics (Japan) Limited Strawberry Cosmetics (Greater China) Limited Strawberry Cosmetics (East Asia) Limited Strawberry Cosmetics (USA) Limited Strawberry Limited Strawberry Cosmetics (Internet Services) Limited	Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Skin care, perfume, cosmetics retail Advisory service industry	- % - % - % - % - % - % - % - % - %	- % - % - % - % - % - % - % - % - %	- % - % - % - % - % - % - % - % - %	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note A: The investee company is directly held over 50% by the Company.

Note B: The investee company is directly held over 50% by the Group.

Note C: The investee company is directly held over 50% by the Company’s subsidiaries.

Note 1: The Company had sold all of its shares of EIM to EHS and the registration of share transfer was completed on March 29, 2019, which made the Company lose the control of EIM. EIM was renamed ET New Retail Department in April in the same year by the permission of the New Taipei City Government.

Note 2: The merger of Sen Sen Home Shopping Co., Ltd. (U life) and Eastern Home Shopping & Leisure (EHS) had been approved by the shareholders, with EHS as the surviving company and U life as the dissolved entity. The merger date was set on April 1, 2017. According to the contractual agreement, the Group has control over EHS and subsidiaries, making them its subsidiary and sub subsidiary, respectively. Therefore, the new directors and supervisors of EHS had been elected on April 27, 2017, with the approval of the shareholders, resulting in the Group to obtain more than half of the board seats, including that of the chairman. In addition, EHS re elected directors and supervisors in advance on December 27, 2018. The Group has not obtained more than half of the seats. The contract agreement signed with other stockholders who had voting rights was cancelled due to the re election. As the new directors and supervisors takes over the office on January 1, 2019, the Group will not acquire enough control over EHS and it will not be a subsidiary of the Group.
Noto 3: Sen Want (Hong Kong) disposed all of its shares of Eastern En and Eastern Biotechnology (Shanghai), with the completion of their share transfer registration procedures on June 21, 2019 and January 20, 2020, respectively. For details of non-current assets classified as held for sale, please refer to Note VI (VII).
Note 4: Dung sen shin wen yun was renamed as ET New Media on February 11, 2019 with the permission of the Taipei City Government. On July 5, 2019, its board of directors approved a capital increase, wherein the Company and EIC each invested at an amount unproportionate to their previous shareholding ratio, resulting in a decrease in their shareholding percentage in ET New Media. All registration procedure had been completed on September 10, 2019.
Note 5: As an immaterial subsidiary, the financial statements have not been reviewed.
Note 6: Sheng Hang Trading (Shanghai) has finished liquidation on February 21, 2019.
Note 7: On January 18, 2019, ET Pet was established and fully owned by ET New Media. On June 9, 2019, its board of directors approved a capital increase , wherein ET New Media invested at an amount unproportionate to its previous shareholding ratio, resulting in a decrease its shareholding percentage in ET Pet. All registration procedure had been completed on September 5, 2019.
Note 8: Dung sen shin guang yun was established on January 22, 2019.
Note 9: Dung sen dian jing yun was established on January 19, 2019.
Note 10: Dung sen shin wen yun was established on August 22, 2019.
Note 11: ET Pet decided to acquire 80% shares of Oscar, Pet Kingdom and Kaou Sin on September 11, 2019, with the payments being made on September 12, 2019. The registrations of share transfer of these three companies were completed on October 1, 2019.
Note 12: On January 2, 2020, the Company’s Board of Directors resolved to invest $100,000 thousand in Tunglin Asset Management Co., with a 100% shareholding, which was registered on February 24, 2020; on March 10, 2020, the Company invested $230,000 thousand in Tunglin Asset Management Co. without increasing its capital in proportion to its shareholding, thereby reducing its shareholding to 55%. All registration procedure had been completed on Apirl 5, 2020.

2. Subsidiaries excluded from the consolidated financial statements: None.

(III) Income taxes

The Group measures and discloses its income tax expense for the interim period in accordance with paragraph B12 of IAS 34, “Interim Financial Reporting”.

Income tax expense is measured by multiplying net income before income taxes in the interim reporting period by management's best estimate of the expected effective tax rate for the full year, and is recognized in full as current income tax expense.

Income tax expense, which is recognized directly in equity or other comprehensive income, is measured as the temporary difference between the carrying amount of the related assets and liabilities for financial reporting purposes and their tax bases at the applicable tax rates that are expected to be applied when the related assets and liabilities are realized or settled.

(IV) Employee benefits

The pension for the interim period are determined based on the actuarially determined pension cost ratio as of the end of the previous reporting period and adjusted for significant market fluctuations, and significant curtailments, settlements or other significant one-time events.

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs endorsed by the FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the consolidated financial statements, the significant accounting assumptions and judgments, and major sources of estimation uncertainty made by management in the adoption of the Group's accounting policies are consistent with Note V to the consolidated financial statements for 2019.

VI. Explanation of significant accounts:

Except as described below, the explanation of significant accounts in this consolidated financial report has not differed materially from the 2019 Consolidated Financial Statements; see Note VI of the 2019 Consolidated Financial Statements for related information.

(I) Cash and cash equivalents

Cash on hand Cash in banks Cash and cash equivalents Cash and cash equivalents in the consolidated statement of cash flows		March 31, 2020	December 31, 2019	December 31, 2019	December 31, 2019	March 31, 2019
		$ 9,673 1,407,789 105,929 $ 1,523,391		$ 9,575 1,027,996 792,007 $ 1,829,578		$ 4,909 1,164,819 313,875 $ 1,483,603

The deposit accounts of $94,233, $109,666, and $250,000 which did not meet the definition of cash and cash equivalents, were classified as other financial assets – current for March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

Please refer to Note VI (XXVII) for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

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

March 31, 2020 December 31, 2019 March 31, 2019

Financial assets designated as at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic $ 278,623 $ 242,539 $ 820,454 markets
Please refer to Note VI (XXVII) for the remeasurement of fair value.
As of March 31, 2020, the amount of $16,140 outstanding (recorded as other payables) for the acquisition of financial assets at fair value through profit or loss had been paid in full by the Group as of the audit date.
No Financial assets were pledged as collateral on March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

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

March 31, 2020 December 31, 2019 March 31, 2019 Equity investments at fair value through other comprehensive Unlisted common shares $ 13,109 $ 13,123 $ 13,073 domestic Company

Equity investments at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for longterm for strategic purposes.

The Group did not dispose of strategic investments from January 1 to March 31

2020 and 2019 and the accumulated gains and losses during these periods have not been transferred in equity.

In 2019, the Group received the cash return of $24,798 from Want Want Broadband Co., Ltd., which has rendered the capital reduction through a cash return to its shareholders. The above transaction had been approved during the interim shareholders' meeting on January 21, 2019. The Group has also sold its shares held in Want Want Broadband Co., Ltd. at fair value of $181. The Group realized a loss of $10,738, which was recognized in other comprehensive income, then later on, reclassified to retained earnings.

For credit risk and market risk; please refer to Note VI (XXVII).
No Financial assets mentioned above were pledged as collateral

(IV) Notes receivable (including related parties)

Notes receivable Installment notes receivable Accounts receivable Less: Allowance for doubtful accounts Unrealized interest revenue	March 31, 2020 December 31, 2019 $ 4,746 $ 4,264 42,049 62,065 263,373 380,995 ( 29,605 ) ( 29,563 ) ( 1,291) ( 2,254) $ 279,272 $ 415,507		March 31, 2019
			$ 7,166 148,560 202,134 ( 28,232 ) ( 11,218) $ 318,410

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information.

The loss allowance provision in trading segment was determined as follows:

Current More than 91 days past due			March 31, 2020
		Gross carrying amount $ 15,893 427 $ 16,320	Weighted average loss rate -% 100.00%	Loss allowance provision $ - 427 $ 427

December 31, 2019

Gross carrying amount $ 14,317 432 $ 14,749	Weighted average loss rate -% 100.00% March 31, 2019	Loss allowance provision $ - 432 $ 432

Gross carrying amount $ 1,013	Weighted average loss rate -%	Loss allowance provision $ -

The loss allowance provision in media segment was determined as follows:

	March 31, 2020
Gross carrying amount Weighted average loss rate $ 175,250 0.21 % 8,424 10.93 % 2,713 27.99 % 1,500 64.88 % 3,524 100.00% $ 191,411 December 31, 2019		Loss allowance provision $ 365 921 759 973 3,524 $ 6,542

Gross carrying amount $ 276,345 11,419 1,269 105 2,371 $ 291,509	Weighted average loss rate 0.21 % 10.09 % 28.24 % 64.79 % 100.00% March 31, 2019	Loss allowance provision $ 589 1,153 358 68 2,371 $ 4,539

Gross carrying amount $ 151,577 4,536 2,487 326 1,167 $ 160,093	Weighted average loss rate 0.19 % 6.71 % 25.36 % 60.70 % 100.00%	Loss allowance provision $ 294 304 631 198 1,167 $ 2,594

The loss allowance provision in shipping segment was determined as follows:

March 31, 2019 Gross carrying Weighted Loss allowance

Current		amount $ 10,139	average loss rate -%	provision
				$ -

The loss allowance provision in other segments was determined as follows:

	March 31, 2020
Gross carrying amount $ 65,197 2,505 8,389 139 662 $ 76,892	Weighted average loss rate 0.00~ 1.98% 0.00~58.78% 0.00~83.80% 2.00~100.00% 100.00% December 31, 2019	Loss allowance provision (Note) $ 391 544 1,568 139 662 $ 3,304

Gross carrying amount $ 107,467 3,099 2,365 418 1,209 $ 114,558	Weighted average loss rate 0.00~ 2.22% 0.00~60.52% 0.00~85.83% 2.13~100.00% 100.00% March 31, 2019	Loss allowance provision (Note) $ 756 1,068 1,076 418 1,209 $ 4,527

Gross carrying amount $ 143.590 2.553 2.219 177 7.648 $ 156.187	Weighted average loss rate 0~5.63 % 0~43.22 % 0~64.77 % 100.00 % 100.00 %	Loss allowance provision (Note) $ 436 196 88 177 7,648 $ 8,545

Note: As of March 31, 2020, December 31, 2019, and March 31, 2019, the receivables amounted to $24,254, $24,254, and $19,210 were unrecoverable due to the financial difficulty of the customers. Therefore, the Group had recognized the allowance for doubtful accounts for all of its receivables.

The movement in the allowance for notes and trade receivable was as follows:

Balance on January 1 Impairment losses recognized Reversal of impairment losses Amounts written off as irrecoverable during the financial year Recognized as overdue receivables Loss of control of subsidiary Foreign exchange gains Balance on March 31		Three Months Ended March 31	Three Months Ended March 31
		2020 $ 29,563 42 - - - - - $ 29,605	2019
			$ 84,105 558 ( 1,325) ( 7,545) ( 10,315) ( 37,388) 142 $ 28,232

No Financial assets mentioned above were pledged as collateral.

(V) Other receivables(including related parties)

Other accounts receivable—loans to associates Other accounts receivable—others Less: Loss allowance		March 31, 2020	December 31, 2019 $ 130,000 65,903 ( 28,982) $ 166,921		March 31, 2019
		$ 150,000 39,942 ( 1,697 ) $ 188,245			$ 175,000 78,734 ( 28,419) $ 225,315

As of March 31, 2020, December 31, 2019, and March 31, 2019, the aging analysis

of other receivables, which were past due but not impaired, was as follows:

Past due less than 365 days Past due more than 365 days		March 31, 2020		December 31, 2019 $ 1,779 447 $ 2,226		March 31, 2019
		$ 1,609 143 $ 1,752				$ 120 1,722 $ 1,842

The overdue receivables amounted to $334,271, $335,271 and $333,613 on March 31, 2020, December 31, 2019, and March 31, 2019, respectively. Therefore, the Group had recognized the allowance for doubtful accounts for all of its overdue receivables.
For credit risk and market risk; please refer to Note VI (XXVII).
(VI) Inventories

nventories
Goods held for sale Raw materials and others (including fuel)		March 31, 2020	December 31, 2019 $ 248,074 26,070 $ 274,144		March 31, 2019
		$ 244,108 28,218 $ 272,326			$ 46,544 79,870 $ 126,414

The inventory market price recovery gain was $0 and $4,584 for the years ended March 31, 2020 and 2019, respectively.
No inventories were pledged as collateral on March 31, 2020, December 31, 2019, and March 31, 2019, respectively.
(VII) Non-current assets held for sale (or discontinued operations)
Within a year’s time, the Group expected to dispose all of its shares in its fully owned subsidiaries, Eastern Biotechnology (Shanghai) and Eastern En, wherein the disposal is to be recognized as non-current assets held for sale (or discontinued operation). The

disposal of Eastern En has been completed on June 21, 2019; and the disposal of Eastern Biotechnology (Shanghai) has been completed on January 20, 2020.

No non-current assets held for sale (or discontinued operations) were pledged as collateral.
For the registration of share transfer; please refer to Note VI (X).
(VIII) Investments accounted for using equity method
1. The Group’s financial information for investments accounted for using the equity method at the reporting date was as follows:

Natural Beauty bio-technology Limited Eastern Home Shopping & Leisure Co., Ltd. EHK E&S Co., Ltd. Jiangsu Sen Fu Da Media Technology Co., Ltd.		March 31, 2020 $ 2,009,759 459,505 24,914 5,896 $ 2,500,074	December 31, 2019 $ 2,032,949 394,067 26,081 5,965 $ 2,459,062		March 31, 2019
					$ 2,109,284 488,614 42,010 6,343 $ 2,646,251

Affiliates which are material to the Group consisted of the followings:

Name of Affiliates Natural Beauty Bio-technology limited Eastern Home Shopping & Leisure Co., Ltd.	Nature of Relationship withthe Group Sale beauty and cosmetic products and provide beauty service Sale plenty of merchandise, material and equipment wholesale and retail.	Main operating location/ Registered Country of the Company	Proportion of shareholding and voting rights
			March 31, 2020 December 31, 2019 March 31, 2019
		Taiwan and China Taiwan, Hong Kong, China	30.00% 30.00% 30.00% 25.87% 25.87% 25.87%

(1)Natural Beauty Bio-technologyLimited

Natural Beauty Bio-technology Limited was one of the listing companies in Hong Kong Exchanges and Clearing Limited. As for March 31, 2020, December 31, 2019, and March 31, 2019, the fair value of Natural Beauty Bio-technology Limited as follows:

March 31, 2020 December 31, 2019 March 31, 2019 Fair value $ 1,521,812 $ 1,572,049 $ 1,766,430

The following consolidated financial information of significant affiliates had been adjusted according to individually prepared IFRS financial statements of these affiliates:

Current assets Non-current assets Liabilities Net assets Net assets attributable to investee		March 31, 2020 $ 1,227,522 1,593,963 652,262) $ 2,169,223 $ 2,169,223	December 31, 2019 $ 1,340,581 1,669,566 ( 760,291) $ 2,249,856 $ 2,249,856		March 31, 2019
	(		(	(	$ 1,310,647 1,538,839 685,379) $ 2,164,107 $ 2,164,107

Operating revenue Net income Other comprehensive income Total comprehensive income Comprehensive income (loss) attributable to investee Share of net assets attributable to the Group on January 1 Comprehensive income (loss) attributable to the Group Effect of exchange rate fluctuations Share of net assets attributable to the Group on March 31 Add: Goodwill Trademark Property, plant and equipment Other intangible assets in useful life(ie. Membership and patent etc.) Effect of exchange rate changes Less: adjustment for inventories Book value of net assets attributable to the Group on March 31		Three Months Ended March 31

(2) Eastern Home Shopping & Leisure Co., Ltd.

On December 27, 2018, EHS reelected the Board of Supervisors. The merger company did not hold more than half of the seats. The contract agreement with the original voting rights holder also terminated due to the election. As the loss of control over the subsidiary, EHS would become an associate instead of the subsidiary of the merger company since the new direct came in on January 1, 2019. The detail information please refer to Note VI (X).

The following consolidated financial information of significant affiliates had been adjusted according to individually prepared IFRS financial statements of these affiliates:

March 31, 2020	March 31, 2020	December 31, 2019 March 31, 2019 $ 3,941,679 $ 3,433,726 6,014,078 5,759,744 ( 8,163,538) ( 7,012,175) $ 1,792,219 $ 2,181,295 $ 268,866 $ 292,450 $ 1,523,353 $ 1,888,845 Three Months Ended March 31	December 31, 2019 March 31, 2019 $ 3,941,679 $ 3,433,726 6,014,078 5,759,744 ( 8,163,538) ( 7,012,175) $ 1,792,219 $ 2,181,295 $ 268,866 $ 292,450 $ 1,523,353 $ 1,888,845 Three Months Ended March 31	December 31, 2019 March 31, 2019 $ 3,941,679 $ 3,433,726 6,014,078 5,759,744 ( 8,163,538) ( 7,012,175) $ 1,792,219 $ 2,181,295 $ 268,866 $ 292,450 $ 1,523,353 $ 1,888,845 Three Months Ended March 31

		2020 5,354,123 243,645 9,474 253,119 157 252,962 394,067 65,438 459,505		2019
$ $ $ $ $ $	$		$ 4,933,934 $ 97,204 1,336 $ 98,540 ($ 7,690) $ 106,230 $ 461,134 27,480 $ 488,614
	$
	$
	$
	$
$

The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

Carrying amount of individually insignificant associates’ equity		26 March 31, 2020 $ 30,810	December 31, 2019 $ 32,046		March 31, 2019
					$ 48,353

Attributable to the Group: Loss from continuing operations Other comprehensive loss Comprehensive loss		Three Months Ended March 31	Three Months Ended March 31
		2020 $ - ( 1,236) $ 1,236)	2019
			($ 1,978) ( 387) ($ 2,365)

4.No Investments accounted for using equity method were pledged as collateral on March 31, 2020, December 31, 2019, and March 31, 2019, respectively.
5.Unreviewed investments under the equity method

The equity method investments and the Group's share of profit or loss and other comprehensive income are calculated based on unreviewed financial reports, except for the financial information of Eastern Home Shopping& Leisure Co., Ltd., which has been audited.

(IX) Acquire a subsidiary

The consolidated subsidiary – ET New Media has established and fully acquired ET Pet at the amount of $50,000 on December 28, 2018 after obtaining the approval from the board of directors, with the registration procedure having been completed on January 18, 2019. On June 9, 2019, ET Pet decided to issue common stock for cash, wherein ET New Media invested the amount of $135,000, which is unproportionate to its previous shareholding ratio, resulting its shareholding percentage to decrease to 92.5%. All registration procedure had been completed on September 5, 2019.
The consolidated subsidiary – ET New Media has decided to established Dung sen shin guangyun Co., Ltd. on December 28, 2018 after obtaining the approval from the board of directors. Dung sen shin guangyun Co., Ltd. has completed the registration on January 22, 2019 with the capital of $100 which was 100% held by ET New Media.
The consolidated subsidiary – ET New Media has decided to established Dung sendianjingyun Co., Ltd. on December 28, 2018 after obtaining the approval from the board of directors. Dung sendianjingyun Co., Ltd. has completed the registration on January 19, 2019 with the capital of $100 which was 100% held by ET New Media.
The consolidated subsidiary – ET New Media has decided to established Dung sen shin wen yun Co., Ltd. on June 10, 2019 after obtaining the approval from the board of directors. Dung sen wen yun Co., Ltd. has completed the registration on August 22, 2019 with the capital of $5,000 which was 100% held by ET New Media.
On July 5, 2019, ET New Media decided to issue common stock for cash, wherein the Company and EIC invested the amounts of $253,528 and $2,972, respectively, which were unproportionate to their previous shareholding ratio, resulting in their

shareholding percentage to decrease to 89.20% and 1.05%, respectively. All registration procedures had been completed on September 10 ,2019.

In order to enhance its market share and competitiveness in the pet industry, the consolidated subsidiary, ET Pet, obtained control over Oscar, Pet Kingdom, and Kaou Sin, by acquiring 80% of their shares on October 1, 2019.

From the acquisition date to December 31, 2019, Oscar, Pet Kingdom, and Kaou Sin contributed the operating revenue and profit after tax amounting to $259,770 and $15,480, respectively, to the Group.If the acquisition had occurred on January 1, 2019, the management estimated that the contributing operating revenue and profit after tax would been up to $984,932 and $43,404, respectively. In determining these amounts, the management has assumed that the fair value of adjustment factors which arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2019.

The following are the information on business acquisition, which includes the consideration transferred, the assets acquired and liabilities assumed, and the goodwill recognized at the acquisition date:

(1) The consideration of the above acquisition transfer was solely paid in cash amounting to $362,213.
(2) The recognized amounts of assets acquired and liabilities assumed at the acquisition date are summarized below:

Cash and cash equivalent Inventories Other current assets Property, plant and equipment Right-of-use assets Intangible assets Other non-current assets Current liabilities Non-current liabilities Fair value of identifiable net assets	$ 36,353 135,557 35,257 153,156 307,083 271,873 14,006 ( 80,826) ( 280,268) $ 292,191

The fair value of identifiable intangible assets, including patent and client rights , was based on the purchase price allocation report, which still awaits for the final assessment.

The Group would keep inspecting the information mentioned above during the measuring period. If there is information discovered within one year from the acquisition date about facts and circumstances that existed at the acquisition date which leads to an adjustment to the above provision amounts, or any additional provisions as at the acquisition date, then the acquisition accounting will be revised.

(3) Goodwill:

Consolidated transferred

$ 362,213 Non-controlling interest in the acquiree (proportionate share ofthe fair value of the identifiable net assets) 58,438

Less: Fair value of identifiable net assets Goodwill

( 292,191) $ 128,460

The goodwill was attributable mainly to the profitability of the various selling modes in different foreign countries and expected to integrate E-commerce business of the Group.

On January 2, 2020, the Company’s Board of Directors resolved to invest $100,000 in Tunglin Asset Management Co., with a 100% shareholding, which was registered on February 24, 2020; on March 10, 2020, the Company invested $230,000 in Tunglin Asset Management Co. without increasing its capital in proportion to its shareholding, thereby reducing its shareholding to 55%.

(X) Material non-controlling interests of subsidiaries:

Main operation place Subsidiaries Tunglin Asset Management Co. Taiwan	Percentage of non-controlling interests	Percentage of non-controlling interests
	March 31, 2020 45.00%	December 31, 2019 March 31, 2019
		-% -%

The following information of the aforementioned subsidiaries had been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Included in these information were the fair value adjustment and accounting policies adjustment made during the acquisition and relevant difference in accounting principles between the Group as at the acquisition date. Intragroup transactions were not eliminated in this information.

The consolidated financial information of Tunglin Asset Management Co.

Current assets Non-current assets Current liabilities Non- current liabilities Net assets	March 31, 2020
	$ 200,674 400,105 ( 1,020) - $ 599,759

Sales revenue Net loss for the period Other comprehensive income Total comprehensive income Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net gain(loss) in cash and cash equivalents			Three Months Ended March 31, 2020
		$ - ($ 241) - ($ 241) ($ 9,356) ( 400,000) 600,000 $ 190,644

(XI) Loss of control of subsidiaries
In 2019, the Group recognized a loss on liquidation of $776 due to liquidation the assets of Ding Kai.
On December 27, 2018, EHS reelected the Board of Supervisors. The merger

company did not hold more than half of the seats. The contract agreement with the original voting rights holder also terminated due to the election. As the loss of control over the subsidiary, EHS would become an associate instead of the subsidiary of the merger company since the new direct came in on January 1, 2019. However, the merger was accounted as joint control, using carrying amount method in accordance with the International Financial Reporting Standard No.3. While losing control of EHS, it was derecognized in accordance with the standard as well. The details please refer to Note VI (VIII).

The carrying amount of assets and liabilities of EHS on January 1, 2019, was as follow:

Cash and cash equivalent Inventories Accounts receivable and other accounts receivable Other current assets Property, plant and equipment Intangible assets Other non-current assets Long-term and short-term loans ( Accounts payable and other accounts payable ( Other current liabilities ( Other non-current liabilities ( Carrying amount of net assets	$ 1,271,295 1,427,075 408,221 291,952 1,319,847 3,869,576 227,038 2,497,521 ) 3,621,404 ) 520,954 ) 92,684) $ 2,082,441

The Group had lost the control over its liquidated subsidiary, Sheng Hang (Shanghai), on February 21, 2019, resulting in a loss on liquidation amounting to $18,291 to be recognized.
On March 29, 2019, the Group sold all of its shares in ET New Retail Department to EHS, with a consideration of $997, resulting in a gain on disposal amounting to $4,666. In addition, the unrealized gain from the consolidated entities’ transactions was realized due to the disposal of the Group’s subsidiary. For related information, please refer to Note VI (XIV).
The Consolidated Company resolved in February and March 2019 to dispose of the entire equity interests in the subsidiaries, EED (Shanghai) and Eastern Biotechnology (Shanghai); the disposal of EED (Shanghai) has been completed on June 21, 2019 and the disposal of Eastern Biotechnology (Shanghai) has been completed on January 20, 2020, and these companies lost control over them due to the disposal.The disposition price was $10,795 (RMB2,476 thousand) and $778 (RMB200 thousand), with a loss of $3,863 and a gain of $82, respectively.

(XII) Property, plant and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Group were as follows:

							Machiner			Transport		Leasehold		Constructi
							y and			ation		improvem		on in			Other
		Land			Buildings		equipment			equipment		ents		progress			equipment		Total
Cost or deemed cost:
Balance on January 1,	$	508,791		$	1,015,005	$	3,674		$	34,957	$	425,579	$	400		$	285,974	$	2,274,380
2020
Additions		87,950			9,472		-			500		6,992		-			5,490		110,404
Transfers			-		-		-			-	(	1)(		266)			267		-
Disposals			-		-		-	(		310)		-		-	(		356) (		666)
Balance on March 31, 2020	$	596,741		$	1,024,477	$	3,674		$	35,147	$	432,570	$	134		$	291,375	$	2,384,118
Balance on January 1,	$	1,151,529		$	1,686,017	$	346,145		$	31,623	$	167,148	$	134		$	710,656	$	4,093,252
2019
Loss of control subsidiary	(	655,482)(			686,462)(		342,471)(			2,431)(		82,942)		-	(		549,064)(		2,318,852)
Additions			-		-		-			131		12,138		-			7,194		19,463
Transfers			-		-		-			-		90,969		-	(		1,508)		89,461
Disposals			-		-		-	(		81)		-		-	(		6,692)(		6,773)
Effect of movements in exchange rates			-		-		-			-		-		-			92		92
Balance on March 31, 2019	$	496,047		$	999,555	$	3,674		$	29,242	$	187,313	$	134		$	160,678	$	1,876,643
Depreciation and impairment loss:
Balance on January 1,	$	5,740		$	590,188	$	3,674		$	23,928	$	52,811	$	-		$	158,743	$	835,084
2020
Depreciation for the			-		16,274		-			910		14,364		-			13,206		44,754
period
Disposals			-		-		-	(		310)		-		-	(		218) (		528)
Balance on March 31, 2020	$	5,740		$	606,462	$	3,674		$	24,528	$	67,175	$	-		$	171,731	$	879,310
Balance on January 1,	$	5,740		$	741,116	$	280,764		$	21,250	$	64,824	$	-		$	542,656	$	1,656,350
2019
Loss of control subsidiary			- (		221,583)(		277,090)(			981)(		45,496)		-	(		453,345)(		998,495)
Depreciation for the			-		16,442		-			639		5,312		-			8,952		31,345
period
Transfers			-		-		-			-	(	996)		-	(		1,728)(		2,724)
Disposals			-		-		-	(		81)		-		-	(		3,862)(		3,943)
Effect of movements in			-		-		-			-		-		-			51		51
exchange rates
Balance on March 31, 2019	$	5,740		$	535,975	$	3,674		$	20,827	$	23,644	$	-		$	92,724	$	682,584
Carrying amounts:
January 1, 2020	$	503,051		$	424,817	$	-		$	11,029	$	372,768	$	400		$	127,231	$	1,439,296
March 31, 2020	$	591,001		$	418,015	$	-		$	10,619	$	365,395	$	134		$	119,644	$	1,504,808
January 1, 2019	$	1,145,789		$	944,901	$	65,381		$	10,373	$	102,324	$	134		$	168,000	$	2,436,902
March 31, 2019	$	490,307		$	463,580	$	-		$	8,415	$	163,669	$	134		$	67,954	$	1,194,059

The decrease in the Group's property, plant and equipment from January 1 to March 31, 2019 due to the loss of control over the subsidiaries is described in Note VI (XI).

The Group signed a contract of purchasing land near the provincial road of Leo Exploitation Co., Ltd. and had paid $4,635 constantly. On December 31, 2020, the amount $134 of the lands which rights have not transferred to the Group.
Please refer to Note VIII for the details of the property, plant and equipment pledged as collateral.

(XIII) Right of use assets

The cost, depreciation, and impairment loss of the land, buildings, ships and media exhibition boards of the Group as March 31, 2020 and 2019, were as follows:

Cost: Balance on January 1, 2020 Additions Write off Balance on March 31, 2020 Balance on January 1, 2019 Additions Effect of changes in foreign exchange rates Balance on March 31, 2019 Accumulated depreciation and impairment losses: Balance on January 1, 2020 Depreciation for the year Balance on March 31, 2020 Balance on January 1, 2019 Depreciation for the year Impairment loss Effect of changes in foreign exchange rates Balance on March 31, 2019 Carrying amount: January 1, 2020 March 31, 2020 January 1, 2019 March 31, 2019		Land and its equipment	Buildings Transportation equipment	Buildings Transportation equipment	Ships	Outdoor advertising boards	Total
		$ 4,109,171 - ( 2,218) $ 4,106,953 $ 3,154,258 - - $ 3,154,258 $ 220,259 51,231 $ 271,490 $ - 55,029 - - $ 55,029 $ 3,888,912 $ 3,835,463 $ 3,154,258 $ 3,099,229	$ 882,233 4,679 ( 180) $ 886,732 $ 178,030 - - $ 178,030 $ 130,528 46,137 $ 176,665 $ - 10,098 - - $ 10,098 $ 751,705 $ 710,067 $ 178,030 $ 167,932	$ - 1,492 - $ 1,492 $ - - - $ - $ - 68 $ 68 $ - - - - $ - $ - $ 1,424 $ - $ -	$ - - - $ - $ 288,358 - 811 $ 289,169 $ - - $ - $ 97,749 30,116 17,051 169 $ 145,085 $ - $ - $ 190,609 $ 144,084	$ 2,453,661 28,863 ( 83,557) $ 2,398,967 $ 849,003 39,752 - $ 888,755 $ 332,115 158,514 $ 490,629 $ - 57,263 - - $ 57,263 $ 2,121,546 $ 1,908,338 $ 849,003 $ 831,492	$ 7,445,065 35,034 ( 85,955) $ 7,394,144 $ 4,469,649 39,752 811 $ 4,510,212 $ 682,902 255,950 $ 938,852 $ 97,749 152,506 17,051 169 $ 267,475 $ 6,762,163 $ 6,455,292 $ 4,371,900 $ 4,242,737

From January 1 to March 31, 2019, the shipping business was affected by the global market and economic condition, wherein the Group has assessed and recognized the impairment loss amounting to $17,051.
The recoverable amount of the ships was calculated using the discounted cash flow method, with the discount rate of 5%.
During the period from January 1 to March 31, 2020, right-of-use assets and lease liabilities were reduced by $85,955 due to land acquisition by the government and rent reductions negotiated as a result of the novel coronavirus pneumonia outbreak.

(XIV) Intangible assets

The cost, depreciation, and impairment loss of the Intangible assets of the Group were as follows:

	Goodwill	Trademar	Client rights	Brand values	Supplier contracts
o	$ 160,379 - $ 169,139 $ 3,475,477 - - (3,443,558) $ 31,919 ss: $ - - $ - $ - - - - $ - $ 160,379 $ 160,379 $ 31,919	$ 233,229 58	$ 69,909 - $ 69,909 $ 1,396,843 - - (1,396,843) $ - $ 4,254 4,953	$ - - $ - $ 189,733 - - (189,733) $ - $ - - $ - $ 6,145 - - ( 6,145) $ -	$ - $ 42,053 $ 13,008 $ 518,578 - 3,996 1,668 5,722 $ - $ 46,049 $ 14,676 $ 524,300 $ 51,768 $ 239,453 $ 7,833 $ 5,388,297 - 1,518 923 2,544 - ( 546 ) ( 4,064 ) ( 4,610 ) ( 51,768) ( 208,248) - (5,290,150) $ - $ 32,177 $ 4,692 $ 96,081 $ - $ 17,803 $ 3,602 $ 27,744 - 2,296 1,063 10,450 $ - $ 20,099 $ 4,665 $ 38,194 $ 43,485 $ 213,657 $ 1,813 $ 1,438,569 - 1,309 509 2,373 - - ( 548 ) ( 548 ) (43,485) ( 203,639) - (1,425,977) $ - $ 11,327 $ 1,774 $ 14,417 $ - $ 24,250 $ 9,406 $ 490,834 $ - $ 25,950 $ 10,011 $ 486,106 $ - $ 20,850 $ 2,918 $ 81,664
		$ 233,287
		$ 27,190 103 - -
		$ 27,293	$ -
		$ 2,085 2,138	$ 4,254 4,953
		$ 4,223	$ 9,207
		$ 761 555 - -
		$ 1,316
		$ 231,144		$ - $ - $ -
		$ 229,064
		$ 25,977

Among January 1 to March 31, 2019, the reduce of intangible assets was due to the loss of control of subsidiary. The information please refer to Note VI (XI). Additionally, the deferred gain on disposal of intangible assets, amounting $12,510, from ET New Retail Department was realized; the details please refer to Note VI (XI).

(XV)Short-term loans:

Secured bank loans Unused credit line Interest rate		March 31, 2020 $ 10,000 $ 867,034 1.97%~2.5%	December 31, 2019	December 31, 2019		March 31, 2019
				$ 58,000 $ 617,215 1.97%~3.2%		$ - $ 300,000 -%

Among January 1 to March 31, 2019, the reduce of short-term loans was due to the loss of control of subsidiary. The information please refer to Note VI (XI).
Please refer to Note VIII for the details of the related assets pledged as collateral.

(XVI)Short-term notes and bills:

March 31, 2020 December 31, 2019

Guaranteed commercial paper

payable

Par value Discount amount Carrying amount	$ 20,000 ( 71 ) $ 19,929	$ 20,000 - $ 20,000

Unused credit line Interest rate	$ 10,000 1.868%	$ 10,000 1.878%

Please refer to Note VIII for the details of the related assets pledged as collateral.

(XVII)Long-term loans:

Secured bank loans Other secured loans Less: Current portion Fees Total Duration year Interest rate Unused long-term credit lines	March 31, 2020 $ 142,500 251,002 ( 92,745) ( 5,439) $ 295,318 109~112 2.09%~3.05% $ 726,000	December 31, 2019 $ 150,000 261,778 ( 67,789) ( 5,989) $ 338,000 109~112 2.21%~3.2% $ 734,000		March 31, 2019 $ - 50,000 - ( 7,639) $ 42,361 111 3% $ 750,000

Among January 1 to March 31, 2019, the reduce of shortterm loans was due to the loss of control of subsidiary. The information please refer to Note VI (XI).
Please refer to Note VIII for details of the related assets pledged as collateral.

(XVIII) Lease liabilities

The Group amounts recognized in lease liabilities was as follows:

Current Non-current		March 31, 2020	December 31, 2019	December 31, 2019		March 31, 2019
		$ 909,348 $ 5,659,139		$ 954,147 $ 5,874,708		$ 6,38,598 $ 3,704,517

For the maturity analysis, please refer to Note VI (XXVII).

The amount of lease liability increased was $35,034 and $39,752 and the interest rate was at 3% among January 1 to March 31, 2020 and 2019. The ending dates of the lease duration were from January 2021 to December 2038.However, for details of lease contract amendment from January 1, 2020 to March 31, 2020, please refer to Note VI (XIII).

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Variable lease payments not included in the measurement of lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 49,936 $ 2,620 $ 2,877 $ 353		2019
				$ 32,904 $ - $ 72,269 $ 221

The amounts recognized in the statement of cash flows for the Group was as follows:

Total cash flow for leases 1.Real estate leases		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 265,197		2019
				$ 272,454

As of March 31, 2019, the Group leased land and buildings for its warehousing operations, office space and retail stores. The leases of office space typically ran for a period of 20 years, and of retail stores for 3 to 5 years. Some leases included an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of office buildings contained extension options exercisable by the Group up to one year before the end of the non cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. In which lease is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

Other leases

The Group leased outdoor advertising boards with lease terms of three to four years. In some cases, the Group had options to extend lease terms at the end of the contract term.

The Group also leases IT equipment and machinery with contract terms of one to three years. These leases are short-term or leases of low value items. The Group had elected not to recognize right of use assets and lease liabilities for these leases.

(XIX) Provisions

Provisions
Balance on January 1, 2019 Effects of IFRS 16 retrospective application- recognized as right-of-use assets deduction Balance on January 1, 2019 after adjustments Current liabilities provision Foreign exchange gain/loss Balance on March 31, 2019 Current Non-current	Onerous contract
		$ 102,741 ( 97,749) 4,992 2,620 18 $ 7,630 March 31, 2019
		$ 7,630 - $ 7,630

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting its obligations under the contract among January 1 to March 31, 2019. However, ships contracts had expired on April 28 and May 2, 2019, all provisions reversed. Please refer to Note VI (XX) for details of related information.

(XX) Employee benefits

1. Defined benefit plans

The Group used actuarially determined pension costs as of December 31, 2019 and 2018 to measure and disclose pension costs for the interim period as there were no significant market fluctuations, and significant curtailments, settlements or other significant one-time events subsequent to the prior year's reporting date.

The details of the expenses reported by the Group were as follows:

Operating cost General and administrative expense		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 277 146 $ 423		2019
				$ 325 1,896 $ 2,221

2. Defined contribution plans

The Group's pension expenses under the defined contribution plans are as follows:

Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
2020 2019 $ 6,190 $ 5,506 6,467 3,674 $ 12,657 $ 9,180 Three Months Ended March 31		2019

2020 ($ 45,284) 317 ($ 44,967)		2019
	( (	$ 810 1,309) $ 499)

(XXI)Income taxes from continuing operations

Among January 1 to March 31, 2020, previously unrecognized tax losses of $49,980 were recognized as deferred tax assets, as management determined that it was probable that there would be sufficient taxable gains in the future.

The Company’s tax returns for the years through 2018 were examined and approved by the tax authority.

(XXII) Capital and other equity

Except as described below, there were no material changes in capital and other equity of the Group from January 1 to March 31, 2020 and 2019, as described in Note VI (XXIV) of the 2019 Consolidated Financial Statements.

1. Retained earnings

The dividend policy of the Company takes into consideration the expenditures for its business expansion, investment, and improvement of its financial structure. Dividend distributions should not be less than 15% of distributable earnings. The Company distributes dividends of at least 10% of the aggregated dividends, if the distributions include cash dividends. The policy requires that all after tax earnings shall first offset any deficit, and 10% of the balance shall be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the amount of issued share capital. Aside from the aforesaid legal reserve, the Company may, under its articles of incorporation or as required by the government, appropriate a special reserve. The board of directors can propose the distribution of the remaining balance of the earnings and request for approval from

the shareholders.

The Company appropriated its 2019 and 2018 earnings, which was proposed by the board of deirectors on April 29, 2020 and resolved by the shareholder’s meeting on May 29, 2019, respectively, as follows:

Legal reserve Special reserve Cash dividends	2019 Amount Dividend per share(NT$) $ 37,423 44,580 556,790 $ 1	2018 Amount Dividend per share(NT$) $ 107,100 143,912 556,790 $ 1	2018 Amount Dividend per share(NT$) $ 107,100 143,912 556,790 $ 1
	Amount $ 37,423 44,580 556,790
			$ 1

As of May 14, 2020, the aforementioned 2019 earnings distribution proposal has not yet been approved by the shareholders’meeting.Please visit the Market Observation Post System for more information.

Treasury shares

Eastern Home Shopping & Leisure (EHS) became a subsidiary of the Company on April 1, 2017. It acquired a total of 5 thousand shares, with a price of $9.53 per share, of the Company. As of December 31, 2018, the shares held by EHS were reduced to 4 thousand, with a price of $13.30 per share, after the capital reduction. On January 1, 2019, the Company loss control over EHS, resulting in the Company to recognize the amount of $11 as treasury shares.

3. Other equity(net of tax)

Balance on January 1, 2020 Exchange differences on foreign operation Change in other comprehensive income (loss) of associates accounted for using equity method Unrealized losses from financial assets measured at fair value through other comprehensive income Balance on March 31, 2020 Balance on January 1, 2019 Exchange differences on foreign operation Change in other comprehensive income (loss) of associates accounted for using equity method Unrealized losses from financial assets measured at fair value through other comprehensive		42 Foreign currency translation differences for foreign operations ($ 224,130) 1,179 5,432 - ($ 217,519) ($ 168,588) 6,822 ( 701) -	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income ($ 3,671) - ( 1) ( 7) ($ 3,679) ($ 14,634) - 4 22		Total
					($ 227,801 ) 1,179 5,431 ( 7) ($ 221,198 ) ($ 183,222 ) 6,822 ( 697 ) 22

income Balance on March 31, 2019		Foreign currency translation differences for foreign operations ($ 162,467)		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income ($ 14,608)		Total
						($ 177,075 )

(XXIII) Earnings per share

The basic calculation of earnings per share from January 1 to March 31, 2020 and 2019 is as follows:

Three Months Ended March 31,	Three Months Ended March 31,	2020
Net of tax The weighted average number of ordinary shares outstanding $ 54,869 556,790 $ 54,869 556,790 - 721 $ 54,869 557,511 Three Months Ended March 31,		Earnings per share(NT$)
		$ 0.10 $ 0.10 2019
Net of tax $ 146,124 ( 85,752) $ 60,372 $ 146,124 - $ 146,124 ( 85,752) $ 60,372	The weighted average number of ordinary shares outstanding 556,790 556,790 556,790 556,790 3,095 559,885 559,885 559,885	Earnings per share(NT$)
		$ 0.26 ( 0.15) $ 0.11 $ 0.26 ( 0.15) $ 0.11

(XXIV)Revenue from contracts with customers from continuing operations

Details of revenue

Three Months Ended March 31, 2020

Warehousing Trading Media Others Total

Main services:

Sales revenue $ - $ 396,833 $ - $ 6,098 $ 402,931 Media revenue - - 272,663 - 272,663 Loading and storage revenue 316,645 - - - 316,645 Others revenue - 50,344 12,365 10,105 72,814 $ 316,645 $ 447,177 $ 285,028 $ 16,203 $ 1,065,053 Three Months Ended March 31, 2019 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 49,215 $ - $ 20,830 $ 70,045 Media revenue - - 201,439 - 201,439 Loading and storage revenue 294,832 - - - 294,832 Others revenue - 3,894 6,635 11,025 21,554 $ 294,832 $ 53,109 $ 208,074 $ 31,855 $ 587,870 2. Contract balances March 31, 2020 December 31, 2019 March 31, 2019 Notes receivable $ 4,746 $ 4,264 $ 7,166 Installment notes receivable 42,049 62,065 148,560 Accounts receivable 263,373 380,995 202,134 Less: Allowance for doubtful accounts ( 29,605) ( 29,563) ( 28,232) Unrealized interest revenue ( 1,291) ( 2,254) ( 11,218) Total $ 279,272 $ 415,507 $ 318,410 Contract liability – advertising services $ 14,975 $ 16,729 $ 8,395 Contract liability – others 8,560 8,184 10,327 Total $ 23,535 $ 24,913 $ 18,722			$ - - 316,645 - $ 316,645		$ 396,833 $ - - 272,663 - - 50,344 12,365 $ 447,177 $ 285,028 Three Months Ended March	$ 396,833 $ - - 272,663 - - 50,344 12,365 $ 447,177 $ 285,028 Three Months Ended March	$ 396,833 $ - - 272,663 - - 50,344 12,365 $ 447,177 $ 285,028 Three Months Ended March	$ 396,833 $ - - 272,663 - - 50,344 12,365 $ 447,177 $ 285,028 Three Months Ended March	$ 6,098 - - 10,105 $ 16,203 31, 2019		$ 402,931 272,663 316,645 72,814 $ 1,065,053
							Media $ - 201,439 - 6,635 $ 208,074 December 31,				Total

(1) Please refer to Note VI (IV) for the details of accounts receivable and its impairment.
(2) The major change in the balance of contract assets and contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received. There were no significant changes.

(XXV) Remuneration of employee

The Company’s Articles of Incorporation requires that earning shall first be offset against any deficit. Then, 3.5% of the net profit before tax will be distributed as employee remuneration.

From January 1 to March 31, 2020 and 2019, the Company estimated its employee remuneration amounting to $189 and $815, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, multiplied by the percentage of remuneration to employees. These remunerations were expensed under operating costs or expenses during 2019. The

differences between the actual distributed amounts, as determined by the board of directors, and those recognized in the financial statements, if any, shall be accounted for as changes in accounting estimates and recognized in profit or loss in the following year. The numbers of shares to be distributed were calculated based on the closing price of the Company’s ordinary shares, one day before the date of the meeting of Board of Directors.

For the year ended December 31, 2019 and 2018, the Company estimated its employee remuneration amounting to $7,025 and $41,736, respectively. The amounts of employees’ and directors’ remuneration, as stated in the consolidated financial statements, were identical to the actual distributions amounts for the year 2019 and 2018. For further information, please refer to Market Observation Post System.

(XXVI)Non-operating income and expenses from continuing operations

1. Other income

The details of other revenue were as follows:

Interest income Rental income Other income		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 4,675 6,726 2,267 $ 13,668		2019
				$ 10,752 6,204 - $ 16,956

2. Other gains and losses

The details of other gains and losses were as follows:

Loss on disposal of property, plant, and equipment Gain on disposal of investments assets Net gains (losses) on evaluation of financial assets at fair value through profit or loss Foreign exchange (losses) gains Gain on disposal of intangible assets Other income (losses)	Three Months Ended March 31	Three Months Ended March 31
	2020 ($ 108) 82 ( 12,131) ( 2,105) - 35,393 ($ 21,131)	2019
		($ 1,003) 4,666 92,357 6,513 12,510 25,228 $ 140,271

3. Finance costs

The Group’s finance costs were as follows:

Three Months Ended March 31

Interest expenses – lease liabilities Interest expenses – bank loans Finance expense		2020 $ 49,936 5,168 637 $ 55,741		2019
				$ 30,965 5,379 561 $ 36,905

(XXVII) Financial instruments

1. Credit risk

(1) Credit risk exposure

As at reporting date, the Group’s exposure to credit risk and the maximum exposure were mainly from:

‧ The carrying amount of financial assets recognized in the consolidated balance sheet; and
‧ The amount of liabilities as a result from the Group providing financial guarantees to its customers was $562,500 and $490,000 and $50,000.

(2) Concentration of credit risk

The Group caters to a large group of customers; therefore, there is no concentration of regional credit risk.

For credit risk exposure of notes and trade receivables, please refer to Note VI

(IV).

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses.(Regarding how the financial instruments are considered to have low credit risk, please refer to Consolidated Financial Statements 2019 Note 4 (g)).

The loss allowance provision was determined as follows:

						Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
						2020				2019
Other receivables
	Balance at January 1				$	28,982		$			11,861
	Amounts written off				(	27,285)		(			1,149)
	Impairment losses recognized						-				17,285
	Foreign exchange loss						-				422
	Balance at March 31				$	1,697		$			28,419
Liquidity risk
The following are the		contractual	maturities		of financial		liabilities		of	the Group
including estimated interest		payments and excluding the impact					of netting agreements.
	Carrying	Contractual		Within 1						More than
	amount	cash flows		year		1-3years	3-5years				5years
March 31, 2020
Non-derivative
financial liabilities
Bank loan	$ 398,063	$ 423,401	$	112,412	$	228,643	$	82,346		$	-
Short-term notes	and
bills payable	19,929	20,000		20,000		-			-		-
Payables	861,683	861,683		861,683		-			-		-

2. Liquidity risk

The following are the contractual maturities of financial liabilities of the Group, including estimated interest payments and excluding the impact of netting agreements.

Guarantee deposits received Lease liabilities December 31, 2019 Non-derivative financial liabilities Bank loan Short-term notes and bills payable Payables Guarantee deposits received Lease liabilities March 31, 2019 Non-derivative financial liabilities Bank loan Payables Guarantee deposits received Lease liabilities		Carrying amount 7,118 6,568,487 $ 7,855,280 $ 463,789 20,000 1,013,722 7,188 6,828,855 $ 8,333,554 $ 42,361 533,197 4,034 4,343,115 $ 4,922,707	Contractual cash flows 7,118 7,922,839 $ 9,235,041 $ 492,961 20,000 1,013,722 7,188 8,231,502 $ 9,765,373 $ 55,250 533,197 4,034 4,821,462 $ 5,413,943		Within 1 year - 1,094,493 $ 2,088,588 $ 136,326 20,000 1,013,722 - 1,145,703 $ 2,315,751 $ 1,500 533,197 - 760,042 $ 1,294,739	1-3years 7,118 2,092,883 $ 2,328,644 $ 260,129 - 7,188 2,164,558 $ 2,431,875 $ 3,000 - 4,034 903,116 $ 910,150	3-5years - 928,206 $ 1,010,552 $ 96,506 - - 1,037,028 $ 1,133,534 $ 50,750 - - 600,177 $ 650,927	More than 5years
								- 3,807,257 $ 3,807,257 $ - - - 3,884,213
								$ 3,884,213
								$ - - - 2,558,127 $ 2,558,127

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or in significantly different amounts.

Exchange rate risk
(1) Exposure to exchange rate risk

The Group’s financial assets and liabilities exposed to exchange rate risk were as follows:

Financial assets USD:TWD USD:HKD CNY:TWD USD:CNY	49 March 31, 2020 Foreign Currency Exchange Rate TWD $ 5,091 30.225 $ 153,862 5,617 7.754 168,744 740 4.255 3,150 42 7.103 1,244	December 31, 2019 Foreign Currency Exchange Rate TWD $ 4,073 29.98 $ 122,102 4,443 7.789 132,384 745 4.305 3,209 42 6.964 1,258	March 31, 2019
			Foreign Currency Exchange Rate TWD
			$ 3,768 30.820 $ 116,126 4,387 7.850 134,413 636 4.577 2,909 42 6.734 1,251

EUR:TWD	1,496	33.24	49,741	1,496	33.59	50,265	-	-	-
CNY:HKD	2,020	1.092	8,578	1,842	1.1847	7,918	-	-	-
EUR:HKD	117	8.527	3,892	117	8.7269	3,933	-	-	-

(2) Sensitivity analysis

The Group’s exposure to exchange rate risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables that are denominated in foreign currency. If the TWD, when compared with USD, had appreciated or depreciated 1% (with other factors remaining constant on the reporting date), profit would have increased or decreased by $3,892 and $2,547 for the years ended March 31, 2020 and 2019, respectively. The analysis is performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange are summarized as a single amount. From January 1 to March 31, 2020 and 2019, foreign exchange (loss) gain (including discontinued operations, realized and unrealized) amounted to $(2,105) and $6,528, respectively.

4. Interest rate analysis

The interest risk exposure of the Group’s financial assets and liabilities is described in the note on market risk management.

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date.

For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Group’s internal management reported the increases/decreases in interest rates, and changes in interest rates of one basis point are considered by management to be reasonably possible.

If the interest rate had increased or decreased by 1%, the Group’s net income would have increased or decreased by $7,915 and $3, 382 for the years ended March 31, 2020 and 2019, respectively, assuming all other variable factors remained constant. This is mainly due to the Group’s variable rate deposit and borrowing.

Other market price risk

For the years ended December 31, 2019 and 2018, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Three Months Ended March 31, 2020 Price of securities at reporting date Other comprehensive income after tax Net income	Three Months Ended March 31, 2019
	Other comprehensive income after tax Net income

Increasing 3% Decreasing 3%	$ 393 ($ 393)	$ 8,359 ($ 8,359)	$ 392 ($ 392)	$ 24,614 ($ 24,614)

6. Fair value of financial instruments

(1) Fair value hierarchy

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, disclosure of fair value information is not required:

March 31, 2020 Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortised cost Cash and cash equivalents Notes and accounts receivable (including related parties) Other receivables (including related parties) Other financial assets - current Refundable deposits Other financial assets - non-current Financial liabilities measured at amortised cost Short-term loans Short-term notes payable Notes and accounts payable Other payables Long-term loans (including bank loans with maturities of less than one year)	Book Value			Fair Value
		Level 1 Level 2 Level 3 Total $ 278,623 $ - $ - $ 278,623 584 - 12,525 13,109 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
	$ 278,623 13,109 1,523,391 279,272 188,245 174,186 483,034 750 10,000 19,929 181,056 680,627 388,063

Lease liabilities (current and non-current) Deposits received December 31, 2019 Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income	6,568,487 7,118 Book Value		- -	- - - - - - Fair Value
		Level 1 Level 2 Level 3 Total $ 242,539 $ - $ - $ 242,539 598 - 12,525 13,123
	$ 242,539 13,123

Book Value			Fair Value
		Level 1 $ - - - - - - - - - - - - -	Level 2 Level 3 Total $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Fair Value
	Level 1 Level 2 Level 3 Total $ 820,454 $ - $ - $ 820,454 558 - 12,515 13,073 - - - - - - - - - - - - - - - -
53 $ 820,454 13,073 1,483,603 318,410 225,315 256,084

Refundable deposits	180,485	-	-	-	-
Other financial assets - non-current	750	-	-	-	-

March 31, 2019 Financial liabilities measured at amortised cost Notes and accounts payable Other payables Long-term loans (including bank loans with maturities of less than one year) Long-term notes and accounts payable Lease liabilities (current and non-current) Deposits received	Book Value			Fair Value	Fair Value
			Level 1 $ - - - - - -	Level 2 $ - - - - - -	Level 3 Total $ - $ - - - - - - - - - - -
	$ 54,308 478,889 42,361 915 4,343,115 4,034

(2) Valuation techniques for financial instruments not measured at fair value

The Group’s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

(2.1) Financial assets measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted.

(2.2) Financial assets measured at amortized cost and financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

(3) Valuation techniques for financial instruments measured at fair value
(3.1)Non-derivative financial instruments

If there is a quoted market price in an active market for a financial instrument, the fair value is based on the quoted market price in an active market. The fair value of listed (over-the-counter) equity instruments and debt instruments with quoted prices in active markets are based on quoted market prices on major exchanges and over-the-counter (OTC) central government bond marketplaces, which are judged to be popular securities.

A financial instrument is publicly quoted in an active market if quoted prices are readily and consistently available from exchanges, brokers,

underwriters, industry associations, pricing services authorities, or regulatory authorities, and if those prices represent prices that are representative of actual and regularly occurring fair market activity. If the above conditions are not met, the market is considered inactive. In general, large bid-ask spreads, significant increases in bid-ask spreads, or low trading volume are indicators of an inactive market.

The fair values of the Group’s financial assets and liabilities, such as shares, funds and bonds of listed companies, with standard terms and conditions and traded in active markets, are determined by reference to quoted market prices, respectively.

Except for the above-mentioned financial instruments for which there is an active market, the fair values of other financial instruments are based on valuation techniques or quoted prices with reference to counterparties.

(3.2) Derivative financial instruments

Derivative financial instruments are valued based on widely accepted valuation models, such as discounted and option pricing models.Structured interest rate derivative financial instruments are valued using an appropriate option pricing model (e.g., Black-Scholes model) or other valuation techniques, such as Monte Carlo simulation.

(4) Transfers between Level 1 and Level 2

There was no transfer between Level 1 and Level 2 from January 1 to March 31, 2020 and 2019.

(5) Reconciliation of Level 3 fair values

Opening balance, January 1 Capital reduction and return of shares Ending Balance, March 31

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Fair value through other comprehensive income
Equity investments without an active market
Three Months Ended March 31
2020 2019
$ 12,525 $ 37,313
- ( 24,798 )
$ 12,525 $ 12,515
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From January 1 to March 31, 2020 and 2019, total gains and losses that were included in unrealized gains and losses from financial assets at fair value through other comprehensive income were as follows:

Three Months Ended March 31

Total gains and losses recognized: In other comprehensive income, and presented in	2020 ($ 14 )	2019
		$ 43

“unrealized gains and losses from financial assets at

fair value through other comprehensive income”

(6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “Financial assets at fair value through other comprehensive income”.

Most of the Group’s fair values are classified within level 3 with a single significant unobservable input value and only investments in equity instruments that have no active market have multiple significant unobservable input values.Investments in equity instruments that are not actively traded in a market are not correlated with each other because their significant unobservable inputs are independent of each other.

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Market comparable companies Net Asset Value Method	Significant unobservable inputs ‧Price to book ratio multiple (0.87, 1.07 and 1.05 for March 31, 2020, December 31, 2019 and March 31, 2019, respectively) ‧Discount for lack of marketability (20%) ‧Net Asset Value	Inter relationship between significant unobservable inputs and fair value measurement
			‧The higher the multiple, the higher the fair value ‧The higher the discount, the lower the fair value Not applicable

(7) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possible alternative assumptions would have the following effects:

effects:
March 31, 2020 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other	Rate increasing or decreasing Inputs	Other comprehensive income
		Favourable $ 67 67	Unfavourable
	Price to book ratio multiple 1% Discount for lack 1%		($ 67 ) ( 67 )

comprehensive income equity investments without an of marketability active market December 31, 2019

Financial assets at fair value through other comprehensive income Financial assets at fair value through other Price to book ratio comprehensive income equity investments without an multiple active market 1% $ 81 ($ 81 ) Financial assets at fair value through other Discount for lack comprehensive income equity investments without an of marketability active market 1% 81 ( 81 )

March 31, 2019 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Rate increasing or decreasing Inputs	Rate increasing or decreasing Inputs	Other comprehensive income	Other comprehensive income
			Favourable $ 82 82	Unfavourable
	Price to book ratio multiple 1% Discount for lack of marketability 1%			($ 82 ) ( 82 )

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(XXVIII) Financial risk management

There have been no material changes in the Group’s financial risk management objectives and policies from those disclosed in Note VI (XXX) of the 2019 Consolidated Financial Statements.

(XXIX) Capital management

The Group’s objectives, policies, and procedures for capital management are consistent with those disclosed in the 2019 Consolidated Financial Statements, and there have been no material changes in the aggregate quantitative information of items managed as capital management from those disclosed in the 2019 Consolidated Financial Statements.Please refer to Note VI (XXXI) of the 2019 Consolidated Financial Statements for further information.

(XXX) Investing and financing activities not affecting current cash flow

The Group’s investing activities which did not affect the current cash flow in the years ended March 31, 2020 and 2019, were as follows:

Acquisition of property, plant and equipment Add: other payables January 1 Less: other payables March 31 Cash paid		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 110,404 23,448 11,046) $ 122,806		2019
	(		(	$ 19,463 7,650 7,650) $ 19,463

The Group’s financing activities which did not affect the current cash flow in the years ended March 31, 2020 and 2019, were as follows:

Long-term borrowings Short-term borrowings Short-term notes and bills payable		January 1, 2020 $ 405,789 58,000 20,000	Cash flows	Non-cash changes Loss of control Amortization of financing use commitment fees $ - $ 550 - - - 21	Non-cash changes Loss of control Amortization of financing use commitment fees $ - $ 550 - - - 21	Non-cash changes Loss of control Amortization of financing use commitment fees $ - $ 550 - - - 21	March 31, 2020
				Loss of control
			($ 18,276) ( 48,000) ( 92)		$ - - -		$ 388,063 10,000 19,929

Total

$ 483,789 ($ 66,368) $ - $ 571 $ 417,992

							Non-cash changes	Non-cash changes
								Foreign
January 1,								exchange		March 31,
2019		Cash flows			Loss	of control movement				2019
Long-term borrowings $ 2,854,253	($		621,450)		($	2,190,442 ) $ -			$	42,361
Short-term borrowings 307,079				-	(		307,079) -			-
Total $ 3,161,332	($		621,450)		($	2,497,521 ) $ -			$	42,361
ated party transactions:
ames and relationship with related parties
Name of related party								Relationship with the		Group
Eastern Home Shopping & Leisure Co., Ltd.								An associate (Note I)
DongsenD'Amour SPA								An associate (Note I)
Natural Beauty Bio-technology Co., Ltd.								An associate
Strawberry Cosmetics Holding Limited								An associate (Note I)
Eastern New Retail Department (EIM) Co., Ltd.								An associate (Note II)
Dongsen Personal Insurance Agent Co., Ltd.								Key management personnel
Mori International Co., Ltd.								Key management personnel
Taiwan Gift Card Co. Ltd.								Other related parties
Enlighten Innovative Transformation Co., Ltd								Other related parties
DongsenNon-life Insurance agent Co. Ltd.								Other related parties
Dongsen Health Life Co., Ltd.								Other related parties
Dongsen Health Biomedical Co., Ltd.								Other related parties
Eastern Realty Co., Ltd.								Other related parties
Jinxin Trading Co., Ltd.								Other related parties (Note III)
Good pay Web Financial Technology Co., Ltd.								Other related parties
Eastern E-Commerce Co., Ltd. (Eastern Tenmax		Direct Selling Co.,						Other related parties (Note IV)
Ltd.)
Quantum Entertainment Production Co., Ltd.								Other related parties
Dongsen Fashion Media Co., Ltd.								Other related parties (Note III)
Chinese Non-Store Retailer Association								Other related parties
Xing Kai Media Co., Ltd.								Other related parties
FocusmediaDayear Taiwan Co., Ltd.								Other related parties
Taiwan Information and Communication Association								Other related parties
Dongsen Culture Foundation								Other related parties
Chunghwa New Media Industry Frvrlopment Association (Chunghwa								Other related parties
New Media)
Eastern Enterprise Development (Shanghai) Ltd.								Other related parties
Fangcheng Su								Other related parties (Note V)
Taiwan Huangjue Trading Co., Ltd.								Other related parties (Note V)
All Directors, Supervisors and the Group								Key management personnel
								general manager and vice
								personnel general

VII. Related party transactions:
(I) Names and relationship with related parties
- Note 1: Since January 1, 2019, due to loss of control of the subsidiary, EHS will become an associate instead of the subsidiary of the merger company. Please refer to Note VI (XI).
- Note 2: Since April 2019, Eastern Integrated Marketing Co., Ltd. was renamed as Eastern New Retail Department Co., Ltd. Due to disposal of Eastern New Retail Department Co., Ltd., it became an associate as from March 2019.
- Note 3: Since January 2019, it was not a related party.
- Note 4: Since December 2019, Eastern Tenmax Direct Selling Co., Ltd. was renamed as Eastern E-Commerce Co., Ltd.
- Note 5: Since from October 2019, ET Pet obtained control over Oscar Pet Co., Ltd., Pet Kingdom Co., Ltd. and Kaou Sin Trading Co., Ltd. by acquiring 80% of its shares, these parties became other related parties of the Group.

(II) Significant transactions with related parties
Operating income

The amounts of significant sales transactions between the Group and related parties were as follows:

Associates Key management personnel Other related parties		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 9,074 600 6,092 $ 15,766		2019
				$ 8,072 470 1,139 $ 9,681

The above revenues consist of program production revenue and project planning service revenue.

Transaction terms for the above are the same as those for ordinary transactions.

Purchase of goods
(1) The amounts of significant purchase transactions between the Group and related parties were as follows:

Associates Other related parties		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 1,566 12,223 $ 13,789		2019
				$ - - $ -

(2) The costs of the Group entrusted related parties to produce programs were as follows:

Associates Key management personnel Other related parties		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020 $ 88 57 8,390 $ 8,535		2019
				$ 1,066 20 8,527 $ 9,613

Transaction terms for the above are the same as those for ordinary transactions.

3. Receivables

Accounts Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts	Relatedparties March 31, 2020 Associates $ 440 EHS 7,501 Key Management 132 Other related parties 1,637 Quantum 248	December 31, 2019 $ 1,184 16,842 191 3,329 253	March 31, 2019
			$ 1,090 12,536 773 1,186 8,614

receivable Entertainment Other receivable Associates Other receivable EHS Other receivable Key Management Other receivable Other related parties	79 1,592 - 299 $ 11,928	831 1,661 82 233 $ 24,606	541 1,151 220 1
			$ 26,112

4. Payables

Accounts Relatedparties Accounts payable Associates Accounts payable Other related parties Other payable Key Management personnel Other payable Other related parties Other payable Associates Receipts under custody Associates Receipts under custody Other related parties Contract liabilities Accounts Relatedparties	Relatedparties	March 31, 2020 $ 935 2,001 30 4,793 231 503 1,209 $ 9,702 March 31, 2020 $ 182 76 $ 258		December 31, 2019 $ 563 7,904 73 194 3,707 98 - $ 12,539 December 31, 2019 $ 14 173 $ 187		March 31, 2019
						$ - 521 342 2,112 1,107 413 2,163 $ 6,658 March 31, 2019
Contract liabilities Associates Contract liabilities Other related parties						$ 14 - $ 14

5. Contract liabilities

6. Loans to Related Parties

The Group’s actual drawdown on the funds loaned to Eastern New Retail Departmant Co., Ltd. as of March 31, 2019 was $45,000 (recorded as other receivables).

The interest charged by the Group to related parties is based on the average interest rate charged by financial institutions on the Group’s short-term borrowings. Interest receivables of the Group as of March 31, 2020, December 31, 2019 and March 31, 2019

was $0, $0, and $115, respectively. The interest received by the Group from January 1 to March 31, 2020 and 2019, was $0 amd $115, respectively.

Borrowings from related parties

Borrowings from related parties
EHS Fangcheng Su		March 31, 2020	December 31, 2019			March 31, 2019
		$ 180,000 80,000 $ 260,000		$ 100,000 80,000 $ 180,000		$ - - $ -

Interest which results from the unsecured borrowings by the Group from related parties would be calculated based on the average rates in the current year obtained from financial institutions. As of March 31, 2020, December 31, 2019 and March 31, 2019, the Group’s interest payable amounted to $287, $555, and $0, respectively. For the years ended March 31, 2020 and 2019, interest expense to the related party amounted to $2,086 and $0, respectively.

Endorsement / Guarantee provided

For the years ended March 31, 2020 and 2019, the remuneration paid to related parties providing guarantees on the loans taken out by the Group amounted to $25 and $9 respectively.

9. Leases

(1) The Group rents out part of its office space and equipment to fulfill related parties’ business requirements. Rental revenues from January 1 to March 31, 2020 and 2019, amounted to $85 and $551, respectively.
(2) The Group applied IFRS 16, with a date of initial application on January 1, 2019. Because the Group applied on the remission of short-term lease contract, the rental expense from January 1 to March 31, 2020 and 2019, was amounted to $112 and $278 . The outstanding balance as of March 31, 2020 and 2019, amounted to $0.

10. Other

(1) For the years ended March 31, 2020 and 2019, the Group paid operating fees to associates, key management (juridical person director), and other related parties to fulfill its business requirements amounting to $6,224 and $7,200, respectively.
(2) In order to follow its operating plan, the Group donated $3,000 and $2,000 to related parties in related industries from January 1 to March 31, 2020 and 2019, respectively.
(3) For the years ended March 31, 2020 and 2019, the Group received non-operating revenue from related parties amounting to $220 and $507, respectively.
(4) For the years ended March 31, 2020 and 2019, the Group obtained assets from associates amounting to $0 and $105, respectively, which had already been paid.
(5) For the years ended March 31, 2020 and 2019, the Group sold assets to associates

amounted to $0 and $44 and the gains on sales of assets were $0 and $15, respectively, which had already been received.

(6) In March, 2019, the Group sold 100% of Eastern New Retail Department to EHS at the amount of $997, and it had been received.
(7) In January, 2020, the Group sold 100% of Eastern Biotechnology (Shanghai) to EHS at the amount $778 (RMB177 thousands), and it had been received.

(III) Key management personnel compensation

Three Months Ended March 31 2020 2019 Short-term employee benefits $ 12,802 $ 12,370 Pledged assets: As of March 31, 2020, December 31, 2019 and March 31, 2019, the pledged assets were as follows: Assets Purpose ofpledge March 31, 2020 December 31, 2019 March 31, 2019 Property, plant and equipment Short-term and long-term loans $ 890,314 $ 906,227 $ 933,861 Other financial assets－ current- demand deposits Interest from reserve account 69,673 72,491 83 〃 Letter of credit 4,915 4,967 - 〃 Security for issuance of travel vouchers at travel fair 5,365 7,795 5,801 〃 Credit card contract - - 200 Refundable deposit－ time deposit Bid bonds, performance bonds and security deposits 435,940 234,757 156,254 Other financial assets－ non-current reserve account Deposit in long-term loan 750 750 750 Investments accounted for using equity method for subsidiary's stocks (Note) Long-term loan 69,232 83,229 126,145 $ 1,476,189 $ 1,310,216 $ 1,223,094		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2020	2019
					$ 933,861 83 - 5,801 200 156,254 750 126,145 $ 1,223,094

VIII. Pledged assets:

As of March 31, 2020, December 31, 2019 and March 31, 2019, the pledged assets were as follows:

Note: The investments accounted for using equity method for subsidiary’s stocks have been written off in the preparation of consolidated financial statement.

IX. Significant commitments and contingencies:

(I) Major commitments were as follows:
Unused standby letters of credit:

jor commitments were as follows: Unused standby letters of credit:
Unused standby letters of credit		March 31, 2020 $ 49,445	December 31, 2019 $ 49,965		March 31, 2019
					$ -

The subsidiary Mohist had signed a contract with Sunny Bank Co., Ltd., and the bank provided guarantee with sufficient performance guarantee according to the contract. As of March 31, 2020, the unused the e voucher guaranteed by the bank was $5,365.
In March 2020, the Group’s subsidiary—Tunglin Asset Management Co. entered into a contract with the Economic Development Department of the New Taipei City Government and the North Branch of the National Property Administration, Ministry of Finance for the granting of land rights for the “Investment Project of Linkou International Media Park”.The duration of the land rights is 50 years from the date of registration of the land rights and was completed on April 13, 2020.During the term of the lease, Tunglin Asset Management Co. shall pay annual rent to the North Branch of the National Property Administration, Ministry of Finance at a certain percentage of the published land premium.

In addition, Tunglin Asset Management Co. entered into an investment contract with the Economic Development Department of the New Taipei City Government in March 2020, the main provisions of which are as follows.

  - (1) Development and operation period: 50 years from the date of registration of the land rights.

  - (2)Development royalties: The total amount of $200,000 has been paid in full as of March 31, 2020 (recorded under other non-current - other).

  - (3) Operating royalties: The actual operating royalties payable by each base are calculated by multiplying the actual net operating revenues of each base by the ratio of operating royalties to net operating revenues as stated in the contract from the commencement of operations.

  - (4) Performance bonds: As of March 31, 2020, performance bonds of $200,000 have been paid under the contract (recorded as refundable deposits).

(II) Contingent liabilities were as follows:
On October 27, 2008, the Securities and Futures Investors Protection Center (the SFIPC) filed a lawsuit to the Taipei District Court against the ex chairman and the general manager of the Company, together with all the previous directors and supervisors, alleging the offense of gaining an illegal benefit for Chia Hsin and Synthetic Fiber Co., Ltd. as well as for the family members of the ex chairman. The prosecution is based on the alleged ill gotten assets from the Company by means of false commodity transactions and capital increment in the name of Eastern

International Lease Finance Co., Ltd. and Tung Kai Lease Finance Co., Ltd. (both are subsidiaries of the Company). The SFIPC also demanded the compensation of $41,038. The Taipei District Court ruled that the Company violated the Commercial Company Act. However, both the ex chairman and the general manager were acquitted, and not only did the Company did not bear any losses from the said transaction above, but on the contrary, it gained a profit amounting to $6,894, plus an additional 5% interest arising from the delayed payment amounting to $6,884 with a total amount around $13,000. In other words, the transaction did not do any damage to the Company and its shareholders. As a result, the appeal filed against the Company was denied by the Taipei District Court on December 5, 2012. However, the SFIPC was not satisfied with the decision made by the court. Therefore, it filed another appeal, this time with the Taiwan High Court, demanding compensation amounting to $22,664. The appeal was denied on December 3, 2013. Nevertheless, the SFIPC filed an appeal once more with the Taiwan High Court on December 24, 2013. The case was transferred from the Supreme Court to the High Court on April 23, 2015, for further investigation. On May 10, 2017, the Taiwan High Court ruled against SFIPC. Therefore, SFIPC filed an appeal to the Supreme Court on June 6, 2017. The case returned to the High Court for a second trial.

The leader of subsidiary Mohist and plaintiff Liao Yucheng jointly invested in the establishment of Jia Tian Shia Leisure Business Co., Ltd. in 1999 and jointly developed patents. However, the plaintiff claimed that he did not know while registering the patents, the leader of Mohist was the only inventor and patentee. Therefore, on October 3, 2018, the plaintiff filed a lawsuit against the subsidiary Mohist, requesting confirmation of the patents and request compensation for damages of $2,000. On January 25, 2019, the Intellectual Property Court sentenced that the subsidiary—Mohist should pay $200 in compensation. (recognized in other gains and losses) As the group refused to accept the sentence, and filed a second appeal to the Intellectual Property Court on March 5, 2019. The appeal was denied the Intellectual Property Court on December 19, 2019, conviction affirmed by the Intellectual Property Court.
The Company and its subsidiary, FESS Panama, jointly chartered and returned the ship to South Korea’s Sammok Shipping Co., Ltd. (hereinafter referred to as Sammok) at Kaohsiung Port in accordance with the contract signed on August 10, 2018. Sammok believed that the ship still has many defects due to its usual operation and negligence of maintenance; hence, submitted an arbitration to the London Maritime Arbitration Association. The Company also filed a statement of defense to the arbitral tribunal in July 2019. Currently, the arbitration process is still in progress and the results have yet to be determined.

The Company established a legal affair department and hired external counselors to handle its legal affairs. As of March 31, 2020, December 31, 2019 and March 31, 2019, all unsettled lawsuits had no impact on its financial and business operation.
(III) Unrecognized contractual commitments:

The Group’s unrecognized contractual commitments are as follows:

Total contract price Payout amount		March 31, 2020 $ 91,136 $ 27,781	December 31, 2019 $ 91,136 $ 27,781		March 31, 2019
					$ - $ -

X. Losses Due to Major Disasters: None.

XI. Subsequent Events: None.

XII. Other:

(I) A summary of current period employee benefits, depreciation, and amortization, by function, is as follows:

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By function Three Months Ended March 31, 2020 Three Months Ended March 31, 2019
Operating Operating Total Operating Operating Total
By nature cost expense cost expense
Employee benefits
Salary $ 121,728 $ 146,410 $ 268,138 $ 142,041 $ 86,799 $ 228,840
Health and labor 13,176 12,917 26,093 15,910 7,784 23,694
insurance
Pension 6,467 6,613 13,080 5,831 5,570 11,401
Remuneration of 9,869 17,792 27,661 6,938 4,537 11,475
directors
Depreciation expense 224,107 76,597 300,704 152,083 31,768 183,851
Amortization expense 2,909 7,541 10,450 1,300 1,073 2,373
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(II) Discontinued operation

The shipping segment from the Group terminated all leases of shipping equipment in

advance in June 2019. As of the reporting date, the shipping segment has no actual operation, and the Group has no intention to continue its operations; hence, the Group classified the segment as discontinued operation.

Profit and loss, and cash flows from (used in) discontinued operations are summarized as follows:

marized as follows:
Results from operating activities: Operating revenue Operating costs Operating income	Three Months Ended March 31, 2019
	$ 101,206 ( 160,382 ) ( 59,176 )

Operating Expenses Operating loss Non-operating income and expenses Other income Other gains and losses Finance costs Total non-operating income and expenses Operating income before tax Income tax expense Operating income, net of tax Cash flows from (used in) discontinued operation: Net cash from operating activities Net cash from investing activities Net cash from financing activities Net cash inflow (outflow)	Three Months Ended March 31, 2019	Three Months Ended March 31, 2019
	( ( ( ( ( ( ( ( (	8,508) 67,684 ) 676 16,805 ) 1,939) 18,068 ) 85,752 ) - $ 85,752 ) $ 64,995 ) 676 - $ 64,319 )

(III)Seasonality of operation:

The Group's operations are not affected by seasonal fluctuations.

XIII. Other disclosures:

(I) Information on significant transactions:

The following is the information on significant transactions required by the

Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Group from January 1 to March 31, 2020.

Loans to other parties:

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Number Name of lender Name of borrower Account name Related party balance Highest balance Ending usage amount Actual Range of Purposes of fund Transactionamount for Reasons for Allowance for bad debt Collateral funding loan Individual limit of fund Maximum
of financing during the interest financing business short-term Item Value limits financing
to other period rates for the between two financing
parties during during borrower parties
the period the
period
0 The ET New Media Other Yes $ 300,000 $ 300,000 $ 300,000 3 2 $ - Operation $ - $ - 2,569,045 3,853,567
Compa receivables requirements (Note 2) (Note 2)
ny － related
party
0 〃 Eastern Hotels & 〃 Yes 670,000 670,000 656,000 3 2 - 〃 - - 2,569,045 3,853,567
Resorts (Note 2) (Note 2)
0 〃 Mohist Web 〃 Yes 50,000 50,000 18,500 3 2 - 〃 - - 2,569,045 3,853,567
Technology Co., (Note 2) (Note 2)
Ltd. (MWT)
0 〃 ET Pet 〃 Yes 100,000 100,000 100,000 3 2 - 〃 - - 2,569,045 3,853,567
(Note 2) (Note 2)
1 EIC ET New Media 〃 Yes 270,000 270,000 270,000 3 2 - 〃 - - 342,057 513,086
(Note 3) (Note 3)
1 EIC Oscar 〃 Yes 40,000 40,000 20,000 3 2 - 〃 - - 342,057 513,086
(Note 3) (Note 3)
2 TKLF ET New Media 〃 Yes 190,000 150,000 50,000 3 2 - 〃 - - 267, 053 400,580
(Note 4) (Note 4)
2 TKLF 〃 Cheng Kuang Other No 15,000 15,000 15,000 8 2 - 〃 - Alishan House’s 15,820 33,381 400,580
Resource Exploration receivables share (Note 4) (Note 4)
Co., Ltd.
2 〃 Sunflower leisure 〃 No 30,000 30,000 30,000 8 2 - 〃 - 〃 30,810 33,381 400,580
(Note 4) (Note 4)
2 〃 Lido International 〃 No 20,000 20,000 20,000 8 2 - 〃 - Tucheng land mortgage [ 65,000 ] 33,381 400,580
Consultant (Note 4) (Note 4)
3 EILF ET New Media Other Yes 150,000 150,000 50,000 3 2 - 〃 - - 246,249 369,373
receivables (Note 5) (Note 5)
－ related
party
3 〃 Cheng Kuang Other No 15,000 15,000 15,000 8 2 - 〃 - Alishan 15,400 30,781 369,373
Resource Exploration receivables House’s (Note 5) (Note 5)
Co., Ltd. share
3 〃 Sunflower leisure 〃 No 30,000 30,000 30,000 8 2 - 〃 - Alishan 30,810 30,781 369,373
House’s (Note 5) (Note 5)
share
3 〃 Lido International 〃 No 20,000 20,000 20,000 8 2 - 〃 - 〃 20,400 30,781 369,373
Consultant (Note 5) (Note 5)
3 〃 Racing International 〃 No 20,000 20,000 20,000 8 2 - 〃 - Alishan 49,820 30,781 369,373
Management & House’s (Note 5) (Note 5)
Consultant share,
Shiding
land
mortage
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Note 1: Lending of capital has the following two types: (1) Those with business dealings.

(2) The necessity for short-term financing.

Note 2: The Company’s total amount available for lending shall not exceed 60% of its net worth. For subsidiaries where the Company holds more than 50% of the shares, the individual amount available for lending shall not exceed 40% of its net worth in the most recent financial statements. For subsidiaries where the Company holds less than 50% of the shares, the individual amount available for lending shall not exceed 5% of its net worth in the most recent financial statements.

Note 3: For EIC, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company, subsidiaries or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements.

Note 4: For TKLF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available for lending to other companies’ short-term financing facility, if necessary, shall not exceed 5% of its net worth in the most recent financial statements.

Note 5: For EILF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available

for lending to other companies’ short-term financing facility, if necessary, shall not exceed 5% of its net worth in the most recent financial statements.

Note 6: The aforementioned inter company transactions have been eliminated in the consolidated financial statements.

2. Guarantees and endorsements for other parties:

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No. Name of guarantor Counter party of Limitation on Highest Balance of Actual usage Property Ratio of accumulated Maximum Parent company Subsidiary Endorsements/
guarantee and amount of balance for guarantees amount during pledged for amounts of amount for endorsements/ endorsements guarantees to
endorsement guarantees and guarantees and and the period guarantees and guarantees and guarantees and guarantees to / third parties
Name Relationship endorsements for a endorsements endorsements endorsements endorsements to net endorsements third parties on guarantees on behalf of
with the specific enterprise during as of (Amount) worth of the latest behalf of to third companies in
Company the period reporting date financial statements subsidiary parties on Mainland
(Note I) behalf of China
parent
company
0 The Company ET New Media 2 $ 25,690,449 $ 150,000 $ 150,000 $ 142,500 $ - 2.34% $ 25,690,449 Y N N
(Note 2) (Note 2)
0 The Company Eastern Hotels & 2 25,690,449 800,000 800,000 50,000 69,232 12.46% 25,690,449 Y N N
Resorts (Note 2) (Note 2)
0 The Company ET Pet 2 25,690,449 200,000 200,000 190,000 - 3.11% 25,690,449 Y N N
(Note 2) (Note 2)
1 ET New Media ET Pet 2 8,391,739 400,000 400,000 180,000 - ( 148.52 %) 8,391,739 N N N
(Note 3) (Note 3)
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Note 1: The relationship between the one providing endorsements/guarantees and the one receiving endorsements/guarantees is classified into seven types:

(1) The inter company business transaction

(2) Companies in which the Company directly and indirectly holds more than 50% of the voting rights. (3) Companies that directly and indirectly hold more than 50% of the voting shares of the Company. (4) The Company holds, directly or indirectly, 90% or more of the voting shares of the Company. (5) Company that is mutually protected under contractual requirements based on the needs of the contractor.
(6) Company that is endorsed by its shareholders in accordance with its shareholding ratio because of the joint investment relationship.

(7) Performance guarantees for pre sale contracts under the Consumer Protection Act.

Note 2: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 400% of its net worth in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 400% of its net worth in the most recent financial statements. Note 3: For ET New Media, the aggregate amount allows an endorsement or guarantee that does not exceed 300% of its net worth in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 300% of its net worth in the most recent financial statements.

3. Securities held at the end of the period (excluding investment in subsidiaries, associates and joint ventures):

Unit: Shares/Foreign currency thousands

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Ending balance
Category and
Name of name of Relationship Accounttitle Shares/Units Percentage of
holder security with company (thousands) [Carrying value] ownership Fair value Note
(%)
The Company China Development Financial - Financial assets at fair value through 1 $ - - % $ -
Holdings profit or loss
〃 Taiwan Semiconductor - 〃 100,000 27,400 - % 27,400
Manufacturing
〃 Taiwan Cement Co., Ltd.T - 〃 5,150,000 203,424 0.10 % 203,424
〃 Phoenix New Media Co., Ltd - 〃 2,000 4 - % 4
〃 Kaohsiung Harbor Stevedoring Co., - Non-current financial assets at fair 750,000 7,500 15.00 % 7,500
Ltd. value through other comprehensive
income
〃 Leo Exploitation Co., Ltd. - 〃 165,663 - 11.43 % -
EIC Western Pacific International - Non-current financial assets at fair 480,000 5,015 12.00 % 5,015
value through other comprehensive
income
EILF Taiwan Cement Co., Ltd.T - Financial assets at fair value through 1,210,000 47,795 - % 47,795
profit or loss
MWT Sunny Bank - Non-current financial assets at fair 58,432 584 - % 584
value through other comprehensive
income
----- End of picture text -----

Oscar COTA Commercial Bank, Ltd.

〃 1,000 10 - % 10

4.Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:

Name of company	Category and name of security	Account name Name of counter party	Account name Name of counter party	Relation- ship with the company	Beginnin	g Balance	Purc	hases		Sale	s		Ending	Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount (Note 1)
The Compan y	Tunglin Asset Management Co.	Investments accounted for using equity method	-	-	-	$ -	33,000,000	$330,000	-	$ -	$ -	$ -	33,000,000	$ 329,867

Note 1: Including exchange differences on financial assets designated at fair value, investments accounted for using equity method, and translation.

Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
Related party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
Receivables from related parties with amounts exceeding the lower of NT$100 million or 20%

of the capital stock:

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Name of Nature of Ending Turnover Overdue Amounts Allowance
company Counter party relationship balance rate Amount Action taken received in for bad
subsequent debts
period
EMI ET New Media Subsidiary $ 301,529 Not Applicable $ - - $ 1,529 $ -
EMI Eastern Holtels& Resorts Subsidiary 656,974 Not Applicable - - 974 -
EMI ET Pet Subsidiary 100,296 Not Applicable - - 296 -
EIC ET New Media Subsidiary 270,449 Not Applicable - - 449 -
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Trading in derivative instruments: None.

10. Business relationships and significant intercompany transactions:

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

Nature Intercompany transactions
No. Name of Name of counter party of Account name Amount Trading terms Percentage of the
company relation- consolidated net
ship revenue or total
assets
0 EMI ET New Media 1 Other receivables due $ 301,529 Refer to market price 2.05%
from related parties
0 EMI Eastern Holtels& 1 Other receivables due 656,974 Refer to market price 4.46%
Resorts from related parties
0 EMI ET Pet 1 Other receivables due 100,296 Refer to market price 0.68%
from related parties
1 EIC ET New Media 3 Other receivables due 270,449 Refer to market price 1.84%
from related parties
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Note 1: For the inter-company business relationship and transaction condition in the “Number” column, the labeling method is as follows: 1.Parent company - 0.

2.Subsidiaries - in sequence from 1.

Note 2: Relationship is classified into three types:

1.Parent company to subsidiary
2.Subsidiary to parent company
3.Subsidiary to parent company

(II) Information on investees:

From January 1 to March 31, 2020, the information on investees is as follows:

Unit: Shares/Foreign currency thousands

Original investment amount Balance as of March 31, 2019 Net income Share of Name of Name of investee Location Main March 31, 2020 December 31, Shares Percentage of Carrying value (losses) profits/losses of Note investor businesses and products 2019 Ownership of investee investee

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Original investment amount Balance as of March 31, 2019 Net income Share of
Name of Name of investee Location Main March 31, 2020 December 31, Shares Percentage of Carrying value (losses) profits/losses of Note
investor businesses and products 2019 Ownership of investee investee
The Company EHR Taiwan Management & consultancy $ 208,931 $ 208,931 20,893,08 6 60.40% $ 69,232 ( $ 23,174 ) ( $ 13,997 ) Subsidiary
servives, leisure site
management, catering
business, sports training
business, catering
business
The Company Tunglin Asset Taiwan Real estate leasing 330,000 - 33,000,000 55.00% 329,867 ( 241 ) ( 133 ) Subsidiary
Management
Co.
The Company EHK E&S Co., Korea Use and operation of foreign 49,019 49,019 36,000 30.00% 24,914 - - Associate
Ltd. broadcasting channels,
broadcasting of
informational advertising
on broadcasting channels,
sales of products through
broadcasting
advertisements, and
purchase of broadcasting
contents.
EIC ET New Media Taiwan Advertising, online 6,275 6,275 627,492 1.05% ( 2,817 ) ( 143,700 ) Exempt from Sub-subsidiary
newspaper, Produce a disclosure
broadcast program,pet
food
EIC EHS Taiwan Department stores, 243,794 243,794 19,726,660 19.36% 343,819 244,526 〃 Associate
supermarkets, online
stores
EIC TKLF Taiwan Planning and design and 77,115 77,115 7,597,500 10.00% 66,763 ( 354 ) 〃 Sub-subsidiary
leasing of cable TV
broadcasting system
EIC EILF Taiwan Planning and design and 74,464 74,464 7,567,500 10.00% 61,562 ( 1,593 ) 〃 Sub-subsidiary
leasing of cable TV
broadcasting system
EIC EHR Taiwan Management & consultancy 45,660 45,660 4,566,038 13.20% 15,130 ( 23,174 ) 〃 Sub-subsidiary
servives, leisure site
management, catering
business, sports training
business, catering
business
TKLF EILF Taiwan Planning and design and 269,766 269,766 27,243,000 36.00% 221,624 ( 1,593 ) 〃 Sub-subsidiary
leasing of cable TV
broadcasting system
TKLF EHR Taiwan Management & consultancy 45,660 45,660 4,566,038 13.20% 15,130 ( 23,174 ) 〃 Sub-subsidiary
servives, leisure site
management, catering
business, sports training
business, catering
business
EILF TKLF Taiwan Planning and design and 278,342 278,342 27,351,000 36.00% 240,348 ( 354 ) 〃 Sub-subsidiary
leasing of cable TV
broadcasting system
EILF EHR Taiwan Management & consultancy 45,660 45,660 4,566,038 13.20% 15,130 ( 23,174 ) 〃 Sub-subsidiary
servives, leisure site
management, catering
business, sports training
business, catering
business
FESS-Panama GSMC-Cayman Cayman Holding company 137,363 137,363 450,000 100.00% 88,581 ( 232 ) 〃 Sub-subsidiary
Islands
FESS-Panama Eastern Hong Holding company 305 305 28,569,840 100.00% 50,837 ( 297 ) 〃 Sub-subsidiary
Communicati Kong
on Hong
Kong
FESS-Panama NATURAL Cayman Investing activities 2,060,871 2,060,871 600,630,280 30.00% 2,009,759 ( 58,918 ) 〃 Associate
BEAUTY Islands
GSMC-Cayma Sen Want (Hong Hong Investing activities 125,153 125,153 3,198,000 100.00% 85,513 ( 226 ) 〃 Sub-subsidiary
n Kong) Kong
ET New Show off Taiwan Video advertising service 100,000 100,000 10,000,000 100.00% 3,396 ( 57 ) 〃 Sub-subsidiary
Media
ET New Dung sen shin Taiwan Audiovisual and Singing 100 100 10,000 100.00% 664 137 〃 Sub-subsidiary
Media guangyun Information Leisure
ET New Dung sen dian Taiwan Amusement park 100 100 10,000 100.00% ( 32 ) ( 1 ) 〃 Sub-subsidiary
Media jing yun information leisure
ET New Dung sen shin Taiwan Amusement park 5,000 5,000 500,000 100.00% 4,987 - 〃 Sub-subsidiary
Media wen yun information leisure
ET New ET Pet Taiwan Pet food and supplies and 185,000 185,000 18,500,000 92.50% 124,180 ( 11,798 ) 〃 Sub-subsidiary
Media providing pet beauty
service
ET Pet Oscar Taiwan Pet food and supplies and 317,437 317,437 4,873,200 80.00% 328,785 14,632 〃 Sub-subsidiary
providing pet beauty
service
ET Pet Pet Kingdom Taiwan Pet food and supplies and 36,836 36,836 3,440,000 80.00% 39,849 624 〃 Sub-subsidiary
providing pet beauty
service
ET Pet Kaou Sin Taiwan Pet food and supplies and 7,941 7,941 80,000 80.00% 10,920 1,574 〃 Sub-subsidiary
providing pet beauty
service
----- End of picture text -----

(III) Information on investment in Mainland China:

1. Information on investment in Mainland China:

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

Name of Main Total Method of Accumulated Investment flows Accumulated Net Percentage Investment Book Accumulated
investee businesses and of paid-in amount investment investment fromoutflow of Outflow Inflow investment outflow of income (losses) ownership of income (losses) value remittance of earnings in
products capital Taiwan as of from of the investee current
January 1, 2020 Taiwan as of period
March 31, 2020
EED Transporting and packing $ - Note 2 $ 988,358 - - $ 988,358 $ - -% $ - $ - -
(Shanghai) service
Ding Kai Wholesale and retail of - Note 3 371,087 - - 371,087 - -% - - -
(Shanghai) clothing, garments and
accessories, household
electrical equipment and
supplies, clocks, watches
and spectacles, jewelry and
precious metals, etc.
Sheng Hang Wholesale and retail of - Note 4 181,770 - - 181,770 - -% - - -
(Shanghai) clothing, garments and
accessories, household
electrical equipment and
supplies, clocks, watches
and spectacles, jewelry and
precious metals, food
goods, medicines,
cosmetics and cleaning
products, etc.
Xiang Fu Wholesale and retail of 1,067,039 Note 5 1,067,039 - - 1,067,039 ( 275 ) 100.00% ( 275 ) 5,519 -
(Shanghai) clothing, garments and
accessories, household
electrical equipment and
supplies, clocks, watches
and spectacles, jewelry and
precious metals, food
goods, medicines,
cosmetics and cleaning
products, etc.
Nanjing Yun Fu Wholesale trading 44,205 Note 6 84,488 - - 84,488 9 100.00% 9 9,969 -
Jiangsu Sen Fu Da Research and development 42,550 Note 7 14,467 - - 14,467 - 34.00% - 5,896 -
of film and television
technology; research and
development and sales of
toys, clothing; planning and
implementation of cultural
and artistic exchange
activities.
Shanghai Rich Producing TV programs, 42,550 Note 8 45,005 - - 45,005 ( 9 ) 100.00% ( 9 ) ( 502,508 ) -
wholesale
Eastern En Transport consulting - Note 11 - - - - - -% - - -
service
Eastern Enterprise Container transport, 8,467 Note 9 - - - - ( 50 ) 100.00% ( 50 ) 8,747 -
Shanghai domestic road freight agent
Logistics
Eastern Selling agricultural - Note 10 - - - - - -% - - -
Biotechnology products, packaged food
Shanghi Natural Production and sale of 425,153 Note 5 - - - - 2,449 30.00% 735 139,442 -
Beauty Fuli beauty care products and
Cosmetics provision of beauty and
Company body care services
Limited
Shanghi Natural Sales of health care 91,570 Note 5 - - - - ( 468 ) 30.00% ( 140 ) 31,075 -
Beauty products
Bio-Med
Company
Limited
Shanghi Natural Produces of beauty care 1,031,705 Note 5 - - - - 2,305 30.00% 692 395,161 -
Beauty products
Bio-technology
Company
Limited
----- End of picture text -----

Note 1: The investment gain (loss) was recognized based on the investees’ audited financial statements. Note 2: The Group indirectly made the investment through FESS Panama, and disposal of all shares onApril 23, 2018.
Note 3: The Group indirectly made the investment through Grand Richness Hong Kong, and the investment completed cancellation of registration on September 21, 2018.
Note 4: The Group indirectly made the investment through Grand Richness Hong Kong, and the investment completed cancellation of registration on February 21, 2019.
Note 5: The Group indirectly invested through FESS Panama.
Note 6: The Group indirectly invested through FESS Panama, and the investment was handling capital reduction and returning shares of RMB9,467 on February 1, 2018, the amount of the share is remitted back to the Sen Want (Hong Kong).
Note 7: The Group indirectly invested t through Nangjing Ji Cheng on August 30, 2012.
Note 8: The Group indirectly invested through Xiang Fu (Shanghai) on March 16, 2015.
Note 9: The Group indirectly invested through Sen Want (Hong Kong) in January, 2018.
Note 10: The Group indirectly invested through Sen Want (Hong Kong), and disposed all of its shares in Eastern En on January 20, 2020.

Note 11: The Group indirectly invested through Sen Want (Hong Kong), and disposed all of its shares in Eastern En on June 21, 2019.

Note 12: The amount in the table is translated by the spot rate on the financial reporting date and the average rate throughout the year.

2.Limitation on investment in Mainland China:

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

Company Accumulated Investment in Investment Amounts Upper Limit
Name Mainland China as of March 31, Authorized on Investment
2020 by Investment Commission,
MOEA
The Company $ 2,752, 214 $ 4,075,291 $ 4,062,492
----- End of picture text -----

Note: The upper limit on investment was the greater of 60% of the individual or consolidated total net worth.

Significant transactions with investee companies in Mainland China:

For the Group’s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the year ended March 31, 2020, please refer to “Information on significant transactions” above.

(IV)Information on principal shareholders:

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

Shares
Name
Number of shareholding Percentage of shareholding
E-Happy Travel Co., Ltd. 55,056,860 9.88 %
Jinxin Trading Co., Ltd. 53,621,300 9.63 %
Sen Feng International Co., Ltd. 51,564,628 9.26 %
Segment information:
The Group’s operating segment information and reconciliation are as follows:
Warehousing Trading Media Tourism Others Total
Three Months Ended March
31, 2020
Revenue:
Revenue from external
customers $ 316,645 $ 447,177 $ 285,028 $ - $ 16,203 $ 1,065,053
Reportable segment profit or
loss $ 149,417 $ 85,727 ($ 133,444) ($ 23,389) ($ 79,267) ($ 956)
Three Months Ended March
31, 2019
Revenue:
Revenue from external
customers $ 294,832 $ 53,109 $ 208,074 $ - $ 31,855 $ 587,870
Reportable segment profit or
loss $ 138,021 $ 21,413 ($ 120,485) ($ 24,670) $ 125,909 $ 140,188
----- End of picture text -----

AI assistant

EMIC — Interim / Quarterly Report 2020

52168_rns_2020-11-09_9e4f0062-d61c-4021-aa42-c68e58d6bbd1.pdf

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements

Table of Contents

Independent Auditors’ Report

Foreword

Scope

Basis for qualified conclusion

Qualified Conclusion

KPMG

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In Thousands of New Taiwan Dollars)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Cotn’d) (In Thousands of New Taiwan Dollars, Except Earnings (Losses) Per Share) (Reviewed, Not Audited)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Expressed in Thousands of New Taiwan Dollars)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Cotn’d)

(In Thousands of New Taiwan Dollars)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

I. Company history

II. Approval date and procedures of the consolidated financial statements:

III. New standards, amendments and interpretations adopted:

(II) The impact of IFRS issued by IASB but not yet endorsed by the FSC

IV. Summary of significant accounting policies:

(I) Statement of compliance

(II) Basis of consolidation

1. List of subsidiaries in the consolidated financial statements:

2. Subsidiaries excluded from the consolidated financial statements: None.

(III) Income taxes

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

VI. Explanation of significant accounts:

(IV) Notes receivable (including related parties)

(1)Natural Beauty Bio-technologyLimited

(2) Eastern Home Shopping & Leisure Co., Ltd.

(IX) Acquire a subsidiary

(3) Goodwill:

(XIV) Intangible assets

(XV)Short-term loans:

(XVIII) Lease liabilities

(XX) Employee benefits

1. Defined benefit plans

2. Defined contribution plans

(XXII) Capital and other equity

1. Retained earnings

the shareholders.

3. Other equity(net of tax)

(XXIII) Earnings per share

(XXV) Remuneration of employee

1. Other income

2. Other gains and losses

3. Finance costs

1. Credit risk

(1) Credit risk exposure

(2) Concentration of credit risk

(IV).

2. Liquidity risk

(2) Sensitivity analysis

4. Interest rate analysis

6. Fair value of financial instruments

(1) Fair value hierarchy

(XXIX) Capital management

3. Receivables

4. Payables

5. Contract liabilities

6. Loans to Related Parties

9. Leases

10. Other

VIII. Pledged assets:

IX. Significant commitments and contingencies:

XI. Subsequent Events: None.

XII. Other:

(II) Discontinued operation

(III)Seasonality of operation:

XIII. Other disclosures:

(I) Information on significant transactions:

2. Guarantees and endorsements for other parties:

3. Securities held at the end of the period (excluding investment in subsidiaries, associates and joint ventures):

10. Business relationships and significant intercompany transactions:

EMIC Interim / Quarterly Report 2020