FSC - Interim / Quarterly Report 2020

Stock Code:2601

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors ' Review Report For the three Months Ended March 31, 2020 and 2019

Address: 14F., No.237, Sec. 2, Fuxing S. Rd., Da ' an Dist., Taipei City 106, Taiwan (R.O.C.) Telephone: (02)2706-9911

The independent auditors’ 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’ report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors' Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～9 9～15 15 15～51 52～54 54 55～56 56 56 56 57

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors' Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1) Company history
(2) Approval date and procedures of the consolidated financial statements
(3) New standards, amendments and interpretations adopted
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Significant commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Segment information

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Independent Auditors' Review Report

To the Board of Directors First Steamship Company Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of the First Steamship Company Ltd. and its subsidiaries of March 31, 2020 and 2019, the related consolidated statements of comprehensive income for the three months ended March 31, 2020 and 2019, as well as the changes in equity and cash flows for the three months ended March 31, 2020 and 2019, 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 Standards (“IASs”) 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 review.

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 6(g), the equity accounted investments of the First Steamship Company Ltd. and its subsidiaries in its investee companies of $ 489,806 thousand and $ 1,222,643 thousand as of March 31, 2020 and 2019. And its equity in net earnings on these investee companies of $ (1,058) thousand and $ 17,697 thousand for the three months ended March 31, 2020 and 2019, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors and audited by another auditor (please refer to other matter), based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the First Steamship Company Ltd. and its subsidiaries as of March 31, 2020 and 2019, and of its consolidated financial performance for the three months ended March 31, 2020 and 2019, as well as its consolidated cash flows for the three months ended March 31, 2020 and 2019 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IASs 34,“Interim Financial Reporting”endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not audit the financial statements of Mariner Finance Ltd., a subsidiary of the Group. Those statements were audited by another auditor, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Mariner Finance Ltd., is based solely on the report of other auditor. The financial statements of Mariner Finance Ltd. had total assets of $ 2,014,821 thousand; reflect the total assets constituting 6% of the consolidated total assets at December 31, 2019. The net operating income was $ 59,395 thousand; reflect the total operating revenues constituting 5% of the consolidated total operating revenues for the three months ended March 31, 2020.

The engagement partners on the reviews resulting in this independent auditors ' review report are Shu-Ying Chang and Li-Chen Lai.

KPMG

Taipei, Taiwan (Republic of China) May 14, 2020

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and its 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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

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.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2019 and 2018

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

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

(Expressed in Thousands of New Taiwan Dollars)

March 31, 2020 Amount % $ 3,742,594 10 113,276 - - - 907,355 3 215,857 1 - - 378,710 1 636,612 2 200,362 1 636,743 2 376,647 1	March 31, 2020 Amount % $ 3,742,594 10 113,276 - - - 907,355 3 215,857 1 - - 378,710 1 636,612 2 200,362 1 636,743 2 376,647 1	December 31, 2019 Amount % 5,149,276 14 162,866 - - - 941,101 2 228,612 1 - - 335,800 1 645,975 2 283,041 1 546,052 1 365,058 1	March 31, 2020 Amount % $ 3,765,371 10 49,985 - 9,100 - 57,289 - 1,604,576 4 1,023,044 3 34,179 - 968,694 3 999,611 3 1,298,311 4 200,591 -	December 31, 2019 Amount % 3,544,958 9 49,954 - 2,622 - 150 - 3,053,857 8 1,082,030 3 133,670 - 955,219 2 999,223 3 1,074,361 3 99,728 -	2019	March 31, 2019 Amount % 3,573,993 9 49,947 - 5,244 - 5,404 - 2,831,276 7 1,317,332 3 129,960 - 940,608 2 998,057 2 1,131,125 3 304,529 1
					%	Amount
			10,010,751 27	10,995,772 28		11,287,475 27
			1,359,733 4 3,331,224 9 49,238 - 7,903,563 22 422 - 615,926 2 13,260,106 37	1,336,572 3 3,675,728 10 49,030 - 8,232,934 22 422 - 720,549 2		2,282,379 5 4,962,159 12 71,264 - 9,365,388 23 1,637 - 950,989 2
7,208,156	21	8,657,781 23
29,900 914,038 13,349,668 9,250,069 143,766 2,119,679 868,929 388,153 626,206 850,423 237,276	- 3 36 26 - 6 2 1 2 2 1	29,900 - 909,626 2 13,578,283 36 9,614,639 25 144,009 - 2,136,205 6 877,785 2 386,227 1 790,610 2 884,894 2 259,806 1
				14,015,235 37		17,633,816 42
			23,270,857 64	25,011,007 65		28,921,291 69
			6,308,832 18 2,062,330 6 1,223,063 3 (595,252) (2) (94,491) -	6,308,832 16 1,947,686 5 1,450,781 4 (595,892) (1) - -		6,308,832 15 2,051,210 5 265,799 1 (83,387) - - -
			8,904,482 25 3,810,924 11	9,141,407 24 4,117,351 11		8,542,454 21 4,119,556 10
			12,715,406 36	13,258,758 35		12,662,010 31
28,778,107	79	29,611,984 77
			$ 35,986,263 100	38,269,765 100		41,583,301 100
$ 35986263	100	38269765 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

(Expressed in Thousands of New Taiwan Dollars , Except for Ea	rnings Per Common Share)	rnings Per Common Share)	rnings Per Common Share)	rnings Per Common Share)
4000 Operating revenues (Notes 6(w) and 7) 5000 Operating costs (Notes 6(s) and (y)) Gross profit from operations 6000 Operating expenses (Notes 6(r) , (x) and 7) 6450 Impairment loss determined in accordance with IFRS 9 (Note 6(d)) Net operating income Non-operating income and expenses: 7010 Other income(Notes 6(y)) 7020 Other gains and losses, net (Notes 6(f), (p)and (y)) 7050 Finance costs(Notes 6 (p), (r) and (y) and 7) 7060 Share of profit (loss) of associates accounted for using equity method, net(Notes 6(g)) 7900 Profit (loss) from continuing operations before tax 7950 Less: Tax expense (Note 6(t)) Profit (loss) 8300 Other comprehensive income: 8360 Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8365 Equity related to non-current assets or disposal groups classified as held for sale 8370 Share of other comprehensive income of associates accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss Total components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income, net Comprehensive income (loss) Profit (loss), attributable to: Owners of parent Non-controlling interests Comprehensive income (loss) attributable to: Owners of parent Non-controlling interests Earnings per share (Note 6(v)) Basic earnings per share (NT dollars) Diluted earnings per share(NT dollars)	For the three months ended March 30				% 100 33 67 47 1 19 1 6 (12) 1 (4) 15 5 10 11 - - - 11 11 21 6 4 10 13 8 21 0.22 0.21
	2020		% 100 43	2019
	Amount $ 1,214,806 521,906 692,900 631,599 15,906 45,395 9,033 (110,733) (202,658) (2,004) (306,362) (260,967) 24,986 (285,953) (82,841) 1,070 6,416 - (75,355) (75,355) $ (361,308) $ (227,718) (58,235) $ (285,953) $ (257,078) (104,230) $ (361,308) $ $			Amount 2,141,422 710,827 1,430,595 992,222 15,531 422,842 29,349 121,883 (257,500) 10,794 (95,474) 327,368 101,644 225,724 239,710 735 1,593 - 242,038 242,038 467,762 139,343 86,381 225,724 286,808 180,954 467,762
	$
			57 52 1
			4
			1 (9) (17) -
			(25)
			(21) 2
			(23)
			(7) - (1) -
			(6)
			(6)
	$		(29)
	$		(18) (5)
	$		(23)
	$		(21) (8)
	$		(29)
			(0.36)
		$	(0.36)

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity	Equityattributable to owners ofparent Retained earnings Total other equityinterest Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Equity related to non-current assets classified as held for sale Treasury stock Total equity attributable to owners of parent Non-controll inginterests Total equity
Share capital Common stock Capital surplus
$ 6,308,832 1,953,436 163,964 336,136 180,856 680,956 (266,508) 35,656 - 8,712,372 4,367,340 13,079,712 - - - - (554,500) (554,500) - - - (554,500) (428,738) (983,238)
6,308,832 1,953,436 163,964 336,136	(373,644) 126,456 (266,508) 35,656			- 8,157,872 3,938,602 12,096,474
- - - - - - - -	139,343 139,343 - - - 139,343 86,381 225,724 - - 146,730 735 - 147,465 94,573 242,038
- - - -	139,343 139,343 146,730 735 - 286,808 180,954 467,762
- (299) - - - 98,073 - -	- - - - - (299) - (299) - - - - - 98,073 - 98,073
$ 6,308,832 2,051,210 163,964 336,136 (234,301) 265,799 (119,778) 36,391 - 8,542,454 4,119,556 12,662,010
$ 6,308,832 1,947,686 164,604 230,852 1,055,325 1,450,781 (595,680) 29,788 - 9,141,407 4,117,351 13,258,758
- - - - (227,718) (227,718) - - - (227,718) (58,235) (285,953) - - - - - - (30,430) 1,070 - (29,360) (45,995) (75,355)
- - - - (227,718)		(227,718)	(30,430) 1,070 - (257,078)			(104,230)
- - - - - - 114,361 - - - - 283 - - -		- - -
$ 6,308,832 2,062,330 164,604 230,852 866,169 1,261,625 (626,110) 30,858 (94,491)					8,904,482 3,810,924 12,715,406

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss Net loss (gain) on financial assets or liabilities at fair value through profit or loss Interest expense Operating costs (Interest expense) Interest income Cost of share-based payments awards Share of loss (profit) of associates accounted for using equity method Loss on disposal of property, plan and equipment Impairment loss on non-financial assets (reversal of impairment loss) Variable leases payments Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: Financial assets at fair value through profit or loss, mandatorily measured at fair value Accounts receivable Other receivables Inventories Other current assets Other financial assets Changes in operating liabilities: Contract liabilities Accounts payable Other payables Other current liabilities Net defined benefit liability Total adjustments Cash outflow generated from operations Interest received Interest paid Income taxes paid Net cash flows used in operating activities	For the three months ended March 31 2020 2019 $ (260,967) 327,368 485,156 510,827 10,089 9,461 15,906 15,531 30,098 (10,386) 202,658 257,500 18,408 10,456 (9,033) (29,349) 518 - 2,004 (10,794) 404 2,740 83,813 (40,533) (167,113) -	For the three months ended March 31 2020 2019 $ (260,967) 327,368 485,156 510,827 10,089 9,461 15,906 15,531 30,098 (10,386) 202,658 257,500 18,408 10,456 (9,033) (29,349) 518 - 2,004 (10,794) 404 2,740 83,813 (40,533) (167,113) -
	2020 $ (260,967) 485,156 10,089 15,906 30,098 202,658 18,408 (9,033) 518 2,004 404 83,813 (167,113)
	672,908	715,453
	26,721 166,586 14,541 (46,556) (15,169) - 57,139 (1,434,240) (22,405) 31,585 -	(4,954) 223,670 (23,535) 6,406 31,186 (304) 231 (931,836) (369,360) (26,786) (13)
	(548,890)	(379,842)
	(809,857) 7,407 (195,406) (124,594)	(52,474) 56,260 (257,655) (126,517)
	(1,122,450)	(380,386)

7-1

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (CONT ’ D)

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) investing activities: Proceeds from disposal of financial assets at amortized cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase (decrease) in other receivables Acquisition of intangible assets Decrease in other financial assets Increase (decrease) in other non-current assets Net cash flows from (used in) investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase in short-term notes and bills payable Payments of lease liabilities Proceeds from issuing bonds Proceeds from long-term borrowings Repayments of long-term borrowings Decrease in guarantee deposits received Payments to acquire treasury shares Acquisition of ownership interests in subsidiaries Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the three months ended March 31 2020 2019 - 69,181 (60,634) (133,148) 12,065 5,456 (491) 6,205 (789) (4,457) 4,734 1,667 11,986 (1,200)	For the three months ended March 31 2020 2019 - 69,181 (60,634) (133,148) 12,065 5,456 (491) 6,205 (789) (4,457) 4,734 1,667 11,986 (1,200)
	2020 - (60,634) 12,065 (491) (789) 4,734 11,986
	(33,129)	(56,296)
	237,324 - 31 (55,608) - 653,352 (774,896) (98,251) (94,491) (88,071)	- (9,233) - (193,796) 1,542,300 147,171 (1,351,946) (23,541) - -
	(220,610)	110,955
	(30,493)	120,816
	(1,406,682) 5,149,276	(204,911) 5,468,507
	$ 3,742,594	5,263,596

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

First Steamship Company Ltd. (the “Company”) was established in October 1963 in accordance with the Company Act of the Republic of China. The Company's registered office address is located at 14F, No.237, Sec. 2, Fuxing S. Rd., Taipei City, R.O.C. The major business activities of the Company and its subsidiaries (“the Group”) are the domestic and international sea transportation and related businesses, trading of vessels and related products, providing services of financial leasing, providing business consultation services, trading of cosmetics, furnishings and etc., investments, and selling, renting, investing in construction.

(2) Approval date and procedures of the consolidated financial statements:

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

(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 following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2020.

New, Revised or Amended Standards and Interpretations Amendments to IFRS 3“Definition of a Business” Amendments to IFRS 9,IAS 39 and IFRS 7“Interest Rate Benchmark Reform” Amendments to IAS 1 and IAS 8“Definition of Material”	Effective date per IASB
	January 1, 2020 January 1, 2020 January 1, 2020

The Group assesses that the adoption of the abovementioned standards would not have any material impact on its consolidated financial statements.

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

As of the date, the following IFRSs that have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

New, Revised or Amended Standards and Interpretations 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” Amendments to IAS 1“Classification of Liabilities as Current or Non-current”	Effective date per IASB
	Effective date to be determined by IASB January 1, 2021 January 1, 2022

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Possible stakeholders for the Group were as follows:

Release Date January 23, 2020	New or Amended Standards Major revisions Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” The amendments are intended to improve the consistency of the application of the standard to assist companies in determining whether debts or other liabilities with uncertain liquidation dates should be classified as current (or if they are due within one year) or non-current on the balance sheet. The amendments also clarify the classification requirements for debts that companies may use to convert into equity.	Major revisions

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

(4) Summary of significant accounting policies:

(a) Statement of compliance

The 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 consolidated financial statements, the Chinese version shall prevail.

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 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 is the same as those in the consolidated financial statements for the year ended December 31, 2019. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2019.

(b) Basis of consolidation
(i) List of subsidiaries in the consolidated financial statements

List of subsidiaries in the consolidated financial statements include.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	March 31,	December 31,	March 31,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
First Steamship Co.,	Yee Shin Investment	General investing	100.00%	100.00%	100.00%	The company directly
Ltd.	Co., Ltd.					(indirectly) holds more than
						50% of its subsidiaries
First Steamship Co.,	Yee young Co., Ltd.	Real estate	- %	- %	100.00%	The company directly
Ltd.		development, rental				(indirectly) holds more than
		and leasing of building				50% of its subsidiaries. On July
						1, 2019, it has being merged,
						which has completed the
						registration process.
First Steamship Co.,	Royal Sunway	Real estate	55.00%	55.00%	55.00%	The company directly
Ltd.	Development Co., Ltd.	development, rental				(indirectly) holds more than
		and leasing of building				50% of its subsidiaries
First Steamship Co.,	First Steamship S.A.	International	100.00%	100.00%	100.00%	The company directly
Ltd.		transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries. 1,090
						shares were successively
						reduced in 2019.
First Steamship Co.,	Grand Ocean Retail	Investment holding	3.70%	3.70%	3.82%	The company directly
Ltd.	Group Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship Co.,	First Mariner Holding	Investment holding	100.00%	100.00%	100.00%	The company directly
Ltd.	Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship Co.,	New Urban	Investment holding	100.00%	100.00%	100.00%	The company directly
Ltd.	Investments Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
Yee Shin Investment	Grand Ocean Retail	Investment holding	4.54%	2.21%	2.29%	The company directly
Co., Ltd	Group Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
Royal Sunway	Lan Hai Engineering	Engineering	- %	- %	70.00%	The company directly
Development Co.,	Consultants Ltd.	Consultancy				(indirectly) holds more than
Ltd.						50% of its subsidiaries and it
						also disposed on July 25, 2019
First Steamship S.A.	Longevity Navigation	International	100.00%	100.00%	100.00%	The company directly
	S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Praise Maritime S.A.	International	100.00%	100.00%	100.00%	The company directly
		transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Best Steamship S.A.	International	100.00%	100.00%	100.00%	The company directly
		transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Grand Steamship S.A.	International	100.00%	100.00%	100.00%	The company directly
		transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Ahead Capital Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
		company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship S.A.	Media Assets Global	Investment holding	100.00%	100.00%	100.00%	The company directly
	Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship S.A.	Black Sea Steamship	International	100.00%	100.00%	100.00%	The company directly
	S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Ship Bulker Steamship	International	100.00%	100.00%	100.00%	The company directly
	S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	March 31,	December 31,	March 31,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
First Steamship S.A.	Nature Sources Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
		company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship S.A.	Grand Ocean Retail	Investment holding	46.83%	46.83%	48.38%	The company directly
	Group Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Steamship S.A.	Reliance Steamship	International	100.00%	100.00%	100.00%	The company directly
	S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Alliance Steamship	International	100.00%	100.00%	100.00%	The company directly
	S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Sure Success	International	100.00%	100.00%	100.00%	The company directly
	Steamship S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Heritage Riches Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
		company				(indirectly) holds more than
						50% of its subsidiaries and
						reduced 19,500 shares on April
						29, 2019.
First Steamship S.A.	Shining Steamship	International	100.00%	100.00%	100.00%	The company directly
	International S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
First Steamship S.A.	Excellent Steamship	International	100.00%	100.00%	100.00%	The company directly
	International S.A.	transportation and				(indirectly) holds more than
		shipping agency				50% of its subsidiaries
Ahead Capital Ltd.	Grand Ocean Retail	Investment holding	1.79%	1.79%	1.85%	The company directly
	Group Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Mariner	First Mariner Capital	Investment holding	100.00%	100.00%	100.00%	The company directly
Holding Ltd.	Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
First Mariner	Mariner Far East Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
Holding Ltd.		company				(indirectly) holds more than
						50% of its subsidiaries
First Mariner Capital	Mariner Capital Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
Ltd.		company				(indirectly) holds more than
						50% of its subsidiaries
First Mariner Capital	Morgan Finance Ltd.	Loan company	100.00%	100.00%	100.00%	The company directly
Ltd.						(indirectly) holds more than
						50% of its subsidiaries
First Mariner Capital	Morton Securities Ltd.	Securities and	100.00%	100.00%	100.00%	The company directly
Ltd.		Securities underwriting				(indirectly) holds more than
		company				50% of its subsidiaries
Mariner Capital Ltd.	Mariner Finance Ltd.	Automobile Finance	100.00%	100.00%	100.00%	The company directly
		leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Shanghai Youxin Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Suzhou Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Nanjing Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Nantong Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	March 31,	December 31,	March 31,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Mariner Finance	Huaian Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Hefei Youxin Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Wuhan Youxin Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Qingdao Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Weifang Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Chongqing Youren Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Fuzhou Youli Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Dongguan Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Guangzhou Youqiang	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Ningbo Youren Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Changsha Youli Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Service Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Xian Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Xiamen Youhon Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Chengdu Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Xuzhou Youhon Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Lianyungang Youren	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Service Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Jinhua Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Suqian Youcheng Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Jinan Youli Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	March 31,	December 31,	March 31,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Mariner Finance	Yancheng Youxin Car	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Leasing Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Mariner Finance	Zhongshan Youcheng	Automobile Finance	100.00%	100.00%	100.00%	The company directly
Ltd.	Car Rental Co., Ltd.	leasing company				(indirectly) holds more than
						50% of its subsidiaries
Grand Ocean Retail	Grand Citi Ltd.	Investment holding	100.00%	100.00%	100.00%	The company directly
Group Ltd.		company				(indirectly) holds more than
						50% of its subsidiaries
Grand Citi Ltd.	Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
	Department Store	furnishings, etc.				(indirectly) holds more than
	Group Ltd.					50% of its subsidiaries
Grand Ocean	Suzhou Grand Ocean	Trading of cosmetics,	- %	- %	86.67%	The company directly
Department Store	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Group Ltd.	Ltd.					50% of its subsidiaries.
						Complete liquidation
						procedures in June 2019.
Grand Ocean	Nanjing Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Department Store	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Group Ltd.	Ltd.					50% of its subsidiaries
Grand Ocean	Fuzhou Zhongcheng	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Department Store	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Group Ltd.	Department Store Co.,					50% of its subsidiaries
	Ltd.
Grand Ocean	Quanzhou Grand	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Department Store	Ocean Department	furnishings, etc.				(indirectly) holds more than
Group Ltd.	Store Co., Ltd.					50% of its subsidiaries
Grand Ocean	Shanghai Jing Xuan	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Department Store	Business Management	furnishings, etc.				(indirectly) holds more than
Group Ltd.	Co., Ltd.					50% of its subsidiaries
Grand Ocean	Fuzhou Jiaruixing	Management	- %	100.00%	100.00%	The company directly
Department Store	Commercial	consulting business,				(indirectly) holds more than
Group Ltd.	Management Co., Ltd.	and trading of				50% of its subsidiaries
		cosmetics,
		furnishings, etc.
Zayton Grand Ocean	Wuhan Zhongshan	Trading of cosmetics,	30.00%	30.00%	30.00%	The company directly
Department Store	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Co., Ltd.	Department Store Co.,					50% of its subsidiaries
	Ltd.
Nanjing Grand	Suzhou Grand Ocean	Trading of cosmetics,	- %	- %	6.66%	The company directly
Ocean Department	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Store Co., Ltd.	Ltd					50% of its subsidiaries.
						Complete liquidation
						procedures in June 2019.
Nanjing Grand	Nanjing Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Ocean Department	Department Hefei	furnishings, etc.				(indirectly) holds more than
Store Co., Ltd.	Store Co., Ltd.					50% of its subsidiaries
Nanjing Grand	Fuzhou Tiandi Grand	Trading of cosmetics,	57.13%	57.13%	- %	The company directly
Ocean Department	Ocean Department	furnishings, etc.				(indirectly) holds more than
Store Co., Ltd.	Store Co., Ltd.					50% of its subsidiaries
Fuzhou Zhongcheng	Fuzhou Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Grand Ocean	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Department Store	Ltd.					50% of its subsidiaries
Co., Ltd.
Fuzhou Zhongcheng	Fuzhou Tiandi Grand	Trading of cosmetics,	14.29%	14.29%	50.00%	The company directly
Grand Ocean	Ocean Department	furnishings, etc.				(indirectly) holds more than
Department Store	Store Co., Ltd.					50% of its subsidiaries
Co., Ltd.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	March 31,	December 31,	March 31,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Fuzhou Zhongcheng	Wuhan Zhongshan	Trading of cosmetics,	70.00%	70.00%	70.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Fuzhou Grand	Fuzhou Tiandi Grand	Trading of cosmetics,	14.29%	14.29%	50.00%	The company directly
Ocean Department	Ocean Department	furnishings, etc.				(indirectly) holds more than
Store Co., Ltd.	Store Co., Ltd.					50% of its subsidiaries
Fuzhou Zhongcheng	Fuzhou Jiaruixing	Management	100.00%	- %	- %	The company directly
Grand Ocean	Commercial	consulting business,				(indirectly) holds more than
Department Store	Management Co., Ltd.	and trading of				50% of its subsidiaries
Co., Ltd.		cosmetics,furnishings,
		etc.
Wuhan Zhongshan	Wuhan Guanggu	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Wuhan Zhongshan	Xiangtan Grand Ocean	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Department Store	Ltd.					50% of its subsidiaries. It was
Co., Ltd.						closed on December 31, 2018,
						and it was processed in the
						liquidation process.
Wuhan Zhongshan	Chongqing Guanggu	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Wuhan Zhongshan	Wuhan Longyang	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Wuhan Zhongshan	Hengyang Grand	Trading of cosmetics,	100.00%	100.00%	1.00%	The company directly
Grand Ocean	Ocean Department	furnishings, etc.				(indirectly) holds more than
Department Store	Store Co., Ltd.					50% of its subsidiaries
Co., Ltd.
Wuhan Zhongshan	Shiyan Ocean Modern	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Grand Ocean	Shopping Co., Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries
Co., Ltd.
Wuhan Guanggu	Xiangtan Grand Ocean	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Department Store	Ltd.					50% of its subsidiaries. It was
Co., Ltd.						closed on December 31, 2018,
						and it was processed in the
						liquidation process.
Wuhan Guanggu	Chongqing Guanggu	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Wuhan Guanggu	Wuhan Longyang	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Co.,					50% of its subsidiaries
Co., Ltd.	Ltd.
Wuhan Guanggu	Yichang Grand Ocean	Trading of cosmetics,	99.00%	99.00%	99.00%	The company directly
Grand Ocean	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Department Store	Ltd.					50% of its subsidiaries
Co., Ltd.
Wuhan Longyang	Yichang Grand Ocean	Trading of cosmetics,	1.00%	1.00%	1.00%	The company directly
Grand Ocean	Department Store Co.,	furnishings, etc.				(indirectly) holds more than
Department Store	Ltd.					50% of its subsidiaries
Co., Ltd.
Nanjing Grand	Fuzhou Tiandi Grand	Trading of cosmetics,	14.29%	14.29%	- %	The company directly
Ocean Department	Ocean Department	furnishings, etc.				(indirectly) holds more than
Hefei Store Co., Ltd.	Store Co., Ltd.					50% of its subsidiaries

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) List of subsidiaries which are not included in the consolidated financial statements: None.

(c) 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.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of IAS 34, Interim Financial 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 (and allocated to current and deferred taxes based on its proportionate size).

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.

(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.

In preparing the consolidated financial report, the significant judgments made by management when adopting the accounting policies of the consolidated company and the main sources of estimation uncertainty are consistent with note 5 of the 2019 consolidated financial report.

(6) Explanation of significant accounts:

Except the following explanation mentioned below, the explanation of significant accounts described in the consolidated financial statements are the same as those in the consolidated financial statements for the year ended December 31, 2019. For the related information, please refer to note 6 of the consolidated financial statements for the year ended December 31, 2019.

(a) Cash and cash equivalents

Petty cash Demand deposits Time deposits Total	March 31, 2020 $ 35,014 3,489,579 218,001 $ 3,742,594	December 31, 2019 36,544 4,900,655 212,077 5,149,276	March 31, 2019
			39,949 5,202,080 21,567 5,263,596

Please refer to note 6(z) for the sensitivity analysis and interest rate risk of the financial assets and liabilities of the Group.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Current financial assets and liabilities at fair value through profit or loss

Mandatorily measured at fair value through profit or loss： Non-derivative financial assets Shares of stock of listed companies Beneficiary certificates Total Financial liabilities held-for-trading Embedded derivatives Call and put rights of convertible bonds	March 31, 2020 $ 102,900 10,376	December 31, 2019 150,513 12,353 162,866 2,622	March 31, 2019
			154,041 12,410
	$ 113,276		166,451
	$ 9,100		5,244

(i) Please refer to note 6(z) for disclosure of credit risk and market risk of all financial instruments mentioned above.

(ii) The financial assets mentioned above had not been pledged as collateral.
(c) Financial assets measured at amortized cost—current and non-current

Corporate bonds—Skyfame Realty Holdings Ltd. Preference shares—Jiawang Assets Development Co., Ltd.	March 31, 2020 $ - 29,900 $ 29,900	December 31, 2019 - 29,900 29,900	March 31, 2019 529,932 - 529,932

(i) On June 15, 2018, the Group's Board of Directors had passed a resolution during the meeting to purchase a one-year unsecured 10% corporate bond issued by Skyfame Realty Holdings Ltd. at par value of $ 921,600 thousand (US$ 30,000 thousand). The Group assesses that the objective is to hold the asset to collect the contractual cash flows until its maturity date, and the cash flows of financial assets are solely payments of principal and interest on the principal amount outstanding; therefore, the financial asset was reported as financial asset measured at amortized cost. On January 28, 2019 and July 22, 2019, the Group's Board of Directors had agreed to Skyfame Realty Holdings Ltd. redemption US$ 12,800 thousand and US$ 17,200 thousand of unsecured corporate bond in advance. Moreover, the aforesaid amount in financing was zero, zero and $ 144,315 thousand (US$ 4,684 thousand) as of March 31, 2020, December 31, 2019 and March 31, 2019.
(ii) For credit risk, please refer to note 6(z).
(iii) The financial assets of the Group had been pledged as collateral for borrowings. Please refer to note 8

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Accounts receivables

Current Accounts receivables Less: Allowance for impairment Leases payment receivables (included operating lease) Less: Unearned interest Allowance for impairment Subtotal of current asset Non-current Leases payment receivables Less: Unearned interest Allowance for impairment Subtotal of non-current asset Total	March 31, 2020 $ 148,335 - 148,335 939,288 (139,134) (41,134) 759,020 907,355 712,670 (56,517) (29,947) 626,206 $ 1,533,561	December 31, 2019 167,306 - 167,306 946,753 (144,541) (28,417) 773,795 941,101 894,892 (76,753) (27,529) 790,610 1,731,711		March 31, 2019 262,213 - 262,213 1,037,088 (155,777) (37,657) 843,654 1,105,867 907,201 (75,775) (31,080) 800,346 1,906,213

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

1) The loss allowance provision in rental business department in China was determined as follows:

	March 31, 2020	Loss allowance provision 6,010 1,254 2,450 3,212 58,155
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 1,319,087 37,304 15,268 10,667 73,981 $ 1,456,307	0.38% 3.36% 16.05% 30.11% 78.61%
		71,081

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

December 31, 2019	December 31, 2019	Loss allowance provision 2,148 1,974 2,236 62 49,526
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 1,445,310 87,424 16,643 215 70,759 $ 1,620,351	0.15% 2.26% 13.44% 28.85% 69.99% March 31, 2019
		55,946 Loss allowance provision 2,360 2,326 2,542 6,221 55,288
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 1,510,608 88,092 16,630 18,271 79,136 $ 1,712,737	0.16% 2.64% 15.29% 34.05% 69.86%
		68,737

Note: As of March 31, 2020, December 31, 2019 and March 31, 2019 ,the Group had filed lawsuits for colleting the overdue receivables from leasing business with total amount of $ 12,887 thousand (CNY 3,020 thousand), $ 8,078 thousand (CNY 1,873 thousand) and $71,000 thousand (CNY 15,517 thousand). The Group assessed the recoverability of those overdue receivables, and recognized provision for allowance of $9,133 thousand (CNY 2,140 thousand), $ 6,281 thousand (CNY 1,457 thousand) and $ 39,694 thousand (CNY 8,675 thousand) less unearned interests and guarantee deposit.
2) The loss allowance provision in retail business department in China was determined as follows:

	March 31, 2020	Loss allowance provision -
Gross carrying amount Weighted-average loss rate $ 127,532 - December 31, 2019	Weighted-average loss rate

		Loss allowance provision -
Gross carrying amount $ 143,880	Weighted-average loss rate
	- March 31, 2019
		Loss allowance provision -
Gross carrying amount $ 214,331	Weighted-average loss rate
	-

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) The loss allowance provision in shipping business department was determined as follows:

	March 31, 2020	Loss allowance provision -
Gross carrying amount Weighted-average loss rate $ 20,803 - December 31, 2019

		Loss allowance provision -
Gross carrying amount $ 23,426	Weighted-average loss rate - March 31, 2019

		Loss allowance provision -
Gross carrying amount $ 33,121	Weighted-average loss rate -

4) The loss allowance provision in Taiwan as of was determined as follows:

	March 31, 2020	Loss allowance provision -
Gross carrying amount Weighted-average loss rate $ - - December 31, 2019

		Loss allowance provision -
Gross carrying amount $ -	Weighted-average loss rate - March 31, 2019

		Loss allowance provision -
Gross carrying amount	Weighted-average loss rate
$ 14,761	-

(ii) The movements in the allowance for accounts receivables were as follows:

Balance on January 1, 2020 and 2019 Impairment losses recognized Foreign exchange gain (loss) Balance on March 31, 2020 and 2019	For the three months ended March 31 2020 2019 $ 55,946 52,025 15,906 15,531 (771) 1,181 $ 71,081 68,737	For the three months ended March 31 2020 2019 $ 55,946 52,025 15,906 15,531 (771) 1,181 $ 71,081 68,737
	2020
	$ 55,946 15,906 (771)
	$ 71,081

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Expiration analysis of the Group lease payments to report the undiscounted lease payments to be received in the future

March 31, 2020	December 31, 2019	March 31, 2019 1,037,088 740,292 166,909 1,944,289 (231,552)
$ 939,288 504,658 208,012 1,651,958 (195,651)	946,753 613,483 281,409 1,841,645 (221,294)

$ 1,456,307	1,620,351	1,712,737

(iv) The Group and the financial institution shall sign the accounts receivable and sales contract, and the contracted company shall guarantee the receivables for all receivables that cannot be recovered (whether delayed or defaulted) within a certain period of time, and retain the accounts receivable. Almost all risks and rewards are therefore not eligible for financial assets. The carrying amounts of the transferred receivables and related financial liabilities not excluded in the reporting date are as follows:

	March 31,2020	March 31,2020
Transferred accounts receivable amount $ 118,264	Credit lines 85,334 December	Advanced amount(recognized under Short-term borrowings) 79,352 31,2019

Transferred accounts receivable amount $ 92,855	Credit lines 86,236	Advanced amount(recognized under Short-term borrowings) 67,019

(v) For credit risk information, please refer to note 6(z).
(vi) Details of the above notes receivable and accounts receivable as guarantee for bank loans and financing quota. Please refer to note 8.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(e) Other receivables

Other receivables–transfer of equity shares Other receivables–loans Other receivables–investment and guarantee deposits Other receivables–Lease deposit Other receivables–others Less: Allowance for impairment		March 31, 2020 $ - 16,149 - 62,720 136,908 - $ 215,857	December 31, 2019 - 15,824 - 63,384 149,404 - 228,612	March 31, 2019 19,022 66,346 741,252 - 103,030 (19,022) 910,628

(i) The other receivables–loans arise from the demand of short-term financing by the car rental platform, and obtain collateral when necessary. Furthermore, other receivables–others are the advance payment in accordance with the promotions held by retail business department and venders. Since the Group and the vendors are in a long-term business relationship, the Group has considered historical experience and believed that they were less doubtful of the recoverability of these receivables. The Group assessed the aforesaid other receivables as the financial assets with low credit risk and measured loss allowances at an amount as 12-month expected credit loss. Management believed that there were less doubtful of credit losses.
(ii) In 2012, the Group paid a guarantee deposit of CNY 124,000 thousand to Quanzhou Fengsheng Group to purchase the commercial real estate of the Fengsheng Junyuan Development Project developed by Fengsheng Group in Fengze District, Quanzhou. After assessing the investment value of the project, the Board of Directors of the Group resolved during the meeting in July, 2015 to invest Quanzhou Fengan Real Estate Development Co., Ltd., and expected to obtain 100% equity of the company with a contractual amount of CNY 325,000 thousand. As of December 31, 2015, the Group had paid CNY 200,000 thousand, which was reported under the prepayment for investments. The management of the Group evaluated the uncertainty of the investment and thus terminated the investment. Therefore, the original prepayment for investments of CNY 200,000 thousand and other financial assets – current of CNY 124,000 thousand, were reclassified as other receivables as of June 30, 2016.

In addition, the Group reviewed the nature of other receivables and analyzed the current financial position of the counterparty. In order to secure the aforementioned debt, the Group had acquired pledge of stock rights of Quanzhou Fengan Real Estate Development Co., Ltd., and at the same time had obtained the debtor’s promise that other investment profits to be priority to repay the debt. The Group evaluated that the aforementioned debt should have no impairment concern. Because the debtor takes time to complete the relevant legal procedures of the disposition of investment, the Group and the debtor renegotiate the repayment period, which should be before April 30, 2017, before September 30, 2017, and before December 31, 2017. The total amount of repayment should be 10%, 40% and 50%, respectively. In case of violation of the agreement, the aforementioned collateral would be transferred to the Group for debt repayment. In accordance with the aforesaid agreement, the Group was received CNY 162,000 thousand on December 31, 2017. On December 19, 2017, the Board of Directors of the Group resolved during the meeting on the Fengsheng Group's extension of the repayment agreement, which extended remaining proceeds to June 30, 2018. Due to the delay of

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

procedures of the disposition of investment, Fengsheng Group could not make the payments by 、 the aforementioned date. As of March 31, 2020 December 31, 2019 and March 31, 2019, the outstanding receivables were CNY 162,000 thousand ($ 691,205 thousand ,$ 698,512 thousand and $ 741,252 thousand) respectively. The Group acquired the deferred repayment instructions by Fullshare Holdings and promised that it will be the first one to receive funds when developing the land of Fengan and it will repay the debts; and it shall be based on the assessment report of this claim, to assess that the value of the creditor's rights without any impairment.

The Group will ensure the recovery of the aforementioned creditor's rights and the development of the Fengan land. On August 12, 2019, the Board of Directors resolved to sign a “Debt Confirmation and Repayment Plan” with Damahua Investment Co., Ltd., Quanzhou Fengsheng Group Co., Ltd. and Quanzhou Fengan Real Estate Development Co., Ltd. to agreeing to provide loans from Damahua Investment Co., Ltd. to support the development and construction of the Feng'an block and to sell it externally, and to ensure that the future sales proceeds will be repaid to the aforementioned claims. Considering the development progress of the Fengan land, the credit recovery time will be longer than one year and will be transferred to other receivables-non-current (accounting for other non-current financial assets).

In addition, the board of directors also signed the "Debt Preservation and Conditional Credit Transfer Agreement" and agreed to merge the company and Damahua Investment Co., Ltd. to comprehensively supervise the development project of the Fengan land to ensure that the future sales proceeds will be repaid to the aforementioned claims; if the relevant special circumstances in the transfer agreement occur, the aforementioned creditor's rights will be transferred to Damahua Investment Co., Ltd. at CNY 162,000 thousand. The Group shall assess the value of the creditor's rights based on creditor's rights protection measures, creditor's rights transfer agreements, etc., without any impairment.

(iii) The Group sold its 100% equity of Tong-ling Grand Ocean Department Store in December 2016. The selling price was $ 48,549 thousand (CNY 10,000 thousand). As of March 31, 2020, the transfer amount that has not yet been received is $ 19,022 thousand (CNY 4,157 thousand), and the payments should be collected by May 15, 2017 according to the contract. The Group has filed a lawsuit against the transferee company in 2018, but the recoverability of the amount was assessed and the impairment loss of $19,022 thousand (CNY 4,157 thousand) was recognized on December 31, 2018, under the expected credit loss of the statement of comprehensive income. On February 27, 2019, the court ruled in favor of the Group. In December 2019, the transferee company provided its property for payment. Thus, the Group reversed the expected credit loss amounting to CNY 4,157 thousand.
(iv) Since the rental agreement of, Xiangtan Grand Ocean Department Store Co., Ltd. (Xiangtan) one of the Group's subsidiaries, have reached its maturity in December 2018, the Group ceased Xiangtan's business operation, wherein a security deposit amounting to CNY 15,000 thousand is expected to be received. Xiangtan had already returned the property to its owner, Xiangyuan Industrial Development Co., Ltd. (Xiangyuan), but failed to receive the security deposit. In order to receive the payment and begin the liquidation process, Xiangtan filed a lawsuit against Xiangyuan. On July 1, 2019, the people's court ordered Xiangyuan to pay the amount of CNY 14,700 thousand to Xiangtan. However, Xiangyuan disagreed with the court's decision, therefore, filed an appeal on November 13, 2019, wherein it was denied on January 16, 2020. Furthermore, Xiangtan filed an appeal to the court to freeze the property of Xiangyuan, in which the court granted the approval do to so. After a thorough investigation by the court, it

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

was found that Xiangyuan has enough property to pay for the security deposit. As a result, the Group assessed that amount of $ 62,720 thousand (CNY 14,700 thousand) should have no impairment concern.

The movements in the allowance for other receivables were as follows:

Balance on January 1, 2020 and 2019 Foreign exchange losses Balance on March 31, 2020 and 2019		For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
		2020		2019
		$ - -		18,608 414 19,022
		$ -

(f) Non-current assets classified as held for sale
(i) As of March 31, 2020, December 31, 2019 and March 31, 2019, the amount of the non-current assets to be disposed of and the related interests are as follows：

March 31, 2020	December31, 2019	March 31, 2019
$ - 200,362	- 283,041 283,041 (3,237) 33,894 30,657	246,147 298,710
$ 200,362		544,857
		4,795 33,894
		38,689

As of March 31, 2020, December 31, 2019 and March 31, 2019, the non-recurring fair value measurement for the investments accounted for using equity method were measured at $ 200,362 thousand, $ 283,041 thousand and $ 298,710 thousand, based on observable inputs which are the measurement basis of the price in similar transaction or in the same industry, and their fair value are in the first level, respectively.

As of March 31, 2019, the non-recurring fair value measurement for the investment property was measured at $465,800 thousand based on observable inputs which are the measurement basis of the price in similar transaction or in the same industry, and their fair value are in the second level.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The non-current assets classified as held for sale of the Group are estimated using the market valuation technique to estimate the fair value of the non-current assets classified as held for sale, using the recent transaction price of the same or similar transactions in the market as the observable inputs.

For the three months ended March 31, 2020 and 2019, the above-mentioned non-current assets classified as held for sale were measured at a book value and fair value less than the cost of sales, and were recognized as impairment loss of $ 83,813 thousand (US$ 2,782 thousand), and reversal of impairment loss of $ 40,533 thousand (US$ 1,315 thousand).

(ii) On December 7, 2018, the board of directors of the Group resolved to sale the invested real estate, including related lands and houses; as of December 31, 2018, the amount of non-current assets classified as held for sale was $ 246,147 thousand. On March 29, 2019, the Group signed a sales contract with the non-relative Wisdom Marine International Inc. for a total contract price of $ 463,360 thousand (untaxed). The property rights transfer registration was completed in May, 2019. The relevant price has been fully collected, deducting the relevant taxes and fees and recognized the disposal gain of non-current assets classified as held for sale of $ 217,213 thousand.
(iii) On December 7, 2018, the board of directors of the Group resolved to sale the investment of —
equity method Sandmartin International Holdings Limited; it has started to conduct the related sales and is expected to complete the sales within one year, and the investment using the equity method will be reported under the non-current assets classified as held for sale. As of December 31, 2019, the aforementioned assets had not been sold due to the circumstances which were previously considered unlikely to happen. The Group had taken necessary actions in response. Now the Group is actively looking for purchaser with reasonable prices, and reasonably expects to complete the sales within one year.
(iv) The non-current assets classified as held for sale of the Group are provided as collateral guarantees. Please refer to note 8 for details.
(g) Investments accounted for using equity method

The Group's investments accounted for using the equity method at the reporting date were as follows:

Investee	March 31, 2020 $ - 214,069 - 9,401 690,568 - $ 914,038	December 31, 2019 - 215,015 - 9,643 678,892 6,076	March 31, 2019 6,893 113,543 1,215,750 - - - 1,336,186
Beijing ShouHai International Economics and Technology Consultant Service Co., Ltd. Taiwan Environment Scientific Co., Ltd. Summit Ascent Holdings Ltd. Jiawang Assets Development Co., Ltd. Da Yu Financial Holdings Limited Hainan Sanhe Licheng Business Service Co., Ltd.
		909,626

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

－
(i) Aggregation of financial information individually insignificant associates' equity

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

Carrying amount of individually insignificant associates’ equity	March 31, 2020 $ 914,038	December 31, 2019 909,626	March 31, 2019
			1,336,186

Attributable to the Group: Gain(Loss) from continuing operations Other comprehensive income Total comprehensive income	For the three months ended March 31 2020 2019 $ (2,004) 10,794 6,416 1,593 $ 4,412 12,387	For the three months ended March 31 2020 2019 $ (2,004) 10,794 6,416 1,593 $ 4,412 12,387	For the three months ended March 31 2020 2019 $ (2,004) 10,794 6,416 1,593 $ 4,412 12,387
			2019
			10,794 1,593
	$ 4,412		12,387

(ii) Guarantees

There is no guarantee in investments using equity methods of the Group.

(iii) The unreviewed financial statements of investments accounted for using equity method

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 had not been reviewed. Except for Taiwan Environment Scientific Co., Ltd. has reviewed by CPA.

(h) Material non-controlling interests of subsidiaries

The material non-controlling interests of a subsidiary were as follows:

Name ofSubsidiary	Main operation/ Percentage of non-controlling interests	Main operation/ Percentage of non-controlling interests
	place March 31, 2020 China/Cayman Islands 43.14%	December 31, 2019 March 31, 2019 45.47% 43.66%
GRAND OCEAN RETAIL GROUP LTD.

The following information of the aforementioned subsidiary has been prepared in accordance with the IFRSs endorsed by the FSC. Intra-group transactions were not eliminated in this information.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Collective financial information of Grand Ocean Retail Group Ltd.

March 31, 2020 Current assets $ 4,322,631 Non-current assets 19,930,562 Current liabilities (6,186,262) Non-current liabilities (9,391,301) Non-controlling interests - Net assets $ 8,675,630 Non-controlling interests $ 3,742,667 Sales revenue Profit Other comprehensive income Comprehensive income (loss) Profit (loss), attributable to non-controlling interests Comprehensive income (loss), attributable to non-controlling interests Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Effect of exchange rate changes Net decrease in cash and cash equivalents	December 31, 2019 March 31, 2019 5,680,778 6,566,401 20,537,955 21,300,076 (7,401,648) (6,710,246) (9,913,540) (11,889,545) - 522 8,903,545 9,267,208 4,048,441 4,046,063 For the three months ended March 31 2020 2019 $ 885,613 1,779,679 $ (126,996) 202,171 (101,437) 216,608 $ (228,433) 418,779 $ (57,584) 87,799 $ (103,579) 182,374 For the three months ended March 31 2020 2019 $ (1,414,192) (321,150) (50,525) (134,119) 109,386 (393,936) (31,830) 107,967 $ (1,387,132) (741,238)	March 31, 2019
	2020 $ (1,414,192) (50,525) 109,386 (31,830) $ (1,387,132)

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

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

Land $ 126,409 - - - - -	Buildings 3,689,371 - - - - (37,815)	Transportation equipment 132,536 11,278 9,408 - (16,493) (1,244)	Vessels 7,982,851 - - - - 39,808	Leasehold Improvement 6,574,410 12,313 - 28,691 (4,600) (68,995)	Total 19,709,536 36,713 9,408 - (23,077) (80,480)
$ 126,409	3,651,556	135,485	8,022,659	6,541,819	19,652,100
$ 126,409 - - - -	3,795,849 - 21,707 - 83,284	118,527 39,946 - (19,419) 2,485 141,539	8,152,699 - - - 23,885	7,485,417 42,057 72,965 (360,871) 165,837	20,129,530 133,148 - (418,128) 284,744
$ 126,409	3,900,840		8,176,584	7,405,405	20,129,294
$ - - - -	485,856 22,811 - (5,081)	54,856 6,322 (4,218) (460)	1,872,310 82,006 - 9,609	3,545,675 100,410 (4,600) (38,026) 3,603,459	6,131,253 217,461 (10,608) (35,674)
$ -	503,586	56,500	1,963,925		6,302,432
$ - - - -	398,011 23,735 - 8,409	71,629 5,390 (13,009) 1,456	1,577,649 83,911 - 4,580	4,416,711 109,624 (356,456) 97,617	6,702,024 229,368 (409,932) 117,174 6,638,634
$ -	430,155	65,466 77,680	1,666,140	4,267,496 3,028,735 2,938,360 3,068,706 3,137,909
$ 126,409 $ 126,409 $ 126,409 $ 126,409	3,203,515		6,100,541		13,578,283
	3,147,970	78,985	6,058,734		13,349,668
	3,397,838	46,898	6,575,050		13,427,506
	3,470,685	76,073	6,510,444		13,490,660

(i) As of March 31, 2020, December 31, 2019 and March 31, 2019, due to payments to stores maintenance and to acquire the property for department stores, the Group recognized other payables amounting to $235,232 thousand, $261,609 thousand and $278,877 thousand, respectively, and accounting for other payables

(ii) The property, plant and equipment of the Group had been pledged as collateral for bank borrowings. Please refer to note 8.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(j) Right-of-use assets

The cost and depreciation of the land, building, machine and transportation equipment of the Group were as follows ：

Cost`：` Balance at January 1, 2020 Addition Effect of change in foreign exchange rates Balance at March 31, 2020 Balance at January 1, 2019 Addition Effect of change in foreign exchange rates Balance at March 31, 2019 Depreciation`：` Balance at January 1, 2020 Depreciation Effect of change in foreign exchange rates Balance at March 31, 2020 Balance at January 1, 2019 Depreciation Effect of change in foreign exchange rates Balance at March 31, 2019 Carrying amounts:`：` Balance at January 1, 2020 Balance at March 31, 2020 Balance at January 1, 2019 Balance at March 31, 2019		Land		Buildings	Machine and transportation equipment	Machine and transportation equipment	Total 10,695,560 149 (111,432) 10,584,277 10,981,529 480 243,814 11,225,823 1,080,921 267,452 (14,165) 1,334,208 - 281,216 412 281,628 9,614,639 9,250,069 10,981,529 10,944,195
		$ 3,254,497 - (34,043) $ 3,220,454 $ 3,378,465 - 75,165 $ 3,453,630 $ 95,625 23,936 (1,280) $ 118,281 $ - 25,331 38 $25,369 $ 3,158,872 $ 3,102,173 $ 3,378,465 $ 3,428,261		7,381,322 149 (76,782) 7,304,689 7,547,100 480 167,425 7,715,005 977,621 241,437 (12,791) 1,206,267 - 254,110 372 254,482 6,403,701 6,098,422 7,547,100 7,460,523		59,741 - (607) 59,134 55,964 - 1,224 57,188 7,675 2,079 (94) 9,660 - 1,775 2 1,777 52,066 49,474 55,964 55,411

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Investment properties

Owned	property	Total 166,020
Land and improvement	Buildings
$ 115,769	50,251 50,251 50,251 50,251 22,011 243 22,254 21,038 243 21,281 28,240 27,997 29,213 28,970
$ 115,769		166,020
$ 115,769		166,020
$ 115,769		166,020
$ - -		22,011 243
$ -		22,254
$ - -		21,038 243
$ -		21,281
$ 115,769		144,009
$ 115,769		143,766
$ 115,769		144,982
$ 115,769		144,739

(i) The fair value of the investment property was not significantly different from those disclosed in the Note 6 (l) of the annual consolidated financial statements for the year ended December 31, 2019.
(ii) The investment properties of the Group had been pledged as collateral for bank borrowings; please refer to note 8.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(l) Intangible assets

The costs, amortization, and impairment loss of intangible assets were as follows:

Cost: Balance at January 1, 2020 Additions－parent company only Disposal Effect of change in foreign exchange rates Balance at March 31, 2020 Balance at January 1, 2019 Additions－parent company only Effect of change in foreign exchange rates Balance at March 31, 2019 Accumulated amortization and impairment loss: Balance at January 1, 2020 Amortization Disposal Effect of change in foreign exchange rates Balance at March 31, 2020 Balance at January 1, 2019 Amortization Effect of change in foreign exchange rates Balance at March 31, 2019 Carrying amounts: Balance at January 1, 2020 Balance at March 31, 2020 Balance at January 1, 2019 Balance at March 31, 2019	Goodwill	Trademark 421,604 - - 2,103 423,707 430,575 - 1,261 431,836 - - - - - - - - - 421,604 423,707 430,575 431,836	License Plate 361,639 - - (3,783) 357,856 375,927 - 8,364 384,291 5,050 - - (52) 4,998 5,242 - 117 5,359 356,589 352,858 370,685 378,932		Other 75,072 789 (36,151) (299) 39,411 80,545 4,457 1,705 86,707 56,371 1,489 (36,151) (111) 21,598 58,710 1,836 1,214 61,760 18,701 17,813 21,835 24,947	Total 2,203,812 789 (36,151) (15,957) 2,152,493 2,283,692 4,457 42,281 2,330,430 67,607 1,489 (36,151) (131) 32,814 70,270 1,836 1,350 73,456 2,136,205 2,119,679 2,213,422 2,256,974
	$ 1,345,497 - - (13,978)
	$ 1,331,519
	$ 1,396,645 - 30,951
	$ 1,427,596
	$ 6,186 - - 32
	$ 6,218
	$ 6,318 - 19
	$ 6,337
	$ 1,339,311
	$ 1,325,301 $ 1,390,327

	$ 1,421,259

Due to the epidemic of COVID-19, each store of the Group had been temporarily closed in the first quarter of 2020, and it gradually resumed operation in the middle of February. Although the key assumptions used by the Group in evaluating department store retail and license plate cash-generating units were slightly revised down, there was no significant change in the recoverable amount of the overall cash-generating unit and there were no significant differences in fair value. Please refer to Note 6 (m) of the annual consolidated financial statements for the year ended December 31, 2019.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

－ (m) Other financial assets current and non-current

Other financial assets－current Deposits－out for lease Restricted deposits Deposits－ready to transaction Others Other financial assets－non-current Deposits－out for lease Restricted deposits Investment and guarantee deposits Others Time deposits	March 31, 2020 $ 24,708 522,533 82,614 6,888 $ 636,743 $ 137,948 - 691,205 21,270 $ 850,423	December 31, 2019 3,269 528,539 12,396 1,848 546,052 163,533 - 698,512 22,849 884,894	March 31, 2019 72,557 298,596 209,973 1,808
			582,934
			174,281 255,084 - 32,479
			461,844

As of March 31, 2020, December 31, 2019 and March 31, 2019, the Group has collected receipts in advance for securities brokerage business, amounting to $ 82,614 thousand, $ 12,396 thousand and $ 209,973 thousand, respectively. The receipts in advance are reported as other current liabilities.

(n) Short-term borrowings

Unsecured bank loans Secured bank loans Other unsecured loans Other secured loans Total Unused credit lines Range of interest rates	March 31, 2020 $ 1,731,854 1,899,453 - 134,064 $ 3,765,371 $ 357,795 1.62%~9.5%	December 31, 2019 1,539,979 1,847,308 - 157,671 3,544,958 831,072 1.5%~9.5%	March 31, 2019 1,355,804 1,691,651 526,538 - 3,573,993 954,453 1.5%~7%

For the collateral of short-term borrowings, please refer to note 8.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(o) Long-term borrowings

The list, terms and conditions of long-term borrowings of the Group were as follows:

Secured bank loans Unsecured bank loans Other secured loans Less: current portion Total Unused credit lines Range of interest rates	March 31, 2020 $ 2,886,539 1,528,109 214,887 (1,298,311) $ 3,331,224 $ 2,216,413 1.76%~15.60%	December 31, 2019 2,905,409 1,643,876 200,804 (1,074,361) 3,675,728 2,138,066 1.77%~15.60%	March 31, 2019
			3,568,181 2,525,103 - (1,131,125) 4,962,159 2,661,578 1.35%~5.35%

(i) Lending and repayment of loans

For the three months ended March 31, 2020 and 2019, the Group proceeded from long-term borrowings amounting to $ 653,352 thousand and $ 147,171 thousand, respectively and the repayment amounted to $ 774,896 thousand and $ 1,351,946 thousand, respectively.

(ii) Collateral of bank loans

For the collateral of long term borrowings, please refer to note 8.

(p) Bonds payable

The information of bonds of the Group were as follows:

Total ordinary bonds issued Total convertible bonds issued Less: Current portion	March 31, 2020 $ 2,000,000 1,542,300 (999,611) (1,000,000) (182,956) $ 1,359,733 $ 9,100 $ 96,902	December 31, 2019 2,000,000 1,542,300 (999,223) (1,000,000) (206,505) 1,336,572 2,622 96,902	March 31, 2019
			2,000,000 1,542,300 (998,057) - (261,864) 2,282,379 5,244 98,073
Cumulative redeemed amount
Discounted corporate bonds payable Long-term portion of bonds payable Embedded derivative instruments – call and put rights at fair value through profit or loss Equity component-conversion right (Reported as capital surplus-share options)

Embedded derivative instruments – call and put rights, included in financial liabilities`(`at fair value through profit or loss`)` Interest expense		For the three months ended March 31	For the three months ended March 31
		2020	2019 1,234
		$ (6,478)
		$ 27,736	16,048

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) For the three months ended March 31, 2020 and 2019, the Group did not issue and repurchase or repay corporate bonds payable. Please refer to Note 6 (q) of the annual consolidated financial statements for the year ended December 31, 2019.
(ii) For the collateral of long term borrowings, please refer to note 8.
(q) Accounts payable and other payables

Accounts payable Arising from direct sales Arising from concessionaire sales Others Total Other payables Securities payable Construction payables Others Total	March 31, 2020	December 31, 2019 167,318 2,825,519 61,020 3,053,857 105,982 261,609 714,439 1,082,030	March 31, 2019 173,447 2,555,988 101,841 2,831,276 478,217 278,877 560,238 1,317,332
	$ 114,840 1,433,318 56,418 $ 1,604,576 $ 108,384 235,232 679,428 $ 1,023,044

(r) Lease liabilities

The information of lease liabilities of the Group were as follows ：

Current Non- Current		March 31, 2020 $ 968,694 $ 7,903,563	December 31, 2019 955,219 8,232,934	March 31, 2019 940,608 9,365,388

Expiration analysis, please refer to Note 6 (z) for financial instruments.

The amounts recognized in profit or loss as follows:

Interest expense of lease liabilities Variable leases payments not included in the measurement of lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value, excluding short-term leases of low-value assets	For the three months end March 31 2020 2019 $ 110,299 127,189 $ (149,764) 39,407 $ 17 898 $ 299 -	For the three months end March 31 2020 2019 $ 110,299 127,189 $ (149,764) 39,407 $ 17 898 $ 299 -
	2020
	$ 110,299 $ (149,764) $ 17 $ 299
		39,407
		898
		-

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Total cash flow for the Group’s leases as follows:

Total cash flow for the Group’s leases as follows:
Total cash outflow for leases	For the three months end March 31 2020 2019 $ 183,572 361,290
		2020
		$ 183,572

(i) Lease of land, housing and construction

The Group's lease of land use rights, housing and buildings as office space, staff quarters and department stores for business. The lease period of office premises is usually three years, the staff quarters are usually one year, and the department store building is usually ten to twenty years. Some leases include the option to extend the lease period at the end of the lease term.

The lease payments for certain contracts are subject to changes in the local price index or based on the sales amount leased by the Group during the lease term.

(ii) Other lease

The lease period of the Group leased transportation and machinery and equipment is two to ten years. Some lease contracts stipulate that the Group has the option to purchase the leased assets when the lease term expires.

In addition, the period in which the Group leases part of the office is one year, and the leases are short-term leases. The Group chooses to apply the exemption recognition requirement without recognizing its related right-of-use assets and lease liabilities.

(iii) The Group was affected by the epidemic of COVID 19 from January 1 to March 31, 2020, the subsidiary in china of the Group closed its business due to government regulations, and force majeure in the operating environment, it ceased to pay rent in accordance with the lease contract until the restoration and filing was approved by the government, due to the aforementioned changes in lease payments, adjustments to operating expenses deductions $ 167,113 thousand (CNY 38,708 thousand).
(s) Operating lease

Leases as lessor

The Group leases its marine equipment and transportation equipment. Since it does not transfer almost all the risks and rewards of ownership of the assets attached to the underlying assets, these lease contracts are classified as operating leases. Please refer to Note 6 (i) for property, plant and equipment. In addition, please refer to Note 6 (d) for details of the financial leasing situation of the combined company operating the passenger car leasing business.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The maturity analysis of the lease payments is reported in the following table for the total amount of undiscounted lease payments to be received in the future ：

(i) Bulk carriers

Less than one year Between one and two years Between two and three years Between three and four years Between four and five years More than five years Total undiscounted lease payments	March 31, 2020 $ 683,487 291,848 291,848 236,755 133,511 133,511 $ 1,770,960	December 31, 2019 499,775 277,019 132,848 132,848 132,848 151,411 1,326,749	March 31, 2019
			536,612 297,447 243,950 136,072 136,072 257,605
			1,607,758

(ii) Transportation equipments

Less than one year Between one and two years Between two and three years Total undiscounted lease payments	March 31, 2020 $ 40,241 26,114 2,750 $ 69,105	December 31, 2019 42,197 31,564 5,684 79,445	March 31, 2019
			44,277 31,077 8,701
			84,055

The direct expenses including repairs and maintenance arising from bulk carriers were as follows：

Operating costs	For the three months end March 31	For the three months end March 31
	2020 $ 7,459	2019
		5,739

(t) Income Tax
(i) The components of income tax were as follows:

Current tax expense Current period Land value increment tax Deferred tax expense Origination and reversal of temporary differences Income tax expense from continuing operations	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2020 $ 25,252 63		2019 103,790 77 103,867 (2,223) (2,223) 101,644
	25,315
	(329)
	(329)
	$ 24,986

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii)Examination and Approval

The years of ROC subsidiaries' tax returns which were examined and approved by the national tax authorities were as follows:

authorities were as follows:
First Steamship Co., Ltd. Yee Shin Investment Co., Ltd. Royal Sunway Development Co., Ltd.	Approved year
	2018 2018 2018

The annual tax returns of subsidiaries in China through 2018 were examined and approved by the tax authority.

(u) Capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the three months ended March 31 2020 and 2019. For the related information, please refer to note 6(v) of the consolidated financial statements for the year ended December 31, 2019.

(i) Capital surplus

The components of the capital surplus were as follows:

Share capital Stock option from convertible corporate bonds Share options Forfeited share options Treasury share transactions Stock options－fair value differences of associates under equity method Difference arising from subsidiary's share price and its carrying value Changes in a parent's ownership interest in a subsidiary Donation from shareholders	March 31, 2020 $ 561,458 748,921 96,902 13,838 15,967 11,629 545,205 65,078 3,332	March 31, 2020 $ 561,458 748,921 96,902 13,838 15,967 11,629 545,205 65,078 3,332	December 31, 2019 561,458 748,921 96,902 13,838 15,967 11,629 430,844 64,795 3,332	March 31, 2019 561,458 748,921 98,073 13,838 15,967 31,738 430,844 147,039 3,332 2,051,210
	$ 2,062,330		1,947,686

On April 28, 2020, the Company’s board of directors approved cash dividends to stockholders by capital surplus of $ 186,265 thousand.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Retained earnings

According to the Articles of Incorporation, after-tax earnings are initially used to offset cumulative losses, and 10% of the remainder is set aside as a legal reserve, except when the legal reserve of the Company reaches paid-in capital of the Company. Special reserve may be appropriated if necessary. Other than distributing dividends, any remaining balance and the undistributed earnings from the beginning of the year are distributed according to the proposal presented by the Board of Directors in the shareholder's meeting.

According to the Company's articles of incorporation, the dividend policy of the Company is based on the principle of prudence, which considers the Company's future funding needs and financial structure by reserving a certain amount of earnings, and distributing stock dividends and cash dividends from the remaining earnings. In order to maintain stable dividend distribution, in principle, the distribution of cash dividends shall not be less than 10% of the total dividends. If the distribution of cash dividends is less than NT$0.1 dollars per share, the Board of Directors can pass a resolution to distribute stock dividends instead, but it will be subject to a resolution by the shareholders during their shareholders' meeting.

1) Special reserve

The Group chose to apply the exemption under the IFRS1 “First-time adoption of IFRS”; therefore, a portion of cumulative translation adjustments amounting to thousand was reclassified as special earnings reserve. The net increase in retained earnings due to this reclassification is not covered by the Ruling No. 1010012865 issued by the FSC on April 6, 2012 for purposes of appropriating the same amount of special earnings reserve.

In accordance with the aforementioned Ruling No. 1010012865, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions. A resolution was passed during the shareholders' meeting held on June 28, 2019 reversal of special earnings reserve of $ 105,284 thousand, respectively. On April 28, 2020, the Company’s board of directors approved for the appropriation of special earnings reserve of $ 335,040 thousand.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Earnings distribution

The appropriations of earnings for 2019 have been approved in the meeting of the board of directors held on April 28, 2020. And the appropriations of earnings for 2018 had been approved in the shareholders' meeting held on June 28, 2019. The appropriation and dividend per share were as follows：

For the year ended December 31 2019 2018 Dividends distributed to ordinary shareholders`：` Cash $ - 63,088 Dividends per share 620,883 - Total $ 620,883 63,088	For the year ended December 31 2019 2018 Dividends distributed to ordinary shareholders`：` Cash $ - 63,088 Dividends per share 620,883 - Total $ 620,883 63,088	For the year ended December 31 2019 2018 Dividends distributed to ordinary shareholders`：` Cash $ - 63,088 Dividends per share 620,883 - Total $ 620,883 63,088
	$ 620,883	63,088

(iii) Treasury stock
1) For the three months ended March 31, 2020, in accordance with the requirements under section 28(2) of the Securities and Exchange Act, the Company repurchased 10,000 thousand shares of its own common stock as treasury shares in order to protect the Company’s integrity and shareholders’ equity. As of March 31, 2020, total of 10,000 thousand shares were not yet cancelled.

In accordance with Securities and Exchange Act requirements as stated above, the number of shares repurchased should not exceed 10 percent of all common shares issued. Also, the value of the repurchased shares should not exceed the sum of the Company’s retained earnings, share premium, and realized capital reserves.

In accordance with Securities and Exchange Act requirements, treasury shares held by the Company should not be pledged, and do not hold shareholder rights before their transfer.

2) The movement in treasury shares of subsidiaries were as follows:

(In thousands of shares)

Outstanding at January 1 Exercised during the year Outstanding at March 31		For the three months ended March 31 2020 2019 11,882 6,350 (35) - 11,847 6,350
		2020
		11,882 (35) 11,847

The proceeds from transferring treasury shares were recognized as prepaid salary for employees to execute subscription. As of March 31, 2020, December 31, 2019, and March 31, 2019, these prepaid salary amounting to $ 199,700 thousand, $ 214,055 thousand and $ 117,841 thousand were recognized under other current assets and non-current assets, respectively. Considering the crisis the industry is facing and the impact caused by COVID-19, a resolution was passed during the board of directors' meeting to defer the repayment of advanced employees' salary for one year on February 27, 2020.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Other equity interests

Exchange differences on translation of foreign financial statements	Equity related to non-current assets classified as held for sale	Non-controlling Interest Total 4,117,351 3,551,459 (58,235) (58,235) - 6,416 (202,432) (202,432) 235 235 (45,995) (81,771) 3,810,924 3,215,672 3,938,602 3,707,750 86,381 86,381 - 1,593 94,573 240,445 4,119,556 4,036,169
$ (595,680) 29,788 - - 6,416 - - - - - (36,846) 1,070
$ (626,110)	30,858	3,810,924
$ (266,508) 35,656 - - 1,593 - 145,137 735
$ (119,778)	36,391	4,119,556

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(v) Earnings per share

The Group's earnings per share were calculated as follows:

Basic earnings (loss) per share Profit (loss) attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares Earnings (loss) per share (dollars) Diluted earnings (loss) per share Profit (loss) attributable to ordinary shareholders of the Company Effect of dilutive potential ordinary shares Effect of conversion of convertible bonds Profit (loss) attributable to ordinary shareholders of the Company (diluted) Weighted-average number of ordinary shares Effect of dilutive potential ordinary shares Effect of issuance of share option Effect of conversion of convertible bonds Weighted-average number of ordinary shares (diluted) Earnings (loss) per share (dollars)		For the three months ended March 31 2020 2019 $ (227,718) 139,343 624,790 630,883 $ (0.36) 0.22 (227,718) 139,343 (Note) 4,530 $ (227,718) 143,873 624,790 630,883 (Note) 114 (Note) 48,757 624,790 679,754 $ (0.36) 0.21
		2020
		$ (227,718)
		624,790
		$ (0.36) (227,718) (Note)
		$ (227,718) 624,790 (Note) (Note)
		624,790
		$ (0.36)

Note: The conversion of convertible bonds was not included in the calculation of the weighted-average number of shares (diluted) due to the anti-dilutive effect.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(w) Revenue from contracts with customers

(i) Disaggregation of revenue

	For the three months ended March 31, 2020	For the three months ended March 31, 2020	For the three months ended March 31, 2020	For the three months ended March 31, 2020
Freight department	Invest department 1,528 - 13,675	Retail department - 885,613 -	Lease department - 59,395 -	Other department 10,836 - -
$ - - 243,759
$ 243,759	15,203	885,613	59,395	10,836
	- - 1,528 - 13,675	304,681 324,127 120,840 - 135,695	- - 13,622 40,658 5,115	- - - - 10,836
$ 243,759	15,203	885,613	59,395	10,836

	For the three months ended March 31, 2019	For the three months ended March 31, 2019	For the three months ended March 31, 2019	For the three months ended March 31, 2019
Freight department	Invest department	Retail department - 1,779,679 -	Lease department 1,840 78,838 -	Other department 16,866 - -
$ - - 256,471	1,117 - 6,611
$ 256,471	7,728	1,779,679	80,678	16,866
	- - 1,117 - 6,611	721,312 532,217 221,845 - 304,305	- - 18,952 54,375 7,351	- - - - 16,866
$ 256,471	7,728	1,779,679	80,678	16,866

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Contract balances

Accounts receivable Less: allowance for impairment Total Contract liabilities	March 31, 2020 $ - - $ - $ 57,289	December 31, 2019 - - - 150	March 31, 2019 14,761 - 14,761 5,404

Please refer to note 6(d) for the disclosure of accounts receivable and impairment.

The amount of revenue recognized for the three months ended March 31, 2020, and 2019, that was included in the contract liability balance at the beginning of the period was $ 150 thousand and $ 3,511 thousand.

The major change in the balance of 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 other significant changes for the three months ended March 31, 2020, and 2019,

(x) Employee compensation and directors' remuneration

According to the Articles of Incorporation, once the Company has annual profit, it should appropriate no less than 1% of the profit to its employees and 3% or less as directors' remuneration. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The pervading target given via shares or cash includes dependent employees of the Company's subsidiaries under certain requirements approved by Board of Directors. However, directors' remuneration could only be paid by cash.

For the three months ended March 31, 2020, the Company loss before tax. The company was not estimated its employee compensation and directors' remuneration amounting.

For the three months ended March 31, 2019, the Company estimated its employee compensation and directors' remuneration amounting to $1,393 thousand. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees and directors of each period, multiplied by the percentage of remuneration to employees and directors as specified in the Articles of Incorporation. These remunerations were expensed under operating costs or operating expenses for each period. The difference between the actual amounts and the estimation of employee compensation will be treated as changes in accounting estimates and adjusted in profit or loss in the following year.

For the year ended December 31, 2019, the Company estimated its employee compensation and directors' remuneration amounting to $14,352 thousand and zero. There were no differences between the amount to be distributed as rewards to employees and directors and those estimations made by the board of directors. Related information would be available at the Market Observation Post System.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(y) Non-operating income and expenses

(i) Other income

The details of other income were as follows:

Interest income Loan to unrelated parties Amortized cost financial assets Loans Open-end fund Other Total		For the three months ended March 31	For the three months ended March 31
		2020	2019 8,305 18,295 2,465 284 -
		$ 6,626 - 2 252 2,153 $ 9,033
			29,349

(ii) Other gains and losses

The details of other gains and losses were as follows:

Loss on disposal of property, plant and equipment Foreign exchange gains (loss) Gain (loss) on financial assets (liabilities) at fair value through profit or loss Open fund and listed companies Embedded derivative instruments－call and put rights of convertible bonds Impairment loss , gain on reversal of impairment loss Non-current assets classified as held for sale Other (included credit card charge income and etc.)	For the three months ended March 31 2020 2019 $ (404) (2,740) (14,289) 21,645 (23,620) 9,152 (6,478) 1,234 (83,813) 40,533 17,871 52,059 $ (110,733) 121,833	For the three months ended March 31 2020 2019 $ (404) (2,740) (14,289) 21,645 (23,620) 9,152 (6,478) 1,234 (83,813) 40,533 17,871 52,059 $ (110,733) 121,833
	2020 $ (404) (14,289) (23,620) (6,478) (83,813) 17,871 $ (110,733)
		121,833

(iii) Finance costs

The details of finance costs were as follows:

Interest expense Interest on corporate bonds Amortization on discount of corporate bonds Lease liabilities Financial expenditures	For the three months ended March 31 2020 2019 $ 62,194 107,827 4,187 8,375 23,549 7,673 110,299 127,189 2,429 6,436 $ 202,658 257,500	For the three months ended March 31	For the three months ended March 31
			2019
			107,827 8,375 7,673 127,189 6,436
			257,500

The interest related to leases amounting to $ 18,408 thousand and $ 10,456 thousand for the three months ended March 31, 2020 and 2019, respectively, was recognized as interest expense under operating cost.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(z) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group's financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note 6(aa) of the consolidated financial statements for the year ended December 31, 2019.

(i) Credit risk

1) Receivables of credit risk

For credit risk exposure of notes and accounts receivables, please refer to note 6(d). Other financial assets at amortized cost include other receivables and corporate bonds, etc.; please refer to notes (c) and (e).

The impairment provision of all of these financial assets recognized during the period was limited to 12 months expected losses or lifetime ECL measurement. For the three months ended March 31, 2020 and 2019, the movement in the allowance for impairment for above assets was referred to notes 6(d) and (e).

(ii) Liquidity risks

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

Carrying amount	Contractual cash flows 2,585,395 5,756,139 6,375,914 11,030,300	1years 1,976,056 2,950,045 3,723,325 1,375,954	1 to 5 years 75,885 2,806,094 2,652,589 4,874,182	Over 5years
$ 2,585,395 5,503,075 5,959,311 8,872,257				533,454 - - 4,780,164 5,313,618 552,538 - - 5,063,498 5,616,036
$ 22,920,038	25,747,748	10,025,380	10,408,750 162,371 2,879,271 2,565,702 5,037,213
$ 4,362,608 5,507,439 5,667,185 9,188,153	4,362,608 5,779,144 6,089,966 11,479,164	3,647,699 2,899,873 3,524,264 1,378,453
$ 24,725,385	27,710,882	11,450,289	10,644,557

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 2019 Non-derivative financial liabilities Non-interest bearing liabilities Floating rate instrument Fixed rate instruments Lease liabilities	Carrying amount	Contractual cash flows	1years	1 to 5 years Over 5 years 397,452 571,837 4,681,503 - 2,597,015 - 5,365,724 6,285,277
	$ 4,575,607 8,789,222 4,732,428 10,305,996	4,575,607 9,311,389 5,131,205 13,071,094	3,606,318 4,629,886 2,534,190 1,420,093
	$ 28,403,253	32,089,295	12,190,487	13,041,694 6,857,114

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

(iii) Market risk
1) Currency risk

The Group's significant exposure to foreign currency risk was as follows:

March 31, 2020	March 31, 2020	March 31, 2020	December 31, 2019	December 31, 2019	December 31, 2019	March 31, 2019	March 31, 2019	March 31, 2019
Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
		1,935 1,483 1,441 - 5,357 200,362 690,568 702,847 108,382 - -	900 261 3,922 - 148 73,216 175,614 25,225 27,415 - -	30.08 0.1285 0.0332 - 1.1217 0.1285 0.1285 6.9762 0.1285 - -	27,072 1,009 3,917 - 4,994 283,041 678,892 758,767 105,967 - -	68 1,089 3,043 40 504 - 76,069 309,600 20,500 246,732 11,348 55,000	30.81 0.1275 0.0325 0.7090 1.1233 - 0.1275 0.1275 6.7335 0.1275 1.1233 0.1485	2,095 4,277 3,043 869 17,438 - 298,710 1,215,750 631,601 968,876 392,754 251,660

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Sensitivity analysis

The Group's exposure to foreign currency risk arises from cash and cash equivalents, financial assets at fair value though profit or loss, loans and borrowings; and trade and other payables that are denominated in foreign currency. strengthening (weakening) of 1% of the NTD or CNY against the USD, EUR, HKD, AUD and CNY as of March 31, 2020 and 2019 would have increased (decreased) the profit before tax by $ 8,010 thousand and $ 22,172 thousand, respectively. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date.

Since the Group has many kinds of functional currency, the information on foreign exchange loss on monetary items is disclosed by total amount. For the three months ended March 31, 2020 and 2019, foreign exchange gain (loss) (including realized and unrealized portions) amounted to $ (14,289) thousand and $ 21,645 thousand, respectively.

3) Interest rate analysis

The details of the Group's exposure to interest rate of financial assets and liabilities, please refer to the note on liquidity risk management.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments at the reporting date. Regarding of liabilities with floating interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.5% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 0.5%, the Group's profit before tax would have decreased or increased by $ 1,864 thousand and $ 3,792 thousand, which is mainly due to the Group's borrowings at variable rates and demand deposits for the three months ended March 31, 2020 and 2019, respectively, given that all other variable factors remaining constant.

4) Other market price risk

The sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Prices of securities at the reporting date	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2020 Comprehensive Income (Loss) (net of tax) Net Income (Loss) (net of tax) $ - 5,145 $ - (5,145)	2019
	Comprehensive Income (Loss) (net of tax) $ - $ -	Comprehensive Income (Loss) (net of tax) - -	Net Income (Loss) (net of tax)
Increase 5% Decrease 5%			7,702 (7,702)

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Fair value of financial instruments
1) Fair value hierarchy

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

Financial assets at fair value through profit or loss

[Non-derivative financial assets mandatorily ] measured at fair value through profit or loss
[Financial liabilities at fair value through ] profit or loss
[Embedded derivative instruments–call and ] put options
Financial assets at fair value through profit or loss
[Non-derivative financial assets mandatorily ] measured at fair value through profit or loss
[Financial liabilities at fair value through ] profit or loss
[Embedded derivative instruments–call and ] put options
Financial assets at fair value through profit or loss
[Non-derivative financial assets mandatorily ] measured at fair value through profit or loss
[Financial liabilities at fair value through ] profit or loss
[Embedded derivative instruments–call and ] put options

		March 31, 2020	March 31, 2020
Carrying amount			Fair	Value
	Level 1		Level 2		Level 3	Total
$ 113,276	113,276		-		-	113,276 9,100
$ 9,100	-		-		9,100

Carrying amount			Fair	Value
	Level 1		Level 2		Level 3	Total
$ 162,866	162,866		-		-	162,866 2,622
$ 2,622	-		-		2,622
		March 31, 2019
Carrying amount			Fair	Value
	Level 1		Level 2		Level 3	Total
$ 166,451	166,451		-		-	166,451 5,244
$ 5,244	-		-		5,244

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

a) Financial assets measured at amortized cost and financial liabilities measured at amortized cost.

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

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

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well established, only small volumes are traded, or bid ask spreads are very wide. Determining whether a market is active involves judgment.

b) Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques. Embedded derivative instruments are measured at model of adjusted Binary tree.

c) Financial guarantee contract

Discounted cash flow models that are applied to estimate the fair value of a financial guarantee. The assumption is to use a probability-weighted discounted cash flow analysis that incorporates the expected default rate of the borrower and expected recoveries in the event of default.

4) Transferring from each level 1 and 2 in the fair value hierarchy: None

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) Reconciliation of Level 3 fair values

Opening balance, January 1, 2020 Total gains and losses recognized in profit or loss Ending balance, March 31, 2020 Opening balance, January 1, 2019 Total gains and losses recognized in profit or loss Issued Ending balance, March 31, 2019	Financial liabilities as held for sale Embedded derivative instruments $ 2,622 6,478 $ 9,100 $ - (1,234) 6,478 $ 5,244

The aforementioned total gains and losses were recognized in “other gains and losses”, Details of the liabilities the Group still held as follows:

Total gains and losses recognized: In profit or loss (presented in “other gains and losses”)	For the three months ended March 31 2020 2019 $ 6,478 (1,234)	For the three months ended March 31 2020 2019 $ 6,478 (1,234)	For the three months ended March 31 2020 2019 $ 6,478 (1,234)
			2019
			(1,234)

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

The Group’ s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income-equity investments.

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs The relationship between significant Non-observable inputs and fair values
Embedded derivative instruments–call and put options	Adjusted Binary tree	Volatility ‧The higher the volatility, the lower the fair value. March 31, 2020 December 31, 2019 March 31, 2019 32.30% 24.29% 41.16%

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

The Group's fair value measurement on financial instruments is reasonable. However, the measurement would be different if different valuation models or valuation parameters are used. For financial instruments using level 3 inputs, the impact on the net income or loss and other comprehensive income or loss will be as follows if the valuation parameters changed:

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Inputs Variation March 31, 2020 Financial liabilities at fair value through profit or loss Embedded derivative instruments- call and put right Volatility 5% December 31, 2019 Financial liabilities at fair value through profit or loss Embedded derivative instruments- call and put right Volatility 5% March 31, 2019 Financial liabilities at fair value through profit or loss Embedded derivative instruments- call and put right Volatility 5%	Inputs Variation	Impacts of fair value change on net income or loss
		Favourable Unfavourable
		1,388 (2,159) 308 (308) 154 (154)

The favourable and unfavourable change effects represent the change 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.

(aa) Financial risk management

There were no significant differences of the Group's financial risk management and policies with those disclosed in Note 6(ab) of the consolidated financial statements for the year ended December 31, 2019.

(ab) Capital Management

Management believes that the objectives, policies and processes of capital management of the Group have been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2019. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2019. Please refer to Note 6(ad) of consolidated financial statements for the year ended December 31, 2019 for further details.

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

For the three months ended March 31, 2020 and 2019, the Group's investing and financing activities which did not affect the current cash flow were as follows:

1) Acquisition of right-of-use assets from lease. Please refer to Note 6 (j).
2) Adjustment of liabilities from financing activities were as follows:

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Cash flows	Non-cash	March 31, 2020
	Other(Note) - - 23,549 - (166,964) - (143,415) Non-cash
237,324 31 - (121,544) (55,608) (98,251) (68,048) Cash flows		3,765,371 49,985 2,359,344 4,629,535 8,872,257 615,926 20,292,418 March 31, 2019


	Other(Note) - - (257,200) - 127,669 - (129,531)
(9,233) - 1,542,300 (1,204,775) (320,985) (23,541) (16,234)		3,573,993 49,947 3,280,436 6,093,284 10,305,996 950,989 24,254,645

Note: The impact of the lease liability on the rental, new and discontinued leases please refer to Note 6(r); the amount of amortization of corporate bond issuance costs.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(7) Related-party transactions:

(a) Parent company and ultimate controlling company

First Steamship Company Ltd. is the ultimate controlling company of the Group.

(b) Names and relationship with related parties

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

Name of related party Relationship with the Group Nanjing Tiandu Co., Ltd. The Group's manager is the company's chairman Shanghai Tian An Tower Co., Ltd. The Group's manager is the company's director Huizhou Tianan Xinghe City Management Co., Ltd. A substantial related party Huiyang Tamsui New Sun City Construction Co., Ltd. A substantial related party Shanghai Guorui Tongshun Environmental Protection A substantial related party Technology Co., Ltd. Hainan Sanhe Licheng Business Service Co., Ltd. An associate

(c) Significant transactions with related parties
(i) Sales

The amounts of significant interest income of finance leases and lease receivables by the Group to related parties were as follows:

Operating revenues	Operating revenues	Lease receivables	Lease receivables
For the three months ended March 31 2020 2019		December 31, 2019 220,099	March 31, 2019 -
	2019
$ 4,559	-

The interest income of finance leases between the Group and the associates is based on the interest rate agreed by both parties and collected monthly. The interest rate is not significantly different from the one with non-related parties. The receivables with related parties are guaranteed by vehicles for finance lease, take Chengdu Sanhe Licheng Business Service Co., Ltd as joint guarantee and no impairment losses were required after the assessment.

(iii) Payables to related parties

Payables to related parties were as follows:

Account Category of related party March 31, 2020 December 31, 2019 Other payables Other related parties $ 4,805 - Prepayments March 31, 2020 December 31, 2019 Other related parties $ 48,183 48,692	Account Category of related party March 31, 2020 December 31, 2019 Other payables Other related parties $ 4,805 - Prepayments March 31, 2020 December 31, 2019 Other related parties $ 48,183 48,692	March 31, 2019
		-
		March 31, 2019 -
$ 48,183	48,692

Note: It is a short-term prepaid lease fee and a monthly fixed prepaid variable rent of the Group,

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

which is settled at the end of the year.

(iv) Lease
1) Liabilities lease and Interest

==> picture [437 x 183] intentionally omitted <==

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

Lease liabilities Interest expense
March 31, December 31, March 31, For the three months ended
Relationship Purpose 2020 2019 2019 2020 2019
Other related parties Office building and $ 69,082 76,266 72,371 872 910
department store
Other related parties Energy-saving renovation 51,673 53,811 56,705 644 696
engineering equipment
2) Operating lease
Payments that are not included in
the measurement of the lease
liability Rent expense
For the three months ended For the three months ended
Relationship Account 2020 2019 2020 2019
[Other related parties] office building and $ 17,349 37,259 986 335
department store
----- End of picture text -----

As of March 31, 2020, December 31, 2019, and March 31, 2019, the rental security deposit of the Group to other related parties amounted to $ 11,699 thousand, $ 8,624 thousand and $ 9,151 thousand, respectively.

(v) Others

1) The Group provided management consulting services and signed service contracts with other related parties. For the three months ended March 31, 2020 and 2019, the revenue from consulting services was zero and $ 5,388 thousand, respectively. On March 31, 2020, December 31, 2019, and March 31, 2019, the outstanding amounts were zero, $ 28,745 thousand (CNY 6,667 thousand) and $ 17,159 thousand (CNY 3,750 thousand) and which reported as other receivables.
2) For the three months ended March 31, 2020 and 2019, the Group purchased energy-saving equipment amounting to $ 725 thousand (CNY 170 thousand) and $ 423 thousand (CNY 93 thousand), respectively, from other related parties and which reported as property, plant and equipment.
(vi) Guarantees

On March 31, 2020, December 31, 2019, and March 31, 2019, the amount of guarantee that the Group provided for associates, which signed the finance lease agreements with non-related parties, were $ 103,635 thousand (CNY 24,289 thousand), $ 64,385 thousand (CNY 14,932 thousand) and zero, respectively.

(d) Key management personnel compensation
(i) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits	For the three months ended March 31	For the three months ended March 31
	2020	2019
	$ 13,642	13,572

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) The Group granted key management personnel rights to subscribe treasury shares as prepaid salaries. As of March 31, 2020, December 31, 2019 and March 31, 2019, those prepaid salaries amounting to $ 44,989 thousand (CNY 10,544 thousand), $ 45,585 thousand (CNY 10,572 thousand) and $ 26,051 thousand (CNY 5,693 thousand), which were recognized under other current assets and other non-current assets accounts.

(8) Pledged assets:

(a) The carrying amount of pledged assets were as follows:

Pledged assets	Object	March 31, 2020 $ - 95,771 522,533 144,553 9,359,575 143,766 -	December 31, 2019 - 101,531 528,539 92,855 9,602,555 144,009 -	March 31, 2019 529,932 117,552 553,680 - 10,207,920 144,739 246,147
Current financial assets at amortized cost Inventories (for construction business) Other financial assets－ current and non-current (Note 1) Accounts receivable Property, plant and equipment (Note 2) Investment Property Non-current assets classified as held for sale	Securities payable Bank loans Bank loans, bank depository funds and ordinary bonds payable Bank loans Bank loans and ordinary bonds payable Ordinary bonds payable Bank loans
		$ 10,266,198	10,469,489	11,799,970

Note 1: The credit line of the above pledged assets has been made, with some are actually appropriated.
Note 2: Including the land use rights, which are recognized as right-of-use assets and long-term prepaid rentals.
(b) The Group pledged the guaranteed vehicles which acquired from finance lease business for loans. As of March 31, 2020, December 31, 2019, and March 31, 2019, the value of the vehicles was $357,960 thousand, $322,379 thousand and zero, respectively.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(9) Significant commitments and contingencies:

Except for those described in note 6, the Group's other significant commitments and contingencies were as follows:

(a) Unrecognized contractual commitments
(i) The unrecognized contractual commitments of the Group were as follows:

Contracted price Construction contract of land and building Purchase contract of vehicle for rent Sales contract of land Purchase vessel equipment Received or paid price Construction contract of land and building Purchase contract of vehicle for rent Sales contract of land Purchase vessel equipment	March 31, 2020 $ 665,331 23,730 386,011 1,940,766 108,309 16,640 57,289 388,153	December 31, 2019 665,331 23,981 11,020 1,931,136 108,309 16,816 150 386,227	March 31, 2019 665,331 68,230 513,730 1,004,406 108,309 11,439 5,404 -

(ii) The total amount of the Group's contracts to purchase commercial real estate as department store business office was CNY 148,487 thousand. As of March 31, 2020, the unpaid amount was $ 74,021 thousand (CNY 16,177 thousand). The aforesaid real estate was completed acceptance in the 4th quarter of 2019 and reclassified as property, plant and equipment.
(iii) The Group signed a finance lease business cooperation agreement with Shanghai Financial Leasing Co., Ltd., then found and reviewed customers according to the contracted risk control standards. Shanghai Financial Leasing Co., Ltd. signed a finance lease contract with the customer, and the Group received some contract considerations from Shanghai Financial Leasing Co., Ltd. on schedule. In addition, the Group promised to buy unconditionally the default claims from Shanghai Financial Leasing Co., Ltd. if the customers violate the agreement, it will buy the default claims from Shanghai Financial Leasing Co., Ltd. Since there was no past due occurred, the Group did not accrue expected credit losses after evaluation.

Contracted value Remaining amount building	March 31, 2020		December 31, 2019 48,321 46,866		March 31, 2019 - -
	$ 59,443 $ 54,155

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) The Group signed the joint construction contracts with other companies as follows:

Item Joint construction with allocation of buildings Joint investing and developing on construction site	Construction name
	Me island phaseIIIB1 Nan Jing Jian Kang

(10) Losses due to major disasters: None

(11) Subsequent events: None

(12) Other:

(a) The employee benefit expenses, depreciation and amortization, categorized by function, were as follows:

follows:
	For the three months ended March 31
By function By item	2020			2019
	Operating Cost	Operating expense	Total	Operating Cost	Operating expense	Total
Employee benefits
Salary	46,130	140,273	186,403	42,993	160,630	203,623
Health and labor insurance	307	1,152	1,459	-	1,508	1,508
Pension	323	6,334	6,657	-	17,263	17,263
Others	4,110	23,761	27,871	3,960	32,358	36,318
Depreciation	87,973	397,183	485,156	84,288	426,539	510,827
Depletion	-	-	-	-	-	-
Amortization	7,459	2,630	10,089	5,739	3,722	9,461

(b) Seasonality of operations

The Group's retail business is subject to seasonal fluctuations as a result of vacation. Thus, this industry typically has higher revenues and results for the first and fourth quarter of the year. Due to the impact of the spread of COVID-19 virus in the first quarter of 2020, the Group were temporarily closed from the end of January in 2020, and resumed business in mid-February, that leading to a decline in business conditions in the first quarter of 2020, the Group been working hard to resume normal operations since March.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(13) Segment information:

The Group's operating segment information and reconciliation were as follows:

For the three months ended March 31, 2020 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the three months ended March 31, 2019 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss	Freight department $ 243,759 - $ 243,759 $ 25,390 $ 256,471 - $ 256,471 $ 23,009	Invest department 15,203 16,640 31,843 (145,768) 7,728 16,564 24,292 (5,743)	Retail department 885,613 - 885,613 (102,073) 1,779,679 - 1,779,679 303,695	Lease department 59,395 - 59,395 (37,131) 80,678 343 81,021 9,559	Other segment 10,836 -	Reconciliation and elimination - (16,640) (16,640) - - (16,907) (16,907) -	Total 1,214,806 -
					10,836		1,214,806
					(1,385)		(260,967)
					16,866 -		2,141,422 - 2,141,422 327,368
					16,866 (3,152)

AI assistant

FSC — Interim / Quarterly Report 2020

52157_rns_2020-11-16_633998df-c114-4930-8138-6db268b029f3.pdf

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Table of contents

Independent Auditors' Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matter

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2019 and 2018

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

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

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2020 and 2019

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (CONT ’ D)

For the three months ended March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Reviewed only, not audited in accordance with generally accepted auditing standards FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(c) Employee benefits

(d) Income taxes

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

(6) Explanation of significant accounts:

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Accounts receivables

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(e) Other receivables

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FSC Interim / Quarterly Report 2020