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 Six Months Ended June 30, 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 10～16 16 17～55 56～58 58 59～60 60 60 60~61 61

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

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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 June 30, 2020 and 2019, the related consolidated statements of comprehensive income for the three months and the six months ended June 30, 2020 and 2019, as well as the changes in equity and cash flows for the six months ended June 30, 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 $ 482,944 thousand and $ 6,855 thousand as of June 30, 2020 and 2019. And its equity in net earnings on these investee companies of $ 6,539 thousand, $ 140 thousand, $ 5,481 thousand, and $ 17,837 thousand for the three months and six months ended June 30, 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 June 30, 2020 and 2019, and of its consolidated financial performance for the three months and the six months ended June 30, 2020 and 2019, as well as its consolidated cash flows for the six months ended June 30, 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 $ 1,801,981 thousand; reflect the total assets constituting 5% of the consolidated total assets at June 30, 2020. The net operating income was $ 58,693 thousand and $ 118,088 thousand; reflect the total operating revenues constituting 4% and 5% of the consolidated total operating revenues for the three months and six months ended June 30, 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) August 13, 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 June 30, 2020 and 2019

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2020, December 31, 2019, and June 30, 2019

(Expressed in Thousands of New Taiwan Dollars)

June 30, 2020 Amount % $ 3,842,923 10 144,266 - - - 949,310 3 203,639 1 - - 339,316 1 615,439 2 174,677 1 266,914 1 351,052 1	June 30, 2020 Amount % $ 3,842,923 10 144,266 - - - 949,310 3 203,639 1 - - 339,316 1 615,439 2 174,677 1 266,914 1 351,052 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	June 30, 2020 Amount % $ 4,360,350 13 49,932 - - - 58,567 - 1,649,609 5 1,318,843 4 31,947 - 1,115,507 3 - - 1,270,798 4 291,916 1 10,147,469 30	June 30, 2020 Amount % $ 4,360,350 13 49,932 - - - 58,567 - 1,649,609 5 1,318,843 4 31,947 - 1,115,507 3 - - 1,270,798 4 291,916 1 10,147,469 30	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	June 30, 2019 Amount % 3,199,068 8 49,949 - 3,856 - 1,352 - 2,247,177 6 1,200,304 3 81,732 - 975,749 2 998,445 3 1,073,501 3 108,731 -
			Amount			%
			$ 4,360,350 49,932 - 58,567 1,649,609 1,318,843 31,947 1,115,507 - 1,270,798 291,916 10,147,469
				30	10,995,772 28		9,939,864 25
			1,383,295 3,147,956 48,408 7,510,639 409 566,468 12,657,175	4 9 - 21 - 2	1,336,572 3 3,675,728 10 49,030 - 8,232,934 22 422 - 720,549 2		1,291,428 3 4,333,333 11 75,845 - 8,991,289 23 1,637 - 892,682 2
6,887,536	20	8,657,781 23
59,900 886,124 12,919,023 8,814,353 143,523 2,068,105 869,134 477,043 515,697 834,208 225,057	- 3 38 25 - 6 3 1 1 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
				36	14,015,235 37		15,586,214 39
			22,804,644	66	25,011,007 65		25,526,078 64
			6,929,715 1,881,607 494,656 (806,803) (94,491)	20 5 1 (2) -	6,308,832 16 1,947,686 5 1,450,781 4 (565,892) (1) - -		6,308,832 16 1,960,619 5 1,387,923 4 (87,244) - - -
			8,404,684 3,490,375	24 10	9,141,407 24 4,117,351 11		9,570,130 25 4,197,794 11
			11,895,059	34	13,258,758 35		13,767,924 36
27,812,167	80	29,611,984 77
			$ 34,699,703	100	38,269,765 100		39,294,002 100
$ 34699703	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 and six months ended June 30, 2020 and 2019

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

For the three months ended June 30	For the three months ended June 30	For the three months ended June 30		For the six months ended June 30	For the six months ended June 30	For the six months ended June 30	% 100 33
2020		2019		2020		2019
Amount $ 1,407,081 594,053	%	Amount	% 100 32	Amount 2,621,887 1,115,959	% 100 43	Amount 4,084,276 1,337,465 2,746,811 2,000,005 36,785
	100 42	1,942,854 626,638
813,028 760,633 30,678	58 54 2	1,316,216 1,007,783 21,254	68 53 1	1,505,928 1,392,232 46,584	57 53 2		67 48 1
21,717	2	287,179	14	67,112	2	710,021	19
7,377 2,841 32,764 (196,720) (3,023)	1 - 2 (14) -	29,186 3,090 1,255,539 (253,092) (3,380)	2 - 65 (13) -	16,410 2,841 (77,969) (399,378) (5,027)	1 - (3) (15) -	58,535 3,090 1,377,422 (510,592) 7,414	2 - 34 (13) -
(156,761)	(11)	1,031,343	54	(463,123)	(17)	935,869	23
(135,044) 6,231	(9) - (9)	1,318,522 92,676	68 5	(396,011) 31,217	(15) 1	1,645,890 194,320	41 5
(141,275)		1,225,846	63	(427,228)	(16)	1,451,570	36
(264,311) (3,951) (13,401) -	(19) - (1) -	(83,520) 2,321 13,935 -	(4) - 1 -	(347,152) (2,881) (6,985) -	(13) - - -	156,190 3,056 15,528 -	4 - - -
(281,663)	(20)	(67,264) (67,264) 1,158,582 1,185,212 40,634	(3)	(357,018)	(13)	174,774	4
(281,663)	(20)		(3)	(357,018)	(13)	174,774	4
$ (422,938)	(29)		60	(784,246)	(29)	1,626,344 1,324,555 127,015 1,451,570 1,468,163 158,181	40
$ (107,524) (33,751)	(7) (2)		61 2	(335,242) (91,986)	(12) (4)		33 3
$ (141,275)	(9)	1,225,846 1,181,355 (22,773) 1,158,582	63	(427,228)	(16)		36
$ (319,075) (103,863)	(22) (7)		61 (1)	(576,153) (208,093)	(21) (8)		36 4
$ (422,938)	(29)		60	(784,246)	(29)	1,626,344	40
			1.88 1.58		(0.54)		2.10
					(0.54)		1.87

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 six months ended June 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

				Equityattributable to owners ofparent	Equityattributable to owners ofparent	Equityattributable to owners ofparent	Equityattributable to owners ofparent	Equityattributable to owners ofparent		Non-controlli nginterests Total equity 3,938,602 12,096,474
	Share capital		Capital surplus	Retained earnings Total other equityinterest					Treasury stock Total equity attributable to owners of parent
	Common stock Stock dividends to be distributed			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
$	6,308,832		1,953,436 163,964 336,136		(373,644) 126,456 (266,508) 35,656				- 8,157,872
	- -	- -	- - - - - -		1,324,555 1,324,555 - - - - 140,552 3,056				- 1,324,555 - 143,608	127,015 1,451,570 31,166 174,774
	-	-	- - -		1,324,555	1,324,555	140,552 3,056		- 1,468,163
	- - - - - - -	- - - - - - -	- 640 - (640) - - - - (63,088) (63,088) - - (105,284) 105,284 - (22,478) - - - - 96,902 - - - - (67,241) - - - - - - - - -				- - - - - - - - - - - - - -
$ 6,308,832			1,960,619 164,604 230,852 992,467 1,387,923 (125,956) 38,712						- 9,570,130	4,197,794 13,767,924
$	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
	- - - -		- - - - - -		(335,242) (335,242) - - - (238,184)			- (2,727)	- (335,242) - (240,911)	(91,986) (427,228) (116,107) (357,018) (208,093) (784,246) - - - - - (186,265) - - - (94,491) - (10,732) (233,765) (103,426) 457 1,036 (185,575) (185,575)
	- -		- - -		(335,242)	(335,242)	(238,184)	(2,727)	- (576,153)	(208,093)
	- - - - - - - 620,883 - - - - - - - - - -		- 83,291 - (83,291) - - - - 335,040 (335,040) - - (186,265) - - - - - - - - (620,883) (620,883) - - - - - - - (10,732) - - - - - 130,339 - - - - - 579 - - - - - - - - - - -					- - - - - - - - -	- - - - - (186,265) - - (94,491) (94,491) - (10,732) - 130,339 - 579 - -
$ 6,308,832 620,883 1,881,607 247,895 565,892 (319,131)						494,656 (833,864)		27,061	(94,491) 8,404,684	3,490,375 11,895,059

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 six months ended June 30, 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 Dividend 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 Gain on disposal of non-current assets classified as held for sale Loss (gain) on disposal of investments Impairment loss (Gain) on reversal of non-current assets classified as held for sale Impairment loss on intangible assets 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 Net defined benefit liability Other current liabilities Total adjustments Cash outflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows used in operating activities	For the six months ended June 30 2020 2019 $ (396,011) 1,645,890 960,165 1,023,933 19,774 17,897 46,584 36,785 (16,787) (20,985) 399,378 510,592 33,912 21,908 (16,410) (58,535) (2,841) (3,090) 1,036 30,604 5,027 (7,414) 809 1,826 - (217,213) 231 (999,684) 105,483 (84,329) 10,342 - (200,340) - 1,346,363 252,295 31,229 414 175,182 402,393 33,198 (22,820) 7,816 100,943 3,970 (43,981) 226 (2,293) 58,417 (3,821) (1,340,933) (1,463,410) (55,611) (297,955) (13) (13) 4,824 (28,442) 264,668 (1,106,690) (131,343) 539,200 12,282 74,936 2,841 3,090 (399,944) (470,465) (148,455) (266,450) (664,619) (119,689)
	2020 $ (396,011) 960,165 19,774 46,584 (16,787) 399,378 33,912 (16,410) (2,841) 1,036 5,027 809 - 231 105,483 10,342 (200,340)
	1,346,363
	31,229 175,182 33,198 7,816 3,970 226 58,417 (1,340,933) (55,611) (13) 4,824
	264,668
	(131,343) 12,282 2,841 (399,944) (148,455)
	(664,619)

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 six months ended June 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) investing activities: Acquisition of financial assets at amortized cost Proceeds from disposal of financial assets at amortized cost Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Proceeds from disposal of non-current assets classified as held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase (decrease) in other receivables Acquisition of intangible assets Increase (decrease) in other financial assets Increase (decrease) in other non-current assets Increase in prepaid equipment Net cash flows from (used in) investing activities Cash flows from (used in) financing activities: Increase (decrease) in short-term borrowings (Decrease) increase in short-term notes and bills payable Proceeds from issuing bonds Repayments of bonds Proceeds from long-term borrowings Repayments of long-term borrowings Decrease in guarantee deposits received Payments of lease liabilities Treasury stock buyback cost Treasury shares sold to employees 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 six months ended June 30 2020 2019 (30,000) - - 71,775 (77,821) - 77,821 1,871,084 - 463,360 (95,015) (309,928) 15,249 13,489 6,254 15,162 (1,542) (12,493) 468,016 (357,723) 11,336 (1,609) (97,849) (202,511)	For the six months ended June 30 2020 2019 (30,000) - - 71,775 (77,821) - 77,821 1,871,084 - 463,360 (95,015) (309,928) 15,249 13,489 6,254 15,162 (1,542) (12,493) 468,016 (357,723) 11,336 (1,609) (97,849) (202,511)	For the six months ended June 30 2020 2019 (30,000) - - 71,775 (77,821) - 77,821 1,871,084 - 463,360 (95,015) (309,928) 15,249 13,489 6,254 15,162 (1,542) (12,493) 468,016 (357,723) 11,336 (1,609) (97,849) (202,511)
	2020 (30,000) - (77,821) 77,821 - (95,015) 15,249 6,254 (1,542) 468,016 11,336 (97,849)
	276,449		1,550,606
	888,105 (22) - (1,000,000) 998,808 (1,251664) (135,621) (98,292) (94,491) - (103,426)		(371,408) 2 1,542,300 (1,000,000) 743,350 (2,664,283) (70,420) (382,539) - 30,207 -
	(796,603)		(2,172,791)
	(121,580)		92,232
	(1,306,353) 5,149,276		(649,942) 5,468,507
	$ 3,842,923		4,818,865

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the 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

Notes to the Consolidated Financial Statements

June 30, 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 August 13, 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” Amendments to IFRS 16“Covid-19-Related Rent Concessions”	Effective date per IASB
	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020

The Group assesses that the adoption of the abovementioned standards would not have any material impact on its consolidated financial statements. The nature and impact of the major changes are explained as follows:

i. Amendments to IFRS 16“Covid-19-Related Rent Concessions”

This amendment provides a practical expedient. For rent reductions that meet certain conditions, the lessee may choose not to assess whether it is a lease modification, but to recognize the change in the lease payment in the profit and loss. The amendment was approved by the FSC in July 2020 and will be applied in advance from January 1, 2020. Detailed accounting policies are in Note 4 (c).

The merged company chose to start on January 1, 2020, and apply this practical expedient for all eligible rent concessions. This accounting change has no impact on the initial application date.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The amounts for profit and loss of $ 33,227 thousand, and $ 200,340 thousand (CNY 46,936 thousand) for the three months and six months ended June 30, 2020, respectively.

(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:

Effective date per New, Revised or Amended Standards and Interpretations IASB Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Effective date to be Between an Investor and Its Associate or Joint Venture” determined by IASB IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 16“Property, Plant and Equipment: Proceeds before January 1, 2022 Intended Use” Amendments to IAS 37 “Onerous Contracts—Cost of Fulfilling a January 1, 2022 Contract ” Annual Improvements to IFRS Standards 2018–2020 Cycle January 1, 2022 Amendments to IFRS 17“Insurance Contracts” January 1, 2023

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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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.

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	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%	3.70%	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%	The company directly
Ltd.	Investments Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries.End of
						business in May 2020 and go
						through relevant procedures

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Yee Shin Investment	Grand Ocean Retail	Investment holding	4.92%	2.21%	2.21%	The company directly
Co., Ltd	Group Ltd.	company				(indirectly) holds more than
						50% of its subsidiaries
Yee Shin Investment	Yee young Investment	General investing	100.00%	- %	- %	The company directly
Co., Ltd	Co., Ltd.					(indirectly) holds more than
						50% of its subsidiaries and it
						has been established and
						registered on May 14, 2020
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,
						which has completed the
						registration process.
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 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%	46.83%	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 COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
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%	1.79%	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
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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
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
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 Ltd.	furnishings, etc.				(indirectly) holds more than
Group 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 Ltd.	furnishings, etc.				(indirectly) holds more than
Group Ltd.						50% of its subsidiaries

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Grand Ocean	Fuzhou Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Department Store	Commercial Ltd.	furnishings, etc.				(indirectly) holds more than
Group Ltd.	(Fuzhou Zhongcheng					50% of its subsidiaries
	Grand Ocean
	Department Store 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 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.	Ltd.					50% of its subsidiaries
Grand Ocean	Fuzhou Jiaruixing	Management	- %	100.00%	100.00%	The company directly
Department Store	Business	consulting business,				(indirectly) holds more than
Group Ltd.	Administration Ltd.	and trading of				50% of its subsidiaries
		cosmetics,
		furnishings, etc.
Quanzhou Grand	Wuhan Zhongshan	Trading of cosmetics,	30.00%	30.00%	30.00%	The company directly
Ocean Department	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Store Ltd.	Department Store Ltd.					50% of its subsidiaries
Nanjing Grand	Suzhou Grand Ocean	Trading of cosmetics,	- %	- %	6.66%	The company directly
Ocean Department	Department Store Ltd	furnishings, etc.				(indirectly) holds more than
Store 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 Store	furnishings, etc.				(indirectly) holds more than
Store Ltd.	Hefei Ltd.					50% of its subsidiaries
Nanjing Grand	Fuzhou Grand Ocean	Trading of cosmetics,	57.13%	57.13%	57.13%	The company directly
Ocean Department	World Department	furnishings, etc.				(indirectly) holds more than
Store Ltd.	Store Ltd.					50% of its subsidiaries
Fuzhou Grand	Fuzhou Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Ocean Commercial	Jingdian Commercial	furnishings, etc.				(indirectly) holds more than
Ltd. (Fuzhou	Ltd. (Fuzhou Grand					50% of its subsidiaries
Zhongcheng Grand	Ocean Department
Ocean Department	Store Ltd.)
Store Ltd.)
Fuzhou Grand	Fuzhou Grand Ocean	Trading of cosmetics,	14.29%	14.29%	14.29%	The company directly
Ocean Commercial	World Department	furnishings, etc.				(indirectly) holds more than
Ltd. (Fuzhou	Store Ltd.					50% of its subsidiaries
Zhongcheng Grand
Ocean Department
Store Ltd.)
Fuzhou Grand	Wuhan Zhongshan	Trading of cosmetics,	70.00%	70.00%	70.00%	The company directly
Ocean Commercial	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Ltd. (Fuzhou	Department Store Ltd.					50% of its subsidiaries
Zhongcheng Grand
Ocean Department
Store Ltd.)
Fuzhou Grand	Fuzhou Jiaruixing	Management	100.00%	- %	- %	The company directly
Ocean Commercial	Business	consulting business,				(indirectly) holds more than
Ltd. (Fuzhou	Administration Ltd.	and trading of				50% of its subsidiaries
Zhongcheng Grand		cosmetics,furnishings,
Ocean Department		etc.
Store Ltd.)
Fuzhou Grand	Fuzhou Grand Ocean	Trading of cosmetics,	14.29%	14.29%	14.29%	The company directly
Ocean Jingdian	World Department	furnishings, etc.				(indirectly) holds more than
Commercial Ltd.	Store Ltd.					50% of its subsidiaries
(Fuzhou Grand
Ocean Department
Store Ltd.)

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

				Shareholding
Name of	Name of	Principal	June 30,	December 31,	June 30,	Name of
Investor	Subsidiary	activity	2020	2019	2019	Investor
Wuhan Zhongshan	Wuhan Optics Valley	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 Ltd.					50% of its subsidiaries
Ltd.
Wuhan Zhongshan	Xiangtan Grand Ocean	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Department Store Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries. It was
Ltd.						closed on December 31, 2018,
						and it was processed in the
						liquidation process.
Wuhan Zhongshan	Chongqing Optics	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Valley Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Ltd.					50% of its subsidiaries
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 Ltd.					50% of its subsidiaries
Ltd.
Wuhan Zhongshan	Hengyang Grand	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Grand Ocean	Ocean Department	furnishings, etc.				(indirectly) holds more than
Department Store	Store Ltd.					50% of its subsidiaries
Ltd.
Wuhan Zhongshan	Shiyan Grand Ocean	Trading of cosmetics,	100.00%	100.00%	100.00%	The company directly
Grand Ocean	Modern Shopping Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries
Ltd.
Wuhan Guanggu	Xiangtan Grand Ocean	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Grand Ocean	Department Store Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries. It was
Ltd.						closed on December 31, 2018,
						and it was processed in the
						liquidation process.
Wuhan Optics	Chongqing Optics	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Valley Grand Ocean	Valley Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Ltd.					50% of its subsidiaries
Ltd.
Wuhan Optics	Wuhan Longyang	Trading of cosmetics,	50.00%	50.00%	50.00%	The company directly
Valley Grand Ocean	Grand Ocean	furnishings, etc.				(indirectly) holds more than
Department Store	Department Store Ltd.					50% of its subsidiaries
Ltd.
Wuhan Optics	Yichang Grand Ocean	Trading of cosmetics,	99.00%	99.00%	99.00%	The company directly
Valley Grand Ocean	Department Store Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries
Ltd.
Wuhan Longyang	Yichang Grand Ocean	Trading of cosmetics,	1.00%	1.00%	1.00%	The company directly
Grand Ocean	Department Store Ltd.	furnishings, etc.				(indirectly) holds more than
Department Store						50% of its subsidiaries
Ltd.
Nanjing Grand	Fuzhou Grand Ocean	Trading of cosmetics,	14.29%	14.29%	14.29%	The company directly
Ocean Department	World Department	furnishings, etc.				(indirectly) holds more than
Store Hefei Ltd.	Store Ltd.					50% of its subsidiaries

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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group chooses to adopt practical expedient practices for all rent concessions leases that meet all of the following conditions, and does not evaluate whether it is a lease modification:

Rent concessions that occur as a direct result of the COVID-19 pandemic;
The change in the lease payment results in the revised consideration of the lease being almost the same or smaller than the consideration before the change;
Any concession in lease payments only affects payments that were originally due before June 30, 2021; and
There is no substantial change in other terms and conditions of the lease.

Under practical expedient practices, when rent concessions cause changes in lease payments, the changes are recognized in profit and loss when the event or situation that initiates rent concessions occurs.

(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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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	June 30, 2020 $ 28,455 3,671,873 142,595 $ 3,842,923	December 31, 2019 36,544 4,900,655 212,077 5,149,276	June 30, 2019
			19,511 4,423,528 375,826 4,818,865

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

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

June 30, 2020 Mandatorily measured at fair value through profit or loss： Non-derivative financial assets Shares of stock of listed companies $ 132,607 Beneficiary certificates 11,659 Total $ 144,266 Financial liabilities held-for-trading Embedded derivatives Call and put rights of convertible bonds $ -	December 31, 2019 150,513 12,353 162,866 2,622	June 30, 2019 159,191 12,568 171,759 3,856

(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.

Corporate bonds—Skyfame Realty Holdings Ltd. Preference shares—Jiawang Assets Development Co., Ltd.	June 30, 2020 $ - 59,900 $ 59,900	December 31, 2019 - 29,900 29,900	June 30, 2019 534,232 -
			534,232

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 $ 147,727 thousand (US$ 4,756 thousand) as of June 30, 2020, December 31, 2019 and June 30, 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

(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	June 30, 2020 $ 274,184 (11,042) 263,142 857,030 (121,206) (49,656) 686,168 949,310 592,967 (43,070) (34,200) 515,697 $ 1,465,007	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	June 30, 2019 223,135 - 223,135 1,032,932 (173,536) (52,025) 807,371 1,030,506 752,370 (60,861) (36,860) 654,649 1,685,155

(i) The Group’s main accounts receivable in rental department in China are credit card payments collected from banks. The average credit period for credit card payments is 2 to 3 days, and there is no doubt that they cannot be collected.
(ii) 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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

	June 30, 2020	Loss allowance provision 3,841 1,211 2,465 4,863 71,476
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 1,120,529 0.34% 40,022 3.03% 16,778 14.69% 17,298 28.11% 91,094 78.46% $ 1,285,721 December 31, 2019
		83,856
		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% June 30, 2019
		55,946
		Loss allowance provision 1,970 2,941 4,751 16,718 62,505
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 1,257,104 117,860 34,041 53,398 88,502 $ 1,550,905	0.16% 2.50% 13.96% 31.31% 70.63%
		88,885

Note: As of June 30, 2020, December 31, 2019 and June 30, 2019 ,the Group had filed lawsuits for colleting the overdue receivables from leasing business with total amount of $ 15,793 thousand (CNY 3,773 thousand), $ 8,078 thousand (CNY 1,873 thousand) and $82,150 thousand (CNY 18,183 thousand). The Group assessed the recoverability of those overdue receivables, and recognized provision for allowance of $11,755 thousand (CNY 2,809 thousand), $ 6,281 thousand (CNY 1,457 thousand) and $ 45,929 thousand (CNY 10,051 thousand) less unearned interests and guarantee deposit.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) The retail department of the group in China is a leasing type manufacturer. Due to the impact of the COVID-19, some accounts have been delayed in payment. Therefore, the simplified method for the lease type accounts receivable is used to estimate the expected credit loss as follows:

	June 30, 2020	Loss allowance provision - - 862 2,896 7,284
Gross carrying amount of leases payment receivable	Weighted-average loss rate
$ 74,673 11,451 11,038 8,778 7,284 $ 113,224	0% 0% 8% 33% 100%
		11,042

3) Impairment loss department in accordance with IFRS9 analysis of accounts receivables in freight department was as follows:

	June 30, 2020	Loss allowance provision -
Gross carrying amount of AR Weighted-average loss rate $ 18,615 - December 31, 2019	Weighted-average loss rate

		Loss allowance provision -
Gross carrying amount of AR $ 23,426	Weighted-average loss rate
	- June 30, 2019
		Loss allowance provision -
Gross carrying amount of AR $ 24,602	Weighted-average loss rate
	-

4) Impairment loss department in accordance with IFRS9 analysis of accounts receivables in other segment in Taiwan was as follows:

	June 30, 2020	Loss allowance provision -
Gross carrying amount of AR Weighted-average loss rate $ 14,450 - December 31, 2019	Weighted-average loss rate

		Loss allowance provision -
Gross carrying amount of AR $ -	Weighted-average loss rate
	- June 30, 2019
		Loss allowance provision -
Gross carrying amount of AR $ 9,124	Weighted-average loss rate
	-

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Balance on January 1, 2020 and 2019 Impairment losses recognized Amount written off due to uncollectible this year Foreign exchange gain (loss) Balance on June 30, 2020 and 2019	For the six months ended June 30 2020 2019 $ 55,946 52,025 45,611 36,785 (4,213) - (2,446) 75 $ 94,898 88,885
	2020 $ 55,946 45,611 (4,213) (2,446) $ 94,898

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

June 30, 2020	December 31, 2019	June 30, 2019
$ 857,030 445,094 147,873 1,449,997 (164,276)	946,753 613,483 281,409 1,841,645 (221,294) 1,620,351	1,032,932 620,824 131,546 1,785,302 (234,397)
$ 1,285,721		1,550,905

(v) The Group and the financial institution shall sign the accounts receivable and sales contract, and the Group shall guarantee the receivables for all receivables that can’t 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 excluded financial assets. The carrying amounts of the transferred receivables and related financial liabilities not excluded in the reporting date are as follows:

	June 30,2020	June 30,2020
Transferred accounts receivable amount $ 134,059	Credit lines 83,706 December	Advanced amount(recognized under Short-term borrowings) 78,199 31,2019

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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Resale company CDIB International Leasing Corp.			June 30,2019	June 30,2019
	Transferred accounts receivable amount $ 40,585		Credit lines 45,180	Advanced amount(recognized under Short-term borrowings) 40,585	Range of interest rates Guarantee item 6.5% Accounts receivables	Guarantee item

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

Other receivables–transfer of equity shares Other receivables–loans Other receivables–lease deposit Other receivables–others Less: Allowance for impairment		June 30, 2020 $ - 9,656 83,846 111,091 (954) $ 203,639	December 31, 2019 - 15,824 63,384 149,404 - 228,612	June 30, 2019 18,781 56,927 - 111,225 (18,781) 168,152

(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 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) 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 June 30, 2020, the transfer amount that has not yet been received is $ 18,781 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 $18,995 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.
(iii) 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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 was found that Xiangyuan has enough property to pay for the security deposit. As a result, the Group assessed that amount of $ 61,524 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 Recognized impairment loss Foreign exchange losses Balance on June 30, 2020 and 2019		For the six months ended June 30	For the six months ended June 30	For the six months ended June 30
		2020		2019
		$ - 973 (19)		18,608 - 173 18,781
		$ 954

(f) Non-current assets classified as held for sale
(i) The amount of the non-current assets to be disposed of and the related interests are as follows：

June 30, 2020	December31, 2019	June 30, 2019
$ 174,677	283,041 (3,237) 33,894 30,657	344,828
		6,037 33,894
$ 27,776		39,931

As of June 30, 2020, December 31, 2019 and June 30, 2019, the non-recurring fair value measurement for the investments accounted for using equity method were measured at $ 174,677 thousand, $ 283,041 thousand and $ 344,828 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.

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 six months ended June 30, 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 $ 105,483 thousand (US$ 3,514 thousand), and reversal of impairment gain of $ 84,329 thousand (US$ 2,722 thousand).

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 had not been pledged as collateral.
(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	June 30, 2020 $ - 193,017 9,091 684,016 - $ 886,124	December 31, 2019 - 215,015 9,643 678,892 6,076 909,626	June 30, 2019 6,855 110,023 - - - 116,878
Beijing ShouHai International Economics and Technology Consultant Service Co., Ltd. Taiwan Environment Scientific Co., Ltd. Jiawang Assets Development Co., Ltd. Da Yu Financial Holdings Limited Hainan Sanhe Licheng Business Service Co., Ltd.

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:

June 30, 2020 December 31, 2019 June 30, 2019 $ 886,124 909,626 116,878 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ (3,023) (3,380) (5,027) 7,414 (13,401) 13,935 (6,985) 15,528 $ (16,424) 10,555 (12,012) 22,942	June 30, 2020 December 31, 2019 June 30, 2019 $ 886,124 909,626 116,878 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ (3,023) (3,380) (5,027) 7,414 (13,401) 13,935 (6,985) 15,528 $ (16,424) 10,555 (12,012) 22,942	June 30, 2020 December 31, 2019 June 30, 2019 $ 886,124 909,626 116,878 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ (3,023) (3,380) (5,027) 7,414 (13,401) 13,935 (6,985) 15,528 $ (16,424) 10,555 (12,012) 22,942	June 30, 2020 December 31, 2019 June 30, 2019 $ 886,124 909,626 116,878 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ (3,023) (3,380) (5,027) 7,414 (13,401) 13,935 (6,985) 15,528 $ (16,424) 10,555 (12,012) 22,942
	2019 (3,380) 13,935	2020	2019
$ (3,023) (13,401) $ (16,424)		(5,027) (6,985)	7,414 15,528
	10,555	(12,012)	22,942

(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 of Subsidiary	Mainoperation/ Percentage of non-controlling interests	Mainoperation/ Percentage of non-controlling interests
	place June 30, 2020 China/Cayman Islands 42.76%	December 31, 2019 June 30, 2019 45.47% 45.47%
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.

Collective financial information of Grand Ocean Retail Group Ltd.

Current assets Non-current assets Current liabilities Non-current liabilities Non-controlling interests Net assets	June 30, 2020 $ 4,368,315 19,216,553 (6,687,091) (8,905,778) - $ 7,991,999	December 31, 2019 5,680,778 20,537,955 (7,401,648) (9,913,540) - 8,903,545		June 30, 2019 5,305,406 21,546,160 (6,393,816) (11,395,201) (2,096)

				9,060,453

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

$ 3,417,378 4,048,441 4,120,300 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ 1,080,423 1,551,941 1,966,036 3,331,620 $ (90,015) 84,520 (217,011) 286,691 (163,966) (141,851) (265,403) 74,757 $ (253,981) (57,331) (482,414) 361,448 $ (38,491) 39,251 (96,075) 127,050 $ (108,602) (24,157) (212,181) 158,217 For the six months ended June 30 2020 2019 $ (1,148,165) (572,896) (47,968) (308,225) (11,507) (452,927) (116,857) 58,513 $ (1,324,497) (1,275,535)	$ 3,417,378 4,048,441 4,120,300 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ 1,080,423 1,551,941 1,966,036 3,331,620 $ (90,015) 84,520 (217,011) 286,691 (163,966) (141,851) (265,403) 74,757 $ (253,981) (57,331) (482,414) 361,448 $ (38,491) 39,251 (96,075) 127,050 $ (108,602) (24,157) (212,181) 158,217 For the six months ended June 30 2020 2019 $ (1,148,165) (572,896) (47,968) (308,225) (11,507) (452,927) (116,857) 58,513 $ (1,324,497) (1,275,535)	$ 3,417,378 4,048,441 4,120,300 For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 $ 1,080,423 1,551,941 1,966,036 3,331,620 $ (90,015) 84,520 (217,011) 286,691 (163,966) (141,851) (265,403) 74,757 $ (253,981) (57,331) (482,414) 361,448 $ (38,491) 39,251 (96,075) 127,050 $ (108,602) (24,157) (212,181) 158,217 For the six months ended June 30 2020 2019 $ (1,148,165) (572,896) (47,968) (308,225) (11,507) (452,927) (116,857) 58,513 $ (1,324,497) (1,275,535)
2020 $ 1,080,423 $ (90,015) (163,966) $ (253,981) $ (38,491) $ (108,602)	2019
		1,551,941
		84,520 (141,851)
		(57,331)
		39,251
		(24,157)

		2020 $ (1,148,165) (47,968) (11,507) (116,857) $ (1,324,497)

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 3,689,371 100 - - - (106,045)	Transportation equipment 132,536 21,902 9,302 - (25,315) (3,808)	Vessels 7,982,851 760 - - - (119,434)	Office equipment 241,431 988 - 1,499 (5,251) (6,859) 231,808 320,672 8,652 1,320 (41,470) 3,376	Leasehold improvement 6,574,410 15,528 - 41,494 (253,411) (188,829)	Total 19,709,536 77,615 9,302 - (283,977) (453,118)
$ 126,409	3,583,426	134,617 118,527 43,630 - (40,181) 1,138	7,864,177		6,189,192	19,059,358
$ 126,409 - - - -	3,795,849 92 22,387 - 35,092		8,152,699 - - - 90,232		7,485,417 55,686 84,044 (360,938) 72,668	20,129,530 214,433 - (442,589) 203,292
$ 126,409	3,853,420	123,114	8,242,931	292,550	7,336,877	20,104,666
$ - - - -	485,856 45,302 - (14,376) 516,782	54,856 12,171 (9,487) (1,528) 56,012	1,872,310 163,355 - (30,105)	172,556 11,039 (5,022) (5,023)	3,545,675 198,934 (253,410) (102,768) 3,388,431	6,131,253 430,801 (267,919) (153,800)
$ -			2,005,560	173,550		6,140,335
$ - - - -	398,011 46,854 - 3,021	71,629 11,860 (27,381) 875 56,983 77,680	1,577,649 168,686 - 17,875	238,024 13,330 (43,374) 2,593 210,573 68,875 58,258	4,416,711 221,895 (356,519) 42,932 4,325,019 3,028,735 2,800,761 3,068,706 3,011,858	6,702,024 462,625 (427,274) 67,296 6,804,671
$ -	447,886		1,764,210
$ 126,409 $ 126,409 $ 126,409 $ 126,409	3,203,515		6,110,541			13,578,283
	3,066,644	78,605	5,858,617			12,919,023
	3,397,838	46,898	6,575,050	82,648 81,977		13,427,506
	3,405,534	66,131	6,478,721			13,299,995

(i) As of June 30, 2020, December 31, 2019 and June 30, 2019, due to payments to stores maintenance and to acquire the property for department stores, the Group recognized other payables amounting to $236,873 thousand, $261,609 thousand and $194,918 thousand, respectively, and accounting for other payables.
(ii) The disposal and obsolescence of this period is mainly due to the subsidiary Fuzhou Grand Ocean World Department Store Ltd., as the board of directors has resolved that the original lease didn’t be renewed when the original lease expires on April 30, 2020, thus disposed and scrapped of related assets.
(iii) 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 ：

Land	Buildings	Machine and transportation equipment
$ 3,254,497 - - (95,465) $ 3,159,032 $ 3,378,465 - - 31,678 $ 3,410,143 $ 95,625 47,331 - (3,726) $ 139,230 $ - 50,669 - (570) $50,099 $ 3,158,872 $ 3,019,802	7,381,322 147 (88,683) (214,377)	59,741 - - (1,702) 58,039 55,964 5,339 - 456 61,759 7,675 4,117 - (272) 11,520 - 3,817 - (40) 3,777 52,066 46,519 55,964 57,982
	7,078,409 7,574,869 3,710 (58,307) 71,740 7,592,012 977,621 477,430 (88,683) (35,991)
	1,330,377 - 506,336 (140) (5,588) 500,608 6,403,701 5,748,032 7,574,869 7,091,404
$ 3,378,465 $ 3,360,044

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The subsidiary Wuhan Longyang Grand Ocean Department Store Ltd. signed a partial annual rent reduction agreement for the department store building, so that the right-of-use asset cost and lease liability were reduced by 57,616 thousand for the six months ended June 30,2019.

(k) Investment properties

Owned	property	Total 166,020
Land and improvement	Buildings
$ 115,769	50,251 50,251 50,251 50,251 22,011 486 22,497 21,038 486 21,524 28,240 27,754 29,213 28,727
$ 115,769		166,020
$ 115,769		166,020
$ 115,769		166,020
$ - -		22,011 486
$ -		22,497
$ - -		21,038 486
$ -		21,524
$ 115,769		144,009
$ 115,769		143,523
$ 115,769		144,982
$ 115,769		144,496

(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 June 30, 2020 Balance at January 1, 2019 Additions－parent company only Effect of change in foreign exchange rates Balance at June 30, 2019 Accumulated amortization and impairment loss: Balance at January 1, 2020 Amortization Impairment loss Disposal Effect of change in foreign exchange rates Balance at June 30, 2020 Balance at January 1, 2019 Amortization Effect of change in foreign exchange rates Balance at June 30, 2019 Carrying amounts: Balance at January 1, 2020 Balance at June 30, 2020 Balance at January 1, 2019 Balance at June 30, 2019	Goodwill	Trademark 421,604 - - (6,307) 415,297 430,575 - 4,765 435,340 - - - - - - - - - - 421,604 415,297 430,575 435,340	License Plate 361,639 - - (10,608) 351,031 375,927 - 3,525 379,452 5,050 - 10,342 - (349) 15,043 5,242 - 49 5,291 356,589 335,988 370,685 374,161		Other 75,072 1,542 (39,224) (1,401) 35,989 80,545 12,493 623 93,661 56,371 2,925 - (39,224) (879) 19,193 58,710 4,078 512 63,300 18,701 16,796 21,835 30,361	Total 2,203,812 1,542 (39,224) (57,696)
	$ 1,345,497 - - (39,380)
	$ 1,306,117					2,108,434 2,283,692 12,493 22,019 2,318,204 67,607 2,925 10,342 (39,224) (1,321) 40,329 70,270 4,078 631 74,979 2,136,205 2,068,105 2,213,422 2,243,225
	$ 1,396,645 - 13,106
	$ 1,409,751
	$ 6,186 - - - (93) $ 6,093

	$ 6,318 - 70
	$ 6,388
	$ 1,339,311
	$ 1,300,024 $ 1,390,327

	$ 1,403,363

Due to the epidemic of COVID-19, each store of the Group had been temporarily closed in the half year 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. In addition, the license plate is affected by the COVID-19, and has been recognized as an impairment loss of CNY 10,342 thousand in the second quarter of 2020. 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	June 30, 2020 $ 352 58,116 201,415 7,031 $ 266,914 $ 141,033 - 678,022 15,153 $ 834,208	December 31, 2019 3,269 528,539 12,396 1,848 546,052 163,533 - 698,512 22,849 884,894	June 30, 2019 71,089 889,445 14,360 1,723
			976,617
			172,341 33,021 731,918 23,235
			960,515

－
(i) Deposits out for lease is leasing deposit from lessee
(ii) As of June 30, 2020, December 31, 2019 and June 30, 2019, the Group has collected receipts in advance for securities brokerage business, amounting to $ 201,639 thousand, $ 12,396 thousand and $ 17,655 thousand, respectively. The receipts in advance are reported as other current liabilities.
(iii) 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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 procedures of the disposition of investment, Fengsheng Group could not make the payments by the 、 aforementioned date. As of June 30, 2019 December 31, 2018 and June 30, 2018, the outstanding receivables were CNY 162,000 thousand ($ 678,022 thousand ,$ 698,512 thousand and $ 731,918 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 aforesaid debt preservation and the conditional creditor’s rights assignment agreement originally agreed to resume construction on the Fengan land at the latest on June 30, 2020. However, due to the impact of the COVID-19, the construction could not be started as scheduled, and the Group agreed to extend it for half a year considering the force majeure the term. 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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(n) Short-term borrowings

Unsecured bank loans Secured bank loans Other unsecured loans Other secured loans Total Unused credit lines Range of interest rates	June 30, 2020 $ 1,498,887 2,759,216 - 102,247 $ 4,360,350 $ 371,272 1.34%~9.5%	December 31, 2019 1,539,979 1,847,308 - 157,671 3,544,958 831,072 1.5%~9.5%	June 30, 2019
			883,915 2,032,854 241,714 40,585 3,199,068 1,342,869 1.35%~8.4%

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

(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	June 30, 2020 $ 2,697,607 1,526,423 194,724 (1,270,798) $ 3,147,956 $ 2,113,511 1.24%~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%	June 30, 2019
			3,784,863 1,621,971 - (1,073,501)
			4,333,333 2,459,890 1.35%~5.35%

(i) Lending and repayment of loans

For the six months ended June 30, 2020 and 2019, the Group proceeded from long-term borrowings amounting to $ 998,808 thousand and $ 743,350 thousand, respectively and the repayment amounted to $ 1,251,664 thousand and $ 2,664,283 thousand, respectively.

(ii) Collateral of bank loans

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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Bonds payable

The information of bonds of the Group were as follows:

Total ordinary bonds issued Total convertible bonds issued Less: Current portion	June 30, 2020 $ 2,000,000 1,542,300 - (2,000,000) (159,005) $ 1,383,295 $ - $ 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	June 30, 2019
			2,000,000 1,542,300 (998,445) (1,000,000) (252,427) 1,291,428 3,856 96,902
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 June 30	For the three months ended June 30	For the six months ended June 30	For the six months ended June 30
		2020	2019	2020	2019 2,622 49,105
		$ 9,100 $ 28,139	1,388 33,057	2,622 55,875

(i) For the six months ended June 30, 2020 and 2019, the amount of corporate bonds issued by the Group is zero and 1,542,300 thousand, respectively; the repayment amount is both 1,000,000 thousand. 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.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(q) Accounts payable and other payables

Accounts payable Arising from direct sales Arising from concessionaire sales Others Total Other payables Securities payable Dividend payable Construction payables Others Total	June 30, 2020	December 31, 2019 167,318 2,825,519 61,020 3,053,857 105,982 - 261,609 714,439 1,082,030	June 30, 2019 114,542 2,033,161 99,474 2,247,177 147,727 213,698 194,918 643,961 1,200,304
	$ 90,293 1,533,534 25,782 $ 1,649,609 $ 99,114 371,840 236,873 611,016 $ 1,318,843

(r) Lease liabilities

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

June 30, 2020 December 31, 2019 June 30, 2019 Current $ 1,115,507 955,219 975,749 Non- Current $ 7,510,639 8,232,934 8,991,289 Expiration analysis, please refer to Note 6 (z) for financial instruments. The amounts recognized in profit or loss as follows: For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 Interest expense of lease liabilities $ 104,912 124,192 215,211 251,381 Variable leases payments not included in the measurement of lease liabilities $ 19,518 24,278 36,867 63,685 Expenses relating to short-term leases $ 17 1,185 34 2,083 Expenses relating to leases of low-value, excluding short-term leases of low-value assets $ 392 - 691 - COVID-19 related rent reduction $ (33,227) - (200,340) -	June 30, 2020 December 31, 2019 June 30, 2019 Current $ 1,115,507 955,219 975,749 Non- Current $ 7,510,639 8,232,934 8,991,289 Expiration analysis, please refer to Note 6 (z) for financial instruments. The amounts recognized in profit or loss as follows: For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 Interest expense of lease liabilities $ 104,912 124,192 215,211 251,381 Variable leases payments not included in the measurement of lease liabilities $ 19,518 24,278 36,867 63,685 Expenses relating to short-term leases $ 17 1,185 34 2,083 Expenses relating to leases of low-value, excluding short-term leases of low-value assets $ 392 - 691 - COVID-19 related rent reduction $ (33,227) - (200,340) -	June 30, 2020 December 31, 2019 June 30, 2019 Current $ 1,115,507 955,219 975,749 Non- Current $ 7,510,639 8,232,934 8,991,289 Expiration analysis, please refer to Note 6 (z) for financial instruments. The amounts recognized in profit or loss as follows: For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019 Interest expense of lease liabilities $ 104,912 124,192 215,211 251,381 Variable leases payments not included in the measurement of lease liabilities $ 19,518 24,278 36,867 63,685 Expenses relating to short-term leases $ 17 1,185 34 2,083 Expenses relating to leases of low-value, excluding short-term leases of low-value assets $ 392 - 691 - COVID-19 related rent reduction $ (33,227) - (200,340) -	June 30, 2019
2020	2019	2020 215,211 36,867 34 691 (200,340)	2019 251,381 63,685 2,083
$ 104,912	124,192 24,278 1,185 - -
			-
			-

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Total cash outflow for leases		For the six months end June 30 2020 2019 $ 351,095 699,688
		2020
		$ 351,095

(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.

(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 Group operating the passenger car leasing business.

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	June 30, 2020 $ 678,246 290,535 286,596 193,588 136,268 141,676 $ 1,726,909	December 31, 2019 499,775 277,019 132,848 132,848 132,848 151,411 1,326,749	June 30, 2019 704,792 299,861 205,370 137,176 137,176 225,496
			1,709,871

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Transportation equipments

Less than one year Between one and two years Between two and three years Total undiscounted lease payments	June 30, 2020 $ 39,939 18,392 1,883 $ 60,214	December 31, 2019 42,197 31,564 5,684 79,445	June 30, 2019
			65,343 46,719 16,634
			128,696

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

Operating costs	For the three months end June 30	For the three months end June 30	For the six months end June 30	For the six months end June 30
	2020	2019	2020 14,636	2019
	$ 7,177	5,254		10,993

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

For the three months ended June 30 For the six months ended June 30	For the three months ended June 30 For the six months ended June 30	For the three months ended June 30 For the six months ended June 30	For the three months ended June 30 For the six months ended June 30
2020	2019	2020	2019
$ 24,658 78 - (1,398) 23,338 (17,107) $ 6,231	81,789 13,690 2,469 (5,197)		185,579 13,767 2,469 (5,197) 196,618 (2,298) 194,320
	92,751

	92,676

(ii)Examination and Approval

The years of ROC subsidiaries' tax returns which were examined and approved by the national tax 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 2019 were examined and approved by the tax authority.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(u) Capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30 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 Employee Share options Forfeited share options Treasury share transactions Changes in equity of accounted for using 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	June 30, 2020 $ 375,193 748,921 96,902 13,838 15,967 - 561,183 66,271 3,332 $ 1,881,607	December 31, 2019 561,458 748,921 96,902 13,838 15,967 11,629 430,844 64,795 3,332	June 30, 2019 561,458 748,921 96,902 13,838 15,967 9,559 430,844 79,798 3,332 1,960,619
		1,947,686

On June 18, 2020, the Group shareholders' meeting 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. A resolution was passed during the shareholders' meeting held on June 18, 2020 reversal of special earnings reserve of $ 335,040 thousand, respectively.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Earnings distribution

The appropriations of earnings for 2019 had been approved in the shareholders' meeting held on June 18,2020. 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 Stock 620,883 - Total $ 620,883 63,088	For the year ended December 31 2019 2018 Dividends distributed to ordinary shareholders`：` Cash $ - 63,088 Stock 620,883 - Total $ 620,883 63,088	For the year ended December 31 2019 2018 Dividends distributed to ordinary shareholders`：` Cash $ - 63,088 Stock 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 June 30, 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 Quantity sold in this period Outstanding at June 30		For the six months ended June 30 2020 2019 11,882 6,350 - 6,282 (205) - 11,677 12,632
		2020
		11,882 - (205) 11,677

The proceeds from transferring treasury shares were recognized as prepaid salary for employees to execute subscription. As of June 30, 2020, December 31, 2019, and June 30, 2019, these prepaid salary amounting to $ 196,089 thousand, $ 214,055 thousand and $ 238,568 thousand were recognized under other non-current assets-other, 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
$ (595,680) - (6,985) - - - (231,199)	29,788 - - - - - (2,727) 27,061 35,656 - - - - - 3,056 - 38,712	4,117,351 (91,986) - (233,765) 457 (185,575) (116,107)
$ (833,864)		3,490,375 3,938,602 127,015 (150,610) 251,621 - - - 31,166 4,197,794
$ (125,956)

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:

For the three months ended June 30	For the three months ended June 30	For the six months ended June 30 2020 2019 (335,242) 1,324,555 622,836 630,883	For the six months ended June 30 2020 2019 (335,242) 1,324,555 622,836 630,883
2020	2019	2020
$ (107,524)	1,185,212 630,883	(335,242)
620,883		622,836	630,883
$ (0.17)	1.88 1,185,212 16,769	(0.54)	2.10 1,324,555 21,299 1,345,854
(107,524) (Note)
$ (107,524)	1,201,981 630,883 839 129,063	(335,242)
620,883 (Note) (Note)		622,836 (Note) (Note)	630,883 839 89,132 720,854 1.87
620,883	760,785	622,836 (0.54)
$ (0.17)	1.58

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.

On June 18, 2020, the shareholders' meeting of the Group resolved to allocate 62,088 shares for free. The capital increase base date has not been determined by the board of directors before the approval of the financial statements. If this free allotment occurs before the financial statements are approved for publication, the proposed retrospective adjustment of earnings per share is as follows:

For the three months end June 30	For the three months end June 30	For the six months end June 30	For the six months end June 30
2020	2019	2020 (0.49) (0.49)	2019
$ (0.16) $ (0.16)	1.71		1.91 1.70
	1.44

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	For the three months	ended June	30, 2020
Freight department	Invest department 1,415 - 5,799	Retail department - 1,080,423 -	Lease department - 58,693 -	Other department 38,273 - -
$ - - 222,478
$ 222,478	7,214	1,080,423	58,693	38,273
	- - 1,415 - 5,799	287,685 390,559 163,152 - 239,027	- - 15,260 39,636 3,797	- - - - 38,273
$ 222,478	7,214	1,080,423	58,693	38,273
	For the three months		ended June	30, 2019
Freight department	Invest department	Retail department	Lease department 1,218 81,829 -	Other department
$ - - 247,635	1,133 - 28,537	- 1,551,941 -
$ 247,635	29,670	1,551,941	83,047	30,561
	- - 1,133 - 28,537	535,407 433,818 212,741 - 369,975	- - 19,169 59,827 4,051	- - - - 30,561
$ 247,635	29,670	1,551,941	83,047	30,561

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
Freight department	Invest department 2,943 - 19,474	Retail department - 1,966,036 -	Lease department - 118,088 -	Other department 49,109 - -
$ - - 466,237
$ 466,237	22,417	1,966,036	118,088	49,109
	- - 2,943 - 19,474	592,366 714,686 283,992 - 374,992	- - 28,882 80,294 8,912	- - - - 49,109
$ 466,237	22,417	1,966,036	118,088	49,109
	For the	six months ended June 30, 2019
Freight department	Invest department	Retail department	Lease department	Other department
$ - - 504,106	2,250 - 35,148	- 3,331,620 -	3,058 160,667 -
$ 504,106	37,398	3,331,620	163,725	47,427
	- - 2,250 - 35,148	1,256,719 966,035 434,586 - 674,280	- - 38,121 114,202 11,402	- - - - 47,427
$ 504,106	37,398	3,331,620	163,725	47,427

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Contract balances

Accounts receivable Less: allowance for impairment Total Contract liabilities	June 30, 2020 $ 14,450 - $ 14,450 $ 58,567	December 31, 2019 - - - 150	June 30, 2019 9,124 - 9,124 1,352

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

The amount of revenue recognized for the six months ended June 30, 2020, and 2019, that was included in the contract liability balance at the beginning of the period was $ 150 thousand and $ 4,353 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 six months ended June 30, 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 six months ended June 30, 2020, the Company loss before tax. The company was not estimated its employee compensation and directors' remuneration amounting.

The compensation to employees and the remunerations to directors and supervisors are both amounted to $8,671 thousand, $10,064 thousand, zero and $1,393 thousand, respectively, for the three months and the six months ended June 30, 2019. 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) Interest income

The details of interest income were as follows:

The details of interest income were	ere	as follows:
Interest income Loan to unrelated parties Amortized cost financial assets Loans Open-end fund Other		For the three months endedJune 30 For the six months ended June 30 2020 2019 2020 2019 $ 4,519 13,347 11,145 21,652 - 13,493 - 31,788 8 2,085 10 4,550 251 261 503 545 2,599 - 4,752 - $ 7,377 29,186 16,410 58,535

(i) Other income

The details of other income were as follows:

Dividend income		For the three months endedJune 30	For the three months endedJune 30	For the six months ended June 30	For the six months ended June 30
		2020	2019	2020	2019 3,090
		$ 2,841	3,090	2,841

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Other gains and losses

The details of other gains and losses were as follows:

For the three months ended June 30	For the three months ended June 30	For the six months ended June 30 2020 2019 (809) (1,826) (231) 999,684 - 217,213 (16,219) (24,276) 14,165 18,363 2,622 2,622 (105,483) 84,329 (10,342) - 38,328 81,313	For the six months ended June 30 2020 2019 (809) (1,826) (231) 999,684 - 217,213 (16,219) (24,276) 14,165 18,363 2,622 2,622 (105,483) 84,329 (10,342) - 38,328 81,313
2020	2019	2020 (809) (231) - (16,219) 14,165 2,622 (105,483) (10,342) 38,328
$ (405) 914 (231) 999,684 - 217,213 (1,930) (45,921) 37,785 9,211 9,100 1,388 (21,670) 43,796 (10,342) - 20,457 29,254
$ 32,764 1,255,539		(77,969)	1,377,422

(iii) Finance costs

The details of finance costs were as follows:

		For the six months ended June 30	For the six months ended June 30
2020 $ 60,235 4,188 23,951 104,912 3,434		2020 122,429 8,375 47,500 215,211 5,863	2019
			197,063 16,750 32,355 251,381 13,043
$ 196,720	253,092	399,378	510,592

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The interest related to leases amounting to $ 15,504 thousand, $ 11,452 thousand, $ 33,912 thousand and $ 21,908 thousand for the three months and six months ended June 30, 2020 and 2019, respectively, was recognized as interest expense under operating cost.

(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 6 (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 six months ended June 30, 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 3,435,805 6,888,308 4,526,410 10,638,938	1years 2,877,184 4,249,745 2,352,925 1,503,559	1 to 5 years 55,422 2,638,563 2,173,485 4,674,772	Over 5 years
$ 3,435,806 6,095,027 4,216,418 8,626,146				503,199 - - 4,460,607 4,963,806 552,538 - - 5,063,498 5,616,036
$ 22,373,397	25,489,641	10,983,413	9,542,242 162,371 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

June 30, 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 316,319 566,814 4,345,386 - 1,584,605 - 5,252,603 5,884,812 11,498,913 6,451,626
	$ 4,151,621 8,000,811 3,133,455 9,967,038	4,151,621 8,481,762 3,427,967 12,574,009	3,268,488 4,136,376 1,843,362 1,436,594
	$ 25,252,925	28,635,359	10,684,820

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:

June 30, 2020	June 30, 2020	June 30, 2020	December 31, 2019	December 31, 2019	December 31, 2019	June 30, 2019	June 30, 2019	June 30, 2019
Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
		593 957 4,804 - 433 174,677 684,016 181,483 99,114 -	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 -	750 43,297 4,585 40 350 - 76,069 - 21,675 37,117 8,511	31.06 0.1281 0.0322 0.7020 1.1391 - 0.1281 - 6.8747 0.1281 1.1391	23,295 172,323 4,585 867 12,370 - 344,828 - 673,223 147,727 301,133

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. A weakening (strengthening) of 1% of the NTD or CNY against the USD, EUR, HKD, AUD and CNY as for the six months ended June 30, 2020 and 2019 would have decreased the profit before tax by $ 2,738 thousand and $ 9,086 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 gain (loss) on monetary items is disclosed by total amount. For the three months and six months ended June 30, 2020 and 2019, foreign exchange gain (loss) (including realized and unrealized portions) amounted to $ (1,930) thousand, $ (45,921) thousand, $ (16,219) thousand and $ (24,276) 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 $ 5,913 thousand and $ 6,637 thousand, which is mainly due to the Group's borrowings at variable rates and demand deposits for the six months ended June 30, 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 six months ended June 30	For the six months ended June 30	For the six months ended June 30
	2020 Comprehensive Income (Loss) (before tax) Net Income (Loss) (before tax) $ - 6,630 $ - (6,630)	2019
	Comprehensive Income (Loss) (before tax) $ - $ -	Comprehensive Income (Loss) (before tax) - -	Net Income (Loss) (before tax)
Increase 5% Decrease 5%			7,960 (7,960)

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 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

		June 30, 2020
Carrying amount		Fair	Value
	Level 1	Level 2		Level 3	Total
$ 144,266	144,266	-		-	144,266

Carrying amount		Fair	Value
	Level 1	Level 2		Level 3	Total
$ 162,866	162,866	-		-	162,866 2,622
$ 2,622	-	-		2,622
		June 30, 2019
Carrying amount		Fair	Value
	Level 1	Level 2		Level 3	Total
$ 171,759	171,759	-		-	171,759 3,856
$ 3,856	-	-		3,856

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 or losses recognized in profit (loss) Ending balance, June 30, 2020 Opening balance, January 1, 2019 Issued Total gains and losses recognized in profit or loss Ending balance, June 30, 2019	Financial liabilities as held for sale Embedded derivative instruments $ 2,622 (2,622) $ - $ - 6,478 (2,622) $ 3,856

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 or losses recognized: In profit (loss) (presented in “other gains and losses”)			For the six months ended June 30 2020 2019 2,622 2,622	For the six months ended June 30 2020 2019 2,622 2,622
	2020 $ 9,100		2020 2,622

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. June 30, 2020 December 31, 2019 June 30, 2019 32.22% 24.29% 35.50%

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 June 30, 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% June 30, 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
		154 - 308 (308) 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 six months ended June 30, 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	June 30, 2020
	Other(Note) - - 47,500 - (200,193) - (152,693)
888,105 (22) (1,000,000) (252,856) (98,292) (135,621) (598,686)		4,360,350 49,932 1,383,295 4,418,754 8,626,146 566,468 19,404,945

Cash flows	Non-cash	June 30, 2019
	Other(Note) - - (247,763) - (49,118) - (296,881)
(371,408) 2 542,300 (1,920,933) (382,539) (70,420)		3,199,068 49,949 2,289,873 5,406,834 9,967,038 892,682
(2,202,998)		21,805,444

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.

Huizhou Tianan Xinghe City Management Co., Ltd. Huiyang Tamsui New Sun City Construction Co., Ltd.

Shanghai Guorui Tongshun Environmental Protection Technology Co., Ltd.

Hainan Sanhe Licheng Business Service Co., Ltd.

The Group's manager is the company's director

A substantial related party

A substantial related party A substantial related party

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:

o related	parties were as follows:	parties were as follows:	parties were as follows:
Associates	Operating revenues For the three months ended June 30 For the six months ended June 30 2020 2019 2020 2019			Lease receivables
				June 30, 2020	December 31, 2019 220,099	June 30, 2019 -
		2019 2020	2019	192,728
	$ 3,356	- 7,915	-

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 June 30, 2020 December 31, 2019 Other payables Other related parties $ 16,281 - Prepayments June 30, 2020 December 31, 2019 Other related parties $ 47,264 48,692	Account Category of related party June 30, 2020 December 31, 2019 Other payables Other related parties $ 16,281 - Prepayments June 30, 2020 December 31, 2019 Other related parties $ 47,264 48,692	June 30, 2019
		-
		June 30, 2019 -
$ 47,264	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) Lease liabilities and interest

Relationship	Purpose	June 30, 2020	Lease liabilities December 31, 2019 June 30, 2019	Lease liabilities December 31, 2019 June 30, 2019
			December 31, 2019
Other related parties Other related parties	Office building and department store Energy-saving renovation engineering equipment	$ 61,423 49,122 $ 110,545	76,266 53,811 130,077	93,196 59,661
				152,857

Relationship	Purpose	Interest expense	Interest expense	Interest expense
		For the three months ended	For the six months ended
		2020 2019	2020	2019
		$ 774 1,505 1,646 2,415 611 743 1,255 1,439
Other related parties Other related parties	Office building and department store Energy-saving renovation engineering equipment
		$ 1,385 2,248 2,901 3,854

2) Operating lease

Relationship	Purpose	Payments that are not included in the measurement of the lease liability	Payments that are not included in the measurement of the lease liability	Payments that are not included in the measurement of the lease liability
		For the three months ended	For the six months ended
		2020 2019	2020	2019
Other related parties Relationship	Office building and department store Purpose	$ 19,518 25,160 36,867 63,685
		Property management fee
		For the three months ended	For the six months ended
		2020 2019	2020	2019
		$ 965 334 1,951 669
Other related parties	Office building and department store

As of June 30, 2020, December 31, 2019, and June 30, 2019, the rental security deposit of the Group to other related parties amounted to $ 11,476 thousand, $ 8,624 thousand and $ 9,036 thousand, respectively.

(v) Others

1) The Group provided management consulting services and signed service contracts with other related parties. For the three months and the six months ended June 30, 2020 and 2019, the revenue from consulting services was zero, $ 5,389 thousand, zero and $ 10,777 thousand, respectively. On June 30, 2020, December 31, 2019, and June 30, 2019, the outstanding amounts were zero, $ 28,745 thousand (CNY 6,667 thousand) and $ 22,590 thousand (CNY 5,000 thousand) and which reported as other receivables.

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) For the six months ended June 30, 2020 and 2019, the Group purchased energy-saving equipment amounting to zero and $ 418 thousand (CNY 93 thousand), respectively, from other related parties and which reported as property, plant and equipment.
(vi) Guarantees

On June 30, 2020, December 31, 2019, and June 30, 2019, the amount of guarantee that the Group provided for associates, which signed the finance lease agreements with non-related parties, were $ 91,474 thousand (CNY 21,856 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 June 30	For the three months ended June 30	For the six months ended June 30 2020 2019	For the six months ended June 30 2020 2019
	2020	2019	2020
	$ 12,580	18,654 26,222		36,281

(ii) The Group granted key management personnel rights to subscribe treasury shares as prepaid salaries. As of June 30, 2020, December 31, 2019 and June 30, 2019, those prepaid salaries amounting to $ 44,158 thousand (CNY 10,551 thousand), $ 45,585 thousand (CNY 10,572 thousand) and $ 50,643 thousand (CNY 11,209 thousand), which were recognized under other current assets and other non-current assets accounts.

(8) Pledged assets:

The carrying amount of pledged assets were as follows:

Pledged assets	Object	June 30, 2020 $ - 88,918 58,116 134,059 168,730 9,077,192 143,523	December 31, 2019 - 101,531 528,539 92,855 - 9,602,555 144,009 10,469,489	June 30, 2019
Current financial assets at amortized cost Inventories (for construction business) Other financial assets (Note 1) Accounts receivable Leases payment receivables Property, plant and equipment (Note 2) Investment Property	Securities payable Bank loans Bank loans, bank depository funds and ordinary bonds payable Bank loans and other loans Other loans Bank loans and ordinary bonds payable Bank loans and ordinary bonds payable			534,232 106,377 922,466 40,585 - 10,105,618 144,496
		$ 9,670,538		11,853,774

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.

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	June 30, 2020 $ 665,331 13,472 397,642 1,902,246 108,309 11,037 58,567 477,043	December 31, 2019 665,331 23,981 11,020 1,931,136 108,309 16,816 150 386,227	June 30, 2019 665,331 82,897 20,552 - 108,309 32,403 1,352 -

(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 June 30, 2019, the unpaid amount was $ 73,089 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	June 30, 2020		December 31, 2019 48,321 46,866		June 30, 2019 - -
	$ 65,921 $ 55,041

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:

(a) The Group purchased land at No. 302, Wushi Harbor Section, Toucheng Town, Yilan County on June 30, 2020 through a resolution of the board of directors, and signed a sale and purchase agreement with non-related parties on July 1, 2020, with a total contract price of $ 502,000 thousand, and the relevant procedures are still being processed.
(b) The Group purchased land at No. 55, 70, 73 and 74, Yongfu Section, Tucheng District, New Taipei City on June 30, 2020 through a resolution of the board of directors, and signed a sale and purchase agreement with non-related parties on July 28, 2020, with a total contract price of $ 507,494 thousand, and the relevant procedures are still being processed.

(12) Other:

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

follows:
	For the three months ended June 30
By function By item	2020			2019
	Operating Cost	Operating expense	Total	Operating Cost	Operating expense	Total
Employee benefits
Salary	45,529	132,971	178,500	45,129	194,269	239,398
Health and labor insurance	307	890	1,197	-	1,332	1,332
Pension	329	753	1,082	-	15,568	15,568
Others	3,892	18,367	22,259	4,063	30,216	34,279
Depreciation	86,948	388,061	475,009	95,397	417,709	513,106
Depletion	-	-	-	-	-	-
Amortization	8,984	701	9,685	5,254	3,182	8,436
	For the six months ended June 30
By function By item	2020			2019
	Operating Cost	Operating expense	Total	Operating Cost	Operating expense	Total
Employee benefits
Salary	91,659	273,244	364,903	88,122	354,899	443,021
Health and labor insurance	614	2,042	2,656	-	2,840	2,840
Pension	652	7,087	7,739	-	32,831	32,831
Others	8,002	42,128	50,130	8,023	62,574	70,597
Depreciation	174,921	785,244	960,165	179,685	844,248	1,023,933
Depletion	-	-	-	-	-	-
Amortization	16,443	3,331	19,774	10,993	6,904	17,897

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Seasonality of operations

The Group's retail department 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 COVID-19 in the first quarter of 2020, the Group was temporarily closed from the end of January in 2020, and resumed business in mid-February, that has caused a decline in business conditions for the six months ended June 30, 2020.

(13) Segment information:

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

For the three months ended June 30, 2020 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the three months ended June 30, 2019 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the six months ended June 30, 2020 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the six months ended June 30, 2019 Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss	Freight department $ 222,478 - $ 222,478 $ (1,408) $ 247,635 - $ 247,635 $ 21,578 Freight department $ 466,237 - $ 466,237 $ 23,982 $ 504,106 - $ 504,106 $ 44,587	Invest department 7,214 16,517 23,731 (38,748) 29,670 16,929 46,599 932,381 Invest department 22,417 33,157 55,574 (184,516) 37,398 33,493 70,891 926,638	Retail department 1,080,423 - 1,080,423 (83,862) 1,551,941 - 1,551,941 160,945 Retail department 1,966,036 - 1,966,036 (185,935) 3,331,620 - 3,331,620 464,640	Lease department 58,693 - 58,693 (21,638) 83,047 214 83,261 200,837 Lease department 118,088 - 118,088 (58,769) 163,725 557 164,282 210,396	Other segment 38,273 - 38,273 10,612 30,561 -	Reconciliation and elimination - (16,517) (16,517) - - (17,143) (17,143) - Reconciliation and elimination - (33,157) (33,157) - - (34,050) (34,050) -	Total 1,407,081 -
							1,407,081
							(135,044)
							1,942,854 - 1,942,854 1,318,522 Total 2,621,887 -
					30,561 2,781 Other segment 49,109 - 49,109 9,227 47,427 -
							2,621,887
							(396,011)
							4,084,276 - 4,084,276 1,645,890
					47,427 (371)

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FSC — Interim / Quarterly Report 2020

52157_rns_2020-11-16_2d5791ca-d5da-495d-bf3b-2e1d19f20f8c.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 June 30, 2020 and 2019

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2020, December 31, 2019, and June 30, 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 Comprehensive Income

For the three months and six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Notes to the Consolidated Financial Statements

June 30, 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

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

(d) Income taxes

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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

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

FIRST STEAMSHIP COMPANY LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

FSC Interim / Quarterly Report 2020