EMIC - Interim / Quarterly Report 2021

Stock code: 2614

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements

With Independent Auditors’ Review Report

For the Three Months Ended March 31, 2021 and 2020

Address: 5F & 8F., No. 368, Sec. 1, Fuxing S. Rd., Da'an Dist., Taipei City 106, Taiwan Telephone: 886-2-27557565

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.

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Table of Contents
Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheet 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) Major shareholders XIV. Segment information	Page 1 2 3`～`4 5`～`6 7`～`8 9 10`～`11 12 12 12`～`14 14`～`17 17 18`～`46 46`～`51 51 51`～`52 52 52 53 53, 55`～`59 53, 60`～`61 53, 62`～`63 53, 64 54	Note
		1 2 3 4 5 6`～`36 37 38 39 40 41 42 43 43 43 43 43 44

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Independent Auditors’ Review Report

To the Board of Directors of Eastern Media International Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Eastern Media International Corporation and its subsidiaries as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020, and changes in equity and cash flows for the three months ended March 31, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards 65, “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4b, the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $173,147 thousand and $942,407 thousand, constituting 1.09% and 6.36% of consolidated total assets as of March 31, 2021 and 2020, respectively, total liabilities amounting to $57,223 thousand and $29,295 thousand, constituting 0.60% and 0.37% of consolidated total liabilities as of March 31, 2021 and 2020, respectively, and total comprehensive income amounting to $945 thousand and $32,165 thousand, constituting 1.95% and 24.30% of consolidated total comprehensive income for the three months ended March 31, 2021 and 2020, respectively.

Furthermore, as stated in Note 13 the other equity accounted investments of Eastern Media International Corporation and its subsidiaries in its investee companies of $1,948,460 thousand and $2,040,569 thousand as of March 31, 2021 and 2020, respectively, and its equity in net loss on these investee companies of $(1,899) thousand and $(27,674) thousand for the three months ended March 31, 2021 and 2020, respectively, were recognized solely on the financial statement prepared by these investee companies, but not reviewed by independent auditors.

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Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews and the review reports of other auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Eastern Media International Corporation and its subsidiaries as of March 31, 2021 and 2020, and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Emphasis of Matetr

As stated in Note 3c, IASB issued Amendment to IFRS 16, “Covid-19-Related Rent Concessions” on May 28, 2020. The amendment was endorsed by the FSC in July, 2020, and initially adopted from January 1, 2020. The Group has elected to apply this amendment with early adoption. This change in accounting policies has no impact on the initial adoption day. However, the consolidated financial statements for the three months ended March 31, 2020 should be restated and the review conclusion did not revised.

The engagement partners on the review resulting in this independent auditors’ report are Shin-Chin Chih and Hsin-Ting Huang

KPMG

Taipei, Taiwan (Republic of China) May 6, 2021

Notes to Readers

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.

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Note 6) 1110 Current financial assets at fair value through profit or loss (Note 7) 1151 Notes receivable (Notes 9 and 30) 1160 Notes receivable due from related parties, net (Notes 9, 30 and 37) 1170 Accounts receivable, net (Notes 9 and 30) 1180 Accounts receivable due from related parties, net (Notes 9, 30 and 37) 1200 Other receivables, net (Notes 7 and 10) 1210 Other receivables due from related parties, net (Notes 10 and 37) 130X Inventories (Note 11) 1400 Current biological assets, net 1410 Prepayments(Note 37) 1476 Other current financial assets (Notes 6 and 38) 1479 Other current assets, others Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Note 8) 1550 Investments accounted for using equity method, net (Note 13 and 38) 1600 Property, plant and equipment (Notes 17 and 38) 1755 Right of use assets (Note 18) 1780 Intangible assets (Notes 19 and 37) 1840 Deferred tax assets 1920 Refundable deposits (Notes 18 and 38) 1980 Other non-current financial assets (Note 38) 1990 Other non-current assets, others (Note 39) Total assets	March 31,2021 (Reviewed)	December 31,2020 (Audited)	March 31,2020 (Restatement)
	Amount % $ 1,858,488 12 209,340 1 60,199 - 47,153 - 287,801 2 24,504 - 93,080 1 3,754 - 329,754 2 12,739 - 64,931 1 40,005 - 1,440 - 3,033,188 19 8,116 - 2,545,525 16 1,754,270 11 7,006,120 44 459,144 3 440,673 3 574,317 4 30,985 - 52,326 - 12,871,476 81 $ 15,904,664 100	Amount % $ 1,855,653 11 381,611 2 63,006 - 54,568 - 333,369 2 22,573 - 93,616 1 7,392 - 346,909 2 12,405 - 65,036 1 43,934 1 915 - 3,280,987 20 8,104 - 2,443,035 15 1,669,684 10 7,210,677 45 467,334 3 414,169 3 562,689 3 33,760 - 133,035 1 12,942,487 80 $ 16,223,474 100	Amount % $ 1,523,391 10 278,623 2 45,139 - - - 224,175 2 9,958 - 186,275 1 1,970 - 272,326 2 7,396 - 64,311 1 174,186 1 452 - 2,788,202 19 13,109 - 2,500,074 17 1,504,808 10 6,536,902 44 486,106 3 264,673 2 483,034 3 750 - 240,889 2 12,030,345 81 $ 14,818,547 100

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance S heet s (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

December 31,2020 (Audited)	March 31,2020 (Restatement)	March 31,2020 (Restatement)
Amount % $ 62,295 1 - - 37,439 - 94,604 1 204,805 1 11,483 - 623,289 4 16,660 - 14,111 - 1,174,478 7 23,125 - 290,529 2 28,433 - 2,581,251 16 637,986 4 48 - 6,167,307 38 60,886 - 25,717 - 4,756 - - - 6,896,700 42 9,477,951 58 5,567,899 35 20,769 - 983,904 6 (295,956) (2) 6,276,616 39 468,907 3 6,745,523 42 $16,223,474 100	Amount $ 10,000 19,929 23,535 33,763 144,357 2,936 415,286 265,341 26,250 909,405 6,892 92,745 26,306 1,976,745 295,318 - 5,658,991 - 27,854 7,118 - 5,989,281 7,966,026 5,567,899 20,769 1,128,859 (221,198) 6,496,329 356,192 6,852,521 $ 14,818,547	% - - - - 1 - 3 2 - 6 - 1 - 13 2 - 38 - - - - 40 53 38 - 8 (1) 45 2 47 100

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share) (Reviewed and Restatement, Not Audited)

	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2021				2020(Restatement)
$	Amount 1,243,477 935,016 308,461 349,205 278 41,022 ) 1,200 17,248 194 ) 55,804 ) 104,046 25,474 24,947) 50,421 12 - - 12 368 ) 1,556 ) - 1,924 ) 1,912 ) 48,509		％ 100 75 25 28 - 3) - 1 - 4) 8	Amount $ 1,065,053 733,943 331,110 348,610 42 ( 17,542) 4,675 92,551 21,169 ( 55,689 ) 35,581 80,745 ( 44,967) 125,712 ( 14 ) ( 1 ) - ( 15) 1,179 5,466 - 6,645 6,630 $ 132,342		％ 100 69 39 33 - ( 2) 1 9 2 ( 5) 3 8 ( 4) 12 - - - - 1 1 - 1 1 13


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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Cotn’d) (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share) (Reviewed and Restatement, Not Audited)

(Reviewed and Restatement, Not Audited)
Profit attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: Owners of parent Non-controlling interests Earnings per share (Unit: NT$)(Note 29) 9750Basic earnings per share 9850Diluted earnings per share (Unit: NT$)		For the three months ended March 31
		2021				2020(Restatement)
	$ (	Amount 55,970 5,549) ( 50,421 54,054 5,545) 48,509 $ 0.10 $ 0.10		(	％ 5 1) 4 4 - 4	Amount ％ $ 128,586 12 ( 2,874) - $ 125,712 12 $ 135,189 13 ( 2,847) - $ 132,342 13 $ 0.23 $ 0.23

	$					$
	$ (					$ (
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			$ 0.10

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

			Equity attributable to owne	Equity attributable to owne	rs of parent			Total equity
Share capital Ordinary shares $ 5,567,899 - - - - $ 5,567,899 $ 5,567,899 - - - - $ 5,567,899	Capital surplus $ 20,769 - - - - $ 20,769 $ 20,769 - - - - $ 20,769		Retained earnings Special reserve Unappropriated retained earnings $183,222 $ 669,748 - 128,586 - - - 128,586 - - $ 183,222 $ 798,334 $ 227,801 $ 571,377 - 55,970 - - - 55,970 - (445,432 ) $ 227,801 $ 181,915		Totalother	equityinterest	Total equity attributable to owners of parent $6,361,140 128,586 6,603 135,189 - $ 6,496,329 $ 6,276,616 55,970 (1,916) 54,054 (445,432) $ 5,885,238
					Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
		Legal reserve $147,303 - - - - $ 147,303 $ 184,726 - - - - $ 184,726	Special reserve $183,222 - - - - $ 183,222 $ 227,801 - - - - $ 227,801
				$ 669,748 128,586 - 128,586 - $ 798,334 $ 571,377 55,970 - 55,970 (445,432 ) $ 181,915	$ (224,130) - 6,611 6,611 - $ (217,519) $ (292,290) - (1,922) (1,922) - $ (294,212)	$ (3,671) - (8) (8) - $ (3,679) $ (3,666) - 6 6 - $ (3,660)		$6,450,179 125,712 6,630 132,342 270,000 $ 6,852,521 $ 6,745,523 50,421 (1,912) 48,509 (445,432) $ 6,348,600

(Please read the attached notes to the consolidated financial reports)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Expressed in Thousands of New Taiwan Dollars)

(Reviewed and Restatement, Not Audited)

Cash flows (used in) from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Net (gain) loss on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Gain on disposal of investments Expected credit gain Impairment loss on non-financial assets Rent reductions listed as other income Amounts from modification of lease contracts Total adjustments to reconcile profit 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 in notes receivable Decrease in accounts receivable (Increase) decrease in accounts receivabledue from related parties Decrease in other receivable Decrease in inventories (Increase) 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 Increase (decrease) in accounts payable Decrease in other payable Decrease in receipts in advance Increase (decrease) in other current liabilities Decrease in non-current net defined benefit liability Inrease in other operating liability Decrease in other operating liabilities Net changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Income taxes paid Net cash inflow from operating activities		For the three months ended March 31	For the three months ended March 31
		2021	2020(Restatement) $ 80,745 302,651 10,450 12,131 55,689 (4,675) - (35,581) 108 (82) 42 - (83,557) - 257,176 (32,075) 18,529 105,723 11,841 99 1,071 985 12,158 (98) 20,733 138,966 (1,378) (11,079) (60,040) (84,963) (7,718) (2,691) (3,695) - (171,564) (32,598) 224,578 305,323 (2,153) 303,170
		$ 25,474 325,582 9,056 (25,237) 55,804 (1,200) (1,250) (104,046) 793 - 398 31 - (10) 259,921 197,508 10,384 45,083 (1,931) 7,796 16,036 (334) 106 (525) 6,896 281,019 (2,793) (16,170) 527 (135,654) (1,757) 1,418 (2,400) 3,500 (153,329) 127,690 387,611 413,085 (1,279) 411,806

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

(Reviewed and Restatement, Not Audited)

For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
2021	2020(Restatement) $ 778 (122,806) 30 (201,044) (20,000) (7,041) - (205,751) 4,786 (551,048) (48,000) - (18,276) - (70) - (209,463) - (54,908) 270,000 (60,717) 2,408 (306,187) 1,829,578 $ 1,523,391	2020(Restatement)
$ - (46,674) 210 (11,628) - (1,089) (188) (8,525) 1,085 (66,809) 39,077 20,000 (85,100) (15,273) (87) 100,000 (360,735) 21,352 (61,336) - (342,102) (60) 2,835 1,855,653 $ 1,858,488

(Please read the attached notes to the consolidated financial reports)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Notes To Consolidated Financial Statements For The Three Months Ended March 31, 2021 And 2020 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise) (Reviewed, Not Audited)

1. Company history

Eastern Media International Corporation (the “Company”) was established on May 14, 1975 to promote the private port silo business, and its warehouse officially opened in 1980 with the completion of its silo. 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. In addition, the Group terminated all of the lease contracts of its shipping operations in advance in June 2019.

2. Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on May 6, 2021.

3. New standards, amendments and interpretations adopted

a. 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 Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021 ：

Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform—Phase 2”
“
• Amendments to IFRS 16 A one-year extension to the practical expedient for COVID-19 related rent concessions”
b.
The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated

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financial performance. The results thereof will be disclosed when the Group completes its evaluation.

  - Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

  - IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

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

  - Amendments to IAS 16 “Property, Plant and Equipment—Proceeds before Intended Use”

  - Amendments to IAS 37 `“` Onerous Contracts `－` Cost of Fulfilling a Contract `”`

  - Annual Improvements to IFRS Standards 2018–2020

  - Amendments to IFRS 3 “Reference to the Conceptual Framework”

  - Amendments to IAS 1 “Disclosure of Accounting Policies”

  - Amendments to IAS 8 “Definition of Accounting Estimates”

c. IASB issued Amendment to IFRS 16, “Covid-19-Related Rent Concessions” on May 28, 2020. As a practical expedient, a lessee may elect not to assess whether a rent concession that meets certain conditions is a lease modification, rather any changes in lease liability are recognized in profit or loss. The Group has elected to apply the practical expedient for all rent concessions that meet the criteria beginning January 1, 2020, with early adoption. Therefore, the Group restated the consolidated financial statements for the three months ended March 31, 2020. The influences were as follows:
(a) Balance sheets

(a) Balance sheets
					March 31,2020
	March 31,2020			Influence	(Restatement)
Current assets	$	2,788,202	$	-	$	2,788,202
Right-of-use assets		6,455,292		81,610		6,536,902
Non-current assets		5,493,443		-		5,493,443
Total assets	$	14,736,937	$	81,610	$	14,818,547
Current lease liabilities	$	909,348	$	57	$	909,405
Other current liabilities		1,067,340		-		1,067,340
Non-current lease
liabilities		5,659,139	(	148 )		5,658,991
Other non-current
liabilities		330,290		-		330,290
Total liabilities	$	7,966,117	($	91 )	$	7,966,026
Equity attributable to owners of parent
Capital stock		5,567,889		-		5,567,889
Capital surplus		20,769		-		20,769
Retained earnings		1,055,142		73,717		1,128,859
Other equity interest		(221,198)		-		(221,198)
Total equity attributable
to owners of parent		6,422,612		73,717		6,496,329
Non-controlling interests		348,208		7,984		356,192
Total equity	$	6,770,820	$	81,701	$	6,852,521
Total liabilities and
equity	$	14,736,937	$	81,610	$	14,818,547

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(b) Statements of comprehensive income

For the three months ended March 31, 2020 Operating revenue $ 1,065,053 Operating costs 731,996 Gross profit from operationgs 333,057 Operating expenses 348,610 Imairment loss determined in accordance with IFRS 9 42 Net operating loss ( 15,595) Non-operating income and expenses: Interest income 4,674 Other income 8,994 Other gains and losses 21,131 Finance costs ( 55,741) Share of profit of associates accounted for using equity method 35,581 Profit (loss) before tax ( 956) Less: tax profits ( 44,967) Profit $ 44,011 Profit attributable to : Owners of parent $ 54,869 Non-controlling interests ($ 10,858) $ 44,011 Comprehensive income attributable to : Owners of parent $ 61,472 Non-controlling interests ($ 10,831) $ 50,641 Basic earnings per share$ 0.10 Diluted earnings per share $ 0.10		For the three months ended March 31, 2020		Influence For the three months ended March 31, 2020(Restatement) $ - $ 1,065,053 1,947 733,943 ( 1,947 ) 331,110 - 348,610 - 42 ( 1,947) ( 17,542) 1 4,675 83,557 92,551 38 21,169 52 ( 55,689) - 35,581 81,701 80,745 - ( 44,967) $ 81,701 $ 125,712 $ 73,717 $ 128,586 $ 7,984 ($ 2,874) $ 81,701 $ 125,712 $ 73,717 $ 135,189 $ 7,984 ($ 2,847) $ 81,701 $ 132,342 $ 0.13 $ 0.23 $ 0.13 $ 0.23	Influence For the three months ended March 31, 2020(Restatement) $ - $ 1,065,053 1,947 733,943 ( 1,947 ) 331,110 - 348,610 - 42 ( 1,947) ( 17,542) 1 4,675 83,557 92,551 38 21,169 52 ( 55,689) - 35,581 81,701 80,745 - ( 44,967) $ 81,701 $ 125,712 $ 73,717 $ 128,586 $ 7,984 ($ 2,874) $ 81,701 $ 125,712 $ 73,717 $ 135,189 $ 7,984 ($ 2,847) $ 81,701 $ 132,342 $ 0.13 $ 0.23 $ 0.13 $ 0.23
					$ 1,065,053 733,943 331,110 348,610 42 ( 17,542) 4,675 92,551 21,169 ( 55,689) 35,581 80,745 ( 44,967) $ 125,712 $ 128,586 ($ 2,874) $ 125,712 $ 135,189 ($ 2,847) $ 132,342 $ 0.23 $ 0.23

4. Summary of significant accounting policies

a. Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect

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by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2020. For the related information, please refer to Note IV of the consolidated financial statements for the year ended December 31, 2020.

b. Basis of consolidation

(a) List of subsidiaries in the consolidated financial statements:

Name of Investing Company	Subsidiary name	Nature of business	Shareholding ratio March 31,2021 December 31,2020 March 31,2020 Explanation	Shareholding ratio March 31,2021 December 31,2020 March 31,2020 Explanation
			March 31,2021
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company EIC EIC EIC EIC EILF EILF TKLF TKLF ET New Media ET New Media ET New Media ET New Media	Far Eastern Silo & Shipping (Panama) S.A. (FESS-Panama) Far Eastern Silo & Shipping International (Bermuda) Ltd. (FESS-Bermuda) Far Eastern Investment Co., Ltd. (EIC) Grand Richness Trading (Hong Kong) Co. (Grand Richness (Hong Kong)) Eastern International Lease Finance Co., Ltd. (EILF) Tung Kai Lease Finance Co., Ltd. (TKLF) ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) EHR Hotels & Resorts Group Yilan (EHR) Mohist Web Technology Co., Ltd. (MWT) Eastern Asset Co., Ltd. (Eastern Asset) Eastern International Lease Finance Co., Ltd. (EILF) Tung Kai Lease Finance Co., Ltd. (TKLF) EHR Hotels & Resorts Group Yilan (EHR) ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) Tung Kai Lease Finance Co., Ltd. (TKLF) EHR Hotels & Resorts Group Yilan (EHR) Eastern International Lease Finance Co., Ltd. (EILF) EHR Hotels & Resorts Group Yilan (EHR) Show Off Co., Ltd. (Show Off) ET Pet Co., Ltd (ET Pet) Dung sen shin guang yun Co., Ltd. (Dung sen shin guang yun) Dung sen dian jing yun Co., Ltd. (Dung sen dian jing yun)	Investing activities Investing activities Investing activities Investing activities Leasing Leasing Advertising Leisure site management, catering business Application services Real estate leasing Leasing Leasing Leisure site management, catering business Advertising Leasing Leisure site management, catering business Leasing Leisure site management, catering business Video advertising service Pet food and supplies and providing pet beauty service Audiovisual and singing, information leisure Amusement park information leisure	100.00% 100.00% 97.90% 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% 100.00% Note A 100.00% 100.00% Note A (Note 2) 97.90% 97.90% Note A 100.00% 100.00% Note A (Note 2) 53.77% 53.77% Note A 53.76% 53.76% Note A 89.20% 89.20% Note A 60.40% 60.40% Note A 51.00% 51.00% Note A (Note 2) 55.00% 55.00% Note A (Note 3) 10.00% 10.00% Note B 10.00% 10.00% Note B 13.20% 13.20% Note B 1.05% 1.05% Note B 36.00% 36.00% Note B 13.20% 13.20% Note B 36.00% 36.00% Note B 13.20% 13.20% Note B 100.00% 100.00% Note C (Note 2 and 5) 92.50% 92.50% Note C 100.00% 100.00% Note C (Note 2) 100.00% 100.00% Note C (Note 2)

～ 15 ～

Name of Investing Company	Subsidiary name	Nature of business	Shareholding ratio March 31,2021 December 31,2020 March 31,2020 Explanation	Shareholding ratio March 31,2021 December 31,2020 March 31,2020 Explanation
			March 31,2021
ET New Media ET New Media ET Pet ET Pet ET Pet FESS- Panama FESS-Panama FESS-Bermuda Eastern Media Communication (Hong Kong) RICHNESS TRADING (SHANGHAI) GSMC-Cayman GRAND SCENE TRADING (HONG KONG) GRAND SCENE TRADING (HONG KONG) GRAND SCENE TRADING (HONG KONG)	Dung sen shin wen yun Co., Ltd. (Dung sen shin wen yun) Dung sen min diau yun Co., Ltd. (Dung sen min diau yun) Oscar Pet Co., Ltd.(Oscar) Pet Kingdom Co., Ltd. (Pet Kingdom) Kaou Sin Trading Co., Ltd. (Kaou Sin) Grand Scene Media Corporation (GSMC-Cayman) Eastern Media Communication (Hong Kong) Ltd. (Eastern Media Communication Hong Kong) RICHNESS TRADING (SHANGHAI) CO.,LTD (RICHNESS TRADING (SHANGHAI)) RICHNESS TRADING (SHANGHAI) CO.,LTD (RICHNESS TRADING (SHANGHAI)) Shanghai Rich Industry Ltd. (Shanghai Rich) GRAND SCENE TRADING (HONG KONG) LIMITED Nanjing Yun Fu Trading Ltd. (Nanjing Yun Fu) Eastern Biotechnology (Shanghai) (Eastern Food (Shanghai)) Ltd. (Eastern Biotechnology (Shanghai)) Eastern Enterprise Shanghai Logistics Ltd.	Video advertising service Consulting management, market research and opinion poll Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Investing activities Investing activities Cosmetics, jewelry, and household sundries wholesaling and support services Cosmetics, jewelry, and household sundries wholesaling and support services Producing and broadcasting TV programs, wholesale and retail groceries business Investing activities Wholesale trading Selling agricultural products, packaged food Container transport, domestic road freight agent	100.00% 100.00% 80.00% 80.00% 80.00% 100.00% 100.00% 8.77% 91.23% - % 100.00% 100.00% - % - %	100.00% 100.00% Note C (Note 2) 100.00 % - % Note C (Note 2 and 7) 80.00% 80.00% Note C 80.00% 80.00% Note C 80.00% 80.00% Note C 100.00% 100.00% Note C (Note 2) 100.00% 100.00% Note C (Note 2) 8.77% 8.77% Note C (Note 2) 91.23% 91.23% Note C (Note 2) 100.00% 100.00% Note C (Note 2 and 4) 100.00% 100.00% Note C (Note 2) 100.00% 100.00% Note C (Note 2) - % - % Note C (Note 1 and 2) - % 100.00% Note C (Note 2 and 6)

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: GRAND SCENE TRADING (HONG KONG) disposed all of its shares of Eastern En and Eastern Biotechnology (Shanghai), with the completion of their share transfer registration procedures on January 20, 2020.

Note 2: As an immaterial subsidiary, the financial statements have not been reviewed.

Note 3: On January 2, 2020, the Company’s Board of Directors resolved to invest $ 100,000 in Eastern Asset Co., Ltd., with a 100% shareholding, which was registered on February 24, 2020. It participated in the cash capital increase on March 10 and June 23 of the same year. The former did not increase the capital in proportion to the shareholding ratio, with an investment amount of $ 230,000, thereby reducing its shareholding to 55%. All registration procedures had been completed on April 6, 2020. The latter transaction increased its capital by $ 165,000, and all registration procedures had been completed on July 27, 2020.

Note 4: Shanghai Rich was liqudated on March 24, 2021.

Note 5: Show off was dissolved on July 30, 2020. The processure of liquidation has not been finished by the reporting date.
Note 6: Enterprise Shanghai Logistics Ltd. has finished liquidation on July 20, 2020.

Note 7: Dung sen min diau yun was established on September 24, 2020.

～ 16 ～

(b) Subsidiaries excluded from the consolidated financial statements: None.
c. Leases

As a practical expedient, the Group elects not to assess whether all rent concessions that meets all the following conditions are lease modifications or not:

－ the rent concessions occurring as a direct consequence of the COVID-19 pandemic;
－ the change in lease payments that resulted in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
－ any reduction in lease payments that affects only those payments originally due on, or before, June 30, 2022; and
－ there is no substantive change in other terms and conditions of the lease.

In accordance with the practical expedient, the effect of the change in the lease liability is reflected in profit or loss in the period in which the event or condition that triggers the rent concession occurs.

d. Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

e. Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and 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.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to Note V of the consolidated financial statements for the year ended December 31, 2020.

～ 17 ～

6. Cash and cash equivalents

Cash and cash equivalents
Cash on hand Cash in banks Cash equivalents		March 31, 2021		December 31, 2020		March 31, 2020
		$ 11,597 1,262,112 584,779 $ 1,858,488		11,835 1,267,588 576,230 1,855,653		9,673 1,407,789 105,929 1,523,391

Bank time deposits whose original maturity date exceeds three months are classified as other current financial assets. The deposit accounts of $2,471, $2,278, and $94,233 which did not meet the definition of cash and cash equivalents, were classified as other current financial assets for March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Please refer to Note 33 for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

7. Financial assets at fair value through profit or loss

Financial assets designated as at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic markets		March 31, 2021		December 31, 2020		March 31, 2020
		$ 209,340		$ 381,611		$ 278,623

a. Please refer to Note 33 for the remeasurement of fair value.
b. For the three months ended March 31, 2021 and 2020, the dividends from financial assets designated as at fair value through profit or loss were $1,250 and $0, respectively.
c. As of December 31, 2020, the amount of $6,628 outstanding (recorded as other receiveables) for the disposal of financial assets at fair value through profit or loss had been fully received by the Group as of the review date.
d. 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 fully paid by the Group as of the review date.
e. No financial assets were pledged as collateral on March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

8. Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income: Unlisted common shares domestic Company		March 31, 2021		December 31, 2020		March 31, 2020
		$ 8,116		$ 8,104		$ 13,109

～ 18 ～

a. 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 long-term for strategic purposes.

On December 25, 2020, the consolidated subsidiary- EIC has sold all of its shares held in Skyasia Media Inc., at fair value of $24,925. The Group realized a gain of $19,910, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings with the company equity ownership.

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of March 31, 2021 and 2020. b. For credit risk and market risk; please refer to Note 33.

c. No financial assets mentioned above were pledged as collateral.

9. Notes and accounts receivable (including related parties)

Notes receivable Installment notes receivable Accounts receivable Less: Allowance for doubtful accounts Unrealized interest revenue	March 31, 2021	December 31, 2020	March 31, 2020
	$ 4,063 109,977 351,836 ( 40,081) ( 6,138) $ 419,657	$ 4,406 121,735 395,034 ( 39,803) ( 7,856) $ 473,516	$ 4,746 42,049 263,373 ( 29,605) ( 1,291) $ 279,272

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, accounts receivable 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 warehousing segment was determined as follows:

	March 31, 2021	Loss allowance provision $ - Loss allowance provision $ -
Gross carrying amount Weighted average loss rate $ 8,198 -% December 31, 2020

Gross carrying amount $ 11,148	Weighted average loss rate - % March 31, 2020

Gross carrying amount $ 4,058	Weighted average loss rate	Loss allowance provision
	- %	$ -

～ 19 ～

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

March 31, 2021

Gross carrying amount Weighted average loss rate $ 10,603 - % 1,905 100.00 % $ 12,508 December 31, 2020	Gross carrying amount Weighted average loss rate $ 10,603 - % 1,905 100.00 % $ 12,508 December 31, 2020	Loss allowance provision $ - 1,905 $ 1,905 Loss allowance provision $ - 438 $ 438

Gross carrying amount $ 8,693 438 $ 9,131	Weighted average loss rate - % 100.00 % March 31, 2020

	Weighted average loss rate - % 100.00 %	Loss allowance provision
		$ - 427 $ 427

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

	March 31, 2021
Gross carrying amount $ 265,231 7,193 1,847 10 1,456 $ 275,737	Weighted average loss rate 0.00~0.23 % 0.00~11.51 % 0.00~30.89 % 0.00~79.63 % 100.00 % December 31, 2020	Loss allowance provision
		$ 618 827 571 8 1,456 $ 3,480
Gross carrying amount $ 306,160 4,290 2,715 - 1,393 $ 314,558	Weighted average loss rate 0.00~0.24 % 0.00~12.08 % 0.00~32.34 % 0.00~78.62% 100.00 %	Loss allowance provision
		$ 747 518 878 - 1,393 $ 3,536

～ 20 ～

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due			March 31, 2020
		Gross carrying amount $ 175,250 8,424 2,713 1,500 3,524 $ 191,411	Weighted average loss rate 0.21 % 10.93 % 27.99 % 64.88 % 100.00 %		Loss allowance provision
					$ 365 921 759 973 3,524 $ 6,542

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

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due			March 31, 2021
		Gross carrying amount $ 129,143 206 90 321 691 $ 130,451	Weighted average loss rate 0.03~ 1.19% 4.76~25.40% 4.76~39.01% 4.76~76.92% 100.00 %		Loss allowance provision (Note)
					$ 788 30 36 248 691 $ 1,793

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due			December 31, 2020
		Gross carrying amount $ 144,836 85 136 135 446 $ 145,638	Weighted average loss rate 0.03~1.25% 5.00~26.27% 5.00~34.89% 5.00~75.26% 100.00%		Loss allowance provision (Note)
					$ 867 9 48 102 446 $ 1,472

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due			March 31, 2020
		Gross carrying amount $ 61,139 2,505 8,389 139 662 $ 72,834	Weighted average loss rate 0.00~1.98% 0.00~58.78% 0.00~83.80% 2.00~100.00% 100.00%		Loss allowance provision (Note)
					$ 391 544 1,568 139 662 $ 3,304

Note: As of March 31, 2021, December 31, 2020, and March 31, 2020, the receivables amounted to $32,844, $32,844, and $24,254 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.

～ 21 ～

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

Balance on January 1 Recognition of impairment losses Balance onMarch31		For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
		2021		2020
		$ 39,803 278 $ 40,081		$ 29,563 42 $ 29,605

No financial assets mentioned above were pledged as collateral.

10. Other receivables and other notes receivable (including related parties)

Other accounts receivable—loans to associates Other accounts receivable—others Less: Loss allowance		March 31, 2021		December 31, 2020		March 31, 2020
	(	$ 30,000 68,651 1,817) $ 96,834		$ 30,000 72,705 ( 1,697) $ 101,008		$ 150,000 39,942 ( 1,697) $ 188,245

As of March 31, 2021, December 31, 2020, and March 31, 2020, 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, 2021		December 31, 2020		March 31, 2020
		$ - 29 $ 29		$ - 120 $ 120		$ 1,609 143 $ 1,752

a. The overdue receivables amounted $0, $0, and $334,271 on March 31, 2021, December 31, 2020, and March 31, 2020, respectively. Therefore, the Group had recognized the allowance for doubtful accounts for all of its overdue receivables.
b. For credit risk and market risk; please refer to Note 33.

11. Inventories

Inventories
Goods held for sale Spare programs Raw materials and others (including fuel)		March 31, 2021		December 31, 2020		March 31, 2020
		$ 302,949 - 26,805 $ 329,754		$ 313,012 5,851 28,046 $ 346,909		$ 244,108 - 28,218 $ 272,326

a. For the three months ended March 31, 2021 and 2020, due to fluctuations in international oil prices and the increase in the net realizable value of inventories, the loss on inventory valuation loss the Group recognized was $471, and $0, respectively.
b. No inventories were pledged as collateral on March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

12. Non-current assets held for sale (or discontinued operations)

a. Within a year’s time, the Group expected to dispose all of its shares in its fully owned subsidiaries, Eastern Biotechnology (Shanghai), wherein the disposal is to be recognized as non-current assets held for sale (or discontinued operation). The disposal of Eastern Biotechnology (Shanghai) has been completed on January 20, 2020.
b. No non-current assets held for sale were pledged as collateral.
c. For the registration of share transfer; please refer to Note 16.

～ 22 ～

13. Investments accounted for using equity method

a. 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 (Natural Beauty) Eastern Home Shopping & Leisure Co., Ltd (EHS) EHK E&S Co., Ltd. Jiangsu Sen Fu Da Media Technology Co., Ltd.		March 31, 2021		December 31, 2020		March 31, 2020
		$ 1,948,460 597,065 - - $ 2,545,525		$ 1,951,807 491,228 - - $ 2,443,035		$ 2,009,759 459,505 24,914 5,896 $ 2,500,074

b. Affiliates which are material to the Group consisted of the following:

Affiliate Name	Within the Group Nature of Relationship	Main operating location	Proportion of shareholding and voting rights March 31, 2021 December 31,2020 March 31, 2020	Proportion of shareholding and voting rights March 31, 2021 December 31,2020 March 31, 2020
			March 31, 2021 December 31,2020
Natural Beauty EHS	Sales of beauty and cosmetic products and providing beauty service Wholesale and retail of various commodities, materials and equipment	Taiwan and China Taiwan, Hong Kong and China	30.00% 30.00% 25.87% 25.87 %	30.00% 25.87%

(a) Natural Beauty Bio-Technology Limited

Natural Beauty Bio-Technology Limited (“Natural Beauty”) was one of the listing companies in Hong Kong Exchanges and Clearing Limited (“Hong Kong Exchange”). Its fair value is as follows:

Fair value		March 31, 2021	December 31, 2020	December 31, 2020		March 31, 2020
		$ 1,498,929		$ 1,433,971		$ 1,521,812

The Audit Committee of Natural Beauty received a letter from its CPA in March, 2020, requesting it to hire an independent forensic accounting firm to investigate some items such as sales revenue and account receivables collection in the 2019 financial statements. Due to the wide-ranging content of the investigation, Natural Beauty applied for a temporary suspension of trading on the Hong Kong Exchange starting at 9 am on March 25, 2020. Natural Beauty fulfilled all the resumption conditions instructed by the Hong Kong Exchange on February 10, 2021, and resumed trading on February 11, 2021. The fair value of Natural Beauty on March 31 and December 31, 2020 is calculated based on the suspension price on March 25, 2020.

Moreover, the forensic report of the forensic accounting firm was sent to the Audit Committee of Natural Beauty for confirmation on July 6, 2020. The Audit Committee believed that the forensic accountant had completed all the work required by the CPA and stated that there was no irregularity in the accounting of Natural Beauty. However, the CPA was not completely satisfied with the conclusion of the forensic accountant and requested further investigation. However, after the Natural Beauty Audit Committee and the Board of Directors

～ 23 ～

reviewed the investigation report of the forensic accountants, they found its conclusions to be quite complete and there is no need for further investigation. The response to the CPA opinion was announced on July 27, 2020. The appointment of the CPA was to be terminated on July 31, 2020. On August 14, 2020, Natural Beauty had completed the appointment of a successor CPA, the appointment of a successor CPA issued 2019 financial statements on November 20, 2020.

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

March 31, 2021 December 31, 2020 March 31, 2020 Current assets $ 1,430,967 $ 1,470,963 $ 1,227,522 Non-current assets 1,612,348 1,584,864 1,593,963 Liabilities ( 784,788) ( 810,784) ( 652,262) Net assets $ 2,258,527 $ 2,245,043 $ 2,169,223 Net assets attributable to investee $ 2,258,527 $ 2,245,043 $ 2,169,223 Three Months Ended March 31 2021 2020 Operating revenue $ 372,617 $ 183,954 Net income $ 24,950 ( $ 58,918 ) Other comprehensive income 9,689 ( 49,647) Total comprehensive income $ 34,639 ( $ 108,565 ) Comprehensive income (loss) attributable to investee $ 34,639 ( $ 108,565 ) Three Months Ended March 31 2021 2020 Share of net assets attributable to the Group on January 1 $ 673,513 $ 674,957 Comprehensive income (loss) attributable to the Group 10,392 ( 32,570 ) Effect of exchange rate fluctuations ( 6,347) 8,380 Share of net assets attributable to the Group on March 31 677,558 650,767 Add: Goodwill 314,558 333,305 Trademark 284,286 301,228 Property, plant and equipment 490,502 507,697 Other intangible assets in useful life(ie. Membership and patent etc.) 191,850 227,673 Effect of exchange rate changes ( 7 ) ( 11 ) Less: adjustment for inventories ( 10,287) ( 10,900) Book value of net assets attributable to the Group on March 31 $ 1,948,460 $ 2,009,759		March 31, 2021		December 31, 2020		March 31, 2020

～ 24 ～

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

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

March 31, 2021 December 31, 2020 March 31, 2020 Current assets $ 5,343,345 $ 5,459,802 $ 3,865,704 Non-current assets 6,890,848 6,614,712 6,451,198 Liabilities ( 9,622,932) ( 9,882,194) ( 8,269,873) Net assets $ 2,611,261 $ 2,192,320 $ 2,047,029 Non-controlling interests, attributable to investee $ 303,178 $ 293,369 $ 270,714 Net assets attributable to investee $ 2,308,083 $ 1,898,951 $ 1,766,315 Three Months Ended March 31 2021 2020 Operating revenue $ 6,620,218 $ 5,354,123 Net income $ 419,400 $ 243,645 Other comprehensive income ( 552) 9,474 Total comprehensive income $ 418,848 $ 253,119 Comprehensive income (loss) attributable to non controlling interests $ 9,717 $ 157 Comprehensive income (loss) attributable to non controlling investee $ 409,131 $ 252,962 Share of net assets attributable to the Group on January 1 $ 491,228 $ 394,067 Comprehensive income attributable to the Group 105,837 65,438 Share of net assets attributable to the Group on March 31 $ 597,065 $ 459,505	March 31, 2021 December 31, 2020 March 31, 2020 Current assets $ 5,343,345 $ 5,459,802 $ 3,865,704 Non-current assets 6,890,848 6,614,712 6,451,198 Liabilities ( 9,622,932) ( 9,882,194) ( 8,269,873) Net assets $ 2,611,261 $ 2,192,320 $ 2,047,029 Non-controlling interests, attributable to investee $ 303,178 $ 293,369 $ 270,714 Net assets attributable to investee $ 2,308,083 $ 1,898,951 $ 1,766,315 Three Months Ended March 31 2021 2020 Operating revenue $ 6,620,218 $ 5,354,123 Net income $ 419,400 $ 243,645 Other comprehensive income ( 552) 9,474 Total comprehensive income $ 418,848 $ 253,119 Comprehensive income (loss) attributable to non controlling interests $ 9,717 $ 157 Comprehensive income (loss) attributable to non controlling investee $ 409,131 $ 252,962 Share of net assets attributable to the Group on January 1 $ 491,228 $ 394,067 Comprehensive income attributable to the Group 105,837 65,438 Share of net assets attributable to the Group on March 31 $ 597,065 $ 459,505	March 31, 2021 December 31, 2020 March 31, 2020 Current assets $ 5,343,345 $ 5,459,802 $ 3,865,704 Non-current assets 6,890,848 6,614,712 6,451,198 Liabilities ( 9,622,932) ( 9,882,194) ( 8,269,873) Net assets $ 2,611,261 $ 2,192,320 $ 2,047,029 Non-controlling interests, attributable to investee $ 303,178 $ 293,369 $ 270,714 Net assets attributable to investee $ 2,308,083 $ 1,898,951 $ 1,766,315 Three Months Ended March 31 2021 2020 Operating revenue $ 6,620,218 $ 5,354,123 Net income $ 419,400 $ 243,645 Other comprehensive income ( 552) 9,474 Total comprehensive income $ 418,848 $ 253,119 Comprehensive income (loss) attributable to non controlling interests $ 9,717 $ 157 Comprehensive income (loss) attributable to non controlling investee $ 409,131 $ 252,962 Share of net assets attributable to the Group on January 1 $ 491,228 $ 394,067 Comprehensive income attributable to the Group 105,837 65,438 Share of net assets attributable to the Group on March 31 $ 597,065 $ 459,505	March 31, 2021 December 31, 2020 March 31, 2020 Current assets $ 5,343,345 $ 5,459,802 $ 3,865,704 Non-current assets 6,890,848 6,614,712 6,451,198 Liabilities ( 9,622,932) ( 9,882,194) ( 8,269,873) Net assets $ 2,611,261 $ 2,192,320 $ 2,047,029 Non-controlling interests, attributable to investee $ 303,178 $ 293,369 $ 270,714 Net assets attributable to investee $ 2,308,083 $ 1,898,951 $ 1,766,315 Three Months Ended March 31 2021 2020 Operating revenue $ 6,620,218 $ 5,354,123 Net income $ 419,400 $ 243,645 Other comprehensive income ( 552) 9,474 Total comprehensive income $ 418,848 $ 253,119 Comprehensive income (loss) attributable to non controlling interests $ 9,717 $ 157 Comprehensive income (loss) attributable to non controlling investee $ 409,131 $ 252,962 Share of net assets attributable to the Group on January 1 $ 491,228 $ 394,067 Comprehensive income attributable to the Group 105,837 65,438 Share of net assets attributable to the Group on March 31 $ 597,065 $ 459,505

	2021 $ 6,620,218 $ 419,400 ( 552) $ 418,848 $ 9,717 $ 409,131 $ 491,228 105,837 $ 597,065
			$ 5,354,123 $ 243,645 9,474 $ 253,119 $ 157 $ 252,962 $ 394,067 65,438 $ 459,505

c. 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	March 31,2020
	$ 30,810

～ 25 ～

Three Months Ended March 31

Attributable to the Group: Loss from continuing operations Other comprehensive loss Total comprehensive loss		2020
	( (	$ - 1,236) $ 1,236)

d. The liquidation of Group affiliate EHK E&S Co., Ltd. was completed on June 18, 2020, and all remaining invested funds of $24,473 were recovered as of June 30, 2020, incurring an investment loss of $3,806. The investment loss of this disposal includes the amount previously recognized in other comprehensive income that may be reclassified to profit or loss.
e. The Group recognized impairment losses of $5,933 related to individually insignificant associates on December 31, 2020.
f. Please refer to Note 38 for the details of the investments accounted for using equity method pledged as collateral.
g. The unreviewed financial statements of investments for using equity method Except for EHS as of March 31, 2021 and 2020, investments were accounted for by the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

14. Acquire a subsidiary

a. On January 2, 2020, the Company’s Board of Directors resolved to invest $100,000 in Eastern Asset, with a 100% shareholding, which was registered on February 24, 2020. It participated in the cash capital increase on March 10 and June 23 of the same year. The former did not increase the capital in proportion to the shareholding ratio, with an investment amount of $230,000, thereby reducing its shareholding to 55%. All registration procedures had been completed on April 6, 2020. The latter transaction increased its capital by $165,000, and all registration procedures had been completed on July 27, 2020.
b. The consolidated subsidiary – ET New Media has decided to establish Dung sen min diau yun Co., Ltd. on June 10, 2019 after obtaining the approval from the board of directors. Dung sen min diau yun Co., Ltd. has completed the registration on September 24, 2020 with the capital of $1,000 which was 100% held by ET New Media.

15. Material non-controlling interests of subsidiaries

Non-controlling interests of subsidiaries material to the Group are as follows:

Subsidiary name	Main operating location	Percentage of non-controlling interests
		March 31, 2021 December 31, 2020 March 31, 2020
Eastern Asset	Taiwan	45.00% 45.00% 45.00%

The following information of the aforementioned subsidiaries had been prepared in accordance with the Regulations Governing the Prepartion of Financial Reports by Securities Issuers. Included in this 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

～ 26 ～

were not eliminated in this information.

The financial information of Eastern Asset was as follows:

March 31, 2021	March 31, 2021	December 31, 2020	December 31, 2020
		$ 316,719 $ 200,674 1,493,971 400,105 ( 9,195) ( 1,020) ( 901,924) - $ 899,571 $ 599,759 Three Months Ended March 31
$

	2021 $ - ( $ 666 ) - ( $ 666) ( $ 7,503 ) ( 5,690 ) ( 33,062 ) ( $ 46,255 )		2020 $ - ($ 241 ) - ($ 241 ) ($ 9,356 ) ( 400,000 ) 600,000 $ 190,644

16. Loss of control of subsidiaries

a. The Group resolved in February 2019 to dispose of all shares in the subsidiaries, Eastern Biotechnology (Shanghai); the disposal has been completed on January 20, 2020. The Group lost control over Eastern Biotechnology (Shanghai) due to the disposal. The disposition price was $778 (CNY $200). The gains on disposal of the investment were amounted $82.
b. The Group liquated its subsidiaries, Shanghai Rich on March 24, 2021, and lost control over Shanghai Rich due to the disposal.

17. Property, plant and equipment

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

Cost or deemed cost: Balance on January 1, 2021 Additions Transfers Disposals Balance on March 31, 2021 Balance on January 1, 2020 Additions Transfers Disposals Balance on March 31, 2020		Land	Buildings		Machinery and equipment	Transportation equipment Leasehold improvements Construction inprogress	Transportation equipment Leasehold improvements Construction inprogress	Transportation equipment Leasehold improvements Construction inprogress	Other equipment	Total
		$ 596,742 - - - $ 596,742 $ 508,791 87,950 - - $ 596,741	$ 1,024,477 - - - $ 1,024,477 $ 1,015,005 9,472 - - $ 1,024,477		$ 3,674 - - - $ 3,674 $ 3,674 - - - $ 3,674	$ 41,326 400 - ( 248) $ 41,478 $ 34,957 500 - ( ( 310) $ 35,147	$ 502,263 $ 11,880 90,568 ( ( 1,261) $ 603,450 $ 425,579 $ 6,992 1) ( - $ 432,570 $	163,714 23,667 134) - $187,247 400 - 266) - ( 134	$ 347,381 8,477 ( 66) ( 1,770) $ 354,022 $ 285,974 5,490 267 356) $ 291,375	$ 2,679,577 44,424 90,368 ( 3,279) $ 2,811,090 $ 2,274,380 110,404 - ( 666) $ 2,384,118

～ 27 ～

Depreciation and impairment loss: Balance on January 1, 2021 Depreciation Transfers Disposals Balance on March 31, 2021 Balance on January 1, 2020 Depreciation Disposals Balance on March 31, 2020 Carrying amounts: January 1, 2021 March 31, 2021 January 1, 2020 March 31, 2020		Land	Buildings	Machinery and equipment	Transportation equipment Leasehold improvements	Transportation equipment Leasehold improvements	Transportation equipment Leasehold improvements	Construction inprogress	Construction inprogress	Other equipment	Total
		$ 5,740 - - - $ 5,740 $ 5,740 - - $ 5,740 $ 591,002 $ 591,002 $ 503,051 $ 591,001	$ 654,298 14,532 - - $ 668,830 $ 590,188 16,274 - $ 606,462 $ 370,179 $ 355,647 $ 424,817 $ 418,015	$ 3,674 - - - $ 3,674 $ 3,674 - - $ 3,674 $ - $ - $ - $ -	$ 27,380 1,206 - ( 248) $ 28,338 $ 23,928 910 ( 310) $ 24,528 $ 13,946 $ 13,140 $ 11,029 $ 10,619		$ 105,579 18,928 - ( 258) $ 124,249 $ 52,811 14,364 - $ 67,175 $ 396,684 $ 479,201 $ 372,768 $ 365,395	$ - - - - $ - $ - - - $ - $ 163,714 $ 187,247 $ 400 $ 134		$ 213,222 14,545 ( 8) ( 1,770) $ 225,989 $ 158,743 13,206 ( 218) $ 171,731 $ 134,159 $ 128,033 $ 127,231 $ 119,644	$ 1,009,893 49,211 ( 8) ( 2,276) $ 1,056,820 $ 835,084 44,754 ( 528) $ 879,310 $ 1,669,684 $ 1,754,270 $ 1,439,296 $ 1,504,808

b. In March 2020, the Group signed a land rights contract with the Economic Development Bureau of the New Taipei City Government and the North District Office of the State-Owned Property Department of the Ministry of Finance in the form of land lease rights; and it has completed the establishment of land rights as of April 13, 2020, It is expected to be used for the construction of Eastern Media Group headquarters, The cost invested in the planning and construction is recognized under property, plant and equipment. In addition, please refer to Note 18 for the details of the lease of land rights.
c. Please refer to Note 38 for the details of the property, plant and equipment pledged as collateral.

18. Right-of-use assets

a. The cost, depreciation, and impairment loss of the land and equipment, buildings, media exhibition boards and transportation equipment of the Group were as follows:

Land and equipment Right of use asset costs: Balance on January 1, 2021 $ 5,233,445 Additions - Write off - lease modification 3 Write off - lease ending - Balance on March 31, 2021 $ 5,233,448 Balance on January 1, 2020 $ 4,109,171 Additions - Write off - lease modification (restatement) ( 2,218) Balance on March 31, 2020 (restatement) $ 4,106,953 Accumulated depreciation and impairment losses: Balance on January 1, 2021 $ 441,315 Depreciation 56,844 Write off - lease modification - Write off - lease ending - Balance on March 31, 2021 $ 498,159 Balance on January 1, 2020 $ 220,259 Depreciation (restatement) 51,231 Balance on March 31, 2020 (restatement) $ 271,490 Carrying amounts: January 1, 2021 $ 4,792,130 March 31, 2021 $ 4,735,289 January 1, 2020 $ 3,888,912 March 31, 2020 $ 3,835,463		Land and equipment	Buildings $ 1,085,759 69,624 ( 1,170 ) ( 8,581) $ 1,145,632 $ 882,233 4,679 ( 180) $ 886,732 $ 297,986 50,818 ( 132 ) ( 8,581) $ 340,091 $ 130,528 46,137 $ 176,665 $ 787,773 $ 805,541 $ 751,705 $ 710,067	Outdoor advertising boards $ 2,763,333 9,411 ( 553 ) - $ 2,772,191 $ 2,453,661 28,863 - $ 2,482,524 $ 1,136,693 174,015 - - $ 1,310,708 $ 332,115 160,461 $ 492,576 $ 1,626,640 $ 1,461,483 $ 2,121,546 $ 1,989,948		Transportation equipment $ 4,732 - - - $ 4,732 $ - 1,492 - $ 1,492 $ 598 327 - - $ 925 $ - 68 $ 68 $ 4,134 $ 3,807 $ - $ 1,424	Total
							$ 9,087,269 79,035 ( 1,720) ( 8,581) $ 9,156,003 $ 7,445,065 35,034 ( 2,398) $ 7,477,701 $ 1,876,592 282,004 ( 132) ( 8,581) $ 2,149,883 $ 682,902 257,897 $ 940,799 $ 7,210,677 $ 7,006,120 $ 6,762,163 $ 6,536,902

～ 28 ～

b. In March 2020, Group subsidiary Eastern Asset cooperated with the Economic Development Bureau of the New Taipei City Government and the North District Office of the State-owned Property Administration on the “Linkou International Media Park Investment Promotion Project” and signed a contract to establish land usage rights. The duration of the land usage rights is 50 years from the date of registration of the land usage, and the land usage was set up on April 13, 2020. During the duration of the contract, Eastern Asset shall pay rent to the North Branch of the State-owned Property Administration of the Ministry of Finance each year at a certain rate of the announced land price.

Eastern Asset also signed an investment contract with the Economic Development Bureau of New Taipei City Government in March 2020. The main contents of the contract are as follows:

(a) Development and operation period: 50 years from the date of establishment and registration of land usage rights.
(b) Development royalties: The total amount is $200,000 under the right-of-use assets account.
(c) Operating royalties: Starting from the date of operation, the actual net operating income of each base for the year is multiplied by the percentage of operating royalties contained in the contract to the net operating income to calculate the actual operating royalties payable by each base.
(d) Performance bond: The performance bond has been paid according to the contract amounting to $200,000 (under the guarantee deposits paid account).
c. The land rights obtained by Eastern Asset are expected to be used to build the headquarters of the Eastern Media Group, and the depreciation expenses of the right-of-use assets and the interest expenses of lease liabilities during the planning and construction period will be capitalized. The interest rate was at 2.75%. Details are as follows:

follows:
Right-of-use assets depreciation expense Interest expense on lease liability	For the three months ended March 31, 2021 $ 5,633 $ 6,035	For the three months ended March 31, 2020
			$ - $ -

The above accounts are listed under property, plant and equipment. Please refer to Note 17 for details.

19. Intangible assets

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

lows:
Cost: Balance on January 1, 2021 Additions Balance on March 31, 2021 Balance on January 1, 2020 Additions Balance on March 31, 2020	Goodwill $ 111,084 - $ 111,084 $ 160,379 - $ 169,139	Trademark $ 271,695 218 $ 271,913 $ 233,229 58 $ 233,287	Client rights $ 73,169 - $ 73,169 $ 69,909 - $ 69,909	Computer software	Other intangible assets	Total
				$ 53,856 399 $ 54,255 $ 42,053 3,996 $ 46,049	$ 19,290 280 $ 19,570 $ 13,008 1,668 $ 14,676	$ 529,094 897
						$ 529,991
						$ 518,578 5,722
						$ 524,300

～ 29 ～

Goodwill	Client rights	Computer software	Other intangible assets	Total
$ - - - $ - $ - - $ - $ 111,084 $ 111,084 $ 160,379 $ 160,379	$ 9,146 1,829 - $ 10,975 $ 4,254 4,953 $ 9,207 $ 64,023 $ 62,194 $ 65,655 $ 60,702	$ 27,551 2,963 31	$ 8,545 1,441 -	$ 61,760 9,056 31 $ 70,847 $ 27,744 10,450 $ 38,194 $ 467,334 $ 459,144 $ 490,834 $ 486,106
		$ 30,545	$ 9,986
			$ 3,602 1,063
		$ 20,099	$ 4,665
		$ 26,305	$ 10,745
		$ 23,710	$ 9,584
		$ 24,250	$ 9,406
		$ 25,950	$ 10,011

20. Short-term loans

Details of short-term loans of the Group were as follows:

Unsecured bank loans Secured bank loans Total Unused credit lines Interest rates	March 31,2021 $ 60,372 41,000 $ 101,372 $ 1,312,278 1.955%~3.00%	December 31,2020 $ 12,295 50,000 $ 62,295 $ 1,005,800 1.955%~2.25%	March 31,2020
			$ - 10,000 $ 10,000 $ 867,034 1.97%~2.5%

Please refer to Note 38 for the details of the related assets pledged as collateral.

21. Short-term notes and bills

Details of short-term notes and bills of the Group were as follows:

No guarantees to pay commercial promissory notes Guarantees to pay commercial promissory notes Less: discount amount Carrying amount Unused credit lines Interest rates	March 31, 2021 $ 20,000 - (21) $ 19,979 $ 30,000 2.0%	December 31, 2020 $ - - - $ - $ - -	December 31, 2020 $ - - - $ - $ - -

Please refer to Note 38 for the details of the related assets pledged as collateral.

22. Notes payable

Generated from operation Non-generated from operation Financing		March 31, 2021		December 31, 2020		March 31, 2020
		$ 17,013 49,455 $ 66,468		$ 29,877 64,727 $ 94,604		$ 33,763 - $ 33,763

Notes payable which were not generated from operation were 12 periods of repayment checks issued to the leasuring company. Since there were demands for short-term working capital of the Group, the Group signed a loan contract with leasuring company in

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September 2020. The interest rate was 3.04% in the contract. The loaning duration was lasting for one year. Among the duration, the first 11 periods amortized 70% of the principal, and the 12 period repaid the remaining 30% of the principal.

23. Long-term loans

Details, conditions, and terms of long-term loan of the Group were as follows:

March 31, 2021 Unsecured loans $ 106,500 Secured bank loans 624,700 Less: Current portion ( 166,687) Fees ( 3,239) Total $ 561,274 Duration year 110~112 Interest rates 2.01%~3.05% Unused credit lines $ 4,921,500 Please refer to Note 38 for the details of the related Long term notes and accounts payable March 31, 2021 Generated from operation $ 198,242 Less: Current portion ( 141,952) $ 56,290	March 31, 2021 Unsecured loans $ 106,500 Secured bank loans 624,700 Less: Current portion ( 166,687) Fees ( 3,239) Total $ 561,274 Duration year 110~112 Interest rates 2.01%~3.05% Unused credit lines $ 4,921,500 Please refer to Note 38 for the details of the related Long term notes and accounts payable March 31, 2021 Generated from operation $ 198,242 Less: Current portion ( 141,952) $ 56,290	March 31, 2021 Unsecured loans $ 106,500 Secured bank loans 624,700 Less: Current portion ( 166,687) Fees ( 3,239) Total $ 561,274 Duration year 110~112 Interest rates 2.01%~3.05% Unused credit lines $ 4,921,500 Please refer to Note 38 for the details of the related Long term notes and accounts payable March 31, 2021 Generated from operation $ 198,242 Less: Current portion ( 141,952) $ 56,290	December 31, 2020	December 31, 2020
	$ 198,242 141,952) $ 56,290		$ 176,890 ( 116,004) $ 60,886	$ - - $ -

24. Long term notes and accounts payable

Long term notes payable were 24 periods of repayment checks. Since there were demands for working capital of the Group, the Group signed an installment purchase contract in March 2021 and September 2020 respectively.

25. Lease liabilities

Book value of the Group’s lease liabilities were as follows:

Current Non-current	March 31, 2021 $ 1,129,257 $ 5,929,230	December 31, 2020 $ 1,174,478 $ 6,167,307	March 31, 2020
			$ 909,405
			$ 5,658,991

For the maturity analysis, please refer to Note 33.

Lease amounts recognized as 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 Covid-19 related rent concessions recognized as other income		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2021 $ 47,587 $ 4,340 $ 71,230 $ 738 $ -		2020
				$ 49,884 $ 2,620 $ 2,877 $ 353 ($ 83,557)
				(

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Lease amounts recognized in the Statements of Cash Flows were as follows:

Total cash outflow for leases		For the three months ended March 31	For the three months ended March 31
		2021 $ 484,630	2020 $ 265,197

For the three months ended March 31, 2021 and 2020, newly added lease liabilities amounted to $79,035 and $35,034 respectively, and the interest rates were 2.75%~3%. Lease period ending dates extend from June 2021 to April 2070. However, for the three months ended March 31, 2021 and 2020, the group negotiated modifications to its contracts in consideration of its operating conditions, thereby reducing lease liabilities by $1,598 and $2,398 respectively. The information on modifications of the Group’s lease contracts, please refer to Note 18 and 32.

a. Leases of land and equipment, and buildings

As of March 31, 2021, the Group leased land and buildings for its warehousing operations, office space and retail stores, and the land rights of the group headquarters. The leases of office space typically run for a period of 20 years, retail stores for 3 to 10 years, and land usage rights for 50 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.

b. Other leases

The Group leases outdoor advertising boards and transportation equipment with lease terms of three to five years. In some cases, the Group has 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 has elected not to recognize right of use assets and lease liabilities for these leases.

26. Employee benefits

a. Defined benefit plans

The Group used actuarially determined pension costs as of December 31, 2020 and 2019 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 reporting date.

The expenses regonized in profit and loss for 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
		2021 $ 251 140 $ 391		2020
				$ 277 146 $ 423

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b. Defined contribution plans

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

Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
2021 2020 $ 6,410 $ 6,190 7,236 6,467 $ 13,646 $ 12,657 Three Months Ended March 31		2020

2021 ( $ 24,947 ) - ($ 24,947)	2020
	($ 45,284 ) 317 ($ 44,967)

27. Income taxes

For the three months ended March 31, 2021 and 2020, previously unrecognized tax losses of $26,321 and $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.

28. Capital and other equity

Except for the following disclosure, there were no significant changes in capital and other equity of the Group for the three months ended March 31, 2021 and 2020. For the related information, please refer to Note VI(XXIV) of the consolidated financial statements for the year ended December 31, 2020.

a. Ordinary shares

For increasing the return on equity, on March 25, 2021, a resolution was passed in the Boardmeeting for the capital reduction with $0.5(NT$) per share, amounting to $278,395, cancelling 27,840 ordinary shares, and will be passed in the shareholders’ meeting on June 18, 2021.

b. 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% o=55f 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. If there is still surplus, and the undistributed surplus at the beginning of the same period (including adjustment of the amount of undistributed surplus), its distribution shall be the approved by the board of directors.

～ 33 ～

The Company appropriated its 2020 and 2019 earnings, which was proposed by the board of deirectors on March 25, 2021 and resolved by the shareholder’s meeting on June 29, 2020, respectively, as follows:

Legal reserve Special reserve Cash dividends		Amount 2020 2019 $ 54,042 $ 37,423 68,155 44,579 445,432 556,790		Dividend per share (NT$)	Dividend per share (NT$)
		2020 $ 54,042 68,155 445,432		2020 $ - - 0.8	2019
					$ - - 1.0

As of March 31, 2021, the dividends were 445,432 accounted as other payables. As of June 18, 2021, the 2020 earnings distribution proposal will be passed in the shareholders’ meeting. Please visit the Market Observation Post System for more information.

c. Other equity (net of tax)

Balance on January 1, 2021 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, 2021 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	Foreign currency translation differences for foreign operations ($ 292,290) ( 368) ( 1,554) - ($ 294,212) ($ 224,130) 1,179 5,432 - ($ 217,519)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total ($ 3,666) ($ 295,956) - ( 368) - ( 1,554) 6 6 ($ 3,660) ($ 297,872) ($ 3,671) ($ 227,801) - 1,179 ( 1) 5,431 ( 7) ( 7) ($ 3,679) ($ 221,198)

～ 34 ～

29. Earnings per share

The basic earnings per share and diluted earnings per shares were calculated as follows:

	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021
	Net of tax The weighted average number of ordinary shares outstanding (thousand shares) Earnings per share (NT$) $ 55,970 556,790 $ 0.10 $ 55,970 556,790 - 693 $ 55,970 557,483 $ 0.10 For the three months ended March 31, 2020		Earnings per share (NT$)
				$ 0.10 $ 0.10 31, 2020
Net of tax (Restatement) $ 128,586 $ 128,586 - $ 128,586		The weighted average number of ordinary shares outstanding (thousand shares) 556,790 556,790 721 557,511	Earnings per share (NT$) (Restatement)
				$ 0.23 $ 0.23

30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477	30. Revenue from contracts with customers a. Details of revenue For the three months ended March 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $ 475,171 $ 9,662 $ 15,871 $ 500,704 Media revenue - - 423,700 - 423,700 Loading and storage revenue 235,005 - - - 235,005 Others revenue - 50,829 17,367 15,872 84,068 $ 235,005 $ 526,000 $ 450,729 $ 31,743 $ 1,243,477
		Warehousing			Trading		Media		Others		Total
			$ - - 235,005 - $ 235,005		$ 475,171 - - 50,829 $ 526,000		$ 9,662 423,700 - 17,367 $ 450,729		$ 15,871 - - 15,872 $ 31,743		$ 500,704 423,700 235,005 84,068 $ 1,243,477

～ 35 ～

For	For	the three months ended March 31, 2020	the three months ended March 31, 2020	the three months ended March 31, 2020	the three months ended March 31, 2020	the three months ended March 31, 2020
Warehousing		Trading	Media	Others		Total
			$ - 272,663 - 12,365 $ 285,028 December 2020
				31,
	$ 4,063 109,977 351,836 ( 40,081) ( 6,138) $ 419,657 $ 28,853 5,793 $ 34,646		$ 4,406 121,735 395,034 ( 39,803) ( 7,856) $ 473,516 $ 32,912 4,527 $ 37,439		$ 4,746 42,049 263,373 ( 29,605) ( 1,291) $ 279,272 $ 14,975 8,560 $ 23,535

(a) Please refer to Note 9 for the details of accounts receivable and its impairment.

(b) 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.

31. Remuneration of employees

If the Company makes a profit during the year (referring to profit before tax minus the profit before the distribution of employee compensation), then after deducting any accumulated loss, 3.5% of the balance shall be allocated as employee compensation and the amount allocated shall be used as the current year's expense. Employees’ remuneration is based on stocks or cash, subject to a special resolution of the board of directors and reporting to the regular shareholders meeting.

The company's employee compensation for the three months ended March 31, 2021 and 2020 are respectively $1,017 and $189. 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 those periods. 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, 2020 and 2019, the Company estimated its employee remuneration amounting to $11,637 and $7,025, respectively. The amounts of

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employees’ and directors’ remuneration, as stated in the consolidated financial statements, were identical to the actual distributions amounts for the year 2020 and 2019. For further information, please refer to the Market Observation Post System.

32. Non-operating income and expenses

a. Interest income

The details of interest income of the Group were as follows:

Interest income from bank deposits Interest income from financial assets measured at amortized cost Other interest income		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2021		2020
		$ 1,144 50 6 $ 1,200		$ 4,527 140 8 $ 4,675

b. Other income

The details of other revenue of the Group were as follows:

Dividend income Rental income Other income (note)		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2021		2020
		$ 1,250 8,046 7,952 $ 17,248		$ - 6,726 85,825 $ 92,551

Note: Other income includes rent reductions of the Group due to the Covid-19 pandemic. For the three months ended March 31, 2020, the amount was $83,557. Please refer to Note 25 for details.

c. 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 loss Expected credit loss Lease modification benefits Impairment loss on non-financial assets Other income (losses)	Three Months Ended March 31	Three Months Ended March 31
	2021	2020
	($ 793) - 25,237 ( 4,098) ( 120) 10 ( 31) ( 20,399) ($ 194)	($ 108) 82 ( 12,131) ( 2,105) - - - 35,431 $ 21,169

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d. Finance costs

The Group’s finance costs were as follows:

Interest expenses – lease liabilities Interest expenses – bank loans Finance expense		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2021		2020
		$ 47,587 7,532 685 $ 55,804		$ 49,884 5,168 637 $ 55,689

33. Financial instruments

a. Credit risk
(a) Credit risk exposure

As of March 31, 2021, December 31, 2020 and March 31, 2020, the maxinum credit exposure for the Group originates from possible non-fulfillment of obligations by counterparties and from financial losses arising from financial guarantees provided by the Company, 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 $1,201,264, $1,120,682, and $562,500.
(b) 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 accounts receivable, please refer to Note 9.

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 Note IV(VII) the consolidated financial statements for the year ended December 31, 2020.)

The loss allowance provision for the three months ended March 31, 2021 and 2020 were determined as follows:

Other receivables Balance on January 1 Amounts written off Impairment losses Balance on March 31		For the three months	ended March 31 2020	ended March 31 2020
		2021 $ 1,697 - 120 $ 1,817
				$ 28,982 ( 27,285) - $ 1,697

b. 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.

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Contractual cash flows $ 861,417 20,000 1,524,623 4,669 8,983,906 $ 11,394,615 $ 914,127 1,133,384 4,756 9,310,283 $ 11,362,550 $ 423,401 20,000 861,683 7,118 7,922,803 $ 9,235,005	Within 1 year $ 287,354 20,000 1,467,683 - 1,322,857 $ 3,097,894 $ 257,570 1,071,850 - 1,374,452 $ 2,703,872 $ 112,412 20,000 861,683 - 1,094,551 $ 2,088,646	1-3 years $ 574,063 - 56,940 4,669 1,816,742 $ 2,452,414 $ 656,557 61,534 4,756 1,999,507 $ 2,722,354 $ 228,643 - - 7,118 2,092,826 $ 2,328,587	3-5 years $ - - - - 793,739 $ 793,739 $ - - - 805,839 $ 805,839 $ 82,346 - - - 928,169 $ 1,010,515	More than 5 years
				$ - - - - 5,050,568 $ 5,050,568 $ - - - 5,130,485 $ 5,130,485 $ - - - - 3,807,257 $ 3,807,257

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

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c. Exchange rate risk

(a) Exposure to exchange rate risk

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

as follows:	lows:
March 31, 2021 Foreign Currency Exchange Rate TWD Financial assets USD:TWD $ 792 28.525 $ 20,321 USD:HKD 5,479 7.772 44,200 EUR:TWD 2,672 33.48 89,468 CNY:TWD 211 4.344 915 CNY:HKD 4,036 1.184 17,491 USD:CNY 42 6.567 1,187 EUR:HKD 117 9.123 3,918 Financial liabilities USD:TWD $ 6,660 28.525 $ 189,968	March 31, 2021	December 31, 2020	March 31, 2020
	Foreign Currency Exchange Rate TWD	Foreign Currency Exchange Rate TWD	Foreign Currency Exchange Rate TWD
		$ 212 28.48 $ 6,050 5,538 7.754 44,313 2,885 35.02 101,025 202 4.377 886 4,005 1.192 17,487 42 6.507 1,196 117 9.534 4,098 $ 7,071 28.48 $ 201,392	$ 5,091 30.225 $ 153,862 5,617 7.754 168,744 1,496 33.24 49,741 740 4.255 3,150 2,020 1.096 8,578 42 7.103 1,244 117 8.527 3,892 $ - - $ -

(b) 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 each major foreign currency, had appreciated or depreciated 1% (with other factors remaining constant on the reporting date), net profit before tax would have respectively increased or decreased by $125 and $3,892 for the three months ended March 31, 2021 and 2020, 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. For the three months ended March 31, 2021 and 2020, foreign currency exchange losses (including realized and unrealized) amounted $4,098 and $2,105, respectively.

d. 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% and assuming all other variable factors remained constant, the Group’s net profit after tax would have respectively increased or decreased by $2,201 and $7,915 for the three months ended March 31, 2021 and 2020. This is mainly due to the Group’s variable rate deposit and borrowing.

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e. Other market price risk

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:

Price of securities at reporting date Increasing 3% Decreasing 3%	For the three ended March	months 31, 2021 Net income $ 6,280 $ (6,280)	For the three months ended March 31, 2020	For the three months ended March 31, 2020
	Other comprehensive income after tax $ 243 $ (243)		Other comprehensive income after tax $ 393 $ (393)	Net income
				$ 8,359 $ (8,359)

f. Fair value of financial instruments

(a) 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:

information is not required:
				Fairvalue
March 31, 2021	Book Value		Level 1	Level 2	Level 3	Total
Financial assets at fair value through
profit or loss
Non-derivative financial assets
mandatorily measured at fair value
through profit or loss	$	209,340 $ 209,340 $		- $	- $ 209,340
Financial assets at fair value through
other comprehensive income		8,116	606	-	7,510	8,116
Financial assets measured at amortised
cost
Cash and cash equivalents		1,858,488
Notes and accounts receivable
(including related parties)		419,567
Other receivables (including related
parties)		96,834
Other current financial assets		40,005
Refundable deposits		574,317
Other non-current financial assets		30,985
Financial liabilities measured at
amortised cost
Short-term borrowings		101,372
Short term borrowings bills payable		19,979
Notes and accounts payable (including		283,283
related parties)
Other payables (including related		1,032,459
parties)
Long-term borrowings (including
current portion of long-term
borrowings)		727,961
Lease liabilities (current and
non-current)		7,058,487
Long-term notes and accounts payable
(including current portion of
long-term notes and accounts
payable)		198,242
Guarantee deposits received		4,669

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December 31, 2020 Book Value	Fair value
	Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss $ 381,611 Financial assets at fair value through other comprehensive income 8,104 Financial assets measured at amortised cost Cash and cash equivalents 1,855,653 Notes and accounts receivable (including related parties) 473,516 Other receivables (including related parties) 101,008 Other current financial assets 43,934 Refundable deposits 562,689 Other non-current financial assets 33,760 Financial liabilities measured at amortised cost Short-term borrowings 62,295 Notes and accounts payable (including related parties) 310,892 Other payables (including related parties) 639,949 Long-term borrowings (including current portion of long-term borrowings) 812,511 Lease liabilities (current and non-current) 7,341,785 Long-term notes and accounts payable (including current portion of long-term notes and accounts payable) 176,890 Guarantee deposits received 4,756 March 31, 2020 Book Value	$ 381,611 $ - $ - $ 381,611 594 - 7,510 8,104 Fair value
	Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss $278,623 Financial assets at fair value through other comprehensive income 13,109 Financial assets measured at amortised cost Cash and cash equivalents 1,523,391 Notes and accounts receivable (including related parties) 279,272 Other receivables (including related parties) 188,245 Other current financial assets 174,186 Refundable deposits 483,034 Other non-current financial assets 750 Financial liabilities measured at amortised cost Short-term borrowings 10,000 Short term borrowings bills payable 19,929 Notes and accounts payable(including related parties) 181,056 Other payables(including related parties) 680,627	$ 278,623 $ - $ - $ 278,623 584 - 12,525 13,109

～ 42 ～

March 31, 2020 Book Value	Fair value
	Level 1 Level 2 Level 3 Total
Long-term borrowings (including current portion of long-term borrowings) $ 388,063 Lease liabilities (current and non-current) 6,568,396 Guarantee deposits received 7,118

(b) 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:

(b-1) Financial assets measured at amortized cost and financial liabilities 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. 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 price are available, estimates shall be used. The estimates and assumptions used in the evaluation method shall be the discounted value of cash flows to estimate the fair value.

(c-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.

(c-2) Derivative financial instruments

Derivative financial instruments are valued based on widely accepted

～ 43 ～

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.

(d) Transfers between Level 1 and Level 2

There was no transfer between Level 1 and Level 2 for the three months ended March 31, 2021 and 2020.

(e) Reconciliation of Level 3 fair values

There was no fair value through other comprehensive income recognized for the three months ended March 31, 2021 and 2020.

(f) 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 are “Financial assets at fair value through other comprehensive income.”

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 (1.60, 1.58 and 0.87 as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively) •Discount for lack of marketability (20%) •Net Asset Value	Interrelationship 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

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

The Group’s fair value measurement of financial instruments is reasonable, but using different evaluation models or evaluation parameters may result in different evaluation results. 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:

～ 44 ～

March 31, 2021	Other comprehensive income	Other comprehensive income
	Favourable	Unfavourable
	$ 145 145 $ 133 133 $ 67 67	($ 145) ( 145) ($ 133) ( 133) ($ 67) ( 67)
Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market December 31, 2020
Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market March 31, 2020
Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market

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.

34. Financial risk management

There were no significant changes in the Group’s financial risk management objectives and policies as disclosed in Note VI(XXX) of the consolidated financial statements for the year ended December 31, 2020.

35. Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2020. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2020. Please refer to Note VI(XXXI) of the consolidated financial statements for the year ended December 31, 2020 for further details.

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36. Investing and financing activities not affecting current cash flow

The Group’s investing activities which did not affect the current cash flow for the three months ended March 31, 2021 and 2020, were as follows:

Acquisition of property, plant and equipment Add: Other payables January 1 Notes payable January 1 Less: Interest and depreciation capitalization Notes payable March 31 Other payables March 31 Cash paid in this period Acquisition of intangible assets Add: Notes payable January 1 Other payables January 1 Less: Notes payable January 1 Cash paid in this period	For the three months	For the three months	ended March 31
	2021 $ 44,424 36,489 2,752 ( 11,668) ( 6,236) ( 19,087) $ 46,674 $ 897 178 14 - $ 1,089		2020
		( (	$ 110,404 23,448 - - - 11,046) $ 122,806 $ 5,722 - 2,711 1,392) $ 7,041

The Group’s financing activities which did not affect the current cash flow for the three months ended March 31, 2021 and 2020, were as follows:

Cash flows		Non cash changes Discount Amortization of financing use commitment fees	Non cash changes Discount Amortization of financing use commitment fees	Non cash changes Discount Amortization of financing use commitment fees	March 31, 2021
		Discount
($ 85,100) 20,000 ($ 65,100) Cash flows		$ - $ 550 ( 21) - ($ 21) $ 550 Non cash changes			$ 727,961 19,979
					$ 747,940
					March 31, 2020
		Discount	Amortization of financing use commitment fees
($ 18,276) - ($ 18,276)	( (	$ - 71) $ 71)		$ 550 - $ 550	$ 388,063 19,929
					$ 407,992

37. Related party transactions

a. Names and relationship with related parties

The followings are entities that have had transactions with related party during the period covered in the consolidated financial statements:

Name of related party Eastern Home Shopping & Leisure Co., Ltd. (EHS) Dongsen D'Amour SPA (Dongsen D'Amour) Natural Beauty Bio-Technology Co., Ltd. (Natural Beauty)	Relationship with the Group
	An associate An associate An associate

～ 46 ～

Name of related party Eastern New Retail Department (EIM) Co., Ltd. (ET New Retail Department) Dongsen Personal Insurance Agent Co., Ltd. Mori International Co., Ltd. (Mori Internation) Taiwan Gift Card Co. Ltd. (Taiwan Gift Card) Enlighten Innovative Transformation Co., Ltd Dongsen Non-life Insurance Agent Co. Ltd. (Dongsen Non-life Insurance) Dongsen Health Biomedical Co., Ltd. (Dongsen Health Biomedical) Eastern Realty Co., Ltd. Good pay Web Financial Technology Co., Ltd. (Good pay) Eastern E-Commerce Co., Ltd. (Eastern E-Commerce) Quantum Entertainment Production Co., Ltd. (Quantum Entertainment) Chinese Non-Store Retailer Association (Non-Store) Xing Kai Media Co., Ltd. (Xing Kai Media) EIP TV Co., Ltd. (EIP) Taiwan Information and Communication Association Chunghwa New Media Industry Development Association (Chunghwa New Media) Eastern Enterprise Development (Shanghai) Ltd. Inforcharge Co., Ltd. (Inforcharge) Fangcheng Su Taiwan Huangjue Trading Co., Ltd. (Huangjue) All Directors, Supervisors and the Group

Relationship with the Group An associate

Key management personnel Key management personnel Other related parties Other related parties Other related parties

Other related parties Other related parties Other related parties Other related parties

Other related parties Other related parties Other related parties Other related parties Other related parties

Other related parties Other related parties Other related parties Other related parties Other related parties Key management personnel general manager and vice personnel general

b. Significant transactions with related parties
(a) Sales of goods and services

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

parties were as follows:
Associates Key management personnel Other related parties	Three Months Ended March 31
	2021 $ 12,334 302 17,880 $ 30,516	2020 $ 9,074 600 6,092 $ 15,766

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.
(b) Purchase of goods
(b-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
		2021 $ 8,490 16,904 $ 25,394		2020 $ 1,566 12,223 $ 13,789

～ 47 ～

(b-2) The amount of programs production and other between the Group and related parties were as follows:

parties were as follows:
Associates Key management personnel Other related parties	Three Months Ended March 31
	2021 $ 586 7 23,159 $ 23,752	2020 $ 88 57 8,390 $ 8,535

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

Accounts	Related parties EIP Associates EHS Key management personnel Other related parties Eastern E-Commerce Key management personnel Other related parties EIP Eastern E-Commerce Associates Natural Beauty EHS	March 31, 2021 $ 47,153 1,185 10,876 315 465 11,663 - 27 76 4 - 1,872 1,775 $ 75,411	December 31, 2020 $ 54,568 1,211 13,802 315 1,532 5,713 26 46 110 1,734 47 1,547 3,882 $ 84,533	$	March 31, 2020
Notes receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables					- 440 7,501 132 1,832 53 - 3 294 2 - 79 1,592 11,928
				$

The Group took installment sale with EIP, and collecting installment notes receivable at an annual interest rate of 4.5% plus interest. In addition, the interest received by the Group was $572 and $0 for the three months ended March 31, 2021 and 2020, respectively.

～ 48 ～

(d) Payables

Accounts Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Other payables Other payables Other payables Other payables Other payables Other payables	Related parties EHS Quantum Entertainment Huangjue Other related parties Inforcharge Key management personnel Other related parties EIP Xing Kai Media EHS Associates	March 31, 2021	December 31, 2020 $ 4,084 1,977 5,148 1 273 140 306 6,377 2,756 7,049 32 $ 28,143		March 31, 2020
		$ 5,187 122 3,336 76 1,175 63 1,355 1,152 - 325 - $ 12,791			$ 935 229 1,770 2 - 30 2,173 2,620 - 228 3 $ 7,990

(e) Prepayments, advance receipts and contract liabilities

Details of advance receipts / prepayments from related parties to the Group were as follows:

Related parties	March 31, 2021	December 31, 2020	March 31, 2020
Other related parties Associates Quantum Entertainment Other related parties Associates	$ 68 8	$ 140 15 $ 155 $ 4,114 - 16 $ 4,130	$ - -
	$ 76		$ -
	$ 4,114 1,500 2		$ - 76 182 $ 258
	$ 5,616

(f) Borrowings from related parties

The amount of borrowing from related parties by the Group were as follows:

Fangcheng Su EHS	March 31, 2021 $ - 100,000 $ 100,000	December 31, 2020 $ - - $ 180,000	March 31, 2020
			$ 80,000 180,000 $ 260,000

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Interest expenses

nterest expenses
Fangcheng Su EHS	Three months ended March 31
	2021 $ - 499 $ 499	2020
		$ 782 1,304 $ 2,086

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, 2021, December 31, 2020 and March 31, 2020, the Group’ s interest payable amounted $0, $0 and $287, respectively.

(g) Endorsement / Guarantee provided

For the three months ended March 31, 2021 and 2020 the remuneration paid to related parties for providing guarantees on the loans taken out by the Group was amounted $62 and $25, respectively.

(h) Leases
(h-1)The Group rents out part of its office space and equipment to fulfill related parties’ business requirements. The rental revenues for the three months ended March 31, 2021 and 2020 were amounted $94 and $85, respectively.
(h-2) As the Group applied on the remission of short-term lease contract of IFRS 16, the rental expenses for the three months ended March 31, 2021 and 2020 were amounted $510 and $112, respectively.
(i) Acqusition of intangiable assets

Acqusition of intangiable assets
Relatedparties Associates	Three months ended March 31
	2021 $ 280	2020
		$ -

(j) Other

(j-1) For the three months ended March 31, 2021 and 2020, the Group paid operating fees to associates, key management (juridical person director), and other related parties to fulfill its business requirements were amounted $1,418 and $6,224, respectively.
(j-2) In order to follow its operating plan, the Group donated $2,000 and $3,000 to related parties in related industries for the three months ended March 31, 2021 and 2020, respectively.
(j-3) For the three months ended March 31, 2021 and 2020, the Group received non-operating revenue from related parties amounted $149 and $220, respectively.
(j-4) In January 2020, the Group sold the shares of Eastern Biotechnology (Shanghai) to EHS at the amount of $778 (CNY $200) and recognized gain on disposal of $82, the transaction price has been fully received.

～ 50 ～

c. Key management personnel compensation

For the three months ended March 31 2021 2020 $ 14,346 $ 12,802 March 31, 2021 December 31, 2020 March 31, 2020	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
		2021 14,346 $ December 31, 2020			2020
	$			$	12,802 March 31, 2020

$ 923,026 184,572 13,389 13,861 10,284 501,645 30,985 13,586 $ 1,691,348			$ 937,374 - 14,169 14,503 12,984 491,006 33,760 28,133 $ 1,531,929		$ 890,314 - 69,673 4,915 5,365 435,940 750 69,232 $ 1,476,189

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

39. Significant commitments and contingencies

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

nused standby letters of credit:
Unused standby letters of credit	March 31, 2021 $ 90,598	December 31, 2019 $ 101,604	March 31, 2020
			$ 49,445

(b) The subsidiary-MWT 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, 2021, the unused e-voucher guaranteed by the bank was $10,284.
b. Contingent liabilities were as follows:
(a)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.,

～ 51 ～

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. On February 23, 2021, the Taiwan High Court still ruled against SFIPC. However, SFIPC filed an appeal and the Supreme Court retimed to the High Court for a second trial. Currently, the arbitration process is still in progress and the results have yet to be determined.

(b) 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 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.
(c) The Company established a legal affair department and hired external counselors to handle its legal affairs. As of March 31, 2021, December 31, 2020 and March 31, 2020, all unsettled lawsuits had no impact on its financial and business operation.
c.

Unrecognized contractual commitments:

The Group’s unrecognized contractual commitments are as follows:

Total contract price Payout amount		March 31 2021 $ 616,832 $ 172,456	December 31, 2019 $ 712,178 $ 237,869		March 31 2020
					$ 91,136 $ 27,781

40. Losses Due to Major Disasters: None.

41. Subsequent Events:

The Company resolved on May 6, 2021 to dispose of the entire equity interests in the subsidiaries, MWT with the price $35,450.

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42. Other

a. A summary of current period employee benefits, depreciation, and amortization, by function, is as follows:

By function By nature	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
	2021			2020
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
Employee benefits
Salary	$ 146,954	$171,285	$ 318,239	$ 121,728	$146,410	$268,138
Health and labor insurance	15,497	16,538	32,035	13,176	12,917	26,093
Pension	6,661	7,376	14,037	6,467	6,613	13,080
Others	1,777	2,601	4,378	9,869	17,792	27,661
Depreciation expense	242,681	82,901	325,582	226,054	76,597	302,651
Amortizationexpense	3,702	5,354	9,056	2,909	7,541	10,450

b. Seasonality of operation:

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

43. Other disclosures

a. 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 for the three months ended March 31, 2021.

(a) Please refer to Table 1 for the loans to other parties.
(b) Please refer to Table 2 for the guarantees and endorsements for other parties.
(c) Please refer to Table 3 for the securities held as of March 31, 2021 (excluding investment in subsidiaries, associates and joint ventures).
(d) The individual securities acquired or disposed of at costs or prices of at least $300 million or 20% of the paid-in capital: None.
(e) Acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital: None.
(f) Disposal of individual real estate at prices of at least $300 million or 20% of the paid-in capital: None.
(g) Total purchases from or sales to related parties of at least $100 million or 20% of the paid-in capital: None.
(h) Please refer to Table 4 for the receivables from related parties of at least $100 million or 20% of the paid-in capital.
(i) Trading in derivative instruments: None.
(j) Please refer to Table 5 for the business relationships and significant intercompany transactions.
b. Information on investees Please refer to Table 6 for the information on investees for the three months ended March 31, 2021.
c. Information on investment in Mainland China
(a) Please refer to Table 7 for the relevant information such as the name and main business items of the investee company in Mainland China.
(b) Please refer to Table 7 for the limitation on investment in Mainland China
(c) Please refer to Table 7 for the significant transactions with investee companies in Mainland China.
d. Major shareholders

Please refer to Table 8 for the major shareholders for the three months ended March 31, 2021.

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44. Segment information

The Group’s operating segment information and reconciliation are as follows:

For the three months ended March 31, 2021 Revenue: Revenue from external customers Reportable segment profit or loss before tax For the three months ended March 31, 2020 Revenue: Revenue from external customers Reportable segment profit or loss before tax		Warehousing $ 235,005 $ 24,343 $ 316,645 $ 149,417	Trading $ 526,000 $ 99,982 $ 447,177 $ 85,727	Media $ 450,729 $ (82,319) $ 285,028 $ (51,743)	Tourism $ - $ (22,911) $ - $ (23,389)	Others $ 31,743 $ 6,379 $ 16,203 $ (79,267)	Total
							$ 1,243,477
							$ 25,474
							$ 1,065,053
							$ 80,745

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Loans to other parties For the three months ended March 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items)

Table 1

able	1
No.	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during theperiod	Ending balance	Actual usage amount during the period	Range of interest rates during the period %	Purposes of fund financing for the borrower (Note 1)	Transaction amount for business between twoparties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0 0 0 0 1 2 2 3 4 5 6 7	The Company `〃` `〃` `〃` EIC TKLF `〃` EILF Grand Richness (Hong Kong) GRAND SCENE TRADING (HONG KONG) Eastern Media Communicat ion (Hong Kong) FESS- Panama	ET New Media EHR MWT ET Pet ET New Media ET New Media Sunflower leisure ET New Media The Company The Company The Company The Company	Other receivables - related parties `〃` `〃` `〃` `〃` `〃` Other receivables Other receivables - related parties `〃` `〃` `〃` `〃`	Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes	$ 300,000 400,000 50,000 100,000 300,000 150,000 30,000 150,000 58,885 54,883 42,592 45,736	$ 300,000 400,000 50,000 100,000 300,000 150,000 30,000 150,000 58,885 54,883 42,592 45,736	$ 300,000 390,000 - 100,000 300,000 150,000 30,000 150,000 56,917 54,883 42,592 35,976	3 3 4 3 3 3 8 3 1 1 1 1	2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - -	Operation requirements `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	- - - - - - - - - - - -	Tucheng land mortgage	$ - - - - - - 38,108 - - - - -	$2,354,095 (Note 2) 2,354,095 (Note 2) 2,354,095 (Note 2) 2,354,095 (Note 2) 425,646 (Note 3) 34,108 (Note 4) 272,867 (Note 4) 251,039 (Note 5) 61,687 (Note 6) 76,661 (Note 7) 47,402 (Note 8) 1,979,158 (Note 9)	$3,531,143 (Note 2) 3,531,143 (Note 2) 3,531,143 (Note 2) 3,531,143 (Note 2) 638,469 (Note 3) 409,301 (Note 4) 409,301 (Note 4) 376,559 (Note 5) 123,374 (Note 6) 153,322 (Note 7) 94,804 (Note 8) 3,958,316 (Note 9)

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 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: For Grand Richness (Hong Kong), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 7: For GRAND SCENE TRADING (HONG KONG), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 8: For Eastern Media Communication (Hong Kong), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 9: For FESS-Panama, the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 10: The aforementioned intercompany transactions have been eliminated in the consolidated financial statements.

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Guarantees and endorsements for other parties For the three months ended March 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 2

No.	Name of guarantor	Counter party of guarantee and endorsement	Counter party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements / guarantees to third parties on behalf of subsidiary	Subsidiary endorsements / guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company (Note I)
0 0 0 0 0 0 0 0 0 0 1 2 3	The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company ET New Media ET Pet EIC	ET New Media EHR Eastern Asset Kaou Sin Trading Pet Kingdom Oscar MWT ET Pet TKLF EILF ET Pet ET New Media ET Pet	2 2 2 2 2 2 2 2 2 2 2 3 4	$ 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 7,183,833 (Note 3) 3,379,807 (Note 4) 588,524 (Note 5)	$ 150,000 800,000 5,875,000 5,000 15,000 170,000 30,000 1,509,063 50,000 50,000 400,000 400,000 220,000	$ 150,000 800,000 5,875,000 5,000 15,000 170,000 30,000 1,509,063 50,000 50,000 400,000 400,000 220,000	$ 90,000 350,000 - 5,000 11,500 140,000 21,000 483,764 - - - 100,000 -	$ - 13,586 - - - - - 143,808 - - - - 40,764	2.55% 13.59% 99.83% 0.08% 0.25% 2.89% 0.51% 25.64% 0.85% 0.85% ( 63.23%) 461.71% 20.67%	$ 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 23,540,952 (Note 2) 7,183,833 (Note 3) 3,379,807 (Note 4) 588,524 (Note 5)	Y Y Y Y Y Y Y Y Y Y N N N	N N N N N N N N N N N N N	N N N N N N N N N N N N N

Note 1: The relationship between the one providing endorsements/guarantees and the one receiving endorsements/guarantees is classified into seven types:
(1) The intercompany 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 total assets 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 total assets in the most recent financial statements.
Note 4: For ET Pet, the aggregate amount allows an endorsement or guarantee that does not exceed 300% of its total assets 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 total assets in the most recent financial statements.
Note 5: For EIC, the aggregate amount allows an endorsement or guarantee that does not exceed 500% of its total assets in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Company, hokding more than 90% of shares of EIC, holds more than 90% of the shares that does not exceed 500% of its total assets or 10% of the Company’s net woth in the most recent financial statements. The limit on endorsement or guarantee was determined by 500% of EIC’s total assets of 10% of the Company’s net worth whichover is lower.

～ 56 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Securities held

March 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 3

Table 3
Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Note
				Shares/Units	Carrying value	Percentage of ownership	Fair value
The Company `〃` `〃` `〃` EILF `〃` TKLF `〃` MWT Oscar	China Development Financial Holdings Phoenix New Media Co., Ltd Kaohsiung Harbor Stevedoring Co., Ltd. Leo Exploitation Co., Ltd. Formosa Plastics corporation Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan Cement Co., Ltd. Taiwan Semiconductor Manufacturing Co., Ltd. Sunny Bank COTA Commercial Bank,Ltd.	- - - - - - - - - -	Financial assets at fair value through profit or loss `〃` Non-current financial assets at fair value through other comprehensive income `〃` Financial assets at fair value through profit or loss `〃` `〃` `〃` Non-current financial assets at fair value through other comprehensive income `〃`	1 2,000 750,000 165,663 700,000 60,000 1,708,009 40,000 60,769 1,000	$ - 5 7,500 - 70,700 35,220 79,935 23,480 606 10	- % - % 15.00 % 11.43 % 0.01 % - % 0.03 % - % - % - %	$ - 5 7,500 - 70,700 35,220 79,935 23,480 606 10

～ 57 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Receivables from related parties of at least $100 million or 20% of the paid-in capital March 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 4

Table 4
Name of company	Counter party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company The Company The Company EIC EILF TKLF	ET New Media EHR ET Pet ET New Media ET New Media ET New Media	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	$ 304,494 390,336 100,124 300,430 150,370 150,370	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ - - - - - -	- - - - - -	$ 4,494 336 60,124 430 370 370	$ - - - - - -

～ 58 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Business relationships and significant intercompany transactions March 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 5

Table 5
No.	Name of company	Name of counter party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 0 0 1 2 3	The Company The Company The Company EIC EILF TKLF	ET New Media EHR ET Pet ET New Media ET New Media ET New Media	1 1 1 3 3 3	Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - relatedparties	$ 304,494 390,336 100,124 300,430 150,370 150,370	Refer to contract terms or market price Refer to contract terms or market price Refer to contract terms or market price Refer to contract terms or market price Refer to contract terms or market price Refer to contract terms or marketprice	1.91% 2.45% 0.63% 1.89% 0.95% 0.95%

Note 1 ： For the inter-company business relationship and transaction condition in the “Number” column, the labeling method is as follows:

Parent company - 0.
Subsidiaries - in sequence from 1.

Note 2 ： Relationship is classified into three types:

Parent company to subsidiary
Subsidiary to parent company
Subsidiary to subsidiary

～ 59 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Information on investees For the three months ended March 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 6

Table 6
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount			Ending balance		Net income (losses) of investee	Share of profits/ losses of investee	Note
				March 31, 2021	December 31, 2020	Shares/Units	Percentage of ownership	Carrying value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company EIC EIC EIC EIC EIC TKLF TKLF	FESS-Bermuda FESS-Panama Grand Richness (Hong Kong) EIC EILF TKLF MWT EHS ET New Media EHR Eastern Asset ET New Media EHS TKLF EILF EHR EILF EHR	Bermuda Panama Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Holding company Holding company Holding company General investing Planning and design and leasing of cable TV broadcasting system Planning and design and leasing of cable TV broadcasting system Application Service Department stores, supermarkets, online stores Advertising, online newspaper, Produce a broadcast program Management & consultancy services, leisure site management, catering business, sports training business, catering business Real estate leasing Advertising, online newspaper, Produce a broadcast program Department stores, supermarkets, online stores Planning and design and leasing of cable TV broadcasting system Planning and design and leasing of cable TV broadcasting system Management & consultancy services, leisure site management, catering business, sports training business, catering business Planning and design and leasing of cable TV broadcasting system Management & consultancy services, leisure site management, catering business, sports training business, catering business	$ 32,161 2,245,038 672,603 500,525 391,195 391,613 35,400 81,978 535,225 208,931 495,000 6,275 243,794 77,115 74,464 45,660 269,766 45,660	$ 32,161 2,245,038 672,603 500,525 391,195 391,613 35,400 81,978 535,225 208,931 495,000 6,275 243,794 77,115 74,464 45,660 269,766 45,660	600,000 71,700 16,214,616 67,641,445 40,690,330 40,847,294 510,000 6,637,500 53,522,508 20,893,086 49,500,000 627,492 19,726,660 7,597,500 7,567,500 4,566,038 27,243,000 4,566,038	100.00% 100.00% 100.00% 97.90% 53.77% 53.76% 51.00% 6.51% 89.20% 60.40% 55.00% 1.05% 19.36% 10.00% 10.00% 13.20% 36.00% 13.20%	$ 1,029 1,979,158 60,928 1,041,769 337,459 366,762 42,538 150,319 ( 564,322 ) 13,586 494,398 ( 6,616 ) 446,746 68,217 62,760 2,969 225,935 2,969	($ 606 ) ( 3,540 ) ( 704 ) 76,367 7,522 9,362 3,394 409,552 ( 96,076 ) ( 24,084 ) ( 666 ) ( 96,076 ) 409,552 9,362 7,522 ( 24,084 ) 7,522 ( 24,084 )	($ 606 ) ( 3,540 ) ( 704 ) 74,764 4,045 5,033 1,731 26,673 ( 85,704 ) ( 14,546 ) ( 366 ) Exempt from disclosure 〃〃〃〃〃〃	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associates Subsidiary Subsidiary Subsidiary Subsidiary Associates Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

(to be continued)

～ 60 ～

(continued)

(continued)
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount			Ending balance		Net income (losses) of investee	Share of profits/ losses of investee	Note
				March 31, 2021	December 31, 2020	Shares/Units	Percentage of ownership	Carrying value
EILF EILF FESS-Panama FESS-Panama FESS-Panama GSMC-cayman ET New Media ET New Media ET New Media ET New Media ET New Media ET New Media ET Pet ET Pet ET Pet	TKLF EHR GSMC-Cayman Eastern Media Communication (Hong Kong) Natural Beauty GRAND SCENE TRADING (HONG KONG) Show off Dung sen shin guang yun Dung sen dian jing yun Dung sen shin wen yun Dung sen min diau yun ET Pet Oscar Pet Kingdom Kaou Sin	Taiwan Taiwan Cayman Islands Hong Kong Cayman Islands Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Planning and design and leasing of cable TV broadcasting system Management & consultancy services, leisure site management, catering business, sports training business, catering business Holding company Holding company Investing activities Investing activities Video advertising service Audiovisual and singing, information leisure Amusement park information leisure Amusement park information leisure Consulting management, market research and opinion poll Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Pet food and supplies andproviding pet beautyservice	$ 278,342 45,660 137,363 305 2,060,871 125,153 100,000 100 100 5,000 1,000 185,000 301,202 36,836 7,941	$ 278,342 45,660 137,363 305 2,060,871 125,153 100,000 100 100 5,000 1,000 185,000 301,202 36,836 7,941	27,351,000 4,566,038 450,000 28,569,840 600,630,280 3,198,000 10,000,000 10,000 10,000 500,000 100,000 18,500,000 4,873,200 3,440,000 80,000	36.00% 13.20% 100.00% 100.00% 30.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 92.50% 80.00% 80.00% 80.00%	$ 245,581 2,969 79,495 47,361 1,948,460 76,766 4,735 3,739 31 4,067 985 80,137 336,694 45,588 10,622	$ 9,362 ( 24,084 ) 140 25 24,950 195 - 798 ( 75 ) ( 241 ) ( 2 ) ( 8,195 ) 5,836 2,122 1,003	Exempt from disclosure 〃〃〃〃〃〃〃〃〃〃〃〃〃〃	Subsidiary Subsidiary Subsidiary Subsidiary Associates Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

～ 61 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Information on investment in Mainland China For the three months ended March 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 7

1. Relevant information such as the name and main business items of the investee company in Mainland China:

Name of investee.	Main businesses and products	Total amount of paid in capital	Method of investment	Accumulated outflow of investment from Taiwan as ofJanuary 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of March 31, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book Value	Accumulated remittance of earnings in currentperiod
					Outflow	Inflow
Eastern Enterprise Development (Shanghai) Ltd Ding Kai (Shanghai) Sheng Hang (Shanghai) RICHNESS TRADING (SHANGHAI) Nanjing Yun Fu Jiangsu Sen Fu Da Shanghai Rich Shanghai Natural Beauty Fuli Cosmetics Company Limited Shanghai Natural Beauty Bio-Med Company Limited Shanghai Natural Beauty Fuli Cosmetics Company Limited	Operating international circulation logistics business Wholesale and retailing goods Wholesale and retailing goods Retail of 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. Wholesale trading Research and development of film and television technology; research and development and sales of toys, clothing; planning and implementation of cultural and artistic exchange activities Producing TV programs, wholesale Production and sale of beauty care products and provision of beauty and body care services Sales of health care products Production and sale of beauty care products and provision of beauty and body care services	$ - - - 1,089,416 45,132 43,442 564,748 434,069 93,490 1,053,341	Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8 Note 5 Note 5 Note 5	$ 932,768 350,216 185,582 1,089,416 86,260 - - - - -	- - - - - - - - - -	- - - - - - - - - -	$ 932,768 350,216 185,582 1,089,416 86,260 - - - - -	$ - - - ( 162 ) ( 8 ) - ( 22 ) ( 450 ) ( 600 ) 1,205	-% -% -% 100.00% 100.00% 34.00% -% 30.00% 30.00% 30.00%	$ - - - ( 162 ) ( 8 ) - ( 22 ) ( 135 ) ( 180 ) 362	$ - - - 4,555 4,178 - - 143,335 30,975 454,378	$ - - - - - - - - - -

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 was complete disposal of all shares on April 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 CNY $9,467 on February 1, 2018, the amount of the share is remitted back to the GRAND SCENE TRADING (HONG KONG).

Note 7: The Group indirectly invested t through Nanjing Ji Cheng on August 30, 2012.

Note 8: The Group indirectly invested through RICHNESS TRADING (SHANGHAI) on March 16, 2015. Shanghai Rich was liqudated on March 24, 2021.

Note 9: The amount in the table is translated by the spot rate on the financial reporting date and the average rate throughout the year.

(to be continued)

～ 62 ～

(continued)

Limitation on investment in Mainland China:

Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
The Company	$ 2,644,242	$ 3,846,077	$ 3,809,160

Note: The limit on investment was determined by 60% of the individual or consolidated total net worth whichover is higher.

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 three months ended March 31, 2021, please refer to “Information on significant transactions” above.

～ 63 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Major shareholders

March 31, 2021 (Experssed in Units) Table 8

jor shareholders rch 31, 2021 perssed in Units) ble 8
Shareholding Shareholders name	Shares	Percentage
E-Happy Travel Co., Ltd. Jinxin Trading Co., Ltd. Mori International Co., Ltd.	55,056,860 53,621,300 51,564,628	9.88 % 9.63% 9.26 %

～ 64 ～

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 Covid-19 related rent concessions recognized as other income		Three Months Ended March 31	Three Months Ended March 31	Three Months Ended March 31
		2021 $ 47,587 $ 4,340 $ 71,230 $ 738 $ -		2020
				$ 49,884 $ 2,620 $ 2,877 $ 353 ($ 83,557)
				(

AI assistant

EMIC — Interim / Quarterly Report 2021

52168_rns_2021-11-23_f3d63c37-1183-4255-99e1-e4c40e7fa4df.pdf

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements

With Independent Auditors’ Review Report

Table of Contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Emphasis of Matetr

KPMG

Notes to Readers

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance S heet s (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share) (Reviewed and Restatement, Not Audited)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Cotn’d) (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share) (Reviewed and Restatement, Not Audited)

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

(Please read the attached notes to the consolidated financial reports)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Expressed in Thousands of New Taiwan Dollars)

(Reviewed and Restatement, Not Audited)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

(Reviewed and Restatement, Not Audited)

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

1. Company history

2. Approval date and procedures of the consolidated financial statements

3. New standards, amendments and interpretations adopted

(b) Statements of comprehensive income

4. Summary of significant accounting policies

b. Basis of consolidation

(a) List of subsidiaries in the consolidated financial statements:

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

6.

Cash and cash equivalents

7.

Financial assets at fair value through profit or loss

8. Financial assets at fair value through other comprehensive income

9. Notes and accounts receivable (including related parties)

10.

Other receivables and other notes receivable (including related parties)

11.

Inventories

12.

Non-current assets held for sale (or discontinued operations)

13. Investments accounted for using equity method

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

Three Months Ended March 31

14. Acquire a subsidiary

15. Material non-controlling interests of subsidiaries

were not eliminated in this information.

16. Loss of control of subsidiaries

17. Property, plant and equipment

18. Right-of-use assets

19. Intangible assets

20. Short-term loans

21. Short-term notes and bills

22. Notes payable

23. Long-term loans

24. Long term notes and accounts payable

25. Lease liabilities

a. Leases of land and equipment, and buildings

b. Other leases

26. Employee benefits

a. Defined benefit plans

b. Defined contribution plans

27. Income taxes

28. Capital and other equity

b. Retained earnings

c. Other equity (net of tax)

29. Earnings per share

31. Remuneration of employees

32. Non-operating income and expenses

a. Interest income

EMIC Interim / Quarterly Report 2021